HF2908

HF2908 (Legislative Session 94 (2025-2026))

Statewide children's savings account program for higher education established, local partner design and implementation grants established, report required, rulemaking required, and money appropriated.

Related bill: SF3120

AI Generated Summary

Purpose of the Bill

The bill aims to enhance access to higher education through the establishment of a statewide children's savings account program. It seeks to make higher education more attainable for Minnesota residents by creating new financial investment accounts for children, particularly focusing on supporting low-income households.

Main Provisions

Creation of MinneKIDS Accounts: The bill establishes MinneKIDS accounts for Minnesota residents under 18, starting from those born on or after July 1, 2026. A seed deposit of $50, with an additional $50 for children from low-income households, will be made into these accounts from the children’s higher education investment account.
Usage of Funds: Funds can only be used for qualified higher education expenses, such as tuition at eligible educational institutions, before the beneficiary turns 26. Unused funds will be returned to the investment account if not used by the age limit.
Opt-Out Provision: Parents or guardians can opt-out their children from this program, and if done, any money in the account will be forfeited and returned.
Local Partner Grants: This section creates a MinneKIDS local partner grant program to encourage local entities to promote college readiness and savings. Grants are available for designing and implementing local savings programs and to align them with the statewide initiative.
Notification and Engagement: The bill mandates annual notification to parents about their child's account, how to access funds, contribute, and potentially earn additional deposits.

Significant Changes to Existing Law

New Legal Framework: It introduces new sections in Minnesota Statutes, Chapter 136G, defining terms and conditions related to MinneKIDS accounts.
State Ownership and Management: The state will own and manage the invested funds in these accounts until used for educational expenses.
Account and Grant Management: It provides for the commissioner to manage disbursements and account closures, including reversion of unused funds.

Relevant Terms

MinneKIDS, higher education savings plan, children's investment accounts, low-income households, seed deposit, college savings programs, educational expenses, state treasury, local partner grant, higher education finance.

Bill text versions

Introduction PDF file

Past committee meetings

Higher Education Finance and Policy on: April 03, 2025 13:00

Actions

Date	Chamber	Where	Type	Name	Committee Name
March 27, 2025	House	Floor	Action	Introduction and first reading, referred to	Higher Education Finance and Policy
April 07, 2025	House	Floor	Action	Author added
April 07, 2025	House	Floor	Action	Author added

Citations

[
  {
    "analysis": {
      "added": [
        "Establishes timelines and procedures for data provision to the commissioner."
      ],
      "removed": [
        ""
      ],
      "summary": "Section 144.215 relates to the registration of births, which is relevant for providing children's birth data for MinneKIDS accounts.",
      "modified": [
        "Clarifies the type of data shared with the commissioner for MinneKIDS accounts."
      ]
    },
    "citation": "144.215",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amendments discuss the confidentiality of birth data under section 144.225, subdivision 2.",
      "modified": [
        "Specifies exceptions for data provision for managing MinneKIDS accounts."
      ]
    },
    "citation": "144.225",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the definition of not public data as per section 13.02, subdivision 8a.",
      "modified": [
        "Distinguishes data classifications relevant to the MinneKIDS program."
      ]
    },
    "citation": "13.02",
    "subdivision": "subdivision 8a"
  },
  {
    "analysis": {
      "added": [
        "Clarifies the handling of individual data within the MinneKIDS program."
      ],
      "removed": [],
      "summary": "Defines private data on individuals in section 13.02, subdivision 12.",
      "modified": []
    },
    "citation": "13.02",
    "subdivision": "subdivision 12"
  },
  {
    "analysis": {
      "added": [
        "Specifies penalties for non-use of funds within designated timelines."
      ],
      "removed": [],
      "summary": "The reference pertains to section 529 of the Internal Revenue Code concerning tax-advantaged savings plans.",
      "modified": []
    },
    "citation": "529",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Applies to grants under MinneKIDS local partner grant program."
      ],
      "removed": [],
      "summary": "Section 16B.97 outlines grant management requirements applicable to state programs.",
      "modified": [
        "Ensures compliance with state grant management protocols."
      ]
    },
    "citation": "16B.97",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Mentions alignment or integration with the Minnesota 529 college savings plan established by section 136G.01.",
      "modified": [
        "Recommendation for alignment between MinneKIDS and section 136G.01 programs."
      ]
    },
    "citation": "136G.01",
    "subdivision": ""
  }
]