Governor Dunleavy introduces legislation to create funds for opioid resources, remediation

On Friday, Governor Mike Dunleavy introduced legislation establishing 2 new state funds to combat opioid addiction in the state. The bill creates the Opioid Settlement Investment Fund (OSIF) and the Opioid Remediation Fund (ORF).

To date, Alaska has secured around $53 million in settlements from opioid lawsuits, and still anticipates another $30 million in settlements.

Both the OSIF and ORF come under Senate Bill 133, allows the state to disburse 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."

The goal of the Opioid Settlement Investment Fund (OSIF) is to allow the state to accumulate and leverage the money that is received from the current and anticipated opioid settlement agreements to provide a sustainable, long-term supply of resources to address the impacts from the opioid crisis and prevent the continuation of the opioid epidemic.

Under the bill's terms, the Alaska Department of Revenue (DOR) will invest the funds from the settlement agreements to grow the account while also allowing for an annual appropriation from the fund to remediate the ongoing opioid addiction in the state, all with the goal to ensure that future generations of Alaskans will have the support and assistance they need to combat and recover from opioid addiction.

The ORF authorizes the Alaska Department of Health (DOH) to disburse 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 granted to it by the legislature from the OSIF. By providing DOH with the ability to spend directly from the ORF, the state hopes to promptly ensure that critical services reach Alaskans.