TITLE 34. PUBLIC FINANCE

PART 1. COMPTROLLER OF PUBLIC ACCOUNTS

CHAPTER 16. COMPTROLLER GRANT PROGRAMS

SUBCHAPTER C. TEXAS OPIOID ABATEMENT FUND PROGRAM

The Comptroller of Public Accounts proposes 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. The comptroller proposes 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 proposes new §16.223, concerning grants to certain political subdivisions.

The legislation enacted within the last four years that provides the statutory authority for the rules is Senate Bill 1901, 89th Legislature, R.S., 2025.

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.

Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed new rule and amendments are in effect, the new and amended rules will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.

Mr. Reynolds also has determined that the proposed new rule and amendments would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed new rule and amendments would benefit the public by improving the clarity and implementation of the section. There would be no anticipated economic cost to the public. The proposed new rule and amendments would have no significant fiscal impact on small businesses or rural communities.

You may submit comments on the proposal or information related to the cost, benefit, or effect of the proposal, including any applicable data, research or analysis, to Katy Fallon-Brown, Director, Opioid Abatement Fund Council, P.O. Box 13528 Austin, Texas 78711 or to the email address: OAFC.Public@cpa.texas.gov. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.

The amendments are proposed 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 implement Government Code, Chapter 403, Subchapter R, concerning statewide opioid settlement agreements.

§16.200. Definitions.

The following words and terms, when used in this subchapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) Authorized official--The individual, including designated alternates, named by a grant applicant or grant recipient, who is authorized to act for the grant applicant or grant recipient in submitting the grant application and executing the grant agreement and associated documents or requests.

(2) Comptroller--The Texas Comptroller of Public Accounts.

(3) Council--The Texas Opioid Abatement Fund Council established by Government Code, §403.503, to manage the distribution of money allocated to the council from the Opioid Abatement Trust Fund, established by Government Code, §403.506 in accordance with a statewide opioid settlement agreement. A reference in this subchapter to the council includes the director and program staff members unless the provision indicates otherwise.

(4) Council member--An appointed member of the council.

(5) Director--The program staff member designated by the comptroller to serve as the director for the council who performs duties as necessary to manage the day-to-day operations of the council. This term includes the director's designees.

(6) Grant agreement--A legal agreement executed by a grant recipient and the director, on behalf of the council, setting forth the terms and conditions for a grant award approved by the council.

(7) Grant applicant--A person or entity that has submitted through an authorized official an application for a grant award under this subchapter.

(8) Grant application--A written proposal submitted by a grant applicant to the director in the form required by the council that, if successful, will result in a grant award.

(9) Grant award--Funding awarded by the council pursuant to a grant agreement providing money to the grant recipient to carry out a grant project in accordance with statutes, rules, regulations, and guidance provided by the council.

(10) Grant recipient--A grant applicant that receives a grant award under this subchapter.

(11) NOFA--Notice of funding availability.

(12) Peer review--The review process performed by the peer review panel and used to provide guidance and recommendations to the council in making decisions for grant awards. The process involves the consistent application of standards and procedures to produce a fair, equitable, and objective evaluation of grant applications, based on the evidence-based opioid abatement strategies developed by the council under Government Code, §403.509, as well as other relevant requirements of the NOFA and the grant application.

(13) Peer review panel--A group of experts in the field of opioid abatement who are selected to conduct peer review of grant applications. A peer review panel may consist of one or more members as determined by the director [council].

(14) Peer review panel member--A member of the peer review panel.

(15) Program staff member--A member of the comptroller's staff assigned by the comptroller to provide assistance to the council. This term includes the director.

(16) Statewide opioid settlement agreement--A settlement agreement and related documents entered into by this state through the attorney general, political subdivisions that have brought a civil action for an opioid-related harm claim against an opioid manufacturer, distributor, or retailer, and opioid manufacturers, distributors, or retailers relating to illegal conduct in the marketing, promotion, sale, distribution, and dispensation of opioids that provide relief for this state and political subdivisions of this state.

§16.201. Opioid Abatement Strategies.

(a) The council shall determine and approve one or more evidence-based opioid abatement strategies that are eligible for grant funding. To be approved as eligible for funding, a strategy must be:

(1) an opioid abatement strategy provided in the opioid abatement settlement agreements;

(2) supported with evidence-based data; and

(3) in compliance with all applicable state and federal law.

(b) For each strategy approved as an eligible strategy, the council shall categorize the strategy as:

(1) treatment and coordination of care;

(2) prevention and public safety;

(3) recovery support services; or

(4) workforce development and training.

§16.202. Grant Issuance Plan.

(a) The council shall adopt an annual [a] grant issuance plan [that allocates grant funds among one or more grant cycles].

(b) The grant issuance plan shall include:

(1) [(2)] the category or categories, and one or more eligible strategies within each category, that may [will] be eligible for grant funding [during each grant cycle];

(2) [(3)] the total annual amount of grant funds allocated [to each grant cycle];

(3) [(4)] the parameters for the regional component, including the amounts allocated for regional funding [of each grant cycle];

(4) [(5)] the parameters for the targeted intervention component, including the amounts allocated for targeted interventions [of each grant cycle]; and

(5) [(6)] any other information or council-mandated requirements necessary to implement the grant issuance plan[, such as any matching or volunteer requirements, any limitations to the types of eligible applicants, or other requirements].

(c) [(e)] Each grant issuance plan [cycle] will be divided into two main funding components:

(1) Of the funds allocated pursuant to a grant issuance plan [cycle,] 75% shall be allocated among the regional healthcare partnership regions. Unless the council provides for a different method to allocate funding in the annual plan, the funding provided under this section shall be allocated to the regional healthcare partnership regions using the following percentages [regional allocations]:

(A) Each region's allocation will be determined using the following regional allocations:

(i) 5.515633% allocated to region 1.

(ii) 7.813739% allocated to region 2.

(iii) 17.455365% allocated to region 3.

(iv) 3.902955% allocated to region 4.

(v) 2.542550% allocated to region 5.

(vi) 9.845317% allocated to region 6.

(vii) 7.285670% allocated to region 7.

(viii) 3.495025% allocated to region 8.

(ix) 9.594819% allocated to region 9.

(x) 9.457202% allocated to region 10.

(xi) 1.372268% allocated to region 11.

(xii) 3.390769% allocated to region 12.

(xiii) 0.749727% allocated to region 13.

(xiv) 1.749546% allocated to region 14.

(xv) 2.596578% allocated to region 15.

(xvi) 1.363928% allocated to region 16.

(xvii) 3.325101% allocated to region 17.

(xviii) 5.741368% allocated to region 18.

(xix) 1.827600% allocated to region 19.

(xx) 0.974842% allocated to region 20.

(B) Within each region and provided there are a sufficient number of eligible grant applicants, no single grant recipient will receive 100% of the funds allocated to a respective region.

(2) Of the funds allocated pursuant to a grant issuance plan [cycle], 25% shall be allocated for council-directedtargeted interventions. The council shall establish parameters for the authorized uses of the targeted intervention component [of each grant cycle.].

[(A)] The parameters may include:

(A) [(i)] a limitation to one or more geographic areas based on opioid incidence information; and

(B) [(ii)] a limitation to one or more eligible strategies based on opioid incidence information.

(d) [(f)] The council may, as necessary [from time to time], review and amend the annual grant issuance plan.

§16.203. Notice and Applications.

(a) The [For each grant cycle in the grant issuance plan adopted under §16.202 of this subchapter, the] council shall provide notice of competitive grant opportunities by publishing NOFAs [, as necessary, publish a NOFA] on the Electronic State Business Daily [Texas.gov eGrants] website and the comptroller's website.

(b) The NOFA may include:

(1) the amount of any grant funds available for grant awards for each regional healthcare partnership region under the regional component;

(2) the amount of any grant funds available for grant awards and any limitations on the number of grant awards under the targeted intervention component;

(3) the strategy or strategies that are eligible for grant funding [and the order of priority for grant funding];

(4) the minimum and maximum amount of grant funds available for each grant application;

(5) any limitations on the geographic distribution of grant funds [under the regional component and under the targeted intervention component];

(6) eligibility requirements;

(7) grant application requirements;

(8) grant award and evaluation criteria; and

(9) [(13)] any other [necessary] informationnecessary to implement the grant or grant issuance plan.

(c) All grant applications submitted under this subchapter must comply with the requirements contained in this subchapter and in the relevant NOFA published by the council.

(d) Grant applicants must apply for a grant award using the procedures, forms, and certifications prescribed by the council.

(e) During the review of a grant application, the director [a program staff member] may require a grant applicant to submit additional information necessary to complete the review. Such requests for information do not serve as notice that the council intends to fund a grant application; however, failure to respond to requests for additional information may impact the ability to review and evaluate the grant application.

(f) Grant applications shall[:]

[(1)] seek to remediate the opioid crisis in this state by using efficient and cost-effective methods that are directed to regions of this state experiencing opioid-related harms. [; and]

§16.205. Engage in Business in Texas.

(a) Except as addressed by a NOFA, to be eligible to receive a grant award, a grant applicant must engage in business in the state of Texas by:

(1) maintaining employees in the state of Texas; or

(2) having a fixed place of business in the state of Texas.[; or]

(b) Grant applicants responding to a NOFA may be located outside the state of Texas when the grant application is submitted and reviewed; however, the grant applicant must demonstrate that it engages in business in the state of Texas as a condition of the grant award.

(c) A grant recipient's failure to engage in business in the state of Texas is a violation of these rules for the purpose of §16.218 of this subchapter.

§16.206. Peer Review Panel Members.

(a) To minimize the potential for conflicts of interest in the peer review of grant applications, the council shall give preference to [may select and compensate] individuals who live and work outside of the state of Texas to serve as peer review panel members[, unless a special need justifies selecting one or more individuals living or working in Texas].

(b) [(c)] A peer review panel member shall immediately disclose to the director a present relationship with a grant applicant or any benefit the peer review panel member has received or knows the member will receive from a grant applicant.

(c) [(d)] A peer review panel member who has a present relationship with a grant applicant, or has received or knows the member will receive any benefit from a grant applicant, may not review that grant application.

§16.208. Grant Application Review.

(a) The grant application review process shall consist of the following:

(1) initial screening;

(2) director review or, if required, peer review; and

(3) council review and approval.

(b) Initial screening.

(1) The director shall review each grant application to determine whether the grant application complies with the requirements contained in this subchapter and the relevant NOFA published by the council. Grant applications that do not meet these requirements may not be eligible for a grant award and will not be submitted for further review under this section. The council may participate in the initial screening of any grant application.

(2) Following the initial screening, the director shall submit each grant application that meets the requirements described in subsection (b)(1) of this section for review under subsection (c) of this section.

(c) Director review or peer review.

(1) Each grant application that is submitted for review under subsection (b)(2) of this section shall be reviewed by the director or a peer review panel.

(A) If the total amount of the grant is greater than $750,000, the grant application shall be reviewed by a peer review panel.

(B) If the total amount of the grant is $750,000 or less, the grant application may be reviewed by the director or a peer review panel.

(2) Applications shall be scored based on the application's merit and the criteria in the relevant NOFA published by the council. The reviewer shall submit this information to the director.

(3) Scores, rankings and other information submitted for the council's consideration are recommendations and are advisory only.

(4) For each NOFA, the director [council] will determine the number of members that will serve on the peer review panels for any grant applications subject to peer review.

(d) Council review and approval.

(1) Upon completion of the evaluation described in subsection (c) of this section, the director shall compile a ranked order list of grant applications and submit it to the council for consideration. If an application is reviewed by more than one person, the final evaluation score is determined by averaging together all reviewers' scores.

(2) For each application, the director shall submit to council members:

(A) the grant application's final overall evaluation score;

(B) the grant application's ranking;

(C) a summary of the grant application;

(D) other information submitted by the reviewers for the council's consideration; and

(E) any other information required for the council's consideration of the grant application.

(3) In making grant award decisions, the council:

(A) shall ensure that grant funds are allocated fairly and spent to remediate the opioid crisis in this state by using efficient and cost-effective methods in accordance with the opioid strategies approved by the council under Government Code, §403.509(a)(1) and §16.201 of this subchapter, and the grant issuance plan adopted by the council under §16.202 of this subchapter; and

(B) may consider factors including:

(i) a grant applicant's experience;

(ii) a grant project's estimated timeline;

(iii) matching funds or sustainability plan, if any;

(iv) cost effectiveness, efficacy and overall impact of the grant project;

(v) geographic location of the grant project;

(vi) community partnerships; and

(vii) any additional factors listed in the relevant NOFA published by the council.

(4) The council shall vote on grant applications in accordance with Government Code, Chapter 403, Subchapter R. The council may determine the voting procedures for grant applications and may vote on multiple grant applications at one time.

(5) All grant funding decisions are final and are not subject to appeal.

(6) The approval of a grant award shall not obligate the council to make any additional, supplemental, or other grant award.

§16.212. Grant Requirements.

(a) Grant recipients must comply with:

(1) the terms and conditions of the grant agreement;

(2) the requirements of Government Code, Chapter 403, Subchapter R;

(3) the applicable [relevant] provisions of the Texas Grant Management Standards and the State of Texas Procurement and Contract Management Guide, or their successors, adopted in accordance with Texas law; and

(4) all applicable state or federal statutes, rules, regulations, or guidance applicable to the grant award.

(b) A grant recipient is the entity legally and financially responsible for compliance with the grant agreement, and state and federal laws, rules, regulations, and guidance applicable to the grant award.

(c) Grant funds may not be used for costs that will be reimbursed by another funding source. The director may require a grant applicant or grant recipient to demonstrate through accounting records that funds received from another funding source are not used for costs that will be reimbursed by the council.

§16.214. Conflicts of Interest; Code of Ethics.

(a) All council members, peer review panel members, and program staff members shall avoid acts which are improper or give the appearance of impropriety in the disposition of funds administered by the council.

(c) [(b)] The council may [shall] adopt a code of ethics to provide guidance related to the ethical conduct required of council members and[,] peer review panel members[, and program staff members].

(d) [(c)] Any [The] code of ethics adopted by the council shall be distributed to each council member and [,] peer review panel member, as applicable [and program staff member].

§16.215. Reporting.

(a) Grant recipients must submit [to a program staff member designated by the director] periodic reports for each funded grant project for the duration of the grant agreement to the director. The frequency, format and requirements of the reports shall be determined at the discretion of the director or at the direction of the council.

(b) At the director's sole discretion and at any time, the director, upon reasonable notice, may request any additional data and reporting information that the director deems necessary to substantiate that grant funds are being used for the intended purpose and that the grant recipient has complied with the terms, conditions, and requirements of the grant agreement.

§16.217. Extensions and Amendments.

(a) The director may, without further action of the council, approve:

(1) a grant recipient's written request for a no cost time extension of the termination date of the grant agreement to permit the grant recipient additional time to complete the work of the grant project if the grant recipient is in good fiscal and programmatic standing, and

(b) A written request for a no cost time extension must include:

(1) a timeline of events beginning on the date of grant award;

(2) a detailed explanation why the grant project is not expected to be completed within the grant term; and

(3) if applicable, supporting documentation demonstrating extenuating circumstances.

(c) The director may approve one or more no cost time extensions. The duration of each no cost time extension may be no longer than six months from the termination date of the grant agreement, unless the director finds that special circumstances justify authorizing additional time to complete the work of the grant project.

(d) Approval of a no cost time extension request must be supported by a finding of good cause and the grant agreement shall be amended to reflect the change.

(e) The director's decision to grant or deny a no cost time extension request or an amendment to a grant agreement is final and is not subject to appeal.

§16.218. Noncompliance.

(a) If the director [council] has reason to believe that a grant recipient has violated any term or condition of the grant recipient's grant agreement or any applicable laws, rules, regulations, or guidance relating to the grant award, the director shall provide written notice of the allegations to the grant recipient and provide the grant recipient with an opportunity to respond to the allegations.

(b) If the director [council] finds that a grant recipient has failed to comply with any term or condition of a grant agreement, or any applicable laws, rules, regulations, or guidance relating to the grant award, the director [council] may:

(1) require the grant recipient to refund the grant award or a portion of the grant award;

(2) withhold grant award amounts to a grant recipient pending correction of the deficiency;

(3) disallow all or part of the cost of the activity or action that is not in compliance;

(4) terminate the grant award in whole or in part;

(5) bar the grant recipient from future consideration for grant funds under this subchapter; or

(6) exercise any other legal remedies available at law.

§16.219. Monitoring Grant Award Performance and Expenditures.

The director [council] shall monitor grant awards to ensure that grant recipients comply with applicable financial, administrative, and programmatic terms and conditions and exercise proper stewardship over grant award funds. Such terms and conditions include requirements set forth in the grant agreement, and applicable laws, rules, regulations, or guidance relating to the grant award.

§16.222. Hospital District Allocations.

(a) The council shall make periodic distributions of money allocated to hospital districts under Government Code, §403.508(a)(2).

(b) The council shall distribute money under subsection (a) of this section when, based on the total amount of money to be distributed, the smallest amount of the money that would be allocated to an individual hospital district equals at least $1,000. Additionally, the council may, at the council's discretion, distribute money under subsection (a) of this section when, based on the total amount of money to be distributed, an individual hospital district would receive less than $1000.

(c) The total amount of each distribution of money under subsection (a) of this section shall be determined by the council.

(d) The initial distribution of money under subsection (a) of this section shall be allocated as follows:

(1) to the hospital districts listed in subsection (f) of this section in the dollar amounts listed in that subsection; and

(2) the remainder to the hospital districts listed in subsection (g) of this section in amounts determined by multiplying the percentages listed in that subsection by the remaining amount to be distributed.

(e) Any subsequent distributions of money under subsection (a) of this section shall be allocated to the hospital districts listed in subsection (g) of this section in amounts determined by multiplying the percentages listed in that subsection by the amount to be distributed.

(f) Group One:

Figure: 34 TAC §16.222(f) (No change.)

(g) Group Two:

Figure: 34 TAC §16.222(g) (No change.)

(h) Amounts allocated under subsections (d)(2) and (e) of this section may be rounded down to the nearest whole dollar. Any remaining money caused by rounding shall be retained for future allocation to hospital districts under this section.

(i) Prior to, and as a condition of, receiving a distribution of money under subsection (a) of this section, a hospital district listed in subsection (f) or (g) of this section must, for each distribution:

(1) submit to the director a resolution from the hospital district's governing body that:

(A) designates, by name and title, an authorized official who has the authority to act on behalf of the hospital district in all matters related to the distribution, including the authority to sign all official documents related to the distribution;

(B) affirms that the hospital district will use all money received by the hospital district under this section:

(i) to remediate the opioid crisis, including providing assistance in one or more of the categories described in §16.201(b) of this subchapter; or

(ii) if a court order or settlement agreement requires the money to be used for one or more specific purposes, for a permissible use provided by that court order or settlement agreement; and

(C) affirms that, in the event of loss or misuse of grant funds, the hospital district shall return all funds to the council;

(2) submit to the director in a form acceptable to the director:

(A) the authorized official's title, mailing address, telephone number, and email address;

(B) the hospital district's physical address; and

(C) any other documents or information required by the director, including any documents or information required for the secure transfer of money to the hospital district or required by a court order or settlement agreement that applies to all or a portion of the money being distributed;

(3) if there is a change of authorized official, submit to the director a new resolution from the hospital district's governing body that contains the information required under paragraph (1) of this subsection;

(4) notify the director as soon as practicable of any change in the information provided under paragraph (2) of this subsection;

(5) be in compliance with subsection (j) of this section for any prior distributions; and

(6) be in compliance with the reporting requirements in subsection (l) of this section for any prior distributions.

(j) Money received by a hospital district under this section must be used by the hospital district for the purposes described in subsection (i)(1)(B) of this section.

(k) If a hospital district does not satisfy the requirements to receive a distribution under subsection (i) of this section, does not deposit distributed money before the second anniversary of the date on which the money was distributed, or submits in writing to the council a document indicating that the hospital district affirmatively forfeits or refuses to accept the money, the distribution to that hospital district, and any future distributions to that hospital district, may be cancelled and, if cancelled, the money shall be retained by the council for future allocation to hospital districts under this section.

(l) A hospital district that receives a distribution of money under this section must submit periodic reports to the director to ensure that the hospital district complies with subsection (j) of this section. The frequency, format, and requirements of the reports shall be determined at the discretion of the director.

(m) The council may monitor a hospital district that receives money under this section to ensure that the hospital district complies with subsection (j) of this section.

(n) If the council finds that a hospital district has failed to comply with the requirements of subsection (j) of this section, the council may do one or more of the following:

(1) instruct the director to provide the hospital district written notice of the alleged failure to comply;

(2) provide the hospital district with an opportunity to respond;

(3) require the hospital district to cure the failure to comply to the satisfaction of the council;

(4) require the hospital district to refund to the council all or a portion of the money received by the hospital district under this section; and

(5) exercise any other legal remedies available at law.

(o) Money refunded to the council under subsection (n) of this section shall be retained by the council for future allocation to hospital districts under this section.

(p) Except as otherwise provided in this section, this section and §16.200 of this subchapter are the only provisions in this subchapter that apply to the allocation of money to hospital districts under Government Code, §403.508(a)(2).

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 15, 2026.

TRD-202600132

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Earliest possible date of adoption: March 1, 2026

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

The Comptroller of Public Accounts proposes 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. 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.

Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed repeal is in effect, the repeal: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.

Mr. Reynolds also has determined that the proposed rules repeal would have no fiscal impact on the state government, units of local government, or individuals. The proposed repeal would benefit the public by improving the clarity and organization of the chapter. There would be no anticipated economic cost to the public. The proposed repeal would have no fiscal impact on small businesses or rural communities.

You may submit comments on the proposal or information related to the cost, benefit, or effect of the proposal, including any applicable data, research or analysis, to Katy Fallon-Brown, Director, Opioid Abatement Fund Council, P.O. Box 13528 Austin, Texas 78711 or to the email address: OAFC.Public@cpa.texas.gov. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.

The repeals are proposed 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.

§16.207. Authorized Officials.

§16.213. Use of Council's Grant Management System.

§16.216. Grant Reduction or Termination.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 15, 2026.

TRD-202600130

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Earliest possible date of adoption: March 1, 2026

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

SUBCHAPTER G. SHERIFF IMMIGRATION LAW ENFORCEMENT GRANT PROGRAM

The Comptroller of Public Accounts proposes new §16.550, concerning definitions; §16.551, concerning applications; §16.552, concerning comptroller review; §16.553, concerning grant agreement; §16.554, concerning authorized uses of grant funds; §16.555, concerning reporting and compliance; and §16.556, concerning fiscal year 2026 application period. These new sections will be located in 34 TAC Chapter 16, new Subchapter G, Sheriff Immigration Law Enforcement Grant Program.

The legislation enacted in the last four years that provides statutory authority is Senate Bill 8, 89th Legislature, R.S., 2025. Senate Bill 8 establishes a new grant program to assist sheriffs participating in immigration law enforcement agreements.

Section 16.550 provides definitions.

Section 16.551 describes the application process.

Section 16.552 describes comptroller review.

Section 16.553 describes the requirements for grant agreements.

Section 16.554 describes the authorized uses of grant funds and limitations on uses of grant funds.

Section 16.555 describes reporting requirements and available remedies for noncompliance.

Section 16.556 describes the Fiscal Year 2026 application period.

Brad Reynolds, Chief Revenue Estimator, has determined that during the first five years that the proposed new rules are in effect, the rules: will not create or eliminate a government program; will not require the creation or elimination of employee positions; will not require an increase or decrease in future legislative appropriations to the agency; will not require an increase or decrease in fees paid to the agency; will not increase or decrease the number of individuals subject to the rules' applicability; and will not positively or adversely affect this state's economy.

Mr. Reynolds also has determined that the proposed new rules would have no significant fiscal impact on the state government, units of local government, or individuals. The proposed new rules would benefit the public by fulfilling a statutory requirement and establishing a program. There would be no economic cost to the public. The proposed new rules would have no fiscal impact on small businesses or rural communities.

You may submit comments on the proposal or information related to the cost, benefit, or effect of the proposal, including any applicable data, research or analysis, to Russell Gallahan, Manager, Local Government & Transparency, P.O. Box 13528 Austin, Texas 78711 or to the email address: sheriff.grants@cpa.texas.gov. The comptroller must receive your comments or other information no later than 30 days from the date of publication of the proposal in the Texas Register.

The new sections are proposed under Government Code, §753.104, which requires the comptroller to adopt rules to implement a new grant program to assist sheriffs participating in immigration law enforcement agreements.

The new sections implement Government Code, §753.104.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 15, 2026.

TRD-202600138

Victoria North

General Counsel for Fiscal and Agency Affairs

Comptroller of Public Accounts

Earliest possible date of adoption: March 1, 2026

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

CHAPTER 20. STATEWIDE PROCUREMENT AND SUPPORT SERVICES

SUBCHAPTER E. SPECIAL CATEGORIES OF CONTRACTING

PART 4. EMPLOYEES RETIREMENT SYSTEM OF TEXAS

CHAPTER 75. HAZARDOUS PROFESSION DEATH BENEFITS

The Employees Retirement System of Texas (ERS) proposes amendments to 34 Texas Administrative Code Ch. 75, concerning Hazardous Profession Death Benefits, by amending §75.1 (Filing of Claims), §75.2 (Additional Benefit Claims), and §75.3 (Adjustments to Payments).

ERS administers a constitutional trust fund as set forth in Article XVI, §67, Texas Constitution; Title 8, Tex. Gov't Code; and 34 Texas Administrative Code, §§61.1 et seq. ERS also administers benefits for the survivors of peace officers, fire fighters, and other similar public servants under Tex. Gov't Code Ch. 615.

Sections 75.1 - 75.3, concerning Hazardous Profession Death Benefits, are proposed to be amended in order to simplify and clarify the process for submitting an application for benefits.

GOVERNMENT GROWTH IMPACT STATEMENT

ERS has determined that during the first five-year period the amended rules will be in effect:

(1) the proposed amendments will not eliminate a government program;

(2) implementation of the proposed amendments will not require the creation of new employee positions or eliminate existing employee positions;

(3) implementation of the proposed amendments will not require an increase or decrease in future legislative appropriations to the agency;

(4) the proposed amendments will not require an increase or decrease in fees paid to the agency;

(5) the proposed amendments will not create a new rule or regulation;

(6) the proposed amendments will not expand an existing rule or regulation and will not repeal an existing rule or regulation;

(7) the proposed amendments will not increase or decrease the number of individuals subject to the rules' applicability; and

(8) the proposed amendments will not positively or adversely affect the state's economy.

Mr. Bernie Hajovsky, Director of Customer Benefits, has determined that for the first five-year period the rules are in effect, there will be no fiscal implications for state or local government or local economies as a result of enforcing or administering the rules; and small businesses, micro-businesses, and rural communities will not be affected.

The proposed amendments to the rule will clarify and simplify the process for submitting an application for benefits. The proposed amendments do not constitute a taking. Mr. Hajovsky has also determined that, to his knowledge, there are no known anticipated economic effects to persons who are required to comply with the rule as proposed, and the proposed amendments do not impose a cost on regulated persons.

Mr. Hajovsky also determined that for each year of the first five years the amended rules are in effect, the public benefit anticipated as a result of adopting and complying with the rules is that the process for submitting an application for benefits will be clarified and simplified.

Comments on the proposed amendments may be submitted to Cynthia C. Hamilton, General Counsel, Employees Retirement System of Texas, P.O. Box 13207, Austin, Texas 78711-3207, or you may email Ms. Hamilton at general.counsel@ers.texas.gov. The deadline for receiving comments is Monday, March 2, 2026, at 10:00 a.m.

The amendments are proposed under Tex. Gov't Code §615.002, which provides authorization for the ERS Board of Trustees to adopt rules necessary for the administration of Tex. Gov't Code Ch. 615.

No other statutes are affected by the proposed amendments and rules.

§75.1. Filing of Claims.

(c) The following documents [or copies of the documents shall be submitted in an application for benefits under Texas Government Code, Chapter 615, unless the executive director or designee waives their submission] must accompany an application for benefits:

(2) a certified copy of the death certificate;

(3) a certified copy of the autopsy report, [only] if an autopsy has been performed [requested by the system];

(4) [a copy of the marriage certificate showing marriage between the] for a surviving spouse: [and the deceased;]

(5) a certified copy of the birth certificate for [of] each surviving child [of the deceased];

(6) [(7)] [certified] copies of official [any investigative] reports regarding the death;

(7) [(8)] a sworn statement from the employer or the employer's authorized representative that includes the decedent's official job description as an attachment and describes: [of the department detailing the facts and circumstances of the fatality, and any information relied upon in making the sworn statement. The employer's or department representative's sworn statement must also include facts showing that, at the time of the fatal injury, the deceased held a position covered by the terms of Texas Government Code, Chapter 615, and that the death resulted from a personal injury sustained in the line of duty, as provided by Government Code §615.021;]

(8) [(9)] for a surviving parent who applies for benefits, a certified copy of the decedent's birth certificate[, if benefits are being claimed for parents];

(9) [(10)] documentation [a certification] from the appropriate authority which demonstrates [as follows]:

(A) if the decedent was a [paid] law enforcement officer, as described [defined] in Tex. Gov't [Texas Government] Code, §615.003(1), [a certification from the Texas Commission on Law Enforcement Officer Standards and Education] that the decedent was a commissioned peace officer certified by the Texas Commission on Law Enforcement [that commission];

(B) if the decedent was a fire protection professional [paid fireman], as described [defined] in Tex. Gov't [Texas Government] Code, §615.003(10) or §615.003(11), [a certification from the Commission on Fire Protection Personnel Standards and Education] that the decedent was certified by the Texas Commission on Fire Protection [that commission, or a certification from the head of the state agency or political or legal subdivision of the state for whom the decedent worked that aircraft crash and rescue fire fighting were the decedent's principal duties at the time of his or her death];

(C) if the decedent was a member of an organized volunteer fire department, as described [defined] in Tex. Gov't [Texas Government] Code, §615.003(12), [a certification from the head of the organized volunteer fire department] that the decedent was a member of an organized volunteer fire department that conducted [conducts] a minimum of two drills each month, with each drill being at least two hours long, and the decedent rendered fire-fighting [fire fighting] services without remuneration;

(D) if the decedent was a [paid] probation officer, as described [defined] in Tex. Gov't [Texas Government] Code, §615.003(2), [a certification from the district judge or district judges who appointed the decedent or for whom the decedent worked] that the decedent had the qualifications and duties described [set out] in Tex. Gov't Code § 76.002 and § 76.005 [the Texas Code of Criminal Procedure, Article 42.12, §10, 1965, as amended];

(E) if the decedent was a [paid] parole officer, as described [defined] in Tex. Gov't [Texas Government] Code, §615.003(3), [a certification from the executive director of the Board of Pardons and Paroles] that the decedent was a parole [an] officer [of the division of parole supervision and had] with the qualifications and duties described [set out] in Tex. Gov't Code § 508.001 and § 508.113 [the Texas Code of Criminal Procedure, Article 42.12, §§26-29, 1965, as amended];

(F) if the [applicant alleges that the] decedent was a jailer or guard as described [within the protected class defined as supervisory personnel in a county jail] in Tex. Gov't [Texas Government] Code, §615.003(7), [a certification by the sheriff] that the decedent was appointed by the sheriff [as jailer or guard of a county jail] and performed a security, custodial [custody], or supervisory function over the admittance, confinement, or discharge of prisoners, and [a certification from the Texas Commission on Law Enforcement Officer Standards and Education] that the decedent was certified by the Texas Commission on Law Enforcement [that commission];

(G) if [the applicant alleges that] the decedent was an individual who performed [within the protected class defined as performing] emergency medical services or operated [operation of] an ambulance as described in Tex. Gov't [Texas Government] Code, §615.003(13), [a certification by the Texas Department of Health] that the decedent was certified as at least an "emergency care attendant"; or [emergency care attendant;]

(H) if [the applicant alleges that] the decedent was [within the protected class defined as] a chaplain as described in Tex. Gov't [Texas Government] Code, §615.003(14), [a certification by the firefighting unit, law enforcement agency, Texas Department of Criminal Justice, or a political subdivision of this state] that the decedent was employed or formally designated as a chaplain by a specified fire department or law enforcement agency or by the Texas Department of Criminal Justice.

(10) [(12)] for decedent's non-biological children, a copy of a transcript of the federal income tax return for [filed by] the decedent for [in] the year preceding the year of the decedent's [prior to] death[, if benefits are being claimed for surviving children]; and

(11) [(13)] copies of [all] documents submitted in connection with a claim for workers' compensation benefits [by or on behalf of the decedent or the decedent's beneficiary] and [all notices of] decisions related to the [a workers' compensation] claim, if requested by the system [a workers' compensation claim has been made related to the illness or injury that resulted in the decedent's death].

(d) [(e)] For [Payment on behalf of] a survivor who is a minor child: [will be made only to a surviving natural parent with custody of the child, to a surviving adoptive parent with custody of the child, or to a court-appointed guardian of the child's estate.]

§75.2. Additional Benefit Claims.

(a) In addition to the documents required under §75.1 of this chapter, the following documents must accompany a surviving spouse's [shall be submitted in an] application for benefits under Tex. Gov't Code Chapter 615, Subchapter F[, unless the executive director or the executive director's designee waives their submission]:

(1) a sworn statement from the surviving spouse, on a form prescribed by the system, that attests to the surviving spouse's eligibility for spousal benefits; and [person making the claim that:]

(A) the decedent, on the date of death, was not receiving and was not eligible to receive an annuity under an employee retirement plan;]

(B) the surviving spouse, if any, has not remarried;]

(C) the surviving spouse, if any, is not retired and is not eligible to retire under an employee retirement plan; and]

(D) the surviving spouse, if any, is not receiving and is not eligible to receive social security benefits; and]

(2) an itemized statement of funeral expenses incurred, if the application includes a claim for payment of funeral expenses.

(b) If the decedent died before September 1, 2022, then except as provided by subsection (e) of this section, an annuity payable to a surviving spouse who is eligible for benefits under Tex. Gov't Code Chapter 615, Subchapter F, shall be computed as provided by Tex. Gov't Code §814.105 as if the decedent, on the date of death:

(1) was employed by the Texas Department of Public Safety at the lowest salary provided by the General Appropriations Act for a peace officer position, if the decedent held a peace officer position on the date of death, or by the Texas Department of Criminal Justice at the lowest salary provided by the General Appropriations Act for a custodial personnel position, if the decedent held a custodial personnel position on the date of death;

(2) had accrued 10 years of service credit in the applicable position; and

(3) was eligible to retire without regard to any age requirement.

(c) If the decedent died on or after September 1, 2022, then except as provided by subsection (e) of this section, a surviving spouse who is eligible for benefits under Tex. Gov't Code Chapter 615, Subchapter F, is entitled to receive the greater of an annuity computed as provided by subsection (b) of this section or an annuity computed as provided by Tex. Gov't Code §820.053 as if the decedent, on the date of death:

(1) was employed by the Texas Department of Public Safety at the lowest salary provided by the General Appropriations Act for a peace officer position, if the decedent held a peace officer position on the date of death, or by the Texas Department of Criminal Justice at the lowest salary provided by the General Appropriations Act for a custodial personnel position, if the decedent held a custodial personnel position on the date of death;

(2) had accrued 10 years of service credit in the applicable position;

(3) was eligible to retire without regard to any age requirement; and

(4) was not eligible for the additional benefit provided by Tex. Gov't Code §820.053(a)(2)(B).

(d) For purposes of subsection (c) of this section, the system shall:

(1) include gain sharing interest in the computation of an annuity under Tex. Gov't Code §820.053;

(2) determine which annuity computation would result in the greater annuity at the time the annuity is first paid; and

(3) allow the surviving spouse to reject the system's determination and elect to receive the lesser annuity by providing written notice of the election, which shall be irrevocable, to the system before any payment is made.

(e) In lieu of an amount computed under subsection (b) or (c) of this section, an annuity shall be paid in the amount the decedent would have been eligible to receive under the decedent's employee retirement plan if the decedent had been eligible to retire at the age and with the service attained on the last day of the month of the decedent's death if:

(1) the surviving spouse [person making the claim] requests payment of the amount computed under this subsection before any payment computed under subsection (b) or (c) of this section is made;

(2) an authorized representative of the employee retirement plan in which the decedent was a participant certifies the amount computed under this subsection; and

(3) the amount computed under this subsection is greater than the amounts computed under subsections (b) and (c) of this section.

(f) The reduction factors applied to a death benefit plan administered by the system shall be applied in the same manner to an annuity computed under subsection (b) or (c) of this section.

(g) As a condition of receipt of an annuity under Tex. Gov't Code Chapter 615, Subchapter F, an eligible surviving spouse shall agree to annually certify the spouse's eligibility under subsection (a)(1)(B) - (D) of this section and to notify the system of any change in circumstances affecting the spouse's continued eligibility. Failure to comply with this requirement or to provide the agreed certification is a basis for suspension of annuity payments until compliance occurs.

(h) The amount reimbursed for funeral expenses under Tex. Gov't Code Chapter 615, Subchapter F, may [shall] not exceed the lesser of $6,000 or the amount of funeral expenses actually incurred.

§75.3. Adjustments to Payments.

Beginning on September 1, 2020, and on each September 1 thereafter, any lump sum payment payable to eligible survivors under Tex. Gov’t Code §615.022(d) [Section 615.022(d), Texas Government Code,] shall be adjusted annually by an amount equal to the percentage change in the Consumer Price Index for All Urban Consumers for the previous calendar year. The annual adjustment will be an amount as reported by the system's consulting actuary and approved by the executive director.

The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority to adopt.

Filed with the Office of the Secretary of State on January 12, 2026.

TRD-202600086

Cynthia Canfield Hamilton

General Counsel and Chief Compliance Officer

Employees Retirement System of Texas

Earliest possible date of adoption: March 1, 2026

For further information, please call: (512) 867-7288