OPIOID SETTLEMENT LITIGATION           S.B. 616:

        SUMMARY OF BILL

        REPORTED FROM COMMITTEE

 

 

 

 

 

 

Senate Bill 616 (as reported without amendment)

Sponsor: Senator Sylvia Santana

Committee: Civil Rights, Judiciary, and Public Safety

 

 

CONTENT

 

The bill would amend the Opioid Litigation Act to prohibit a political subdivision of the State from commencing or maintaining an action related to released claims in specific settlements.

MCL 691.1672 & 691.1673         

 

BRIEF RATIONALE

 

The settlements specified in the bill are parts of multiple national settlements related to the manufacture and sale of opioids during the opioid epidemic.¹ The Mylan, Hikma, Amneal, Apotex, Indivior, Sun, Alvogen, and Zydus settlements are worth a total of $720.0 million, and all settlors agreed to a sign-on period for Michigan local governments in which these political subdivisions can claim compensation under the settlements.² The Kroger settlement is worth $1.2 billion, and local governments had the opportunity to register to receive funds until August 12, 2024.³ Finally, the Purdue settlement is worth $7.4 billion and afforded the State and local governments time to join and receive compensation under it.⁴ Testimony indicates that law prohibiting political subdivisions from commencing or maintaining an action related to these released claims as proposed by the bill is necessary to ensure that the State and political subdivisions receive the full settlement funds.

 

        Legislative Analyst: Tyler VanHuyse

 

FISCAL IMPACT

 

The bill's language would prohibit further claims arising out of actions that have already been litigated, and so no fiscal impact on courts or the Attorney General is anticipated. The bill would have no immediate fiscal impact on State or local government. The settlement agreements, and the formulas for determining State shares of settlement payments, can be found on the National Opioid Settlement website. These formulas include base-level and incentive-level payments to states and local governments. The incentives are achieved by making efforts to end litigation and prohibit future claims. Enacting the bill would allow the State and local governments that have settled to receive full incentives under the settlement payment plans.

 

Date Completed: 11-14-25        Fiscal Analyst: Bobby Canell; Michael Siracuse

floor\sb616                Bill Analysis @ www.senate.michigan.gov/sfa

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.