HF4513

Purpose

• To modify how money recovered in consumer enforcement actions is handled and distributed in Minnesota.
• To adjust the money that goes into the consumer protection restitution account and how that money is spent paying eligible consumers.

Main Provisions

• Deposits into the consumer protection restitution account

  • A portion of money recovered in a consumer enforcement action that is payable to the state and not designated for other specific purposes must be deposited into the restitution account: up to the first $5,000,000 of such recoveries each fiscal year.
  • The remaining recovered money that would otherwise go to the general fund continues to go to the general fund.
  • This money-deposit rule applies to recoveries at the time the money would have been deposited into the general fund.

• Distributions to eligible consumers

  • Money in the restitution account can be distributed to eligible consumers who have an identified amount of unpaid consumer enforcement public compensation.
  • Priority for payments:
  • If funds are insufficient to pay all identified unpaid compensation, payments go first to those with the oldest final orders.
  • Pro-rating or capping payments:
  • If ongoing funding is expected to be insufficient to pay all eligible consumers, the Attorney General may ask the legislature to set a formula to prorate or cap payments so more consumers receive some payment.
  • Per-recipient payment limits:
  • For each eligible consumer, the distribution cannot exceed:
    • Up to $50,000 of the identified unpaid compensation, plus
    • 50% of the identified amount over $50,000, with the second portion capped so the total does not exceed $100,000.
  • In practical terms, a recipient can receive up to $100,000 if funds permit (calculated as $50,000 plus 50% of the amount over $50,000, capped so the total stays within $100,000).

Significant Changes to Existing Law

• Funding source for the restitution account

  • Introduces a defined share (up to $5,000,000 per fiscal year) of recovered state funds into the consumer protection restitution account, with the remainder flowing to the general fund. This changes how much recovered money is funneled into the restitution account each year.

• Distribution framework to consumers

  • Shifts the process from potentially broad or unrestricted recovery payments to a structured framework:
  • Prioritizes older final orders.
  • Allows for proration or caps to maximize the number of recipients.
  • Sets explicit per-recipient payout caps ($50,000 full amount plus up to 50% of any additional unpaid amounts, capped to a total of $100,000).

How Funds Flow (Summary)

-Recovered money payable to the state (not designated for other purposes) → up to $5,000,000 each fiscal year deposited into the consumer protection restitution account; the remainder goes to the general fund.

• Money in the restitution account → distributed to eligible consumers with unpaid compensation, following the priority and cap rules described above.

• If funds run short → AG may propose prorating or capping payments to reach more recipients.

Relevant Terms

• consumer protection restitution account
• money recovered by the attorney general
• consumer enforcement action
• payable to the state
• consumer enforcement public compensation
• unpaid consumer enforcement public compensation
• general fund
• Minnesota Statutes 2025 Supplement section 8.37
• subdivision 3
• subdivision 5
• oldest final order
• final order
• eligible consumer
• prorating
• capping payments
• per-recipient payment cap
• $50,000
• 50 percent
• $100,000
• fiscal year
• deposit

Relevant Terms section - consumer protection restitution account - money recovered by the attorney general - consumer enforcement action - consumer enforcement public compensation - unpaid consumer enforcement public compensation - general fund - oldest final order - final order - eligible consumer - prorating - capping payments - per-recipient payment cap - $50,000 - 50 percent - $100,000 - Minnesota Statutes 2025 Supplement § 8.37 - fiscal year