Signed by Governor Tony Evers

Vote Smart's Synopsis:

Vote to pass a bill that establishes guidelines to potential opioid settlement disbursement to state counties.

Highlights:

• Requires the attorney general to cooperate with local governments in the state that are parties in the opiate litigation in entering into a joint settlement agreement of the legal or equitable claims of the state, and the claims of local governments regarding opioids with any person that has engaged in the manufacture, marketing, promotion, distribution, or dispensing of an opioid product, including any person named as a defendant in the opiate litigation, if all of the following are satisfied (Sec. 1-2):

• The joint committee on finance approves the proposed settlement agreement;

• The settlement agreement or any document that effectuates the settlement identifies 30 percent of the settlement proceeds as payable to the state; and

• The settlement agreement or any document that effectuates the settlement identifies 70 percent of the settlement proceeds as payable to local governments in the state that are parties in the opiate litigation.

• Specifies if the Department of Health Services seeks to deviate from the expenditure proposal during the fiscal year for which the expenditure proposal applies, the department will submit to the joint committee on finance a proposal for the deviation (Sec. 1-3).

• Requires a local government that receives moneys payable to a local government to deposit the moneys in a segregated account that is subject to all of the following (Sec. 1-4.b):

• Moneys in the segregated account are considered moneys of the local government and may not be commingled with any other moneys of the local government;

• A local government may expend moneys of the segregated account solely for purposes identified as approved uses for abatement in the settlement agreement or by court order;

• A local government may not use moneys from the segregated account to substitute for budgeted moneys from the other sources;

• A local government may allocate moneys from the segregated account to any other political subdivision in the state if there is an agreement requiring the other political subdivision to expend the moneys;

• Local governments may combine moneys from their segregated accounts if each local government conforms to the reporting requirement; and

• A local government will include the segregated account in the local government's typical audit process.

• Specifies if a separate fund created in a settlement agreement for the opiate litigation is insufficient to pay the entire amount of attorney fees and expenses owed by local governments, a local government can use a portion of the amounts payable to local governments to supplement amounts owed by the local government for attorney fees and expenses. The state has no responsibility for payment of a local government's attorney fees or expenses, and those local government attorney fees or expenses may not be paid from the amounts payable to the state (Sec. 1-6).

• Prohibits a political subdivision of the state, or an officer or agent of any political subdivision of the state, that was not a party as of June 1, 2021, to the opiate litigation from doing any of the following (Sec. 1-7.b):

• Maintain a claim to proceeds of any settlement agreement; and

• Maintain any claim or commence any action related to opioids against a person that is identified as a party defendant in the opiate litigation that would be released in a settlement agreement if the political subdivision, officer, or agent was a party to a settlement agreement.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that establishes guidelines to potential opioid settlement disbursement to state counties.

Highlights:

• Requires the attorney general to cooperate with local governments in the state that are parties in the opiate litigation in entering into a joint settlement agreement of the legal or equitable claims of the state, and the claims of local governments regarding opioids with any person that has engaged in the manufacture, marketing, promotion, distribution, or dispensing of an opioid product, including any person named as a defendant in the opiate litigation, if all of the following are satisfied (Sec. 1-2):

• The joint committee on finance approves the proposed settlement agreement;

• The settlement agreement or any document that effectuates the settlement identifies 30 percent of the settlement proceeds as payable to the state; and

• The settlement agreement or any document that effectuates the settlement identifies 70 percent of the settlement proceeds as payable to local governments in the state that are parties in the opiate litigation.

• Specifies if the Department of Health Services seeks to deviate from the expenditure proposal during the fiscal year for which the expenditure proposal applies, the department will submit to the joint committee on finance a proposal for the deviation (Sec. 1-3).

• Requires a local government that receives moneys payable to a local government to deposit the moneys in a segregated account that is subject to all of the following (Sec. 1-4.b):

• Moneys in the segregated account are considered moneys of the local government and may not be commingled with any other moneys of the local government;

• A local government may expend moneys of the segregated account solely for purposes identified as approved uses for abatement in the settlement agreement or by court order;

• A local government may not use moneys from the segregated account to substitute for budgeted moneys from the other sources;

• A local government may allocate moneys from the segregated account to any other political subdivision in the state if there is an agreement requiring the other political subdivision to expend the moneys;

• Local governments may combine moneys from their segregated accounts if each local government conforms to the reporting requirement; and

• A local government will include the segregated account in the local government's typical audit process.

• Specifies if a separate fund created in a settlement agreement for the opiate litigation is insufficient to pay the entire amount of attorney fees and expenses owed by local governments, a local government can use a portion of the amounts payable to local governments to supplement amounts owed by the local government for attorney fees and expenses. The state has no responsibility for payment of a local government's attorney fees or expenses, and those local government attorney fees or expenses may not be paid from the amounts payable to the state (Sec. 1-6).

• Prohibits a political subdivision of the state, or an officer or agent of any political subdivision of the state, that was not a party as of June 1, 2021, to the opiate litigation from doing any of the following (Sec. 1-7.b):

• Maintain a claim to proceeds of any settlement agreement; and

• Maintain any claim or commence any action related to opioids against a person that is identified as a party defendant in the opiate litigation that would be released in a settlement agreement if the political subdivision, officer, or agent was a party to a settlement agreement.

Full Bill Text