STAND. COM. REP. NO. 1533-26

Honolulu, Hawaii

, 2026

RE: S.B. No. 3263

S.D. 2

H.D. 2

Honorable Nadine K. Nakamura

Speaker, House of Representatives

Thirty-Third State Legislature

Regular Session of 2026

State of Hawaii

Madame:

Your Committee on Consumer Protection & Commerce, to which was referred S.B. No. 3263, S.D. 2, H.D. 1, entitled:

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

begs 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; and

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

Your Committee received testimony in support of this measure from the University of Hawaiʻi at Mānoa Department of Athletics; MK Advocacy Group; Chick-fil-A Ala Moana & Kapiʻolani & Kalākaua; KHON2 Broadcast Center; Island Energy Services; Hawaii Ironworkers Stabilization Fund; and five individuals. Your Committee 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 Committee has amended this measure by:

(1) Requiring the University of Hawaii to provide advisors who will provide independent advice and assistance to student-athletes relating to name, image, and likeness agreements and who are to act solely in the student-athletes' best interest; and

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

As affirmed by the record of votes of the members of your Committee on Consumer Protection & Commerce that is attached to this report, your Committee is in accord with the intent and purpose of S.B. No. 3263, S.D. 2, H.D. 1, as amended herein, and recommends that it be referred to your Committee on Finance in the form attached hereto as S.B. No. 3263, S.D. 2, H.D. 2.

Respectfully submitted on behalf of the members of the Committee on Consumer Protection & Commerce,

____________________________

SCOT Z. MATAYOSHI, Chair