SB 3263

THE SENATE
S.B. NO.
3263
THIRTY-THIRD LEGISLATURE, 2026
S.D. 2
STATE OF HAWAII
H.D. 3
C.D. 1
A BILL FOR AN ACT
RELATING TO THE UNIVERSITY OF HAWAII.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
���� SECTION 1.� The
legislature finds that national changes in college athletics resulting from the
settlement in the House v. National Collegiate Athletic Association, No.
4:20-cv-03919-CW (N.D. Cal.) litigation and subsequent National Collegiate
Athletic Association rule revisions now permit institutions of higher education
to provide direct financial compensation to student‑athletes for use of
their name, image, and likeness.
���� The legislature further finds that more
than thirty states have enacted name, image, and likeness laws, many of which
were adopted prior to the House settlement and are now being amended to reflect
the rapidly changing environment.�
Hawaii, which has not enacted a comprehensive name, image, and likeness
statute, is positioned to establish a modern, flexible framework to protect
student-athletes, ensure compliance with Title IX, and promote transparency and
accountability when public resources are involved.
���� The legislature further finds that the
scope and scale of name, image, and likeness activity vary across campuses and
athletic divisions within the university of Hawaii system, and that
institutional reporting and administrative requirements established under this
Act are intended to apply in a manner proportionate to the level of
institutional name, image, and likeness activity present at a given campus.
���� The legislature finds that this Act is an
issue of statewide concern pursuant to article X, section 6, of the Hawaii
State Constitution.
���� Accordingly, the purpose of this Act is to
establish a statewide name, image, and likeness framework for compensating
student‑athletes at the university of Hawaii that:
���� (1)� Affirms
the right of student-athletes to engage in name, image, and likeness
activities;
���� (2)� Requires
the university of Hawaii to adopt policies governing institutional name, image,
and likeness agreements and other aspects of name, image, and likeness activity
consistent with federal law, National Collegiate Athletic Association rules,
and Title IX of the federal Education Amendments Act of 1972, as amended;
���� (3)� Ensures
transparency and accountability in the administration of institutional name,
image, and likeness programs;
���� (4)� Provides
basic protections and educational support for student-athletes who enter name,
image, and likeness agreements; and
���� (5)� Establishes
an endowment fund to support compensation and related benefits to
student-athletes.
���� The legislature intends for the
implementation and effectiveness of this Act to be reviewed during the regular
session of 2029, prior to this Act's repeal date of June 30, 2030.� At that time, the legislature should determine
whether this Act shall be made permanent and whether amendments to this Act are
necessary.
���� SECTION 2.�
Chapter 304A, Hawaii Revised Statutes, is amended by adding a new
subpart to part II to be appropriately designated and to read as follows:
"   .� Student-Athletes; Name, Image, and Likeness
���� �304A-A �Definitions.� As used in this subpart, unless the context
clearly requires otherwise:
���� "Institutional name, image, and
likeness agreement" means any agreement through which the university
provides financial compensation or other benefits to a student-athlete for the
use of the student-athlete's name, image, or likeness.
���� "Intercollegiate athletics governing
body" refers to the National Collegiate Athletic Association or any
successor organization that serves as the regulating authority for the
intercollegiate athletic programs in which the university participates.
���� "Name, image, and likeness
activity" means any activity through which a student-athlete receives
financial compensation or other benefits for the use of the student-athlete's
name, image, or likeness.
���� "Student-athlete" means an
individual who is enrolled at a campus of the university and participates in
intercollegiate athletics.
���� "Third-party name, image, and likeness
agreement" means a name, image, and likeness agreement between a
student-athlete and a person or entity other than the university.
���� "Title IX" refers to Title IX of the
federal Education Amendments of 1972, codified as title 20 United States Code
section 1681 et seq.
���� "University" means the university
of Hawaii.
���� �304A-B�
Rights of student-athletes.�
(a)� A student‑athlete may
earn compensation for name, image, and likeness activities consistent with this
subpart, federal law, and applicable intercollegiate athletics governing body
rules.
���� (b)�
Compensation received pursuant to a name, image, and likeness activity
shall not affect the student-athlete's scholarship eligibility, grant-in-aid,
or participation on an intercollegiate athletics team.
���� (c)�
The university, an athletic conference, or an intercollegiate athletics
governing body shall not prevent or unduly restrict a student-athlete from
engaging in name, image, and likeness activities except as necessary to comply
with:
���� (1)� Federal
or state law;
���� (2)� Rules
adopted by an intercollegiate athletics governing body in response to the
court-approved settlement in House v. National Collegiate Athletic
Association, and rules adopted by an intercollegiate athletics governing
body after the effective date of this section; or
���� (3)� Reasonable
and neutral university policies relating to conflicts of interest, time
commitments, or prohibited industries.
���� �304A-C �University obligations and protections.� (a)�
The university shall adopt and periodically update written policies
governing:
���� (1)� Institutional
name, image, and likeness agreements;
���� (2)� Third-party
name, image, and likeness agreement disclosure requirements;
���� (3)� Student-athlete
education regarding taxes, contracts, and financial management;
���� (4)� Agent
and representative interactions with student‑athletes; and
���� (5)� Efforts
to administer name, image, and likeness activity benefits in a manner
consistent with Title IX, based on the best available guidance.
���� (b)�
University policies shall not restrict student‑athletes from
retaining professional representation for name, image, and likeness activities;
provided that the representatives comply with chapter 481Z and any other
applicable laws, rules, and other requirements; provided further that nothing
in this subsection shall be construed to impose new licensing, registration, or
regulatory requirements on agents or representatives beyond those required
under existing law.
���� (c)�
The university may prohibit student-athletes from entering into name,
image, and likeness agreements involving:
���� (1)� Adult
entertainment;
���� (2)� Firearms
or weapons;
���� (3)� Gambling,
sports wagering, or illegal drugs;
���� (4)� Tobacco
or vaping products; or
���� (5)� Any
industry or entity deemed to conflict with the university's mission or
financial interests.
���� (d)�
A student-athlete shall have at least ten business days after signing an
institutional name, image, and likeness agreement or a third-party name, image,
and likeness agreement to rescind the agreement.
���� (e)� A
student-athlete may retain professional representation, including a sports
agent registered pursuant to chapter 481Z, for the purpose of advising or
representing the student-athlete in name, image, and likeness activities.
���� (f)�
A student-athlete may also seek advice from a parent or legal guardian
or other trusted individual of the student-athlete's choosing.
���� (g)� � The university may make available educational
resources or advisory support to assist student-athletes in understanding name,
image, and likeness agreements, including information related to contracts,
taxes, and financial management.
���� (h)� Nothing
in this section shall be construed to require a student-athlete to retain
representation or advisory services.
���� �304A-D �Third-party name, image, and likeness agreement
disclosure and reporting.� (a)� A student-athlete shall disclose to the
university any third-party name, image, and likeness agreement with
compensation valued at $600 or more; provided that, if an alternative threshold
is established by applicable intercollegiate athletics governing body rules or
federal law, the university may designate that alternative threshold as the
payment threshold for purposes of this section.
���� (b)� The
university shall maintain a confidential internal system for receiving and
reviewing disclosures for compliance with this subpart and rules and policies
adopted pursuant to this subpart.� Review
of disclosures shall be for purposes of institutional awareness and compliance
with state law and shall not be construed as an assumption of primary
enforcement authority over intercollegiate athletics governing body rules.
���� (c)�
Beginning with the regular session of 2028, the university shall submit
an annual report to the legislature no later than twenty days prior to the
convening of each regular session.� The
report shall include, for the preceding completed academic year:
���� (1)� The
total value of institutional name, image, and likeness agreements that are
funded with state resources, disaggregated by team and by gender but not by
individual student-athlete;
���� (2)� A
high-level, aggregate summary of third-party name, image, and likeness
agreements disclosed to the university, to the extent that name, image, and
likeness activity implicates institutional programs, facilities, or compliance
obligations;
���� (3)� A
description of name, image, and likeness activity‑related compliance
measures implemented, including education programs;
���� (4)� A
description of the university's policies governing name, image, and likeness
activities and any updates made to the policies during the prior year;
���� (5)� A
statement of the university's efforts to administer name, image, and likeness
activities in a manner consistent with Title IX, based on the best guidance
available at the time;
���� (6)� Any
documented challenges, violations, or disciplinary actions taken with regard to
name, image, and likeness activities; and
���� (7)� An
aggregate summary of name, image, and likeness agreements, disaggregated by
value ranges, sport, and gender, that does not include personally identifiable
information or specific contract terms.
���� (d)�
Records collected pursuant to this section shall be confidential and
exempt from disclosure under chapter 92F, except as expressly provided for in
the aggregate reporting requirements of this section.� Nothing in this section shall require the
public disclosure of personally identifying information or confidential
contract terms, consistent with federal law, including the Family Educational
Rights and Privacy Act of 1974, as amended.
���� (e)�
The disclosure and reporting requirements in this section shall apply
only to a campus of the university that, during the applicable academic year:
���� (1)� Enters
into one or more institutional name, image, and likeness agreements; or
���� (2)� Administers,
facilitates, or oversees name, image, and likeness activity disbursements or
benefits pursuant to university policy.
���� �304A-E �Construction.� Nothing in this subpart shall be construed
to:
���� (1)� Create
an employment relationship between a student‑athlete and the university;
���� (2)� Restrict
the university from entering into institutional name, image, and likeness
agreements consistent with intercollegiate athletics governing body rules; or
���� (3)� Limit
the university's authority to adopt policies governing conflicts of interest,
team rules, or academic requirements.
���� �304A-F �Rules.�
The university may adopt rules pursuant to chapter 91 necessary to
implement this subpart."
���� SECTION 3.�
Chapter 304A, Hawaii Revised Statutes, is amended by adding a new
subpart to part II to be appropriately designated and to read as follows:
"   .� Student-Athletes; Name, Image, and Likeness
���� �304A-G �Name, image, and likeness endowment fund;
establishment; administration.�
(a)� There is established the
name, image, and likeness endowment fund to be administered by the university
to support compensation and related benefits for student-athletes participating
in the university's name, image, and likeness program.
���� (b)�
The endowment fund shall be designed to provide a sustainable, long-term
revenue stream to support the university's name, image, and likeness
program.� The university shall determine
an appropriate target corpus for the fund based on programmatic needs and
market conditions.
���� (c)�
Moneys in the endowment fund shall be invested and managed in accordance
with applicable law.� The corpus of the
fund, which shall be a minimum of $10,000,000, shall be preserved; provided
that after the corpus has reached $7,500,000 for a period of three years, the
university may expend a portion of the interest earned necessary to meet
programmatic needs, consistent with prudent fiscal management policies adopted
by the board of regents.
���� (d)�
The following shall be initially deposited into the endowment fund:
���� (1)� $4,000,000
to be transferred out of the university of Hawaii tuition and fees special fund,
established under section 304A-2153;
���� (2)� $2,500,000
appropriated by legislature; provided that $1,000,000 in legislative
appropriations shall remain in the endowment fund; and
���� (3)� $5,000,000
in matching gifts, grants, and donations to be deposited by the university of
Hawaii.
���� (e)�
The following may be deposited into the endowment fund:
���� (1)� Funds
appropriated by the legislature; provided that the university shall secure
matching or supplemental funds from non-state sources;
���� (2)� Revenues
raised by the university for name, image, and likeness activities;
���� (3)� Gifts,
grants, and donations from public or private sources; and
���� (4)� Interest
and other earnings accrued on the fund.
���� (f)�
The university shall establish criteria for the administration of the
name, image, and likeness program supported by the endowment fund, including a
methodology for the distribution of funds in a manner consistent with
applicable law and intercollegiate athletics governing body rules.
���� (g)� The
use and administration of the moneys in the fund shall be subject to the
following requirements:
���� (1)� The
university shall include, as part of its annual report to the legislature, a
separate accounting of the use of funds deposited into the endowment fund;
���� (2)� The
university shall administer name, image, and likeness activities supported by
state funds in a manner consistent with Title IX, based on the best available
guidance at the time; and
���� (3)� The
board of regents shall adopt policies governing the expenditure of state funds
from the endowment fund, including a reasonable spending policy designed to
preserve the long-term value of the fund while ensuring consistent and
meaningful support.
���� (h)�
Nothing in this subpart shall be construed to:
���� (1)� Create
an employment relationship between a student-athlete and the university;
���� (2)� Require
the university to utilize the endowment fund as the sole source of support for
name, image, and likeness activities; or
���� (3)� Limit
the university's authority to support name, image, and likeness activities
through other lawful means, consistent with university policy, applicable law,
and intercollegiate athletics governing body rules."
���� SECTION 4.� Any law to the contrary
notwithstanding, the board of regents shall transfer $4,000,000 from the
university of Hawaii tuition and fees special fund, established under section
304A-2153, Hawaii Revised Statutes, to the name, image, and likeness
endowment fund, established pursuant to section 304A-G, Hawaii Revised
Statutes.
���� SECTION 5.�
There is appropriated out of the general revenues of the State of Hawaii
the sum of $2,500,000 or so much thereof as may be necessary for fiscal year
2026-2027 for deposit into the name, image, and likeness
endowment fund, established pursuant to section 304A-G, Hawaii Revised
Statutes.
���� The sum appropriated shall be expended by
the university of Hawaii for the purposes of this Act.
���� SECTION 6.�
This Act does not affect rights and duties that matured, penalties that
were incurred, and proceedings that were begun before its effective date.
���� SECTION 7.�
In codifying the new sections added by sections 2 and 3 of this Act, the
revisor of statutes shall substitute appropriate section numbers for the
letters used in designating the new sections in this Act.
���� SECTION 8.�
This Act shall take effect upon its approval, and shall be repealed on
June 30, 2030; provided that section 5 shall take effect on July 1, 2026;
provided further that on June 30, 2030, any unencumbered and unexpended
funds remaining in the name, image, and likeness endowment fund shall lapse to
the source of funds.
Report Title:
UH; Student-Athletes;
Compensation; NIL; Policies; Independent Advisors; Protections; Educational
Support; Appropriation
Description:
Affirms
student-athletes' rights to engage in name, image, and likeness activities for
compensation.� Requires the
University of Hawaii to adopt policies governing institutional name, image, and
likeness agreements and other aspects of name, image, and likeness activity
consistent with federal law, rules by an intercollegiate athletics governing
body such as the National Collegiate Athletic Association, and Title IX.� Allows student-athletes to retain
professional representation for the purpose of name, image, and likeness
activities.� Establishes certain
transparency and accountability requirements in the administration of
institutional name, image, and likeness activities.� Provides protections and educational support
for student-athletes who enter into name, image, and likeness agreements.� Establishes an endowment fund for the name,
image, and likeness program.� Appropriates
funds into the endowment fund.� Sunsets
6/30/2030.� (CD1)
The summary description
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not legislation or evidence of legislative intent.