CSAC Bulletin Article

Department of Health Care Services Holds Listening Session on Reporting Requirements for Janssen and Distributors (J&D) Opioid Settlement Funds

December 8, 2022

On Wednesday, December 7, the Department of Health Care Services (DHCS) hosted a listening session for participating subdivisions (counties and cities) receiving Janssen & Distributors (J&D) Opioid Settlement funds to discuss expenditure reporting and to solicit feedback on the reporting requirements. The recorded listening session has been posted here on the DHCS California’s Opioid Settlements webpage. Feedback on the topics included in the listening session will be accepted through January 13, 2023, via email at OSF@dhcs.ca.gov.

California is expected to receive $2.05 billion from the J&D Settlement Agreements, which will be paid through 2038. The majority of these funds will be provided to participating subdivisions to be used for opioid abatement activities. All J&D payments will be made by the national settlement administrator, BrownGreer PLC.

DHCS is required to oversee California’s opioid settlement funds, including monitoring the use of funds related to the J&D Settlements and preparing annual reports. Participating subdivisions receiving J&D Settlement funds will be required to report their expenditures to DHCS for compliance monitoring purposes. The listening session is intended to fulfill the requirements outlined in the California State Subdivision Agreements that mandate DHCS to confer with representatives of the plaintiff subdivisions prior to specifying the form of the report.

DHCS is working to develop an online data portal for expenditure reporting, and participating subdivisions will be required to report data into the online portal once a year. Training on how to use the data portal will be available prior to the reporting date. Participating subdivisions will be required to provide planning expenditures for the coming fiscal year at the same time as reporting on prior year expenditures.

Suggested reporting timelines:

  • Due August 31, 2023 – expenditure reports for SFY 2022-23 and planned expenditures for SFY 2023-24.
  • Due August 31, 2024 – expenditure reports for SFY 2023-24 and planned expenditures for SFY 2024-25.
  • DHCS is soliciting feedback on the feasibility of the timeline for subdivisions considering their budgeting and contracting processes, and if subdivisions would prefer to report on a more frequent basis than annually.

DHCS additionally outlined and solicited feedback on the information required to be reported, such as the amount of settlement funds received and expenditures for the prior state fiscal year, brief descriptions of funded activities, interest earned on settlement funds, transfers to/from other subdivisions, and legal expenses.

Next steps:

  • DHCS will compile feedback and questions provided through the session.
  • Technical assistance and guidance documents will be provided to clarify information related to oversight of the J&D Settlements.
  • DHCS will host a listening session on Allowable Expenditures on January 26, 2023.

For a list of allowable activities, DHCS has posted the J&D Settlement Allowable Expenditures resource, which includes C​alifornia’s designated High Impact Abatement Activities and a list of opioid remediation activities from Exhibit E of the National Settlement Agreement. 

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