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1200 CouNTY-QTY BUILDING ypurH aF <br />PHONE 574/ 235-9241 <br />227 W.JEFFERSONBoul-EVARD o4 d FAX 574/ 235-7670 <br />SOUIH BEND,INDIANA46601-1830 TTY 574/235-5567 <br />U t7 <br />w a <br />PEA(:E.. <br />x a <br />QTY OF SOUTH BEND JAMES MUELLER,MAYOR <br />DEPARTMENT OF LAW <br />SANDRA KENNEDY ALADEAN M.DEROSE <br />CORPORATION COUNSEL QTY ATTORNEY <br />Filed in Clerk`s OfficeMarch23, 2022 <br />Sharon McBride, MAR 2 3 Z02? <br />President, South Bend Common Council <br />4`h Floor County City Building DAWN M.JONES <br />227 West Jefferson Boulevard CITY CLERK,SOUTH BEND,IN <br />South Bend,IN 466601 <br />Re: Resolution to Opt-Back-In to the State of Indiana's Opioid Litigation Settlement <br />Dear. Council President McBride: <br />Attached is a Resolution based upon Indiana House Enrolled Act 1193,signed by Governor <br />Holcomb on March 10,2022. This Act amends the previous version of the law(Ind. Code §4- 6-15) <br />which substantially limited the damages recoverable by the City of South Bend in the Cit/s opioid <br />litigation pending against manufacturers,distributors, retailers and others. For that reason,South <br />Bend originally opted out of the State's opioid settlement when this Council passed Resolution No. <br />4916-21 on June 14,2021 and a certified copy was sent to Indiana Attorney General Todd Rokita. <br />The new law is the result of legislative cooperation between the State and its political subdivisions, <br />and is far more beneficial and equitable to local governments like South Bend. The percentage of <br />state opioid settlement funds recoverable by local government has increased from the previous law's <br />15%to the new law's 50%. Note,however,that even under the new law,only 30% of the funds <br />received by local governments are unrestricted(usable to reimburse past expenses of the opioid <br />crisis). The remainder(70%) of those monies must be used by local governments "only for <br />programs of treatment,prevention, and care that are best practices as defined or required by the <br />settlement documents or court order." Ind. Code §4-6-15-4 (a) (4). <br />The State is currently part to two national settlement agreements: (1)with McKesson Corporation, <br />Cardinal Health,Inc.,and AmerisourceBergen Corporation (known as the "Distributor <br />Settlement"); and (2) with Johnson&Johnson,Janssen Pharmaceuticals,Inc.,OrthoMcNeil-Janssen <br />Pharmaceuticals,Inc.,and Janssen Pharmaceutica,Inc. (known as the "J&J Settlement"). The old <br />law only guaranteed that local governments would participate in these two settlements. The old law <br />included the following provision: <br />No political subdivision has any claim to any settlement proceeds for litigation <br />against any opioid party not yet filed by the state as of the effective date of this <br />chapter. <br />JENNA THROW THOMAS E.PANOWICZ CHRISTINA SHAKOUR <br />C.,ARA MC DANIELS KYLIE CONNELL DANIELLE CAMPBELL WEISS <br />BILL NO. 22-16