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Judge Rejects Attorney General's Plan for Charitable Money

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Posted at 6:00 PM, Oct 02, 2014
and last updated 2015-09-07 14:26:05-04

NASHVILLE, Tenn. - A Nashville Judge blasted a proposal from Tennessee's former Attorney General in an order released Thursday afternoon.

Chancellor Ellen Hobbs Lyle rejected the Attorney General's plan to distribute $40 million among state charities.

The money came from the settlement of a lawsuit involving not for profit nursing homes.

All $40 million must go to charities.

The A.G. proposed spending $35 million to start a new foundation, called the Foundation for a Greater Tennessee.

But Chancellor Lyle wrote creating a new foundation was "inefficient and redundant."

She also said the Attorney General's Office was not transparent in its process for coming up with a plan to distribute the money.

NewsChannel 5 Investigates reported several organizations claimed they didn't know they could even apply for the money.

And Chancellor Lyle said the plan was not focused on the elderly.

It was a nursing home case, so the judge believed some of the money should go toward seniors.

The new Attorney General, Herbert Slatery -- who took office Wednesday -- now has 30 days to decide if he wants to appeal the decision.

If not, the court will come up with a plan to distribute the $40 million.