HOUSE BILL REPORT

HB 2786

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Substitute Bill

Creates the Opioid Epidemic Response Advisory Council (Council).
Requires the Attorney General (AG) to appoint members to the Council.
Requires the AG to convene the Council to make recommendations to the Legislature on the distribution and use of penalties received as a result of litigation against an opioid manufacturer or distributor.

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 19 members: Representatives Ormsby, Chair; Robinson, 1st Vice Chair; Bergquist, 2nd Vice Chair; Chopp, Cody, Dolan, Fitzgibbon, Hudgins, Kilduff, Macri, Mosbrucker, Pettigrew, Pollet, Ryu, Senn, Springer, Sullivan, Tarleton and Tharinger.

Background:

The state Consumer Protection Act (CPA) prohibits unfair or deceptive acts or practices in trade or commerce. The Attorney General (AG) may bring a civil action on behalf of the state or persons residing in the state against persons and corporations who have violated the CPA, and petition for an award of the state's reasonable costs and attorney's fees, restitution for consumers, and civil penalties.

The AG has filed several lawsuits against manufacturers and distributors of opioids under the CPA and is involved in litigation against the following parties:

Purdue Pharma, an opioid manufacturer, beginning in 2017;
McKesson Corporation, Cardinal Health Incorporated, and AmerisourceBergen Drug Corporation, opioid distributors, beginning in 2019; and
Johnson & Johnson, an opioid manufacturer, beginning in 2020.

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Summary of Substitute Bill:

The Opioid Epidemic Response Advisory Council (Council) is created. The role of the Council is to advise the Legislature on the expenditure of financial penalties received by the state as a result of litigation against an opioid manufacturer or distributor relating to acts or omissions by the manufacturer or distributor that contributed to increased rates of opioid addition in the state.

The AG must appoint Council members to represent a range of groups, including certain types of health care providers, local governments, the judiciary, and individuals that meet certain conditions. The AG must also invite two tribal members to participate on the Council. The Department of Social and Health Services (DSHS), the Department of Health (DOH), the Health Care Authority (HCA), and the Department of Corrections (DOC) shall each appoint one nonvoting member to the Council.

Within 30 days of the state's receiving penalty revenues as a result of litigation against an opioid manufacturer or distributor, the AG shall convene the Council. The Council shall submit recommendations to the fiscal committees of the Legislature on how to expend the penalty revenue received.

Substitute Bill Compared to Original Bill:

The original bill required the Council to advise the Legislature on the expenditure of moneys received as a result of litigation, and to provide recommendations within 30 days of being convened. The substitute bill specifies that the Council will advise the Legislature on the expenditure of penalties received, and removes the requirement to provide recommendations within 30 days of being convened.

The substitute bill adds additional members to the Council to represent nurses, children of addicted parents, Boys and Girls Clubs, and a statewide substance abuse prevention organization, and requires the HCA to appoint one nonvoting member to the council in addition to the DSHS, the DOH, and the DOC.

Staff Summary of Public Testimony:

(In support) This bill addresses a concern around how the state should use funds received as a result of litigation against opioid manufacturers and distributors in a way that will address the opioid crisis and serve victims of the epidemic. Opioid addiction can have devastating consequences for victims and their families, including separation and death. This includes the children of parents who have an opioid addiction. State-funded programs for addiction treatment can make a significant impact, but are not easily accessible. The Council will help make the most of financial penalties paid by opioid manufacturers and distributors, and ensure they are distributed to have the greatest impact possible, such as funding additional addiction treatment programs. The number of Council members will bring a range of experiences and viewpoints to the decision-making process.

Substance abuse prevention organizations support the bill and its approach. Because the Council will discuss options to fund prevention activities, prevention organizations would like to see a representative from a statewide substance abuse prevention organization on the Council.

(Opposed) None.