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9 <br /> 6. Regular Agenda <br /> a. Opioid Litigation Memorandum of Agreement <br /> The Board considered adopting a Memorandum of Agreement with the State of North <br /> Carolina regarding the disbursement of settlement funds related to the national opioid litigation <br /> and authorizing the Chair to sign. <br /> BACKGROUND: <br /> In 2018 the Board of Commissioners authorized Orange County's participation in national <br /> litigation related to the nationwide opioid epidemic. At that time the County entered an <br /> agreement with the McHugh Fuller Law Group, PLLC to represent the County's interests in the <br /> national litigation. <br /> The national litigation has resulted in the potential for a $26 billion settlement with the four <br /> largest corporate defendants. Should such a settlement occur, the attorneys representing the <br /> local governments, including McHugh Fuller, could have an attorney payment fund of up to $1.6 <br /> billion. Under a settlement of this type, North Carolina could receive up to $850 million in <br /> potential settlement funds over approximately 20 years. <br /> For more than a year, the North Carolina Association of County Commissioners, the North <br /> Carolina Department of Justice, and a committee consisting of five county commissioners, five <br /> county managers, and five county attorneys have worked on the terms of an agreement <br /> regarding the disbursement of potential settlement funds among the state and the counties <br /> should a settlement of the national litigation occur. <br /> The result of this work is the attached MOA that recognizes the critical role of North Carolina <br /> counties in delivering human and social services to county residents. It directs substantial <br /> resources to local governments on the front lines of the opioid epidemic while ensuring that <br /> these resources are used in an effective way to address the epidemic. <br /> Should the national litigation settle as discussed herein, the settlement funds will be distributed <br /> among local governments according to the National Multidistrict Litigation Opioid Allocation <br /> Class Model, which is a formula developed by the national litigation attorneys, including <br /> McHugh Fuller. The formula allocates funds in proportion to where the opioid crisis is the most <br /> severe. The model accounts for the number of pills dispensed, number of opioid overdose <br /> deaths, and number of people suffering from opioid use disorder. A county's allocation <br /> percentage will not change over the term of the MOA. <br /> Pursuant to the terms of the MOA, opioid settlement funds received in North Carolina from the <br /> national settlement will be allocated as follows: <br /> • 80% will go to Local Governments listed in the MOA to address the opioid epidemic, <br /> • 15% will go to the State of North Carolina, <br /> • 5% will be used for a County Incentive Fund for any county (and any municipality in that <br /> county slated to receive settlement funds) in which the county itself and every <br /> municipality of a certain size signs the MOA. <br /> These funds may only be used for opioid remediation activities. <br /> The MOA prescribes collaborative strategic planning and stakeholder involvement required for <br /> certain activities. Counties are required to hold annual meetings with municipalities within their <br />