A bill that would give Texas colleges and universities the ability to directly pay student-athletes through NIL deals received preliminary approval in the Texas House on Monday.
House Bill 126, authored by Rep. Carl Tepper (R-Lubbock), would allow schools to bypass current NIL norms that require compensation to come from third-party entities. Supporters, including Rep. Stan Lambert (R-Abilene), argue the change would help Texas institutions compete nationally by offering top athletes more lucrative opportunities.
Opponents, however, warn the bill could have unintended legal consequences. Rep. Mitch Little (R-Lewisville) expressed concerns that directly paying athletes could classify them as employees of their schools, potentially subjecting universities to a range of federal labor laws.
The bill still faces a final vote in the House before moving to the Senate.
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