21-052RESOLUTION NO.21-052
A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE
GLOBAL OPIOID SETTLEMENT DOCUMENTS, AND ADOPTING THE
TEXAS TERM SHEET.
WHEREAS, the City of Southlake ("City") is a home rule City acting under its Charter
adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter
9 of the Local Government Code; and
WHEREAS, the City has obtained information indicating that certain drug companies and
their corporate affiliates, parents, subsidiaries, and such other defendants as may be added to the
litigation (collectively, "Defendants") have engaged in fraudulent and/or reckless marketing and/or
distribution of opioids that have resulted in addictions and overdoses; and
WHEREAS, the actions, conduct, and misconduct of these Defendants have resulted in
significant financial cost to the City; and
WHEREAS, on May 13, 2020, the State of Texas, through the Office of the Attorney
General, and a negotiation group for Texas political subdivisions entered into an Agreement
entitled Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet (hereafter,
the Texas Term Sheet) approving the allocation of any and all opioid settlement funds within the
State of Texas. The Texas Term Sheet is attached hereto as Exhibit A;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL, CITY OF
SOUTHLAKE, TEXAS THAT:
SECTION 1.
The City Council supports the adoption of the Texas Term Sheet, and hereby adopts that
document in its entirety.
SECTION 2.
The City Council finds that there is a substantial need for repayment of opioid-related
expenditures and payment to abate opioid-related harms in and about the City. The City Council
supports in its entirety and hereby adopts the allocation method for opioid settlement proceeds as
set forth in the STATE OF TEXAS AND TEXAS POLITICAL SUBDIVISIONS' OPIOID
ABATEMENT FUND COUNCIL AND SETTLEMENT ALLOCATION TERM SHEET,
attached hereto as Exhibit A. The City Council understands that the purpose of this Texas Term
Sheet is to permit collaboration between the State of Texas and Political Subdivisions to explore
and potentially effectuate resolution of the Opioid Litigation against Pharmaceutical Supply Chain
Participants as defined therein. The City Council also understand that an additional purpose is to
create an effective means of distributing any potential settlement funds obtained under this Texas
Term Sheet between the State of Texas and Political Subdivisions in a manner and means that
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would promote an effective and meaningful use of the funds in abating the opioid epidemic in this
County and throughout Texas.
SECTION 3.
The City Council hereby authorizes the City Manager to execute in the City's behalf the
Subdivision Settlement Participation Forms as related to settlements with McKesson Corporation,
Cardinal Health, Inc., and Amerisource Bergen Corporation, and with Johnson & Johnson as
Janssen Pharmaceuticals, Inc.
SECTION 4.
Upon execution of the Subdivision Settlement Participation Form, the City Manager is
authorized to send executed copies, with this Resolution (including Exhibit A) to the Office of the
Attorney General, as required for participation in this settlement.
SECTION 5.
This resolution shall be in full force and effect after its passage and publication as required by
law, and it is so resolved.
PASSED AND APPROVED THIS1-�DAY OF n�( vv��L�/ , 2021.
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TEXAS OPIOID ABATEMENT FUND COUNCIL AND
SETTLEMENT ALLOCATION TERM SHEET
WHEREAS, the people of the State of Texas and its communities have been harmed
through the National and Statewide epidemic caused by licit and illicit opioid use
and distribution within the State of Texas; and now,
WHEREAS, the State of Texas, though its elected representatives and counsel,
including the Honorable Ken Paxton, Attorney General of the State of Texas, and
certain Political Subdivisions, through their elected representatives and counsel, are
separately engaged in litigation seeking to hold those entities in the supply chain
accountable for the damage caused; and now,
WHEREAS, the State of Texas, through its Attorney General and its Political
Subdivisions, share a common desire to abate and alleviate the impacts of the
epidemic throughout the State of Texas; and now,
THEREFORE, the State of Texas and its Political Subdivisions, subject to
completing formal documents effectuating the Parties' agreements, enter into this
State of Texas and Texas Political Subdivisions' Opioid Abatement Fund Council
and Settlement Allocation Term Sheet (Texas Term Sheet) relating to the allocation
and use of the proceeds of any Settlements as described.
A. Definitions
As used in this Texas Term Sheet:
1
1. "The State" shall mean the State of Texas acting through its Attorney
General.
2. "Political Subdivision(s)" shall mean any Texas municipality and county.
3. "The Parties" shall mean the State of Texas, the Political Subdivisions, and
the Plaintiffs' Steering Committee and Liaison Counsel (PSC) in the Texas
Opioid MDL, In Re: Texas Opioid Litigation, MDL No. 2018-63587, in
the 152d District Court of Harris County, Texas.
4. "Litigating Political Subdivision" means a Political Subdivision that filed
suit in the state courts of the State of Texas prior to the Execution Date of
this Agreement, whether or not such case was transferred to Texas Opioid
MDL, or removed to federal court.
5. "National Fund" shall mean any national fund established for the benefit
of the Texas Political Subdivisions. In no event shall any National Fund
be used to create federal jurisdiction, equitable or otherwise, over the
Texas Political Subdivisions or those similarly situated state -court litigants
who are included in the state coalition, nor shall the National Fund require
participating in a class action or signing a participation agreement as part
of the criteria for participating in the National Fund.
6. "Negotiating Committee" shall mean a three -member group comprising
four representatives for each of (1) the State; (2) the PSC; and (3) Texas'
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Political Subdivisions (collectively, "Members"). The State shall be
represented by the Texas Attorney General or his designees. The PSC shall
be represented by attorneys Mikal Watts, Jeffrey Simon, Dara Hegar, Dan
Downey, or their designees. Texas' Political Subdivisions shall be
represented by Clay Jenkins (Dallas County Judge), Terrence O'Rourke
(Special Assistant County Attorney, Harris County), Nelson Wolff (Bexar
County Judge), and Nathaniel Moran (Smith County Judge) or their
designees.
7. "Settlement" shall mean the negotiated resolution of legal or equitable
claims against a Pharmaceutical Supply Chain Participant that includes the
State and Political Subdivisions.
8. "Opioid Funds" shall mean monetary amounts obtained through a
Settlement as defined in this Texas Term Sheet.
8. "Approved Purpose(s)" shall mean those uses identified in Exhibit A
hereto.
9. "Pharmaceutical Supply Chain" shall mean the process and channels
through which opioids or opioids products are manufactured, marketed,
promoted, distributed, or dispensed.
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10."Pharmaceutical Supply Chain Participant" shall mean any entity that
engages in or has engaged in the manufacture, marketing, promotion,
distribution, or dispensing of an opioid analgesic.
11. "Texas Opioid Council" shall mean the Council described in Exhibit A
hereto, which has the purpose of ensuring the funds recovered by Texas
(through the joint actions of the Attorney General and the Texas Political
Subdivisions) are allocated fairly and spent to remediate the opioid crisis
in Texas, using efficient and cost-effective methods that are directed to the
hardest hit regions in Texas while also ensuring that all Texans benefit
from prevention and recovery efforts.
B. Allocation of Settlement Proceeds
1. All Opioid Funds distributed in Texas shall be divided with 15% going to
Political Subdivisions ("Subdivision Share"), 70% to the Texas Opioid
Abatement Fund through the Texas Opioid Council (Texas Abatement
Fund Share) identified and described on Exhibits A and C hereto, and 15%
to the Office of the Texas Attorney General as Counsel for the State of
Texas ("State Share"). Out of the Texas Opioid Abatement Fund,
reasonable expenses up to 1 % shall be paid to the Texas Comptroller for
the administration of the Texas Opioid Council pursuant to the Opioid
4
Abatement Fund (Texas Settlement) Opioid Council Agreement, Exhibit
A hereto.
2. The Subdivisions Share shall be allocated in accordance with the division
of proceeds on Exhibit B hereto.
3. The Texas Abatement Fund Share shall be allocated to the Opioid Council
to be apportioned in accordance with the guidelines of Exhibit A, and
Exhibit C hereto.
4. In the event a Subdivision merges, dissolves, or ceases to exist, the
allocation percentage for that Subdivision shall be redistributed as directed
by the settlement document, and if not specified, equitably based on the
composition of the successor Subdivision. If a Subdivision for any reason
is excluded from a specific settlement, the allocation percentage for that
Subdivision shall be redistributed as directed by the settlement document,
and if not specified, equitably among the participating Subdivisions.
5. Funds obtained from parties unrelated to the Litigation, via grant, bequest,
gift or the like, separate and distinct from the Litigation, may be directed
to the Texas Opioid Council and disbursed as set forth below.
6. The Subdivision share shall be initially deposited and paid in cash directly
to the Subdivision under the authority and guidance of the Texas MDL
Court, who shall direct any Settlement funds to be held in trust in a
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segregated account to benefit the Subdivisions and to be promptly
distributed as set forth herein and in accordance with Exhibit B.
7. Nothing in this Texas Term Sheet should alter or change any Subdivision's
rights to pursue its own claim. Rather, the intent of this Texas Term Sheet
is to join all parties to disburse settlement proceeds from one or more
defendants to all parties participating in that settlement within Texas.
8. Opioid Funds from the Texas Abatement Fund Share shall be directed to
the Texas Opioid Council and used in accordance with the guidelines as
set out on Exhibit A hereto, and the Texas Abatement Fund Share shall be
distributed to the Texas Opioid Council under the authority and guidance
of the Texas MDL Court, consistent with Exhibits A and C, and the by-
laws of the Texas Opioid Council documents and disbursed as set forth
therein, including without limitation all abatement funds and the 1%
holdback for expenses.
9. The State of Texas and the Political Subdivisions understand and
acknowledge that additional steps may need to be undertaken to assist the
Texas Opioid Council in its mission, at a predictable level of funding,
regardless of external factors.
C. Payment of Counsel and Litigation Expenses
[.1
1. Any Master Settlement Agreement settlement will govern the payment of
fees and litigation expenses to the Parties. The Parties agree to direct
control of any Texas Political Subdivision fees and expenses to the "Texas
Opioid Fee and Expense Fund," which shall be allocated and distributed
by the Texas MDL Court, In re: Texas Opioid Litigation, MDL No. 2018-
63587, in the 152nd District Court of Harris County, Texas, and with the
intent to compensate all counsel for Texas Political Subdivisions who have
not chosen to otherwise seek compensation for fees and expenses from any
federal MDL common benefit fund.
2. The Parties agree that no portion of the State of Texas 15% allocation
share from any settlement shall be administered through the National
Fund, the Texas MDL Court, or Texas Opioid Fee and Expense Fund,
but shall be directed for payment to the State of Texas by the State of
Texas.
3. The State of Texas and the Texas Political Subdivisions, and their
respective attorneys, agree that all fees — whether contingent, hourly,
fixed or otherwise — owed by the Texas Political Subdivisions shall be
paid out of the National Fund or as otherwise provided for herein to the
Texas Opioid Fee and Expense Fund to be distributed by the 152nd
II
District Court of Harris County, Texas pursuant to its past and future
orders.
4. From any opioid-related settlements with McKesson, Cardinal Health,
ABDC, and Johnson & Johnson, and for any future opioid-related
settlements negotiated, in whole or in part, by the Negotiating
Committee with any other Pharmaceutical Supply Chain Participant,
the funds to be deposited in the Texas Opioid Fee and Expense Fund
shall be 9.3925% of the combined Texas Political Subdivision and
Texas Abatement Fund portions of each payment (annual or otherwise)
to the State of Texas for that settlement, plus expenses from the
National Fund, and shall be sought by Texas Political Subdivision
Counsel initially through the National Fund. The Texas Political
Subdivisions' percentage share of fees and expenses from the National
Fund shall be directed to the Texas Opioid Fee and Expense Fund in
the Texas MDL, as soon as is practical, for allocation and distribution
in accordance with the guidelines herein.
5. If the National Fund share to the Texas Political Subdivisions is
insufficient to cover the guaranteed 9.3925%, plus expenses from the
National Fund, per subsection 4, immediately supra, or if payment from
the National Fund is not received within 12 months after the date the
9
first payment is made by the Defendants pursuant to the settlement, then
the Texas Political Subdivisions shall recover up to 12.5% of the Texas
Political Subdivision Share to make up any difference.
6. If the National Fund and the Texas Political Subdivision share are
insufficient to cover the guaranteed 9.3925%, plus expenses from the
National Fund, or if payment from the National Fund is not received
within 12 months after the date the first payment is made by the
Defendants pursuant to the settlement, then the Texas Political
Subdivisions shall recover up to 8.75% of the Abatement Fund Share
to make up any difference. In no event shall the Texas Political
Subdivision share exceed 9.3925% of the combined Texas Political
Subdivision and Texas Abatement Fund portions of any settlement,
plus expenses from the National Fund. In the event that any payment
is received from the National Fund such that the total amount in fees
and expenses exceeds 9.3925%, the Texas Political Subdivisions shall
return any amounts received greater than 9.3925% of the combined
Texas Political Subdivision and Texas Abatement Fund portions to
those respective Funds.
9
7. For each settlement utilizing a National Fund, the Texas Political
Subdivisions need only make one attempt at seeking fees and expenses
there.
8. The total amount of the Texas Opioid Fee and Expense Fund shall be
reduced proportionally, according to the agreed upon allocation of the
Texas Subdivision Fund, for any Texas litigating Political Subdivision
that (1) fails to enter the settlement; and (2) was filed in Texas state
court, and was transferred to the Texas MDL (or removed before or
during transfer to the Texas MDL) as of the execution date of this
Agreement.
D. The Texas Opioid Council and Texas Abatement Fund
The Texas Opioid Council and Texas Abatement Fund is described in detail
at Exhibit A, incorporated herein by reference.
E. Settlement Negotiations
1. The State and Negotiating Committee agree to inform each other in
advance of any negotiations relating to a Texas -only settlement with a
Pharmaceutical Supply Chain Participant that includes both the State and
its Political Subdivisions and shall provide each other the opportunity to
participate in all such negotiations. Any Texas -only Settlement agreed to
with the State and Negotiating Committee shall be subject to the approval
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of a majority of litigating Political Subdivisions. The Parties further agree
to keep each other reasonably informed of all other global settlement
negotiations with Pharmaceutical Supply Chain Participants and to include
the Negotiating Committee or designees. Neither this provision, nor any
other, shall be construed to state or imply that either the State or the
Negotiating Committee is unauthorized to engage in settlement
negotiations with Pharmaceutical Supply Chain Participants without prior
consent or contemporaneous participation of the other, or that either party
is entitled to participate as an active or direct participant in settlement
negotiations with the other. Rather, while the State's and Negotiation
Committee's efforts to achieve worthwhile settlements are to be
collaborative, incremental stages need not be so.
2. Any Master Settlement Agreement (MSA) shall be subject to the approval
and jurisdiction of the Texas MDL Court.
3. As this is a Texas -specific effort, the Committee shall be Chaired by the
Attorney General. However, the Attorney General, or his designees, shall
endeavor to coordinate any publicity or other efforts to speak publicly with
the other Committee Members.
4. The State of Texas, the Texas MDL Plaintiff's Steering Committee
representatives, or the Political Subdivision representatives may withdraw
11
from coordinated Settlement discussions detailed in this Section upon 10
business days' written notice to the remaining Committee Members and
counsel for any affected Pharmaceutical Supply Chain Participant. The
withdrawal of any Member releases the remaining Committee Members
from the restrictions and obligations in this Section.
5. The obligations in this Section shall not affect any Party's right to proceed
with trial or, within 30 days of the date upon which a trial involving that
Party's claims against a specific Pharmaceutical Supply Chain Participant
is scheduled to begin, reach a case specific resolution with that particular
Pharmaceutical Supply Chain Participant.
F. Amendments
The Parties agree to make such amendments as necessary to implement the
intent of this agreement.
Acknowledgment of Agreement
We, the undersigned, have participated in the drafting of the above Texas
Term Sheet, including consideration based on comments solicited from Political
Subdivisions. This document has been collaboratively drafted to maintain all
individual claims while allowing the State and its Political Subdivisions to cooperate
in exploring all possible means of resolution. Nothing in this agreement binds any
party to any specific outcome. Any resolution under this document will require
12
acceptance by the State of Texas and a majority of the Litigating Political
Subdivisions.
We, the undersigned, hereby accept the STATE OF TEXAS AND TEXAS
POLITICAL SUBDIVISIONS' OPIOID ABATEMENT FUND COUNCIL AND
SETTLEMENT ALLOCATION TERM SHEET. We understand that the purpose of
this Texas Term Sheet is to permit collaboration between the State of Texas and
Political Subdivisions to explore and potentially effectuate earlier resolution of the
Opioid Litigation against Pharmaceutical Supply Chain Participants. We also
understand that an additional purpose is to create an effective means of distributing
any potential settlement funds obtained under this Texas Term Sheet between the
State of Texas and Political Subdivisions in a manner and means that would promote
an effective and meaningful use of the funds in abating the opioid epidemic
throughout Texas.
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Executed this 13 day of May, 2020.
FOR THE STATE OF TEXAS:
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KENNETH PAXTON, JR.
ATTORNEY GENERAL
FOR THE SUBDIVISIONS
AND TEXAS MDL PSC:
MIKAL WATTS
WATTS GUERRA LLP
JEff"YrEEINSTONE
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SIMON G PANATIER, PC
'j)aA.4ARj0A
DARA HEGAR
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EXHIBIT A
Opioid Abatement Fund (Texas) Settlement
Opioid Council
As part of the settlement agreement and upon its execution, the parties will form the Texas Opioid
Council (Council) to establish the framework that ensures the funds recovered by Texas (through
the joint actions of the Attorney General and the state's political subdivisions) are allocated fairly
and spent to remediate the opioid crisis in Texas, using efficient and cost-effective methods that
are directed to the hardest hit regions in Texas while also ensuring that all Texans benefit from
prevention and recovery efforts.
I. Structure
The Council will be responsible for the processes and procedures governing the spending of the
funds held in the Texas Abatement Fund, which will be approximately 70% of all funds obtained
through settlement and/or litigation of the claims asserted by the State and its subdivisions in the
investigations and litigation related to the manufacturing, marketing, distribution, and sale of
opioids and related pharmaceuticals.
Money paid into the abatement fund will be held by an independent administrator, who shall be
responsible for the ministerial task of releasing funds solely as authorized below by the Council,
and accounting for all payments to and from the fund.
The Council will be formed when a court of competent jurisdiction enters an order settling the
matter, including any order of a bankruptcy court. The Council's members must be appointed
within sixty (60) days of the date the order is entered.
The Council shall be comprised of the following thirteen (13) members:
1. Statewide Members.
Six members appointed by the Governor and Attorney General to represent the State's
interest in opioid abatement. The statewide members are appointed as follows:
a. The Governor shall appoint three (3) members who are licensed health
professionals with significant experience in opioid interventions;
b. The Attorney General shall appoint three (3) members who are licensed
professionals with significant experience in opioid incidences; and
c. The Governor will appoint the Chair of the Council as a non -voting member.
The Chair may only cast a vote in the event there is a tie of the membership.
2. Regional Members.
Six (6) members appointed by the State's political subdivisions to represent their
designated Texas Health and Human Services Commission ''HHSC" Regional Healthcare
1
Partnership (Regions) to ensure dedicated regional, urban, and rural representation on the
Council. The regional appointees must be from either academia or the medical profession
with significant experience in opioid interventions. The regional members are appointed as
follows:
a. One member representing Regions 9 and 10 (Dallas Ft -Worth);
b. One member representing Region 3 (Houston);
c. One member representing Regions 11, 12, 13, 14, 15, 19 (West Texas);
d. One member representing Regions 6, 7, 8, 16 (Austin -San Antonio);
e. One member representing Regions 1, 2, 17, 18 (East Texas); and
f. One member representing Regions 4, 5, 20 (South Texas).
All members of the Council are appointed to serve staggered two-year terms, with the terms of
members expiring February 1 of each year. A member may serve no more than two consecutive
terms, for a total of four consecutive years. For the first term, four (4) members (two (2) statewide
and two (2) for the subdivisions) will serve a three-year term. A vacancy on the Council shall be
filled for the unexpired term in the same manner as the original appointment. The Governor will
appoint the Chair of the Council who will not vote on Council business unless there is a tie vote,
and the subdivisions will appoint a Vice -Chair voting member from one of the regional members.
C. Governance
1. Administration
The Council is attached administratively to the Comptroller. The Council is an
independent, quasi -governmental agency because it is responsible for the statewide
distribution of the abatement settlement funds. The Council is exempt from the following
statutes:
a. Chapter 316 of the Government Code (Appropriations);
b. Chapter 322 of the Government Code (Legislative Budget Board);
c. Chapter 325 of the Government Code (Sunset);
d. Chapter 783 of the Government Code (Uniform Grants and Contract
Management);
e. Chapter 2001 of the Government Code (Administrative Procedure);
f. Chapter 2052 of the Government Code (State Agency Reports and Publications);
g. Chapter 2261 of the Government Code (State Contracting Standards and
Oversight);
h. Chapter 2262 of the Government Code (Statewide Contract Management);
2
i. Chapter 262 of the Local Government Code (Purchasing and Contracting
Authority of Counties); and
j. Chapter 271 of the Local Government Code (Purchasing and Contracting
Authority of Municipalities, Counties, and Certain Other Local Governments).
2. Transparency
The Council will abide by state laws relating to open meetings and public information,
including Chapters 551 and 552 of the Texas Government Code.
i. The Council shall hold at least four regular meetings each year. The Council may
hold additional meetings on the request of the Chair or on the written request of
three members of the council. All meetings shall be open to the public, and public
notice of meetings shall be given as required by state law.
ii. The Council may convene in a closed, non-public meeting:
a. If the Commission must discuss:
1. Negotiation of contract awards; and
2. Matters specifically exempted from disclosure by federal and
state statutes.
b. All minutes and documents of a closed meeting shall remain under seal,
subject to release only order of a court of competent jurisdiction.
3. Authority
The Council does not have rulemaking authority. The terms of each Judgment, Master
Settlement Agreement, or any Bankruptcy Settlement for Texas control the authority of
the Council and the Council may not stray outside the bounds of the authority and power
vested by such settlements. Should the Council require legal assistance in determining
their authority, the Council may direct the executive director to seek legal advice from the
Attorney General to clarify the issue.
11 • • - • 1 ! 1 - I -
The independent administrator will set aside up to one (1) percent of the settlement funds for the
administration of the Council for reasonable costs and expenses of operating the foregoing duties,
including educational activities.
1. Executive Director
The Comptroller will employ the executive director of the Council and other personnel as
necessary to administer the duties of the Council and carry out the functions of the Council.
The executive director must have at least 10 years of experience in government or public
administration and is classified as a Director V/1330 under the State Auditor's State
Classification. The Comptroller will pay the salaries of the Council employees from the
one (1) percent of the settlement funds set aside for the administration of the Council. The
Comptroller will request funds from the Texas Abatement Fund Point of Contact.
2. Travel Reimbursement
A person appointed to the Council is entitled to reimbursement for the travel expenses
incurred in attending Council duties. A member of the Council may be reimbursed for
actual expenses for meals, lodging, transportation, and incidental expenses in accordance
with travel rates set by the federal General Services Administration.
IL Duties/Roles
It is the duty of the Council to determine and approve the opioid abatement strategies and funding
awards.
. •• • '•I -H
The Council will develop the approved Texas list of abatement strategies based on but not limited
to the existing national list of opioid abatement strategies (see attached Appendix A) for
implementing the Texas Abatement Fund.
1. The Council shall only approve strategies which are evidence -informed strategies.
2. The Texas list of abatement strategies must be approved by majority vote. The majority
vote must include a majority from both sides of the statewide members and regional
members in order to be approved, e.g., at least four (4) of six (6) members on each side.
i • •. "11"1 We• I WHIN on •�
The Council will determine a single point of contact called the Abatement Fund Point of Contact
(POC) to be established as the sole entity authorized to receive requests for funds and approve
expenditures in Texas and order the release of funds from the Texas Abatement Fund by the
independent administrator. The POC may be an independent third party selected by the Council
with expertise in banking or financial management. The POC will manage the Opioid Council
Bank Account (Account). Upon a vote, the Council will direct the POC to contact the independent
administrator to release funds to the Account. The Account is outside the State Treasury and not
managed by any state or local officials. The POC is responsible for payments to the qualified
entities selected by the Council for abatement fund awards. The POC will submit a monthly
financial statement on the Account to the Council.
An independent auditor appointed by the Council will perform an audit on the Account on an
annual basis and report its findings, if any, to the Council.
. 1 • 1 • ' • •
4
The Council is the sole decision -maker on the funding allocation process of the abatement funds.
The Council will develop the application and award process based on the parameters outlined
below. An entity seeking funds from the Council must apply for funds; no funds will be awarded
without an application. The executive director and personnel may assist the Council in gathering
and compiling the applications for consideration; however, the Council members are the sole
decision -makers of awards and funding determination. The Council will use the following
processes to award funds:
Statewide Funds. The Council will consider, adopt and approve the allocation
methodology attached as Exhibit C, based upon population health data and prevalence
of opioid incidences, at the Council's initial meeting. Adoption of such methodology
will allow each Region to customize the approved abatement strategies to fit its
communities' needs. The statewide regional funds will account for seventy-five (75)
percent of the total overall funds, less the one (1) percent administrative expense
described herein.
2. Targeted Funds. Each Region shall reserve twenty-five (25) percent of the overall
funds, for targeted interventions in the specific Region as identified by opioid incidence
data. The Council must approve on an annual basis the uses for the targeted abatement
strategies and applications available to every Region, including education and outreach
programs. Each Region without approved uses for the targeted funds from the Council,
based upon a greater percentage of opioid incidents compared to its population, is
subject to transfer of all or a portion of the targeted funds for that Region for uses based
upon all Regions' targeted funding needs as approved by the Council on an annual basis.
3. Annual Allocation. Statewide regional funds and targeted funds will be allocated on an
annual basis. If a Region lapses its funds, the funds will be reallocated based on all
Regions' funding needs.
: 76631 ' •
The Council will establish an appeal process to permit the applicants for funding (state or
subdivisions) to challenge decisions by the Council -designated point of contact on requests for
funds or expenditures.
1. To challenge a decision by the designated point of contact, the State or a subdivision
must file an appeal with the Council within thirty (30) days of the decision. The Council
then has thirty (30) days to consider and rule on the appeal.
2. If the Council denies the appeal, the party may file an appeal with the state district court
of record where the final opioid judgment or Master Settlement Agreement is filed. The
Texas Rules of Civil Procedure and Rules of Evidence will govern these proceedings.
The Council may request representation from the Attorney General in these proceedings.
G
In making its determination, the state district court shall apply the same clear error
standards contained herein that the Council must follow when rendering its decision.
3. The state district court will make the final decision and the decision is not appealable.
4. Challenges will be limited and subject to penalty if abused.
5. Attorneys' fees and costs are not recoverable in these appeals.
0..., •r,
The Council may determine that a percentage of the funds in the Abatement Fund from the targeted
funds be used to develop an education and outreach program to provide materials on the
consequences of opioid drug use, prevention and interventions. Any material developed will
include online resources and toolkits for communities.
0