The following testimony was submitted by the Grassroot Institute of Hawaii on March 3, 2026, for consideration by the Senate Committees on Ways and Means and Commerce and Consumer Protection.
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March 3, 2026, 10:06 a.m.
Hawaii State Capitol
Conference Room 211 and Videoconference
To: Senate Committee on Ways and Means
Sen. Donovan M. Dela Cruz, Chair
Sen. Sharon Y. Moriwaki, Vice Chair
Senate Committee on Commerce and Consumer Protection
Sen. Jarrett Keohokalole, Chair
Sen. Carol Fukunaga, Vice Chair
From: Grassroot Institute of Hawaii
Ted Kefalas, Director of Strategic Campaigns
RE: COMMENTS ON SB3263 SD1 — RELATING TO THE UNIVERSITY OF HAWAII
Aloha Chairs, Vice Chairs and other members of the Committees,
The Grassroot Institute of Hawaii offers comments onSB3263 SD1, which would establish a name, image and likeness endowment fund for student athletes to be administered by the University of Hawaii and requires UH to establish certain rules concerning NIL activities and disbursements. It also contains a blank appropriation for that fund, with the previous committee suggesting an appropriation of $5 million.
Inasmuch as this bill seeks to clarify NIL rules and enable students to participate in NIL contracts, it deserves praise. 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.
However, the bill should also include a provision clarifying that state funds cannot be used to compensate athletes. Thus, any appropriation provided for the establishment of an NIL program should be limited to administrative and educational needs and should not be used to make direct payments to athletes. If the university decides to pay its athletes, it should follow the established practice of other schools, which 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
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