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Attorney General seeks $10M restoration for litigation, highlights organized-crime and PBM enforcement

2154592 · January 14, 2025
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Summary

Attorney General told the committee the office needs restoration of a $10 million litigation fund and requested additional resources for criminal investigations, human-trafficking database deployment, PBM enforcement and victim services; he also described enforcement successes against illegal marijuana grows and other initiatives.

Attorney General presented a broad budget and program summary to the House Appropriations and Budget Committee and asked the Legislature to restore a $10 million litigation fund the office used in previous years, saying without the restoration the office would have to curtail extraordinary litigation and statewide public-safety efforts.

The attorney general described a range of priorities and accomplishments: a targeted enforcement program against illegal commercial marijuana grows (reported decline from more than 12,000 licensed growers in early 2023 to about 3,008 in January 2025, counting licensed operations), formation of an organized crime task force and organized retail crime unit, a PBM (pharmacy benefit manager) enforcement team that the office says has received over 3,100 complaints and issued 10 investigative demands, and a human-trafficking database contract with HTI Labs to help service providers and law enforcement share victim data safely.

He told the committee the PBM enforcement effort has been delayed by regulatory authorization but said administrative adjudication and lawsuits were prepared pending authorization of rules. He described the PBM issues as alleged unfair reimbursement practices, unlawful fees charged to pharmacies, and inadequate appeal processes for pharmacists, and said enforcement may require administrative-law judges and significant investigative resources.

Criminal investigations and prosecution needs: the attorney general requested a $5.4 million increase to support specialized criminal investigation units the office now houses, including the organized crime task force, the organized retail crime task force, a multi-county grand jury and a human-trafficking division. He described significant seizures and prosecutions tied to illegal grow operations and said multiagency partnerships (including state National Guard assistance to remove illicit marijuana) were part of those operations.

The attorney general also sought $1.2 million to expand domestic-violence victim services (including LAP training and a children-and-youth-exposed-to-violence program), $4.0 million in pass-through funds to domestic-violence centers, and $2.05 million in direct-service grants for human-trafficking programs. He described opioid-abatement grant distribution work already under way and asked that the Legislature continue to appropriate settlement funds to abatement grants and allow the board to fund statewide projects.

Committee members pressed for detail on the requested litigation fund restoration and staffing. The attorney general defended earlier use of carryover and said the office had to step up on many fronts (antitrust work, Medicaid fraud, multi-jurisdictional prosecutions). He also said the office represents roughly 90 state agencies and estimated that representation saves state government about $4 million annually compared with outsourcing those legal functions.