Regular Session
Government Affairs & Regulatory Compliance Analysis
HB126 fundamentally expands the Texas NIL market by authorizing compensation for prospective student-athletes (recruits), provided they are at least 17 years old. However, it simultaneously imposes strict liability on corporate sponsors and collectives by mandating pre-contract disclosures and establishing a statutory "Prohibited List" of industries (e. g.
Rep. Carl Tepper·House Bill·Regular Session
Athletic Associations (e.g., NCAA, Conferences) - empowered by Section 51.9246(c-3) • Institutions of Higher Education (Internal Compliance Departments)
This legislation has regulatory implications for the following Texas businesses and organizations:
Significant regulatory changes (effective 2025-06-05). Review with your legal and compliance teams to understand implications.
Affected business types:
lowMinimal cost impact anticipated.
JD Key Consulting provides government affairs and regulatory strategy services. We help businesses navigate Texas agencies, understand legislative impacts, and advocate for their interests.
JD Key Consulting provides strategic guidance on Texas regulatory compliance and legislative impact for your business.
Key implementation requirements and action items for compliance with this legislation
Review and amend all NIL templates immediately.
The NCAA Enforcement Trap (Section 51.9246(c-3))
The law contains a critical pivot: it states that if an institution or athlete complies with athletic association (e.g., NCAA or Conference) rules, they are subject to the enforcement mechanisms of that association.
"Official Team Activities"
The law prohibits compensation for work performed during "official team activities," but leaves the definition to the specific university.
JD Key Consulting specializes in Texas regulatory compliance strategy. Work directly with James Dickey—former Chairman of the Republican Party of Texas—to understand this bill's impact on your operations and develop an actionable compliance plan.
Schedule a ConsultationInformation presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.
This bill's path through the Texas Legislature
Explore more bills from this author and on related topics
Common questions about HB126
HB126 fundamentally expands the Texas NIL market by authorizing compensation for prospective student-athletes (recruits), provided they are at least 17 years old. However, it simultaneously imposes strict liability on corporate sponsors and collectives by mandating pre-contract disclosures and establishing a statutory "Prohibited List" of industries (e. g.
HB126 was authored by Texas Representative Carl Tepper during the Regular Session.
HB126 was signed into law by Governor Greg Abbott on June 5, 2025.
HB126 is enforced by Athletic Associations (e.g., NCAA, Conferences) - empowered by Section 51.9246(c-3) and Institutions of Higher Education (Internal Compliance Departments).
The regulatory priority for HB126 is rated as "critical". Businesses and organizations should review the legislation to understand potential impacts.
The cost impact of HB126 is estimated as "low". This may vary based on industry and implementation requirements.
HB126 addresses topics including amusements, games, sports, education, education--higher, education--higher--athletics and athlete agents.
Key dates for HB126: Effective date is 2025-06-05. Consult with legal counsel regarding applicability.
HB126 establishes the following penalties: administrative/contractual penalty of Subject to athletic association enforcement for Performance of actions authorized by this Act that conflict with athletic association (e.g., NCAA) rules, if the association chooses to enforce them (Section 51.9246(c-3)).; statutory prohibition penalty of Contract invalidation/Compliance breach for Entering into an NIL arrangement with a prospective student athlete younger than 17 years of age who is not yet enrolled (Section 51.9246(k-1)).; contractual restriction penalty of Contract invalidation for Entering into an NIL contract for endorsement of alcohol, tobacco, nicotine devices, anabolic steroids, sports betting, casino gambling, firearms (if illegal for athlete to purchase), or sexually oriented businesses.. Consult with legal counsel for specific applicability to your situation.
JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.
