09-10 - Texas Opioid Settlement Documents

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Item Nos. 9 & 10 TO: Mayor, Mayor Pro Tem & City Council FROM: Grayson Path, City Manager SUBJECT: Opioid Settlement Agreements DATE: March 13, 2023 BACKGROUND: The Texas Attorney General's Office, working with many other State AG Offices in the United States, has for the past several years undergone litigation against Pharmaceutical Supply Chain Participants who have played a role in furthering the opioid epidemic throughout the US. Over the past two years, they have been reaching settlement agreements with these entities. As part of the settlement agreements, a portion of the payout amount is being made available to local subdivisions, such as the City of Paris. As the documents discuss, licit and illicit opioid use and distribution has caused harm to our citizens and communities. The litigation was designed to stop the distribution practices by many supply chain entities while receiving financial assistance in combating the lasting effects already caused by opioid use in our communities. STATUS OF ISSUE: The State of Texas has created several entities, including within the AG's office and State Comptroller's Office, designed to receive, administer and distribute the settlement payments to the various subdivisions. The terms and conditions for the settlements, allocation, use, etc. has already been negotiated and approved by the State of Texas. Our role is simply to "sign on", accepting the Terms documents, agreeing to the settlement agreements, agree to the release forms, receive our share of funds, and use them for the purposes identified. The list of purposes is 12 pages long (Texas Term Sheet, Exhibit A) and consists primarily of training and educational opportunities. We will still need to digest the possible uses at a future time, but the deadlines to signing on are fast approaching.