Council hears $206M trust balance, Endo and Kroger settlements; rejects UT Memphis 10-year contract

The Tennessee Opioid Abatement Council received an update on the trust fund and recent settlement receipts, approved a limited rollover policy for unspent 2024 community grant dollars, and voted down a proposed 10-year contract with UT Memphis.

Executive Director Mary Shelton said the attorney general's office reported two new settlements: Endo (payment received, approximately $8.4 million) and Kroger (an expected $30 million paid over 11 years). Staff presented the October trust-fund snapshot showing net cash available of about $206,180,222.

Deputy Director Sean reported community grants activity: roughly $78 million awarded for 2024-25 (part of a $114 million total multi-year award portfolio), 106 fully executed contracts, and 171 invoices processed totaling approximately $5.1 million paid. Staff also reported 27 fiscal risk assessments completed (25 moderate, 2 low), two on-site visits completed with no significant findings, and 15 site visits planned for Jan–Mar 2025.

The council considered a staff request to approve a 10-year, $3 million arrangement (the alternative to a proposed endowment) with UT Memphis after the AG's office advised the original endowment structure was legally impermissible. Legal and comptroller review were discussed; Sam (counsel) and JP (AG's office) advised the council that contracts longer than 60 months require comptroller review. After debate the council voted; the motion to approve the 10-year UT Memphis contract failed (recorded in the meeting as 5 yays and 6 nays).

Separately, because contract execution delays had prevented some cycle 1 grantees from spending awarded funds, the council approved a motion (with an amendment limiting it to funds not spent from 2024) to permit cycle-1 grantees to roll over unspent 2024 funds so they can complete planned work. The motion carried by roll call.