Has the state established an advisory body for settlement funds?

No. Arizona has not established an advisory body to inform opioid settlement spending.

Is the state advisory body required to include member(s) with lived and/or living experience?

Not applicable.

What is the overall membership of the state advisory body?

Not applicable.

Are local governments required to establish a settlement advisory body? If so, are local advisory bodies required to include member(s) with lived and/or living experience?

No (up to each locality). Neither local governments nor the state’s 15 single-county regions are required to establish opioid settlement advisory bodies.[1] However, localities may independently choose to establish advisory councils that include members with lived and/or living experience to help ensure that settlement spending reflects community priorities.

What else should I know?

Not applicable.

Citations

1. Though the One Arizona Agreement anticipates “multicounty regions” throughout, in practice, each of Arizona’s regions are single-county regions. See One Arizona Agreement, Secs. B.4 (“For each Multicounty Region, an advisory council shall be formed from the Participating Local Governments in the Multicounty Region to distribute the collective LG Share funds”), B.5 (“For each Region consisting of the Participating Cities and Towns within a non-Participating County, an advisory council shall be formed from the Participating Cities and Towns in the Region to distribute the LG Share funds”). ↑

Here are the entities that ultimately decide how each of Arizona’s opioid settlement shares are spent:

• 56% local share: local officials for counties, cities, and towns

• 44% state share: Arizona state legislature

Can I provide input on spending?

• 56% local share: Up to each locality (not required). Local governments are not required to seek public input on uses of their shares. However, each may choose to seek such input. For example, Cochise County distributed a survey to seek community feedback on its opioid settlement spending priorities.[1]

• 44% state share: No opportunities available. The state government has not established a way for the public to provide input on uses of its ­­­44% share.[2]

Can I apply for grants?

Yes. The state has previously issued settlement-funded RFPs for which community organizations were eligible to apply. Local governments also may create grant programs to distribute their share of funds. The existence, parameters, and processes for local settlement grant programs will vary by locality, so stay alert for new opportunities. Visit the Opioid Settlement Community Grants Portals (OpioidSettlementTracker.com and Legal Action Center) for the most up-to-date information on settlement grant opportunities for community organizations.

Where do I go for updates?

• For updates on the local government share, visit the Arizona Attorney General’s Opioids website and Regional Distribution Dashboard. Another good starting point is to check the website for your county board of supervisors, city council, or local health department. See, e.g., Maricopa County.

• For updates on the state share, visit the Arizona Attorney General’s Opioids website and State Distribution Dashboard.

What else should I know?

Not applicable.

Citations

1. One Arizona – Opioid Settlement Funds Executive Summary: Cochise County, AZ – May 2023. Cochise County Health and Human Services. May 2023 (“The goal is to identify approved purposes that can be implemented across the County. However, if that is not the outcome and a particular City or Town decides they want to implement their own selected strategies that decision will be honored. It will be up to the City or Town to ensure their use of the funds are on approved purposes”). ↑

2. If you see this change, email tips@opioidsettlementtracker.com. There is no legal requirement for decision-makers to seek public input on uses of this share. ↑

Arizona Attorney General

• Opioids

  • Opioid Settlement Funds

• Regional Distribution Dashboard

• State Distribution Dashboard

Arizona Department of Health Services

• Weekly Opioid Data

Where do these monies live?

Arizona’s 44% state share is held by the state attorney general in the Consumer Remediation Subaccount of the Consumer Restitution and Remediation Revolving Fund.[1]

What can this share be spent on?

With limited exceptions,[2] this share must be spent on “Approved Purposes,” defined as the Opioid Abatement Strategies listed in Exhibit A of the One Arizona Agreement. (Exhibit A is identical to the national settlement agreements’ Exhibit E and includes prevention, harm reduction, treatment, recovery, and other strategies.)[3]

Additionally, the One Arizona Agreement provides that the state “will endeavor to prioritize up to 30% of the state share” (13.2% of the state’s total opioid settlement funds) for:

• “[O]pioid education and advertising related to awareness, addiction, or treatment;

• Department of Corrections and related prison and jail opioid uses; and

• [O]pioid interdiction and abatement on Arizona’s southern border, including grants to assist with the building, remodeling and/or operation of centers for treatment, drug testing, medication-assisted treatment services, probation, job training, and/or counseling services, among other programs.”[4]

The Arizona Attorney General’s Office has published a guidance document, “Approved Purposes as Defined in the One Arizona Agreement,” which summarizes the 12 categories of interventions in Exhibit A.

Who ultimately decides how to spend this share (and how)?

State legislature decides. The Arizona state legislature ultimately decides how to spend the 44% state share of opioid settlement funds.[5] In addition to directly appropriating settlement funds,[6] the legislature also approves disbursed amounts, timeframes, and purposes from an “Expenditure Plan” submitted by the attorney general to the Joint Legislative Budget Committee.[7] The state is explicitly empowered to grant its share to organizations.[8]

Are supplantation uses prohibited for this share?

No, supplantation is not prohibited. Like most states, Arizona does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that the 44% state share may be spent in ways that replace (or “supplant”) — rather than supplement — existing resources.

Can I see how this share has been spent?

Yes (public reporting required). View the Arizona Attorney General’s State Distribution Dashboard. The state is required to publish on its website an annual report detailing its settlement expenditures during the prior year.[9]

Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.

What else should I know?

Arizona capped its 2024 legislative session with a heated power struggle between the state attorney general and the governor and state legislature over the use of state opioid settlement funds. More specifically, the state attorney general objected to and filed litigation to stop the governor and state legislature’s plan to use opioid settlement funds to cover shortfalls in the Arizona Department of Corrections’ budget.[10] The governor and state legislature ultimately prevailed, with a state judge dismissing the attorney general’s lawsuit.[11]

Citations

1. One Arizona Distribution of Opioid Settlement Funds Agreement, Secs. A.12, C.5; Ariz. Rev. Stat. Sec. 44-1531.02(C). ↑

2. One Arizona Distribution of Opioid Settlement Funds Agreement, Secs. C.2 (“All Opioid Funds, except those allocated to payment of counsel and litigation expenses as set forth in Section E, shall be utilized in a manner consistent with the Approved Purposes definition”), E.1 (“The Parties anticipate that any Settlement will provide for the payment of all or a portion of the fees and litigation expenses of certain state and local governments”), E.6 (“No portion of the State Share shall be used for the Backstop Fund or in any other way to fund any Participating Local Government’s attorney’s fees and costs”), E.8 (“The Attorneys’ Fees and Costs schedule for the Settling Distributors is listed in Exhibit R Sec. (II)(S)(1) of the Settlement with the Settling Distributors. The Attorneys’ Fees and Costs schedule for J&J is listed in Exhibit R Sec. (II)(A)(1) of the Settlement with J&J”). ↑

3. One Arizona Distribution of Opioid Settlement Funds Agreement, Secs. A.1 (“’Approved Purpose(s)’ shall mean those uses identified in the agreed Opioid Abatement Strategies attached as Exhibit A”), C.2, Exhibit A. ↑

4. One Arizona Distribution of Opioid Settlement Funds Agreement, Sec. C.8. ↑

5. Ariz. Rev. Stat. Secs. 44-1531.02(C) (“All monies deposited in the subaccount pursuant to opioid claims-related litigation or settlements are subject to legislative appropriation”), (D) (specifying that the annual “ account must include a separate delineated report that includes the receipts and disbursements for all opioid claims-related litigation monies”). ↑

6. See, e.g., FY 2025 Final Budget Bills, Pages 2, 4-5, 17, 27, 32, 38, 57-60. Joint Legislative Budget Committee. June 19, 2024. (outlining direct appropriations/transfers of opioid settlement funds to the Department of Corrections, Department of Emergency and Military Affairs, and Department of Health Services). ↑

7. See, e.g., Minutes of the Meeting of the Joint Legislative Budget Committee, Regular Agenda Item #1. October 10, 2023 (approving Attorney General expenditure plan request to use $11.5 million in opioid settlement funds for grants “to counties that established a coordinated reentry planning services program within a county jail … on or before June 30, 2023”). Accessed July 8, 2024. See also State Distribution Dashboard. Arizona Attorney General website. (“The settlement funds allocated to the State are subject to legislative appropriation. The Arizona Legislature approves the amount of the appropriation and the period of time it covers. The State creates an Expenditure Plan for distribution of the funds and submits the plan to the Joint Legislative Budget Committee”). Accessed July 8, 2024. ↑

8. One Arizona Distribution of Opioid Settlement Funds Agreement, Sec. C.6 (“The State Share shall be used only for (1) Approved Purposes within the State or (2) grants to organizations for Approved Purposes within the State”) (emphasis added). Specific grant programs may be subject to anti-supplantation requirements. See, e.g., Minutes of the Meeting of the Joint Legislative Budget Committee, Regular Agenda Item #1. October 10, 2023 (approving Attorney General expenditure plan request to use $11.5 million in opioid settlement funds for grants “to counties that established a coordinated reentry planning services program within a county jail … on or before June 30, 2023, subject to the following provisions: … C. Grants allocated under this section shall supplement and not supplant any existing local funds allocated to coordinated reentry planning services programs”). Accessed July 8, 2024. ↑

9. One Arizona Distribution of Opioid Settlement Funds Agreement, Sec. F.6 (“No later than September 30 of each year, the State shall publish on its website a report detailing for the preceding fiscal year (1) the amount of the State Share received, (2) the allocation of any awards approved (listing the recipient, the amount awarded, the program to be funded, and disbursement terms), and (3) the amounts disbursed on approved allocations”). ↑

10. See Howard Fischer. Attorney General threatens suit against lawmakers, governor over fund raid. Arizona Capitol Times. June 14, 2024. (“Attorney General Kris Mayes says if state lawmakers and Gov. Katie Hobbs want to immediately seize $75 million out of an opioid settlement fund to balance the state budget they’re going to have to come and get it”). Accessed July 8, 2024; Cameron Arcand. Attorney General slams budget passed by legislature, takes aim at Hobbs. The Center Square. Jun 17, 2024. Accessed July 8, 2024; Phil Boas. Kris Mayes will regret bludgeoning Arizona leaders with a legal fight. Arizona Republic. June 17, 2024. Accessed July 8, 2024; Jim Small. Judge blocks use of opioid settlement money to balance Arizona’s budget deficit. Arizona Mirror. June 20, 2024. Accessed July 8, 2024; Howard Fischer. Judge stops Arizona from diverting opioid settlement funds, for now. Capitol Media Services. June 20, 2024. Accessed July 8, 2024. See also Attorney General Mayes Releases Statement On State Budget. Arizona Attorney General press release. June 17, 2024 (“I am extremely disappointed our Democratic Governor, along with GOP leadership at our State Legislature, would put our $1.14 billion, 18-year opioid One Arizona Agreement at risk by attempting to sweep opioid funds to backfill budget deficits caused by GOP policies. Though I repeatedly warned them this is an unlawful use of these funds, they proceeded with moving forward anyway. … I have stated publicly and very clearly that I refuse to release these funds in this way as it would violate the agreement, and I stand by those words today. This is an egregious grab. I will do everything in my power to protect these opioid settlement funds for all Arizonans”). ↑

11. See Joe Dana. Judge rules against AG Kris Mayes in opioid funds question. 12 News. June 25, 2024. (“Mayes said she plans to closely monitor how 'each penny' of the settlement is spent by the ADCRR. 'I continue to believe the move by the Legislature and the Governor to sweep these funds in this manner is wrong,' Mayes said in a statement. 'I also believe that this move in a very real way puts at risk future settlement payments'”). Accessed July 8, 2024. See also Gloria Rebecca Gomez. Hobbs, GOP leaders: Mayes owes attorney’s fees for opioid settlement lawsuit. Arizona Mirror. June 28, 2024. Accessed July 8, 2024. ↑

Where do these monies live?

Arizona’s 56% local share is distributed to directly to the 15 county-regions listed here. These counties then further sub-allocate their county shares to their cities and towns (91 total statewide), with allocations based on either a local agreement or a default formula.[1] Cities may transfer their shares to their counties.[2]

What can this share be spent on?

With limited exceptions,[3] this share must be spent on “Approved Purposes,” defined as the Opioid Abatement Strategies listed in Exhibit A of the One Arizona Agreement. (Exhibit A is identical to the national settlement agreements’ Exhibit E and includes prevention, harm reduction, treatment, recovery, and other strategies.)[4]

The Arizona Attorney General’s Office has published a guidance document, “Approved Purposes as Defined in the One Arizona Agreement,” which summarizes the 12 categories of interventions in Exhibit A.

Who ultimately decides how to spend this share (and how)?

Local governments decide autonomously (but counties must consult cities and towns). The One Arizona Agreement designates the health departments for each of the 15 counties as lead agencies for the distribution of local settlement funds, and county health departments must consult with cities and towns in their county on the distribution of their shares.[5]

Importantly, while county health departments are designated as “lead” agencies, individual cities and towns may choose to retain discretion over how to use their share of funds,[6] and local governing bodies (i.e., county boards of supervisors and city councils) will generally give final approval for settlement spending on Approved Purposes.[7] Localities are explicitly empowered to distribute their shares as grants to organizations.[8]

Are supplantation uses prohibited for this share?

No, supplantation is not prohibited. Like most states, Arizona does not explicitly prohibit supplantation uses of its opioid settlement funds. This means that local governments may spend funds from their share in ways that replace (or “supplant”) — rather than supplement — existing resources.[9]

Can I see how this share has been spent?

Yes (public reporting required). View the Arizona Attorney General’s Regional Distribution Dashboard. Each region (i.e., county) is required to submit an annual report to the state detailing its settlement expenditures,[10] and the state must publish these reports on its website.[11]

Visit OpioidSettlementTracker.com’s Expenditure Report Tracker for an updated collection of states’ and localities’ available expenditure reports.

What else should I know?

Localities can choose to pool their funds. For example, Pima County and the city of Tucson entered an intergovernmental agreement “to pool their default allocations of the [Local Share]” and empowering the Pima County Health Department to authorize the use of such funds, including by awarding grants to organizations.[12]

Citations

1. One Arizona Distribution of Opioid Settlement Funds Agreement, Sec. C.3. ↑

2. See, e.g., Briefs: Council transfers opioid settlement funds to SCC. Nogales International. July 19, 2024. Accessed September 1, 2024 (“In a city document, city officials wrote they ‘do not wish to be burdened’ by state requirements outlining appropriate use-of-funds and reporting stipulations. Instead, members of the Nogales City Council approved an accompanying measure: transfer the city’s allotted portion of the settlement funds for Santa Cruz County officials to manage it”). ↑

3. One Arizona Distribution of Opioid Settlement Funds Agreement, Secs. C.2 (“All Opioid Funds, except those allocated to payment of counsel and litigation expenses as set forth in Section E, shall be utilized in a manner consistent with the Approved Purposes definition”), E.5 (“The Backstop Fund is to be used to compensate counsel for Participating Local Governments that filed opioid lawsuits by September 1, 2020 (‘Litigating Participating Local Governments’)”), E.6 (“From any national Settlement, the funds in the Backstop Fund shall equal 14.25% of the LG Share for that Settlement. No portion of the State Share shall be used for the Backstop Fund or in any other way to fund any Participating Local Government’s attorney’s fees and costs”), E.9 (“Any funds remaining in the Backstop Fund in excess of the amounts needed to cover private counsel’s representation agreements shall revert to the Participating Local Governments”). ↑

4. One Arizona Distribution of Opioid Settlement Funds Agreement, Secs. A.1 (“’Approved Purpose(s)’ shall mean those uses identified in the agreed Opioid Abatement Strategies attached as Exhibit A”), C.2, Exhibit A. ↑

5. One Arizona Distribution of Opioid Settlement Funds Agreement, Sec. B.3 (“In single-county Regions, that county’s health department will serve as the lead agency responsible for distributing the LG Share funds. That health department, acting as the lead agency, shall consult with the cities and towns in the county regarding distribution of the LG Share funds”). See also Region Distribution Dashboard. Arizona Attorney General website. Accessed August 13, 2024 (providing that “[e]ach local government controls how the settlement funds are spent” and listing only single-county regions, thereby allowing us to ignore One Arizona Agreement B.4’s rules for multi-county regions). ↑

6. These shares are outlined in Exhibit C of the One Arizona Distribution of Opioid Settlement Funds Agreement, absent a local agreement dictating a different allocation. See One Arizona Distribution of Opioid Settlement Funds Agreement, Sec. C.3. See also, e.g., Opioid Settlement Planning. Maricopa County website. Accessed August 13, 2024 (“The county will retain 51.53% of the funds and distribute the remaining 48.47% among participating cities and towns. … In Maricopa County, the Department of Public Health will serve as the Lead Agency for administration of county funds and will be responsible for arranging payments to municipalities”). ↑

7. See, e.g., Yavapai County Board of Supervisors Meeting Agenda for June 5, 2024, Action Requested by Community Health Services. Accessed July 7, 2024 (Yavapai County Community Health Services requesting Board of Supervisor approval to use county opioid settlement funds for ten grant projects and other assorted initiatives); Brandon Messick. Ten agencies could get $1.4 million in opioid settlement funding. Today’s News-Herald Havasu News. June 12, 2024. Accessed August 13, 2024 (reporting on Mohave County’s Board of Supervisors as voting to approve recommendations by its staff for uses of settlement funds); Chandler City Council approves agreements to partner with nonprofits for opioid treatment and prevention. Chandler Arizona website. June 18, 2024. Accessed August 13, 2024 (describing city council’s approval of contracts with local organizations). ↑

8. One Arizona Distribution of Opioid Settlement Funds Agreement, Sec. C.7 (“The LG Share shall be used only for (1) Approved Purposes by Participating Local Governments within a Region or Multicounty Region or (2) grants to organizations for Approved Purposes within a Region or Multicounty Region”) (emphasis added). ↑

9. Specific grant programs may be subject to anti-supplantation requirements. See, e.g., Minutes of the Meeting of the Joint Legislative Budget Committee, Regular Agenda Item #1. October 10, 2023 (approving Attorney General expenditure plan request to use $11.5 million in opioid settlement funds for grants “to counties that established a coordinated reentry planning services program within a county jail … on or before June 30, 2023, subject to the following provisions: … C. Grants allocated under this section shall supplement and not supplant any existing local funds allocated to coordinated reentry planning services programs”). ↑

10. One Arizona Distribution of Opioid Settlement Funds Agreement, Sec. F.5 (“At least annually, by July 31 of each year, each Region or Multicounty Region shall provide to the State a report detailing for the preceding fiscal year (1) the amount of the LG Share received by each Participating Local Government within the Region or Multicounty Region, (2) the allocation of any awards approved (listing the recipient, the amount awarded, the program to be funded, and disbursement terms), and (3) the amounts disbursed on approved allocations. In order to facilitate this reporting, each Participating Local Government within a Region or Multicounty Region shall provide information necessary to meet these reporting obligations to a delegate(s) selected by the Region or Multicounty Region to provide its annual report to the State”). ↑

11. One Arizona Distribution of Opioid Settlement Funds Agreement, Sec. F.6. ↑

12. Intergovernmental Agreement Between Pima County and the City of Tucson for Disbursement of Opioid Settlement Funds, Secs. 4.1 and 4.2. Accessed July 7, 2024. ↑

This Community Guide will describe how Arizona is spending its opioid settlements and whether Arizona is working to ensure community access to opioid settlement funds. Last revised September 1, 2024.