This bill mandates that the University of Iowa, Iowa State University, and the University of Northern Iowa invest at least 1 percent of their total endowment assets in state-certified innovation funds by July 1, 2027. The legislation emphasizes the importance of these investments in promoting economic growth, enhancing the technology ecosystem, and supporting the commercialization of research and innovations developed by the institutions. Each university retains the discretion to choose which innovation funds to invest in, the timing of investments, and the structure of commitments, while ensuring compliance with prudent investment standards.

Additionally, the bill allows the State Board of Regents to grant a one-year waiver for compliance if market conditions are unfavorable or if there is insufficient capacity in innovation funds. Should an institution fail to comply without a waiver, the board can mandate corrective actions and may withhold a portion of the institution's appropriated funds until compliance is achieved. Institutions are required to submit annual reports detailing their endowment assets and investments in innovation funds, and the board will compile these reports for submission to the General Assembly. The bill also establishes standards for the innovation funds and requires the economic development authority to maintain a public list of eligible funds. The legislation takes effect immediately upon enactment.