Minnesota Senate Bill SF3248

Minnesota 2025-2026 Regular Session

• Introduced: 4/3/25
• Refer: 4/3/25

Caption

Certain assets of colleges and universities certain growth participation fee establishment provision and special revenue fund account establishment provision

Summary

SF 3248 would create a new state participation fee tied to the growth of certain assets held by private colleges and universities that receive Minnesota student aid. The bill defines an “applicable educational institution” as an eligible institution with more than $100 million in total assets, at least 500 tuition-paying students, and a majority of those students located in Minnesota. For institutions meeting those criteria, the fee would be based on asset growth and the institution’s per-student assets, with rates of 15 percent, 20 percent, or 25 percent depending on the asset level per student. To remain eligible for state student aid under the Minnesota State Grant Program, an institution would have to pay the fee by May 30 for the next academic year. The bill also requires related organizations’ assets to be counted in certain circumstances, and it directs institutions to report and pay the fee in a form prescribed by the commissioner of higher education. Revenues from the fee would be deposited into a new higher education assets growth account in the special revenue fund and appropriated to support the state grant program.

Impact

The bill would amend Minnesota Statutes section 136A.121 and add a new section 136A.1212, creating a new financial condition for participation in the state grant program. It would also establish a dedicated special revenue fund account for the fee proceeds, with those funds available to the commissioner for student aid purposes rather than reverting to the general fund. In practical terms, the measure would affect certain large private colleges and universities by imposing a new payment obligation linked to asset growth and by potentially conditioning access to state grant dollars on compliance.

Sentiment

Based on the bill text and the absence of recorded committee testimony or votes in the provided materials, the overall sentiment cannot be measured from debate history. The structure of the bill suggests a policy approach aimed at redirecting a portion of institutional asset growth toward student financial aid, which may appeal to supporters of expanding grant funding and increasing institutional contribution. At the same time, the bill’s targeted fee on higher-asset institutions indicates it could draw concern from affected colleges and universities over cost, eligibility conditions, and the treatment of endowment or related-organization assets.

Contention

The main points of contention are likely to be the fee’s size, the threshold for covered institutions, and the method used to calculate asset growth and per-student assets. Colleges and universities subject to the bill may object to counting related-organization assets and to the requirement that payment be made in order to receive state grant aid. Supporters are likely to emphasize the bill’s purpose of generating additional resources for the Minnesota State Grant Program and targeting only institutions with substantial assets and student populations in Minnesota.