The bill amends the law regarding illegal exaction cases in Arkansas by allowing for the award of attorney's fees to prevailing taxpayers. Specifically, it introduces new provisions that enable circuit courts to award reasonable attorney's fees, which will be assessed and collected as costs against the governmental entity involved. This change aims to support taxpayers in meritorious litigation under the Arkansas Constitution related to the illegal exaction of funds.
Additionally, the bill clarifies the disposition of residual funds in such cases. If a circuit court orders repayment of illegally exacted moneys and residual funds remain after a reasonable claims filing period, these funds will be considered abandoned and will escheat to the state, county, city, or other governmental entity that originally exacted the funds. This amendment seeks to streamline the process and ensure that any leftover funds are appropriately managed.