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: Feb 24, 2022
BILL NUMBER: HB 1193 BILL AMENDED: Feb 17, 2022
SUBJECT: Opioid Litigation.
FIRST AUTHOR: Rep. Karickhoff BILL STATUS: As Passed Senate
FIRST SPONSOR: Sen. Mishler
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. It requires a political subdivision to submit a copy of the agreement
executed between the political subdivision and the private legal counsel of the political subdivision when
opting back into the opioid litigation settlement. It also 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.
Fees and Costs: The bill removes certain requirements concerning the payment of costs, expenses, and
attorney's fees and costs arising from opioid litigation.
Settlement Distribution: The bill changes the basis by which the agency settlement fund distributes funds
to cities, counties, and towns. 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 provides that
35% of opioid litigation settlement funds are to be distributed to cities, counties, and towns for programs for
treatment, prevention, and care that are best practices for opioid use disorder.
The bill provides that funds received from the opioid settlement may not be distributed to a city, county, or
town that has opted out of the settlement and that the remaining funds shall be distributed to the cities,
counties, or towns that have opted into the settlement.
Effective Date: Upon passage.
Explanation of State Expenditures: The bill changes the future uses of funds from an opioid settlement
HB 1193 1 from community-based programs to treatment and prevention programs based on best practices. The funds
available to these programs will be 35% of the settlement proceeds.
Explanation of State Revenues: If the extension of the opt-in date and payment of fees and costs incurred
by political subdivisions to be paid from the proceeds of the settlement 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
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: 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: The bill increases the percentage of funds appropriated to the Office of
Attorney General for distribution to cities, towns, and counties. The distribution of 50% of the settlement
proceeds will be based on opioid impact on the community using a formula from the settlement
documentation. [Currently, 15% of the proceeds were to be distributed among cities, towns, and counties on
a per capita basis.] For 35% of the settlement proceeds, cities and towns receiving a distribution of less than
$1,000 will have their share applied to the county. Additionally, the amount distributed to political
subdivisions that opt-in to the settlement agreement may be increased by the share of political subdivisions
that opted-out. [The initial deadline for political subdivisions to opt-in was January 2, 2022.]
State Agencies Affected: Office of the Attorney General; 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