136A.245 Matching grants.
Subdivision 1. Matching grant qualification. By March 1 of each year, a state matching grant must be added to each account established under the program if the following conditions are met:
(1) the contributor applies, in writing in a form prescribed by the director, for a matching grant;
(2) a minimum contribution of $200 was made during the preceding calendar year; and
(3) the family income of the beneficiary did not exceed $80,000.
Subd. 2. Family income. For purposes of this section, "family income" means:
(1) if the beneficiary is under age 25, the combined adjusted gross income of the beneficiary's parents as reported on the federal tax return or returns for the most recently available tax year; or
(2) if the beneficiary is age 25 or older, the combined adjusted gross income of the beneficiary and spouse, if any.
Subd. 3. Amount of matching grant. The amount of the matching grant for a beneficiary equals:
(1) if the beneficiary's family income is $50,000 or less, 15 percent of the sum of the contributions made to the beneficiary's account during the calendar year, not to exceed $300; and
(2) if the beneficiary's family income is more than $50,000 but not more than $80,000, five percent of the sum of the contributions made to the beneficiary's account during the calendar year, not to exceed $300.
Subd. 4. Budget limit. If the total amount of matching grants determined under subdivision 3 exceeds the amount of the appropriation for the fiscal year, the director shall proportionately reduce each grant so that the total equals the available appropriation.
Subd. 5. Coordination with department of revenue. In administering matching grants, the director may require that applicants submit sufficient information to determine whether the beneficiary qualifies for a grant, including the social security numbers, family income information, and any other information the director determines necessary. The applicant or applicants may authorize the director to request information from the commissioner of revenue to verify eligibility for a grant from tax information on file with the commissioner or obtained from the Internal Revenue Service. If this method is used and the taxpayer has authorized a release of the information to the director, the commissioner of revenue may verify that the beneficiary is eligible for a grant at a specified rate and maximum and disclose that information to the director, notwithstanding the provisions of chapter 270B.
Subd. 6. Private contributions. (a) The office may solicit and accept contributions from private corporations, other businesses, foundations, or individuals to provide:
(1) matching grants under this section in addition to those funded with direct appropriations; or
(2) grants to students who withdraw money from accounts established under the program.
(b) Amounts contributed may only be used for those purposes. Amounts contributed are appropriated to the director to make grants.
(c) Contributors may designate a specific field of study, geographic area, or other criteria that govern use of the grants funded with their contributions, but may not discriminate on the basis of race, ethnicity, or gender. The office may refuse contributions that are subject, in the judgment of the director, to unacceptable conditions on their use.
HIST: 1997 c 183 art 2 s 16