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Public Health Trust

Public Health Trust. American Public Health Association November 17, 2003 Marice Ashe, JD, MPH Director, Public Health Trust. What is the Public HealthTrust?. It is a project of the Public Health Institute in California

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Public Health Trust

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  1. Public Health Trust American Public Health Association November 17, 2003 Marice Ashe, JD, MPH Director, Public Health Trust

  2. What is the Public HealthTrust? It is a project of the Public Health Institute in California The goal of PHT is to link litigation settlements with public health programs.

  3. How Does It Work? • Cy pres settlements • Statutory direction

  4. Cy Pres Settlements • Original legal concept comes from estate and probate law • If the original intent of the deceased is no longer possible, a court redirects funds to a new and similar purpose • Used in class action settlements when: • Impossible to find all persons harmed • Administratively too burdensome to distribute funds • Equity and fairness are served by redirecting funds • See State of California v. Levi Straus, 41 Cal.3d 460 (1986).

  5. Statutory Direction • Clean Air Act 42 USC § 7604(g)(2): [T]he court in any action under this subsection to apply civil penalties shall have discretion to order that such civil penalties, in lieu of being deposited in the [US Treasury], be used for mitigation projects which are consistent with this Act and enhance the public health and environment. • California Code of Civil Procedure § 384: [T]he court shall amend the judgment to direct the defendant to pay the sum of the unpaid residue, plus interest on that sum . . . In any manner the court determines is consistent with the objectives and purposes of the underlying cause of action. . . .

  6. What Legal Standards Must Be Followed in Managing Funds? • Create a nexus (i.e., close connection) • Subject matter • Geographic location • Target audience • Offer public accountability • Especially with government generated $$

  7. Subject Matter Nexus • A public health project [must be] related to the actual or potential damage to human health caused by the violation. • - US EPA, Supplemental Environmental Projects Policy • “A consent decree must spring from and serve to resolve a dispute within the subject matter jurisdiction”. Firefighters v. Cleveland.

  8. Geographic and Target Population Nexus • Geographic/Location • Focus on geographic community impacted by the alleged violations • Target Population • Focus on the community members impacted by the alleged violations • example: children, elderly, mothers, etc.

  9. Offer Public Accountability • Provide expertise in financial management • Avoid conflicts of interest • Use advisory boards • Involve key stakeholders • Provide access to information • Ensure public disclosure of findings

  10. Examples of Settlements • Environmental Exposures • California’s Proposition 65 (i.e., duty to warn consumers about exposures to carcinogens and reproductive hazards) • Air and water quality, etc • Research projects • Community organizing projects • Pharmaceutical antitrust • $170 million in free drugs for safety net clinics • Start Medicine for People in Need program • See www.medpin.org

  11. Examples con’t. • CA Health & Safety Code • $1.5 million to stop tobacco sponsorship at rodeos • Start Buck Tobacco program • See www.bucktobacco.org

  12. Policies Guide Fund Management • Provide standards for managing conflicts of interest • Ensure public accountability • Protect public interests

  13. Frequently Asked Questions • Who benefits? • Will settlements be more costly? • What happens to injured individuals?

  14. Who Benefits? • Everyone • Communities • Resources are put into programs and education, rather than protracted legal battles. • Plaintiffs • Programs are implemented to remedy the cause of the complaint. • Defendants • Quicker settlements mean fewer resources are put into litigation, and more are directed toward positive outcomes.

  15. Will settlements be more costly? • No. The Public Health Trust does not determine the settlement amounts. • The parties remain in control of the settlement costs.

  16. What happens to injured parties? • The Public Health Trust only receives funds from lawsuits that: • Address harms to the community, and • a harmed individual cannot be easily identified.

  17. For More Information Contact Marice Ashe, JD, MPH Director, Public Health Trust Public Health Institute 505 - 14th Street, Suite 810 Oakland, CA 94612 P: 510-444-1500 F: 510-444-8253 Email: mashe@phi.org www.publichealthtrust.org

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