Legislation Details

File #: TMP-2333    Version: 1 Name: National Opioid Settlement
Type: Resolution Status: Agenda Ready
File created: 9/9/2025 In control: City Council
On agenda: 9/23/2025 Final action:
Title: RESOLUTION NO. 2025-9495 - NATIONAL OPIOID SETTLEMENTS WITH PURDUE PHARMA L.P., THE SACKLER FAMILY, AND EIGHT SECONDARY OPIOID MANUFACTURERS
Attachments: 1. Attachment A Resolution Authorizing Execution and Submission of Settlement Participation, 2. Attachment B - Settlement Participation Form - Purdue Sackler, 3. Attachment C - Opioid Settlement Participation Form - Secondary Manufacturers, 4. Attachment D - List of Opioid Remediation Uses
Related files: TMP-1631

MEETING DATE:                                          

September 23, 2025

 

SUBJECT:                                            

Title

RESOLUTION NO. 2025-9495 - NATIONAL OPIOID SETTLEMENTS WITH PURDUE PHARMA L.P., THE SACKLER FAMILY, AND EIGHT SECONDARY OPIOID MANUFACTURERS

Body

 

Recommendation
Recommendation

ADOPT a resolution authorizing the City Manager or designee to execute and submit the National Opioid Settlement Participation Forms for the settlement agreements with Purdue Pharma L.P, its former owners, the Sackler family, and eight secondary opioid manufacturers.

 

Body

Board or Commission Action 

Resolution No. 2021-8957 authorized the City Manager or designee to execute and submit the Opioid Settlement Participation forms for the proposed California State Subdivision Agreements regarding distribution and use of settlement funds for the Janssen Settlement and the Distributors Settlement 

 

Executive Summary

Litigation brought by states, cities, and tribes across the United States have resulted in national opioid settlements with Purdue Pharma, L.P., its former owners, the Sackler family, and eight secondary opioid manufacturers.  To participate in any settlement, the City of San Marcos must execute and submit two Settlement Participation Forms.  The City must submit the Purdue/Sackler forms by September 30, 2025 and the Secondary Manufacturer forms by October 8, 2025

 

Discussion

Following a national $7.4 billion dollar settlement agreement with Purdue Pharma and the Sackler family, local municipalities are eligible to receive funding for local programs to address the opioid crisis. Funding will be distributed over 15 years, with the bulk of funding being distributed within the first three years. Local municipalities must authorize an official to sign the settlement.  Funds must generally be used for opioid abatement and remediation activities, such as treatment, prevention, and recovery programs.  A full description of allowable uses is included as Attachment C.

 

Each city and county within California with a population greater than 10,000 is eligible to receive funds and must decide whether to participate in the Additional Settlement Agreements.  The more subdivisions that participate, the greater the amount of funds that will flow to California and participating subdivisions.  If the City does not opt in to the Settlement Agreements, the City’s share will go to the State, but the total amount the State receives may be reduced since it is based on participating cities and counties. By not opting in, the City preserves the ability to litigate against the opioid distributors and manufacturers.

 

In 2021, Council authorized staff to participate in previous opioid settlements, with Janssen and Distributors; however, due to staff capacity at the time, the City directed funds to the County of San Diego in its public health capacity.  Upon review of current settlements, staff is recommending redirecting future funding from prior settlements back to the City to further increase the capacity of settlement funds.

 

Environmental Review

The Opioid Settlements are not a “project” as defined under Section 15378 of the California Environmental Quality Act Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3, Sections 15000 - 15387) and the proposed action is therefore not subject to environmental review pursuant to Guidelines Section 15060(c)(3).

 

Fiscal Impact 

Pending final acceptance of the Purdue, Sackler, Secondary Opioid Manufacturers and previously approved Janssen and Distributors settlements by all parties, the City would receive an estimated maximum amount of $1.4M over the course of 15 years with payments beginning as early as 2026. Pending participation of subdivisions (cities and counties) in the settlement, these amounts could be lower.  Due to the nature of the terms of the settlement, an Opioid Abatement Fund would be created to demonstrate the allocation and expenditure of these funds according to the terms of the settlements.

 

Attachment(s)
Attachment A - Resolution authorizing the City Manager or designee to execute and submit the National Opioid Settlement Participation Forms for the settlement agreements with Purdue Pharma L.P, its former owners, the Sackler family, and eight secondary opioid manufacturers.

Attachment B - Settlement Participation Forms - Sackler Purdue Settlement

Attachment C - Settlement Participation Forms - Secondary Manufacturers Settlement

Attachment D - List of Opioid Remediation Uses (Exhibit E of the Settlements)

 

 

Prepared by:    Sylvia Solis Daniels, Housing and Neighborhood Services Director

Approved by:   Michelle Bender, City Manager