The Opioid Recovery and Remediation Fund holds 50% of New Jerseyâs opioid settlement funds.[1]
With limited exceptions,[2] this share must be spent on the approved uses described in of New Jerseyâs MOA,[3] which is identical to the national settlement agreementsâ Exhibit E, (âApproved Usesâ) and includes prevention, harm reduction, treatment, recovery, and other strategies.[4] State law also includes a non-exhaustive list of âevidence-based or evidence-informed practices or strategiesâ that largely derive from the national settlement agreementsâ Exhibit E, .[5] Reimbursement uses of opioid settlement funds are specifically prohibited statewide.[6]
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 âconsider equitable access for underserviced communities Statewide.â[8]
DHS retains the power to direct settlement monies to âother State departments.â[9] In February 2024, the Governor announced DHSâs 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]
Yes, supplantation is prohibited. New Jersey state law explicitly prohibits supplantation uses of state and local opioid settlement funds.[11] This means that New Jerseyâs opioid settlement funds must be spent in ways that supplement â rather than replace (or âsupplantâ) â existing resources.
Yes (public reporting required). View the stateâs and subdivisionâs annual spending reports .[12] New Jersey law requires DHS to publicly report âdetails of allocations madeâ using funds appropriated from the Opioid Recovery and Remediation Fund.[13]
Visit OpioidSettlementTracker.comâs for an updated collection of statesâ and localitiesâ available expenditure reports.
In March 2024, the Attorney Generalâs office established the Office of Alternative and Community Responses (OACR) to serve as the Department of Law and Public Safetyâs (DLPS) lead entity âwith respect to recovery and treatment services for substance use disorders.â[14] The OACRâs Opioid Prevention and Response Bureau (OPRB) will serve as DLPSâs point of contact âfor discussions involving the use of settlement funds.â[15]
Citations
(âAll Opioid Funds shall be divided with 50% directly to the State (âState Shareâ) and 50% directly to the Participating Local Governments (âLocal Government Shareâ). N.J. Stat. Sec. 26:2G-39(b) (âAny moneys received by any State department pursuant to a national opioid litigation settlement subject to this act shall be transferred into the [Opioid Recovery and Remediation] [F]und,â and âmoneys paid to counties or municipalities shall not be considered to be part of the Stateâs share of moneys received as a result of a national opioid litigation resolutionâ). â
N.J. Stat. Sec. 26:2G-39(c)(1)(b) (describing âpayment of attorneysâ fees, costs, and related litigation expenses related to the national opioid litigation resolutionâ as an approved use of Fund monies); N.J. Stat. Sec. 26:2G-39(e)(15) (describing â[a]dministrative expenses, subject to limits imposed by any national opioid litigation resolutionâ as an approved use of Fund monies); and (acknowledging exception to requirement for spending on approved purposes as to âadministrative expenses . . . and counsel and litigation fees,â capping administrative expenses at 5% of the âState Share,â inclusive of trustee expenses). â
The national settlement agreementâs âApproved Usesâ list is Schedule B of its Exhibit E, a document that âprovides a non-exhaustive list of expenditures that qualify as being paid for Opioid Remediation. Qualifying expenditures may include reasonable related administrative expenses.â Distributor Settlement Agreement I.SS. â
N.J. Stat. Sec. 26:2G-39(e)(1)-(14). â
N.J. Stat. Sec. 26:2G-39(f) (âno 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 moneysâ). âSuch moneysâ refers to funds âallocated to or otherwise received by the State or any of its counties or municipalities as a result of a national opioid litigation resolution.â See also MOA D.7 (âno 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 moneysâ). â
The State of New Jersey has disagreed with this categorization in its communications with Vital Strategies and OpioidSettlementTracker.com. See Community Guides Methodology; N.J. Stat. Sec. 26:2G-39(c)(2)-(3),(d) (âThe Department of Human Services shall be designated the lead agency for the Stateâ; âthe Department of Human Services, which shall allocate the appropriated funds in accordance with the provisions of subsections d., e., and f. of this sectionâ; âthe department shall direct the allocation and disbursement of moneys in the Opioid Recovery and Remediation Fund established by this section, and shall do so in consultation with the Opioid Recovery and Remediation Advisory Councilâ); and 26:2G-40 (âThere is established in the Department of Human Services the Opioid Recovery and Remediation Advisory Councilâ). The Council also advises the governorâs administration as well. Governor Murphy Announces Allocation of $95 Million from New Jerseyâs Opioid Recovery and Remediation Fund. New Jersey Governor press release. February 15, 2024. Accessed August 9, 2024 (âThe Advisory Council, which was established by Executive Order No. 305, and codified by P.L.2023, c.25, is tasked with making recommendations for the Administrationâs consideration regarding the prioritization and effective use of the Stateâs shareâ). See also Frequently Asked Questions. State of New Jersey Opioid Settlements webpage (see âHow will the opioid settlement funds be used?â) (âThe Department of Human Services is the designated lead agency for the state for purposes of directing the disbursement and allocation of the stateâs share of any monies ⌠They are also responsible for monitoring the use of monies disbursed to counties or municipalities under a national opioid litigation resolutionâ). â
N.J. Stat. Sec. 26:2G-39(d). â
N.J. Stat. Sec. 26:2G-39(c)(4) (âMoneys 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 Accountingâ). â
Governor Murphy Announces Allocation of $95 Million from New Jerseyâs Opioid Recovery and Remediation Fund. New Jersey Governor press release. February 15, 2024. Accessed August 9, 2024 (ââAt the recommendation of the Stateâs Opioid Recovery and Remediation Advisory Council and with extensive input from the public, six programs addressing four priority areas â harm reduction, prevention and recovery support, treatment, and housing â have been identified to receive funding over the next two to three yearsâ). â
N.J. Stat. Sec. 26:2G-39(f) (âMoneys, other than attorneysâ 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 actâ). See also Memorandum of Agreement Between the State of New Jersey and Local Governments on Opioid Litigation Recoveries, Sec. D(7). â
N.J. Stat. Sec. 26:2G-43(a), (c) (for each allocation, this report must include âthe allocation amount, program description, involved community providers, goals of the program, and outcome measures to be used to determine program efficacyâ). See also MOA F.5. â
Attorney General Administrative Executive Directive No. 2024-01 I.E(1). March 13, 2024. Accessed August 9, 2024. â
AG Platkin Issues a Directive Formalizing the Office of Alternative and Community Responses Within the Department of Law and Public Safety. Attorney General press release. March 13, 2024. Accessed August 8, 2024. â