Hawaii NIL Laws: Rules for College and High School Athletes

Hawaii has NO state NIL statute—”Statutory Silence” (SB 2915 failed). Unique “Competitive Friction”: General Excise Tax (GET) 4.5% on GROSS receipts + $5.6M annual travel deficit + $2.2M opponent subsidies. “Boost the ‘Bows” fund (tax-deductible, institutional) + “Rainbow Collective” (commercial, Mike Kawazoe). “Jersey Patch” innovation = FIRST NIL collective on practice jerseys. HHSAA high school NIL = PROHIBITED (“brain drain” to mainland). MWC 5% share (~$4.25M) vs. UNLV 24.5%. “Paradise Tax” = high cost of living erodes NIL value. Here’s the complete guide.

Hawaii’s NIL Evolution

Hawaii = unique “Competitive Friction” environment. Geographic isolation + GET tax + travel deficit + high school prohibition = asymmetric competition vs. mainland peers.

NO State NIL Statute — “Statutory Silence”:

• Hawaii = one of few states without specific NIL legislation
• SB 2915 (2024) and similar measures failed to gain traction
• Operates under NCAA interim policy (“permissive” guidance)
• Flexibility: No restrictive clauses to repeal (unlike AL, FL)
• Cost: No “safe harbor” protection from NCAA enforcement
• No legislative framework to address GET tax implications
• Legislature focused on air conditioning for schools, not NIL

General Excise Tax (GET) — “Hawaii NIL Tax”:

• GET = tax on GROSS income (not sales tax on consumer)
• Student-athletes = “businesses” (independent contractors)
• Oahu rate: 4.5% (4.0% + county surcharge)
• Maximum pass-on rate: 4.712%
• No “casual sale” exemption for continuous NIL activity
• $10K NIL: HI athlete owes ~$450 GET vs. UNLV/Boise State $0
• Athletes must register for GET license + file returns
• To provide “net” $10K, collective must pay ~$10,471

Travel Deficit — $5.6M Annual Burden:

• Travel costs: $5.6M (FY 2025) = ~18% of total athletics budget
• Significantly higher than Mountain West median
• UH subsidizes OPPONENTS’ travel: ~$2.2M annually
• “Pay-to-play”: Fund competition’s flights, hotels, meals
• Every dollar on travel = dollar NOT for revenue sharing
• HB88 (2025): Proposed pilot for high school inter-island travel

“Boost the ‘Bows” Fund — Institutional Arm:

• Department-wide fund for NIL, scholarships, recruitment, retention
• Managed by UH Foundation (institutional, NOT third-party)
• Contributions = TAX-DEDUCTIBLE (educational mission)
• Constraint: Must be philanthropic, NOT quid pro quo
• Cannot demand specific athlete appearances for donation
• Deployed at athletic department discretion

“Rainbow Collective” — Commercial Engine:

• Third-party commercial NIL collective
• Founded by Mike Kawazoe (hotelier, lifelong UH fan)
• Goal: “Drive revenue for UH student-athletes”
• NOT 501(c)(3)—contributions NOT tax-deductible
• Processing via “Student Athlete Empowerment” (Dallas, TX)
• Business expenses may be deductible if legitimate quid pro quo
• Coach Timmy Chang: Critical for retention vs. $300K market offers

“Jersey Patch” Innovation:

• Rainbow Collective logo on UH men’s basketball PRACTICE jerseys
• FIRST NIL collective to sponsor team practice gear in NCAA
• Bypasses NCAA prohibition on in-game uniform advertising
• Proof-of-concept for commercial integration

“Paradise Tax” — Cost of Living:

• Honolulu = among highest cost of living in nation
• Housing, food, utilities significantly higher than mainland
• $10K NIL in Hawaii = less purchasing power than Laramie, Boise
• GET + high income tax (11% top rate) + cost of living = triple hit

MWC Revenue Distribution — 5% Share:

• Mountain West Conference (MWC) distribution model (2025)
• Air Force, UNLV: 24.5% shares (~$20M+ from exit fees)
• Hawaii: 5% share (~$4.25M)
• UNLV windfall covers first year of $20.5M revenue sharing
• UH receives fraction—must rely on donors + state subsidies

Why Hawaii Matters:

Hawaii = unique “Competitive Friction” (GET 4.5% + $5.6M travel + $2.2M opponent subsidies + “Paradise Tax”). NO state NIL statute (SB 2915 failed). “Boost the ‘Bows” (tax-deductible) + “Rainbow Collective” (commercial). “Jersey Patch” = FIRST NIL collective on practice jerseys. HHSAA high school NIL = PROHIBITED. MWC 5% share (~$4.25M) vs. UNLV 24.5%. House settlement $20.5M cap = “fiscally impossible” without massive new funding.

Hawaii College NIL Rules

No state statute = governed by NCAA rules, House settlement terms, and UH institutional policy. Dual-engine model: “Boost the ‘Bows” (institutional) + “Rainbow Collective” (commercial).

What Hawaii Offers:

• Operational flexibility (no restrictive state law)
• Tax-deductible “Boost the ‘Bows” fund
• “Rainbow Collective” commercial opportunities
• Note: GET 4.5% + travel burden + “Paradise Tax”

UH Infrastructure:

• “Boost the ‘Bows” = institutional, tax-deductible, UH Foundation
• “Rainbow Collective” = commercial, Mike Kawazoe, NOT tax-deductible
• “Jersey Patch” innovation (practice jerseys)

Hawaii High School NIL Rules

HHSAA (Hawaii High School Athletic Association) maintains STRICT PROHIBITION on NIL monetization. Hawaii joins shrinking minority of states (with Alabama, Indiana) that have NOT modernized prep bylaws.

Key Facts:

• Governing Body: Hawaii High School Athletic Association (HHSAA)
• Status: PROHIBITED
• Rule: Administrative Regulations Section I

HHSAA Prohibition:

Student-athlete LOSES amateur status if they “capitalize on athletic fame by receiving money or gifts of monetary value.” Forbids: Acceptance of awards from outside persons without approval; cash awards for any competition. Effectively bans: Commercial endorsements, paid coaching, social media monetization linked to athlete identity.

“Unaffiliated” Ambiguity:

HHSAA does NOT explicitly offer “unaffiliated” safe harbor (unlike Alaska ASAA). Athletes risk eligibility even for modest brand monetization. “Chilling effect” on any entrepreneurial activity. Creates “trap for the unwary.”

“Brain Drain” Pipeline Problem:

Mainland schools can promise immediate NIL upon enrollment. Top Hawaii prospects incentivized to move to CA, UT for senior year. “Forum shopping” for permissive states. By time UH can offer NIL, local star has mainland foothold. Depletes local talent pool + severs fan connection to homegrown stars.

College vs. High School: Key Differences

Feature	College (No State Statute)	High School (HHSAA)
NIL Status	Legal (NCAA interim policy)	PROHIBITED
State Statute	NONE (SB 2915 failed)	HHSAA Admin. Regs. Sec. I
GET Tax	4.5% on gross receipts	N/A (prohibited)
School Logos/Uniforms	Allowed	N/A (prohibited)
State Income Tax	11% top rate	N/A
Tax-Deductible Option	Boost the 'Bows" = Yes	N/A
Unaffiliated" Safe Harbor	N/A	NOT offered
Travel Burden	$5.6M + $2.2M opponent subsidies	Inter-island costs (HB88)

The Key Distinction: Hawaii = unique “Competitive Friction” (GET 4.5% + $5.6M travel + “Paradise Tax”). NO state NIL statute. “Boost the ‘Bows” (tax-deductible) + “Rainbow Collective” (commercial). “Jersey Patch” = FIRST NIL collective on practice jerseys. HHSAA high school NIL = PROHIBITED (“brain drain”). MWC 5% share (~$4.25M) vs. UNLV 24.5%. House settlement $20.5M cap = severe fiscal challenge.

What Hawaii Athletes Can Do

College Athletes (UH):

• Earn NIL compensation (NCAA interim policy); Work with “Boost the ‘Bows” (tax-deductible fund); Work with “Rainbow Collective” (commercial deals); Sign endorsement deals with local brands (hotels, restaurants, tourism); Monetize social media accounts; Earn from camps, clinics, and appearances; Receive fan support through platforms like RallyFuel.
• Collaborate with “Boost the ‘Bows” (tax deductible fund)
• Collaborate with “Rainbow Collective” (commercial agreements)
• Sign advertising agreements with local brands (hotels, restaurants, tourism)
• Monetize social media accounts
• Earn money from camps, clinics, and performances
• Get fan support through platforms like RallyFuel.

High School Athletes:

NIL = PROHIBITED. Cannot monetize athletic fame. Cannot accept cash awards. Cannot sign endorsements. “Unaffiliated” safe harbor NOT offered.

What Hawaii Athletes Cannot Do

College Athletes:

• Cannot endorse: gambling, tobacco, adult entertainment, controlled substances (NCAA rules); International students (F-1 visa): Cannot engage in active NIL on U.S. soil; Must register for GET license if conducting continuous business activity; Must file GET returns (monthly, quarterly, or semi-annual).
• Foreign students (F-1 visa): cannot engage in active NIL in the United States
• must register for a GET license if they are conducting continuous business activities
• must file GET returns (monthly, quarterly or semi-annually).

High School Athletes:

• Cannot “capitalize on athletic fame by receiving money or gifts”; Cannot accept awards from outside persons without approval; Cannot accept cash awards for any competition; Cannot sign commercial endorsements; Cannot monetize social media as athlete; Risk amateur status for ANY NIL activity.
• You cannot accept awards from third parties without approval.
• You cannot accept cash prizes for any competitions.
• you cannot sign commercial advertising agreements
• You can’t monetize social media as an athlete.
• risk amateur status through ANY activity.

Both:

College: Must pay GET (4.5%) + state income tax (up to 11%) + federal; High School: NIL prohibited entirely; Must maintain academic eligibility.

• Must pay state income tax (4.5%) + state income tax (up to 11%) + federal tax

Secondary school:

• NIL is completely prohibited
• Must maintain academic eligibility.

Compliance Requirements

For College Athletes:

Tax: Register for GET license with Hawaii Department of Taxation; File GET returns (monthly, quarterly, or semi-annual); Pay 4.5% GET on gross receipts before deductions; Pay state income tax (up to 11%). NIL: Work with “Boost the ‘Bows” (philanthropic, department discretion); Work with “Rainbow Collective” (commercial, quid pro quo); Understand no “safe harbor” from NCAA enforcement.

• Register for a GET license with the Hawaii Department of Revenue
• Submit GET declarations (monthly, quarterly or semi-annually)
• Pay 4.5% GET on gross revenue before deductions
• Pay state income tax (up to 11%)

NIL:

• Collaborate with “Boost the ‘Bows” (charity, at the discretion of the department)
• Collaborate with “Rainbow Collective” (commercial, service for service)
• Not understanding any “safe harbor” from NCAA law enforcement.

For High School Athletes:

• DO NOT engage in any NIL activity; DO NOT accept money or gifts for athletic fame; DO NOT sign commercial endorsements; DO NOT monetize social media as athlete; Understand “unaffiliated” safe harbor NOT offered; Risk amateur status for ANY NIL activity.
• DO NOT accept money or gifts for sporting glory
• DO NOT sign commercial endorsement agreements
• DO NOT monetize social media like an athlete
• Understand that “independent” secure status is NOT offered
• Risk amateur status for ANY NIL activity.

For Parents:

For college: No state NIL statute = NCAA policy governs; GET 4.5% on gross receipts = unique tax burden; “Boost the ‘Bows” = tax-deductible; “Rainbow Collective” = NOT tax-deductible; “Paradise Tax” = high cost of living erodes NIL value; $5.6M travel deficit + $2.2M opponent subsidies = fiscal strain. For high school: HHSAA = NIL PROHIBITED; “Unaffiliated” safe harbor NOT offered; “Brain drain” incentive to move to mainland for senior year; Risk amateur status for ANY NIL activity.

• No state statute regarding NIL = NCAA policy applies
• GET 4.5% of gross income = unique tax burden
• “Raise the “Bows” = taxable
• “Rainbow Collective” = NOT taxable
• “Paradise tax” = high cost of living reduces the value of NIL
• $5.6 million travel deficit + $2.2 million in subsidies to rivals = financial strain.

For high school:

• HHSAA = NIL PROHIBITED
• “Independent” safe port is NOT offered
• “Brain drain” stimulates moving to the mainland for the final year of study
• Risks amateur status for ANY NIL activity.

How Fans Support Hawaii Athletes

Hawaii has passionate Rainbow Warrior and Rainbow Wahine fans—and now they can directly support athletes through NIL.

College Athletes:

Platforms like RallyFuel enable Hawaii fans to support athletes at:

• University of Hawaiʻi – Mountain West Conference
• All sports—Football, Basketball, Volleyball, and more

Hawaii NIL Infrastructure:

“Boost the ‘Bows” Fund: Institutional, UH Foundation. Tax-deductible. Scholarships, recruitment, retention. Philanthropic (no quid pro quo). “Rainbow Collective”: Commercial, Mike Kawazoe. NOT tax-deductible. Transactional NIL deals. “Jersey Patch” innovation (first NIL collective on practice jerseys). Coach Timmy Chang: Critical for retention vs. $300K market offers.

How It Works:

1. Create an account on RallyFuel.com or the mobile app
2. Select University of Hawaiʻi
3. Browse verified athletes currently on your program’s roster
4. Fuel athletes you want to support
5. Track your support through your fan dashboard

How It Works: When you purchase Fan Fuel, you’re purchasing Conditional NIL Engagement Rights (CNERs). If conditions are met, RallyFuel or its affiliate offers an NIL Agreement to the athlete. If conditions aren’t met—for example, if an athlete transfers—you receive an automatic refund.

Conditional Protection: RallyFuel’s conditional model protects Fan Fuel with automatic refunds if athletes transfer or conditions aren’t met. Hawaii fans can support players without financial risk.

Important: Fan support through RallyFuel is voluntary and conditional. Fuel purchases are not charitable donations. RallyFuel is not a guarantor that any athlete will accept an NIL Agreement. Purchasing Fan Fuel does not guarantee athletic performance, playing time, or any specific outcome.

High School Athletes:

Hawaii high school athletes CANNOT pursue NIL opportunities. HHSAA maintains strict prohibition. Any monetization = loss of amateur status.

Learn More About the NIL Landscape

Name, Image, and Likeness plays an increasing role in college sports, and understanding how it works often requires more than individual articles or news updates.

RallyFuel is a platform focused on NIL-related topics across college athletics. It brings together information about athletes, NIL activity, and the broader structure behind modern college sports, helping readers explore the topic in more depth.

Visit RallyFuel

Frequently Asked Questions

Can Hawaii high school athletes do NIL?

NO. HHSAA maintains strict prohibition. Student-athlete LOSES amateur status if they “capitalize on athletic fame by receiving money or gifts.” Hawaii joins shrinking minority with Alabama, Indiana. “Unaffiliated” safe harbor NOT offered (unlike Alaska ASAA). “Brain drain” incentive: Top prospects move to CA, UT for senior year to monetize. By time UH can offer NIL, local star has mainland foothold.

What is the General Excise Tax (GET) impact?

GET = tax on GROSS income (not sales tax). Student-athletes = “businesses” (independent contractors). Oahu rate: 4.5% (4.0% + county surcharge). $10K NIL: HI athlete owes ~$450 GET vs. UNLV/Boise State $0. No “casual sale” exemption for continuous NIL activity. Athletes must register for GET license + file returns. To provide “net” $10K, Rainbow Collective must pay ~$10,471. “Hawaii NIL Tax” = competitive disadvantage vs. Nevada, Idaho peers.

What is the “Jersey Patch” innovation?

Rainbow Collective negotiated logo on UH men’s basketball PRACTICE jerseys. FIRST NIL collective to sponsor team practice gear in NCAA. Bypasses NCAA prohibition on in-game uniform advertising. Generates visibility + revenue without violating game-day rules. Proof-of-concept for commercial integration without crossing amateurism lines.

What is Hawaii’s travel deficit?

Travel costs: $5.6M (FY 2025) = ~18% of total athletics budget. Significantly higher than Mountain West median. UH subsidizes OPPONENTS’ travel: ~$2.2M annually (flights, hotels, meals). “Pay-to-play” model: Fund competition to entice them to play in Honolulu. Opportunity cost: Every dollar on travel = dollar NOT for revenue sharing. HB88 (2025) proposed pilot for high school inter-island travel. No other school faces this structural liability.

What is the “Paradise Tax”?

Honolulu = among highest cost of living in nation. Housing, food, utilities significantly higher than Laramie, Boise. $10K NIL in Hawaii = less purchasing power than mainland. GET 4.5% + state income tax (11% top rate) + cost of living = triple hit. “Net” value of NIL package in Hawaii considerably lower. UH faces recruiting disadvantage even with identical gross offers.

What happens if an athlete I supported transfers?

If an athlete transfers or selects a different school during the conditional period, you receive an automatic refund to your original payment method. No manual request is required.

Hawaii: The Aloha State’s Amateurism Dilemma

Hawaii has NO state NIL statute—”Statutory Silence” (SB 2915 failed). Unique “Competitive Friction” environment: General Excise Tax (GET) 4.5% on GROSS receipts (athletes = “businesses”); $5.6M annual travel deficit (~18% of budget); $2.2M to subsidize opponents’ travel; “Paradise Tax” = high cost of living erodes NIL value; 11% top state income tax. “Boost the ‘Bows” fund (institutional, tax-deductible, UH Foundation) + “Rainbow Collective” (commercial, Mike Kawazoe, NOT tax-deductible). “Jersey Patch” innovation = FIRST NIL collective on practice jerseys in NCAA. HHSAA high school NIL = PROHIBITED (joins AL, IN in shrinking minority); “unaffiliated” safe harbor NOT offered; “brain drain” to mainland for senior year. MWC 5% share (~$4.25M) vs. UNLV 24.5% (~$20M+). House settlement $20.5M cap = “fiscally impossible” without massive new funding or state subsidies.

For college athletes ready to maximize their NIL potential, RallyFuel provides fan-powered support with conditional protection. Explore verified Hawaii athletes and start fueling today.