Boulder County Opioid Settlement Background Information

Opioid Settlement Dollars Background Information

The deceptive marketing and overprescribing of opioid painkillers beginning in the early-2000’s has led to an addiction epidemic causing hundreds of thousands of deaths nationwide. Opioid overdoses and addiction have had a devastating effect in the community, and this crisis poses a serious threat to public health, safety, and the economy. Boulder County and its municipalities joined the State of Colorado and thousands of other state and local governments to file lawsuits against the manufacturers, distributors, and pharmacies responsible for this epidemic.

These lawsuits have resulted in settlements totaling more than $26 billion nationwide, with Colorado expecting to receive more than $750 million, referred to as Opioid Settlement Dollars or Opioid Abatement Funds. The Boulder County Region, including the cities within, is anticipating more than $30 million in Opioid Settlement Dollars between 2022 – 2038 to address the harms caused by this prescription painkiller crisis. The purpose of these Opioid Abatement Funds is to enhance the infrastructure, programming, and workforce necessary to address the damages related to the increasing prevalence of opioid overdose, opioid use disorder (OUD), substance use disorder (SUD), and related mental health challenges within our communities.

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State Requirements & Funding Guidelines

  • The Colorado Attorney General’s Office developed the Colorado Opioid Settlement Memorandum of Understanding (“Colorado MOU”) and the Colorado Opioid Abatement Council (“COAC”) to oversee the distribution and use of Opioid Settlement Dollars across the state. The Colorado MOU establishes the framework for distributing and sharing these settlement proceeds throughout Colorado.
  • The Colorado MOU can be viewed here: coag.gov/app/uploads/2021/10/1-Colorado-Opioid-MOU.pdf.
  • As indicated in the Colorado MOU, Opioid Settlement Dollars are distributed across the state in the following ways:
    • 60% to the Regional Share: See Colorado Opioid Settlement Regions below.
    • 20% to the Local Government Share: Direct allocation available to participating local governments.
    • 10% to the Infrastructure Share: Managed by the COAC and distributed to regions, local governments, and state entities for opioid abatement infrastructure needs.
    • 10% to the State Share: Managed by the Department of Law for state initiatives, including funds for expenditure reporting and regional planning.
  • More information about the State’s oversight of Opioid Settlement Dollars, including a dashboard tracking the use of Opioid Settlement Dollars across the state and opportunities for local organizations to apply for State Share funds can be found on the Colorado Attorney General’s Office website: coag.gov/opioids.

Colorado Opioid Settlement Regions

  • As a part of the Colorado MOU, the State allocates 80% of Opioid Settlement Dollars to local governments and regions.
  • 19 regions have been established across the state, with Boulder County identified as Region 6.
  • Each city within the region, including the County itself, is entitled to its own individual share of Opioid Settlement Dollars, known as Participating Local Governments (PLG). PLG’s are entitled to 20% of the Opioid Settlement Dollars. All PLGs within Region 6 have currently opted to route their individual shares to the Regional share, creating one large pool of available funds across the region.
    • Cities currently routing their individual share of Opioid Settlement Dollars to the Boulder County Region:
      • Boulder County
      • Boulder
      • Erie (also included in Opioid Settlement Region 3)
      • Jamestown
      • Lafayette
      • Longmont (also included in Opioid Settlement Region 3)
      • Louisville
      • Lyons
      • Nederland
      • Superior (also included in Opioid Settlement Region 10)
      • Ward

Approved Uses of Opioid Settlement Dollars

  • All Opioid Settlement Dollars must be used in accordance with approved uses listed in the national TEVA settlement, known as Exhibit E, as well as Exhibit A from the Colorado MOU.
  • Exhibit E can be viewed here: nationalopioidsettlement.com/wp-content/uploads/2023/02/TEVA-Exhibit-E.pdf.
  • Exhibit A can be viewed here: coag.gov/app/uploads/2021/10/1-Colorado-Opioid-MOU.pdf.
  • The approved uses span the substance use continuum of care including Prevention & Education, Harm Reduction, Treatment, and Recovery.
  • As part of the oversight process, the Colorado Opioid Abatement Council (COAC) reviews and ensures all Opioid Settlement Dollars requested and expended by each region align with these approved uses.

How Boulder County Receives Its Share of Opioid Settlement Dollars

  • All funds resulting from Opioid Settlements are held by a national administrator.
  • In accordance with the Colorado MOU, regions develop and submit a two-year plan to the Colorado Opioid Abatement Council (COAC) indicating their anticipated use of Opioid Settlement Dollars in alignment with the approved uses.
  • Each year, the COAC allows regions two opportunities to draw down their annual allocation of Opioid Settlement Dollars based on their two-year plan. These dates are March 15 and September 15. Regions are able to amend their two-year plan.
  • Once the regional request is approved by the COAC, the national administrator distributes the funds to the region’s fiscal agent. Boulder County acts as the fiscal agent responsible for holding and distributing the region’s share, including staffing to manage the planning, distribution, and tracking of these dollars.
  • Annually, regions must report on the use of the funds drawn down. An expenditure report outlining the previous calendar year (Jan – Dec) of spending is due to the COAC on February 15.

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