California's Opioid Settlements
California has joined national lawsuits against manufacturers, distributors, and other entities responsible for aiding the opioid epidemic and anticipates receiving funds from several opioid judgments. This page provides information for cities and counties regarding California's Opioid Settlements and Bankruptcies.
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Opioid Settlement Oversight
Monies from opioid settlements and bankruptcies are provided to states, cities, and counties through different Fund Accounts pursuant to the relevant National Opioid Settlement Agreements and National Mallinckrodt Bankruptcy Plan. California has named the Department of Health Care Services (DHCS) as the oversight and monitoring entity for funds received through these agreements.
California Settlement Funds
California State Fund
Pursuant to Government Code, Title 2, Division 3, Part 2, Chapter 6, Article 2, Section 12534, the Opioid Settlements Fund (OSF) was created in the State Treasury. Funds from opioid settlements allocated to the state for opioid remediation shall be deposited into the OSF. Use of funds within the OSF are determined and appropriated by the California legislature and subject to normal state budgetary processes. Statewide activities funded by the OSF are limited to opioid remediation activities per the National Opioid Settlement Agreements.
For more information about California's statewide activities, visit the State Projects Page on the DHCS Opioid Response website.
California Abatement Accounts Fund
The California (CA) Abatement Accounts Fund was established to provide funds to cities and counties for the abatement of the opioid crisis in California. Participating cities and counties (otherwise known as Participating Subdivisions) receive funds from this account annually, as determined by the relative National Opioid Settlement Agreements. Payment periods vary by settlement and can last up to eighteen (18) years.
DHCS' oversight of the CA Abatement Accounts Fund includes, but is not limited to, conducting related stakeholder engagement, monitoring the Participating Subdivisions for compliance, and preparing annual reports. Payments from the CA Abatement Accounts Fund are made directly to Participating Subdivisions from the National Administrator, BrownGreer PLC, not DHCS.
California Subdivision Fund
The California (CA) Subdivision Fund was established to provide funds to cities and counties that were among the first to bring lawsuits and litigation against national opioid defendants (otherwise known as Plaintiff Subdivisions). Plaintiff Subdivisions receive annual disbursements from the CA Subdivision Fund as specified in the National Opioid Settlements Agreements. Payment periods vary by settlement and can last up to eighteen (18) years.
DHCS' oversight of the CA Subdivision Fund includes monitoring the Plaintiff Subdivisions for compliance with annual reporting requirements for the report prepared by DHCS. Payments from the CA Subdivision Fund are made directly to Participating Subdivisions from the National Administrator, BrownGreer PLC, not DHCS.
NOTE: Plaintiff Subdivisions are included in references regarding “Participating Subdivisions" throughout the DHCS Opioid Settlements website.
California Bankruptcy Funds
NOAT II (California State Share)
Pursuant to the California Mallinckrodt Statewide Abatement Agreement, monies from the National Opioid Abetment Trust II (NOAT II) allocated to the State must be used on opioid remediation activities as listed in Exhibit 4 of the Mallinckrodt Bankruptcy Plan (otherwise known as Exhibit E in the National Opioid Settlement Agreements). The use of funds allocated from NOAT II are determined and appropriated by the California legislature and subject to normal state budgetary processes.
For more information about California's statewide activities, visit the State Projects webpage on the DHCS Opioid Response website.
NOAT II (Local Government Share)
California elected to distribute the majority of NOAT II funds to cities and counties for opioid remediation activities at the local level. Cities and counties (otherwise known as Local Governments) will receive funding from the trust annually for up to eight (8) years as determined by the California Mallinckrodt Statewide Abatement Agreement.
DHCS' oversight of Local Governments' use of the NOAT II funds includes, but is not limited to, conducting related stakeholder engagement, monitoring the Local Governments for compliance, and preparing annual reports. Payments to Local Governments are paid directly from NOAT II, not DHCS.
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Questions on Opioid Settlement and Bankruptcies
