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Vernon County adopts state-local opioid MOU allocating 70% of NOAT funds to local governments
Summary
The Board adopted Resolution 2023-01, a memorandum of understanding intended to serve as a Statewide Abatement Agreement for National Opioid Abatement Trust distributions, allocating 30% to Wisconsin and 70% to local governments and agreeing to allowable uses and reporting requirements under NOAT trust procedures.
The Vernon County Board voted on Jan. 26 to adopt Resolution 2023-01, a memorandum of understanding (MOU) intended to function as the Statewide Abatement Agreement for distributions from National Opioid Abatement Trust (NOAT) bankruptcy settlements. The MOU mirrors Trust Distribution Procedures that allocate NOAT funds with 30% to the State of Wisconsin and 70% to local governments.
Administrator Cari Redington told the Board the resolution results from negotiations led by the county's outside counsel to reach agreements related to the opioid class-action litigation. The MOU references pending multidistrict litigation (In re: Opioid Litigation, MDL 2804) and specific bankruptcy cases associated with manufacturers and related trust distribution procedures.
The MOU commits the State and participating local governments to comply with the NOAT Agreements and TDPs, including approved uses and reporting requirements; it also specifies that state-local funds are not "funds of the State or any Local Government unless and until such distribution is made." Dane County is the agreed venue for any disputes under the MOU.
Supervisor Eggen moved adoption, Supervisor Muller seconded, and the motion carried on voice vote. The Board noted this is the "manufacturer" round of funding and that additional funding rounds (including pharmacy-related payments) may follow, per Redington's remarks.
The resolution directs county staff to follow NOAT-approved uses and reporting procedures when funds are distributed; staff said payments are arriving but securitization options are under legal review. The Board is expected to consider additional opioid-related agreements at its February meeting.
