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