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AB-2810 Opioid Settlements Fund.(2023-2024)

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Date Published: 02/15/2024 09:00 PM
AB2810:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill
No. 2810

Introduced by Assembly Member Chen

February 15, 2024

An act to amend Section 12534 of the Government Code, relating to state government.


LEGISLATIVE COUNSEL'S DIGEST


AB 2810, as introduced, Chen. Opioid Settlements Fund.
Existing law establishes within the State Treasury the Litigation Deposits Fund (LDF), under the control of the Department of Justice and consisting of moneys received as litigation deposits for which the state is a party to the litigation. The State of California is a party to certain opioid-related settlements, through which the state receives funds for opioid remediation.
Existing law also establishes the Opioid Settlements Fund (OSF) within the State Treasury, and requires the State Department of Health Care Services to administer the fund. Existing law requires moneys in the OSF, upon appropriation by the Legislature, to be used for opioid remediation in accordance with the terms of the judgment or settlement from which the funds were received. Existing law requires the Controller, upon order of the Director of Finance, to transfer funds received in the LDF allocated to the state for opioid remediation from the 2023 opioid settlements with manufacturers Teva and Allergan, and pharmacies CVS, Walgreens, and Walmart to the OSF.
The bill would instead authorize the Controller, upon order of the Director of Finance, to transfer those above-described funds to the OSF.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 12534 of the Government Code is amended to read:

12534.
 (a) The Opioid Settlements Fund is hereby created in the State Treasury.
(b) Upon order of the Director of Finance, the Controller shall transfer funds received in the Litigation Deposits Fund from the settlement of People v. McKinsey & Company, Inc. (Alameda County Superior Court, No. RG21087649, Feb. 4, 2021) to the Opioid Settlements Fund. Funds received from this settlement that are not deposited in the Litigation Deposits Fund shall be deposited into the Opioid Settlements Fund.
(c) Upon order of the Director of Finance, the Controller shall transfer funds received in the Litigation Deposits Fund allocated to the state for state opioid remediation from the 2022 opioid settlements with Johnson & Johnson, Janssen Pharmaceuticals, McKesson, Cardinal Health, AmerisourceBergen, and Mallinckrodt Pharmaceuticals to the Opioid Settlements Fund.
(d) Upon order of the Director of Finance, the Controller shall may transfer funds received in the Litigation Deposits Fund allocated to the state for state opioid remediation from the 2023 opioid settlements with manufacturers Teva Pharmaceutical Industries Ltd. and Allergan, and pharmacies CVS, Walgreens, and Walmart to the Opioid Settlements Fund.
(e) Upon order of the Director of Finance, the Controller shall transfer funds received in the Litigation Deposits Fund allocated to the state for state opioid remediation from any future judgments, bankruptcies, or settlements pursuant to future Budget Act appropriation to the Opioid Settlements Fund.
(f) Funds received from the settlements outlined in this section or any future judgments, bankruptcies, or settlements allocated to the state for state opioid remediation that are not deposited in the Litigation Deposits Fund shall be deposited in the Opioid Settlements Fund.
(g) Upon appropriation by the Legislature, moneys in the Opioid Settlements Fund shall be used for opioid remediation in accordance with the terms of the judgment or settlement from which the funds were received.
(h) The State Department of Health Care Services shall administer the Opioid Settlements Fund and shall oversee those activities funded by the Opioid Settlements Fund. This shall include, but not be limited to, designating additional high-impact abatement activities, conducting related stakeholder engagement, monitoring the California participating subdivisions for compliance, and preparing periodic written reports.
(i) Under the terms of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds executed pursuant to the 2022 opioid settlements, any settlement funds received by a California participating subdivision that are not expended or encumbered within the time period specified in the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds shall be transferred to the state. These transferred funds shall be deposited into the Opioid Settlements Fund.
(j) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1, the State Department of Health Care Services may implement, interpret, or make specific this section, in whole or in part, by means of information notices or other similar instructions, without taking further regulatory action.
(k) The State Department of Health Care Services may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis for purposes of implementing those activities funded by the Opioid Settlements Fund. Contracts entered into or amended pursuant to this section are exempt from Chapter 6 (commencing with Section 14825) of Part 5.5, Section 19130, Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code, the State Administrative Manual, and the State Contracting Manual, and are exempt from the review or approval of any division of the Department of General Services.
(l) For purposes of this section, ”California participating subdivision” means a city, county, or political subdivision participating in the 2022 settlement agreements listed in subdivision (c) that is either identified as a Plaintiff Subdivision, or identified as a Primary Subdivision with a population equal to or greater than 10,000 residents.