This bill establishes a participation fee for certain colleges and universities based on the growth of their assets, aiming to enhance funding for student aid programs. It amends Minnesota Statutes 2024, section 136A.121, by adding new subdivisions that require eligible institutions to pay a fee calculated as a percentage of their asset growth to qualify for state student aid. Specifically, institutions with total assets exceeding $100 million and at least 500 tuition-paying students in Minnesota will be subject to this fee, which must be paid by May 30 for the following academic year. The fee structure is tiered based on per-student assets, with rates of 15%, 20%, and 25% depending on the asset thresholds.

Additionally, the bill creates a "higher education assets growth account" within the special revenue fund, where the revenues from these fees will be deposited. The account's funds are appropriated for the state grant program, and any earnings from the account will remain available for future use. The provisions of the bill will take effect the day after final enactment for the participation fee, while the fee will apply to taxable years beginning after December 31, 2025, impacting student financial aid for the 2026-2027 academic year.

Statutes affected:
Introduction: 136A.121