1.1                          A bill for an act
  1.2             relating to state government; forbidding certain 
  1.3             litigation and settlements; providing for deposit in 
  1.4             the general fund of certain funds recovered through 
  1.5             litigation or settlements; proposing coding for new 
  1.6             law in Minnesota Statutes, chapter 16A; repealing 
  1.7             Minnesota Statutes 2000, section 8.31, subdivision 2c. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [16A.151] [PROCEEDS OF LITIGATION OR 
  1.10  SETTLEMENT.] 
  1.11     Subdivision 1.  [STATE FUNDS; GENERAL FUND.] (a) This 
  1.12  subdivision applies, notwithstanding any law to the contrary, 
  1.13  except as provided in subdivision 2. 
  1.14     (b) A state official may not commence, pursue, or settle 
  1.15  litigation, or settle a matter that could have resulted in 
  1.16  litigation, in a manner that would result in money being 
  1.17  distributed to a person or entity other than the state. 
  1.18     (c) Money recovered by a state official in litigation or in 
  1.19  settlement of a matter that could have resulted in litigation is 
  1.20  state money and must be deposited in the general fund. 
  1.21     Subd. 2.  [EXCEPTIONS.] (a) If a state official litigates 
  1.22  or settles a matter on behalf of specific injured persons or 
  1.23  entities, this section does not prohibit distribution of money 
  1.24  to the specific injured persons or entities on whose behalf the 
  1.25  litigation or settlement efforts were initiated.  If money 
  1.26  recovered on behalf of injured persons or entities cannot 
  2.1   reasonably be distributed to those persons or entities because 
  2.2   they cannot readily be located or identified or because the cost 
  2.3   of distributing the money would outweigh the benefit to the 
  2.4   persons or entities, the money must be paid into the general 
  2.5   fund.  
  2.6      (b) Money recovered on behalf of a fund in the state 
  2.7   treasury other than the general fund may be deposited in that 
  2.8   fund. 
  2.9      (c) This section does not prohibit a state official from 
  2.10  distributing money to a person or entity other than the state in 
  2.11  litigation or potential litigation in which the state is a 
  2.12  defendant or potential defendant. 
  2.13     Subd. 3.  [DEFINITIONS.] For purposes of this section: 
  2.14     (1) "litigation" includes civil, criminal, and 
  2.15  administrative actions; 
  2.16     (2) "money recovered" includes actual damages, punitive or 
  2.17  exemplary damages, statutory damages, and civil and criminal 
  2.18  penalties; and 
  2.19     (3) "state official" means the attorney general, another 
  2.20  constitutional officer, an agency, or an agency employee, acting 
  2.21  in official capacity. 
  2.22     Sec. 2.  [REPEALER.] 
  2.23     Minnesota Statutes 2000, section 8.31, subdivision 2c, is 
  2.24  repealed.