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5 <br />iii. CA Abatement Accounts Fund Oversight <br />a)Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds <br />must prepare and file reports annually regarding the use of those funds. DHCS may <br />regularly review the reports prepared by CA Participating Subdivisions about the use of <br />CA Abatement Accounts Funds for compliance with the Janssen Settlement Agreement <br />and this CA Janssen Allocation Agreement. <br />b)If DHCS determines that a CA Participating Subdivision’s use of CA Abatement <br />Accounts Funds is inconsistent with the Janssen Settlement Agreement or this CA <br />Janssen Allocation Agreement, whether through review of reports or information from <br />any other sources, DHCS shall send a request to meet and confer with the CA <br />Participating Subdivision. The parties shall meet and confer in an effort to resolve the <br />concern. <br />c)If the parties are unable to reach a resolution, DHCS may conduct an audit of the <br />Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to <br />meet and confer, unless the parties mutually agree in writing to extend the meet and <br />confer time frame. <br />d)If the concern still cannot be resolved, the State may bring a motion or action in the court <br />where the State has filed its Consent Judgment to resolve the concern or otherwise <br />enforce the requirements of the Janssen Settlement Agreement or this CA Janssen <br />Allocation Agreement. However, in no case shall any audit be conducted, or motion be <br />brought, as to a specific expenditure of funds, more than five years after the date on <br />which the expenditure of the funds was reported to DHCS, in accordance with this <br />agreement. <br />e)Notwithstanding the foregoing, this Agreement does not limit the statutory or <br />constitutional authority of any state or local agency or official to conduct audits, <br />investigations, or other oversight activities, or to pursue administrative, civil, or criminal <br />enforcement actions. <br />C. CA Subdivision Fund <br />i.Fifteen percent of the total Settlement Fund payments will be allocated to the CA <br />Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the <br />Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, <br />subject to any limits imposed by the Janssen Settlement Agreement and this CA Janssen <br />Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid- <br />related expenses, which may include fees and expenses related to litigation, and to pay <br />the reasonable fees and expenses of the Special Master as set forth in Appendix 2. <br />319