Sec. 5. Before distributing funds to a city, county, or town that has opted back into a settlement under section 2(d) of this chapter, the office of the attorney general shall:
(1) withhold from distribution to the city, county, or town the funds owed to the private legal counsel of the city, county, or town; and
(2) distribute the attorney's fees and costs to the private legal counsel of the city, county, or town.