The bill establishes a framework for Iowa's regents institutions to invest a minimum of one percent of their total endowment assets into state-certified innovation funds by July 1, 2027. This investment aims to promote economic growth by enhancing the commercialization of research, expanding the technology ecosystem, and generating economic benefits for communities across Iowa. The bill outlines that the one percent allocation will not include assets subject to donor restrictions that prohibit such investments. Institutions will have the discretion to choose which innovation funds to invest in and how to structure their commitments, while adhering to prudent investment standards.

Additionally, the bill includes provisions for compliance and reporting. Institutions must submit annual reports detailing their endowment assets, the amount invested in innovation funds, and the expected economic impact of these investments. The state board of regents may grant waivers for noncompliance under certain conditions and can impose penalties for failure to comply without a waiver. The bill also mandates that innovation funds receiving investments must support the commercialization of technologies developed by the institutions and requires the economic development authority to maintain a public list of eligible innovation funds. The act is effective immediately upon enactment.