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SF3120 (Legislative Session 94 (2025-2026))

Statewide children's savings account program for higher education establishment; local partner design and implementation grants establishment; appropriating money

Related bill: HF2908

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to establish the MinneKIDS program, a statewide children's savings account initiative in Minnesota aimed at helping families save for higher education expenses. It is intended to create accounts for children born in Minnesota to encourage saving for college and to involve local community partners in supporting these efforts.

Main Provisions

  • Children's Higher Education Investment Account: Creates a MinneKIDS account for eligible children, defined as those born on or after July 1, 2026, in Minnesota. The accounts are funded with a $50 seed deposit, with an additional $50 for children from low-income households.
  • Eligible Use of Funds: Money in these accounts, including investment earnings, is to be used for qualified higher education expenses at eligible institutions. Funds cannot be used for elementary or secondary education expenses.
  • Notification and Opt-Out: Parents or guardians are notified about the account establishment and usage yearly. They can opt-out their child from the program if desired.
  • Account Investment and Funds Management: The accounts are owned by the state but managed for the child’s benefit until they are used for educational purposes. If funds remain unused when the child turns 26, they revert to the state's education investment account.

Local Partner Grants

  • MinneKIDS Local Partner Grant Program: Establishes grants for local governments, tribes, nonprofits, and other entities to promote college savings and participation in the MinneKIDS program via outreach and education.
  • Eligibility for Grants: Grants are given to entities without existing college savings programs, with a focus on creating local initiatives that can integrate with the statewide program.

Reporting and Evaluation

  • A report on the implementation of MinneKIDS and the partner grant program is required by February 15, 2028, to assess expenditures, account openings, and the effectiveness of integrating with existing savings plans.

Significant Changes to Existing Law

  • Introduces a new section to Minnesota Statutes creating the framework and funding for a statewide children's savings program focused on higher education.
  • Establishes new roles for community organizations in supporting higher education savings efforts and creates reporting obligations to ensure program efficacy and transparency.

Appropriations

Funds are appropriated from the general fund to support the MinneKIDS program and its grant initiatives for fiscal years 2026 and 2027.

Relevant Terms

  • MinneKIDS program
  • Children's Higher Education Investment Account
  • Seed deposit
  • Eligible child
  • Low-income households
  • Higher education expenses
  • Local partner grants
  • Opt-out process
  • State-owned accounts

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 31, 2025SenateFloorActionIntroduction and first reading
March 31, 2025SenateFloorActionReferred toHigher Education

Citations

 
[
  {
    "analysis": {
      "added": [
        "No new additions related to this section."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references registration of birth data under section 144.215.",
      "modified": [
        ""
      ]
    },
    "citation": "144.215",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        "Exemption from the limitations of data sharing for the purposes of this bill."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill refers to classification of data related to birth records under section 144.225, subdivision 2.",
      "modified": [
        ""
      ]
    },
    "citation": "144.225",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Explicit reference to data classification for program administration."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the definition of non-public data under section 13.02, subdivision 8a.",
      "modified": [
        ""
      ]
    },
    "citation": "13.02",
    "subdivision": "subdivision 8a"
  },
  {
    "analysis": {
      "added": [
        "Clarification on data privacy implications for the program."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill references the classification of private data on individuals under section 13.02, subdivision 12.",
      "modified": [
        ""
      ]
    },
    "citation": "13.02",
    "subdivision": "subdivision 12"
  },
  {
    "analysis": {
      "added": [
        "Application of penalties for non-use of funds."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill refers to tax implications under section 529 of the Internal Revenue Code.",
      "modified": [
        ""
      ]
    },
    "citation": "529 of the Internal Revenue Code",
    "subdivision": ""
  }
]

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