PHOENIX — Arizona’s top two Democratic statewide officials could soon be on opposite sides of a courtroom, as Attorney General Kris Mayes weighs renewed legal action against Gov. Katie Hobbs over the state’s use of opioid settlement funds.

The dispute centers on the money Arizona received through a nationwide settlement with opioid manufacturers, distributors, and pharmacies. Mayes argues the state improperly diverted settlement dollars to the Department of Corrections, Rehabilitation, and Reentry instead of using the money for opioid abatement, prevention, and treatment programs.

The political wrinkle is hard to miss: Mayes, a Democrat, would be targeting not only the Republican-controlled Legislature, but also Hobbs, a fellow Democrat. That sets up an unusual Dem-vs-Dem clash at a time when Arizona Democrats are already navigating budget fights, Medicaid fraud scrutiny, and pressure from Republicans at the Capitol.

Mayes previously sued in 2024 to stop the transfer, but a judge rejected the effort, saying she had not shown evidence that the funds were being used in violation of the settlement agreement. Now, Mayes says a new Auditor General report gives her the proof she lacked. The audit found the prison system spent $50.9 million in opioid settlement funds but lacked records showing the money was spent for approved purposes.

“Told you so,” Mayes said, adding she is “very actively looking” at returning to court.

Republican lawmakers, meanwhile, are likely to revive their earlier criticism of Mayes’ legal challenge. After the 2024 ruling, Senate President Warren Petersen called the case “frivolous,” saying, “Facts matter. Laws matter. And our taxpayers are best served when our elected officials uphold the rule of law.”

Hobbs’ office is defending the spending. Gubernatorial press aide Christian Slater said the funds are being used for Hepatitis C treatment in prisons, which he said is allowed under the settlement, and that the corrections department is improving documentation and internal audits.

Mayes counters that the transfer was effectively a budget backfill, not a targeted opioid response. If she sues, the case would sharpen a rare public split between Arizona’s Democratic governor and Democratic attorney general — while giving Republicans another opening to argue that Mayes is using the courts to relitigate a budget fight she already lost.