Legislature(2023 - 2024)

2023-04-21 Senate Journal

Full Journal pdf

2023-04-21                     Senate Journal                      Page 0813
SB 133                                                                                                                        
SENATE BILL NO. 133 BY THE SENATE 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 information was published today:                                                                           
Fiscal Note No. 1, Department of Health                                                                                         
Fiscal Note No. 2, Department of Revenue                                                                                        
                                                                                                                                
Governor's transmittal letter dated April 20:                                                                                   
                                                                                                                                
Dear President Stevens:                                                                                                         
                                                                                                                                
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                                                          
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                                                             

2023-04-21                     Senate Journal                      Page 0814
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                                                                

2023-04-21                     Senate Journal                      Page 0815
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