1| STATE OF OKLAHOMA |
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2| 2nd Session of the 60th Legislature (2026) |
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3|HOUSE BILL 4261 By: Kannady |
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4| |
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5| |
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6| |
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7| AS INTRODUCED |
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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 |
24| codification; providing an effective date; and |
| declaring an emergency. |
Req. No. 14393 Page 1
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2| |
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3|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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4| SECTION 1. AMENDATORY 74 O.S. 2021, Section 30.5, as |
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5|last amended by Section 1, Chapter 351, O.S.L. 2025 (74 O.S. Supp. |
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6|2025, Section 30.5), is amended to read as follows: |
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7| Section 30.5. As used in the Political Subdivisions Opioid |
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8|Abatement Grants Act: |
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9| 1. "Approved purpose" and "approved purposes" mean |
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10|evidence-based, forward-looking strategies, programming and services |
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11|used to: |
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12| a. expand the availability of treatment for individuals |
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13| affected by opioid use disorders, co-occurring |
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14| substance use disorders and mental health issues, |
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15| b. develop, promote and provide evidence-based opioid |
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16| use prevention strategies, |
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17| c. provide opioid use disorder and co-occurring |
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18| substance use disorder avoidance and awareness |
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19| education, |
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20| d. decrease the oversupply of licit and illicit opioids, |
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21| |
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22| e. support recovery from addiction services performed by |
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23| qualified and appropriately licensed providers, |
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Req. No. 14393 Page 2
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1| f. treat opioid use, abuse and disorders including early |
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2| intervention screening, counseling and support, |
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3| g. support individuals in treatment and recovery from |
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4| opioid use, abuse and disorder, |
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5| h. provide programs or services to connect individuals |
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6| with opioid use, abuse or disorder, or who are at risk |
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7| of developing opioid use disorder, co-occurring |
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8| substance use disorder and mental health issues, with |
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9| treatment and counseling programs and services, |
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10| i. address the needs of individuals who are involved, or |
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11| who are at risk of becoming involved, in the criminal |
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12| justice system due to opioid use, abuse or disorder |
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13| through programs or services in municipal and county |
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14| criminal judicial systems including prearrest and |
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15| postarrest diversion programs, pretrial services and |
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16| drug or recovery courts, |
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17| j. address the needs of pregnant or parenting women with |
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18| opioid use, abuse or disorder and their families, |
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19| k. address the needs of parents and caregivers caring |
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20| for babies with neonatal abstinence syndrome, |
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21| l. support efforts to prevent overprescribing and ensure |
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22| appropriate prescribing and dispensing of opioids, |
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23| m. support efforts to discourage or prevent misuse of |
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Req. No. 14393 Page 3
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1| opioids including the oversupply of licit and illicit |
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2| opioids, |
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3| n. support efforts to prevent or reduce overdose deaths |
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4| or other opioid-related harms including through |
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5| increased availability and distribution of naloxone |
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6| and other drugs that treat overdoses for use by first |
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7| responders, persons who have experienced an overdose |
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8| event, families, schools, community-based service |
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9| providers, social workers and other members of the |
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10| public, |
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11| o. reimburse or fund law enforcement and emergency |
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12| responder expenditures relating to the opioid epidemic |
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13| including costs of responding to emergency medical or |
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14| police calls for service, equipment, treatment or |
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15| response alternatives, mental health response training |
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16| and training for law enforcement and emergency |
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17| responders as to appropriate practices and precautions |
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18| when dealing with opioids or individuals who are at |
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19| risk of opioid overdose or death, |
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20| p. reimburse attorney fees and allowable expenses |
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21| directly related to opioid litigation incurred as part |
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22| of legal services agreements entered into before May |
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23| 21, 2020, |
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Req. No. 14393 Page 4
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1| q. support efforts to provide leadership, planning and |
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2| coordination to abate the opioid epidemic through |
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3| activities, programs or strategies for prevention and |
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4| recovery models including regional intergovernmental |
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5| efforts and not-for-profit agency support, |
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6| r. support education of youths regarding the dangers of |
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7| opioid use, abuse and addiction, |
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8| s. fund training relative to any approved purpose, |
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9| t. monitor, surveil and evaluate opioid use, abuse or |
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10| disorder, |
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11| u. provide educational and health care services related |
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12| to nonopioid treatment alternatives, or |
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13| v. provide opioid abatement as identified by the |
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14| Oklahoma Opioid Abatement Board as consistent with the |
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15| purpose of the Political Subdivisions Opioid Abatement |
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16| Grants Act. |
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17|Provided that, such strategies, programming and services occurred on |
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18|or after January 1, 2015. |
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19| Approved purpose also includes any approved uses as authorized |
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20|by opioid-related settlement agreements in which the State of |
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21|Oklahoma is a litigant or participant; |
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22| 2. "Board" means the Oklahoma Opioid Abatement Board; |
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23| 3. "Eligible participant" means any political subdivision |
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24|impacted by the opioid crisis; |
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1| 4. "Grantee" means an eligible participant that has been |
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2|awarded an opioid grant award by the Board pursuant to the |
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3|provisions of this act; |
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4| 5. "Nonapproved purpose" and "nonapproved purposes" mean |
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5|strategies, programming and services not falling within the |
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6|definition of approved purpose or approved purposes as defined in |
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7|this section, or any use that the Board determines to be unrelated |
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8|to or inconsistent with opioid abatement; |
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9| 5. 6. "Opioid funds" means all monetary amounts obtained |
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10|through a settlement or judgment by the Attorney General on behalf |
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11|of this state related to opioid litigation involving pharmaceutical |
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12|supply chain participants including the Purdue Political Subdivision |
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13|Fund but excluding all other funds received pursuant to the Purdue |
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14|Settlement Agreement; |
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15| 6. 7. "Opioid grant awards" means grants funded from the |
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16|Oklahoma Opioid Abatement Revolving Fund, awarded pursuant to the |
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17|provisions of the Political Subdivisions Opioid Abatement Grants Act |
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18|this act; |
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19| 7. 8. "Pharmaceutical supply chain" means the process and |
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20|channels through which controlled substances are manufactured, |
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21|marketed, promoted, distributed or dispensed; |
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22| 8. 9. "Pharmaceutical supply chain participant" means any |
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23|entity that engages in or has engaged in the manufacture, marketing, |
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24|promotion, distribution or dispensing of an opioid analgesic; |
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Req. No. 14393 Page 6
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1| 9. 10. "Political subdivision" and "political subdivisions" |
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2|have the same meaning as provided in subparagraphs a, b, c and d of |
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3|paragraph 11 12 of Section 152 of Title 51 of the Oklahoma Statutes. |
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4| Political subdivision also means the board of regents or board of |
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5|trustees of a state educational institution which is a member of The |
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6|Oklahoma State System of Higher Education; |
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7| 10. 11. "Purdue Political Subdivision Fund" means the Twelve |
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8|Million Five Hundred Thousand Dollars ($12,500,000.00) of funds |
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9|received from the Purdue Settlement Agreement designed for |
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10|distribution to political subdivisions which have executed a release |
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11|of legal claims as required by the Purdue Settlement Agreement; and |
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12| 11. 12. "Purdue Settlement Agreement" means the settlement |
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13|agreement entered into by this state and Purdue Pharma L.P., Purdue |
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14|Pharma, Inc. and the Purdue Frederick Company on March 26, 2019, and |
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15|approved by the Court on April 2, 2019. |
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16| SECTION 2. AMENDATORY 74 O.S. 2021, Section 30.7, is |
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17|amended to read as follows: |
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18| Section 30.7. A. There is hereby created the Oklahoma Opioid |
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19|Abatement Board which shall consist of the following nine (9) |
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20|members: |
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21| 1. One member appointed by the Governor; |
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22| 2. One member appointed by the State Auditor and Inspector; |
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23| 3. One member appointed by the State Treasurer; |
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24| |
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Req. No. 14393 Page 7
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1| 4. The Attorney General of the State of Oklahoma, or his or her |
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2|designee, who shall serve as chair and an ex officio member of the |
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3|Board but who shall be entitled to vote only in case of a tie vote; |
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4| 5. One member appointed by the State Superintendent of Public |
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5|Instruction; |
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6| 6. Two members appointed by the Speaker of the House of |
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7|Representatives; and |
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8| 7. Two members appointed by the President Pro Tempore of the |
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9|Senate. |
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10| B. Each member shall serve at the pleasure of his or her |
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11|appointing authority and may be removed or replaced without cause. |
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12|Any member of the Board shall be prohibited from voting on any issue |
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13|in which the member has a direct or indirect financial interest. |
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14| C. The Board shall have the following powers and duties: |
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15| 1. Develop and implement procedures for the disbursement of |
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16|opioid grant awards to eligible participants grantees, to be used by |
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17|eligible participants grantees to fund and reimburse costs related |
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18|to approved purposes. The Board may elect to disburse opioid grant |
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19|awards to eligible participants grantees in multiple allocations; |
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20| 2. Develop and implement opioid grant application, submission |
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21|and evaluation procedures as required to implement the provisions of |
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22|this act; |
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23| |
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Req. No. 14393 Page 8
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1| 3. Develop and implement an opioid grant award contract to |
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2|establish the duties and responsibilities of the eligible |
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3|participants in exchange for receiving opioid abatement grant |
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4|awards; |
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5| 4. Hear appeals process for eligible participants to contest |
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6|from grantees contesting opioid grant application denials and |
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7|denials of specific fund use requests contained in submitted |
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8|applications; |
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9| 4. 5. Maintain oversight over the expenditure of opioid grant |
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10|awards to ensure grant proceeds are used exclusively for approved |
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11|purposes; and |
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12| 5. 6. Suspend allocations of opioid grant awards to eligible |
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13|participants found by the Board to be out of compliance with Board |
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14|procedures or to have utilized such awards for nonapproved purposes; |
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15|provided that the Board shall may resume such allocations once the |
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16|Board has determined the eligible participant has adequately |
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17|remedied the cause of such suspension; and |
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18| 7. Develop grounds and procedures for terminating opioid grant |
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19|award contracts. |
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20| D. No opioid grant awarded pursuant to the provisions of this |
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21|act shall be utilized or expended by a political subdivision, unless |
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22|such utilization or expenditure is memorialized in a resolution or |
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23|equivalent government action adopted by the political subdivision |
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24|and submitted to the Board. |
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Req. No. 14393 Page 9
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1| E. No opioid grant awarded pursuant to the provisions of this |
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2|act shall include funds from the Purdue Political Subdivisions Fund |
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3|unless the Board shall have first received a release of claims as |
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4|required by the Purdue Settlement Agreement on a form approved by |
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5|the Attorney General. |
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6| F. The Office of the Attorney General shall provide staff and |
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7|administrative support to the Oklahoma Opioid Abatement Board. |
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8| G. The Office of the Attorney General shall promulgate rules |
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9|necessary to implement the provisions of this act; provided that the |
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10|Office of the Attorney General shall only promulgate such rules as |
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11|requested or approved by the Board. |
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12| H. The Attorney General may propose adequate remedies for |
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13|noncompliant grantees for presentation and approval by the Board. |
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14| SECTION 3. AMENDATORY 74 O.S. 2021, Section 30.8, as |
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15|last amended by Section 3, Chapter 351, O.S.L. 2025 (74 O.S. Supp. |
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16|2025, Section 30.8), is amended to read as follows: |
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17| Section 30.8. A. 1. The Oklahoma Opioid Abatement Board shall |
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18|conduct one or more disbursements of opioid grant awards to |
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19|participating eligible participants. Such opioid grant awards shall |
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20|be allocated amongst the different participating eligible |
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21|participants based on the following criteria: |
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22| a. the number of people per capita suffering from opioid |
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23| use disorder in the participating political |
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24| subdivision, or in the absence of such information, |
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Req. No. 14393 Page 10
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1| the opioid prescription rate in the political |
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2| subdivision compared to the national average opioid |
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3| prescription rate, |
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4| b. the number of opioid overdose deaths in the |
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5| participating political subdivision, |
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6| c. the amount of opioids distributed within the |
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7| participating political subdivision, |
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8| d. the amount of attorney fees and allowable expenses |
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9| associated with legal services agreements directly |
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10| related to opioid litigation incurred as part of legal |
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11| services agreements entered into before May 21, 2020, |
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12| or |
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13| e. any other criteria established by the Board. |
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14| 2. Grant awards shall be subject to legal services agreements |
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15|entered into by eligible participants grantees. |
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16| 3. Opioid grant awards as provided for in this subsection shall |
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17|be listed in an opioid grant award distribution table reviewed and |
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18|approved by the Board to ensure that such awards adhere to the |
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19|criteria adopted by the Board. |
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20| B. Funds accrued in the Oklahoma Opioid Abatement Revolving |
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21|Fund shall be available to the Board to award as grants to eligible |
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22|participants grantees for approved purposes. |
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23| C. In the event an eligible participant a grantee merges, |
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24|dissolves or ceases to exist, any remaining allocations of an |
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Req. No. 14393 Page 11
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1|awarded opioid grant award in excess of Five Hundred Dollars |
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2|($500.00) shall be reallocated equitably based on the composition of |
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3|the successor eligible participant grantee or the successor eligible |
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4|participants grantees. |
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5| D. Grantees are required to maintain and submit supporting |
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6|documentation for all purchases, expenditures, and activities. |
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7| E. Payments from grantees to third parties shall be made on |
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8|either a reimbursement basis or after the grantee receives goods or |
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9|services and has determined them to be satisfactory. |
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10| SECTION 4. NEW LAW A new section of law to be codified |
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11|in the Oklahoma Statutes as Section 30.9 of Title 74, unless there |
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12|is created a duplication in numbering, reads as follows: |
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13| A. An eligible participant wishing to appeal a grant award |
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14|decision of the Board may submit a written appeal to the Board |
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15|within twenty (20) days of notification of a grant award decision. |
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16| B. Appeals shall be limited to the application as submitted to |
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17|the Board and may only address the reasons for denial provided. |
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18|Appeals may not propose changes to grant activities or expenditures |
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19|in the application. |
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20| C. The Board's decision to award only partial funding of a |
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21|project is deemed to not be a denial. |
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22| D. An appealing eligible participant may be granted an |
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23|opportunity to appear before the Board. |
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24| |
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Req. No. 14393 Page 12
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1| E. In deciding whether to sustain or overrule a denial, the |
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2|Board may consider the written submission and ask questions of or |
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3|for additional information from the eligible participant or the |
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4|Attorney General's staff. |
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5| F. The Board may limit the amount of time for considering an |
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6|appeal. Once a hearing is concluded, the Board may amend or affirm |
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7|its original decision. |
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8| G. Neither appeals from an application denying an application |
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9|for an opioid abatement grant award nor a termination of an opioid |
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10|abatement award contract constitute an individual proceeding as |
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11|defined in paragraph 9 of Section 250.3 of Title 75 of the Oklahoma |
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12|Statutes, and are not subject to Article II of the Administrative |
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13|Procedures Act. |
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14| H. Any appeal decision of the Board is final and non-reviewable |
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15|under Title 12 or Section 318 of Title 75 of the Oklahoma Statutes. |
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16| SECTION 5. This act shall become effective July 1, 2026. |
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17| SECTION 6. It being immediately necessary for the preservation |
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18|of the public peace, health or safety, an emergency is hereby |
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19|declared to exist, by reason whereof this act shall take effect and |
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20|be in full force from and after its passage and approval. |
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22| 60-2-14393 MJ 01/05/26 |
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Req. No. 14393 Page 13
