Purpose

This bill changes how money recovered by the attorney general in consumer protection enforcement actions is handled and paid out to consumers who are owed public compensation. It sets rules for how much money goes into the restitution account versus the general fund and how payments to eligible consumers are determined and capped.

Key Provisions

• Money deposited in the restitution account (consumer protection restitution account):

  • 50% of all money recovered by the attorney general in a consumer enforcement action that is payable to the state and not designated for another specific purpose must be deposited into the restitution account, but only up to the first $5,000,000 each fiscal year.
  • The remaining 50% of money recovered and payable to the state (and not designated for another purpose) goes to the general fund.
  • The amount deposited into the restitution account is determined at the time the money would otherwise go to the general fund.

• Distributions to eligible consumers:

  • Money in the restitution account may be distributed to eligible consumers who have an identified amount of unpaid consumer enforcement public compensation.
  • If the account lacks enough money to pay all eligible consumers in full, priority is given to those with unpaid compensation identified in the oldest final order (oldest date).

• Projections and adjustments:

  • If the attorney general projects ongoing insufficient funding to pay all eligible consumers, the attorney general may recommend to the legislature a formula to prorate or cap payments so more eligible consumers can receive some payment.

• Payment limits to individual consumers:

  • A distribution to an eligible consumer is limited to the full identified amount of unpaid public compensation up to $50,000.
  • For amounts over $50,000, the distribution is 50% of the unpaid amount over $50,000, but not to exceed $50,000 for that portion.
  • In effect, the total possible payment to a single eligible consumer is capped (by interpretation of the text) at up to $100,000.

Significant Changes to Existing Law

• New funding split for recovered civil money:

  • Establishes a per-fiscal-year cap of $5,000,000 on deposits to the restitution account from money recovered in consumer enforcement actions, with any excess going to the general fund.

• New distribution priority and flexibility:

  • Creates a system that prioritizes payments to the oldest final orders when funds are limited, and provides a mechanism for prorating or capping payments to broaden who receives some payment.

• New per-recipient payment caps:

  • Introduces explicit caps on how much any single eligible consumer can receive (up to $50,000 in full, plus up to half of the remaining amount up to a further cap, effectively limiting total payments per recipient).

Implementation/Impact Considerations

• The bill directs how enforcement proceeds should be allocated between restitution and the general fund, and it sets rules for distributing funds to individuals who are owed public compensation.
• By prioritizing oldest final orders and allowing prorating, it aims to maximize the number of people who receive some payment when funds are limited.
• The $5 million annual cap and per-recipient payment caps will limit large individual awards and shift focus to broader, but smaller, distributions.

Relevant terms

• attorney general
• consumer enforcement action
• consumer protection restitution account
• Minnesota Statutes 2025 Supplement section 8.37
• subdivision 3
• subdivision 5
• unpaid consumer enforcement public compensation
• eligible consumers
• final order
• oldest date
• general fund
• prorating
• capping payments
• payment cap
• identified amount of unpaid compensation