SETTLEMENTS; OPIOID LIABILITY ACT S.B. 592:

SUMMARY OF BILL

REPORTED FROM COMMITTEE

Senate Bill 592 (as reported without amendment)

Sponsor: Senator Rosemary Bayer

Committee: Civil Rights, Judiciary, and Public Safety

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.

MCL 691.1672 & 691.1673

BRIEF RATIONALE

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 93 through 95 of 2022 created the Michigan Opioid Healing and Recovery Fund to receive the settlement's proceeds and prohibited political subdivisions from commencing or maintaining legal actions against these entities related to the settlement; according to testimony, the prohibition helps ensure that Michigan receives all the settlements' proceeds. In 2022, additional opioid settlements with pharmacies and manufacturers were announced. It has been recommended that the prohibition against a political subdivision commencing legal actions also apply to these settlements.

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.

Date Completed: 10-23-23 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.