Here are the entities that ultimately decide how each of South Dakotaâs opioid settlement shares are spent:
70% state share:
30% local share: local officials for cities and counties
The Opioid Abatement and Remediation Fund holds South Dakotaâs state share of opioid settlement funds.[1]
This share must be spent âexclusively to abate and alleviate the opioid crisis,â[2] and attorneysâ fees and reimbursement uses are explicitly prohibited for this share.[3] South Dakota defines âApproved Use(s)â as uses that âfall withinâ or are âotherwise consistent withâ Exhibit A of its MOA.[4]
Exhibit A of South Dakotaâs MOA largely mirrors the national settlement agreementâs Exhibit E, Schedule B,[5] which includes treatment, prevention, harm reduction, and other strategies.
Opioid Advisory Committee recommends, Department of Social Services decides. The South Dakota Department of Social Services (DSS) ultimately decides specific expenditures for this share after consulting the recommendations of the Opioid Advisory Committee.[6] In making its recommendations, the Advisory Committee is required to create a process for receiving input from the stateâs localities, provider organizations, and communities.[7] DSS must then make a âgood-faith effortâ to incorporate the Advisory Committeeâs recommendations into the stateâs annual budget and publicly provide a written explanation to the Advisory Committee of any substantial deviations from the recommendations.[8]
In 2023, DSS established a to distribute 25% of this share to community organizations that partner with local governments.[9] The grant program is managed by the DSS Division of Behavioral Health and is just one of DSSâs investments from this share.[10]
No, supplantation is not prohibited. Like most states, South Dakota does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the state share may be spent in ways that replace (or âsupplantâ) â rather than supplement â existing resources.
Yes (public reporting required). South Dakotaâs MOA requires the state to publish an annual report that includes expenditures from this share, including any grants awarded (recipients, disbursement terms, and projects funded) online.[11] View annual reports .[12]
Visit OpioidSettlementTracker.comâs for an updated collection of statesâ and localitiesâ available expenditure reports.
Not applicable.
S.D. Codified Laws Sec. 34-20B-116(1). , â
. See also (âThe Statewide Share must be used only for (1) Approved Uses within the State of South Dakota or (2) grants for Approved Uses within the State of South Dakotaâ). â
(providing that the stateâs attorneysâ fees will not be drawn from the âStatewide Shareâ) and (âRegardless of allocation, all Opioid Funds must be used in a manner consistent with the Approved Purposes definition. No Opioid Funds will be used as restitution for past expenditures. Rather, Opioid Funds must be used in a present and forward-looking mannerâ). â
MOA I.A (ââApproved Use(s)â means purposes related to opioid abuse treatment, prevention, and recovery programs that fall within, or otherwise consistent with, the list of uses set out in Exhibit A, attached hereto and incorporated herein by referenceâ). â
The differences are superficial and non-substantive. Note that the national settlements provide for administrative expenses as an approved use, which South Dakota may incorporate but does not state expressly. See Distributor Settlement Agreement I.SS (âExhibit E provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation. Qualifying expenditures may include reasonable related administrative expensesâ). â
S.D. Codified Laws Sec. 34-20B-116 (requiring the legislature to assign Opioid Abatement and Remediation Fund expenditures to the Department of Social Services), MOA III.B (describing the Department of Social Services as the âlead agency responsible for distributing and using the Statewide Share in a manner that in its judgment will best address the opioid crisis within the Stateâ), and MOA IX.D (requiring the Advisory Committee to provide recommendations to DSS on âStatewide Shareâ uses). â
MOA IX.C. â
MOA IX.D. â
DSS launches program to address opioid use and misuse within the State. DSS Press Release. October 30, 2023. Accessed August 26, 2024. (âThe Department of Social Services (DSS) recently launched the South Dakota Opioid Settlement Fund Community Grant Programâ). Funding Opportunities and Grant Information. DSS. Accessed August 26, 2024. (âOpioid Settlement Fund Community Grant Program DSS utilizes 25% of the statewide share to support South Dakota Organizations efforts to abate and alleviate the impacts of the opioid crisis and co-occurring substance use challenges in South Dakota communitiesâ). Opioid Settlement Fund Community Grant Program FAQs. DSS. Accessed August 26, 2024 (âApplicants are limited to South Dakota-based organizations,â and âpartnering with a participating local government is required for applications to this programâ). Review a list of grantees from the Spring 2024 grant cycle here. â
See, e.g., DSS Opioid Settlement Update. DSS. August 8, 2024. Accessed August 26, 2024. â
MOA VI.F. â
See, e.g., Federal Opioid Funding Annual Report. South Dakota Department of Health and South Dakota Department of Social Services. 2023. Accessed September 1, 2024. â
South Dakotaâs local share is distributed directly to its 66 participating localities according to the percentages listed in the MOAâs Exhibit B.[1]
With limited exceptions,[2] this share must be spent on uses that âfall withinâ or are âotherwise consistent withâ Exhibit A of its MOA.[3] Reimbursement uses of opioid settlement funds are specifically prohibited statewide.[4]
Exhibit A of South Dakotaâs MOA largely mirrors the national settlement agreementâs Exhibit E, Schedule B,[5] which includes treatment, prevention, harm reduction, and other strategies.
Local governments decide autonomously (but must certify proper uses and counties consult their cities and towns). Decisionmakers for the cities and counties decide for themselves how to spend their monies on Approved Uses,[6] provided that counties âregularly consult with and receive inputâ from their cities and towns and make âreasonable and good faith effortsâ to collaborate with them on fund uses.[7] Additionally, localities must certify to the Opioid Advisory Committee â before and after spend â that funds were used according to Exhibit A of South Dakotaâs MOA.[8]
No, supplantation is not prohibited. Like most states, South Dakota does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the local share may be spent in ways that replace (or âsupplantâ) â rather than supplement â existing resources.
Up to each locality (no public reporting required, only intrastate). Opioid settlement expenditures are not officially published in a centralized location for this share, and local governments are required to report its expenditures only to the Advisory Committee.[9] The state has committed to include information on projects and strategies funded by local governments in its 2024 annual report,[10] but the specificity of any expenditure information remains to be seen.
Visit OpioidSettlementTracker.comâs for an updated collection of statesâ and localitiesâ available expenditure reports.
Not applicable.
This includes 1) counties and 2) cities or towns with populations over 10,000. . Cf. (â68 partnering counties/citiesâ). Participating localities excludes the minority of localities that opted to redistribute their shares to the state, as permitted by the MOA. . See also Caleb Barber. . Mitchell Republic. Oct. 17, 2023. Accessed August 26, 2024 (âThirteen county governments declined to participate in the funding distribution: Bennett, Buffalo, Day, Douglas, Haakon, Hamlin, Hyde, Kingsbury, Lyman, Marshall, Miner, Moody and Stanley. That resulted in about $20,000 going back to the state pile of funds to be distributed. Commissioners for the county governments that chose not to participate in the settlement funds cited the odd intervals and negligible amounts as being a main reason why they decided against accepting themâ). â
(providing merely that no attorneysâ fees will be drawn from the âStatewide Share,â and perhaps implying by omission that local governmentsâ attorneysâ fees will be drawn out of their own âLocalized Shareâ).There are only superficial differences between the national settlementâs Exhibit E and South Dakotaâs Exhibit A. Note that the national settlements provide for administrative expenses as an approved use, which South Dakota may incorporate but does not expressly state. I.SS (âExhibit E provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation. Qualifying expenditures may include reasonable related administrative expensesâ).
(ââApproved Use(s)â means purposes related to opioid abuse treatment, prevention, and recovery programs that fall within, or otherwise consistent with, the list of uses set out in Exhibit A, attached hereto and incorporated herein by referenceâ). (The Localized Share must be used only for (1) Approved Uses by Participating Local Governments or (2) grants for Approved Usesâ). â
. â
The differences are superficial and non-substantive. Note that the national settlements provide for administrative expenses as an approved use, which South Dakota may incorporate but does not expressly state. See I.SS (âExhibit E provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation. Qualifying expenditures may include reasonable related administrative expensesâ). â
. â
. See also (âNotwithstanding any term of this MOA, Participating Local Governments may collaborate with local governments both within and beyond their borders for the purpose of more effectively using Opioids Funds to abate the opioid crisisâ). â
. â
. â
. South Dakota Department of Health and South Dakota Department of Social Services. 2023. Accessed August 26, 2024 (âParticipating local governmentsâ awards were made in Calendar Year 2023 due to the original disbursement occurring at the very end of 2022. Programs, strategies, and projects funded by participating local governments will be included in the 2024 Annual Opioid Reportâ). â