The bill establishes a Consumer Protection Restitution Account within the special revenue fund, funded by 50% of all money recovered by the attorney general in consumer enforcement actions. This account is designed to provide restitution to consumers directly affected by unlawful acts and practices. It amends existing statutes to replace the general fund with this new account for undistributed money that cannot be reasonably allocated to victims. The bill outlines permissible uses of the account, including public compensation for eligible consumers and administrative costs, which are capped at 3% of the total funds available. Additionally, it mandates the attorney general to publish an annual report on consumer enforcement actions, payments to the account, and distributions made to consumers.

The bill also addresses the handling of funds related to consumer fraud violations, particularly concerning electronic nicotine delivery systems, stipulating that any assurance of discontinuance or court order from the attorney general must be deposited into the tobacco use prevention account, excluding attorney fees and costs awarded to the state. It clarifies that funds in the consumer protection restitution account are exempt from this requirement. Furthermore, a new subdivision is introduced to Minnesota Statutes, stating that public compensation payments received by eligible consumers will be treated as a subtraction for tax purposes, effective retroactively for taxable years beginning after December 31, 2023. Overall, the bill aims to improve fund management related to consumer protection and provide tax relief for consumers receiving compensation.

Statutes affected:
Introduction: 8.31, 16A.151, 290.0132