A02466 Summary:

BILL NOA02466A
 
SAME ASSAME AS S06683
 
SPONSORReyes
 
COSPNSRGottfried, Jacobson, Perry, Frontus, Montesano, Hevesi, Simon, Clark, Meeks, McMahon, McDonald, Kelles, Galef, Ashby
 
MLTSPNSR
 
Add Art 26 §§26.01 - 26.03, Ment Hyg L; add §97-bbbbb, St. Fin L; amd §63, Exec L
 
Provides for implementation of statewide opiod settlement agreements; creates an opioid settlement fund.
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A02466 Actions:

BILL NOA02466A
 
01/19/2021referred to alcoholism and drug abuse
05/14/2021amend (t) and recommit to alcoholism and drug abuse
05/14/2021print number 2466a
01/05/2022referred to alcoholism and drug abuse
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A02466 Committee Votes:

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A02466 Floor Votes:

There are no votes for this bill in this legislative session.
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A02466 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         2466--A
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                    January 19, 2021
                                       ___________
 
        Introduced  by  M.  of  A.  REYES,  GOTTFRIED, JACOBSON, PERRY, FRONTUS,
          MONTESANO, HEVESI, SIMON, CLARK, MEEKS, McMAHON, McDONALD -- read once
          and referred to the Committee on Alcoholism and Drug Abuse --  commit-
          tee  discharged, bill amended, ordered reprinted as amended and recom-
          mitted to said committee

        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
 
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD00165-02-1

        A. 2466--A                          2
 
     1  pregnant women and babies  with  neonatal  abstinence  syndrome  and  to
     2  assist local governments with services and expenses of providing correc-
     3  tional  facility-based substance use disorder treatment with an emphasis
     4  on  medications  to treat substance use disorder and transition services
     5  programs and related services, or other  programs  that  are  consistent
     6  with  the list of uses defined in any statewide opioid settlement agree-
     7  ment.
     8    3. "Commissioner" means the commissioner of the New York state  office
     9  of addiction services and supports.
    10    4.  "Direct  share subdivision" means every county of New York outside
    11  the city of New York and Nassau and Suffolk counties.
    12    5. "Government entity" means  (a)  departments,  agencies,  divisions,
    13  boards,  commissions  and/or  instrumentalities of the state of New York
    14  excepting the department of law, and including, notwithstanding any  law
    15  to  the  contrary, the department of financial services, the superinten-
    16  dent of the department of financial services, and the  New  York  liqui-
    17  dation  bureau,  and (b) any governmental subdivision within the bounda-
    18  ries of the state of New York, including, but not limited to,  counties,
    19  municipalities,  districts,  towns  and/or  villages,  and  any of their
    20  subdivisions, special districts and school districts,  and  any  depart-
    21  ment,  agency, division, board, commission and/or instrumentality there-
    22  of.
    23    6. "New York subdivisions" means each county, city, town, village,  or
    24  special district in the state of New York.
    25    7.  "Participating entities" means participating entities as such term
    26  is defined in any statewide opioid settlement agreement.
    27    8. "Opioid settlement fund" means the fund created  by  the  statewide
    28  opioid  agreements  and  section ninety-seven-bbbbb of the state finance
    29  law, the funds of which shall be used or distributed by the commissioner
    30  for the purposes of preventing addiction and reducing the  harms  caused
    31  by  the overdose and substance use disorder epidemic consistent with the
    32  terms of any statewide opioid settlement agreement.
    33    9. "Released claims" means released claims as that term is defined  in
    34  the statewide opioid settlement agreements.
    35    10.  "Released  entities"  means  released  entities  as  such term is
    36  defined in the statewide opioid settlement agreements.
    37    11. "Statewide  opioid  settlement  agreements"  means  agreements  of
    38  statewide applicability, including but not limited to consent judgments,
    39  consent  decrees  filed  or unfiled, and related agreements or documents
    40  between the state represented by the  department  of  law,  and  certain
    41  opioid manufacturers, distributors, dispensers, consultants, chain phar-
    42  macies,  related  entities, and/or the New York subdivisions, to provide
    43  remuneration for conduct related to the manufacture, promotion, dispens-
    44  ing, sale, and/or distribution of opioid products. Copies of such agree-
    45  ments, including any amendments thereto, shall be kept on  file  by  the
    46  attorney general, who shall make such available for inspection and copy-
    47  ing  pursuant  to  the  provisions of article six of the public officers
    48  law.
    49  § 26.02 Implementation.
    50    1. Powers and duties. (a) Each year the commissioner, in  consultation
    51  with  the  commissioner  of  health,  the  commissioner of the office of
    52  mental health, and any other agency that provides or regulates  approved
    53  uses,  shall allocate funds contained within the opioid settlement fund,
    54  established pursuant to section ninety-seven-bbbbb of the state  finance
    55  law,  consistent  with  and subject to the terms of any statewide opioid
    56  settlement agreement. Each New York subdivision shall, as a condition of

        A. 2466--A                          3
 
     1  the receipt of such funds, certify at the end of each  fiscal  year  for
     2  which  it  receives  such funds that all funds provided to it under this
     3  provision of the agreements were spent on  projects  and  programs  that
     4  constitute  approved  uses  and  provided that such New York subdivision
     5  complies with the reporting requirements set forth in this article.
     6    (b) Each year the commissioner, in consultation with the  commissioner
     7  of  health,  the  commissioner  of  the office of mental health, and any
     8  other state agency that provides or regulates approved uses,  shall  set
     9  aside  funds,  consistent with the terms of any statewide opioid settle-
    10  ment agreements, for spending to: (i) fund state projects  that  consti-
    11  tute  approved  uses,  and  (ii)  carry  out the duties of the office of
    12  addiction services and supports and advisory board under  this  article,
    13  including oversight and administration of the opioid settlement fund and
    14  the  advisory board.   No more than two percent of funds received by the
    15  state that are required by any statewide opioid settlement agreement  to
    16  be  used  for approved uses may be used in any fiscal year for oversight
    17  and administrative costs for the opioid settlement fund and the advisory
    18  board.
    19    (c) The commissioner shall, to the  extent  possible,  allocate  funds
    20  from   the   opioid  settlement  fund,  to  support  programs  that  are
    21  culturally,  linguistically,  and  gender  competent,   trauma-informed,
    22  evidence-based  and,  where  appropriate,  employ individuals with lived
    23  experience as part of the services provided.  Monies  allocated  by  the
    24  settlement  fund  shall  also  be  used  to reduce disparities in health
    25  outcomes and to address harmful social determinants of health for under-
    26  served individuals and communities, including racial and ethnic  minori-
    27  ties.
    28    (d) The commissioner, in consultation with the commissioner of health,
    29  the  commissioner  of  the  office of mental health, and any other state
    30  agency that provides or regulates approved uses, and with the advice and
    31  consent of the advisory board, shall have the ability to amend the  list
    32  of  approved  uses to add or remove approved uses at specified intervals
    33  in response to changing substance use disorder needs in the state. Cate-
    34  gories and subcategories may be  added  or  removed  from  the  list  of
    35  approved  uses  only with the approval of not less than three-fourths of
    36  the members of the advisory board.
    37    2. Rule promulgation.  The  commissioner,  in  consultation  with  the
    38  commissioner of health, the commissioner of the office of mental health,
    39  and any other state agency that provides or regulates approved uses, may
    40  issue  rules and regulations necessary to effectuate the requirements of
    41  this section.
    42    3. Oversight and auditing. The commissioner, in consultation with  the
    43  commissioner of health, the commissioner of the office of mental health,
    44  and  any  other  state  agency that provides or regulates approved uses,
    45  shall engage in oversight and audits of services, supports, and programs
    46  funded through the opioid settlement fund.
    47    4. Reporting requirements. (a) Consistent  with  and  subject  to  any
    48  statewide  opioid  settlement  agreement, each New York subdivision that
    49  receives funds from the  opioid  settlement  fund  under  any  statewide
    50  opioid  settlement  agreements  shall  annually provide to the office of
    51  addiction services and supports a detailed accounting of the spending of
    52  such funds required by any statewide opioid settlement agreement  to  be
    53  used  for  approved  uses  as  well  as  analysis  and evaluation of the
    54  services, supports and programs it has funded.  Such accounting shall be
    55  provided on or before November first each year. The office of  addiction
    56  services and supports may withhold future funds from any New York subdi-

        A. 2466--A                          4
 
     1  vision  that  is  delinquent  in  providing  such  reporting,  until the
     2  required report is submitted.
     3    (b)  The commissioner shall annually provide the speaker of the assem-
     4  bly and the temporary president of the senate a detailed  accounting  of
     5  the  spending  of all monies in the opioid settlement fund, any spending
     6  by the direct share subdivisions, any spending  by  New  York  city  and
     7  Nassau  and  Suffolk  counties, as well as an analysis and evaluation of
     8  the services, supports  and  programs  funded.    The  evaluation  shall
     9  include  a disparity impact analysis using local data to identify racial
    10  and ethnic minorities at highest risk for health disparities, low health
    11  literacy,  and  currently  or  historically  underserved   by   existing
    12  substance  use  disorder  and  co-occurring disorder treatment services.
    13  This accounting shall be provided on or before February first each year.
    14  In consultation with the advisory board,  the  commissioner  shall  also
    15  report  annually  the  results  of  research  funded by funds from these
    16  agreements, the status of any outstanding audits,  and  the  non-binding
    17  recommendations of the advisory board.
    18    5.  Advisory  board.  There is hereby established within the office of
    19  addiction services and supports an  advisory  board  on  addressing  the
    20  overdose  and  substance  use  disorder  epidemic consisting of nineteen
    21  members. The board shall appoint a member  as  chairperson  by  majority
    22  vote.  Each  member  of the advisory board shall have one vote, with all
    23  actions being taken by an affirmative vote of the  majority  of  present
    24  members.
    25    (a) Appointments to the advisory board. The board shall consist of the
    26  commissioner  of the office of addiction services and supports or his or
    27  her designee; the commissioner of health or his  or  her  designee;  the
    28  commissioner  of the office of mental health or his or her designee; two
    29  members appointed by the governor; two members appointed by the attorney
    30  general; one member appointed by the mayor of the city of New York;  two
    31  members  appointed  by  the  temporary  president of the senate; and two
    32  members appointed by the speaker of the assembly.   The remaining  seven
    33  members  shall be appointed from a list of nominees submitted by the New
    34  York state association of counties, as follows: two from  the  governor,
    35  one  from  the attorney general, two from the temporary president of the
    36  senate, and two from the speaker of the  assembly.    Such  appointments
    37  shall  be made no later than sixty days after the effective date of this
    38  article. Advisory board membership shall include persons, to the  extent
    39  practicable,  who  have  expertise  or  experience,  and/or education in
    40  public health policy and  research,  board  certification  in  addiction
    41  medicine  or  addiction psychiatry, substance use disorder and addiction
    42  prevention and treatment, mental health services, harm reduction, recov-
    43  ery services, public budgeting, and to the extent practicable shall also
    44  include individuals with lived experience with  substance  use  disorder
    45  including  those  receiving  medication to treat substance use disorder,
    46  and also include representatives of communities that have  been  dispro-
    47  portionately   impacted   by  the  enforcement  and  criminalization  of
    48  addiction  and  the  historic  approaches  to  preventing  and  treating
    49  substance use. Additionally, the membership of the board shall be repre-
    50  sentative of the racial and ethnic demographics of the state and reflect
    51  the  geographic  regions of the state. Each member shall be appointed to
    52  serve three-year terms and in the event of a vacancy, the vacancy  shall
    53  be filled in the manner of the original appointment for the remainder of
    54  the term.
    55    (b)  Meetings  of the advisory board. The advisory board shall hold no
    56  fewer than six public meetings annually, to be publicized and located in

        A. 2466--A                          5
 
     1  a manner reasonably  designed  to  facilitate  attendance  by  residents
     2  throughout  the  state.  The  advisory  board shall function in a manner
     3  consistent with New York's open meetings law,  and  with  the  Americans
     4  with  disabilities act. A majority of the appointed voting membership of
     5  the advisory board shall constitute a quorum.
     6    (c) Payment and ethics. Members of the advisory board shall receive no
     7  compensation but  shall  be  reimbursed  for  reasonable  expenses.  The
     8  members  of  the  advisory  board  and all staff shall be subject to the
     9  applicable provisions of the public officers law. Members of  the  board
    10  shall  not  take any action to direct funding from the opioid settlement
    11  fund to any entity in which the member or their family members have  any
    12  interest,  direct or indirect, or receive any commission or profit what-
    13  soever, direct or indirect. Each such member of the board  shall  recuse
    14  themselves from any discussion or vote relating to such interest.
    15    (d)  Staff  and  administration.  The office of addiction services and
    16  supports and any other agency that provides or regulates  approved  uses
    17  shall provide staff to assist with the functions of the advisory board.
    18    (e)  Responsibilities.  The  advisory  board shall make evidence-based
    19  recommendations regarding  specific  opioid  settlement  priorities  and
    20  expenditures  from the opioid settlement fund. In carrying out its obli-
    21  gations to provide such recommendations, the advisory board may consider
    22  local, state and federal initiatives and activities  related  to  educa-
    23  tion,   prevention,  treatment,  harm  reduction,  recovery,  and  other
    24  services and programs for  individuals  and  families  experiencing  and
    25  affected  by  substance  use  disorder;  recommend statewide or regional
    26  priorities to address the state's overdose and  substance  use  disorder
    27  epidemic;  recommend  statewide  or  regional  funding  with  respect to
    28  specific programs  or  initiatives;  recommend  measurable  outcomes  to
    29  determine  the  effectiveness  of  funds expended for approved uses; and
    30  monitor the level of permitted administrative expenses.  Such  recommen-
    31  dations  shall  also  take  into account where gaps in access to current
    32  services included in the list of approved uses currently exist  and  how
    33  to  best  fill such gaps, including through partnerships between various
    34  subdivisions and entities in order to create a comprehensive  system  of
    35  services and care.  To the extent the commissioner chooses not to follow
    36  a  recommendation  of  the advisory board, he or she shall make publicly
    37  available, within fourteen days after such decision is made,  a  written
    38  explanation  of the reasons for the decision and allow fourteen days for
    39  the advisory board to respond to such public explanation.
    40    Additionally, the advisory board shall be responsible  for  overseeing
    41  and  reporting  on services, supports and programs related to addressing
    42  the overdose and substance use disorder epidemic, developing priorities,
    43  goals and recommendations for spending on such  projects  and  programs,
    44  working with the department of health to develop measurable outcomes for
    45  such projects and programs, and making recommendations for policy chang-
    46  es  and research to fund and oversee other projects and programs related
    47  to addressing the overdose and substance use disorder epidemic,  includ-
    48  ing for outside grants.
    49  § 26.03 Limitation   on   authority  of  government  entities  to  bring
    50            lawsuits.
    51    No government entity shall  have  the  authority  to  assert  released
    52  claims  against  entities  released  by the state department of law in a
    53  statewide opioid settlement agreement executed by the  state  department
    54  of  law  and  the released party on or after March twelfth, two thousand
    55  twenty-one. Any action filed by a government entity  after  June  first,
    56  two  thousand  nineteen asserting released claims against a manufacturer

        A. 2466--A                          6
 
     1  or distributor of opioid products shall be extinguished by operation  of
     2  law upon being released by the department of law.
     3    § 2. The state finance law is amended by adding a new section 97-bbbbb
     4  to read as follows:
     5    §  97-bbbbb. Opioid settlement fund. 1. There is hereby established in
     6  the joint custody of the comptroller and the  commissioner  of  taxation
     7  and  finance  a  special fund to be known as the opioid settlement fund.
     8  Notwithstanding subdivision eleven of section four of  this  chapter  or
     9  any  law to the contrary, such fund shall consist of all moneys received
    10  by the state represented by the department of law, as a  result  of  the
    11  settlement   of  litigation  with  opioid  manufacturers,  distributors,
    12  dispensers, consultants, chain pharmacies, and related entities made  in
    13  connection with claims arising from the manufacture, promotion, dispens-
    14  ing,  sale, and/or distribution of opioid products, as well as any funds
    15  received by the state represented by the department of law as  a  result
    16  of  a  judgment,  stipulation, decree, agreement to settle, assurance of
    17  discontinuance, or other legal instrument resolving any claim  or  cause
    18  of  action against manufacturers, distributors, dispensers, consultants,
    19  chain pharmacies, and related entities arising out of activities alleged
    20  to have contributed to increases in opioid addiction, whether  filed  or
    21  unfiled,  actual  or  potential,  and  whether arising under common law,
    22  equity, or any provision of law,  and  all  other  moneys  appropriated,
    23  credited,  or transferred thereto from any other fund or source pursuant
    24  to law.   Such moneys shall  include,  but  not  be  limited  to,  funds
    25  received  by  the  state  for  a  state abatement fund as defined in any
    26  statewide opioid settlement agreement.
    27    2. Notwithstanding the provisions of  subdivision  eleven  of  section
    28  four of this chapter or any law to the contrary, the moneys in such fund
    29  shall  only  be appropriated or transferred consistent with the terms of
    30  any statewide opioid settlement agreements and pursuant to this chapter.
    31  Moneys of the fund may be suballocated or transferred to any other agen-
    32  cy or department, or  New  York  subdivision  or  government  entity  as
    33  defined  in  section  26.01 of the mental hygiene law for expenditure in
    34  accordance with such settlement agreement terms.   Such  moneys  in  the
    35  fund  shall  only be used for approved uses that are consistent with the
    36  terms of the statewide opioid settlement agreements and approved uses as
    37  defined pursuant to this chapter  unless  otherwise  specified  by  such
    38  statewide  opioid  settlement  agreements.  Such  moneys received by the
    39  state represented by the department of law  that  are  required  by  any
    40  statewide opioid settlement agreement to be used for approved uses shall
    41  be used to supplement, and not supplant or replace, the level of federal
    42  or  state  funds  expended for substance use disorder services, and such
    43  moneys shall be used exclusively for the purpose of funding  the  expan-
    44  sion or sustaining of existing services and workforce, and/or establish-
    45  ing new services and supports.
    46    3.  The  moneys  when  allocated, shall be paid out of the fund on the
    47  audit and warrant of the comptroller on vouchers certified  or  approved
    48  by the commissioner of the office of addiction services and supports, or
    49  by  an  officer  or  employee  of  the  office of addiction services and
    50  supports designated by the commissioner, in consultation with the  advi-
    51  sory  board  established  by section 26.02 of the mental hygiene law and
    52  consistent with the terms of the statewide opioid settlement agreements.
    53    4. On or before February first each  year,  the  commissioner  of  the
    54  office of addiction services and supports shall provide a written report
    55  to  the  governor,  temporary  president  of  the senate, speaker of the
    56  assembly, chair of the senate finance committee, chair of  the  assembly

        A. 2466--A                          7
 
     1  ways and means committee, chair of the senate committee on health, chair
     2  of the assembly health committee, chair of the senate committee on alco-
     3  holism  and substance abuse, chair of the assembly committee on alcohol-
     4  ism  and  drug  abuse,  chair  of the senate committee on mental health,
     5  chair of the assembly committee on mental health  and  the  state  comp-
     6  troller.  Such  report shall be made publicly available on the office of
     7  addiction services and supports and the department of health's  website.
     8  Such  report  shall  include  how  the  moneys of the fund were utilized
     9  during the preceding calendar year, and shall include:
    10    (i) the amount of money dispersed from the fund and the award  process
    11  used for such disbursements;
    12    (ii) the names of recipients and the amount of awards awarded from the
    13  fund;
    14    (iii) the amount awarded to each recipient;
    15    (iv) the purposes for which such awards were granted; and
    16    (v) a summary financial plan for such moneys which shall include esti-
    17  mates of all receipts and all disbursements for the current and succeed-
    18  ing  fiscal  years,  along with the actual results from the prior fiscal
    19  year.
    20    § 3. Paragraph (b) of subdivision 16 of section 63  of  the  executive
    21  law, as added by section 4 of part HH of chapter 55 of the laws of 2014,
    22  is amended to read as follows:
    23    (b) Paragraph (a) of this subdivision shall not apply to any provision
    24  in  the resolution of a claim or cause of action providing (1) moneys to
    25  be distributed to the federal government, to a local government,  or  to
    26  any  holder  of a bond or other debt instrument issued by the state, any
    27  public authority, or any public benefit corporation; (2)  moneys  to  be
    28  distributed solely or exclusively as a payment of damages or restitution
    29  to  individuals  or entities that were specifically injured or harmed by
    30  the defendant's or settling party's conduct and that are identified  in,
    31  or  can  be  identified  by  the terms of, the relevant judgment, stipu-
    32  lation, decree, agreement to settle,  assurance  of  discontinuance,  or
    33  relevant  instrument  resolving the claim or cause of action; (3) moneys
    34  recovered or obtained by the attorney general where application of para-
    35  graph (a) of this subdivision is prohibited by  federal  law,  rule,  or
    36  regulation, or would result in the reduction or loss of federal funds or
    37  eligibility for federal benefits pursuant to federal law, rule, or regu-
    38  lation;  (4)  moneys  recovered  or obtained by or on behalf of a public
    39  authority, a public benefit corporation, the department of taxation  and
    40  finance,  the  workers'  compensation  board,  the New York state higher
    41  education services corporation, the tobacco settlement financing  corpo-
    42  ration,  a  state or local retirement system, an employee health benefit
    43  program administered by the New York state department of civil  service,
    44  the Title IV-D child support fund, the lottery prize fund, the abandoned
    45  property  fund,  or  an endowment of the state university of New York or
    46  any unit thereof or any state agency, provided that all  of  the  moneys
    47  received or recovered are immediately transferred to the relevant public
    48  authority,  public  benefit  corporation,  department, fund, program, or
    49  endowment; (5) moneys to be refunded to an individual or entity  as  (i)
    50  an  overpayment  of  a  tax, fine, penalty, fee, insurance premium, loan
    51  payment, charge or surcharge; (ii) a return of seized assets; or (iii) a
    52  payment made in error; [and] (6) moneys to be used  to  prevent,  abate,
    53  restore, mitigate or control any identifiable instance of prior or ongo-
    54  ing  water,  land or air pollution; and (7) moneys obtained and distrib-
    55  uted under the terms of any statewide opioid settlement   agreement,  as
    56  defined  in  article twenty-six of the mental hygiene law, that provides

        A. 2466--A                          8
 
     1  for all or a portion of the settlement moneys to be deposited  into  the
     2  opioid  settlement fund established in section ninety-seven-bbbbb of the
     3  state  finance law or otherwise stipulates that all or a portion of such
     4  moneys shall be used to remediate or abate the harms caused by opioids.
     5    § 4. This act shall take effect immediately.
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