An act TO AMEND THE LAW CONCERNING THE USE OF 10 SETTLEMENT FUNDS BY THE ATTORNEY GENERAL, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas                 A Bill
2 95th General Assembly

3 Regular Session, 2025                                          HOUSE BILL 1831

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5 By: Representative M. Shepherd

6 By: Senator K. Hammer

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8                                  For An Act To Be Entitled

9   AN ACT TO AMEND THE LAW CONCERNING THE USE OF

10  SETTLEMENT FUNDS BY THE ATTORNEY GENERAL; AND FOR

11  OTHER PURPOSES.

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14                                      Subtitle

15                       TO AMEND THE LAW CONCERNING THE USE OF

16                       SETTLEMENT FUNDS BY THE ATTORNEY

17                       GENERAL.

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19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

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21  SECTION 1. Arkansas Code � 25-16-718 is amended to read as follows:

22  25-16-718. Use of settlement and civil penalty funds.

23  (a) When a settlement is agreed to or a judgment is entered in a

24 lawsuit in which the state is a party receiving all or part of the funds from

25 the settlement or judgment, the The Attorney General shall create and

26 maintain accounts as necessary to receive the funds resulting from:

27  (1) A settlement that is agreed to or a judgment that is entered

28 in a lawsuit in which the state is a party receiving all or part of the funds

29 from the settlement or judgment; or

30  (2) A civil penalty collected by the Attorney General for which

31 the law does not specify a use.

32  (b) The Attorney General shall distribute the funds as:

33  (1)(A) Restitution to Arkansas consumers or state agencies or

34 for other purposes as designated by the court order or settlement agreement.

35                       (B) Funds distributed under subdivision (b)(1)(A) of this

36 section shall be distributed to Arkansas consumers as soon as practicable and

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1 according to any applicable court order;

2              (2) Cash funds to a state agency having a nexus to the

3 underlying litigation;

4              (3) Payment of attorney's fees or civil penalties under � 4-88-

5 113(a)(1), � 4-88-113(c), or � 4-88-113(e);

6              (4) Required under � 4-88-105, if the funds are deposited into

7 the Consumer Education and Enforcement Account; or

8              (5) Payment for personal services, miscellaneous operating

9 expenses, or grants of the Attorney General's office.

10  (c)(1) The Attorney General's office shall provide a quarterly report

11 to the Legislative Council or Joint Budget Committee of all cash funds

12 received from court orders or settlement agreements.

13             (2) The report shall include:

14                    (A) The case name of the court order or settlement

15 agreement;

16                    (B) The amount of funds received by the Attorney General's

17 office for each court order or settlement agreement; and

18                    (C)(i) A plan for disbursement of the funds.

19                        (ii) If cash funds received from a court order or

20 settlement agreement are expended for any purpose, the report shall itemize

21 specific activities subject to the exclusions provided in � 4-88-111 and �

22 25-1-403(1)(B).

23                        (iii) The report shall also itemize the specific

24 consumer education and enforcement activities funded for the Attorney

25 General's office.

26             (3) If funds received from a court order or settlement agreement

27 are given to a specific entity by the Attorney General's office, the report

28 shall include:

29                    (A)(i) A statement regarding whether the court order or

30 settlement agreement directed funds to be given to a specific entity.

31                        (ii) If the court order or settlement agreement

32 directs funds be given to a specific entity, the Attorney General's office

33 shall provide a summary of input regarding the drafting of the court order or

34 settlement agreement.

35                        (iii) If the Attorney General's office receives funds

36 from a court order or settlement agreement that does not require disbursement

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1 of funds to a specific entity, the Attorney General's office shall report a

2 rationale for disbursing funds to a specific entity; and

3   (B) A report of current balances of all unappropriated

4 cash fund holdings received by court order or settlement agreement by the

5 Attorney General's office.

6   (4) The quarterly reports shall be provided no later than the

7 fifteenth day of the month immediately following the end of each quarter.

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