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HF 4867

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

2025-2026 Regular Session Introduced by Liz Lee

Removes cap on deposits to the consumer restitution account and sets a two-tier per-claim distribution: up to $50,000 full, then 50% of excess up to $50,000 more.

Introduction and first reading, referred to Commerce Finance and Policy
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Bill Summary · HF 4867

Summary of HF 4867 (2025-2026) – Minnesota

Purpose and intent

HF 4867 proposes changes to how money recovered in consumer enforcement actions—specifically the consumer protection restitution account (a state fund related to consumer enforcement public compensation)—is deposited and distributed. The key goals are to remove the existing deposit cap into the restitution account and to restructure how funds are allocated to eligible consumers who have unpaid public compensation.

Key provisions and changes

1) Deposit arrangements for recovered funds

  • Amends Minnesota Statutes 2025 Supplement, section 8.37, subdivision 3.
  • Change: The former rule divided recovered funds between the restitution account and the general fund as follows:
    • Previously: 50% of money payable to the state (not designated for other purposes) was deposited into the restitution account, and the remaining 50% went to the general fund.
    • New rule: The text clarifies “new text: Fifty” and deletes the previous up-to-$5,000,000 per fiscal year cap, effectively removing a cap on deposits into the restitution account.
  • Practical effect: There would be no statutory cap restricting the share of recovered funds deposited into the restitution account from consumer enforcement actions. The allocation continues to depend on how funds would have been deposited into the general fund under the existing framework, but the explicit cap is removed.

2) Distributions to eligible consumers

  • Amends Minnesota Statutes 2025 Supplement, section 8.37, subdivision 5.
  • Old provisions (replaced by the amendment) included a mechanism to prioritize payments to consumers eligible for unpaid public compensation and considerations for potential prorating if funds were insufficient.
  • New provisions:
    • Establishes a tiered distribution cap:
    • (1) The full identified amount of unpaid consumer enforcement public compensation, up to a maximum of $50,000 per eligible consumer.
    • (2) For any amount over $50,000, distributions may be limited to 50% of the identified amount of unpaid compensation, or $50,000, whichever is less.
    • This creates a two-part cap: a $50,000 full amount for each eligible consumer, plus a 50% rate on any portion above $50,000 (bounded by a $50,000 ceiling).
  • Practical effect: Affected consumers would receive up to $50,000 in full, with any additional eligible unpaid amounts potentially receiving only half of the excess, capped at $50,000 for the excess portion. This replaces a potential unlimited or fully proportional distribution approach and introduces a defined ceiling and step-down for large unpaid compensations.

Who is affected

  • Eligible consumers who have unpaid consumer enforcement public compensation resulting from state actions pursued by the Minnesota Attorney General.
  • Administrative and enforcement staff within the Attorney General’s Office responsible for administering the restitution account and disbursing compensation.
  • The general public and consumer protection framework, as the changes modify how funds recovered in enforcement actions are allocated and distributed.

Procedural and timeline aspects

  • Status: Introduction and first reading on 2026-04-07; referred to Commerce Finance and Policy.
  • The bill amends existing statutory sections (Minnesota Statutes 2025 Supplement, section 8.37, subdivisions 3 and 5).
  • There is no explicit funding or appropriation bill attached in this text; any impact would depend on subsequent legislative action to authorize or adjust related appropriations or distributions.

Potential impact and considerations

  • Financial impact:
    • Removal of the deposit cap expands the potential size of the restitution account, potentially increasing available funds for future distributions or other uses defined by law.
  • Distribution impact:
    • The two-tier cap may provide greater certainty for smaller claims (up to $50,000) while limiting larger claims to a proportional share, potentially reducing total payout for high-dollar cases.
  • Policy considerations:
    • Balances public compensation with fiscal constraints by creating explicit limits on large claims.
    • Changes the predictability of distributions for some beneficiaries, which could affect recipients’ expectations and planning.

If you’d like, I can compare HF 4867 to current law line-by-line or summarize potential fiscal implications based on hypothetical recovery scenarios.

Compiled from official sources — confirm details with the bill’s official record.

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