LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6574 NOTE PREPARED: Dec 18, 2021
BILL NUMBER: HB 1193 BILL AMENDED:
SUBJECT: Opioid Litigation.
FIRST AUTHOR: Rep. Karickhoff BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: GENERAL IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: Opt In: The bill amends the deadline by which a political subdivision may opt
back in to an opioid litigation settlement.
Costs and Expenses: The bill also limits the manner by which a political subdivision may pay for the costs,
expenses, and attorney's fees arising from opioid litigation.
Agency Settlement Fund: The bill changes the basis by which the Agency Settlement Fund distributes funds
to cities, counties, and towns. The bill provides that 35% of opioid litigation settlement funds are to be
distributed to political subdivisions for treatment, education, and prevention programs for opioid use
disorder.
Statewide Treatment, Education, and Prevention Programs: It reduces the percentage of opioid litigation
settlement funds distributed for use of statewide treatment, education, and prevention programs for opioid
use disorder. The bill removes certain requirements for the Secretary of Family and Social Services
Administration (FSSA) concerning the allocation of funds received from an opioid litigation settlement.
Effective Date: Upon passage.
Explanation of State Expenditures: The bill reduces the distribution to FSSA from the proceeds of a
nationwide opioid settlement agreement and increases the share distributed to the political subdivisions that
opt-in to the settlement. The settlement is structured to provide incentives so that political subdivisions will
opt-in to the settlement and not pursue separate action against the defendant manufacture and distributors
of the litigation. The bill will relieve the FSSA from providing community-based treatment, education, and
HB 1193 1 preventions programs for opioid use disorder, eliminating future costs. Also, the redistribution potentially
increases the amount of settlement funds received by the state and its participating subdivisions, and
potentially stop suspension of payments to Indiana. The actions of political subdivisions in opting into the
settlement under the revised distribution of funds will determine the level of funding available to Indiana.
Additional Information - The nationwide settlement agreement, for an estimated $26 B, was reached in
litigation against the manufacturer Janssen Pharmaceuticals, Inc., its parent Johnson & Johnson, and the
distributors McKesson, Cardinal Health, and AmerisourceBergen. The settlement provides funds to the states
and their political subdivisions for abatement and remediation of the opioid crisis. About $12.1 B will be
distributed to the states based on population and impact of the opioid crisis as a base payment and $10.6 B
will be allocated as an incentive based on the participation of political subdivisions. Payments may be
suspended if an insufficient number of political subdivisions participate.
Explanation of State Revenues:
Explanation of Local Expenditures:
Explanation of Local Revenues: The bill would increase the amount distributed to political subdivisions
for treatment, education, and prevention programs and restrict distributions of settlement funds to political
subdivisions that opt-in to the settlement agreement. [The initial deadline for political subdivisions to opt-in
is January 2, 2022.]
Additional Information - There are 27 counties and 45 municipalities that have initiated their own litigation.
State Agencies Affected: FSSA.
Local Agencies Affected: Political subdivisions.
Information Sources: National Opioids Settlements, To Local Political Subdivisions:
Important Information about the National Opioid Settlement; National Opioids Settlements, Frequently
Asked Questions about the National Opioid Settlement [Subject to ongoing corrections and updates],
accessed on December 17, 2021 at https://nationalopioidsettlement.com/; Office of the Attorney General,
Opioid Settlement Update, August 5, 2021.
Fiscal Analyst: Karen Rossen, 317-234-2106.
HB 1193 2