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Signed Into Law
Signed May 30, 2025Effective 2025-09-01
SB1901

Regular Session

Relating to the administration of the Texas Opioid Abatement Fund Council and Texas Opioid Abatement Trust Fund.

Government Affairs & Regulatory Compliance Analysis

SB1901: Government Affairs Overview

SB1901 transitions the Texas Opioid Abatement Fund from a setup phase to an enforcement phase, imposing strict "use it or lose it" financial controls on local governments and rigorous conflict of interest (COI) protocols for grant applicants. Municipalities and counties now face automatic forfeiture of allocated funds if not deposited within two years, while private entities and non-profits applying for discretionary grants must now screen for "professional interests" regarding Council members to avoid disqualification.

Sen. Joan Huffman·Senate Bill·Regular Session

Moderate
Low Cost
Effective:2025-09-01
Enforcing Agencies

Texas Opioid Abatement Fund Council • Texas Treasury Safekeeping Trust Company

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SB1901
Moderate
Relating to the administration of the Texas Opioid Abatement Fund Council and Texas Opioid Abatement Trust Fund.
Moderate Compliance Urgency
Requires near-term attention
Cost Impact
Low
Effective
2025-09-01
Enforcing Agencies
Texas Opioid Abatement Fund CouncilTexas Treasury Safekeeping Trust...
Primary Author: Sen. Joan Huffman
89th Texas Legislature
jdkey.com
01

Compliance Analysis

Key implementation requirements and action items for compliance with this legislation

Implementation Timeline

  • Effective Date: September 1, 2025
  • Compliance Deadline: September 1, 2025.
  • *Critical Warning:* The two-year forfeiture clock applies to the *date of distribution*. If your entity holds a check distributed prior to September 2023, you risk immediate forfeiture upon the law's effective date.
  • Agency Rulemaking: The Texas Opioid Abatement Fund Council has discretionary authority to adopt additional COI standards. Expect rulemaking in late 2025 to define "professional interest," likely broadening the scope of required recusals.

Immediate Action Plan

  • Audit Uncashed Checks (Local Gov): Immediately inventory all opioid settlement checks. Deposit any check older than 18 months *now* to avoid the 2-year forfeiture cliff.
  • Screen Leadership (Applicants): Run a conflict check of your key personnel against the Council roster before submitting any grant application.
  • Update Intake Forms: Add a specific question to vendor and board intake forms: *"Do you or a first-degree relative serve on the Texas Opioid Abatement Fund Council?"*
  • Prepare Refusal Templates: If your municipality intends to refuse funds, draft the legal notice of forfeiture now to ensure clean removal from the Trust Company’s liability ledger.

Operational Changes Required

Contracts

  • Grant Agreements: Entities applying for funds must review Master Service Agreements (MSAs). Expect new representations and warranties clauses requiring the disclosure of any relationship with Council members.
  • Vendor Subcontracts: Prime contractors must amend subcontractor agreements to include a COI certification, ensuring no subcontractor creates an undisclosed conflict with the Council.

Hiring/Training

  • Board & Executive Screening: Applicants must implement a mandatory cross-check of their Board of Directors and executive leadership against the current Texas Opioid Abatement Fund Council roster.
  • Finance Department Training: Municipal finance officers must be trained on the new statutory deadline: all opioid settlement distributions must be deposited within 24 months of issuance.

Reporting & Record-Keeping

  • Forfeiture Documentation: Local governments refusing funds must now generate and submit a formal written document to the Texas Treasury Safekeeping Trust Company affirmatively forfeiting the money to trigger reallocation.
  • Recusal Logs: Grant applicants must maintain an internal log of any "affinity or consanguinity" relationships between their leadership and Council members to support recusal requests during the application review process.

Fees & Costs

  • Forfeiture Risk: While there are no new filing fees, the cost of non-compliance is the total loss of allocated settlement funds.
  • Administrative Cost: Minimal increase in administrative overhead for COI screening and tracking deposit deadlines.

Strategic Ambiguities & Considerations

"Professional Interest" vs. "Financial Interest"

The statute mandates recusal for a "professional or financial interest." While "financial interest" is legally concrete, "professional interest" is undefined.

  • *The Risk:* Does a Council member serving on an unpaid advisory board for a non-profit applicant constitute a "professional interest"?
  • *Guidance:* Until the Council issues rules defining this term, assume the broadest interpretation. If a Council member has *any* formal or informal tie to your organization (past employment, mentorship, advisory role), disclose it immediately to avoid allegations of impropriety later.

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Information presented is for general knowledge only and is provided without warranty, express or implied. Consult qualified government affairs professionals and legal counsel before making compliance decisions.

02

Legislative Timeline

This bill's path through the Texas Legislature

Filed
Mar 4, 2025
Passed Senate
Apr 16, 2025
Passed House
May 20, 2025
Signed
May 30, 2025
Effective
Sep 1, 2025
TopicsAlcoholism & Drug AbuseState FinancesState Finances--management & ControlOpioid Abatement Fund Council, TexasEthicsTexas Opioid Abatement Trust Fund
03

Senate Authors

Sen. Joan HuffmanRepublican · Primary Author
Coauthors (1)

House Sponsor

Rep. Greg BonnenRepublican · Primary Sponsor

Bill Text(with markup)

View bill text in multiple formats on Texas Legislature website

Fiscal NoteView Original

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Related by Topic

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Quick Reference

Frequently Asked Questions

Common questions about SB1901

Q

What does Texas SB1901 do?

SB1901 transitions the Texas Opioid Abatement Fund from a setup phase to an enforcement phase, imposing strict "use it or lose it" financial controls on local governments and rigorous conflict of interest (COI) protocols for grant applicants. Municipalities and counties now face automatic forfeiture of allocated funds if not deposited within two years, while private entities and non-profits applying for discretionary grants must now screen for "professional interests" regarding Council members to avoid disqualification.

Q

Who authored SB1901?

SB1901 was authored by Texas Senator Joan Huffman during the Regular Session.

Q

When was SB1901 signed into law?

SB1901 was signed into law by Governor Greg Abbott on May 30, 2025.

Q

Which agencies enforce SB1901?

SB1901 is enforced by Texas Opioid Abatement Fund Council and Texas Treasury Safekeeping Trust Company.

Q

How significant are the changes in SB1901?

The regulatory priority for SB1901 is rated as "moderate". Businesses and organizations should review the legislation to understand potential impacts.

Q

What is the cost impact of SB1901?

The cost impact of SB1901 is estimated as "low". This may vary based on industry and implementation requirements.

Q

What topics does SB1901 address?

SB1901 addresses topics including alcoholism & drug abuse, state finances, state finances--management & control, opioid abatement fund council, texas and ethics.

Q

What are the key dates for SB1901?

Key dates for SB1901: Effective date is 2025-09-01. Rulemaking: May adopt additional conflict of interest standards to implement Section 403.5041 or comply with Chapter 572. (Discretionary/No statutory deadline). Consult with legal counsel regarding applicability.

Q

What are the penalties under SB1901?

SB1901 establishes the following penalties: administrative penalty of Forfeiture of distributed opioid settlement funds for County or municipality fails to deposit distributed money before the second anniversary of the distribution date.. Consult with legal counsel for specific applicability to your situation.

Need Strategic Guidance on This Legislation?

JD Key Consulting is an Austin, Texas-based government affairs firm led by James Dickey, former Chairman of the Republican Party of Texas. We specialize in Texas regulatory compliance and legislative strategy for data centers, energy, banking, and manufacturing.

Legislative data provided by LegiScanLast updated: January 11, 2026