Legislature(2023 - 2024)
2023-04-24 House Journal
Full Journal pdf2023-04-24 House Journal Page 0827 HB 171 HOUSE BILL NO. 171 by the House Rules Committee by request of the Governor, entitled: "An Act establishing the Alaska opioid settlement investment fund; establishing the Alaska opioid remediation fund; and providing for an effective date." was read the first time and referred to the Finance Committee. The following fiscal note(s) apply: 1. Fiscal, Dept. of Health 2. Fiscal, Dept. of Revenue The Governor's transmittal letter dated April 20 follows: "Dear Speaker Tilton: Under the authority of Article III, Section 18 of the Alaska Constitution, I am transmitting a bill to establish two new state funds for the purpose of combating opioid addiction in the state. This bill creates the Opioid Settlement Investment Fund (OSIF) and the Opioid Remediation Fund (ORF) authorizing the state to invest and expend money related to the various settlement agreements entered into by the state and the commercial manufacturers and distributors of opioids. Opioid overdose deaths have risen steadily in Alaska and the United States since 2010. Increased provider prescriptions of medications like oxycodone and hydrocodone have led to widespread misuse of both prescription and non-prescription opioids. This rise in prescriptions was fueled, in part, by aggressive marketing pushes from pharmaceutical companies seeking to profit on the over-prescription of 2023-04-24 House Journal Page 0828 opioid medications. As a result of these pharmaceutical industry practices, Alaska joined in litigation with other states against the manufactures of high-risk medications. In February 2022, the states and distributors finalized the first series of settlement agreements that will result in Alaska receiving approximately $58.5 million over the next 18 years. Pursuant to the terms of the settlement, this money can only be spent on opioid remediation efforts. This bill establishes the OSIF outside the general fund as a separate investment fund of the state. The goal of the OSIF is to allow the state to accumulate and leverage the money received from the current and anticipated opioid settlement agreements to provide a sustainable, long-term solution to the opioid epidemic in the state. Under the terms of the bill, the Department of Revenue will invest the amounts received from the settlement agreements with a goal of growing the fund, while still allowing for an annual appropriation from the fund for the purposes of remediating opioid addiction in the state. This is accomplished through a percent-of-market-value approach to ensure that future generations of Alaskans will have the support and assistance they need to combat and recover from opioid addiction. The bill also creates the ORF as a special fund of the state. The purpose of the ORF is to serve as a target for the proceeds of the OSIF. The ORF authorizes the Department of Health to expend money in the fund without further legislative appropriation for the purpose of supporting opioid addiction treatment, recovery, remediation, and education. The establishment of the ORF will facilitate compliance with the various opioid settlement agreements by empowering the Department of Health (DOH) to spend the funds generated by the OSIF with the necessary flexibility to address opioid addiction quickly and accurately in the state. The ORF will primarily be comprised of money appropriated to it by the legislature from the OSIF. By providing DOH with the ability to spend directly from the ORF, we can ensure that critical services reach Alaskans in a timely manner. Opioid addiction is a generational problem. Through the use of this legislation, we are empowering ourselves, our children, and our grandchildren for success in remediating opioid addiction in the state. Providing sustainable, long-term funding that is insulated from certain political machinations – a requirement of the current settlement 2023-04-24 House Journal Page 0829 agreements – will ensure the money received by the state from the opioid settlement agreements is properly used for the benefit for all Alaskans, present and future. I urge your prompt and favorable action on this measure. Sincerely, /s/ Mike Dunleavy Governor"