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Taxes & Budget

SB145

To Amend Arkansas Law Concerning The Allocation Of Funds Resulting From Litigation Involving The Use Of Funds From The General Improvement Fund Or Its Successor Fund Or Fund Accounts.

Failed

Last Action (May 5, 2025): Died in Senate Committee at Sine Die adjournment.

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AI-Generated Summary

Senate Bill 145 amends Arkansas law regarding the management and allocation of settlement or judgment funds received by the state. The bill introduces a specific provision requiring that funds recovered from litigation involving the use of the General Improvement Fund—or its successor accounts—be deposited directly into the State Treasury. Once deposited, these specific funds are restricted to use by the Division of Arkansas State Police for two primary purposes: crime reduction and prevention programs, and providing assistance to the Division of Community Correction for probation, parole, and post-release supervision. Existing requirements for the Attorney General's reporting to the Legislative Council or Joint Budget Committee regarding other settlement funds remain in place. By redirecting these specific litigation proceeds, the bill alters the previous discretionary allocation methods for funds related to the General Improvement Fund.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are the Division of Arkansas State Police and the Division of Community Correction. These agencies would receive dedicated funding for their operations, specifically for crime reduction, prevention, and supervision services. Additionally, the public may benefit if these funds lead to more effective law enforcement and correctional oversight.

Who Might Suffer?

The Attorney General's Office may be negatively impacted as it loses the authority to allocate settlement funds arising from litigation concerning the General Improvement Fund at its own discretion, as per the current law. Furthermore, other state agencies or entities that might have previously received funding from these specific litigation settlements for other projects or initiatives would no longer be eligible to receive them.

Read Full Bill on arkleg.state.ar.us