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Oklahoma Legislature· HB 4261Second Reading referred to Rules

An act relating to state government, the official text

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1                   STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 4261   By: Kannady

4

5

6

7                   AS INTRODUCED

8   An Act relating to state government; amending 74 O.S.

    2021, Section 30.5, as last amended by Section 1,

9   Chapter 351, O.S.L. 2025 (74 O.S. Supp. 2025, Section

    30.5), which relates to definitions used in the

10  Political Subdivisions Opioid Abatement Grants Act;

    providing definition; amending 74 O.S. 2021, Section

11  30.7, which relates to the Oklahoma Opioid Abatement

    Board; directing the Attorney General to serve as

12  chair of Board; replacing the term eligible

    participants with grantees; directing the Board to

13  develop an opioid grant award contract; directing

    Board to develop grounds and procedures for

14  terminating contract; permitting the Attorney General

    to propose adequate remedies for noncompliant

15  grantees; amending 74 O.S. 2021, Section 30.8, as

    last amended by Section 3, Chapter 351, O.S.L. 2025

16  (74 O.S. Supp. 2025, Section 30.8), which relates to

    disbursement of grants; requiring grantees to

17  maintain and submit supporting documentation;

    requiring payments to third parties be made on

18  reimbursement basis or after receipt of goods or

    services; providing an appeals process for eligible

19  participants after grant award decision of the Board;

    limiting appeals to application; clarifying partial

20  funding award is not a denial; permitting opportunity

    to appear before the Board; permitting the Board to

21  consider written submissions and ask for further

    information; allowing the Board to limit the amount

22  of time for considering an appeal; clarifying denial

    and termination do not constitute an individual

23  proceeding; establishing that appeal decisions of the

    Board are final and non-reviewable; providing for

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    Req. No. 14393                                         Page 1
1   codification; providing an effective date; and

    declaring an emergency.

2

3

4 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

5   SECTION 1.      AMENDATORY  74 O.S. 2021, Section 30.5, as

6 last amended by Section 1, Chapter 351, O.S.L. 2025 (74 O.S. Supp.

7 2025, Section 30.5), is amended to read as follows:

8   Section 30.5. As used in the Political Subdivisions Opioid

9 Abatement Grants Act:

10  1. "Approved purpose" and "approved purposes" mean evidence-

11 based, forward-looking strategies, programming and services used to:

12  a. expand the availability of treatment for individuals

13              affected by opioid use disorders, co-occurring

14              substance use disorders and mental health issues,

15  b. develop, promote and provide evidence-based opioid use

16              prevention strategies,

17  c. provide opioid use disorder and co-occurring substance

18              use disorder avoidance and awareness education,

19  d. decrease the oversupply of licit and illicit opioids,

20  e. support recovery from addiction services performed by

21              qualified and appropriately licensed providers,

22  f. treat opioid use, abuse and disorders including early

23              intervention screening, counseling and support,

24

    Req. No. 14393                                                 Page 2
1   g. support individuals in treatment and recovery from

2   opioid use, abuse and disorder,

3   h. provide programs or services to connect individuals

4   with opioid use, abuse or disorder, or who are at risk

5   of developing opioid use disorder, co-occurring

6   substance use disorder and mental health issues, with

7   treatment and counseling programs and services,

8   i. address the needs of individuals who are involved, or

9   who are at risk of becoming involved, in the criminal

10  justice system due to opioid use, abuse or disorder

11  through programs or services in municipal and county

12  criminal judicial systems including prearrest and

13  postarrest diversion programs, pretrial services and

14  drug or recovery courts,

15  j. address the needs of pregnant or parenting women with

16  opioid use, abuse or disorder and their families,

17  k. address the needs of parents and caregivers caring for

18  babies with neonatal abstinence syndrome,

19  l. support efforts to prevent overprescribing and ensure

20  appropriate prescribing and dispensing of opioids,

21  m. support efforts to discourage or prevent misuse of

22  opioids including the oversupply of licit and illicit

23  opioids,

24

    Req. No. 14393                                     Page 3
1   n. support efforts to prevent or reduce overdose deaths

2   or other opioid-related harms including through

3   increased availability and distribution of naloxone

4   and other drugs that treat overdoses for use by first

5   responders, persons who have experienced an overdose

6   event, families, schools, community-based service

7   providers, social workers and other members of the

8   public,

9   o. reimburse or fund law enforcement and emergency

10  responder expenditures relating to the opioid epidemic

11  including costs of responding to emergency medical or

12  police calls for service, equipment, treatment or

13  response alternatives, mental health response training

14  and training for law enforcement and emergency

15  responders as to appropriate practices and precautions

16  when dealing with opioids or individuals who are at

17  risk of opioid overdose or death,

18  p. reimburse attorney fees and allowable expenses

19  directly related to opioid litigation incurred as part

20  of legal services agreements entered into before May

21  21, 2020,

22  q. support efforts to provide leadership, planning and

23  coordination to abate the opioid epidemic through

24  activities, programs or strategies for prevention and

    Req. No. 14393                                      Page 4
1   recovery models including regional intergovernmental

2   efforts and not-for-profit agency support,

3   r. support education of youths regarding the dangers of

4   opioid use, abuse and addiction,

5   s. fund training relative to any approved purpose,

6   t. monitor, surveil and evaluate opioid use, abuse or

7   disorder,

8   u. provide educational and health care services related

9   to nonopioid treatment alternatives, or

10  v. provide opioid abatement as identified by the Oklahoma

11  Opioid Abatement Board as consistent with the purpose

12  of the Political Subdivisions Opioid Abatement Grants

13  Act.

14 Provided that, such strategies, programming and services occurred on

15 or after January 1, 2015.

16  Approved purpose also includes any approved uses as authorized

17 by opioid-related settlement agreements in which the State of

18 Oklahoma is a litigant or participant;

19  2. "Board" means the Oklahoma Opioid Abatement Board;

20  3. "Eligible participant" means any political subdivision

21 impacted by the opioid crisis;

22  4. "Grantee" means an eligible participant that has been

23 awarded an opioid grant award by the Board pursuant to the

24 provisions of this act;

    Req. No. 14393                                                Page 5
1   5. "Nonapproved purpose" and "nonapproved purposes" mean

2 strategies, programming and services not falling within the

3 definition of approved purpose or approved purposes as defined in

4 this section, or any use that the Board determines to be unrelated

5 to or inconsistent with opioid abatement;

6   5. 6. "Opioid funds" means all monetary amounts obtained

7 through a settlement or judgment by the Attorney General on behalf

8 of this state related to opioid litigation involving pharmaceutical

9 supply chain participants including the Purdue Political Subdivision

10 Fund but excluding all other funds received pursuant to the Purdue

11 Settlement Agreement;

12  6. 7. "Opioid grant awards" means grants funded from the

13 Oklahoma Opioid Abatement Revolving Fund, awarded pursuant to the

14 provisions of the Political Subdivisions Opioid Abatement Grants Act

15 this act;

16  7. 8. "Pharmaceutical supply chain" means the process and

17 channels through which controlled substances are manufactured,

18 marketed, promoted, distributed or dispensed;

19  8. 9. "Pharmaceutical supply chain participant" means any

20 entity that engages in or has engaged in the manufacture, marketing,

21 promotion, distribution or dispensing of an opioid analgesic;

22  9. 10. "Political subdivision" and "political subdivisions"

23 have the same meaning as provided in subparagraphs a, b, c and d of

24 paragraph 11 12 of Section 152 of Title 51 of the Oklahoma Statutes.

    Req. No. 14393                                                 Page 6
1 Political subdivision also means the board of regents or board of

2 trustees of a state educational institution which is a member of The

3 Oklahoma State System of Higher Education;

4   10. 11. "Purdue Political Subdivision Fund" means the Twelve

5 Million Five Hundred Thousand Dollars ($12,500,000.00) of funds

6 received from the Purdue Settlement Agreement designed for

7 distribution to political subdivisions which have executed a release

8 of legal claims as required by the Purdue Settlement Agreement; and

9   11. 12. "Purdue Settlement Agreement" means the settlement

10 agreement entered into by this state and Purdue Pharma L.P., Purdue

11 Pharma, Inc. and the Purdue Frederick Company on March 26, 2019, and

12 approved by the Court on April 2, 2019.

13  SECTION 2.      AMENDATORY  74 O.S. 2021, Section 30.7, is

14 amended to read as follows:

15  Section 30.7. A. There is hereby created the Oklahoma Opioid

16 Abatement Board which shall consist of the following nine (9)

17 members:

18  1. One member appointed by the Governor;

19  2. One member appointed by the State Auditor and Inspector;

20  3. One member appointed by the State Treasurer;

21  4. The Attorney General of the State of Oklahoma, or his or her

22 designee, who shall serve as chair and an ex officio member of the

23 Board but who shall be entitled to vote only in case of a tie vote;

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    Req. No. 14393                                                 Page 7
1   5. One member appointed by the State Superintendent of Public

2 Instruction;

3   6. Two members appointed by the Speaker of the House of

4 Representatives; and

5   7. Two members appointed by the President Pro Tempore of the

6 Senate.

7   B. Each member shall serve at the pleasure of his or her

8 appointing authority and may be removed or replaced without cause.

9 Any member of the Board shall be prohibited from voting on any issue

10 in which the member has a direct or indirect financial interest.

11  C. The Board shall have the following powers and duties:

12  1. Develop and implement procedures for the disbursement of

13 opioid grant awards to eligible participants grantees, to be used by

14 eligible participants grantees to fund and reimburse costs related

15 to approved purposes. The Board may elect to disburse opioid grant

16 awards to eligible participants grantees in multiple allocations;

17  2. Develop and implement opioid grant application, submission

18 and evaluation procedures as required to implement the provisions of

19 this act;

20  3. Develop and implement an opioid grant award contract to

21 establish the duties and responsibilities of the eligible

22 participants in exchange for receiving opioid abatement grant

23 awards;

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    Req. No. 14393                                                Page 8
1   4. Hear appeals process for eligible participants to contest

2 from grantees contesting opioid grant application denials and

3 denials of specific fund use requests contained in submitted

4 applications;

5   4. 5. Maintain oversight over the expenditure of opioid grant

6 awards to ensure grant proceeds are used exclusively for approved

7 purposes; and

8   5. 6. Suspend allocations of opioid grant awards to eligible

9 participants found by the Board to be out of compliance with Board

10 procedures or to have utilized such awards for nonapproved purposes;

11 provided that the Board shall may resume such allocations once the

12 Board has determined the eligible participant has adequately

13 remedied the cause of such suspension; and

14  7. Develop grounds and procedures for terminating opioid grant

15 award contracts.

16  D. No opioid grant awarded pursuant to the provisions of this

17 act shall be utilized or expended by a political subdivision, unless

18 such utilization or expenditure is memorialized in a resolution or

19 equivalent government action adopted by the political subdivision

20 and submitted to the Board.

21  E. No opioid grant awarded pursuant to the provisions of this

22 act shall include funds from the Purdue Political Subdivisions Fund

23 unless the Board shall have first received a release of claims as

24

    Req. No. 14393                                               Page 9
1 required by the Purdue Settlement Agreement on a form approved by

2 the Attorney General.

3   F. The Office of the Attorney General shall provide staff and

4 administrative support to the Oklahoma Opioid Abatement Board.

5   G. The Office of the Attorney General shall promulgate rules

6 necessary to implement the provisions of this act; provided that the

7 Office of the Attorney General shall only promulgate such rules as

8 requested or approved by the Board.

9   H. The Attorney General may propose adequate remedies for

10 noncompliant grantees for presentation and approval by the Board.

11  SECTION 3.      AMENDATORY      74 O.S. 2021, Section 30.8, as

12 last amended by Section 3, Chapter 351, O.S.L. 2025 (74 O.S. Supp.

13 2025, Section 30.8), is amended to read as follows:

14  Section 30.8. A. 1. The Oklahoma Opioid Abatement Board shall

15 conduct one or more disbursements of opioid grant awards to

16 participating eligible participants. Such opioid grant awards shall

17 be allocated amongst the different participating eligible

18 participants based on the following criteria:

19  a. the number of people per capita suffering from opioid

20              use disorder in the participating political

21              subdivision, or in the absence of such information,

22              the opioid prescription rate in the political

23              subdivision compared to the national average opioid

24              prescription rate,

    Req. No. 14393                                                Page 10
1   b. the number of opioid overdose deaths in the

2   participating political subdivision,

3   c. the amount of opioids distributed within the

4   participating political subdivision,

5   d. the amount of attorney fees and allowable expenses

6   associated with legal services agreements directly

7   related to opioid litigation incurred as part of legal

8   services agreements entered into before May 21, 2020,

9   or

10  e. any other criteria established by the Board.

11  2. Grant awards shall be subject to legal services agreements

12 entered into by eligible participants grantees.

13  3. Opioid grant awards as provided for in this subsection shall

14 be listed in an opioid grant award distribution table reviewed and

15 approved by the Board to ensure that such awards adhere to the

16 criteria adopted by the Board.

17  B. Funds accrued in the Oklahoma Opioid Abatement Revolving

18 Fund shall be available to the Board to award as grants to eligible

19 participants grantees for approved purposes.

20  C. In the event an eligible participant a grantee merges,

21 dissolves or ceases to exist, any remaining allocations of an

22 awarded opioid grant award in excess of Five Hundred Dollars

23 ($500.00) shall be reallocated equitably based on the composition of

24

    Req. No. 14393                                                Page 11
1 the successor eligible participant grantee or the successor eligible

2 participants grantees.

3   D. Grantees are required to maintain and submit supporting

4 documentation for all purchases, expenditures, and activities.

5   E. Payments from grantees to third parties shall be made on

6 either a reimbursement basis or after the grantee receives goods or

7 services and has determined them to be satisfactory.

8   SECTION 4.      NEW LAW  A new section of law to be codified

9 in the Oklahoma Statutes as Section 30.9 of Title 74, unless there

10 is created a duplication in numbering, reads as follows:

11  A. An eligible participant wishing to appeal a grant award

12 decision of the Board may submit a written appeal to the Board

13 within twenty (20) days of notification of a grant award decision.

14  B. Appeals shall be limited to the application as submitted to

15 the Board and may only address the reasons for denial provided.

16 Appeals may not propose changes to grant activities or expenditures

17 in the application.

18  C. The Board's decision to award only partial funding of a

19 project is deemed to not be a denial.

20  D. An appealing eligible participant may be granted an

21 opportunity to appear before the Board.

22  E. In deciding whether to sustain or overrule a denial, the

23 Board may consider the written submission and ask questions of or

24

    Req. No. 14393                                                 Page 12
1 for additional information from the eligible participant or the

2 Attorney General's staff.

3   F. The Board may limit the amount of time for considering an

4 appeal. Once a hearing is concluded, the Board may amend or affirm

5 its original decision.

6   G. Neither appeals from an application denying an application

7 for an opioid abatement grant award nor a termination of an opioid

8 abatement award contract constitute an individual proceeding as

9 defined in paragraph 9 of Section 250.3 of Title 75 of the Oklahoma

10 Statutes, and are not subject to Article II of the Administrative

11 Procedures Act.

12  H. Any appeal decision of the Board is final and non-reviewable

13 under Title 12 or Section 318 of Title 75 of the Oklahoma Statutes.

14  SECTION 5. This act shall become effective July 1, 2026.

15  SECTION 6. It being immediately necessary for the preservation

16 of the public peace, health or safety, an emergency is hereby

17 declared to exist, by reason whereof this act shall take effect and

18 be in full force from and after its passage and approval.

19

20  60-2-14393      MJ       01/05/26

21

22

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    Req. No. 14393                                                Page 13
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