TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 16. COMPTROLLER GRANT PROGRAMS

SUBCHAPTER C. TEXAS OPIOID ABATEMENT FUND PROGRAM

34 TAC §§16.200 - 16.203, 16.205, 16.206, 16.208, 16.212, 16.214, 16.215, 16.217 - 16.219, 16.222, 16.223

The Comptroller of Public Accounts adopts amendments to §16.200, concerning definitions; §16.201, concerning opioid abatement strategies; §16.202, concerning grant issuance plan; §16.203, concerning notice and applications; §16.205, concerning engage in business in Texas; §16.206, concerning peer review panel members; §16.208, concerning grant application review; §16.212, concerning grant requirements; §16.214, concerning conflicts of interest; code of ethics; §16.215, concerning reporting; §16.217, concerning extensions and amendments; §16.218, concerning noncompliance; §16.219, concerning monitoring grant award performance and expenditures; and §16.222, concerning hospital district allocations, without changes to the proposed text as published in the January 30, 2026, issue of the Texas Register (51 TexReg 525). The rules will not be republished. The comptroller adopts the amendments to simplify the council's operations, align the rules with the council's experiences and with Senate Bill 1901, 89th Legislature, R.S., 2025, and clarify requirements related to grant issuance plans, notices of funding availability (NOFA), grant applicants, grant agreements, peer review panels, conflicts of interest, and distributions to hospital districts. The comptroller also adopts new §16.223, concerning grants to certain political subdivisions, without changes to the proposed text as published in the January 30, 2026, issue of the Texas Register (51 TexReg 525). The rule will not be republished.

The amendments to §16.200 authorize the director to determine the size of peer review panels.

The amendments to §16.201 remove the requirement that the council rank abatement strategies in order of priority for grant funding.

The amendments to §16.202 clarify the requirements for grant issuance plans, authorize the council to modify the allocation of funding to regional healthcare partnership regions, and remove the requirement that the council rank the parameters related to funding for targeted interventions.

The amendments to §16.203 clarify the requirements for NOFAs, authorize the director to require a grant applicant to submit additional information, and remove the requirement that grant applications must comply with the applicable NOFA and statutory requirements, which is already required by the NOFAs and grant agreements.

The amendments to §16.205 clarify the requirement that a grant applicant "engage in business" in the state.

The amendments to §16.206 clarify the requirements regarding the location of peer review panel members.

The amendments to §16.208 authorize the director to determine the size of peer review panels.

The amendments to §16.212 clarify that grant applicants must comply with applicable provisions of the Texas Grant Management Standards and the State of Texas Procurement and Contract Management Guide.

The amendments to §16.214 add a conflict of interest standard consistent with Government Code, §403.5041, added by Senate Bill 1901, 89th Legislature, R.S., 2025, and clarify that the council may adopt a code of ethics for council members and peer review panel members.

The amendments to §16.215 provide that the director will receive periodic reports from grant recipients and that the director or the council may determine the requirements of such reports.

The amendments to §16.217 authorize the director to approve amendments to grant agreements without further action of the council.

The amendments to §16.218 provide that the director may monitor and address any noncompliance by a grant recipient and removes the force majeure provision, which is addressed in the applicable grant agreements.

The amendments to §16.219 provide that the director shall monitor the performance of grant recipients.

The amendments to §16.222 clarify when unclaimed or disclaimed distributions to hospital districts may be cancelled and reallocated to other hospital districts.

New §16.223 provides the council with authority to award non-competitive grants to political subdivisions, including streamlined, targeted grants to small counties and municipalities whose distributions under Government Code, §403.506(c)(1), are too small to fund meaningful opioid abatement.

The comptroller did not receive any comments regarding adoption of the amendments and new section.

The amendments and new section are adopted under Government Code, §403.511, which authorizes the comptroller to adopt rules to implement Government Code, Chapter 403, Subchapter R, concerning the statewide opioid settlement agreement.

The amendments and new section implement Government Code, Chapter 403, Subchapter R, concerning statewide opioid settlement agreements.

The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on March 19, 2026.

TRD-202601331

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Effective date: April 8, 2026

Proposal publication date: January 30, 2026

For further information, please call: (512) 475-2220

34 TAC §§16.207, 16.213, 16.216

The Comptroller of Public Accounts adopts the repeal of §16.207, concerning authorized officials, §16.213, concerning use of council's grant management system, and §16.216, concerning grant reduction or termination, without changes to the proposed text as published in the January 30, 2026, issue of the Texas Register (51 TexReg 531). The rules will not be republished. The comptroller repeals these sections because they are no longer necessary or are adequately addressed through the applicable grant agreements or notices of funding availability.

The comptroller did not receive any comments regarding adoption of the repeal.

The repeals are adopted under Government Code, §403.511, which authorizes the comptroller to adopt rules to implement Government Code, Chapter 403, Subchapter R, concerning the statewide opioid settlement agreement.

The repeals implement Government Code, Chapter 403, Subchapter R, concerning statewide opioid settlement agreements.