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IA SF2453
IA SF2453A bill for an act providing for investment by regents institutions in certified innovation funds and including effective date provisions.(Formerly SSB 3180.)
summary
Introduced
02/23/2026
02/23/2026
In Committee
Crossed Over
Passed
Dead
Introduced Session
91st General Assembly
Bill Summary
This bill requires the university of Iowa, Iowa state university, and the university of northern Iowa (institutions) to ensure that no less than 1 percent of their respective total endowment assets are invested by July 1, 2027, in one or more innovation funds certified by the economic development authority under Code section 15E.52. The bill provides that each institution shall retain discretion to determine which innovation funds to invest in, when investments are made, and the structure of commitments. The bill authorizes an institution to implement investments through direct commitments, reallocation of existing assets, or rolling commitments as capital is called. Investments made pursuant to the bill shall be managed in accordance with generally accepted institutional fiduciary standards applicable to endowment funds. The bill authorizes the state board of regents (board) to grant an institution a one-year waiver from the requirements of the bill if adequate innovation fund capacity is not available or market conditions would materially impair prudent investment. If an institution fails to comply with the bill without receiving a waiver, the bill authorizes the board to direct the institution to carry out corrective action within a specified time frame, after which the board may withhold up to 0.5 percent of the moneys appropriated to the institution through the board in the fiscal year until the institution becomes fully compliant. The bill requires each institution to submit an annual report to the board with specified content on investments under the bill and requires the board to submit a consolidated report to the general assembly by December 1 of each year. The bill requires innovation funds receiving investment under the bill to support the commercialization of institution technologies, spinouts, or research-derived innovations and report such efforts through existing reporting and compliance obligations. The bill requires the economic development authority to maintain a public list of all innovation funds eligible for investment by an institution and notify the board of any changes to the list. The bill includes standards for implementation and construction of the bill relating to donor intent and other matters. The bill takes effect upon enactment.
AI Summary
This bill requires Iowa's three public universities—the University of Iowa, Iowa State University, and the University of Northern Iowa—to invest at least 1 percent of their total endowment assets, which are funds held for the benefit of the institution, into certified innovation funds by July 1, 2027. These innovation funds, as defined by state law, are intended to promote the growth of early-stage companies and commercialize research. The universities will have the flexibility to choose which innovation funds to invest in, when to make these investments, and how to structure them, as long as they adhere to generally accepted fiduciary standards for managing endowment funds. The State Board of Regents, which oversees these universities, can grant a one-year waiver from this requirement if there aren't enough suitable innovation funds available or if market conditions make such investments imprudent. If a university fails to comply without a waiver, the Board of Regents can order corrective actions and, if necessary, withhold up to 0.5 percent of the university's state appropriations until compliance is achieved. Both the universities and the Board of Regents are required to submit annual reports detailing these investments and their impact to the General Assembly. The Economic Development Authority will maintain a public list of eligible innovation funds. The bill emphasizes that these investments must not alter donor intent or violate existing fiduciary obligations and takes effect immediately upon enactment.
Sponsors (0)
No sponsors listed
Other Sponsors (1)
Commerce (Senate)
Last Action
Amendment S-5082 filed. S.J. 526. (on 03/09/2026)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.legis.iowa.gov/legislation/BillBook?ga=91&ba=SF2453 |
| BillText | https://www.legis.iowa.gov/docs/publications/LGI/91/attachments/SF2453.html |
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