CHARLESTON – Gov. Jim Justice has vetoed a bill that would have capped the amount of settlement funds the Attorney General’s office could keep in its consumer protection fund.
House Bill 4009 overwhelmingly passed both houses of the Legislature this session, but Justice vetoed it saying the bill might keep state agencies from filing lawsuits. His veto letter also said the bill could create delays for state agencies because the Legislature would have the final word on how the settlement money would be used.
“The bill does not allow for the return of any administrative costs on behalf of the state agency in a damage award to the state agency involved in the litigation or prosecution of the case, “ Justice’s veto letter states. “However, the bill does specifically to the Attorney General to recover those costs. The lack of administrative costs contemplated in this bill could discourage state agencies from bringing lawsuits or assisting in the prosecution of cases in the future. …
“(It) would significantly delay the timely operation of state contracts and perhaps result in more damages, especially in instances where mitigation of damages is required.”
Attorney General Patrick Morrisey had sought the veto for similar reasons. Some lawmakers had claimed Morrisey has used settlement funds to promote himself, but Morrisey’s office says the money has been used for consumer programs.
The bill would have put a $7 million cap on settlement funds the AG’s office could keep in the consumer protection account before the Legislature could come in and once a year and take additional money for the state’s general fund. Right now, there is about $12 million in the AG’s consumer protection fund.
Last fall, lawmakers were upset with Morrisey when he announced plans to use $1 million from the fund to give to the State Police to help reduce the backlog of cases in its crime lab. Legislators didn’t mind funding the lab, but they said only the Legislature can distribute funds in that way.