HomeMy WebLinkAboutBill No. 22-16 Resolution to Opt-Back-In to the State of Indiana's Opioid Litigation Settlement 1200 CouNTY-QTY BUILDING ypurH aF PHONE 574/235-9241
227 W.JEFFERSONBoul-EVARD o4 'd FAX 574/235-7670
SOUIH BEND,INDIANA46601-1830 �� TTY 574/235-5567
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QTY OF SOUTH BEND JAMES MUELLER,MAYOR
DEPARTMENT OF LAW
SANDRA KENNEDY ALADEAN M.DEROSE
CORPORATION COUNSEL QTY ATTORNEY
Filed in Clerk`s Office
March 23, 2022
Sharon McBride, MAR 2 3 Z02?
President, South Bend Common Council
4`h Floor County City Building DAWN M.JONES
227 West Jefferson Boulevard CITY CLERK,SOUTH BEND,IN
South Bend,IN 466601
Re: Resolution to Opt-Back-In to the State of Indiana's Opioid Litigation Settlement
Dear. Council President McBride:
Attached is a Resolution based upon Indiana House Enrolled Act 1193,signed by Governor
Holcomb on March 10,2022. This Act amends the previous version of the law(Ind. Code §4-6-15)
which substantially limited the damages recoverable by the City of South Bend in the Cit/s opioid
litigation pending against manufacturers,distributors, retailers and others. For that reason,South
Bend originally opted out of the State's opioid settlement when this Council passed Resolution No.
4916-21 on June 14,2021 and a certified copy was sent to Indiana Attorney General Todd Rokita.
The new law is the result of legislative cooperation between the State and its political subdivisions,
and is far more beneficial and equitable to local governments like South Bend. The percentage of
state opioid settlement funds recoverable by local government has increased from the previous law's
15%to the new law's 50%. Note,however,that even under the new law,only 30% of the funds
received by local governments are unrestricted(usable to reimburse past expenses of the opioid
crisis). The remainder(70%) of those monies must be used by local governments "only for
programs of treatment,prevention, and care that are best practices as defined or required by the
settlement documents or court order." Ind. Code §4-6-15-4 (a) (4).
The State is currently part to two national settlement agreements: (1)with McKesson Corporation,
Cardinal Health,Inc.,and AmerisourceBergen Corporation (known as the "Distributor
Settlement"); and (2) with Johnson&Johnson,Janssen Pharmaceuticals,Inc.,OrthoMcNeil-Janssen
Pharmaceuticals,Inc.,and Janssen Pharmaceutica,Inc. (known as the "J&J Settlement"). The old
law only guaranteed that local governments would participate in these two settlements. The old law
included the following provision:
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.
JENNA THROW THOMAS E.PANOWICZ CHRISTINA SHAKOUR
C.,ARA MC DANIELS KYLIE CONNELL DANIELLE CAMPBELL WEISS
Sharon McBride
March 23 ,2022
Page 2
Ind. Gode §4-6-15-2(f). The new law struck this provision,so that local governments are now
entitled to participate in all future opioid settlements to which the State is a party. This is significant,
given that the Gity's current lawsuit includes a long list of defendants (such as retailers CVS Health,
Kroger,Meijer,Wal-Mart,and Walgreens) and the City has claims in bankruptcy proceedings filed
by Purdue Pharma and Mallinckrodt. The new law ensures that South Bend will benefit from any
national settlement agreement the State negotiates involving any of these entities, or any other
opioid defendant.
The dollar sum distributable to local governments is no longer based on that entity's per capita
population,but rather, is calculated upon"a weighted distribution formula." Ind. Code §4-6-15-4 (a)
(2).We understand this formula involves historical data of reported opioid use disorders,overdose
deaths,and amounts of opioids distributed within each local government's boundaries.
Current law extends the opt-back-in deadline from September 30,2021 to July 15,2022. However,
early opt-back-in is in the City's best interest because around April 27,2022 the first of about 18
installments of annual proceeds from the Distributor Settlement become distributable.
I will present this resolution to the Council at its appropriate Committee meeting and at the regular
Council meeting.Attorney James (Jay) Lewis,with the law firm THK Law(formerly Tuesley Hall
Konopa),the City's outside counsel in this matter,may accompany me.
Thank you for your consideration of this matter.
Sincerely,
CAI
Aladean DeRose
City Attorney
cc:Kacey Gergely
Sandra Kennedy
James M.Lewis
2
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MAR 2 ; 1UZ4
BILL NO. 22-16 ��
DAVdN M.JdNES
CITY CLE8K,SOUTH BEND,IN
RESOLUTION NO.
A RESOLUTION OF THE COMMON COUNCIL OF THE CITY OF SOUTH BEND,
INDIANA, AUTHORIZING AND APPROVING
THE CITY OF SOUTH BEND, INDIANA'S OPT BACK IN TO THE STATE OF
INDIANA'S STRUCTURED SETTLEMENT OF OPIOID LITIGATION UNDER IND.
CODE 4-16-15
WHEREAS, The City of South Bend has been actively engaged in pursuing damages
caused by the manufacture,sale,and distribution of opioids through outside counsel in multidistrict
litigation; and
WHEREAS, on June 14,2021 this Council enacted Resolution No. 4916-21 opting out of
the State of Indiana's opioid settlement plan as codified by Ind. Code 4-6-15 et seq.; and
WHEREAS, recent legislation amending Indiana Code 4-6-15 has been adopted by the
Indiana legislature and signed into law by Governor Holcomb which the City considers to be more
beneficial to its interests and which extends the time limit for opting back in to the State's
settlement; and
WHEREAS, The City of South Bend, Indiana, after due consideration of said legislation,
has determined that it is in the best interest of its citizens to opt back in to the opioids' settlements
under Indiana Code 4-6-15-2.
NOW,THEREFORE,BE IT RESOLVED by the Common Council of the City of South
Bend, Indiana, as follows:
SECTION I. The City of South Bend, Indiana, having considered whether to elect to opt
back in to the opioids settlements under Indiana Code 4-6-15-2, hereby resolves that the City of
South Bend now exercises its election to opt back in to the opioid settlements, and its duly
authorized agent is directed to submit a certified copy of this Resolution to the Indiana Attorney
General by July 15, 2022.
SECTION II.This Resolution shall be effective from and after its adoption by the
Common Council and approval by the Mayor.
Sharon L. McBride, Council President
South Bend Common Council