Ordinance No. 14,915ORDINANCE NO. 14,915
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS,
AUTHORIZING SUBDIVISION SETTLEMENT PARTICIPATION FORMS FOR
OPIOID SETTLEMENTS WITH JOHNSON & JOHNSON AND WITH
AMERISOURCEBERGEN, CARDINAL HEALTH AND MCKESSON; AND
ADOPTING THE TEXAS TERM SHEET AND ITS INTRASTATE ALLOCATION
SCHEDULE REGARDING PROPOSED OPIOID SETTLEMENTS; AND PROVIDING
FOR THE EFFECTIVE DATE THEREOF.
WHEREAS, the City of Baytown 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, these actions, conduct and misconduct have resulted in significant financial costs 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; and
WHEREAS, Special Counsel and the State of Texas have recommended that the City Council of
the City of Baytown support the adoption and approval of the Texas Term Sheet in its entirety; NOW
THEREFORE,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF BAYTOWN, TEXAS:
Section 1: That the City Council of the City of Baytown, Texas, hereby finds:
a. there is a substantial need for repayment of opioid-related expenditures and payment to
abate opioid-related harms in and about the City, and
b. it is in the best interest of the City of Baytown that the City support 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 in
order:
(1) to explore with the State of Texas and other political subdivisions potential
resolutions of the opioid litigation against pharmaceutical supply chain
participants; and
(2) to create an effective means of distributing any potential settlement funds obtained
under the 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 in this City and throughout Texas.
Section 2: That, based upon the findings herein, the City Council of the City of Baytown,
Texas, hereby authorizes the City Manager to execute the following:
Exhibit "A" Subdivision Settlement Participation Form for Johnson & Johnson; and
Exhibit `B" Subdivision Settlement Participation Form for AmerisourceBergen, Cardinal
Health and McKesson.
Exhibits "A" and `B" are attached hereto and incorporated herein for all intents and purposes
Section 3: That, based upon the findings herein, the City Council of the City of Baytown,
Texas, hereby approves the Texas Opioid Abatement Fund Council and Settlement Allocation Tenn Sheet,
which is attached hereto as Exhibit "C" and incorporated herein for all intents and purposes.
Section 4: This ordinance shall take effect immediately from and after its passage by the City
Council of the City of Baytown.
INTRODUCED, READ and PASSED by the affirmative vote of the City Council of the City of
Baytown this the 14d' day of October, 2021.
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ON CAPETILLO, Mayor
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EXHIBIT "A"
EXHIBIT K
Settlement Participation Form
Governmental Entity:
State:
Authorized Official:
Address 1:
Address 2:
City, State, Zip:
Phone:
Email:
The governmental entity identified above ("Governmental Entity"), in order to obtain and in
consideration for the benefits provided to the Governmental Entity pursuant to the Settlement
Agreement dated July 21, 2021 ("Janssen Settlement"), and acting through the undersigned
authorized official, hereby elects to participate in the Janssen Settlement, release all Released
Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the Janssen Settlement,
understands that all terms in this Election and Release have the meanings defined therein,
and agrees that by this Election, the Governmental Entity elects to participate in the
Janssen Settlement and become a Participating Subdivision as provided therein.
2. The Governmental Entity shall, within 14 days of the Reference Date and prior to the
filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has
filed.
3. The Governmental Entity agrees to the terms of the Janssen Settlement pertaining to
Subdivisions as defined therein.
4. By agreeing to the terms of the Janssen Settlement and becoming a Releasor, the
Governmental Entity is entitled to the benefits provided therein, including, if applicable,
monetary payments beginning after the Effective Date.
5. The Governmental Entity agrees to use any monies it receives through the Janssen
Settlement solely for the purposes provided therein.
6. The Governmental Entity submits to the jurisdiction of the court in the Governmental
Entity's state where the Consent Judgment is filed for purposes limited to that court's role
as provided in, and for resolving disputes to the extent provided in, the Janssen
Settlement.
7. The Governmental Entity has the right to enforce the Janssen Settlement as provided
therein.
8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for
all purposes in the Janssen Settlement, including but not limited to all provisions of
86
Section IV (Release), and along with all departments, agencies, divisions, boards,
commissions, districts, instrumentalities of any kind and attorneys, and any person in
their official capacity elected or appointed to serve any of the foregoing and any agency,
person, or other entity claiming by or through any of the foregoing, and any other entity
identified in the definition of Releasor, provides for a release to the fullest extent of its
authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally,
and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be
brought, filed, or claimed, or to otherwise seek to establish liability for any Released
Claims against any Released Entity in any forum whatsoever. The releases provided for
in the Janssen Settlement are intended by the Parties to be broad and shall be interpreted
so as to give the Released Entities the broadest possible bar against any liability relating
in any way to Released Claims and extend to the full extent of the power of the
Governmental Entity to release claims. The Janssen Settlement shall be a complete bar to
any Released Claim.
9. In connection with the releases provided for in the Janssen Settlement, each
Governmental Entity expressly waives, releases, and forever discharges any and all
provisions, rights, and benefits conferred by any law of any state or territory of the
United States or other jurisdiction, or principle of common law, which is similar,
comparable, or equivalent to § 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that
the creditor or releasing party does not know or suspect to exist in his or
her favor at the time of executing the release that, if known by him or her,
would have materially affected his or her settlement with the debtor or
released party.
A Releasor may hereafter discover facts other than or different from those which it
knows, believes, or assumes to be true with respect to the Released Claims, but each
Governmental Entity hereby expressly waives and fully, finally, and forever settles,
releases and discharges, upon the Effective Date, any and all Released Claims that may
exist as of such date but which Releasors do not know or suspect to exist, whether
through ignorance, oversight, error, negligence or through no fault whatsoever, and
which, if known, would materially affect the Governmental Entities' decision to
participate in the Janssen Settlement.
10. Nothing herein is intended to modify in any way the terms of the Janssen Settlement, to
which Governmental Entity hereby agrees. To the extent this Election and Release is
interpreted differently from the Janssen Settlement in any respect, the Janssen Settlement
controls.
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I have all necessary power and authorization to execute this Election and Release on behalf of
the Governmental Entity.
Signature:
Name:
Title:
Date:
EXHIBIT "B"
EXHIBIT K
Subdivision Settlement Participation Form
Governmental Entity:
State:
Authorized Official:
Address 1:
Address 2:
City, State, Zip:
Phone:
Email:
The governmental entity identified above ("Governmental Entity"), in order to obtain and
in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement
Agreement dated July 21, 2021 ("Distributo►- Settlement"), and acting through the undersigned
authorized official, hereby elects to participate in the Distributor Settlement, release all Released
Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the Distributor Settlement,
understands that all terms in this Participation Form have the meanings defined therein,
and agrees that by signing this Participation Form, the Governmental Entity elects to
participate in the Distributor Settlement and become a Participating Subdivision as
provided therein.
2. The Govertunental Entity shall, within 14 days of the Reference Date and prior- to the
filing of the Consent Judgment, secure the dismissal with prejudice of any Released
Claims that it has filed.
3. The Governmental Entity agrees to the terms of the Distributor Settlement pertaining to
Subdivisions as defined therein.
4. By agreeing to the terms of the Distributor Settlement and becoming a Releasor, the
Governmental Entity is entitled to the benefits provided therein, including, if applicable,
monetary payments beginning after the Effective Date.
5. The Governmental Entity agrees to use any monies it receives through the Distributor
Settlement solely for the purposes provided therein.
6. The Governmental Entity submits to the jurisdiction of the court in the Governmental
Entity's state where the Consent Judgment is filed for purposes limited to that court's role
as provided in, and for resolving disputes to the extent provided in, the Distributor
Settlement. The Governmental Entity likewise agrees to arbitrate before the National
Arbitration Panel as provided in, and for resolving disputes to the extent otherwise
provided in, the Distributor Settlement.
K-1
7. The Governmental Entity has the right to enforce the Distributor Settlement as provided
therein.
8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for
all purposes in the Distributor Settlement, including, but not limited to, all provisions of
Part XI, and along with all departments, agencies, divisions, boards, commissions,
districts, instrumentalities of any kind and attorneys, and any person in their official
capacity elected or appointed to serve any of the foregoing and any agency, person, or
other entity claiming by or through any of the foregoing, and any other entity identified in
the definition of Releasor, provides for a release to the fullest extent of its authority. As a
Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably
covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or
claimed, or to otherwise seek to establish liability for any Released Claims against any
Released Entity in any forum whatsoever. The releases provided for in the Distributor
Settlement are intended by the Parties to be broad and shall be interpreted so as to give
the Released Entities the broadest possible bar against any liability relating in any way to
Released Claims and extend to the full extent of the power of the Governmental Entity to
release claims. The Distributor Settlement shall be a complete bar to any Released
Claim.
9. The Governmental Entity hereby takes on all rights and obligations of a Participating
Subdivision as set forth in the Distributor Settlement.
10. In connection with the releases provided for in the Distributor Settlement, each
Governmental Entity expressly waives, releases, and forever discharges any and all
provisions, rights, and benefits conferred by any law of any state or territory of the
United States or other jurisdiction, or principle of common law, which is similar,
comparable, or equivalent to § 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that
the creditor or releasing party does not know or suspect to exist in his or
her favor at the time of executing the release, and that if known by him or -
her would have materially affected his or her settlement with the debtor or
released party.
A Releasor may hereafter discover facts other than or different from those which it
knows, believes, or assumes to be true with respect to the Released Claims, but each
Governmental Entity hereby expressly waives and fully, finally, and forever settles,
releases and discharges, upon the Effective Date, any and all Released Claims that may
exist as of such date but which Releasors do not know or suspect to exist, whether
through ignorance, oversight, error, negligence or through no fault whatsoever, and
which, if known, would materially affect the Governmental Entities' decision to
participate in the Distributor Settlement.
K-2
11. Nothing herein is intended to modify in any way the terms of the Distributor Settlement,
to which Governmental Entity hereby agrees. To the extent this Participation Form is
interpreted differently from the Distributor Settlement in any respect, the Distributor
Settlement controls.
I have all necessary power and authorization to execute this Participation Form on behalf of the
Governmental Entity.
Signature:
Name:
Title:
Date:
K-3
EXHIBIT licit
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'
2
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.
3
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
s
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 Tenn Sheet should alter or change any Subdivision's
rights to pursue its own claim. Rather, the intent of this Texas Tenn Sheet
is to join all parties to disburse settlement proceeds from one or more
defendants to all parties participating in that settlement within Texas.
S. 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
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
7
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
:
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.
0
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
10
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 Phannaceutical 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 Tenn 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.
13
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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 fiends 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 pharmaccuticals.
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
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).
I
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 teen, four (4) members (two (2) statewide
and two (2) for the subdivisions) will serve a three-year tern. A vacancy on the Council shall be
filled for the unexpired tenn 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.
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.
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
3
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.
II. Duties/Roles
It is the duty of the Council to determine and approve the opioid abatement strategies and funding
awards.
i� a -� . Me, M N-1
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.
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 fiords 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 fiend awards. The POC will submit a monthly
financial statement on the Account to the Council.
FORMITMOT,
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.
O�� IM- 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 fiends 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 fiords:
1. 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 fiends 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 fiends 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 fiends will be reallocated based on all
Regions' funding needs.
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.
5
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.
FIEFFITRETW
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
EXHIBIT B
Exhibit B:'ltmicipal Area Allocations: 15°1c of Total (S150 million
(County numbers refer to distribution to the county governments after payment to cities within
county borders has been made. Minnnuin distribution to each count), Is S1000.)
Municipal Area
Allocation
Municipal Area
Allocation
Abbott
$688
Lakeport
$463
Abernathy
$110
Lakeside
$4,474
Abilene
$563,818
Lakeside City
$222
Ackerly
$21
Lakeview
$427
Addison
S58,094
Lakeway
$31,65 7
Adrian
$181
Lakewood Village
$557
Agua Dulce
$43
Lamar County
$1=11,598
Alamo
$22,121
Lamb County
$50,681
Alamo Heights
$28,198
Lalnesa
$29,656
Alba
$3.196
Lampasas
$28,211
Albauv
S180
Laiupa&-is Coin►ty
$42,818
Alecto
S331
Lancaster
$90,653
Alice
$71,291
Laredo
S763,174
Allen
$315,081
Latexo
$124
Ahna
$1,107
Lavaca Co►u►t.y
$45,973
Alpine
$29,686
Lavon
$7.435
Alto
$3.767
Lawn
$58
Alton
S 11,540
League City
$302,418
Alvarado
$29,029
Leakey
$256
Alvin
S 113,962
Leander
$88,641
Alvord
$358
Leary
$797
Amarillo
$987,661
Lee Comity
$30,457
Alnes
$5.571
Lefors
$159
Amherst
$22
Leon County
$67,393
Anahuac
S542
Leon Valley
$23,258
Anderson
$19
Lcona
$883
Anderson County
$268,763
Leonard
$8.505
Andrews
$18,983
Leroy
$176
Andrews County
$37,606
Levelland
$46,848
Angcl►na County
$229,956
Lewisville
S382,094
Angleton
$62,791
Lexington
$2.318
Angus
S331
Liberty
$72,343
Anna
$9.075
Liberty County
S531,212
Annetta
$5.956
Liberty Hill
$2,780
Annetta North
$34
Limestone County
$135,684
(Table continues on multiple pages below
Annetta South
5602
Lincoln Park
$677
Annona
5738
Lindale
$2-1,202
Anson
$ ,.13-1
Linden
$3.661
Anthony
$4.514
Lindsay
$1.228
Anton
$444
Lipan
$44
Appleby
$1.551
Lipscomb Comity
$10,132
Aquilla
5208
Little Ehn
$69,326
Aransas Comity
S266,512
Little River -Academy
$798
Aransas Pass
S57,813
Littlefield
$7.678
Archer City
$10,554
Live Oak
$32,740
Archer County
S45,534
Live Oak County
$39,716
Arcola
$7.290
Liverpool
$1.435
Arg1-lc
511,406
Livingston
$73,165
Arlington
$735,803
Llano
$23,121
Armstrong County
$974
Llano County
S 115,647
Arp
$2.009
Lockhart
$49,050
Asherton
S 112
Lockney
$3.301
Aspernnont
$9
Log Cabin
$1.960
Atascosa County
$176,903
Lomcta
$1.176
Athens
$105,942
Lone Oak
$1.705
Atlanta
S30,995
Lone Star
$8.283
Aubrey
S 15,141
Longview
5482,254
Aurora
$1.849
Loraine
$188
Austin County
$76,030
Lorena
$3.390
Austin
$4,877,716
Lorenzo
$11,358
Austwel l
$109
Los Fresnos
$11,185
Avery
S138
Los Indios
$159
Avinger
$1.115
Los Ybanez
SO
Azle
$32,213
Lott
$1.516
Bailey
$950
Lovelady
$2-19
Bailey Count),
$15,377
Loving Comity
$1,000
Bailey's Prairie
$5.604
Lowry Crossing
$783
Baird
$2.802
Lubbock
$319,867
Balch Springs
S27,358
Lubbock County
$1.379,719
Balcones I eihhts
S23,811
Lucas
$5.266
Ballinger
$9.172
Lueders
$508
Balmorhea
$63
Lufkin
$281,592
Bandera
$2,893
Luling
$29,421
Bandera County
$86,815
Lumberton
$36,609
Bangs
$3.050
Lyford
$3.071
Pay(] •!
Bardwell
$362
Lyiui ComON
$6.275
Barry
S200
Lytle
$1.223
Barstow
$61
IN fabaiik
$19,443
Bartlett
$3.37-1
Madison County
$49,492
Bartonville
$8.887
Madisonville
$11,458
Bastrop
$46,320
Magnolia
$26,031
Bastrop County
$3-13,960
Nfalakoff
$12,614
Bay City
$57,912
Malone
$439
Baylor County
$29,832
Manor
$12,499
Bayou Vista
$6.240
Mansfield
S150,788
Bayside
S2-12
NIanvel
$12,305
Baytown
$216,066
Marble Falls
$371039
Bayview
$41
Marfa
$65
Beach City-
$12,505
Marietta
$338
Bear Creek
$906
Marion
$275
Beasley
$130
Marion County
$54,728
Beaumont
S683,010
Marlin
$21,634
Beckville
$1.247
Marquez
$1,322
Bedford
S94,314
Marshall
$108,371
Bedias
$3.475
Mart
$928
Bee Cave
$12,863
Martin County
$10,862
Bee County
$97,844
Martindale
$2.437
Beeville
824,027
Mason
$777
Bell County
$650,748
Mason County
$3.134
Bellaire
$41,264
Matador
$1,203
Bellevue
$56
Matagorda County
$135,239
Bellmead
$14,487
Mathis
$15,720
Bells
$1.891
\laud
$423
Belville
$7.488
Maverick County
$115,919
Belton
$72,680
'N'laypearl
$986
Benavides
$152
McAllen
$364,424
Benbrook
$43,919
McCamey
$542
Benjamin
$951
McGregor
$9,155
Berryville
$1-1,379
McKinney
$450,383
Bertram
S182
McLean
$14
Beverly Hills
$4.336
INIcLendon-Chisholm
$411
Bevil Oaks
$549
McCulloch County
$20,021
Besar County
$7,007,152
Mclennan County
S529,641
Big Lake
$517
Mcmullen County
$1.000
Big Sandy
$4.579
Meadow
$1.121
Pap t
Big Spring
$189,928
Meadowlakes
$905
Big Wells
$236
Meadows Place
$18,148
Bishop
$8.213
lfedi►►a Comity
$48,355
Bishop Hills
$323
1llegargel
$611
Blackwell
$31
Melissa
$15,381
Blanco
$6.191
Nlelvin
$345
Blanco County
849,223
Memphis
$7.203
Blanket
$1.17
Illenard
$991
Bloo►nhurg
$1.010
Rlenard Comity
$1-1,717
Bloon►ing Grove
$352
Mercedes
$21,441
Blossom
S 198
Meridian
$3.546
Blue Mound
$2.888
Merkel
$10,117
Blue Ridge
$1.345
Mertens
$239
Blum
$1.622
Mertzon
$29
Boerne
S45,576
Mesquite
$310,709
Bogata
$3.649
\lexia
$21,096
Bonham
8100,909
Miami
$455
Bonney
$2.510
Midland County
$279,927
Booker
$1.036
Midland
$521,849
Borden County
$1.000
Midlothian
$95.799
Borger
$69,680
Midway
$78
Bosque County
S71,073
11lilam County
$97,386
Bovina
8173
Milano
$904
Bowie
$83,620
N.-lildred
$286
Bowie County
$233,190
Miles
$93
Boyd
$6.953
Milford
$6.177
Brackettville
S8
Miller's Cove
$9 7
Brady
$27,480
Nlillican
$417
Brazoria
$11,537
'Mills County
$19,931
Brazoria County
$1,021,090
Nlillsap
$34
Brazos Bend
$462
Mineola
$48,719
Brazos Country
$902
Mineral Wells
$92,061
Brazos County
$342,087
Mingus
$189
Breckenridge
$23,976
Mission
$124,768
Bremond
$5.554
\lissouri Citv
$209,633
Brenham
S54,750
\litchell County
$20,850
Brewster County
$60,087
N-lobeetic
$52
Briarcliff
S572
Mobile City
$2.034
Brlaroaks
$57
Ivlonahans
$5,849
Bridge City
$80,756
Mont Belvieu
$19,669
Pa!v 4
Bridgeport
$33,301
Montague County
$94,796
Briscoe County
$977
Montgomery
$1,884
Broaddus
$31
Montgol►►ery Count,
$2.700,911
Bronte
$99
Moody
$828
Brooks County
$20,710
Moore County
$40,627
Brookshire
$6.406
Moore Station
$772
Brookside Village
$1.110
Moran
$50
Brown County
$193,417
Morgan
$605
Browndell
$152
Morgan's Point
$37105
Brownfield
$14,452
Morgan's Point Resort
$8,024
Brownsboro
$3.176
Morris County
$53,328
Brownsville
$425,057
IMorton
$167
Brownwood
$166,572
Motley County
$3,344
Bruceville-Eddy
$1,692
Moulton
$999
Bryan
$246,897
Mount. Cahn
$605
Bryson
$1,228
Mount Enterprise
$1,832
Buckholts
$1 J 13
Mount Pleasant
$65,684
Buda
$10,784
Mount Vernon
$6,049
Buffalo
$11,866
Mountain City
$1,548
Buffalo Cap
$88
Muenster
$4,656
Buffalo Springs
$188
Muleshoe
$4,910
Bullard
$7,487
Mullin
$384
Bulverdc
$14,436
Munday
$2,047
Bunker Hill Village
S472
Murchison
$2,302
Burkburnett
$37,844
Murphy
$51,893
Burke
$1.114
Mustang
$7
Burleson Count-
$70,244
Mustang Ridge
$2,462
Burleson
$151,779
Nacogdoches
$205,992
Burnet
$33,345
Nacogdoches County
$198,583
Burnet County
$189,829
Naples
$4,224
Burton
$937
Nash
$7,999
Byers
$77
Nassau Bay
$11,247
Bynum
$380
Natalia
$625
Cactus
$4.779
Navarro
$334
Caddo Mills
$43
Navarro County
$103,513
Caldwell
$18,245
Navasota
$37,676
Caldwell County
$86,413
Nazareth
$124
Calhoun County
$127,926
Nederland
$44,585
Callahan County
$12,894
Needville
$10,341
Callisburg
$101
Nevada
$237
Payc 5
Calvert
S772
New Berlin
S-1
Cameron
S 11,091
New Boston
$6.953
Cameron County
$537,026
New Braunfels
$3017,313
Camp County
528,8.51
New Chapel Hill
$288
Camp Wood
$422
New Deal
$338
Campbell
$1.116
New Fairview
$2.334
Canadian
$1.090
New Hone
$9
Caney City
$2.005
New Hope
$1.02-1
Canton
S56,734
New London
$4.129
Canyon
526,251
New Summerfield
$442
Carbon
$620
New Waverly
$2.562
Carl's Corner
$48
Newark
$520
Carmine
$385
Newcastle
$914
Carrizo Springs
$1.671
Newton
$6.102
Carrollton
5310,255
Newton County
5158,006
Carson County
529,493
Neylandville
$163
Carthage
$18,927
Niederwald
$16
Cashion Community
$322
Nixon
$2.283
Cass County
$93,155
Nocona
$16,536
Castle Hills
$12,780
Nolan County
$50,262
Castro County
$4.420
Nolanville
$4.247
Castroville
$4.525
Nome
$391
Cedar Hill
570,127
Noonday
$226
Cedar Park
$185,567
Nordhcim
$697
Celeste
$1.280
Normangee
$6,192
Celina
$18,283
North Cleveland
$105
Center
$58,838
North Richland Hills
$146,419
Centerville
5385
Northlake
$8.905
Chambers County
-S153.188
Novice
$76
Chandler
S 17,364
Nucces Count V
$1,367,932
Channing
$2
O'Brien
$76
Charlotte
$4,257
O'Donnell
$27
Cherokee County
$156,612
Oak Grove
$2,769
Chester
$1.174
Oak Leaf
$612
Chico
$2.928
Oak Point
$9.011
Childress
837,916
Oak Ridge
$358
Childress County
$50,582
Oak Ridge North
$33,512
Chillicothe
$172
Oak Valley
$7
China
$522
Oakwood
$148
China Grove
$598
Ochiltree County
$15,476
Pagr G
Chireno
$1.568
Odein
$7.420
Christine
$354
Odessa
$559,163
Cibolo
$13,690
Oglesby
$29
Cisco
$7.218
Old River-NN'infree
$21,653
Clarendon
$114
Oldham County
$10,318
Clarksville
$20,891
Olmos Park
$9.801
Clarksville City
$ 5<1
Olnev
$6.088
Claude
$26
Olton
$1.197
Clay County
$72,050
Onialia
$4.185
Clear Lake Shores
$6.682
Onalaska
$31,654
Cleburne
$228,184
Opdyke \Vest
$479
Cleveland
$96,897
Orange
$311,339
Clifton
$9.939
Orange County
$689,818
Clint
$375
Orange Grove
$1.677
Clute
$51,350
Orchard
$867
Clyde
$17,287
Ore City
$6.806
Coalion►a
$2.291
Overton
$7.900
Cochran County
$3.389
Ovilla
$13,391
Cockrell Hill
$512
Oyster Creek
$9,633
Coffee City
$1.087
Paducah
$125
Coke County
$5.522
Paint Rock
$141
Coldspring
$447
Palacios
$14,036
Coleman
$5.442
Palestine
$178,009
Coleman County
$4.164
Palisades
$240
College Station
$258,147
Palm Valley
$1.918
Colleyville
$46,049
Palmer
$12,666
Collin County
$1,266,721
Palmhurst
$4,660
Collingsworth County
$19,234
Pahmvien•
$7.577
Collinsville
$1.831
Palo Pinto County
-S124,621
Colmesneil
$2.211
Pampa
$67,227
Colorado City
$8,405
Panhandle
$91536
Colorado County
$49,084
Panola County
$80,699
Columbus
$6,867
Panorama Village
$1,292
Comal County
$396,142
Pantego
$12,898
Comanche
$16,503
Paradise
$52
Comanche County
$50,964
Paris
$201,180
Combes
$1.710
Parker
$10,307
Combine
$1,892
Parker County
$476,254
Commerce
$33,869
Parmer County
$15,866
Como
$415
Pasadena
$356,536
Pay 7
Coiicho County
$3.859
Pattison
$1.148
Conroe
S466,671
Patton Village
$9.268
Converse
$27,693
Payne Springs
$1.770
Cooke County
$200,451
Pearland
$333,752
Cool
$731
Pearsall
$11,570
Coolidge
$243
Pecan Gal)
$719
Cooper
$362
Pecan Hill
$229
Coppell
$86,593
Pecos
$7.622
Copper Carryon
51189
Pecos Comity
$46,997
Copperas Cove
$ 1:33,492
Pelican Bay
$1.199
Corinth
$75,298
Penelope
$415
Corpus Christi
$1,812,707
Penitas
$312
Corral City
8143
Perryton
$23,364
Corrigan
$21,318
Petersburg
$1.691
Corsicana
S87,310
Petrolia
$17
Coryell County
S123,659
Petronlla
S5
Cottle County
$875
Pflugcryille
$86,408
Cottonwood
S289
Pharr
$144,721
Cottonwood Shores
$1.203
Pilot Point
$11,613
Cotulla
$1.251
Pine Forest
$3.894
Coupland
5266
Pine Island
$3.141
Cove
S387
Pinchurst
$32,671
Covington
S519
Pincland
$4.138
Coyote Flats
$1.472
Piney Point Village
$15,738
Crandall
$12,094
Pittsburg
$20,526
Crane
$10,599
Plains
$129
Crane County
$26,146
Plainview
$60,298
Cranfills Gap
S128
Plano
$1.151,608
Crawford
$383
Pleak
$270
Creedinoor
$16
Pleasant Valley
$308
Cresson
$1.086
Pleasanton
$29,011
Crockett
$23,403
Plum Grove
$258
Crockett County
$18,210
Point
$1,519
Crosby County
$18,388
Point Blan1:
$355
Crosbvton
$1.498
Point Comfort
$447
Cross Plains
$4.877
Point Venture
$588
Cross Roads
S244
Polk County
$370,831
Cross Timber
$542
Ponder
$1.282
Crowell
$6.335
Port Aransas
$31,022
Crowley
$22,345
Port Arthur
$367,945
Pap: 8
Crystal City
S19,412
Port Isabel
$9.802
Cuero
$24,689
Port, Lavaca
$11,752
Ctllbersoll County
S789
Port Neclles
$38,849
Cunlby
$5.320
Portland
$76,517
Clmey
$606
Post.
$2,332
Cushing
$1.120
Post (yak Bend City
$1.034
Cut and Shoot
$2.141
Pot eet
$6.767
DISH
$19
Poth
$3.974
Daingerfield
812,476
Potter County
S371,701
Daisetta
$5.370
I'ottsboro
$12,302
Dalhart
811,609
Powell
$110
Dalla►n County
S21,686
11,03,1101-
$1.180
Dallas County
S8,538.291
Prairie View
$7.600
Dallas
S2,999.902
Premont
$3.321
Dalworthington Gardens
$6.060
Presidio
$148
Danbury
$4.231
Presidio County
$787
Darrottzett
$101
Primera
$2,958
Dawson
S600
Princeton
$19,245
Dawson County
$46,911
Progreso
$8,072
Dayton
$47,122
Progreso Lakes
$39
Dayton Lakes
$38
Prosper
$22,770
De Kalb
$1.035
Providence Village
$508
De Leon
$8.218
Putnam
$14
Dc Witt County
$68,895
Pyote
$22
DeCordova
S13,778
Quanah
$207
DeSoto
S72,400
Queen City
$4.837
Deaf Smith County
S34,532
Quinlan
$7,304
Dean
S141
Quintana
$492
Decatur
S56,669
Quitaque
S8
Deer Park
S49,388
Quitman
$15,619
Del Rio
$59,056
Rains County
$53,190
Dell City
$15
Ralls
$3,967
Delta County
$30,584
Rancho Viejo
$3.836
Denison
S210,426
Randall County
S278,126
Der►ton
8458,33-1
Ranger
$12,186
Denton County
$1,132,298
Rankin
$1.613
Denver City
$2.104
Hansom Canyon
$930
Deport
$42
Ravenna
$685
Detroit
S965
Raymondville
$ 7.466
Devers
8191
Reagan Comity
$25,215
Pagc 9
Devine
$4.354
Real Count,,
$5.073
Diboll
$25,533
Red Lick
$23
Dickens
$71
Red Oak
$26,843
Dickens County
$1.873
Red River County
$29,306
Dickinson
$83,683
R.edwater
$1,058
Dilley
$2.633
Reeves County
$103,350
Dimmit Comity
533,294
Refugio
$8,839
DiimYiitt
$1.012
Refugio County
$46,216
Dodd City
$1.211
Reklaw
$1.136
Dodson
$447
Reno
$3.791
Domino
$196
Reno
$11,164
Donley County
$22,370
Retreat
$52
Donna
$13,798
Rhome
$121285
Dorchester
S231
Rice
$1,972
Double Oak
$4.765
Richardson
$260,315
Douglassville
5574
Richland
$210
Dripping Springs
$811
Richland Hills
$24,438
Driscoll
$39
Richland Springs
$21,234
Dublin
514,478
Richmond
$77,606
Dumas
526,229
Richwood
$121112
Duncanville
558,328
Riesel
$1,118
Duval County
549,109
Rio Bravo
$8,548
Eagle Lake
$4.882
Rio Grande City
$25,947
Eagle Pass
$56,005
Rio Hondo
$37550
Early
$14,838
Rio Vista
$4,419
Earth
$242
Rising Star
$1,933
East Bernard
$5,554
River Oaks
$11,917
East Mountain
$2,494
Riverside
$858
East Tawakoni
$2.723
Roanoke
$275
Eastland
$15,896
Roaring Springs
$461
Eastland County
$52,275
Robert Lee
$85
Easton
5329
Roberts County
$547
Ector
$11108
Robertson County
$44,642
Ector County
$480,000
Robinson
$18,002
Edcouch
$4.101
Robstown
$40,154
Eden
$497
Roby
$428
Edgecliff Village
$2,232
Rochester
$674
Edgewood
$13,154
Rockdale
$20,973
Edinburg
$120,884
Rockport
$54,253
Edmonson
$136
R.ocksprings
$25
Page 10
Edna
$18,194
Rockwall
$114,308
Edom
$2,149
Rockwall County
$168,820
Edwards County
$975
Rocky Mound
$280
El Cainpo
$31,700
Rogers
$3,818
El Cenizo
$621
R.ollingwood
$4,754
El Lago
$5.604
R.onia
$16,629
El Paso
$1,224,371
Rosman Forest
$8,610
El Paso County
$2,592,121
Ropesville
$2,122
Eldorado
$50
Roscoe
$778
Electra
$15,716
Rose City
$4,012
Elgin
$26,284
Rose Hill Acres
$2,311
Elkhart
$301
Rosebud
$1,489
Ellis County
$315,372
Rosenberg
$126,593
Elmendorf
$746
Ross
$147
Elsa
$7.720
Rosser
$549
Einhouse
$83
Rotan
$1,493
Emory
$3,878
Round Mountain
$454
Enchanted Oaks
$1.299
Round Rock
$475,992
Encinal
$1.515
Round Top
$140
Ennis
$81,839
Rowlett
$99,963
Erath County
$102,616
Roxton
$47
Escobares
$40
Royse City
$23,494
Estellinc
$909
Rule
$800
Euless
$92,824
Runaway Bay
$67931
Eureka
$334
Runge
$255
Eustace
$2.089
Runnels County
$33,831
Evant
$2,068
Rusk
$17,991
Everman
$7.692
Rusk County
$151,390
Fair Oaks Ranch
$8.077
Sabinal
$1,811
Fairchilds
$81
Sabine County
$46,479
Fairfield
$1,245
Sachse
$23,400
Fairview
$32,245
Sadler
$925
Falfurrias
$21221
Saginaw
$31,973
Falls City
$41
Salado
$3,210
Falls County
$34,522
San Angelo
$536,509
Fannin County
$131,653
San Antonio
$4,365,416
Farmers Branch
$94,532
San Augustine
$25,182
Farmersville
$10,532
Sall Augustine County
$37,854
Farwell
$343
Sall Benito
$40,015
Fate
$3.473
San Diego
$11,771
Pails I
Fayette. County
$92,440
Sall Fllzarlo
$7,831
Fayetteville
$391
San Felipe
$1,498
Ferris
S13,873
San .Jacillto County
5197,398
Fisher County
$5.518
Sall ,Juall
$28,845
Flatonia
$5.661
San Lea,nna
$36
Florence
$3.949
San Marcos
$325,688
Floresville
$21,699
Sall Patricio
$4,213
Flower Mound
$215,256
San Patricio County
$271,916
Floyd County
$9.049
Sall Perlita
$2,219
Floydada
$6.357
San Saba
$10,057
Foard County
$5.764
San Saba County
$17,562
Follett
$212
Sanctuary
$17
Forest. Hill
$26,132
Sandy Oaks
$9,863
Forney
$80,112
Sandy Point
$1,637
Forsan
$576
Sanford
$308
Fort Bend County
$1,506,719
Sanger
$22,237
Fort Stockton
$4.411
Sansoln Park
$223
Fort Worth
$2,120,790
Santa Anna
$329
Franklin
$3.931
Santa Clara
$87
Franklin County
$25,783
Santa Fe
$33,272
Frankston
5274
Santa Rosa
$27138
Fredericksburg
$56,486
Savoy
$27349
Freeport
$72,973
Schertz
$60,110
Freer
$3.271
Schleicher County
$5,695
Freestone County-
$50,495
Schulenburg
$2,560
Friendswood
$140,330
Scotland
$148
Frio County
$19,954
Scottsville
$708
Friona
$2,848
Scurry
$17110
Frisco
$405,309
Scurry County
$73,116
Fritch
$4,548
Seabrook
$30,270
Frost
5321
Seadrift
$991
Fruitvale
$2.344
Seagoville
$17,106
Fulshear
$5,272
Seagraves
$7,531
Fulton
$1.602
Scaly
$20,637
Gaines County
$54,347
Seguin
5376,538
Gainesville
$153,980
Selma
$22,429
Galena Park
$13,093
Seminole
$16,092
Gallatin
$1.253
Seven Oaks
$3,917
Galveston
$488,187
Seven Points
$7,452
Galveston County
$1,124,093
Seymour
$141218
Page 12
Ga►►ado
$5.510
Shackelford Comity
$1.288
Garden Ridge
S11,351
Shady Shores
$59.1
Garland
$420.2-1-1
Shallowester
$1.907
Garrett
$2.510
Shamrock
$4.328
Garrison
$3,555
Shavaim Park
$3.178
Gary City
$450
Shelby County
$109,925
Garza Comity
$8.9-14
Shenandoah
$4 7,122
Gatesville
U6,994
Shepherd
$1.17
George West
$6.207
Sherman
5330,585
Georgetown
$225,896
Sherman County
$7.930
Gholso►►
$1.505
Shiner
$-1.042
Giddings
$12,674
Shoreacres
$958
Gillespie Comity
S63,191
Silsbee
$66,442
Gilmer
S33,951
Silverton
$14
Gladewater
$24,638
Simonton
$1.906
Glasscock Count),
$1.000
Sinto►►
$23,658
Glen Rose
$540
Skellytowii
$400
Glenn Heights
$16,593
Slaton
$154
Godley
$3.11 ci
Smiley
$655
Goldsmith
$677
Smith County
$758,961
Goldthwaite
$1.225
Smitliville
$17,009
Goliad
$3.563
Smyer
$300
Goliad County
S34,660
Snook
$1.422
Golinda
$100
Snyder
$9,018
Gonzales
$14,882
Socorro
$11,125
Gonzales County
$33,230
Somerset
$1,527
Goodlow
$221
Somervell County
$57,076
Goodrich
$9.6-13
Somerville
$3.806
Gordon
S365
Sonora
$7.337
Goree
S749
Sour Lake
$17,856
Gorman
$3.107
South Houston
$25,620
Graford
$23
South Mountain
$154
Graham
S235,428
South Padre Island
$30,629
Granbury
$71,735
Southlake
$70,846
Grand Prairie
54-15,439
Southmayd
$ 7.096
Grand Saline
$36,413
Southside Place
$885
Grandfalls
$65
Spearman
$1-1,000
Grandview
$6,600
Splendora
$7.756
Granger
$2.741
Spofford
$7
Granite Shoals
$11,834
Spring Vallee Village
$16,404
Pug(' 1 '1
Granjeno
$43
Sprim lake
$3
Grapeland
$7.287
Springt own
$1-1,244
Grapevine
$129,195
Spur
$427
Gray Comity
$65,884
St. Hedwig
$111
Grays Prairie
$17
St. Jo
$7.360
Grayson County
$539,083
St. Patel
$21
Greenville
$203,112
Stafford
$75,145
Gregg Comity
$2-13,744
Stagecoach
$3.036
Gregory
$1691
Stainford
$398
Grey Forest
$474
Stanton
$3.838
Grimes Comity
S9-1,878
Staples
$19
Groesbeck
$5.745
Star Harbor
$151
Groom
$965
Starr County
$99,896
Groves
$40,752
Stephens Coimty
$35,244
Groveton
$8.827
Stephenville
$83,472
Gruver
$1.166
Sterling Cite
$62
Guadalupe County,
$146,824
Sterling County
$939
Gun Barrel City
$36,302
Stinnett
$4.097
Gunter
$4.609
Stockdale
$741
Gustine
$34
Stonewall County
$1.822
Hackberry
$94
Stratford
$8.378
Hale Center
$6.042
Strawn
$987
Hale County
$79,150
Strectman
S5
Hall County
$8.933
Sudan
$32
Hallettsville
$6.895
Sugar Land
$321,561
Hallsburg
$272
Sullivan City
$6.121
Hallsville
$10,239
Sulphur Springs
S 124,603
Haltom City
$71,800
Sun Valley
$4
Hamilton
$3.581
Sundown
$2.592
Hamilton County
$66,357
Sunnyvale
$3.248
Hamlin
$1656
Sunray
$2,571
Hansford County
$16,416
Sunrise Beach Village
$2,083
Happy
S327
Sunset. Valley
$9.425
Hardeman County-
$15,219
Surfside Beach
$6.530
Hardin
S100
Sutton County
$6.541
Hardin County
S379,800
Sweeny
$4.503
Harker Heights
$113,681
Sweetwater
$68,248
Harlingen
$165,429
Swisher Comity
$7,251
Harris County
$14.966,202
Taft
$5.861
Harrison County
$185,910
Tahoka
$430
Pogc 14
Hart
$86
TaIco
$372
Hartlev Count v
S786
TaIty
$9.124
Haskell
S10,829
Tarrant County
S6.171,159
Haskell County
$22,011
Tatutn
$972
Haslet
$1,908
Taylor
$57,9.15
Hawk Cove
$674
Taylor Comity
$351,078
Hawkins
$7.932
Taylor Lake Village
$-112
Hawley
8931
Taylor Landi►►g
$153
Hays
8506
Tea-,i►e
$1.714
Hays County
S529,489
Telivacana
$12
Hearne
S 16,824
Temple
$280,747
Heath
$28,751
Tenaha
$4,718
Hebron
S68 7
Terrell
$148,706
Hedley
$70
Terrell County
$5.737
Hed-,vig Village
S13,067
Terrell Hills
$9.858
Helotes
S 15,790
Terry County
$25,423
Hemphill
$8.035
Texarkana
S 192,094
Hemphill Comity
$14,394
Texas City
$298,702
Hempstead
$21,240
Tcalionia
$156
Henderson
S59,966
Tcxlinc
$865
Henderson County
$327,965
The Colony
$114,297
Henrietta
$2.720
The Hills
$1.004
Hereford
$20,423
Thompsons
$1,897
Hewitt
$19,776
Thortidale
$1,595
Hickory Creek
$16,510
Thornton
$270
Hico
$5.534
Thorntonville
$87
Hidalgo
$26,621
Thrall
$825
Hidalgo County
S1,253,103
Three Rivers
$4.669
Hideaway
$922
Throcktnorton
$29
Higgins
$43
Throckmorton County
$5,695
Highland Haven
S320
Tiki Island
$2,178
Highland Park
$43,383
Timbercreek Canyon
$369
Highland Village
$50,315
Timpson
$12,642
Hill Country Village
$6.485
Tioa
$2.390
Hill County
S127,477
Tira
$185
Hillcrest
$5.345
Titus County
$70,611
Hillsboro
$46,609
Toco
$4
Hilshire Village
$859
Todd Mission
$1.680
Hitchcock
$28,796
Tolar
$2.369
Hockley County
$46,407
Tom Bean
$2.293
Page 15
Holiday Lakes
$1.795
Toin Green County
$282,427
Holland
$ 7 7
Tomball
$3-1,620
Holliday
$5.910
Tool
$14,787
Hollywood Park
$9.424
Toyal►
$40
Hondo
$115,288
Travis Comity
$4,703,473
Honey Grove
$7.196
Trent
$63
Hood County
5292,105
Trenton
$3.089
Hooks
$2.702
Trinidad
$5.859
Hopkins Comity
51.19,518
Trinity
$23,652
Horizon City
$7.520
Trinity County
S 105,766
Horseshoe Bay
$48,173
Trophy Club
$29,370
Houston County
$78,648
Troup
$7.918
Houston
$7,021,793
Troy
$5.320
Howard County
S89,330
Tulia
$8.911
Howardwick
$84
Turkey
$737
Howe
$9.177
Tuscola
$138
Hubbard
$3.635
Tyc
$1.766
Hudson
$6.840
Tyler
S723,829
Hudson Oaks
$15,637
Tyler County
S 131,743
Hudspeth County
5985
Uhland
$1.545
Hughes Springs
$4.442
Uncertain
$185
Humble
573,952
Union Grove
$994
Hunt County
$309,851
Union Valley
$666
Hunters Crock Village
$14,708
Universal City
$28,428
Huntington
$8.792
University Park
$50,833
Huntsville
$80,373
Upshur County
$128,300
Hurst
$99,187
Upton County
$8.499
Hutchins
$9.551
Uvalde
$18,439
Hutchinson County
$74,630
Uvalde County
$36,244
Hutto
$38,346
Val Verde County
5117,815
Huxley
$738
Valentino
$207
Idalou
$1,999
Valley 11'lills
$2,228
Impact.
S8
Valley View
$1,824
Indian Lake
5473
Van
$6.206
Industry
5604
Van Alstyno
$43,749
Ingleside on the Bay
5142
Van Horn
$211
Ingleside
540,487
Van Zandt County
$2-18,747
Ingram
$5.243
Vega
$974
Iola
$3.164
Venus
$9,792
Iowa Colony
$4.090
Vernon
$81,337
Page A
Iowa Park
S23,487
Victoria
$84,598
Iraan
$56
Victoria County
$520,886
Iredell
8216
Vidor
$95,620
Irion County
$9.105
Vinton
$622
Irving
$427,818
Volente
$333
Italy
$5.349
Von Oriny
$513
Itasca
$8.694
XVaco
S512,007
Ivanhoe
$26
NA' welder
$3.427
Jacinto Cite
81--1,1=11
NN'ake Village
$174
Jack County
514,799
Walker County
S 184,624
Jackshoro
$23,251
Waller County
$126,206
Jackson County
$37,984
Waller
$11,295
Jacksonville
$80,179
Wallis
$2.698
Jainaica Beach
$4.913
Walnut Springs
$183
Jarrell
$2.423
Ward County
$67,920
Jasper
$78,422
Warren City
$66
Jasper County
5248,855
Washington County
$83,727
Jayton
$63
Waskoin
$5.346
Jeff Davis County
$8.500
Watauga
$33,216
Jefferson
511,194
Waxahachie
$152,094
Jefferson County
$756,614
Weatherford
5207,872
Jersey Village
$36,347
Webb County
5505,304
Jewett
$9.338
NN'ebberville
$1.280
Jim Hogg County
$12,718
Webster
$53,202
Jim Wells County
$166,539
Weimar
$5,830
Joaquin
5810
Weinert
$234
Johnson City
$3.581
N�N'eir
$443
Johnson County
5-108,692
Wellington
$9.111
Jolly
$26
Wellman
$383
Jones County
522,001
Wells
$1.357
Jones Creek
$5.078
Weslaco
$73,949
Jonestown
$6,419
West
$3,522
Josephine
$881
West Columbia
$17,958
Joshua
$20,619
Nest Lake Hills
$17,056
Jourdanton
$9.600
West Orange
$42,452
Junction
$4.825
West Tawakoni
$6.995
Justin
$8.575
West University Place
$34,672
Karnes City
$11,632
Westbrook
$43
Karnes County
$35,249
Westlake
$41,540
Katy
$52,467
Weston
$266
Pagr 17
Kaufman
$27,607
Weston Lakes
$189
Kaufman County
5353,04 7
Westover Hills
$4.509
Keene
$38,296
Westworth Village
$7.842
Keller
$79,189
\t'harto►n
$31,700
Ke.Inall
$28,325
Wharton County
$72,887
Kemp
$6.419
Wheeler
$447
Kempner
$330
Wheeler County
$26,273
Kendall County
S 100,6-13
White Deer
$1.273
Kendleton
$13
White Oak
$15,305
Kenedy
$676
White Settlement =
$23,304
Kenedy County
$1.000
Whiteface
$155
Kenefick
$416
Whitehouse
$29,017
Kennard
$132
Whitesboro
$18,932
Kennedale
$21,024
White«vrigllt
$7.098
Kent County
$939
Whitney
$73
Kcrells
$1.924
Wichita County
5552,371
Kermit
$5.652
NN'ichita Falls
$832,574
Kerr County
$218,452
Wickett
$87
Kerrville
$190,357
Wilbarger County
$55,124
Kilgore
$105,583
Willacy County
$24,581
Killeen
$535,650
NN'illiamson County
51.195,987
Kimble County
$20,480
Willis
$24,384
King County
$1.000
Willow Park
$26,737
Kingsville
$20,083
Wills Point
$43,765
Kinney County
$2,142
Wilmer
$426
Kirby
$8.752
Wilson
$12
Kirbyville
$10,690
Nilson County
$121,034
Kirvin
S2
NN"imberlev
$724
Kleberg County
$124,109
\Vinderest
$12,908
Knollwood
$1.160
Windom
$1.087
Knox City
$1,962
Windthorst
$3,385
Knox County
$11,730
Winfield
$290
Kosse
$2.468
Wink
$120
Kountze
$19,716
Winkler County
$61,163
Kress
S186
Winnsboro
$28,791
Krugerville
$1.508
Winona
$319
Krum
$9.661
Winters
$6.229
Kurten
$686
Wise County
$289,074
Kyle
$51,835
Wixon Valley
$441
La Feria
$10,381
Wolfe City
$5.466
Pug. 16
La Grange
$9,623
Wolfforth
$4,022
La Grulla
$1,708
Wood Colony
$267,048
La Jaya
$8,457
Woodbranch
$9,617
La Marque
$98,930
Woodcreek
$358
La Porte
$91,532
Woodloch
$1,012
La Salle County
$14,975
Woodsboro
$1,130
La Veriiia
$3;217
Woodson
$122
La Villa
$572
Woodville
$20,340
La Ward
$321
Woodway
$25,713
LaCoste
$159
Worthain
$376
Lacy -Lakeview
$11,599
Wylie
$114,708
Ladonia
$2,011
Yantis
$2,072
Lago Vista
$13,768
Yoakum County
$34,924
Laguna Vista
$3,689
Yoakum
$20,210
Lake Bridgeport
$232
Yorktown
$5,447
Lake City
$2,918
Young County
$447120
Lake Dallas
$25,314
Zapata County
$56,480
Lake Jackson
$75,781
Zavala County
$38,147
Lake Tanglewood
$613
Zavalla
$1,088
Lake Worth
$20,051
Page. 19
EXHIBIT C
Exhibit C: TX Opioid Council 8+ Health Care Region Allocations plus Administrative Costs
70'X of Total ($700 million)
Health Care Region Allocation*: S693 million: Administrative Costs: $ 7 million
Region Counties in Health Care Region Allocation
Anderson, Bowie. Camp, Cass, Cherokee, Delta, Fannin. Franklin, Freestone. Gregg,
Harrison. Henderson. Hopkins, Houston, Hunt, Lainar, Marion, Nforris, Panola, Rains.
Red, River, Rusk, Smith, Titus, Trinity. Upshur, Fait. Zandt. Wood S38,223,336
Angelina, Brazoria, Galveston, Hardin. Jasper. Jefferson. Liberty-. Nacogdoches. Newton.
2
Orange. Polk. Sabine. San Augustine, Sail Jacinto. Shelby, 'Tyler 854.149.215
3 Austin, Calhoun, Chambers, Colorado. Fort Bend, Harris, Matagorda, Waller. NN'harton $120,965,680
4 Aransas. Bee, Brooks, De Witt. Duval. Goliad, Gonzales, .Jackson. Jim Wells, Karnes,
Kenedy, Kleberg, Lavaca, Live Oak, Nucces, Refugio, San Patricio. Victoria $27.047,477
5 Cameron, Hidalgo, Starr, XVillacy $17.619,875
6 Atascosa, Bandera, Bexar. Corral, Dinimit. Edwards, Frio. Gillespie. Guadalupe, Kendall.
Kerr, Kinney. La Salle, McMullen. Medina. Real, Uvalde. Val Verde, Nilson, Zavala S68.228,047
7 Bastrop. Caldwell, Fayette, Hays. Lee, Travis 850.489,691
8 Bell, Blanco, Burnet. Lampasas. Llano, Alilam. Mills, San Saba, Williamson S24,220,521
9 Dallas, Kaufman $66,492,094
10 Ellis, Erath, Hood, Johnson, Navarro, Parker, Somervell, Tarrant, Vise S65.538,414
Brown. Callahan. Comanche. Eastland, Fisher, Haskell, Jones, Knox. Mitchell, Nolan,
11
Palo Pinto. Shackelford, Stephens. Stonewall. Taylor
$9,509,818
Armstrong. Bailey. Borden, Briscoe. Carson, Castro, Childress, Cochran, Collingsworth.
Cottle, Crosby. Dallam, Dawson. Deaf Smith, Dickens, Donley. Floyd, Gaines, Garza,
12
Gray, Hale. Hall, Hansford, Hartley, Hemphill, Hockley. Hutchinson, Kent, King. Lamb,
Lipscomb, Lubbock, Lynn, Moore, Motley, Ochiltree, Oldham, Parmer, Potter. Randall,
Roberts. Scum , Slterm-in. Swisher, Terry, Wheeler, Yoakum
S237498,027
Coke. Coleman, Concho, Crockett, Irion, Kimble. Mason, McCulloch, Mcnard, Pecos,
13
Reagan, Runnels. Schleicher, Sterling, Sutton, Terrell, Tom Green
$5.195,605
Andrews. Brewster. Crane, Culberson. Ector, Glasscock, Howard, Jeff Davis. Loving.
14
Martin, Midland, Presidio, Reeves, Upton, Ward, Winkler
S12.124,354
15
El Paso, Hudspeth
$17.994,285
16
Bosctue, Cor_yell, Falls, Hamilton, Hill. Limestone, McLennan
$9,452,018
17
Brazos, Burleson. Grimes, Leon. Madison. Montgomery. Robertson, Walker, NN'ashington
$23,042,947
18
Collin, Denton. Grayson, Rockwall
S39.787,684
Archer, Baylor, Clay, Cooke, Foard. Hardeman, .Jack, Montague, Throckmorton, Wichita,
19
Wilbarger, Young
S 12.665,268
20
Jim Hogg, 1'laverick, Webb, Zapata
$6,755,656
Administrative Costs $7,000,000
* Each Region shall reserve 25 /c of its allocation for Targeted Funds tinder the guidelines of Exhibit A.
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'
2
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.
3
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
5
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
I
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
VA