Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2846 Latest Draft

Bill / Introduced Version Filed 03/25/2025

                            1.1	A bill for an act​
1.2 relating to state government finance; appropriating money for attorney general​
1.3 duties and activities; establishing a consumer protection restitution account and​
1.4 related requirements; modifying the consumer litigation account; establishing a​
1.5 proceeds of litigation or settlement account; requiring a report; amending Minnesota​
1.6 Statutes 2024, sections 8.31, subdivision 2c; 8.315, subdivision 3, by adding a​
1.7 subdivision; 16A.151, subdivision 1, by adding a subdivision; proposing coding​
1.8 for new law in Minnesota Statutes, chapter 8.​
1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:​
1.10	ARTICLE 1​
1.11	ATTORNEY GENERAL APPROPRIATIONS​
1.12Section 1. ATTORNEY GENERAL.​
1.13 The sums shown in the columns marked "Appropriations" are appropriated to the agencies​
1.14and for the purposes specified in this article. The appropriations are from the general fund,​
1.15or another named fund, and are available for the fiscal years indicated for each purpose.​
1.16The figures "2026" and "2027" used in this article mean that the appropriations listed under​
1.17them are available for the fiscal year ending June 30, 2026, or June 30, 2027, respectively.​
1.18"The first year" is fiscal year 2026. "The second year" is fiscal year 2027. "The biennium"​
1.19is fiscal years 2026 and 2027.​
1.20	APPROPRIATIONS​
1.21	Available for the Year​
1.22	Ending June 30​
2027​1.23	2026​
52,225,000​$​53,165,000​$​1.24Sec. 2. ATTORNEY GENERAL​
1​Article 1 Sec. 2.​
REVISOR RSI/VJ 25-03177​03/21/25 ​
State of Minnesota​
This Document can be made available​
in alternative formats upon request​
HOUSE OF REPRESENTATIVES​
H. F. No.  2846​
NINETY-FOURTH SESSION​
Authored by Klevorn, Norris, Acomb, Rehrauer and Bahner​03/26/2025​
The bill was read for the first time and referred to the Committee on State Government Finance and Policy​ 2.1	Appropriations by Fund​
2027​2.2	2026​
48,809,000​49,749,000​2.3General​
3,021,000​3,021,000​
2.4State Government​
2.5Special Revenue​
145,000​145,000​2.6Environmental​
250,000​250,000​2.7Remediation​
2.8	ARTICLE 2​
2.9	CONSUMER PROTECTION POLICY​
2.10 Section 1. Minnesota Statutes 2024, section 8.31, subdivision 2c, is amended to read:​
2.11 Subd. 2c.Undistributed money to general fund.If a court of competent jurisdiction​
2.12finds or the attorney general determines that a sum recovered under this section for the​
2.13benefit of injured persons cannot reasonably be distributed to the victims, because the victims​
2.14cannot readily be located or identified, or because the cost of distributing the money would​
2.15outweigh the benefit to the victims, then the court may order that the money be paid into​
2.16the general fund. All sums recovered must be deposited into the state treasury and credited​
2.17to the general fund or attorney general must deposit the money in the consumer protection​
2.18restitution account under section 8.37. Money from consumer enforcement public​
2.19compensation that a court or the attorney general attempts to distribute to an eligible​
2.20consumer, but that the consumer does not redeem within 120 days of the date the distribution​
2.21attempt is made, may be redeposited in the consumer protection restitution account.​
2.22 Sec. 2. Minnesota Statutes 2024, section 8.315, subdivision 3, is amended to read:​
2.23 Subd. 3.Reporting.(a) The attorney general shall report annually by October 15 to the​
2.24chairs and ranking minority members of the committees in the senate and the house of​
2.25representatives with jurisdiction over state government finance on activities funded through​
2.26money disbursed from the consumer litigation account during the prior fiscal year.​
2.27 (b) The report must include: (1) an accounting of (i) the starting balance and ending​
2.28balance of the consumer litigation account for the relevant reporting period, (ii) the amount​
2.29transferred each year on July from the proceeds of litigation or settlement account under​
2.30section 16A.151, subdivision 1a, and (iii) a summary description of all disbursements from​
2.31the account, along with the purpose of any disbursements; and (2) a recommendation to​
2.32adjust the maximum account balance under subdivision 4, if the attorney general determines​
2.33an adjustment is necessary.​
2​Article 2 Sec. 2.​
REVISOR RSI/VJ 25-03177​03/21/25 ​ 3.1 Sec. 3. Minnesota Statutes 2024, section 8.315, is amended by adding a subdivision to​
3.2read:​
3.3 Subd. 4.Account balance.The maximum balance of the consumer litigation account​
3.4is $2,000,000.​
3.5 Sec. 4. [8.37] CONSUMER PROTECTION RESTITUTION ACCOUNT.​
3.6 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have​
3.7the meanings given.​
3.8 (b) "Account" means the consumer protection restitution account established under this​
3.9section.​
3.10 (c) "Account administrator" means a person appointed by the attorney general to​
3.11administer the account under this section.​
3.12 (d) "Consumer enforcement action" means litigation in any forum, or the settlement of​
3.13a matter that could have resulted in litigation, by the attorney general in whole or in part​
3.14under the attorney general's authority under section 8.31 or under other authority granted​
3.15to the attorney general to obtain the remedies under section 8.31.​
3.16 (e) "Consumer enforcement public compensation" means money awarded or recovered​
3.17in a consumer enforcement action to vindicate public interests by providing restitution or​
3.18other compensation to individuals harmed by an unlawful act or practice that is the subject​
3.19of a consumer enforcement action.​
3.20 (f) "Court-appointed administrator" means an administrator appointed by a court under​
3.21section 8.31, subdivision 3c.​
3.22 (g) "Eligible consumer" means a person who: (1) was harmed by an unlawful act or​
3.23practice that is the subject of a consumer enforcement action; and (2) as a result of the​
3.24consumer enforcement action, is eligible to receive consumer enforcement public​
3.25compensation under a final order.​
3.26 (h) "Final order" means a judgment, assurance of discontinuance, consent order,​
3.27settlement, stipulation, or other order or settlement that is no longer appealable and for​
3.28which no appeals are pending. Final order does not include a judgment, assurance of​
3.29discontinuance, consent order, settlement, stipulation, or other order or settlement entered​
3.30into before ......​
3.31 (i) "Identified unpaid consumer enforcement public compensation" means a specific​
3.32amount of consumer enforcement public compensation that: (1) the attorney general,​
3​Article 2 Sec. 4.​
REVISOR RSI/VJ 25-03177​03/21/25 ​ 4.1court-appointed administrator, or account administrator has determined a specific eligible​
4.2consumer is entitled to receive following a final order in a consumer enforcement action;​
4.3and (2) has not been distributed to the specific eligible consumer.​
4.4 Subd. 2.Account established; appropriation.(a) A consumer protection restitution​
4.5account is established as a separate account in the special revenue fund of the state treasury.​
4.6The account consists of money deposited in the account pursuant to this section and any​
4.7other money provided by law or donated, allocated, transferred, or otherwise provided to​
4.8the account. Money in the account is appropriated to the attorney general, court-appointed​
4.9administrator, or account administrator, as applicable, for the purposes specified under​
4.10paragraph (c).​
4.11 (b) Fifty percent of all money recovered by the attorney general in any consumer​
4.12enforcement action that is payable to the state and not designated as consumer enforcement​
4.13public compensation or for another specific purpose must be deposited into the account.​
4.14Money may also be deposited into the account as provided under section 8.31, subdivision​
4.152c.​
4.16 (c) The attorney general, court-appointed administrator, or account administrator must​
4.17use money in the account only to distribute consumer enforcement action public​
4.18compensation to eligible consumers under subdivision 4 and to pay for costs incurred to​
4.19administer the account. The costs to administer the account include the cost to retain, for​
4.20any permissible purpose, an account administrator or court-appointed administrator.​
4.21 Subd. 3.Account administrator.(a) The attorney general may appoint an account​
4.22administrator. An account administrator appointed under this subdivision must:​
4.23 (1) determine the identified amounts of unpaid consumer enforcement public​
4.24compensation for eligible consumers;​
4.25 (2) collect money to deposit, in whole or in part, in the account;​
4.26 (3) distribute money to eligible consumers under subdivision 4; or​
4.27 (4) perform other tasks required to administer the account.​
4.28 (b) The attorney general may compensate an account administrator using money from​
4.29the account. The attorney general may appoint more than one account administrator.​
4.30 Subd. 4.Distributions; eligible consumers.The attorney general, court-appointed​
4.31administrator, or fund administrator may distribute money from the account to any eligible​
4.32consumer with identified unpaid consumer enforcement public compensation. If the amount​
4.33of money in the fund is insufficient to pay distributions to all eligible consumers with​
4​Article 2 Sec. 4.​
REVISOR RSI/VJ 25-03177​03/21/25 ​ 5.1identified unpaid consumer enforcement public compensation, the attorney general,​
5.2court-appointed administrator, or fund administrator must first distribute money to consumers​
5.3eligible for identified unpaid consumer enforcement public compensation based on a​
5.4consumer enforcement action with the oldest final order date.​
5.5 Subd. 5.Unpaid compensation; impractical payments; unreasonable efforts.(a)​
5.6The attorney general may determine that distributing identified unpaid consumer enforcement​
5.7public compensation to an eligible consumer is impractical if: (1) the eligible consumer's​
5.8identified unpaid consumer enforcement public compensation amount is too small to justify​
5.9the cost to locate the eligible consumer or make the payment; (2) the eligible consumer does​
5.10not redeem a payment within a reasonable amount of time; or (3) other circumstances make​
5.11distributing the unpaid consumer enforcement public compensation to the eligible consumer​
5.12unreasonable.​
5.13 (b) The attorney general may determine that an attempt to calculate identified unpaid​
5.14consumer enforcement public compensation for some or all eligible consumers relating to​
5.15a consumer enforcement action when the judgment, assurance of discontinuance, consent​
5.16order, settlement, stipulation, or other order or settlement does not identify specific amounts​
5.17of consumer enforcement public compensation for specific consumers is unreasonable if:​
5.18(1) the number of likely eligible consumers and the amount of likely unpaid consumer​
5.19enforcement public compensation is too small to justify the cost to calculate the identified​
5.20unpaid consumer enforcement public compensation; (2) the information needed to identify​
5.21the amount of unpaid consumer enforcement public compensation is unavailable or too​
5.22costly to obtain; or (3) other circumstances make an attempt to calculate the identified​
5.23amount of unpaid consumer enforcement public compensation unreasonable.​
5.24 Subd. 6.Concluded distributions.The attorney general may conclude that distributing​
5.25unpaid consumer enforcement public compensation relating to a consumer enforcement​
5.26action is impractical when the attorney general determines:​
5.27 (1) all eligible consumers with identified unpaid consumer enforcement public​
5.28compensation for the consumer enforcement action have received a distribution from the​
5.29account or the distribution is impractical under subdivision 5, paragraph (a); and​
5.30 (2) no additional eligible consumers with unpaid consumer enforcement public​
5.31compensation for that consumer enforcement action exist or the attorney general has​
5.32determined that identifying unpaid compensation is unreasonable under subdivision 5,​
5.33paragraph (b).​
5​Article 2 Sec. 4.​
REVISOR RSI/VJ 25-03177​03/21/25 ​ 6.1 Subd. 7.No private right of action.A person does not have a private right of action​
6.2with respect to a payment from the account or the administration of the account.​
6.3 Subd. 8.Collection efforts.A monetary distribution from the account to an eligible​
6.4consumer has no effect on the attorney general's authority to collect, satisfy, or enforce final​
6.5orders against a person that is ordered to pay consumer enforcement public compensation​
6.6to eligible consumers under the final order. To the extent the attorney general collects​
6.7consumer enforcement public compensation pursuant to a final order after money has been​
6.8distributed from the account to eligible consumers that are the subject of that final order,​
6.9the collected consumer enforcement public compensation must be deposited in the account​
6.10in an amount equal to the amount distributed from the account for eligible consumers subject​
6.11to the applicable final order.​
6.12 Subd. 9.Annual report.The attorney general must publish an annual report that identifies​
6.13for the annual period:​
6.14 (1) the consumer enforcement actions that result in monetary payment to the fund and​
6.15the amount of money paid to the fund for each consumer enforcement action;​
6.16 (2) the consumer enforcement actions for which distributions were made to eligible​
6.17consumers and the amount of money distributed for each consumer enforcement action;​
6.18 (3) the consumer enforcement actions for which eligible consumers are awaiting​
6.19distribution from the fund and the amount of money that the eligible consumers are waiting​
6.20for distribution from for each consumer enforcement action;​
6.21 (4) the consumer enforcement actions for which the attorney general has concluded​
6.22distributing money from the account;​
6.23 (5) the consumer enforcement actions in which the attorney general determined under​
6.24subdivision 5 that some or all eligible compensation was impractical to distribute or​
6.25unreasonable to determine; and​
6.26 (6) the cost to administer the account.​
6.27 Sec. 5. Minnesota Statutes 2024, section 16A.151, subdivision 1, is amended to read:​
6.28 Subdivision 1.State funds; general fund.(a) This subdivision applies, notwithstanding​
6.29any law to the contrary, except as provided in subdivision 2.​
6.30 (b) A state official may not commence, pursue, or settle litigation, or settle a matter that​
6.31could have resulted in litigation, in a manner that would result in money being distributed​
6.32to a person or entity other than the state.​
6​Article 2 Sec. 5.​
REVISOR RSI/VJ 25-03177​03/21/25 ​ 7.1 (c) Money recovered by a state official in litigation or in settlement of a matter that could​
7.2have resulted in litigation is state money and must be deposited in the general fund proceeds​
7.3of litigation or settlement account under subdivision 1a.​
7.4 (d) On July 1 each year, the commissioner must transfer from the proceeds of litigation​
7.5or settlement account under subdivision 1a to the consumer litigation account established​
7.6under section 8.315, subdivision 1, a sum sufficient to ensure the balance of the consumer​
7.7litigation account is $2,000,000.​
7.8 (e) On July 1 each year, after the commissioner makes the transfer under paragraph (d),​
7.9the commissioner must transfer the balance remaining in the proceeds of litigation or​
7.10settlement account under subdivision 1 to the general fund.​
7.11 (f) The report required under section 8.315, subdivision 3, must include an accounting​
7.12of the money transferred under paragraph (d) to the consumer litigation account under​
7.13section 8.315, subdivision 1.​
7.14 Sec. 6. Minnesota Statutes 2024, section 16A.151, is amended by adding a subdivision to​
7.15read:​
7.16 Subd. 1a.Proceeds of litigation or settlement account established.A proceeds of​
7.17litigation or settlement account is established as a special account in the state treasury. The​
7.18account consists of money that is (1) recovered by a state official in litigation or in a​
7.19settlement, and (2) subsequently deposited in the account as provided under subdivision 1,​
7.20paragraph (c).​
7​Article 2 Sec. 6.​
REVISOR RSI/VJ 25-03177​03/21/25 ​ Page.Ln 1.10​ATTORNEY GENERAL APPROPRIATIONS.....................................ARTICLE 1​
Page.Ln 2.8​CONSUMER PROTECTION POLICY.................................................ARTICLE 2​
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APPENDIX​
Article locations for 25-03177​