Title 040 | Chapter 009 | Regulation 020
SUPERSEDED
This document is no longer current.
DEPARTMENT OF LAW
Kentucky Opioid Abatement Advisory Commission
(New Administrative Regulation)
40 KAR 9:020.Local government application procedure.
Section 1.
Covered Governmental Bodies. Any county, consolidated local government, urban-county government, or city in the Commonwealth that received or will receive opioid funds under KRS 15.293(4) shall be a covered governmental body.Section 2.
Duties of Covered Governmental Bodies.(1)
Consistent with KRS 15.293(4)(c)(2), covered governmental bodies shall submit quarterly certifications to the Commission due on the following dates of the calendar year:(a)
March 31;(b)
June 30;(c)
September 30; and(d)
December 31.(2)
Covered governmental bodies shall submit certifications using the KYOAAC Certification Form, which is incorporated by reference in 40 KAR 9:010.(3)
Certifications are required until the recipient exhausts all funds received pursuant to KRS 15.291 or 15.293 and until the recipient has submitted a certification stating that all such funds have been exhausted.Section 3.
Noncompliance.(1)
Noncompliance shall include:(a)
Materially falsified information in any certifications filed pursuant to or required by KRS 15.291, KRS 15.293, or related regulations;(b)
Failure to meet certification submission deadlines; or(c)
Failure to expend funds in conformity with the enumerated purposes set forth in KRS 15.291, pursuant to KRS 15.293(5).(2)
The Commission shall require covered governmental bodies to reimburse the Commission for any funds expended in a noncompliant manner.(3)
The Commission shall report noncompliance to the Department of Law for determination as to whether further action is necessary to ensure compliance with opioid-related agreements.DANIEL CAMERON, Attorney General
W. BRYAN HUBBARD, Executive Director
APPROVED BY AGENCY: December 21, 2022
FILED WITH LRC: January 6, 2023 at 10:26 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on March 21, 2023, at 1:00 p.m. Eastern Time at 1024 Capital Center Drive, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing shall be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. If you do not wish to be heard at the public hearing, you shall submit written comments on the proposed administrative regulation. Written comments shall be accepted through midnight of March 28, 2023. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Alison Chavies, Office of the Attorney General, 1024 Capital Center Drive, Frankfort, Kentucky 40601-3449, phone 502-696-5638, fax 502-564-2894, email ali-son.chavies@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Alison Chavies
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the process for covered governmental bodies that receive settlement funds from certain opioid-related litigation to submit certifications on the use of such funds.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to establish a process for ensuring compliance by covered governmental bodies that receive settlement funds from certain opioid-related litigation.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This administrative regulation conforms to the content of the authorizing statutes, KRS 15.291 and 15.293, because it establishes a process for covered governmental bodies to certify that funds were used consistent with KRS 15.291.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation will assist in the effective administration of KRS 15.291 and KRS 15.293 by defining the rules and methods used to certify use and compliance with statutes in the use of opioid-related settlement funds. The administrative regulation will also further the statutes’ goal of providing accountability in the use of such funds.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A (b) The necessity of the amendment to the administrative regulation: N/A
(b) The necessity of the amendment to this administrative regulation:
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This administrative regulation will affect all covered governmental bodies that receive settlement funds from certain opioid-related litigation.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
Covered governmental bodies will have to submit the required certifications and maintain the required records in accordance with this administrative regulation.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
There shall be minor administrative costs, which are difficult to estimate at this juncture, to comply with this administrative regulation; the Commission does not anticipate any other costs for compliance.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
A covered governmental body that complies with the administrative regulation will avoid the potential consequences of noncompliance.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
The Department of Law shall bear administrative costs, which are difficult to estimate at this time, in implementing this regulation; other costs for implementation are not anticipated.
(b) On a continuing basis:
N/A. (6) What is the source of funding to be used to the implementation and enforcement of this administrative regulation: The Commission is funded by proceeds from the opioid-related settlements, judgements, and bankruptcies referenced in KRS 15.293.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
The Commission is funded by proceeds from the opioid-related settlements, judgements, and bankruptcies referenced in KRS 15.293.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no need to increase funding to implement this administrative regulation.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation neither establishes nor increases any fees.
(9) TIERING: Is tiering applied?
Tiering is not appropriate because the administrative regulation applies equally to all those entities and governmental agencies regulated by it.
FISCAL NOTE
(1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
This administrative regulation will impact the Department of Law because the Department of Law is charged with the administration of the Commission. The regulation will also impact any covered governmental bodies that receive any opioid-related monies referenced by KRS 15.291 or 15.293.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 15.291 and 15.293 require and authorize the action taken by this administrative regulation.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
The administrative regulation facilitates certification of the use of certain opioid-related settlement funds; therefore, this regulation does not generate any revenue. However, as a result of the opioid settlements, local governments shall qualify for funds that they shall then expend on opioid abatement. At this time, an estimate for the amounts relevant local governments will receive from these opioid settlement funds cannot be provided.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
See 3 above.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
See 3 above.
(c) How much will it cost to administer this program for the first year?
At this time, an estimate of the cost to the Department of Law to administer this program cannot be provided. However, the Department of Law will make funding requests to the Commission, per KRS 15.291 and 15.293, as appropriate to offset the Department of Law’s related costs.
(d) How much will it cost to administer this program for subsequent years?
See 3(c) above.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
N/A.
Expenditures (+/-):
Expenditure amounts will be determined by receipt of settlement funds and the manner in which the Commission expends such funds.
Other Explanation:
N/A.
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
As a result of the opioid settlements, covered governmental bodies shall qualify for funds that they shall use in ways to save on associated costs of opioid and substance abuse. At this time, the Department of Law is unable to provide an estimate for the amounts that will be received from these opioid settlement funds.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
See 4 above.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
See 4 above.
(c) How much will it cost the regulated entities for the first year?
At this time, the Commission is unable to estimate the cost to the regulated entities during the first year or subsequent years.
(d) How much will it cost the regulated entities for subsequent years?
See 4(c).
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
N/A.
Expenditures (+/-):
Expenditure amounts will be determined by receipt of settlement funds and the manner in which the regulated entities expend such funds.
Other Explanation:
N/A
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
This administrative will not have a major impact as it will not incur costs upon state or local government or regulated entities, in aggregate, of more than $500,000.
DEPARTMENT OF LAW
Kentucky Opioid Abatement Advisory Commission
(New Administrative Regulation)
40 KAR 9:020.Local government application procedure.
Section 1.
Covered Governmental Bodies. Any county, consolidated local government, urban-county government, or city in the Commonwealth that received or will receive opioid funds under KRS 15.293(4) shall be a covered governmental body.Section 2.
Duties of Covered Governmental Bodies.(1)
Consistent with KRS 15.293(4)(c)(2), covered governmental bodies shall submit quarterly certifications to the Commission due on the following dates of the calendar year:(a)
March 31;(b)
June 30;(c)
September 30; and(d)
December 31.(2)
Covered governmental bodies shall submit certifications using the KYOAAC Certification Form, which is incorporated by reference in 40 KAR 9:010.(3)
Certifications are required until the recipient exhausts all funds received pursuant to KRS 15.291 or 15.293 and until the recipient has submitted a certification stating that all such funds have been exhausted.Section 3.
Noncompliance.(1)
Noncompliance shall include:(a)
Materially falsified information in any certifications filed pursuant to or required by KRS 15.291, KRS 15.293, or related regulations;(b)
Failure to meet certification submission deadlines; or(c)
Failure to expend funds in conformity with the enumerated purposes set forth in KRS 15.291, pursuant to KRS 15.293(5).(2)
The Commission shall require covered governmental bodies to reimburse the Commission for any funds expended in a noncompliant manner.(3)
The Commission shall report noncompliance to the Department of Law for determination as to whether further action is necessary to ensure compliance with opioid-related agreements.DANIEL CAMERON, Attorney General
W. BRYAN HUBBARD, Executive Director
APPROVED BY AGENCY: December 21, 2022
FILED WITH LRC: January 6, 2023 at 10:26 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on March 21, 2023, at 1:00 p.m. Eastern Time at 1024 Capital Center Drive, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing by five workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing shall be canceled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. If you do not wish to be heard at the public hearing, you shall submit written comments on the proposed administrative regulation. Written comments shall be accepted through midnight of March 28, 2023. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Alison Chavies, Office of the Attorney General, 1024 Capital Center Drive, Frankfort, Kentucky 40601-3449, phone 502-696-5638, fax 502-564-2894, email ali-son.chavies@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Alison Chavies
(1) Provide a brief summary of:
(a) What this administrative regulation does:
This administrative regulation establishes the process for covered governmental bodies that receive settlement funds from certain opioid-related litigation to submit certifications on the use of such funds.
(b) The necessity of this administrative regulation:
This administrative regulation is necessary to establish a process for ensuring compliance by covered governmental bodies that receive settlement funds from certain opioid-related litigation.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
This administrative regulation conforms to the content of the authorizing statutes, KRS 15.291 and 15.293, because it establishes a process for covered governmental bodies to certify that funds were used consistent with KRS 15.291.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
This administrative regulation will assist in the effective administration of KRS 15.291 and KRS 15.293 by defining the rules and methods used to certify use and compliance with statutes in the use of opioid-related settlement funds. The administrative regulation will also further the statutes’ goal of providing accountability in the use of such funds.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
N/A (b) The necessity of the amendment to the administrative regulation: N/A
(b) The necessity of the amendment to this administrative regulation:
(c) How the amendment conforms to the content of the authorizing statutes:
N/A
(d) How the amendment will assist in the effective administration of the statutes:
N/A
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
This administrative regulation will affect all covered governmental bodies that receive settlement funds from certain opioid-related litigation.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
Covered governmental bodies will have to submit the required certifications and maintain the required records in accordance with this administrative regulation.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
There shall be minor administrative costs, which are difficult to estimate at this juncture, to comply with this administrative regulation; the Commission does not anticipate any other costs for compliance.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
A covered governmental body that complies with the administrative regulation will avoid the potential consequences of noncompliance.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
The Department of Law shall bear administrative costs, which are difficult to estimate at this time, in implementing this regulation; other costs for implementation are not anticipated.
(b) On a continuing basis:
N/A. (6) What is the source of funding to be used to the implementation and enforcement of this administrative regulation: The Commission is funded by proceeds from the opioid-related settlements, judgements, and bankruptcies referenced in KRS 15.293.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
The Commission is funded by proceeds from the opioid-related settlements, judgements, and bankruptcies referenced in KRS 15.293.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
There is no need to increase funding to implement this administrative regulation.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation neither establishes nor increases any fees.
(9) TIERING: Is tiering applied?
Tiering is not appropriate because the administrative regulation applies equally to all those entities and governmental agencies regulated by it.
FISCAL NOTE
(1) What units, parts, or divisions of state or local government (including cities, counties, fire departments, or school districts) will be impacted by this administrative regulation?
This administrative regulation will impact the Department of Law because the Department of Law is charged with the administration of the Commission. The regulation will also impact any covered governmental bodies that receive any opioid-related monies referenced by KRS 15.291 or 15.293.
(2) Identify each state or federal statute or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 15.291 and 15.293 require and authorize the action taken by this administrative regulation.
(3) Estimate the effect of this administrative regulation on the expenditures and revenues of a state or local government agency (including cities, counties, fire departments, or school districts) for the first full year the administrative regulation is to be in effect.
The administrative regulation facilitates certification of the use of certain opioid-related settlement funds; therefore, this regulation does not generate any revenue. However, as a result of the opioid settlements, local governments shall qualify for funds that they shall then expend on opioid abatement. At this time, an estimate for the amounts relevant local governments will receive from these opioid settlement funds cannot be provided.
(a) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for the first year?
See 3 above.
(b) How much revenue will this administrative regulation generate for the state or local government (including cities, counties, fire departments, or school districts) for subsequent years?
See 3 above.
(c) How much will it cost to administer this program for the first year?
At this time, an estimate of the cost to the Department of Law to administer this program cannot be provided. However, the Department of Law will make funding requests to the Commission, per KRS 15.291 and 15.293, as appropriate to offset the Department of Law’s related costs.
(d) How much will it cost to administer this program for subsequent years?
See 3(c) above.
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Revenues (+/-):
N/A.
Expenditures (+/-):
Expenditure amounts will be determined by receipt of settlement funds and the manner in which the Commission expends such funds.
Other Explanation:
N/A.
(4) Estimate the effect of this administrative regulation on the expenditures and cost savings of regulated entities for the first full year the administrative regulation is to be in effect.
As a result of the opioid settlements, covered governmental bodies shall qualify for funds that they shall use in ways to save on associated costs of opioid and substance abuse. At this time, the Department of Law is unable to provide an estimate for the amounts that will be received from these opioid settlement funds.
(a) How much cost savings will this administrative regulation generate for the regulated entities for the first year?
See 4 above.
(b) How much cost savings will this administrative regulation generate for the regulated entities for subsequent years?
See 4 above.
(c) How much will it cost the regulated entities for the first year?
At this time, the Commission is unable to estimate the cost to the regulated entities during the first year or subsequent years.
(d) How much will it cost the regulated entities for subsequent years?
See 4(c).
Note: If specific dollar estimates cannot be determined, provide a brief narrative to explain the fiscal impact of the administrative regulation.
Cost Savings (+/-):
N/A.
Expenditures (+/-):
Expenditure amounts will be determined by receipt of settlement funds and the manner in which the regulated entities expend such funds.
Other Explanation:
N/A
(5) Explain whether this administrative regulation will have a major economic impact, as defined below.
This administrative will not have a major impact as it will not incur costs upon state or local government or regulated entities, in aggregate, of more than $500,000.