Purpose of the Bill

The bill aims to establish a new tax specific to the growth of certain assets belonging to colleges and universities in Minnesota. It seeks to create a mechanism by which this tax revenue is put towards funding higher education grants.

Main Provisions

• Tax on Asset Growth: A new tax will be levied on the growth of specific assets held by colleges and universities. This is intended to generate revenue to support higher education funding programs.
• Creation of a Special Revenue Fund Account: The bill proposes the establishment of the "Higher Education Assets Growth Account" within the special revenue fund managed by the state treasury.
• Earnings and Allocation: Any earnings, such as interest or dividends, generated from the assets of this fund will be credited back to it. The money in the account will be directed towards the state grant program under the current statute.
• Fiscal Year Continuity: Funds remaining in the account at the end of the fiscal year will not revert back to the general fund, ensuring continuity and availability of resources for the intended educational programs.

Significant Changes to Existing Law

• State Grant Program Funding: By amending Minnesota Statutes section 136A.121, this bill changes the way the state grant program is funded, linking it directly to a new revenue source derived from the asset growth of educational institutions.
• Permanent Fund Availability: Introducing a provision that allows funds to remain in the account beyond the fiscal year until they are fully expended, which changes the management of financial resources under existing laws.

Relevant Terms

• Tax on asset growth
• Higher education funding
• Special revenue fund
• State grant program
• Colleges and universities
• Minnesota Statutes chapter 290