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Docusign Envelope ID: D1EF72EC-17B5-459A-93D1-E82ABEFBOE5C <br />Abatement Accounts Funds designated to support capital outlay projects before they must <br />be transferred to the State. <br />ii. Use of CA Abatement Accounts Funds <br />a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or <br />more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to <br />the Alvogen Settlement Agreement. <br />b) In addition to this requirement, no less than 50% of the funds received by a CA <br />Participating Subdivision from the Abatement Accounts Fund in each calendar year will <br />be used for one or more of the following High Impact Abatement Activities: <br />(1) the provision of matching funds or operating costs for substance use disorder facilities <br />within the Behavioral Health Continuum Infrastructure Program; <br />(2) creating new or expanded Substance Use Disorder ("SUD") treatment infrastructure; <br />(3) addressing the needs of communities of color and vulnerable populations (including <br />sheltered and unsheltered homeless populations) that are disproportionately impacted <br />by SUD; <br />(4) diversion of people with SUD from the justice system into treatment, including by <br />providing training and resources to first and early responders (sworn and non -sworn) <br />and implementing best practices for outreach, diversion and deflection, employability, <br />restorative justice, and harm reduction; <br />(5) interventions to prevent drug addiction in vulnerable youth, including but not limited <br />to, youth in foster care, juvenile justice -impacted youth, youth experiencing <br />adversities related to socioeconomic status, and unhoused youth; and/or <br />(6) the purchase of naloxone for distribution and efforts to expand access to naloxone for <br />opioid overdose reversals. <br />c) The California Department of Health Care Services ("DHCS") may add to this list (but <br />not delete from it) by designating additional High Impact Abatement Activities. DHCS <br />will make reasonable efforts to consult with stakeholders, including the CA Participating <br />Subdivisions, before adding additional High Impact Abatement Activities to this list. <br />d) For the avoidance of doubt, and subject to the requirements of the Alvogen Settlement <br />Agreement and applicable law, CA Participating Subdivisions may form agreements or <br />ventures, or otherwise work in collaboration with, federal, state, local, tribal or private <br />sector entities in pursuing Opioid Remediation activities funded from the CA Abatement <br />Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for <br />Opioid Remediation consistent with the Alvogen Settlement Agreement and this CA <br />Alvogen Allocation Agreement, a county and any cities or towns within the county may <br />