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HF2846 (Legislative Session 94 (2025-2026))

Attorney general duties and activities funding provided, consumer protection restitution account and related requirements established, consumer litigation account modified, proceeds of litigation or settlement account established, report required, and money appropriated.

Related bill: SF3044

AI Generated Summary

Purpose of the Bill

This bill aims to allocate funds for the attorney general's duties and to establish accounts and policies for managing funds recovered through consumer protection and litigation activities in Minnesota.

Main Provisions

  • Attorney General Appropriations: The bill appropriates specific amounts from various funds (General, State Government Special Revenue, Environmental, and Remediation) for fiscal years 2026 and 2027 to support the attorney general's operations.

  • Consumer Protection Restitution Account: Establishes a new account to manage and distribute money recovered from consumer enforcement actions to individuals harmed by unlawful practices. It outlines how funds should be managed and distributed, including appointing an account administrator to facilitate this process.

  • Consumer Litigation Account: Adjustments are made to ensure transparency and efficiency in using funds received from litigation or settlements, with an annual report to be provided by the attorney general.

  • Proceeds of Litigation or Settlement Account: A new special account is created within the state treasury to deposit money recovered from legal actions. This account will ensure funds are correctly allocated and include an annual transfer to maintain the consumer litigation account.

Significant Changes

  • Amendments are made to existing statutes to clarify how undistributed funds from litigation are to be handled, directing them either to the newly established restitution account or to the state's general fund if distribution is impractical.

  • The bill establishes a structured process for appointing administrators to oversee the distribution of funds and lays out the circumstances under which efforts to distribute unpaid compensation can be deemed unreasonable or impractical.

  • A mandatory annual report by the attorney general provides detailed accounting of funds recovered and expenses connected to consumer protection actions, enhancing transparency and accountability.

Relevant Terms

  • Attorney General Appropriations
  • Consumer Protection Restitution Account
  • Consumer Litigation Account
  • Proceeds of Litigation or Settlement Account
  • Consumer Enforcement Action
  • Public Compensation
  • State Treasury

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 25, 2025HouseFloorActionIntroduction and first reading, referred toState Government Finance and Policy

Citations

 
[
  {
    "analysis": {
      "added": [
        "Allows for money to be deposited into the consumer protection restitution account if not redeemed by a consumer within 120 days."
      ],
      "removed": [],
      "summary": "This section pertains to the handling of recovered sums in litigation by the Attorney General. It provides that money which cannot be distributed to victims be paid into the general fund or a specified restitution account.",
      "modified": []
    },
    "citation": "8.31",
    "subdivision": "subdivision 2c"
  },
  {
    "analysis": {
      "added": [
        "The report must now include an accounting of transfers from the proceeds of litigation or settlement account.",
        "A recommendation from the Attorney General on whether to adjust the maximum account balance is required."
      ],
      "removed": [
        ""
      ],
      "summary": "This portion of the statute requires annual reporting by the Attorney General on activities funded through the consumer litigation account.",
      "modified": [
        "Expands on the details required in the Attorney General's annual report."
      ]
    },
    "citation": "8.315",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        "A new requirement for annual transfers to ensure the consumer litigation account maintains a balance of $2,000,000.",
        "Establishment of the proceeds of litigation or settlement account to manage funds recovered through litigation."
      ],
      "removed": [],
      "summary": "This statute addresses the handling of state funds and proceeds from litigation.",
      "modified": []
    },
    "citation": "16A.151",
    "subdivision": "subdivision 1"
  }
]

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