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The Opioid Abatement Trust Fund holds the state government’s 50% share of opioid settlement funds (i.e., the “Commonwealth Share”).[1]
With limited exceptions,[2] funds from the Commonwealth Share must be spent on the uses described in state law, KRS 15.291(5).[3] This state law outlines:
28 categories of permissible forward-looking abatement projects.[4] These categories vary widely and include, for example, projects to provide access to opioid-abatement-related housing (e.g., supportive housing) and “evidence-informed treatment, recovery support, harm reduction, or other appropriate services to individuals with OUD and co-occurring SUD/MH issues” who are justice-involved.
3 categories of permissible reimbursement expenses: outpatient and residential treatment services, emergency response, and naloxone administration.[5]
Funds may also be used for "[a]ny other project deemed appropriate for opioid-abatement purposes by the [Kentucky Opioid Abatement Advisory Commission].”[6]
Kentucky Opioid Abatement Advisory Commission decides. The Kentucky Opioid Abatement Advisory Commission (KYOAAC) ultimately decides specific expenditures for the Commonwealth Share and distributes the funds via grants.[7] Both non-governmental entities such as community-based and non-profit organizations and government agencies may apply for grants through KYOAAC’s grant portal.[8]
The application process is as follows:
An application is submitted via the KYOAAC grant portal.
KYOAAC reviews applications on a continuous basis according to a range of criteria,[9] such as:
Applicant’s record of effectively utilizing settlement funds previously.
Geographic reach and extent to which project would reach un(der)served. populations.
Incorporation of relevant partnerships
Alignment with evidence-based practices.
Recipients of granted funds must certify quarterly to the KYOAAC that funds were used on the projects and reimbursement uses described in KRS 15.291(5).[10]
No, supplantation is not prohibited. Like most states, Kentucky does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 50% Commonwealth share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.
Yes (public reporting required). Visit the Real Dollars for Real Recovery website, which lists the grant amount, recipient, county, and category of funding. Kentucky state law requires KYOAAC to maintain a website on which it publishes funding awards and reports of funding.[11]
Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.
Not applicable.
Ky. Rev. Stat. Secs. 15.293(2), (3)(a). ↑
See Ky. Rev. Stat. Secs. 15.293(9)(a) (“The Department of Law may recover its reasonable costs of litigation from the moneys received under subsection (3)(a) of this section”), (9)(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”). ↑
Ky. Rev. Stat. Secs. 15.291(5), 15.293(5). ↑
Ky. Rev. Stat. Sec. 15.291(5)(b). ↑
Ky. Rev. Stat. Sec. 15.291(5)(a). ↑
Ky. Rev. Stat. Sec. 15.291(5)(b)(29). ↑
Ky. Rev. Stat. Sec. 15.291(5). See also Ky. Rev. Stat. Sec. 15.293(2) (providing that Opioid Abatement Trust Fund monies "shall not be appropriated or transferred by the General Assembly for any other purposes"). ↑
40 Ky. Admin. Regs. 9:010, Sec. 2 (“An entity or governmental agency shall be eligible for opioid abatement funding…”). See also 40 Ky. Admin. Regs. 9:010, Sec. 1(1) (defining “Entity” to have the same meaning as in KRS 14A.1-070(7)); Ky. Rev. Stat. Sec. 14A.1-070(7) (An “entity” is “a corporation, business or statutory trust, partnership, limited partnership, limited liability company, limited cooperative association, or unincorporated nonprofit association, governed as to its internal affairs by the laws of the Commonwealth of Kentucky”). Note that “[t]o submit an application using the OAAC Grant Portal, an applicant shall be required to become an approved state vendor.” 40 Ky. Admin. Regs. 9:010, Sec. 3(1). ↑
40 Ky. Admin. Regs. 9:010, Sec. 4(4). ↑
40 Ky. Admin. Regs. 9:010, Sec. 5(1).Ky. Rev. Stat. Sec. 15.293(4)(c)(1) describes an annual certification requirement for “[e]ach recipient of moneys from the fund,” but subsequent materials, including 40 KAR 9:010, establish a quarterly reporting requirement. Entities or governmental agencies that fail to comply with the certification requirement “forfeit any remaining fund received from the commission” and are banned from receiving future funds from the commission. 40 Ky. Admin. Regs. 9:010, Sec. 6(3)-(4). ↑
Ky. Rev. Stat. Sec. 15.291(7)(a). ↑
50% Commonwealth share: The Kentucky Opioid Abatement Advisory Commission.
50% local share: decisionmakers for counties, consolidated local governments, urban-county governments, and cities
Kentucky's local government share is distributed to its “counties, consolidated local governments, urban-county governments, and cities.”[1] Funds are distributed according to a pre-determined formula.[2] The Kentucky Association of Counties (KACo) recommends that local governments keep these monies in a separate special account/fund.
With limited exceptions,[3] each local government receiving funds from this share must spend at least 85% of the funds on the uses described in state law, KRS 15.291(5).[4] This state law outlines:
28 categories of permissible forward-looking abatement projects.[5] These categories vary widely and include, for example, projects to provide access to opioid-abatement-related housing (e.g., supportive housing) and “evidence-informed treatment, recovery support, harm reduction, or other appropriate services to individuals with OUD and co-occurring SUD/MH issues” who are justice-involved.
3 categories of permissible reimbursement expenses: outpatient and residential treatment services, emergency response, and naloxone administration.[6]
Funds may also be used for "[a]ny other project deemed appropriate for opioid-abatement purposes by the [Kentucky Opioid Abatement Advisory Commission].”[7]
Local governments decide autonomously (but must certify proper uses). Though decision-makers for the counties, consolidated local governments, urban-county governments, and cities decide for themselves how to spend their share,[8] they must also certify quarterly to the Kentucky Opioid Abatement Advisory Commission (KYOAAC) that funds were used according to KRS 15.291(5).[9]
Example: The Louisville Metro Department of Public Health and Wellness (LMPHW) determined priorities for funding, and the Louisville Metro Opioid Settlement Advisory Board reviewed funding proposals.[10] Its recommendations were jointly announced with the Mayor’s office and provided to the Louisville Metro Council,[11] who ultimately approved specific expenditures.[12]
No, supplantation is not prohibited. Like most states, Kentucky does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that counties, cities, and towns may spend their shares in ways that replace (or “supplant”) — rather than supplement — existing resources.
Up to each locality (neither public nor intrastate reporting required). The Kentucky Opioid Abatement Advisory Commission currently requires that local governments provide a “yes or no” certification that funds were spent according to approved uses, not to report specific expenditures,[13] and there are no centralized source(s) to view local expenditures.
Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.
Not applicable.
Ky. Rev. Stat. Secs. 15.293(4)(a) (“The [opioid abatement trust] 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”), (4)(b) (“To the extent that the negotiation class distribution metrics would result in a city receiving a total of less than $30,000 in any individual settlement, judgment, or bankruptcy proceeding, the payment is instead made to the county, consolidated local government, or urban-county government in which that city is located”). ↑
Ky. Rev. Stat. Sec. 15.293(4)(b) (“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”). This formula is based on factors such as population, amount of prescription opioid sales, number of people with pain reliever use disorder, and number of overdose deaths. ↑
See Ky. Rev. Stat. Secs. 15.295 (addressing local government feed fund). ↑
Ky. Rev. Stat. Secs. 14.293(4)(c)(2)(a), 15.295(4) (“No less than eighty-five percent (85%) of the proceeds received by each county, consolidated local government, urban-county government, or city of the Commonwealth shall go toward abatement of the opioid epidemic in those communities”). ↑
Ky. Rev. Stat. Sec. 15.291(5)(b). ↑
Ky. Rev. Stat. Sec. 15.291(5)(a). ↑
Ky. Rev. Stat. Sec. 15.291(5)(b)(29). State law also allows settlement funds to be used for any project that “[m]eets the criteria included in any settlement agreement or judgment between the parties listed in KRS 15.293(3)(a).” Ky. Rev. Stat. Sec. 15.291(b)(28). This means that funds from both the Commonwealth Share and Local Share may be spent for any purpose consistent with “Exhibit E” of the settlement agreements. ↑
Ky. Rev. Stat. Secs. 15.293(4)(b), (4)(c)(2). ↑
40 Ky. Admin. Regs. 9:020, Sec. 2. Failure to submit the required certifications or other noncompliance may result in a local government being required to reimburse the Kentucky Opioid Abatement Advisory Commission and/or have future funding withheld. Ky. Rev. Stat. Sec. 15.293(4)(c)(2)(d); 40 Ky. Admin. Regs. 9:020, Sec. 3(2). However, the basis for reimbursement is unclear since funds in this share are distributed directly to local governments and not otherwise controlled by KYOAAC. Additionally, Ky. Rev. Stat. Sec. 15.293(4)(c)(2)(a) describes an annual certification requirement for “[e]ach county, consolidated local government, urban-county government, or city of the Commonwealth that receives any proceeds,” but subsequent materials, including 40 Ky. Admin. Regs. 9:020, establish a quarterly requirement. See also Jennifer Burnett. Opioid Settlement – certification forms due Mar. 31, 2024. Kentucky Association of Counties website. March 4, 2024. Accessed August 21, 2024 (describing quarterly certification due dates: March 31, June 30, September 30, December 31”). ↑
Louisville Opioid Settlement 2024. Louisville Department of Public Health and Wellness. May 2024. Accessed August 21, 2024. ↑
See Mayor Greenberg provides weekly Louisville update. Louisville, KY website. April 16, 2024. Accessed August 21, 2024 (describing recommendations for second round of funding). See also Louisville Metro Government, Ordinance No. 105, Series 2023 (describing expenditures approved for first round of funding). ↑
Mayor Greenberg provides weekly Louisville update. Louisville, KY website. April 16, 2024. Accessed August 21, 2024 (“These expenditures must be approved by Metro Council before funds can be awarded”). ↑
This is despite a statutory mandate that local governments annually submit “a list of fund recipients and amounts” and “a description of the use of the funds.” Ky. Rev. Stat. Sec. 15.293(4)(c)(2)(a). ↑
50% Commonwealth share: Yes (not required). Though the Commonwealth is not required to seek public input on uses of its share,[1] the in-person meetings of the Kentucky Opioid Abatement Advisory Commission (KYOAAC) and its subcommittees include dedicated public comment periods.[2] The KYOAAC is required by state law to meet at least twice each calendar year but has consistently met more frequently.[3]
Meetings. Meetings are held at the Capitol Complex East in Frankfort and typically do not include a virtual attendance option. Meeting details are available on the KYOAAC’s website.
Town halls. In 2022, the KYOAAC held town halls across the state to provide an opportunity for community members to discuss the overdose crisis and recovery programming.[4]
50% local share: Up to each locality (not required). Local governments are not required to seek public input on uses of their shares. However, each may choose to seek such input. For example, in early 2024, Lexington’s Opioid Abatement Commission held several town halls to “give residents an opportunity to weigh in on how they think the money should be used.”[5] Watch for other opportunities to weigh in on city and county spending decisions, such as city council meetings and town halls.
Yes. The Kentucky Opioid Abatement Advisory Commission regularly awards grants from the 50% Commonwealth share, and community organizations are eligible to apply for funding.[6] You can create an account to seek KYOAAC funding here, read this FAQ on the application process, and see KYOAAC’s application review criteria.[7] Questions about the process can also be directed to kyoaac@ky.gov. Local governments also may create grant programs to distribute their share of funds. The existence, parameters, and processes for local settlement grant programs will vary by locality, so stay alert for new opportunities. Visit the Opioid Settlement Community Grants Portals (OpioidSettlementTracker.com and Legal Action Center) for the most up-to-date information on settlement grant opportunities for community organizations.
For updates on the Commonwealth share, visit the KYOAAC’s website.
To find updates on the local share, a good starting point is to check the website for your county fiscal court, city council, or local health department (e.g., Louisville). The Kentucky Association of Counties’ (KACo) Opioid Settlement Resources page hosts opioid settlement-related news and a publicly accessible Opioid Settlement Questions page to receive opioid settlement-related queries.
You can also sign up for updates from Community Education Group’s Appalachian Opioid Remediation (AOR) Database, which tracks information about the 13 states of Appalachia.
Not applicable.
The KYOAAC must comply with Kentucky’s open meetings law, but the law does not require public agencies to allow public comments or public participation in a meeting. Ky. Rev. Stat. Sec. 15.291(4)(a). ↑
See, e.g., June 4, 2024 Meeting Agenda. Kentucky Opioid Abatement Advisory Commission. Accessed September 1, 2024. ↑
Ky. Rev. Stat. Sec. 15.291(4)(b). ↑
See, e.g., Alana Watson. Kentucky commission tasked with distributing $478 million in opioid settlement funds plans website, town halls. WKU Public Radio. August 29, 2022. Accessed September 1, 2024. ↑
Lexington plans town hall meetings on opioid epidemic. Lexington-Fayette Urban County Government news release. February 16, 2024. Accessed September 1, 2024. ↑
40 Ky. Admin. Regs. 9:010, Sec. 2 (“An entity or governmental agency shall be eligible for opioid abatement funding…”). See also 40 Ky. Admin. Regs. 9:010, Sec. 1(1) (defining “Entity” to have the same meaning as in KRS 14A.1-070(7)); Ky. Rev. Stat. Sec. 14A.1-070(7) (An “entity” is “a corporation, business or statutory trust, partnership, limited partnership, limited liability company, limited cooperative association, or unincorporated nonprofit association, governed as to its internal affairs by the laws of the Commonwealth of Kentucky”). Note that “[t]o submit an application using the OAAC Grant Portal, an applicant shall be required to become an approved state vendor.” 40 Ky. Admin. Regs. 9:010, Sec. 3(1). ↑
See 40 Ky. Admin. Regs. 9:010, Sec. 4(4) (“Review of Applications”) (“In awarding funds, the commission shall consider…”). ↑
This Community Guide will describe how Kentucky is spending its opioid settlements and whether Kentucky is working to ensure community access to opioid settlement funds. Last revised September 1, 2024.
Ultimate Decisionmaker
(KYOAAC)
Local officials for counties, consolidated local governments, urban-county governments, and cities.
Decision-making Process
KYOAAC distributes funds via grants to entities (including nonprofits) and governmental agencies.
Localities decide autonomously but must certify proper uses.
Supplantation
Not prohibited
Not prohibited
Grant Funding
Yes. See .
Up to each locality (availability and processes will vary)
Public Input
Yes (not required). The Kentucky Opioid Abatement Advisory Commission permits public comment at its meetings.
Up to each locality (not required)
Advisory Body
Yes (required). See the .
The Commission is not necessarily required to include member(s) with lived and/or living experience.
Up to each locality (not required)
Expenditures
Public reporting required. The website lists past KYOAAC funding awards.
Neither public nor intrastate reporting required (but localities must certify uses to KYOAAC)
Updates
For updates on the Commonwealth share, visit the KYOAAC’s .
To find updates on the local share, a good starting point is to check the website for your county fiscal court, city council, or local health department (e.g., ). See also the Kentucky Association of Counties’ website.
Yes. The Kentucky Opioid Abatement Advisory Commission (KYOAAC) was created by state law.[1] The KYOAAC is responsible for awarding funds from the 50% Commonwealth share.[2]
In addition to its grantmaking role,[3] the KYOAAC is empowered to develop spending priorities,[4] work with state agencies and other stakeholders to develop project metrics,[5] recommend state or local policy changes,[6] and create regulations to carry out its duties.[7]
The KYOAAC has formed specialized subcommittees, including a Treatment and Recovery Subcommittee, as well as a Prevention, Reform, and Compliance Subcommittee.[8]
The KYOAAC is required to meet at least twice each calendar year,[9] though in practice it has met more frequently,[10] and its meetings must be conducted in accordance with Kentucky’s Open Meetings Law.[11]
Not necessarily. One appointee of the KYOAAC must represent “victims of the opioid crisis,”[12] but the law does not say that person must themselves have lived and/or living experience. A list of KYOAAC members may be found here.
The composition of KYOAAC’s nine (9) voting and two (2) non-voting members is defined by state law to include:[13]
State Attorney General or their designee, who serves as chair[14]
State Treasurer or their designee[15]
Secretary of the Cabinet for Health and Family Services (CHFS) or their designee[16]
Member appointed by the University of Kentucky from its HEALing Communities Study team[17]
Member appointed by the state Attorney General representing “victims of the opioid crisis”[18]
Member appointed by the state Attorney General representing “the drug treatment and prevention community”[19]
Member appointed by the state Attorney General representing law enforcement[20]
Two (2) citizens at large appointed by the state Attorney General[21]
Two (2) non-voting members appointed by the Speaker of the Kentucky House of Representatives and President of the Kentucky Senate, respectively[22]
KYOAAC members’ terms are served concurrently with their respective offices (state Attorney General, Treasurer, and CHFS Secretary, or their designees), staggered two-year terms (the remaining six voting members), or at the pleasure of their appointing authorities (non-voting legislative appointees).[23] Current KYOAAC members are listed here.
No (up to each locality). Local governments in Kentucky are not required to establish opioid settlement advisory bodies. However, localities may choose to establish advisory councils that include members with lived and/or living experience to help ensure that settlement spending reflects community priorities.
The Kentucky Attorney General (AG) exercises a notable level of influence over the KYOAAC’s composition. In addition to serving as a voting Chair, the AG appoints five of the remaining eight voting members.[24]
Ky. Rev. Stat. Sec. 15.291(1). ↑
Ky. Rev. Stat. Secs. 15.291(5). ↑
See KYOAAC Grant Portal and Real Dollars for Real Recovery grants map. ↑
Ky. Rev. Stat. Sec. 15.291(6)(b). ↑
Ky. Rev. Stat. Sec. 15.291(6)(c). ↑
Ky. Rev. Stat. Sec. 15.291(6)(d). ↑
Ky. Rev. Stat. Sec. 15.291(7)(b). ↑
See various subcommittee minutes here. ↑
Ky. Rev. Stat. Sec. 15.291(4)(b). ↑
See, e.g., Kentucky Opioid Abatement Advisory Commission (“2024 Meeting Schedule”). Kentucky Attorney General website. Accessed September 1, 2024. ↑
Ky. Rev. Stat. Sec. 15.291(4)(a). ↑
Ky. Rev. Stat. Sec. 15.291(2)(a)(5). ↑
Ky. Rev. Stat. Secs. 15.291(2)(a)-(b). See also Attorney General Coleman Announces Appointments to Opioid Commission. Kentucky Attorney General press release. July 2, 2024. Accessed September 1, 2024 (“The Commission is comprised of nine voting and two non-voting members including stakeholders from the prevention and treatment community, law enforcement and victims of the drug crisis”). ↑
Ky. Rev. Stat. Sec. 15.291(2)(a)(1). ↑
Ky. Rev. Stat. Sec. 15.291(2)(a)(2). ↑
Ky. Rev. Stat. Sec. 15.291(2)(a)(3). ↑
Ky. Rev. Stat. Sec. 15.291(2)(a)(4). ↑
Ky. Rev. Stat. Sec. 15.291(2)(a)(5). ↑
Ky. Rev. Stat. Sec. 15.291(2)(a)(6). ↑
Ky. Rev. Stat. Sec. 15.291(2)(a)(7). ↑
Ky. Rev. Stat. Sec. 15.291(2)(a)(8). ↑
Ky. Rev. Stat. Secs. 15.291(2)(b)(1)-(2). ↑
Ky. Rev. Stat. Secs. 15.291(3)(a)-(b), (2)(b). ↑
Ky. Rev. Stat. Secs. 15.291(3)(a)(1), (5)-(8). ↑
$869.8 million[1]
[1] Total is rounded. See The Official Opioid Settlement Tracker Tally. Accessed September 1, 2024.
50% to Opioid Abatement Trust Fund (Commonwealth Share) and 50% to local governments
Legislation (KRS Secs. 15.291, 15.293, 15.295); Regulations (40 KAR 9:010 and 40 KAR 9:020)