Agenda - Council - 12/14/2021 - Laserfiche WebLink

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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. In some states there will be a proposed state-subdivision agreement that is in the process of being adopted by subdivisions.Any questions concerning the status or terms of the state-subdivision agreement, allocation statute, and/or statutory trust in your state, if applicable, can be directed to the Attorney General's Office. You may be contacted by the Attorney General's Office with additional information regarding the allocation of settlement funds in Minnesota. 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. The League of Minnesota Cities (LMC) is participating on an advisory panel that will make recommendations for a statewide framework for the allocation and use of funds to be received from national opioid lawsuits. The plan presented would override the default allocation plans derived from the national litigation where direct payments would be sent to individual cities with populations over 10,000. LMC Key Points to note: • Cities and counties have until Jan. 2, 2022, to sign onto a settlement agreement negotiated against a Pharmaceutical Supply Chain Participant in the national litigation. The more political subdivisions that sign,the more money Minnesota will receive. • The goal of the advisory panel is to have a statewide allocation plan agreed upon and incorporated into the settlement terms. States across the country are developing unique allocation plans and Minnesota's advisory panel is reviewing all for ideas and templates. •Any Opioid Settlement Funds received will be restricted to remediation and abatement uses. The counties' plan will allow for direct funding of programs (primarily public health and human services) that fit within these uses. • One reason provided for county specific funding is that smaller amounts divided among numerous local governments would not have as great an impact on the opioid crisis as larger blocks of money. •Alternative allocation plans are being created and will be reviewed by the advisory panel. Input is needed from individual cities on whether direct city funding versus county funding is preferable, and on any suggested terms for city access and administration of Opioid Settlement Funds Why City Should Participate The Attorney General's notice listed the following reasons to 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 31 000 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