This proposed Minnesota bill, H.F. No. 1392, aims to establish a Consumer Protection Restitution Account to manage and distribute money recovered in consumer enforcement actions. Here is a summary of its key provisions:

1. Establishment of the Consumer Protection Restitution Account (Sec. 2, 8.37):

   • The account will be created in the special revenue fund.
   • It will be funded by 50% of money recovered by the Attorney General (AG) in consumer enforcement actions that are payable to the state but not designated for specific compensation purposes— the remaining 50% will go to the general fund.
   • The money in this account shall be used primarily to compensate eligible consumers harmed by unlawful business practices, as determined by final court orders or settlements.

2. Definitions and Administration:

   • Defines key terms such as "consumer enforcement action" (litigation or settlements by the AG concerning consumer protection laws), "consumer enforcement public compensation" (funds for restitution), and "eligible consumer" (a person directly impacted by unlawful acts).
   • The AG may appoint an account administrator to oversee compensation payments and fund management.
   • The AG has the discretion to stop payments when either all eligible consumers are compensated or further identification of recipients is unfeasible.

3. Distribution of Funds:

   • The AG will distribute funds to eligible consumers who have an identified amount of unpaid compensation based on final court orders.
   • If insufficient funds exist, payments will be prioritized based on the oldest final orders.
   • Payments may be deemed "impractical" if:
     • The amount is too small to justify distribution costs.
     • The consumer does not redeem a payment in a reasonable time.
     • The effort to determine eligibility is too burdensome.

4. Annual Reporting Requirements:

   • The AG must publish an annual report on its website detailing:
     • Consumer enforcement actions that contributed to the fund.
     • Amounts collected and distributed.
     • Pending claims and concluded distributions.
     • Costs of account administration.
   • This report must also be submitted to legislative committees overseeing consumer protection.

5. Legal and Financial Adjustments:

   • A new tax subtraction is created for compensation received from the account (Sec. 4, 290.0132), meaning qualifying consumers will not need to report these restitution payments as taxable income.
   • The bill explicitly states that there is no private right of action, meaning individuals cannot sue to claim money from the account.
   • Collection efforts by the AG will continue regardless of account distributions to ensure full enforcement of rulings.

6. Amendments to Existing Statutes:

   • The bill modifies Minnesota Statutes sections 8.31, 16A.151, and 290.0132 to integrate the new account and adjust how undistributed restitution funds are handled.
   • Money from settlements that cannot reasonably be distributed to consumers will no longer default entirely to the general fund but will instead be deposited into the Consumer Protection Restitution Account.

Overall Purpose:

The bill is designed to ensure that consumer restitution funds are properly collected, managed, and distributed to affected individuals while allowing for pragmatic exceptions when direct distribution is impractical. It strengthens consumer protection efforts by formalizing a dedicated fund and process to compensate victims of unfair business practices.