Hawai‘i NIL Bill SB 3263: Where Things Stand After Latest Legislative Movement

Hawai‘i’s debated Name, Image, and Likeness (NIL) bill — SB 3263 — has reached its most advanced stage yet, with lawmakers moving closer to establishing a formal NIL framework for University of Hawai‘i student-athletes.

After months of amendments across both chambers, the bill has now advanced as Conference Draft 1 (CD1), signaling that the House and Senate have reached a negotiated agreement on the final version.

What Passed on Friday (CD1 Explained)

The version that moved forward Friday is the conference committee draft, which is typically the final step before a bill is sent to the Governor.

At this stage:

• Both the House and Senate must vote to adopt the conference committee report (CCR)
• No further amendments are allowed
• If adopted, the bill is enrolled and sent to the Governor for signature or veto

In short: SB 3263 is essentially at the finish line.

Screenshot of House & Senate conference on Friday, May 1 streamed on the Senate YouTube Channel

From Concept to CD1: How the Bill Evolved

SB 3263 didn’t follow a straight path to this point.

Throughout the session, two different approaches to NIL emerged at the Legislature.

On the House side, HB 2384 emphasized building a broad NIL framework while proposing $5 million in more immediate funding to help the University of Hawai‘i stay competitive in a rapidly changing landscape.

The Senate’s version of SB 3263 took a different approach — focusing on a structured system built around an endowment, with detailed reporting requirements and long-term financial planning.

By the time the bill reached conference committee, the goal was no longer choosing one approach over the other. It was finding a way to combine them.

The result is CD1, a hybrid model that blends immediate support with a longer-term funding strategy.

The Headline Number — and the Reality Behind It

At the center of the bill is what’s been widely described as a $10 million NIL fund for UH athletics.

But that number needs context.

The endowment is built from three primary sources:

• $4 million transferred from UH tuition and fees special funds
• $2.5 million appropriated by the State
• $5 million in private matching funds to be raised

On paper, that totals $10 million. In practice, it operates very differently from a traditional spending pool.

What UH Can Actually Use Right Away

The most immediate funding comes from the state appropriation — but even that is partially restricted.

Of the $2.5 million from the State:

• $1 million must remain in the endowment as protected principal
• The remaining $1.5 million is not locked in the same way

That $1.5 million becomes the primary pool UH can use in the short term for NIL-related support.

This is a key distinction. While the bill is often framed around a $10 million figure, UH’s immediate flexibility is much closer to that $1.5 million number.

The Rest Is Built for the Long Term

The remaining funds — including the $4 million from UH and the anticipated $5 million in private contributions — are intended to build the core of the endowment.

Those dollars are not meant to be spent outright. Instead, they function as a long-term financial base.

The bill sets a threshold before UH can begin tapping into the fund more broadly:

• Once the endowment reaches at least $7.5 million
• And maintains that level for three consecutive years

UH can begin using investment earnings, rather than the principal itself, to support NIL compensation and related benefits.

This structure is designed to prevent the fund from being depleted quickly, while creating a more sustainable model over time.