HomeMy WebLinkAboutItem 11c - National Opioid Settlement
DATE: April 4, 2023
TO: Honorable Mayor and City Council
FROM: Michael Maurer, City Attorney
SUBJECT: RESOLUTION NO. 7491 OPTING INTO SETTLEMENT AGREEMENTS
WITH DISTRIBUTORS OF OPIOIDS, WALGREENS CO., WALMART,
INC., AND CVS HEALTH CORPORATION/CVS PHARMACY, INC., AND
OPIOID MANUFACTURERS TEVA PHARMACEUTICAL INDUSTRIES
LTD. AND ALLERGAN FINANCE, LLC/ALLERGAN LIMITED
CEQA: Exempt
Recommendation: Adopt
SUMMARY
Last year, states and cities across the United States brought litigation against the three
largest pharmaceutical distributors of opioid painkillers, Amerisource Bergen, Cardinal
Health, and McKesson (the “Distributors”), and the opioid painkiller manufacturer,
Janssen (owned by Johnson & Johnson) (“J&J”), which resulted in two proposed
settlements totaling approximately $26 billion dollars. The City has previously opted into
the Distributors and the J&J Settlements and has started receiving payments.
Between November and December 2022, five additional parties (the “New Parties”) have
entered into National Opioid Settlements with terms identical to the Distributors/J&J
Settlements. The City can opt into these new settlements, thereby releasing its claims
against the New Parties, in order to receive a maximum of $412,000, paid out over a
period of 15 years. The funds are restricted to certain opioid abatement/remediation uses.
The City can either allow the funds to be used by Los Angeles County or elect to use the
funds itself subject to reporting requirements to the state. Alternatively, the City can take
no action, thereby opting out of the settlements, while maintaining its right to pursue
litigation against the New Parties.
It is recommended that the City Council opt into the Settlement Agreements and authorize
the City Manager to accept the funds directly to be used in the City for allowable purposes.
Opting into Five Additional National Opioid Settlements
April 4, 2023
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BACKGROUND & DISCUSSION
A. Allocation of Funds
Litigation against the New Parties has resulted in a proposed settlement totaling
approximately $20.2 billion. The proposed settlement is broken into five separate deals:
(1) the Walgreens Settlement; (2) the Walmart Settlement; (3) the CVS Settlement; (4)
the Teva Settlement; and (5) the Allergan Settlement. The estimated total nationwide
payout and payment schedule are outlined below:
Defendant
Estimated Max Payout
(100% Participation) Years
Walgreens $5,522,528,766 15 years
Walmart $3,011,242,061 Primarily paid within 3 years, but if
participation levels are not met until later,
payment can extend over 6 years
CVS $5,002,083,578 10 years
Teva $4,246,567,371.76 6 years
Allergan $2,372,972,184.12 7 years
Of the amounts above, California is to receive approximately $1.8 billion and is to
distribute these funds pursuant to intrastate allocation agreements for the new
settlements.
As outlined in the Intrastate Allocation Agreements, Settlement Fund payments due to
the State of California are allocated as follows: 15% to the State Fund; 70% to the
California Abatement Accounts Fund; and 15% to the California Subdivision Fund. This
results in the State receiving 15% of the payments allocated to California and local
subdivisions receiving the remaining 85%. The percentages paid out to the California
Subdivision Fund are reserved for entities that participated in the litigation of the claims
giving rise to the settlement agreements. The percentages paid out to local subdivisions
that did not litigate (such as Arcadia), but choose to opt into the settlements, comes from
the share of the settlement proceeds that are placed in the California Abatement Accounts
Fund. Essentially, this means that the City of Arcadia, if it chooses to opt into the
settlement, is entitled to receive a percentage share from the California Abatement
Accounts Fund.
Opting into Five Additional National Opioid Settlements
April 4, 2023
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The City of Arcadia has been allocated 0.033% of the 70% of the approximately $1.8
billion (i.e., best case scenario), which is equal to $412,000. This total amount will be
disbursed over a period of 15 years, with payments decreasing as each settlement
finishes paying out. The first payments are scheduled to occur in the latter half of 2023.
After the receipt of these initial payments, further payments will be received annually
thereafter. As stated above, the ultimate settlement amount is not yet known because of
the bonus structure built into the agreements.
The default distribution of funds in the settlement agreements provides that the funds will
go directly to the county in which a city is located. A city can elect to have its funds
delivered directly to the city by providing notice in the settlement agreements. Additionally,
a city within a county may opt in or out of direct payment at any time, and it may also elect
direct payment of only a portion of its share, with the remainder going to the county, by
providing notice to the settlement fund administrators at least 60 days prior to a payment
date.
In deciding whether to allow a city’s funds to go directly to the county in which a city is
located, a city should consider the following: (1) whether the amount of money is
substantial enough for the city to handle on its own; (2) whether the city offers the services
and has the employees to spend the money in accordance with its prescribed uses; and
(3) whether the city wants to engage in the reporting requirements over the course of the
next 15 years (16 years of distribution and an additional year following final distribution).
B. Use of Received Funds
Similar to the Distributor and J&J Settlements, funds received from these additional
settlements must be used for future opioid remediation or abatement. For instance,
participating subdivisions may use funds for areas such as services to treat opioid use
disorder; support people in treatment and recovery; connect people to care; address
needs of criminal justice-involved persons; address the needs of pregnant or parenting
women and their families, including babies with neonatal abstinence syndrome; prevent
over-prescribing and ensure appropriate prescribing and dispensing of opioids; prevent
misuse of opioids; prevent overdose deaths and other harms; provide leadership,
planning, and coordination of programs; provide training; and conduct research.
The Intrastate Allocation Agreements also provide spending limitations in addition to
those provided in the settlement agreements. Under the Intrastate Allocation Agreements,
no less than 50% of the funds received in each calendar year will be used for one or more
of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use
disorder facilities within the Behavioral Health Continuum Infrastructure
Program;
(2) creating new or expanded Substance Use Disorder (“SUD”) treatment
infrastructure;
Opting into Five Additional National Opioid Settlements
April 4, 2023
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(3) addressing the needs of communities of color and vulnerable
populations (including sheltered and unsheltered homeless populations)
that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment,
including by providing training and resources to first and early responders
(sworn and non-sworn) and implementing best practices for outreach,
diversion and deflection, employability, restorative justice, and harm
reduction; and/or
(5) interventions to prevent drug addiction in vulnerable youth.
In addition to these requirements, there is also a time limit on the spending of received
funds. If funds are not expended or encumbered within five years of receipt and in
accordance with the settlement agreements and the Intrastate Allocation Agreements,
the funds are required to be transferred back to the State.
C. Management of Funds
Each county and city that receives payment of funds from the settlements must prepare
written reports at least annually regarding the use of those funds until the funds are fully
expended and for one year thereafter. Each county and city will need to track all deposits
and expenditures. These reports will also include a certification that all funds received
have been used in compliance with the allocation agreements. The California Department
of Healthcare and Services (“DHCS”) may review these reports to determine compliance
with the settlement agreements and the Intrastate Allocation Agreement.
If the DHCS determines that a participating subdivision’s use of abatement funds is
inconsistent with the settlement agreements or Intrastate Allocation Agreements, the
parties are required to meet and confer. If the meet and confer process does not provide
a resolution, the DHCS may conduct an audit, which can lead to a court action if the
matter is still not resolved after an audit.
D. Opting In
The City must opt into the settlements by April 18, 2023, which requires the City to release
its claims against the New Parties. The attached Resolution No. 7491 authorizes the City
Manager to execute an Allocation Agreement and a Participation Agreement as well as
performing any other tasks necessary to opt in. Samples of each Agreement are attached
to this report (final documents will be separately provided to the City for execution).
If the City Council takes no action, it will effectively opt out of the settlements and
Arcadia’s designated funds will flow to the State. By opting out of the settlements, the City
would still have the opportunity to bring its own action against the New Parties.
Opting into Five Additional National Opioid Settlements
April 4, 2023
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ENVIRONMENTAL ANALYSIS
The proposed action does not constitute a project under the California Environmental
Quality Act (“CEQA”), and it can be seen with certainty that it will have no impact on the
environment. Thus, this matter is exempt under CEQA under Sections 15060(c)(2) and
15060(c)(3) of the CEQA Guidelines.
FISCAL IMPACT
Approval of the settlement will result in gross payments of up to $412,000 for opioid
abatement over a 15-year period. If the City elects direct payments, the City would have
nominal staff costs to administer and report on its use of the funds.
RECOMMENDATION
It is recommended that the City Council determine that the proposed action is not a project
under CEQA; adopt Resolution No. 7491 opting into settlement agreements with
distributors of opioids, Walgreens Co., Walmart, Inc., and CVS Health Corporation/CVS
Pharmacy, Inc., and opioid manufacturers Teva Pharmaceutical Industries Ltd. and
Allergan Finance, LLC/Allergan Limited; and elect to receive payments directly.
Attachments: Sample CA Allocation Agreement
Sample Participation Agreement
Resolution No. 7491
1
Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Distributor Settlement
1. Introduction
Pursuant to the Distributor Settlement Agreement, dated as of July 21, 2021, and any revision
thereto (the “Distributor Settlement Agreement”), including Section V and Exhibit O, the State
of California proposes this agreement (the “CA Distributor Allocation Agreement”) to govern
the allocation, distribution, and use of Settlement Fund payments made to California pursuant to
Sections IV and V of the Distributor Settlement Agreement.1 For the avoidance of doubt, this
agreement does not apply to payments made pursuant to Sections IX or X of the Distributor
Settlement Agreement.
Pursuant to Exhibit O, Paragraph 4, of the Distributor Settlement Agreement, acceptance of this
CA Distributor Allocation Agreement is a requirement to be an Initial Participating Subdivision.
2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a
Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or
greater than 10,000. For the avoidance of doubt, eligible CA Participating
Subdivisions are those California subdivisions listed in Exhibit C (excluding
Litigating Special Districts) and/or Exhibit I to the Distributor Settlement Agreement.
b) Janssen Settlement Agreement means the Janssen Settlement Agreement dated July
21, 2021, and any revision thereto.
c) Litigating Special District means a school district, fire protection district, health
authority, health plan, or other special district that has filed a lawsuit against an
Opioid Defendant. Litigating Special Districts include Downey Unified School
District, Elk Grove Unified School District, Kern High School District, Montezuma
Fire Protection District (located in Stockton, California), Santa Barbara San Luis
Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San
Joaquin, and LA Care Health Plan.
d) Plaintiff Subdivision means a Subdivision located in California, other than a
Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or
through an official of the Subdivision on behalf of the People of the State of
California, against one or more Opioid Defendants prior to October 1, 2020.
1 A parallel but separate agreement (the “CA Janssen Allocation Agreement”) will govern the
allocation, distribution, and use of settlement fund payments under the Janssen Settlement
Agreement. An eligible Subdivision may elect to participate in either the Distributor Settlement
or the Janssen Settlement, or in both.
2
e) Opioid Defendant means any defendant (including but not limited to Johnson &
Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc.,
AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit
seeking damages, abatement, or other remedies related to or caused by the opioid
public health crisis in any lawsuit brought by any state or local government on or
before October 1, 2020.
3. General Terms
This agreement is subject to the requirements of the Distributor Settlement Agreement, as well as
applicable law, and the Distributor Settlement Agreement governs over any inconsistent
provision of this CA Distributor Allocation Agreement. Terms used in this CA Distributor
Allocation Agreement have the same meaning as in the Distributor Settlement Agreement unless
otherwise defined herein.
Pursuant to Section V(D)(1) of the Distributor Settlement Agreement, (a) all Settlement Fund
payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the
Distributor Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund
payment amounts will be used solely for future Opioid Remediation.
4. State Allocation
The Settlement Fund payments to California,2 pursuant to the Distributor Settlement Agreement,
shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and
15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from
the Settlement Fund shall be combined pursuant to this CA Distributor Allocation Agreement,
and 15% of that total shall be allocated to the State of California (the “State of California
Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts
Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).
A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by
the State for future Opioid Remediation.
B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments will be allocated to the CA
Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be
2 For purposes of clarity, use of the term “California” refers to the geographic territory of
California and the state and its local governments therein. The term “State” or “State of
California” refers to the State of California as a governmental unit.
3
allocated based on the allocation model developed in connection with the proposed
negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as
adjusted to reflect only those cities and counties that are eligible, based on population or
litigation status, to become a CA Participating Subdivision. The percentage from the CA
Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in
Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For
the avoidance of doubt, Litigating Special Districts and California towns, cities, and
counties with a population less than 10,000 are not eligible to receive an allocation of CA
Abatement Accounts Funds.
b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its
Local Allocation share as of the date on which it becomes a Participating Subdivision,
and will receive payments as provided in the Distributor Settlement Agreement.
c) A CA Participating Subdivision that is a city will be allocated its Local Allocation share
as of the date on which it becomes a Participating Subdivision. The Local Allocation
share for a city that is a CA Participating Subdivision will be paid to the county in which
the city is located, rather than to the city, so long as: (a) the county is a CA Participating
Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it
requests direct payment at least 60 days prior to a Payment Date. A Local Allocation
share allocated to a city but paid to a county is not required to be spent exclusively for
abatement activities in that city, but will become part of the county’s share of the CA
Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of
CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA
Abatement Accounts Fund Oversight).
d) A city within a county that is a CA Participating Subdivision may opt in or out of direct
payment at any time, and it may also elect direct payment of only a portion of its share,
with the remainder going to the county, by providing notice to the Settlement Fund
Administrator at least 60 days prior to a Payment Date. For purposes of this CA
Distributor Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San
Jose and Eureka will be deemed to have elected direct payment if they become
Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund
that is attributable to a county or city that is eligible to become a CA Participating
Subdivision, but that has not, as of the date of that payment to the Settlement Fund,
become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered
within five years of receipt and in accordance with the Distributor Settlement Agreement
and this CA Distributor Allocation Agreement shall be transferred to the State; provided
however, that CA Participating Subdivisions have seven years to expend or encumber CA
Abatement Accounts Funds designated to support capital outlay projects before they must
be transferred to the State. This provision shall not apply to the Cost Reimbursement
Funds, which shall be controlled by Appendix 2.
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ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or
more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to
the Distributor Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA
Participating Subdivision from the Abatement Accounts Fund in each calendar year will
be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities
within the Behavioral Health Continuum Infrastructure Program;
(2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure;
(3) addressing the needs of communities of color and vulnerable populations (including
sheltered and unsheltered homeless populations) that are disproportionately impacted
by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by
providing training and resources to first and early responders (sworn and non-sworn)
and implementing best practices for outreach, diversion and deflection, employability,
restorative justice, and harm reduction; and/or
(5) interventions to prevent drug addiction in vulnerable youth.
c) The California Department of Health Care Services (“DHCS”) may add to this list (but
not delete from it) by designating additional High Impact Abatement Activities. DHCS
will make reasonable efforts to consult with stakeholders, including the CA Participating
Subdivisions, before adding additional High Impact Abatement Activities to this list.
d) For the avoidance of doubt, and subject to the requirements of the Distributor Settlement
Agreement and applicable law, CA Participating Subdivisions may form agreements or
ventures, or otherwise work in collaboration with, federal, state, local, tribal or private
sector entities in pursuing Opioid Remediation activities funded from the CA Abatement
Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for
Opioid Remediation consistent with the Distributor Settlement Agreement and this CA
Distributor Allocation Agreement, a county and any cities or towns within the county
may agree to reallocate their respective shares of the CA Abatement Accounts Funds
among themselves, provided that any direct distribution may only be to a CA
Participating Subdivision and any CA Participating Subdivision must agree to their share
being reallocated.
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iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds
must prepare and file reports annually regarding the use of those funds. DHCS may
regularly review the reports prepared by CA Participating Subdivisions about the use of
CA Abatement Accounts Funds for compliance with the Distributor Settlement
Agreement and this CA Distributor Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement
Accounts Funds is inconsistent with the Distributor Settlement Agreement or this CA
Distributor Allocation Agreement, whether through review of reports or information from
any other sources, DHCS shall send a request to meet and confer with the CA
Participating Subdivision. The parties shall meet and confer in an effort to resolve the
concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the
Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to
meet and confer, unless the parties mutually agree in writing to extend the meet and
confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court
where the State has filed its Consent Judgment to resolve the concern or otherwise
enforce the requirements of the Distributor Settlement Agreement or this CA Distributor
Allocation Agreement. However, in no case shall any audit be conducted, or motion be
brought, as to a specific expenditure of funds, more than five years after the date on
which the expenditure of the funds was reported to DHCS, in accordance with this
agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or
constitutional authority of any state or local agency or official to conduct audits,
investigations, or other oversight activities, or to pursue administrative, civil, or criminal
enforcement actions.
C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA
Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the
Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used,
subject to any limits imposed by the Distributor Settlement Agreement and this CA
Distributor Allocation Agreement, to fund future Opioid Remediation and reimburse past
opioid-related expenses, which may include fees and expenses related to litigation, and to
pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.
6
The CA Subdivision Funds will be allocated as follows:
a) First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s
reasonable fees and expenses in accordance with the procedures and limitations set
forth in Appendix 2 to this document;
b) Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating
Subdivisions that have been awarded Costs, as defined by and in accordance with the
procedures and limitations set forth in Appendix 2 to this document.
c) Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50%
of the total CA Subdivision Fund received in any year pursuant to Appendix 2,
Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating
Subdivisions, in relative proportion to the Local Allocation. These funds shall be used
to fund future opioid-related projects and to reimburse past opioid-related expenses,
which may include fees and expenses related to litigation against any Opioid
Defendant.
D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio,
Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the
National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee
agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its
contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Distributor
Settlement Agreement and, if applicable, the Janssen Settlement Agreement.
A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay
for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”),
pursuant to Exhibit R, section I(R), of the Distributor Settlement Agreement and the MDL Fees
Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total
gross recovery of the Plaintiff Subdivision pursuant to the Distributor Settlement, and if
applicable, the Janssen Settlement, inclusive of contingency fees from the national Attorney Fee
Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses
from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first
seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the
Distributor Settlement Agreement and, if applicable, the Janssen Settlement Agreement. Further,
private counsel may only seek reimbursement for litigation fees and costs that have not
previously been reimbursed through prior settlements or judgments.
To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of
Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California
Office of the Attorney General. The California Office of the Attorney General shall, upon the
request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and
its private counsel if it is in the form of Appendix 3. The California Office of the Attorney
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General will also consider requests from Plaintiff Subdivisions to execute and enter into
agreements presented in other forms.
For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or
enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any
duty or obligation on the State of California or any of its agencies or officers, including without
limitation the Attorney General.
5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the
settlement until those funds are fully expended and for one year thereafter. These reports
will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement
will prepare written reports at least annually regarding the use of those funds, until those
funds are fully expended and for one year thereafter. These reports will also include a
certification that all funds that the CA Participating Subdivision has received through the
settlement have been used in compliance with the Distributor Settlement Agreement and
this CA Distributor Allocation Agreement. The report will be in a form reasonably
determined by DHCS. Prior to specifying the form of the report DHCS will confer with
representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts
Funds will track all deposits and expenditures. Each such subdivision is responsible
solely for the CA Abatement Accounts Funds it receives. A county is not responsible for
oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city
within that county that receives direct payment. Unless otherwise exempt, Subdivisions’
expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will
be subject to the normal budgetary and expenditure process of the Subdivision.
d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and
expenditures, as required by the Distributor Settlement Agreement and this CA
Distributor Allocation Agreement. Among other things, Plaintiff Subdivisions using
monies from the CA Subdivision Fund for purposes that do not qualify as Opioid
Remediation must identify and include in their annual report, the amount and how such
funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation
costs. Pursuant to Section V(B)(2) of the Distributor Settlement Agreement, such
information must also be reported to the Settlement Fund Administrator and the
Distributors.
e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to
discuss the annual report and the Opioid Remediation activities being carried out by the
State and Participating Subdivisions.
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6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court
where the State has filed its Consent Judgment to enforce the requirements of this CA
Distributor Allocation Agreement. Before filing such a motion or action the State will
meet and confer with any CA Participating Subdivision that is the subject of the
anticipated motion or action, and vice versa.
b) Except as provided in the Distributor Settlement Agreement, this CA Distributor
Allocation Agreement is not enforceable by any party other than the State and the CA
Participating Subdivisions. It does not confer any rights or remedies upon, and shall not
be enforceable by, any third party.
c) Except as provided in the CA Distributor Allocation Agreement, if any provision of this
agreement or the application thereof to any person, entity, or circumstance shall, to any
extent, be invalid or unenforceable, the remainder of this agreement, or the application of
such provision to persons, entities, or circumstances other than those as to which it is
invalid or unenforceable, will not be affected thereby, and each other provision of this
agreement will be valid and enforceable to the fullest extent permitted by law.
d) Except as provided in the Distributor Settlement Agreement, this agreement shall be
governed by and interpreted in accordance with the laws of California.
APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights,
releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision
Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and
Use of Settlement Funds—Distributor Settlement, whereas the percentages shown in the Abatement Percentage column should not
change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding
the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local
Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA
Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not
an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions.
Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the
California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision
Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant
to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-
hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision
Percentage.
APPENDIX 1
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853%2.4237952%
City Alameda Alameda 0.069%0.0570162%
City Albany Alameda 0.013%0.0107768%
City Berkeley Alameda 0.152%0.1249656%
City Dublin Alameda 0.033% 0.040%0.0338810%
City Emeryville Alameda 0.023%0.0185765%
City Fremont Alameda 0.108%0.0888576%
City Hayward Alameda 0.117%0.0966218%
City Livermore Alameda 0.054%0.0446740%
City Newark Alameda 0.026%0.0217626%
City Oakland Alameda 0.486% 0.595%0.5055601%
City Piedmont Alameda 0.014%0.0114064%
City Pleasanton Alameda 0.067%0.0554547%
City San Leandro Alameda 0.039%0.0321267%
City Union City Alameda 0.043%0.0352484%
County Amador County Amador 0.226% 0.277%0.2349885%
County Butte County Butte 1.615% 1.975%1.6783178%
City Chico Butte 0.216% 0.264%0.2246499%
City Oroville Butte 0.079%0.0646595%
County Calaveras County Calaveras 0.226% 0.277%0.2351644%
County Colusa County Colusa 0.059%0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571%2.1844585%
City Antioch Contra Costa 0.037%0.0301879%
City Brentwood Contra Costa 0.026%0.0215339%
City Clayton Contra Costa 0.002%0.0018060%
City Concord Contra Costa 0.055%0.0456676%
City Danville Contra Costa 0.010%0.0082255%
City El Cerrito Contra Costa 0.023%0.0189024%
City Hercules Contra Costa 0.010%0.0078273%
1 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006%0.0046030%
City Martinez Contra Costa 0.012%0.0098593%
City Moraga Contra Costa 0.004%0.0031007%
City Oakley Contra Costa 0.010%0.0079416%
City Orinda Contra Costa 0.005%0.0038157%
City Pinole Contra Costa 0.013%0.0110909%
City Pittsburg Contra Costa 0.053%0.0436369%
City Pleasant Hill Contra Costa 0.013%0.0106309%
City Richmond Contra Costa 0.146%0.1201444%
City San Pablo Contra Costa 0.018%0.0148843%
City San Ramon Contra Costa 0.021%0.0176459%
City Walnut Creek Contra Costa 0.026%0.0212132%
County Del Norte County Del Norte 0.114% 0.140%0.1189608%
County El Dorado County El Dorado 0.768% 0.939%0.7980034%
City Placerville El Dorado 0.015%0.0127642%
City South Lake Tahoe El Dorado 0.081%0.0665456%
County Fresno County Fresno 1.895% 2.318%1.9693410%
City Clovis Fresno 0.065%0.0536211%
City Coalinga Fresno 0.012%0.0098554%
City Fresno Fresno 0.397%0.3270605%
City Kerman Fresno 0.005%0.0042534%
City Kingsburg Fresno 0.008%0.0066167%
City Mendota Fresno 0.002%0.0019387%
City Orange Cove Fresno 0.004%0.0035607%
City Parlier Fresno 0.008%0.0069755%
City Reedley Fresno 0.012%0.0098804%
City Sanger Fresno 0.018%0.0146135%
City Selma Fresno 0.015%0.0127537%
County Glenn County Glenn 0.107% 0.131%0.1116978%
County Humboldt County Humboldt 1.030% 1.260%1.0703185%
2 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054%0.0447660%
City Eureka Humboldt 0.117% 0.143%0.1216284%
City Fortuna Humboldt 0.032%0.0266837%
County Imperial County Imperial 0.258% 0.315%0.2679006%
City Brawley Imperial 0.011%0.0087986%
City Calexico Imperial 0.019%0.0152799%
City El Centro Imperial 0.158%0.1302522%
City Imperial Imperial 0.006%0.0048791%
County Inyo County Inyo 0.073% 0.089%0.0754413%
County Kern County Kern 2.517% 3.079%2.6159145%
City Arvin Kern 0.006%0.0046425%
City Bakersfield Kern 0.212%0.1747198%
City California City Kern 0.009%0.0070820%
City Delano Kern 0.030%0.0249316%
City McFarland Kern 0.003%0.0025644%
City Ridgecrest Kern 0.015%0.0120938%
City Shafter Kern 0.013%0.0103417%
City Tehachapi Kern 0.009%0.0073580%
City Wasco Kern 0.008%0.0069861%
County Kings County Kings 0.293%0.2413469%
City Avenal Kings 0.007%0.0056335%
City Corcoran Kings 0.013%0.0107032%
City Hanford Kings 0.027%0.0226038%
City Lemoore Kings 0.016%0.0131900%
County Lake County Lake 0.795%0.6545389%
City Clearlake Lake 0.041% 0.050%0.0426253%
City Lakeport Lake 0.021% 0.026%0.0222964%
County Lassen County Lassen 0.319% 0.391%0.3320610%
City Susanville Lassen 0.027%0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999%14.4437559%
3 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005%0.0040024%
City Alhambra Los Angeles 0.042%0.0343309%
City Arcadia Los Angeles 0.033%0.0267718%
City Artesia Los Angeles 0.001%0.0005100%
City Azusa Los Angeles 0.026%0.0210857%
City Baldwin Park Los Angeles 0.027%0.0218520%
City Bell Los Angeles 0.008%0.0068783%
City Bellflower Los Angeles 0.002%0.0014485%
City Bell Gardens Los Angeles 0.014%0.0114301%
City Beverly Hills Los Angeles 0.065%0.0534897%
City Burbank Los Angeles 0.100%0.0823132%
City Calabasas Los Angeles 0.006%0.0048948%
City Carson Los Angeles 0.019%0.0159805%
City Cerritos Los Angeles 0.005%0.0039682%
City Claremont Los Angeles 0.010%0.0082584%
City Commerce Los Angeles 0.000%0.0002971%
City Compton Los Angeles 0.044%0.0361882%
City Covina Los Angeles 0.028%0.0229127%
City Cudahy Los Angeles 0.001%0.0006020%
City Culver City Los Angeles 0.055%0.0449894%
City Diamond Bar Los Angeles 0.001%0.0006993%
City Downey Los Angeles 0.052%0.0429994%
City Duarte Los Angeles 0.003%0.0027261%
City El Monte Los Angeles 0.031% 0.038%0.0318985%
City El Segundo Los Angeles 0.033%0.0268020%
City Gardena Los Angeles 0.034%0.0278088%
City Glendale Los Angeles 0.166%0.1366586%
City Glendora Los Angeles 0.016%0.0134411%
City Hawaiian Gardens Los Angeles 0.005%0.0040549%
City Hawthorne Los Angeles 0.050%0.0407833%
4 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018%0.0145307%
City Huntington Park Los Angeles 0.023%0.0190667%
City Inglewood Los Angeles 0.059%0.0489195%
City La Cañada Flintridge Los Angeles 0.003%0.0025565%
City Lakewood Los Angeles 0.005%0.0039971%
City La Mirada Los Angeles 0.010%0.0081572%
City Lancaster Los Angeles 0.045%0.0369689%
City La Puente Los Angeles 0.002%0.0012999%
City La Verne Los Angeles 0.024%0.0194190%
City Lawndale Los Angeles 0.002%0.0017731%
City Lomita Los Angeles 0.004%0.0031940%
City Long Beach Los Angeles 0.439%0.3614151%
City Los Angeles Los Angeles 2.715% 3.321%2.8218811%
City Lynwood Los Angeles 0.016%0.0134345%
City Malibu Los Angeles 0.002%0.0019269%
City Manhattan Beach Los Angeles 0.032%0.0260686%
City Maywood Los Angeles 0.004%0.0035528%
City Monrovia Los Angeles 0.031%0.0254455%
City Montebello Los Angeles 0.030%0.0250670%
City Monterey Park Los Angeles 0.031%0.0256677%
City Norwalk Los Angeles 0.031%0.0258228%
City Palmdale Los Angeles 0.046%0.0375827%
City Palos Verdes Estates Los Angeles 0.006%0.0053102%
City Paramount Los Angeles 0.011%0.0091483%
City Pasadena Los Angeles 0.146%0.1200524%
City Pico Rivera Los Angeles 0.022%0.0183333%
City Pomona Los Angeles 0.111%0.0911933%
City Rancho Palos Verdes Los Angeles 0.002%0.0012645%
City Redondo Beach Los Angeles 0.062%0.0506992%
City Rosemead Los Angeles 0.003%0.0028260%
5 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003%0.0022016%
City San Fernando Los Angeles 0.013%0.0104837%
City San Gabriel Los Angeles 0.018%0.0147726%
City San Marino Los Angeles 0.009%0.0073791%
City Santa Clarita Los Angeles 0.022%0.0178167%
City Santa Fe Springs Los Angeles 0.031%0.0257531%
City Santa Monica Los Angeles 0.158%0.1298513%
City Sierra Madre Los Angeles 0.006%0.0048646%
City Signal Hill Los Angeles 0.010%0.0084884%
City South El Monte Los Angeles 0.005%0.0039603%
City South Gate Los Angeles 0.020%0.0166272%
City South Pasadena Los Angeles 0.012%0.0095334%
City Temple City Los Angeles 0.005%0.0039498%
City Torrance Los Angeles 0.112%0.0919820%
City Walnut Los Angeles 0.006%0.0047305%
City West Covina Los Angeles 0.049%0.0404521%
City West Hollywood Los Angeles 0.013%0.0108517%
City Whittier Los Angeles 0.032%0.0260581%
County Madera County Madera 0.349% 0.427%0.3630669%
City Chowchilla Madera 0.012%0.0097332%
City Madera Madera 0.039%0.0318441%
County Marin County Marin 0.564% 0.690%0.5861325%
City Larkspur Marin 0.015%0.0124697%
City Mill Valley Marin 0.020%0.0168401%
City Novato Marin 0.028%0.0229824%
City San Anselmo Marin 0.009%0.0078062%
City San Rafael Marin 0.089%0.0729823%
County Mariposa County Mariposa 0.084% 0.103%0.0876131%
County Mendocino County Mendocino 0.439% 0.536%0.4558394%
City Ukiah Mendocino 0.039%0.0317153%
6 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674%0.5724262%
City Atwater Merced 0.024%0.0195846%
City Livingston Merced 0.006%0.0045873%
City Los Banos Merced 0.020%0.0165142%
City Merced Merced 0.061%0.0500762%
County Modoc County Modoc 0.065% 0.080%0.0678250%
County Mono County Mono 0.023% 0.029%0.0242606%
County Monterey County Monterey 0.908% 1.111%0.9437083%
City Greenfield Monterey 0.006%0.0050552%
City King City Monterey 0.005%0.0037355%
City Marina Monterey 0.017%0.0144098%
City Monterey Monterey 0.041%0.0336540%
City Pacific Grove Monterey 0.009%0.0074842%
City Salinas Monterey 0.094%0.0776576%
City Seaside Monterey 0.023%0.0191772%
City Soledad Monterey 0.007%0.0060870%
County Napa County Napa 0.288% 0.352%0.2994325%
City American Canyon Napa 0.017%0.0136869%
City Napa Napa 0.078%0.0642783%
County Nevada County Nevada 0.441% 0.539%0.4579827%
City Grass Valley Nevada 0.024%0.0197805%
City Truckee Nevada 0.003%0.0023843%
County Orange County Orange 4.364% 5.339%4.5363576%
City Aliso Viejo Orange 0.014%0.0113841%
City Anaheim Orange 0.554% 0.678%0.5759282%
City Brea Orange 0.086%0.0708897%
City Buena Park Orange 0.087%0.0714352%
City Costa Mesa Orange 0.124% 0.152%0.1288366%
City Cypress Orange 0.033%0.0271937%
City Dana Point Orange 0.001%0.0005560%
7 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055%0.0455980%
City Fullerton Orange 0.137% 0.168%0.1425744%
City Garden Grove Orange 0.213%0.1752482%
City Huntington Beach Orange 0.247% 0.302%0.2568420%
City Irvine Orange 0.139% 0.170%0.1442350%
City Laguna Beach Orange 0.047% 0.058%0.0493043%
City Laguna Hills Orange 0.014%0.0115457%
City Laguna Niguel Orange 0.001%0.0007071%
City Laguna Woods Orange 0.001%0.0006546%
City La Habra Orange 0.060% 0.073%0.0621049%
City Lake Forest Orange 0.012%0.0101249%
City La Palma Orange 0.012%0.0095439%
City Los Alamitos Orange 0.008%0.0069190%
City Mission Viejo Orange 0.014%0.0117560%
City Newport Beach Orange 0.179%0.1470134%
City Orange Orange 0.150%0.1231320%
City Placentia Orange 0.029% 0.035%0.0298912%
City Rancho Santa Margarita Orange 0.001%0.0006296%
City San Clemente Orange 0.008% 0.010%0.0086083%
City San Juan Capistrano Orange 0.008%0.0065510%
City Santa Ana Orange 0.502% 0.614%0.5213866%
City Seal Beach Orange 0.020%0.0165891%
City Stanton Orange 0.035%0.0291955%
City Tustin Orange 0.073%0.0600341%
City Westminster Orange 0.104% 0.127%0.1082721%
City Yorba Linda Orange 0.044%0.0362223%
County Placer County Placer 1.045% 1.278%1.0861002%
City Auburn Placer 0.017%0.0141114%
City Lincoln Placer 0.031%0.0255599%
City Rocklin Placer 0.076%0.0625485%
8 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196%0.1616559%
County Plumas County Plumas 0.205% 0.251%0.2128729%
County Riverside County Riverside 4.534% 5.547%4.7128296%
City Banning Riverside 0.017%0.0143848%
City Beaumont Riverside 0.021%0.0171135%
City Blythe Riverside 0.012%0.0096714%
City Canyon Lake Riverside 0.000%0.0001761%
City Cathedral City Riverside 0.067%0.0553614%
City Coachella Riverside 0.021%0.0173054%
City Corona Riverside 0.147%0.1207083%
City Desert Hot Springs Riverside 0.024%0.0200433%
City Eastvale Riverside 0.000%0.0002747%
City Hemet Riverside 0.051%0.0421792%
City Indio Riverside 0.056%0.0457794%
City Jurupa Valley Riverside 0.001%0.0008991%
City Lake Elsinore Riverside 0.021%0.0172949%
City La Quinta Riverside 0.063%0.0516732%
City Menifee Riverside 0.032%0.0260909%
City Moreno Valley Riverside 0.137%0.1130348%
City Murrieta Riverside 0.048% 0.059%0.0497423%
City Norco Riverside 0.016%0.0134542%
City Palm Desert Riverside 0.083%0.0682465%
City Palm Springs Riverside 0.076%0.0629862%
City Perris Riverside 0.009%0.0076774%
City Rancho Mirage Riverside 0.052%0.0431098%
City Riverside Riverside 0.268%0.2206279%
City San Jacinto Riverside 0.010%0.0085936%
City Temecula Riverside 0.022%0.0180086%
City Wildomar Riverside 0.008%0.0062500%
County Sacramento County Sacramento 3.797% 4.645%3.9465887%
9 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057%0.0465312%
City Elk Grove Sacramento 0.130%0.1066994%
City Folsom Sacramento 0.108%0.0890850%
City Galt Sacramento 0.017%0.0143704%
City Rancho Cordova Sacramento 0.008%0.0067679%
City Sacramento Sacramento 0.721% 0.882%0.7496530%
County San Benito County San Benito 0.106% 0.130%0.1101417%
City Hollister San Benito 0.027%0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987%3.3878124%
City Adelanto San Bernardino 0.008%0.0066640%
City Apple Valley San Bernardino 0.025%0.0207360%
City Barstow San Bernardino 0.015%0.0122056%
City Chino San Bernardino 0.064%0.0525893%
City Chino Hills San Bernardino 0.001%0.0006388%
City Colton San Bernardino 0.031%0.0253443%
City Fontana San Bernardino 0.112%0.0920543%
City Grand Terrace San Bernardino 0.006%0.0051051%
City Hesperia San Bernardino 0.035%0.0291522%
City Highland San Bernardino 0.004%0.0029061%
City Loma Linda San Bernardino 0.009%0.0071188%
City Montclair San Bernardino 0.039%0.0322108%
City Ontario San Bernardino 0.179%0.1472934%
City Rancho Cucamonga San Bernardino 0.084%0.0689431%
City Redlands San Bernardino 0.057%0.0469150%
City Rialto San Bernardino 0.073%0.0603206%
City San Bernardino San Bernardino 0.178%0.1461880%
City Twentynine Palms San Bernardino 0.002%0.0012605%
City Upland San Bernardino 0.052%0.0424460%
City Victorville San Bernardino 0.033%0.0269400%
City Yucaipa San Bernardino 0.016%0.0128772%
10 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003%0.0021228%
County San Diego County San Diego 5.706% 6.980%5.9309748%
City Carlsbad San Diego 0.128%0.1050485%
City Chula Vista San Diego 0.189% 0.231%0.1961456%
City Coronado San Diego 0.044%0.0359095%
City El Cajon San Diego 0.113%0.0933582%
City Encinitas San Diego 0.061% 0.074%0.0630289%
City Escondido San Diego 0.145%0.1192204%
City Imperial Beach San Diego 0.014%0.0118283%
City La Mesa San Diego 0.055% 0.068%0.0575593%
City Lemon Grove San Diego 0.022%0.0183911%
City National City San Diego 0.080%0.0656808%
City Oceanside San Diego 0.213%0.1753428%
City Poway San Diego 0.062%0.0511040%
City San Diego San Diego 1.975% 2.416%2.0531169%
City San Marcos San Diego 0.089%0.0733897%
City Santee San Diego 0.033%0.0268401%
City Solana Beach San Diego 0.017%0.0138564%
City Vista San Diego 0.052%0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702%3.1457169%
County San Joaquin County San Joaquin 1.680% 2.055%1.7460399%
City Lathrop San Joaquin 0.009%0.0075394%
City Lodi San Joaquin 0.053%0.0439484%
City Manteca San Joaquin 0.054%0.0443454%
City Ripon San Joaquin 0.013%0.0104219%
City Stockton San Joaquin 0.313% 0.383%0.3256176%
City Tracy San Joaquin 0.084%0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999%0.8484126%
City Arroyo Grande San Luis Obispo 0.024%0.0199053%
City Atascadero San Luis Obispo 0.029%0.0240680%
11 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043%0.0353456%
City Grover Beach San Luis Obispo 0.017%0.0137881%
City Morro Bay San Luis Obispo 0.020%0.0160922%
City San Luis Obispo San Luis Obispo 0.077%0.0637841%
County San Mateo County San Mateo 1.074% 1.313%1.1159599%
City Belmont San Mateo 0.021%0.0169860%
City Burlingame San Mateo 0.019%0.0152537%
City Daly City San Mateo 0.044%0.0363880%
City East Palo Alto San Mateo 0.013%0.0103982%
City Foster City San Mateo 0.020%0.0166101%
City Half Moon Bay San Mateo 0.004%0.0031638%
City Hillsborough San Mateo 0.013%0.0110029%
City Menlo Park San Mateo 0.015%0.0126209%
City Millbrae San Mateo 0.013%0.0105836%
City Pacifica San Mateo 0.016%0.0130625%
City Redwood City San Mateo 0.056%0.0463511%
City San Bruno San Mateo 0.021%0.0172161%
City San Carlos San Mateo 0.013%0.0108885%
City San Mateo San Mateo 0.052%0.0425841%
City South San Francisco San Mateo 0.043%0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385%1.1768968%
City Carpinteria Santa Barbara 0.001%0.0008938%
City Goleta Santa Barbara 0.004%0.0028969%
City Lompoc Santa Barbara 0.047%0.0389379%
City Santa Barbara Santa Barbara 0.122%0.1004559%
City Santa Maria Santa Barbara 0.058%0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941%2.4987553%
City Campbell Santa Clara 0.014%0.0112566%
City Cupertino Santa Clara 0.008%0.0066824%
City Gilroy Santa Clara 0.025%0.0202891%
12 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013%0.0103338%
City Los Gatos Santa Clara 0.013%0.0103220%
City Milpitas Santa Clara 0.036%0.0298120%
City Morgan Hill Santa Clara 0.015%0.0124619%
City Mountain View Santa Clara 0.041%0.0334608%
City Palo Alto Santa Clara 0.039%0.0323080%
City San Jose Santa Clara 0.294% 0.360%0.3054960%
City Santa Clara Santa Clara 0.067%0.0549723%
City Saratoga Santa Clara 0.004%0.0034161%
City Sunnyvale Santa Clara 0.053%0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957%0.8135396%
City Capitola Santa Cruz 0.020%0.0168191%
City Santa Cruz Santa Cruz 0.143%0.1180348%
City Scotts Valley Santa Cruz 0.015%0.0126525%
City Watsonville Santa Cruz 0.063%0.0520136%
County Shasta County Shasta 1.095% 1.339%1.1380191%
City Anderson Shasta 0.024%0.0198896%
City Redding Shasta 0.284%0.2334841%
City Shasta Lake Shasta 0.004%0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279%0.2373393%
County Solano County Solano 0.760%0.6260795%
City Benicia Solano 0.031%0.0253903%
City Dixon Solano 0.016%0.0130849%
City Fairfield Solano 0.109%0.0897317%
City Suisun City Solano 0.021%0.0176183%
City Vacaville Solano 0.119%0.0976497%
City Vallejo Solano 0.167%0.1373644%
County Sonoma County Sonoma 1.218% 1.490%1.2661290%
City Healdsburg Sonoma 0.032%0.0266929%
City Petaluma Sonoma 0.081%0.0667507%
13 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041%0.0340759%
City Santa Rosa Sonoma 0.184%0.1519070%
City Sonoma Sonoma 0.022%0.0183438%
City Windsor Sonoma 0.016%0.0129298%
County Stanislaus County Stanislaus 1.722%1.4182273%
City Ceres Stanislaus 0.041%0.0340260%
City Modesto Stanislaus 0.217%0.1788759%
City Newman Stanislaus 0.006%0.0046964%
City Oakdale Stanislaus 0.018%0.0145531%
City Patterson Stanislaus 0.015%0.0126590%
City Riverbank Stanislaus 0.010%0.0085699%
City Turlock Stanislaus 0.065%0.0531966%
County Sutter County Sutter 0.306% 0.374%0.3179548%
City Yuba City Sutter 0.074%0.0606242%
County Tehama County Tehama 0.213% 0.261%0.2216654%
City Red Bluff Tehama 0.014%0.0117771%
County Trinity County Trinity 0.082% 0.101%0.0855476%
County Tulare County Tulare 0.809% 0.990%0.8410949%
City Dinuba Tulare 0.014%0.0116929%
City Exeter Tulare 0.004%0.0032479%
City Farmersville Tulare 0.003%0.0027879%
City Lindsay Tulare 0.007%0.0057111%
City Porterville Tulare 0.021%0.0171845%
City Tulare Tulare 0.037%0.0302273%
City Visalia Tulare 0.066%0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594%0.5047621%
County Ventura County Ventura 2.192% 2.681%2.2781201%
City Camarillo Ventura 0.002%0.0012815%
City Fillmore Ventura 0.002%0.0020294%
City Moorpark Ventura 0.008%0.0067337%
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APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190%0.1617338%
City Port Hueneme Ventura 0.021%0.0174145%
City San Buenaventura (Ventura) Ventura 0.085%0.0702181%
City Santa Paula Ventura 0.014%0.0119072%
City Simi Valley Ventura 0.065%0.0533043%
City Thousand Oaks Ventura 0.022%0.0179902%
County Yolo County Yolo 0.357% 0.437%0.3713319%
City Davis Yolo 0.055%0.0451747%
City West Sacramento Yolo 0.066%0.0544321%
City Woodland Yolo 0.058%0.0477904%
County Yuba County Yuba 0.214% 0.262%0.2225679%
City Marysville Yuba 0.014%0.0112079%
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APPENDIX 2
Cost Reimbursement Procedure
1. Additional defined terms:
a) Costs means the reasonable amounts paid for the attorney and other City Attorney and
County Counsel staff time for individuals employed by a Plaintiff Subdivision at the
contractual rate, inclusive of benefits and overhead, together with amounts paid for court
reporters, experts, copying, electronic research, travel, vendors, and the like, which were
paid or incurred (i) prior to July 21, 2021 in litigation against any Opioid Defendant
and/or (ii) in negotiating and drafting this CA Distributor Allocation Agreement. Costs
does not include attorneys’ fees, costs, or expenses incurred by private contingency fee
counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs.
b) First Claims Date means October 1, 2023 or when all applications for reimbursement of
Costs, in whole or in part, from funds available under Section X and Exhibit R of the
Distributor Settlement Agreement or Section XI and Exhibit R of the Janssen Settlement
Agreement, have been finally determined under the provisions of those agreements,
whichever comes first.
c) Special Master means a retired judicial officer or former public lawyer, not presently
employed or retained by a Plaintiff Subdivision, who will aggregate, review, and
determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a
claim for reimbursement of Costs. The Special Master will be selected by a majority vote
of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote.
d) Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will
review and approve the invoices submitted by the Special Master reflecting his or her
reasonable time and expenses.
2. Cost Reimbursement to Plaintiff Subdivision
a) Purpose. Substantial resources have been expended to hold Opioid Defendants
accountable for creating and profiting from the opioid crisis, and this effort has been a
significant catalyst in creating a National Opioid Settlement with Distributors, Johnson &
Johnson, and others.
b) Claims Procedure.
i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in
part, from funds available under Section X or Exhibit R of the Distributor
Settlement Agreement or Section XI or Exhibit R of the Janssen Settlement
Agreement, it must first make a timely application for reimbursement from such
funds. To allow sufficient time for determination of those applications, no claim for
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Costs to the CA Subdivision Fund under this Agreement may be made before the
First Claims Date.
ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund
must submit a claim to the Special Master no later than forty-five (45) days after the
First Claims Date. The Special Master will then compile and redistribute the
aggregated claim totals for each Plaintiff Subdivision via email to representatives of
all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each
attorney or staff member included in the claim, the following information: name,
title, total hours claimed, hourly rate (including, if sought, benefits and share of
overhead), and narrative summarizing the general nature of the work performed by
the attorney or staff member. For reimbursement of “hard” costs, the subdivision
may aggregate across a category (e.g., total for travel costs). It is the intention of the
Plaintiff Subdivisions that submission of documents related to reimbursement of
Costs does not waive any attorney-client privilege or exemptions to the California
Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or
details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each
Plaintiff Subdivision of the final determination of its claim, and will provide a list of
all final awards to all Plaintiff Subdivisions by email or, upon request, via First
Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider
any final award within twenty-one (21) days. The Special Master will make a final
determination on any such reconsideration request within thirty (30) days of receipt.
v. Any decision of the Special Master is final and binding, and will be considered
under the California Arbitration Act, Code of Civil Procedure section 1280 et seq.
as a final arbitration award. Nothing in this agreement is intended to expand the
scope of judicial review of the final award for errors of fact or law, and the Parties
agree that they may only seek to vacate the award if clear and convincing evidence
demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2,
subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final
awards are made, together with any final determination of a request for
reconsideration, to seek review in the Superior Court of California, pursuant to Code
of Civil Procedure, section 1285, where the State has filed its Consent Judgment.
vi. The Special Master will prepare a report of Costs that includes his or her fees and
expenses at least ninety (90) days before the Payment Date for each Annual
Payment. The Special Master’s preparation of a report of Costs does not discharge a
Plaintiff Subdivision’s reporting requirement under Section V.B.2 of the Distributor
Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating
Subdivision, will submit to the Settlement Fund Administrator and the Distributors a
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report of the fees and expenses incurred by the Special Master pursuant to Section
V.B.2 of the Distributor Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and
expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior
to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee
will promptly review and, if reasonable, approve the Special Master’s invoice for
compensation. The Plaintiff Subdivision Committee will submit approved invoices
to the Settlement Fund Administrator for payment. The Special Master’s approved
invoices have priority and will be paid first from the CA Subdivision Fund before
any award of Costs, subject to the limitation in Section 2.c.v below.
ii. Final Awards of Costs that do not exceed seventy-five thousand dollars
($75,000.00) will be paid next in priority after the Special Master’s approved
invoices.
iii. Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will
be paid proportionally from the funds remaining in that year’s Annual Payment.
iv. Any claim for Costs that is not paid in full will be allocated against the next year’s
distribution from the CA Subdivision Fund, until all approved claims for Costs are
paid in full.
v. In no event will more than 50% of the total CA Subdivision Fund received in any
year be used to pay Costs or the Special Master’s approved invoices.
vi. In no event shall more than $28 million of the total CA Subdivision Funds paid
pursuant to the Distributor Settlement Agreement and the Janssen Settlement
Agreement be used to pay Costs.
d) Collateral Source Payments and Third-Party Settlement.
i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by
any source of funds created as a result of litigation against an Opioid Defendant for
its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision
Fund by that amount. If a Plaintiff Subdivision has already received a final award of
Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of
Costs via a payment to the Settlement Fund Administrator or notify the Settlement
Fund Administrator that its allocation from the next and subsequent Annual
Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying
any prior award of Costs, that repayment will occur as soon as is feasible after the
Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more
than 90 days after its receipt from the collateral source. The Settlement Fund
Administrator will add any repaid Costs to the CA Subdivision Fund.
4
ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise
against any Opioid Defendant outside of the National Opioid Settlement, the
monetary portion of such settlement, net of fees paid to outside contingency fee
counsel and of funds earmarked strictly for abatement, will be credited against its
Costs and the subdivision will be ineligible to recover those credited Costs from the
CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or
compromises against any Opioid Defendant outside of the National Opioid
Settlement will negotiate for funds to repay any Costs it previously received from
the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from
the CA Subdivision Fund. If such a settlement is paid after all final approved claims
for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision
will reimburse the CA Subdivision Fund in that amount by making payment to the
Settlement Fund Administrator to add to the CA Subdivision Fund in a manner
consistent with the repayments described in section 2.d.i above.