HF 4754

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/26/2026 02:38 p.m.

A bill for an act
relating to state government; requiring undesignated money returned to the state
through restitution or recovery be deposited in a taxpayer refund account; providing
for annual distribution of funds; requiring rulemaking; proposing coding for new
law in Minnesota Statutes, chapter 16A.

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

Section 1.

new text begin [16A.274] TAXPAYER REFUND ACCOUNT.
new text end

new text begin Subdivision 1. new text end

new text begin Creation of account. new text end

new text begin The taxpayer refund account is established in the
special revenue fund. The account consists of money deposited under this section and any
interest earned from the account. Money in the account is annually appropriated to the
commissioner of management and budget for the purposes described in subdivision 4.
new text end

new text begin Subd. 2. new text end

new text begin Administration; use of funds. new text end

new text begin The commissioner of management and budget
shall administer the account and maintain records of deposits, sources of funds, and balances.
Interest earned from the account must be credited to the account. Money in the account
must only be used for issuing taxpayer refunds under this section. Money in the account is
nonlapsing and must not be transferred, allotted, or appropriated for any other purpose than
that described in this section.
new text end

new text begin Subd. 3. new text end

new text begin Deposit of recovered funds. new text end

new text begin (a) For purposes of this section, "recovered funds"
means money received by the state or any state agency from:
new text end

new text begin (1) nondesignated civil judgments or settlements;
new text end

new text begin (2) fraud recovery actions;
new text end

new text begin (3) overpayment recovery actions;
new text end

new text begin (4) nondesignated administrative fines or penalties;
new text end

new text begin (5) any reimbursement, repayment, or return of money previously disbursed by the state
and that is not designated for a specific purpose; and
new text end

new text begin (6) criminal restitution that is not designated by a court for a specific victim or entity.
new text end

new text begin (b) Notwithstanding any other provision of law, all recovered funds shall be deposited
into the taxpayer fund account. This section does not apply to funds required by federal law
to be used for a specific purpose or funds that a court order directs for a specific victim or
entity.
new text end

new text begin (c) Within 60 days of receipt of recovered funds, a state agency must transfer the funds
to the commissioner of management and budget to be deposited in the taxpayer refund
account in the state treasury.
new text end

new text begin Subd. 4. new text end

new text begin Annual distribution of funds. new text end

new text begin (a) At adjournment of each annual legislative
session sine die, the commissioner shall determine the balance of the taxpayer refund account.
If the account is greater than $300,000,000, refunds must be disbursed. If the account does
not meet that threshold, the money shall be carried over to the next legislative session. The
commissioner shall determine the refund amount per eligible taxpayer using a proportional
or per capita formula established by rule. An eligible taxpayer is any individual who filed
a Minnesota individual income tax return for the most recent tax year. The commissioner
shall collaborate with the commissioner of revenue to determine eligible taxpayers.
new text end

new text begin (b) Refunds shall be made no later than 120 days of adjournment of the legislative
session. Refunds shall be issued from the treasury as direct payments.
new text end

new text begin Subd. 5. new text end

new text begin Rulemaking. new text end

new text begin The commissioner shall adopt rules necessary to implement this
section including a distribution formula and procedures for processing payments.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2026, and applies to all recovered
funds received on or after that date.
new text end