Deposit limit on consumer protection restitution account removed, and distribution limits set.

2025-2026 Regular Session Introduced by Liz Lee and 1 co-sponsor

The bill removes the deposit cap on the consumer protection restitution fund but imposes explicit distribution limits on how much can be paid out.

Introduction and first reading, referred to State Government Finance and Policy

#consumerprotection #governmentaloperations-state

Overview

HF 4513 proposes changes to rules governing a consumer protection restitution account. Specifically, it removes the current deposit limit on funds in the restitution account and establishes distribution limits on amounts paid out from the account. The bill is introduced in the Minnesota House and referred to the State Government Finance and Policy committee. Co-sponsors are Rep. Andy Smith and Rep. Liz Lee. The action history shows introduction and first reading on March 23, 2026.

Purpose and Intent

To modify how funds awarded as consumer protection restitution can be stored and distributed.

To grant flexibility in using restitution funds by removing a cap on how much can be held in the restitution account.

To impose explicit limits on how much of the restitution fund may be distributed in a given period or under specified conditions (exact distribution cap details would be in the full bill text).

Key Provisions (as indicated by title and summary)

While the full text would provide precise language, the bill’s title and description indicate:
- Removal of deposit limit: The restitution account would no longer have a statutory cap on the total deposited funds. This could allow larger or accumulating sums to remain in the account.
- Distribution limits set: The bill establishes limits on how much of the restitution fund can be distributed, potentially per year, per recipient, or per program. The aim is to regulate cash outlays while still enabling restitution to be paid to eligible parties or programs.

Who/What Would Be Affected

Restitution fund administrators: Those responsible for managing the consumer protection restitution account would implement the new deposit and distribution rules.

Recipients of restitution payments: Individuals, groups, or programs eligible to receive restitution would be subject to the new distribution limits.

Consumer protection program stakeholders: Agencies and organizations involved in enforcing consumer protection laws or distributing restitution funds would be affected by the revised funding and dispensation rules.

Procedural and Timeline Aspects

Introduction and referral: The bill was introduced and referred to the State Government Finance and Policy committee on March 23, 2026.

Subsequent steps (not shown): If advanced, the bill would proceed through committee hearings, potential amendments, floor votes in the House, and then conference or adoption in the Senate as applicable, followed by any gubernatorial action.

Potential Impacts and Considerations

Financial flexibility vs. controls: Removing the deposit limit increases flexibility to retain funds for future needs, while imposing distribution limits adds a governance check on expenditures.

Impact on restitution recipients: The changes could affect how quickly and to whom restitution is paid, depending on the defined distribution limits and eligibility criteria.

Budget and accountability: The bill would likely necessitate updated reporting and oversight to ensure compliance with the new distribution caps and to demonstrate appropriate use of funds.

If you’d like, I can extract the exact statutory language and provide a line-by-line comparison with current law, or add a section outlining potential fiscal impact estimates based on the bill’s distribution limits.

Bill