Purpose

The bill would prevent public colleges and universities in Minnesota from using student fees to pay or compensate student athletes. It adds this prohibition to Minnesota law and makes clear that such use of fees is not allowed.

Main Provisions

• Prohibition on athletic fees (135A.0435, Subdivision 1):
  • The governing body of a public postsecondary institution may not impose or maintain any mandatory student fee or raise tuition if the purpose is to compensate student athletes.
• Penalty for noncompliance (135A.0435, Subdivision 2):
  • If an institution violates the prohibition, the commissioner of management and budget must deduct from the institution’s appropriation base an amount equal to 1% of the appropriation base in the first year of the next biennium.

Significant Changes to Existing Law

• Introduces a new explicit restriction in Minnesota Statutes chapter 135A (Athletic Fees) that ties usage of student fees to athlete compensation.
• Establishes a financial penalty option for noncompliance by reducing an institution’s funding (1% of its appropriation base) in the next biennium.

Practical Effect

• Public colleges and universities cannot fund pay-for-athlete arrangements through mandatory student fees or tuition increases.
• If an institution tries to compensate student athletes with such fees, it faces a monetary deduction from its upcoming funding, creating a strong incentive to comply.

Key Implications

• Strengthens the separation between student fee funds and athlete compensation.
• Shifts potential enforcement to the state budget process via the appropriation base deduction.

Notes for Public Understanding

• The measure targets the financial mechanism (mandatory fees) rather than general university budgeting.
• The penalty aims to deter use of student fees for athlete pay by reducing future state funding.

Relevant Terms athletic fees; mandatory student fee; compensate student athletes; appropriation base; commissioner of management and budget; public postsecondary institution; tuition for the purpose of compensating student athletes; biennium; violation; Minnesota Statutes 135A.0435; Subdivision 1; Subdivision 2