H.B. 224
GENERAL ASSEMBLY OF NORTH CAROLINA
Feb 28, 2023
SESSION 2023 HOUSE PRINCIPAL CLERK
H D
HOUSE BILL DRH40107-MG-75
Short Title: Protect NC Opioid Settlement Payments. (Public)
Sponsors: Representative Sasser.
Referred to:
1 A BILL TO BE ENTITLED
2 AN ACT PROTECTING NATIONAL OPIOID SETTLEMENT PROCEEDS FOR NORTH
3 CAROLINA AND ITS UNITS OF LOCAL GOVERNMENT BY PROHIBITING THE
4 ASSERTION OF ANY RELEASED CLAIMS AGAINST ANY RELEASED ENTITIES
5 PURSUANT TO THE FINAL CONSENT JUDGMENTS RESOLVING THIS
6 LITIGATION.
7 The General Assembly of North Carolina enacts:
8 SECTION 1. Chapter 122C of the General Statutes is amended by adding a new
9 Article to read:
10 "Article 7.
11 "Legislative Release to Protect National Opioid Settlement Payments.
12 "§ 122C-470.2. Definitions.
13 Definitions. – The following definitions apply in this Article:
14 (1) Initial Opioid Consent Judgments. – The final consent judgments, including
15 all exhibits, resolving the following cases in the General Court of Justice,
16 Superior Court Division, Wake County:
17 a. State of North Carolina, ex rel. Joshua H. Stein, Attorney General v.
18 McKesson Corporation; Cardinal Health, Inc.; and
19 AmerisourceBergen Corporation, No. 22CV4020.
20 b. State of North Carolina, ex rel. Joshua H. Stein, Attorney General v.
21 Johnson & Johnson; Janssen Pharmaceuticals, Inc.;
22 Ortho-McNeil-Janssen Pharmaceuticals, Inc.; and Janssen
23 Pharmaceutica, Inc., No. 22CV4244.
24 (2) Initial Released Claim. – Any claim defined as Released Claims in the Initial
25 Opioid Consent Judgments.
26 (3) Initial Released Entity. – Any entity defined as Released Entities in the Opioid
27 Consent Judgments, including Johnson & Johnson, Janssen Pharmaceuticals,
28 Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., Janssen Pharmaceutica,
29 Inc., McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen
30 Corporation.
31 (4) Initial Settling Opioid Defendants. – Johnson & Johnson, Janssen
32 Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., Janssen
33 Pharmaceutica, Inc., McKesson Corporation, Cardinal Health, Inc., and
34 AmerisourceBergen Corporation.
35 (5) State. – The State of North Carolina and includes every public office, public
36 officer or official (elected or appointed), institution, board, commission,
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1 bureau, council, department, or authority or other unit of government of the
2 State.
3 (6) Subsequent Opioid Settlement Agreements. – The national opioid settlement
4 agreement announced in November and December 2022, with the Subsequent
5 Settling Opioid Defendants.
6 (7) Subsequent Released Claim. – Any claim defined as Released Claims in the
7 Subsequent Opioid Settlement Agreements.
8 (8) Subsequent Released Entity. – Any entity defined as Released Entities in the
9 Subsequent Opioid Settlement Agreements, including Walmart, Inc., Teva
10 Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited,
11 CVS Health Corporation, CVS Pharmacy, Inc., and Walgreen Co.
12 (9) Subsequent Settling Opioid Defendants. – Walmart, Inc., Teva
13 Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited,
14 CVS Health Corporation, CVS Pharmacy, Inc., and Walgreen Co.
15 (10) Unit of Local Government. – Every public office, public officer or official
16 (elected or appointed), institution, board, commission, bureau, council,
17 department, or authority or other unit of government of any county, unit,
18 special district, or other political subdivision of government, including, but
19 not limited to, a county; city; consolidated city-county; local school
20 administrative unit; community college; area mental health, developmental
21 disabilities, and substance abuse authority; nonprofit corporation or
22 association operating or leasing a public hospital; public health authority;
23 water or sewer authority; metropolitan sewerage district; sanitary district;
24 county water and sewer district; metropolitan water district; metropolitan
25 water and sewerage district; airport authority; airport board or commission;
26 regional natural gas district; regional transportation authority; regional public
27 transportation authority; ferry transportation authority; a special district
28 created under Article 43 of Chapter 105 of the General Statutes; or any other
29 local or regional authority, district, board, commission, or administrative unit.
30 "§ 122C-470.4. Legislative findings.
31 The General Assembly makes the following findings:
32 (1) The opioid epidemic has taken the lives of more than 32,000 North
33 Carolinians, caused immeasurable suffering and harm, and imposed
34 substantial costs on the State, counties, municipalities, healthcare and social
35 service providers, residents, and others.
36 (2) The epidemic was fueled by misconduct on the part of the Initial Settling
37 Opioid Defendants and other companies engaged in the manufacture,
38 marketing, promotion, distribution, or dispensing of prescription opioid
39 medications.
40 (3) The State, through its Attorney General, engaged in investigations, litigation,
41 and settlement discussions involving the Initial Settling Opioid Defendants,
42 Subsequent Settling Opioid Defendants, and 76 counties and eight
43 municipalities, through their counsel, filed lawsuits against at least one of the
44 Initial Settling Opioid Defendants or Subsequent Settling Opioid Defendants
45 seeking to hold them accountable for the damage caused by their misconduct.
46 (4) On July 21, 2021, a national coalition of states and political subdivisions
47 announced agreements with the Initial Settling Opioid Defendants to resolve
48 legal claims against those companies stemming from actions that fueled the
49 opioid epidemic.
50 (5) The State, all 100 counties, and 47 municipalities in North Carolina have
51 formally joined the agreements with the Initial Settling Opioid Defendants.
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1 On March 11, 2022, all of North Carolina's litigating counties and
2 municipalities dismissed their lawsuits against the Initial Settling Opioid
3 Defendants. On April 6 and April 26, 2022, the General Court of Justice,
4 Superior Court Division, Wake County, entered the Initial Opioid Consent
5 Judgments making the agreements with the Initial Settling Opioid Defendants
6 effective in North Carolina.
7 (6) The Initial Opioid Consent Judgments provide for payments of up to
8 twenty-six billion dollars ($26,000,000,000) over 18 years, with more than
9 twenty-three billion nine hundred million dollars ($23,900,000,000) available
10 to fund state and local efforts to address the opioid epidemic nationwide.
11 (7) Pursuant to the Initial Opioid Consent Judgments, North Carolina's share of
12 the payments is up to approximately seven hundred fifty million dollars
13 ($750,000,000) over 18 years. North Carolina's share of the payments will be
14 distributed among the State and its Units of Local Government pursuant to a
15 Memorandum of Agreement, to which the State and more than 140 Units of
16 Local Government have agreed. The Memorandum of Agreement was
17 approved through the Initial Opioid Consent Judgments and establishes the
18 means by which payments will be distributed in North Carolina.
19 (8) In November and December 2022, a national coalition of states and political
20 subdivisions announced agreements with the Subsequent Settling Opioid
21 Defendants to resolve legal claims against those companies stemming from
22 actions that fueled the opioid epidemic.
23 (9) The settlements with the Subsequent Settling Opioid Defendants are
24 contingent on the participation of a critical mass of states and political
25 subdivisions. The State has formally notified all Subsequent Settling Opioid
26 Defendants of its intent to join the Subsequent Opioid Settlement Agreements.
27 Units of Local Government have an opportunity to formally join the
28 Subsequent Opioid Settlement Agreements in early 2023.
29 (10) The Subsequent Opioid Settlement Agreements provide for payments of up to
30 twenty billion four hundred million dollars ($20,400,000,000) over 15 years.
31 North Carolina's share of the payments is up to approximately six hundred
32 million dollars ($600,000,000). It is expected that North Carolina's share of
33 the payments will be distributed among the State and its Units of Local
34 Government pursuant to a supplemental agreement for additional funds, to
35 which the State has agreed, and which Units of Local Government have the
36 opportunity to approve in early 2023. This money is available to fund State
37 and local efforts to address the opioid epidemic nationwide.
38 (11) North Carolina and its Units of Local Government can secure the full one
39 billion three hundred fifty million dollars ($1,350,000,000) available under
40 the Initial Opioid Consent Judgments and Subsequent Opioid Settlement
41 Agreements only if opioid litigation in North Carolina asserting Initial
42 Released Claims against Initial Released Entities and Subsequent Released
43 Claims against Subsequent Released Entities comes to an end with no new
44 claims. Newly filed Initial Released Claims against Initial Released Entities,
45 or newly filed Subsequent Released Claims against Subsequent Released
46 Entities, would frustrate the purposes of the agreements, would put North
47 Carolina's share of the payments at risk, and would harm the people of North
48 Carolina, all Units of Local Government, and the State.
49 "§ 122C-470.6. Legislative intent.
50 It is the intent of this Article to prevent the assertion of Initial Released Claims and
51 Subsequent Released Claims against Initial Released Entities and Subsequent Released Entities
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1 by the State and its Units of Local Government, and thereby to help secure, on behalf of North
2 Carolina's Units of Local Government, the State, and the people of North Carolina, the full share
3 to which the State, its Units of Local Government, and its people are otherwise entitled under the
4 Initial Opioid Consent Judgments and the Subsequent Opioid Settlement Agreements.
5 "§ 122C-470.8. Prohibition on assertion of Released Claims against Released Entities.
6 Neither a Unit of Local Government nor the State may assert any Initial Released Claims
7 against Initial Released Entities, or any Subsequent Released Claims against Subsequent
8 Released Entities. Notwithstanding this section, the State, as expressly contemplated in the
9 Subsequent Opioid Settlement Agreements, may initiate civil actions asserting Subsequent
10 Released Claims against Subsequent Released Entities for the purpose of obtaining consent
11 judgments that effectuate the Subsequent Opioid Settlement Agreements, including the release
12 of such claims.
13 "§ 122C-470.10. Preservation of remedies.
14 This Article preserves all remedies the State or any Unit of Local Government may have
15 under the Initial Opioid Consent Judgments and Subsequent Opioid Settlement Agreements.
16 Nothing in this Article shall be construed to limit or otherwise affect such remedies."
17 SECTION 2. G.S. 122C-470.8 applies to all Initial Released Claims, as defined in
18 G.S. 122C-470.2, whether originally asserted before or after the effective date of this act.
19 SECTION 3. G.S. 122C-470.8 applies to all Subsequent Released Claims, as defined
20 in G.S. 122C-470.2, whether originally asserted before or after the effective date of this act,
21 except that G.S. 122C-470.8 does not apply to Subsequent Released Claims against Subsequent
22 Released Entities that were included in any lawsuits filed by a Unit of Local Government prior
23 to November 1, 2022. If the Subsequent Opioid Settlement Agreements with respect to all of the
24 Subsequent Settling Opioid Defendants are not entered as consent judgments by the Superior
25 Court of Wake County by December 31, 2023, then, beginning on January 1, 2024,
26 G.S. 122C-470.8 shall only apply to Subsequent Released Claims against Subsequent Released
27 Entities covered by a consent judgment approved by a North Carolina court of competent
28 jurisdiction.
29 SECTION 4. This act is effective when it becomes law.
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