SETTLEMENTS; OPIOID LIABILITY ACT S.B. 592:

SUMMARY OF INTRODUCED BILL

IN COMMITTEE

 

 

 

 

 

 

Senate Bill 592 (as introduced 10-17-23) (Senate-passed version)

Sponsor: Senator Rosemary Bayer

Committee: Civil Rights, Judiciary, and Public Safety

 

Date Completed: 10-18-23

 


CONTENT

 

The bill would amend the Opioid Liability Litigation Act to prohibit a political subdivision of the State from commencing or maintaining a legal action related to the released claims of entities in the Allergen settlement, the CVS settlement, the Teva settlement, the Walgreens settlement, and the Walmart settlement.

 

Currently, the Act prohibits a political subdivision of the State from commencing or maintaining specified legal actions related to opioid settlements. The bill would add the following actions to the prohibited list:

 

--   After January 1, 2022, an action related to the released claims as defined in the Allergan settlement against the released entities as defined in the Allergan settlement.

--   After January 1, 2022, an action related to the released claims as defined in the CVS settlement against the released entities as defined in the CVS settlement.

--   After January 1, 2022, an action related to the released claims as defined in the Teva settlement against the released entities as defined in the Teva settlement.

--   After January 1, 2022, an action related to the released claims as defined in the Walgreens national settlement against the released entities as defined in the Walgreens national settlement.

--   After January 1, 2022, an action related to the released claims as defined in the Walmart settlement against the released entities as defined in the Walmart settlement.

 

("Political subdivision" means a public body corporate in the State, an agency of a public body

corporate in the State, a nonincorporated body in the State of whatever nature, or an agency of a nonincorporated body in the State. The term includes a county, city, village, township, school district, or special district or authority of the State.)

 

"Allergan settlement" would mean the master settlement agreement arising out of the MDL and entered into by State with Allergan Pharmaceuticals. "CVS settlement" would mean the master settlement agreement arising out of the MDL and entered into by the State with CVS Pharmacy. "Teva settlement" would mean the master settlement agreement arising out of the MDL and entered into by the State with Teva Pharmaceuticals. "Walgreens national settlement" would mean the master settlement agreement arising out of the MDL and entered into by the State with Walgreens Pharmacy. "Walmart settlement" would mean the master settlement agreement arising out of the MDL and entered into by the State with Walmart.

 

("MDL" means In re Nat'l Prescription Opiate Litigation, multidistrict litigation consolidated in the United States District Court for the Northern District of Ohio, Case No. 1:17-MD-2804.)

 

MCL 691.1672 & 691.1673

 

 


BACKGROUND

 

In 2021, Johnson & Johnson, McKesson, Cardinal Health, and AmerisourceBergen reached a $26.0 billion nationwide settlement to resolve all opioids litigation brought by states and local political subdivisions, with Michigan slated to receive approximately $776.0 million over 18 years. Public Acts 83 through 85 of 2022 created the Michigan Opioid Healing and Recovery Fund to receive the settlement's proceeds and prohibit political subdivisions from commencing or maintaining legal actions against these entities related to the settlement. In 2022, additional opioid settlements with pharmacies and manufacturers were announced, including Allergan, CVS, Teva, Walgreens, and Walmart. Disbursement of funds from the settlements have not yet begun; the four settlements are estimated to bring $450.0 million to the State.[1]

 

Legislative Analyst: Tyler P. VanHuyse

 

FISCAL IMPACT

 

The bill would have no fiscal impact on the State or local units of government. It would codify existing settlement agreements.

 

Fiscal Analyst: Michael Siracuse

 

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.

 



[1] "Opioid Settlement Resource Center", https://micounties.org/opioid-settlement-resource-center/ Retrieved on 10-17-23.

 

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This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.