TO:	Honorable Greg Bonnen, Chair, House Committee on Appropriations
FROM:	Jerry McGinty, Director, Legislative Budget Board
IN RE:	SB1827 by Huffman (Relating to the creation of the opioid abatement account, an opioid abatement trust fund, and to a statewide opioid settlement agreement.), As Engrossed

The bill would amend Chapter 403 of the Government Code by adding Subchapter R related to a Statewide Opioid Settlement Agreement.

The bill would create the Opioid Abatement Fund Council (council) to allocate money recovered by the state through an opioid settlement agreement and develop an opioid abatement strategy. The council would be administratively attached to the Comptroller's office.

The bill would create the Opioid Abatement Account (account) as a dedicated account in the General Revenue Fund, administered by the Comptroller and the Opioid Abatement Trust Fund (fund) as trust fund outside of the state treasury that is administered by the Texas Treasury Safekeeping Trust Company (TTSTC). The bill would require that of the money obtained under a statewide opioid settlement agreement, 15 percent would be deposited into the account and 85 percent would be deposited into the fund. Funds obtained in a future settlement and available for deposit cannot be estimated at this time.

The account would consist of money obtained from a statewide opioid settlement agreement, money received from the state from any other source resulting from an action by the state against an opioid manufacturer, an opioid distribution, or another person in the opioid industry relating to a violation of state or federal law. Other deposits to the account include legislative appropriations, gifts and grants. The bill would establish allowable uses for the account.

The fund would consist of money obtained under a statewide opioid settlement agreement. TTSTC would allocate an amount equal to 15 percent of total amount of money deposited to the fund and account under a statewide opioid settlement agreement to political subdivisions to address opioid-related harms in those communities and an amount equal to 70 percent to the council. The council would be required to allocate:
·  one percent to the Comptroller for the administration of the council;
·  15 percent to hospital districts; and
·  The remaining money based on the opioid abatement strategy developed by the council.

This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either in, with, or outside of the Treasury or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.

The bill would take effect immediately if it received a vote of two thirds in each house of the Legislature.  If the bill does not take immediate effect, the bill would take effect September 1, 2021.

Local Government Impact

The fiscal implications of the bill cannot be determined at this time.