Beshear: ‘Game-Changing’ Drug Settlement Dollars Should Be Spent Helping State Recover from Epidemic

Dedicated trust fund would allocate drug settlement funds to aid law enforcement, prevention efforts

FRANKFORT, Ky. (Sept. 27, 2018) – As the opioid epidemic continues to claim the lives of Kentuckians, at a pace of nearly 30 a week, Attorney General Andy Beshear is once again calling on state lawmakers to create a permanent trust fund to battle addiction in Kentucky. 

Beshear worked with Rep. Dennis Keene, of Wilder, to pre-file legislation that requires funds recovered by the Commonwealth from lawsuits, fines or settlements related to the drug epidemic to only be spent addressing the needs of Kentucky’s drug prevention educators, law enforcement and treatment providers.

Beshear said he wants to guarantee all revenues gained from the seven lawsuits his office is pursuing, and any future lawsuit funds, be spent to help Kentucky families and communities recuperate from the death and destruction caused by this epidemic.

“By holding opioid manufactures or distributors accountable, the Commonwealth could realize ‘game-changing’ funding that must not be lost to other causes or subjects,” said Beshear. “We must leave no question that these desperately needed funds go directly to those in crisis and on the front-lines.”

Beshear is currently seeking punitive damages for the Commonwealth in his lawsuits against AmerisourceBergen, Cardinal Health, Endo Pharmaceuticals, Johnson and Johnson, Mallinckrodt, McKesson Corporation and Walgreens. The lawsuits allege each company unlawfully built a market for the chronic use of opioids in the name of increasing corporate profits, knowing all along the dangers.

As established in BR 155, the Kentucky addiction prevention, recovery and enforcement fund, will be administered by a committee that will retain and direct applicable revenues. If passed, both the governor and the attorney general would appoint members to the fund, and the president of the senate and speaker of the house would serve as ex-officio members.

Bill sponsor Dennis Keene, of Wilder, said Kentucky’s war on drugs is positioned above party lines and remains a priority for all members of the General Assembly.

“This epidemic touches every corner of our state and in order to win this battle we must draw our resources together and work together,” he said. “The bill sets forth a bipartisan committee, which adds a representative from the prevention community, to help prevent future addiction and aid the committee in determining how best to allocate incoming settlement funds from lawsuits filed and won by Attorney General Beshear.”

Rep. Keene said that last year he filed similar legislation, House Bill 219, which had 30 co-sponsors yet never received a hearing in a House committee.

More than 40 drug treatment advocates and law enforcement officials attended the announcement Thursday in support of the fund, which they believe will help drive real solutions to the epidemic and save lives.

Jim Beiting, chief executive officer, Transitions Inc. said, "Prevention, law enforcement and treatment programs are in need of adequate funding to provide top notch and evidence based interventions." 

Jason Merrick, addiction services director, Kenton County Detention Center said, “Updated and restructured funding in relation to law enforcement and correctional-based recovery efforts such as Kenton County’s Quick Response Teams and COR-12 is needed to sufficiently support the innovative advancements in the field. We can, and will overcome this epidemic. Beshear’s actions will make recovery in Kentucky a sustainable reality.”

The continued push to create a trust fund through legislation is part of Beshear’s ongoing efforts to tackle the state’s drug epidemic.

Beshear has also advocated for tougher federal and state drug laws. He supported legislation to amend the state’s laws to create penalties for dealers of fentanyl, carfentanil and other designer drugs, and established a new class definition for fentanyl derivatives. 

Beshear said since taking office he has made it a priority to provide millions in settlement funds to treatment, prevention and law enforcement programs.

In 2016, Beshear provided $8 million from a pharmaceutical settlement to 15 substance abuse treatment centers across Kentucky.

Last year, Beshear announced $2.5 million to the Prosecutors Advisory Council to implement and expand Rocket Docket programs in Kentucky for fiscal year 2018. The programs quickly move addicts through the court system and into treatment and saved Kentucky taxpayers $12 million last year and are on track to save $16 million in 2018.

Beshear has launched the state’s first initiative to allow Kentuckians to safely dispose of opioid medications at home. The program has the potential to dispose of more than 2.2 million unused opioids and help to reduce the nearly 80 percent of heroin users who begin their addiction with prescription drugs. 

The office is also instrumental in numerous drug related arrests, including working with federal authorities to arrest a fentanyl dealer whose drugs killed several Kentuckians.

Just last week, Beshear announced that his office has won fights to keep four of his current opioid lawsuits in Kentucky courts, and that Kentuckians can track the progress of each case by visiting ag.ky.gov.

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