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Home My WebLink AboutAGENDA REPORT 2021 1201 CCSA REG ITEM 09BCITY OF MOORPARK,   CALIFORNIA City Council Meeting of December 1, 2021 ACTION APPROVED STAFF RECOMMENDATION. BY K. Spangler. B. Consider Opioid Settlement Funds and Authorize the City Manager to Participate in the National Opioid Settlement. Staff Recommendation: Authorize the City Manager to Participate in the National Opioid Settlement. (Staff: PJ Gagajena, Assistant City Manager) Item: 9.B. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: PJ Gagajena, Assistant City Manager DATE: 12/01/2021 Regular Meeting SUBJECT: Consider Opioid Settlement Funds and Authorize the City Manager to Participate in the National Opioid Settlement BACKGROUND The opioid epidemic has cost hundreds of thousands of lives, and ravaged families and communities across the nation. There were approximately 93,000 opioid overdose deaths nationwide in 2020 and 3,244 deaths statewide in 2019 according to the State of California Department of Justice. States and local governments have filed nearly 4,000 lawsuits against pharmaceutical distributors and manufacturers over the years for the detrimental impacts of opioids and on July 21, 2021, a proposed nationwide settlement in the amount of $26 billion was announced. The three largest pharmaceutical distributors, McKesson, Cardinal Health and AmerisourceBergen (Distributors) are required to pay up to $21 billion over 18 years; and manufacturer Janssen Pharmaceuticals, Inc. (Janssen) and its parent company Johnson & Johnson, are required to pay $5 billion over a nine-year period. Approximately $22.7 billion is earmarked for remediation and abatement activities and more than $2.2 billion is estimated to be allocated to California. Pursuant to the settlement agreements with the Distributors and Janssen, 15% of the total allocation to the State of California will go to the State Fund, which will be used by the State for opioid remediation. Seventy percent will be allocated to the Abatement Accounts Fund, which will be the pool of funds distributed to participating counties and cities. The remaining 15% will be allocated to the Subdivision Fund, which is distributed to plaintiff subdivisions that filed a lawsuit against one or more of the opioid defendants. DISCUSSION To receive the settlement funds, states and local governments must decide to join the national settlement and states will receive a greater share of the funds depending on the number of its local governments that participate. The State of California has decided to join the settlement and recently completed State-Subdivision Agreements regarding the distribution and use of settlement funds for both the Distributors and Item: 9.B. 13 Honorable City Council 12/01/2021 Regular Meeting Page 2 Janssen settlements. This determines how the funds will be allocated to local jurisdictions. There is no need for cities to have filed a lawsuit to participate. The County of Ventura is encouraging full participation from all cities to maximize the dollars that flow into California and the County to help combat the opioid epidemic, otherwise those jurisdictions who do not participate will not receive any funding and decrease the overall pool of funds to the State and County. Towns, cities, and counties with a population of less than 10,000 are not eligible to receive the funds. Local entities have until January 2, 2022, to register and opt into the national settlement with the Settlement Administrator. Funds may be disbursed to states and local governments as soon as April 2022 if certain requirements are met. Cities that participate in the national settlement may elect to receive the funds directly if they notify the Settlement Administrator at least 60 days prior to the payment date. Otherwise, the cities’ allocation share will automatically be paid to their respective county if that county also participates in the national settlement. Cities that elect to receive the payment directly are advised to consider if they have the existing staff and infrastructure to provide the required opioid remediation services and meet the reporting requirements mandated by the Settlement Administrator. Cities may also elect to receive only a portion of the funds and disburse the remaining share to the county. The City of Moorpark is eligible to participate since it meets the population requirement. However, since the City does not have the staff nor the services to meet the required opioid remediation uses, staff reached out to the County of Ventura to determine how they will use the funds if the City elected to have the County receive and manage the share allocated for Moorpark. The County will be participating in the national settlement. The County stated they have existing services and resources on opioids and substance use disorder, medication assisted treatment, and prevention services. They also have a provider program that works with physicians, dentists, and other prescribing professionals to train them on safe prescribing in addition to offering naloxone overdose rescue kits that family members can obtain to have on hand for at- risk family members or loved ones. The County’s substance use disorder treatment program follows a continuum of care, which includes early intervention, outpatient services, residential inpatient services, medically managed services, a 24-hour hotline, withdrawal management, recovery support services, and medication assisted treatment. The program also includes services for justice involved clients as well as services for pregnant and/or parenting women. Additionally, Ventura County Behavioral Health offers screening, American Society of Addiction Medicine-based assessment and Treatment Planning, individual and group counseling, crisis intervention, family therapy, case management, and recovering support services. All the services and programs the County offers to combat opioid addiction above would meet the opioid remediation strategies prescribed by the national settlement. Since counties that receive the funds allocated to cities are not required to spend those funds exclusively for remediation services for that city, staff is working with the County of Ventura in drafting an agreement that ensures the County will ensure the efficient use 14 Honorable City Council 12/01/2021 Regular Meeting Page 3 of the funds for the prescribed opioid remediation strategies; maximize the scope and scale of relief; be responsible for all reporting requirements, tracking of deposits and expenditures, and audit requests; and ensure their services are made available to Moorpark residents. At this time, the draft agreement is not yet available but will be brought forward to the City Council for future consideration. Due to the benefits of participating, staff recommends the City of Moorpark register and opt into the national settlement to meet the deadline of January 2, 2022. Once registered, the City will receive information and documents required to participate in the national settlement. More information about the National Opioid Settlement can be found at https://nationalopioidsettlement.com or https://oag.ca.gov/opioids. FISCAL IMPACT California’s State-Subdivision Agreements indicate the City of Moorpark will be receiving a weighted allocation percentage of 0.0067337% of the $2.2 billion estimated settlement funds allocated to California, if the City elects to participate. This equates to the City of Moorpark receiving an estimated amount of $148,141 in settlement proceeds, which is subject to change depending on the number of local government entities participating and/or changes to the calculated allocation percentages. A portion of the allocated funds will be paid over a period of 18 years from the Distributors settlement and the funds from Janssen settlement will be paid over a nine-year period. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION Authorize the City Manager to Participate in the National Opioid Settlement Attachment 1: National Opioids Settlement Notice Attachment 2: Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Distributor Settlement Attachment 3: Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Janssen Settlement 15 ATTACHMENT 1 16 17 18 19 1 Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Distributor Settlement 1. Introduction Pursuant to the Distributor Settlement Agreement, dated as of July 21, 2021, and any revision thereto (the “Distributor Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Distributor Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Distributor Settlement Agreement.1 For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections IX or X of the Distributor Settlement Agreement. Pursuant to Exhibit O, Paragraph 4, of the Distributor Settlement Agreement, acceptance of this CA Distributor Allocation Agreement is a requirement to be an Initial Participating Subdivision. 2. Definitions a)CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Distributor Settlement Agreement. b)Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto. c)Litigating Special District means a school district, fire protection district, health authority, health plan, or other special district that has filed a lawsuit against an Opioid Defendant. Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, and LA Care Health Plan. d)Plaintiff Subdivision means a Subdivision located in California, other than a Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. 1 A parallel but separate agreement (the “CA Janssen Allocation Agreement”) will govern the allocation, distribution, and use of settlement fund payments under the Janssen Settlement Agreement. An eligible Subdivision may elect to participate in either the Distributor Settlement or the Janssen Settlement, or in both. ATTACHMENT 2 20 2 e) Opioid Defendant means any defendant (including but not limited to Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020. 3. General Terms This agreement is subject to the requirements of the Distributor Settlement Agreement, as well as applicable law, and the Distributor Settlement Agreement governs over any inconsistent provision of this CA Distributor Allocation Agreement. Terms used in this CA Distributor Allocation Agreement have the same meaning as in the Distributor Settlement Agreement unless otherwise defined herein. Pursuant to Section V(D)(1) of the Distributor Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the Distributor Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation. 4. State Allocation The Settlement Fund payments to California,2 pursuant to the Distributor Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Distributor Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). A. State of California Allocation Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation. B. CA Abatement Accounts Fund i. Allocation of CA Abatement Accounts Funds a) Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be 2 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. 21 3 allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds. b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Distributor Settlement Agreement. c) A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Distributor Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions. e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Distributor Settlement Agreement and this CA Distributor Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2. 22 4 ii. Use of CA Abatement Accounts Funds a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Distributor Settlement Agreement. b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities: (1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; (4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Distributor Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Distributor Settlement Agreement and this CA Distributor Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated. 23 5 iii. CA Abatement Accounts Fund Oversight a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Distributor Settlement Agreement and this CA Distributor Allocation Agreement. b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Distributor Settlement Agreement or this CA Distributor Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame. d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Distributor Settlement Agreement or this CA Distributor Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions. C. CA Subdivision Fund i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Distributor Settlement Agreement and this CA Distributor Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2. 24 6 The CA Subdivision Funds will be allocated as follows: a) First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document; b) Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c) Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant. D. Provision for State Back-Stop Agreement On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Distributor Settlement Agreement and, if applicable, the Janssen Settlement Agreement. A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(R), of the Distributor Settlement Agreement and the MDL Fees Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the Distributor Settlement, and if applicable, the Janssen Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Distributor Settlement Agreement and, if applicable, the Janssen Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments. To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 3. The California Office of the Attorney 25 7 General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms. For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General. 5. State and Subdivision Reporting a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site. b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Distributor Settlement Agreement and this CA Distributor Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions. c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Distributor Settlement Agreement and this CA Distributor Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Distributor Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and the Distributors. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions. 26 8 6. Miscellaneous a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Distributor Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa. b) Except as provided in the Distributor Settlement Agreement, this CA Distributor Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party. c) Except as provided in the CA Distributor Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Distributor Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California. 27 APPENDIX 1 DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Distributor Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage. 28 APPENDIX 1100.000% 100.000% 100.000%Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCountyAlameda CountyAlameda 2.332% 2.853%2.4237952%City Alameda Alameda 0.069%0.0570162%City Albany Alameda 0.013%0.0107768%City Berkeley Alameda 0.152%0.1249656%City Dublin Alameda 0.033% 0.040%0.0338810%City Emeryville Alameda 0.023%0.0185765%City Fremont Alameda 0.108%0.0888576%City Hayward Alameda 0.117%0.0966218%City Livermore Alameda 0.054%0.0446740%City Newark Alameda 0.026%0.0217626%City Oakland Alameda 0.486% 0.595%0.5055601%City Piedmont Alameda 0.014%0.0114064%City Pleasanton Alameda 0.067%0.0554547%City San Leandro Alameda 0.039%0.0321267%City Union City Alameda 0.043%0.0352484%CountyAmador CountyAmador 0.226% 0.277%0.2349885%CountyButte CountyButte 1.615% 1.975%1.6783178%City Chico Butte 0.216% 0.264%0.2246499%City Oroville Butte 0.079%0.0646595%CountyCalaveras CountyCalaveras 0.226% 0.277%0.2351644%CountyColusa CountyColusa 0.059%0.0489221%CountyContra Costa CountyContra Costa 2.102% 2.571%2.1844585%City Antioch Contra Costa 0.037%0.0301879%City Brentwood Contra Costa 0.026%0.0215339%City Clayton Contra Costa 0.002%0.0018060%City Concord Contra Costa 0.055%0.0456676%City Danville Contra Costa 0.010%0.0082255%City El Cerrito Contra Costa 0.023%0.0189024%City Hercules Contra Costa 0.010%0.0078273%1 of 1529 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityLafayetteContra Costa 0.006%0.0046030%CityMartinezContra Costa 0.012%0.0098593%CityMoragaContra Costa 0.004%0.0031007%CityOakleyContra Costa 0.010%0.0079416%CityOrindaContra Costa 0.005%0.0038157%CityPinoleContra Costa 0.013%0.0110909%CityPittsburgContra Costa 0.053%0.0436369%CityPleasant HillContra Costa 0.013%0.0106309%CityRichmondContra Costa 0.146%0.1201444%CitySan PabloContra Costa 0.018%0.0148843%CitySan RamonContra Costa 0.021%0.0176459%CityWalnut CreekContra Costa 0.026%0.0212132%CountyDel Norte CountyDel Norte 0.114% 0.140%0.1189608%CountyEl Dorado CountyEl Dorado 0.768% 0.939%0.7980034%CityPlacervilleEl Dorado 0.015%0.0127642%CitySouth Lake TahoeEl Dorado 0.081%0.0665456%CountyFresno CountyFresno 1.895% 2.318%1.9693410%CityClovisFresno 0.065%0.0536211%CityCoalingaFresno 0.012%0.0098554%CityFresnoFresno 0.397%0.3270605%CityKermanFresno 0.005%0.0042534%CityKingsburgFresno 0.008%0.0066167%CityMendotaFresno 0.002%0.0019387%CityOrange CoveFresno 0.004%0.0035607%CityParlierFresno 0.008%0.0069755%CityReedleyFresno 0.012%0.0098804%CitySangerFresno 0.018%0.0146135%CitySelmaFresno 0.015%0.0127537%CountyGlenn CountyGlenn 0.107% 0.131%0.1116978%CountyHumboldt CountyHumboldt 1.030% 1.260%1.0703185%2 of 1530 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityArcataHumboldt 0.054%0.0447660%CityEurekaHumboldt 0.117% 0.143%0.1216284%CityFortunaHumboldt 0.032%0.0266837%CountyImperial CountyImperial 0.258% 0.315%0.2679006%CityBrawleyImperial 0.011%0.0087986%CityCalexicoImperial 0.019%0.0152799%CityEl CentroImperial 0.158%0.1302522%CityImperialImperial 0.006%0.0048791%CountyInyo CountyInyo 0.073% 0.089%0.0754413%CountyKern CountyKern 2.517% 3.079%2.6159145%CityArvinKern 0.006%0.0046425%CityBakersfieldKern 0.212%0.1747198%CityCalifornia CityKern 0.009%0.0070820%CityDelanoKern 0.030%0.0249316%CityMcFarlandKern 0.003%0.0025644%CityRidgecrestKern 0.015%0.0120938%CityShafterKern 0.013%0.0103417%CityTehachapiKern 0.009%0.0073580%CityWascoKern 0.008%0.0069861%CountyKings CountyKings 0.293%0.2413469%CityAvenalKings 0.007%0.0056335%CityCorcoranKings 0.013%0.0107032%CityHanfordKings 0.027%0.0226038%CityLemooreKings 0.016%0.0131900%CountyLake CountyLake 0.795%0.6545389%CityClearlakeLake 0.041% 0.050%0.0426253%CityLakeportLake 0.021% 0.026%0.0222964%CountyLassen CountyLassen 0.319% 0.391%0.3320610%CitySusanvilleLassen 0.027%0.0219295%CountyLos Angeles CountyLos Angeles 13.896% 16.999%14.4437559%3 of 1531 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityAgoura HillsLos Angeles 0.005%0.0040024%CityAlhambraLos Angeles 0.042%0.0343309%CityArcadiaLos Angeles 0.033%0.0267718%CityArtesiaLos Angeles 0.001%0.0005100%CityAzusaLos Angeles 0.026%0.0210857%CityBaldwin ParkLos Angeles 0.027%0.0218520%CityBellLos Angeles 0.008%0.0068783%CityBellflowerLos Angeles 0.002%0.0014485%CityBell GardensLos Angeles 0.014%0.0114301%CityBeverly HillsLos Angeles 0.065%0.0534897%CityBurbankLos Angeles 0.100%0.0823132%CityCalabasasLos Angeles 0.006%0.0048948%CityCarsonLos Angeles 0.019%0.0159805%CityCerritosLos Angeles 0.005%0.0039682%CityClaremontLos Angeles 0.010%0.0082584%CityCommerceLos Angeles 0.000%0.0002971%CityComptonLos Angeles 0.044%0.0361882%CityCovinaLos Angeles 0.028%0.0229127%CityCudahyLos Angeles 0.001%0.0006020%CityCulver CityLos Angeles 0.055%0.0449894%CityDiamond BarLos Angeles 0.001%0.0006993%CityDowneyLos Angeles 0.052%0.0429994%CityDuarteLos Angeles 0.003%0.0027261%CityEl MonteLos Angeles 0.031% 0.038%0.0318985%CityEl SegundoLos Angeles 0.033%0.0268020%CityGardenaLos Angeles 0.034%0.0278088%CityGlendaleLos Angeles 0.166%0.1366586%CityGlendoraLos Angeles 0.016%0.0134411%CityHawaiian Gardens Los Angeles 0.005%0.0040549%CityHawthorneLos Angeles 0.050%0.0407833%4 of 1532 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityHermosa BeachLos Angeles 0.018%0.0145307%CityHuntington ParkLos Angeles 0.023%0.0190667%CityInglewoodLos Angeles 0.059%0.0489195%CityLa Cañada Flintridge Los Angeles 0.003%0.0025565%CityLakewoodLos Angeles 0.005%0.0039971%CityLa MiradaLos Angeles 0.010%0.0081572%CityLancasterLos Angeles 0.045%0.0369689%CityLa PuenteLos Angeles 0.002%0.0012999%CityLa VerneLos Angeles 0.024%0.0194190%CityLawndaleLos Angeles 0.002%0.0017731%CityLomitaLos Angeles 0.004%0.0031940%CityLong BeachLos Angeles 0.439%0.3614151%CityLos AngelesLos Angeles 2.715% 3.321%2.8218811%CityLynwoodLos Angeles 0.016%0.0134345%CityMalibuLos Angeles 0.002%0.0019269%CityManhattan BeachLos Angeles 0.032%0.0260686%CityMaywoodLos Angeles 0.004%0.0035528%CityMonroviaLos Angeles 0.031%0.0254455%CityMontebelloLos Angeles 0.030%0.0250670%CityMonterey ParkLos Angeles 0.031%0.0256677%CityNorwalkLos Angeles 0.031%0.0258228%CityPalmdaleLos Angeles 0.046%0.0375827%CityPalos Verdes Estates Los Angeles 0.006%0.0053102%CityParamountLos Angeles 0.011%0.0091483%CityPasadenaLos Angeles 0.146%0.1200524%CityPico RiveraLos Angeles 0.022%0.0183333%CityPomonaLos Angeles 0.111%0.0911933%CityRancho Palos Verdes Los Angeles 0.002%0.0012645%CityRedondo BeachLos Angeles 0.062%0.0506992%CityRosemeadLos Angeles 0.003%0.0028260%5 of 1533 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCitySan DimasLos Angeles 0.003%0.0022016%CitySan FernandoLos Angeles 0.013%0.0104837%CitySan GabrielLos Angeles 0.018%0.0147726%CitySan MarinoLos Angeles 0.009%0.0073791%CitySanta ClaritaLos Angeles 0.022%0.0178167%CitySanta Fe SpringsLos Angeles 0.031%0.0257531%CitySanta MonicaLos Angeles 0.158%0.1298513%CitySierra MadreLos Angeles 0.006%0.0048646%CitySignal HillLos Angeles 0.010%0.0084884%CitySouth El MonteLos Angeles 0.005%0.0039603%CitySouth GateLos Angeles 0.020%0.0166272%CitySouth PasadenaLos Angeles 0.012%0.0095334%CityTemple CityLos Angeles 0.005%0.0039498%CityTorranceLos Angeles 0.112%0.0919820%CityWalnutLos Angeles 0.006%0.0047305%CityWest CovinaLos Angeles 0.049%0.0404521%CityWest HollywoodLos Angeles 0.013%0.0108517%CityWhittierLos Angeles 0.032%0.0260581%CountyMadera CountyMadera 0.349% 0.427%0.3630669%CityChowchillaMadera 0.012%0.0097332%CityMaderaMadera 0.039%0.0318441%CountyMarin CountyMarin 0.564% 0.690%0.5861325%CityLarkspurMarin 0.015%0.0124697%CityMill ValleyMarin 0.020%0.0168401%CityNovatoMarin 0.028%0.0229824%CitySan AnselmoMarin 0.009%0.0078062%CitySan RafaelMarin 0.089%0.0729823%CountyMariposa CountyMariposa 0.084% 0.103%0.0876131%CountyMendocino CountyMendocino 0.439% 0.536%0.4558394%CityUkiahMendocino 0.039%0.0317153%6 of 1534 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCountyMerced CountyMerced 0.551% 0.674%0.5724262%City Atwater Merced 0.024%0.0195846%City Livingston Merced 0.006%0.0045873%City Los Banos Merced 0.020%0.0165142%City Merced Merced 0.061%0.0500762%CountyModoc CountyModoc 0.065% 0.080%0.0678250%CountyMono CountyMono 0.023% 0.029%0.0242606%CountyMonterey CountyMonterey 0.908% 1.111%0.9437083%City Greenfield Monterey 0.006%0.0050552%City King City Monterey 0.005%0.0037355%City Marina Monterey 0.017%0.0144098%City Monterey Monterey 0.041%0.0336540%City Pacific Grove Monterey 0.009%0.0074842%City Salinas Monterey 0.094%0.0776576%City Seaside Monterey 0.023%0.0191772%City Soledad Monterey 0.007%0.0060870%CountyNapa CountyNapa 0.288% 0.352%0.2994325%City American Canyon Napa 0.017%0.0136869%City Napa Napa 0.078%0.0642783%CountyNevada CountyNevada 0.441% 0.539%0.4579827%City Grass Valley Nevada 0.024%0.0197805%City Truckee Nevada 0.003%0.0023843%CountyOrange CountyOrange 4.364% 5.339%4.5363576%City Aliso Viejo Orange 0.014%0.0113841%City Anaheim Orange 0.554% 0.678%0.5759282%City Brea Orange 0.086%0.0708897%City Buena Park Orange 0.087%0.0714352%City Costa Mesa Orange 0.124% 0.152%0.1288366%City Cypress Orange 0.033%0.0271937%City Dana Point Orange 0.001%0.0005560%7 of 1535 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityFountain ValleyOrange 0.055%0.0455980%CityFullertonOrange 0.137% 0.168%0.1425744%CityGarden GroveOrange 0.213%0.1752482%CityHuntington BeachOrange 0.247% 0.302%0.2568420%CityIrvineOrange 0.139% 0.170%0.1442350%CityLaguna BeachOrange 0.047% 0.058%0.0493043%CityLaguna HillsOrange 0.014%0.0115457%CityLaguna NiguelOrange 0.001%0.0007071%CityLaguna WoodsOrange 0.001%0.0006546%CityLa HabraOrange 0.060% 0.073%0.0621049%CityLake ForestOrange 0.012%0.0101249%CityLa PalmaOrange 0.012%0.0095439%CityLos AlamitosOrange 0.008%0.0069190%CityMission ViejoOrange 0.014%0.0117560%CityNewport BeachOrange 0.179%0.1470134%CityOrangeOrange 0.150%0.1231320%CityPlacentiaOrange 0.029% 0.035%0.0298912%CityRancho Santa Margarita Orange 0.001%0.0006296%CitySan ClementeOrange 0.008% 0.010%0.0086083%CitySan Juan CapistranoOrange 0.008%0.0065510%CitySanta AnaOrange 0.502% 0.614%0.5213866%CitySeal BeachOrange 0.020%0.0165891%CityStantonOrange 0.035%0.0291955%CityTustinOrange 0.073%0.0600341%CityWestminsterOrange 0.104% 0.127%0.1082721%CityYorba LindaOrange 0.044%0.0362223%CountyPlacer CountyPlacer 1.045% 1.278%1.0861002%CityAuburnPlacer 0.017%0.0141114%CityLincolnPlacer 0.031%0.0255599%CityRocklinPlacer 0.076%0.0625485%8 of 1536 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityRosevillePlacer 0.196%0.1616559%CountyPlumas CountyPlumas 0.205% 0.251%0.2128729%CountyRiverside CountyRiverside 4.534% 5.547%4.7128296%CityBanningRiverside 0.017%0.0143848%CityBeaumontRiverside 0.021%0.0171135%CityBlytheRiverside 0.012%0.0096714%CityCanyon LakeRiverside 0.000%0.0001761%CityCathedral CityRiverside 0.067%0.0553614%CityCoachellaRiverside 0.021%0.0173054%CityCoronaRiverside 0.147%0.1207083%CityDesert Hot SpringsRiverside 0.024%0.0200433%CityEastvaleRiverside 0.000%0.0002747%CityHemetRiverside 0.051%0.0421792%CityIndioRiverside 0.056%0.0457794%CityJurupa ValleyRiverside 0.001%0.0008991%CityLake ElsinoreRiverside 0.021%0.0172949%CityLa QuintaRiverside 0.063%0.0516732%CityMenifeeRiverside 0.032%0.0260909%CityMoreno ValleyRiverside 0.137%0.1130348%CityMurrietaRiverside 0.048% 0.059%0.0497423%CityNorcoRiverside 0.016%0.0134542%CityPalm DesertRiverside 0.083%0.0682465%CityPalm SpringsRiverside 0.076%0.0629862%CityPerrisRiverside 0.009%0.0076774%CityRancho MirageRiverside 0.052%0.0431098%CityRiversideRiverside 0.268%0.2206279%CitySan JacintoRiverside 0.010%0.0085936%CityTemeculaRiverside 0.022%0.0180086%CityWildomarRiverside 0.008%0.0062500%CountySacramento CountySacramento 3.797% 4.645%3.9465887%9 of 1537 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityCitrus HeightsSacramento 0.057%0.0465312%CityElk GroveSacramento 0.130%0.1066994%CityFolsomSacramento 0.108%0.0890850%CityGaltSacramento 0.017%0.0143704%CityRancho CordovaSacramento 0.008%0.0067679%CitySacramentoSacramento 0.721% 0.882%0.7496530%CountySan Benito CountySan Benito 0.106% 0.130%0.1101417%CityHollisterSan Benito 0.027%0.0225355%CountySan Bernardino CountySan Bernardino 3.259% 3.987%3.3878124%CityAdelantoSan Bernardino 0.008%0.0066640%CityApple ValleySan Bernardino 0.025%0.0207360%CityBarstowSan Bernardino 0.015%0.0122056%CityChinoSan Bernardino 0.064%0.0525893%CityChino HillsSan Bernardino 0.001%0.0006388%CityColtonSan Bernardino 0.031%0.0253443%CityFontanaSan Bernardino 0.112%0.0920543%CityGrand TerraceSan Bernardino 0.006%0.0051051%CityHesperiaSan Bernardino 0.035%0.0291522%CityHighlandSan Bernardino 0.004%0.0029061%CityLoma LindaSan Bernardino 0.009%0.0071188%CityMontclairSan Bernardino 0.039%0.0322108%CityOntarioSan Bernardino 0.179%0.1472934%CityRancho Cucamonga San Bernardino 0.084%0.0689431%CityRedlandsSan Bernardino 0.057%0.0469150%CityRialtoSan Bernardino 0.073%0.0603206%CitySan Bernardino San Bernardino 0.178%0.1461880%CityTwentynine Palms San Bernardino 0.002%0.0012605%CityUplandSan Bernardino 0.052%0.0424460%CityVictorvilleSan Bernardino 0.033%0.0269400%CityYucaipaSan Bernardino 0.016%0.0128772%10 of 1538 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityYucca ValleySan Bernardino 0.003%0.0021228%CountySan Diego CountySan Diego 5.706% 6.980%5.9309748%CityCarlsbadSan Diego 0.128%0.1050485%CityChula VistaSan Diego 0.189% 0.231%0.1961456%CityCoronadoSan Diego 0.044%0.0359095%CityEl CajonSan Diego 0.113%0.0933582%CityEncinitasSan Diego 0.061% 0.074%0.0630289%CityEscondidoSan Diego 0.145%0.1192204%CityImperial BeachSan Diego 0.014%0.0118283%CityLa MesaSan Diego 0.055% 0.068%0.0575593%CityLemon GroveSan Diego 0.022%0.0183911%CityNational CitySan Diego 0.080%0.0656808%CityOceansideSan Diego 0.213%0.1753428%CityPowaySan Diego 0.062%0.0511040%CitySan DiegoSan Diego 1.975% 2.416%2.0531169%CitySan MarcosSan Diego 0.089%0.0733897%CitySanteeSan Diego 0.033%0.0268401%CitySolana BeachSan Diego 0.017%0.0138564%CityVistaSan Diego 0.052%0.0425144%ConsolidatedSan FranciscoSan Francisco 3.026% 3.702%3.1457169%CountySan Joaquin CountySan Joaquin 1.680% 2.055%1.7460399%CityLathropSan Joaquin 0.009%0.0075394%CityLodiSan Joaquin 0.053%0.0439484%CityMantecaSan Joaquin 0.054%0.0443454%CityRiponSan Joaquin 0.013%0.0104219%CityStocktonSan Joaquin 0.313% 0.383%0.3256176%CityTracySan Joaquin 0.084%0.0692047%CountySan Luis Obispo CountySan Luis Obispo 0.816% 0.999%0.8484126%CityArroyo Grande San Luis Obispo 0.024%0.0199053%CityAtascaderoSan Luis Obispo 0.029%0.0240680%11 of 1539 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity El Paso de Robles (Paso Robles) San Luis Obispo 0.043%0.0353456%City Grover Beach San Luis Obispo 0.017%0.0137881%City Morro Bay San Luis Obispo 0.020%0.0160922%City San Luis Obispo San Luis Obispo 0.077%0.0637841%CountySan Mateo CountySan Mateo 1.074% 1.313%1.1159599%City Belmont San Mateo 0.021%0.0169860%City Burlingame San Mateo 0.019%0.0152537%City Daly City San Mateo 0.044%0.0363880%City East Palo Alto San Mateo 0.013%0.0103982%City Foster City San Mateo 0.020%0.0166101%City Half Moon Bay San Mateo 0.004%0.0031638%City Hillsborough San Mateo 0.013%0.0110029%City Menlo Park San Mateo 0.015%0.0126209%City Millbrae San Mateo 0.013%0.0105836%City Pacifica San Mateo 0.016%0.0130625%City Redwood City San Mateo 0.056%0.0463511%City San Bruno San Mateo 0.021%0.0172161%City San Carlos San Mateo 0.013%0.0108885%City San Mateo San Mateo 0.052%0.0425841%City South San Francisco San Mateo 0.043%0.0353943%CountySanta Barbara CountySanta Barbara 1.132% 1.385%1.1768968%City Carpinteria Santa Barbara 0.001%0.0008938%City Goleta Santa Barbara 0.004%0.0028969%City Lompoc Santa Barbara 0.047%0.0389379%City Santa Barbara Santa Barbara 0.122%0.1004559%City Santa Maria Santa Barbara 0.058%0.0479179%CountySanta Clara CountySanta Clara 2.404% 2.941%2.4987553%City Campbell Santa Clara 0.014%0.0112566%City Cupertino Santa Clara 0.008%0.0066824%City Gilroy Santa Clara 0.025%0.0202891%12 of 1540 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityLos AltosSanta Clara 0.013%0.0103338%CityLos GatosSanta Clara 0.013%0.0103220%CityMilpitasSanta Clara 0.036%0.0298120%CityMorgan HillSanta Clara 0.015%0.0124619%CityMountain ViewSanta Clara 0.041%0.0334608%CityPalo AltoSanta Clara 0.039%0.0323080%CitySan JoseSanta Clara 0.294% 0.360%0.3054960%CitySanta ClaraSanta Clara 0.067%0.0549723%CitySaratogaSanta Clara 0.004%0.0034161%CitySunnyvaleSanta Clara 0.053%0.0434069%CountySanta Cruz CountySanta Cruz 0.783% 0.957%0.8135396%CityCapitolaSanta Cruz 0.020%0.0168191%CitySanta CruzSanta Cruz 0.143%0.1180348%CityScotts ValleySanta Cruz 0.015%0.0126525%CityWatsonvilleSanta Cruz 0.063%0.0520136%CountyShasta CountyShasta 1.095% 1.339%1.1380191%CityAndersonShasta 0.024%0.0198896%CityReddingShasta 0.284%0.2334841%CityShasta LakeShasta 0.004%0.0031993%CountySiskiyou CountySiskiyou 0.228% 0.279%0.2373393%CountySolano CountySolano 0.760%0.6260795%CityBeniciaSolano 0.031%0.0253903%CityDixonSolano 0.016%0.0130849%CityFairfieldSolano 0.109%0.0897317%CitySuisun CitySolano 0.021%0.0176183%CityVacavilleSolano 0.119%0.0976497%CityVallejoSolano 0.167%0.1373644%CountySonoma CountySonoma 1.218% 1.490%1.2661290%CityHealdsburgSonoma 0.032%0.0266929%CityPetalumaSonoma 0.081%0.0667507%13 of 1541 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityRohnert ParkSonoma 0.041%0.0340759%CitySanta RosaSonoma 0.184%0.1519070%CitySonomaSonoma 0.022%0.0183438%CityWindsorSonoma 0.016%0.0129298%CountyStanislaus CountyStanislaus 1.722%1.4182273%CityCeresStanislaus 0.041%0.0340260%CityModestoStanislaus 0.217%0.1788759%CityNewmanStanislaus 0.006%0.0046964%CityOakdaleStanislaus 0.018%0.0145531%CityPattersonStanislaus 0.015%0.0126590%CityRiverbankStanislaus 0.010%0.0085699%CityTurlockStanislaus 0.065%0.0531966%CountySutter CountySutter 0.306% 0.374%0.3179548%CityYuba CitySutter 0.074%0.0606242%CountyTehama CountyTehama 0.213% 0.261%0.2216654%CityRed BluffTehama 0.014%0.0117771%CountyTrinity CountyTrinity 0.082% 0.101%0.0855476%CountyTulare CountyTulare 0.809% 0.990%0.8410949%CityDinubaTulare 0.014%0.0116929%CityExeterTulare 0.004%0.0032479%CityFarmersvilleTulare 0.003%0.0027879%CityLindsayTulare 0.007%0.0057111%CityPortervilleTulare 0.021%0.0171845%CityTulareTulare 0.037%0.0302273%CityVisaliaTulare 0.066%0.0545872%CountyTuolumne CountyTuolumne 0.486% 0.594%0.5047621%CountyVentura CountyVentura 2.192% 2.681%2.2781201%CityCamarilloVentura 0.002%0.0012815%CityFillmoreVentura 0.002%0.0020294%CityMoorparkVentura 0.008%0.0067337%14 of 1542 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityOxnardVentura 0.156% 0.190%0.1617338%CityPort HuenemeVentura 0.021%0.0174145%CitySan Buenaventura (Ventura) Ventura 0.085%0.0702181%CitySanta PaulaVentura 0.014%0.0119072%CitySimi ValleyVentura 0.065%0.0533043%CityThousand OaksVentura 0.022%0.0179902%CountyYolo CountyYolo 0.357% 0.437%0.3713319%CityDavisYolo 0.055%0.0451747%CityWest SacramentoYolo 0.066%0.0544321%CityWoodlandYolo 0.058%0.0477904%CountyYuba CountyYuba 0.214% 0.262%0.2225679%CityMarysvilleYuba 0.014%0.0112079%15 of 1543 1 APPENDIX 2 Cost Reimbursement Procedure 1. Additional defined terms: a) Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were paid or incurred (i) prior to July 21, 2021 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting this CA Distributor Allocation Agreement. Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs. b) First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section X and Exhibit R of the Distributor Settlement Agreement or Section XI and Exhibit R of the Janssen Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c) Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d) Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses. 2. Cost Reimbursement to Plaintiff Subdivision a) Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating a National Opioid Settlement with Distributors, Johnson & Johnson, and others. b) Claims Procedure. i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section X or Exhibit R of the Distributor Settlement Agreement or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for 44 2 Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act. iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs. iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V.B.2 of the Distributor Agreement. vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and the Distributors a 45 3 report of the fees and expenses incurred by the Special Master pursuant to Section V.B.2 of the Distributor Agreement. c) Claims Priority and Limitation. i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii. Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices. iii. Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv. Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full. v. In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi. In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Distributor Settlement Agreement and the Janssen Settlement Agreement be used to pay Costs. d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. 46 4 ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above. 47 APPENDIX 3 CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Distributors Settlement and their counsel. In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Expenses and Costs) of the Distributor Settlement Agreement. Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Distributor Settlement Agreement and CA Distributor Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Distributor Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Distributors Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Distributor Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments. The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Distributor Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party. [DATE] [SUBDIVISION SIGNATURE BLOCK] [DATE] [COUNSEL SIGNATURE BLOCK] [DATE] [ATTORNEY GENERAL SIGNATURE BLOCK] 48 1 Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Janssen Settlement 1. Introduction Pursuant to the Janssen Settlement Agreement, dated as of July 21, 2021, and any revision thereto (the “Janssen Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Janssen Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Janssen Settlement Agreement.1 For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections X or XI of the Janssen Settlement Agreement. Pursuant to Exhibit O, Paragraph 4, of the Janssen Settlement Agreement, acceptance of this CA Janssen Allocation Agreement is a requirement to be an Initial Participating Subdivision. 2. Definitions a)CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Janssen Settlement Agreement. b)Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto. c)CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, and LA Care Health Plan. d)Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. e)Opioid Defendant means any defendant (including but not limited to Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., 1 A parallel but separate agreement (the “CA Distributor Allocation Agreement”) will govern the allocation, distribution, and use of settlement fund payments under the Distributor Settlement Agreement. An eligible Subdivision may elect to participate in either the Distributor Settlement or the Janssen Settlement, or in both. ATTACHMENT 3 49 2 AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020. 3. General Terms This agreement is subject to the requirements of the Janssen Settlement Agreement, as well as applicable law, and the Janssen Settlement Agreement governs over any inconsistent provision of this CA Janssen Allocation Agreement. Terms used in this CA Janssen Allocation Agreement have the same meaning as in the Janssen Settlement Agreement unless otherwise defined herein. Pursuant to Section VI(D)(1) of the Janssen Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Janssen Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation. 4. State Allocation The Settlement Fund payments to California,2 pursuant to the Janssen Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Janssen Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). A. State of California Allocation Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation. B. CA Abatement Accounts Fund i. Allocation of CA Abatement Accounts Funds a) Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA 2 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. 50 3 Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds. b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Janssen Settlement Agreement. c) A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Janssen Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions. e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Janssen Settlement Agreement and this CA Janssen Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2. 51 4 ii. Use of CA Abatement Accounts Funds a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Janssen Settlement Agreement. b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities: (1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; (4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Janssen Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Janssen Settlement Agreement and this CA Janssen Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated. 52 5 iii. CA Abatement Accounts Fund Oversight a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Janssen Settlement Agreement and this CA Janssen Allocation Agreement. b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Janssen Settlement Agreement or this CA Janssen Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame. d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Janssen Settlement Agreement or this CA Janssen Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions. C. CA Subdivision Fund i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Janssen Settlement Agreement and this CA Janssen Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2. 53 6 The CA Subdivision Funds will be allocated as follows: a) First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document; b) Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c) Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant. D. Provision for State Back-Stop Agreement On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Janssen Settlement Agreement and, if applicable, the Distributor Settlement Agreement. A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(R), of the Janssen Settlement Agreement and the MDL Fees Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the Janssen Settlement, and if applicable, the Distributor Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Janssen Settlement Agreement and, if applicable, the Distributor Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments. To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 3. The California Office of the Attorney 54 7 General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms. For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General. 5. State and Subdivision Reporting a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site. b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Janssen Settlement Agreement and this CA Janssen Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions. c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Janssen Settlement Agreement and this CA Janssen Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Janssen Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Janssen. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions. 55 8 6. Miscellaneous a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Janssen Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa. b) Except as provided in the Janssen Settlement Agreement, this CA Janssen Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party. c) Except as provided in the CA Janssen Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Janssen Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California. 56 APPENDIX 1 DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Janssen Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage. 57 APPENDIX 1100.000% 100.000% 100.000%Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCountyAlameda CountyAlameda 2.332% 2.853%2.4237952%City Alameda Alameda 0.069%0.0570162%City Albany Alameda 0.013%0.0107768%City Berkeley Alameda 0.152%0.1249656%City Dublin Alameda 0.033% 0.040%0.0338810%City Emeryville Alameda 0.023%0.0185765%City Fremont Alameda 0.108%0.0888576%City Hayward Alameda 0.117%0.0966218%City Livermore Alameda 0.054%0.0446740%City Newark Alameda 0.026%0.0217626%City Oakland Alameda 0.486% 0.595%0.5055601%City Piedmont Alameda 0.014%0.0114064%City Pleasanton Alameda 0.067%0.0554547%City San Leandro Alameda 0.039%0.0321267%City Union City Alameda 0.043%0.0352484%CountyAmador CountyAmador 0.226% 0.277%0.2349885%CountyButte CountyButte 1.615% 1.975%1.6783178%City Chico Butte 0.216% 0.264%0.2246499%City Oroville Butte 0.079%0.0646595%CountyCalaveras CountyCalaveras 0.226% 0.277%0.2351644%CountyColusa CountyColusa 0.059%0.0489221%CountyContra Costa CountyContra Costa 2.102% 2.571%2.1844585%City Antioch Contra Costa 0.037%0.0301879%City Brentwood Contra Costa 0.026%0.0215339%City Clayton Contra Costa 0.002%0.0018060%City Concord Contra Costa 0.055%0.0456676%City Danville Contra Costa 0.010%0.0082255%City El Cerrito Contra Costa 0.023%0.0189024%City Hercules Contra Costa 0.010%0.0078273%1 of 1558 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityLafayetteContra Costa 0.006%0.0046030%CityMartinezContra Costa 0.012%0.0098593%CityMoragaContra Costa 0.004%0.0031007%CityOakleyContra Costa 0.010%0.0079416%CityOrindaContra Costa 0.005%0.0038157%CityPinoleContra Costa 0.013%0.0110909%CityPittsburgContra Costa 0.053%0.0436369%CityPleasant HillContra Costa 0.013%0.0106309%CityRichmondContra Costa 0.146%0.1201444%CitySan PabloContra Costa 0.018%0.0148843%CitySan RamonContra Costa 0.021%0.0176459%CityWalnut CreekContra Costa 0.026%0.0212132%CountyDel Norte CountyDel Norte 0.114% 0.140%0.1189608%CountyEl Dorado CountyEl Dorado 0.768% 0.939%0.7980034%CityPlacervilleEl Dorado 0.015%0.0127642%CitySouth Lake TahoeEl Dorado 0.081%0.0665456%CountyFresno CountyFresno 1.895% 2.318%1.9693410%CityClovisFresno 0.065%0.0536211%CityCoalingaFresno 0.012%0.0098554%CityFresnoFresno 0.397%0.3270605%CityKermanFresno 0.005%0.0042534%CityKingsburgFresno 0.008%0.0066167%CityMendotaFresno 0.002%0.0019387%CityOrange CoveFresno 0.004%0.0035607%CityParlierFresno 0.008%0.0069755%CityReedleyFresno 0.012%0.0098804%CitySangerFresno 0.018%0.0146135%CitySelmaFresno 0.015%0.0127537%CountyGlenn CountyGlenn 0.107% 0.131%0.1116978%CountyHumboldt CountyHumboldt 1.030% 1.260%1.0703185%2 of 1559 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityArcataHumboldt 0.054%0.0447660%CityEurekaHumboldt 0.117% 0.143%0.1216284%CityFortunaHumboldt 0.032%0.0266837%CountyImperial CountyImperial 0.258% 0.315%0.2679006%CityBrawleyImperial 0.011%0.0087986%CityCalexicoImperial 0.019%0.0152799%CityEl CentroImperial 0.158%0.1302522%CityImperialImperial 0.006%0.0048791%CountyInyo CountyInyo 0.073% 0.089%0.0754413%CountyKern CountyKern 2.517% 3.079%2.6159145%CityArvinKern 0.006%0.0046425%CityBakersfieldKern 0.212%0.1747198%CityCalifornia CityKern 0.009%0.0070820%CityDelanoKern 0.030%0.0249316%CityMcFarlandKern 0.003%0.0025644%CityRidgecrestKern 0.015%0.0120938%CityShafterKern 0.013%0.0103417%CityTehachapiKern 0.009%0.0073580%CityWascoKern 0.008%0.0069861%CountyKings CountyKings 0.293%0.2413469%CityAvenalKings 0.007%0.0056335%CityCorcoranKings 0.013%0.0107032%CityHanfordKings 0.027%0.0226038%CityLemooreKings 0.016%0.0131900%CountyLake CountyLake 0.795%0.6545389%CityClearlakeLake 0.041% 0.050%0.0426253%CityLakeportLake 0.021% 0.026%0.0222964%CountyLassen CountyLassen 0.319% 0.391%0.3320610%CitySusanvilleLassen 0.027%0.0219295%CountyLos Angeles CountyLos Angeles 13.896% 16.999%14.4437559%3 of 1560 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityAgoura HillsLos Angeles 0.005%0.0040024%CityAlhambraLos Angeles 0.042%0.0343309%CityArcadiaLos Angeles 0.033%0.0267718%CityArtesiaLos Angeles 0.001%0.0005100%CityAzusaLos Angeles 0.026%0.0210857%CityBaldwin ParkLos Angeles 0.027%0.0218520%CityBellLos Angeles 0.008%0.0068783%CityBellflowerLos Angeles 0.002%0.0014485%CityBell GardensLos Angeles 0.014%0.0114301%CityBeverly HillsLos Angeles 0.065%0.0534897%CityBurbankLos Angeles 0.100%0.0823132%CityCalabasasLos Angeles 0.006%0.0048948%CityCarsonLos Angeles 0.019%0.0159805%CityCerritosLos Angeles 0.005%0.0039682%CityClaremontLos Angeles 0.010%0.0082584%CityCommerceLos Angeles 0.000%0.0002971%CityComptonLos Angeles 0.044%0.0361882%CityCovinaLos Angeles 0.028%0.0229127%CityCudahyLos Angeles 0.001%0.0006020%CityCulver CityLos Angeles 0.055%0.0449894%CityDiamond BarLos Angeles 0.001%0.0006993%CityDowneyLos Angeles 0.052%0.0429994%CityDuarteLos Angeles 0.003%0.0027261%CityEl MonteLos Angeles 0.031% 0.038%0.0318985%CityEl SegundoLos Angeles 0.033%0.0268020%CityGardenaLos Angeles 0.034%0.0278088%CityGlendaleLos Angeles 0.166%0.1366586%CityGlendoraLos Angeles 0.016%0.0134411%CityHawaiian Gardens Los Angeles 0.005%0.0040549%CityHawthorneLos Angeles 0.050%0.0407833%4 of 1561 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityHermosa BeachLos Angeles 0.018%0.0145307%CityHuntington ParkLos Angeles 0.023%0.0190667%CityInglewoodLos Angeles 0.059%0.0489195%CityLa Cañada Flintridge Los Angeles 0.003%0.0025565%CityLakewoodLos Angeles 0.005%0.0039971%CityLa MiradaLos Angeles 0.010%0.0081572%CityLancasterLos Angeles 0.045%0.0369689%CityLa PuenteLos Angeles 0.002%0.0012999%CityLa VerneLos Angeles 0.024%0.0194190%CityLawndaleLos Angeles 0.002%0.0017731%CityLomitaLos Angeles 0.004%0.0031940%CityLong BeachLos Angeles 0.439%0.3614151%CityLos AngelesLos Angeles 2.715% 3.321%2.8218811%CityLynwoodLos Angeles 0.016%0.0134345%CityMalibuLos Angeles 0.002%0.0019269%CityManhattan BeachLos Angeles 0.032%0.0260686%CityMaywoodLos Angeles 0.004%0.0035528%CityMonroviaLos Angeles 0.031%0.0254455%CityMontebelloLos Angeles 0.030%0.0250670%CityMonterey ParkLos Angeles 0.031%0.0256677%CityNorwalkLos Angeles 0.031%0.0258228%CityPalmdaleLos Angeles 0.046%0.0375827%CityPalos Verdes Estates Los Angeles 0.006%0.0053102%CityParamountLos Angeles 0.011%0.0091483%CityPasadenaLos Angeles 0.146%0.1200524%CityPico RiveraLos Angeles 0.022%0.0183333%CityPomonaLos Angeles 0.111%0.0911933%CityRancho Palos Verdes Los Angeles 0.002%0.0012645%CityRedondo BeachLos Angeles 0.062%0.0506992%CityRosemeadLos Angeles 0.003%0.0028260%5 of 1562 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCitySan DimasLos Angeles 0.003%0.0022016%CitySan FernandoLos Angeles 0.013%0.0104837%CitySan GabrielLos Angeles 0.018%0.0147726%CitySan MarinoLos Angeles 0.009%0.0073791%CitySanta ClaritaLos Angeles 0.022%0.0178167%CitySanta Fe SpringsLos Angeles 0.031%0.0257531%CitySanta MonicaLos Angeles 0.158%0.1298513%CitySierra MadreLos Angeles 0.006%0.0048646%CitySignal HillLos Angeles 0.010%0.0084884%CitySouth El MonteLos Angeles 0.005%0.0039603%CitySouth GateLos Angeles 0.020%0.0166272%CitySouth PasadenaLos Angeles 0.012%0.0095334%CityTemple CityLos Angeles 0.005%0.0039498%CityTorranceLos Angeles 0.112%0.0919820%CityWalnutLos Angeles 0.006%0.0047305%CityWest CovinaLos Angeles 0.049%0.0404521%CityWest HollywoodLos Angeles 0.013%0.0108517%CityWhittierLos Angeles 0.032%0.0260581%CountyMadera CountyMadera 0.349% 0.427%0.3630669%CityChowchillaMadera 0.012%0.0097332%CityMaderaMadera 0.039%0.0318441%CountyMarin CountyMarin 0.564% 0.690%0.5861325%CityLarkspurMarin 0.015%0.0124697%CityMill ValleyMarin 0.020%0.0168401%CityNovatoMarin 0.028%0.0229824%CitySan AnselmoMarin 0.009%0.0078062%CitySan RafaelMarin 0.089%0.0729823%CountyMariposa CountyMariposa 0.084% 0.103%0.0876131%CountyMendocino CountyMendocino 0.439% 0.536%0.4558394%CityUkiahMendocino 0.039%0.0317153%6 of 1563 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCountyMerced CountyMerced 0.551% 0.674%0.5724262%City Atwater Merced 0.024%0.0195846%City Livingston Merced 0.006%0.0045873%City Los Banos Merced 0.020%0.0165142%City Merced Merced 0.061%0.0500762%CountyModoc CountyModoc 0.065% 0.080%0.0678250%CountyMono CountyMono 0.023% 0.029%0.0242606%CountyMonterey CountyMonterey 0.908% 1.111%0.9437083%City Greenfield Monterey 0.006%0.0050552%City King City Monterey 0.005%0.0037355%City Marina Monterey 0.017%0.0144098%City Monterey Monterey 0.041%0.0336540%City Pacific Grove Monterey 0.009%0.0074842%City Salinas Monterey 0.094%0.0776576%City Seaside Monterey 0.023%0.0191772%City Soledad Monterey 0.007%0.0060870%CountyNapa CountyNapa 0.288% 0.352%0.2994325%City American Canyon Napa 0.017%0.0136869%City Napa Napa 0.078%0.0642783%CountyNevada CountyNevada 0.441% 0.539%0.4579827%City Grass Valley Nevada 0.024%0.0197805%City Truckee Nevada 0.003%0.0023843%CountyOrange CountyOrange 4.364% 5.339%4.5363576%City Aliso Viejo Orange 0.014%0.0113841%City Anaheim Orange 0.554% 0.678%0.5759282%City Brea Orange 0.086%0.0708897%City Buena Park Orange 0.087%0.0714352%City Costa Mesa Orange 0.124% 0.152%0.1288366%City Cypress Orange 0.033%0.0271937%City Dana Point Orange 0.001%0.0005560%7 of 1564 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityFountain ValleyOrange 0.055%0.0455980%CityFullertonOrange 0.137% 0.168%0.1425744%CityGarden GroveOrange 0.213%0.1752482%CityHuntington BeachOrange 0.247% 0.302%0.2568420%CityIrvineOrange 0.139% 0.170%0.1442350%CityLaguna BeachOrange 0.047% 0.058%0.0493043%CityLaguna HillsOrange 0.014%0.0115457%CityLaguna NiguelOrange 0.001%0.0007071%CityLaguna WoodsOrange 0.001%0.0006546%CityLa HabraOrange 0.060% 0.073%0.0621049%CityLake ForestOrange 0.012%0.0101249%CityLa PalmaOrange 0.012%0.0095439%CityLos AlamitosOrange 0.008%0.0069190%CityMission ViejoOrange 0.014%0.0117560%CityNewport BeachOrange 0.179%0.1470134%CityOrangeOrange 0.150%0.1231320%CityPlacentiaOrange 0.029% 0.035%0.0298912%CityRancho Santa Margarita Orange 0.001%0.0006296%CitySan ClementeOrange 0.008% 0.010%0.0086083%CitySan Juan CapistranoOrange 0.008%0.0065510%CitySanta AnaOrange 0.502% 0.614%0.5213866%CitySeal BeachOrange 0.020%0.0165891%CityStantonOrange 0.035%0.0291955%CityTustinOrange 0.073%0.0600341%CityWestminsterOrange 0.104% 0.127%0.1082721%CityYorba LindaOrange 0.044%0.0362223%CountyPlacer CountyPlacer 1.045% 1.278%1.0861002%CityAuburnPlacer 0.017%0.0141114%CityLincolnPlacer 0.031%0.0255599%CityRocklinPlacer 0.076%0.0625485%8 of 1565 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityRosevillePlacer 0.196%0.1616559%CountyPlumas CountyPlumas 0.205% 0.251%0.2128729%CountyRiverside CountyRiverside 4.534% 5.547%4.7128296%CityBanningRiverside 0.017%0.0143848%CityBeaumontRiverside 0.021%0.0171135%CityBlytheRiverside 0.012%0.0096714%CityCanyon LakeRiverside 0.000%0.0001761%CityCathedral CityRiverside 0.067%0.0553614%CityCoachellaRiverside 0.021%0.0173054%CityCoronaRiverside 0.147%0.1207083%CityDesert Hot SpringsRiverside 0.024%0.0200433%CityEastvaleRiverside 0.000%0.0002747%CityHemetRiverside 0.051%0.0421792%CityIndioRiverside 0.056%0.0457794%CityJurupa ValleyRiverside 0.001%0.0008991%CityLake ElsinoreRiverside 0.021%0.0172949%CityLa QuintaRiverside 0.063%0.0516732%CityMenifeeRiverside 0.032%0.0260909%CityMoreno ValleyRiverside 0.137%0.1130348%CityMurrietaRiverside 0.048% 0.059%0.0497423%CityNorcoRiverside 0.016%0.0134542%CityPalm DesertRiverside 0.083%0.0682465%CityPalm SpringsRiverside 0.076%0.0629862%CityPerrisRiverside 0.009%0.0076774%CityRancho MirageRiverside 0.052%0.0431098%CityRiversideRiverside 0.268%0.2206279%CitySan JacintoRiverside 0.010%0.0085936%CityTemeculaRiverside 0.022%0.0180086%CityWildomarRiverside 0.008%0.0062500%CountySacramento CountySacramento 3.797% 4.645%3.9465887%9 of 1566 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityCitrus HeightsSacramento 0.057%0.0465312%CityElk GroveSacramento 0.130%0.1066994%CityFolsomSacramento 0.108%0.0890850%CityGaltSacramento 0.017%0.0143704%CityRancho CordovaSacramento 0.008%0.0067679%CitySacramentoSacramento 0.721% 0.882%0.7496530%CountySan Benito CountySan Benito 0.106% 0.130%0.1101417%CityHollisterSan Benito 0.027%0.0225355%CountySan Bernardino CountySan Bernardino 3.259% 3.987%3.3878124%CityAdelantoSan Bernardino 0.008%0.0066640%CityApple ValleySan Bernardino 0.025%0.0207360%CityBarstowSan Bernardino 0.015%0.0122056%CityChinoSan Bernardino 0.064%0.0525893%CityChino HillsSan Bernardino 0.001%0.0006388%CityColtonSan Bernardino 0.031%0.0253443%CityFontanaSan Bernardino 0.112%0.0920543%CityGrand TerraceSan Bernardino 0.006%0.0051051%CityHesperiaSan Bernardino 0.035%0.0291522%CityHighlandSan Bernardino 0.004%0.0029061%CityLoma LindaSan Bernardino 0.009%0.0071188%CityMontclairSan Bernardino 0.039%0.0322108%CityOntarioSan Bernardino 0.179%0.1472934%CityRancho Cucamonga San Bernardino 0.084%0.0689431%CityRedlandsSan Bernardino 0.057%0.0469150%CityRialtoSan Bernardino 0.073%0.0603206%CitySan Bernardino San Bernardino 0.178%0.1461880%CityTwentynine Palms San Bernardino 0.002%0.0012605%CityUplandSan Bernardino 0.052%0.0424460%CityVictorvilleSan Bernardino 0.033%0.0269400%CityYucaipaSan Bernardino 0.016%0.0128772%10 of 1567 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityYucca ValleySan Bernardino 0.003%0.0021228%CountySan Diego CountySan Diego 5.706% 6.980%5.9309748%CityCarlsbadSan Diego 0.128%0.1050485%CityChula VistaSan Diego 0.189% 0.231%0.1961456%CityCoronadoSan Diego 0.044%0.0359095%CityEl CajonSan Diego 0.113%0.0933582%CityEncinitasSan Diego 0.061% 0.074%0.0630289%CityEscondidoSan Diego 0.145%0.1192204%CityImperial BeachSan Diego 0.014%0.0118283%CityLa MesaSan Diego 0.055% 0.068%0.0575593%CityLemon GroveSan Diego 0.022%0.0183911%CityNational CitySan Diego 0.080%0.0656808%CityOceansideSan Diego 0.213%0.1753428%CityPowaySan Diego 0.062%0.0511040%CitySan DiegoSan Diego 1.975% 2.416%2.0531169%CitySan MarcosSan Diego 0.089%0.0733897%CitySanteeSan Diego 0.033%0.0268401%CitySolana BeachSan Diego 0.017%0.0138564%CityVistaSan Diego 0.052%0.0425144%ConsolidatedSan FranciscoSan Francisco 3.026% 3.702%3.1457169%CountySan Joaquin CountySan Joaquin 1.680% 2.055%1.7460399%CityLathropSan Joaquin 0.009%0.0075394%CityLodiSan Joaquin 0.053%0.0439484%CityMantecaSan Joaquin 0.054%0.0443454%CityRiponSan Joaquin 0.013%0.0104219%CityStocktonSan Joaquin 0.313% 0.383%0.3256176%CityTracySan Joaquin 0.084%0.0692047%CountySan Luis Obispo CountySan Luis Obispo 0.816% 0.999%0.8484126%CityArroyo Grande San Luis Obispo 0.024%0.0199053%CityAtascaderoSan Luis Obispo 0.029%0.0240680%11 of 1568 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCity El Paso de Robles (Paso Robles) San Luis Obispo 0.043%0.0353456%City Grover Beach San Luis Obispo 0.017%0.0137881%City Morro Bay San Luis Obispo 0.020%0.0160922%City San Luis Obispo San Luis Obispo 0.077%0.0637841%CountySan Mateo CountySan Mateo 1.074% 1.313%1.1159599%City Belmont San Mateo 0.021%0.0169860%City Burlingame San Mateo 0.019%0.0152537%City Daly City San Mateo 0.044%0.0363880%City East Palo Alto San Mateo 0.013%0.0103982%City Foster City San Mateo 0.020%0.0166101%City Half Moon Bay San Mateo 0.004%0.0031638%City Hillsborough San Mateo 0.013%0.0110029%City Menlo Park San Mateo 0.015%0.0126209%City Millbrae San Mateo 0.013%0.0105836%City Pacifica San Mateo 0.016%0.0130625%City Redwood City San Mateo 0.056%0.0463511%City San Bruno San Mateo 0.021%0.0172161%City San Carlos San Mateo 0.013%0.0108885%City San Mateo San Mateo 0.052%0.0425841%City South San Francisco San Mateo 0.043%0.0353943%CountySanta Barbara CountySanta Barbara 1.132% 1.385%1.1768968%City Carpinteria Santa Barbara 0.001%0.0008938%City Goleta Santa Barbara 0.004%0.0028969%City Lompoc Santa Barbara 0.047%0.0389379%City Santa Barbara Santa Barbara 0.122%0.1004559%City Santa Maria Santa Barbara 0.058%0.0479179%CountySanta Clara CountySanta Clara 2.404% 2.941%2.4987553%City Campbell Santa Clara 0.014%0.0112566%City Cupertino Santa Clara 0.008%0.0066824%City Gilroy Santa Clara 0.025%0.0202891%12 of 1569 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityLos AltosSanta Clara 0.013%0.0103338%CityLos GatosSanta Clara 0.013%0.0103220%CityMilpitasSanta Clara 0.036%0.0298120%CityMorgan HillSanta Clara 0.015%0.0124619%CityMountain ViewSanta Clara 0.041%0.0334608%CityPalo AltoSanta Clara 0.039%0.0323080%CitySan JoseSanta Clara 0.294% 0.360%0.3054960%CitySanta ClaraSanta Clara 0.067%0.0549723%CitySaratogaSanta Clara 0.004%0.0034161%CitySunnyvaleSanta Clara 0.053%0.0434069%CountySanta Cruz CountySanta Cruz 0.783% 0.957%0.8135396%CityCapitolaSanta Cruz 0.020%0.0168191%CitySanta CruzSanta Cruz 0.143%0.1180348%CityScotts ValleySanta Cruz 0.015%0.0126525%CityWatsonvilleSanta Cruz 0.063%0.0520136%CountyShasta CountyShasta 1.095% 1.339%1.1380191%CityAndersonShasta 0.024%0.0198896%CityReddingShasta 0.284%0.2334841%CityShasta LakeShasta 0.004%0.0031993%CountySiskiyou CountySiskiyou 0.228% 0.279%0.2373393%CountySolano CountySolano 0.760%0.6260795%CityBeniciaSolano 0.031%0.0253903%CityDixonSolano 0.016%0.0130849%CityFairfieldSolano 0.109%0.0897317%CitySuisun CitySolano 0.021%0.0176183%CityVacavilleSolano 0.119%0.0976497%CityVallejoSolano 0.167%0.1373644%CountySonoma CountySonoma 1.218% 1.490%1.2661290%CityHealdsburgSonoma 0.032%0.0266929%CityPetalumaSonoma 0.081%0.0667507%13 of 1570 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityRohnert ParkSonoma 0.041%0.0340759%CitySanta RosaSonoma 0.184%0.1519070%CitySonomaSonoma 0.022%0.0183438%CityWindsorSonoma 0.016%0.0129298%CountyStanislaus CountyStanislaus 1.722%1.4182273%CityCeresStanislaus 0.041%0.0340260%CityModestoStanislaus 0.217%0.1788759%CityNewmanStanislaus 0.006%0.0046964%CityOakdaleStanislaus 0.018%0.0145531%CityPattersonStanislaus 0.015%0.0126590%CityRiverbankStanislaus 0.010%0.0085699%CityTurlockStanislaus 0.065%0.0531966%CountySutter CountySutter 0.306% 0.374%0.3179548%CityYuba CitySutter 0.074%0.0606242%CountyTehama CountyTehama 0.213% 0.261%0.2216654%CityRed BluffTehama 0.014%0.0117771%CountyTrinity CountyTrinity 0.082% 0.101%0.0855476%CountyTulare CountyTulare 0.809% 0.990%0.8410949%CityDinubaTulare 0.014%0.0116929%CityExeterTulare 0.004%0.0032479%CityFarmersvilleTulare 0.003%0.0027879%CityLindsayTulare 0.007%0.0057111%CityPortervilleTulare 0.021%0.0171845%CityTulareTulare 0.037%0.0302273%CityVisaliaTulare 0.066%0.0545872%CountyTuolumne CountyTuolumne 0.486% 0.594%0.5047621%CountyVentura CountyVentura 2.192% 2.681%2.2781201%CityCamarilloVentura 0.002%0.0012815%CityFillmoreVentura 0.002%0.0020294%CityMoorparkVentura 0.008%0.0067337%14 of 1571 APPENDIX 1Participating Subdivision ClassificationParticipating Subdivision CountyAbatement PercentagePlaintiff Subdivision PercentageWeighted Allcation PercentageCityOxnardVentura 0.156% 0.190%0.1617338%CityPort HuenemeVentura 0.021%0.0174145%CitySan Buenaventura (Ventura) Ventura 0.085%0.0702181%CitySanta PaulaVentura 0.014%0.0119072%CitySimi ValleyVentura 0.065%0.0533043%CityThousand OaksVentura 0.022%0.0179902%CountyYolo CountyYolo 0.357% 0.437%0.3713319%CityDavisYolo 0.055%0.0451747%CityWest SacramentoYolo 0.066%0.0544321%CityWoodlandYolo 0.058%0.0477904%CountyYuba CountyYuba 0.214% 0.262%0.2225679%CityMarysvilleYuba 0.014%0.0112079%15 of 1572 1 APPENDIX 2 Cost Reimbursement Procedure 1. Additional defined terms: a) Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were paid or incurred (i) prior to July 21, 2021 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting this CA Janssen Allocation Agreement. Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs. b) First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section X and Exhibit R of the Distributor Settlement Agreement or Section XI and Exhibit R of the Janssen Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c) Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d) Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses. 2. Cost Reimbursement to Plaintiff Subdivision a) Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating a National Opioid Settlement with Distributors, Johnson & Johnson, and others. b) Claims Procedure. i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section X or Exhibit R of the Distributor Settlement Agreement or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for 73 2 Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act. iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs. iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section VI.B.2 of the Janssen Agreement. vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Janssen a report 74 3 of the fees and expenses incurred by the Special Master pursuant to Section VI.B.2 of the Janssen Agreement. c) Claims Priority and Limitation. i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii. Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices. iii. Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv. Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full. v. In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi. In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Distributor Settlement Agreement and the Janssen Settlement Agreement be used to pay Costs. d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. 75 4 ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above. 76 1 APPENDIX 3 CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Janssen Settlement and their counsel. In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State Back- Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Janssen Settlement Agreement. Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Janssen Settlement Agreement and CA Janssen Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Janssen Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Distributors Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Janssen Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments. The Attorney General is executing this agreement solely because the definition of “State Back- Stop Agreement” in Exhibit R of the Janssen Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party. [DATE] [SUBDIVISION SIGNATURE BLOCK] [DATE] [COUNSEL SIGNATURE BLOCK] [DATE] [ATTORNEY GENERAL SIGNATURE BLOCK] 77