House passes bill letting Texas public universities sign direct NIL contracts with prospective athletes

The Texas House on April 14 passed House Bill 126, a measure sponsored by Representative Will Tepper that authorizes public universities and their agents to enter into direct name, image and likeness (NIL) agreements with prospective and enrolled student-athletes and to offer compensation and admission-related inducements in some cases. The bill passed to engrossment on a recorded vote, with 109 ayes and 35 nays.

Supporters said HB 126 updates state law in response to an imminent change in NCAA rules and provides a legal framework for Texas institutions to compete for recruits. Representative Will Tepper, the bill's author, told colleagues the measure "updates our state's name, image, and likeness law to keep our university athletic programs competitive" and said it "does not authorize the use of public funds for NIL payments" and preserves financial-literacy course requirements for athletes.

The debate turned on how far…