Stricken language would be deleted from and underlined language would be added to present law.
Act 526 of the Regular Session
*ANS350* 3/17/2023 12:28:08 PM ANS350
State of Arkansas 1
94th General Assembly A Bill 2
Regular Session, 2023 HOUSE BILL 1674 3
4
By: Representative McCollum 5
By: Senator Hester 6
7
For An Act To Be Entitled 8
AN ACT CONCERNING TH E CONSUMER PROTECTIO N DIVISION OF 9
THE ATTORNEY GENERAL 'S OFFICE; TO AMEND THE LAW 10
CONCERNING SETTLEMEN T FUNDS HELD BY THE ATTORNEY 11
GENERAL'S OFFICE; AN D FOR OTHER PURPOSES . 12
13
14
Subtitle 15
CONCERNING THE CONSUMER PROTECT ION 16
DIVISION OF THE ATTORNEY GENERAL'S 17
OFFICE; AND TO AMEND THE LAW CONCERNING 18
SETTLEMENT FUNDS HELD BY THE ATTORNEY 19
GENERAL'S OFFICE. 20
21
22
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
24
SECTION 1. Arkansas Code § 4 -88-105(e), concerning the expenses and 25
funds of the Consumer Protection Division of the office of the Attorney 26
General, is amended to read as follows: 27
(e) The expenses of the division shall be paid from funds provided for 28
that purpose by law, including without limi tation: 29
(1) Funds made available by the state, a state agency, or a 30
state political subdivision; 31
(2) Funds made available by the United States Government or a 32
federal agency; or 33
(3)(A) Funds deposited into a Consumer Education and Enforcement 34
Account under § 25-16-718, managed by the division, from settlements or 35
judgments in favor of the state related to a lawsuit or assurance of 36 HB1674
2 3/17/2023 12:28:08 PM ANS350
voluntary compliance in which the state was a party. 1
(B) The account shall not carry a balance greater than one 2
million dollars ($1,000,000), and the funds in the account shall be used in a 3
manner determined by the office of the Attorney General Attorney General's 4
office, including without limitation: 5
(i) Litigation support; 6
(ii) Expert witness fees; 7
(iii) Court filing fees; 8
(iv) Process server fees; 9
(v) Witness fees; 10
(vi) Court costs; 11
(vii) Court reporter fees; 12
(viii) Attorney and staff training; 13
(ix) Travel expenses; 14
(x) Consumer education; 15
(xi) Office expenses and improv ements; and 16
(xii) Investigation expenses. 17
18
SECTION 2. Arkansas Code § 4 -88-105(f), concerning settlement funds in 19
lawsuits involving the office of the Attorney General, is repealed. 20
(f)(1) As used in this section, “state agency” includes without 21
limitation: 22
(A) A state agency, office, or department; 23
(B) A board or commission; and 24
(C) A public college or university. 25
(2) When a settlement is agreed to or a judgment is entered in a 26
lawsuit in which the state is a party receiving all or part of the settlement 27
or judgment, the Attorney General shall distribute the funds in the following 28
manner: 29
(A) Restitution to Arkansas consumers or state agencies, 30
or for other purposes, as designated by the court order or settlement 31
agreement; 32
(B) Designation of cash funds to a state agency having a 33
nexus to the underlying litigation; 34
(C) Payment of attorney's fees or civil penalties under § 35
4-88-113(a)(1), § 4-88-113(c), or § 4-88-113(e); or 36 HB1674
3 3/17/2023 12:28:08 PM ANS350
(D) Payment into the account, as authorized b y this 1
section. 2
(3)(A) Funds to be distributed as described in subdivisions 3
(f)(2)(B)-(D) of this section shall be distributed in the manner prescribed 4
by this section within one hundred twenty (120) days of the receipt of the 5
funds. 6
(B) Restitution funds shall be distributed to Arkansas 7
consumers as soon as is practicable and in accordance with any applicable 8
court order. 9
(4)(A) The office of the Attorney General shall on a quarterly 10
basis provide to the Legislative Council or Joint Budget Commit tee a report 11
of all cash funds received from court orders or settlement agreements. 12
(B) The report shall include: 13
(i) The case name of the court order or settlement 14
agreement; 15
(ii) The amount of funds received by the office of 16
the Attorney General for each court order or settlement agreement; and 17
(iii)(a) A plan for disbursement of the funds. 18
(b) If cash funds received from a court order 19
or settlement agreement are expended for any purpose, including consumer 20
education and enforceme nt activities, the report must itemize specific 21
activities subject to the exclusions provided in § 4 -88-111 and § 25-1-22
403(1)(B). 23
(c) The report shall also itemize the specific 24
consumer education and enforcement activities funded for the office of th e 25
Attorney General. 26
(C) If funds received from a court order or settlement 27
agreement are given to a specific entity by the office of the Attorney 28
General, the report shall include: 29
(i)(a) Whether or not the court order or settlement 30
agreement directed funds to be given to a specific entity. 31
(b) If the court order or settlement agreement 32
directs funds to a specific entity, the office of the Attorney General shall 33
provide a summary of input regarding the drafting of the court order or 34
settlement agreement. 35
(c) If the office of the Attorney General 36 HB1674
4 3/17/2023 12:28:08 PM ANS350
receives funds from a court order or settlement agreement that does not 1
require disbursement of funds to a specific entity, the office of the 2
Attorney General shall report a rationale for disburs ing funds to a specific 3
entity; and 4
(ii) A report of current balances of all 5
unappropriated cash fund holdings received by court order or settlement 6
agreement by the office of the Attorney General. 7
(D) The quarterly reports shall be provided no la ter than 8
the fifteenth day of the month immediately following the end of each quarter. 9
10
SECTION 3. Arkansas Code § 19 -4-817(b), concerning the use of cash 11
funds by constitutional officers, is amended to read as follows: 12
(b) The Except cash funds whose distribution is controlled by a court 13
order or settlement agreement, the General Assembly shall budget, approve, 14
and appropriate expenditures of cash funds by the enactment of separate 15
appropriation bills setting forth the purpose for which the moneys are to be 16
expended and the dollar amount to be expended for that purpose. 17
18
SECTION 4. Arkansas Code Title 25, Chapter 16, Subchapter 7, is 19
amended to add an additional section to read as follows: 20
25-16-718. Use of settlement funds. 21
(a) When a settlement is agreed to or a judgment is entered in a 22
lawsuit in which the state is a party receiving all or part of the funds from 23
the settlement or judgment, the Attorney General shall create and maintain 24
accounts as necessary to receive the funds. 25
(b) The Attorney General shall distribute the funds as: 26
(1)(A) Restitution to Arkansas consumers or state agencies or 27
for other purposes as designated by the court order or settlement agreement; 28
(B) Funds distributed under subdivision (b)(1)(A) of this 29
section shall be distributed to Arkansas consumers as soon as practicable and 30
according to any applicable court order. 31
(2) Cash funds to a state agency having a nexus to the 32
underlying litigation; 33
(3) Payment of attorney’s fees or civil penalties under § 4 -88-34
113(a)(1), § 4-88-113(c), or § 4-88-113(e); 35
(4) Required under § 4 -88-105, if the funds are deposited into 36 HB1674
5 3/17/2023 12:28:08 PM ANS350
the Consumer Education and Enforcement Account; or 1
(5) Payment for personal services, miscellaneous operating 2
expenses, or grants of the Attor ney General's office. 3
(c)(1) The Attorney General's office shall provide a quarterly report 4
to the Legislative Council or Joint Budget Committee of all cash funds 5
received from court orders or settlement agreements. 6
(2) The report shall include: 7
(A) The case name of the court order or settlement 8
agreement; 9
(B) The amount of funds received by the Attorney General's 10
office for each court order or settlement agreement; and 11
(C)(i) A plan for disbursement of the funds. 12
(ii) If cash funds r eceived from a court order or 13
settlement agreement are expended for any purpose, the report shall itemize 14
specific activities subject to the exclusions provided in § 4 -88-111 and § 15
25-1-403(1)(B). 16
(iii) The report shall also itemize the specific 17
consumer education and enforcement activities funded for the Attorney 18
General's office. 19
(3) If funds received from a court order or settlement agreement 20
are given to a specific entity by the Attorney General's office, the report 21
shall include: 22
(A)(i) A statement regarding whether the court order or 23
settlement agreement directed funds to be given to a specific entity; 24
(ii) If the court order or settlement agreement 25
directs funds be given to a specific entity, the Attorney General's office 26
shall provide a summary of input regarding the drafting of the court order or 27
settlement agreement. 28
(iii) If the Attorney General's office receives 29
funds from a court order or settlement agreement that does not require 30
disbursement of funds to a specific entity, the Attorney General's office 31
shall report a rationale for disbursing funds to a specific entity; and 32
(B) A report of current balances of all unappropriated 33
cash fund holdings received by court order or settlement agreement by the 34
Attorney General's of fice. 35
(4) The quarterly reports shall be provided no later than the 36 HB1674
6 3/17/2023 12:28:08 PM ANS350
fifteenth day of the month immediately following the end of each quarter. 1
2
3
APPROVED: 4/10/23 4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36