Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 145 3
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By: Senator B. King 5
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For An Act To Be Entitled 8
AN ACT TO AMEND ARKANSAS LAW CONCERNING THE 9
ALLOCATION OF FUNDS RESULTING FROM LITIGATION 10
INVOLVING THE USE OF FUNDS FROM THE GENERAL 11
IMPROVEMENT FUND OR ITS SUCCESSOR FUND OR FUND 12
ACCOUNTS; AND FOR OTHER PURPOSES. 13
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Subtitle 16
TO AMEND ARKANSAS LAW CONCERNING THE 17
ALLOCATION OF FUNDS RESULTING FROM 18
LITIGATION INVOLVING THE USE OF FUNDS 19
FROM THE GENERAL IMPROVEMENT FUND OR ITS 20
SUCCESSOR FUND OR FUND ACCOUNTS. 21
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 23
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SECTION 1. Arkansas Code § 25 -16-718 is amended to read as follows: 25
25-16-718. Use of settlement funds. 26
(a) When Except as otherwise provided in subsection (d) of this 27
section, when a settlement is agreed to or a judgment is entered in a lawsuit 28
in which the state is a party receiving all or part of the funds from the 29
settlement or judgment, the Attorney General shall create and maintain 30
accounts as necessary to receive the funds. 31
(b) The Except as otherwise provided in subsection (d) of this 32
section, 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 SB145
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section shall be distributed to Arkansas consumers as soon as practicable and 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 SB145
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from a court order or settlement agreement that does not require disbursement 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. 8
(d) When a settlement is agreed to or a judgment is entered in a 9
lawsuit concerning the appropriation, expenditure, or use of funds from the 10
General Improvement Fund or its successor fund or fund accounts, including 11
the Development and Enhancement Fund, in which the state is a party receiving 12
all or part of the funds from the settlement or judgment, the funds shall be 13
deposited into the State Treasury to be used by the Division of Arkansas 14
State Police for: 15
(1) Crime reduction and prevention programs; and 16
(2) Assistance to the Division of Community Correction in the 17
provision of probation, parole, and post -release supervision services. 18
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