[§28-16]  Litigation deposits trust fund. (a)  There is created in the state treasury the litigation deposits trustfund.  There shall be deposited into this fund all moneys received through anycivil action in which the State is a party where the settlement amount is$100,000 or higher, except for those actions involving departments able toprocure their own legal services as provided for by section 28-8.3 and where noother state statute or court order specifically provides for the deposit ofmoneys received through the action.

(b)  The fund shall be administered by thedepartment of the attorney general.  The department shall maintain accountingrecords of fund moneys, including subsidiary records of individual litigationdeposits and disbursements thereof.  Moneys in the fund may be separated intosubsidiary accounts; provided that one subsidiary account shall not becommingled with moneys from another account except for deposit or investmentpurposes under subsection (d).

(c)  Disbursements from each account maintainedunder subsection (b) may include attorney's fees and other necessary expensesthat the department determines to be reasonable and directly related toprosecution of the civil action for which the account is maintained; providedthat in the case of moneys deposited as a result of recoveries by an agency towhich a non-general fund applies, the moneys shall be held and disbursed intactfor deposit to the credit of the non-general fund.  Money deposited in the fundpursuant to an order of the court shall be disbursed in accordance with theorder of the court.  Any residual funds remaining in an account shall betransferred to the respective non-general or general fund with which the civilaction is associated no later than thirty days after the civil action for whichthe account is maintained is closed and all costs of that civil action havebeen paid, unless otherwise provided for by statute.

(d)  Moneys in the fund may be invested by thedepartment in securities as provided by section 36-21.  Investment earningsshall be deposited in the general fund.

(e)  The department shall submit a report tothe legislature no later than twenty days prior to the convening of eachregular session on:

(1)  The transactions, by subsidiary account, that takeplace in the fund for each fiscal year; and

(2)  A summary of the collections made in any amounton behalf of other departments and agencies specifying the appropriate numberof transactions and amount collected for each department and agency. [L 2002, c178, §1]