This morning, Governor Mike Dunleavy introduced legislation establishing two new state funds to combat opioid addiction in the state. This bill creates the Opioid Settlement Investment Fund (OSIF) and the Opioid Remediation Fund (ORF). To date, the State has secured around $53 million in settlements from opioid lawsuits and anticipates another $30 million in settlements. Senate Bill 133 allows the state to expend that money on opioid remediation and invest money received to create a continual revenue for opioid remediation through the fund’s earnings.

“Opioid addiction is a generational problem,” said Governor Dunleavy. “Through this bill, we are empowering ourselves, our children, and our grandchildren for success in remediating opioid addiction in the state. Providing sustainable, long-term funding will ensure the money the state receives from the opioid settlement agreements used to benefit all Alaskans, present and future.”

Opioid Settlement Investment Fund (OSIF)

The goal of the Opioid Settlement Investment Fund (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 supply of resources to address the impacts and prevent the continuation of the opioid epidemic. Under the bill’s terms, the Alaska Department of Revenue (DOR) will invest the amounts received from the settlement agreements to grow the fund while still allowing for an annual appropriation from the fund to remediate 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.

Opioid Remediation Fund (ORF)

The Opioid Remediation Fund(ORF) authorizes the Alaska Department of Health (DOH) to expend money in the fund without further legislative appropriation to support opioid addiction treatment, recovery, remediation, and education. 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 promptly ensure that critical services reach Alaskans.