The proposed bill establishes a comprehensive framework for the rights and compensation of student athletes at postsecondary educational institutions in Iowa. It defines key terms such as "student athlete," "institutional marketing associate," and "third party," and affirms the rights of student athletes to earn compensation from the use of their name, image, and likeness (NIL) without jeopardizing their financial aid or participation in intercollegiate athletics. The bill prohibits institutions from enforcing rules that restrict these rights and allows student athletes to seek professional representation from licensed agents or advisors. Furthermore, it mandates that institutions assist student athletes in finding compensation opportunities while ensuring that they do not receive direct compensation from the institutions themselves.

Additionally, the bill includes provisions for the confidentiality of NIL-related contracts, the establishment of educational workshops for student athletes, and the ability for high school athletes to earn compensation under specific conditions. It protects student athletes and institutions from penalties imposed by athletic associations for engaging in NIL activities and allows for civil actions against third parties that infringe upon these rights. The legislation aims to enhance financial opportunities for student athletes while ensuring compliance with existing regulations and safeguarding their eligibility, without classifying them as employees of the institutions.