Bill would send most covered settlement money to public schools

The State Treasurer would divide covered settlement payments among five destinations. The rule covers recoveries under the Consumer Protection Act and other payments received for the state and handled by the Department of Justice and Attorney General. Criminal penalties and funds held in trust for specific people, organizations, or governments are excluded. The distribution would begin July 1, 2026.

The State Settlement Cash Fund would end, and the State Treasurer would distribute its remaining money under the allocation rule. This applies to the State Settlement Cash Fund. The distribution applies to money left in the fund on the termination date. The fund would end July 1, 2026, and the remaining balance would be distributed as of that date.

The State Settlement Trust Fund would include only money held for specific beneficiaries. This covers Consumer Protection Act recoveries and other payments received for the state and handled by the Department of Justice and Attorney General. The money must be held in trust for specific people, organizations, or governments.