Why Should Delaware Care?
Delaware’s controversial quarter-billion dollar opioid settlement fund is gearing up to release $13 million in grants later this month. A new law making its way through the legislature would restructure how the government releases its windfall.
The Delaware lieutenant governor would no longer have authority over a $250 million pot of money for addiction services if a bill that passed the Delaware House of Representatives on Thursday becomes law.
Introduced last month by House Speaker Melissa Minor-Brown, House Bill 169, comes about one year after a scandal first broke over former Lt. Gov. Bethany Hall-Long’s handling of the fund, which is derived from $57 billion in legal settlements with opioid manufacturers and distributors.
In a committee hearing last month, lawmakers did not mention those problems that emerged last year, instead stating that the bill would streamline a process of funding addiction services, such as counseling, wound care, and prison reentry services.
The legislation would place approval and distribution powers over the opioid fund solely into the hands of the members of the Delaware Prescription Opioid Settlement Distribution Commission.
Under current law, the commission works in tandem with a body, called the Behavioral Health Consortium, which lies under the authority of the lieutenant governor’s office.
Currently, applications for opioid money are first reviewed by the Opioid Settlement Distribution commission, which then makes recommendations about grant approvals to the Behavioral Health Consortium.
After the Behavioral Health Consortium approves a grant, oversight and day-to-day communication with grantees returns to opioid commission staff, which in recent years was also run by Hall-Long and her staff.
This new bill would remove that approval from the Behavioral Health Consortium, placing all responsibility onto the opioid commission.
After its passage in the House of Representatives last week, the bill could go for a committee vote in the Senate later this week.
Separately, the opioid commission prepares to approve $13 million in grants later this month.
The bill also removes Attorney General Kathy Jennings as co-chair of the opioid commission – a position she held since the inception of the commission. Additionally, it adds term limits for appointed board members, who would be able to serve no longer than six years.
Since last year, Delaware’s opioid commission has faced a slew of controversies detailed in a Spotlight Delaware investigation, which found several applications were approved with little review, as well as some organizations receiving funding despite concerns from the attorney general’s office.
Delaware’s opioid fund has yet to release any substantial funding since 2023. Last summer, Jennings called for a freeze on grants and warned of widespread deficiencies in the program, including potential fraud committed by a Kent County nonprofit.
Little has been said publicly about the progress of an investigation into that nonprofit.
Recently, Delaware was among a coalition of states that won close to $57 billion from legal battles waged with opioid manufacturers and distributors. Delaware’s share was about $250 million.
Just last month, Jennings’ office secured $27 million from a settlement from Purdue Pharma and the Sackler family that would contribute to the fund.
In 2021, Delaware legislators created the opioid commission with responsibilities that included recommending how to spend Delaware’s quarter-billion dollar opioid windfall. It was initially co-chaired by Hall-Long and Jennings, who subsequently butted heads over how to spend the money.
Early in January, Hall-Long stepped down as lieutenant governor to serve for two weeks as governor, completing the term of then-Gov. John Carney.
Later in January, Kyle Evans Gay was sworn in as Delaware’s next lieutenant governor.
