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: Jan 20, 2022 BILL NUMBER: HB 1193 BILL AMENDED: Jan 20, 2022 SUBJECT: Opioid Litigation. FIRST AUTHOR: Rep. Karickhoff BILL STATUS: CR Adopted - 1 st House FIRST SPONSOR: FUNDS AFFECTED: GENERAL IMPACT: State & Local XDEDICATED FEDERAL Summary of Legislation: (Amended) Opt In: The bill amends the deadline by which a political subdivision may opt back in to an opioid litigation settlement. It 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. Treatment and Prevention Programs: The bill provides that the Office of the Secretary of Family and Social Services (FSSA) 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 FSSA. Effective Date: Upon passage. Explanation of State Expenditures: (Revised) The bill changes the future uses of funds from an opioid settlement from community-based programs to regional treatment and prevention programs based on best practices. Explanation of State Revenues: (Revised) If the extension of the opt-in date allows additional political subdivisions opt in to the opioid litigation settlement, the state may qualify for settlement proceeds or an additional share of the settlement. 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 HB 1193 1 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 Local Expenditures: (Revised) Political subdivisions are to report to the Attorney General by July 15, 2022, to opt back into the settlement. [There are 27 counties and 45 municipalities that have initiated their own litigation.] Explanation of Local Revenues: 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