HomeMy WebLinkAboutItem 5n. Approve the City's participation in National Opioid Litigation Settlement Agreements Item 5n
Department: Attorney
Cost Center: 1501
For Agenda of: 12/7/2021
Placement: Consent
Estimated Time: N/A
FROM: Christine Dietrick, City Attorney
Prepared By: Mark Amberg, Assistant City Attorney
SUBJECT: APPROVE PARTICIPATION IN NATIONAL OPIOID LITIGATION
SETTLEMENT AGREEMENTS
RECOMMENDATION
1. Approve City participation in the nationally negotiated opioid related settlement
agreements with pharmaceutical distributors, McKesson, Cardinal Health and
AmerisourceBergen (“Distributors”), and with manufacturer Janssen Pharmaceuticals,
Inc. and its parent company Johnson & Johnson (“Janssen”).
2. Authorize the City Manager and City Attorney to execute documents as needed to
participate in the settlement agreements.
DISCUSSION
Background
After years of negotiations, two proposed settlement agreements have been reached that
would resolve opioid litigation that has been brought by numerous states and political
subdivisions against the three largest pharmaceutical distributors, McKesson, Cardinal
Health and AmerisourceBergen (“Distributors”), and one manufacturer, Janssen
Pharmaceuticals, Inc. and its parent company Johnson & Johnson (“Janssen”) over the
impacts of opioid use, abuse, and addiction.
The proposed settlements require the Distributors and Janssen to pay billions of dollars
to help abate the opioid epidemic. Overall, the Distributors will pay $21 billion over 18
years, Janssen will pay up to $5 billion over no more than 9 years.
Each of the proposed settlements has two key participation steps. First, each state must
decide whether to participate. California elected to participate in July 2021. Second, each
city and county within the state must decide whether to participate in the settlem ent
agreements entered into by California by no later than January 2, 2022. There is an
agreed upon formula to calculate the percentage of funds to be distributed to the State
and local participating jurisdictions but, generally, the more subdivisions that participate,
the greater amount of the settlement funds will flow to California and its participating local
jurisdictions. Any subdivision that does not participate cannot directly share in any of the
settlement funds.
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Item 5n
If the City elects to participate, the City can later decide whether to receive its share of
allocated funds under the settlement agreements directly or have its share of funds
default to San Luis Obispo County. That decision does not need to be made now (that
decision will need to be made by spring of 2022). The only decision the City needs to
make now is whether to participate in the settlement agreements.
If the City does not elect to participate by January 2, 2022, it will be precluded from
participation in the agreements, will not receive any of the allocated settlement funds and
will be left with the option to individually pursue litigation against the pharmaceutical
distributors and manufacturer. The latter option would be burdensome, costly, risky and
demanding of resources vastly disproportionate to the City’s likely ability to prevail in
individual litigation against the various defendants. Accordingly, staff is recommending
the City Council authorize participation in the existing settlement.
A Notice to Local California Political Subdivisions that provides more of an overview of
the settlements and participation by local jurisdictions is attached as Attachment A. The
National Settlement Agreements with the Distributors and Janssen have been made part
of the Council Reading file. The State of California Participation Agreements (Distributors
and Janssen) are attached as Attachments B and C.
Policy Context
Participating in the settlement agreement will provide substantial funding to be used to
address opioid abuse, addiction and other opioid related issues and may assist the City
in advancing City objectives consistent with the City’s Economic Recovery, Resiliency
and Fiscal Sustainability, Diversity, Equity and Inclusion and Housing and Homelessness
Major City Goals.
Public Engagement
None. Not applicable since this involves a settlement of litigation to which the City was
not a direct party.
CONCURRENCE
The Police and Fire Chief, Community Development and City Administration Departments
concur in the recommendations.
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Item 5n
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in
this report, because the action does not constitute a “Project” under CEQA Guidelines
Section 15378.
FISCAL IMPACT
While the City’s share cannot exactly be determined, it is estimated that, if the City
participates, it would receive approximately $950,000, spread over 18 years, under the
Distributor Agreement and approximately $225,000, spread over 7 to 9 years, under the
Janssen Agreement (the final amounts will be determined by the percentage of local
jurisdictions that elect to participate in the agreements).
Budgeted: No Budget Years: 2023 through 2041
Funding Identified: NA. Settlement agreement would be providing funds to the City, not
requiring funds be paid out.
ALTERNATIVES
Don’t approve the City’s participation in the settlement agreements and preserve the
City’s option to pursue litigation against the pharmaceutical distributors and manufacturer
without receiving any funds from the settlement agreements. Staff does not recommend
this option for reasons set forth above.
ATTACHMENTS
A. Notice to Local Political Subdivisions re Participation in National Opioid Settlement
Agreements
B. California Participation Agreement (Distributors)
C. California Participation Agreement (Janssen)
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White, Kelly
From:National Opioids Settlement <no-reply@e.nationalopioidsettlement.com>
Sent:Tuesday, November 2, 2021 3:03 PM
To:Dietrick, Christine
Subject:National Opioids Settlement Notice
This message is from an External Source. Use caution when deciding to open attachments, click links, or respond.
NPD DB-826-389
Christine Dietrick City Attorney
TO LOCAL POLITICAL SUBDIVISIONS:
IMPORTANT INFORMATION ABOUT THE NATIONAL OPIOID SETTLEMENT.
SUBDIVISIONS MUST SUBMIT SIGNED DOCUMENTATION TO PARTICIPATE.
THE DEADLINE FOR PARTICIPATION TO MAXIMIZE SETTLEMENT BENEFITS IS
JANUARY 2, 2022.
If your subdivision is represented by an attorney with respect to opioid claims, please
immediately contact them.
SETTLEMENT OVERVIEW
After years of negotiations, two proposed nationwide settlement agreements (“Settlements”) have been
reached that would resolve all opioid litigation brought by states and local political subdivisions against
the three largest pharmaceutical distributors, McKesson, Cardinal Health and AmerisourceBergen
(“Distributors”), and one manufacturer, Janssen Pharmaceuticals, Inc., and its parent company
Johnson & Johnson (collectively, “Janssen”).
The proposed Settlements require the Distributors and Janssen to pay billions of dollars to abate the
opioid epidemic. Specifically, the Settlements require the Distributors to pay up to $21 billion over 18
years and Janssen to pay up to $5 billion over no more than 9 years, for a total of $26 billion (the
“Settlement Amount”). Of the Settlement Amount, approximately $22.7 billion is earmarked for use by
participating states and subdivisions to remediate and abate the impacts of the opioid crisis.
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The Settlements also contain injunctive relief provisions governing the opioid marketing, sale and
distribution practices at the heart of the states’ and subdivisions’ lawsuits and further require the
Distributors to implement additional safeguards to prevent diversion of prescription opioids.
Each of the proposed Settlements has two key participation steps. First, each state decides whether to
participate in the Settlements. California has joined both Settlements. Second, the subdivisions within
each participating state must then decide whether to participate in the Settlement s. Generally, the more
subdivisions that participate, the greater the amount of funds that flow to that state and its participating
subdivisions. Any subdivision that does not participate cannot directly share in any of the settlement
funds, even if the subdivision’s state is settling and other participating subdivisions are sharing in
settlement funds.
This letter is part of the formal notice required by the Settlements.
WHY IS YOUR SUBDIVISION RECEIVING THIS NOTICE?
You are receiving this letter because California has elected to participate in both of the two national
Settlements against (1) the Distributors, and (2) Janssen, and your subdivision may participate in the
Settlements. This notice is being sent directly to subdivisions and also to attorn eys for subdivisions that
we understand are litigating against these companies. If you are represented by an attorney with
respect to opioid claims, please immediately contact them. Please note that there is no need for
subdivisions to be represented by an attorney or to have filed a lawsuit to participate in the
Settlements.
WHERE CAN YOU FIND MORE INFORMATION?
This letter is intended to provide a brief overview of the Settlements. Detailed information about the
Settlements may be found at: https://nationalopioidsettlement.com/. This national Settlement website
also includes links to information about how the Settlements are being implemented in your state and
how settlement funds will be allocated within your state. This website will be supplemented as
additional documents are created. The California Attorney General’s Office has also set up a state-
specific website, which may be found at: https://oag.ca.gov/opioids.
HOW DO YOU PARTICIPATE IN THE SETTLEMENTS?
You must go to the national settlement website to register to receive in the coming weeks and
months the documentation your subdivision will need to participate in the Settlements (if your
subdivision is eligible). All required documentation must be executed and submitted
electronically through the website and must be executed using the “DocuSign” service. As part
of the registration process, your subdivision will need to identify, and provide the email address for, the
individual who will be authorized to sign formal and binding documents on behalf of your subdivision.
Your unique Subdivision Registration Code to use to register is: XGMF62.
HOW WILL SETTLEMENT FUNDS BE ALLOCATED IN EACH STATE?
The settlement funds are first divided among the participating states according to a formula developed
by the Attorneys General that considers population and the severity of harm caused by the opioid
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epidemic in each participating state. Each state’s share of the abatement funds is then further allocated
within each state according to agreement between the state and its subdivisions, applicable state
allocation legislation, or, in the absence of these, the default provisions in the agreements.
Many states have or are in the process of reaching an agreement on how to allocate abatement funds
within the states. California’s proposed state-subdivision allocation agreement will be posted as soon
as it is available on the national settlement website and at https://oag.ca.gov/opioids.
In reviewing allocation information, please note that while all subdivisions may participate in the
Settlement, not all subdivisions are eligible to receive direct payments. To promote efficiency in the use
of abatement funds and avoid administratively burdensome disbursements that would be too small to
add a meaningful abatement response, certain smaller subdivisions do not automatically receive a
direct allocation. However, participation by such subdivisions will help maximize the amount of
abatement funds being paid in the Settlements, including those going to counties, cities, parishes, and
other larger subdivisions in their communities.
To determine your eligibility to receive, directly or indirectly, any of the funds allocated to your state
should you elect to participate in the Settlements in which your state participates, you should first visit
https://nationalopioidsettlement.com/ to determine if your state has or anticipates having a state-
subdivision agreement or proposed state-subdivision agreement, or has an allocation statute and/or a
statutory trust. If so, then the terms of the state-subdivision agreement, allocation statute, and/or
statutory trust (as applicable) will govern your eligibility to receive funds directly or indirectly from the
share that is allocated to your state under the national settlement agreements. In some states, like
California, there will be a proposed state-subdivision agreement that is in the process of being adopted
by subdivisions. In California, acceptance of the proposed state-subdivision allocation agreement is a
condition of a subdivision joining either or both of the national settlements.
Any questions concerning the status or terms of the state-subdivision agreement, proposed state-
subdivision agreement, allocation statute, and/or statutory trust in your state, if applicable, can be
directed to the Attorney General’s Office.
You may be contacted by the Attorney General’s Office with additional information regarding the
allocation of Settlement funds in California. Subdivisions with representation can expect information
from their attorneys as well. We encourage you to review all materials and to follow up with any
questions. The terms of these Settlements are complex, and we want to be sure you have all the
information you need to make your participation decision.
WHY YOU SHOULD PARTICIPATE
A vast majority of states have joined the Settlements, and attorneys for many subdivisions have
already announced support for them. For example, the Plaintiffs’ Executive Committee, charged with
leading the litigation on behalf of more than 3,000 cities, counties and others against the opioid
industry, and consolidated in the national multi-district litigation (“MDL”) pending before Judge Dan
Aaron Polster in the Northern District of Ohio, recommends participation in these Settlements.
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Subdivision participation is strongly encouraged, for the following reasons:
First, the amounts to be paid under the Settlements, while insufficient to abate the epidemic fully, will
allow state and local governments to commence with meaningful change designed to curb opioid
addiction, overdose and death;
Second, time is of the essence. The opioid epidemic continues to devastate communities around the
country and it is critical that the funds begin to flow to allow governments to address the epidemic in
their communities as soon as possible;
Third, if there is not sufficient subdivision participation in these proposed Settlements, the Settlements
will not be finalized, the important business practice changes will not be implemented, the billions of
dollars in abatement funds will not flow to communities, and more than 3,000 cases may be sent back
to their home courts for trial, which will take many years.
Fourth, the extent of participation also will determine how much money each state and its local
subdivisions will receive because approximately half of the abatement funds are in the form of
“incentive payments,” i.e., the higher the participation of subdivisions in a state, the greater the amount
of settlement funds that flow into that state;
Fifth, you know first-hand the effects of the opioid epidemic on your community. Funds from these
Settlements will be used to commence abatement of the crisis and provide relief to your citizens while
litigation and settlement discussions proceed against numerous other defendants in the opioid industry;
Sixth, because pills do not respect boundaries, the opioid epidemic is a national crisis that needs a
national solution.
NEXT STEPS
These Settlements require that you take affirmative steps to “opt in” to the Settlements. If you do not
act, you will not receive any settlement funds and you will not contribute to reaching the participation
thresholds that will deliver the maximum amount of abatement funds to your state.
First, register your subdivision on the national settlement website so that information and documents
required to participate can be sent to you. You will need the email address of the person who will be
authorized to sign on behalf of your subdivision. This is the only action item needed at this time.
Second, have your authorizing person(s) or body begin to review the materials on the websites
concerning the settlement agreement terms, allocation and other matters. Develop a list of questions
for your counsel or the Attorney General’s Office. In the very near future, your subdivision will need to
begin the process of deciding whether to participate in the proposed Settlements, and subdivisions are
encouraged to work through this process well before the January 2, 2022 deadline to be an initial
participating subdivision. Again, the Attorney General’s Office, your counsel, and other contacts within
the state are available to discuss the specifics of the Settlements within your state, and we encourage
you to discuss the terms and benefits of the Settlements with them.
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Third, monitor your email for further communications, which will include a Participation Agreement,
Release, (where applicable) a model Resolution, and instructions on executing using DocuSign.
We urge you to view the national settlement website and the California website
https://oag.ca.gov/opioids at your earliest convenience. Information and documents regarding the
national Settlements and your state allocation can be found on the Settlements website at
https://nationalopioidsettlement.com/.
Unsubscribe
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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.
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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.
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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.
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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.
Page 415 of 520
8
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.
Page 416 of 520
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. Page 417 of 520
APPENDIX 1100.000% 100.000% 100.000%Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCountyAlameda CountyAlameda 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%CountyAmador CountyAmador 0.226% 0.277%0.2349885%CountyButte CountyButte 1.615% 1.975%1.6783178%City Chico Butte 0.216% 0.264%0.2246499%City Oroville Butte 0.079%0.0646595%CountyCalaveras CountyCalaveras 0.226% 0.277%0.2351644%CountyColusa CountyColusa 0.059%0.0489221%CountyContra Costa CountyContra 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 15Page 418 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyDel Norte CountyDel Norte 0.114% 0.140%0.1189608%CountyEl Dorado CountyEl 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%CountyFresno CountyFresno 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%CountyGlenn CountyGlenn 0.107% 0.131%0.1116978%CountyHumboldt CountyHumboldt 1.030% 1.260%1.0703185%2 of 15Page 419 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity Arcata Humboldt 0.054%0.0447660%City Eureka Humboldt 0.117% 0.143%0.1216284%City Fortuna Humboldt 0.032%0.0266837%CountyImperial CountyImperial 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%CountyInyo CountyInyo 0.073% 0.089%0.0754413%CountyKern CountyKern 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%CountyKings CountyKings 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%CountyLake CountyLake 0.795%0.6545389%City Clearlake Lake 0.041% 0.050%0.0426253%City Lakeport Lake 0.021% 0.026%0.0222964%CountyLassen CountyLassen 0.319% 0.391%0.3320610%City Susanville Lassen 0.027%0.0219295%CountyLos Angeles CountyLos Angeles 13.896% 16.999%14.4437559%3 of 15Page 420 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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 15Page 421 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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 15Page 422 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyMadera CountyMadera 0.349% 0.427%0.3630669%City Chowchilla Madera 0.012%0.0097332%City Madera Madera 0.039%0.0318441%CountyMarin CountyMarin 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%CountyMariposa CountyMariposa 0.084% 0.103%0.0876131%CountyMendocino CountyMendocino 0.439% 0.536%0.4558394%City Ukiah Mendocino 0.039%0.0317153%6 of 15Page 423 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCountyMerced CountyMerced 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%CountyModoc CountyModoc 0.065% 0.080%0.0678250%CountyMono CountyMono 0.023% 0.029%0.0242606%CountyMonterey CountyMonterey 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%CountyNapa CountyNapa 0.288% 0.352%0.2994325%City American Canyon Napa 0.017%0.0136869%City Napa Napa 0.078%0.0642783%CountyNevada CountyNevada 0.441% 0.539%0.4579827%City Grass Valley Nevada 0.024%0.0197805%City Truckee Nevada 0.003%0.0023843%CountyOrange CountyOrange 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 15Page 424 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyPlacer CountyPlacer 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 15Page 425 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity Roseville Placer 0.196%0.1616559%CountyPlumas CountyPlumas 0.205% 0.251%0.2128729%CountyRiverside CountyRiverside 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%CountySacramento CountySacramento 3.797% 4.645%3.9465887%9 of 15Page 426 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountySan Benito CountySan Benito 0.106% 0.130%0.1101417%City Hollister San Benito 0.027%0.0225355%CountySan Bernardino CountySan 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 15Page 427 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity Yucca Valley San Bernardino 0.003%0.0021228%CountySan Diego CountySan 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%ConsolidatedSan FranciscoSan Francisco 3.026% 3.702%3.1457169%CountySan Joaquin CountySan 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%CountySan Luis Obispo CountySan 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 15Page 428 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountySan Mateo CountySan 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%CountySanta Barbara CountySanta 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%CountySanta Clara CountySanta 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 15Page 429 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountySanta Cruz CountySanta 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%CountyShasta CountyShasta 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%CountySiskiyou CountySiskiyou 0.228% 0.279%0.2373393%CountySolano CountySolano 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%CountySonoma CountySonoma 1.218% 1.490%1.2661290%City Healdsburg Sonoma 0.032%0.0266929%City Petaluma Sonoma 0.081%0.0667507%13 of 15Page 430 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyStanislaus CountyStanislaus 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%CountySutter CountySutter 0.306% 0.374%0.3179548%City Yuba City Sutter 0.074%0.0606242%CountyTehama CountyTehama 0.213% 0.261%0.2216654%City Red Bluff Tehama 0.014%0.0117771%CountyTrinity CountyTrinity 0.082% 0.101%0.0855476%CountyTulare CountyTulare 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%CountyTuolumne CountyTuolumne 0.486% 0.594%0.5047621%CountyVentura CountyVentura 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%14 of 15Page 431 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyYolo CountyYolo 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%CountyYuba CountyYuba 0.214% 0.262%0.2225679%City Marysville Yuba 0.014%0.0112079%15 of 15Page 432 of 520
1
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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2
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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3
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.
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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.
Page 436 of 520
APPENDIX 3
CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio
issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate
Litigation, MDL 2804, addressing contingent attorney fee contracts between political
subdivisions eligible to participate in the Distributors Settlement and their counsel.
In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel
[COUNSEL], and the California Attorney General, on behalf of the State of California, are
entering into this California-Subdivision Backstop Agreement (Backstop Agreement).
[SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back-
Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’
Fees, Expenses and Costs) of the Distributor Settlement Agreement.
Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the
Distributor Settlement Agreement and CA Distributor Allocation Agreement, as well as any
other limitations imposed by law, use funds that it receives from the Distributor Settlement CA
Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from
[SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may
receive from the national Attorney Fee Fund, will not exceed a total contingency fee of
[PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from
the Distributors Settlement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created
under the Distributor Settlement Agreement before seeking or accepting payment under this
backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept
payment under this backstop agreement of any litigation fees or costs that have been reimbursed
through prior settlements or judgments.
The Attorney General is executing this agreement solely because the definition of “State Back-
Stop Agreement” in Exhibit R of the Distributor Settlement Agreement requires such agreements
to be between “a Settling State” and private counsel for a participating subdivision. Neither the
California Attorney General nor the State of California have any obligations under this Backstop
Agreement, and this Backstop Agreement does not require the payment of any state funds to
[SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
Page 437 of 520
Page 438 of 520
1
Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Janssen Settlement
1. Introduction
Pursuant to the Janssen Settlement Agreement, dated as of July 21, 2021, and any revision
thereto (the “Janssen Settlement Agreement”), including Section VI and Exhibit O, the State of
California proposes this agreement (the “CA Janssen Allocation Agreement”) to govern the
allocation, distribution, and use of Settlement Fund payments made to California pursuant to
Sections V and VI of the Janssen Settlement Agreement.1 For the avoidance of doubt, this
agreement does not apply to payments made pursuant to Sections X or XI of the Janssen
Settlement Agreement.
Pursuant to Exhibit O, Paragraph 4, of the Janssen Settlement Agreement, acceptance of this CA
Janssen 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 Janssen Settlement Agreement.
b) Distributor Settlement Agreement means the Distributor Settlement Agreement dated
July 21, 2021, and any revision thereto.
c) CA Litigating Special District means a Litigating Special District located in
California. CA 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 CA
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.
e) Opioid Defendant means any defendant (including but not limited to Johnson &
Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc.,
1 A parallel but separate agreement (the “CA Distributor Allocation Agreement”) will govern the
allocation, distribution, and use of settlement fund payments under the Distributor Settlement
Agreement. An eligible Subdivision may elect to participate in either the Distributor Settlement
or the Janssen Settlement, or in both.
Page 439 of 520
2
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 Janssen Settlement Agreement, as well as
applicable law, and the Janssen Settlement Agreement governs over any inconsistent provision
of this CA Janssen Allocation Agreement. Terms used in this CA Janssen Allocation Agreement
have the same meaning as in the Janssen Settlement Agreement unless otherwise defined herein.
Pursuant to Section VI(D)(1) of the Janssen Settlement Agreement, (a) all Settlement Fund
payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the
Janssen 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 Janssen 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 Janssen 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
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
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.
Page 440 of 520
3
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, CA 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 Janssen 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 Janssen
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 Janssen Settlement Agreement and
this CA Janssen 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.
Page 441 of 520
4
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 Janssen 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 Janssen 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 Janssen Settlement Agreement and this CA
Janssen 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.
Page 442 of 520
5
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 Janssen Settlement Agreement
and this CA Janssen Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement
Accounts Funds is inconsistent with the Janssen Settlement Agreement or this CA
Janssen 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 Janssen Settlement Agreement or this CA Janssen
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 Janssen Settlement Agreement and this CA Janssen
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.
Page 443 of 520
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 Janssen
Settlement Agreement and, if applicable, the Distributor 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 Janssen 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 Janssen Settlement, and if applicable,
the Distributor 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 Janssen
Settlement Agreement and, if applicable, the Distributor 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
Page 444 of 520
7
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 Janssen Settlement Agreement and this
CA Janssen 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 Janssen Settlement Agreement and this CA Janssen
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 VI(B)(2) of the Janssen Settlement Agreement, such information must also be
reported to the Settlement Fund Administrator and Janssen.
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.
Page 445 of 520
8
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
Janssen 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 Janssen Settlement Agreement, this CA Janssen 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 Janssen 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 Janssen Settlement Agreement, this agreement shall be
governed by and interpreted in accordance with the laws of California.
Page 446 of 520
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—Janssen 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. Page 447 of 520
APPENDIX 1100.000% 100.000% 100.000%Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCountyAlameda CountyAlameda 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%CountyAmador CountyAmador 0.226% 0.277%0.2349885%CountyButte CountyButte 1.615% 1.975%1.6783178%City Chico Butte 0.216% 0.264%0.2246499%City Oroville Butte 0.079%0.0646595%CountyCalaveras CountyCalaveras 0.226% 0.277%0.2351644%CountyColusa CountyColusa 0.059%0.0489221%CountyContra Costa CountyContra 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 15Page 448 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyDel Norte CountyDel Norte 0.114% 0.140%0.1189608%CountyEl Dorado CountyEl 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%CountyFresno CountyFresno 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%CountyGlenn CountyGlenn 0.107% 0.131%0.1116978%CountyHumboldt CountyHumboldt 1.030% 1.260%1.0703185%2 of 15Page 449 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity Arcata Humboldt 0.054%0.0447660%City Eureka Humboldt 0.117% 0.143%0.1216284%City Fortuna Humboldt 0.032%0.0266837%CountyImperial CountyImperial 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%CountyInyo CountyInyo 0.073% 0.089%0.0754413%CountyKern CountyKern 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%CountyKings CountyKings 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%CountyLake CountyLake 0.795%0.6545389%City Clearlake Lake 0.041% 0.050%0.0426253%City Lakeport Lake 0.021% 0.026%0.0222964%CountyLassen CountyLassen 0.319% 0.391%0.3320610%City Susanville Lassen 0.027%0.0219295%CountyLos Angeles CountyLos Angeles 13.896% 16.999%14.4437559%3 of 15Page 450 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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 15Page 451 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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 15Page 452 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyMadera CountyMadera 0.349% 0.427%0.3630669%City Chowchilla Madera 0.012%0.0097332%City Madera Madera 0.039%0.0318441%CountyMarin CountyMarin 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%CountyMariposa CountyMariposa 0.084% 0.103%0.0876131%CountyMendocino CountyMendocino 0.439% 0.536%0.4558394%City Ukiah Mendocino 0.039%0.0317153%6 of 15Page 453 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCountyMerced CountyMerced 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%CountyModoc CountyModoc 0.065% 0.080%0.0678250%CountyMono CountyMono 0.023% 0.029%0.0242606%CountyMonterey CountyMonterey 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%CountyNapa CountyNapa 0.288% 0.352%0.2994325%City American Canyon Napa 0.017%0.0136869%City Napa Napa 0.078%0.0642783%CountyNevada CountyNevada 0.441% 0.539%0.4579827%City Grass Valley Nevada 0.024%0.0197805%City Truckee Nevada 0.003%0.0023843%CountyOrange CountyOrange 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 15Page 454 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyPlacer CountyPlacer 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 15Page 455 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity Roseville Placer 0.196%0.1616559%CountyPlumas CountyPlumas 0.205% 0.251%0.2128729%CountyRiverside CountyRiverside 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%CountySacramento CountySacramento 3.797% 4.645%3.9465887%9 of 15Page 456 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountySan Benito CountySan Benito 0.106% 0.130%0.1101417%City Hollister San Benito 0.027%0.0225355%CountySan Bernardino CountySan 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 15Page 457 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity Yucca Valley San Bernardino 0.003%0.0021228%CountySan Diego CountySan 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%ConsolidatedSan FranciscoSan Francisco 3.026% 3.702%3.1457169%CountySan Joaquin CountySan 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%CountySan Luis Obispo CountySan 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 15Page 458 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountySan Mateo CountySan 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%CountySanta Barbara CountySanta 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%CountySanta Clara CountySanta 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 15Page 459 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountySanta Cruz CountySanta 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%CountyShasta CountyShasta 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%CountySiskiyou CountySiskiyou 0.228% 0.279%0.2373393%CountySolano CountySolano 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%CountySonoma CountySonoma 1.218% 1.490%1.2661290%City Healdsburg Sonoma 0.032%0.0266929%City Petaluma Sonoma 0.081%0.0667507%13 of 15Page 460 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyStanislaus CountyStanislaus 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%CountySutter CountySutter 0.306% 0.374%0.3179548%City Yuba City Sutter 0.074%0.0606242%CountyTehama CountyTehama 0.213% 0.261%0.2216654%City Red Bluff Tehama 0.014%0.0117771%CountyTrinity CountyTrinity 0.082% 0.101%0.0855476%CountyTulare CountyTulare 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%CountyTuolumne CountyTuolumne 0.486% 0.594%0.5047621%CountyVentura CountyVentura 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%14 of 15Page 461 of 520
APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity 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%CountyYolo CountyYolo 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%CountyYuba CountyYuba 0.214% 0.262%0.2225679%City Marysville Yuba 0.014%0.0112079%15 of 15Page 462 of 520
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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 Janssen 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 VI.B.2 of the Janssen
Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating
Subdivision, will submit to the Settlement Fund Administrator and Janssen a report
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3
of the fees and expenses incurred by the Special Master pursuant to Section VI.B.2
of the Janssen 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.
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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.
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APPENDIX 3
CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio
issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate
Litigation, MDL 2804, addressing contingent attorney fee contracts between political
subdivisions eligible to participate in the Janssen Settlement and their counsel.
In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel
[COUNSEL], and the California Attorney General, on behalf of the State of California, are
entering into this California-Subdivision Backstop Agreement (Backstop Agreement).
[SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back-
Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’
Fees, Costs, and Expenses) of the Janssen Settlement Agreement.
Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the
Janssen Settlement Agreement and CA Janssen Allocation Agreement, as well as any other
limitations imposed by law, use funds that it receives from the Janssen Settlement CA
Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from
[SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may
receive from the national Attorney Fee Fund, will not exceed a total contingency fee of
[PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from
the Distributors Settlement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created
under the Janssen Settlement Agreement before seeking or accepting payment under this
backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept
payment under this backstop agreement of any litigation fees or costs that have been reimbursed
through prior settlements or judgments.
The Attorney General is executing this agreement solely because the definition of “State Back-
Stop Agreement” in Exhibit R of the Janssen Settlement Agreement requires such agreements to
be between “a Settling State” and private counsel for a participating subdivision. Neither the
California Attorney General nor the State of California have any obligations under this Backstop
Agreement, and this Backstop Agreement does not require the payment of any state funds to
[SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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