How HB 13 changes current law

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This Act clarifies that funds received by the State or a State agency from settlements must be deposited to the General Fund and cannot be spent until appropriated by the General Assembly, except for certain exclusions.

• Chapter 25, Title 29

  § 2512A. Disposition of funds received by the State or a State agency from a settlement or other final order or judgment of a court.

  Establishes a new section regarding the disposition of settlement funds.

• § 2512A

  Funds received by the State or a State agency from a settlement or other final order or judgment of a court must be deposited to the General Fund, may not be transferred or expended, and must remain unexpended until the funds are appropriated by the General Assembly. → Funds received by the State or a State agency from a settlement or other final order or judgment of a court must be deposited to the General Fund, may not be transferred or expended, and must remain unexpended until the funds are appropriated by the General Assembly. Nothing in this subsection may be construed to prohibit the expenditure of funds to any of the following: a. A party, other than the State or a State agency, to the dispute or lawsuit. b. A consumer entitled to a refund, the recovery of damages, or a monetary award. c. An attorney awarded attorneys' fees for representing a party or a consumer under this paragraph (b)(1) of this section.

  Clarifies the usage of funds and provides specific exclusions for expenditure.

• § 2512A

  The Attorney General, any subordinate who has been delegated the authority to negotiate or approve a settlement, and any private counsel retained to represent a State agency may not include or agree to terms or conditions in any settlement that authorizes the expenditure, transfer, or award of funds to any person other than any of the following: a. A party, other than the State or a State agency, to the dispute or lawsuit. b. A consumer entitled to a refund, the recovery of damages, or a monetary award. c. An attorney awarded attorneys' fees for representing a party or a consumer under this paragraph (b)(2) of this section. → The Attorney General, any subordinate who has been delegated the authority to negotiate or approve a settlement, and any private counsel retained to represent a State agency may not include or agree to terms or conditions in any settlement that authorizes the expenditure, transfer, or award of funds to any person other than any of the following: a. A party, other than the State or a State agency, to the dispute or lawsuit. b. A consumer entitled to a refund, the recovery of damages, or a monetary award. c. An attorney awarded attorneys' fees for representing a party or a consumer under this paragraph (b)(2) of this section.

  Reiterates the restrictions on the expenditure of settlement funds.

• § 2512A

  The Attorney General may provide a nonbinding written recommendation to the co-chairs of the Joint Finance Committee of the General Assembly for their consideration as to what purpose the funds subject to the prohibition in subsection (b) of this section should be appropriated.

  Allows the Attorney General to make recommendations regarding the appropriation of funds.

• § 2512A

  In addition to any other report or filing that may be required by law, and unless the settlement is sealed under a written order of a court, the Attorney General shall submit to the Controller General a copy of any settlement or other final order or judgment of a court in which the State or a State agency receives funds in excess of $75,000. → In addition to any other report or filing that may be required by law, and unless the settlement is sealed under a written order of a court, the Attorney General shall submit to the Controller General a copy of any settlement or other final order or judgment of a court in which the State or a State agency receives funds in excess of $75,000. The Attorney General shall submit a copy of the settlement or other final order or judgment of a court within 60 days of the date the settlement or a final order or judgment of a court is entered. The Attorney General shall redact any information deemed confidential by State or federal law from the copy of the settlement or other final order or judgment of a court before submitting it to the Controller General.

  Mandates reporting requirements for settlements exceeding $75,000.

• § 2512A

  Not less than 30 days before the disbursement of funds received by the State or a State agency under a settlement agreement or other final order or judgment of a court where the amount of funds received exceeds $75,000, the Attorney General shall file a written report with the Joint Finance Committee of the General Assembly on the payments received by the State or a State agency.

  Introduces a reporting requirement for disbursements of large settlement funds.