Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3248 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 participation fee on certain growth of
3	3	1.3 certain assets of colleges and universities; establishing an account in the special
4	4	1.4 revenue fund; amending Minnesota Statutes 2024, section 136A.121, by adding
5	5	1.5 subdivisions; proposing coding for new law in Minnesota Statutes, chapter 136A.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2024, section 136A.121, is amended by adding a subdivision
8	8	1.8to read:
9	9	1.9 Subd. 12b.State grant participation fee compliance.To be eligible for student aid
10	10	1.10under this section, an eligible institution must pay any fees required under section 136A.1212.
11	11	1.11 Sec. 2. Minnesota Statutes 2024, section 136A.121, is amended by adding a subdivision
12	12	1.12to read:
13	13	1.13 Subd. 22.Higher education assets growth account.The higher education assets growth
14	14	1.14account is created in the special revenue fund in the state treasury. Unless otherwise
15	15	1.15appropriated, money in the account is appropriated to the commissioner for the state grant
16	16	1.16program under this section. Earnings, such as interest, dividends, and any other earnings
17	17	1.17arising from the assets of the account, are credited to the account. Money remaining in the
18	18	1.18account at the end of a fiscal year is not canceled to the general fund but remains available
19	19	1.19until expended.
20	20	1.20 EFFECTIVE DATE.This section is effective the day following final enactment.
21	21	1Sec. 2.
22	22	25-05269 as introduced03/27/25 REVISOR VH/VJ
23	23	SENATE
24	24	STATE OF MINNESOTA
25	25	S.F. No. 3248NINETY-FOURTH SESSION
26	26	(SENATE AUTHORS: PUTNAM)
27	27	OFFICIAL STATUSD-PGDATE
28	28	Introduction and first reading04/03/2025
29	29	Referred to Higher Education 2.1 Sec. 3. [136A.1212] STATE GRANT PROGRAM PARTICIPATION FEE BASED
30	30	2.2ON ASSETS GROWTH OF COLLEGES AND UNIVERSITIES.
31	31	2.3 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
32	32	2.4the meanings given.
33	33	2.5 (b) "Applicable educational institution" means an eligible institution under section
34	34	2.6136A.103:
35	35	2.7 (1) with total assets at any time during a taxable year in excess of $100,000,000;
36	36	2.8 (2) having at least 500 tuition-paying students during the preceding taxable year; and
37	37	2.9 (3) having more than 50 percent of tuition-paying students located in Minnesota.
38	38	2.10 (c) "Asset growth" means the positive difference between the value of assets at the close
39	39	2.11of the current taxable year and the value of assets at the close of the immediately preceding
40	40	2.12taxable year.
41	41	2.13 (d) "Assets" means assets not used directly in carrying out an applicable educational
42	42	2.14institution's exempt purpose, as provided by Code of Federal Regulations, title 26, section
43	43	2.154968-1(b)(5)(2020).
44	44	2.16 (e) "Per-student assets" means the value of an applicable educational institution's assets
45	45	2.17at the close of the current taxable year divided by the number of tuition-paying students at
46	46	2.18the close of the current taxable year.
47	47	2.19 (f) "Related organization" has the meaning given in section 4968(d)(2) of the Internal
48	48	2.20Revenue Code.
49	49	2.21 Subd. 2.Participation fee.(a) To be eligible to receive student aid under section
50	50	2.22136A.121, an applicable educational institution must pay a fee equal to a percentage of the
51	51	2.23asset growth of the applicable educational institution, calculated according to the percentages
52	52	2.24in subdivision 3.
53	53	2.25 (b) An eligible institution must pay the fee required by this section by May 30 to receive
54	54	2.26student aid under section 136A.121 in the next academic year.
55	55	2.27 Subd. 3.Calculation of fee.The fee required under subdivision 2 is calculated as follows:
56	56	2.28 (1) for per-student assets over $74,999 but not over $150,000, 15 percent;
57	57	2.29 (2) for per-student assets over $150,000 but not over $250,000, 20 percent; and
58	58	2.30 (3) for per-student assets over $250,000, 25 percent.
59	59	2Sec. 3.
60	60	25-05269 as introduced03/27/25 REVISOR VH/VJ 3.1 Subd. 4.Other provisions apply.(a) For purposes of subdivision 1, paragraph (b),
61	61	3.2clauses (1) and (2), the provisions of section 4968(b)(2) of the Internal Revenue Code apply.
62	62	3.3 (b) Assets of related organizations of eligible institutions are treated as assets of the
63	63	3.4eligible institution, except assets not intended or available for use or benefit of the eligible
64	64	3.5institution are excluded from the calculation of per-student endowment growth differential
65	65	3.6unless the related organization is controlled by the eligible institution or is an organization
66	66	3.7described in section 509(a)(3) of the Internal Revenue Code.
67	67	3.8 Subd. 5.Payment of fee.An applicable educational institution must report the fee on a
68	68	3.9form prescribed by the commissioner and must pay the fee in a form and manner prescribed
69	69	3.10by the commissioner.
70	70	3.11 Subd. 6.Deposit of revenues; account established.The commissioner must deposit
71	71	3.12the revenues derived from the fee imposed by this section in the higher education endowment
72	72	3.13growth account in the special revenue fund.
73	73	3.14 EFFECTIVE DATE.This section is effective for taxable years beginning after December
74	74	3.1531, 2025, and for student financial aid for the 2026-2027 academic year.
75	75	3Sec. 3.
76	76	25-05269 as introduced03/27/25 REVISOR VH/VJ