Plain English Breakdown
The plain English breakdown is still being put together. The official documents below are already here.
SF5044 • 2026
Require undesignated money returned to the state through restitution or recovery be deposited in a taxpayer refund account
Require undesignated money returned to the state through restitution or recovery be deposited in a taxpayer refund account
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-04-09
House
Introduction and first reading
Official Summary Text
Require undesignated money returned to the state through restitution or recovery be deposited in a taxpayer refund account
Current Bill Text
Read the full stored bill text
A bill for an act relating to state government; requiring undesignated money returned to the state through restitution or recovery be deposited in a taxpayer refund account; providing for annual distribution of funds; requiring rulemaking; proposing coding for new law in Minnesota Statutes, chapter 16A. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [16A.274] TAXPAYER REFUND ACCOUNT. new text end new text begin Subdivision 1. new text end new text begin Creation of account. new text end new text begin The taxpayer refund account is established in the special revenue fund. The account consists of money deposited under this section and any interest earned from the account. Money in the account is annually appropriated to the commissioner of management and budget for the purposes described in subdivision 4. new text end new text begin Subd. 2. new text end new text begin Administration; use of funds. new text end new text begin The commissioner of management and budget shall administer the account and maintain records of deposits, sources of funds, and balances. Interest earned from the account must be credited to the account. Money in the account must only be used for issuing taxpayer refunds under this section. Money in the account is nonlapsing and must not be transferred, allotted, or appropriated for any other purpose than that described in this section. new text end new text begin Subd. 3. new text end new text begin Deposit of recovered funds. new text end new text begin (a) For purposes of this section, "recovered funds" means money received by the state or any state agency from: new text end new text begin (1) nondesignated civil judgments or settlements; new text end new text begin (2) fraud recovery actions; new text end new text begin (3) overpayment recovery actions; new text end new text begin (4) nondesignated administrative fines or penalties; new text end new text begin (5) any reimbursement, repayment, or return of money previously disbursed by the state and that is not designated for a specific purpose; and new text end new text begin (6) criminal restitution that is not designated by a court for a specific victim or entity. new text end new text begin (b) Notwithstanding any other provision of law, all recovered funds shall be deposited into the taxpayer fund account. This section does not apply to funds required by federal law to be used for a specific purpose or funds that a court order directs for a specific victim or entity. new text end new text begin (c) Within 60 days of receipt of recovered funds, a state agency must transfer the funds to the commissioner of management and budget to be deposited in the taxpayer refund account in the state treasury. new text end new text begin Subd. 4. new text end new text begin Annual distribution of funds. new text end new text begin (a) At adjournment of each annual legislative session sine die, the commissioner shall determine the balance of the taxpayer refund account. If the account is greater than $300,000,000, refunds must be disbursed. If the account does not meet that threshold, the money shall be carried over to the next legislative session. The commissioner shall determine the refund amount per eligible taxpayer using a proportional or per capita formula established by rule. An eligible taxpayer is any individual who filed a Minnesota individual income tax return for the most recent tax year. The commissioner shall collaborate with the commissioner of revenue to determine eligible taxpayers. new text end new text begin (b) Refunds shall be made no later than 120 days of adjournment of the legislative session. Refunds shall be issued from the treasury as direct payments. new text end new text begin Subd. 5. new text end new text begin Rulemaking. new text end new text begin The commissioner shall adopt rules necessary to implement this section including a distribution formula and procedures for processing payments. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective July 1, 2026, and applies to all recovered funds received on or after that date. new text end