Add §99-nn, amd §4, St Fin L; add §25.18, amd §19.07, Ment Hyg L; amd §63, Exec L
Requires all funds received by the state as the result of a settlement or a judgement in litigation against opioid manufacturers, distributors, dispensers, consultants or resellers shall be deposited into the opioid settlement fund, and that such funds shall not supplant or replace existing state funding.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A6395B
SPONSOR: Woerner TITLE OF BILL:
An act to amend the state finance law, the mental hygiene law, and the
executive law, in relation to establishing an opioid settlement fund
PURPOSE:
To establish an opioid settlement fund for future opioid settlement
agreement monies.
SUMMARY OF PROVISIONS:
Section one of the bill establishes the Opioid Settlement Fund. The fund
will consist of all monies received by the state as a result of the
settlement of litigation with entities that manufactured, sold, distrib-
uted or promoted opioids. It would also ensure such money is used to
supplement, not supplant, any federal or state funds to be used for the
purpose of substance use disorder prevention, treatment or recovery
services or programs. Funds will be appropriated by the legislature and
would only be spent on eligible expenditures, consistent with the opioid
settlement agreement, including but not limited to, substance use disor-
der prevention, treatment and recovery programs; treatment programs for
co-occurring mental illnesses; and public education campaigns. In addi-
tion to programs and services overseen by the Office of Addiction
Services and Supports, it would also allow for funding to be expended on
programs and services overseen by the Department of Health, the Office
of Mental Health, the Division of Housing and Community Renewal or any
other agency that may oversee an appropriate service or program.
Section two of the bill defines essential terms consistent with the
statewide opioid settlement agreement and establishes the Opioid Advi-
sory Board. The advisory board will consist of the Commissioners of
Addiction Services and Supports, Mental Health, and Health, or their
designees, serving as ex-officio, non-voting members; two appointments
by the Governor; two appointments by the Temporary President of the
Senate; two appointments by the Speaker of the Assembly; on appointment
by the Attorney General; one appointment by the Mayor of New York City;
and seven appointments from a list of nominees submitted by an associ-
ation of counties. The purpose of the advisory board is to make recom-
mendations to the Legislature on how settlement funds should be allo-
cated. Additionally, this section would require the Commissioner of
Addiction Services and Supports to submit a report to the Governor and
the Legislature and additional recipients that would outline the base-
line funding for any entity that receives funding from the opioid
settlement fund and the utilization of allocated funds from the preced-
ing calendar year. Language was included to prohibit government enti-
ties from filing any future released claims filed on or after June 1st,
2021 against entities involved in the statewide opioid settlement agree-
ment executed by the State Department of Law. Additionally, language was
included to extinguish any released claim filed by a government entity
against an opioid manufacturer, distributor, or dispenser named in the
statewide opioid settlement agreement after June 30th, 2019 after being
released by the department of law.
Section three of the bill requires the Office of Addiction Services and
Supports in consultation with the Office of Mental Health, the Depart-
ment of Health, the Division of Housing and Community Renewal and any
other agency that may oversee an appropriate program or service, to
ensure monitoring of the allocation of funds.
Section four ensures that funds received by the State through opioid
settlement agreements can be expended by State Agencies.
Section five excludes funds received by the State through opioid settle-
ment agreements from being deposited into the State's General Fund.
Section six establishes the effective date.
JUSTIFICATION:
In an effort to hold accountable those that manufactured, distributed,
sold or promoted opioids leading to the ongoing opioid epidemic, New
York, along with other states and localities, have brought a number of
lawsuits and other legal actions against such entities. The goal of the
various legal actions is to seek financial compensations from those that
helped to create the opioid epidemic, to be used to assist the State in
combating substance use disorder. As a result, New York is slated to
receive millions of dollars from opioid manufactures and distributors.
To secure such future funds, this bill creates an Opioid Settlement
Fund. It would ensure that all future funding allocations would only be
used for approved purposes including substance use disorder prevention,
treatment and recovery programs; treatment programs for co-occurring
mental illnesses; and public education campaigns to combat the ongoing
epidemic. It would also ensure that no future funding would be used to
supplant or replace any current local, state or federal funds that would
be used for the purpose of substance use disorder prevention, treatment
or recovery services and programs.
LEGISLATIVE HISTORY:
A. 6395-A (Woerner) Reported, Referred to Codes
A. 6395 (Woerner) Referred to Alcoholism and Drug Abuse
FISCAL IMPLICATIONS:
To be determined.
EFFECTIVE DATE:
This act shall take effect immediately.
