OFFICE OF FISCAL ANALYSIS
Legislative Office Building, Room 5200
Hartford, CT 06106 (860) 240-0200
http://www.cga.ct.gov/ofa
sHB-5044
AN ACT IMPLEMENTING THE GOVERNOR'S BUDGET
RECOMMENDATIONS REGARDING THE USE OF OPIOID
LITIGATION PROCEEDS.
As Amended by House "B" (LCO 5386)
House Calendar No.: 132
Primary Analyst: ES 4/27/22
Contributing Analyst(s):
OFA Fiscal Note
State Impact: See Below
Municipal Impact: Below
Explanation
The bill establishes the Opioid Settlement Fund, a separate non-
lapsing fund, as a mechanism for the state to receive opioid litigation
proceeds finalized after 7/1/21. Expenses made from the fund must be
used prospectively and only for specified substance use disorder
abatement purposes.
The bill results in a cost to the Department of Mental Health and
Addiction Services (DMHAS) of at least $250,000 associated with a
Behavioral Health Program Manager and Administrative Assistant (and
related fringe benefits) required to manage the Committee. Additional
staffing and support costs may be incurred to carry out the provisions
of the bill. Costs may be supported by the Opioid Settlement Fund or
the General Fund.
The bill requires the Treasurer to annually report on fund balance,
investments, and earned income for the Opioid Settlement Fund. This is
not anticipated to result in a cost, as the Treasurer has sufficient
expertise to create such reports if the monies of the fund are invested
alongside other cash balances of the state, such as the short-term 2022HB-05044-R01-FN.DOCX Page 2 of 2
investment fund.
For context, Connecticut is part of a recently approved $26 billion
multistate opioid settlement agreement with various prescription drug
manufacturers. Of that amount, the state is expected to receive
approximately $300 million over 18 years; municipalities will receive
15%, or 45 million collectively, of the state’s allocation. As such, this is
anticipated to result in a significant revenue gain to the state and
municipalities associated with settlement revenue.
House "B" strikes the language in the underlying bill and the
associated impact and results in the fiscal impact described above.
The Out Years
The annualized ongoing fiscal impact is dependent on opioid
litigation settlements and associated proceeds.