S T A T E O F N E W Y O R K
________________________________________________________________________
11184
I N A S S E M B L Y
May 1, 2026
___________
Introduced by M. of A. STECK -- read once and referred to the Committee
on Alcoholism and Drug Abuse
AN ACT to amend the mental hygiene law and the state finance law, in
relation to overhauling the opioid settlement fund
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Subparagraphs (vii) and (viii) of paragraph 1 of subdivi-
sion (a) of section 25.18 of the mental hygiene law, as amended by chap-
ter 171 of the laws of 2022, are amended and a new subparagraph (ix) is
added to read as follows:
(vii) to provide programs for pregnant women and new parents who
currently or formerly have had a substance use disorder and newborns
with neonatal abstinence syndrome; [and/or]
(viii) to provide vocational and educational training for individuals
with or at risk for a substance use disorder[.]; AND/OR
(IX) TO PROVIDE SERVICES AND SUPPORTS FOR GRIEVING FAMILIES, THOSE
CARING FOR LOVED ONES WITH SUBSTANCE USE DISORDERS AND THE CHILDREN LEFT
BEHIND. SUCH SERVICES AND SUPPORTS SHALL INCLUDE FUNDING FOR GRIEF COUN-
SELING, TRAUMA SUPPORT, AND LONG-TERM SERVICES AND SUPPORTS FOR THOSE
BEARING THE ONGOING EMOTIONAL AND PSYCHOLOGICAL IMPACTS OF THE OVERDOSE
EPIDEMIC.
§ 2. Paragraph 1 of subdivision (b) of section 25.18 of the mental
hygiene law, as amended by chapter 171 of the laws of 2022, is amended
to read as follows:
1. The legislature shall appropriate funds to be used for eligible
expenditures that are consistent with the approved uses and terms of the
statewide opioid settlement agreement, PROVIDED THAT FUNDS SHALL BE MADE
AVAILABLE FOR THE BOARD TO RETAIN LEGAL AND ADMINISTRATIVE STAFF TO
SUPPORT THEIR WORK. Such expenditures shall be distributed regionally
and in accordance with the statewide opioid settlement agreements to
ensure adequate geographic disbursement across the state.
§ 3. Paragraph 3 of subdivision (b) of section 25.18 of the mental
hygiene law, as amended by chapter 171 of the laws of 2022, is amended
to read as follows:
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD15640-01-6
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3. Each New York subdivision shall provide a detailed accounting of
how the funds were used as well as an analysis and evaluation of the
services and programs funded. Such information shall be included in the
report provided pursuant to paragraph ten of subdivision (c) of this
section. ALL SUCH ACCOUNTINGS SHALL BE SUBJECT TO REVIEW AND APPROVAL
BY THE ATTORNEY GENERAL.
§ 4. Paragraph 5 of subdivision (c) of section 25.18 of the mental
hygiene law, as amended by chapter 171 of the laws of 2022, is amended
to read as follows:
5. Every effort shall be made to ensure a balanced and diverse board,
representing the geographic regions and racial and ethnic demographics
of the state as well as those with lived experiences of a substance use
disorder. Appointed members shall have an expertise in public and behav-
ioral health, substance use disorder treatment, harm reduction, criminal
justice, public finance, or drug policy. Further, the board shall
include individuals with personal or professional experience with
substance use and addiction issues and co-occurring mental illnesses as
well as providing services to those that have been disproportionately
impacted by the enforcement and criminalization of addiction. AT LEAST
FOUR BOARD MEMBERS SHALL HAVE LIVED EXPERIENCE. FOR THE PURPOSES OF THIS
PARAGRAPH "LIVED EXPERIENCE" SHALL MEAN AN INDIVIDUAL WHO HAS LOST A
CHILD, SIBLING, PARENT, OR A CLOSE FAMILY MEMBER TO SUBSTANCE USE DISOR-
DER.
§ 5. Paragraph 7 of subdivision (c) of section 25.18 of the mental
hygiene law, as amended by chapter 171 of the laws of 2022, is amended
to read as follows:
7. Members of the board shall not take any action to direct funding
from the opioid settlement fund to any entity in which they or their
family members have any interest, direct or indirect, or receive any
commission or profit whatsoever, direct or indirect. BEFORE ANY VOTE OF
THE BOARD, MEMBERS SHALL BE REQUIRED TO AFFIRM WHETHER THEY HAVE A
DIRECT OR INDIRECT INTEREST IN THE MATTER UNDER CONSIDERATION. Members
of the board shall recuse themselves from any discussion or vote relat-
ing to such interest.
§ 6. Paragraph 10 of subdivision (c) of section 25.18 of the mental
hygiene law, as amended by section 1 of part II of chapter 57 of the
laws of 2025, is amended to read as follows:
10. On or before November first of each year, beginning one year after
the initial deposit of monies in the opioid settlement fund, the rele-
vant commissioners shall provide a written report to the governor,
temporary president of the senate, speaker of the assembly, chair of the
senate finance committee, chair of the assembly ways and means commit-
tee, chair of the senate alcoholism and substance use disorders commit-
tee, chair of the assembly alcoholism and drug abuse committee, and the
opioid settlement advisory board. Such report shall be presented as a
consolidated dashboard and be made publicly available on the respective
offices' websites. The report shall, to the extent practicable after
making all diligent efforts to obtain such information, include the
following: (i) the baseline funding for any entity that receives funding
from the opioid settlement fund, prior to the receipt of such funds;
(ii) how funds deposited in the opioid settlement fund had been utilized
in the preceding calendar year, including but not limited to: (A) the
amount of money disbursed and the award process used for such disburse-
ment, if applicable; (B) the names of the recipients, the amounts
awarded to such recipient and details about the purpose such funds were
awarded for, including what specific services and programs the funds
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were used on and what populations such services or programs served; (C)
the main criteria utilized to determine the award, including how the
program or service assists to reduce the effects of substance use disor-
ders; (D) an analysis of the effectiveness of the services and/or
programs that received opioid settlement funding in their efforts to
reduce the effects of the overdose and substance use disorder epidemic.
Such analysis shall utilize evidence-based uniform metrics when review-
ing the effects the service and/or program had on prevention, harm
reduction, treatment, and recovery advancements; (E) any relevant infor-
mation provided by the New York subdivisions pursuant to this section;
and (F) any other information the commissioner deems necessary to help
inform future appropriations and funding decisions, and ensure such
funding is not being used to supplant local, state, or federal funding.
RECIPIENTS OF FUNDING SHALL BE REQUIRED TO SUBMIT TO THE CONTRACTING
STATE AGENCY CLEAR AND DETAILED INFORMATION EXPLAINING THEIR USE OF SUCH
FUNDING. FAILURE TO PROVIDE SUCH INFORMATION WILL MAKE THAT RECIPIENT
INELIGIBLE TO RECEIVE FUTURE SETTLEMENT FUNDS UNTIL SUCH INFORMATION IS
PROVIDED. THE ATTORNEY GENERAL MAY APPOINT AN INDEPENDENT MONITOR OR
TRUSTEE TO MANAGE THE SETTLEMENT FUNDS SHOULD THE RELEVANT COMMISSIONERS
FAIL TO PROVIDE THE WRITTEN REPORT REQUIRED BY THIS PARAGRAPH.
§ 7. Subdivision 3 of section 99-nn of the state finance law, as
amended by chapter 171 of the laws of 2022, is amended to read as
follows:
3. Money expended from such fund shall be used consistent with the
terms of any statewide opioid settlement agreements as defined in
section 25.18 of the mental hygiene law. Moneys of the fund shall be
used to supplement and not supplant or replace any other funds, includ-
ing federal or state funding, which would otherwise have been expended
for substance use disorder prevention, treatment, recovery or harm
reduction services or programs. MONEYS OF THE FUND SHALL BE AVAILABLE
FOR THE BOARD TO RETAIN LEGAL AND ADMINISTRATIVE STAFF TO SUPPORT THE
WORK OF THE BOARD.
§ 8. Subdivision 5 of section 99-nn of the state finance law, as
amended by chapter 171 of the laws of 2022, is amended to read as
follows:
5. Notwithstanding subdivision eleven of section four of this chapter,
or subdivision sixteen of section sixty-three of the executive law,
moneys from the opioid settlement fund shall be available following
appropriation by the legislature and shall only be expended on eligible
expenditures as defined in section 25.18 of the mental hygiene law for
prevention, treatment, harm reduction and recovery services related to
substance use disorders and co-occurring mental illnesses in New York
state pursuant to the terms of the statewide opioid settlement agree-
ments as defined in section 25.18 of the mental hygiene law. Funding
shall be distributed regionally and to ensure adequate geographic
disbursement across the state in accordance with the statewide opioid
settlement agreements. In addition to programs and services overseen by
the office of addiction services and supports, funding may also be
expended on programs and services overseen by the department of health,
the office of mental health, the division of housing and community
renewal or any other agency that may oversee an appropriate program or
service that is considered an eligible expenditure as provided under
section 25.18 of the mental hygiene law. Funding decisions shall
include an emphasis on supporting programs that are culturally, linguis-
tically and gender competent, trauma-informed, evidence-based and, where
appropriate, employ individuals with lived experience as part of the
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services provided. FUNDING DECISIONS SHALL ENSURE EQUITABLE DISTRIB-
UTION OF FUNDS TO ORGANIZATIONS OF ALL OPERATING BUDGET LEVELS. FUNDING
DECISIONS SHALL INCLUDE THE DEDICATION OF A PERCENTAGE OF FUNDING, AS
ESTABLISHED BY THE BOARD, TO BE PROVIDED TO ORGANIZATIONS LED BY PEOPLE
WITH LIVED EXPERIENCE AND TO COMMUNITIES MOST IMPACTED BY THE EPIDEMIC.
AT LEAST FIFTY PERCENT OF ALL FUNDS APPROPRIATED SHALL BE EXPENDED TO
PROVIDE HARM REDUCTION SERVICES AND ALL HARM REDUCTION FUNDS SHALL BE
ALLOCATED FOR DISTRIBUTION TO THE DEPARTMENT OF HEALTH, AIDS INSTITUTE,
AND THE OFFICE OF DRUG USER HEALTH. FOR THE PURPOSES OF THIS SUBDIVI-
SION, THE TERM "LIVED EXPERIENCE" SHALL MEAN AN INDIVIDUAL WHO HAS LOST
A CHILD, SIBLING, PARENT, OR A CLOSE FAMILY MEMBER TO SUBSTANCE USE
DISORDER.
§ 9. This act shall take effect one year after it shall have become a
law.