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

• 50% state share: New Jersey Department of Human Services

• 50% local share: local officials for counties, cities, townships, and boroughs

Where do these monies live?

New Jersey’s local share is distributed to its 262 participating counties, cities, townships, and boroughs,[1] which include all of its 21 counties.[2]

What can this share be spent on?

With limited exceptions,[3] this share must be spent on the approved uses described in Exhibit A of New Jersey’s MOA,[4] which is identical to the national settlement agreements’ Exhibit E, Schedule B (“Approved Uses”) and includes prevention, harm reduction, treatment, recovery, and other strategies.[5] State law also includes a non-exhaustive list of “evidence-based or evidence-informed practices or strategies” that largely derive from the national settlement agreements’ Exhibit E, Schedule B.[6] Reimbursement uses of opioid settlement funds are specifically prohibited statewide.[7]

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

Local governments decide autonomously. Decisionmakers for the counties, cities, townships, and boroughs will ultimately decide for themselves how to spend their monies on approved uses.[8] Each county is required by state law and New Jersey’s MOA to establish a “County Advisory Council” to provide input, advice, and recommendations on the use of its funds for approved purposes,[9] and municipalities may request input, advice, and recommendations from their County Advisory Councils on uses of their funds as well.[10]

According to a state FAQ, “[c]ounty departments, divisions, or agencies that include the County Alcoholism and Drug Abuse Director will serve as the lead agenc[ies] responsible for county abatement funds and reporting responsibilities.”[11]

The Opioid Recovery and Remediation Fund Advisory Council may, but is not required to, recommend local share expenditures and to coordinate with County Advisory Councils “as the [Advisory Council] chairperson deems appropriate."[12]

Is this share attached to an explicit bar against supplantation?

Yes, supplantation is prohibited. New Jersey state law explicitly prohibits supplantation uses of state and local opioid settlement funds.[13] This means that New Jersey’s opioid settlement funds must be spent in ways that supplement — rather than replace (or “supplant”) — existing resources.

Can I see how this share has been spent?

Yes (public reporting required). View the state’s and subdivision’s annual spending reports here. New Jersey’s MOA requires local governments to annually report its expenditures, including funding recipients, amount disbursed on approved purposes, and spending on administrative expenses. These reports are provided to the state and must be made public as well.[14]

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

What else should I know?

Not applicable.

Citations

1. Memorandum of Agreement Between the State of New Jersey and Local Governments on Opioid Litigation Recoveries (MOA) C.2 provides that this share will be distributed according to the percentages in Exhibit B of New Jersey’s agreement, but other sections of the MOA better clarify municipalities’ ability to receive monies directly and optionally transfer their share to their containing counties. See MOA C.4. See also MOA D.1 (providing that the “Local Government Share shall be paid by check or wire transfer directly from the Trustee to the appropriate account identified by the Participating Local Government Entity whether it be a County or Municipality”). ↑

2. The participation of all of New Jersey’s counties eliminates the need for non-participating county “regions” of participating cities anticipated by MOA C.1-2. See Opioid Settlement Funds. New Jersey Office of the State Comptroller website. Accessed September 1, 2024 (“The State will receive half of the funds and the other half will be allocated directly to 262 local government entities—all 21 counties and those municipalities with populations above 10,000)”). See also Governor Murphy and AG Platkin Announce 100% Participation by NJ Counties and Municipalities in $20.1 Billion Nationwide Opioid Settlements with CVS, Walgreens, Walmart Pharmacies, and Two Drug Makers Teva and Allergan. New Jersey Attorney General press release. May 2, 2023. Accessed September 1, 2024 (announcing that “all 21 counties and all 241 municipalities” had signed onto agreements with CVS, Walgreens, Walmart, Teva, and Allergan) and Acting AG Bruck Announces 100% Participation by New Jersey Counties and Municipalities in Historic $26 Billion Opioid Settlement. New Jersey Attorney General press release. February 2, 2022. Accessed September 1, 2024 (announcing that “all 21 counties in New Jersey, and all 241 municipalities” have signed onto settlements with Johnson & Johnson, McKesson, Cardinal Health, and AmerisourceBergen). ↑

3. N.J. Stat. Sec. 26:2G-39(c)(1)(b) (describing “payment of attorneys’ fees, costs, and related litigation expenses related to the national opioid litigation resolution” as an approved use of Fund monies); N.J. Stat. Sec. 26:2G-39(e)(15) (describing “[a]dministrative expenses, subject to limits imposed by any national opioid litigation resolution” as an approved use of Fund monies); MOA D.2-D.3 and F.2 (acknowledging exception to requirement for spending on approved purposes as to “administrative expenses . . . and counsel and litigation fees,” capping administrative expenses at 5% of the “State Share,” inclusive of trustee expenses). ↑

4. MOA D.2 (spending to be consistent with approved purposes) and B.1 (defining “Approved Purpose(s”)). ↑

5. The national settlement agreement’s “Approved Uses” list is Schedule B of its Exhibit E, a document that “provides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation. Qualifying expenditures may include reasonable related administrative expenses.” Distributor Settlement Agreement I.SS. ↑

6. N.J. Stat. Sec. 26:2G-39(e)(1)-(14). ↑

7. N.J. Stat. Sec. 26:2G-39(f) (“no amount of such moneys shall be used to reimburse the State or any of its counties or municipalities for past expenditures, except as may otherwise be required to refund to the federal government a portion of the moneys”). “Such moneys” refers to funds “allocated to or otherwise received by the State or any of its counties or municipalities as a result of a national opioid litigation resolution.” See also MOA D.7 (“no amount of such moneys shall be used to reimburse the State or any of its counties or municipalities for past expenditures, except as may otherwise be required to refund the federal government a portion of the moneys”). ↑

8. See, e.g., Opioid Settlements Frequently Asked Questions. State of New Jersey Opioid Settlements webpage. Accessed August 9, 2024 (“All local allocation decisions are made locally”). ↑

9. N.J. Stat. Sec. 26:2G-42 (“A county that directly receives moneys as a result of a national opioid litigation resolution shall establish an advisory council to provide input, advice, and recommendations on the disbursement of such moneys and, if requested by a municipality within the county, on the disbursement of moneys from a national opioid litigation resolution received by the municipality”). See also MOA C.3. ↑

10. N.J. Stat. Sec. 26:2G-42, MOA C.3. ↑

11. Opioid Settlements Frequently Asked Questions. State of Jersey website. Accessed August 9, 2024 (see response to the question “Which towns and counties will receive opioid settlement funds?”). ↑

12. N.J. Stat. Sec. C.26:2G-40(f)(2). See State of Jersey, Opioid Settlements Frequently Asked Questions. Accessed August 9, 2024 (see response to the question “What is the role of the New Jersey Opioid Recovery and Remediation Fund Advisory Council?”). ↑

13. N.J. Stat. Sec. 26:2G-39(f) (“Moneys, other than attorneys’ fees, costs, and expenses related to litigation, that are allocated to or otherwise received by the State or any of its counties or municipalities as a result of a national opioid litigation resolution shall be used to supplement, and shall not supplant, federal, State, county, or municipal funds, as the case may be, that otherwise would have been used to carry out the purposes delineated in this act”). See also Memorandum of Agreement Between the State of New Jersey and Local Governments on Opioid Litigation Recoveries, Sec. D(7). ↑

14. MOA F.4. ↑

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

Can I provide input on spending?

• 50% state share: Yes (required). State law requires the to “solicit feedback … from stakeholders, local providers, advocates, individuals with lived experience with opioid use disorders, including people who have or are in recovery from an opioid use disorder and family members of people with an opioid use disorder, the academic community, individuals with expertise in areas related to substance use disorders, community groups, and members of the public, regarding the services needed to prevent and treat substance use disorders across the State.”[1] Here are examples of ways the state government has sought feedback on uses for its share:

  • Public portal. The state maintains a public portal for submission of public input, which was open through October 2022. This contains a summary of findings and testimony from that process [2] The state has indicated its intent to periodically reopen the portal “when necessary.”[3] In the meantime, you can email a letter or statement to the at .[4]

  • Public meetings. The Advisory Council held a series of public meetings in Summer 2023 in Camden, Essex and Mercer counties, as well as virtually. Community members were able to provide input at these meetings and videos of the virtual sessions are available .[5]

  • Council meetings. The is only required to meet “at such frequencies as … required by the Governor as well as at the call of the [Advisory Council’s] chairperson.”[6] The state’s opioid settlements does not link to its meetings calendar;[7] email the Advisory Council at .[8]

• 50% local share: Generally, yes. Though local governments are not required to seek public input as to opioid settlement spending specifically, New Jersey’s Open Public Meetings Act requires municipal governing bodies to dedicate a portion of each of their meetings for public comments.[9] Take advantage of this requirement by showing up to meetings of your city council, board of county commissioners, or local health department. Localities may also independently create opportunities for public input on opioid settlement spending. See, e.g., Somerset County’s .

Can I apply for grants?

Yes. Visit to learn more about current funding opportunities from the state’s 50% share.[10] Local governments 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 (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 state share, visit the state’s , including its page.

• For updates on the local share, see the state’s page, which links to subdivisions’ annual reports and examples of strategic plans. To find other updates on the local share, a good starting point is to check the websites for your board of county commissioners, city/town council, or local health department. Alcohol and Drug Use Directors for each county can also be found .

What else should I know?

Only “public bod[ies]” that are “organized by law” and “collectively empowered as a multi-member voting body to spend public funds or affect persons' rights” are formally subject to the New Jersey Open Public Meetings Act (i.e., “The Sunshine Law”).[11] This means that the Opioid Recovery and Remediation Advisory Council and local advisory bodies created merely to advise on opioid settlement spend may not automatically come within its purview.[12]

Citations

1. N.J. Stat. Sec. 26:2G-40(a)(2). ↑

6. N.J. Stat. Sec. 26:2G-40(d). ↑

9. N.J. Stat. Sec. 10:4-12(a) (“a municipal governing body … shall be required to set aside a portion of every meeting of the municipal governing body … the length of the portion to be determined by the municipal governing body … for public comment on any governmental … issue that a member of the public feels may be of concern to the residents of the municipality…”). ↑

11. N.J. Stat. Sec. 10:4-7. ↑

State of New Jersey Opioid Settlements

• • (February 2024)

  • Virtual Public Listening Sessions (, )

New Jersey Department of Health

New Jersey State League of Municipalities

New Jersey Attorney General

Has the state established an advisory body for settlement funds?

Yes. New Jersey state law establishes the to review proposals, engage with stakeholders and community members, and provide non-binding recommendations on spending of the 50% state share.[1] More specifically, the Advisory Council must:[2]

• Collect and evaluate data regarding gaps in and barriers to substance use disorder services[3]

• Seek feedback regarding prevention and treatment service needs from “stakeholders, local providers, advocates, individuals with lived experience with opioid use disorders, including people who have or are in recovery from an opioid use disorder and family members of people with an opioid use disorder, the academic community, individuals with expertise in areas related to substance use disorders, community groups, and members of the public”[4]

• Review and evaluate recommendations submitted through the state’s opioid settlement [5]

• Evaluate New Jersey’s and other states’ approaches to administration of settlement funds[6]

• Consult public- and private-sector experts to inform its efforts “as necessary and appropriate”[7]

• “[T]ake any other actions as the council deems appropriate to inform its recommendations, with the purpose of promoting the equitable and efficient distribution of settlement funds, including the distribution of funds using evidence-based and evidence-informed practices and strategies”[8]

The Advisory Council also may, but is not required to, provide information and recommendations to local governments on spending of the 50% local government share.[9]

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

Yes. The Advisory Council is required by state law to include “two or more individuals who have lived experience with opioid use disorders, including one or more individuals who have or are in recovery from an opioid use disorder and one or more family members of a person with an opioid use disorder.”[10]

What is the overall membership of the state advisory body?

The current members are listed . The Advisory Council is required by state law to include a minimum of 14 members,[11] including:[12]

• Four (4) ex-officio members, each of whom may be represented by a designee to serve in their stead:[13]

  • , who serves as the chairperson[14]

• At least ten (10) public members, appointed by the governor to “reflect the diversity of New Jersey” and who must include public health and policy experts, one or more individuals who have or are in recovery from an opioid use disorder, and one or more family members of a person with an opioid use disorder[15]

• Any other officials or public members the New Jersey Governor deems appropriate[16]

There are no set terms for Advisory Council members, who instead “serve at the pleasure of the Governor.”[17]

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?

Yes. Counties that directly receive opioid settlement funds are required by statute to establish advisory councils to advise and recommend uses of their shares.[18] Each county advisory council must have a minimum of five members, including someone with lived experience:[19]

• A member with “personal experience with substance use and substance use disorder issues”

• A member with expertise in substance use disorder treatment or prevention

• A member representing a community provider of behavioral health or substance use disorder treatment

• The county prosecutor (or designee)

• An individual authorized to appropriate funds on behalf of the governing body of the county (or designee)

County advisory councils may add additional members as they deem “necessary and appropriate.”[20] The county’s Alcoholism and Drug Abuse Director may serve as a member.[21]

What else should I know?

Not applicable.

Citations

2. N.J. Stat. Sec. 26:2G-40(a)(1)-(6). ↑

3. N.J. Stat. Sec. 26:2G-40(a)(1). ↑

4. N.J. Stat. Sec. 26:2G-40(a)(2). ↑

6. N.J. Stat. Sec. 26:2G-40(a)(4). ↑

7. N.J. Stat. Sec. 26:2G-40(a)(5). ↑

8. N.J. Stat. Sec. 26:2G-40(a)(6). ↑

9. N.J. Stat. Sec. 26:2G-40(f)(2). ↑

10. N.J. Stat. Sec. 26:2G-40(b)(2). ↑

11. See N.J. Stat. Sec. 26:2G-40(b)(3) (providing that the Council may contain “additional ex officio and public members as the Governor deems appropriate”). ↑

12. N.J. Stat. Sec. 26:2G-40(b)(1)-(3). ↑

13. N.J. Stat. Sec. 26:2G-40(b)(1). ↑

14. N.J. Stat. Sec. 26:2G-40(c). ↑

15. N.J. Stat. Sec. 26:2G-40(b)(2). ↑

16. N.J. Stat. Sec. 26:2G-40(b)(3). ↑

17. N.J. Stat. Sec. 26:2G-40(c). ↑

Where do these monies live?

The Opioid Recovery and Remediation Fund holds 50% of New Jersey’s opioid settlement funds.[1]

What can this share be spent on?

With limited exceptions,[2] this share must be spent on the approved uses described in of New Jersey’s MOA,[3] which is identical to the national settlement agreements’ Exhibit E, (“Approved Uses”) and includes prevention, harm reduction, treatment, recovery, and other strategies.[4] State law also includes a non-exhaustive list of “evidence-based or evidence-informed practices or strategies” that largely derive from the national settlement agreements’ Exhibit E, .[5] Reimbursement uses of opioid settlement funds are specifically prohibited statewide.[6]

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

New Jersey Opioid Recovery and Remediation Fund Advisory Council guides, Department of Human Services decides. The (DHS) ultimately decides specific expenditures for this share after consulting its .[7] In allocating funds, DHS must “consider equitable access for underserviced communities Statewide.”[8]

DHS retains the power to direct settlement monies to “other State departments.”[9] In February 2024, the Governor announced DHS’s decision to direct $95 million to programs that will be administered by the Departments of Human Services, Health, and Children and Families over the next two to three years.[10]

Is this share attached to an explicit bar against supplantation?

Yes, supplantation is prohibited. New Jersey state law explicitly prohibits supplantation uses of state and local opioid settlement funds.[11] This means that New Jersey’s opioid settlement funds must be spent in ways that supplement — rather than replace (or “supplant”) — existing resources.

Can I see how this share has been spent?

Yes (public reporting required). View the state’s and subdivision’s annual spending reports .[12] New Jersey law requires DHS to publicly report “details of allocations made” using funds appropriated from the Opioid Recovery and Remediation Fund.[13]

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

What else should I know?

In March 2024, the Attorney General’s office established the Office of Alternative and Community Responses (OACR) to serve as the Department of Law and Public Safety’s (DLPS) lead entity “with respect to recovery and treatment services for substance use disorders.”[14] The OACR’s Opioid Prevention and Response Bureau (OPRB) will serve as DLPS’s point of contact “for discussions involving the use of settlement funds.”[15]

Citations

5. N.J. Stat. Sec. 26:2G-39(e)(1)-(14). ↑

8. N.J. Stat. Sec. 26:2G-39(d). ↑

9. N.J. Stat. Sec. 26:2G-39(c)(4) (“Moneys from the fund may be transferred to other State departments as directed by the Commissioner of Human Services in support of the purposes provided for in this act, subject to the approval of the Director of Budget and Accounting”). ↑