SB3263 CD1

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.

(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.

THE SENATE	S.B. NO.	3263
THIRTY-THIRD LEGISLATURE, 2026		S.D. 2
STATE OF HAWAII		H.D. 3
		C.D. 1