UH Athletics NIL Bill Fails Final Senate Vote

Just one week after conference committee members described SB 3263 as a “win-win situation” for University of Hawai‘i student-athletes, the measure failed to pass final reading in the Hawai‘i State Senate on Friday in a dramatic reversal that effectively halts the latest effort to establish a state-supported NIL framework tied to UH Athletics.

SB 3263 SD2 HD3 CD1 — one of the most closely watched collegiate athletics bills of the 2026 legislative session — failed on final Senate reading by a vote of 11-12, with two senators excused.

The final Senate vote against the bill were Senators Donovan Dela Cruz, Donna Mercado Kim, Troy Hashimoto, Samantha DeCorte, Brandon Elefante, Kurt Fevella, Mike Gabbard, Lorraine Inouye, Michelle Kidani, Glenn Wakai, Rachele Lamosao, and Sharon Moriwaki. Senators McKelvey and San Buenaventura were excused.

The outcome marked a notable shift from the May 1 conference committee hearing, where Senate conferees advanced the compromise version of the bill unanimously among voting members.

At that hearing, Senator Donna Mercado Kim praised the agreement after weeks of negotiations between lawmakers.

“I’m just glad that we were able to support our student athletes. I think this is a win-win situation for everybody.”

Conference committee records show Senators Mercado Kim, Hashimoto, and DeCorte all voted “Aye” in support of advancing the conference draft on May 1 before later voting against the bill at final reading on May 8.

Beyond its financial components, SB 3263 was also designed to establish Hawai‘i’s broader legal and operational NIL framework for University of Hawai‘i student-athletes.

According to the bill language, the measure would have formally affirmed the rights of student-athletes to participate in NIL activities while requiring UH to adopt policies governing institutional NIL agreements consistent with NCAA rules, federal law, and Title IX requirements. The bill also aimed to establish transparency standards, accountability measures, and educational protections for student-athletes entering NIL agreements.

The latest conference draft proposed a framework that included $2.5 million appropriated by the legislature along with a transfer of $4 million from University of Hawai‘i tuition and fees special fund to support NIL-related initiatives connected to UH Athletics. The measure represented a substantially revised version of earlier NIL legislation debated throughout the session, including negotiations surrounding endowment structures, oversight provisions, and funding mechanisms.

The sudden reversal came with limited floor discussion during final reading, though Senator Donovan Dela Cruz spoke in opposition before the vote and read portions of a letter he said came from the University of Hawai‘i Vice President for Budget and Finance following discussions between legislative finance and higher education leaders.

During floor remarks, Dela Cruz read:

“We cannot proceed with the current proposal…”

He continued by reading the university’s concerns regarding “a state-funded endowment for name, image, and likeness” and said the university believed the proposal created legal and fiscal challenges it “cannot overcome.”

According to Dela Cruz, the letter also stated:

“We must respectfully request a deferral…”

The senator additionally noted on the floor that UH currently has “at least $411 million” within its tuition and fees special fund while arguing against the bill’s structure.

Update: UH Clarifies Position on SB 3263

Following publication, Hawai‘i Sports Radio Network received additional clarification from the University of Hawai‘i regarding SB 3263 and the concerns referenced on the Senate floor before the bill’s final vote.

According to UH, during the conference committee process the university shared concerns that the proposed endowment structure alone would not fully address the immediate need for NIL funding. Lawmakers then asked UH to formally outline those concerns in writing.

“The bill was ultimately amended to include $1.5 million for next year and UH supported the measure.

The university was surprised when an earlier version of UH’s concerns was read aloud before the Senate voted on and ultimately voted against the bill.”

UH emphasized that SB 3263 was not a university-introduced measure, noting that the bill originated in the Senate.

The university also noted that the House version of the state budget included the $5 million in NIL funding UH had requested, though that funding did not survive into the final budget draft.

UH added that while the legislative session has concluded, discussions regarding long-term athletics support are expected to continue moving forward.