This bill introduces new regulations concerning the rights and compensation of student athletes at postsecondary educational institutions in Iowa. It defines essential terms such as "student athlete," "institutional marketing associate," and "third party," and grants student athletes the right to earn compensation from the use of their name, image, and likeness (NIL) without penalties from their institutions or athletic associations. The bill prohibits institutions from interfering with student athletes' ability to obtain professional representation and ensures that their financial aid eligibility remains unaffected by any compensation earned. Additionally, it requires institutions to assist student athletes in finding compensation opportunities while imposing certain limitations on contracts that may conflict with existing agreements.

Furthermore, the legislation outlines guidelines for contracts involving student athletes, including conditions on compensation and the confidentiality of such contracts at public institutions. It allows high school athletes to earn compensation under specific conditions and limits the liability of institutional employees regarding student athletes' compensation opportunities. The bill also provides civil action remedies for student athletes against third parties that violate these regulations and clarifies that student athletes are not classified as employees of their institutions, nor does it impact their rights under Title IX. The provisions apply to agreements made on or after the bill's effective date, ensuring a comprehensive framework for the rights and financial opportunities of student athletes.