Two NIL Bills at the Capitol: What UH Fans Need to Know

BY HSRN STAFF | HONOLULU
PUBLISHED FEBRUARY 6, 2026

Two major bills at the Hawaiʻi State Capitol could significantly impact how University of Hawaiʻi student-athletes are compensated for their name, image, and likeness (NIL). While both bills deal with NIL, they take very different approaches — and understanding the difference matters for the future of UH athletics.

Here’s a simple breakdown of what each bill does, followed by a look at the pros and cons.

HB2384: Setting the Rules for NIL at UH

What it is:
HB2384 creates a statewide NIL framework for the University of Hawaiʻi. Instead of focusing on how much money athletes are paid, this bill focuses on rules, protections, transparency, and oversight.

What HB2384 does:

Confirms that UH student-athletes can earn money from NIL activities
Ensures NIL compensation does not affect scholarships or eligibility
Requires UH to adopt clear NIL policies
Provides education for athletes on contracts, taxes, and finances
Protects athletes’ privacy by reporting NIL activity in aggregate, not by name
Requires UH to consider Title IX when administering NIL programs
Allows both third-party NIL deals and institutional agreements
Includes a sunset date of 2030, meaning lawmakers will review it before making it permanent

Why it matters:
HB2384 is about getting NIL right before going all-in financially. It gives UH flexibility as college sports continue to change, while putting guardrails in place to protect student-athletes.

SB3263: Creating an NIL Endowment Fund

What it is:
SB3263 creates a permanent NIL endowment fund to directly pay UH student-athletes through a university-run program.

How the money works:

Requires a minimum $10 million endowment
The State would contribute $5 million
UH must raise $5 million to match it
The $10 million principal cannot be spent
Only investment earnings (typically ~4–5% per year) can be used to pay athletes

What that means in real terms:

A $10M endowment would likely generate about $400,000–$500,000 per year
That amount would be spread across all participating athletes and sports

Other key points:

Athletes paid through the fund must use a registered agent
UH must publicly report which athletes are paid and how much
If UH ever leaves Division I athletics, the entire fund reverts to the state
The bill has no sunset date — it’s permanent

Why it matters:
SB3263 prioritizes long-term funding stability, but limits how much money athletes can receive each year and requires significant fundraising by UH.

Comparing the Two: Pros and Cons

HB2384 — Pros

Protects student-athletes and their privacy
Flexible and adaptable to future NIL changes
Allows third-party NIL opportunities
Strong Title IX emphasis
Temporary, with built-in legislative review

HB2384 — Cons

Does not create a guaranteed funding source
Leaves NIL compensation levels largely up to the market

SB3263 — Pros

Creates a permanent NIL funding structure
Provides predictable, long-term funding
Strong public transparency and accountability

SB3263 — Cons

UH must raise millions in matching funds
Most of the money is locked away and cannot be spent
Annual payouts may be small compared to modern NIL expectations
Public disclosure of individual athlete payments raises privacy concerns
Little flexibility if NIL rules change nationally

The Big Picture for UH Fans

At its core, this is a debate about approach.

HB2384 focuses on rules, protections, and flexibility first
SB3263 focuses on building a long-term funding engine, even if short-term payouts are limited

As NIL continues to evolve nationwide, these decisions could shape the future of UH athletics for years to come.

Upcoming Hearing on HB2384 — Get Involved

House Bill 2384, the measure that establishes a statewide framework for name, image, and likeness (NIL) activity at the University of Hawaiʻi, is scheduled for a public hearing before the House Higher Education Committee.

This is a key opportunity for UH fans, student-athletes, coaches, and community members to listen in, offer testimony, or simply stay informed about how NIL policy could evolve in Hawaiʻi.

Hearing Date: Wednesday, February 11, 2026
Time: 2:30 p.m. HT
Location: Bachman Hall, University of Hawai’i at Mānoa OR via video conference HERE
Committee: House of Representatives Committee on Higher Education (HED)

How to Participate in the HB2384 Hearing

Visit the official hearing notice page: HB 2384 RELATING TO STUDENT-ATHLETE COMPENSATION
Click “Submit Testimony”
Select HB2384
Choose “Support”, “Oppose”, or “Comments Only”
Write a short message (even a few sentences helps)
Submit before the posted deadline