HF 644

1st Engrossment - 92nd Legislature (2021 - 2022) Posted on 03/10/2021 01:51pm

A bill for an act
relating to state government; providing for disposition of certain money recovered
from litigation or settlement of environmental permit violations; amending
Minnesota Statutes 2020, section 16A.151, subdivision 2.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2020, section 16A.151, subdivision 2, is amended to read:

Subd. 2.

Exceptions.

(a) If a state official litigates or settles a matter on behalf of specific
injured persons or entities, this section does not prohibit distribution of money to the specific
injured persons or entities on whose behalf the litigation or settlement efforts were initiated.
If money recovered on behalf of injured persons or entities cannot reasonably be distributed
to those persons or entities because they cannot readily be located or identified or because
the cost of distributing the money would outweigh the benefit to the persons or entities, the
money must be paid into the general fund.

(b) Money recovered on behalf of a fund in the state treasury other than the general fund
may be deposited in that fund.

(c) This section does not prohibit a state official from distributing money to a person or
entity other than the state in litigation or potential litigation in which the state is a defendant
or potential defendant.

(d) State agencies may accept funds as directed by a federal court for any restitution or
monetary penalty under United States Code, title 18, section 3663(a)(3), or United States
Code, title 18, section 3663A(a)(3). Funds received must be deposited in a special revenue
account and are appropriated to the commissioner of the agency for the purpose as directed
by the federal court.

(e) Tobacco settlement revenues as defined in section 16A.98, subdivision 1, paragraph
(t), may be deposited as provided in section 16A.98, subdivision 12.

(f) Any money received by the state resulting from a settlement agreement or an assurance
of discontinuance entered into by the attorney general of the state, or a court order in litigation
brought by the attorney general of the state, on behalf of the state or a state agency, against
one or more opioid manufacturers or opioid wholesale drug distributors related to alleged
violations of consumer fraud laws in the marketing, sale, or distribution of opioids in this
state or other alleged illegal actions that contributed to the excessive use of opioids, must
be deposited in a separate account in the state treasury and the commissioner shall notify
the chairs and ranking minority members of the Finance Committee in the senate and the
Ways and Means Committee in the house of representatives that an account has been created.
This paragraph does not apply to attorney fees and costs awarded to the state or the Attorney
General's Office, to contract attorneys hired by the state or Attorney General's Office, or to
other state agency attorneys. If the licensing fees under section 151.065, subdivision 1,
clause (16), and subdivision 3, clause (14), are reduced and the registration fee under section
151.066, subdivision 3, is repealed in accordance with section 256.043, subdivision 4, then
the commissioner shall transfer from the separate account created in this paragraph to the
opiate epidemic response fund under section 256.043 an amount that ensures that $20,940,000
each fiscal year is available for distribution in accordance with section 256.043, subdivisions
2 and 3.

new text begin (g) If the Minnesota Pollution Control Agency recovers $250,000 or more in litigation
or in settlement of a matter that could have resulted in litigation for a civil penalty from
violations of a permit issued by the Minnesota Pollution Control Agency, then 40 percent
of the money recovered must be distributed to the community health board, as defined in
section 145A.02, where the permitted facility is located. The commissioner of the Minnesota
Pollution Control Agency must notify the applicable community health board within 30
days of a final court order in the litigation or the effective date of the settlement agreement
that the litigation has concluded or a settlement has been reached. The commissioner of the
Minnesota Pollution Control Agency must collect the money and transfer it to the applicable
community health board. The community health board must meet directly with the residents
potentially affected by the pollution that was the subject of the litigation or settlement to
understand the residents' concerns and incorporate those concerns into a project that benefits
the residents. The project must be implemented by the community health board and funded
as directed in this paragraph. The community health board may recover the reasonable costs
it incurs to administer the provisions of this paragraph from the funds transferred to it under
this paragraph.This paragraph directs the transfer and use of money only and does not create
a right of intervention in the litigation or settlement of the enforcement action for any person
or entity.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to all litigation actions or settlements from which the Minnesota Pollution Control
Agency recovered $250,000 or more on or after that date.
new text end