Where do these monies live?

The state’s 25% share of settlement funds is deposited into the “settlement account” established within the Opiate Epidemic Response Fund.[1] Excepting certain set-asides,[2] including monies for Tribal agency projects that provide child protection services,[3] these “settlement account” monies are appropriated to the Minnesota Department of Human Services for distribution as grants “as specified by” the Opioid Epidemic Response Advisory Council.[4]

What can this share be spent on?

In general, and with limited exceptions,[5] this share must be spent on the approved uses described in Exhibit A, which is identical to the national settlement agreements’ Approved Uses list (i.e., Exhibit E) and provides 13 categories of abatement strategies, programming, and services.[6] Uses of funds are restricted to future remediation activities, which prohibits reimbursement uses of opioid settlement proceeds.[7]

The Opioid Epidemic Response Advisory Council (Council), which directs the Commissioner of Human Services’ grantmaking of “settlement account” monies,[8] is also required by state law to focus on four specific priorities:

• Prevention and education[9]

• Training on the treatment of opioid use disorder[10]

• Expanding the continuum of care for opioid-related substance use disorders[11]

• Developing measures to assess and protect the accessibility of pain medications for those with specified conditions, including severe chronic pain[12]

Who ultimately decides how to spend this share (and how)?

Opioid Epidemic Response Advisory Council decides, Minnesota Department of Human Services administers. Excepting certain set-asides,[13] including monies for Tribal agency projects that provide child protection services,[14] this share is distributed by the Minnesota Department of Human Services (DHS) as grants based on proposals selected by the Opioid Epidemic Response Advisory Council.[15]

“In accordance with statutory requirements, the Opioid Epidemic Response Advisory Council works with DHS to issue a Request for Proposal (RFP); the Council makes recommendations on grant awards, and DHS awards the grants.”[16]

The Council’s grant award update from 2022 describes a process by which DHS-recruited reviewers, chosen to reflect Minnesota’s various diversities,[17] read and scored requests for proposals. These initial reviews were passed onto “a small subcommittee” tasked with making recommendations to the full Council, which reviewed and ultimately approved the recommendations of the subcommittee.[18]

The state is required to collaborate with local governments on settlement spend, “including through the sharing of expertise, training, and technical assistance,” and to coordinate with community stakeholders to share best practices.[19]

Are supplantation uses prohibited for this share?

Supplantation is partially prohibited (for Tribal social service agency initiative projects only). State law explicitly prohibits only appropriations to Tribal social service agency initiative projects from being spent to “supplant current state or local funding received for child protection services for children and families who are affected by addiction.”[20] This means that portions of the 25% state share not spent on these Tribal social service agency initiatives may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

Yes (no public reporting required, only intrastate). View annual “Grantee List” reports on the Opioid Epidemic Response Advisory Council’s website. You can also view expenditures on the Opioid Epidemic Response Spending Dashboard.[21] State law requires the Council and DHS Commissioner to submit a report with expenditure information each year to certain legislative leaders.[22]

Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.

What else should I know?

In addition to the opioid “settlement account,” the state’s Opiate Epidemic Response Fund includes a registration and license fee account to hold monies drug manufacturers and wholesalers pay to do business in the state (a scheme described in Minn. Stat. Sec. 151.065 and Sec 151.066).[23]

Citations

1. Minn. Stat. Secs. 256.043, subd. 1(a) (“The commissioner of management and budget shall establish within the opiate epidemic response fund two accounts: … a registration and license fee account; and … a settlement account”), (c) (“shall deposit into the settlement account any money received by the state resulting from a settlement agreement … related to alleged violations of consumer fraud laws in the marketing, sale, or distribution of opioids in this state or other alleged illegal actions that contributed to the excessive use of opioids”); Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. II.B(i) (“25% directly to the State (‘State Abatement Fund’)”),. See also Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. VI.K (“Any funds that the State receives from the National Settlement Agreements as attorney fees and costs or in lieu of attorney fees and costs, including the Additional Restitution Amounts, will be treated as State Abatement Funds”). ↑

2. Including monies to make up the balance in the separate registration and license fee account, which is also housed in the Opiate Epidemic Response Fund, and allocations to state agencies to administer and monitor the funds. Minn. Stat. Sec. 256.043, subd. 3a(b)-(d). ↑

3. Minn. Stat. Sec. 256.043, subd. 3a(d). ↑

4. Minn. Stat. Sec. 256.043, subd 3a(e). ↑

5. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Secs. I (“Consistent with the terms of the National Settlement Agreements and Bankruptcy Resolutions, ‘Approved Uses’ shall include the reasonable administrative expenses”), IV.C (capping administrative expenses at 10%). See also Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. VI.K (“For the avoidance of doubt, no portion of the State Abatement Fund will be used to fund the Backstop Fund or in any other way to fund any Litigating Local Government’s attorney fees and expenses”); Minn. Stat. Sec. 256.042, subd. 4(b) (“No more than ten percent of the grant amount [awarded by the Council] may be used by a grantee for administration”). ↑

6. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Secs. I (defining “Approved Uses” to mean “forward-looking strategies, programming, and services to abate the opioid epidemic that fall within the list of uses on Exhibit A”), IV.A (“This MOA requires that Opioid Settlement Funds be utilized only for future opioid remediation activities, and Parties shall expend Opioid Settlement Funds only for Approved Uses”) See also Local Public Health Guide to Spending Opioid Settlement Funds. Minnesota Department of Health website. Accessed August 8, 2024 (“The agreement provides 13 categories of strategies (A through M) that communities can implement using opioid settlement funds as well as a list of specific examples of strategies that fall under the category”). ↑

7. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.A (“This MOA requires that Opioid Settlement Funds be utilized only for future opioid remediation activities, and Parties shall expend Opioid Settlement Funds only for Approved Uses and for expenditures incurred after the effective date of this MOA, unless execution of the National Settlement Agreements requires a later date”). See also Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. I (“Reimbursement by the State or Local Governments for past expenses are not Approved Uses”). ↑

8. Minn. Stat. Sec. 256.043, subd. 3a(e). ↑

9. Minn. Stat. Sec. 256.042, subd. 1(a)(1) (“including public education and awareness for adults and youth, prescriber education, the development and sustainability of opioid overdose prevention and education programs, the role of adult protective services in prevention and response, and providing financial support to local law enforcement agencies for opiate antagonist programs”). ↑

10. Minn. Stat. Sec. 256.042, subd. 1(a)(2) (“training on the treatment of opioid addiction, including the use of all Food and Drug Administration approved opioid addiction medications, detoxification, relapse prevention, patient assessment, individual treatment planning, counseling, recovery supports, diversion control, and other best practices”). ↑

11. Minn. Stat. Sec. 256.042, subd. 1(a)(3) (“including primary prevention, early intervention, treatment, recovery, and aftercare services”). ↑

12. Minn. Stat. Sec. 256.042, subd. 1, paragraph (a)(4) (“the development of measures to assess and protect the ability of cancer patients and survivors, persons battling life-threatening illnesses, persons suffering from severe chronic pain, and persons at the end stages of life, who legitimately need prescription pain medications, to maintain their quality of life by accessing these pain medications without facing unnecessary barriers. The measures must also address the needs of individuals described in this clause who are elderly or who reside in underserved or rural areas of the state”) ↑

13. Including monies to make up the balance in the separate registration and license fee account, which is also housed in the Opiate Epidemic Response Fund, and allocations to state agencies to administer and monitor the funds. See Minn. Stat. Sec. 256.043, subd. 3a(b)-(e). See also Minn. Stat. Sec. 256.042, subd. 5(e) (requiring advisory council’s annual report to “include recommendations on whether the appropriations to the specified entities under Laws 2019, chapter 63, should be continued, adjusted, or discontinued; whether funding should be appropriated for other purposes related to opioid abuse prevention, education, and treatment; and on the appropriate level of funding for existing and new uses”). ↑

14. Minn. Stat. Sec. 256.043, subd. 3a(d). ↑

15. Minn. Stat. Secs. 256.042, subd.4(b); 256.043, subd 3a(e). See also Minn. Stat. Sec. 256.042, subd. 1(b)(3) (“The council shall: recommend to the commissioner of human services specific projects and initiatives to be funded”), subd. 4(a) (“The commissioner of human services shall submit a report of the grants proposed by the advisory council to be awarded for the upcoming calendar year to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services policy and finance, by December 1 of each year, beginning December 1, 2022”). ↑

16. Grant Award Update & Evidence-Based Analysis of Opioid Legislative Appropriations. Opioid Epidemic Response Advisory Council. Minnesota Department of Human Services Legislative Report. February 2022. Accessed August 12, 2024. ↑

17. Grant Award Update & Evidence-Based Analysis of Opioid Legislative Appropriations. Opioid Epidemic Response Advisory Council. Minnesota Department of Human Services Legislative Report. February 2022. Accessed August 12, 2024 (“DHS recruited potential reviewers from across the state based on previously established categories of stakeholders representing people of diverse cultural and ethnic backgrounds and statewide geographic representation including greater Minnesota and the metro areas”). ↑

18. Grant Award Update & Evidence-Based Analysis of Opioid Legislative Appropriations. Opioid Epidemic Response Advisory Council. Minnesota Department of Human Services Legislative Report. February 2022. Accessed August 12, 2024. ↑

19. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.F (“Collaboration”). ↑

20. Minn Stat. Sec. 256.043, Subds. 3a(d) (providing that appropriations of settlement funds to Tribal social service agency initiative projects are subject to Subd. 3(m)'s maintenance of effort requirement), Subd. 3(m) (providing that county social service agencies and tribal social service agencies "must not use funds received [from the registration and license fee account] to supplant current state or local funding received for child protection services for children and families who are affected by addiction"). ↑

21. By selecting the “Combined Settlement/OER Fees (OERAC directed)” checkbox under “Funding Source (Directed By).” Opioid Epidemic Response Spending Dashboard. Minnesota Management and Budget website. Accessed September 1, 2024. ↑

22. Minn. Stat. Secs. 256.042, subd. 4(a) (“commissioner of human services shall submit a report of the grants proposed by the advisory council to be awarded for the upcoming calendar year to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services policy and finance, by December 1 of each year, beginning December 1, 2022.”), subd. 5(a) (“The advisory council shall report annually to the chairs and ranking minority members of the legislative committees with jurisdiction over health and human services policy and finance by January 31 of each year. The report shall include information about the individual projects that receive grants, the municipality projects funded by direct payments received as part of a statewide opioid settlement agreement, and the overall role of the project in addressing the opioid addiction and overdose epidemic in Minnesota. The report must describe the grantees and municipalities and the activities implemented, along with measurable outcomes as determined by the council in consultation with the commissioner of human services and the commissioner of management and budget. At a minimum, the report must include information about the number of individuals who received information or treatment, the outcomes the individuals achieved, and demographic information about the individuals participating in the project; an assessment of the progress toward achieving statewide access to qualified providers and comprehensive treatment and recovery services; and an update on the evaluations implemented by the commissioner of management and budget for the promising practices and theory-based projects that receive funding”). ↑

23. Minn. Stat. Sec. 256.043, subd. 1(a), (b) (“The commissioner of management and budget shall deposit into the registration and license fee account the registration fee assessed by the Board of Pharmacy under section 151.066 and the license fees identified in section 151.065, subdivision 7, paragraphs (b) and (c)”). ↑

Has the state established an advisory body for settlement funds?

Yes. The Opioid Epidemic Response Advisory Council (OERAC) was created by state law in 2019 and predates the first national opioid settlements with Distributors and Janssen,[1] from which funds were distributed starting in 2022.[2] The OERAC’s mandate — to “develop and implement a comprehensive and effective statewide effort to address the opioid addiction and overdose epidemic in Minnesota” — extends beyond investments funded by opioid settlements.[3] The Minnesota Department of Human Services provides staff and administrative support.[4]

The OERAC selects grant proposals and funding amounts,[5] and is required by state law to focus on four general goals: prevention and education, training on treatment for opioid use disorder (OUD), the expansion and improvement of care for OUD, and the “development of measures to assess and protect” patients’ access to “legitimately need[ed] prescription pain medications.”[6] Its specific responsibilities include:

• Reviewing local, state, and federal initiatives related to education, prevention, and treatment related to OUD[7]

• Establishing priorities and recommending specific projects and initiatives to the Commissioner of Human Services[8]

• Making sure that available funding, including opioid settlement funds, are aligned with other sources of state and federal funding to maximize coordination and impact[9]

• Supporting the development of an “administrative and organizational framework” for the sustainable and ongoing allocation of opioid settlement funds from the 25% state share[10]

• Consulting with the Commissioners of Human Services, Health, and Management and Budget to develop outcomes to measure the effectiveness of allocated funds[11]

• Consulting “relevant stakeholders,” including localities, to review reporting requirements and recommend any changes necessary “to ensure that the required reporting accurately measures progress in addressing the harms of the opioid epidemic”[12]

• Reviewing localities’ resulting reports, data, and performance measures[13]

• Meeting individually with Minnesota’s 11 federally recognized tribal nations at least annually to “collaborate and communicate on shared issues and priorities”[14]

Meetings of the OERAC are required to occur at least quarterly,[15] but historically have taken place monthly, with both virtual and in-person attendance options.

Is the state advisory body required to include member(s) with lived and/or living experience?

Yes. The OERAC is required by state law to include “one member who is in opioid addiction recovery.”[16]

What is the overall membership of the state advisory body?

The Opioid Epidemic Response Advisory Council's (OERAC) current members are listed here. The composition of its membership is defined by state law to include the Commissioners of Human Services, Health, and Corrections (or their designees) as non-voting, ex officio members, and 20 voting members, over half of whom are appointed by the Commissioner of Human Services:[17]

• Two (2) members of the Minnesota House of Representatives appointed by House leadership[18]

• Two (2) members of the Minnesota Senate appointed by Senate leadership[19]

• One (1) member appointed by the Board of Pharmacy

• One (1) physician appointed by the Minnesota Medical Association

• One (1) addiction psychiatrist appointed by the Minnesota Society of Addiction Medicine

• One (1) member appointed by the Minnesota Hospital Association

• One (1) member currently serving with an ambulance service as an EMT or paramedic appointed by the Minnesota Ambulance Association

• Eleven (11) members appointed by the Commissioner of Human Services, who must coordinate these appointments to provide “geographic, racial, and gender diversity” and must also ensure that at least one-third of their appointees live outside the Twin Cities seven-county metropolitan area. “[T]o the extent practicable, at least one … must represent a community of color disproportionately affected by the opioid epidemic.”[20]

  • One (1) member representing state-licensed opioid treatment, sober living, or substance use disorder programs

  • One (1) member representing professionals who provide alternative pain management therapies (e.g., acupuncture or massage)

  • One (1) member representing nonprofit organizations whose work addresses the opioid overdose epidemic[21]

  • One (1) judge or law enforcement officer representing state courts

  • One (1) member of the public living in Minnesota and “in opioid addition recovery”

  • Two (2) members who are tribal representatives (Ojibwe tribes and Dakota tribes)

  • One (1) member who represents an urban American Indian community

  • One (1) member who lives in Minnesota and “is suffering from chronic pain, intractable pain, or a rare disease or condition”

  • One (1) mental health advocate representing people with mental illness

  • One (1) member representing a local health department

Voting members serve 3-year terms.[22]

Are local governments required to establish a settlement advisory body? If so, are local advisory bodies required to include member(s) with lived and/or living experience?

No (up to each locality). Local governments in Minnesota are not required to establish opioid settlement advisory bodies. However, localities may independently choose to establish advisory councils that include members with lived and/or living experience to help ensure that settlement spending reflects community priorities (e.g., Beltrami County’s Opioid Steering Committee, Polk County’s Opioid Settlement Advisory Council, St. Louis County’s Opioid Remediation Settlement Advisory Committee).[23]

What else should I know?

Not applicable.

Citations

1. 2019 MN HF 400. Codified at Minn. Stat. Ann. Sec. 256.042. ↑

2. See OpioidSettlementTracker.com’s Global Settlement Tracker for more information. ↑

3. Minn. Stat. Ann. Sec. 256.042, Subd. 1(a). ↑

4. Minn. Stat. Ann. Sec. 256.042, Subd. 2(e). ↑

5. Minn. Stat. Ann. Sec. 256.042, Subd. 4(b). ↑

6. Minn. Stat. Ann. Sec. 256.042, Subd. 1(a)(1)-(4). ↑

7. Minn. Stat. Ann. Sec. 256.042, Subd. 1(b)(1). ↑

8. Minn. Stat. Ann. Sec. 256.042, Subd. 1(b)(2)-(3). ↑

9. Minn. Stat. Ann. Sec. 256.042, Subd. 1(b)(4). ↑

10. Minn. Stat. Ann. Sec. 256.042, Subd. 1(b)(6). ↑

11. Minn. Stat. Ann. Sec. 256.042, Subd. 1(b)(5) ↑

12. Minn. Stat. Ann. Sec. 256.042, Subd. 1(b)(8) ↑

13. Minn. Stat. Ann. Sec. 256.042, Subd. 1(b)(7). ↑

14. Minn. Stat. Ann. Sec. 256.042, Subd. 1(b)(9). ↑

15. Minn. Stat. Ann. Sec. 256.042, Subd. 2(d). ↑

16. Minn. Stat. Ann. Sec. 256.042, Subd. 2(a)(11). ↑

17. Minn. Stat. Ann. Sec. 256.042, Subd. 2(a)(1)-(18). See also Minn. Stat. Ann. Sec. 256.042, Subdiv. 2(a) (“appointed by the commissioner of human services except as otherwise specified”). ↑

18. One is appointed from the majority party by the Speaker of the House. The other is appointed from the minority party by the House minority leader. One of these members must represent a district outside the Twin Cities seven-county metropolitan area and the other must represent a district inside the Twin Cities seven-county metropolitan area. The minority leader is responsible for ensuring this geographic requirement is met. Minn. Stat. Ann. Sec. 256.042, Subd. 2(a)(1). ↑

19. One is appointed from the majority party by the Senate Majority Leader. The other is appointed from the minority party by the Senate minority leader. One of these members must represent a district outside the Twin Cities seven-county metropolitan area and the other must represent a district inside the Twin Cities seven-county metropolitan area. The minority leader is responsible for ensuring this geographic requirement is met. Minn. Stat. Ann. Sec. 256.042, Subd. 2(a)(2). ↑

20. Minn. Stat. Ann. Sec. 256.042, Subd. 2(b). ↑

21. Minn. Stat. Ann. Sec. 256.042, Subd. 2(a)(8) (“the commissioner's initial appointment being a member representing the Steve Rummler Hope Network, and subsequent appointments representing this or other organizations”). ↑

22. Minn. Stat. Ann. Sec. 256.042, Subd. 2(c). ↑

23. See also, e.g., Brown County’s Opioid Settlement Advisory Council, Cass County’s Opioid Settlement Fund Committee of the Board, Dakota County’s Opioid Response Advisory Committee, Otter Tail County’s Opioid Settlement Advisory Council, Southwest Health and Human Services’ Opioid Settlement Funding Advisory Council (“A collaboration between "Lyon, Murray, Pipestone, Redwood and Rock Counties”), Wright County’s Opioid Settlement Advisory Council. ↑

Can I provide input on spending?

The Minnesota settlement MOA requires state and local governments to “coordinate with trusted partners, including community stakeholders, to collect and share information about successful regional and other high-impact strategies and opioid treatment programs.”[1]

• 75% local share: Up to each locality (not required). Beyond the above general mandate, there is no specific obligation for the state to seek public input on the use of settlement funds. However, each may choose to seek such input. For example, Ramsey County launched a survey to collect community input on settlement fund uses and encourages members of the public to subscribe to the county’s opioid settlement specific updates.[2] Minneapolis and Steele County also conducted community surveys on settlement spending priorities.[3]

• 25% state share: Yes (not required). Beyond the above general mandate, there is no specific obligation for localities to seek public input on the use of settlement funds. However, the Opioid Epidemic Response Advisory Council's (OERAC) meetings are open to the public and often include time for public comment.[4]

  • Meetings are required to be held at least quarterly but in practice have been held monthly,[5] with both virtual and in-person attendance options.[6] Information on upcoming and past meetings is available on OERAC’s website.

  • State law also requires that meetings be held across different locations to promote geographic access, with at least half of meetings held outside the Twin Cities seven-county metropolitan area.[7]

Can I apply for grants?

Yes. Minnesota has established settlement-funded grant opportunities for which community organizations may apply. 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.

Where do I go for updates?

• For updates on the local share, a good starting point is to check the website for your county commission, city council, or local health department. See also individual localities’ opioid settlement-specific websites (e.g., Beltrami County, Hennepin County, Otter Tail County).[8]

  • See also the Association of Minnesota Counties’ Opioid Settlement Resources & Information and the League of Minnesota Cities’ Opioid Epidemic Information and Resources pages.

• For updates on the state share, visit the OERAC’s website and subscribe to updates from the Minnesota Department of Human Services.

What else should I know?

Minnesota’s counties are required to host an annual meeting with all their municipalities to receive input and promote collaboration on uses of opioid settlement funds. Though local governments are not specifically required to consider public input at these meetings, the meetings must be open to the public.[9]

Citations

1. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.F (Collaboration). ↑

2. Ramsey County Opioid Response Initiative (“Stay up-to-date”). Ramsey Conty website. Accessed September 1, 2024 (“Find the latest information about the Opioid Response Initiative in the May 2024 Overview Report (PDF). You can also sign up for email updates about the opioid settlement and use of resources in Ramsey County: Subscribe to Opioid Response Initiative”). See also

   Ramsey County Opioid Response Initiative (“Community feedback survey” under the “Working with community” drop-down menu). Ramsey Conty website. Accessed September 1, 2024 (“June - August 2022 - An electronic community feedback survey was available to Ramsey County residents and others who work in the county (including county employees). The survey asked for opinions on how important is it that Ramsey County prioritize resources for each defined remediation categories outlined in the 1st Opioid Settlement Agreement. Over 350 people responded”). ↑

3. City’s Health Department awards first round of opioid settlement funding to combat crisis. City of Minneapolis press release. March 12, 2024. Accessed September 1, 2024 (“We are looking for feedback on how to best support our community and use the opioid settlement funds”); Opioid Funding Prioritization. Steele County Public Health. Accessed September 1, 2024 (“Steele County Public Health sought public input utilizing a Funding Prioritization Survey from May 10th, 2023-October 1st, 2023. The data ... will be used to inform decision-making on funding distribution”). ↑

4. See, e.g., January 19, 2024 Meeting Agenda. Minnesota Opioid Epidemic Response Advisory Council. Accessed September 1, 2024 (including two “rounds” of public comment). See also Opioid Epidemic Response Advisory Council (“Opioid Epidemic Response Advisory Council meetings“). Minnesota Department of Human Services website. Accessed September 1, 2024 (“All meetings are open to the public. Public comment time during every meeting, submit questions about the public comment period to BHD_Opioid@state.mn.us); Minn. Stat. Ann. Sec. 256.042, Subd. 2(f) (subjecting OERAC to Minnesota’s Open Meeting Law, chapter 13D, which does not require that public meetings include the opportunity for public participation; read more about the Open Meeting Law’s rules and requirements here). ↑

5. Minn. Stat. Ann. Sec. 256.042, Subd. 2(d). ↑

6. Opioid Epidemic Response Advisory Council (“Opioid Epidemic Response Advisory Council meetings”). Minnesota Department of Human Services website. Accessed September 1, 2024 (“Live-streaming webcast: You can view a live-streaming Webex of each meeting … All guests will be muted so the council members can fully participate in the meeting. … To request a reasonable accommodation to make it possible for you to attend any of the meetings or view the live webcast, please send a request as soon as possible to BHD_Opioid@state.mn.us”). ↑

7. Minn. Stat. Ann. Sec. 256.042, Subd. 2(d). The seven counties include Anoka, Carver, Dakota, Hennepin, Ramsey, Scott, and Washington. See Minn. Stat. Ann. Sec. 473.121, Subd. 4 (defining “Metropolitan county”). ↑

8. See also, e.g., Brown County, Cass County, Dakota County, Polk County, Ramsey County Coalition, Southwest Health and Human Services, St. Louis County, Wright County. ↑

9. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.E(1) (Consultation and partnerships). ↑

Where do these monies live?

This share is distributed directly to participating local governments according to Exhibit B of Minnesota's settlement MOA,[1] which includes:

• All counties[2]

• Cities with populations of 30,000 or more[3]

• Cities that “have funded or otherwise managed an established health care or treatment infrastructure (e.g., health department or similar agency)”[4]

• Cities that had “initiated litigation against AmerisourceBergen, Cardinal Health, McKesson, or Janssen as of December 3, 2021”[5]

Localities must set up a separate revenue fund to hold their opioid settlement proceeds separate from other local monies,[6] and cities may opt to reallocate their shares to their counties.[7]

What can this share be spent on?

With limited exceptions,[8] this share must be spent on the approved uses described in Exhibit A, which is identical to the national settlement agreements’ Approved Uses list (i.e., Exhibit E) and provides 13 categories of abatement strategies, programming, and services.[9] (For a list of resources specific to each category, see the Department of Health’s Local Public Health Guide to Spending Opioid Settlement Funds).

Additionally, local governments’ uses of funds are restricted to future remediation activities, which prohibits reimbursement uses of opioid settlement proceeds entirely.[10]

Who ultimately decides how to spend this share (and how)?

Local governments decide autonomously (but must consult each other and report uses). Decisionmakers for the counties and municipalities will ultimately decide for themselves how to spend their monies on Exhibit A’s list of approved uses. To spend their settlement funds, elected city councils and county commissioners must pass a budget or separate resolutions that authorize the use of funds for specific Exhibit A expenditures.[11]

Localities are explicitly empowered to grant their shares to nonprofit organizations and charities and must monitor those uses,[12] and they can also jointly form partnerships with local stakeholders to support community-based initiatives.[13] Localities may pool their shares or use existing regional structures to make joint decisions.[14]

• For local governments with public health departments, public health departments serve as their lead agencies and “chief strategists” to identify and respond to local issues and advise on the disbursement of local settlement funds.[15] These local public health departments are required to convene community stakeholders, “should” consult their cities in their development of community health assessments, and are “encouraged” to work with law enforcement “where appropriate.”[16]

• Minnesota’s Memorandum of Agreement explicitly requires local governments in the same county area to regularly consult one another on spending priorities.[17] In addition to annually consulting their municipalities, counties must also host an annual public meeting to collect input on spend and to encourage collaboration among local governments “both within and beyond the county.”[18]

Are supplantation uses prohibited for this share?

No, supplantation is not prohibited. Minnesota does not explicitly prohibit supplantation uses of settlement funds from the 75% local share. This means that counties, cities, and towns may spend their shares in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

Yes (public reporting required). Visit the Opioid Epidemic Response Spending Dashboard and select “Settlement Funds (City/County) only” in the drop-down menu. All local expenditures must be annually reported to the Department of Human Services,[19] and the Department of Human Services is required to make the expenditure data publicly available.[20]

Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.

What else should I know?

Not applicable.

Citations

1. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Secs. I (defining “Participating Local Government” to mean “a political subdivision within the geographic boundaries of the State of Minnesota that has signed this Memorandum of Agreement and has executed a release of claims by signing on to the National Settlement Agreements”), II.B(ii) (“75% directly to abatement funds established by Participating Local Governments (‘Local Abatement Funds’)”), II.I, II.J (“The Local Abatement

   Funds shall be allocated to Participating Local Governments in such proportions as set forth in Exhibit B, attached hereto and incorporated herein by reference”). See also Opioid Settlement Payment Amounts. The Office of Minnesota Attorney General website. Accessed August 8, 2024. ↑

2. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. II.I(i). ↑

3. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. II.I(ii)(a) (“based on the United States Census Bureau’s Vintage 2019 population totals”). ↑

4. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. II.I(ii)(b). ↑

5. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. II.I(ii)(c). ↑

6. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Secs. III.A-B. ↑

7. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. II.L (“Any city allocated a share may elect to have its full share or a portion of its full share of current or future annual distributions of settlement funds instead directed to the county or counties in which it is located, so long as that county or counties are Participating Local Governments[s]”). ↑

8. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Secs. I (“Consistent with the terms of the National Settlement Agreements and Bankruptcy Resolutions, “Approved Uses” shall include the reasonable administrative expenses”), IV.A (“counsel for Litigating Local Governments may recover litigation costs, expenses, or attorney fees from the common benefit, contingency fee, and cost funds established in the National Settlement Agreements, as well as the Backstop Fund described in Section VI”), IV.C (capping administrative expenses at 10%), VI.C (“The Backstop Fund will be funded by seven percent (7%) of the share of each payment made to the Local Abatement Funds from the National Settlement Agreements … and will not include payments resulting from the Purdue, Mallinckrodt, or Endo Bankruptcies”) . ↑

9. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Secs. I (defining “Approved Uses” to mean “forward-looking strategies, programming, and services to abate the opioid epidemic that fall within the list of uses on Exhibit A”), IV.A (“This MOA requires that Opioid Settlement Funds be utilized only for future opioid remediation activities, and Parties shall expend Opioid Settlement Funds only for Approved Uses”). See also Local Public Health Guide to Spending Opioid Settlement Funds. Minnesota Department of Health Website. Accessed August 8, 2024 (“The agreement provides 13 categories of strategies (A through M) that communities can implement using opioid settlement funds as well as a list of specific examples of strategies that fall under the category”). ↑

10. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.A (“This MOA requires that Opioid Settlement Funds be utilized only for future opioid remediation activities, and Parties shall expend Opioid Settlement Funds only for Approved Uses and for expenditures incurred after the effective date of this MOA, unless execution of the National Settlement Agreements requires a later date”). See also Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. I (“Reimbursement by the State or Local Governments for past expenses are not Approved Uses”). ↑

11. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Secs. I (defining “Governing Body” to mean “for a county, the county commissioners of the county, and … for a municipality, the elected city council or the equivalent legislative body for the municipality”), III.C(1) (“Opioid Settlement Funds can be used for a purpose when the Governing Body includes in its budget or passes a separate resolution authorizing the expenditure”), III.C(2) (“The budget or resolution must (i) indicate that it is an authorization for expenditures of opioid settlement funds; (ii) state the specific strategy or strategies the county or city intends to fund, using the item letter and/or number in Exhibit A to identify each funded strategy, if applicable; and (iii) state the amount dedicated to each strategy for a stated period of time”). ↑

12. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. III.D (“Participating Local Governments may make contracts with or grants to a nonprofit, charity, or other entity with Opioid Settlement Funds”); Minnesota Opioids State-Subdivision Memorandum of Agreement Reporting and Compliance Addendum, Sec. I(f) (“Grant Requirements”). ↑

13. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.E(3). ↑

14. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.D. See, e.g., City, county work to reduce opioid impacts. KAALTV. May 31, 2024. Accessed August 8, 2024 (“In Southeastern Minnesota, the City of Rochester and Olmsted County are joining forces to create change with nearly $2 million in opioid settlement money. It’s a three-prong approach, with Public Health tackling prevention and the Drug and Alcohol Response Team (DART) focusing on treatment and recovery”). ↑

15. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.B. ↑

16. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.B. ↑

17. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Secs. IV.E(1)-(2). ↑

18. Amended Minnesota Opioids State-Subdivision Memorandum of Agreement, Sec. IV.E(1). ↑

19. Minnesota Opioids State-Subdivision Memorandum of Agreement Reporting and Compliance Addendum, Sec. I(a). See also Minn. Stat. Sec. 256.042, subd. 5(d) (“Municipalities receiving direct payments from a statewide opioid settlement agreement must report annually to the commissioner of human services on how the payments were used on opioid remediation”). ↑

20. Minnesota Opioids State-Subdivision Memorandum of Agreement Reporting and Compliance Addendum, Sec. I(e) (“DHS will publish actual expenditures by settlement agreement recipients in a publicly accessible dashboard or machine-readable data format, such as an Excel spreadsheet”). ↑

This Community Guide will describe how Minnesota is spending its opioid settlements and whether Minnesota is working to ensure community access to opioid settlement funds. Last revised September 1, 2024.

Here are the entities that ultimately decide how each of Minnesota’s opioid settlement shares are spent:

• 75% local share: decisionmakers for counties and cities

• 25% state share: (OERAC) (excepting certain set-asides established by the )

Association of Minnesota Counties

League of Minnesota Cities

Minnesota Department of Human Services

• • Grant Award Update & Evidence-Based Analysis of Opioid Legislative Appropriations (, )

Minnesota Department of Health

Minnesota Management and Budget

Minnesota Attorney General’s Office