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2021-041
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2021-041
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6/29/2021 9:51:39 AM
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members of the Negotiation Committee regarding the terms of any other Pharmaceutical Supply <br />Chain Participant Settlement. <br />9. Expense Fund - The Parties agree that in any negotiation every effort shall be made <br />to cause Pharmaceutical Supply Chain Participants to pay costs of litigation, including attorneys' <br />fees, in addition to any agreed to Opioid Funds in the Settlement. To the extent that a fund <br />sufficient to pay the entirety of all contingency fee contracts for Local Governments in the State <br />of Florida is not created as part of a Settlement by a Pharmaceutical Supply Chain Participant, the <br />Parties agree that an additional expense fund for attorneys who represent Local Governments <br />(herein "Expense Fund") shall be created out of the City/County fund for the purpose of paying <br />the hard costs of a litigating Local Government and then paying attorneys' fees. <br />(a) The Source of Funds for the Expense Fund- Money for the Expense Fund shall be <br />sourced exclusively from the-City/County Fund. <br />(b) The Amount of the Expense Fund- The State recognizes the value litigating Local <br />Governments bring to the State of Florida in connection with the Settlement <br />because their participation increases the amount Incentive Payments due from each <br />Pharmaceutical Supply Chain Participant. In recognition of that value, the amount <br />of funds that shall be deposited into the Expense fund shall be contingent upon on <br />the percentage of litigating Local Government participation in the Settlement, <br />according to the following table: <br />Litigating Local Government <br />Participation in the <br />Settlement (by percentage of <br />the population) <br />Amount that shall be paid <br />into the Expense Fund <br />from (and as a percentage <br />y/County fund <br />96 to 100% <br />10% <br />91 to 95% <br />7.5% <br />86 to 90% <br />5% <br />85% <br />2.5% <br />Less than 85% <br />0% <br />If fewer than 85% percent of the litigating Local Governments (by population) <br />participate, then the Expense Fund shall not be funded, and this Section of the MOU <br />shall be null and void. <br />(c) The Timing of Payments into the Expense Fund- Although the amount of the <br />Expense Fund shall be calculated based on the entirety of payments due to the <br />City/County fund over a ten to eighteen year period, the Expense Fund shall be <br />funded entirely from payments made by Pharmaceutical Supply Chain Participants <br />during the first two years of the Settlement. Accordingly, to offset the amounts <br />being paid from the City/County to the Expense Fund in the first two years, <br />Counties or Municipalities may borrow from the Regional Fund during the first two <br />years and pay the borrowed amounts back to the Regional Fund during years three, <br />four, and five. <br />
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