Deposit limit on consumer protection restitution account removed, and distribution limits set

A bill for an act

relating to consumer protection; removing deposit limit on the consumer protection

restitution account; setting distribution limits; amending Minnesota Statutes 2025

Supplement, section 8.37, subdivisions 3, 5.

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

Section 1.

Minnesota Statutes 2025 Supplement, section 8.37, subdivision 3, is amended

to read:

Subd. 3.

Money deposited in the account.

deleted text begin
50
deleted text end
new text begin
Fifty
new text end
percent of all money recovered by

the attorney general in a consumer enforcement action that is payable to the state and not

designated as consumer enforcement public compensation or for another specific purpose
deleted text begin

up to the first $5,000,000 each fiscal year
deleted text end
must be deposited into the account. The remaining

50 percent of money recovered by the attorney general in a consumer enforcement action

that is payable to the state and not designated as consumer enforcement public compensation

or for another specific purpose must be deposited into the general fund. For purposes of

this subdivision, the amount of money recovered in a consumer enforcement action that

must be deposited into the fund is determined at the time when the money otherwise would

have been deposited into the general fund.

Sec. 2.

Minnesota Statutes 2025 Supplement, section 8.37, subdivision 5, is amended to

read:

Subd. 5.

Distributions to eligible consumers.

(a) Money in the account may be

distributed to any eligible consumer with an identified amount of unpaid consumer

enforcement public compensation.
deleted text begin
If the amount of money in the account is insufficient to

pay all distributions to eligible consumers with an identified amount of unpaid consumer

enforcement public compensation, the
deleted text end
Money must be distributed first to consumers eligible

for unpaid consumer enforcement public compensation based on a consumer enforcement

action with a final order of the oldest date.

deleted text begin

(b) If the attorney general projects that there will be insufficient funding to pay all eligible

consumers from the funds available on an ongoing basis, the attorney general may

recommend to the legislature that the legislature prescribe a formula for prorating or capping

payments to eligible consumers so that more eligible consumers will receive payment from

the fund.

deleted text end

new text begin

(b) If money is distributed to an eligible consumer, the distribution is limited to:

new text end

new text begin

(1) the full identified amount of unpaid consumer enforcement public compensation, up

to $50,000; and

new text end

new text begin

(2) 50 percent of the identified amount of unpaid consumer enforcement public

compensation over $50,000, or $50,000, whichever is less.

new text end