Stricken language would be deleted from and underlined language would be added to present law.
Act 690 of the Regular Session
*LGL171* 03/18/2025 1:40:54 PM LGL171
State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1831 3
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By: Representative M. Shepherd 5
By: Senator K. Hammer 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING THE USE OF 9
SETTLEMENT FUNDS BY THE ATTORNEY GENERAL; AND FOR 10
OTHER PURPOSES. 11
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Subtitle 14
TO AMEND THE LAW CONCERNING THE USE OF 15
SETTLEMENT FUNDS BY THE ATTORNEY 16
GENERAL. 17
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
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SECTION 1. Arkansas Code § 25-16-718 is amended to read as follows: 21
25-16-718. Use of settlement and civil penalty funds. 22
(a) When a settlement is agreed to or a judgment is entered in a 23
lawsuit in which the state is a party receiving all or part of the funds from 24
the settlement or judgment, the The Attorney General shall create and 25
maintain accounts as necessary to receive the funds resulting from: 26
(1) A settlement that is agreed to or a judgment that is entered 27
in a lawsuit in which the state is a party receiving all or part of the funds 28
from the settlement or judgment; or 29
(2) A civil penalty collected by the Attorney General for which 30
the law does not specify a use . 31
(b) The Attorney General shall distribute the funds as: 32
(1)(A) Restitution to Arkansas consumers or state agencies or 33
for other purposes as designated by the court order or settlement agreement. 34
(B) Funds distributed under subdivision (b)(1)(A) of this 35
section shall be distributed to Arkansas consumers as soon as practicable and 36 HB1831
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according to any applicable court order; 1
(2) Cash funds to a state agency having a nexus to the 2
underlying litigation; 3
(3) Payment of attorney's fees or civil penalties under § 4 -88-4
113(a)(1), § 4-88-113(c), or § 4-88-113(e); 5
(4) Required under § 4 -88-105, if the funds are deposited into 6
the Consumer Education and Enforcement Account; or 7
(5) Payment for personal services, miscellaneous operating 8
expenses, or grants of the Attorney General's office. 9
(c)(1) The Attorney General's office shall provide a quarterly report 10
to the Legislative Council or Joint Budget Committee of all cash funds 11
received from court orders or settlement agreements. 12
(2) The report shall include: 13
(A) The case name of the court order or settlement 14
agreement; 15
(B) The amount of funds received by the Attorney General's 16
office for each court order or settlement agreement; and 17
(C)(i) A plan for disbursement of the funds. 18
(ii) If cash funds received from a court order or 19
settlement agreement are expended for any purpose, the report shall itemize 20
specific activities subject to the exclusions provided in § 4 -88-111 and § 21
25-1-403(1)(B). 22
(iii) The report shall also itemize the specific 23
consumer education and enforcement activities funded for the Attorney 24
General's office. 25
(3) If funds received from a court order or settlement agreement 26
are given to a specific entity by the Attorney General's office, the report 27
shall include: 28
(A)(i) A statement regarding whether the court order or 29
settlement agreement directed funds to be given to a specific entity. 30
(ii) If the court order or settlement agreement 31
directs funds be given to a specific entity, the Attorney General's office 32
shall provide a summary of input regarding the drafting of the court order or 33
settlement agreement. 34
(iii) If the Attorney General's office receives funds 35
from a court order or settlement agreement that does not require disbursement 36 HB1831
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of funds to a specific entity, the Attorney General's office shall report a 1
rationale for disbursing funds to a specific entity; and 2
(B) A report of current balances of all unappropriated 3
cash fund holdings received by court order or settlement agreement by the 4
Attorney General's office. 5
(4) The quarterly reports shall be provided no later than the 6
fifteenth day of the month immediately following the end of each quarter. 7
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APPROVED: 4/16/25 10
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