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HomeMy WebLinkAboutRes 22-20 Adopting the Texas Term sheet and joining the Opioid Settlement negotiated by the TX AGTOWN OF WESTLAKE RESOLUTION NO.22-20 A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS, ADOPTING THE TEXAS TERM SHEET AND JOINING THE OPIOID SETTLEMENT NEGOTIATED BY THE TEXAS ATTORNEY GENERAL WHEREAS, the Town of Westlake obtained information indicating that certain drug companies andtheir 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/ordistribution of opioids that have resulted in addictions and overdoses; and WHEREAS, these actions, conduct and misconduct have resulted in significant financial costs to the Town; and WHEREAS, on May 13, 2020, the State of Texas, through the Office of the Attorney General, anda 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"; and WHEREAS, Town Counsel and the State of Texas have recommended that the Town of Westlake Town Council support the adoption and approval the Texas Term Sheet in its entirety. NOW, THEREFORE, BE IT RESOLVED BY THE TOWN COUNCIL OF THE TOWN OF WESTLAKE, TEXAS: SECTION 1: That the Town of Westlake supports the adoption and approval the Texas Term Sheet in its entirety; and SECTION 2: The Town of Westlake finds as follows: a. There is a substantial need for repayment of opioid-related expenditures andpayment to abate opioid-related harms in and about the Town of Westlake; and b. The Town 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 Town Council understandsthat 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 Litigationagainst Pharmaceutical Supply Chain Participants as defined therein. 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 Resolution 22-20 Page 1 of 2 a manner and means that would promote an effective and meaningful use of the funds in abating theopioid epidemic in this Town and throughout Texas. PASSED AND APPROVED ON THIS 25TH DAY OF APRIL 2022. A Laura heat, Mayor ATTEST: Mary Kayser, n ri I c6kn Secretary nda DeGan, Town Manager OF �VF APPROVED AS TO FORM: m L. Stanton Lowry, Town Attorney kA S Resolution 22-20 Page 2 of 2 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 :l 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 ri 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 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 L 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. C 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 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. 13 Executed this 13 day of May, 2020. FOR THE STATE OF TEXAS: KENNETH PAXTON, JR. ATTORNEY GENERAL FOR THE SUBDIVISIONS AND TEXAS MDL PSC: MIKAL WATTS WATTS GUERRA LLP 0, /,/, 4 /,L , , JE6YdY N SIMON G EEINSTONE PANA1'iER, PC W FERM, PC DAN,DOWNEY, PC :sas 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. FEWTIM-MIMM. 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). 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. 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. II. Duties/Roles It is the duty of the Council to determine and approve the opioid abatement strategies and funding awards. • :.. �� O . 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 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. 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. • 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. 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. 6 Exhibit B: Municipal Area Allocations: 15% of Total ($150 million (County numbers refer to distribution to the county governments after payment to cities within county borders has been made. Minimum distribution to each county is $1000. 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 $58,094 Lakeway $31,657 Adrian $181 Lakewood Village $557 Agua Dulce $43 Lamar County $141,598 Alamo $22,121 Lamb County $50,681 Alamo Heights $28,198 Lamesa $29,656 Alba $3,196 Lampasas $28,211 Albany $180 Lampasas County $42,818 Aledo $331 Lancaster $90,653 Alice $71,291 Laredo $763,174 Allen $315,081 Latexo $124 Alma $1,107 Lavaca County $45,973 Alpine $29,686 Lavon $7,435 Alto $3,767 Lawn $58 Alton $11,540 League City $302,418 Alvarado $29,029 Leakey $256 Alvin $113,962 Leander $88,641 Alvord $358 Leary $797 Amarillo $987,661 Lee County $30,457 Ames $5,571 Lefors $159 Amherst $22 Leon County $67,393 Anahuac $542 Leon Valley $23,258 Anderson $19 Leona $883 Anderson County $268,763 Leonard $8,505 Andrews $18,983 Leroy $176 Andrews County $37,606 Levelland $46,848 Angelina County $229,956 Lewisville $382,094 Angleton $62,791 Lexington $2,318 Angus $331 Liberty $72,343 Anna $9,075 Liberty County $531,212 Annetta $5,956 Liberty Hill $2,780 Annetta North $34 Limestone County $135,684 (Table continues on multiple pages below) Annetta South $602 Lincoln Park $677 Annona $738 Lindale $24,202 Anson $5,134 Linden $3,661 Anthony $4,514 Lindsay $1,228 Anton $444 Lipan $44 Appleby $1,551 Lipscomb County $10,132 Aquilla $208 Little Elm $69,326 Aransas County $266,512 Little River -Academy $798 Aransas Pass $57,813 Littlefield $7,678 Archer City $10,554 Live Oak $32,740 Archer County $45,534 Live Oak County $39,716 Arcola $7,290 Liverpool $1,435 Argyle $11,406 Livingston $73,165 Arlington $735,803 Llano $23,121 Armstrong County $974 Llano County $115,647 Arp $2,009 Lockhart $49,050 Asherton $112 Lockney $3,301 Aspermont $9 Log Cabin $1,960 Atascosa County $176,903 Lometa $1,176 Athens $105,942 Lone Oak $1,705 Atlanta $30,995 Lone Star $8,283 Aubrey $15,141 Longview $482,254 Aurora $1,849 Loraine $188 Austin County $76,030 Lorena $3,390 Austin $4,877,716 Lorenzo $11,358 Austwell $109 Los Fresnos $11,185 Avery $138 Los Indios $159 Avinger $1,115 Los Ybanez $0 Azle $32,213 Lott $1,516 Bailey $950 Lovelady $249 Bailey County $15,377 Loving County $1,000 Bailey's Prairie $5,604 Lowry Crossing $783 Baird $2,802 Lubbock $319,867 Balch Springs $27,358 Lubbock County $1,379,719 Balcones Heights $23,811 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 Page 2 Bardwell $362 Lynn County $6,275 Barry $200 Lytle $7,223 Barstow $61 Mabank $19,443 Bartlett $3,374 Madison County $49,492 Bartonville $8,887 Madisonville $11,458 Bastrop $46,320 Magnolia $26,031 Bastrop County $343,960 Malakoff $12,614 Bay City $57,912 Malone $439 Baylor County $29,832 Manor $12,499 Bayou Vista $6,240 Mansfield $150,788 Bayside $242 Manvel $12,305 Baytown $216,066 Marble Falls $37,039 Bayview $41 Marfa $65 Beach City $12,505 Marietta $338 Bear Creek $906 Marion $275 Beasley $130 Marion County $54,728 Beaumont $683,010 Marlin $21,634 Beckville $1,247 Marquez $1,322 Bedford $94,314 Marshall $108,371 Bedias $3,475 Mart $928 Bee Cave $12,863 Martin County $10,862 Bee County $97,844 Martindale $2,437 Beeville $24,027 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 Maud $423 Bellville $7,488 Maverick County $115,919 Belton $72,680 Maypearl $986 Benavides $152 McAllen $364,424 Benbrook $43,919 McCamey $542 Benjamin $951 McGregor $9,155 Berryville $14,379 McKinney $450,383 Bertram $182 McLean $14 Beverly Hills $4,336 McLendon -Chisholm $411 Bevil Oaks $549 Mcculloch County $20,021 Bexar County $7,007,152 Mclennan County $529,641 Big Lake $547 Mcmullen County $1,000 Big Sandy $4,579 Meadow $1,121 Page 3 Big Spring $189,928 Meadowlakes $905 Big Wells $236 Meadows Place $18,148 Bishop $8,213 Medina County $48,355 Bishop Hills $323 Megargel $611 Blackwell $31 Melissa $15,381 Blanco $6,191 Melvin $345 Blanco County $49,223 Memphis $7,203 Blanket $147 Menard $991 Bloomburg $1,010 Menard County $14,717 Blooming Grove $352 Mercedes $21,441 Blossom $198 Meridian $3,546 Blue Mound $2,888 Merkel $10,117 Blue Ridge $1,345 Mertens $239 Blum $1,622 Mertzon $29 Boerne $45,576 Mesquite $310,709 Bogata $3,649 Mexia $21,096 Bonham $100,909 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 $71,073 Milam County $97,386 Bovina $173 Milano $904 Bowie $83,620 Mildred $286 Bowie County $233,190 Miles $93 Boyd $6,953 Milford $6,177 Brackettville $8 Miller's Cove $97 Brady $27,480 Millican $417 Brazoria $11,537 Mills County $19,931 Brazoria County $1,021,090 Millsap $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 Missouri City $209,633 Brenham $54,750 Mitchell County $20,850 Brewster County $60,087 Mobeetie $52 Briarcliff $572 Mobile City $2,034 Briaroaks $57 Monahan $5,849 Bridge City $80,756 Mont Belvieu $19,669 Page 4 Bridgeport $33,301 Montague County $94,796 Briscoe County $977 Montgomery $1,884 Broaddus $31 Montgomery County $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 Browndel $152 Morgan's Point $3,105 Brownfield $14,452 Morgan's Point Resort $8,024 Brownsboro $3,176 Morris County $53,328 Brownsville $425,057 Morton $167 Brownwood $166,572 Motley County $3,344 Bruceville-Eddy $1,692 Moulton $999 Bryan $246,897 Mount Calm $605 Bryson $1,228 Mount Enterprise $1,832 Buckholts $1,113 Mount Pleasant $65,684 Buda $10,784 Mount Vernon $6,049 Buffalo $11,866 Mountain City $1,548 Buffalo Gap $88 Muenster $4,656 Buffalo Springs $188 Muleshoe $4,910 Bullard $7,487 Mullin $384 Bulverde $14,436 Munday $2,047 Bunker Hill Village $472 Murchison $2,302 Burkburnett $37,844 Murphy $51,893 Burke $1,114 Mustang $7 Burleson County $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 Page 5 Calvert $772 New Berlin $4 Cameron $11,091 New Boston $6,953 Cameron County $537,026 New Braunfels $307,313 Camp County $28,851 New Chapel Hill $288 Camp Wood $422 New Deal $338 Campbell $1,116 New Fairview $2,334 Canadian $1,090 New Home $9 Caney City $2,005 New Hope $1,024 Canton $56,734 New London $4,129 Canyon $26,251 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 $310,255 Newton County $158,006 Carson County $29,493 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 $70,127 Noonday $226 Cedar Park $185,567 Nordheim $697 Celeste $1,280 Normangee $6,192 Celina $18,283 North Cleveland $105 Center $58,838 North Richland Hills $146,419 Centerville $385 Northlake $8,905 Chambers County $153,188 Novice $76 Chandler $17,364 Nueces County $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 $37,916 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 Page 6 Chireno $1,568 Odem $7,420 Christine $354 Odessa $559,163 Cibolo $13,690 Oglesby $29 Cisco $7,218 Old River-Winfree $21,653 Clarendon $114 Oldham County $10,318 Clarksville $20,891 Olmos Park $9,801 Clarksville City $54 Olney $6,088 Claude $26 Olton $1,197 Clay County $72,050 Omaha $4,185 Clear Lake Shores $6,682 Onalaska $31,654 Cleburne $228,184 Opdyke West $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 Coahoma $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 Palmview $7,577 Collinsville $1,831 Palo Pinto County $124,621 Colmesneil $2,211 Pampa $67,227 Colorado City $8,405 Panhandle $9,536 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 Page 7 Concho County $3,859 Pattison $1,148 Conroe $466,671 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 Gap $719 Cooper $362 Pecan Hill $229 Coppell $86,593 Pecos $7,622 Copper Canyon $489 Pecos County $46,997 Copperas Cove $133,492 Pelican Bay $1,199 Corinth $75,298 Penelope $415 Corpus Christi $1,812,707 Penitas $312 Corral City $143 Perryton $23,364 Corrigan $21,318 Petersburg $1,691 Corsicana $87,310 Petrolia $17 Coryell County $123,659 Petronila $5 Cottle County $875 Pflugerville $86,408 Cottonwood $289 Pharr $144,721 Cottonwood Shores $1,203 Pilot Point $11,613 Cotulla $1,251 Pine Forest $3,894 Coupland $266 Pine Island $3,141 Cove $387 Pinehurst $32,671 Covington $519 Pineland $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 $128 Plano $1,151,608 Crawford $383 Pleak $270 Creedmoor $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 Blank $355 Crosbyton $1,498 Point Comfort $447 Cross Plains $4,877 Point Venture $588 Cross Roads $244 Polk County $370,831 Cross Timber $542 Ponder $1,282 Crowell $6,335 Port Aransas $31,022 Crowley $22,345 Port Arthur $367,945 Page 8 Crystal City $19,412 Port Isabel $9,802 Cuero $24,689 Port Lavaca $11,752 Culberson County $789 Port Neches $38,849 Cumby $5,320 Portland $76,517 Cuney $606 Post $2,332 Cushing $1,120 Post Oak Bend City $1,034 Cut and Shoot $2,141 Poteet $6,767 DISH $19 Poth $3,974 Daingerfield $12,476 Potter County $371,701 Daisetta $5,370 Pottsboro $12,302 Dalhart $11,609 Powell $110 Dallam County $21,686 Poynor $1,180 Dallas County $8,538,291 Prairie View $7,600 Dallas $2,999,902 Premont $3,321 Dalworthington Gardens $6,060 Presidio $148 Danbury $4,231 Presidio County $787 Darrouzett $101 Primera $2,958 Dawson $600 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 De Witt County $68,895 Pyote $22 DeCordova $13,778 Quanah $207 Desoto $72,400 Queen City $4,837 Deaf Smith County $34,532 Quinlan $7,304 Dean $141 Quintana $492 Decatur $56,669 Quitaque $8 Deer Park $49,388 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 $210,426 Randall County $278,126 Denton $458,334 Ranger $12,186 Denton County $1,132,298 Rankin $1,613 Denver City $2,104 Ransom Canyon $930 Deport $42 Ravenna $685 Detroit $965 Raymondville $7,466 Devers $191 Reagan County $25,215 Page 9 Devine $4,354 Real County $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 Redwater $1,058 Dilley $2,633 Reeves County $103,350 Dimmit County $33,294 Refugio $8,839 Dimmitt $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 $12,285 Dorchester $231 Rice $1,972 Double Oak $4,765 Richardson $260,315 Douglassville $574 Richland $210 Dripping Springs $811 Richland Hills $24,438 Driscoll $39 Richland Springs $2,234 Dublin $14,478 Richmond $77,606 Dumas $26,229 Richwood $12,112 Duncanville $58,328 Riesel $1,118 Duval County $49,109 Rio Bravo $8,548 Eagle Lake $4,882 Rio Grande City $25,947 Eagle Pass $56,005 Rio Hondo $3,550 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 $329 Roberts County $547 Ector $1,108 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 Rocksprings $25 Page 10 Edna $18,194 Rockwall $114,308 Edom $2,149 Rockwall County $168,820 Edwards County $975 Rocky Mound $280 El Campo $31,700 Rogers $3,818 El Cenizo $621 Rollingwood $4,754 El Lago $5,604 Roma $16,629 El Paso $1,224,371 Roman 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 Emhouse $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 Estelline $909 Rule $800 Euless $92,824 Runaway Bay $6,931 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 $2,221 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 San Augustine County $37,854 Farwell $343 San Benito $40,015 Fate $3,473 San Diego $11,771 Page 11 Fayette County $92,440 San Elizario $7,831 Fayetteville $391 San Felipe $1,498 Ferris $13,873 San Jacinto County $197,398 Fisher County $5,518 San Juan $28,845 Flatonia $5,661 San Leanna $36 Florence $3,949 San Marcos $325,688 Floresville $21,699 San Patricio $4,213 Flower Mound $215,256 San Patricio County $271,916 Floyd County $9,049 San 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 Sansom 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 $274 Santa Rosa $2,138 Fredericksburg $56,486 Savoy $2,349 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 $1,110 Frisco $405,309 Scurry County $73,116 Fritch $4,548 Seabrook $30,270 Frost $321 Seadrift $991 Fruitvale $2,344 Seagoville $17,106 Fulshear $5,272 Seagraves $7,531 Fulton $1,602 Sealy $20,637 Gaines County $54,347 Seguin $376,538 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 $14,218 Page 12 Ganado $5,510 Shackelford County $1,288 Garden Ridge $11,351 Shady Shores $594 Garland $420,244 Shallowater $1,907 Garrett $2,510 Shamrock $4,328 Garrison $3,555 Shavano Park $3,178 Gary City $450 Shelby County $109,925 Garza County $8,944 Shenandoah $47,122 Gatesville $26,994 Shepherd $147 George West $6,207 Sherman $330,585 Georgetown $225,896 Sherman County $7,930 Gholson $1,505 Shiner $4,042 Giddings $12,674 Shoreacres $958 Gillespie County $63,191 Silsbee $66,442 Gilmer $33,951 Silverton $14 Gladewater $24,638 Simonton $1,906 Glasscock County $1,000 Sinton $23,658 Glen Rose $540 Skellytown $400 Glenn Heights $16,593 Slaton $154 Godley $3,115 Smiley $655 Goldsmith $677 Smith County $758,961 Goldthwaite $1,225 Smithville $17,009 Goliad $3,563 Smyer $300 Goliad County $34,660 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 $9,643 Somerville $3,806 Gordon $365 Sonora $7,337 Goree $749 Sour Lake $17,856 Gorman $3,107 South Houston $25,620 Graford $23 South Mountain $154 Graham $235,428 South Padre Island $30,629 Granbury $71,735 Southlake $70,846 Grand Prairie $445,439 Southmayd $7,096 Grand Saline $36,413 Southside Place $885 Grandfalls $65 Spearman $14,000 Grandview $6,600 Splendora $7,756 Granger $2,741 Spofford $7 Granite Shoals $11,834 Spring Valley Village $16,404 Page 13 Granjeno $43 Springlake $3 Grapeland $7,287 Springtown $14,244 Grapevine $129,195 Spur $427 Gray County $65,884 St. Hedwig $111 Grays Prairie $17 St. Jo $7,360 Grayson County $539,083 St. Paul $21 Greenville $203,112 Stafford $75,145 Gregg County $243,744 Stagecoach $3,036 Gregory $4,697 Stamford $398 Grey Forest $474 Stanton $3,838 Grimes County $94,878 Staples $19 Groesbeck $5,745 Star Harbor $151 Groom $965 Starr County $99,896 Groves $40,752 Stephens County $35,244 Groveton $8,827 Stephenville $83,472 Gruver $1,166 Sterling City $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 Streetman $5 Hall County $8,933 Sudan $32 Hallettsville $6,895 Sugar Land $321,561 Hallsburg $272 Sullivan City $6,121 Hallsville $10,239 Sulphur Springs $124,603 Haltom City $71,800 Sun Valley $4 Hamilton $3,581 Sundown $2,592 Hamilton County $66,357 Sunnyvale $3,248 Hamlin $4,656 Sunray $2,571 Hansford County $16,416 Sunrise Beach Village $2,083 Happy $327 Sunset Valley $9,425 Hardeman County $15,219 Surfside Beach $6,530 Hardin $100 Sutton County $6,541 Hardin County $379,800 Sweeny $4,503 Harker Heights $113,681 Sweetwater $68,248 Harlingen $165,429 Swisher County $7,251 Harris County $14,966,202 Taft $5,861 Harrison County $185,910 Tahoka $430 Page 14 Hart $86 Talco $372 Hartley County $786 Talty $9,124 Haskell $10,829 Tarrant County $6,171,159 Haskell County $22,011 Tatum $972 Haslet $1,908 Taylor $57,945 Hawk Cove $674 Taylor County $351,078 Hawkins $7,932 Taylor Lake Village $412 Hawley $931 Taylor Landing $153 Hays $506 Teague $1,714 Hays County $529,489 Tehuacana $12 Hearne $16,824 Temple $280,747 Heath $28,751 Tenaha $4,718 Hebron $687 Terrell $148,706 Hedley $70 Terrell County $5,737 Hedwig Village $13,067 Terrell Hills $9,858 Helotes $15,790 Terry County $25,423 Hemphill $8,035 Texarkana $192,094 Hemphill County $14,394 Texas City $298,702 Hempstead $21,240 Texhoma $156 Henderson $59,966 Texline $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 Thorndale $1,595 Hickory Creek $16,510 Thornton $270 Hico $5,534 Thorntonville $87 Hidalgo $26,621 Thrall $825 Hidalgo County $1,253,103 Three Rivers $4,669 Hideaway $922 Throckmorton $29 Higgins $43 Throckmorton County $5,695 Highland Haven $320 Tiki Island $2,178 Highland Park $43,383 Timbercreek Canyon $369 Highland Village $50,315 Timpson $12,642 Hill Country Village $6,485 Tioga $2,390 Hill County $127,477 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 Tom Green County $282,427 Holland $77 Tomball $34,620 Holliday $5,910 Tool $14,787 Hollywood Park $9,424 Toyah $40 Hondo $115,288 Travis County $4,703,473 Honey Grove $7,196 Trent $63 Hood County $292,105 Trenton $3,089 Hooks $2,702 Trinidad $5,859 Hopkins County $149,518 Trinity $23,652 Horizon City $7,520 Trinity County $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 $89,330 Tulia $8,911 Howardwick $84 Turkey $737 Howe $9,177 Tuscola $138 Hubbard $3,635 Tye $1,766 Hudson $6,840 Tyler $723,829 Hudson Oaks $15,637 Tyler County $131,743 Hudspeth County $985 Uhland $1,545 Hughes Springs $4,442 Uncertain $185 Humble $73,952 Union Grove $994 Hunt County $309,851 Union Valley $666 Hunters Creek 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 $117,815 Huxley $738 Valentine $207 Idalou $1,999 Valley Mills $2,228 Impact $8 Valley View $1,824 Indian Lake $473 Van $6,206 Industry $604 Van Alstyne $43,749 Ingleside on the Bay $142 Van Horn $211 Ingleside $40,487 Van Zandt County $248,747 Ingram $5,243 Vega $974 Iola $3,164 Venus $9,792 Iowa Colony $4,090 Vernon $81,337 Page 16 Iowa Park $23,487 Victoria $84,598 Iraan $56 Victoria County $520,886 Iredell $216 Vidor $95,620 Irion County $9,105 Vinton $622 Irving $427,818 Volente $333 Italy $5,349 Von Ormy $513 Itasca $8,694 Waco $512,007 Ivanhoe $26 Waelder $3,427 Jacinto City $14,141 Wake Village $174 Jack County $14,799 Walker County $184,624 Jacksboro $23,254 Waller County $126,206 Jackson County $37,984 Waller $11,295 Jacksonville $80,179 Wallis $2,698 Jamaica Beach $4,913 Walnut Springs $183 Jarrell $2,423 Ward County $67,920 Jasper $78,422 Warren City $66 Jasper County $248,855 Washington County $83,727 Jayton $63 Waskom $5,346 Jeff Davis County $8,500 Watauga $33,216 Jefferson $11,194 Waxahachie $152,094 Jefferson County $756,614 Weatherford $207,872 Jersey Village $36,347 Webb County $505,304 Jewett $9,338 Webberville $1,280 Jim Hogg County $12,718 Webster $53,202 Jim Wells County $166,539 Weimar $5,830 Joaquin $810 Weinert $234 Johnson City $3,581 Weir $443 Johnson County $408,692 Wellington $9,111 Jolly $26 Wellman $383 Jones County $22,001 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 West 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 Page 17 Kaufman $27,607 Weston Lakes $189 Kaufman County $353,047 Westover Hills $4,509 Keene $38,296 Westworth Village $7,842 Keller $79,189 Wharton $31,700 Kemah $28,325 Wharton County $72,887 Kemp $6,419 Wheeler $447 Kempner $330 Wheeler County $26,273 Kendall County $100,643 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 Whitewright $7,098 Kent County $939 Whitney $73 Kerens $1,924 Wichita County $552,371 Kermit $5,652 Wichita 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 Williamson County $1,195,987 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 Wilson County $121,034 Kirvin $2 Wimberley $724 Kleberg County $124,109 Windcrest $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 $186 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 Page 18 La Grange $9,623 Wolfforth $4,022 La Grulla $1,708 Wood County $267,048 La Joya $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 Vernia $3,217 Woodson $122 La Villa $572 Woodville $20,340 La Ward $321 Woodway $25,713 LaCoste $159 Wortham $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 $44,120 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 & Health Care Region Allocations plus Administrative Costs 70% of Total ($700 million) Health Care Region Allocation*: $693 million; Administrative Costs: $7 million Region Counties in Health Care Region Allocation Anderson, Bowie, Camp, Cass, Cherokee, Delta, Fannin, Franklin, Freestone, Gregg, 1 Harrison, Henderson, Hopkins, Houston, Hunt, Lamar, Marion, Morris, Panola, Rains, Red, River, Rusk, Smith, Titus, Trinity, Upshur, Van, Zandt, Wood $38,223,336 2 Angelina, Brazoria, Galveston, Hardin, Jasper, Jefferson, Liberty, Nacogdoches, Newton, Orange, Polk, Sabine, San Augustine, San Jacinto, Shelby, Tyler $54,149,215 3 Austin, Calhoun, Chambers, Colorado, Fort Bend, Harris, Matagorda, Waller, Wharton $120,965,680 4 Aransas, Bee, Brooks, De Witt, Duval, Goliad, Gonzales, Jackson, Jim Wells, Karnes, Kenedy, Kleberg, Lavaca, Live Oak, Nueces, Refugio, San Patricio, Victoria $27,047,477 5 Cameron, Hidalgo, Starr, Willacy $17,619,875 6 Atascosa, Bandera, Bexar, Comal, Dimmit, Edwards, Frio, Gillespie, Guadalupe, Kendall, Kerr, Kinney, La Salle, McMullen, Medina, Real, Uvalde, Val Verde, Wilson, Zavala $68,228,047 7 Bastrop, Caldwell, Fayette, Hays, Lee, Travis $50,489,691 8 Bell, Blanco, Burnet, Lampasas, Llano, Milam, Mills, San Saba, Williamson $24,220,521 9 Dallas, Kaufman $66,492,094 10 Ellis, Erath, Hood, Johnson, Navarro, Parker, Somervell, Tarrant, Wise $65,538,414 11 Brown, Callahan, Comanche, Eastland, Fisher, Haskell, Jones, Knox, Mitchell, Nolan, 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, Scurry, Sherman, Swisher, Terry, Wheeler, Yoakum $23,498,027 13 Coke, Coleman, Concho, Crockett, Irion, Kimble, Mason, McCulloch, Menard, Pecos, Reagan, Runnels, Schleicher, Sterling, Sutton, Terrell, Tom Green $5,195,605 14 Andrews, Brewster, Crane, Culberson, Ector, Glasscock, Howard, Jeff Davis, Loving, Martin, Midland, Presidio, Reeves, Upton, Ward, Winkler $12,124,354 15 El Paso, Hudspeth $17,994,285 16 Bosque, Coryell, Falls, Hamilton, Hill, Limestone, McLennan $9,452,018 17 Brazos, Burleson, Grimes, Leon, Madison, Montgomery, Robertson, Walker, Washington $23,042,947 18 Collin, Denton, Grayson, Rockwall $39,787,684 19 Archer, Baylor, Clay, Cooke, Foard, Hardeman, Jack, Montague, Throckmorton, Wichita, Wilbarger, Young $12,665,268 20 Jim Hogg, Maverick, Webb, Zapata $6,755,656 Administrative Costs $7,000,000 * Each Region shall reserve 25% of its allocation for Targeted Funds under the guidelines of Exhibit A EXHIBIT K Settlement Participation Form GovernmentalL! • �� - • -• • r Address 1: Address OF 1 1 lam— �Vol C�W. 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. 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. 87 I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity. Signature: VZe't Name: ZJg- Title: r/W.4 Date: 88 EXHIBIT K Subdivision Settlement Participation Form d ' 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 ("Distributor 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 Governmental 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, fled, 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 National Opioids Settlement P.O. Box 43196 f Providence, RI 02940-3196 o�jivE y NPD1218 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIillllllllllllllllllllllllllllllllllllllll �� �� h 122810017188 i1 aF Postal Service: Please do not mark barcode 1�\ NPD AY 856-280 V Todd Wood Town Secretary/Organizational Performance M 1p' 1500 Solana Blvd, Bldg 7, Ste 7200 Westlake, TX 76262-2063 TO LOCAL POLITICAL SUBDIVISIONS. IMPORTANT INFORMATIONABOUT THE NATIONAL OPIOID SETTLEMENT. SUBDIVISIONS MUST SUBMIT SIGNED DOCUMENTATION TO PARTICIPATE. THE DEADLINE FOR PARTICIPATION TO MAXIMIZE SETTLEMENT BENEFITS IS JANUARY 2.2022. If your subdivision is represented by an attorney with respect to opioid claims, please immediately contact them. If your subdivision has already signed on to the settlements and adopted the Texas Term Sheet, you may disregard this notice. SETTLEMENT OVERVIEW After years of negotiations, two proposed nationwide settlement agreements ("Settlements") have been reached that would resolve all opioid litigation brought by states and local political subdivisions against the three largest pharmaceutical distributors, McKesson, Cardinal Health and AmerisourceBergen ("Distributors"), and one manufacturer, Janssen Pharmaceuticals, Inc., and its parent company Johnson & Johnson (collectively, "Janssen"). The proposed Settlements require the Distributors and Janssen to pay billions of dollars to abate the opioid epidemic. Specifically, the Settlements require the Distributors to pay up to $21 billion over 18 years and Janssen to pay up to $5 billion over no more than 9 years, for a total of $26 billion (the "Settlement Amount"). Of the Settlement Amount, approximately $22.7 billion is earmarked for use by participating states and subdivisions to remediate and abate the impacts of the opioid crisis. The Settlements also contain injunctive relief provisions governing the opioid marketing, sale and distribution practices at the heart of the states' and subdivisions' lawsuits and further require the Distributors to implement additional safeguards to prevent diversion of prescription opioids. Each of the proposed Settlements has two key participation steps. First, each state decides whether to participate in the Settlements. Texas has joined both Settlements. Second, the subdivisions within each participating state must then decide whether to participate in the Settlements. Generally, the more subdivisions that participate, the greater the amount of funds that flow to that state and its participating subdivisions. Any subdivision that does not participate cannot directly share in any of the settlement funds, even if the subdivision's state is settling and other participating subdivisions are sharing in settlement funds. This letter is part of the formal notice required by the Settlements. WHY IS YOUR SUBDIVISION RECEIVING THIS NOTICE? You are receiving this letter because Texas has elected to participate in both of the two national Settlements against (1) the Distributors, and (2) Janssen, and your subdivision may participate in the Settlements to which your state has agreed. This notice is being sent directly to subdivisions and also to attorneys for subdivisions that we understand are litigating against these companies. If you are represented by an attorney with respect to opioid claims, please immediately contact them. Please note that there is no need for subdivisions to be represented by an attorney or to have filed a lawsuit to participate in the Settlements. Your subdivision may have already signed on to the Settlements and adopted the Texas Term Sheet. If so, you may disregard this notice. WHERE CAN YOU FIND MORE INFORMATION? This letter is intended to provide a brief overview of the Settlements. Detailed information about the Settlements may be found at: https://nationalopioidsettlement.com/. This national settlement website also includes links to information about how the Settlements are being implemented in your state and how settlement funds will be allocated within your state. This website will be supplemented as additional documents are created. The Office of the Attorney General of Texas has also set up a state -specific website, which may be found at: https://www.texasattomeygeneral.gov/globalopioidsettlement. HOW DO YOU PARTICIPATE IN THE SETTLEMENTS? You must go to the Texas Attorney General's website to participate in the Settlements (if your subdivision is eligible). All required documentation must be executed and submitted to the email address: opioids@oag.texas.gov. As part of the sign on process, your subdivision will need to submit the Subdivision Settlement Participation Forms (one for JNJ and one for the Distributors) and your resolution adopting the Texas Term Sheet. Please also be sure to include in the Subdivision Settlement Participation Forms the identity and email address of the individual who will be authorized to sign formal and binding documents on behalf of your subdivision. HOW WILL SETTLEMENT FUNDS BE ALLOCATED IN EACH STATE? The settlement funds are first divided among the participating states according to a formula developed by the Attorneys General that considers population and the severity of harm caused by the opioid epidemic in each participating state. Each state's share of the abatement funds is then further allocated within each state according to agreement between the state and its subdivisions, applicable state allocation legislation, or, in the absence of these, the default provisions in the agreements. Many states have or are in the process of reaching an agreement on how to allocate abatement funds within the states. Allocation agreements/legislation and other information about the Texas allocation agreement or legislation can be found on the Texas Attorney General's website and the national settlement website. The allocation section of the national settlement website will be supplemented as more intra-state allocation arrangements are finalized. In reviewing allocation information, please note that while all subdivisions may participate in the Settlements, not all subdivisions are eligible to receive direct payments. To promote efficiency in the use of abatement funds and avoid administratively burdensome disbursements that would be too small to add a meaningful abatement response, certain smaller subdivisions do not automatically receive a direct allocation. However, participation by such subdivisions will help maximize the amount of abatement funds being paid in the Settlements, including those going to counties, cities, parishes, and other larger subdivisions in their communities. To determine your eligibility to receive, directly or indirectly, any of the funds allocated to Texas should you elect to participate in the Settlements, you should first visit https://www.texasattomeygeneral.gov/globalopioidsettlement and review Exhibit B of the Texas Term Sheet to determine if your subdivision is listed. Any questions concerning the status or terms of the Texas Term Sheet and allocations in Texas can be directed to the Texas Attorney General's Office. You may be contacted by the Texas Attorney General's Office with additional information regarding the allocation of settlement funds in Texas. Subdivisions with representation can expect information from their attorneys as well. We encourage you to review all materials and to follow up with any questions. The terms of these Settlements are complex, and we want to be sure you have all the information you need to make your participation decision. WHY YOU SHOULD PARTICIPATE A vast majority of states have joined the Settlements, and attorneys for many subdivisions have already announced support for them. For example, the Plaintiffs' Executive Committee, charged with leading the litigation on behalf of more than 3,000 cities, counties and others against the opioid industry, and consolidated in the national multi -district litigation ("MDL") pending before Judge Dan Aaron Polster in the Northern District of Ohio, recommends participation in these Settlements. Subdivision participation is strongly encouraged, for the following reasons: First, the amounts to be paid under the Settlements, while insufficient to abate the epidemic fully, will allow state and local governments to commence with meaningful change designed to curb opioid addiction, overdose and death; Second, time is of the essence. The opioid epidemic continues to devastate communities around the country and it is critical that the funds begin to flow to allow governments to address the epidemic in their communities as soon as possible; Third, if there is not sufficient subdivision participation in these proposed Settlements, the Settlements will not be finalized, the important business practice changes will not be implemented, the billions of dollars in abatement funds will not flow to communities, and more than 3,000 cases may be sent back to their home courts for trial, which will take many years; Fourth, the extent of participation also will determine how much money each state and its local subdivisions will receive because approximately half of the abatement funds are in the form of "incentive payments," i.e., the higher the participation of subdivisions in a state, the greater the amount of settlement funds that flow into that state; Fifth, you know first-hand the effects of the opioid epidemic on your community. Funds from these Settlements will be used to commence abatement of the crisis and provide relief to your citizens while litigation and settlement discussions proceed against numerous other defendants in the opioid industry; Sixth, because pills do not respect boundaries, the opioid epidemic is a national crisis that needs a national solution. NEXT STEPS These Settlements require that you take affirmative steps to "opt in" to the Settlements. If you do not act, you will not receive any settlement funds and you will not contribute to reaching the participation thresholds that will deliver the maximum amount of abatement funds to your state. First, have your authorizing person(s) or body begin to review the materials on the websites concerning the settlement agreement terms and the Texas Term Sheet. Develop a list of questions for your counsel or the Texas Attorney General's Office. In the very near future, your subdivision will need to begin the process of deciding whether to participate in the proposed Settlements, and subdivisions are encouraged to work through this process well before the January 2, 2022, deadline to be an initial participating subdivision. Again, the Texas Attorney General's Office, your counsel, and other contacts within the state are available to discuss the specifics of the Settlements within your state, and we encourage you to discuss the terms and benefits of the Settlements with them. Second, should you decide to proceed with participating, your subdivision will need to adopt the Texas Term Sheet and its intrastate allocation schedule. A model resolution is available on the Texas Attorney General's Office website. Third, submit to ioids@oag.texas.gov: y ur signed Subdivision Settlement Participation Forms (one for JNJ and one for the i u ors a your resolution adopting the Texas Term Sheet. Continue monitoring your email for further communications. We urge you to view the national settlement website and the Texas Attorney General's website at your earliest convenience. Information and documents regarding the national Settlements and your state allocation can be found on the settlement website at: https://nationalopioidsettlement.com/ and https://www.texasattomeygeneral.gov/globalopioidsettlement. Questions regarding the opioid Settlements can be directed to opioids@oag.texas.gov. a-