Read the full stored bill text
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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
CONFERENCE COMMITTEE
SUBSTITUTE
FOR ENGROSSED
HOUSE BILL NO. 2115 By: Osburn of the House
and
Thompson of the Senate
CONFERENCE COMMITTEE SUBSTITUTE
An Act relating to public assistance programs;
directing the Department of Human Services to
administer certain programs; designating the
Department to receive certain federal funds;
requiring the Department to fulfill certain federal
requirements; transferring certain powers, duties,
records, assets, and monies to the Department;
authorizing certain agreement for transfer of
personnel; creating certain employee protections;
transferring certain administrative rules; providing
for creation of certain transition team; amending 63
O.S. 2021, Sections 2902 and 2903, which relate to
the Energy Conservation Assistance Fund; conforming
language; updating statutory language; amending 74
O.S. 2021, Sections 5030 and 5032, which relate to
weatherization funds; conforming language; updating
statutory language; amending 74 O.S. 2021, Sections
5035, 5036, 5037, 5038, 5039, and 5040, which relate
to community action agencies; conforming language;
updating statutory references and language; amending
74 O.S. 2021, Section 5040.4, as amended by Section
7, Chapter 375, O.S.L. 2024 (74 O.S. Supp. 2025,
Section 5040.4), which relates to the Rx for Oklahoma
Act; conforming language; providing for codification;
providing for recodification; and providing an
effective date.
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 261 of Title 56, unless there is
created a duplication in numbering, reads as follows:
A. On and after the effective date of this act, the Department
of Human Services shall administer:
1. The United States Department of Energy’s Weatherization
Assistance Program;
2. The United States Department of Health and Human Services’
Community Services Block Grant; and
3. The United States Department of Housing and Urban
Development’s Emergency Solutions Grants Program.
B. The Department of Human Services is hereby designated to
receive Weatherization Assistance Program and Emergency Solutions
Grants Program funds appropriated, authorized, or allocated for
usage within this state by the United States government.
C. The Department of Human Services shall fulfill any
requirements necessary for receipt of federal program funds
including, but not limited to, submission of a Consolidated Plan to
the United States Department of Housing and Urban Development.
D. 1. Upon the effective date of this act, all powers and
duties of the Oklahoma Department of Commerce related to the
programs listed in subsection A of this section shall be transferred
to the Department of Human Services. All records, contractual
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rights and responsibilities, assets, fund balances, encumbrances,
and obligations of the Oklahoma Department of Commerce related to
the programs listed in subsection A of this section shall be
transferred to the Department of Human Services.
2. Any monies accruing to or in the name of the Oklahoma
Department of Commerce in relation to the programs listed in
subsection A of this section on or after the effective date of this
act shall be transferred to the Department of Human Services.
3. The Director of the Office of Management and Enterprise
Services shall coordinate the transfer of funds, allotments,
purchase orders, and outstanding financial obligations or
encumbrances as provided for in this section.
4. The Oklahoma Department of Commerce and the Department of
Human Services may enter into an agreement for the transfer of
personnel from the Oklahoma Department of Commerce to the Department
of Human Services. No employee shall be transferred to the
Department of Human Services except on the freely given written
consent of the employee. Any employees who are transferred to the
Department of Human Services shall not be required to accept a
lesser grade or salary than presently received. All employees
shall, in accordance with applicable law, retain leave, sick, and
annual time earned, and any retirement and longevity benefits which
have accrued during their tenure with the Oklahoma Department of
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Commerce. The transfer of personnel shall be coordinated with the
Office of Management and Enterprise Services.
5. Upon the effective date of this act, all administrative
rules promulgated by the Oklahoma Department of Commerce governing
the programs listed in subsection A of this section shall be
transferred to and become a part of the administrative rules of the
Department of Human Services. The Office of Administrative Rules
within the Office of the Secretary of State shall provide adequate
notice in The Oklahoma Register of the transfer of such rules and
shall place the transferred rules under the Oklahoma Administrative
Code title of the Department of Human Services. Such rules shall
continue in force and effect as rules of the Department of Human
Services from and after the effective date of this act, and any
amendment, repeal, or addition to the transferred rules shall be
under the jurisdiction of the Director of Human Services.
E. The Director of Human Services shall appoint a transition
team to coordinate, plan, and guide the transfer of the programs
listed in subsection A of this section. The transition team shall
consist of representatives of the Department of Human Services,
representatives of the Oklahoma Department of Commerce, one
representative of a statewide association representing community
action agencies, and two executive directors of community action
agencies.
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SECTION 2. AMENDATORY 63 O.S. 2021, Section 2902, is
amended to read as follows:
Section 2902. A. The Oklahoma Department of Commerce Human
Services shall be responsible for the disbursement and
implementation of the Energy Conservation Assistance Fund.
B. The Department shall involve senior citizen groups, social
service agencies, and other civic groups in publicizing such
program.
C. The Department of Human Services, in cooperation with the
Oklahoma Department of Commerce, shall determine eligibility
requirements necessary to qualify a homeowner to obtain such grants.
Upon meeting any such eligibility standards, the Department of Human
Services shall certify to the Oklahoma Department of Commerce that
such homeowner is qualified to receive such grant upon notification
of such certification. The Oklahoma Department of Commerce shall
distribute the grant funds. Priorities shall be established for
applications according to those indicating the greatest need. Low-
income elderly and handicapped applicants shall be given first
priority.
D. In order to qualify for grant assistance, the property shall
meet all of the following requirements:
1. The property shall be the homestead of the applicant; and
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2. The property for which the grant is issued shall not be
income-producing or used in any method other than as the principal
residence of the applicant.
E. Grants may be issued to finance the following types of
weatherization:
1. Structural repairs necessary to improve efficient heating
and cooling of the residence;
2. Insulation for attics, walls, and water heaters;
3. Replacement of broken glass, inefficient doors, and door
thresholds;
4. Storm windows;
5. Caulking and weather stripping; and
6. Other appropriate energy conservation measures as determined
by the Oklahoma Department of Commerce.
F. No grants grant shall be:
1. Be made through this program unless an energy audit has been
performed on the applicant’s principal residence.;
No grant shall exceed 2. Exceed Three Thousand Dollars
($3,000.00). No grant shall be; or
3. Be awarded to any applicant with an annual income in excess
of the amount specified in this subsection.
Income eligibility shall be determined based on one hundred
twenty-five percent (125%) of the poverty guidelines issued by the
United States Office of Management and Budget.
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F. G. The application for the grant shall be in such form as
determined by the Oklahoma Department of Commerce. No grant shall
be issued to any person until such person has been certified as
eligible by the Department of Human Services. The applicant shall
be provided with copies of all documents related to the issuance of
the grant. The applicant shall provide documents, as required,
concerning the status of property and household income.
G. H. 1. The Oklahoma Department of Commerce contractors shall
be nonprofit community action agencies or other nonprofit entities
experienced with weatherization programs. The Oklahoma Department
of Commerce shall monitor contractors for compliance with all
Department policies, guidelines, and regulations.
2. Contractors shall be responsible for completion and
inspection of all work undertaken. No payment shall be made to any
contractor until after the required documentation is submitted and
approved by the Oklahoma Department of Commerce. Payments to
contractors shall be made for services rendered and shall be based
on the costs previously agreed to in writing.
H. I. The Oklahoma Department of Commerce shall actively
monitor and audit the financial and operating records of the
contractors involved with the Energy Conservation Assistance Fund to
assure appropriate compliance with established regulations,
guidelines, and standards. The Oklahoma Department of Commerce
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shall also monitor contractors to ensure use of proper materials and
workmanship.
SECTION 3. AMENDATORY 63 O.S. 2021, Section 2903, is
amended to read as follows:
Section 2903. A. The State of Oklahoma through the Department
of Human Services shall have a lien against the property on which
the work is being performed for the amount of the loan plus interest
thereon. The Department shall record a notice of lien with the
county clerk where the property is located. A delinquent
installment of the loan may be foreclosed by the Department and the
property concerned shall be sold in the manner provided for
foreclosures of mortgages on land. Any real estate sold under any
order, judgment, or decree of court to satisfy the lien may be
redeemed by the owner or his or her assignee at any time within one
(1) year of the date of the sale by paying to the purchaser thereof
or his or her assignee the amount paid with interest from the date
of purchase at the rate of twelve percent (12%) per year.
B. Repayment of each loan shall be determined according to a
repayment schedule determined by the Department.
C. Repayment of the loan may be deferred until that time when
the loan recipient sells the property or ownership is transferred.
In such cases where a loan has not been repaid after ten (10) years,
another ten-year extension shall be granted if the loan recipient or
the surviving spouse is still the owner-occupier of the residence.
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Such extensions shall be granted until such time when the property
is transferred from the loan recipient or the surviving spouse to
another party.
D. Loan repayments shall be made to the Oklahoma Department of
Commerce and shall be deposited in the Energy Conservation Loan
Assistance Fund.
SECTION 4. AMENDATORY 74 O.S. 2021, Section 5030, is
amended to read as follows:
Section 5030. A. There is hereby created in the State Treasury
a revolving fund to be designated as the “Weatherization Revolving
Fund”, which shall consist of all monies appropriated or transferred
to the fund. Said The revolving fund shall be a continuing fund,
not subject to fiscal year limitations and, shall be under the
administration of the Oklahoma Department of Commerce Human
Services, and may be disbursed without legislative appropriation for
the purpose provided by subsection B of this section. Warrants for
expenditures Expenditures from said the revolving fund shall be
drawn made upon warrants issued by the State Treasurer, based on
against claims signed by an authorized employee or employees of the
Oklahoma Department of Commerce and approved for payment by filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment.
B. It is hereby declared that energy conservation is in the
interest of the State of Oklahoma. The purpose of this fund the
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Weatherization Revolving Fund is to provide monies to be used for
the purpose of weatherizing households in Oklahoma, thereby
conserving the oil and natural gas resources of the state.
B. On July 1, 1986, any unallotted cash balance in the
Weatherization Revolving Fund created in Section 1537.1 of this
title shall be transferred to the Weatherization Revolving Fund
created in this section. All outstanding financial obligations and
encumbrances of the Weatherization Revolving Fund created in Section
1537.1 of this title are hereby transferred to the Oklahoma
Department of Commerce. After November 15, 1986, any unexpended
balance in the Weatherization Revolving Fund created in Section
1537.1 of this title shall be transferred to the Weatherization
Revolving Fund created in this section.
SECTION 5. AMENDATORY 74 O.S. 2021, Section 5032, is
amended to read as follows:
Section 5032. Community action agencies shall administer the
weatherization funds of the Low-Income Low Income Home Energy
Assistance Block Grant Program (LIHEAP) on a local level unless the
Oklahoma Department of Commerce Director of Human Services
determines that the program can be more effectively administered
through another entity.
SECTION 6. AMENDATORY 74 O.S. 2021, Section 5035, is
amended to read as follows:
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Section 5035. A. The Oklahoma Department of Commerce
Department of Human Services is hereby designated to receive
Community Services Block Grant Funds appropriated, authorized, or
allocated for usage within the State of Oklahoma this state by the
United States Government government. These funds shall be used for,
but not limited to, the following:
1. Provide Providing a range of services and activities having
major impact on causes and effects of poverty in the community or
those areas of the community where poverty is a particularly acute
problem;
2. Provide Providing activities designed to assist low-income
participants including the elderly poor;
a. to secure and retain meaningful employment,
b. to attain an adequate education,
c. to make better use of available income,
d. to obtain and maintain adequate housing and a suitable
living environment,
e. to obtain emergency assistance,
f. to remove obstacles and solve problems which block the
achievement of self-sufficiency, and
g. to make more effective use of other programs;
3. Provide Providing on an emergency basis for the provision of
such supplies and services, nutritious foodstuffs, and related
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services, as may be necessary to counteract conditions of starvation
and malnutrition among the poor or temporarily indigent;
4. Coordinate Coordinating and establish establishing linkages
between government and other social services programs to assure the
effective delivery of such services to low-income individuals; and
5. Encourage Encouraging the use of entities in the private
sector of the community in efforts to eliminate poverty in the
community.
B. The Oklahoma Department of Commerce Director of Human
Services shall promulgate and ensure compliance on with rules,
regulations, policies, and procedures to carry out all programs of
the Community Services Block Grant.
C. At least ninety percent (90%) of the Community Service
Services Block Grant funds received by the Oklahoma Department of
Commerce Department for the state from the United States Government
government shall be allocated to community action agencies, as
defined in this act Section 5001 et seq. of this title.
D. If the Community Services Block Grant is consolidated with
any other block grant or other federal program, then a proportional
share of the consolidated funds shall be used for services under the
Community Services Block Grant program in accordance with this act
Section 5001 et seq. of this title for at least twelve (12) months.
The Oklahoma Department of Commerce Department shall retain
administrative responsibility of these funds.
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E. For each consolidated program, proportional share shall be
the percentage of total funds received by all consolidated programs
prior to the consolidation.
SECTION 7. AMENDATORY 74 O.S. 2021, Section 5036, is
amended to read as follows:
Section 5036. A. A community action agency shall be defined as
a public or private nonprofit agency, designated by the Oklahoma
Department of Commerce Department of Human Services.
B. The Oklahoma Department of Commerce shall have the right to
Department may evaluate existing service areas and community action
agencies and, as may be necessary, modify boundaries of the service
areas or rescind designation in accordance with the provisions
outlined in Section 45 of this act of Section 5039 of this title so
that services will be adequately and efficiently provided.
SECTION 8. AMENDATORY 74 O.S. 2021, Section 5037, is
amended to read as follows:
Section 5037. A community action agency shall establish a
governing board of directors which shall consist of not less than
twelve nor more than thirty-six members. At least one-third of the
members shall be representative of the poor in the areas served and
shall be chosen through a democratic selection process. One-third
of the members shall be elected public officials or their designees
as established by the Oklahoma Department of Commerce Department of
Human Services. The remaining members shall be representative of
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business, industry, labor, religious, welfare, education, or other
major groups and interests in the community. The community action
agency board of directors shall be responsible for:
1. The appointment and dismissal of an executive director of
the community action agency;
2. The approval of contracts, annual budget requests, and
operational policies of the community action agency;
3. The performance of an annual audit by an independent
auditor;
4. Convening of public meetings to provide citizens the
opportunity to comment on public policies and programs to reduce
poverty;
5. Evaluate Evaluation of programs and policies of the
community action agency; and
6. Compliance with all Oklahoma Department of Commerce,
federal, state, and local and agency rules, regulations, policies,
and procedures.
SECTION 9. AMENDATORY 74 O.S. 2021, Section 5038, is
amended to read as follows:
Section 5038. To ensure statewide delivery of Community
Services Block Grant services, the Oklahoma Department of Commerce
Department of Human Services shall establish a process to designate
community action agencies.
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SECTION 10. AMENDATORY 74 O.S. 2021, Section 5039, is
amended to read as follows:
Section 5039. A. Prior to rescission of designation of a
community action agency, the Oklahoma Department of Commerce
Department of Human Services shall:
1. Determine whether the existing or proposed community action
agency is in compliance with Sections 41, 42 and 43 5035, 5036, and
5037 of this act title;
2. Evaluate the existing or proposed community action agency
service area, and, as may be necessary, modify the boundaries of the
service area so that services will be adequately and efficiently
provided; and
3. Provide a written notice containing the reasons for the
anticipated action to the chairman chair of the board of the
existing or proposed community action agency.
B. The Oklahoma Department of Commerce Department may rescind
the designation of a community action agency if it is found that the
community action agency is not in compliance with any or all of the
provisions of Sections 41, 42 and 43 5035, 5036, and 5037 of this
act title.
Any agency whose designation is rescinded pursuant to this
section may appeal the order of rescission in accordance with
existing state and federal law. The Oklahoma Department of Commerce
Department shall consider a community action agency or agencies for
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the assumption of all or a portion of the service area of a
community action agency with contiguous borders whose designation
may be rescinded.
SECTION 11. AMENDATORY 74 O.S. 2021, Section 5040, is
amended to read as follows:
Section 5040. A. A community action agency shall serve as a
primary advocate for the reduction of the causes, conditions, and
effects of poverty and shall provide social and economic
opportunities that foster self-sufficiency for low-income persons.
Any service provided by a community action agency through the
Community Services Block Grant opportunity shall be made available
to all eligible persons within the community action agency’s service
area. The activities of a community action agency shall, subject to
rules and regulations promulgated by the Oklahoma Department of
Commerce Director of Human Services, include, but not be limited to,
the following:
1. Informing state and local governments, private agencies and
organizations, and citizens of the nature and extent of poverty
within the service area;
2. Developing, administering, and operating community social
and economic programs to reduce poverty within the entire area;
3. Providing and advocating for training and technical
assistance to the poor and other residents within the service area
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to better define human problems, improve services, and facilitate
citizen participation;
4. Promoting interagency cooperation and coordination in
providing services to low-income persons;
5. Entering into contracts with federal, state, and local
public and private agencies and organizations as necessary to carry
out the purposes of this act Section 5001 et seq. of this title; and
6. Engaging in any other activity necessary to fulfill the
intent of this section and Sections 5034 through 5039 of this title.
B. The Department of Commerce Department of Human Services
shall not execute a contract with a community action agency until
the applicant submits, and the Department approves, a budget work
program for expenditure of funds. Each contract shall require
audits of expenditures, as provided in rules promulgated by the
Department Director.
SECTION 12. AMENDATORY 74 O.S. 2021, Section 5040.4, as
amended by Section 7, Chapter 375, O.S.L. 2024 (74 O.S. Supp. 2025,
Section 5040.4), is amended to read as follows:
Section 5040.4. A. The State Department of Health shall
establish, through a competitive bid process, a statewide program to
assist medically indigent residents of Oklahoma to receive
prescriptions from drug manufacturer assistance programs.
B. Agencies including, but not limited to, the following shall
be encouraged by the Department to submit bids:
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1. County offices of the Department of Human Services;
2. County health departments;
3. Community action agencies designated by the Oklahoma
Department of Commerce Department of Human Services pursuant to
Section 5038 of this title;
4. Community mental health centers;
5. Private nonprofit agencies; and
6. Public entities engaged in the delivery of social services.
C. Agencies selected by the State Department of Health to
provide services pursuant to the Rx for Oklahoma Act shall, at a
minimum, demonstrate their ability to:
1. Deliver services in a community or geographic area of the
state that is not currently receiving services pursuant to the Rx
for Oklahoma Act;
2. Maintain a dedicated telephone line and computer with
Internet access with appropriate software during normal business
hours; and
3. Have staff or volunteers available who can:
a. develop and implement community awareness initiatives
about the prescription assistance services offered by
the agency,
b. determine whether a pharmaceutical program is offered
for the drug or drugs a person needs,
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c. determine whether a person is eligible for assistance
through a pharmaceutical program,
d. assist a person to make application to and enroll in a
pharmaceutical assistance program,
e. keep accurate records of the number of clients served,
f. maintain the confidentiality of all client information
including, but not limited to, the client’s identity,
application information, and other records, and
g. estimate the value of prescriptions provided to
clients under the program.
D. Eligibility for the Rx for Oklahoma Act shall be residents
of Oklahoma who:
1. Are medically indigent; or
2. Are not medically indigent but cannot reasonably afford to
pay for prescription medications.
E. The State Department of Health shall promulgate rules or
establish procedures necessary to implement the program established
by the Rx for Oklahoma Act and shall electronically submit an annual
report to the Legislature and the Governor no later than January 1
of each year. The report shall include, but not be limited to, the
following:
1. A listing of entities awarded grants and the amount of each
award;
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2. The number of residents served who were eligible for a drug
manufacturer assistance program and the average amount of savings
per resident;
3. The number of residents who sought assistance pursuant to
the Rx for Oklahoma Act, but were determined not to be eligible for
a drug manufacturer assistance program; and
4. A report by the Department of total expenditures. Included
within the report shall be a summary of each grantee’s
administrative, personnel, and direct services expenditures by
category relative to the grantee’s administration of the program.
SECTION 13. RECODIFICATION 63 O.S. 2021, Sections 2901
and 2904, shall be recodified as Sections 261.1 and 261.4 of Title
56 of the Oklahoma Statutes, unless there is created a duplication
in numbering.
SECTION 14. RECODIFICATION 63 O.S. 2021, Sections 2902
and 2903, as amended by Sections 2 and 3 of this act, shall be
recodified as Sections 261.2 and 261.3 of Title 56 of the Oklahoma
Statutes, unless there is created a duplication in numbering.
SECTION 15. RECODIFICATION 74 O.S. 2021, Sections 5030
and 5032, as amended by Sections 4 and 5 of this act, shall be
recodified as Sections 261.11 and 261.12 of Title 56 of the Oklahoma
Statutes, unless there is created a duplication in numbering.
SECTION 16. RECODIFICATION 74 O.S. 2021, Sections 5034
and 5040.1, shall be recodified as Sections 261.21 and 261.28 of
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Title 56 of the Oklahoma Statutes, unless there is created a
duplication in numbering.
SECTION 17. RECODIFICATION 74 O.S. 2021, Sections 5035,
5036, 5037, 5038, 5039, and 5040, as amended by Sections 6, 7, 8, 9,
10, and 11 of this act, shall be recodified as Sections 261.22,
261.23, 261.24, 261.25, 261.26, and 261.27 of Title 56 of the
Oklahoma Statutes, unless there is created a duplication in
numbering.
SECTION 18. This act shall become effective January 1, 2028.
60-2-17440 MAH 04/14/26