| 3 | 2 | | *LGL171* 03/18/2025 1:40:54 PM LGL171 |
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| 4 | 3 | | State of Arkansas 1 |
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| 5 | 4 | | 95th General Assembly A Bill 2 |
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| 6 | 5 | | Regular Session, 2025 HOUSE BILL 1831 3 |
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| 7 | 6 | | 4 |
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| 8 | 7 | | By: Representative M. Shepherd 5 |
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| 9 | 8 | | By: Senator K. Hammer 6 |
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| 10 | 9 | | 7 |
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| 11 | 10 | | For An Act To Be Entitled 8 |
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| 12 | 11 | | AN ACT TO AMEND THE LAW CONCERNING THE USE OF 9 |
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| 13 | 12 | | SETTLEMENT FUNDS BY THE ATTORNEY GENERAL; AND FOR 10 |
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| 14 | 13 | | OTHER PURPOSES. 11 |
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| 15 | 14 | | 12 |
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| 16 | 15 | | 13 |
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| 17 | 16 | | Subtitle 14 |
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| 18 | 17 | | TO AMEND THE LAW CONCERNING THE USE OF 15 |
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| 19 | 18 | | SETTLEMENT FUNDS BY THE ATTORNEY 16 |
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| 20 | 19 | | GENERAL. 17 |
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| 21 | 20 | | 18 |
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| 22 | 21 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19 |
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| 23 | 22 | | 20 |
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| 24 | 23 | | SECTION 1. Arkansas Code § 25-16-718 is amended to read as follows: 21 |
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| 25 | 24 | | 25-16-718. Use of settlement and civil penalty funds. 22 |
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| 26 | 25 | | (a) When a settlement is agreed to or a judgment is entered in a 23 |
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| 27 | 26 | | lawsuit in which the state is a party receiving all or part of the funds from 24 |
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| 28 | 27 | | the settlement or judgment, the The Attorney General shall create and 25 |
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| 29 | 28 | | maintain accounts as necessary to receive the funds resulting from: 26 |
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| 30 | 29 | | (1) A settlement that is agreed to or a judgment that is entered 27 |
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| 31 | 30 | | in a lawsuit in which the state is a party receiving all or part of the funds 28 |
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| 32 | 31 | | from the settlement or judgment; or 29 |
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| 33 | 32 | | (2) A civil penalty collected by the Attorney General for which 30 |
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| 34 | 33 | | the law does not specify a use . 31 |
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| 35 | 34 | | (b) The Attorney General shall distribute the funds as: 32 |
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| 36 | 35 | | (1)(A) Restitution to Arkansas consumers or state agencies or 33 |
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| 37 | 36 | | for other purposes as designated by the court order or settlement agreement. 34 |
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| 38 | 37 | | (B) Funds distributed under subdivision (b)(1)(A) of this 35 |
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| 39 | 38 | | section shall be distributed to Arkansas consumers as soon as practicable and 36 HB1831 |
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| 40 | 39 | | |
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| 41 | 40 | | 2 03/18/2025 1:40:54 PM LGL171 |
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| 42 | 41 | | according to any applicable court order; 1 |
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| 43 | 42 | | (2) Cash funds to a state agency having a nexus to the 2 |
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| 44 | 43 | | underlying litigation; 3 |
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| 45 | 44 | | (3) Payment of attorney's fees or civil penalties under § 4 -88-4 |
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| 46 | 45 | | 113(a)(1), § 4-88-113(c), or § 4-88-113(e); 5 |
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| 47 | 46 | | (4) Required under § 4 -88-105, if the funds are deposited into 6 |
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| 48 | 47 | | the Consumer Education and Enforcement Account; or 7 |
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| 49 | 48 | | (5) Payment for personal services, miscellaneous operating 8 |
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| 50 | 49 | | expenses, or grants of the Attorney General's office. 9 |
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| 51 | 50 | | (c)(1) The Attorney General's office shall provide a quarterly report 10 |
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| 52 | 51 | | to the Legislative Council or Joint Budget Committee of all cash funds 11 |
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| 53 | 52 | | received from court orders or settlement agreements. 12 |
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| 54 | 53 | | (2) The report shall include: 13 |
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| 55 | 54 | | (A) The case name of the court order or settlement 14 |
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| 56 | 55 | | agreement; 15 |
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| 57 | 56 | | (B) The amount of funds received by the Attorney General's 16 |
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| 58 | 57 | | office for each court order or settlement agreement; and 17 |
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| 59 | 58 | | (C)(i) A plan for disbursement of the funds. 18 |
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| 60 | 59 | | (ii) If cash funds received from a court order or 19 |
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| 61 | 60 | | settlement agreement are expended for any purpose, the report shall itemize 20 |
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| 62 | 61 | | specific activities subject to the exclusions provided in § 4 -88-111 and § 21 |
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| 63 | 62 | | 25-1-403(1)(B). 22 |
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| 64 | 63 | | (iii) The report shall also itemize the specific 23 |
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| 65 | 64 | | consumer education and enforcement activities funded for the Attorney 24 |
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| 66 | 65 | | General's office. 25 |
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| 67 | 66 | | (3) If funds received from a court order or settlement agreement 26 |
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| 68 | 67 | | are given to a specific entity by the Attorney General's office, the report 27 |
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| 69 | 68 | | shall include: 28 |
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| 70 | 69 | | (A)(i) A statement regarding whether the court order or 29 |
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| 71 | 70 | | settlement agreement directed funds to be given to a specific entity. 30 |
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| 72 | 71 | | (ii) If the court order or settlement agreement 31 |
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| 73 | 72 | | directs funds be given to a specific entity, the Attorney General's office 32 |
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| 74 | 73 | | shall provide a summary of input regarding the drafting of the court order or 33 |
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| 75 | 74 | | settlement agreement. 34 |
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| 76 | 75 | | (iii) If the Attorney General's office receives funds 35 |
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| 77 | 76 | | from a court order or settlement agreement that does not require disbursement 36 HB1831 |
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| 78 | 77 | | |
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| 80 | 79 | | of funds to a specific entity, the Attorney General's office shall report a 1 |
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| 81 | 80 | | rationale for disbursing funds to a specific entity; and 2 |
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| 82 | 81 | | (B) A report of current balances of all unappropriated 3 |
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| 83 | 82 | | cash fund holdings received by court order or settlement agreement by the 4 |
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| 84 | 83 | | Attorney General's office. 5 |
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| 85 | 84 | | (4) The quarterly reports shall be provided no later than the 6 |
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| 86 | 85 | | fifteenth day of the month immediately following the end of each quarter. 7 |
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| 87 | 86 | | 8 |
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| 88 | 87 | | 9 |
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