STAND. COM. REP. NO. 761-26

Honolulu, Hawaii

, 2026

RE: H.B. No. 2384

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs, to which was referred H.B. No. 2384, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO STUDENT-ATHLETE COMPENSATION,"

beg leave to report as follows:

The purpose of this measure is to:

(1) Affirm student-athletes' rights to engage in name, image, and likeness activities for compensation;

(2) Require the University of Hawaii to adopt policies governing institutional name, image, and likeness agreements and other aspects of such activity;

(3) Establish certain transparency and accountability requirements in the administration of institutional name, image, and likeness activities;

(4) Provide protections and educational support for student-athletes who enter into name, image, and likeness agreements; and

(5) Appropriate funds.

Your Committees received testimony in support of this measure from the University of Hawaii at Manoa Department of Athletics; University of Hawaii at Hilo Department of Athletics; MK Advocacy Group, LLC; and numerous individuals. Your Committees received comments on this measure from the Grassroot Institute of Hawaii.

Your Committees find that the House v. National Collegiate Athletic Association settlement revolutionized collegiate athletics by allowing schools to directly share revenues with athletes, ending the amateurism model. The settlement allows student-athletes to continue to sign name, image, and likeness (NIL) agreements with third parties, but permits the National Collegiate Athletic Association (NCAA) and conferences to enforce standards and limitations on those deals to prevent schools from circumventing the salary cap. This measure provides a framework for the University of Hawaii to oversee NIL agreements by its student-athletes to ensure that they are in compliance with the settlement and NCAA rules.

Your Committees have amended this measure by:

(1) Specifying that a use of the appropriation be for direct payments to student-athletes from institutional NIL agreements; and

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

Your Committees note that, in the discussions before your Committees in the public hearing, it was noted that no other state has directly appropriated public funds for direct NIL payments. Your Committees respectfully request your Committee on Finance, should it deliberate on this measure, to examine the approach proposed in this measure, in which direct payments to student athletes are funded by the taxpayers and determine whether another approach is more appropriate.

As affirmed by the records of votes of the members of your Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs that are attached to this report, your Committees are in accord with the intent and purpose of H.B. No. 2384, H.D. 1, as amended herein, and recommend that it be referred to your Committee on Finance, in the form attached hereto as H.B. No. 2384, H.D. 2.

Respectfully submitted on behalf of the members of the Committees on Consumer Protection & Commerce and Judiciary & Hawaiian Affairs,

____________________________ DAVID A. TARNAS, Chair

____________________________ SCOT Z. MATAYOSHI, Chair