Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2908 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to higher education; establishing a statewide children's savings account
3	3	1.3 program for higher education; establishing local partner design and implementation
4	4	1.4 grants; requiring a report; requiring rulemaking; appropriating money; amending
5	5	1.5 Minnesota Statutes 2024, section 136G.03, subdivision 1, by adding subdivisions;
6	6	1.6 proposing coding for new law in Minnesota Statutes, chapter 136G.
7	7	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8	1.8 Section 1. Minnesota Statutes 2024, section 136G.03, subdivision 1, is amended to read:
9	9	1.9 Subdivision 1.General.For purposes of sections 136G.01 to 136G.14 136G.16, the
10	10	1.10following terms have the meanings given.
11	11	1.11 Sec. 2. Minnesota Statutes 2024, section 136G.03, is amended by adding a subdivision to
12	12	1.12read:
13	13	1.13 Subd. 6a.Children's higher education investment account."Children's higher education
14	14	1.14investment account" means the account established in the special revenue fund under section
15	15	1.15136G.15, subdivision 7.
16	16	1.16 Sec. 3. Minnesota Statutes 2024, section 136G.03, is amended by adding a subdivision to
17	17	1.17read:
18	18	1.18 Subd. 12a.Eligible child."Eligible child" means a current Minnesota resident under 18
19	19	1.19years of age, born on or after July 1, 2026.
20	20	1Sec. 3.
21	21	REVISOR VH/VJ 25-0441003/21/25
22	22	State of Minnesota
23	23	This Document can be made available
24	24	in alternative formats upon request
25	25	HOUSE OF REPRESENTATIVES
26	26	H. F. No. 2908
27	27	NINETY-FOURTH SESSION
28	28	Authored by Kotyza-Witthuhn03/27/2025
29	29	The bill was read for the first time and referred to the Committee on Higher Education Finance and Policy 2.1 Sec. 4. Minnesota Statutes 2024, section 136G.03, is amended by adding a subdivision to
30	30	2.2read:
31	31	2.3 Subd. 17a.Low-income households."Low-income households" means households
32	32	2.4where children or households are identified by the commissioner or by other means as
33	33	2.5low-income for purposes of the program.
34	34	2.6 Sec. 5. Minnesota Statutes 2024, section 136G.03, is amended by adding a subdivision to
35	35	2.7read:
36	36	2.8 Subd. 21b.MinneKIDS account."MinneKIDS account" means an account created by
37	37	2.9the commissioner in which designated money for an eligible child is held.
38	38	2.10 Sec. 6. Minnesota Statutes 2024, section 136G.03, is amended by adding a subdivision to
39	39	2.11read:
40	40	2.12 Subd. 21c.MinneKIDS affiliate."MinneKIDS affiliate" means an entity designated
41	41	2.13by the commissioner to receive grant money under section 136G.16 or contribute to
42	42	2.14MinneKIDS accounts under section 136G.15.
43	43	2.15 Sec. 7. Minnesota Statutes 2024, section 136G.03, is amended by adding a subdivision to
44	44	2.16read:
45	45	2.17 Subd. 32a.Seed deposit."Seed deposit" means a financial contribution into a MinneKIDS
46	46	2.18account of an eligible child under section 136G.15, subdivision 3, paragraphs (a) and (b).
47	47	2.19 Sec. 8. [136G.15] MINNESOTA KIDS INVESTMENT AND DEVELOPMENT
48	48	2.20SCHOLARSHIP PROGRAM.
49	49	2.21 Subdivision 1.MinneKIDS accounts.(a) The commissioner must create a MinneKIDS
50	50	2.22account on behalf of an eligible child no more than 90 days after:
51	51	2.23 (1) receiving birth data for an eligible child from the Department of Health pursuant to
52	52	2.24subdivision 4; or
53	53	2.25 (2) receiving a request from a parent or guardian of an eligible child that does not have
54	54	2.26a MinneKIDS account.
55	55	2.27 (b) The commissioner must provide the parent or guardian a simple process for opting
56	56	2.28the parent or guardian's eligible child out of the MinneKIDS account program. Within 30
57	57	2.29days of receiving a request to opt an eligible child out of the MinneKIDS account program,
58	58	2Sec. 8.
59	59	REVISOR VH/VJ 25-0441003/21/25 3.1the commissioner must close the eligible child's MinneKIDS account and return any money
60	60	3.2in the account to the children's higher education investment account.
61	61	3.3 (c) Only the commissioner, the plan administrator, a MinneKIDS affiliate, or other entity,
62	62	3.4individual, or government approved by the commissioner may contribute money to an
63	63	3.5eligible child's MinneKIDS account.
64	64	3.6 (d) Money deposited in a MinneKIDS account must be invested pursuant to section
65	65	3.7136G.07.
66	66	3.8 (e) A MinneKIDS account established pursuant to this section, any seed deposit or
67	67	3.9additional deposits, and any investment earnings will remain assets of and be owned by the
68	68	3.10state until used for the payment of qualified higher education expenses at an eligible education
69	69	3.11institution.
70	70	3.12 (f) The commissioner may accept for deposit into the children's higher education
71	71	3.13investment account gifts, grants, awards, matching contributions, interest income, and
72	72	3.14appropriations from individuals, businesses, state and local governmental entities, and
73	73	3.15nonstate and third-party sources for the program on terms the commissioner deems advisable.
74	74	3.16 Subd. 2.Parent or guardian notification.(a) No more than 30 days after creating a
75	75	3.17MinneKIDS account for an eligible child pursuant to subdivision 1, and then at least once
76	76	3.18in each subsequent year until the MinneKIDS account is closed, the commissioner must
77	77	3.19notify at least one parent or legal guardian of the eligible child about the program. The
78	78	3.20notification must include information regarding all of the following:
79	79	3.21 (1) how the parent or legal guardian may opt the eligible child out of the program;
80	80	3.22 (2) how the parent or legal guardian may apply to be considered for the additional seed
81	81	3.23deposit provided in subdivision 3, paragraph (b);
82	82	3.24 (3) the MinneKIDS account opened for the eligible child pursuant to paragraph (a), and
83	83	3.25any deposit provided pursuant to subdivision 3;
84	84	3.26 (4) how the parent or legal guardian may view the balance of the eligible child's
85	85	3.27MinneKIDS account;
86	86	3.28 (5) how the parent or legal guardian may establish and contribute to a separate Minnesota
87	87	3.29college savings plan account;
88	88	3.30 (6) how the parent or legal guardian may link a MinneKIDS account to a separate
89	89	3.31Minnesota college savings plan account;
90	90	3.32 (7) how the eligible child may qualify for additional deposits, as applicable;
91	91	3Sec. 8.
92	92	REVISOR VH/VJ 25-0441003/21/25 4.1 (8) limitations on contributions to the MinneKIDS account pursuant to subdivision 1;
93	93	4.2and
94	94	4.3 (9) ownership status of money held in a MinneKIDS account described in subdivision
95	95	4.41 and that the money in the account will be forfeited and returned to the program if the
96	96	4.5eligible child does not use it before reaching 26 years of age.
97	97	4.6 (b) The commissioner must translate notifications and information regarding the program
98	98	4.7established in this section into common languages spoken throughout Minnesota.
99	99	4.8 Subd. 3.Seed deposits; incentive deposits.(a) The commissioner must make a seed
100	100	4.9deposit of $50 from the children's higher education investment account in each MinneKIDS
101	101	4.10account created under subdivision 1.
102	102	4.11 (b) The commissioner must make an additional seed deposit of $50 from the children's
103	103	4.12higher education investment account in each MinneKIDS account created under subdivision
104	104	4.131 on behalf of an eligible child that the commissioner identifies as being from a low-income
105	105	4.14household.
106	106	4.15 (c) Subject to available money in the children's higher education investment account,
107	107	4.16the commissioner may make additional deposits from the children's higher education
108	108	4.17investment account into specific MinneKIDS accounts to encourage college saving and
109	109	4.18participation in the program, including if a parent or guardian of an eligible child:
110	110	4.19 (1) engages with the MinneKIDS account by verifying receipt of information provided
111	111	4.20under subdivision 2;
112	112	4.21 (2) links the MinneKIDS account with a separate Minnesota college plan savings account;
113	113	4.22or
114	114	4.23 (3) engages with the MinneKIDS account or Minnesota college plan savings account
115	115	4.24by other means approved by the commissioner.
116	116	4.25 Subd. 4.Provision of birth data.(a) No later than 90 days after a birth is registered
117	117	4.26under section 144.215 for an eligible child, and notwithstanding section 144.225, subdivision
118	118	4.272, the commissioner of health must provide the commissioner with the following birth data
119	119	4.28for each eligible child in a file format as defined by the commissioner:
120	120	4.29 (1) the eligible child's name and birth date;
121	121	4.30 (2) the name and contact information of each parent of the eligible child, including the
122	122	4.31parent's street address;
123	123	4Sec. 8.
124	124	REVISOR VH/VJ 25-0441003/21/25 5.1 (3) if provided to the Department of Health, the parent's mobile telephone number and
125	125	5.2email address;
126	126	5.3 (4) amended birth record information of an eligible child to assist the commissioner in
127	127	5.4verifying a legal name change of an eligible child; and
128	128	5.5 (5) any other information the commissioner requests as necessary for administering this
129	129	5.6section.
130	130	5.7 (b) Except data that is classified as confidential pursuant to section 144.225, subdivision
131	131	5.82, this subdivision does not apply to data that is classified as not public data as defined in
132	132	5.9section 13.02, subdivision 8a, or that is sealed by court order.
133	133	5.10 (c) Any birth data provided to the commissioner under this section is private data on
134	134	5.11individuals as defined in section 13.02, subdivision 12.
135	135	5.12 Subd. 5.Disbursements.(a) Money in a MinneKIDS account designated for an eligible
136	136	5.13child, including any investment earnings, must be used for the purpose of providing awards
137	137	5.14for qualified higher education expenses associated with the attendance of the eligible child
138	138	5.15at an eligible educational institution.
139	139	5.16 (b) Notwithstanding anything to the contrary in this section, "qualified higher education
140	140	5.17expenses" must not include any tuition or other expenses in connection with enrollment or
141	141	5.18attendance at an elementary or secondary public, private, or religious school.
142	142	5.19 (c) The commissioner must make a distribution directly to an eligible educational
143	143	5.20institution on behalf of the beneficiary when the beneficiary:
144	144	5.21 (1) requests a distribution from the MinneKIDS account;
145	145	5.22 (2) self-certifies that the beneficiary is enrolled at an eligible educational institution; and
146	146	5.23 (3) self-certifies that the beneficiary has resided in the state of Minnesota for at least
147	147	5.24one year immediately preceding the payment of qualified higher education expenses on the
148	148	5.25beneficiary's behalf.
149	149	5.26 (d) If the beneficiary requests a distribution pursuant to paragraph (c), but has no account
150	150	5.27balance with the eligible educational institution, then the eligible educational institution
151	151	5.28must distribute money received on the beneficiary's behalf pursuant to this subdivision
152	152	5.29directly to the beneficiary for the purpose of paying the beneficiary's qualified higher
153	153	5.30education expenses.
154	154	5.31 Subd. 6.Account closures; forfeiture.(a) The money in a MinneKIDS account must
155	155	5.32remain invested pursuant to section 136G.07 until the earlier of the date:
156	156	5Sec. 8.
157	157	REVISOR VH/VJ 25-0441003/21/25 6.1 (1) the beneficiary of a MinneKIDS account requests a distribution pursuant to
158	158	6.2subdivision 5; or
159	159	6.3 (2) the account is closed pursuant to paragraph (b).
160	160	6.4 (b) If the beneficiary has not used all or any portion of the money in the beneficiary's
161	161	6.5MinneKIDS account for a qualified higher education expense for any reason, including
162	162	6.6death or disability of the beneficiary, by the time the beneficiary has achieved 26 years of
163	163	6.7age, then:
164	164	6.8 (1) the beneficiary's MinneKIDS account must be closed; and
165	165	6.9 (2) the money in the beneficiary's MinneKIDS account must be forfeited and deposited
166	166	6.10into the children's higher education investment account.
167	167	6.11 (c) The commissioner must contact the beneficiary of a MinneKIDS account 60 days
168	168	6.12prior to closing the beneficiary's MinneKIDS account pursuant to paragraph (b) and provide
169	169	6.13an opportunity for the beneficiary to appeal the closing of the MinneKIDS account.
170	170	6.14 (d) If the beneficiary does not appeal the closing of a MinneKIDS account within 45
171	171	6.15days of receiving notice under paragraph (c), then the commissioner may close the
172	172	6.16beneficiary's MinneKIDS account and return the money to the children's higher education
173	173	6.17investment account.
174	174	6.18 (e) Money, less applicable penalties, collected pursuant to section 529 of the Internal
175	175	6.19Revenue Code not used within the time period described in paragraph (b) must revert to the
176	176	6.20children's higher education investment account after the payment of any amount determined
177	177	6.21to be due to the federal government as a result of the reversion.
178	178	6.22 (f) If an eligible child is opted out of the program, all money in the eligible child's
179	179	6.23MinneKIDS account, including any investment earnings, is forfeited and must be deposited
180	180	6.24into the children's higher education investment account in a timely manner and the eligible
181	181	6.25child's MinneKIDS account must be closed.
182	182	6.26 Subd. 7.Account established; appropriation.A children's higher education investment
183	183	6.27account is created in the special revenue fund in the state treasury. Money in the account,
184	184	6.28including appropriations and transfers made to the account and forfeited MinneKIDS account
185	185	6.29balances returned to the account, is appropriated to the commissioner for the purposes
186	186	6.30specified in this section. Money remaining in the account at the end of a fiscal year is not
187	187	6.31canceled to the general fund but remains available until expended.
188	188	6Sec. 8.
189	189	REVISOR VH/VJ 25-0441003/21/25 7.1 Sec. 9. [136G.16] MINNEKIDS LOCAL PARTNER GRANT PROGRAM.
190	190	7.2 Subdivision 1.Establishment.A MinneKIDS local partner grant program is established
191	191	7.3under the supervision of the Office of Higher Education. The program makes money available
192	192	7.4to eligible entities to encourage college readiness, saving for college, and participation in
193	193	7.5the MinneKIDS account program. The commissioner must develop policies and adopt rules
194	194	7.6as necessary to implement and administer the program.
195	195	7.7 Subd. 2.Eligible entities.(a) A local government, Tribal government, philanthropic
196	196	7.8entity, or a nonprofit organization is eligible to receive a grant under this section and to be
197	197	7.9designated by the commissioner as a MinneKIDS affiliate.
198	198	7.10 (b) The commissioner may award a grant to an eligible entity to:
199	199	7.11 (1) design a new local MinneKIDS outreach and education program; or
200	200	7.12 (2) implement an established MinneKIDS outreach and education program.
201	201	7.13 (c) The commissioner may designate an eligible entity as a MinneKIDS affiliate for the
202	202	7.14purpose of allowing the MinneKIDS affiliate to make contributions to MinneKIDS accounts.
203	203	7.15 Subd. 3.Design grants.(a) To receive a design grant, an eligible entity must:
204	204	7.16 (1) not have a local college savings or MinneKIDS account program in operation;
205	205	7.17 (2) seek the grant to establish a local college savings program that primarily targets
206	206	7.18children from birth to age 25;
207	207	7.19 (3) develop a plan to supplement money received under this chapter from nonstate
208	208	7.20sources; and
209	209	7.21 (4) specify in the entity's application that the proposed local college savings program
210	210	7.22has the capacity to align or integrate the local program with the statewide MinneKIDS
211	211	7.23program.
212	212	7.24 (b) Design grant awards must be used for convening, planning, engagement, outreach,
213	213	7.25marketing, staff for local coordination, and other programmatic expenses.
214	214	7.26 Subd. 4.Implementation grants.(a) To receive an implementation grant, an eligible
215	215	7.27entity must:
216	216	7.28 (1) have previously received a MinneKIDS design grant or have a local college savings
217	217	7.29account program in operation that primarily targets children from birth to age 25;
218	218	7.30 (2) have a one-to-one local match of money from nonstate sources with the grants applied
219	219	7.31for under this section to support the entity's program; and
220	220	7Sec. 9.
221	221	REVISOR VH/VJ 25-0441003/21/25 8.1 (3) specify in the entity's application that the proposed local college savings program
222	222	8.2has the capacity to align or integrate with the statewide MinneKIDS program.
223	223	8.3 (b) Implementation grant awards must be used for convening, planning, engagement,
224	224	8.4outreach, marketing, staff for local coordination, additional deposits in MinneKIDS accounts,
225	225	8.5and other programmatic expenses.
226	226	8.6 Subd. 5.Outreach and technical support.(a) The commissioner must provide outreach
227	227	8.7to potential grantees to review, score, and select grantees, and to oversee and evaluate grant
228	228	8.8implementation.
229	229	8.9 (b) The commissioner must give outreach priority to underrepresented regions of the
230	230	8.10state that are not already served by a local college savings program.
231	231	8.11 (c) The commissioner must provide technical assistance to applicants that includes but
232	232	8.12is not limited to:
233	233	8.13 (1) developing a toolkit for eligible entities seeking to be designated as a MinneKIDS
234	234	8.14affiliate;
235	235	8.15 (2) assisting eligible entities that are not offering a local college savings program in
236	236	8.16developing an application to receive a grant; and
237	237	8.17 (3) other activities to advance the program as determined by the commissioner.
238	238	8.18 (d) The commissioner and grantee must follow grant management requirements outlined
239	239	8.19in section 16B.97 and other applicable grant compliance requirements outlined in state
240	240	8.20statutes.
241	241	8.21 Subd. 6.Priorities.(a) The commissioner must consider the following when distributing
242	242	8.22grants to eligible entities:
243	243	8.23 (1) the amount of available money under the MinneKIDS local partner grant program;
244	244	8.24 (2) the number of children that each eligible entity intends to serve under the proposed
245	245	8.25or existing local college savings program; and
246	246	8.26 (3) the percentage of low-income families residing in the community served by the
247	247	8.27proposed or existing local college savings program.
248	248	8.28 (b) The commissioner must consider geographic diversity in awarding grants under this
249	249	8.29section, including by awarding approximately 50 percent of the total grant award amounts
250	250	8.30to eligible entities that serve Tribal nations and communities outside of the seven-county
251	251	8.31metropolitan area of Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington
252	252	8.32Counties.
253	253	8Sec. 9.
254	254	REVISOR VH/VJ 25-0441003/21/25 9.1 (c) The commissioner must give grant priority to local college savings programs that
255	255	9.2align with the following criteria:
256	256	9.3 (1) local college savings programs that serve, or propose to serve, a community or
257	257	9.4geographic area with an average median income that is lower than statewide median income;
258	258	9.5 (2) local college savings programs that serve, or propose to serve, a community or
259	259	9.6geographic area with an average college attendance rate that is lower than the average college
260	260	9.7attendance rate statewide;
261	261	9.8 (3) existing local college savings programs that demonstrate a high total amount of
262	262	9.9money saved for college in connection with the program;
263	263	9.10 (4) existing local college savings programs that hold a high number of outreach events
264	264	9.11to encourage family and community contributions to college savings accounts;
265	265	9.12 (5) an eligible entity with a demonstrated ability to sustain and potentially expand the
266	266	9.13entity's program;
267	267	9.14 (6) an eligible entity that has existing partnerships with schools and community
268	268	9.15organizations;
269	269	9.16 (7) an eligible entity that secures a high amount of money through local budget
270	270	9.17commitments, philanthropy, or other nonstate money sources; and
271	271	9.18 (8) other priorities or criteria determined by the commissioner.
272	272	9.19 Sec. 10. MINNEKIDS PROGRAM REPORT REQUIRED.
273	273	9.20 (a) By February 15, 2028, the commissioner of the Office of Higher Education must
274	274	9.21report information regarding the implementation of the program established in Minnesota
275	275	9.22Statutes, section 136G.15, to the chairs and ranking minority members of the legislative
276	276	9.23committees having jurisdiction over higher education. The report must include but not be
277	277	9.24limited to:
278	278	9.25 (1) detailed program expenditure information;
279	279	9.26 (2) the number of accounts opened;
280	280	9.27 (3) the number of state and nonstate contributions made to accounts;
281	281	9.28 (4) information about how parents were notified about the program;
282	282	9.29 (5) a description of the commissioner's marketing of the program;
283	283	9Sec. 10.
284	284	REVISOR VH/VJ 25-0441003/21/25 10.1 (6) a description of the commissioner's efforts and success in aligning or integrating
285	285	10.2with the Minnesota 529 college savings plan established by Minnesota Statutes, section
286	286	10.3136G.01; and
287	287	10.4 (7) recommendations for improving the MinneKIDS program.
288	288	10.5 (b) By February 15, 2028, the commissioner of the Office of Higher Education must
289	289	10.6report information regarding the implementation of the program established in Minnesota
290	290	10.7Statutes, section 136G.16, to the chairs and ranking minority members of the legislative
291	291	10.8committees having jurisdiction over higher education. The report must include but not be
292	292	10.9limited to:
293	293	10.10 (1) a list of eligible entities provided grants pursuant to Minnesota Statutes, section
294	294	10.11136G.16, and the entities' progress and successes;
295	295	10.12 (2) detailed program expenditure information;
296	296	10.13 (3) a description of the success in soliciting nonstate money to support the program and
297	297	10.14the program's growth or sustainability;
298	298	10.15 (4) a description of how MinneKIDS affiliate grantees are or anticipate aligning or
299	299	10.16integrating with the program established by Minnesota Statutes, section 136G.15; and
300	300	10.17 (5) recommendations for improving the MinneKIDS local partner grant program
301	301	10.18established by Minnesota Statutes, section 136G.16.
302	302	10.19Sec. 11. APPROPRIATIONS.
303	303	10.20 (a) $....... in fiscal year 2026 and $....... in fiscal year 2027 are appropriated from the
304	304	10.21general fund to the commissioner of the Office of Higher Education for the MinneKIDS
305	305	10.22program under Minnesota Statutes, sections 136G.15 and 136G.16.
306	306	10.23 (b) Of the amounts appropriated in paragraph (a):
307	307	10.24 (1) $....... in fiscal year 2026 and $....... in fiscal year 2027 are for transfer to the children's
308	308	10.25higher education investment account in the special revenue fund for deposit into eligible
309	309	10.26children's MinneKIDS accounts under Minnesota Statutes, section 136G.15; and
310	310	10.27 (2) $....... in fiscal year 2026 and $....... in fiscal year 2027 are for the MinneKIDS local
311	311	10.28partner grant program under Minnesota Statutes, section 136G.16.
312	312	10Sec. 11.
313	313	REVISOR VH/VJ 25-0441003/21/25