Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF447 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		1.1 A bill for an act
2	2		1.2 relating to commerce; establishing a consumer protection restitution account;
3	3		1.3 excluding consumer enforcement public compensation payments from certain
4		-	1.4 calculations of income; classifying certain data as public; requiring a report;
5		-	1.5 appropriating money; amending Minnesota Statutes 2024, sections 8.31, subdivision
6		-	1.6 2c; 16A.151, subdivision 2; 290.0132, by adding a subdivision; 290.0693,
7		-	1.7 subdivision 1; 290A.03, subdivision 3; proposing coding for new law in Minnesota
8		-	1.8 Statutes, chapter 8.
9		-	1.9BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
10		-	1.10 Section 1. Minnesota Statutes 2024, section 8.31, subdivision 2c, is amended to read:
11		-	1.11 Subd. 2c.Undistributed money to general fund consumer protection restitution
12		-	1.12account.If a court of competent jurisdiction finds that a sum recovered under this section
13		-	1.13for the benefit of injured persons cannot reasonably be distributed to the victims, because
14		-	1.14the victims cannot readily be located or identified, or because the cost of distributing the
15		-	1.15money would outweigh the benefit to the victims, then the court may order that the money
16		-	1.16be paid into the general fund. All sums recovered must be deposited into the state treasury
17		-	1.17and credited to the general fund or attorney general must deposit the money in the consumer
18		-	1.18protection restitution account under section 8.37. Consumer enforcement public compensation
19		-	1.19that the attorney general attempts to distribute to an eligible consumer, but that is not
20		-	1.20redeemed by the consumer within 120 days, may be redeposited in the account. For purposes
21		-	1.21of this subdivision, "consumer enforcement public compensation" and "eligible consumer"
22		-	1.22have the meanings given in section 8.37, subdivision 2.
	4	+	1.4 calculations of income; requiring a report; appropriating money; amending
	5	+	1.5 Minnesota Statutes 2024, sections 8.31, subdivision 2c; 16A.151, subdivision 2;
	6	+	1.6 290.0132, by adding a subdivision; 290.0693, subdivision 1; 290A.03, subdivision
	7	+	1.7 3; proposing coding for new law in Minnesota Statutes, chapter 8.
	8	+	1.8BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
	9	+	1.9 Section 1. Minnesota Statutes 2024, section 8.31, subdivision 2c, is amended to read:
	10	+	1.10 Subd. 2c.Undistributed money to general fund consumer protection restitution
	11	+	1.11account.If a court of competent jurisdiction finds that a sum recovered under this section
	12	+	1.12for the benefit of injured persons cannot reasonably be distributed to the victims, because
	13	+	1.13the victims cannot readily be located or identified, or because the cost of distributing the
	14	+	1.14money would outweigh the benefit to the victims, then the court may order that the money
	15	+	1.15be paid into the general fund. All sums recovered must be deposited into the state treasury
	16	+	1.16and credited to the general fund or attorney general must deposit the money in the consumer
	17	+	1.17protection restitution account under section 8.37. Consumer enforcement public compensation
	18	+	1.18that the attorney general attempts to distribute to an eligible consumer, but that is not
	19	+	1.19redeemed by the consumer within 120 days, may be redeposited in the account. For purposes
	20	+	1.20of this subdivision, "consumer enforcement public compensation" and "eligible consumer"
	21	+	1.21have the meanings given in section 8.37, subdivision 2.
23	22		1Section 1.
24		-	S0447-~~4 4th~~ EngrossmentSF447 REVISOR RSI
	23	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI
25	24		SENATE
26	25		STATE OF MINNESOTA
27	26		S.F. No. 447NINETY-FOURTH SESSION
28	27		(SENATE AUTHORS: REST, Carlson, Koran, Klein and Dornink)
29	28		OFFICIAL STATUSD-PGDATE
30	29		Introduction and first reading13601/21/2025
31	30		Referred to Commerce and Consumer Protection
32	31		Author added Dornink19901/27/2025
33	32		Comm report: To pass as amended and re-refer to State and Local Government595a03/03/2025
34	33		Comm report: To pass as amended and re-refer to Judiciary and Public Safety733a03/13/2025
35		-	Comm report: To pass as amended and re-refer to Finance884a03/20/2025
36		-	Comm report: To pass as amended and re-refer to Taxes04/03/2025 2.1 Sec. 2. [8.37] CONSUMER PROTECTION RESTITUTION ACCOUNT.
	34	+	Comm report: To pass as amended and re-refer to Finance03/20/2025 2.1 Sec. 2. [8.37] CONSUMER PROTECTION RESTITUTION ACCOUNT.
37	35		2.2 Subdivision 1.Creation of account.The consumer protection restitution account is
38	36		2.3established in the special revenue fund. Money in the account is appropriated annually to
39	37		2.4the attorney general for the purposes provided under subdivision 4.
40	38		2.5 Subd. 2.Definitions.(a) The definitions in this subdivision apply to this section.
41	39		2.6 (b) "Account" means the consumer protection restitution account established under this
42	40		2.7section.
43	41		2.8 (c) "Account administrator" means a person appointed by the attorney general as an
44	42		2.9account administrator under this section.
45	43		2.10 (d) "Consumer enforcement action" means litigation in any forum, or settlement of a
46	44		2.11matter that could have resulted in litigation, by the attorney general in whole or in part under
47	45		2.12(1) the authority of the attorney general provided in section 8.31, or (2) other authority
48	46		2.13granted to the attorney general by law to obtain the remedies provided in section 8.31.
49	47		2.14 (e) "Consumer enforcement public compensation" means money awarded or recovered
50	48		2.15in a consumer enforcement action to vindicate public interests by providing restitution or
51	49		2.16other compensation to persons directly impacted by unlawful acts and practices that are the
52	50		2.17subject of the consumer enforcement action.
53	51		2.18 (f) "Court-appointed administrator" means an administrator appointed by a court under
54	52		2.19section 8.31, subdivision 3c.
55	53		2.20 (g) "Eligible consumer" means a person who was directly impacted by unlawful acts
56	54		2.21and practices that are the subject of a consumer enforcement action and, as a result, is eligible
57	55		2.22to receive consumer enforcement public compensation under a final order.
58	56		2.23 (h) "Final order" means a judgment, assurance of discontinuance, consent order,
59	57		2.24settlement, stipulation, or other order or settlement that is no longer appealable and for
60	58		2.25which no appeals are pending. A final order does not include any judgment, assurance of
61	59		2.26discontinuance, consent order, settlement, stipulation, or other order or settlement entered
62	60		2.27into before July 1, 2023.
63	61		2.28 (i) "Identified amount of unpaid consumer enforcement public compensation" means a
64	62		2.29specific amount of consumer enforcement public compensation that the attorney general,
65	63		2.30court-appointed administrator, or fund administrator has determined a specific eligible
66	64		2.31consumer is entitled to receive following a final order in a consumer enforcement action
67	65		2.32and that has not been distributed to the specific eligible consumer.
68	66		2Sec. 2.
69		-	S0447-~~4 4th~~ EngrossmentSF447 REVISOR RSI 3.1 Subd. 3.Money deposited in the account.50 percent of all money recovered by the
	67	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 3.1 Subd. 3.Money deposited in the account.50 percent of all money recovered by the
70	68		3.2attorney general in a consumer enforcement action that is payable to the state and not
71	69		3.3designated as consumer enforcement public compensation or for another specific purpose
72	70		3.4up to the first $1,000,000 each fiscal year must be deposited into the account. The remaining
73	71		3.550 percent of money recovered by the attorney general in a consumer enforcement action
74	72		3.6that is payable to the state and not designated as consumer enforcement public compensation
75	73		3.7or for another specific purpose must be deposited into the general fund. For purposes of
76	74		3.8this subdivision, the amount of money recovered in a consumer enforcement action that
77	75		3.9must be deposited into the fund is determined at the time when the money otherwise would
78	76		3.10have been deposited into the general fund.
79	77		3.11 Subd. 4.Permissible use of account.Money in the account must be used only to
80	78		3.12distribute consumer enforcement action public compensation to eligible consumers under
81	79		3.13subdivision 5 and for costs to administer the account. The costs to administer the account
82	80		3.14may include the cost to retain for any permissible purpose an account administrator or
83	81		3.15court-appointed administrator but must not exceed three percent of the total amount of
84	82		3.16money available. The attorney general may pay an account administrator from the account
85	83		3.17if the account contains excess money.
86		-	3.18 Subd. 5.Distributions to eligible consumers.~~(a)~~ Money in the account may be
87		-	3.~~19distributed to~~ any eligible consumer with an identified amount of unpaid consumer
88		-	3.~~20enforcement public compensation~~. If the amount of money in the account is insufficient to
89		-	3.~~21pay all distributions to~~ eligible consumers with an identified amount of unpaid consumer
90		-	3.~~22enforcement public compensation~~, the money must be distributed first to consumers eligible
91		-	3.~~23for unpaid consumer enforcement~~ public compensation based on a consumer enforcement
92		-	3.~~24action with a final order~~ of the oldest date.
93		-	3.25 ~~(b) If the attorney general projects that there will be insufficient funding~~ to ~~pay all eligible~~
94		-	3.~~26consumers from the funds available on an ongoing basis,~~ the attorney general may
95		-	3.~~27recommend to the legislature that the legislature prescribe a formula for prorating or capping~~
96		-	3.~~28payments to eligible consumers so that more eligible consumers will receive payment from~~
97		-	3.~~29the fund.~~
98		-	3.~~30 Subd.~~ ~~6.Impractical payments and unreasonable effort as to unpaid~~
99		-	3.~~31compensation.~~(a) The ~~attorney general may deem~~ a ~~distribution to an eligible consumer~~
100		-	3.~~32with an identified amount of~~ unpaid consumer enforcement ~~public~~ compensation ~~impractical~~
101		-	3.~~33if:~~
	84	+	3.18 Subd. 5.Distributions to eligible consumers.Money in the account may be distributed
	85	+	3.19to any eligible consumer with an identified amount of unpaid consumer enforcement public
	86	+	3.20compensation. If the amount of money in the account is insufficient to pay all distributions
	87	+	3.21to eligible consumers with an identified amount of unpaid consumer enforcement public
	88	+	3.22compensation, the money must be distributed first to consumers eligible for unpaid consumer
	89	+	3.23enforcement public compensation based on a consumer enforcement action with a final
	90	+	3.24order of the oldest date.
	91	+	3.25 Subd. 6.Impractical payments and unreasonable effort as to unpaid
	92	+	3.26compensation.(a) The attorney general may deem a distribution to an eligible consumer
	93	+	3.27with an identified amount of unpaid consumer enforcement public compensation impractical
	94	+	3.28if:
	95	+	3.29 (1) the distribution to the eligible consumer is too small to justify the cost to locate the
	96	+	3.30eligible consumer or make the payment;
	97	+	3.31 (2) the eligible consumer does not redeem a payment within a reasonable time; or
	98	+	3.32 (3) other circumstances make distributing the unpaid consumer enforcement compensation
	99	+	3.33to the eligible consumer unreasonable.
102	100		3Sec. 2.
103		-	S0447-~~4 4th~~ EngrossmentSF447 REVISOR RSI 4.1 (1) the ~~distribution~~ to ~~the eligible consumer is too small to justify the cost to locate the~~
104		-	4.~~2eligible~~ consumer or ~~make the payment;~~
105		-	4.~~3 (2)~~ the ~~eligible consumer does not redeem a payment within a reasonable time; or~~
106		-	4.~~4 (3)~~ other ~~circumstances make distributing the unpaid consumer enforcement compensation~~
107		-	4.~~5to the eligible~~ consumer ~~unreasonable.~~
108		-	4.~~6 (b) The attorney general may deem an attempt to determine an identified amount of~~
109		-	4.~~7unpaid consumer enforcement public compensation for some or all~~ eligible consumers
110		-	4.~~8relating~~ to ~~a consumer enforcement action is unreasonable when~~ the ~~judgment, assurance~~
111		-	4.~~9of discontinuance,~~ ~~consent order,~~ ~~settlement, stipulation,~~ ~~or other order or settlement does~~
112		-	4.~~10not~~ identify ~~specific amounts~~ of consumer enforcement public ~~compensation for specific~~
113		-	4.~~11consumers if:~~
114		-	4.12 (1) ~~the number of likely eligible consumers and the~~ amount of ~~likely~~ unpaid ~~consumer~~
115		-	4.~~13enforcement~~ public compensation ~~is too small to justify the cost to determine an identified~~
116		-	4.~~14amount of unpaid consumer enforcement public compensation;~~
117		-	4.~~15 (2) the information needed to identify an amount of~~ unpaid consumer enforcement public
118		-	4.~~16compensation is unavailable or too costly to obtain; or~~
119		-	4.17 (3) ~~other circumstances make an attempt to determine~~ an identified amount of unpaid
120		-	4.~~18consumer~~ enforcement ~~public compensation unreasonable.~~
121		-	4.~~19 Subd. 7.Concluded distributions.~~The ~~attorney general must stop providing distributions~~
122		-	4.~~20of unpaid consumer enforcement public compensation relating to a consumer enforcement~~
123		-	4.~~21action when the attorney general determines:~~
124		-	4.~~22 (1) all eligible consumers with an identified amount of unpaid~~ consumer enforcement
125		-	4.~~23public~~ compensation ~~for the consumer enforcement action have received a distribution~~
126		-	4.~~24through~~ the ~~account or~~ the ~~distribution has been deemed impractical under subdivision 6,~~
127		-	4.~~25paragraph (a); and~~
128		-	4.26 (2) ~~no additional eligible consumers with unpaid~~ consumer enforcement ~~public~~
129		-	4.~~27compensation~~ for ~~the~~ consumer enforcement action ~~exist or the attorney general has deemed~~
130		-	4.~~28identifying unpaid compensation under subdivision 6, paragraph~~ (b)~~, unreasonable.~~
131		-	4.~~29 Subd. 8.Annual report.(a)~~ The ~~attorney general must publish on the attorney general's~~
132		-	4.~~30website an annual report identifying~~ the ~~following information~~ for ~~the annual period:~~
133		-	4.~~31 (1) the consumer enforcement actions resulting in payment of money to~~ the account and
134		-	4.~~32the amount of money paid to the account~~ for each consumer enforcement action;
	101	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 4.1 (b) The attorney general may deem an attempt to determine an identified amount of
	102	+	4.2unpaid consumer enforcement public compensation for some or all eligible consumers
	103	+	4.3relating to a consumer enforcement action is unreasonable when the judgment, assurance
	104	+	4.4of discontinuance, consent order, settlement, stipulation, or other order or settlement does
	105	+	4.5not identify specific amounts of consumer enforcement public compensation for specific
	106	+	4.6consumers if:
	107	+	4.7 (1) the number of likely eligible consumers and the amount of likely unpaid consumer
	108	+	4.8enforcement public compensation is too small to justify the cost to determine an identified
	109	+	4.9amount of unpaid consumer enforcement public compensation;
	110	+	4.10 (2) the information needed to identify an amount of unpaid consumer enforcement public
	111	+	4.11compensation is unavailable or too costly to obtain; or
	112	+	4.12 (3) other circumstances make an attempt to determine an identified amount of unpaid
	113	+	4.13consumer enforcement public compensation unreasonable.
	114	+	4.14 Subd. 7.Concluded distributions.The attorney general must stop providing distributions
	115	+	4.15of unpaid consumer enforcement public compensation relating to a consumer enforcement
	116	+	4.16action when the attorney general determines:
	117	+	4.17 (1) all eligible consumers with an identified amount of unpaid consumer enforcement
	118	+	4.18public compensation for the consumer enforcement action have received a distribution
	119	+	4.19through the account or the distribution has been deemed impractical under subdivision 6,
	120	+	4.20paragraph (a); and
	121	+	4.21 (2) no additional eligible consumers with unpaid consumer enforcement public
	122	+	4.22compensation for the consumer enforcement action exist or the attorney general has deemed
	123	+	4.23identifying unpaid compensation under subdivision 6, paragraph (b), unreasonable.
	124	+	4.24 Subd. 8.Annual report.(a) The attorney general must publish on the attorney general's
	125	+	4.25website an annual report identifying the following information for the annual period:
	126	+	4.26 (1) the consumer enforcement actions resulting in payment of money to the account and
	127	+	4.27the amount of money paid to the account for each consumer enforcement action;
	128	+	4.28 (2) the consumer enforcement actions for which distributions were made to eligible
	129	+	4.29consumers and the amount of money distributed for each consumer enforcement action;
	130	+	4.30 (3) the consumer enforcement actions for which there are eligible consumers awaiting
	131	+	4.31distribution from the account and the amount of money for which those eligible consumers
	132	+	4.32are awaiting distribution for each consumer enforcement action;
135	133		4Sec. 2.
136		-	S0447-4 4th EngrossmentSF447 REVISOR RSI 5.1 (2) the consumer enforcement actions for which distributions were made to eligible
137		-	5.2consumers, the amount of money distributed for each consumer enforcement action, and
138		-	5.3the amount of money distributed to each eligible consumer;
139		-	5.4 (3) the consumer enforcement actions for which there are eligible consumers awaiting
140		-	5.5distribution from the account and the amount of money for which those eligible consumers
141		-	5.6are awaiting distribution for each consumer enforcement action;
142		-	5.7 (4) the consumer enforcement actions for which the attorney general has concluded
143		-	5.8account distribution;
144		-	5.9 (5) the consumer enforcement actions in which the attorney general determined that
145		-	5.10some or all eligible compensation was impractical to distribute or unreasonable to determine
146		-	5.11under subdivision 6;
147		-	5.12 (6) a summary of the unlawful acts and practices that directly impacted an eligible
148		-	5.13consumer and a description of the public interests vindicated by a distribution from the
149		-	5.14account;
150		-	5.15 (7) all administrative policies that apply to the account, including any policies that
151		-	5.16determine priorities for distribution of money;
152		-	5.17 (8) the number of employees working on the account; and
153		-	5.18 (9) the cost incurred to administer the account.
154		-	5.19 (b) The attorney general must provide the report to the chairs and ranking minority
155		-	5.20members of the legislative committees with jurisdiction over state government, commerce,
156		-	5.21and judiciary.
157		-	5.22 Subd. 9.Account administrator.(a) The attorney general may appoint an administrator
158		-	5.23for any of the following purposes:
159		-	5.24 (1) determining identified amounts of unpaid consumer enforcement public compensation
160		-	5.25for eligible consumers;
161		-	5.26 (2) collecting money that can be deposited, in whole or in part, to the account;
162		-	5.27 (3) distributing money to eligible consumers; or
163		-	5.28 (4) any other costs to administer the account.
164		-	5.29 (b) The attorney general may appoint more than one account administrator.
165		-	5.30 Subd. 10.No private right of action.A person does not have a private right of action
166		-	5.31with respect to a payment from the account or administration of the account.
167		-	5Sec. 2.
168		-	S0447-4 4th EngrossmentSF447 REVISOR RSI 6.1 Subd. 11.Collection efforts unaffected.The distribution of money from the account
169		-	6.2to eligible consumers does not affect the attorney general's authority to collect, satisfy, or
170		-	6.3enforce final orders against persons ordered to pay consumer enforcement public
171		-	6.4compensation to eligible consumers in the final order. To the extent the attorney general
172		-	6.5collects consumer enforcement public compensation pursuant to a final order after money
173		-	6.6has been distributed from the account to eligible consumers that are the subject of that final
174		-	6.7order, the collected consumer enforcement public compensation must be deposited in the
175		-	6.8account in an amount equal to the prior account distribution.
176		-	6.9 Subd. 12.Data classification.Notwithstanding section 13.65, informal or formal policies
177		-	6.10relating to the account are public data on individuals, as defined in section 13.02, subdivision
178		-	6.1115, and public data not on individuals, as defined by section 13.02, subdivision 14.
179		-	6.12 Sec. 3. Minnesota Statutes 2024, section 16A.151, subdivision 2, is amended to read:
180		-	6.13 Subd. 2.Exceptions.(a) If a state official litigates or settles a matter on behalf of specific
181		-	6.14injured persons or entities, this section does not prohibit distribution of money to the specific
182		-	6.15injured persons or entities on whose behalf the litigation or settlement efforts were initiated.
183		-	6.16If money recovered on behalf of injured persons or entities cannot reasonably be distributed
184		-	6.17to those persons or entities because they cannot readily be located or identified or because
185		-	6.18the cost of distributing the money would outweigh the benefit to the persons or entities, the
186		-	6.19money must be paid into the general fund.
187		-	6.20 (b) Money recovered on behalf of a fund in the state treasury other than the general fund
188		-	6.21may be deposited in that fund.
189		-	6.22 (c) This section does not prohibit a state official from distributing money to a person or
190		-	6.23entity other than the state in litigation or potential litigation in which the state is a defendant
191		-	6.24or potential defendant.
192		-	6.25 (d) State agencies may accept funds as directed by a federal court for any restitution or
193		-	6.26monetary penalty under United States Code, title 18, section 3663(a)(3), or United States
194		-	6.27Code, title 18, section 3663A(a)(3). Funds received must be deposited in a special revenue
195		-	6.28account and are appropriated to the commissioner of the agency for the purpose as directed
196		-	6.29by the federal court.
197		-	6.30 (e) Tobacco settlement revenues as defined in section 16A.98, subdivision 1, paragraph
198		-	6.31(t), may be deposited as provided in section 16A.98, subdivision 12.
199		-	6.32 (f) (e) Any money received by the state resulting from a settlement agreement or an
200		-	6.33assurance of discontinuance entered into by the attorney general of the state, or a court order
	134	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 5.1 (4) the consumer enforcement actions for which the attorney general has concluded
	135	+	5.2account distribution;
	136	+	5.3 (5) the consumer enforcement actions in which the attorney general determined that
	137	+	5.4some or all eligible compensation was impractical to distribute or unreasonable to determine
	138	+	5.5under subdivision 6; and
	139	+	5.6 (6) the cost incurred to administer the account.
	140	+	5.7 (b) The attorney general must provide the report to the chairs and ranking minority
	141	+	5.8members of the legislative committees with jurisdiction over the consumer protection
	142	+	5.9restitution account.
	143	+	5.10 Subd. 9.Account administrator.(a) The attorney general may appoint an administrator
	144	+	5.11for any of the following purposes:
	145	+	5.12 (1) determining identified amounts of unpaid consumer enforcement public compensation
	146	+	5.13for eligible consumers;
	147	+	5.14 (2) collecting money that can be deposited, in whole or in part, to the account;
	148	+	5.15 (3) distributing money to eligible consumers; or
	149	+	5.16 (4) any other costs to administer the account.
	150	+	5.17 (b) The attorney general may appoint more than one account administrator.
	151	+	5.18 Subd. 10.No private right of action.A person does not have a private right of action
	152	+	5.19with respect to a payment from the account or administration of the account.
	153	+	5.20 Subd. 11.Collection efforts unaffected.The distribution of money from the account
	154	+	5.21to eligible consumers does not affect the attorney general's authority to collect, satisfy, or
	155	+	5.22enforce final orders against persons ordered to pay consumer enforcement public
	156	+	5.23compensation to eligible consumers in the final order. To the extent the attorney general
	157	+	5.24collects consumer enforcement public compensation pursuant to a final order after money
	158	+	5.25has been distributed from the account to eligible consumers that are the subject of that final
	159	+	5.26order, the collected consumer enforcement public compensation must be deposited in the
	160	+	5.27account in an amount equal to the prior account distribution.
	161	+	5.28 Sec. 3. Minnesota Statutes 2024, section 16A.151, subdivision 2, is amended to read:
	162	+	5.29 Subd. 2.Exceptions.(a) If a state official litigates or settles a matter on behalf of specific
	163	+	5.30injured persons or entities, this section does not prohibit distribution of money to the specific
	164	+	5.31injured persons or entities on whose behalf the litigation or settlement efforts were initiated.
	165	+	5Sec. 3.
	166	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 6.1If money recovered on behalf of injured persons or entities cannot reasonably be distributed
	167	+	6.2to those persons or entities because they cannot readily be located or identified or because
	168	+	6.3the cost of distributing the money would outweigh the benefit to the persons or entities, the
	169	+	6.4money must be paid into the general fund.
	170	+	6.5 (b) Money recovered on behalf of a fund in the state treasury other than the general fund
	171	+	6.6may be deposited in that fund.
	172	+	6.7 (c) This section does not prohibit a state official from distributing money to a person or
	173	+	6.8entity other than the state in litigation or potential litigation in which the state is a defendant
	174	+	6.9or potential defendant.
	175	+	6.10 (d) State agencies may accept funds as directed by a federal court for any restitution or
	176	+	6.11monetary penalty under United States Code, title 18, section 3663(a)(3), or United States
	177	+	6.12Code, title 18, section 3663A(a)(3). Funds received must be deposited in a special revenue
	178	+	6.13account and are appropriated to the commissioner of the agency for the purpose as directed
	179	+	6.14by the federal court.
	180	+	6.15 (e) Tobacco settlement revenues as defined in section 16A.98, subdivision 1, paragraph
	181	+	6.16(t), may be deposited as provided in section 16A.98, subdivision 12.
	182	+	6.17 (f) (e) Any money received by the state resulting from a settlement agreement or an
	183	+	6.18assurance of discontinuance entered into by the attorney general of the state, or a court order
	184	+	6.19in litigation brought by the attorney general of the state, on behalf of the state or a state
	185	+	6.20agency, related to alleged violations of consumer fraud laws in the marketing, sale, or
	186	+	6.21distribution of opioids in this state or other alleged illegal actions that contributed to the
	187	+	6.22excessive use of opioids, must be deposited in the settlement account established in the
	188	+	6.23opiate epidemic response fund under section 256.043, subdivision 1. This paragraph does
	189	+	6.24not apply to attorney fees and costs awarded to the state or the Attorney General's Office,
	190	+	6.25to contract attorneys hired by the state or Attorney General's Office, or to other state agency
	191	+	6.26attorneys.
	192	+	6.27 (g) (f) Notwithstanding paragraph (f) (e), if money is received from a settlement
	193	+	6.28agreement or an assurance of discontinuance entered into by the attorney general of the
	194	+	6.29state or a court order in litigation brought by the attorney general of the state on behalf of
	195	+	6.30the state or a state agency against a consulting firm working for an opioid manufacturer or
	196	+	6.31opioid wholesale drug distributor, the commissioner shall deposit any money received into
	197	+	6.32the settlement account established within the opiate epidemic response fund under section
	198	+	6.33256.042, subdivision 1. Notwithstanding section 256.043, subdivision 3a, paragraph (a),
	199	+	6.34any amount deposited into the settlement account in accordance with this paragraph shall
201	200		6Sec. 3.
202		-	S0447-4 4th EngrossmentSF447 REVISOR RSI 7.1in litigation brought by the attorney general of the state, on behalf of the state or a state
203		-	7.2agency, related to alleged violations of consumer fraud laws in the marketing, sale, or
204		-	7.3distribution of opioids in this state or other alleged illegal actions that contributed to the
205		-	7.4excessive use of opioids, must be deposited in the settlement account established in the
206		-	7.5opiate epidemic response fund under section 256.043, subdivision 1. This paragraph does
207		-	7.6not apply to attorney fees and costs awarded to the state or the Attorney General's Office,
208		-	7.7to contract attorneys hired by the state or Attorney General's Office, or to other state agency
209		-	7.8attorneys.
210		-	7.9 (g) (f) Notwithstanding paragraph (f) (e), if money is received from a settlement
211		-	7.10agreement or an assurance of discontinuance entered into by the attorney general of the
212		-	7.11state or a court order in litigation brought by the attorney general of the state on behalf of
213		-	7.12the state or a state agency against a consulting firm working for an opioid manufacturer or
214		-	7.13opioid wholesale drug distributor, the commissioner shall deposit any money received into
215		-	7.14the settlement account established within the opiate epidemic response fund under section
216		-	7.15256.042, subdivision 1. Notwithstanding section 256.043, subdivision 3a, paragraph (a),
217		-	7.16any amount deposited into the settlement account in accordance with this paragraph shall
218		-	7.17be appropriated to the commissioner of human services to award as grants as specified by
219		-	7.18the opiate epidemic response advisory council in accordance with section 256.043,
220		-	7.19subdivision 3a, paragraph (e).
221		-	7.20 (h) (g) If the Minnesota Pollution Control Agency, through litigation or settlement of a
222		-	7.21matter that could have resulted in litigation, recovers $250,000 or more in a civil penalty
223		-	7.22from violations of a permit issued by the agency, then 40 percent of the money recovered
224		-	7.23must be distributed to the community health board, as defined in section 145A.02, where
225		-	7.24the permitted facility is located. Within 30 days of a final court order in the litigation or the
226		-	7.25effective date of the settlement agreement, the commissioner of the Minnesota Pollution
227		-	7.26Control Agency must notify the applicable community health board that the litigation has
228		-	7.27concluded or a settlement has been reached. The commissioner must collect the money and
229		-	7.28transfer it to the applicable community health board. The community health board must
230		-	7.29meet directly with the residents potentially affected by the pollution that was the subject of
231		-	7.30the litigation or settlement to identify the residents' concerns and incorporate those concerns
232		-	7.31into a project that benefits the residents. The project must be implemented by the community
233		-	7.32health board and funded as directed in this paragraph. The community health board may
234		-	7.33recover the reasonable costs it incurs to administer this paragraph from the funds transferred
235		-	7.34to the board under this paragraph. This paragraph directs the transfer and use of money only
236		-	7.35and does not create a right of intervention in the litigation or settlement of the enforcement
	201	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 7.1be appropriated to the commissioner of human services to award as grants as specified by
	202	+	7.2the opiate epidemic response advisory council in accordance with section 256.043,
	203	+	7.3subdivision 3a, paragraph (e).
	204	+	7.4 (h) (g) If the Minnesota Pollution Control Agency, through litigation or settlement of a
	205	+	7.5matter that could have resulted in litigation, recovers $250,000 or more in a civil penalty
	206	+	7.6from violations of a permit issued by the agency, then 40 percent of the money recovered
	207	+	7.7must be distributed to the community health board, as defined in section 145A.02, where
	208	+	7.8the permitted facility is located. Within 30 days of a final court order in the litigation or the
	209	+	7.9effective date of the settlement agreement, the commissioner of the Minnesota Pollution
	210	+	7.10Control Agency must notify the applicable community health board that the litigation has
	211	+	7.11concluded or a settlement has been reached. The commissioner must collect the money and
	212	+	7.12transfer it to the applicable community health board. The community health board must
	213	+	7.13meet directly with the residents potentially affected by the pollution that was the subject of
	214	+	7.14the litigation or settlement to identify the residents' concerns and incorporate those concerns
	215	+	7.15into a project that benefits the residents. The project must be implemented by the community
	216	+	7.16health board and funded as directed in this paragraph. The community health board may
	217	+	7.17recover the reasonable costs it incurs to administer this paragraph from the funds transferred
	218	+	7.18to the board under this paragraph. This paragraph directs the transfer and use of money only
	219	+	7.19and does not create a right of intervention in the litigation or settlement of the enforcement
	220	+	7.20action for any person or entity. A supplemental environmental project funded as part of a
	221	+	7.21settlement agreement is not part of a civil penalty and must not be included in calculating
	222	+	7.22the amount of funds required to be distributed to a community health board under this
	223	+	7.23paragraph. For the purposes of this paragraph, "supplemental environmental project" means
	224	+	7.24a project that benefits the environment or public health that a regulated facility agrees to
	225	+	7.25undertake, though not legally required to do so, as part of a settlement with respect to an
	226	+	7.26enforcement action taken by the Minnesota Pollution Control Agency to resolve
	227	+	7.27noncompliance.
	228	+	7.28 (i) (h) A community health board receiving a transfer of funds under paragraph (h) (g)
	229	+	7.29must, no later than one year after receiving the funds, submit a report to the chairs and
	230	+	7.30ranking minority members of the senate and house of representatives committees with
	231	+	7.31primary jurisdiction over environment policy and natural resources that describes:
	232	+	7.32 (1) the process of community engagement employed to solicit community input regarding
	233	+	7.33the use of the funds;
	234	+	7.34 (2) the purposes and activities for which the funds were used; and
237	235		7Sec. 3.
238		-	S0447-4 4th EngrossmentSF447 REVISOR RSI 8.1action for any person or entity. A supplemental environmental project funded as part of a
239		-	8.2settlement agreement is not part of a civil penalty and must not be included in calculating
240		-	8.3the amount of funds required to be distributed to a community health board under this
241		-	8.4paragraph. For the purposes of this paragraph, "supplemental environmental project" means
242		-	8.5a project that benefits the environment or public health that a regulated facility agrees to
243		-	8.6undertake, though not legally required to do so, as part of a settlement with respect to an
244		-	8.7enforcement action taken by the Minnesota Pollution Control Agency to resolve
245		-	8.8noncompliance.
246		-	8.9 (i) (h) A community health board receiving a transfer of funds under paragraph (h) (g)
247		-	8.10must, no later than one year after receiving the funds, submit a report to the chairs and
248		-	8.11ranking minority members of the senate and house of representatives committees with
249		-	8.12primary jurisdiction over environment policy and natural resources that describes:
250		-	8.13 (1) the process of community engagement employed to solicit community input regarding
251		-	8.14the use of the funds;
252		-	8.15 (2) the purposes and activities for which the funds were used; and
253		-	8.16 (3) an account of expenditures.
254		-	8.17 (j) (i) The commissioner of the Minnesota Pollution Control Agency must submit a
255		-	8.18report in September each even-numbered year, beginning in 2024, to the chairs and ranking
256		-	8.19minority members of the senate and house of representatives committees with primary
257		-	8.20jurisdiction over environmental policy and natural resources that includes:
258		-	8.21 (1) the amount transferred under paragraph (h) (g) to each community health board
259		-	8.22during the previous two years; and
260		-	8.23 (2) any agency services provided to the community health board or community residents
261		-	8.24during the duration of the project funded by the transfer, and the cost of those agency
262		-	8.25services, for consideration by the legislature for future appropriations that address
263		-	8.26reimbursement of the amount of the transfers and the cost of services provided by the agency.
264		-	8.27 (k) (j) Any money received by the state resulting from a settlement agreement or an
265		-	8.28assurance of discontinuance entered into by the attorney general of the state, or a court order
266		-	8.29in litigation brought by the attorney general of the state on behalf of the state or a state
267		-	8.30agency related to alleged violations of consumer fraud laws in the marketing, sale, or
268		-	8.31distribution of electronic nicotine delivery systems in this state or other alleged illegal
269		-	8.32actions that contributed to the exacerbation of youth nicotine use, must be deposited in the
270		-	8.33tobacco use prevention account under section 144.398. This paragraph does not apply to:
271		-	8Sec. 3.
272		-	S0447-4 4th EngrossmentSF447 REVISOR RSI 9.1(1) attorney fees and costs awarded or paid to the state or the Attorney General's Office; (2)
273		-	9.2contract attorneys hired by the state or Attorney General's Office; or (3) other state agency
274		-	9.3attorneys. The commissioner of management and budget must transfer to the tobacco use
275		-	9.4prevention account, any money subject to this paragraph that is received by the state before
276		-	9.5May 24, 2023.
277		-	9.6 (k) This section does not apply to money deposited in the consumer protection restitution
278		-	9.7account under section 8.37.
279		-	9.8 Sec. 4. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
280		-	9.9to read:
281		-	9.10 Subd. 36.Consumer enforcement public compensation payments.The amount of
282		-	9.11consumer enforcement public compensation received as a distribution to an eligible consumer
283		-	9.12under section 8.37, subdivision 5, is a subtraction.
284		-	9.13 EFFECTIVE DATE.This section is effective for taxable years beginning after December
285		-	9.1431, 2024.
286		-	9.15 Sec. 5. Minnesota Statutes 2024, section 290.0693, subdivision 1, is amended to read:
287		-	9.16 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
288		-	9.17the meanings given.
289		-	9.18 (b) "Combined exemption amount" means the sum of:
290		-	9.19 (1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
291		-	9.20 (2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
292		-	9.21 (3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
293		-	9.22 (4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
294		-	9.23 (5) for the taxpayer's fifth dependent, the exemption amount; and
295		-	9.24 (6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
296		-	9.25before the close of the taxable year, the exemption amount.
297		-	9.26 (b) (c) "Dependent" means any individual who is considered a dependent under sections
298		-	9.27151 and 152 of the Internal Revenue Code.
299		-	9.28 (c) (d) "Disability" has the meaning given in section 290A.03, subdivision 10.
300		-	9.29 (d) (e) "Exemption amount" means the exemption amount under section 290.0121,
301		-	9.30subdivision 1, paragraph (b).
	236	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 8.1 (3) an account of expenditures.
	237	+	8.2 (j) (i) The commissioner of the Minnesota Pollution Control Agency must submit a
	238	+	8.3report in September each even-numbered year, beginning in 2024, to the chairs and ranking
	239	+	8.4minority members of the senate and house of representatives committees with primary
	240	+	8.5jurisdiction over environmental policy and natural resources that includes:
	241	+	8.6 (1) the amount transferred under paragraph (h) (g) to each community health board
	242	+	8.7during the previous two years; and
	243	+	8.8 (2) any agency services provided to the community health board or community residents
	244	+	8.9during the duration of the project funded by the transfer, and the cost of those agency
	245	+	8.10services, for consideration by the legislature for future appropriations that address
	246	+	8.11reimbursement of the amount of the transfers and the cost of services provided by the agency.
	247	+	8.12 (k) (j) Any money received by the state resulting from a settlement agreement or an
	248	+	8.13assurance of discontinuance entered into by the attorney general of the state, or a court order
	249	+	8.14in litigation brought by the attorney general of the state on behalf of the state or a state
	250	+	8.15agency related to alleged violations of consumer fraud laws in the marketing, sale, or
	251	+	8.16distribution of electronic nicotine delivery systems in this state or other alleged illegal
	252	+	8.17actions that contributed to the exacerbation of youth nicotine use, must be deposited in the
	253	+	8.18tobacco use prevention account under section 144.398. This paragraph does not apply to:
	254	+	8.19(1) attorney fees and costs awarded or paid to the state or the Attorney General's Office; (2)
	255	+	8.20contract attorneys hired by the state or Attorney General's Office; or (3) other state agency
	256	+	8.21attorneys. The commissioner of management and budget must transfer to the tobacco use
	257	+	8.22prevention account, any money subject to this paragraph that is received by the state before
	258	+	8.23May 24, 2023.
	259	+	8.24 (k) This section does not apply to money deposited in the consumer protection restitution
	260	+	8.25account under section 8.37.
	261	+	8.26 Sec. 4. Minnesota Statutes 2024, section 290.0132, is amended by adding a subdivision
	262	+	8.27to read:
	263	+	8.28 Subd. 36.Consumer enforcement public compensation payments.The amount of
	264	+	8.29consumer enforcement public compensation received as a distribution to an eligible consumer
	265	+	8.30under section 8.37, subdivision 5, is a subtraction.
	266	+	8.31 EFFECTIVE DATE.This section is effective for taxable years beginning after December
	267	+	8.3231, 2024.
	268	+	8Sec. 4.
	269	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 9.1 Sec. 5. Minnesota Statutes 2024, section 290.0693, subdivision 1, is amended to read:
	270	+	9.2 Subdivision 1.Definitions.(a) For the purposes of this section, the following terms have
	271	+	9.3the meanings given.
	272	+	9.4 (b) "Combined exemption amount" means the sum of:
	273	+	9.5 (1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4;
	274	+	9.6 (2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3;
	275	+	9.7 (3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
	276	+	9.8 (4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
	277	+	9.9 (5) for the taxpayer's fifth dependent, the exemption amount; and
	278	+	9.10 (6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
	279	+	9.11before the close of the taxable year, the exemption amount.
	280	+	9.12 (b) (c) "Dependent" means any individual who is considered a dependent under sections
	281	+	9.13151 and 152 of the Internal Revenue Code.
	282	+	9.14 (c) (d) "Disability" has the meaning given in section 290A.03, subdivision 10.
	283	+	9.15 (d) (e) "Exemption amount" means the exemption amount under section 290.0121,
	284	+	9.16subdivision 1, paragraph (b).
	285	+	9.17 (e) (f) "Gross rent" means rent paid for the right of occupancy, at arm's length, of a
	286	+	9.18homestead, exclusive of charges for any medical services furnished by the landlord as a
	287	+	9.19part of the rental agreement, whether expressly set out in the rental agreement or not. The
	288	+	9.20gross rent of a resident of a nursing home or intermediate care facility is $600 per month.
	289	+	9.21The gross rent of a resident of an adult foster care home is $930 per month. The commissioner
	290	+	9.22shall annually adjust the amounts in this paragraph as provided in section 270C.22. The
	291	+	9.23statutory year is 2023. If the landlord and tenant have not dealt with each other at arm's
	292	+	9.24length and the commissioner determines that the gross rent charged was excessive, the
	293	+	9.25commissioner may adjust the gross rent to a reasonable amount for purposes of this section.
	294	+	9.26 (f) (g) "Homestead" has the meaning given in section 290A.03, subdivision 6.
	295	+	9.27 (g) (h) "Household" has the meaning given in section 290A.03, subdivision 4.
	296	+	9.28 (h) (i) "Household income" means all income received by all persons of a household in
	297	+	9.29a taxable year while members of the household, other than income of a dependent.
	298	+	9.30 (i) (j) "Income" means adjusted gross income, minus:
302	299		9Sec. 5.
303		-	S0447-~~4 4th~~ EngrossmentSF447 REVISOR RSI 10.1 (e) ~~(f) "Gross rent" means rent paid~~ for the ~~right of occupancy, at arm~~'s ~~length~~, ~~of a~~
304		-	10.~~2homestead, exclusive of charges for any medical services furnished by the landlord as a~~
305		-	10.~~3part of~~ the ~~rental agreement~~, ~~whether expressly set out in~~ the ~~rental agreement or not~~. The
306		-	10.~~4gross rent~~ of ~~a resident of a nursing home or intermediate care facility is $600 per month~~.
307		-	10.~~5The gross rent of a resident of an adult foster care home is $930 per month~~. ~~The commissioner~~
308		-	10.~~6shall annually adjust~~ the ~~amounts in this paragraph as provided in section 270C.22.~~ The
309		-	10.~~7statutory year is 2023. If~~ the ~~landlord and tenant have not dealt with each other at arm~~'s
310		-	10.~~8length and~~ the ~~commissioner determines that~~ the ~~gross rent charged was excessive, the~~
311		-	10.~~9commissioner may adjust~~ the ~~gross rent to~~ a ~~reasonable amount for purposes~~ of ~~this section.~~
312		-	10.~~10 (f) (g) "Homestead" has~~ the ~~meaning given in section 290A.03~~, ~~subdivision 6~~.
313		-	10.11 (g) (h) "~~Household~~" ~~has~~ the ~~meaning given in section 290A.03, subdivision 4.~~
314		-	10.~~12 (h) (i) "Household~~ ~~income" means all income received by all persons~~ of ~~a household~~ in
315		-	10.~~13a taxable~~ year ~~while members~~ of the ~~household, other than income of a dependent.~~
316		-	10.~~14 (i) (j) "Income" means adjusted gross income~~, ~~minus:~~
317		-	10.~~15 (1)~~ for ~~the taxpayer's first dependent,~~ the ~~exemption amount multiplied by 1.4 the~~
318		-	10.~~16taxpayer~~'s ~~combined exemption amount; and~~
319		-	10.~~17 (2) for~~ the ~~taxpayer's second dependent,~~ the ~~exemption amount multiplied by 1.3; the~~
320		-	10.~~18amount~~ of ~~consumer enforcement public compensation subtracted under section 290.0132,~~
321		-	10.~~19subdivision 36~~.
322		-	10.20 ~~(3)~~ for ~~the taxpayer's third dependent,~~ ~~the exemption amount multiplied by 1.2;~~
323		-	10.~~21 (4) for the taxpayer's fourth dependent~~, ~~the exemption amount multiplied by 1~~.1;
324		-	10.~~22 (5) for the taxpayer's fifth dependent~~, ~~the exemption amount;~~ ~~and~~
325		-	10.23 (6) if the ~~taxpayer or taxpayer's spouse had a disability or attained~~ the ~~age of 65 on or~~
326		-	10.~~24before~~ the ~~close of the taxable year, the exemption amount.~~
327		-	10.25 (j) ~~(k) "Rent constituting property taxes" means 17 percent~~ of the ~~gross rent actually~~
328		-	10.~~26paid in cash,~~ ~~or its equivalent, or the portion of rent paid in lieu of property taxes, in any~~
329		-	10.~~27taxable year by~~ a ~~claimant for the right~~ of ~~occupancy of the claimant's Minnesota homestead~~
330		-	10.~~28in~~ the ~~taxable year,~~ and ~~which rent constitutes~~ the ~~basis, in the succeeding taxable year~~ of
331		-	10.~~29a claim for a credit~~ under ~~this~~ section by the ~~claimant. If an individual occupies a homestead~~
332		-	10.~~30with another person or persons not related to the individual as the individual's spouse or as~~
333		-	10.~~31dependents, and~~ the ~~other person or persons are residing at the homestead under~~ a ~~rental or~~
334		-	10~~Sec. 5.~~
335		-	~~S0447-4 4th EngrossmentSF447 REVISOR RSI~~ 11.~~1lease agreement with the individual, the amount of rent constituting property tax for the~~
336		-	11.~~2individual equals that portion not covered by the rental agreement.~~
337		-	11.~~3 EFFECTIVE DATE.This section is effective for taxable years beginning after December~~
338		-	11.~~431~~, ~~2024.~~
339		-	11.~~5 Sec.~~ ~~6. Minnesota Statutes 2024~~, ~~section 290A.03, subdivision 3,~~ ~~is amended to read:~~
340		-	11.~~6 Subd. 3.Income.(a) "Income" means~~ the ~~sum of the following:~~
341		-	11.~~7 (1) federal adjusted gross~~ income ~~as defined~~ in the ~~Internal Revenue Code~~; ~~and~~
342		-	11.8 (2) the ~~sum of the following amounts to the extent not included in clause (1):~~
343		-	11.~~9 (i) all nontaxable income~~;
344		-	11.10 (ii) ~~the amount of a passive activity loss that is not disallowed as a result of section 469,~~
345		-	11.~~11paragraph~~ (i) ~~or (m) of the Internal Revenue Code and the amount of passive activity loss~~
346		-	11.~~12carryover allowed under section 469(b)~~ of the ~~Internal Revenue Code;~~
347		-	11.~~13 (iii) an amount equal to the total~~ of ~~any discharge of qualified farm indebtedness of a~~
348		-	11.~~14solvent individual excluded from gross income under section 108(g) of the Internal Revenue~~
349		-	11.~~15Code;~~
350		-	11.~~16 (iv) cash public assistance and relief~~;
351		-	11.17 (v) ~~any pension or annuity (including~~ ~~railroad~~ retirement ~~benefits~~, ~~all payments received~~
352		-	11.~~18under the federal Social Security Act,~~ ~~Supplemental Security Income, and veterans benefits),~~
353		-	11.~~19which was not exclusively funded by the claimant~~ or ~~spouse, or which was funded exclusively~~
354		-	11.~~20by~~ the ~~claimant or spouse and which funding payments were excluded from federal adjusted~~
355		-	11.~~21gross income in~~ the ~~years when~~ the ~~payments were made;~~
356		-	11.~~22 (vi) interest received from the federal or a state government or any instrumentality or~~
357		-	11.~~23political subdivision thereof;~~
358		-	11.~~24 (vii) workers'~~ ~~compensation~~;
359		-	11.25 (~~viii~~) nontaxable ~~strike benefits~~;
360		-	11.26 (ix) the ~~gross amounts of payments received~~ in the ~~nature of disability~~ income ~~or sick~~
361		-	11.~~27pay as a result~~ of ~~accident, sickness,~~ or ~~other disability,~~ ~~whether funded through insurance~~
362		-	11.~~28or otherwise~~;
363		-	11.29 (x) ~~a lump-sum~~ ~~distribution~~ under section ~~402(e)(3)~~ of the Internal Revenue ~~Code of~~
364		-	11.~~301986, as amended through December 31, 1995;~~
	300	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 10.1 (1) for the taxpayer's first dependent, the exemption amount multiplied by 1.4 the
	301	+	10.2taxpayer's combined exemption amount; and
	302	+	10.3 (2) for the taxpayer's second dependent, the exemption amount multiplied by 1.3; the
	303	+	10.4amount of consumer enforcement public compensation subtracted under section 290.0132,
	304	+	10.5subdivision 36.
	305	+	10.6 (3) for the taxpayer's third dependent, the exemption amount multiplied by 1.2;
	306	+	10.7 (4) for the taxpayer's fourth dependent, the exemption amount multiplied by 1.1;
	307	+	10.8 (5) for the taxpayer's fifth dependent, the exemption amount; and
	308	+	10.9 (6) if the taxpayer or taxpayer's spouse had a disability or attained the age of 65 on or
	309	+	10.10before the close of the taxable year, the exemption amount.
	310	+	10.11 (j) (k) "Rent constituting property taxes" means 17 percent of the gross rent actually
	311	+	10.12paid in cash, or its equivalent, or the portion of rent paid in lieu of property taxes, in any
	312	+	10.13taxable year by a claimant for the right of occupancy of the claimant's Minnesota homestead
	313	+	10.14in the taxable year, and which rent constitutes the basis, in the succeeding taxable year of
	314	+	10.15a claim for a credit under this section by the claimant. If an individual occupies a homestead
	315	+	10.16with another person or persons not related to the individual as the individual's spouse or as
	316	+	10.17dependents, and the other person or persons are residing at the homestead under a rental or
	317	+	10.18lease agreement with the individual, the amount of rent constituting property tax for the
	318	+	10.19individual equals that portion not covered by the rental agreement.
	319	+	10.20 EFFECTIVE DATE.This section is effective for taxable years beginning after December
	320	+	10.2131, 2024.
	321	+	10.22Sec. 6. Minnesota Statutes 2024, section 290A.03, subdivision 3, is amended to read:
	322	+	10.23 Subd. 3.Income.(a) "Income" means the sum of the following:
	323	+	10.24 (1) federal adjusted gross income as defined in the Internal Revenue Code; and
	324	+	10.25 (2) the sum of the following amounts to the extent not included in clause (1):
	325	+	10.26 (i) all nontaxable income;
	326	+	10.27 (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
	327	+	10.28paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
	328	+	10.29carryover allowed under section 469(b) of the Internal Revenue Code;
	329	+	10Sec. 6.
	330	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 11.1 (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
	331	+	11.2solvent individual excluded from gross income under section 108(g) of the Internal Revenue
	332	+	11.3Code;
	333	+	11.4 (iv) cash public assistance and relief;
	334	+	11.5 (v) any pension or annuity (including railroad retirement benefits, all payments received
	335	+	11.6under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
	336	+	11.7which was not exclusively funded by the claimant or spouse, or which was funded exclusively
	337	+	11.8by the claimant or spouse and which funding payments were excluded from federal adjusted
	338	+	11.9gross income in the years when the payments were made;
	339	+	11.10 (vi) interest received from the federal or a state government or any instrumentality or
	340	+	11.11political subdivision thereof;
	341	+	11.12 (vii) workers' compensation;
	342	+	11.13 (viii) nontaxable strike benefits;
	343	+	11.14 (ix) the gross amounts of payments received in the nature of disability income or sick
	344	+	11.15pay as a result of accident, sickness, or other disability, whether funded through insurance
	345	+	11.16or otherwise;
	346	+	11.17 (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
	347	+	11.181986, as amended through December 31, 1995;
	348	+	11.19 (xi) contributions made by the claimant to an individual retirement account, including
	349	+	11.20a qualified voluntary employee contribution; simplified employee pension plan;
	350	+	11.21self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
	351	+	11.22the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
	352	+	11.23Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
	353	+	11.24the claimant and spouse;
	354	+	11.25 (xii) to the extent not included in federal adjusted gross income, distributions received
	355	+	11.26by the claimant or spouse from a traditional or Roth style retirement account or plan;
	356	+	11.27 (xiii) nontaxable scholarship or fellowship grants;
	357	+	11.28 (xiv) alimony received to the extent not included in the recipient's income;
	358	+	11.29 (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
	359	+	11.30Code;
	360	+	11.31 (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
	361	+	11.32Code; and
365	362		11Sec. 6.
366		-	S0447-4 4th EngrossmentSF447 REVISOR RSI 12.1 (xi) contributions made by the claimant to an individual retirement account, including
367		-	12.2a qualified voluntary employee contribution; simplified employee pension plan;
368		-	12.3self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
369		-	12.4the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
370		-	12.5Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
371		-	12.6the claimant and spouse;
372		-	12.7 (xii) to the extent not included in federal adjusted gross income, distributions received
373		-	12.8by the claimant or spouse from a traditional or Roth style retirement account or plan;
374		-	12.9 (xiii) nontaxable scholarship or fellowship grants;
375		-	12.10 (xiv) alimony received to the extent not included in the recipient's income;
376		-	12.11 (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
377		-	12.12Code;
378		-	12.13 (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
379		-	12.14Code; and
380		-	12.15 (xvii) the amount deducted for certain expenses of elementary and secondary school
381		-	12.16teachers under section 62(a)(2)(D) of the Internal Revenue Code.
382		-	12.17 In the case of an individual who files an income tax return on a fiscal year basis, the
383		-	12.18term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
384		-	12.19the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
385		-	12.20by the amount of a net operating loss carryback or carryforward or a capital loss carryback
386		-	12.21or carryforward allowed for the year.
387		-	12.22 (b) "Income" does not include:
388		-	12.23 (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
389		-	12.24 (2) amounts of any pension or annuity which was exclusively funded by the claimant
390		-	12.25or spouse and which funding payments were not excluded from federal adjusted gross
391		-	12.26income in the years when the payments were made;
392		-	12.27 (3) to the extent included in federal adjusted gross income, amounts contributed by the
393		-	12.28claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
394		-	12.29the retirement base amount reduced by the amount of contributions excluded from federal
395		-	12.30adjusted gross income, but not less than zero;
396		-	12.31 (4) surplus food or other relief in kind supplied by a governmental agency;
397		-	12.32 (5) relief granted under this chapter;
	363	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 12.1 (xvii) the amount deducted for certain expenses of elementary and secondary school
	364	+	12.2teachers under section 62(a)(2)(D) of the Internal Revenue Code.
	365	+	12.3 In the case of an individual who files an income tax return on a fiscal year basis, the
	366	+	12.4term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
	367	+	12.5the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
	368	+	12.6by the amount of a net operating loss carryback or carryforward or a capital loss carryback
	369	+	12.7or carryforward allowed for the year.
	370	+	12.8 (b) "Income" does not include:
	371	+	12.9 (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
	372	+	12.10 (2) amounts of any pension or annuity which was exclusively funded by the claimant
	373	+	12.11or spouse and which funding payments were not excluded from federal adjusted gross
	374	+	12.12income in the years when the payments were made;
	375	+	12.13 (3) to the extent included in federal adjusted gross income, amounts contributed by the
	376	+	12.14claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
	377	+	12.15the retirement base amount reduced by the amount of contributions excluded from federal
	378	+	12.16adjusted gross income, but not less than zero;
	379	+	12.17 (4) surplus food or other relief in kind supplied by a governmental agency;
	380	+	12.18 (5) relief granted under this chapter;
	381	+	12.19 (6) child support payments received under a temporary or final decree of dissolution or
	382	+	12.20legal separation;
	383	+	12.21 (7) restitution payments received by eligible individuals and excludable interest as
	384	+	12.22defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
	385	+	12.23Public Law 107-16;
	386	+	12.24 (8) alimony paid; or
	387	+	12.25 (9) veterans disability compensation paid under title 38 of the United States Code; or
	388	+	12.26 (10) to the extent included in federal adjusted gross income, the amount of consumer
	389	+	12.27enforcement public compensation received as a distribution to an eligible consumer under
	390	+	12.28section 8.37, subdivision 5.
	391	+	12.29 (c) The sum of the following amounts may be subtracted from income:
	392	+	12.30 (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
	393	+	12.31 (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
398	394		12Sec. 6.
399		-	S0447-4 4th EngrossmentSF447 REVISOR RSI 13.1 (6) child support payments received under a temporary or final decree of dissolution or
400		-	13.2legal separation;
401		-	13.3 (7) restitution payments received by eligible individuals and excludable interest as
402		-	13.4defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
403		-	13.5Public Law 107-16;
404		-	13.6 (8) alimony paid; or
405		-	13.7 (9) veterans disability compensation paid under title 38 of the United States Code; or
406		-	13.8 (10) to the extent included in federal adjusted gross income, the amount of consumer
407		-	13.9enforcement public compensation received as a distribution to an eligible consumer under
408		-	13.10section 8.37, subdivision 5.
409		-	13.11 (c) The sum of the following amounts may be subtracted from income:
410		-	13.12 (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
411		-	13.13 (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
412		-	13.14 (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
413		-	13.15 (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
414		-	13.16 (5) for the claimant's fifth dependent, the exemption amount; and
415		-	13.17 (6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
416		-	13.18before December 31 of the year for which the taxes were levied, the exemption amount.
417		-	13.19 (d) For purposes of this subdivision, the following terms have the meanings given:
418		-	13.20 (1) "exemption amount" means the exemption amount under section 290.0121,
419		-	13.21subdivision 1, paragraph (b), for the taxable year for which the income is reported;
420		-	13.22 (2) "retirement base amount" means the deductible amount for the taxable year for the
421		-	13.23claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
422		-	13.24inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
423		-	13.25to whether the claimant or spouse claimed a deduction; and
424		-	13.26 (3) "traditional or Roth style retirement account or plan" means retirement plans under
425		-	13.27sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
426		-	13.28 EFFECTIVE DATE.This section is effective for claims based on property taxes payable
427		-	13.29in 2026 and following years.
	395	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI 13.1 (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
	396	+	13.2 (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
	397	+	13.3 (5) for the claimant's fifth dependent, the exemption amount; and
	398	+	13.4 (6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
	399	+	13.5before December 31 of the year for which the taxes were levied, the exemption amount.
	400	+	13.6 (d) For purposes of this subdivision, the following terms have the meanings given:
	401	+	13.7 (1) "exemption amount" means the exemption amount under section 290.0121,
	402	+	13.8subdivision 1, paragraph (b), for the taxable year for which the income is reported;
	403	+	13.9 (2) "retirement base amount" means the deductible amount for the taxable year for the
	404	+	13.10claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
	405	+	13.11inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
	406	+	13.12to whether the claimant or spouse claimed a deduction; and
	407	+	13.13 (3) "traditional or Roth style retirement account or plan" means retirement plans under
	408	+	13.14sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
	409	+	13.15 EFFECTIVE DATE.This section is effective for claims based on property taxes payable
	410	+	13.16in 2026 and following years.
428	411		13Sec. 6.
429		-	S0447-~~4 4th~~ EngrossmentSF447 REVISOR RSI
	412	+	S0447-3 3rd EngrossmentSF447 REVISOR RSI