Bill Text: NY S06683 | 2021-2022 | General Assembly | Introduced
Bill Title: Provides for implementation of statewide opioid settlement agreements; creates an opioid settlement fund.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2022-01-05 - REFERRED TO FINANCE [S06683 Detail]
Download: New_York-2021-S06683-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 6683 2021-2022 Regular Sessions IN SENATE May 11, 2021 ___________ Introduced by Sens. RIVERA, HARCKHAM -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT to amend the mental hygiene law, the state finance law and the executive law, in relation to implementing statewide opioid settlement agreements and creating an opioid settlement fund The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. The mental hygiene law is amended by adding a new article 2 26 to read as follows: 3 ARTICLE 26 4 STATEWIDE OPIOID SETTLEMENT AGREEMENTS 5 Section 26.01 Definitions. 6 26.02 Implementation. 7 26.03 Limitation on authority of government entities to bring 8 lawsuits. 9 § 26.01 Definitions. 10 As used in this article, the following terms shall have the following 11 meanings: 12 1. "Advisory board" means an advisory board established within the 13 office of addiction services and supports pursuant to section 26.02 of 14 this article. 15 2. "Approved uses" means any substance use disorder related services, 16 supports, or programs including but not limited to substance use educa- 17 tion and prevention campaigns, prevention services, treatment programs 18 with an emphasis on medications to treat substance use disorder, harm 19 reduction interventions, crisis services, treatment for co-occurring 20 mental health disorders, housing services, programs that assist those 21 involved in the criminal legal system, community-based services for 22 pregnant women and babies with neonatal abstinence syndrome and to 23 assist local governments with services and expenses of providing correc- 24 tional facility-based substance use disorder treatment with an emphasis EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD11121-03-1S. 6683 2 1 on medications to treat substance use disorder and transition services 2 programs and related services, or other programs that are consistent 3 with the list of uses defined in any statewide opioid settlement agree- 4 ment. 5 3. "Commissioner" means the commissioner of the New York state office 6 of addiction services and supports. 7 4. "Direct share subdivision" means every county of New York outside 8 the city of New York and Nassau and Suffolk counties. 9 5. "Government entity" means (a) departments, agencies, divisions, 10 boards, commissions and/or instrumentalities of the state of New York 11 excepting the department of law, and including, notwithstanding any law 12 to the contrary, the department of financial services, the superinten- 13 dent of the department of financial services, and the New York liqui- 14 dation bureau, and (b) any governmental subdivision within the bounda- 15 ries of the state of New York, including, but not limited to, counties, 16 municipalities, districts, towns and/or villages, and any of their 17 subdivisions, special districts and school districts, and any depart- 18 ment, agency, division, board, commission and/or instrumentality there- 19 of. 20 6. "New York subdivisions" means each county, city, town, village, or 21 special district in the state of New York. 22 7. "Participating entities" means participating entities as such term 23 is defined in any statewide opioid settlement agreement. 24 8. "Opioid settlement fund" means the fund created by the statewide 25 opioid agreements and section ninety-seven-bbbbb of the state finance 26 law, the funds of which shall be used or distributed by the commissioner 27 for the purposes of preventing addiction and reducing the harms caused 28 by the overdose and substance use disorder epidemic consistent with the 29 terms of any statewide opioid settlement agreement. 30 9. "Released claims" means released claims as that term is defined in 31 the statewide opioid settlement agreements. 32 10. "Released entities" means released entities as such term is 33 defined in the statewide opioid settlement agreements. 34 11. "Statewide opioid settlement agreements" means agreements of 35 statewide applicability, including but not limited to consent judgments, 36 consent decrees filed or unfiled, and related agreements or documents 37 between the state represented by the department of law, and certain 38 opioid manufacturers, distributors, dispensers, consultants, chain phar- 39 macies, related entities, and/or the New York subdivisions, to provide 40 remuneration for conduct related to the manufacture, promotion, dispens- 41 ing, sale, and/or distribution of opioid products. Copies of such agree- 42 ments, including any amendments thereto, shall be kept on file by the 43 attorney general, who shall make such available for inspection and copy- 44 ing pursuant to the provisions of article six of the public officers 45 law. 46 § 26.02 Implementation. 47 1. Powers and duties. (a) Each year the commissioner, in consultation 48 with the commissioner of health, the commissioner of the office of 49 mental health, and any other agency that provides or regulates approved 50 uses, shall allocate funds contained within the opioid settlement fund, 51 established pursuant to section ninety-seven-bbbbb of the state finance 52 law, consistent with and subject to the terms of any statewide opioid 53 settlement agreement. Each New York subdivision shall, as a condition of 54 the receipt of such funds, certify at the end of each fiscal year for 55 which it receives such funds that all funds provided to it under this 56 provision of the agreements were spent on projects and programs thatS. 6683 3 1 constitute approved uses and provided that such New York subdivision 2 complies with the reporting requirements set forth in this article. 3 (b) Each year the commissioner, in consultation with the commissioner 4 of health, the commissioner of the office of mental health, and any 5 other state agency that provides or regulates approved uses, shall set 6 aside funds, consistent with the terms of any statewide opioid settle- 7 ment agreements, for spending to: (i) fund state projects that consti- 8 tute approved uses, and (ii) carry out the duties of the office of 9 addiction services and supports and advisory board under this article, 10 including oversight and administration of the opioid settlement fund and 11 the advisory board. No more than two percent of funds received by the 12 state that are required by any statewide opioid settlement agreement to 13 be used for approved uses may be used in any fiscal year for oversight 14 and administrative costs for the opioid settlement fund and the advisory 15 board. 16 (c) The commissioner shall, to the extent possible, allocate funds 17 from the opioid settlement fund, to support programs that are 18 culturally, linguistically, and gender competent, trauma-informed, 19 evidence-based and, where appropriate, employ individuals with lived 20 experience as part of the services provided. Monies allocated by the 21 settlement fund shall also be used to reduce disparities in health 22 outcomes and to address harmful social determinants of health for under- 23 served individuals and communities, including racial and ethnic minori- 24 ties. 25 (d) The commissioner, in consultation with the commissioner of health, 26 the commissioner of the office of mental health, and any other state 27 agency that provides or regulates approved uses, and with the advice and 28 consent of the advisory board, shall have the ability to amend the list 29 of approved uses to add or remove approved uses at specified intervals 30 in response to changing substance use disorder needs in the state. Cate- 31 gories and subcategories may be added or removed from the list of 32 approved uses only with the approval of not less than three-fourths of 33 the members of the advisory board. 34 2. Rule promulgation. The commissioner, in consultation with the 35 commissioner of health, the commissioner of the office of mental health, 36 and any other state agency that provides or regulates approved uses, may 37 issue rules and regulations necessary to effectuate the requirements of 38 this section. 39 3. Oversight and auditing. The commissioner, in consultation with the 40 commissioner of health, the commissioner of the office of mental health, 41 and any other state agency that provides or regulates approved uses, 42 shall engage in oversight and audits of services, supports, and programs 43 funded through the opioid settlement fund. 44 4. Reporting requirements. (a) Consistent with and subject to any 45 statewide opioid settlement agreement, each New York subdivision that 46 receives funds from the opioid settlement fund under any statewide 47 opioid settlement agreements shall annually provide to the office of 48 addiction services and supports a detailed accounting of the spending of 49 such funds required by any statewide opioid settlement agreement to be 50 used for approved uses as well as analysis and evaluation of the 51 services, supports and programs it has funded. Such accounting shall be 52 provided on or before November first each year. The office of addiction 53 services and supports may withhold future funds from any New York subdi- 54 vision that is delinquent in providing such reporting, until the 55 required report is submitted.S. 6683 4 1 (b) The commissioner shall annually provide the speaker of the assem- 2 bly and the temporary president of the senate a detailed accounting of 3 the spending of all monies in the opioid settlement fund, any spending 4 by the direct share subdivisions, any spending by New York city and 5 Nassau and Suffolk counties, as well as an analysis and evaluation of 6 the services, supports and programs funded. The evaluation shall 7 include a disparity impact analysis using local data to identify racial 8 and ethnic minorities at highest risk for health disparities, low health 9 literacy, and currently or historically underserved by existing 10 substance use disorder and co-occurring disorder treatment services. 11 This accounting shall be provided on or before February first each year. 12 In consultation with the advisory board, the commissioner shall also 13 report annually the results of research funded by funds from these 14 agreements, the status of any outstanding audits, and the non-binding 15 recommendations of the advisory board. 16 5. Advisory board. There is hereby established within the office of 17 addiction services and supports an advisory board on addressing the 18 overdose and substance use disorder epidemic consisting of nineteen 19 members. The board shall appoint a member as chairperson by majority 20 vote. Each member of the advisory board shall have one vote, with all 21 actions being taken by an affirmative vote of the majority of present 22 members. 23 (a) Appointments to the advisory board. The board shall consist of the 24 commissioner of the office of addiction services and supports or his or 25 her designee; the commissioner of health or his or her designee; the 26 commissioner of the office of mental health or his or her designee; two 27 members appointed by the governor; two members appointed by the attorney 28 general; one member appointed by the mayor of the city of New York; two 29 members appointed by the temporary president of the senate; and two 30 members appointed by the speaker of the assembly. The remaining seven 31 members shall be appointed from a list of nominees submitted by the New 32 York state association of counties, as follows: two from the governor, 33 one from the attorney general, two from the temporary president of the 34 senate, and two from the speaker of the assembly. Such appointments 35 shall be made no later than sixty days after the effective date of this 36 article. Advisory board membership shall include persons, to the extent 37 practicable, who have expertise or experience, and/or education in 38 public health policy and research, board certification in addiction 39 medicine or addiction psychiatry, substance use disorder and addiction 40 prevention and treatment, mental health services, harm reduction, recov- 41 ery services, public budgeting, and to the extent practicable shall also 42 include individuals with lived experience with substance use disorder 43 including those receiving medication to treat substance use disorder, 44 and also include representatives of communities that have been dispro- 45 portionately impacted by the enforcement and criminalization of 46 addiction and the historic approaches to preventing and treating 47 substance use. Additionally, the membership of the board shall be repre- 48 sentative of the racial and ethnic demographics of the state and reflect 49 the geographic regions of the state. Each member shall be appointed to 50 serve three-year terms and in the event of a vacancy, the vacancy shall 51 be filled in the manner of the original appointment for the remainder of 52 the term. 53 (b) Meetings of the advisory board. The advisory board shall hold no 54 fewer than six public meetings annually, to be publicized and located in 55 a manner reasonably designed to facilitate attendance by residents 56 throughout the state. The advisory board shall function in a mannerS. 6683 5 1 consistent with New York's open meetings law, and with the Americans 2 with disabilities act. A majority of the appointed voting membership of 3 the advisory board shall constitute a quorum. 4 (c) Payment and ethics. Members of the advisory board shall receive no 5 compensation but shall be reimbursed for reasonable expenses. The 6 members of the advisory board and all staff shall be subject to the 7 applicable provisions of the public officers law. Members of the board 8 shall not take any action to direct funding from the opioid settlement 9 fund to any entity in which the member or their family members have any 10 interest, direct or indirect, or receive any commission or profit what- 11 soever, direct or indirect. Each such member of the board shall recuse 12 themselves from any discussion or vote relating to such interest. 13 (d) Staff and administration. The office of addiction services and 14 supports and any other agency that provides or regulates approved uses 15 shall provide staff to assist with the functions of the advisory board. 16 (e) Responsibilities. The advisory board shall make evidence-based 17 recommendations regarding specific opioid settlement priorities and 18 expenditures from the opioid settlement fund. In carrying out its obli- 19 gations to provide such recommendations, the advisory board may consider 20 local, state and federal initiatives and activities related to educa- 21 tion, prevention, treatment, harm reduction, recovery, and other 22 services and programs for individuals and families experiencing and 23 affected by substance use disorder; recommend statewide or regional 24 priorities to address the state's overdose and substance use disorder 25 epidemic; recommend statewide or regional funding with respect to 26 specific programs or initiatives; recommend measurable outcomes to 27 determine the effectiveness of funds expended for approved uses; and 28 monitor the level of permitted administrative expenses. Such recommen- 29 dations shall also take into account where gaps in access to current 30 services included in the list of approved uses currently exist and how 31 to best fill such gaps, including through partnerships between various 32 subdivisions and entities in order to create a comprehensive system of 33 services and care. To the extent the commissioner chooses not to follow 34 a recommendation of the advisory board, he or she shall make publicly 35 available, within fourteen days after such decision is made, a written 36 explanation of the reasons for the decision and allow fourteen days for 37 the advisory board to respond to such public explanation. 38 Additionally, the advisory board shall be responsible for overseeing 39 and reporting on services, supports and programs related to addressing 40 the overdose and substance use disorder epidemic, developing priorities, 41 goals and recommendations for spending on such projects and programs, 42 working with the department of health to develop measurable outcomes for 43 such projects and programs, and making recommendations for policy chang- 44 es and research to fund and oversee other projects and programs related 45 to addressing the overdose and substance use disorder epidemic, includ- 46 ing for outside grants. 47 § 26.03 Limitation on authority of government entities to bring 48 lawsuits. 49 No government entity shall have the authority to assert released 50 claims against entities released by the state department of law in a 51 statewide opioid settlement agreement executed by the state department 52 of law and the released party on or after March twelfth, two thousand 53 twenty-one. Any action filed by a government entity after June first, 54 two thousand nineteen asserting released claims against a manufacturer 55 or distributor of opioid products shall be extinguished by operation of 56 law upon being released by the department of law.S. 6683 6 1 § 2. The state finance law is amended by adding a new section 97-bbbbb 2 to read as follows: 3 § 97-bbbbb. Opioid settlement fund. 1. There is hereby established in 4 the joint custody of the comptroller and the commissioner of taxation 5 and finance a special fund to be known as the opioid settlement fund. 6 Notwithstanding subdivision eleven of section four of this chapter or 7 any law to the contrary, such fund shall consist of all moneys received 8 by the state represented by the department of law, as a result of the 9 settlement of litigation with opioid manufacturers, distributors, 10 dispensers, consultants, chain pharmacies, and related entities made in 11 connection with claims arising from the manufacture, promotion, dispens- 12 ing, sale, and/or distribution of opioid products, as well as any funds 13 received by the state represented by the department of law as a result 14 of a judgment, stipulation, decree, agreement to settle, assurance of 15 discontinuance, or other legal instrument resolving any claim or cause 16 of action against manufacturers, distributors, dispensers, consultants, 17 chain pharmacies, and related entities arising out of activities alleged 18 to have contributed to increases in opioid addiction, whether filed or 19 unfiled, actual or potential, and whether arising under common law, 20 equity, or any provision of law, and all other moneys appropriated, 21 credited, or transferred thereto from any other fund or source pursuant 22 to law. Such moneys shall include, but not be limited to, funds 23 received by the state for a state abatement fund as defined in any 24 statewide opioid settlement agreement. 25 2. Notwithstanding the provisions of subdivision eleven of section 26 four of this chapter or any law to the contrary, the moneys in such fund 27 shall only be appropriated or transferred consistent with the terms of 28 any statewide opioid settlement agreements and pursuant to this chapter. 29 Moneys of the fund may be suballocated or transferred to any other agen- 30 cy or department, or New York subdivision or government entity as 31 defined in section 26.01 of the mental hygiene law for expenditure in 32 accordance with such settlement agreement terms. Such moneys in the 33 fund shall only be used for approved uses that are consistent with the 34 terms of the statewide opioid settlement agreements and approved uses as 35 defined pursuant to this chapter unless otherwise specified by such 36 statewide opioid settlement agreements. Such moneys received by the 37 state represented by the department of law that are required by any 38 statewide opioid settlement agreement to be used for approved uses shall 39 be used to supplement, and not supplant or replace, the level of federal 40 or state funds expended for substance use disorder services, and such 41 moneys shall be used exclusively for the purpose of funding the expan- 42 sion or sustaining of existing services and workforce, and/or establish- 43 ing new services and supports. 44 3. The moneys when allocated, shall be paid out of the fund on the 45 audit and warrant of the comptroller on vouchers certified or approved 46 by the commissioner of the office of addiction services and supports, or 47 by an officer or employee of the office of addiction services and 48 supports designated by the commissioner, in consultation with the advi- 49 sory board established by section 26.02 of the mental hygiene law and 50 consistent with the terms of the statewide opioid settlement agreements. 51 4. On or before February first each year, the commissioner of the 52 office of addiction services and supports shall provide a written report 53 to the governor, temporary president of the senate, speaker of the 54 assembly, chair of the senate finance committee, chair of the assembly 55 ways and means committee, chair of the senate committee on health, chair 56 of the assembly health committee, chair of the senate committee on alco-S. 6683 7 1 holism and substance abuse, chair of the assembly committee on alcohol- 2 ism and drug abuse, chair of the senate committee on mental health, 3 chair of the assembly committee on mental health and the state comp- 4 troller. Such report shall be made publicly available on the office of 5 addiction services and supports and the department of health's website. 6 Such report shall include how the moneys of the fund were utilized 7 during the preceding calendar year, and shall include: 8 (i) the amount of money dispersed from the fund and the award process 9 used for such disbursements; 10 (ii) the names of recipients and the amount of awards awarded from the 11 fund; 12 (iii) the amount awarded to each recipient; 13 (iv) the purposes for which such awards were granted; and 14 (v) a summary financial plan for such moneys which shall include esti- 15 mates of all receipts and all disbursements for the current and succeed- 16 ing fiscal years, along with the actual results from the prior fiscal 17 year. 18 § 3. Paragraph (b) of subdivision 16 of section 63 of the executive 19 law, as added by section 4 of part HH of chapter 55 of the laws of 2014, 20 is amended to read as follows: 21 (b) Paragraph (a) of this subdivision shall not apply to any provision 22 in the resolution of a claim or cause of action providing (1) moneys to 23 be distributed to the federal government, to a local government, or to 24 any holder of a bond or other debt instrument issued by the state, any 25 public authority, or any public benefit corporation; (2) moneys to be 26 distributed solely or exclusively as a payment of damages or restitution 27 to individuals or entities that were specifically injured or harmed by 28 the defendant's or settling party's conduct and that are identified in, 29 or can be identified by the terms of, the relevant judgment, stipu- 30 lation, decree, agreement to settle, assurance of discontinuance, or 31 relevant instrument resolving the claim or cause of action; (3) moneys 32 recovered or obtained by the attorney general where application of para- 33 graph (a) of this subdivision is prohibited by federal law, rule, or 34 regulation, or would result in the reduction or loss of federal funds or 35 eligibility for federal benefits pursuant to federal law, rule, or regu- 36 lation; (4) moneys recovered or obtained by or on behalf of a public 37 authority, a public benefit corporation, the department of taxation and 38 finance, the workers' compensation board, the New York state higher 39 education services corporation, the tobacco settlement financing corpo- 40 ration, a state or local retirement system, an employee health benefit 41 program administered by the New York state department of civil service, 42 the Title IV-D child support fund, the lottery prize fund, the abandoned 43 property fund, or an endowment of the state university of New York or 44 any unit thereof or any state agency, provided that all of the moneys 45 received or recovered are immediately transferred to the relevant public 46 authority, public benefit corporation, department, fund, program, or 47 endowment; (5) moneys to be refunded to an individual or entity as (i) 48 an overpayment of a tax, fine, penalty, fee, insurance premium, loan 49 payment, charge or surcharge; (ii) a return of seized assets; or (iii) a 50 payment made in error; [and] (6) moneys to be used to prevent, abate, 51 restore, mitigate or control any identifiable instance of prior or ongo- 52 ing water, land or air pollution; and (7) moneys obtained and distrib- 53 uted under the terms of any statewide opioid settlement agreement, as 54 defined in article twenty-six of the mental hygiene law, that provides 55 for all or a portion of the settlement moneys to be deposited into the 56 opioid settlement fund established in section ninety-seven-bbbbb of theS. 6683 8 1 state finance law or otherwise stipulates that all or a portion of such 2 moneys shall be used to remediate or abate the harms caused by opioids. 3 § 4. This act shall take effect immediately.
