TITLE:
title
APPROPRIATION OF OPIOID SETTLEMENT FUNDS
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DEPARTMENT: CITY MANAGER OFFICE
PRESENTED BY: NATE ROBBINS, NEIGHBORHOOD IMPROVEMENT MANAGER
CONTACT INFORMATION: NATE ROBBINS, 714-754-5274
RECOMMENDATION:
recommendation
Authorize the appropriation of past and future Opioid Settlement Funds to subsidize eligible expenses including legal fees and opioid remediation services for people experiencing homelessness.
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BACKGROUND:
In 2021, nationwide settlements ("2021 National Settlements") were reached to resolve all opioid litigation brought by states and local political subdivisions against the three largest pharmaceutical distributors, McKesson, Cardinal Health, and AmerisourceBergen ("Distributors") and against manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson (collectively, "J&J"). The 2021 National Settlements have been finalized, and payments have already begun. In all, the Distributors and J&J will pay up to $26 billion over 18 years, with the City of Costa Mesa's ("City") allocation projected at $1,839,901 over 15 years.
In late 2022, settlement agreements ("2022 National Settlements") were announced with three pharmacy chains, CVS, Walgreens, and Walmart and two additional manufacturers, Allergan and Teva. In January 2023, each of those pharmacy chains and manufacturers confirmed that a sufficient number of states had agreed to the settlements to move forward with finalizing the agreements. The 2022 National Settlements have been finalized, and payments have already begun. In all, the pharmacies and manufacturers will pay up to $18.52 billion over 15 years, with the City's allocation projected at $2,780,265 over 15 years.
The City's total projected allocation from the 2021 and 2022 National Settlements is $4,620,166. As outlined in both settlement agreements, at least 85% of the funds going directly to participating states and subdivisions must be used for abatement of the opioid epidemic, with the ...
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