The North Carolina County Commissioners Association, collaborating with its state leadership, announced an agreement on distribution of anticipated opioid settlement funds, resulting from State and local lawsuits against the drug manufacturers. Under the agreement, 80% of funds received will be used by local governments “on the ground” to combat the ongoing crisis.
Attorney General Josh Stein and the North Carolina Association of County Commissioners today unveiled a historic agreement to fight the opioid epidemic. The agreement governs how North Carolina would use the proceeds of any future national settlement or bankruptcy resolution with drug distributors Cardinal, McKesson, and AmerisourceBergen and opioid manufacturers Johnson & Johnson and Purdue Pharma. These potential settlements and resolutions could bring as much as $850 million to North Carolina over an 18-year period to support state and local efforts to address the epidemic.
“The opioid epidemic, in recent years, has taken the lives of more than 16,000 North Carolinians, torn families apart, and ravaged communities from the mountains to the coast,” said Attorney General Josh Stein. “These companies helped to create and fuel this epidemic with irresponsible marketing and a lack of oversight – and they must be held accountable to help clean up this mess. I am working hard, along with fellow attorneys general across the country, to do just that. Should we prevail, today’s agreement between the counties and the state is an important step toward getting much-needed resources to communities across North Carolina as they work to address the epidemic and its aftermath.”
“The opioid epidemic has had a devastating impact on all 100 counties. We all know someone personally affected by this heartbreaking crisis, and local governments remain on the front lines of this epidemic, compounded by the COVID-19 pandemic. This historic agreement will ensure potential opioid settlement funds coming into North Carolina get to people in need quickly and effectively. I, along with our NCACC Board of Directors, urge all counties and our municipal partners to sign this groundbreaking agreement as soon as possible,” said NCACC President Ronnie Smith, Chair, Martin County Board of Commissioners.
The agreement is endorsed by the NCACC Board of Directors, which adopted a resolution in support of the agreement urging all 100 counties and municipal partners to sign on to it without delay.
“The increase in opioid overdoses we saw during the COVID pandemic is a stark reminder that we need strategic, long-term investments to fight the disease of addiction,” said Mandy Cohen, Secretary of the North Carolina Department of Health and Human Services. “This agreement provides needed funding for local partners to implement strategies in North Carolina’s Opioid Action Plan that prevent overdoses and save lives.”
To maximize funds flowing to North Carolina communities on the front lines of the opioid epidemic, the agreement would direct settlement funds as follows:
• 15 percent to the state, which the General Assembly would appropriate to address the epidemic.
• 80 percent to local governments, including all 100 counties and 17 municipalities.
• An additional five percent to an incentive fund to encourage counties and large- and medium-size municipalities to sign on to the agreement.
In addition, the agreement offers a high level of transparency into how local governments will use the funds, including special revenue funds subject to audit, annual financial and impact reports, and a public dashboard showing how they are using settlement funds to address the epidemic.
The state of North Carolina, 76 counties, and eight municipalities are engaged in litigation with or investigations of opioid manufacturers and distributors. All 100 counties – along with large- and medium-size municipalities – will now have the opportunity to review and sign on to the agreement.