2023 Indiana Code › Title 4. State Offices and Administration › Article 6. Attorney General › Chapter 15. Opioid Litigation and Settlements › 4-6-15-4. Distribution of Funds Received From Litigation Settlement; Use of Funds

Sec. 4. (a) Except as provided by any bankruptcy court order or bankruptcy settlement, and subject to subsection (g), funds received from opioid litigation settlements that resolve existing state and political subdivision litigation lawsuits as of January 1, 2021, shall be distributed in a minimum of two (2) payments per year in the following manner:
(1) Fifteen percent (15%) to the state unrestricted opioid settlement account established by IC 4-12-16.2-5(1) for the benefit of the state.
(2) Fifteen percent (15%) to the local unrestricted opioid settlement account established by IC 4-12-16.3-5(1) for distribution as reimbursement to cities, counties, and towns according to a weighted distribution formula identified in settlement documents that accounts for opioid impacts in communities.
(3) Thirty-five percent (35%) to the state abatement opioid settlement account established by IC 4-12-16.2-5(2) to be used for statewide treatment, education, and prevention programs for opioid use disorder and any co-occurring substance use disorder or mental health issues as defined or required by the settlement documents or court order.
(4) Thirty-five percent (35%) to the local abatement opioid settlement account established by IC 4-12-16.3-5(2) for distribution to cities, counties, and towns according to a weighted distribution formula identified in settlement documents that accounts for opioid impacts in communities. However, if a city's or town's annual distribution under this subdivision is:
(A) for a distribution made before July 1, 2023, less than one thousand dollars ($1,000); or
(B) for a distribution made after June 30, 2023, less than five thousand dollars ($5,000);
the city's or town's annual distribution must instead be distributed to the county in which the city or town is located. Distributions under this subdivision may be used only for programs of treatment, prevention, and care that are best practices as defined or required by the settlement documents or court order.
(b) Any attorney's fees or costs required to be paid by the state, including any amount in a settlement designated for payment of state attorney's fees or costs, shall be deducted from the distribution described in subsection (a)(1), even if the funds have not been deposited in the agency settlement fund.
(c) The amounts distributed under subsection (a)(2) and (a)(4) are annually appropriated to the office of the attorney general to make the distributions described under subsection (a)(2) and (a)(4).
(d) Funds received from the settlement may not be distributed to a city, county, or town that has opted out of the settlement under section 2(b) of this chapter. The settlement funds that are not distributed to the cities, counties, or towns that have opted out of the settlement must be distributed in the manner set forth under subsection (a)(2) and (a)(4) to the cities, counties, or towns that have opted into the settlement.
(e) All entities receiving opioid settlement funds shall monitor the use of those funds and provide an annual report to the office of the secretary of family and social services not later than a date determined by the office of the secretary of family and social services.
(f) The office of the secretary of family and social services shall compile and submit an annual comprehensive report of the information received under subsection (e) to the general assembly in an electronic format under IC 5-14-6 not later than October 1 of each year identifying all funds committed and used as specified by any settlement documents or court order.
(g) If any settlement documents or court order, assurance of voluntary compliance, or other form of agreement related to opioids requires at least seventy percent (70%) of the settlement proceeds to be used for treatment, education, recovery, or prevention programs, any amount of settlement funds in addition to those distributed under subsection (a)(3) and (a)(4) that are needed to meet the terms must first come from funds that would otherwise be distributed under subsection (a)(1).
(h) Any city, county, or town receiving a distribution under subsection (a)(2) or (a)(4) may transfer all or part of its distribution to another city, county, or town to be used for the benefit of both communities.
(i) Upon a majority vote of the legislative body, a city, county, or town receiving a distribution under subsection (a)(2) or (a)(4) may sell for cash or other consideration the right to receive the distribution. However, the proceeds from the sale of a distribution received under subsection (a)(2) must be used for the purposes allowed for a distribution under subsection (a)(2), and the proceeds from the sale of a distribution received under subsection (a)(4) must be used for the purposes allowed for a distribution under subsection (a)(4). A city, county, or town may pledge, grant a lien on, or grant a security interest in a distribution to effectuate a sale under this subsection. The legislative body's approval of the sale is conclusive as to the adequacy of the consideration for the sale.
As added by P.L.165-2021, SEC.36. Amended by P.L.72-2022, SEC.3; P.L.201-2023, SEC.58.