AN ACT ESTABLISHING A CAPITAL GAINS TAX ON CERTAIN ENDOWMENT FUNDS OF INSTITUTIONS OF HIGHER EDUCATION AND CONCERNING THE USE OF THE REVENUE GENERATED.

SB 385 imposes a capital gains tax on endowment funds at institutions of higher education where the fund value exceeds $500,000 per student. This tax applies to capital gains generated from those qualifying endowments. The revenue collected must be used to reduce the contribution amounts required from employees in the state's Paid Family and Medical Leave Insurance Program. The bill directly affects private and public universities meeting the endowment threshold, redirecting tax revenue to lower worker costs for family leave coverage.