The proposed legislation, titled the "Arkansas Statutory Thresholds for Settlement Agreements Involving Minors Act," aims to establish a framework for settling claims involving minors. It introduces a new chapter in the Arkansas Code, specifically Chapter 131, which outlines definitions, purposes, and procedures related to settlement agreements for minors. Key definitions include terms such as "minor," "guardian," "settlement," and "settlement agreement." The act stipulates that a guardian may enter into a settlement agreement on behalf of a minor if certain conditions are met, including the total claim amount being $25,000 or less and the absence of a conservator or guardian ad litem.

Additionally, the bill details the procedures for disbursing settlement funds, emphasizing that any payments must be deposited into a federally insured savings account or used to purchase an annuity for the minor's benefit. It also provides protections for guardians acting in good faith, ensuring they are not held liable for the settlement amounts. The legislation aims to streamline the process of settling claims involving minors while safeguarding their financial interests.