§ 5-104 Alternative Dispute Resolution

A. Definitions. In this section, the following definitions apply: “Alternative dispute resolution (ADR)” means various processes facilitated by a neutral third party for the purpose of helping parties consider ways to resolve their dispute. “Court” means the superior or justice court.

B. Authority. A.R.S. § 12-135 provides:

A. The alternative dispute resolution fund is established consisting of monies deposited in the fund to pursuant to section 12-284.03, subsection A, paragraph 5, section 22-281, subsection C, paragraph 2 and section 41-178.

B. Courts wishing to participate in the alternative dispute resolution program may apply to the supreme court for funding. The supreme court shall administer the fund and may expend monies in the fund for local, regional or statewide projects that establish, maintain, improve or enhance alternative dispute resolution programs.

C. On notice from the supreme court, the state treasurer shall invest and divest monies in the alternative dispute resolution fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

D. Monies from the alternative dispute resolution fund that are provided to local courts shall be used to supplement, not supplant, local funding that would otherwise be made available for alternative dispute resolution programs.

E. The supreme court shall use monies that are deposited in the fund pursuant to section 12-284.03, subsection A, paragraph 5 to implement, administer and fund alternative dispute resolution programs for the superior court in the counties that apply for funding.

F. The supreme court shall use monies that are deposited in the fund pursuant to section 22-281, subsection C, paragraph 2 to implement, administer and fund alternative dispute resolution programs for justice courts that apply for funding.

G. Monies in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations.

C. General Administration. The chief justice or designee shall allocate and expend projected funds each fiscal year for administration and authorized projects. The ADR fund shall be administered by the Administrative Office of the Courts (AOC). The administrative director or designee shall:

1. Prepare fiscal projections and create a budget based on the projections for the purpose of administering the ADR fund.

2. Monitor, inspect, and audit or have audited all records of any court ADR programs receiving monies from the ADR fund.

3. Monitor compliance with collection and submission of ADR monies required by A.R.S. §§ 22-281 and 12-284.03.

4. Submit an annual report to the legislature and the governor detailing the amount of monies collected and expended by January 31 of each year for the prior fiscal year.

5. Conduct seminars and educational sessions and provide assistance to judges, court staff, and other public agencies regarding the purposes and operations of ADR.

6. Contract with public or private agencies, if necessary, for professional services to assist in the administration of the ADR fund.

7. Establish priorities for funding ADR projects.

8. Review all submitted applications and recommend approval, disapproval, or modification of the applications.

9. Authorize disbursement of funds for approved applications.

D. Program Operation.

1. Monies collected by the courts pursuant to A.R.S. §§ 22-281 and 12-284 shall be submitted to the State Treasurer by the county treasurers no later than the fifteenth day of each month following the month in which the monies are collected.

2. To request ADR funds, courts must submit an application to the AOC on forms provided by the AOC, using procedures and instructions developed by the AOC.

3. Upon approval of an application by the chief justice or designee, the administrative director shall enter into a written funding arrangement with the requesting court or other applicant to provide for the distribution of funds.

4. All ADR funds awarded to a court shall be deposited in a separate revenue account for the designated court with the County Treasurer. All accrued interest on deposits to the separate accounts shall be expended according to the approved application.

5. The administrative director has the authority to alter or terminate the ADR funding arrangement if such action is necessary due to a lack of funds in the account, lack of financial need by any applicant or failure to comply with the applicable statutes, policies, funding agreements, or administrative requirements. Adopted by Administrative Order 2002-09 effective January 11, 2002. Amended by Administrative Order 2024-61, effective April 10, 2024. Amended erroneously by Administrative Order 2026-90, which was rescinded by Administrative Order 2026-120.