Where do these monies live?

This share is distributed to participating cities and counties according to Exhibit A of Oregon’s state-local agreement.[1] Unless a city opts to receive its monies directly, this share is distributed to its county.[2]

Note: This 55% allocation to localities applies to the grand majority, but not all, of Oregon’s opioid settlements.[3]

What can this share be spent on?

Excepting administrative expenses and attorneys’ fees,[4] this share must be spent on the uses described in the national settlement agreement’s (non-exhaustive) Exhibit E,[5] which includes prevention, harm reduction, treatment, recovery, and other strategies.

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

Local governments decide autonomously. Decisionmakers for the counties and cities will ultimately decide for themselves how to spend their monies on Exhibit E uses.[6] Any amounts not spent or committed within five years of receipt are transferred to the Opioid Settlement Prevention, Treatment and Recovery Fund.[7]

Is this share attached to an explicit bar against supplantation?

No, supplantation is not prohibited. Like most states, Oregon does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 55% local share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

Yes (public reporting required). View the state’s annual reports on the OHA’s Oregon Opioid Settlement Funds page.[8] Localities must report on their expenditures to the state each year,[9] and the state must publish an annual report on use of settlement funds statewide, including the 55% local share.[10]

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. State of Oregon Subdivision Agreement Regarding Distribution and Use of Settlement Funds (Agreement) 4(a) (“55% of the Oregon Settlement Funds shall be allocated to the OR Participating Subdivisions”) and 4(c)(i) (“The percentage for each OR Participating Subdivision is set forth in Exhibit A in the column entitled ‘Abatement Percentage’ (the ‘Local Allocation’). For the avoidance of doubt, non-litigating Oregon towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of OR Subdivision Funds”). The City of Portland automatically receives direct payment. Agreement 4(c)(iv). See also Oregon Supplement to Statement Allocation Agreement under the Mallinckrodt PLC, et al. Bankruptcy an Additional Settling Company Agreements (Supplement) 4(b) (“Fifty Five percent (55%) of total Additional Settlement Funds paid to Oregon will be allocated to OR Participating Subdivisions”). ↑

2. Agreement 4(c)(iii). “During [Fiscal Year 2022-2023], nine cities that were otherwise eligible to receive funds chose to reallocate their direct funds to their respective counties: Astoria, Central Point, Cornelius, Happy Valley, Hillsboro, Klamath Falls, Prineville, Redmond and Tigard.” Oregon Opioid Settlement Spending Report (FY 2022-2023). OHA. April 2024. Accessed September 1, 2024. ↑

3. See Oregon Opioid Settlement Funds. Oregon Health Authority (OHA). Accessed August 24, 2024 (describing Publicis and “[a]dditional restitution funds from Oregon Department of Justice” as “not subject to 55/45% split with subdivisions”). However, the state-local agreement and its subsequent supplement encompass most of Oregon’s opioid settlement funds. ↑

4. Agreement 4(d)(i) (“The OR Participating Subdivisions will establish an Oregon attorney fee back-stop fund (the ‘OR Back-Stop Fund’). The OR Back-Stop Fund will be funded by and deducted from OR Subdivision Funds prior to the distribution of any Local Allocation share to any OR Participating Subdivisions, shall be equal to no more than $2,500,000, and may be used only to pay the contingency fees due to Contingency Fee Counsel of the Litigating Local Governments”) and Agreement 4(e)(i) (capping administrative expenses at 5%). See also Supplement 5(a)(i) (imposing a 5% cap on administrative expenditures from the Mallinckrodt bankruptcy). Note: The carveouts for administrative spending and attorneys’ fees do not apply in the same way to monies received from the Mallinckrodt bankruptcy and other settlement agreements. Supplement 5(a)(ii) (prohibiting the use of funds from the Mallinckrodt bankruptcy for attorneys’ fees). Monies received by Oregon localities from the settlements with Allergan, CVS, Teva, Walgreens, and Walmart may not be spent on administrative costs or attorneys’ fees. Supplement 5(b)(i)-(ii). ↑

5. Agreement 4(c)(vii) (“Except as set forth in Sections 4.d [Provision for State Back-Stop Agreement] and 4.e [“Additional Costs”], Settlement Funds received by an OR Participating Subdivision shall be used for Approved Abatement Uses”), Agreement 2(e) (defining “Approved Abatement Uses” to mean “Opioid Remediation activities described in Exhibits E to the Distributor and Janssen Agreements”), and Distributor Settlement Agreement I.SS (“Exhibit E provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation. Qualifying expenditures may include reasonable related administrative expenses”). For example, the city of Salem plans to “use around $650,000 in opioid settlement money to avoid cutting services for addressing youth outreach and homelessness.” Joe Siess. Salem will continue youth, homeless outreach programs using opioid settlement money. Salem Reporter. July 13, 2024. Accessed August 24, 2024. ↑

6. Agreement 4(c)(ix). See also July 2023 Opioid Settlement Prevention, Treatment, and Recovery Update. OHA. July 2023. Accessed August 24, 2024 (“OHA is not overseeing local funds and cannot provide advice on how the funds should be spent”); Oregon Opioid Settlement Spending Report (FY 2022-2023). OHA. April 2024. Accessed September 1, 2024. (“Subdivisions will decide how their funds are used. These jurisdictions are required to report to the Oregon Department of Justice (DOJ) annually on how they have allocated their funds”); and Frequently Asked Questions: Oregon Opioid Settlement Funds. OHA. Updated April 16, 2024. Accessed August 24, 2024. (“Cities and counties will decide how their funds are used”; “All local allocation decisions are made locally”). ↑

7. Agreement 4(c)(vi). However, funds designated to support capital outlay projects must be expended or encumbered within seven years of receipt before they are transferred to the state. See also Supplement 4(b) (“Additional Settlement Funds allocated to OR Participating Subdivisions, whether NOAT II Funds or Additional Company Settlement Funds, shall be distributed to OR Participating Subdivisions in the same proportion and manner as OR Subdivision Funds are distributed under the Section 4(c) of the OSA).” ↑

8. See, e.g., Oregon Opioid Settlement Spending Report (FY 2022-2023) (hyperlinked as “Opioid Settlement Report ’22-‘23” on the OHA’s website). ↑

9. Agreement 5(a) (“Prior to September 1 of each year each OR Participating Subdivision … shall deliver an annual report to the Oregon Department of Justice … regarding how it expended OR Subdivision Funds during the prior fiscal year (July 1 - June 30)”). ↑

10. Agreement 5(d). See also Supplement 5(c) (applying Sections 5 (reporting and oversight) and 6 (audit) from the original state-local agreement to additional settlement funds). ↑

Can I provide input on spending?

• 55% 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, Eugene’s city council invites members of the public to request to speak at its meetings and email written testimony to mayorcouncilandcitymanager@eugene-or.gov,[1] while Salem has allowed members of the public to submit comments on a livestreamed work session regarding opioid settlement allocations in spring 2024.[2] Watch for other opportunities to weigh in on city and county spending decisions, such as city council meetings and town halls.

• 45% Opioid Settlement Prevention, Treatment, and Recovery Fund share: Yes (required). Oregon state law requires the Opioid Settlement Prevention, Treatment, and Recovery Board (OSPTR Board) to “receive testimony and input from the community” at its public meetings and “establish a process for the public to provide written comments and proposals at each meeting of the board.”[3] The OSPTR Board includes a dedicated public comment period at each of its meetings, typically towards the end of each meeting, and is required to hold at least four public meetings each year but has consistently met monthly since its inception.[4] Visit the OSPTR Board’s website to find upcoming meeting dates and agendas, as well as information about past meetings.[5] You can also submit written comments to the OSPTR Board by emailing Lisa.m.shields@dhsoha.state.or.us and apply for consideration to be appointed to the OSPTR board here.

  • Public discussion of annual reports. The Oregon State-Subdivision Agreement also requires the state to host a public meeting to discuss its annual settlement spending report.[6]

Can I apply for grants?

It depends. As of September 1, 2024, the state has not established any grant opportunities for the Opioid Settlement Prevention, Treatment and Recovery Fund share. Local governments may create grant programs to distribute funds from the 55% local share. 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 Portal (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?

• To find updates on the local share, a good starting point is to check the websites for your board of county commissioners, city council, or local health department. You can also refer to the Oregon Health Authority’s Oregon Opioid Settlement Funds page, which includes a "Local vs. State Opioid Settlement Funds" section.

• For updates on the Opioid Settlement Prevention, Treatment, and Recovery Fund share, visit the Oregon Health Authority’s (OHA) Oregon Opioid Settlement Funds page and the OSPTR Board’s website, and bookmark the OHA’s opioid settlement news feed.

What else should I know?

Not applicable.

Citations

1. See Alan Torres. On the agenda: Eugene fire service fee, Lane County drug deflection, opioid settlement. The Register-Guard. May 13, 2024. Accessed September 1, 2024. ↑

2. Public Meeting Calendar (“City Council Work Session - Options for Allocation of Opioid Settlement Funds”). City of Salem website. April 15, 2024. Accessed September 1, 2024. ↑

3. Oregon Laws 2022, Chapter 63, Section 6(5) (“The board shall conduct at least four public meetings in accordance with ORS 192.610 to 192.690 ["Records; Public Reports and Meetings”], which shall be publicized to facilitate attendance at the meetings and during which the board shall receive testimony and input from the community. The board shall also establish a process for the public to provide written comments and proposals at each meeting of the board”). ↑

4. Oregon Laws 2022, Chapter 63, Section 6(5). See OSPTR Board Meetings Archive. Oregon Health Authority website. Accessed September 1, 2024. ↑

5. See, e.g., July 10, 2024 meeting packet. ↑

6. State of Oregon Subdivision Agreement Regarding Distribution and Use of Settlement Funds, Sec. 5(f). ↑

Where do these monies live?

The state’s share is held in the Opioid Settlement Prevention, Treatment and Recovery Fund and continuously appropriated to the Oregon Health Authority (OHA).[1] Starting in 2024, 30% of the Fund is annually allocated to Oregon’s nine federally recognized tribes.[2]

Note: This 45% allocation applies to the grand majority, but not all, of Oregon’s opioid settlements.[3]

What can this share be spent on?

In general, and with limited exceptions,[4] this share must be spent on the uses described in the national settlement agreement’s (non-exhaustive) Exhibit E.[5] After a set-aside for a system to collect and publish information about the state’s substance use services,[6] all remaining monies must be spent on statewide and regional programming consistent with the national settlements, including but not limited to a 12-item list of approved expenditures that includes evidence-based or evidence-informed programs to provide connections to care, to address the needs of pregnant and parenting women with opioid use disorders, and to discourage or prevent misuse of opioids.[7]

The Opioid Settlement Prevention, Treatment, and Recovery Board has expressed its spending decisions to date using an eight-category list that includes harm reduction and overdose prevention; primary prevention; treatment; recovery; leadership, planning, and coordination; research and evaluation; and emerging issues.[8]

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

Opioid Settlement Prevention, Treatment, and Recovery Board decides. The Opioid Settlement Prevention, Treatment, and Recovery Board (OSPTR Board), created within the Oregon Health Authority (OHA), ultimately decides specific expenditures for this share.[9]

In determining Fund allocations, the OSPTR Board is required to be “guided and informed” by ​​​Oregon's Strategic Plan for Substance Use Services​, ongoing evaluations of its own programmatic efficacy, evidence-based and evidence-informed best practices, public input, and equity considerations for underserved populations.[10]

Is this share attached to an explicit bar against supplantation?

No, supplantation is not prohibited. Like most states, Oregon does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the “Opioid Settlement Prevention, Treatment, and Recovery Fund” share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

Yes (public reporting required). View the state’s annual reports on the OHA’s Oregon Opioid Settlement Funds page.[11] The state must publish an annual report on use of settlement funds statewide, including the 45% Fund share, each year.[12]

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. Oregon Laws 2022, Chapter 63, Sections 5(1)-(2). State of Oregon Subdivision Agreement Regarding Distribution and Use of Settlement Funds (Agreement) 4(a) (“45% of the Oregon Settlement Funds shall be allocated to the State of Oregon”) and Supplement 4 (45% of funds from the Mallinckrodt bankruptcy and additional settlement agreements allocated to the state). ↑

2. Oregon Opioid Settlement Funds. Oregon Health Authority (OHA). Accessed August 24, 2024 (“In January 2024 the OSPTR Board voted to allocate $27.7 million to the nine Federally Recognized Tribes in Oregon – this is equivalent to 30% of all funds anticipated this biennium. This 30% set-aside will continue throughout the life of the fund as additional settlement payments are deposited”). ↑

3. See Oregon Opioid Settlement Funds. OHA. Accessed August 24, 2024 (describing Publicis and “[a]dditional restitution funds from Oregon Department of Justice” as “not subject to 55/45% split with subdivisions”). However, the state-local agreement and its subsequent supplement encompass most of Oregon’s opioid settlement funds (describing Publicis and “additional restitution funds” as “not subject to 55/45% split with subdivisions”). ↑

4. Oregon Laws 2022, Chapter 63, Sec. 6(6)(a) (capping administrative expenses at 5%). See also Oregon Opioid Settlement Funds. OHA. Accessed August 24, 2024 (“2022 House Bill 4098 allows up to 5% of the OSPTR Fund to go to administrative expenses such as staffing, fund management, contracts, and grants management. A total of $1.3 million has been set aside for administrative expenses to date”). ↑

5. Oregon Laws 2022, Chapter 63, Sec. 6(6)(c) (monies in the Fund to be spent on “statewide and regional programs identified in the Distributor Settlement Agreement, the Janssen Settlement Agreement and any other judgment or settlement described in [state law]”). See also Distributor Settlement Agreement I.SS (“Exhibit E provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation. Qualifying expenditures may include reasonable related administrative expenses”). ↑

6. Oregon Laws 2022, Chapter 63, Sec. 6(6)(b). ↑

7. Oregon Laws 2022, Chapter 63, Sec. 6(6)(c)(A)-(L). ↑

8. See Oregon Opioid Settlement Funds. OHA. Accessed August 24, 2024 (“After the Tribal set-aside, the OSPTR Board is disbursing the funds across eight categories…”). ↑

9. Oregon Laws 2022, Chapter 63, Sec. 6(1) (“The Opioid Settlement Prevention, Treatment, and Recovery Board is created in the Oregon Health Authority for the purpose of determining the allocation of funding from the Opioid Settlement Prevention, Treatment, and Recovery Fund”). See also Oregon Opioid Settlement Funds. OHA. Accessed August 24, 2024 (“This fund is controlled by the 18-member Oregon Opioid Settlement Prevention, Treatment and Recovery Board. Oregon Health Authority provides staff support to the OSPTR Fund and Board”) and Frequently Asked Questions: Oregon Opioid Settlement Funds. OHA. Updated April 16, 2024. Accessed August 24, 2024 (“OHA has one representative on the OSPTR Board, per House Bill 4098. The agency has no specific decision-making authority to determine how the State portion of opioid settlement funds are allocated. The OSPTR Board makes these decisions”). ↑

10. Oregon Laws 2022, Chapter 63, Sec. 6(6)(d)(A)-(F). ↑

11. See, e.g., Oregon Opioid Settlement Spending Report (FY 2022-2023) (hyperlinked as “Opioid Settlement Report ’22-‘23” on the OHA’s website). ↑

12. Agreement 5(d). See also Supplement 5(c) (applying Sections 5 (reporting and oversight) and 6 (audit) from the original state-local agreement to additional settlement funds). ↑

• [1]

Oregon Health Authority

• (April 2024)

Oregon Alcohol and Drug Policy Commission

Save Lives Oregon

[1] Last accessed September 1, 2024. ↑

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

• 55% local share: local officials for counties and cities

• 45% Opioid Settlement Prevention, Treatment, and Recovery Fund share:

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

Has the state established an advisory body for settlement funds?

Yes. Oregon state law establishes the Opioid Settlement Prevention, Treatment, and Recovery Board (OSPTR Board) to determine the allocation and use of monies from the 45% Opioid Settlement Prevention, Treatment, and Recovery Fund share.[1] The OSPTR Board is required to hold at least four public meetings each year,[2] but it has consistently met monthly since its inception (generally on the first Wednesday of each month).[3] The OSPTR Board is required to receive community input and to operate in compliance with the state’s public meetings law.[4]

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

Not necessarily. Oregon state law requires that the OSPTR Board include “[a]n individual who has experienced a substance use disorder or a representative of an organization that advocates on behalf of individuals with substance use disorders”[5] This means that the statutory membership requirements can be satisfied without the inclusion of an individual with lived experience.

What is the overall membership of the state advisory body?

The OSPTR Board is an 18-member body with 15 voting members and 3 non-voting members.[6]

Virtually all voting members are ultimately appointed by the governor,[7] with appointments for certain OSPTR Board seats limited to a list of recommended candidates.[8] The 15 voting members include:[9]

• A policy advisor to the governor

• One representative from each of the Oregon Department of Justice, Oregon Health Authority, and Oregon Department of Human Services

• Director of the Alcohol and Drug Policy Commission or their designee

• Chairperson of the Oversight and Accountability Council (“established in ORS 430.388”) or the chairperson’s designee[10]

• Individual representing Clackamas, Washington, or Multnomah County

• Individual representing Clatsop, Columbia, Coos, Curry, Jackson, Josephine, Lane, or Yamhill County

• Individual representing the City of Portland

• Individual representing a city with more than 10,000 residents

• Individual representing a city with 10,000 or fewer residents

• Representative of the Oregon Coalition of Local Health Officials or its successor organization

• Representative of a community mental health program

• Individual who has experienced a substance use disorder or a representative of an organization that advocates on behalf of individuals with substance use disorders

• Individual representing law enforcement, first responders, or jail commanders or wardens

The three non-voting OSPTR Board members include:[11]

• Member of the Oregon House of Representatives, appointed by its Speaker

• Member of the Oregon Senate, appointed by its President

• Oregon State Court Administrator or designee

A list of current OSPTR Board members is available here.[12] Members are appointed to four-year terms and may be reappointed to additional terms.[13]

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 Oregon 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.[14]

What else should I know?

Not applicable.

Citations

1. Oregon Laws 2022, Chapter 63, Section 6(1). ↑

2. Oregon Laws 2022, Chapter 63, Section 6(5). ↑

3. See OSPTR Board Meetings Archive. Oregon Health Authority website. Accessed September 1, 2024. ↑

4. Oregon Laws 2022, Chapter 63, Section 6(5). ↑

5. Oregon Laws 2022, Chapter 63, Section 6(1)(e)(B) (emphasis added). ↑

6. Oregon Laws 2022, Chapter 63, Section 6(1)(a)-(h) (Section 6(1)(f)-(h) describes the three nonvoting members). ↑

7. Oregon Laws 2022, Chapter 63, Section 6(1)(a)-(d). ↑

8. For OSPTR Board members representing local governments and the Oregon Coalition of Local Health Officials, the governor must appoint individuals from a list of candidates provided by the Association of Oregon Counties and the League of Oregon Cities. Oregon Laws 2022, Chapter 63, Section 6(1)(d). The governor must appoint the following three OSPTR Board members from a list of candidates provided by the other 12 voting members: (1) a representative of a community mental health program; (2) an individual who has experienced a substance use disorder or a representative of an organization that advocates on behalf of individuals with substance use disorders; and (3) an individual representing law enforcement, first responders, or jail commanders or wardens. Oregon Laws 2022, Chapter 63, Section 6(1)(e). ↑

9. Oregon Laws 2022, Chapter 63, Section 6(1)(a)-(e) (describing 12 voting members). ↑

10. The chairperson of this Council is appointed by the Director of the Oregon Health Authority. ORS Sec. 430.388(2)(a). ↑

11. Oregon Laws 2022, Chapter 63, Section 6(1)(f)-(h). ↑

12. See “OSPTR Board Members” drop-down menu. ↑

13. Oregon Laws 2022, Chapter 63, Section 6(3). ↑

14. For example, as of September 1, 2024, Union County was recruiting a “lay member” for its Opioid Abatement Advisory Committees. See Committee Members Needed. Union County website. Accessed September 1, 2024. ↑