State of Alaska
Fiscal Note
Bill Version: HB 171
2023 Legislative Session
Fiscal Note Number: 2
(H) Publish Date: 4/24/2023
Identifier: LL0609-DOR-TRS-04-20-23 Department: Department of Revenue
Title: OPIOID REMEDIATION FUNDS Appropriation: Taxation and Treasury
Sponsor: RLS BY REQUEST OF THE GOVERNOR Allocation: Treasury Division
Requester: Governor OMB Component Number: 121
Expenditures/Revenues
Note: Amounts do not include inflation unless otherwise noted below. (Thousands of Dollars)
Included in
FY2024 Governor's
Appropriation FY2024 Out-Year Cost Estimates
Requested Request
OPERATING EXPENDITURES FY 2024 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029
Personal Services
Travel
Services 12.6 16.2 19.9 23.7 27.7 31.8
Commodities
Capital Outlay
Grants & Benefits
Miscellaneous
Total Operating 12.6 0.0 16.2 19.9 23.7 27.7 31.8
Fund Source (Operating Only)
1252 DGF Temp (DGF) 12.6 16.2 19.9 23.7 27.7 31.8
Total 12.6 0.0 16.2 19.9 23.7 27.7 31.8
Positions
Full-time
Part-time
Temporary
Change in Revenues
None
Total 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Estimated SUPPLEMENTAL (FY2023) cost: 0.0 (separate supplemental appropriation required)
Estimated CAPITAL (FY2024) cost: 0.0 (separate capital appropriation required)
Does the bill create or modify a new fund or account? Yes
(Supplemental/Capital/New Fund - discuss reasons and fund source(s) in analysis section)
ASSOCIATED REGULATIONS
Does the bill direct, or will the bill result in, regulation changes adopted by your agency? No
If yes, by what date are the regulations to be adopted, amended or repealed? N/A
Why this fiscal note differs from previous version/comments:
Initial version.
Prepared By: Pamela Leary, Director Phone: (907)465-3751
Division: Treasury Division Date: 04/20/2023 12:00 PM
Approved By: Eric DeMoulin, Director Date: 04/20/23
Agency: Department of Revenue
Printed 4/24/2023 Page 1 of 2 Control Code: HqUYA
 HB 171 - Fiscal Note 2
FISCAL NOTE ANALYSIS
STATE OF ALASKA BILL NO. LL0609
2023 LEGISLATIVE SESSION
Analysis
The bill amends AS 37.14 to establish the Opioid Settlement Investment Fund (OSIF) as a special fund of the state outside
and separate from the general fund. The fund is established as an investment fund to support opioid addiction treatment,
recovery, remediation, and education, and creates a percent of market value draw from the fund for the purpose of
annual appropriation by the legislature. The OSIF is intended to be structured like an endowment fund that will be
invested to achieve sufficient earnings to grow and provide funding to a second fund, the Opioid Addiction Treatment
Fund (OATF) in the general fund that will be used to support various opioid addiction programs.
The proposed annual draw is equal to five percent of the average market value of the fund for the first five of the
preceding six fiscal years and would be available for appropriation. There is a transition period for appropriations in years
one through five. This target sum is considered to be sustainable over the long‐term life of the fund while allowing the
fund to potentially grow its corpus through investment earnings. The bill then directs the legislature to appropriate the
five percent draw into the OATF for use by the Department of Health (DOH).
As written, the OSIF will be managed similar to an endowment type fund. Currently, other endowment type funds are
charged at a rate of 10 basis points (0.1% or 0.001). The fund source would be the fund itself, therefore DGF.
The management fees reflected above are based on the estimated settlement funds of $58.5M at a rate of $3M per year
for 18 years, assuming a rate of return of 6% and 5% appropriations annually. There is currently $9.2 million in settlement
funds received by the state.
(Revised 08/26/2022 OMB/LFD) Page 2 of 2
LL0609-DOR-TRS-04-20-23 Page 2 of 2 Control Code: HqUYA


Statutes affected:
HB0171A, AM HB 171, introduced 04/24/2023: 37.14.761