TITLE
Title
AMEND THE OPIOID SETTLEMENT FUND
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SPONSOR
Sponsor
Toy Beeninga
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BACKGROUND
Background
On July 12, 2023, The North Carolina Department of Justice (NC DOJ) provided new guidance to local governments on how to authorize the expenditure of opioid settlement funds. With the adoption of the Fiscal Year 2024 budget, the Board approved four (4) grant project ordinances to account for opioid settlement dollars. The attached memo highlights NC DOJ's position, as outlined below:
"Before July of 2022, NCGS § 159-13.2 defined “grant project” as follows:
“Grant project” means a project financed in whole or in part by revenues received from the federal and/or State government for operating or capital purposes as defined by the grant contract.
In July of 2022, the NCGS § 159-13.2 definition of grant project was amended to add the underlined words:
“Grant project” means a project financed in whole or in part by revenues received from the federal and/or State government or other grant or settlement funds for operating or capital purposes as defined by the grant contract.”
Although the amended definition of “grant project” now mentions “settlement funds,” it still requires that settlement funds be used for “purposes as defined by the grant contract.” Because there is no “grant contract” associated with opioid settlement funds, NC DOJ does NOT believe that a local government can use a grant project ordinance for opioid settlement funds."
Based on this guidance, staff need the Board of Commissioners' approval to close the grant project ordinances and continue to account for these funds in a special revenue operating fund, until the General Assembly enacts legislation clarifying this option for opioid settlement funds.
This action does not increase dollars appropriated to the projects. This action only changes the accounting practices utilized to account for appropriated funding.
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BUDGET IMPACT
Budget Impact
Fiscal Year 2024 funding will i...
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