55% Opioid Abatement Fund Share
Where do these monies live?
The Virginia Opioid Abatement Fund holds 55% of the state’s opioid settlement funds and is managed by the Virginia Opioid Abatement Authority (OAA).[1] State law and Virginia’s MOU further break down the Fund’s 55% share this way:[2]
15% (8.25% of funds statewide) must be used by state agencies[3]
15% (8.25% of funds statewide) goes to localities according to allocations in Exhibit A of Virginia’s MOU and is subject to numerous requirements as “OAA Distributions” (explained below)[4]
35% (19.25% of funds statewide) must fund Regional Efforts/Cooperative Partnerships (i.e., a partnership of at least two cities and/or counties in a community services board region)[5]
35% (19.25% of funds statewide) is characterized as “unrestricted” monies that may be used for certain purposes related to the OAA and/or remediation activities (explained below)[6]
What can this share be spent on?
In general, and with limited exceptions,[7] this share must be spent on the uses described in the national settlement agreement’s (non-exhaustive) Exhibit E,[8] which includes prevention, harm reduction, treatment, recovery, and other strategies.
In describing the kinds of efforts that can be supported by the OAA with Fund monies, state law additionally provides a 10-item list that largely mirrors the national settlement agreements’ Exhibit E, Schedule B (“Approved Uses”) but adds support for drug courts and detoxification programs and omits support for first responders other than law enforcement and certain leadership, training, and research-related uses.[9]
The 15% used by state agencies must be spent on the 10-item list described above.[10]
The 15% going to localities must be spent on the 10-item list described above.[11]
The 35% used to fund Regional Efforts/Cooperative Partnerships (i.e., a partnership of at least two cities and/or counties in a community services board region) must be spent on the 10-item list described above.[12] Additionally, in awarding funds from this portion of the Fund, the OAA is required by state law to prioritize efforts that:[13]
“collaborate with an existing program or organization that has an established record of success”[14]
target “a community with a high incidence of opioid use disorder or opioid death rate, relative to population”[15]
target “a historically economically disadvantaged community”[16]
are accompanied by “a monetary match from or on behalf of the applicant,” with higher priority given to higher matching funds[17]
The 35% characterized as “unrestricted” monies “may be used to fund the [OAA’s] staffing and administrative costs” and can also be disbursed “for use by state agencies, by participating localities, or for regional efforts.”[18] However, OAA disbursements from this unrestricted slice must still “accomplish the purposes” of the state law on opioid abatement.[19] The OAA describes this portion of the Fund as “designed to allow the [OAA] the ability to support opioid abatement/remediation projects in other ways,”[20] and supplementally to the other established sub-allocations from this share (i.e., 15% to state agencies, 15% to localities, and 35% to regional efforts).[21]
Recipients of Fund monies must adhere to requirements in state law, including those that prohibit supplantation and indirect cost uses, and agree to the OAA’s terms and monitoring.[22]
Who ultimately decides how to spend this share (and how)?
OAA decides majority; localities decide remaining (subject to OAA rules and requirements). The Virginia Opioid Abatement Authority (OAA), an independent body governed by a Board of Directors,[23] decides expenditures for the substantial majority of this share (85%), including the 15% to state agencies, 35% to regional efforts, and the 35% “unrestricted” portion of the Virginia Opioid Abatement Fund.[24]
OAA decides majority. The OAA distributes Fund monies as grants to state agencies and participating local governments.[25] The OAA is responsible for establishing awards criteria,[26] evaluating funding requests,[27] authorizing expenditures by majority vote,[28] and administering the Fund.[29]
The OAA is required to distribute the Fund “equitably among all community service boards regions of the Commonwealth” and in ways that “balance immediate and anticipated needs.”[30] As described above, the OAA is also required by state law to prioritize awards for certain kinds of cooperative partnerships using its 35% Regional Efforts portion of the Fund.[31]
Those who receive the OAA’s financial support must agree to its terms and monitoring,[32] and the OAA is required to evaluate the implementation and results of its Fund expenditures.[33]
Localities decide remaining (subject to OAA rules and requirements). Counties and cities decide specific expenditures for the remaining 15% portion of this share directed to localities, but each must comply with requirements in state law — including its prohibitions against supplantation and indirect costs — and agree to the OAA’s terms and monitoring.[34] As to localities, these requirements are often referred to as the OAA’s “Gold Standard.”[35]
Is this share attached to an explicit bar against supplantation?
Yes, supplantation is prohibited. Virginia state law explicitly prohibits supplantation uses of funds from the 55% Opioid Abatement Fund Share.[36] This means that monies from this share must be spent in ways that supplement – rather than replace (or “supplant”) – existing resources.
Can I see how this share has been spent?
Yes (public reporting required). View the Opioid Abatement Authority’s (OAA) annual reports here.[37] The OAA must submit a report each year to the Governor and General Assembly that “include[s] information regarding efforts supported by the [OAA] and expenditures from the Fund.”[38] This report, which must be published on the General Assembly’s website,[39] is also published on the OAA’s News and Updates page.
Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.
What else should I know?
The OAA has published additional guidance detailing its position on whether certain law enforcement, emergency medical services (EMS), and fire services expenses qualify as “Gold Standard” uses of localities’ settlement funds.[40]
Citations
Va. Code Ann. Sec. 2.2-2374(A) (creating the Opioid Abatement Fund to “be administered by the [Opioid Abatement] Authority”) and Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of Understanding (MOU) B.5(a) (“55% … shall be allocated and paid to the Virginia Opioid Abatement Fund”). ↑
Va. Code Ann. Sec. 2.2-2374(D)(1)-(4) and MOU C.7(a)-(d). ↑
Va. Code Ann. Sec. 2.2-2374(D)(1) (“For every deposit to the Fund…[f]ifteen percent shall be restricted for use by state agencies”). See also MOU C.7(a). See, e.g., OAA Awards $11Million in Funding to Agencies of the Commonwealth. Virginia Opioid Abatement Authority (OAA) news release. August 21, 2023. Accessed August 28, 2024. ↑
Va. Code Ann. Sec. 2.2-2374(D)(2). See also MOU C.7(b). ↑
Va. Code Ann. Sec. 2.2-2374(D)(3) (“For every deposit to the Fund … [t]hirty-five percent shall be restricted for use for regional efforts” and MOU C.7(c) (defining regional efforts as a “partnership of at least two Participating Political Subdivision within a community services board region”). See also MOU A.3 (defining “Political Subdivision” to mean “Virginia counties and independent cities representing by Counsel”). ↑
Va. Code Ann. Sec. 2.2-2374(D)(4) (“For every deposit to the Fund … [t]hirty-five percent shall be unrestricted”). See also MOU C.7(d). ↑
Va. Code Ann. Sec. 2.2-2374(C) (“The Authority shall fund all staffing and administrative costs from the Fund. Its expenditures for staffing and administration shall be limited to those that are reasonable for carrying out the purposes of this article”), MOU C.7(d) (describing allowable administrative uses of the 35% unrestricted share). But see Va. Code Ann. Sec. 2.2-2370(4) (recipients of Fund monies cannot use them for “indirect costs incurred in the administration of the financial support”) and MOU D.8 (“Any attorneys' fees related to representation of the Commonwealth of Virginia shall not be paid from … the Fund but shall be drawn directly from the Commonwealth Share or through other sources”). ↑
Va. Code Ann. Sec. 2.2-2370(A)(1) (“The Authority shall provide financial support only for efforts that … shall be designed to treat, prevent, or reduce opioid use disorder or the misuse of opioids or otherwise abate or remediate the opioid epidemic”). MOU A.9 (defining “Approved Abatement Purposes” as “efforts to treat, prevent, or reduce opioid use disorder or the misuse of opioids or to otherwise abate or remediate the opioid epidemic …[and] also shall include any other abatement or remediation purposes to the extent such purposes are described in a Settlement”). See also About: Overview of the Virginia Opioid Abatement Authority and opioid settlement funds. Virginia Opioid Abatement Authority (OAA). Accessed August 28, 2024 (“All funds provided by the Authority to cities and counties and to state agencies must be used to abate and remediate the opioid epidemic. A full explanation of what this means is provided within the settlement agreement and in the statute, but in general most efforts that prevent, treat, and support recovery from opioid use disorder (and co-occurring addictions and mental illness) are covered”), 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”). ↑
Va. Code Ann. Sec. 2.2-2370(A)(1)(a)-(j). See also MOU A.9 (defining “Approved Abatement Purposes” to mean “efforts to treat, prevent, or reduce opioid use disorder or the misuse of opioids or to otherwise abate or remediate the opioid epidemic, including but not limited to those efforts described in Section C(4)(a) through (j)”). MOU C.4(a)-(j) in turn mirrors state law. ↑
Va. Code Ann. Sec. 2.2-2370(A)(1)(a)-(j). See also Virginia Opioid Abatement Authority Recommendations for Awards to State Agencies For 2024-2025. OAA. July 26, 2024. Accessed September 1, 2024. ↑
Va. Code Ann. Sec. 2.2-2370(A)(1)(a)-(j). See also OAA Position on Whether Law Enforcement, EMS, and Fire Services Expenses Qualify as “Gold Standard” Uses of Opioid Settlement Funds. OAA. June 14, 2024. Accessed September 1, 2024. ↑
Va. Code Ann. Sec. 2.2-2370(A)(1)(a)-(j). ↑
Va. Code Ann. Sec. 2.2-2370(B)(1)-(4). These priority factors can also be found at MOU C.6(a)-(d). See also About: Overview of the Virginia Opioid Abatement Authority and opioid settlement funds. OAA. Accessed August 28, 2024 (see subsection on “Distributions for Cooperative Projects involving Multiple Cities and/or Counties (35% of OAA Funds)” which restates statutory requirements). ↑
Va. Code Ann. Sec. 2.2-2370(B)(1). ↑
Va. Code Ann. Sec. 2.2-2370(B)(2). ↑
Va. Code Ann. Sec. 2.2-2370(B)(3). ↑
Va. Code Ann. Sec. 2.2-2370(B)(4). ↑
Va. Code Ann. Sec. 2.2-2374(D)(4). See also MOU C.7(d) (mirroring state law). See also Va. Code Ann. Sec. 2.2-2369(8) (“In order to carry out its purposes, the Authority may … [e]mploy such staff as is necessary to perform the Authority's duties. The Authority may determine the duties of such staff and fix the salaries and compensation of such staff, which shall be paid from the Fund”) and Sec. 2.2-2369(3)-(4) (describing that OAA can use Fund monies to “contract for services of consultants to assist in the evaluation of the efforts funded by the Authority” and to “contract for other professional services to assist the Authority in the performance of its duties and responsibilities”). ↑
Va. Code Ann. Sec. 2.2-2374(D)(4). ↑
See also About: Overview of the Virginia Opioid Abatement Authority and opioid settlement funds. OAA. Accessed August 28, 2024 (see subsection on “Unrestricted Funds (35% of OAA Funds)”). ↑
Va. Code Ann. Sec. 2.2-2374(D)(4) (describing that monies distributed from the 35% “unrestricted” slice of this share are “in addition to the amounts set forth in” the sections describing the other allocations). This language is mirrored in MOU C.7(d). ↑
Va. Code Ann. Sec. 2.2-2370(A)(3)-(5). Refer to parallel provisions in MOU C.5(a)-(d). ↑
Va. Code Ann. Sec. 2.2-2367 (“The Authority shall be governed by a board of directors”). See also MOU C.2. ↑
Va. Code Ann. Sec. 2.2-2374(A)(1) (OAA to “administer” the Fund) and Sec. 2.2-2374(B) (OAA to “provide grants…to any agency of the Commonwealth or participating locality for the purposes determined by the Authority”). ↑
Va. Code Ann. Sec. 2.2-2374(B)(1) (“Moneys in the Fund shall be used to provide grants and loans to any agency of the Commonwealth or participating locality for the purposes determined by the Authority in accordance with [state law] and in consultation with the Attorney General”). See also Va. Code Ann. Sec. 2.2-2370(A)(2) (requiring OAA’s abatement efforts to be “conducted or managed” by a Virginia state agency or participating locality) (mirrored in MOU C.5(a)). ↑
Va. Code Ann. Sec. 2.2-2368(1) (“shall establish specific criteria and procedures for awards from the Fund”). See also MOU C.3 ↑
Va. Code Ann. Sec. 2.2-2368(3) (requiring OAA to evaluate funding requests using its own established criteria). See also MOU C.3. ↑
Va. Code Ann. Sec. 2.2-2374(A). ↑
Va. Code Ann. Sec. 2.2-2368(6). See also MOU C.1 (“The Authority shall administer the Fund”). ↑
Va. Code Ann. Sec. 2.2-2374(E) and Va. Code Ann. Sec. 2.2-2368(4). ↑
Va. Code Ann. Sec. 2.2-2370(B)(1)-(4). These priority factors can also be found at MOU C.6(a)-(d). See also About: Overview of the Virginia Opioid Abatement Authority and opioid settlement funds. OAA. Accessed August 28, 2024 (see subsection on “Distributions for Cooperative Projects involving Multiple Cities and/or Counties (35% of OAA Funds)” which restates statutory requirements). These are 1) programs/organizations with an established record of success; 2) targeting communities with high burden of OUD and/or opioid death rate, relative to population; 3) targeting communities that are historically economically disadvantaged; and 4) monetary match. ↑
Va. Code Ann. Sec. 2.2-2370(A)(5). See also MOU C.5(d). ↑
Va. Code Ann. Sec. 2.2-2368(5). See also MOU C.3. ↑
Va. Code Ann. Sec. 2.2-2370(A)(3)-(5). Refer to parallel provisions in MOU C.5(a)-(d). See also Summary of Key Provisions on the Use of Funds Received from National Opioid Settlements. Virginia Attorney General. April 18, 2023. Accessed August 29, 2024 (“[I]n addition to the direct shares that localities receive from the settlements, localities also will receive settlement funds from the Opioid Abatement Authority…[A]ny funds that a locality receives from the Authority must be used for abatement or remediation purposes, and such funds may not be used to supplant funding for an existing program, to continue funding for an existing program at its current level, or for indirect administrative costs”). ↑
Although these requirements derive from state law for this share, Virginia guidance will sometimes refer to these requirements as “OAA’s Gold Standard,” including as to monies received by localities from the 55% Opioid Abatement Fund share. See, e.g., Locality Reporting Guidance on Opioid Settlement Funds. Virginia Auditor of Public Accounts. Updated July 2024. Accessed August 30, 2024 (“If a locality applies for and receives any OAA Distribution funds, the locality must follow the OAA’s Gold Standard and any other OAA regulations for use of these funds”). ↑
Va. Code Ann. Sec. 2.2-2370(A)(3) (“No support provided by the Authority shall be used by the recipient to supplant funding for an existing program or continue funding an existing program at its current amount of funding”). See also Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of Understanding C(5)(b). August 21, 2021. ↑
See, e.g., 2023 Annual Report. OAA. January 1, 2024. Accessed September 1, 2024. ↑
Va. Code Ann. Sec. 2.2-2373. ↑
Va. Code Ann. Sec. 2.2-2373. ↑
OAA Position on Whether Law Enforcement, EMS, and Fire Services Expenses Qualify as “Gold Standard” Uses of Opioid Settlement Funds. OAA. June 14, 2024. Accessed September 1, 2024 ↑
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