Purpose of the Bill

The purpose of this bill is to create a new financial mechanism within the Minnesota higher education system. It aims to establish a participation fee on the growth of certain assets held by colleges and universities and to create a special fund to manage these fees.

Main Provisions

• Participation Fee Requirement: Colleges and universities must pay a fee based on the growth of certain assets. This requirement is intended to ensure continuous eligibility for student aid offered by the state.

• Creation of Asset Growth Account: The bill establishes a "Higher Education Assets Growth Account" in the state's special revenue fund. This account will collect fees from the growth of university and college assets.

• Use of Funds: Funds within this new account are earmarked for the state grant program, which provides financial aid to eligible students. These funds, including any interest or dividends earned, remain within the account across fiscal years, meaning they won't revert to the general fund and will continue to support the state's educational initiatives.

Significant Changes to Existing Law

This bill introduces a new fee system and account that did not exist in prior legislation. It modifies Minnesota Statutes 2024 section 136A.121 by adding subdivisions that mandate institutions to comply with the new participation fee to access certain student aid opportunities.

Relevant Terms

• Higher education
• Participation fee
• Asset growth
• Special revenue fund
• State grant program
• Student aid
• Asset earnings
• Fiscal year carryover