062-23 - Salish Behavioral Health Admin. Services - ContractDocuSign Envelope ID: 98C198DD-9296-4EB6-969E-2CC57EAD04BB
INTERLOCAL AGREEMENT BETWEEN
CITY OF PORT ORCHARD
AND
SALISH BEHAVIORAL HEALTH ADMINISTRATIVE SERVICES ORGANIZATION
Contract No. 062-23
This Agreement is made between the City of Port Orchard ("City"), on the one hand, and
Salish Behavioral Health Administrative Services Organization ("SBH-ASO"), through Kitsap
County, its administrative entity, on the other, (collectively "Parties") for the purpose of
administering monetary amounts allocated to the City resulting from settlements with and/or
litigation against opioid pharmaceutical supply chain participants. The Parties to this Agreement
mutually agree to the terms contained herein.
RECITALS
A. The City is a Participating Local Government to the One Washington
Memorandum of Understanding Between Washington Municipalities (One WA MOU), a copy
of which is attached hereto as Attachment A and fully incorporated herein.
B. The City is also a Participant to the Allocation Agreement Covering the
Allocation of Funds Paid by the Settling Opioid Distributors in Washington State, a copy of
which is attached hereto as Attachment B and fully incorporated herein (Allocation Agreement).
C. The City anticipates receipt of other funds resulting from settlements with and/or
litigation against opioid pharmaceutical supply chain participants.
D. Funds allocated to the City pursuant to the One WA MOU, the Allocation
Agreement, and from other settlements with and/or litigation against opioid pharmaceutical
supply chain participants shall be collectively referred to herein as "Opioid Funds."
E. The SBH-ASO administers behavioral health services and programs pursuant to
chapters 71.24 and 71.05 RCW within the Olympic Community of Health Region regional
service area established under RCW 74.09.870.
F. The City seeks to designate SBH-ASO as the Opioid Abatement Council pursuant
to Section CA.h of the One WA MOU and pursuant to Section 15 of the Allocation Agreement
for the purposes of receiving, managing, distributing, and administering Opioid Funds allocated
to the City consistent with the Approved Purposes set forth in the One WA MOU and consistent
with the purposes set forth in Section 8 of the Allocation Agreement.
G. This Agreement is made pursuant to the Interlocal Cooperation Act, Chapter
39.34 RCW.
H. This Agreement does not contemplate a joint budget.
I. This Agreement does not contemplate the joint acquisition of property by the
Page 1
DocuSign Envelope ID: 98C198DD-9296-4EB6-969E-2CC57EAD04BB
parties. At termination, each party will remain the sole owner of its own property.
AGREEMENT
I. The foregoing Recitals A through I are true and correct and are incorporated
herein by reference as if fully set forth herein.
2. The City hereby designates SBH-ASO as the Opioid Abatement Council pursuant
to Section CA.h of the One WA MOU and pursuant to Section 15 of the Allocation Agreement
to oversee allocation, distribution, expenditures, and dispute resolution of Opioid Funds allocated
to the City consistent with the Approved Purposes set forth in the One WA MOU and Allocation
Agreement and consistent with the purposes set forth in Section 8 of the Allocation Agreement
(collectively "Approved Purposes").
3. The City shall pay over to SBH-ASO those Opioid Funds distributed to the City
or authorize that Opioid Funds allocated to the City be paid over directly to SBH-ASO.
4. SBH-ASO shall maintain Opioid Funds in a separate fund and Opioid Funds shall
not be comingled with other funds received by SBH-ASO from HCA or other sources.
5. Ten percent (10%) of Opioid Funds received by SBH-ASO will be reserved, on
an annual basis, for administrative costs related to managing, distributing, and administering
Opioid Funds consistent with Approved Purposes. SBH-ASO will provide an annual accounting
for actual costs and any reserved funds that exceed actual costs will be reallocated to Approved
Purposes.
6. Opioid Funds will be subject to mechanisms for auditing and reporting to provide
public accountability and transparency. All records related to the receipt and expenditure of
Opioid Funds shall be maintained for no less than five (5) years and such records shall be
available for review by the Parties to this Agreement, government oversight authorities, and the
public. Each party shall be responsible for its own compliance with the Washington Public
Records Act, chapter 42.56 RCW (as may be amended). This Agreement, once executed, will be
a "public record" subject to production to a third party if it is requested under the chapter 42.56
RCW.
7. SBH-ASO will be responsible for the following actions with respect to Opioid
Funds:
a. Overseeing distribution of Opioid Funds to programs and services within the City
for Approved Purposes.
b. Preparing annual expenditure reports for compliance with Approved Purposes.
C. Reporting and making publicly available all decisions on Opioid Fund allocation
applications, distributions, and expenditures by SBH-ASO.
Page 2
DocuSign Envelope ID: 98C198DD-9296-4EB6-969E-2CC57EAD04BB
d. Developing and maintaining a centralized public dashboard or other repository for
the publication of expenditure data for expenditures of Opioid Funds by SBH-ASO,
which it shall update at least annually.
e. If necessary, require and collect additional outcome -related data to evaluate the
use of Opioid Funds.
f. Hearing complaints by the City regarding alleged failure to (1) use Opioid Funds
for Approved Purposes or (2) comply with reporting requirements.
8. If any Party to this Agreement believes another Party violated the terms of this
Agreement, the WA One MOU, and/or the Allocation Agreement, the aggrieved Party may seek
judicial enforcement of the terms of this Agreement, the WA One MOU, and/or the Allocation
Agreement. The Parties hereby stipulate that venue of any action shall be Thurston County
Superior Court in accordance with RCW 4.12.080. Prior to filing any such action, the alleging
Party shall first provide the alleged offending Party notice of the alleged violation(s) and a
reasonable opportunity to cure the alleged violation(s). In such an enforcement action, any
alleging Party or alleged offending Party may be represented by their respective public entity in
accordance with Washington law.
9. Nothing in this MOU shall be interpreted to waive the right of any Party to seek
judicial relief for conduct occurring outside the scope of this Agreement that violates any
Washington law. In such an action, the alleged offending Party may be represented by their
respective public entities in accordance with Washington law. In the event of a conflict, any
Party may seek outside representation to defend itself against such an action.
10. This Agreement is subject to the terms and conditions of the interlocal agreement
establishing the SBH-ASO (KC-279-19, as it may be amended or superseded from time to time),
except that in the event of an inconsistency between this Agreement and the interlocal agreement
establishing the SBH-ASO, unless otherwise provided, the inconsistency is resolved by giving
precedence in the following order:
a. Applicable Federal and Washington State Statutes and Regulations.
b. All terms and conditions in this Agreement, including the One WA MOU and the
Allocation Agreement.
c. The interlocal agreement establishing the SBH-ASO (KC-279-19, as it may be
amended or superseded from time to time).
d. Any other material incorporated herein by written reference.
11. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which shall constitute one and the same instrument. The
Parties agree not to deny the legal effect or enforceability of this Agreement solely because it is
in electronic form or because an electronic record was used in its formation. The Parties agree
not to object to the admissibility of this Agreement in the form of an electronic record, or a paper
copy of an electronic document, or a paper copy of a document bearing an electronic signature,
on the grounds that it is an electronic record or electronic signature or that it is not in its original
Page 3
DocuSign Envelope ID: 98C198DD-9296-4EB6-969E-2CC57EAD04BB
form or is not an original.
12. This Agreement shall take effect upon the date of its full execution and shall
expire on the date that the Interlocal Agreement establishing the SBH-ASO expires (designated
as Kitsap County contract number KC-279-19, as it may be amended or superseded from time to
time).
13. Each Party represents that all procedures necessary to authorize such Parry's
execution of this Agreement have been performed and that the person signing for such Party has
been authorized to execute this Agreement.
14. Once fully executed, this Agreement shall be filed by SBH-ASO, through Kitsap
County, with the Kitsap County Auditor. The City shall list the Agreement on the City's website.
15. The parties shall keep and maintain all records required by law in connection with
the performance of this Agreement.
16. The parties signed this Agreement in the State of Washington. The laws of the
United States and the State of Washington govern this Agreement, as if applied to transactions
agreed upon and to be performed wholly within the State of Washington. No Party shall argue or
assert that any state law other than Washington law applies to the governance or construction of
this Agreement.
17. This agreement may be amended to address distribution of additional funds
received from settlements with and/or litigation against opioid pharmaceutical supply chain
participants. Any amendment must be in writing and must be signed by each party.
18. The parties may withdraw from this Agreement and terminate participation under
this Agreement at any time, subject to the survival of any duty, obligation, or liability it incurred
prior to the effective date of termination, and provided that (a) the terminating party provides
written notification to the other party of the terminating party's intention to withdraw at least 60
days prior to the proposed effective date of such termination.
19. Any notices required to be given shall be in writing and delivered to the following
parties at the following addresses:
Port Orchard Mayor SBH-ASO
216 Prospect Street Director, Kitsap County Department of Human
Port Orchard, WA 98366 Services as Administrator of SBH-ASO
614 Division Street, MS-23
Port Orchard, WA 98366
20. The invalidity or unenforceability of any provision hereof shall in no way affect
the validity or enforceability of any other provision. Failure to insist upon strict compliance with
any terms, covenants, or conditions of this Agreement shall not be deemed a waiver of such, nor
shall any waiver or relinquishment of such right or power at any time be taken to be a waiver of
Page 4
DocuSign Envelope ID: 98C198DD-9296-4EB6-969E-2CC57EAD04BB
any other breach.
Approved this 251h day of July 2023
CITY OF PORT ORCHARD
Ooeu$igned by!
Robert Putaansuu, Mayor
Attest:
Brandy Wallace, MMC, City Clerk
Approved this day of�y,���, 2023
SALISH BEHAVIORAL HEALTH
ADMINISTRATIVE SERVICES ORGANIZATION
Mark O 1
Page 5
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
Attachment A
Contract No. 067-22
ONE WASHINGTON MEMORANDUM OF UNDERSTANDING BETWEEN
WASHINGTON MUNICIPALITIES
Whereas, the people of the State of Washington and its communities have been harmed by
entities within the Pharmaceutical Supply Chain who manufacture, distribute, and dispense
prescription opioids;
Whereas, certain Local Governments, through their elected representatives and counsel,
are engaged in litigation seeking to hold these entities within the Pharmaceutical Supply Chain of
prescription opioids accountable for the damage they have caused to the Local Governments;
Whereas, Local Governments and elected officials share a common desire to abate and
alleviate the impacts of harms caused by these entities within the Pharmaceutical Supply Chain
throughout the State of Washington, and strive to ensure that principals of equity and equitable
service delivery are factors considered in the allocation and use of Opioid Funds; and
Whereas, certain Local Governments engaged in litigation and the other cities and counties
in Washington desire to agree on a form of allocation for Opioid Funds they receive from entities
within the Pharmaceutical Supply Chain.
Now therefore, the Local Governments enter into this Memorandum of Understanding
("MOU") relating to the allocation and use of the proceeds of Settlements described.
A. Definitions
As used in this MOU:
1. "Allocation Regions" are the same geographic areas as the existing
nine (9) Washington State Accountable Community of Health (ACH) Regions
and have the purpose described in Section C below.
2. "Approved Purpose(s)" shall mean the strategies specified and set
forth in the Opioid Abatement Strategies attached as Exhibit A.
3. "Effective Date" shall mean the date on which a court of
competent jurisdiction enters the first Settlement by order or consent decree. The
Parties anticipate that more than one Settlement will be administered according to
the terms of this MOU, but that the first entered Settlement will trigger allocation
of Opioid Funds in accordance with Section B herein, and the formation of the
Opioid Abatement Councils in Section C.
4. "Litigating Local Government(s)" shall mean Local Governments
that filed suit against any Pharmaceutical Supply Chain Participant pertaining to
the Opioid epidemic prior to September 1, 2020.
1
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
5. "Local Government(s)" shall mean all counties, cities, and towns
within the geographic boundaries of the State of Washington.
6. "National Settlement Agreements" means the national opioid
settlement agreements dated July 21, 2021 involving Johnson & Johnson, and
distributors AmerisourceBergen, Cardinal Health and McKesson as well as their
subsidiaries, affiliates, officers, and directors named in the National Settlement
Agreements, including all amendments thereto.
7. "Opioid Funds" shall mean monetary amounts obtained through a
Settlement as defined in this MOU.
8. "Opioid Abatement Council" shall have the meaning described in
Section C below.
9. "Participating Local Government(s)" shall mean all counties,
cities, and towns within the geographic boundaries of the State that have chosen
to sign on to this MOU. The Participating Local Governments may be referred to
separately in this MOU as "Participating Counties" and "Participating Cities and
Towns" (or "Participating Cities or Towns," as appropriate) or "Parties."
10. "Pharmaceutical Supply Chain" shall mean the process and
channels through which controlled substances are manufactured, marketed,
promoted, distributed, and/or dispensed, including prescription opioids.
11. "Pharmaceutical Supply Chain Participant" shall mean any entity
that engages in or has engaged in the manufacture, marketing, promotion,
distribution, and/or dispensing of a prescription opioid, including any entity that
has assisted in any of the above.
12. "Qualified Settlement Fund Account," or "QSF Account," shall
mean an account set up as a qualified settlement fund, 468b fund, as authorized by
Treasury Regulations 1.468B-1(c) (26 CFR § 1.468B-1).
13. "Regional Agreements" shall mean the understanding reached by
the Participating Local Counties and Cities within an Allocation Region
governing the allocation, management, distribution of Opioid Funds within that
Allocation Region.
14. "Settlement" shall mean the future negotiated resolution of legal or
equitable claims against a Pharmaceutical Supply Chain Participant when that
resolution has been jointly entered into by the Participating Local
Governments. "Settlement" expressly does not include a plan of reorganization
confirmed under Title 11 of the United States Code, irrespective of the extent to
which Participating Local Governments vote in favor of or otherwise support such
plan of reorganization.
2
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
15. "Trustee" shall mean an independent trustee who shall be
responsible for the ministerial task of releasing Opioid Funds from a QSF account
to Participating Local Governments as authorized herein and accounting for all
payments into or out of the trust.
16. The "Washington State Accountable Communities of Health" or
"ACH" shall mean the nine (9) regions described in Section C below.
B. Allocation of Settlement Proceeds for Approved Purposes
1. All Opioid Funds shall be held in a QSF and distributed by the
Trustee, for the benefit of the Participating Local Governments, only in a manner
consistent with this MOU. Distribution of Opioid Funds will be subject to the
mechanisms for auditing and reporting set forth below to provide public
accountability and transparency.
2. All Opioid Funds, regardless of allocation, shall be utilized
pursuant to Approved Purposes as defined herein and set forth in Exhibit A.
Compliance with this requirement shall be verified through reporting, as set out in
this MOU.
3. The division of Opioid Funds shall first be allocated to
Participating Counties based on the methodology utilized for the Negotiation
Class in In Re: National Prescription Opiate Litigation, United States District
Court for the Northern District of Ohio, Case No. 1:17-and-02804-DAP. The
allocation model uses three equally weighted factors: (1) the amount of opioids
shipped to the county; (2) the number of opioid deaths that occurred in that
county; and (3) the number of people who suffer opioid use disorder in that
county. The allocation percentages that result from application of this
methodology are set forth in the "County Total" line item in Exhibit B. In the
event any county does not participate in this MOU, that county's percentage share
shall be reallocated proportionally amongst the Participating Counties by applying
this same methodology to only the Participating Counties.
4. Allocation and distribution of Opioid Funds within each
Participating County will be based on regional agreements as described in
Section C.
C. Regional Agreements
1. For the purpose of this MOU, the regional structure for decision -
making related to opioid fund allocation will be based upon the nine (9) pre-
defined Washington State Accountable Community of Health Regions (Allocation
Regions). Reference to these pre -defined regions is solely for the purpose of
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
drawing geographic boundaries to facilitate regional agreements for use of Opioid
Funds. The Allocation Regions are as follows:
• King County (Single County Region)
• Pierce County (Single County Region)
• Olympic Community of Health Region (Clallam, Jefferson, and Kitsap
Counties)
• Cascade Pacific Action Alliance Region (Cowlitz, Grays Harbor, Lewis,
Mason, Pacific, Thurston, Lewis, and Wahkiakum Counties)
• North Sound Region (Island, San Juan, Skagit, Snohomish, and Whatcom
Counties)
• SouthWest Region (Clark, Klickitat, and Skamania Counties)
• Greater Columbia Region (Asotin, Benton, Columbia, Franklin, Garfield,
Kittitas, Walla Walla, Whitman, and Yakima Counties)
• Spokane Region (Adams, Ferry, Lincoln, Pend Oreille, Spokane, and
Stevens Counties)
• North Central Region (Chelan, Douglas, Grant, and Okanogan Counties)
2. Opioid Funds will be allocated, distributed and managed within
each Allocation Region, as determined by its Regional Agreement as set forth
below. If an Allocation Region does not have a Regional Agreement enumerated
in this MOU, and does not subsequently adopt a Regional Agreement per Section
C.5, the default mechanism for allocation, distribution and management of Opioid
Funds described in Section CA.a will apply. Each Allocation Region must have
an OAC whose composition and responsibilities shall be defined by Regional
Agreement or as set forth in Section CA.
3. King County's Regional Agreement is reflected in Exhibit C to this
MOU.
4. All other Allocation Regions that have not specified a Regional
Agreement for allocating, distributing and managing Opioid Funds, will apply
the following default methodology:
a. Opioid Funds shall be allocated within each Allocation Region by
taking the allocation for a Participating County from Exhibit B and
apportioning those funds between that Participating County and its
Participating Cities and Towns. Exhibit B also sets forth the allocation to
the Participating Counties and the Participating Cities or Towns within the
Counties based on a default allocation formula. As set forth above in
Section B.3, to determine the allocation to a county, this formula utilizes:
(1) the amount of opioids shipped to the county; (2) the number of opioid
deaths that occurred in that county; and (3) the number of people who
suffer opioid use disorder in that county. To determine the allocation
within a county, the formula utilizes historical federal data showing how
the specific Counties and the Cities and Towns within the Counties have
4
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
made opioids epidemic -related expenditures in the past. This is the same
methodology used in the National Settlement Agreements for county and
intra-county allocations. A Participating County, and the Cities and Towns
within it may enter into a separate intra-county allocation agreement to
modify how the Opioid Funds are allocated amongst themselves, provided
the modification is in writing and agreed to by all Participating Local
Governments in the County. Such an agreement shall not modify any of
the other terms or requirements of this MOU.
b. 10% of the Opioid Funds received by the Region will be reserved,
on an annual basis, for administrative costs related to the OAC. The OAC
will provide an annual accounting for actual costs and any reserved funds
that exceed actual costs will be reallocated to Participating Local
Governments within the Region.
C. Cities and towns with a population of less than 10,000 shall be
excluded from the allocation, with the exception of cities and towns that
are Litigating Participating Local Governments. The portion of the Opioid
Funds that would have been allocated to a city or town with a population
of less than 10,000 that is not a Litigating Participating Local Government
shall be redistributed to Participating Counties in the manner directed
in CA.a above.
d. Each Participating County, City, or Town may elect to have its
share re -allocated to the OAC in which it is located. The OAC will then
utilize this share for the benefit of Participating Local Governments within
that Allocation Region, consistent with the Approved Purposes set forth in
Exhibit A. A Participating Local Government's election to forego its
allocation of Opioid Funds shall apply to all future allocations unless the
Participating Local Government notifies its respective OAC otherwise. If a
Participating Local Government elects to forego its allocation of the
Opioid Funds, the Participating Local Government shall be excused from
the reporting requirements set forth in this Agreement.
e. Participating Local Governments that receive a direct
payment maintain full discretion over the use and distribution of their
allocation of Opioid Funds, provided the Opioid Funds are used solely for
Approved Purposes. Reasonable administrative costs for a Participating
Local Government to administer its allocation of Opioid Funds shall not
exceed actual costs or 10% of the Participating Local Government's
allocation of Opioid Funds, whichever is less.
f. A Local Government that chooses not to become a Participating
Local Government will not receive a direct allocation of Opioid Funds.
The portion of the Opioid Funds that would have been allocated to a Local
Government that is not a Participating Local Government shall be
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
redistributed to Participating Counties in the manner directed
in CA.a above.
g. As a condition of receiving a direct payment, each Participating
Local Government that receives a direct payment agrees to undertake the
following actions:
i. Developing a methodology for obtaining proposals for use
of Opioid Funds.
ii. Ensuring there is opportunity for community -based input
on priorities for Opioid Fund programs and services.
iii. Receiving and reviewing proposals for use of Opioid Funds
for Approved Purposes.
iv. Approving or denying proposals for use of Opioid
Funds for Approved Purposes.
V. Receiving funds from the Trustee for approved proposals
and distributing the Opioid Funds to the recipient.
vi. Reporting to the OAC and making publicly available all
decisions on Opioid Fund allocation applications,
distributions and expenditures.
h. Prior to any distribution of Opioid Funds within the Allocation
Region, The Participating Local Governments must establish an Opioid
Abatement Council (OAC) to oversee Opioid Fund allocation,
distribution, expenditures and dispute resolution. The OAC may be a
preexisting regional body or may be a new body created for purposes of
executing the obligations of this MOU.
i. The OAC for each Allocation Region shall be composed of
representation from both Participating Counties and Participating Towns
or Cities within the Region. The method of selecting members, and the
terms for which they will serve will be determined by the Allocation
Region's Participating Local Governments. All persons who serve on the
OAC must have work or educational experience pertaining to one or more
Approved Uses.
The Regional OAC will be responsible for the following actions:
i. Overseeing distribution of Opioid Funds from Participating
Local Governments to programs and services within the
Allocation Region for Approved Purposes.
0
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
ii. Annual review of expenditure reports from
Participating Local Jurisdictions within the Allocation
Region for compliance with Approved Purposes and the
terms of this MOU and any Settlement.
iii. In the case where Participating Local Governments chose
to forego their allocation of Opioid Funds:
(i) Approving or denying proposals by Participating Local
Governments or community groups to the OAC for use of
Opioid Funds within the Allocation Region.
(ii) Directing the Trustee to distribute Opioid Funds for use
by Participating Local Governments or community groups
whose proposals are approved by the OAC.
(iii) Administrating and maintaining records of all OAC
decisions and distributions of Opioid Funds.
iv. Reporting and making publicly available all decisions on
Opioid Fund allocation applications, distributions and
expenditures by the OAC or directly by Participating Local
Governments.
V. Developing and maintaining a centralized public dashboard
or other repository for the publication of expenditure data
from any Participating Local Government that receives
Opioid Funds, and for expenditures by the OAC in that
Allocation Region, which it shall update at least annually.
vi. If necessary, requiring and collecting additional outcome -
related data from Participating Local Governments to
evaluate the use of Opioid Funds, and all Participating
Local Governments shall comply with such requirements.
vii. Hearing complaints by Participating Local Governments
within the Allocation Region regarding alleged failure to
(1) use Opioid Funds for Approved Purposes or (2) comply
with reporting requirements.
5. Participating Local Governments may agree and elect to share,
pool, or collaborate with their respective allocation of Opioid Funds in any
manner they choose by adopting a Regional Agreement, so long as such
sharing, pooling, or collaboration is used for Approved Purposes and
complies with the terms of this MOU and any Settlement.
7
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
6. Nothing in this MOU should alter or change any Participating
Local Government's rights to pursue its own claim. Rather, the intent of
this MOU is to join all parties who wish to be Participating Local
Governments to agree upon an allocation formula for any Opioid Funds
from any future binding Settlement with one or more Pharmaceutical
Supply Chain Participants for all Local Governments in the State of
Washington.
7. If any Participating Local Government disputes the amount it
receives from its allocation of Opioid Funds, the Participating Local
Government shall alert its respective OAC within sixty (60) days of
discovering the information underlying the dispute. Failure to alert its
OAC within this time frame shall not constitute a waiver of the
Participating Local Government's right to seek recoupment of any
deficiency in its allocation of Opioid Funds.
8. If any OAC concludes that a Participating Local Government's
expenditure of its allocation of Opioid Funds did not comply with the
Approved Purposes listed in Exhibit A, or the terms of this MOU, or that
the Participating Local Government otherwise misused its allocation of
Opioid Funds, the OAC may take remedial action against the alleged
offending Participating Local Government. Such remedial action is left to
the discretion of the OAC and may include withholding future Opioid
Funds owed to the offending Participating Local Government or requiring
the offending Participating Local Government to reimburse improperly
expended Opioid Funds back to the OAC to be re -allocated to the
remaining Participating Local Governments within that Region.
9. All Participating Local Governments and OAC shall maintain all
records related to the receipt and expenditure of Opioid Funds for no less
than five (5) years and shall make such records available for review by
any other Participating Local Government or OAC, or the public. Records
requested by the public shall be produced in accordance with
Washington's Public Records Act RCW 42.56.001 et seq. Records
requested by another Participating Local Government or an OAC shall be
produced within twenty-one (21) days of the date the record request was
received. This requirement does not supplant any Participating Local
Government or OAC's obligations under Washington's Public Records
Act RCW 42.56.001 et seq.
D. Payment of Counsel and Litigation Expenses
1. The Litigating Local Governments have incurred attorneys' fees
and litigation expenses relating to their prosecution of claims against the
Pharmaceutical Supply Chain Participants, and this prosecution has inured to the
benefit of all Participating Local Governments. Accordingly, a Washington
0
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
Government Fee Fund ("GFF") shall be established that ensures that all Parties
that receive Opioid Funds contribute to the payment of fees and expenses incurred
to prosecute the claims against the Pharmaceutical Supply Chain Participants,
regardless of whether they are litigating or non -litigating entities.
2. The amount of the GFF shall be based as follows: the funds to be
deposited in the GFF shall be equal to 15% of the total cash value of the Opioid
Funds.
3. The maximum percentage of any contingency fee agreement
permitted for compensation shall be 15% of the portion of the Opioid Funds
allocated to the Litigating Local Government that is a party to the contingency fee
agreement, plus expenses attributable to that Litigating Local Government. Under
no circumstances may counsel collect more for its work on behalf of a Litigating
Local Government than it would under its contingency agreement with that
Litigating Local Government.
4. Payments from the GFF shall be overseen by a committee (the
"Opioid Fee and Expense Committee") consisting of one representative of the
following law firms: (a) Keller Rohrback L.LP.; (b) Hagens Berman Sobol
Shapiro LLP; (c) Goldfarb & Huck Roth Riojas, PLLC; and (d) Napoli Shkolnik
PLLC. The role of the Opioid Fee and Expense Committee shall be limited to
ensuring that the GFF is administered in accordance with this Section.
5. In the event that settling Pharmaceutical Supply Chain Participants
do not pay the fees and expenses of the Participating Local Governments directly
at the time settlement is achieved, payments to counsel for Participating Local
Governments shall be made from the GFF over not more than three years, with
50% paid within 12 months of the date of Settlement and 25% paid in each
subsequent year, or at the time the total Settlement amount is paid to the Trustee
by the Defendants, whichever is sooner.
6. Any funds remaining in the GFF in excess of. (i) the amounts
needed to cover Litigating Local Governments' private counsel's representation
agreements, and (ii) the amounts needed to cover the common benefit tax
discussed in Section C.8 below (if not paid directly by the Defendants in
connection with future settlement(s), shall revert to the Participating Local
Governments pro rata according to the percentages set forth in Exhibits B, to be
used for Approved Purposes as set forth herein and in Exhibit A.
7. In the event that funds in the GFF are not sufficient to pay all fees
and expenses owed under this Section, payments to counsel for all Litigating
Local Governments shall be reduced on a pro rata basis. The Litigating Local
Governments will not be responsible for any of these reduced amounts.
0
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
8. The Parties anticipate that any Opioid Funds they receive will be
subject to a common benefit "tax" imposed by the court in In Re: National
Prescription Opiate Litigation, United States District Court for the Northern
District of Ohio, Case No. 1:17-and-02804-DAP ("Common Benefit Tax"). If this
occurs, the Participating Local Governments shall first seek to have the settling
defendants pay the Common Benefit Tax. If the settling defendants do not agree
to pay the Common Benefit Tax, then the Common Benefit Tax shall be paid
from the Opioid Funds and by both litigating and non -litigating Local
Governments. This payment shall occur prior to allocation and distribution of
Rinds to the Participating Local Governments. In the event that GFF is not fully
exhausted to pay the Litigating Local Governments' private counsel's
representation agreements, excess funds in the GFF shall be applied to pay the
Common Benefit Tax (if any).
E. General Terms
1. If any Participating Local Government believes another
Participating Local Government, not including the Regional Abatement Advisory
Councils, violated the terms of this MOU, the alleging Participating Local
Government may seek to enforce the terms of this MOU in the court in which any
applicable Settlement(s) was entered, provided the alleging Participating Local
Government first provides the alleged offending Participating Local Government
notice of the alleged violation(s) and a reasonable opportunity to cure the alleged
violation(s). In such an enforcement action, any alleging Participating Local
Government or alleged offending Participating Local Government may be
represented by their respective public entity in accordance with Washington law.
2. Nothing in this MOU shall be interpreted to waive the right of any
Participating Local Government to seek judicial relief for conduct occurring
outside the scope of this MOU that violates any Washington law. In such an
action, the alleged offending Participating Local Government, including the
Regional Abatement Advisory Councils, may be represented by their respective
public entities in accordance with Washington law. In the event of a conflict, any
Participating Local Government, including the Regional Abatement Advisory
Councils and its Members, may seek outside representation to defend itself
against such an action.
3. Venue for any legal action related to this MOU shall be in the
court in which the Participating Local Government is located or in accordance
with the court rules on venue in that jurisdiction. This provision is not intended to
expand the court rules on venue.
4. This MOU may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which shall constitute one and the
same instrument. The Participating Local Governments approve the use of
electronic signatures for execution of this MOU. All use of electronic signatures
10
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
shall be governed by the Uniform Electronic Transactions Act, C.R.S. §§ 24-71.3-
101, et seq. The Parties agree not to deny the legal effect or enforceability of the
MOU solely because it is in electronic form or because an electronic record was
used in its formation. The Participating Local Government agree not to object to
the admissibility of the MOU in the form of an electronic record, or a paper copy
of an electronic document, or a paper copy of a document bearing an electronic
signature, on the grounds that it is an electronic record or electronic signature or
that it is not in its original form or is not an original.
5. Each Participating Local Government represents that all
procedures necessary to authorize such Participating Local Government's
execution of this MOU have been performed and that the person signing for such
Party has been authorized to execute the MOU.
[Remainder of Page Intentionally Left Blank — Signature Pages Follow]
11
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
This One Washington Memorandum of Understanding Between Washington
Municipalities is signed this 27 day of April , 2022 by:
Ir
DocuSigned by:
6bt f P4 A SWuL
Name & Title Robert Putaansuu,
On behalf of City of Port Orchard
`����i�sttr i r rrrr►l�f�
a.
SEA
f : Lo �• �-`
rrrrrii Ai
12
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
EXHIBIT A
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
OPIOID ABATEMENT STRATEGIES
PART ONE: TREATMENT
A. TREAT OPIOID USE DISORDER (OUD
Support treatment of Opioid Use Disorder (OUD) and any co-occurring Substance Use
Disorder or Mental Health (SUD/MH) conditions, co -usage, and/or co -addiction through
evidence -based, evidence -informed, or promising programs or strategies that may include,
but are not limited to, the following:
1. Expand availability of treatment for OUD and any co-occurring SUD/MH conditions,
co -usage, and/or co -addiction, including all forms of Medication -Assisted Treatment
(MAT) approved by the U.S. Food and Drug Administration.
2. Support and reimburse services that include the full American Society of Addiction
Medicine (ASAM) continuum of care for OUD and any co-occurring SUD/MH
conditions, co -usage, and/or co -addiction, including but not limited to:
a. Medication -Assisted Treatment (MAT);
b. Abstinence -based treatment;
c. Treatment, recovery, or other services provided by states, subdivisions,
community health centers; non -for -profit providers; or for -profit providers;
d. Treatment by providers that focus on OUD treatment as well as treatment by
providers that offer OUD treatment along with treatment for other SUD/MH
conditions, co -usage, and/or co -addiction; or
e. Evidence -informed residential services programs, as noted below.
3. Expand telehealth to increase access to treatment for OUD and any co-occurring
SUD/MH conditions, co -usage, and/or co -addiction, including MAT, as well as
counseling, psychiatric support, and other treatment and recovery support services.
4. Improve oversight of Opioid Treatment Programs (OTPs) to assure evidence -based,
evidence -informed, or promising practices such as adequate methadone dosing.
5. Support mobile intervention, treatment, and recovery services, offered by qualified
professionals and service providers, such as peer recovery coaches, for persons with
OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction and
for persons who have experienced an opioid overdose.
6. Support treatment of mental health trauma resulting from the traumatic experiences of
the opioid user (e.g., violence, sexual assault, human trafficking, or adverse childhood
experiences) and family members (e.g., surviving family members after an overdose
1
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
or overdose fatality), and training of health care personnel to identify and address such
trauma.
7. Support detoxification (detox) and withdrawal management services for persons with
OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction,
including medical detox, referral to treatment, or connections to other services or
supports.
8. Support training on MAT for health care providers, students, or other supporting
professionals, such as peer recovery coaches or recovery outreach specialists,
including telementoring to assist community -based providers in rural or underserved
areas.
9. Support workforce development for addiction professionals who work with persons
with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction.
10. Provide fellowships for addiction medicine specialists for direct patient care,
instructors, and clinical research for treatments.
11. Provide funding and training for clinicians to obtain a waiver under the federal Drug
Addiction Treatment Act of 2000 (DATA 2000) to prescribe MAT for OUD, and
provide technical assistance and professional support to clinicians who have obtained
a DATA 2000 waiver.
12. Support the dissemination of web -based training curricula, such as the American
Academy of Addiction Psychiatry's Provider Clinical Support Service-Opioids web -
based training curriculum and motivational interviewing.
13. Support the development and dissemination of new curricula, such as the American
Academy of Addiction Psychiatry's Provider Clinical Support Service for
Medication -Assisted Treatment.
B. SUPPORT PEOPLE IN TREATMENT AND RECOVERY
Support people in treatment for and recovery from OUD and any co-occurring SUD/MH
conditions, co -usage, and/or co -addiction through evidence -based, evidence -informed, or
promising programs or strategies that may include, but are not limited to, the following:
1. Provide the full continuum of care of recovery services for OUD and any co-occurring
SUD/MH conditions, co -usage, and/or co -addiction, including supportive housing,
residential treatment, medical detox services, peer support services and counseling,
community navigators, case management, and connections to community -based
services.
2. Provide counseling, peer -support, recovery case management and residential
treatment with access to medications for those who need it to persons with OUD and
any co-occurring SUD/MH conditions, co -usage, and/or co -addiction.
W
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
3. Provide access to housing for people with OUD and any co-occurring SUD/MH
conditions, co -usage, and/or co -addiction, including supportive housing, recovery
housing, housing assistance programs, or training for housing providers.
4. Provide community support services, including social and legal services, to assist in
deinstitutionalizing persons with OUD and any co-occurring SUD/MH conditions, co -
usage, and/or co -addiction.
5. Support or expand peer -recovery centers, which may include support groups, social
events, computer access, or other services for persons with OUD and any co-occurring
SUD/MH conditions, co -usage, and/or co -addiction.
6. Provide employment training or educational services for persons in treatment for or
recovery from OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -
addiction.
7. Identify successful recovery programs such as physician, pilot, and college recovery
programs, and provide support and technical assistance to increase the number and
capacity of high -quality programs to help those in recovery.
8. Engage non -profits, faith -based communities, and community coalitions to support
people in treatment and recovery and to support family members in their efforts to
manage the opioid user in the family.
9. Provide training and development of procedures for government staff to appropriately
interact and provide social and other services to current and recovering opioid users,
including reducing stigma.
10. Support stigma reduction efforts regarding treatment and support for persons with
OUD, including reducing the stigma on effective treatment.
C. CONNECT PEOPLE WHO NEED HELP TO THE HELP THEY NEED
(CONNECTIONS TO CARE)
Provide connections to care for people who have — or are at risk of developing — OUD and
any co-occurring SUD/MH conditions, co -usage, and/or co -addiction through evidence -
based, evidence -informed, or promising programs or strategies that may include, but are not
limited to, the following:
1. Ensure that health care providers are screening for OUD and other risk factors and
know how to appropriately counsel and treat (or refer if necessary) a patient for OUD
treatment.
2. Support Screening, Brief Intervention and Referral to Treatment (SBIRT) programs to
reduce the transition from use to disorders.
3. Provide training and long-term implementation of SBIRT in key systems (health,
schools, colleges, criminal justice, and probation), with a focus on youth and young
adults when transition from misuse to opioid disorder is common.
3
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
4. Purchase automated versions of SBIRT and support ongoing costs of the technology.
5. Support training for emergency room personnel treating opioid overdose patients on
post -discharge planning, including community referrals for MAT, recovery case
management or support services.
6. Support hospital programs that transition persons with OUD and any co-occurring
SUD/MH conditions, co -usage, and/or co -addiction, or persons who have experienced
an opioid overdose, into community treatment or recovery services through a bridge
clinic or similar approach.
7. Support crisis stabilization centers that serve as an alternative to hospital emergency
departments for persons with OUD and any co-occurring SUD/MH conditions, co -
usage, and/or co -addiction or persons that have experienced an opioid overdose.
8. Support the work of Emergency Medical Systems, including peer support specialists,
to connect individuals to treatment or other appropriate services following an opioid
overdose or other opioid-related adverse event.
9. Provide funding for peer support specialists or recovery coaches in emergency
departments, detox facilities, recovery centers, recovery housing, or similar settings;
offer services, supports, or connections to care to persons with OUD and any co-
occurring SUD/MH conditions, co -usage, and/or co -addiction or to persons who have
experienced an opioid overdose.
10. Provide funding for peer navigators, recovery coaches, care coordinators, or care
managers that offer assistance to persons with OUD and any co-occurring SUD/MH
conditions, co -usage, and/or co -addiction or to persons who have experienced on
opioid overdose.
11. Create or support school -based contacts that parents can engage with to seek
immediate treatment services for their child; and support prevention, intervention,
treatment, and recovery programs focused on young people.
12. Develop and support best practices on addressing OUD in the workplace.
13. Support assistance programs for health care providers with OUD.
14. Engage non -profits and the faith community as a system to support outreach for
treatment.
15. Support centralized call centers that provide information and connections to
appropriate services and supports for persons with OUD and any co-occurring
SUD/MH conditions, co -usage, and/or co -addiction.
16. Create or support intake and call centers to facilitate education and access to
treatment, prevention, and recovery services for persons with OUD and any co-
occurring SUD/MH conditions, co -usage, and/or co -addiction.
rd
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
17. Develop or support a National Treatment Availability Clearinghouse — a
multistate/nationally accessible database whereby health care providers can list
locations for currently available in -patient and out -patient OUD treatment services
that are accessible on a real-time basis by persons who seek treatment.
D. ADDRESS THE NEEDS OF CRIMINAL -JUSTICE -INVOLVED PERSONS
Address the needs of persons with OUD and any co-occurring SUD/MH conditions, co -
usage, and/or co -addiction who are involved — or are at risk of becoming involved — in the
criminal justice system through evidence -based, evidence -informed, or promising programs
or strategies that may include, but are not limited to, the following:
1. Support pre -arrest or post -arrest diversion and deflection strategies for persons with
OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction,
including established strategies such as:
a. Self -referral strategies such as the Angel Programs or the Police Assisted
Addiction Recovery Initiative (PAARI);
b. Active outreach strategies such as the Drug Abuse Response Team (DART)
model;
c. "Naloxone Plus" strategies, which work to ensure that individuals who have
received naloxone to reverse the effects of an overdose are then linked to
treatment programs or other appropriate services;
d. Officer prevention strategies, such as the Law Enforcement Assisted Diversion
(LEAD) model;
e. Officer intervention strategies such as the Leon County, Florida Adult Civil
Citation Network or the Chicago Westside Narcotics Diversion to Treatment
Initiative;
f. Co -responder and/or alternative responder models to address OUD-related 911
calls with greater SUD expertise and to reduce perceived barriers associated with
law enforcement 911 responses; or
g. County prosecution diversion programs, including diversion officer salary, only
for counties with a population of 50,000 or less. Any diversion services in matters
involving opioids must include drug testing, monitoring, or treatment.
2. Support pre-trial services that connect individuals with OUD and any co-occurring
SUD/MH conditions, co -usage, and/or co -addiction to evidence -informed treatment,
including MAT, and related services.
3. Support treatment and recovery courts for persons with OUD and any co-occurring
SUD/MH conditions, co -usage, and/or co -addiction, but only if these courts provide
referrals to evidence -informed treatment, including MAT.
5
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
4. Provide evidence -informed treatment, including MAT, recovery support, or other
appropriate services to individuals with OUD and any co-occurring SUD/MH
conditions, co -usage, and/or co -addiction who are incarcerated in jail or prison.
5. Provide evidence -informed treatment, including MAT, recovery support, or other
appropriate services to individuals with OUD and any co-occurring SUD/MH
conditions, co -usage, and/or co -addiction who are leaving jail or prison have recently
left jail or prison, are on probation or parole, are under community corrections
supervision, or are in re-entry programs or facilities.
6. Support critical time interventions (CTI), particularly for individuals living with dual -
diagnosis OUD/serious mental illness, and services for individuals who face
immediate risks and service needs and risks upon release from correctional settings.
7. Provide training on best practices for addressing the needs of criminal -justice -
involved persons with OUD and any co-occurring SUD/MH conditions, co -usage,
and/or co -addiction to law enforcement, correctional, or judicial personnel or to
providers of treatment, recovery, case management, or other services offered in
connection with any of the strategies described in this section.
E. ADDRESS THE NEEDS OF PREGNANT OR PARENTING WOMEN AND
THEIR FAMILIES, INCLUDING BABIES WITH NEONATAL ABSTINENCE
SYNDROME
Address the needs of pregnant or parenting women with OUD and any co-occurring
SUD/MH conditions, co -usage, and/or co -addiction, and the needs of their families, including
babies with neonatal abstinence syndrome, through evidence -based, evidence -informed, or
promising programs or strategies that may include, but are not limited to, the following:
1. Support evidence -based, evidence -informed, or promising treatment, including MAT,
recovery services and supports, and prevention services for pregnant women — or
women who could become pregnant — who have OUD and any co-occurring SUD/MH
conditions, co -usage, and/or co -addiction, and other measures to educate and provide
support to families affected by Neonatal Abstinence Syndrome.
2. Provide training for obstetricians or other healthcare personnel that work with
pregnant women and their families regarding treatment of OUD and any co-occurring
SUD/MH conditions, co -usage, and/or co -addiction.
3. Provide training to health care providers who work with pregnant or parenting women
on best practices for compliance with federal requirements that children born with
Neonatal Abstinence Syndrome get referred to appropriate services and receive a plan
of safe care.
4. Provide enhanced support for children and family members suffering trauma as a
result of addiction in the family; and offer trauma -informed behavioral health
treatment for adverse childhood events.
9
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
5. Offer enhanced family supports and home -based wrap -around services to persons with
OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction,
including but not limited to parent skills training.
6. Support for Children's Services — Fund additional positions and services, including
supportive housing and other residential services, relating to children being removed
from the home and/or placed in foster care due to custodial opioid use.
PART TWO: PREVENTION
F. PREVENT OVER -PRESCRIBING AND ENSURE APPROPRIATE
PRESCRIBING AND DISPENSING OF OPIOIDS
Support efforts to prevent over -prescribing and ensure appropriate prescribing and dispensing
of opioids through evidence -based, evidence -informed, or promising programs or strategies
that may include, but are not limited to, the following:
1. Training for health care providers regarding safe and responsible opioid prescribing,
dosing, and tapering patients off opioids.
2. Academic counter -detailing to educate prescribers on appropriate opioid prescribing.
3. Continuing Medical Education (CME) on appropriate prescribing of opioids.
4. Support for non-opioid pain treatment alternatives, including training providers to
offer or refer to multi -modal, evidence -informed treatment of pain.
5. Support enhancements or improvements to Prescription Drug Monitoring Programs
(PDMPs), including but not limited to improvements that:
a. Increase the number of prescribers using PDMPs;
b. Improve point -of -care decision -making by increasing the quantity, quality, or
format of data available to prescribers using PDMPs or by improving the
interface that prescribers use to access PDMP data, or both; or
c. Enable states to use PDMP data in support of surveillance or intervention
strategies, including MAT referrals and follow-up for individuals identified
within PDMP data as likely to experience OUD.
6. Development and implementation of a national PDMP — Fund development of a
multistate/national PDMP that permits information sharing while providing
appropriate safeguards on sharing of private health information, including but not
limited to:
a. Integration of PDMP data with electronic health records, overdose episodes,
and decision support tools for health care providers relating to OUD.
7
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
b. Ensuring PDMPs incorporate available overdose/naloxone deployment data,
including the United States Department of Transportation's Emergency
Medical Technician overdose database.
7. Increase electronic prescribing to prevent diversion or forgery.
8. Educate Dispensers on appropriate opioid dispensing.
G. PREVENT MISUSE OF OPIOIDS
Support efforts to discourage or prevent misuse of opioids through evidence -based, evidence -
informed, or promising programs or strategies that may include, but are not limited to, the
following:
1. Corrective advertising or affirmative public education campaigns based on evidence.
2. Public education relating to drug disposal.
3. Drug take -back disposal or destruction programs.
4. Fund community anti -drug coalitions that engage in drug prevention efforts.
5. Support community coalitions in implementing evidence -informed prevention, such
as reduced social access and physical access, stigma reduction — including staffing,
educational campaigns, support for people in treatment or recovery, or training of
coalitions in evidence -informed implementation, including the Strategic Prevention
Framework developed by the U.S. Substance Abuse and Mental Health Services
Administration (SAMHSA).
6. Engage non -profits and faith -based communities as systems to support prevention.
7. Support evidence -informed school and community education programs and
campaigns for students, families, school employees, school athletic programs, parent -
teacher and student associations, and others.
8. School -based or youth -focused programs or strategies that have demonstrated
effectiveness in preventing drug misuse and seem likely to be effective in preventing
the uptake and use of opioids.
9. Support community -based education or intervention services for families, youth, and
adolescents at risk for OUD and any co-occurring SUD/MH conditions, co -usage,
and/or co -addiction.
10. Support evidence -informed programs or curricula to address mental health needs of
young people who may be at risk of misusing opioids or other drugs, including
emotional modulation and resilience skills.
11. Support greater access to mental health services and supports for young people,
including services and supports provided by school nurses or other school staff, to
N.
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
address mental health needs in young people that (when not properly addressed)
increase the risk of opioid or other drug misuse.
H. PREVENT OVERDOSE DEATHS AND OTHER HARMS
Support efforts to prevent or reduce overdose deaths or other opioid-related harms through
evidence -based, evidence -informed, or promising programs or strategies that may include,
but are not limited to, the following:
1. Increase availability and distribution of naloxone and other drugs that treat overdoses
for first responders, overdose patients, opioid users, families and friends of opioid
users, schools, community navigators and outreach workers, drug offenders upon
release from jail/prison, or other members of the general public.
2. Provision by public health entities of free naloxone to anyone in the community,
including but not limited to provision of intra-nasal naloxone in settings where other
options are not available or allowed.
3. Training and education regarding naloxone and other drugs that treat overdoses for
first responders, overdose patients, patients taking opioids, families, schools, and
other members of the general public.
4. Enable school nurses and other school staff to respond to opioid overdoses, and
provide them with naloxone, training, and support.
5. Expand, improve, or develop data tracking software and applications for
overdoses/naloxone revivals.
6. Public education relating to emergency responses to overdoses.
7. Public education relating to immunity and Good Samaritan laws.
8. Educate first responders regarding the existence and operation of immunity and Good
Samaritan laws.
9. Expand access to testing and treatment for infectious diseases such as HIV and
Hepatitis C resulting from intravenous opioid use.
10. Support mobile units that offer or provide referrals to treatment, recovery supports,
health care, or other appropriate services to persons that use opioids or persons with
OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction.
11. Provide training in treatment and recovery strategies to health care providers,
students, peer recovery coaches, recovery outreach specialists, or other professionals
that provide care to persons who use opioids or persons with OUD and any co-
occurring SUD/MH conditions, co -usage, and/or co -addiction.
12. Support screening for fentanyl in routine clinical toxicology testing.
9
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
PART THREE: OTHER STRATEGIES
I. FIRST RESPONDERS
In addition to items C8, D1 through D7, H1, H3, and H8, support the following:
1. Current and future law enforcement expenditures relating to the opioid epidemic.
2. Educate law enforcement or other first responders regarding appropriate practices and
precautions when dealing with fentanyl or other drugs.
J. LEADERSHIP, PLANNING AND COORDINATION
Support efforts to provide leadership, planning, and coordination to abate the opioid epidemic
through activities, programs, or strategies that may include, but are not limited to, the
following:
1. Community regional planning to identify goals for reducing harms related to the
opioid epidemic, to identify areas and populations with the greatest needs for
treatment intervention services, or to support other strategies to abate the opioid
epidemic described in this opioid abatement strategy list.
2. A government dashboard to track key opioid-related indicators and supports as
identified through collaborative community processes.
3. Invest in infrastructure or staffing at government or not -for -profit agencies to support
collaborative, cross -system coordination with the purpose of preventing
overprescribing, opioid misuse, or opioid overdoses, treating those with OUD and any
co-occurring SUD/MH conditions, co -usage, and/or co -addiction, supporting them in
treatment or recovery, connecting them to care, or implementing other strategies to
abate the opioid epidemic described in this opioid abatement strategy list.
4. Provide resources to staff government oversight and management of opioid abatement
programs.
K. TRAINING
In addition to the training referred to in various items above, support training to abate the
opioid epidemic through activities, programs, or strategies that may include, but are not
limited to, the following:
1. Provide funding for staff training or networking programs and services to improve the
capability of government, community, and not -for -profit entities to abate the opioid
crisis.
2. Invest in infrastructure and staffing for collaborative cross -system coordination to
prevent opioid misuse, prevent overdoses, and treat those with OUD and any co-
occurring SUD/MH conditions, co -usage, and/or co -addiction, or implement other
10
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
strategies to abate the opioid epidemic described in this opioid abatement strategy list
(e.g., health care, primary care, pharmacies, PDMPs, etc.).
L. RESEARCH
Support opioid abatement research that may include, but is not limited to, the following:
1. Monitoring, surveillance, and evaluation of programs and strategies described in this
opioid abatement strategy list.
2. Research non-opioid treatment of chronic pain.
3. Research on improved service delivery for modalities such as SBIRT that demonstrate
promising but mixed results in populations vulnerable to opioid use disorders.
4. Research on innovative supply-side enforcement efforts such as improved detection of
mail -based delivery of synthetic opioids.
5. Expanded research on swift/certain/fair models to reduce and deter opioid misuse
within criminal justice populations that build upon promising approaches used to
address other substances (e.g. Hawaii HOPE and Dakota 24/7).
6. Research on expanded modalities such as prescription methadone that can expand
access to MAT.
11
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
EXHIBIT B
Local
County Government
% Allocation
Adams County
Adams County
0.1638732475%
Hatton
Lind
Othello
Ritzville
_
Washtucna
County Total:
0.1638732475
Asotin County
Asotin County
0.4694498386%
Asotin
Clarkston
County Total:
0.4694498386%
Benton County
Benton County
1.4848831892%
Benton City
Kennewick
0.5415650564%
Prosser
Richland
0.4756779517%
West Richland
0.0459360490%
County Total:
2.5480622463%
Chelan County
Chelan County
0.7434914485%
Cashmere
Chelan
_
Entiat
Leavenworth
_
Wenatchee
0.2968333494%
County Total:
1.0403247979
Clallam County
Clallam County
1.3076983401%
Forks
Port Angeles
0.4598370527%
Sequim
County Total:
1.7675353928%
*** - Local Government appears in multiple counties B-1
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
EXHIBIT B
Local
County Government
% Allocation
Clark County
Clark County
4.5149775326%
Battle Ground
0.1384729857%
Camas
0.2691592724%
La Center
Ridgefield
Vancouver
1.7306605325%
Washougal
0.1279328220%
Woodland***
Yacolt
County Total: 6.7812031452
Columbia County
Columbia County 0.0561699537%
Dayton
Starbuck
County Total: 0.0561699537%
Cowlitz County
Cowlitz County 1.7226945990%
Castle Rock
Kalama
Kelso 0.1331145270%
Longview 0.6162736905
Woodland***
County Total: 2.4720828165
Douglas County
Douglas County 0.3932175175%
Bridgeport
Coulee Dam***
East Wenatchee 0.0799810865%
Mansfield
Rock Island _
Waterville
County Total: 0.4731986040%
Ferry County
Ferry County 0.1153487994%
Republic
County Total: 0.1153487994%
*** - Local Government appears in multiple counties B-2
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
EXHIBIT B
Local
County Government % Allocation
Franklin County
Franklin County 0.3361237144%
Kahlotus _
Mesa
Pasco 0.4278056066%
County Total: 0.7639293210%
Garfield County
Garfield County 0.0321982209%
Pomeroy
County Total: 0.0321982209
Grant County
Grant County 0.9932572167%
Coulee City
Coulee Dam***
Electric City
Ephrata
George
Grand Coulee
Hartline
Krupp
Mattawa
Moses Lake 0.2078293909%
Quincy
Royal City
Soap Lake
Warden
Wilson Creek
County Total: 1.2010866076%
*** - Local Government appears in multiple counties B-3
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
EXHIBIT B
Local
County Government % Allocation
Grays Harbor County
Grays Harbor County 0.9992429138%
Aberdeen 0.2491525333
Cosmopolis
Elma
Hoquiam
McCleary
Montesano
Oakville
Ocean Shores
Westport
County Total: 1.2483954471
Island County
Island County 0.6820422610%
Coupeville
I analau
Oak Harbor 0.2511550431%
County Total: 0.9331973041%
Jefferson County
Jefferson County 0.4417137380%
Port Townsend
County Total: 0.4417137380%
*** - Local Government appears in multiple counties B-4
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
EXHIBIT B
Local
County Government
% Allocation
King County
King County
13.9743722662%
Algona
Auburn***
0.2622774917%
Beaux Arts Village
Bellevue
1.1300592573
Black Diamond
Bothell***
0.1821602716%
Burien
0.0270962921%
Carnation
Clyde Hill
Covington
0.0118134406%
Des Moines
0.1179764526%
Duvall
Enumclaw***
0.0537768326%
Federal Way
0.3061452240%
Hunts Point
Issaquah
0.1876240107%
Kenmore
0.0204441024%
Kent
0.5377397676%
Kirkland
0.5453525246%
Lake Forest Park
0.0525439124%
Maple Valley
0.0093761587%
Medina
Mercer Island
0.1751797481%
Milton***
Newcastle
0.0033117880%
Normandy Park
North Bend
Pacific***
Redmond
0.4839486007%
Renton
0.7652626920%
Sammamish
0.0224369090%
SeaTac
0.1481551278%
Seattle
6.6032403816%
Shoreline
0.0435834501%
Skykomish
Snoqualmie
0.0649164481%
Tukwila
0.3032205739%
Woodinville
0.0185516364%
Yarrow Point
County Total: 26.0505653608%
*** - Local Government appears in multiple counties B-5
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
EXHIBIT B
Local
County Government
% Allocation
Kitsap County
Kitsap County
2.6294133668%
Bainbridge Island
0.1364686014%
Bremerton
0.6193374389%
Port Orchard
0.1009497162%
Poulsbo
0.0773748246%
County Total:
3.5635439479%
Kittitas County
Kittitas County
0.3855704683%
Cle Elum
Ellensburg
0.0955824915%
Kittitas
Roslyn
_
South Cle Elum
County Total:
0.4811529598%
Klickitat County
Klickitat County
0.2211673457%
Bingen
Goldendale
White Salmon
_
County Total:
0.2211673457%
Lewis County
Lewis County
1.0777377479%
Centralia
0.1909990353%
Chehalis
Morton
Mossyrock
Napavine
Pe Ell
Toledo
_
Vader
_
Winlock
_
County Total:
1.2687367832%
*** - Local Government appears in multiple counties B-6
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
EXHIBIT B
Local
County Government
% Allocation
Lincoln County
Lincoln County
0.1712669645%
Almira
Creston
Davenport
Harrington
Odessa
Reardan
Sprague
Wilbur
County Total:
0.1712669645
Mason County
Mason County
0.8089918012%
Shelton
0.1239179888%
County Total:
0.9329097900%
Okanogan County
Okanogan County
0.6145043345%
Brewster
Conconully
Coulee Dam***
Elmer City
Nespelem
Okanogan
Omak
Oroville
Pateros
Riverside
Tonasket
Twisp
Winthrop
County Total:
0.6145043345
Pacific County
Pacific County
0.4895416466%
Ilwaco
Long Beach
Raymond
South Bend
County Total:
0.4895416466%
*** - Local Government appears in multiple counties B-7
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
EXHIBIT B
Local
County Government % Allocation
Pend Oreille County
Pend Oreille County 0.2566374940%
Cusick
Metaline
Metaline Falls
Newport
County Total:
0.2566374940%
Pierce County
Pierce County
7.2310164020%
Auburn***
0.0628522112%
Bonney Lake
0.1190773864%
Buckley
Carbonado
DuPont
Eatonville
Edgewood
0.0048016791%
Enumclaw***
0.0000000000
Fife
0.1955185481
Fircrest
Gig Harbor
0.0859963345%
Lakewood
0.5253640894%
Milton***
Orting
Pacific***
Puyallup
0.3845704814%
Roy
Ruston
South Prairie
Steilacoom
Sumner
0.1083157569%
Tacoma
3.2816374617%
University Place
0.0353733363%
Wilkeson
County Total:
12.0345236870%
San Juan County
San Juan County
0.2101495171%
Friday Harbor
County Total: 0.2101495171%
*** - Local Government appears in multiple counties B-8
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
EXHIBIT B
Local
County Government % Allocation
Skagit County
Burlington
0.1146861661%
Concrete
Hamilton
La Conner
Lyman
Mount Vernon
0.2801063665%
Sedro-Woolley
0.0661146351%
County Total:
1.6910058544%
Skamania County
Skamania County
0.1631931925%
North Bonneville
Stevenson
County Total:
0.1631931925%
Snohomish County
Snohomish County
6.9054415622%
Arlington
0.2620524080%
Bothell***
0.2654558588%
Brier
Darrington
Edmonds
0.3058936009%
Everett
1.9258363241
Gold Bar
Granite Falls
Index
Lake Stevens
0.1385202891%
Lynnwood
0.7704629214%
Marysville
0.3945067827%
Mill Creek
0.1227939546%
Monroe
0.1771621898%
Mountlake Terrace
0.2108935805%
Mukilteo
0.2561790702%
Snohomish
0.0861097964%
Stanwood
Sultan
Woodway
_
County Total: 11.8213083387%
*** - Local Government appears in multiple counties B-9
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
EXHIBIT B
Local
County Government % Allocation
Spokane Count
Spokane County
5.5623859292%
Airway Heights
Cheney
0.1238454349
Deer Park
Fairfield
Latah
Liberty Lake
0.0389636519%
Medical Lake
Millwood
Rockford
Spangle
Spokane
3.0872078287%
Spokane Valley
0.0684217500%
Waverly
County Total:
8.8808245947
Stevens County
Stevens County
0.7479240179%
Chewelah
Colville
Kettle Falls
Marcus
Northport
Springdale
County Total:
0.7479240179
Thurston County
Thurston County
2.3258492094%
Bucoda
Lacey
0.2348627221%
Olympia
0.6039423385%
Rainier
Tenino
Tumwater
0.2065982350%
Yelm
County Total:
3.3712525050%
Wahkiakum County
Wahkiakum County
0.0596582197%
Cathlamet
County Total: 0.0596582197%
*** - Local Government appears in multiple counties B-10
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E240C830F
EXHIBIT B
Local
County Government % Allocation
Walla Walla County
Walla Walla County 0.5543870294%
College Place
Prescott
Waitsburg
Walla Walla 0.3140768654%
County Total:
0.8684638948%
Whatcom County
Whatcom County
1.3452637306%
Bellingham
0.8978614577%
Blaine
Everson
Ferndale
0.0646101891%
Lynden
0.0827115612%
Nooksack
Sumas
County Total: 2.3904469386%
Whitman County
Whitman County 0.2626805837%
Albion
Colfax
Colton
Endicott
Farmington
Garfield
LaCrosse
Lamont
Malden
Oakesdale
Palouse
Pullman 0.2214837491%
Rosalia
St. John
Tekoa
Uniontown
County Total: 0.4841643328%
*** - Local Government appears in multiple counties B-11
DocuSign Envelope ID: BA02A434-2B9E-4B5A-AOEB-BC9E24OC83OF
EXHIBIT B
Local
County Government
% Allocation
Yakima County
Yakima County
1.9388392959%
Grandview
0.0530606109%
Granger
Harrah
Mabton
Moxee
Naches
Selah
Sunnyside
0.1213478384%
Tieton
Toppenish
Union Gap
Wapato
Yakima
0.6060410539
Zillah
County Total:
2.7192887991%
*** - Local Government appears in multiple counties B-12
DocuSign Envelope ID: 548F119A-66D9-454C-B279-8E10A7B7D3D2
Attachment B
ALLOCATION AGREEMENT GOVERNING THE ALLOCATION OF FUNDS PAID
BY THE SETTLING OPIOID DISTRIBUTORS IN WASHINGTON STATE
AUGUST 8, 2022
This Allocation Agreement Governing the Allocation of Funds Paid by the Settling
Opioid Distributors in Washington State (the "Allocation Agreement") governs the distribution
of funds obtained from AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson
Corporation (the "Settling Distributors") in connection with its resolution of any and all claims
by the State of Washington and the counties, cities, and towns in Washington State ("Local
Governments") against the Settling Distributors (the "Distributors Settlement"). The Distributors
Settlement including any amendments are attached hereto as Exhibit 1.
1. This Allocation Agreement is intended to be a State -Subdivision Agreement as
defined in Section I.VVV of the Global Settlement (the "Global Settlement"),
which is Exhibit H of the Distributors Settlement. This Allocation Agreement
shall be interpreted to be consistent with the requirements of a State -Subdivision
Agreement in the Global Settlement.
2. This Allocation Agreement shall become effective only if all of the following
occur:
A. All Litigating Subdivisions in Washington and 90% of Non -Litigating
Primary Subdivisions in Washington as the terms are used in Section
II.C.1 of the Distributors Settlement must execute and return the
Subdivision Settlement Participation Form, Exhibit F of the Distributors
Settlement (the "Participation Form") by September 23, 2022. This form
is also attached hereto as Exhibit 2.
B. The Consent Judgment and Stipulation of Dismissal with Prejudice,
Exhibit G of the Distributors Settlement, is filed and approved by the
Court.
C. The number of Local Governments that execute and return this Allocation
Agreement satisfies the participation requirements for a State -Subdivision
Agreement as specified in Exhibit O of the Global Settlement.
3. Requirements to become a Participating Local Government. To become a
Participating Local Government that can participate in this Allocation Agreement,
a Local Government must do all of the following:
A. The Local Government must execute and return this Allocation
Agreement.
B. The Local Government must release their claims against the Settling
Distributors and agree to by bound by the terms of the Distributors
Settlement by timely executing and returning the Participation Form. This
form is attached hereto as Exhibit 2.
DocuSign Envelope ID: 548F119A-66D9-454C-B279-8E10A7B7D3D2
C. Litigating Subdivisions must dismiss the Settling Distributors with
prejudice from their lawsuits. The Litigating Subdivisions are listed on
Exhibit B of the Distributors Settlement.
D. The Local Government must execute and return the One Washington
Memorandum of Understanding Between Washington Municipalities
("MOU") agreed to by the Participating Local Governments in
Washington State, which is attached hereto as Exhibit 3. As specified in
Paragraph 10.A of this Allocation Agreement, the Local Government may
elect in its discretion to execute the MOU for purposes of this Allocation
Agreement only.
A Local Government that meets all of the conditions in this paragraph shall be
deemed a "Participating Local Government." Alternatively, if the requirements of
Paragraphs 2(A), 2(B), and 2(C) of this Allocation Agreement are satisfied and
this Allocation Agreement becomes effective, then all Local Governments that
comply with Paragraph 3(B) of this Allocation Agreement shall be deemed a
"Participating Local Government."
4. This Allocation Agreement applies to the Washington Abatement Amount as
defined in Section IV.A of the Distributors Settlement. The maximum possible
Washington Abatement Amount for the Distributors Settlement is
$430,249,769.02. As specified in the Global Settlement, the Washington
Abatement Amount varies dependent on the percentage of Primary Subdivisions
that choose to become Participating Local Governments and whether there are
any Later Litigating Subdivisions as defined in Section I.EE of the Global
Settlement.
5. This Allocation Agreement does not apply to the Washington Fees and Costs as
defined in Section V of the Distributors Settlement. After satisfying its obligations
to its outside counsel for attorneys' fees and costs, the State estimates that it will
receive approximately $46 million for its own attorneys' fees and costs pursuant
to Section V.B.1 of the Distributors Settlement. The State shall utilize any and all
amounts it receives for its own attorneys' fees and costs pursuant to Section V.B.1
of the Distributors Settlement to provide statewide programs and services for
Opioid Remediation as defined in Section I.SS of the Global Settlement.
6. While this Allocation Agreement does not apply to the Washington Fees and
Costs as defined in Section V of the Distributors Settlement, Section V.B.2 of the
Distributors Settlement estimates that the Settling Distributors shall pay
$10,920,914.70 to Participating Litigating Subdivisions' attorneys for fees and
costs. The actual amount may be greater or less. This Allocation Agreement and
the MOU are a State Back -Stop Agreement. The total contingent fees an attorney
receives from the Contingency Fee Fund pursuant to Section II. D in Exhibit R
the Global Settlement, the MOU, and this Allocation Agreement combined cannot
exceed 15% of the portion of the LG Share paid to the Litigating Local
Government that retained that firm (i.e., if City X filed suit with outside counsel
2
DocuSign Envelope ID: 548F119A-66D9-454C-B279-8E10A7B7D3D2
on a contingency fee contract and City X receives $1,000,000 from the
Distributors Settlement, then the maximum that the firm can receive is $150,000
for fees.)
7. No portion of the Washington Fees and Costs as defined in Section V of the
Distributors Settlement and/or the State Share as defined in Paragraph 8.A of this
Allocation Agreement shall be used to fund the Government Fee Fund ("GFF")
referred to in Paragraph 10 of this Allocation Agreement and Section D of the
MOU, or in any other way to fund any Participating Local Government's
attorneys' fees, costs, or common benefit tax other than the aforementioned
payment by the Settling Distributors to Participating Litigating Subdivisions'
attorneys for fees and costs in Section V.13.2 of the Distributors Settlement.
8. The Washington Abatement Amount shall and must be used by the State and
Participating Local Governments for Opioid Remediation as defined in Section
I.SS of the Global Settlement, except as allowed by Section V of the Global
Settlement. Exhibit 4 is a non -exhaustive list of expenditures that qualify as
Opioid Remediation. Further, the Washington Abatement Amount shall and must
be used by the State and Participating Local Governments as provided for in the
Distributors Settlement.
9. The State and the Participating Local Governments agree to divide the
Washington Abatement Amount as follows:
A. Fifty percent (50%) to the State of Washington ("State Share").
B. Fifty percent (50%) to the Participating Local Governments ("LG Share").
10. The LG Share shall be distributed pursuant to the MOU attached hereto as Exhibit
3 as amended and modified in this Allocation Agreement.
11. For purposes of this Allocation Agreement only, the MOU is modified as follows
and any contrary provisions in the MOU are struck:
A. The MOU is amended to add new Section E.6, which provides as follows:
A Local Government may elect in its discretion to execute the
MOU for purposes of this Allocation Agreement only. If a Local
Governments executes the MOU for purposes of this Allocation
Agreement only, then the MOU will only bind such Local
Government and be effective with respect to this Allocation
Agreement and the Distributors Settlement, and not any other
Settlement as that term is defined in Section A.14 of the MOU. To
execute the MOU for purposes of this Allocation Agreement only,
the Local Government may either (a) check the applicable box on
its signature page of this Allocation Agreement that is returned or
(b) add language below its signature lines in the MOU that is
returned indicating that the Local Government is executing or has
DocuSign Envelope ID: 548F119A-66D9-454C-B279-8E10A7B7D3D2
executed the MOU only for purposes of the Allocation Agreement
Governing the Allocation of Funds Paid by the Settling Opioid
Distributors in Washington State.
B. Exhibit A of the MOU is replaced by Exhibit E of the Global Settlement,
which is attached as Exhibit 4 to this Agreement.
C. The definition of "Litigating Local Governments" in Section AA of the
MOU shall mean Local Governments that filed suit against one or more of
the Settling Defendants prior to May 3, 2022. The Litigating Local
Governments are listed on Exhibit B of the Distributors Settlement, and
are referred to as Litigating Subdivisions in the Distributors Settlement.
D. The definition of "National Settlement Agreement" in Section A.6 of the
MOU shall mean the Global Settlement.
E. The definition of "Settlement" in Section A.14 of the MOU shall mean the
Distributors Settlement.
F. The MOU is amended to add new Section C.4.g.vii, which provides as
follows:
"If a Participating Local Government receiving a direct payment
(a) uses Opioid Funds other than as provided for in the Distributors
Settlement, (b) does not comply with conditions for receiving
direct payments under the MOU, or (c) does not promptly submit
necessary reporting and compliance information to its Regional
Opioid Abatement Counsel ("Regional OAC") as defined at
Section CA.h of the MOU, then the Regional OAC may suspend
direct payments to the Participating Local Government after
notice, an opportunity to cure, and sufficient due process. If direct
payments to Participating Local Government are suspended, the
payments shall be treated as if the Participating Local Government
is foregoing their allocation of Opioid Funds pursuant to Section
C.4.d and C.4.j.iii of the MOU. In the event of a suspension, the
Regional OAC shall give prompt notice to the suspended
Participating Local Government and the Settlement Fund
Administrator specifying the reasons for the suspension, the
process for reinstatement, the factors that will be considered for
reinstatement, and the due process that will be provided. A
suspended Participating Local Government may apply to the
Regional OAC to be reinstated for direct payments no earlier than
five years after the suspension."
G. Consistent with how attorney fee funds for outside counsel for
Participating Local Subdivisions are being administered in most states
across the country, the Government Fee Fund ("GFF") set forth in the
2
DocuSign Envelope ID: 548F119A-66D9-454C-B279-8E10A7B7D3D2
MOU shall be overseen by the MDL Fee Panel (David R. Cohen, Randi S.
Ellis and Hon. David R. Herndon (ret.)). The Fee Panel will preside over
allocation and disbursement of attorney's fees in a manner consistent with
the Motion to Appoint the Fee Panel to Allocate and Disburse Attorney's
Fees Provided for in State Back -Stop Agreements and the Order
Appointing the Fee Panel to Allocate and Disburse Attorney's Fees
Provided for in State Back -Stop Agreements, Case No. 1:17-md-02804-
DAP Doc #: 4543 (June 17, 2022).
H. The GFF set forth in the MOU shall be funded by the LG Share of the
Washington Abatement Amount only. To the extent the common benefit
tax is not already payable by the Settling Distributors as contemplated by
Section D.8 of the MOU, the GFF shall be used to pay Litigating Local
Government contingency fee agreements and any common benefit tax
referred to in Section D of the MOU, which shall be paid on a pro rata
basis to eligible law firms as determined by the Fee Panel.
To fund the GFF, fifteen percent (15%) of the LG Share shall be deposited
in the GFF from each LG Share settlement payment until the Litigating
Subdivisions contingency fee agreements and common benefit tax (if any)
referred to in Section D of the MOU are satisfied. Under no circumstances
will any Non -Litigating Primary Subdivision -or Litigating Local
Government be required to contribute to the GFF more than 15% of the
portion of the LG Share allocated to such Non -Litigating Primary
Subdivision or Litigating Local Government. In addition, under no
circumstances will any portion of the LG Share allocated to a Litigating
Local Government be used to pay the contingency fees or litigation
expenses of counsel for some other Litigating Local Government.
The maximum amount of any Litigating Local Government contingency
fee agreement (from the Contingency Fee Fund pursuant to Section II. D
in Exhibit R the Global Settlement) payable to a law firm permitted for
compensation shall be fifteen percent (15%) of the portion of the LG
Share paid to the Litigating Local Government that retained that firm (i.e.,
if City X filed suit with outside counsel on a contingency fee contract and
City X receives $1,000,000 from the Distributors Settlement, then the
maximum that the firm can receive is $150,000 for fees.) The firms also
shall be paid documented expenses due under their contingency fee
agreements that have been paid by the law firm attributable to that
Litigating Local Government. Consistent with the Distributors Settlement
and Exhibit R of the Global Settlement, amounts due to Participating
Litigating Subdivisions' attorneys under this Allocation Agreement shall
not impact (i) costs paid by the subdivisions to their attorneys pursuant to
a State Back -Stop agreement, (ii) fees paid to subdivision attorneys from
the Common Benefit Fund for common benefit work performed by the
attorneys pursuant to Section II.0 of Exhibit R of the Global Settlement,
or (iii) costs paid to subdivision attorneys from the MDL Expense Fund
5
DocuSign Envelope ID: 548F119A-66D9-454C-B279-8E10A7B7D3D2
for expenses incurred by the attorneys pursuant to Section ILE of the
Global Settlement.
K. Under no circumstances may counsel receive more for its work on behalf
of a Litigating Local Government than it would under its contingency
agreement with that Litigating Local Government. To the extent a law
firm was retained by a Litigating Local Government on a contingency fee
agreement that provides for compensation at a rate that is less than fifteen
percent (15%) of that Litigating Local Government's recovery, the
maximum amount payable to that law firm referred to in Section D.3 of
the MOU shall be the percentage set forth in that contingency fee
agreement.
L. For the avoidance of doubt, both payments from the GFF and the payment
to the Participating Litigating Local Governments' attorneys for fees and
costs referred to in Paragraph 6 of this Allocation Agreement and Section
V.13.2 Distributors Settlement shall be included when calculating whether
the aforementioned fifteen percent (15%) maximum percentage (or less if
the provisions of Paragraph 10.K of this Allocation Agreement apply) of
any Litigating Local Government contingency fee agreement referred to
above has been met.
M. To the extent there are any excess funds in the GFF, the Fee Panel and the
Settlement Administrator shall facilitate the return of those funds to the
Participating Local Governments as provided for in Section D.6 of the
MOU.
12. In connection with the execution and administration of this Allocation
Agreement, the State and the Participating Local Governments agree to abide by
the Public Records Act, RCW 42.56 eq seq.
13. All Participating Local Governments, Regional OACs, and the State shall
maintain all non -transitory records related to this Allocation Agreement as well as
the receipt and expenditure of the funds from the Distributors Settlement for no
less than five (5) years.
14. If any party to this Allocation Agreement believes that a Participating Local
Government, Regional OAC, the State, an entity, or individual involved in the
receipt, distribution, or administration of the funds from the Distributors
Settlement has violated any applicable ethics codes or rules, a complaint shall be
lodged with the appropriate forum for handling such matters, with a copy of the
complaint promptly sent to the Washington Attorney General, Complex Litigation
Division, Division Chief, 800 Fifth Avenue, Suite 2000, Seattle, Washington
98104.
15. To the extent (i) a region utilizes a pre-existing regional body to establish its
Opioid Abatement Council pursuant to the Section 4.h of the MOU, and (ii) that
IN
DocuSign Envelope ID: 548F119A-66D9-454C-B279-8E10A7B7D3D2
pre-existing regional body is subject to the requirements of the Community
Behavioral Health Services Act, RCW 71.24 et seq., the State and the
Participating Local Governments agree that the Opioid Funds paid by the Settling
Distributors are subject to the requirements of the MOU and this Allocation
Agreement.
16. Upon request by the Settling Distributors, the Participating Local Governments
must comply with the Tax Cooperation and Reporting provisions of the
Distributors Settlement and the Global Settlement.
17. Venue for any legal action related to this Allocation Agreement (separate and
apart from the MOU, the Distributors Settlement, or the Global Settlement) shall
be in King County, Washington.
18. Each party represents that all procedures necessary to authorize such party's
execution of this Allocation Agreement have been performed and that such person
signing for such party has been authorized to execute this Allocation Agreement.
7
DocuSign Envelope ID: 548F119A-66D9-454C-B279-8E10A7B7D3D2
FOR THE STATE OF WASHINGTON:
ROBERT W.FERGUSON
Attorney General
JEFFREY G. RUPERT
Division Chief
Date:
DocuSign Envelope ID: 548F119A-66D9-454C-B279-8E10A7B7D3D2
FOR THE PARTICIPATING LOCAL GOVERNMENT:
Name of Participating Local Government:
Authorized signature:
—DocuSigned by:
9ebt *v P4aAJAAktk
Name: Robert Putaansuu
Title: Mayor
Date: August 16, 2022
City of Port Orchard
A Local Government may elect in its discretion to execute the MOU for purposes of this
Allocation Agreement only by checking this box (see Paragraph 10.A of this Allocation
Agreement):
❑ Local Government is executing the MOU in the form attached hereto as Exhibit 3, but
which is further amended and modified as set forth in this Allocation Agreement, only
purposes of this Allocation Agreement.
E