15.293 Opioid abatement trust fund.
944 words·~4 min read·
/ky/chapter-15/15-293A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)As used in this section, "commission" means the Kentucky Opioid Abatement
Advisory Commission created in KRS 15.291.
(2)There is hereby established in the State Treasury a trust and agency account to be
known as the opioid abatement trust fund. Moneys in the fund shall be distributed
as described in subsection
(3)of this section unless inconsistent with an order of a
court of competent jurisdiction in connection with any settlement, judgment, or
bankruptcy proceeding for the purposes set forth in KRS 15.291.
(3)The fund shall consist of:
(a)Fifty percent (50%) of all proceeds received by the Commonwealth, counties,
consolidated local governments, urban-county governments, and cities of the
Commonwealth in any settlement, judgment, or bankruptcy proceeding
against any entity or person engaged in the manufacturing or distribution of
opioids to the extent included in a settlement agreement; and
(b)Any other moneys received from state appropriations, gifts, grants, federal
funds, or any other source not prohibited by law.
(a)The fund shall not consist of the remaining fifty percent (50%) of all proceeds
received by the Commonwealth, counties, consolidated local governments,
urban-county governments, and cities of the Commonwealth in any
settlement, judgment, or bankruptcy proceeding against any entity or person
engaged in the manufacturing or distribution of opioids to the extent that it is
not inconsistent with an order of a court of competent jurisdiction.
(b)The remaining fifty percent (50%) of all proceeds not included in the fund
shall be paid to counties, consolidated local governments, urban-county
governments, and cities of the Commonwealth in accordance with the
negotiation class distribution metrics established in In re National Prescription
Opiate Litigation, MDL No. 2804, Case No. 1:17-md-02804, in the United
States District Court for the Northern District of Ohio unless precluded by
order of a court of competent jurisdiction in connection with any settlement,
judgment, or bankruptcy proceeding. To the extent that the negotiation class
distribution metrics would result in a city receiving a sum total of less than
thirty thousand dollars ($30,000) in any individual settlement, judgment, or
bankruptcy proceeding, such payments shall be made to the county,
consolidated local government, or urban-county government in which that city
sits.
(c)1. Each recipient of moneys from the fund shall submit on an annual basis
a certification that the funds were used consistent with the criteria in
KRS 15.291(5), a description of the use of the funds, and any other
information as the commission requests through administrative
regulations promulgated in accordance with KRS Chapter 13A.
2. a. Each county, consolidated local government, urban-county
government, or city of the Commonwealth that receives any
proceeds under paragraph
(b)of this subsection shall submit on an
annual basis a certification that the funds were used consistent
with the criteria in KRS 15.291(5), a list of fund recipients and
amounts, a description of the use of the funds, and any other
information as the commission requests through the promulgation
of an administrative regulation.
b. If a trustee is appointed under paragraph
(b)of this subsection, the
certifications shall be sent to the trustee, and the trustee will
compile and submit one
(1)report to the commission.
c. If a trustee is not appointed, the certifications shall be submitted to
the commission as provided by administrative regulation.
d. Funds shall be withheld from any county, consolidated local
government, urban-county government, or city of the
Commonwealth that does not comply with this paragraph until
such time as compliance is achieved.
(d)To the extent that a settlement has been reached in any litigation against any
entity or person engaged in the manufacturing or distribution of opioids as
provided in paragraph
(a)of this subsection, each county, consolidated local
government, urban-county government, city, political subdivision, and public
agency, as that term is defined in KRS 61.805(2), of the Commonwealth shall
be deemed to have released its claims against the person or entity and its
affiliates and subsidiaries to the extent referenced in a settlement agreement,
consent judgment, order, or other document that reflects the terms of any
settlement.
(5)Amounts deposited in the fund shall be used only for the purposes described in
KRS 15.291.
(6)Notwithstanding KRS 45.229, moneys in the fund not expended at the close of a
fiscal year shall not lapse but shall be carried forward into the next fiscal year.
(7)Any interest earnings of the fund shall become a part of the fund and shall not
lapse.
(8)Moneys in the fund shall be distributed no less than annually.
(a)The Department of Law may recover its reasonable costs of litigation from the
moneys received under subsection (3)(a) of this section.
(b)The Department of Law may recover any direct costs, including employee
time, used to perform or administer the duties required by this section and
KRS 15.291 from the moneys received under subsection (3)(a) of this section.
The Department of Law shall report all such recovered costs to the
commission no less than annually.
(10)The commission shall continue to make distributions from the fund as long as
defendants in the opioid litigation make payments to the Commonwealth or until
the time that the moneys in the fund are exhausted.
(11)In the event an order of a court of competent jurisdiction precludes distribution of
the funds related to any settlement, judgment, or distribution in bankruptcy pursuant
to subsections
(3)and
(4)of this section, the Attorney General shall promulgate
administrative regulations in accordance with KRS Chapter 13A prescribing the
mechanism for the distribution of the funds in a manner that complies with the order of the court and effectuates the intent of this section to the maximum extent possible.