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

• 70% Opioid Abatement Fund share: Texas Opioid Abatement Fund Council (excepting certain set-asides established by the Texas state legislature)

• 15% state share: Texas state legislature and state agencies

• 15% local share: local officials for cities and counties

Where do these monies live?

Fifteen percent (15%) of the state’s opioid litigation proceeds are held in the Opioid Abatement Account and appropriated to state agencies.[1]

Note: Texas’ allocations of settlement funds between this Opioid Abatement Account and its Opioid Abatement Trust (which contains the state’s two other shares) are often settlement-specific.[2] See for more information.

What can this share be spent on?

This share must be spent on a list of approved uses described in state law:[3]

• prevention (“such as school-based prevention”)

• efforts to “prevent or reduce deaths … from opioid-related harms” (including making naloxone available to a wide-ranging list of eligible recipients)[4]

• training on OUD treatment (including “medical detoxification” and “diversion control,” among other “best practices”)[5]

• OUD treatment, “with an emphasis on programs that provide a continuum of care”

• access to medication (including opioid agonists, partial agonists, and antagonists)

• efforts to reduce the “abuse or misuse” of prescription medications[6]

• support for treatment alternatives (including “mobile health services and telemedicine … in rural areas”)[7]

• efforts to address the needs of people involved in the criminal legal system

• and a catch-all category to “further any other purpose related to opioid abatement authorized by appropriation”[8]

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

Is this share attached to an explicit bar against supplantation?

No, supplantation is not prohibited. Like most states, Texas does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 15% 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?

No (neither public nor intrastate reporting required). Opioid settlement expenditures are not officially published in a centralized location for this share.[10]

What else should I know?

Not applicable.

Citations

1. Tex. Gov’t Code Secs. 403.505(a) (describing dedicated account in the general revenue which is administered by the Comptroller) and 403.505(b) (“The account is composed of … money obtained from a statewide opioid settlement agreement and deposited in the account under Section 403.507”); Tex. Gov’t Code Sec. 403.507(b)(1) (“Of money obtained under a statewide opioid settlement agreement[,] 15 percent shall be deposited into the [Opioid Abatement] account”); Tex. Gov’t Code Sec. 403.505(c) (“Money in the account may be appropriated only to a state agency for the abatement of opioid-related harms”). ↑

2. See Tex. Gov’t Code Sec. 403.507(c) (“For the purposes of a statewide opioid settlement agreement in relation to a bankruptcy plan for a released entity, money is distributed in accordance with the bankruptcy plan”). ↑

3. Tex. Gov’t Code Sec. 403.505(d) (“A state agency may use money appropriated from the account only to…”) and Sec. 403.505(d)(1)-(9) (listing acceptable Opioid Abatement Account uses for this share). ↑

4. Including healthcare providers, first responders, people experiencing an overdose, families, schools, community-based service providers, social workers, or “other members of the public.” Tex. Gov’t Code Sec. 403.505(d)(2)(A)-(H). ↑

5. Tex. Gov’t Code Sec. 403.505(d)(3). ↑

6. Tex. Gov’t Code Sec. 403.505(d)(6). ↑

7. Tex. Gov’t Code Sec. 403.505(d)(7). ↑

8. Tex. Gov’t Code Sec 403.505(d)(9). ↑

Where do these monies live?

The Opioid Abatement Trust Fund initially holds 85% of the state’s litigation proceeds.[1] After 15% is distributed to local governments,[2] the remaining 70% in the Trust Fund is allocated this way:[3]

• $5 million to the Texas Access to Justice Foundation “for the purpose of providing basic civil legal services to indigent persons directly impacted by opioid-use disorders.”[4]

• The remaining to the Texas Opioid Abatement Fund Council (OAFC),[5] which subsequently allocates 1% to the Comptroller for administrative expenses,[6] 15% to hospital districts,[7] and 84% to opioid abatement strategies “developed by the Council.”[8]

The 84% of this share belonging to the OAFC — or 58.8% of Texas’ total statewide funds — is further broken down:[9]

• Seventy-five percent (75%) of funds allocated to a grant cycle must be distributed among the state’s 20 healthcare partnership regions according to defined regional allocations.[10] The OAFC may reallocate monies between regions in certain circumstances.[11]

• The remaining 25% of funds are allocated for “targeted interventions” in the regions approved by the OAFC.[12]

Note: Texas’ allocations of settlement funds between this Opioid Abatement Trust Fund and its Opioid Abatement Account (which contains a separate 15% state share) are often settlement-specific.[13] See Distribution of Opioid Settlement Proceeds for more information.

What can this share be spent on?

Aside from attorneys’ fees, administrative costs, and the set-asides for the Texas Access to Justice Foundation and hospital districts described above,[14] this share must be spent on an OAFC-approved list of uses “based on but not limited to the existing national list of abatement strategies” (i.e., Exhibit E).[15] OAFC regulations state further that in order to be eligible for funding, a strategy must be: an abatement strategy included in the national settlement agreements, supported by “evidence-based data,” and in compliance with applicable state and federal law.[16]

The OAFC’s grantmaking rules require it categorize its approved strategies into “treatment and coordination of care,” “prevention and public safety,” “recovery support services,” or “workforce development and training.”[17] The OAFC must also “rank each strategy in order of priority for grant funding,” [18] but is free to amend, recategorize, or reprioritize strategies.[19]

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

Texas Opioid Abatement Fund Council decides. The Texas Opioid Abatement Fund Council (OAFC) administers a grantmaking program to distribute monies from this share to abatement strategies.[20] The OAFC is the “sole decision-maker” on the allocation of these funds.[21]

Applicants from the state’s 20 healthcare partnership regions apply to the OAFC to receive funding from formulaically allocated regional shares.[22] “No single grant recipient” is allowed to receive 100% of the funds allocated to their respective region,[23] and each of the regions are required to “reserve” 25% of their grant allocations from the OAFC for “targeted interventions,”[24] which the OAFC establishes through parameters that include specific abatement strategies or certain geographic areas “based on opioid incidence information.”[25] The OAFC may use a portion of these targeted funds to develop an education and outreach program regarding opioid use, prevention, and interventions.[26]

The Opioid Abatement Fund Program rules describe a three-step grant application review process:

1. An initial screening is conducted by program staff members to determine compliance with application requirements. Grants that meet these requirements are submitted to the peer review panel.[27]

2. The peer review panel scores and recommends any changes to the applications to grant program staff.[28]

3. The OAFC votes on and decides which applications are approved after consulting peer review scores and recommendations.[29] The OAFC must ensure that grants are “allocated fairly,”[30] and may consider a non-exhaustive list of factors in its review, including the grant applicant’s experience, project’s timeline, any matching funds or sustainability plans, geographic location of the project, community partnerships, and “any additional factors” listed in the grant application.[31]

Is this share attached to an explicit bar against supplantation?

No, supplantation is generally not prohibited.[32] Like most states, Texas does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that monies from the 70% Texas Abatement Trust Fund generally may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources. However, state law provides that the Trust Fund’s “[g]rant funds may not be used for costs that will be reimbursed by another funding source.”[33] This provision ostensibly prevents “double-dipping” on funding sources and may limit some, but not all, supplantation uses of grant awards made out of the state’s Opioid Abatement Trust Fund share.[34]

Can I see how this share has been spent?

No (no public reporting required, only intrastate). Opioid settlement expenditures are not officially published in a centralized location for this share.[35] The OAFC must submit a report detailing its expenditures each year only to the legislature.[36]

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. Tex. Gov’t Code Sec. 403.506(a) (“The opioid abatement trust fund is a trust fund established outside of the state treasury”) and Tex. Gov’t Code Sec. 403.507(b)(2) (“Of money obtained under a statewide opioid settlement agreement … 85 percent shall be deposited into the fund”). See also Opioid Settlements at a Glance. Texas Opioid Abatement Fund Council (OAFC). Texas Comptroller website. Accessed August 27, 2024 (“Of the total amounts received from statewide opioid settlement agreements, 15 percent is deposited to the Opioid Abatement Account and 85 percent is deposited to the Opioid Abatement Trust Fund”). ↑

2. Tex. Gov’t Code Sec. 403.506(c)(1) (“The trust company shall … distribute to counties and municipalities to address opioid-related harms in those communities an amount equal to 15 percent of the total amount of money obtained under a statewide opioid settlement agreement and distributed to the fund and the account under Section 403.507”) and Tex. Gov’t Code Sec. 403.507 (describing initial allocation of 85% to the Opioid Abatement Trust Fund). See also Opioid Settlements at a Glance. OAFC. Texas Comptroller website. Accessed August 27, 2024 (“15 percent is distributed through the Trust Fund to counties and municipalities to address opioid-related harms in those communities”). ↑

3. Tex. Gov’t Code Sec. 403.506(c)(2) and Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet (Global Settlement Allocation Term Sheet) B.1-9 (“Allocation of Settlement Proceeds”). May 13, 2020. Accessed August 27, 2024. ↑

4. Tex. Gov’t Code Sec. 403.506(c)(2)(A) (“$5 million of the amount distributed to the fund to the Texas Access to Justice Foundation to be expended only on the order of the Supreme Court of Texas for the purpose of providing basic civil legal services to indigent persons directly impacted by opioid-use disorders, including children who need basic civil legal services as a result of opioid-use disorders by a parent, legal guardian or caretaker”). ↑

5. Tex. Gov’t Code Sec. 403.506(c)(2)(B) (“the remainder of that 70 percent to the council”). ↑

6. Sec. 403.508(a)(1) (“one percent to the comptroller for the administration of the council and this subchapter”) and Global Settlement Allocation Term Sheet Exhibit A, Sec. I.D (up to 1% of funds set aside for “the administration of the [Texas Opioid Abatement Fund] Council” including compensation for its Executive Director and other personnel, travel expenses of OAFC members). See also Tex. Gov’t Code Sec. 403.508(b) (“If the comptroller determines that the [1%] allocation [for administrative expenses] exceeds the amount that is reasonable and necessary for the comptroller to administer the council and this subchapter, the comptroller may reallocate the excess money [to the OAFC’s opioid abatement strategy]”). ↑

7. Tex. Gov’t Code Sec. 403.508(a)(2) (“15 percent to hospital districts”) and 34 Tex. Admin. Code Sec. 16.222 (“Hospital District Allocations”). See also Texas Comptroller Glenn Hegar Announces Opioid Abatement Fund Council's Approvals of Grant Plans and Proposed Rules. Texas Comptroller press release. November 29, 2023. Accessed August 27, 2024 (“During its regular meeting on Nov. 28, the OAFC approved … proposed rules to guide the fair and equitable distribution of an estimated $166.7 million in opioid settlement funds to more than 150 hospital districts over an estimated 18 years”). ↑

8. Tex. Gov’t Code Sec. 403.508(a)(3) (“the remaining money based on the opioid abatement strategy developed by the council under Section 403.509”). ↑

9. Tex. Gov’t Code Sec. 403.509(a)(1) and Global Settlement Allocation Term Sheet Exhibit A, Sec. II.D(1)-(3). ↑

10. Tex. Gov’t Code Sec. 403.509(a)(1)(A) (“The council shall determine and approve one or more evidence-based opioid abatement strategies that include … an annual regional allocation methodology to distribute 75 percent of money distributed under Section 403.508(a)(3) based on population health information and prevalence of opioid incidences as provided by law”); 34 Tex. Admin. Code. Sec. 16.202(e)(1)(A) (“Of the funds allocated to a grant cycle, 75% shall be allocated among the regional healthcare partnership regions”; describing specific percentage allocations for regions 1-20). See also Global Settlement Allocation Term Sheet Exhibit A, Sec. II.D(1) (referring to “Exhibit C”) and Exhibit C (“TX Opioid Council & Health Care Region Allocations plus Administrative Costs”). The State of Texas has disagreed with this categorization in its communications with Vital Strategies and OpioidSettlementTracker.com. See Community Guides Methodology. ↑

11. Tex. Gov’t Code Sec. 403.509(a)(2) (“The council shall … wholly or partly reallocate the targeted money between regions if a region for which targeted money is allocated is unable to use all of the targeted money”) and Sec. 403.509(b) (“The council may reallocate money between regions based on the funding needs of all regions if money allocated to a region lapses or is not used in the year that the money is allocated for use in the region”). See also Global Settlement Allocation Term Sheet Exhibit A, Sec. II.D(3) (“If a Region lapses its funds, the funds will be reallocated based on all Regions’ funding needs”). ↑

12. Tex. Gov’t Code Sec. 403.509(a)(1)(B) (“The council shall determine and approve one or more evidence-based opioid abatement strategies that include … an annual targeted allocation to distribute 25 percent of money distributed under Section 403.508(a)(3) for targeted interventions as identified by opioid incidence information”) and Global Settlement Allocation Term Sheet Exhibit A, Sec. II.D(2) (“Each Region shall reserve twenty-five (25) percent of the overall funds, for targeted interventions in the specific Region as identified by opioid incidence data. The Council must approve on an annual basis the uses for the targeted abatement strategies and applications available to every Region, including education and outreach programs. Each Region without approved uses for the targeted funds from the Council, based upon a greater percentage of opioid incidents compared to its population, is subject to transfer of all or a portion of the targeted funds for that Region for uses based upon all Regions’ targeted funding needs as approved by the Council on an annual basis”). ↑

13. See Tex. Gov’t Code Sec. 403.507(c) (“For the purposes of a statewide opioid settlement agreement in relation to a bankruptcy plan for a released entity, money is distributed in accordance with the bankruptcy plan”). ↑

14. Global Settlement Allocation Term Sheet C.4 (describing set aside for an attorneys’ fee-related backstop fund: “the funds to be deposited in the Texas Opioid Fee and Expense Fund shall be 9.3925% of the combined Texas Political Subdivision and Texas Abatement Fund portions of each payment (annual or otherwise) to the State of Texas for that settlement, plus expenses from the National Fund”). Tex. Gov’t Code Sec. 403.508(a)(1) (“one percent to the comptroller for the administration of the council and this subchapter”) and 34 Tex. Admin. Code Sec. 16.211(a) (“Allowable costs are costs that are reasonable and necessary for the proper and efficient performance and administration of the grant project, and allocable to the grant project”). ↑

15. See Global Settlement Allocation Term Sheet A.8 (“’Approved Purpose(s)’ shall mean those uses identified in Exhibit A hereto”); Global Settlement Allocation Term Sheet Exhibit A, Sec. II.A(1) (“The Council will develop the approved Texas list of [evidence-informed] abatement strategies based on but not limited to the existing national list of opioid abatement strategies”). Strategies on this list must be approved by a majority vote. Global Settlement Allocation Term Sheet Exhibit A, Sec. II.A(2). In practice, Texas refers to Exhibit E of the national settlements as the authority on what constitutes approved spending. See Funds Disbursements Eligible Uses of Opioid Abatement Funds). OAFC. Texas Comptroller website. Accessed August 27, 2024 (“Exhibit E - List of Opioid Remediation Uses (PDF) is a settlement document that contains a non-exhaustive list of Opioid Remediation Strategies that can guide states and political subdivisions in the spending of settlement funds”). ↑

16. 34 Tex. Admin. Code Sec. 16.201(a)(1)-(3). ↑

17. 34 Tex. Admin. Code Sec. 16.201(b)(1)-(4). ↑

18. 34 Tex. Admin. Code Sec. 16.201(c). ↑

19. 34 Tex. Admin. Code Sec. 16.201(d). ↑

20. Tex. Gov’t Code Sec. 403.506(d) (“The trust company shall distribute money allocated under Subsection (c)(2) at the direction of the council”) and Secs. 403.509(a)(3) (OAFC must “develop an application and award process for funding”), 403.509(a)(4) (OAFC must “review grant funding applications and provide grant awards and funding allocations”) ”), 403.509(a)(5) (OAFC must "monitor grant agreements … and require each grant recipient to comply with the terms of the grant agreement or reimburse the grant to the council”). See also Global Settlement Allocation Term Sheet B.3 (“The Texas Abatement Fund Share shall be allocated to the Opioid Council”) and Exhibit A, Sec. II.D (“The Council will develop the application and award process”). ↑

21. Global Settlement Allocation Term Sheet Exhibit A, Sec. II.D. ↑

22. Global Settlement Allocation Term Sheet Exhibit A, Sec. II.D (“An entity seeking funds from the Council must apply for funds; no funds will be awarded without an application”); 34 Tex. Admin. Code Sec. 16.204 (“All grant funding is contingent upon the availability of funds and upon approval of a grant application by the council. Neither this subsection nor a grant agreement creates any entitlement or right to grant funds by a grant applicant”). On regional allocations, see Tex. Gov’t Code Sec. 403.509(a)(1)(A) (the “annual regional allocation methodology to distribute 75 percent of money distributed under Section 403.508(a)(3) [is] based on population health information and prevalence of opioid incidences as provided by law”) 34 Tex. Admin. Code Sec. 16.202(e)(1)(A) (describing specific percentage allocations for regions 1-20). ↑

23. 34 Tex. Admin. Code Sec. 16.202(e)(1)(B). ↑

24. Global Settlement Allocation Term Sheet Exhibit A, Sec. II.D(2) (“Each Region shall reserve twenty-five (25) percent of the overall funds, for targeted interventions in the specific Region as identified by opioid incidence data. The Council must approve on an annual basis the uses for the targeted abatement strategies and applications available to every Region, including education and outreach programs. Each Region without approved uses for the targeted funds from the Council, based upon a greater percentage of opioid incidents compared to its population, is subject to transfer of all or a portion of the targeted funds for that Region for uses based upon all Regions’ targeted funding needs as approved by the Council on an annual basis”). ↑

25. 34 Tex. Admin. Code Sec. 16.202(e)(2)(A)(i)-(ii) (“Of the funds allocated to a grant cycle, 25% shall be allocated for targeted interventions. The council shall establish parameters for the authorized uses of the targeted intervention component of each grant cycle. … The parameters may include: … a limitation to one or more geographic areas based on opioid incidence information; and … a limitation to one or more eligible strategies based on opioid incidence”). For more elaboration on the OAFC’s process of ranking and prioritization, see 34 Tex. Admin. Code Sec. 16.202(e)(2)(B) (“The council shall rank the parameters relating to geographic areas and eligible strategies in order of priority for grant funding. For example, if the council limits targeted intervention grants to, in order of priority, locations A, B, C, and D and to, in order of priority, strategies X and Y, the council shall also specify whether a grant application from location A for strategy Y is a higher priority than a grant application from location B for strategy X”). See also Tex. Gov’t Code Sec. 403.509(a)(1)(B) (“The council shall determine and approve one or more evidence-based opioid abatement strategies that include … an annual targeted allocation to distribute 25 percent of money distributed under Section 403.508(a)(3) for targeted interventions as identified by opioid incidence information”) and Global Settlement Allocation Term Sheet Exhibit A, Sec. II.D(2) (“The Council must approve on an annual basis the uses for the targeted abatement strategies and applications available to every Region, including education and outreach programs”). ↑

26. Tex. Gov’t Code Sec 403.509(a)(6) (“The council shall … determine the percentage of money that may be used for development of education and outreach programs to provide materials on the consequences of opioid drug use and prevention and intervention, including online resources and toolkits”) and Global Settlement Allocation Term Sheet Exhibit A, Sec. II.F (“The Council may determine that a percentage of the funds in the Abatement Fund from the targeted funds be used to develop an education and outreach program to provide materials on the consequences of opioid drug use, prevention and interventions. Any material developed will include online resources and toolkits for communities”) ↑

27. 34 Tex. Admin. Code Sec. 16.208(b)(1)-(2) (“Initial screening”). ↑

28. 34 Tex. Admin. Code Sec. 16.208(c)(1)-(4) (“Peer review”). ↑

29. 34 Tex. Admin. Code Sec. 16.208(d)(1)-(7) (“Council review and approval”). ↑

30. 34 Tex. Admin. Code Sec. 16.208(d)(3)(a) ↑

31. 34 Tex. Admin. Code Sec. 16.208(d)(3)(b) ↑

32. The State of Texas has disagreed with this categorization in its communications with Vital Strategies and OpioidSettlementTracker.com. See Community Guides Methodology. ↑

33. 34 Tex. Admin. Code Sec. 16.212(c). See also Notice of Funding Availability Request for Applications (RFA No. OAFC-24-0001) for Texas Opioid Abatement Fund Council Naloxone Program Grant, Sect. 2.0 "Available Funding”). Texas Comptroller of Public Accounts. Accessed September 1, 2024 (“Grant funds may not be used for costs that will be reimbursed by another funding source. The Grant Recipient may be required to demonstrate through certification and accounting records that funds received from another funding source are not used for costs that will be reimbursed under the Grant Agreement"). ↑

34. This regulation would, for example, prohibit the use of grant funds from the Texas Opioid Abatement Trust Fund to pay for expenses which will be reimbursed by Medicaid but would not prohibit a jurisdiction from redirecting general revenue funds if it receives a grant award for a program that it otherwise would have paid for with those general revenue funds. ↑

35. The State of Texas has disagreed with this categorization in its communications with Vital Strategies and OpioidSettlementTracker.com. See Community Guides Methodology. ↑

36. Tex. Gov’t Code Sec. 403.510. ↑

Can I provide input on spending?

• 70% Opioid Abatement Fund share: Not… yet? (not required).[1] Though the Texas Opioid Abatement Fund Council is not required to seek public input on uses of the Opioid Abatement Fund, the Council has stated that “[p]ublic comment on the Council's work will be solicited on an ongoing basis,” and that if a Council meeting includes an opportunity for public comment, the “agenda and instructions to register will be on the meeting notice posted on the Texas Register at least seven days before the meeting date.”[2] However, of the ten Council meetings held between August 2022 and August 2024, only one — its first on August 9, 2022 — included a dedicated public comment period on the agenda.

  • Members of the public can request a meeting with the Council’s staff or share feedback by emailing oafc.public@cpa.texas.gov.

• 15% local share: Generally, yes. Though local governments are not required to seek public input as to opioid settlement spending specifically, the Texas’ Open Meetings Act requires that they accept public comments during their public meetings.[3] Take advantage of this requirement by showing up to meetings of your city council or county commissioners and offering comments on local settlement spending.[4], [5]

• 15% state share: No opportunities available (not required).[6] The state has not established recurring opportunities for the public to provide input on uses of its 15% share.[7]

Can I apply for grants?

Yes. Visit the Texas Opioid Abatement Fund Council’s website to view current grant opportunities from the 70% Opioid Abatement Fund Share.[8] Local governments 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 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?

• For updates on the Opioid Abatement Fund share, visit the Texas Abatement Fund Council’s website, which provides an email sign-up link to “receive future newsletters and the latest Opioid Council news, updates and resources.”

• A single resource containing updates specific to the state share could not be found.[9]

• To find updates on the local share, a good starting point is to check the websites for your Commissioners Court, city council, or local health department (See, e.g., the City of McKinney’s opioid settlement webpage).

What else should I know?

Not applicable.

Citations

1. The Texas Open Meetings law generally requires governmental bodies to allow for public testimony, but this provision is unlikely to apply to the Texas Opioid Abatement Fund Council. See Tex. Gov’t Code Sec. 551.007(b) (requiring governmental body to allow public comment); Tex. Gov’t Code Sec. 551.007(a) (limiting this requirement to a “governmental body described by Sections 551.001(3)(B)-(L)”); Tex. Gov’t Code Sec. 551.001(3)(A) (“a board, commission, department, committee, or agency within the executive or legislative branch of state government that is directed by one or more elected or appointed members”). ↑

2. Opioid Abatement Frequently Asked Questions (see “How does the community give input for spending funds?”).Texas Opioid Abatement Fund Council. Accessed September 1, 2024. ↑

3. Tex. Gov’t Code Sec. 551.007(a)-(b); Tex. Gov’t Code Sec. 551.001(3)(B)-(L). ↑

4. Note that this may only be possible when settlement spending is related to an item on a meeting agenda. See Tex. Gov’t Code Sec. 551.007(b) (“A governmental body shall allow each member of the public who desires to address the body regarding an item on an agenda for an open meeting of the body to address the body regarding the item at the meeting before or during the body’s consideration of the item”) (emphasis added). ↑

5. The state of Texas has pointed to additional provisions of law in in its communications with Vital Strategies and OpioidSettlementTracker.com that it considers relevant to this section of the guide. See Tex. Loc. Gov’t Code Secs. 102.006, 111.007, 111.038, and 111.067. ↑

6. The State of Texas has disagreed with this categorization in its communications with Vital Strategies and OpioidSettlementTracker.com. See Community Guides Methodology. ↑

7. If you see this change, email tips@opioidsettlementtracker.com. ↑

8. Texas Opioid Abatement Fund Council (“Programs”). Texas Comptroller of Public Accounts website. Accessed September 1, 2024. ↑

9. If you see this change, email tips@opioidsettlementtracker.com. ↑

Where do these monies live?

The 15% local share is initially deposited into the state’s greater Opioid Abatement Trust Fund,[1] then allocated directly to participating cities and counties according to Exhibit B of Texas’ Settlement Allocation Term Sheet.[2] Nonparticipating subdivisions’ amounts are reallocated “equitably” among participating subdivisions.[3]

Note: Texas’ allocations of settlement funds between its three shares are often settlement-specific.[4] See Distribution of Opioid Settlement Proceeds for more information.

What can this share be spent on?

Aside from attorneys’ fees and other limited exceptions,[5] this share must be spent by local governments to “address opioid-related harms in [their] communities” consistent with the opioid remediation uses described in the national settlement agreement’s (non-exhaustive) Exhibit E,[6] which includes prevention, treatment, harm reduction, recovery, and other strategies.

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

Local governments decide autonomously. Decisionmakers for the cities and counties will ultimately decide for themselves how to spend their monies on Exhibit E uses.[7]

Is this share attached to an explicit bar against supplantation?

No, supplantation is not prohibited. Like most states, Texas does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 15% state share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

Up to each locality (neither public nor intrastate reporting required). Opioid settlement expenditures are not officially published in a centralized location for this share.

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. Tex. Gov’t Code Sec. 403.506(a) (“The opioid abatement trust fund is a trust fund established outside of the state treasury”) and Sec. 403.507(b)(2) (“Of money obtained under a statewide opioid settlement agreement … 85 percent shall be deposited into the fund”). See also Opioid Settlements at a Glance. Texas Opioid Abatement Fund Council (OAFC). Texas Comptroller website. Accessed August 27, 2024 (“Of the total amounts received from statewide opioid settlement agreements, 15 percent is deposited to the Opioid Abatement Account and 85 percent is deposited to the Opioid Abatement Trust Fund (Trust Fund) held at the Texas Treasury Safekeeping Trust Company”). ↑

2. Tex. Gov’t Code Sec. 403.506(c)(1) (“The trust company shall … distribute to counties and municipalities to address opioid-related harms in those communities an amount equal to 15 percent of the total amount of money obtained under a statewide opioid settlement agreement and distributed to the fund and the account under Section 403.507”) and Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet (Global Settlement Allocation Term Sheet) B.1-2 (“Allocation of Settlement Proceeds”). May 13, 2020. Accessed August 27, 2024. ↑

3. Global Settlement Allocation Term Sheet B.4 (“If a Subdivision for any reason is excluded from a specific settlement, the allocation percentage for that Subdivision shall be redistributed as directed by the settlement document, and if not specified, equitably among the participating Subdivisions”). ↑

4. See Tex. Gov’t Code Sec. 403.507(c) (“For the purposes of a statewide opioid settlement agreement in relation to a bankruptcy plan for a released entity, money is distributed in accordance with the bankruptcy plan”). ↑

5. Global Settlement Allocation Term Sheet C.4 (describing set aside for an attorneys’ fee-related backstop fund: “the funds to be deposited in the Texas Opioid Fee and Expense Fund shall be 9.3925% of the combined Texas Political Subdivision and Texas Abatement Fund portions of each payment (annual or otherwise) to the State of Texas for that settlement, plus expenses from the National Fund”) and C.5 (“If the National Fund share to the Texas Political Subdivisions is insufficient to cover the guaranteed 9.3925%, … Texas Political Subdivisions shall recover up to 12.5% of the Texas Political Subdivision Share to make up any difference”) and Distributor Settlement Agreement I.SS (“Qualifying expenditures may include reasonable related administrative expenses”). ↑

6. Tex. Gov’t Code Sec. 403.506(c)(1) (“The trust company shall … distribute [15%] to counties and municipalities to address opioid-related harms in those communities”). See also Funds Disbursements. OAFC. Texas Comptroller website. Accessed August 27, 2024 (“Exhibit E - List of Opioid Remediation Uses (PDF) is a settlement document that contains a non-exhaustive list of Opioid Remediation Strategies that can guide states and political subdivisions in the spending of settlement funds”). See also Distributor Settlement Agreement I.SS (“Exhibit E provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation”). ↑

7. Tex. Gov’t Code Sec. 403.506(c)(1) (“The trust company shall … distribute [15%] to counties and municipalities to address opioid-related harms in those communities”); Funds Disbursements (Eligible Uses of Opioid Abatement Funds). OAFC. Texas Comptroller website. Accessed August 27, 2024 (“Other than statute requiring spending the funds to address opioid-related harms in the community, political subdivisions may use their discretion to spend their allocated share of the funds”). See e.g., Raquel Torres. San Antonio targets $909K from opioid settlements to reduce overdoses. San Antonio Report. May 10, 2024. Accessed August 27, 2024 (“Here’s how Metro Health plans to use the $909,000: $434,000 will be used for substance use outreach and community capacity building initiatives; $175,000 for harm reduction supplies and Narcan kits; $150,000 for targeted provider education to address stigma for pregnant people with addiction or in recovery. Only $100,000 will go to medical treatment for street outreach clients. Metro Health also plans to use $50,000 to create a substance use resource portal”; “Metro Health plans to partner with the research-focused Addiction Research Institute, Bexar County, Center for Health Care Services, Corazon Ministries, San Antonio Nexus Connection, St. Luke Baptist Church and the Texas Harm Reduction Alliance”). ↑

Texas Opioid Abatement Fund Council

• Council Meetings

• Program Overview

• Naloxone Distribution Grant Opportunity

• Settlements at a Glance

• Funds Disbursement

• Resources

• Opioid Abatement Frequently Asked Questions

Attorney General of Texas

• Global Opioid Settlement

Texas Department of State Health Services

• Opioids: Dashboards

Texas Comptroller of Public Accounts

• Opioid Abatement Trust Fund: Subdivision Disbursements Dashboard

This Community Guide will describe how Texas is spending its opioid settlements, and whether Texas 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. Texas state law establishes the Texas Opioid Abatement Fund Council to direct the allocation of settlement monies from the 70% Texas Abatement Fund share.[1] The Council is responsible for:

• Determining and approving evidence-based opioid abatement strategies[2]

• Developing a funding application and award process, reviewing grant applications, and providing grant awards and funding allocations[3]

• Monitoring and enforcing the terms of grant agreements, including a requirement that grantees reimburse the Council for non-compliance[4]

• Determining the percentage of funds that may be used to develop education and outreach programs on the consequences of opioid misuse and prevention and intervention[5]

• Reallocating a region’s funds if the funds lapse or the region does not use all the funds allocated to them in any given year[6]

The Council must meet at least four times each year and is subject to the Texas Open Meetings and Public Information laws.[7]

The Texas Opioid Abatement Fund Program’s rules also anticipate review by a peer review panel — a “group of experts in the field of opioid abatement” — to “provide guidance and recommendations to the council in making decisions for grant awards.”[8] This panel is required to score and recommend any changes to Opioid Abatement Fund grant applications to grant program staff.[9]

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

No. The state law establishing the Texas Opioid Abatement Fund Council does not require the inclusion of members with lived and/or living experience.

What is the overall membership of the state advisory body?

The Texas Opioid Abatement Fund Council is a 14-member body that includes:

• Six regional members who are academics or medical professionals with significant experience in opioid interventions, appointed by the Commissioner of Texas’ Health and Human Services Department to represent the Regional Healthcare Partnership regions[10]

• Four members that are licensed or formerly licensed medical professionals with experience treating opioid-related harms, with one member appointed by each of the governor, lieutenant governor, state attorney general, and speaker of the Texas House of Representatives[11]

• Two members employed by a hospital district, with one member appointed by each of the governor and state attorney general[12]

• One member who is a member of a law enforcement agency and has experience with opioid-related harms, appointed by the governor[13]

• The comptroller or comptroller’s designee, a nonvoting member who serves as the Council’s presiding officer[14]

The Council’s current members are listed here.

Appointment Considerations: In making appointments of regional members, the Commissioner of Texas’ Health and Human Services Department must select members from a list of qualified candidates provided by the governing bodies of eligible counties and municipalities.[15] In making appointments of the non-regional (i.e., statewide) members, the governor, lieutenant governor, state attorney general, and speaker of the Texas House of Representatives must “coordinate to ensure that the membership of the council reflects, to the extent possible, the ethnic and geographic diversity of this state.”[16]

Terms: All Council members serve staggered two-year terms ending on February 1 of each year, and members may serve for no more than two consecutive terms.[17]

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 Texas 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.

What else should I know?

Not applicable.

Citations

1. Tex. Gov't Code Secs. 403.503(a); 403.506(d), 403.508(a). See also Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A. May 13, 2020. The Opioid Abatement Fund Council was “established to ensure that money recovered by this state through a statewide opioid settlement agreement is allocated fairly and spent to remediate the opioid crisis in this state by using efficient and cost-effective methods that are directed to regions of this state experiencing opioid-related harms.” Tex. Gov't Code Sec. 403.503(a). ↑

2. Tex. Gov’t Code Sec. 403.509(a)(1). See also Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. II(A)(1). May 13, 2020. Decisions or strategies must be approved by at least four regional Council members and four non-regional (i.e., statewide) Council members. Tex. Gov’t Code Sec. 403.509(c). See also Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. II(A)(2). May 13, 2020. ↑

3. Tex. Gov’t Code Sec. 403.509(a)(3)-(4). See also Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. II(D). May 13, 2020. ↑

4. Tex. Gov’t Code Sec. 403.509(a)(5). ↑

5. Tex. Gov’t Code Sec. 403.509(a)(6). See also Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. II(F). May 13, 2020. ↑

6. Tex. Gov’t Code Sec. 403.509(a)(2), (b). See also Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. II(D)(3). May 13, 2020. ↑

7. Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. I(C)(2)(i). May 13, 2020 (“The Council shall hold at least four regular meetings each year” and “abide by state laws relating to open meetings and public information, including Chapters 551 and 552 of the Texas Government Code”) and Tex. Gov't Code Sec. 403.504(c) (“The council is subject to Chapters 551 [Open Meetings law, codified at Tex. Gov't Code Sec. 551.001 to .146] and 552 [Public Information law, codified at Tex. Gov’t Code Sec. 552.001 to .376]”). ↑

8. “The process involves the consistent application of standards and procedures to produce a fair, equitable, and objective evaluation of grant applications, based on the evidence-based opioid abatement strategies developed by the council.” 34 Tex. Admin Code. Sec. 16.200(12). See also 34 Tex. Admin Code. Sec. 16.200(13) (defining “[p]eer review panel” to mean “[a] group of experts in the field of opioid abatement who are selected to conduct peer review of grant applications”). ↑

9. 34 Tex. Admin. Code Sec. 16.208(c)(1)-(4) (“Peer review”). ↑

10. Tex. Gov’t Code Sec. 403.503(b)(1). See also Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. I(A)(2). May 13, 2020 (these appointees are intended ”to ensure dedicated regional, urban, and rural representation on the Council”). ↑

11. Tex. Gov’t Code Sec. 403.503(b)(2). See also Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. I(A)(1). May 13, 2020. ↑

12. Tex. Gov’t Code Sec. 403.503(b)(3)-(4). See also Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. I(A)(1). May 13, 2020. ↑

13. Tex. Gov’t Code Sec. 403.503(b)(5). ↑

14. Tex. Gov’t Code Sec. 403.503(b)(6). But see Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. I(A)(1)(c). May 13, 2020 (“The Governor will appoint the Chair of the Council as a non-voting member. The Chair may only cast a vote in the event there is a tie of the membership.”) ↑

15. Tex. Gov’t Code Sec. 403.503(c). More specifically, counties and municipalities that “(1) brought a civil action for an opioid-related harm against a released entity; (2) released an opioid-related harm claim in a statewide opioid settlement agreement; and (3) are located within the regions for which the member is being appointed.” Id. ↑

16. Tex. Gov’t Code Sec. 403.503(d). ↑

17. Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet, Exhibit A Sec. I(B). May 13, 2020. Note that for the first term, two statewide and two regional members will serve for a 3-year period. Id. ↑