HF 2846

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/26/2025 11:33 a.m.

A bill for an act
relating to state government finance; appropriating money for attorney general
duties and activities; establishing a consumer protection restitution account and
related requirements; modifying the consumer litigation account; establishing a
proceeds of litigation or settlement account; requiring a report; amending Minnesota
Statutes 2024, sections 8.31, subdivision 2c; 8.315, subdivision 3, by adding a
subdivision; 16A.151, subdivision 1, by adding a subdivision; proposing coding
for new law in Minnesota Statutes, chapter 8.

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

ARTICLE 1

ATTORNEY GENERAL APPROPRIATIONS

Section 1. new text begin ATTORNEY GENERAL. new text end

new text begin The sums shown in the columns marked "Appropriations" are appropriated to the agencies
and for the purposes specified in this article. The appropriations are from the general fund,
or another named fund, and are available for the fiscal years indicated for each purpose.
The figures "2026" and "2027" used in this article mean that the appropriations listed under
them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.
"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"
is fiscal years 2026 and 2027.
new text end

			new text begin APPROPRIATIONS new text end
			new text begin Available for the Year new text end
			new text begin Ending June 30 new text end
				new text begin 2026 new text end		new text begin 2027 new text end

Sec. 2. new text begin ATTORNEY GENERAL new text end

new text begin $ new text end

new text begin 53,165,000 new text end

new text begin $ new text end

new text begin 52,225,000 new text end

new text begin Appropriations by Fund new text end
	new text begin 2026 new text end	new text begin 2027 new text end
new text begin General new text end	new text begin 49,749,000 new text end	new text begin 48,809,000 new text end
new text begin State Government Special Revenue new text end	new text begin 3,021,000 new text end	new text begin 3,021,000 new text end
new text begin Environmental new text end	new text begin 145,000 new text end	new text begin 145,000 new text end
new text begin Remediation new text end	new text begin 250,000 new text end	new text begin 250,000 new text end

ARTICLE 2

CONSUMER PROTECTION POLICY

Section 1.

Minnesota Statutes 2024, section 8.31, subdivision 2c, is amended to read:

Subd. 2c.

Undistributed money deleted text begin to general fund deleted text end .

If a court of competent jurisdiction
deleted text begin finds deleted text end new text begin or the attorney general determines new text end that a sum recovered under this section for the
benefit of injured persons cannot reasonably be distributed to the victims, because the victims
cannot readily be located or identified, or because the cost of distributing the money would
outweigh the benefit to the victims, then the court deleted text begin may order that the money be paid into
the general fund. All sums recovered must be deposited into the state treasury and credited
to the general fund deleted text end new text begin or attorney general must deposit the money in the consumer protection
restitution account under section 8.37 new text end . new text begin Money from consumer enforcement public
compensation that a court or the attorney general attempts to distribute to an eligible
consumer, but that the consumer does not redeem within 120 days of the date the distribution
attempt is made, may be redeposited in the consumer protection restitution account.
new text end

Sec. 2.

Minnesota Statutes 2024, section 8.315, subdivision 3, is amended to read:

Subd. 3.

Reporting.

new text begin (a) new text end The attorney general shall report annually by October 15 to the
chairs and ranking minority members of the committees in the senate and the house of
representatives with jurisdiction over state government finance on activities funded through
money disbursed from the consumer litigation account during the prior fiscal year.

new text begin (b) new text end The report must include new text begin : (1) new text end an accounting of new text begin (i) new text end the starting balance and ending
balance of the consumer litigation account for the relevant reporting period new text begin , (ii) the amount
transferred each year on July from the proceeds of litigation or settlement account under
section 16A.151, subdivision 1a, new text end and new text begin (iii) new text end a summary description of all disbursements from
the account, along with the purpose of any disbursements new text begin ; and (2) a recommendation to
adjust the maximum account balance under subdivision 4, if the attorney general determines
an adjustment is necessary new text end .

Sec. 3.

Minnesota Statutes 2024, section 8.315, is amended by adding a subdivision to
read:

new text begin Subd. 4. new text end

new text begin Account balance. new text end

new text begin The maximum balance of the consumer litigation account
is $2,000,000.
new text end

Sec. 4.

new text begin [8.37] CONSUMER PROTECTION RESTITUTION ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
new text end

new text begin (b) "Account" means the consumer protection restitution account established under this
section.
new text end

new text begin (c) "Account administrator" means a person appointed by the attorney general to
administer the account under this section.
new text end

new text begin (d) "Consumer enforcement action" means litigation in any forum, or the settlement of
a matter that could have resulted in litigation, by the attorney general in whole or in part
under the attorney general's authority under section 8.31 or under other authority granted
to the attorney general to obtain the remedies under section 8.31.
new text end

new text begin (e) "Consumer enforcement public compensation" means money awarded or recovered
in a consumer enforcement action to vindicate public interests by providing restitution or
other compensation to individuals harmed by an unlawful act or practice that is the subject
of a consumer enforcement action.
new text end

new text begin (f) "Court-appointed administrator" means an administrator appointed by a court under
section 8.31, subdivision 3c.
new text end

new text begin (g) "Eligible consumer" means a person who: (1) was harmed by an unlawful act or
practice that is the subject of a consumer enforcement action; and (2) as a result of the
consumer enforcement action, is eligible to receive consumer enforcement public
compensation under a final order.
new text end

new text begin (h) "Final order" means a judgment, assurance of discontinuance, consent order,
settlement, stipulation, or other order or settlement that is no longer appealable and for
which no appeals are pending. Final order does not include a judgment, assurance of
discontinuance, consent order, settlement, stipulation, or other order or settlement entered
into before ......
new text end

new text begin (i) "Identified unpaid consumer enforcement public compensation" means a specific
amount of consumer enforcement public compensation that: (1) the attorney general,
court-appointed administrator, or account administrator has determined a specific eligible
consumer is entitled to receive following a final order in a consumer enforcement action;
and (2) has not been distributed to the specific eligible consumer.
new text end

new text begin Subd. 2. new text end

new text begin Account established; appropriation. new text end

new text begin (a) A consumer protection restitution
account is established as a separate account in the special revenue fund of the state treasury.
The account consists of money deposited in the account pursuant to this section and any
other money provided by law or donated, allocated, transferred, or otherwise provided to
the account. Money in the account is appropriated to the attorney general, court-appointed
administrator, or account administrator, as applicable, for the purposes specified under
paragraph (c).
new text end

new text begin (b) Fifty percent of all money recovered by the attorney general in any consumer
enforcement action that is payable to the state and not designated as consumer enforcement
public compensation or for another specific purpose must be deposited into the account.
Money may also be deposited into the account as provided under section 8.31, subdivision
2c.
new text end

new text begin (c) The attorney general, court-appointed administrator, or account administrator must
use money in the account only to distribute consumer enforcement action public
compensation to eligible consumers under subdivision 4 and to pay for costs incurred to
administer the account. The costs to administer the account include the cost to retain, for
any permissible purpose, an account administrator or court-appointed administrator.
new text end

new text begin Subd. 3. new text end

new text begin Account administrator. new text end

new text begin (a) The attorney general may appoint an account
administrator. An account administrator appointed under this subdivision must:
new text end

new text begin (1) determine the identified amounts of unpaid consumer enforcement public
compensation for eligible consumers;
new text end

new text begin (2) collect money to deposit, in whole or in part, in the account;
new text end

new text begin (3) distribute money to eligible consumers under subdivision 4; or
new text end

new text begin (4) perform other tasks required to administer the account.
new text end

new text begin (b) The attorney general may compensate an account administrator using money from
the account. The attorney general may appoint more than one account administrator.
new text end

new text begin Subd. 4. new text end

new text begin Distributions; eligible consumers. new text end

new text begin The attorney general, court-appointed
administrator, or fund administrator may distribute money from the account to any eligible
consumer with identified unpaid consumer enforcement public compensation. If the amount
of money in the fund is insufficient to pay distributions to all eligible consumers with
identified unpaid consumer enforcement public compensation, the attorney general,
court-appointed administrator, or fund administrator must first distribute money to consumers
eligible for identified unpaid consumer enforcement public compensation based on a
consumer enforcement action with the oldest final order date.
new text end

new text begin Subd. 5. new text end

new text begin Unpaid compensation; impractical payments; unreasonable efforts. new text end

new text begin (a)
The attorney general may determine that distributing identified unpaid consumer enforcement
public compensation to an eligible consumer is impractical if: (1) the eligible consumer's
identified unpaid consumer enforcement public compensation amount is too small to justify
the cost to locate the eligible consumer or make the payment; (2) the eligible consumer does
not redeem a payment within a reasonable amount of time; or (3) other circumstances make
distributing the unpaid consumer enforcement public compensation to the eligible consumer
unreasonable.
new text end

new text begin (b) The attorney general may determine that an attempt to calculate identified unpaid
consumer enforcement public compensation for some or all eligible consumers relating to
a consumer enforcement action when the judgment, assurance of discontinuance, consent
order, settlement, stipulation, or other order or settlement does not identify specific amounts
of consumer enforcement public compensation for specific consumers is unreasonable if:
(1) the number of likely eligible consumers and the amount of likely unpaid consumer
enforcement public compensation is too small to justify the cost to calculate the identified
unpaid consumer enforcement public compensation; (2) the information needed to identify
the amount of unpaid consumer enforcement public compensation is unavailable or too
costly to obtain; or (3) other circumstances make an attempt to calculate the identified
amount of unpaid consumer enforcement public compensation unreasonable.
new text end

new text begin Subd. 6. new text end

new text begin Concluded distributions. new text end

new text begin The attorney general may conclude that distributing
unpaid consumer enforcement public compensation relating to a consumer enforcement
action is impractical when the attorney general determines:
new text end

new text begin (1) all eligible consumers with identified unpaid consumer enforcement public
compensation for the consumer enforcement action have received a distribution from the
account or the distribution is impractical under subdivision 5, paragraph (a); and
new text end

new text begin (2) no additional eligible consumers with unpaid consumer enforcement public
compensation for that consumer enforcement action exist or the attorney general has
determined that identifying unpaid compensation is unreasonable under subdivision 5,
paragraph (b).
new text end

new text begin Subd. 7. new text end

new text begin No private right of action. new text end

new text begin A person does not have a private right of action
with respect to a payment from the account or the administration of the account.
new text end

new text begin Subd. 8. new text end

new text begin Collection efforts. new text end

new text begin A monetary distribution from the account to an eligible
consumer has no effect on the attorney general's authority to collect, satisfy, or enforce final
orders against a person that is ordered to pay consumer enforcement public compensation
to eligible consumers under the final order. To the extent the attorney general collects
consumer enforcement public compensation pursuant to a final order after money has been
distributed from the account to eligible consumers that are the subject of that final order,
the collected consumer enforcement public compensation must be deposited in the account
in an amount equal to the amount distributed from the account for eligible consumers subject
to the applicable final order.
new text end

new text begin Subd. 9. new text end

new text begin Annual report. new text end

new text begin The attorney general must publish an annual report that identifies
for the annual period:
new text end

new text begin (1) the consumer enforcement actions that result in monetary payment to the fund and
the amount of money paid to the fund for each consumer enforcement action;
new text end

new text begin (2) the consumer enforcement actions for which distributions were made to eligible
consumers and the amount of money distributed for each consumer enforcement action;
new text end

new text begin (3) the consumer enforcement actions for which eligible consumers are awaiting
distribution from the fund and the amount of money that the eligible consumers are waiting
for distribution from for each consumer enforcement action;
new text end

new text begin (4) the consumer enforcement actions for which the attorney general has concluded
distributing money from the account;
new text end

new text begin (5) the consumer enforcement actions in which the attorney general determined under
subdivision 5 that some or all eligible compensation was impractical to distribute or
unreasonable to determine; and
new text end

new text begin (6) the cost to administer the account.
new text end

Sec. 5.

Minnesota Statutes 2024, section 16A.151, subdivision 1, is amended to read:

Subdivision 1.

State funds deleted text begin ; general fund deleted text end .

(a) This subdivision applies, notwithstanding
any law to the contrary, except as provided in subdivision 2.

(b) A state official may not commence, pursue, or settle litigation, or settle a matter that
could have resulted in litigation, in a manner that would result in money being distributed
to a person or entity other than the state.

(c) Money recovered by a state official in litigation or in settlement of a matter that could
have resulted in litigation is state money and must be deposited in the deleted text begin general fund deleted text end new text begin proceeds
of litigation or settlement account under subdivision 1a new text end .

new text begin (d) On July 1 each year, the commissioner must transfer from the proceeds of litigation
or settlement account under subdivision 1a to the consumer litigation account established
under section 8.315, subdivision 1, a sum sufficient to ensure the balance of the consumer
litigation account is $2,000,000.
new text end

new text begin (e) On July 1 each year, after the commissioner makes the transfer under paragraph (d),
the commissioner must transfer the balance remaining in the proceeds of litigation or
settlement account under subdivision 1 to the general fund.
new text end

new text begin (f) The report required under section 8.315, subdivision 3, must include an accounting
of the money transferred under paragraph (d) to the consumer litigation account under
section 8.315, subdivision 1.
new text end

Sec. 6.

Minnesota Statutes 2024, section 16A.151, is amended by adding a subdivision to
read:

new text begin Subd. 1a. new text end

new text begin Proceeds of litigation or settlement account established. new text end

new text begin A proceeds of
litigation or settlement account is established as a special account in the state treasury. The
account consists of money that is (1) recovered by a state official in litigation or in a
settlement, and (2) subsequently deposited in the account as provided under subdivision 1,
paragraph (c).
new text end