SB 3263: UH; Student-Athletes; Compensation; NIL; Policies; Independent Advisors; Protections; Educational Support; Appropriation

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 of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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; and

     (4)  Provides basic protections and educational support for student-athletes who enter name, image, and likeness agreements.

     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-     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-     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-     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)  The university shall provide advisors to student-athletes.  The advisors may be employees, contractors, volunteers, or otherwise.  The advisors shall provide independent advice and assistance to the student-athletes relating to institutional name, image, and likeness agreements and third-party name, image, and likeness agreements and shall act solely in the student-athletes' best interest.

     §304A-     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; and

     (6)  Any documented challenges, violations, or disciplinary actions taken with regard to name, image, and likeness activities.

     (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-     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-     Rules.  The university may adopt rules pursuant to chapter 91 necessary to implement this subpart."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2030.

Report Title:

UH; Student-Athletes; Compensation; NIL; Policies; Independent Advisors; Protections; Educational Support

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.  Requires the University to provide independent advisors to student-athletes.  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.  Sunsets 6/30/2030.  Effective 7/1/3000.  (HD3)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 (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; and

     (4)  Provides basic protections and educational support for student-athletes who enter name, image, and likeness agreements.

     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-     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-     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-     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)  The university shall provide advisors to student-athletes.  The advisors may be employees, contractors, volunteers, or otherwise.  The advisors shall provide independent advice and assistance to the student-athletes relating to institutional name, image, and likeness agreements and third-party name, image, and likeness agreements and shall act solely in the student-athletes' best interest.

     §304A-     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; and

     (6)  Any documented challenges, violations, or disciplinary actions taken with regard to name, image, and likeness activities.

     (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-     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-     Rules.  The university may adopt rules pursuant to chapter 91 necessary to implement this subpart."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2030.

Report Title:

UH; Student-Athletes; Compensation; NIL; Policies; Independent Advisors; Protections; Educational Support

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.  Requires the University to provide independent advisors to student-athletes.  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.  Sunsets 6/30/2030.  Effective 7/1/3000.  (HD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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. 4:20CV03919 (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; and

     (4)  Provides basic protections and educational support for student-athletes who enter name, image, and likeness agreements.

     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-     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 the federal Education Amendments of 1972, codified as title 20 United States Code section 1681 et seq.

     "University" means the university of Hawaii.

     §304A-     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-     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 third-party name, image, and likeness agreement to rescind the agreement.

     §304A-     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; and

     (6)  Any documented challenges, violations, or disciplinary actions taken with regard to name, image, and likeness activities.

     (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-     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-     Rules.  The university may adopt rules pursuant to chapter 91 necessary to implement this subpart."

     SECTION 3.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 4.  This Act shall take effect on July 1, 3000, and shall be repealed on June 30, 2030.

Report Title:

UH; Student-Athletes; Compensation; NIL; Policies; Protections; Educational Support

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.  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.  Sunsets 6/30/2030.  Effective 7/1/3000.  (HD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 purpose of this Act is to create a sustainable, long‑term, corpus-restricted revenue stream exclusively for a name, image, and likeness program administered by the university of Hawaii by establishing the name, image, and likeness endowment trust fund.

     The legislature finds that the establishment of a name, image, and likeness endowment trust fund to compensate student athletes is a matter of statewide concern pursuant to article X, section 6, of the Hawaii State Constitution.

     SECTION 2.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to subpart E of part V to be appropriately designated and to read as follows:

     "§304A-     Name, image, and likeness endowment trust fund; name, image, and likeness compensation program; requirements; annual report.  (a)  There is established the name, image, and likeness endowment trust fund to be administered by the university of Hawaii to compensate student athletes participating in the university of Hawaii's name, image, and likeness program.

     (b)  There shall be an initial corpus of not less than $10,000,000, which corpus shall be an endowment trust fund to provide a sustainable, long-term revenue stream for the university of Hawaii's name, image, and likeness program.

     (c)  Allocation of all, or any portion of, the corpus of the name, image, and likeness endowment trust fund shall be prohibited.

     (d)  The following may be deposited into the name, image, and likeness endowment trust fund:

     (1)  Funds appropriated by the legislature; provided that the university of Hawaii shall match this funding dollar-for-dollar from funds raised specifically and exclusively for name, image, and likeness;

     (2)  Revenues raised by university of Hawaii athletics specifically and exclusively for name, image, and likeness to compensate student athletes participating in the university's name, image, and likeness program; and

     (3)  Interest accrued on the corpus of the endowment trust fund.

     (e)  The university of Hawaii shall:

     (1)  Establish the criteria for a name, image, and likeness program to compensate student athletes from the endowment trust fund; and

     (2)  Develop a formula for distribution from the trust fund to compensate student athletes; provided that any compensation shall be made in consideration of the value of the student athlete's name, image, and likeness, including any exposure generated from the student athlete's name, image, and likeness.

     (f)  A student athlete who is compensated under this section shall retain an athlete agent registered with the director of commerce and consumer affairs pursuant to chapter 481Z, who shall represent the student athlete; provided that a student athlete's parent or legal guardian may represent the student athlete in areas agreed to by the student athlete.

     (g)  Any moneys in the endowment trust fund shall lapse to the general fund if compensation for name, image, and likeness is no longer authorized or the university of Hawaii is no longer operating a division I sports program in the National Collegiate Athletic Association.

     (h)  The university of Hawaii shall submit an annual report to the legislature no later than December 1 of each year, detailing:

     (1)  The amount of revenues raised for the name, image, and likeness endowment trust fund;

     (2)  The balance of the name, image, and likeness endowment trust fund;

     (3)  A list of teams with student athletes compensated by the trust fund and the amount of compensation for each team; and

     (4)  The formula used to determine the compensation amount."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the name, image, and likeness endowment trust fund established by this Act; provided that the university of Hawaii shall match this funding dollar-for-dollar from funds raised as of the effective date of this Act, specifically and exclusively for name, image, and likeness.

     The sum appropriated shall be expended by the university of Hawaii for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2050.

Report Title:

UH; Name, Image, and Likeness Endowment Trust Fund; Corpus Restricted; Name, Image, and Likeness Program; Student Athletes; Representation; Annual Report; Appropriation

Description:

Establishes a Name, Image, and Likeness Endowment trust fund to be administered by the University of Hawaii to compensate student athletes.  Requires an initial corpus of a certain amount for the Name, Image, and Likeness Endowment trust fund and requires interest to be deposited into the trust fund.  Prohibits the allocation of all, or any portion of, the corpus of the Name, Image, and Likeness Endowment trust fund.  Requires UH to establish a Name, Image, and Likeness Program.  Requires UH to establish criteria for the Name, Image, and Likeness Program and a formula for the distribution of funds to student athletes.  Requires student athletes being compensated for their name, image, and likeness to retain a registered athlete agent.  Allows a student athlete's parent or legal guardian to represent the student athlete in areas agreed to by the student athlete.  Requires UH to submit an annual report to the Legislature.  Appropriates funds.  Effective 7/1/2050.  (SD2)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 purpose of this Act is to create a sustainable, long‑term, corpus-restricted revenue stream exclusively for a name, image, and likeness program administered by the university of Hawaii by establishing the name, image, and likeness endowment fund.

     The legislature finds that the establishment of a name, image, and likeness endowment fund to compensate student athletes is a matter of statewide concern pursuant to article X, section 6, of the Hawaii State Constitution.

     SECTION 2.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to subpart E of part V to be appropriately designated and to read as follows:

     "§304A-    Name, image, and likeness endowment fund; name, image, and likeness compensation program; requirements; annual report.  (a)  There is established the name, image, and likeness endowment fund to be administered by the university of Hawaii to compensate student athletes participating in the university of Hawaii's name, image, and likeness program.

     (b)  There shall be an initial corpus of not less than $10,000,000, which corpus shall be an endowment fund to provide a sustainable, long-term revenue stream for the university of Hawaii's name, image, and likeness program.

     (c)  Allocation of all, or any portion of, the corpus of the name, image, and likeness endowment fund shall be prohibited.

     (d)  The following may be deposited into the name, image, and likeness endowment fund:

     (1)  Funds appropriated by the legislature; provided that the university of Hawaii shall match this funding dollar-for-dollar from funds raised specifically and exclusively for name, image, and likeness;

     (2)  Revenues raised by university of Hawaii athletics specifically and exclusively for name, image, and likeness to compensate student athletes participating in the university's name, image, and likeness program; and

     (3)  Interest accrued on the corpus of the endowment fund.

     (e)  The university of Hawaii shall:

     (1)  Establish the criteria for a name, image, and likeness program to compensate student athletes from the endowment fund; and

     (2)  Develop a formula for distribution from the fund to compensate student athletes; provided that any compensation shall be made in consideration of the value of the student athlete's name, image, and likeness, including any exposure generated from the student athlete's name, image, and likeness.

     (f)  A student athlete who is compensated under this section shall retain an athlete agent registered with the director of commerce and consumer affairs pursuant to chapter 481Z, who shall represent the student athlete; provided that a student athlete's parent or legal guardian may represent the student athlete in areas agreed to by the student athlete.

     (g)  Any moneys in the endowment fund shall lapse to the general fund if compensation for name, image, and likeness is no longer authorized or the university of Hawaii is no longer operating a division I sports program in the National Collegiate Athletic Association.

     (h)  The university of Hawaii shall submit an annual report to the legislature no later than December 1 of each year, detailing:

     (1)  The amount of revenues raised for the name, image, and likeness endowment fund;

     (2)  The balance of the name, image, and likeness endowment fund;

     (3)  A list of student athletes compensated by the fund and the amount of compensation for each student athlete; and

     (4)  The formula used to determine the compensation amount."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the name, image, and likeness endowment fund established by this Act; provided that the university of Hawaii shall match this funding dollar-for-dollar from funds raised as of the effective date of this Act, specifically and exclusively for name, image, and likeness.

     The sum appropriated shall be expended by the university of Hawaii for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2026.

Report Title:

UH; Name, Image, and Likeness Endowment Fund; Corpus Restricted; Name, Image, and Likeness Program; Student Athletes; Representation; Annual Report; Appropriation

Description:

Establishes a Name, Image, and Likeness Endowment Fund to be administered by the University of Hawaii to compensate student athletes.  Requires an initial corpus of a certain amount for the Name, Image, and Likeness Endowment Fund and requires interest to be deposited into the Fund.  Prohibits the allocation of all, or any portion of, the corpus of the Name, Image, and Likeness Endowment Fund.  Requires UH to establish a Name, Image, and Likeness Program.  Requires UH to establish criteria for the Name, Image, and Likeness Program and a formula for the distribution of funds to student athletes.  Requires student athletes being compensated for their name, image, and likeness to retain a registered athlete agent.  Allows a student athlete's parent or legal guardian to represent the student athlete in areas agreed to by the student athlete.  Requires UH to submit an annual report to the Legislature.  Appropriates funds.  (SD1)

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

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 purpose of this Act is to create a sustainable, long‑term, corpus-restricted revenue stream exclusively for a name, image, and likeness program administered by the university of Hawaii by establishing the name, image, and likeness endowment fund.

     The legislature finds that the establishment of a name, image, and likeness endowment fund to compensate student‑athletes is a matter of statewide concern pursuant to article X, section 6, of the Hawaii State Constitution.

     SECTION 2.  Chapter 304A, Hawaii Revised Statutes, is amended by adding a new section to subpart E of part V to be appropriately designated and to read as follows:

     "§304A-    Name, image, and likeness endowment fund; name, image, and likeness compensation program; requirements; annual report.  (a)  There is established the name, image, and likeness endowment fund to be administered by the university of Hawaii to compensate student-athletes participating in the university of Hawaii's name, image, and likeness program.

     (b)  There shall be an initial corpus of not less than $10,000,000, which corpus shall be an endowment fund to provide a sustainable, long-term revenue stream for the university of Hawaii's name, image, and likeness program.

     (c)  Allocation of all, or any portion of, the corpus of the name, image, and likeness endowment fund shall be prohibited.

     (d)  The following may be deposited into the name, image, and likeness endowment fund:

     (1)  Funds appropriated by the legislature; provided that the university of Hawaii shall match this funding dollar-for-dollar from funds raised specifically and exclusively for name, image, and likeness;

     (2)  Revenues raised by university of Hawaii athletics specifically and exclusively for name, image, and likeness to compensate athletes participating in the university's name, image, and likeness program; and

     (3)  Interest accrued on the corpus of the endowment fund.

     (e)  The university of Hawaii shall:

     (1)  Establish the criteria for a name, image, and likeness program to compensate student-athletes from the endowment fund; and

     (2)  Develop a formula for distribution from the fund to compensate student-athletes; provided that any compensation shall be made in consideration of the value of the student-athlete's name, image, and likeness, including any exposure generated from the student-athlete's name, image, and likeness.

     (f)  A student-athlete who is compensated under this section shall retain an athlete agent registered with the director of commerce and consumer affairs pursuant to chapter 481Z, who shall represent the student-athlete; provided that a student-athlete's parent or legal guardian may represent the student-athlete in areas agreed to by the student-athlete.

     (g)  Any moneys in the endowment fund shall lapse to the general fund if compensation for name, image, and likeness is no longer authorized or the university of Hawaii is no longer operating a division I sports program in the National Collegiate Athletic Association.

     (h)  The university of Hawaii shall submit an annual report to the legislature no later than December 1 of each year, detailing:

     (1)  The amount of revenues raised for the name, image, and likeness endowment fund;

     (2)  The balance of the name, image, and likeness endowment fund;

     (3)  A list of student-athletes compensated by the fund and the amount of compensation for each student-athlete; and

     (4)  The formula used to determine the compensation amount."

     SECTION 3.  There is appropriated out of the general revenues of the State of Hawaii the sum of $5,000,000 or so much thereof as may be necessary for fiscal year 2026-2027 to be deposited into the name, image, and likeness endowment fund established by this Act; provided that the university of Hawaii shall match this funding dollar-for-dollar from funds raised as of the effective date of this Act, specifically and exclusively for name, image, and likeness.

     The sum appropriated shall be expended by the university of Hawaii for the purposes of this Act.

     SECTION 4.  New statutory material is underscored.

     SECTION 5.  This Act shall take effect on July 1, 2026.

Report Title:

UH; Name, Image, and Likeness Endowment Fund; Corpus Restricted; Name, Image, and Likeness Program; Student‑Athletes; Representation; Annual Report; Appropriation

Description:

Establishes a Name, Image, and Likeness Endowment Fund to be administered by the University of Hawaii to compensate student‑athletes.  Requires an initial corpus of a certain amount for the Name, Image, and Likeness Endowment Fund and requires interest to be deposited into the Fund.  Prohibits the allocation of all, or any portion of, the corpus of the Name, Image, and Likeness Endowment Fund.  Requires UH to establish a Name, Image, and Likeness Program.  Requires UH to establish criteria for the Name, Image, and Likeness Program and a formula for the distribution of funds to student-athletes.  Requires student‑athletes being compensated for their name, image, and likeness to retain a registered athlete agent.  Allows a student‑athlete's parent or legal guardian to represent the student‑athlete in areas agreed to by the student-athlete.  Requires UH to submit an annual report to the Legislature.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.

STAND. COM. REP. NO. 3017

Honolulu, Hawaii

RE:     S.B. No. 3263

        S.D. 2

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Ways and Means and Commerce and Consumer Protection, to which was referred S.B. No. 3263, S.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

beg leave to report as follows:

     The purpose and intent of this measure is to establish the name, image, likeness endowment fund, which will be administered by the University of Hawaii to compensate student athletes.

     Your Committees received written comments in support of this measure from the University of Hawaii and three individuals.

     Your Committees received written comments on this measure from the Department of the Attorney General and the Grassroot Institute of Hawaii.

     Your Committees find that this measure will create a long‑term, sustainable revenue stream for name, image, and likeness compensation that will help the University of Hawaii to recruit and retain elite student athletes.

     Your Committees have amended this measure by:

     (1)  Designating the fund as a trust fund and renaming it accordingly;

     (2)  Specifying that the annual reports submitted by the University of Hawaii contain a list of teams with student athletes compensated by the name, image, likeness endowment trust fund, instead of a list of student athletes compensated by the trust fund; and

     (3)  Changing the effective date to July 1, 2050, to facilitate further discussion on the measure.

     As affirmed by the records of votes of the members of your Committees on Ways and Means and Commerce and Consumer Protection that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3263, S.D. 1, as amended herein, and recommend that it pass Third Reading in the form attached hereto as S.B. No. 3263, S.D. 2.

Respectfully submitted on behalf of the members of the Committees on Ways and Means and Commerce and Consumer Protection,

STAND. COM. REP. NO. 2475

Honolulu, Hawaii

RE:     S.B. No. 3263

        S.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Sir:

     Your Committees on Education and Economic Development and Tourism, to which was referred S.B. No. 3263 entitled:

"A BILL FOR AN ACT RELATING TO THE UNIVERSITY OF HAWAII,"

beg leave to report as follows:

     The purpose and intent of this measure is to:

     (1)  Establish a Name, Image, and Likeness (NIL) Endowment Fund to be administered by the University of Hawaii (UH) to compensate student athletes;

     (2)  Require an initial corpus of a certain amount for the NIL Endowment Fund and require interest to be deposited into the Fund;

     (3)  Prohibit the allocation of all, or any portion of, the corpus of the NIL Endowment Fund;

     (4)  Require UH to establish a NIL Program;

     (5)  Require UH to establish criteria for the NIL Program and a formula for the distribution of funds to student athletes;

     (6)  Require student athletes being compensated for their NIL to retain a registered athlete agent;

     (7)  Allow a student athlete's parent or legal guardian to represent the student athlete in areas agreed to by the student athlete;

     (8)  Require UH to submit an annual report to the Legislature; and

     (9)  Appropriate funds.

     Your Committees received testimony in support of this measure from the Department of Athletics of the University of Hawaii at Manoa and two individuals.

     Your Committees received testimony in opposition to this measure from one individual.

     Your Committees received comments on this measure from one individual.

     Your Committees find that a sustainable, long-term, corpus restricted revenue stream is a viable option to help fund and support compensation for student athletes enrolled at the University of Hawaii.  Collegiate institutions have been permitted to use funding to provide additional scholarships and share revenue, and the money generated from an endowment may be granted to student athletes in accordance with the new national NIL framework.  NIL opportunities are critical to college athletics because these opportunities allow institutions to recruit and retain elite student athletes while recognizing the economic value that student athletes generate for their institutions.  Your Committees further find that adequate seed funding for the NIL Endowment Fund would be necessary to ensure that UH can attract and compensate student athletes, provided that the University can match the state funds.  This measure will provide support to UH and stabilize its athletics program, ensuring that UH athletics will remain competitive in the Mountain West and Big West Conferences.

     Your Committees have amended this measure by:

     (1)  Inserting a blank appropriation amount; and

     (2)  Making technical, nonsubstantive amendments for the purposes of clarity and consistency.

     Your Committees note that this measure, as amended, contains an unspecified appropriation amount.  Should your Committee on Ways and Means choose to deliberate on this measure, your Committees respectfully requests that it consider an appropriation amount of $5,000,000.

     As affirmed by the records of votes of the members of your Committees on Education and Economic Development and Tourism that are attached to this report, your Committees are in accord with the intent and purpose of S.B. No. 3263, as amended herein, and recommend that it pass Second Reading in the form attached hereto as S.B. No. 3263, S.D. 1, and be referred to your Committees on Ways and Means and Commerce and Consumer Protection.

Respectfully submitted on behalf of the members of the Committees on Education and Economic Development and Tourism,