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2014 Special Session I

Budget Amendments - HB5002 (Committee Approved)

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Specifications Related to OAG Negotiated Settlements (language only)

Item 4-2.02 #1h

Item 4-2.02 #1h

Revenues
General Fund Revenue

Language
Page 465, after line 13, insert:
"d.   Settlements Negotiated by the Office of the Attorney General
1.  There is hereby created the Disbursement Review Committee (the "Committee"), the members of which are the Attorney General, who shall serve as chairman; the Chairman of the House Committee on Appropriations and one Delegate appointed by him, or their designees; the Chairman of the Senate Committee on Finance and one Senator appointed by him, or their designees; and two individuals appointed by the Governor.  Whenever the Attorney General reasonably expects that there will be money or any real, tangible, or intangible property ("money or property"), or both, other than criminal fines (which would go to the Literary Fund) or attorney's fees (i) due or available to the Commonwealth as a result of any civil or criminal dispute or (ii) available to the Commonwealth or to any state or local governmental entity in the Commonwealth from any federal entity pursuant to an asset forfeiture equitable sharing agreement or other legal action, including a compromise, settlement, or agreement in a multistate action in which the Attorney General has participated on behalf of the Commonwealth or an agency of the Commonwealth, he shall forthwith notify all members of the Committee of the pertinent facts, and may convene a meeting of the Committee, but shall convene a meeting of the Committee at the request of any member.  
2.   For a compromise, settlement, or agreement under subdivision 1(i) above, the Attorney General shall prepare and recommend to the Committee a proposed Distribution Plan (the "Plan") regarding the distribution and use of money or property, or both, to be received by the Commonwealth as a result of any  such compromise, settlement, or agreement.   The Committee may propose the same or a modified Plan to the General Assembly for the distribution or use, or both, of such money or property, or both.
3.  For a compromise, settlement, or agreement under subdivision 1(ii) above, if the distribution or use, or both, of any money or property, or both, to be received by the Commonwealth is determined by a court order, federal law, or by a federal entity pursuant to federal law (such as a federal asset forfeiture sharing agreement), the Attorney General shall prepare and provide to the Committee a proposed Plan for the distribution and use  of any such money or property, or both, that is consistent with such court order, federal law, or regulations or policies of such federal agency.   If the permissible purpose(s) for the distribution or use, or both, of such money or property, or both, is described in general terms (for example, it must be used for "law enforcement purposes" or for "consumer education"), the Committee may propose a modified Plan with a more particular distribution  or use, or both, that falls within such general permissible purpose(s).   If a federal entity must approve the final Plan for such distribution or use, or both, and does not approve the Plan submitted to it by the Attorney General, he shall so inform the Committee, and the Plan may be revised if deemed appropriate and resubmitted to the federal entity for approval.   If the federal entity approves the original Plan or a revised Plan, the Attorney General shall so inform the Committee, and the  Committee shall recommend to the General Assembly distribution or use, or both, of such money or property, or both, that is consistent with the Plan approved by the federal entity.
4.   The Attorney General shall not enter into any compromise, settlement, or agreement for the distribution of money or property, or both, to be received by the Commonwealth under subdivision 1(i) or (1(ii) unless the compromise, settlement, or agreement provides that such money or property, or both, is to be deposited into the state treasury.   No such distribution shall occur without a specific appropriation by the General Assembly that is consistent with the permissible purpose(s) set forth in the court order or federal law or by the federal entity.   If a federal entity must approve the final Plan for such distribution or use, or both, and the General Assembly's appropriation in an appropriation act differs from the Plan approved by the federal entity, the appropriation shall be submitted to the federal entity for approval.    The distribution of any money or property, or both, shall be done in a manner as prescribed by the State Comptroller in order to ensure proper accounting on the books of the Commonwealth.  
5.  The provisions of subdivisions 1 through 4 shall not apply to any negotiation, compromise, settlement, or agreement involving money or property, or both (a) where the distribution and use of such money or property, or both, is governed specifically by this act or by other law of the Commonwealth,  (b) in which the total value of such moneys or property does not exceed $250,000, or (c) in which the entire amount of the settlement is for services provided, or for property sold or provided, under a contract with a governmental entity.  The General Assembly hereby appropriates a sum sufficient amount for any settlement or agreement authorized solely by virtue of this subdivision 5."


Explanation
(This amendment clarifies the role of the General Assembly and the office of the Attorney General in future cases involving the OAG in cases which result in funds being returned to the Commonwealth.)