This bill, H.F. No. 1392, introduced in the Minnesota House of Representatives, seeks to establish a Consumer Protection Restitution Account to manage funds recovered in consumer enforcement actions by the Attorney General (AG). The bill outlines how money recovered in legal actions involving consumer protection violations should be distributed and used.

Key Provisions:

1. Creation of the Consumer Protection Restitution Account (Sec. 2, Subd. 1)

   • This account is established in the special revenue fund and is appropriated annually to the AG to distribute recovered funds to affected consumers.

2. Allocation of Recovered Funds (Sec. 2, Subd. 3)

   • 50% of recovered money from consumer enforcement actions that are payable to the state (and not designated for direct compensation of consumers or another purpose) must be deposited in the account.
   • The remaining 50% must be deposited into the general fund.

3. Use of Funds (Sec. 2, Subd. 4 & 5)

   • Money in the account is used to distribute restitution to eligible consumers.
     
   • Administrative costs for managing the account should not exceed 3% of the account’s total funds.

4. Conditions for Distribution (Sec. 2, Subd. 6 & 7)

   • The AG may deem distribution impractical if the cost of locating consumers outweighs the benefit.
     
   • If making payments is unreasonable (such as when compensation amounts aren't specified in legal settlements), funds may not be distributed.

5. Annual Reporting Requirement (Sec. 2, Subd. 8)

   • The AG must publish an annual report detailing:
     
     • Actions resulting in money deposited into the account.
       
     • Consumer enforcement actions that led to distributions.
       
     • Pending cases where distributions have yet to be made.
       
     • Administrative costs.
       
   • The report must also be submitted to relevant legislative committees.

6. Appointment of Account Administrators (Sec. 2, Subd. 9)

   • The AG can appoint administrators to manage fund distribution, track payments, and collect funds.

7. No Private Right of Action (Sec. 2, Subd. 10)

   • Individuals cannot file private lawsuits based on the administration of the account.

8. Collection Efforts Unaffected (Sec. 2, Subd. 11)

   • Even if funds are distributed from the account, the AG retains the authority to continue legal collection efforts.

9. Statutory Amendments (Sec. 3 & Sec. 4)

   • Amends Minnesota Statutes, sections 8.31, 16A.151, and 290.0132, ensuring that consumer enforcement compensation is specifically directed into this new account and that consumers receiving distributions are not taxed on the restitution.

This bill aims to streamline the process of ensuring affected consumers receive restitution from enforcement actions while creating transparency and accountability in fund management.