Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
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provision adopted), the text of the new provision will appear in this style type. Also, the
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between statutes enacted by the 2021 Regular Session of the General Assembly.
HOUSE ENROLLED ACT No. 1193
AN ACT to amend the Indiana Code concerning state offices and
administration.
Be it enacted by the General Assembly of the State of Indiana:
SECTION 1. IC 4-6-15-2, AS ADDED BY P.L.165-2021,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 2. (a) Except as provided in subsection (b), all
political subdivisions shall be considered a party to any settlement,
including a settlement in lieu of litigation, in opioid litigation by the
attorney general with an opioid party that is finalized with court
approval after March 1, 2021. Except as provided in subsection (b),
political subdivisions shall be bound by the terms of any opioid
litigation settlement imposed by a bankruptcy court or any other court
of competent jurisdiction as accepted by the attorney general.
(b) A political subdivision that has filed opioid litigation on or
before January 1, 2021, may opt out of the settlement described in this
section and choose to pursue its own claims by submitting written
documentation as prescribed in subsection (c) to the attorney general
by June 30, 2021. Except as provided in subsection (d), any political
subdivision that opts out and chooses to maintain its own lawsuit under
this section shall have no claim to any state or political subdivision
funds paid according to the settlement authorized or approved by the
attorney general.
(c) A document submitted by a political subdivision under
subsection (b) to opt out of the settlement shall include:
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(1) the name of the political subdivision electing to opt out;
(2) contact information for an individual at the political
subdivision who can provide information regarding the decision
to opt out; and
(3) a certified copy of the resolution adopted by the political
subdivision to opt out;
of the settlement.
(d) Notwithstanding subsection (b), a political subdivision may opt
back in to a settlement by submission of:
(1) the name of the political subdivision opting back in;
(2) contact information for an individual at the political
subdivision who can provide information regarding the decision
to opt back in; and
(3) a certified copy of the resolution adopted by the political
subdivision to opt back in; and
(4) a copy of the agreement that includes a term setting the
amount of attorney's fees and costs owed to the private legal
counsel executed between the private legal counsel of the
political subdivision and the political subdivision that is opting
back in;
to the settlement to the attorney general by the earlier of sixty (60) days
after the political subdivision adopted a resolution to opt out of the
settlement or September 30, 2021, whichever occurs first. July 15,
2022.
(e) A political subdivision that has not made a choice to opt out or
that has opted back in to the settlement is bound by full release, waiver,
and dismissal of all claims against the opioid party.
(f) No political subdivision has any claim to any settlement proceeds
for litigation against any opioid party not yet filed by the state as of the
effective date of this chapter, as added by HEA 1001-2021.
SECTION 2. IC 4-6-15-3, AS ADDED BY P.L.165-2021,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 3. (a) After January 1, 2021, no political
subdivision shall initiate or file opioid litigation in any court.
(b) The state and each political subdivision shall be solely
responsible for paying all costs, expenses, and attorney's fees arising
from opioid litigation brought under their respective authorities,
including any attorney's fees owed to private legal counsel, and may not
seek payment for reimbursement of such costs, expenses, and attorney's
fees from money to be used for treatment, education, and prevention
programs for opioid use disorder and any co-occurring substance use
disorder or mental health issues. Payment of attorney's fees may be
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sought from specific attorney's fee, costs, and expenses funds set up by
the settlement agreement.
SECTION 3. IC 4-6-15-4, AS ADDED BY P.L.165-2021,
SECTION 36, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 4. (a) Funds received from opioid litigation
settlements that resolve existing state and political subdivision
litigation lawsuits as of January 1, 2021, shall be distributed in the
following manner:
(1) Fifteen percent (15%) to the agency settlement fund
established by IC 4-12-16-2 for the benefit of the state.
(2) Fifteen percent (15%) to the agency settlement fund
established by IC 4-12-16-2 for distribution to cities, counties,
and towns on a per capita basis. For purposes of this subdivision,
the population, as determined under IC 1-1-3.5-3(a), of a county
is the aggregate population for all unincorporated areas of the
county. according to a weighted distribution formula
identified in settlement documents that accounts for opioid
impacts in communities.
(3) Seventy percent (70%) Thirty-five percent (35%) to the
agency settlement fund established by IC 4-12-16-2 to be used for
statewide treatment, education, and prevention programs for
opioid use disorder and any co-occurring substance use disorder
or mental health issues as defined or required by the settlement
documents or court order.
(4) Thirty-five percent (35%) to the agency settlement fund
established by IC 4-12-16-2 for distribution to cities, counties,
and towns according to a weighted distribution formula
identified in settlement documents that accounts for opioid
impacts in communities. However, if a city's or town's annual
distribution under this subdivision is less than one thousand
dollars ($1,000), the city's or town's annual distribution must
instead be distributed to the county in which the city or town
is located. Distributions under this subdivision may be used
only for programs of treatment, prevention, and care that are
best practices as defined or required by the settlement
documents or court order.
(b) The amount amounts distributed to the agency settlement fund
under subsection (a)(2) is subsection (a)(2) and (a)(4) are annually
appropriated to the office of the attorney general to make the
distributions described under subsection (a)(2). subsection (a)(2) and
(a)(4).
(c) Funds received from the settlement may not be distributed
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to a city, county, or town that has opted out of the settlement under
section 2(b) of this chapter. The settlement funds that are not
distributed to the cities, counties, or towns that have opted out of
the settlement must be distributed in the manner set forth under
subsection (a)(2) and (a)(4) to the cities, counties, or towns that
have opted into the settlement.
(c) (d) The amount distributed to the agency settlement fund under
subsection (a)(3) is annually appropriated to the office of the secretary
of family and social services for treatment, education, and prevention
programs for opioid use disorder and any co-occurring substance use
disorder or mental health issues as defined or required by the
settlement documents or court order. The office of the secretary of
family and social services shall allocate fifty percent (50%) of the
funds received annually under this subsection to eligible
community-based treatment, education, and prevention programs for
opioid use disorder and any co-occurring substance use disorder or
mental health issues. The office of the secretary of family and social
services shall divide the state into regions based on population and
ensure that funds are awarded to participating entities in each region of
the state. Data from calendar years beginning after December 31, 2017,
and ending before January 1, 2021, related to opioid use disorder
during those calendar years, including overdoses and deaths, may be
considered in the process of determining regional funding allocations
under this subsection. The office of the secretary of family and social
services may adopt rules under IC 4-22-2 to define the regions within
the state and for determining a process for the application and awarding
of funds. Before the remaining fifty percent (50%) thirty-five percent
(35%) of the funds received under this subsection may be distributed,
the office of the secretary of family and social services shall submit a
distribution plan to the budget committee for review.
(d) (e) All entities receiving settlement funds to be used for
treatment, education, and prevention programs for opioid use disorder
and any co-occurring substance use disorder or mental health issues
shall monitor the use of those funds and provide an annual report to the
office of the secretary of family and social services not later than a date
determined by the office of the secretary of family and social services.
(e) (f) The office of the secretary of family and social services shall
compile and submit an annual comprehensive report of the information
received under subsection (d) (e) to the general assembly in an
electronic format under IC 5-14-6 not later than October 1 of each year
identifying all funds committed and used as specified by any settlement
documents or court order.
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SECTION 4. IC 4-6-15-5 IS ADDED TO THE INDIANA CODE
AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE
UPON PASSAGE]: Sec. 5. Before distributing funds to a city,
county, or town that has opted back into a settlement under section
2(d) of this chapter, the budget agency shall:
(1) withhold from distribution to the city, county, or town the
funds owed to the private legal counsel of the city, county, or
town in the amount set forth in the agreement between the
city, county, or town and private legal counsel; and
(2) distribute the attorney's fees and costs to the private legal
counsel of the city, county, or town in the amount set forth in
the agreement between the city, county, or town and private
legal counsel.
SECTION 5. An emergency is declared for this act.
HEA 1193 — Concur Speaker of the House of Representatives
President of the Senate
President Pro Tempore
Governor of the State of Indiana
Date: Time:
HEA 1193 — Concur