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MISSISSIPPI LEGISLATURE 2026 Regular Session To: Judiciary, Division A By: Senator(s) Boyd Senate Bill 2726 (As Sent to Governor) AN ACT TO AMEND SECTION 41-153-1, MISSISSIPPI CODE OF 1972, TO DEFINE THE TERMS "SETTLEMENT FUNDS" AND "FUND"; TO PROVIDE THAT THE LEGISLATURE MAY DETERMINE WHICH OF THE APPLICANTS FROM THE LIST OF RECOMMENDED GRANT RECIPIENTS RECEIVED FROM THE MISSISSIPPI OPIOID SETTLEMENT FUND ADVISORY COUNCIL SHALL RECEIVE SETTLEMENT FUNDS AND THE AMOUNT EACH APPLICANT SHALL RECEIVE, IF ANY, BY SEPARATE LINE ITEMS IN AN APPROPRIATION BILL; TO REQUIRE THE ADVISORY COUNCIL, WHEN DEVELOPING PRIORITIES TO GUIDE THE SELECTION OF GRANT RECIPIENTS, TO ALIGN WITH CERTAIN STRATEGY PILLARS FOR ADDRESSING OPIOID USE DISORDER AND OVERDOSE; TO DIRECT THE ADVISORY COUNCIL, BY AND THROUGH THE OFFICE OF THE ATTORNEY GENERAL, TO SOLICIT AND ENTER INTO A CONTRACT WITH A QUALIFIED THIRD PARTY TO CREATE AND ADMINISTER AN ONLINE PLATFORM FOR THE SUBMISSION OF GRANT PROPOSALS, PROVIDE TECHNICAL ASSISTANCE TO GRANT APPLICANTS IN SUBMITTING SUCH PROPOSALS, PROVIDE AN INITIAL INDEPENDENT ASSESSMENT AND EVALUATION, SCORING AND CATEGORIZATION OF PROPOSALS USING STANDARDIZED CRITERIA, GRANT ADMINISTRATION AND PROVIDE OUTCOME MONITORING, INCLUDING THE REVIEW OF QUARTERLY REPORTS AND OTHER NECESSARY DATA, AND THE REPORTING OF SUCH DATA TO THE ADVISORY COUNCIL AND TO THE PUBLIC ON THE ATTORNEY GENERAL'S WEBSITE; TO PROHIBIT A MEMBER OF THE ADVISORY COUNCIL FROM, DIRECTLY OR INDIRECTLY, INFLUENCING, SEEKING TO INFLUENCE, VOTING ON, OR PARTICIPATING IN THE RECOMMENDATION OF GRANT RECIPIENTS OR THE RECOMMENDATION TO ALLOCATE FUNDS FOR THE BENEFIT OF ANY ORGANIZATION WITH WHICH THE MEMBER HAS AN AFFILIATION; TO REQUIRE A MEMBER OF THE ADVISORY COUNCIL TO RECUSE ON SUCH MATTERS; TO CONFORM THE QUORUM REQUIREMENT OF THE ADVISORY COUNCIL; TO REVISE THE REPORTING REQUIREMENTS RELATED TO SETTLEMENT FUNDS; TO REENACT SECTION 27-103-305, MISSISSIPPI CODE OF 1972, WHICH AUTHORIZES THE OPIOID SETTLEMENT FUND; TO DIRECT THE TRANSFER OF CERTAIN FUNDS INTO THE OPIOID SETTLEMENT FUND; AND FOR RELATED PURPOSES. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI: SECTION 1. Section 41-153-1, Mississippi Code of 1972, is amended as follows: 41-153-1. (1) As used in this section, Section 27-103-305 and Section 27-103-305.1, the following terms shall have the meanings as defined in this subsection unless the context clearly requires otherwise: (a) "Council" means the Mississippi Opioid Settlement Fund Advisory Council created in subsection (2) of this section. (b) "Opioid settlements" means the current and future settlements of opioid litigation with distributors Cardinal Health, McKesson and AmerisourceBergen, manufacturers Purdue Pharma, Inc., Janssen Pharmaceuticals/Johnson & Johnson, Allergan and Teva, and pharmacy chains CVS, Walgreens, Walmart, and Kroger, and other defendants of related opioid litigation. (c) "Abatement settlement funds" means those monies from the opioid settlements that are required to be spent on opioid abatement programs, goods and services. (d) "Nonabatement settlement funds" means those monies from the opioid settlements that are not required to be spent on opioid abatement programs, goods and services. (e) "Settlement funds" means both abatement settlement funds and nonabatement settlement funds. (f) When used as a singular noun, the term "fund" means the Opioid Settlement Fund created in Section 27-103-305. (2) There is created the Mississippi Opioid Settlement Fund Advisory Council to ensure that monies received and deposited into the * * * Opioid Settlement fund are allocated and spent in accordance with the terms of the opioid settlements, except as otherwise authorized in Section 27-103-305(4), and to ensure public involvement, accountability and transparency in allocating and accounting for the monies in the fund. (3) The purpose of the council is to review applications for grants funded by the proceeds of opioid settlements and to make recommendations to the Legislature for the appropriation of such proceeds to fund the grants. (4) The Legislature may accept or reject each of the council's grant recipient recommendations * * *, but shall not otherwise amend or modify and may determine which of the * * * recommended list of grant recipients or the amounts recommended for the recipients applicants shall receive settlement funds and the amount each applicant shall receive, if any, by separate line items in an appropriation bill. The council shall not exclude any qualified applicant from the list provided to the Legislature under subsection (11) of this section. (5) The council shall consist of the following voting members: (a) The Attorney General or a designee, who shall serve as chair of the council; (b) The State Health Officer or a designee, who shall serve as co-vice chair of the council; (c) The Executive Director of the State Department of Mental Health or a designee, who shall serve as co-vice chair of the council; (d) Two (2) members appointed by the Governor; (e) Two (2) members appointed by the Lieutenant Governor who are not members of the Legislature; (f) Two (2) members appointed by the Speaker of the House of Representatives who are not members of the Legislature; (g) A member appointed by the Chief Justice of the Mississippi Supreme Court; (h) A member to be appointed by the State Superintendent of Public Education; (i) A member of the Mississippi Municipal League to be appointed by the President of the League; (j) A member of the Mississippi Association of Supervisors to be appointed by the President of the Association; (k) A member of the Mississippi Association of Chiefs of Police to be appointed by the President of the Association; and (l) A member of the Mississippi Sheriffs' Association to be appointed by the President of the Association. (6) The following shall be nonvoting, advisory members of the council: (a) A member of the Mississippi Prosecutors Association to be appointed by the President of the Association; (b) A member of the Office of State Public Defender appointed by the State Public Defender; (c) Three (3) judges with experience related to opioid substance abuse and intervention to be appointed by the Chief Justice of the Mississippi Supreme Court; (d) A member representing the Mississippi Division of Medicaid to be appointed by the Executive Director of the Division; (e) A member representing the Mississippi Department of Human Services to be appointed by the Executive Director of the Department; (f) A member to be appointed by the Commissioner of the Department of Public Safety; (g) A member to be appointed by the Commissioner of Child Protection Services; (h) A member of the Mississippi State Medical Association to be appointed by the President of the Association; (i) A member of the Mississippi Society of Addiction Medicine to be appointed by the President of the Society; (j) A member representing the Community Mental Health Centers to be appointed by the Executive Director of the State Department of Mental Health; (k) A member representing the Community Health Centers to be appointed by the State Health Officer; (l) A member representing private sector substance abuse treatment facilities to be appointed by the State Health Officer; (m) A member representing a peer support recovery specialist organization to be appointed by the Executive Director of the State Department of Mental Health; (n) The Medical Director of the State Department of Mental Health or a designee; (o) A member from the State Intervention Courts Advisory Committee to be appointed by the Chief Justice of the Mississippi Supreme Court; (p) A member representing the Mississippi Ambulance Alliance to be appointed by the Board of the Alliance; (q) Two (2) members of the Senate to be appointed by the Lieutenant Governor; and (r) Two (2) members of the House to be appointed by the Speaker of the House. (7) Voting members may request to add additional nonvoting, advisory members with expertise in opioid prevention, treatment and recovery. Such members may be added by a majority vote of the voting members. (8) (a) Members of the council pursuant to subsection (5)(a) through (c) of this section shall serve permanently during their tenure in their respective offices. (b) Members appointed pursuant to subsection (5)(d) through (f) of this section shall serve an initial term ending on December 31, 2027. After the expiration of the initial term, each such appointment shall be for a term of four (4) years from the expiration date of the previous term. (c) All other members of the council shall serve for a three-year term. (d) The respective appointing authority may remove a member for failure to attend at least one-half (1/2) of the scheduled meetings in any one-year period or for other good cause. (e) If a vacancy on the council occurs, the respective appointing authority shall fill the vacancy for the remainder of the unexpired term. Notwithstanding the expiration of a member's term, each member shall serve until a successor is duly appointed. (f) Members of the council shall be appointed within sixty (60) days after effective date of this act. The chair of the council shall call the first meeting of the council no later than ninety (90) days after the effective date of this act. (g) A majority of the voting members of the council shall constitute a quorum. A voting member of the council who recuses under subsection (17) of this section shall not be considered for the purposes of quorum for the votes for which the voting member of the council is recused. (9) Members of the council shall serve without compensation but may be reimbursed for actual and necessary expenses incurred in the performance of their duties, in accordance with Section 25-3-41. All such expenses shall be paid from the Opioid Settlement Fund and not from the State General Fund. (10) The council shall be housed within the Office of the Attorney General. The Attorney General shall provide the staff and facilities necessary to assist the council in the performance of its duties. (11) The council shall: (a) Prepare and publish a list of priorities to guide the selection of grant recipients at its first meeting of each calendar year * * *;. In developing these priorities, the council shall align, to the greatest extent practicable and consistent with state law and the opioid settlements, with the following strategy pillars for addressing opioid use disorder and overdose: (i) Prevention and early intervention; (ii) Treatment and recovery access; (iii) Accountability and transparency; (iv) Community-based solutions; (v) Reducing overdose and harm; (vi) Enforcement; (vii) Workforce and integration; and (viii) Data-driven policy; (b) Develop and publish criteria and procedures for the submission of grant applications for funds derived from opioid settlements; (c) Review and evaluate applications based on established criteria to determine the most effective and impactful use of funds in addressing opioid-related issues, including prevention, treatment and recovery efforts; (d) Ensure that all applications are reviewed and evaluated for compliance with the terms of the opioid settlement agreements; (e) Prepare a prioritized list of recommended grant recipients, which includes a description of how each recommended recipient complies with the council's published priorities; and (f) Upon approval of the total list of recommended grant recipients by the council, submit the list of recommended grant recipients * * * shall be submitted to the Lieutenant Governor, Speaker of the House, Chairs of the Senate and House Appropriations Committees, Chairs of the Senate Public Health and Welfare and House Public Health and Human Services Committees, and Chairs of the Senate and House Judiciary A Committees no later than thirty (30) days before the first day of the Regular Legislative Session. (12) The council shall not exclude any qualified applicant from the list provided to the Legislature under subsection (11) of this section. (13) The council shall ensure that all funds appropriated comply with the terms and conditions of the respective settlement agreements and state laws governing the use of such funds, except as otherwise authorized in Section 27-103-305(4). (14) The council shall adopt necessary rules, regulations and procedures to effectuate the purposes of this act and to ensure that a grant applicant expends all grant funds in a manner consistent with the terms of the opioid settlement agreements. (15) (a) In advance of the 2026-2027 grant cycle, the council, by and through the Office of the Attorney General, shall, using nonabatement settlement funds as appropriated by the Legislature and acting in compliance with state procurement laws, solicit and enter into a contract with a qualified third party, on behalf of the council, to provide the following services: (i) Creation and administration of an online platform for the submission of grant proposals; (ii) Technical assistance to grant applicants in submitting such proposals; (iii) Initial independent assessment, scoring and categorization of proposals using standardized criteria; (iv) Grant administration for those line-item appropriations in the Attorney General appropriation bill, including compliance, payment requests, approval of disbursal of funds, reporting and closeout; and (v) Outcome monitoring, including the review of quarterly reports and other necessary data, and the reporting of such data to the council and to the public on the Attorney General's website, with such data on the website being in the form of a data dashboard. (b) The Office of the Attorney General shall complete the solicitation process and enter into a contract with a qualified third party in accordance with state procurement laws not later than sixty (60) days after the effective date of this act. (c) Nothing in this subsection (15) shall be construed as removing any authority of the council to make its annual funding recommendations to the Legislature, or to limit the authority of the Legislature to determine which applicants receive settlement funds and the amount each applicant receives. ( * * *1516) The council shall terminate when all * * * opioid settlement funds being paid pursuant to the opioid settlements have been received and disbursed, unless the Attorney General certifies that additional funds are anticipated within one (1) year. (17) A member of the council shall not, directly or indirectly, influence, seek to influence, vote on, or participate in the recommendation of grant recipients or the recommendation to allocate funds for the benefit of any organization with which the member has an affiliation. A member of the council shall recuse from the discussion, ranking, or vote upon any such matter. ( * * *1618) (a) By * * * December November 1 of each year, the council shall submit an annual report to the * * * Legislature Lieutenant Governor, the Speaker of the House, the Chair of the Senate Appropriations Committee, the Chair of the appropriate House Appropriations Committee, the Chair of the Senate Judiciary, Division A Committee, the Chair of the House Judiciary A Committee, the Legislative Budget Office, and the Governor summarizing the distribution of funds, outcomes of funded programs, and any recommendations for improving the process of appropriation and administration of settlement funds. The report shall also include, as of the date of the report: (i) The total amount of settlement funds deposited to the fund; (ii) The balance of the fund; and (iii) The amount of abatement and nonabatement settlement funds available to be disbursed by the Legislature. (b) The report shall be made publicly available on the Attorney General's website. (c) No later than forty-five (45) days after sine die of any regular session or any extraordinary session of the Legislature in which settlement funds are appropriated, the Legislative Budget Office shall report, in summary, to the Attorney General the amount of any abatement and nonabatement settlement funds, if any, that were appropriated from the fund. SECTION 2. Section 27-103-305, Mississippi Code of 1972, is reenacted as follows: 27-103-305. (1) There is created in the State Treasury a special fund to be known as the Opioid Settlement Fund. The fund shall consist of the monies received by the Attorney General on behalf of the State of Mississippi from settlements of opioid litigation with distributors Cardinal Health, McKesson and AmerisourceBergen, manufacturers Purdue Pharma, Inc., Janssen Pharmaceuticals/Johnson & Johnson, Allergan and Teva, and pharmacy chains CVS, Walgreens, Walmart, and Kroger, and other defendants of related opioid litigation. The Attorney General shall deposit all of such monies into the fund after attorney fees and expenses have been paid. (2) Abatement settlement funds shall be disbursed upon appropriation by the Legislature in accordance with the requirements of Section 41-153-1. (3) For abatement settlement funds, the Attorney General shall oversee the expenditure of such monies to ensure compliance with the opioid settlements. (4) Nonabatement settlement funds shall be disbursed upon appropriation by the Legislature without any recommendations by the council regarding the use of those monies. (5) Unexpended amounts remaining in the fund at the end of a fiscal year shall not lapse into the State General Fund, and any interest earned or investment earnings on amounts in the fund shall be deposited into such fund. SECTION 3. Upon the effective date of this act, the State Fiscal Officer, in conjunction with the State Treasurer, shall transfer the balance of the funds in Fund No. 3308900000 to the new Opioid Settlement Fund created pursuant to the reenacted Section 27-103-305. Upon completion of the transfer under this section, the State Treasurer or the Attorney General shall close Fund No. 3308900000. SECTION 4. This act shall take effect and be in force from and after its passage.
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