IA SF2453

Iowa's three public universities (regents institutions) must invest at least 1% of their total endowment assets in state-certified innovation funds by July 1, 2027.

The 1% allocation excludes endowment portions subject to donor restrictions or donor intent that expressly prohibits or is contrary to such investments, calculated based on average quarterly market value from the most recent fiscal year.

Institutions retain discretion over which innovation funds to select, investment timing, and commitment structure, provided investments comply with prudent investor standards and fiduciary responsibilities.

The Board of Regents may grant one-year waivers if adequate innovation fund capacity is unavailable or market conditions would impair prudent investment.

Non-compliant institutions without a waiver face corrective action requirements and potential withholding of up to 0.5% of their state appropriations until compliance is achieved.