LBD10289-22-2
S. 7870 2
MONEYS shall remain in such fund unless and until directed by statute or
appropriation.
5. Notwithstanding subdivision eleven of section four of this chapter,
or subdivision sixteen of section sixty-three of the executive law,
[monies] MONEYS from the opioid settlement fund shall be available
following appropriation by the legislature and shall only be expended on
eligible expenditures as defined in section 25.18 of the mental hygiene
law for prevention, treatment, harm reduction and recovery services
related to substance use disorders and co-occurring mental illnesses in
New York state pursuant to the terms of the statewide opioid settlement
agreements as defined in section 25.18 of the mental hygiene law. Fund-
ing shall be distributed regionally and to ensure adequate geographic
disbursement across the state in accordance with the statewide opioid
settlement agreements. In addition to programs and services overseen by
the office of addiction services and supports, funding may also 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 program or
service that is considered an eligible expenditure as provided under
section 25.18 of the mental hygiene law. Funding decisions shall include
an emphasis on supporting programs that are culturally, linguistically
and gender competent, trauma-informed, evidence-based and, where appro-
priate, employ individuals with lived experience as part of the services
provided.
§ 2. Section 25.18 of the mental hygiene law, as added by chapter 190
of the laws of 2021, is amended to read as follows:
§ 25.18 Statewide opioid settlements.
(a) Definitions. As used in this section, the following terms shall
have the following meanings: 1. Eligible expenditures shall include
services and programs that are consistent with the approved uses and
terms of the statewide opioid settlement agreement [and] AS DEFINED IN
THIS SECTION, WHICH MAY ONLY include [but not be limited to, programs]:
(i) to prevent substance use disorders through an evidence-based
youth-focused public health education and prevention campaign, including
school-based prevention and health care services and programs to reduce
the risk of substance use by school-aged children;
(ii) to develop and implement statewide public education campaigns to
reduce stigma against individuals with a substance use disorder, provide
information about the risks of substance use, best practices for
addressing substance use disorders, and information on how to locate
services that reduce the adverse health consequences associated with
substance use disorders or provide treatment for substance use disor-
ders;
(iii) to provide substance use disorder treatment and early recovery
programs for youth and adults, with an emphasis on programs that provide
a continuum of care that includes screening and assessment for substance
use disorders and co-occurring disorders, active treatment, family
involvement, case management, relapse management for substance use and
other co-occurring behavioral health disorders, vocational services,
literacy services, parenting classes, family therapy and counseling
services, crisis services, recovery services, evidence-based treatments,
medication-assisted treatments, including medication assisted treatment
provided in correctional facilities, psychiatric medication, psychother-
apy and transitional services programs;
(iv) to provide harm reduction counseling and services to reduce the
adverse health consequences associated with substance use disorders,
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including overdose prevention and prevention of communicable diseases
related to substance use, provided by a substance use disorder service
provider or qualified community-based organization;
(v) to provide housing services for people who are recovering from a
substance use disorder. Such housing services shall be appropriate,
based on the individual's current need and stage of recovery. Such hous-
ing services may include but are not limited to supportive housing
services;
(vi) to support community-based programs that reduce the likelihood of
criminal justice involvement for individuals who have or are at risk of
having a substance use disorder;
(vii) to provide programs for pregnant women and new parents who
currently or formerly have had a substance use disorder and newborns
with neonatal abstinence syndrome; [and] AND/OR
(viii) to provide vocational and educational training for individuals
with or at risk for a substance use disorder.
2. "Government entity" means (i) departments, agencies, divisions,
boards, commissions and/or instrumentalities of the state of New York
[including], EXCLUDING the department of financial services, PROVIDED
HOWEVER, THE DEPARTMENT OF FINANCIAL SERVICES SHALL BE CONSIDERED A
GOVERNMENT ENTITY FOR PURPOSES OF CLAIMS OR PROCEEDINGS FILED BY IT
AGAINST JOHNSON & JOHNSON, JANSSEN PHARMACEUTICALS, INC., ORTHO-MCNEIL-
JANSSEN PHARMACEUTICALS, INC., AND/OR JANSSEN PHARMACEUTICA, INC.; the
superintendent of the department of financial services[,]; and [the New
York liquidation bureau, provided however it shall not include] the
department of law; and
(ii) any governmental subdivision within the boundaries of the state
of New York, including, but not limited to, counties, municipalities,
districts, towns and/or villages, and any of their subdivisions, special
districts and school districts, and any department, agency, division,
board, commission and/or instrumentality thereof.
3. "Participating entities" means participating entities as such term
is defined in any statewide opioid settlement agreement.
4. "Opioid settlement fund" means the fund created by [the statewide
opioid agreements and] section ninety-nine-nn of the state finance law,
the funds of which shall be used or distributed by the commissioners, as
authorized by the legislature by statute or appropriation, for the
purposes of preventing addiction and reducing the harms caused by the
overdose and substance use disorder epidemic consistent with the terms
of any statewide opioid settlement agreement.
5. "Released claims" means released claims as such term is defined in
the statewide opioid settlement agreements.
6. "Released entities" means released entities as such term is defined
in the statewide opioid settlement agreements.
7. "New York subdivisions" means each county, city, town, village, or
special district in the state of New York.
8. "Statewide opioid settlement agreements" means agreements of state-
wide applicability ENTERED INTO ON OR AFTER JUNE FIRST, TWO THOUSAND
TWENTY-ONE BY THE OFFICE OF THE ATTORNEY GENERAL, including but not
limited to consent judgments, consent decrees filed or unfiled, and
related agreements or documents between the state and certain opioid
manufacturers, distributors, dispensers, consultants, chain pharmacies,
related entities, and/or the New York subdivisions, to provide remunera-
tion for conduct related to the manufacture, promotion, dispensing,
sale, and/or distribution of opioid products WHICH ARE CONSISTENT WITH
SUBDIVISION SIXTEEN OF SECTION SIXTY-THREE OF THE EXECUTIVE LAW. Copies
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of such agreements, including any amendments thereto, shall be kept on
file by the attorney general, who shall make such available for
inspection and copying pursuant to the provisions of article six of the
public officers law.
(b) Eligible expenditures for opioid settlement funds. 1. The legisla-
ture shall appropriate funds to be used for eligible expenditures that
are consistent with the approved uses and terms of the statewide opioid
settlement agreement. Such expenditures shall be distributed regionally
and in accordance with the statewide opioid settlement agreements to
ensure adequate geographic disbursement across the state.
2. New York subdivisions [shall] MAY apply to the appropriate agency
for funding for eligible expenditures consistent with the terms of any
statewide opioid settlement agreement. Any New York subdivision which
receives funding pursuant to this section shall be required to annually
certify to the appropriate state agency in which funding was received
that such New York subdivision is utilizing such funds in accordance
with the requirements of this section and section ninety-nine-nn of the
state finance law.
3. Each New York subdivision shall provide a detailed accounting of
how the funds were used as well as an analysis and evaluation of the
services and programs funded. Such information shall be included in the
report provided pursuant to paragraph ten of subdivision (c) of this
section.
(c) Advisory board establishment and responsibilities. 1. The opioid
settlement board is hereby established under the office of addiction
services and supports to provide recommendations on how funding received
by the opioid settlement fund pursuant to section ninety-nine-nn of the
state finance law shall be allocated by the legislature. Recommenda-
tions shall be [evidenced-based] EVIDENCE-BASED and may take into
consideration federal, state or local initiatives and activities that
have shown to be effective in preventing and treating substance use
disorders as well as maintaining recovery and assisting with the collat-
eral effects of substance use disorders for individuals and their fami-
lies or support system. Such recommendations shall also take into
account any gaps in access to services or programs identified as eligi-
ble expenditures and incorporate mechanisms for measurable outcomes for
determining the effectiveness of funds expended. The office and any
other relevant agency that provides or regulates eligible expenditures
shall provide any necessary staff, resources and technical assistance to
assist with the functions of the advisory board. Such assistance shall
be supported pursuant to an appropriation by the legislature, in accord-
ance with the statewide opioid settlement agreements.
2. The opioid settlement board may make recommendations to the legis-
lature AND THE GOVERNOR regarding the addition or removal of any eligi-
ble expenditures in response to changing substance use disorder needs in
the state. No recommendation may be made to remove an eligible expendi-
ture without three-fourths approval of present board members.
3. The opioid settlement board shall consist of [nineteen] TWENTY-ONE
members appointed as follows:
(i) the commissioner of addiction services and supports, the commis-
sioner of mental health, [and] the commissioner of health, AND THE
DIRECTOR OF THE DIVISION OF BUDGET, or their designees[, serving as
ex-officio non-voting members];
(ii) two appointments by the governor;
(iii) [two] THREE appointments by the temporary president of the
senate;
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(iv) [two] THREE appointments by the speaker of the assembly;
(v) [two] ONE appointments by the attorney general;
(vi) one appointment by the mayor of the city of New York; and
(vii) seven appointments from a list of nominees submitted, pursuant
to a statewide opioid settlement agreement, by an association of coun-
ties that represents at least ninety percent of the counties in New
York, counting both by number of counties and by population at the time
such statewide opioid settlement agreement was finalized. Such appoint-
ments shall be selected as follows: [two] THREE FROM THE GOVERNOR, ONE
from the temporary president of the senate, [two] ONE from the speaker
of the assembly, one from the minority leader of the senate[,] AND one
from the minority leader of the assembly [and one from the attorney
general].
4. Each member shall be appointed to serve three-year terms and in the
event of a vacancy, the vacancy shall be filled in the manner of the
original appointment for the remainder of the term. The appointed
members and commissioners shall receive no compensation for their
services but shall be allowed their actual and necessary expenses
incurred in the performance of their duties as board members.
5. Every effort shall be made to ensure a balanced and diverse board,
representing the geographic regions and racial and ethnic demographics
of the state as well as those with lived experiences of a substance use
disorder. Appointed members shall have an expertise in public and
behavioral health, substance use disorder treatment, harm reduction,
criminal justice, PUBLIC FINANCE, or drug policy. Further, the board
shall include individuals with personal or professional experience with
substance use and addiction issues and co-occurring mental illnesses as
well as providing services to those that have been disproportionately
impacted by the enforcement and criminalization of addiction.
6. The chairperson of the board and the vice chairperson shall be
elected from among the members of the board by the members of such
board. The vice chairperson shall represent the board in the absence of
the chairperson at all official board functions. A majority of the
voting members of the board shall constitute a quorum.
7. Members of the board shall not take any action to direct funding
from the opioid settlement fund to any entity in which they or their
family members have any interest, direct or indirect, or receive any
commission or profit whatsoever, direct or indirect. Members of the
board shall recuse themselves from any discussion or vote relating to
such interest.
8. The board shall meet AT LEAST quarterly, to ensure recommendations
are updated and consistent with the needs of the state. Such meetings
shall be held in accordance with article seven of the public officers
law and pursuant to the federal americans with disabilities act of nine-
teen hundred ninety, as amended.
9. On or before November first of each year, beginning November first,
two thousand twenty-one, the board shall provide their recommendations
for how such funds shall be appropriated, consistent with the require-
ments of this section and section ninety-nine-nn of the state finance
law. Such recommendations shall be provided in a written report to the
governor, the temporary president of the senate, the speaker of the
assembly, the chair of the senate finance committee, the chair of the
assembly ways and means committee, the chair of the senate alcoholism
and substance abuse committee and the chair of the assembly alcoholism
and drug abuse committee.
S. 7870 6
10. On or before November first of each year, beginning one year after
the initial deposit of monies in the opioid settlement fund, the rele-
vant commissioners, [in consultation with the advisory board,] shall
provide a written report to the governor, temporary president of the
senate, speaker of the assembly, chair of the senate finance committee,
chair of the assembly ways and means committee, chair of the senate
alcoholism and substance abuse committee [and], chair of the assembly
alcoholism and drug abuse committee, AND THE OPIOID SETTLEMENT ADVISORY
BOARD. Such report shall be presented as a consolidated dashboard and be
made publicly available on the respective offices' websites. The report
shall, TO THE EXTENT PRACTICABLE AFTER MAKING ALL DILIGENT EFFORTS TO
OBTAIN SUCH INFORMATION, include the following [information]: (i) the
baseline funding for any entity that receives funding from the opioid
settlement fund, prior to the receipt of such opioid settlement funds;
(ii) how funds deposited in the opioid settlement fund had been utilized
in the preceding calendar year, including but not limited to: (A) the
amount of money disbursed from the fund and the award process used for
such disbursement, if applicable; (B) the names of the recipients, the
amounts awarded to such recipient and details about the purpose such
funds were awarded for, including what specific services and programs
the funds were used on and what populations such services or programs
served; (C) the main criteria utilized to determine the award, including
how the program or service assists to reduce the effects of substance
use disorders; (D) an analysis of the effectiveness of the services
and/or programs that received opioid settlement funding in their efforts
to reduce the effects of the overdose and substance use disorder epidem-
ic. Such analysis shall utilize evidence-based uniform metrics when
reviewing the effects the service and/or program had on prevention, harm
reduction, treatment, and recovery advancements; (E) any relevant infor-
mation provided by the New York subdivisions pursuant to this section;
and (F) any other information the commissioner deems necessary [for the
legislature to determine appropriate future awards and] TO HELP INFORM
FUTURE APPROPRIATIONS AND FUNDING DECISIONS, AND ensure such funding is
not being used to supplant local, state, or federal funding.
(d) Limitation on authority of government entities to bring lawsuits.
No government entity shall have the authority to assert released claims
against entities released by the department of law in a statewide opioid
settlement agreement executed by the department of law and the released
party on or after June first, two thousand twenty-one. Any action filed
by a government entity after June thirtieth, two thousand nineteen
asserting released claims against a manufacturer, distributor, or
dispenser of opioid products shall be extinguished by operation of law
upon being released [by the department of law in] PURSUANT TO such
statewide opioid settlement agreement.
§ 3. Paragraph (b) of subdivision 16 of section 63 of the executive
law, as amended by chapter 190 of the laws of 2021, is amended to read
as follows:
(b) Paragraph (a) of this subdivision shall not apply to any provision
in the resolution of a claim or cause of action providing (1) moneys to
be distributed to the federal government, to a local government, or to
any holder of a bond or other debt instrument issued by the state, any
public authority, or any public benefit corporation; (2) moneys to be
distributed solely or exclusively as a payment of damages or restitution
to individuals or entities that were specifically injured or harmed by
the defendant's or settling party's conduct and that are identified in,
or can be identified by the terms of, the relevant judgment, stipu-
S. 7870 7
lation, decree, agreement to settle, assurance of discontinuance, or
relevant instrument resolving the claim or cause of action; (3) moneys
recovered or obtained by the attorney general where application of para-
graph (a) of this subdivision is prohibited by federal law, rule, or
regulation, or would result in the reduction or loss of federal funds or
eligibility for federal benefits pursuant to federal law, rule, or regu-
lation; (4) moneys recovered or obtained by or on behalf of a public
authority, a public benefit corporation, the department of taxation and
finance, the workers' compensation board, the New York state higher
education services corporation, the tobacco settlement financing corpo-
ration, a state or local retirement system, an employee health benefit
program administered by the New York state department of civil service,
the Title IV-D child support fund, the lottery prize fund, the abandoned
property fund, or an endowment of the state university of New York or
any unit thereof or any state agency, provided that all of the moneys
received or recovered are immediately transferred to the relevant public
authority, public benefit corporation, department, fund, program, or
endowment; (5) moneys to be refunded to an individual or entity as (i)
an overpayment of a tax, fine, penalty, fee, insurance premium, loan
payment, charge or surcharge; (ii) a return of seized assets; or (iii) a
payment made in error; (6) moneys to be used to prevent, abate, restore,
mitigate or control any identifiable instance of prior or ongoing water,
land or air pollution; [and] AND/OR (7) [moneys obtained as a result of
a settlement agreement which resulted from litigation with entities that
manufactured, sold, distributed, dispensed or promoted opioids made in
connection with claims arising from the manufacturing, marketing,
distributing, promoting or dispensing of opioids, as well as any funds
received by the state as a result of a judgment, stipulation, decree,
agreement to settle, assurance of discontinuance, or other legal instru-
ment resolving any claim or cause of action against manufacturers,
distributors, dispensers or vendors of opioids and related entities
arising out of activities alleged to have contributed to increases in
opioid addiction, whether filed or unfiled, actual or potential, and
whether arising under common law, equity, or any provision of law] STATE
MONEYS RECEIVED AS PART OF ANY STATEWIDE OPIOID SETTLEMENT AGREEMENTS AS
DEFINED IN SECTION 25.18 OF THE MENTAL HYGIENE LAW, TO BE SPENT ON
ELIGIBLE EXPENDITURES AS DEFINED IN SECTION 25.18 OF THE MENTAL HYGIENE
LAW.
§ 4. Paragraph (b) of subdivision 11 of section 4 of the state finance
law, as amended by chapter 190 of the laws of 2021, is amended to read
as follows:
(b) Paragraph (a) of this subdivision shall not apply to (1) moneys to
be distributed to the federal government, to a local government, or to
any holder of a bond or other debt instrument issued by the state, any
public authority, or any public benefit corporation; (2) moneys to be
distributed solely or exclusively as a payment of damages or restitution
to individuals or entities that were specifically injured or harmed by
the defendant's or settling party's conduct and that are identified in,
or can be identified by the terms of, the relevant judgment, agreement
to settle, assurance of discontinuance, or relevant instrument resolving
the claim or cause of action; (3) moneys recovered or obtained by a
state agency or a state official or employee acting in their official
capacity where application of paragraph (a) of this subdivision is
prohibited by federal law, rule, or regulation, or would result in the
reduction or loss of federal funds or eligibility for federal benefits
pursuant to federal law, rule, or regulation; (4) moneys recovered or
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obtained by or on behalf of a public authority, a public benefit corpo-
ration, the department of taxation and finance, the workers' compen-
sation board, the New York state higher education services corporation,
the tobacco settlement financing corporation, a state or local retire-
ment system, an employee health benefit program administered by the New
York state department of civil service, the Title IV-D child support
fund, the lottery prize fund, the abandoned property fund, or an endow-
ment of the state university of New York or any unit thereof or any
state agency, provided that all of the moneys received or recovered are
immediately transferred to the relevant public authority, public benefit
corporation, department, fund, program, or endowment; (5) moneys to be
refunded to an individual or entity as (i) an overpayment of a tax,
fine, penalty, fee, insurance premium, loan payment, charge or
surcharge; (ii) a return of seized assets, or (iii) a payment made in
error; (6) moneys to be used to prevent, abate, restore, mitigate, or
control any identifiable instance of prior or ongoing water, land or air
pollution; and (7) moneys [obtained as a result of a settlement agree-
ment which resulted from litigation with entities that manufactured,
sold, distributed, dispensed or promoted opioids made in connection with
claims arising from the manufacturing, marketing, distributing, promot-
ing or dispensing of opioids, as well as any funds received by the state
as a result of a judgment, stipulation, decree, agreement to settle,
assurance of discontinuance, or other legal instrument resolving any
claim or cause of action against manufacturers, distributors, dispensers
or vendors of opioids and related entities arising out of activities
alleged to have contributed to increases in opioid addiction, whether
filed or unfiled, actual or potential, and whether arising under common
law, equity, or any provision of law] DEPOSITED TO THE OPIOID SETTLEMENT
FUND ESTABLISHED IN SECTION NINETY-NINE-NN OF THIS CHAPTER.
§ 5. This act shall take effect on the same date and in the same
manner as chapter 190 of the laws of 2021, takes effect.
