*HB1193.1* January 20, 2022 HOUSE BILL No. 1193 _____ DIGEST OF HB 1193 (Updated January 19, 2022 6:49 pm - DI 134) Citations Affected: IC 4-6. Synopsis: Opioid litigation. Amends the deadline by which a political subdivision may opt back in to an opioid litigation settlement. Removes language providing that no political subdivision has any claim to any settlement proceeds for litigation against any opioid party not yet filed by the state as of a certain date. Provides that the office of the secretary of family and social services shall allocate 50% of the funds received annually to eligible regional programs of treatment, prevention, and care that are best practices after review by the office of the secretary of family and social services. Effective: Upon passage. Karickhoff January 6, 2022, read first time and referred to Committee on Ways and Means. January 20, 2022, amended, reported — Do Pass. HB 1193—LS 6574/DI 149 January 20, 2022 Second Regular Session of the 122nd General Assembly (2022) PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type. Additions: Whenever a new statutory provision is being enacted (or a new constitutional provision adopted), the text of the new provision will appear in this style type. Also, the word NEW will appear in that style type in the introductory clause of each SECTION that adds a new provision to the Indiana Code or the Indiana Constitution. Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts between statutes enacted by the 2021 Regular Session of the General Assembly. HOUSE BILL No. 1193 A BILL FOR AN ACT to amend the Indiana Code concerning state offices and administration. Be it enacted by the General Assembly of the State of Indiana: 1 SECTION 1. IC 4-6-15-2, AS ADDED BY P.L.165-2021, 2 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 3 UPON PASSAGE]: Sec. 2. (a) Except as provided in subsection (b), all 4 political subdivisions shall be considered a party to any settlement, 5 including a settlement in lieu of litigation, in opioid litigation by the 6 attorney general with an opioid party that is finalized with court 7 approval after March 1, 2021. Except as provided in subsection (b), 8 political subdivisions shall be bound by the terms of any opioid 9 litigation settlement imposed by a bankruptcy court or any other court 10 of competent jurisdiction as accepted by the attorney general. 11 (b) A political subdivision that has filed opioid litigation on or 12 before January 1, 2021, may opt out of the settlement described in this 13 section and choose to pursue its own claims by submitting written 14 documentation as prescribed in subsection (c) to the attorney general 15 by June 30, 2021. Except as provided in subsection (d), any political 16 subdivision that opts out and chooses to maintain its own lawsuit under 17 this section shall have no claim to any state or political subdivision HB 1193—LS 6574/DI 149 2 1 funds paid according to the settlement authorized or approved by the 2 attorney general. 3 (c) A document submitted by a political subdivision under 4 subsection (b) to opt out of the settlement shall include: 5 (1) the name of the political subdivision electing to opt out; 6 (2) contact information for an individual at the political 7 subdivision who can provide information regarding the decision 8 to opt out; and 9 (3) a certified copy of the resolution adopted by the political 10 subdivision to opt out; 11 of the settlement. 12 (d) Notwithstanding subsection (b), a political subdivision may opt 13 back in to a settlement by submission of: 14 (1) the name of the political subdivision opting back in; 15 (2) contact information for an individual at the political 16 subdivision who can provide information regarding the decision 17 to opt back in; and 18 (3) a certified copy of the resolution adopted by the political 19 subdivision to opt back in; 20 to the settlement to the attorney general by the earlier of sixty (60) days 21 after the political subdivision adopted a resolution to opt out of the 22 settlement or September 30, 2021, whichever occurs first. July 15, 23 2022. 24 (e) A political subdivision that has not made a choice to opt out or 25 that has opted back in to the settlement is bound by full release, waiver, 26 and dismissal of all claims against the opioid party. 27 (f) No political subdivision has any claim to any settlement proceeds 28 for litigation against any opioid party not yet filed by the state as of the 29 effective date of this chapter, as added by HEA 1001-2021. 30 SECTION 2. IC 4-6-15-4, AS ADDED BY P.L.165-2021, 31 SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE 32 UPON PASSAGE]: Sec. 4. (a) Funds received from opioid litigation 33 settlements that resolve existing state and political subdivision 34 litigation lawsuits as of January 1, 2021, shall be distributed in the 35 following manner: 36 (1) Fifteen percent (15%) to the agency settlement fund 37 established by IC 4-12-16-2 for the benefit of the state. 38 (2) Fifteen percent (15%) to the agency settlement fund 39 established by IC 4-12-16-2 for distribution to cities, counties, 40 and towns on a per capita basis. For purposes of this subdivision, 41 the population, as determined under IC 1-1-3.5-3(a), of a county 42 is the aggregate population for all unincorporated areas of the HB 1193—LS 6574/DI 149 3 1 county. 2 (3) Seventy percent (70%) to the agency settlement fund 3 established by IC 4-12-16-2 to be used for statewide treatment, 4 education, and prevention programs for opioid use disorder and 5 any co-occurring substance use disorder or mental health issues 6 as defined or required by the settlement documents or court order. 7 (b) The amount distributed to the agency settlement fund under 8 subsection (a)(2) is annually appropriated to the office of the attorney 9 general to make the distributions described under subsection (a)(2). 10 (c) The amount distributed to the agency settlement fund under 11 subsection (a)(3) is annually appropriated to the office of the secretary 12 of family and social services for treatment, education, and prevention 13 programs for opioid use disorder and any co-occurring substance use 14 disorder or mental health issues as defined or required by the 15 settlement documents or court order. The office of the secretary of 16 family and social services shall allocate fifty percent (50%) of the 17 funds received annually under this subsection to eligible 18 community-based treatment, education, and prevention programs for 19 opioid use disorder and any co-occurring substance use disorder or 20 mental health issues. The office of the secretary of family and social 21 services shall divide the state into regions based on population and 22 ensure that funds are awarded to participating entities in each region of 23 the state. Data from calendar years beginning after December 31, 2017, 24 and ending before January 1, 2021, related to opioid use disorder 25 during those calendar years, including overdoses and deaths, may be 26 considered in the process of determining regional funding allocations 27 under this subsection. The office of the secretary of family and social 28 services may adopt rules under IC 4-22-2 to define the regions within 29 the state and for determining a process for the application and awarding 30 of funds. regional programs of treatment, prevention, and care that 31 are best practices after review by the office of the secretary of 32 family and social services. Before the remaining fifty percent (50%) 33 of the funds received under this subsection may be distributed, the 34 office of the secretary of family and social services shall submit a 35 distribution plan to the budget committee for review. 36 (d) All entities receiving settlement funds to be used for treatment, 37 education, and prevention programs for opioid use disorder and any 38 co-occurring substance use disorder or mental health issues shall 39 monitor the use of those funds and provide an annual report to the 40 office of the secretary of family and social services not later than a date 41 determined by the office of the secretary of family and social services. 42 (e) The office of the secretary of family and social services shall HB 1193—LS 6574/DI 149 4 1 compile and submit an annual comprehensive report of the information 2 received under subsection (d) to the general assembly in an electronic 3 format under IC 5-14-6 not later than October 1 of each year 4 identifying all funds committed and used as specified by any settlement 5 documents or court order. 6 SECTION 3. An emergency is declared for this act. HB 1193—LS 6574/DI 149 5 COMMITTEE REPORT Mr. Speaker: Your Committee on Ways and Means, to which was referred House Bill 1193, has had the same under consideration and begs leave to report the same back to the House with the recommendation that said bill be amended as follows: Delete everything after the enacting clause and insert the following: (SEE TEXT OF BILL) and when so amended that said bill do pass. (Reference is to HB 1193 as introduced.) BROWN T Committee Vote: yeas 20, nays 0. HB 1193—LS 6574/DI 149