This bill aims to prohibit public postsecondary institutions in Minnesota from using mandatory student fees or increasing tuition to compensate student athletes. It introduces a new section in the Minnesota Statutes, specifically section 135A.0435, which outlines that the governing bodies of these institutions must not impose or maintain any such fees for the purpose of athlete compensation.

Additionally, the bill establishes a penalty for institutions that violate this provision. If a governing body is found to be in violation, the commissioner of management and budget is required to deduct an amount equal to one percent of the institution's appropriation base from its funding in the first year of the next biennium. This measure is intended to ensure compliance with the new regulations regarding the financial treatment of student athletes.