37-1-125. (Temporary) Contingent litigation fund -- uses -- fees -- rulemaking authority. (1) There is an account in the state special revenue fund for contingent litigation fees. The money in the account is statutorily appropriated, as provided in 17-7-502, to the department of labor and industry and must be used to pay the legal fees and costs associated with the discipline of a license issued by a licensing board created under Title 2, chapter 15, part 17, or a licensing program recognized by 37-1-401.

(a) Fees and costs may only be paid from the fund if the actual fees and costs of the disciplinary proceeding exceed $15,000. Subject to the availability of funds, money may be transferred to the board or program for all fees and costs exceeding $15,000.

(b) The fees and costs may continue to be paid from the fund if the board or program becomes ineligible to participate in the fund pursuant to subsection (4).

(c) The department is authorized to make rules relating to the distribution of the fund, including the priority to the allocation of the fund.

(2) The department may not use the funding provided in this section to pay costs, fees, penalties, or sanctions ordered against a board or program.

(3) The department is authorized to set a fee by rule that:

(a) (i) may not exceed $25 a year for each licensee;

(ii) must be paid by licensees as part of their initial or renewal application fee; and

(iii) must be the same for all licenses of boards subject to this section;

(b) may not be collected in any fiscal year in which the total fund balance on March 31 exceeds $300,000; and

(c) is solely applicable to licensees of boards or programs identified in subsection (4).

(4) A board or program with revenue of $200,000 or less based on a preceding fiscal 3-year rolling average is subject to this section.

(5) Interest and income earned on the account and any unspent or unencumbered money in the account at the end of a fiscal year must remain in the account. (Terminates June 30, 2031--sec. 5, Ch. 129, L. 2025.)