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DocuSign'Envelope ID: B15AAEBD-74AB-4EFF-B97F-0776E33BOD86 <br />e) The State will receive the Local Allocation share of any payment to the Settlement Fund <br />that is attributable to a county or city that is eligible to become a CA Participating <br />Subdivision, but that has not, as of the date of that payment to the Settlement Fund, <br />become a Participating Subdivision. <br />I) Funds received by a CA Participating Subdivision, and not expended or encumbered <br />within five years of receipt and in accordance with the Walgreens Settlement Agreement <br />and this CA Walgreens Allocation Agreement shall be transferred to the State; provided <br />however, that CA Participating Subdivisions have seven years to expend or encumber CA <br />Abatement Accounts Funds designated to support capital outlay projects before they must <br />be transferred to the State. This provision shall not apply to the Cost Reimbursement <br />Funds, which shall be controlled by Appendix 2. <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 Rernediation Uses, which is Exhibit E <br />to the Walgreens 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 <br />will 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 <br />facilities 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 <br />impacted 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, <br />employability, restorative justice, and harm reduction; and/or. <br />(5) interventions to prevent drug addiction in vulnerable youth. <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 <br />Participating Subdivisions, before adding additional High Impact Abatement Activities <br />to this list. <br />. d) For the avoidance of doubt, and subject to the requirements of the Walgreens <br />Settlement Agreement and applicable law, CA Participating Subdivisions may form <br />agreements or <br />5 xi 4 hi! ' <br />