DRIPPING SPRINGS — Following executive session at its Dec. 3 meeting, Dripping Springs City Council unanimously voted to have the city participate in the opioid settlement agreement with Kroger.
As part of the ongoing efforts to address the opioid crisis, the city of Dripping Springs has the opportunity to join the settlement agreement reached with Kroger, which is one of the parties involved in nationwide opioid litigation. Texas has actively participated in such settlements through the Office of the Attorney General, with funding allocated to local governments under the Texas Opioid Abatement Fund Council’s oversight, according to city council agenda documents.
“What the litigation alleges is that there is a crisis in the United States and in Texas, where individuals are abusing opioids, which are painkillers, prescription painkillers. The pharmacies are being claimed to have dispensed them irresponsibly, ignoring information that maybe they shouldn't be dispensing them,” explained Dripping Springs City Attorney Laura Mueller. “And then, the argument for the manufacturers is that [they are] purposely trying to promote these drugs, even though they knew they were addictive and were going to cause problems. People have abused them [and] people have passed away from them.”
This settlement follows previous agreements with entities such as CVS, Walgreens, Walmart and Allergan, with similar terms and goals. On Dec. 7, 2021, the city of Dripping Springs approved and adopted the Texas Term Sheet via Resolution No. 2021-R40; then, more recently, city council approved a resolution joining the settlement agreement with the other entities on March 21, 2023 via Resolution No. 2023-R13 — prior to the Kroger settlement.
Mueller explained that the Office of the Attorney General contacts local governments when settlement agreements like these take place to see if they want to participate. Every time there is one, it’s put on a city council agenda with a resolution, Mueller said; if the city decides to participate, there is a small amount of funding that is associated with it.
The settlement funds will be allocated to support opioid crisis mitigation strategies, including prevention, treatment and recovery initiatives. The total settlement amount for Texas in this agreement will provide a percentage for eligible local governments that complete and submit participation forms.
“I don't have those numbers right now. In the past, the way it's worked is 15% of the money, the total amount, goes to local governments, like counties and cities, and 85% goes to the state. With one of the other ones, one of the other settlements there was a large pot of money and Hays County shared it with some nearby counties in the same region,” the city attorney explained. “Then, the city got like $800, so we don't think very much; they get millions of dollars to use and to [distribute] there amongst the counties and then, we get just a little bit of profit.”
Mueller went on to further explain that the city will have a separate account with that specific funding. While it has not been decided on specific items for that budget, the city is looking to use it for opioid education, she said.
“There's going to be more resources in Hays County overall to help with this, for the education, and to help any individual that has struggled with this,” Mueller said.
Upon council approval, the city attorney's office will finalize and submit the participation form to the Texas Attorney General’s Office before the required deadline, ensuring the city is included in the settlement distribution process.
