UH NIL bill improved by removing taxpayer funding provision

March 25, 2026, 2 p.m. 
Hawaii State Capitol
Conference Room 329 and Videoconference

To: House Committee on Consumer Protection & Commerce
      Rep. Scot Z. Matayoshi, Chair
      Rep. Tina Nakada Grandinetti, Vice Chair

From: Grassroot Institute of Hawaii
           Ted Kefalas, Director of Strategic Campaigns

RE: COMMENTS ON SB3263 SD2 HD1 — RELATING TO THE UNIVERSITY OF HAWAII

Aloha Chair, Vice Chair and other Committee Members,

The Grassroot Institute of Hawaii offers comments on SB3263 SD2 HD1, which would affirm the right of student-athletes to engage in name, image, and likeness activities for compensation, require the University to adopt NIL policies, establish transparency and accountability requirements in the administration of NIL activities, and provide certain protections and educational support for student-athletes entering NIL agreements.

This bill deserves praise for its effort to establish NIL policies and enable students to participate in NIL contracts. This is an evolving area that would be helped by greater clarity for both students and schools, though federal legislation[1] may soon change the landscape of NIL payments.

In addition, the current version of the bill has wisely removed an appropriation that would have allowed state funds to be used for athlete compensation. Any legislative appropriation provided for the establishment of an NIL program should be limited to administrative and educational needs. UH should follow the established practice of schools that pay student athletes from third-party contracts, donations, revenues and other funding sources, not taxpayer dollars.

Thank you for the opportunity to testify.

Ted Kefalas
Director of Strategic Campaigns
Grassroot Institute of Hawaii
1050 Bishop St. #508 | Honolulu, HI 96813 | 808-864-1776 | info@grassrootinstitute.org

[1] H.R. 4312 – SCORE Act, 119th Congress (2025-2026).

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