A bill co-authored by Senator Mark Koran (R-North Branch) to establish a consumer protection restitution account was heard in the Minnesota Senate State and Local Government Committee on Tuesday, March 11. Senate FIle 447 seeks to ensure that Minnesotans affected by fraudulent or deceptive business practices have a dedicated fund to receive restitution, rather than having recovered funds go to the state’s general fund.

“This bill is about holding bad actors accountable and making sure that consumers who are wronged have a clear path to get their money back,” Sen. Koran said. “Too often, victims of consumer fraud are left without real recourse, while recovered funds end up in the state’s general fund instead of reaching those who were harmed. This legislation ensures that restitution goes directly to the affected consumers, not the state. By creating this dedicated restitution account, we are strengthening protections for Minnesotans and ensuring they receive the justice and compensation they deserve.”

Consumer scams and fraudulent business practices have become more sophisticated in recent years, putting everyday Minnesotans—especially seniors, young people, and vulnerable individuals—at greater financial risk. Advancements in technology and artificial intelligence have given scammers new tools to exploit consumers, creating risks that didn’t exist just a few years ago.

The bill provides a critical safeguard by ensuring that restitution funds are available to compensate victims efficiently and fairly. Sen. Koran also emphasized the need for greater transparency in the attorney general’s office to guarantee that restitution funds are properly distributed to those harmed, rather than being funneled into the state accounts. He has long been a champion of strong consumer protections, particularly in addressing technology-related fraud.

Under S.F. 447, the consumer protection restitution account would be used exclusively to compensate individuals harmed by violations of consumer protection laws. Additionally, the bill ensures that payments from the account do not count as income for certain eligibility calculations, preventing unintended financial penalties for recipients.

The bill was discussed in the State and Local Government Committee on Tuesday, March 11, and referred to the Judiciary and Public Safety Committee.