HSB 331 (LSB 2991YC (7) 91)

HOUSE FILE _____ 

BY  (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON MOHR)

A BILL FOR

An Act relating to the opioid settlement fund, creating an opioid reserve account, requiring a report to the general assembly, and making appropriations.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:

    Section 1.  Section 12.51, Code 2025, is amended to read as follows:
   12.51  Opioid settlement fund.
   1.  As used in this section unless the context otherwise requires:
   a.  “Administrative services organization” means the same as defined in section 225A.1, as enacted in 2024 Iowa Acts, ch. 1161, §1.
   b.  “Behavioral health district” means the same as defined in section 225A.1, as enacted in 2024 Iowa Acts, ch. 1161, §1.
   c.  “Behavioral health provider” means the same as defined in section 225A.1, as enacted in 2024 Iowa Acts, ch. 1161, §1.
   d.  “Department” means the department of health and human services.
   e.  “District behavioral health advisory council” means the same as defined in section 225A.1, as enacted in 2024 Iowa Acts, ch. 1161, §1.
   f.  “Evaluation panel” means a group whose members include all of the following:
   (1)  The attorney general or the attorney general’s designee.
   (2)  The director of the department or the director’s designee.
   (3)  The drug policy director of the office of drug control policy or the director’s designee.
   1.  2.  a.  An opioid settlement fund is created in the office of the treasurer of state. The fund shall be separate from the general fund of the state and the balance in the fund shall not be considered part of the balance of the general fund of the state.
   b.  The state portion of any moneys paid to the state as a result of a national settlement of litigation with entities that manufactured, marketed, sold, distributed, dispensed, or promoted opioids, made in connection with claims arising from the manufacturing, marketing, selling, distributing, dispensing, or promoting of opioids, shall be deposited in the fund.
   c.  This subsection does not apply to such moneys paid to the state that are earmarked for or otherwise required to be transferred or distributed to counties, cities, or other local governmental entities.
   2.  3.  a.  Moneys in the fund shall not be transferred, used, obligated, appropriated, or otherwise encumbered except as provided in this section.
   b.  Moneys in the fund shall only be used pursuant to appropriations from the fund by the general assembly for purposes of abating the opioid crisis in this state, which may include but are not limited to the purposes specified in section 135.190A for moneys in the opioid antagonist medication fund.
   3.  c.  Notwithstanding section 8.33, moneys in the fund that remain unencumbered or unobligated at the close of a fiscal year shall not revert. Notwithstanding section 12C.7, subsection 2, interest or earnings on moneys in the fund shall be credited to the fund.
   4.  For each fiscal year for the period beginning July 1, 2025, and ending June 30, 2028, there is appropriated from the fund to the department the following amounts:
   a.  Nine million one hundred thousand dollars for distribution to administrative services organizations to facilitate crisis response, early intervention, treatment, and recovery of opioid addiction for the behavioral health district for which an administrative services organization has been designated.
   (1)  To receive moneys under this paragraph, an administrative services organization must submit a proposal, related to the behavioral health district for which the administrative services organization has been designated, to the evaluation panel that contains all of the following:
   (a)  Proposed uses of the moneys by the behavioral health district that are sustainable, effective, and evidence-based.
   (b)  A list of the current opioid-related initiatives within the behavioral health district that are funded by moneys from the national settlements that are earmarked for or otherwise required to be transferred or distributed to counties, cities, or other local governmental entities.
   (2)  The evaluation panel shall review each proposal to ensure that the proposal conforms to the requirements and limitations of the master settlement agreements.
   (3)  The evaluation panel shall approve or deny each proposal, and shall give priority to proposals that include documentation of evidence-based practices that effectively address opioid addiction.
   b.  Three million nine hundred thousand dollars for the following purposes:
   (1)  Statewide prevention initiatives that comply with the master settlement agreements.
   (2)  The department shall conduct an evaluation of each program and service funded by moneys from the fund. The department’s evaluation must include measurable outcomes as determined by the evaluation panel.
   5.  There is created in the fund an opioid reserve account under the control of the department, consisting of moneys appropriated to the account. The moneys in the account are appropriated to the department to support behavioral health districts’ efforts to increase capacity for opioid-related services.
   a.  An administrative services organization may submit an application to the evaluation panel for moneys to facilitate a behavioral health district’s efforts to increase capacity for opioid-related services by increasing the number of behavioral health providers.
   b.  The application must demonstrate the behavioral health district’s need to increase capacity for opioid-related services in the behavioral health district, and the ability to sustain the increased capacity.
   c.  The evaluation panel shall review, and accept or deny, each application from an administrative services organization.
   6.  a.  For each fiscal year for the period beginning July 1, 2026, and ending June 30, 2028, the department shall submit a report to the general assembly on or before September 1 of the fiscal year that contains the following:
   (1)  Recommendations from each district behavioral health advisory council for future disbursements from the fund.
   (2)  The evaluation conducted by the department pursuant to subsection 4, paragraph “b”, for the immediately preceding fiscal year.
   b.  The department shall make each report publicly available on the department’s internet site.
    Sec. 2.  OPIOID RESERVE ACCOUNT.  There is appropriated from the opioid settlement fund created in section 12.51 to the department of health and human services for the fiscal year beginning July 1, 2025, and ending June 30, 2026, the following amount, to be deposited in the opioid reserve account created by this Act:
   ...................................................................... $ 20,000,000
EXPLANATION
The inclusion of this explanation does not constitute agreement with
the explanation’s substance by the members of the general assembly.
   This bill relates to the opioid settlement fund (fund), creates an opioid reserve account (account), and requires a report to the general assembly.
   The bill provides a standing appropriation from the fund to the department of health and human services (HHS) for FY 2025-2026, FY 2026-2027, and FY 2027-2028. For each of the fiscal years, $9.1 million is appropriated to HHS for distribution to administrative services organizations (ASO) to facilitate crisis response, early intervention, treatment, and recovery of opioid addiction in the ASO’s behavioral health district (district). To receive moneys, an ASO must submit a proposal to an evaluation panel (panel) containing the proposed uses of the moneys by the district, and a list of the current opioid-related initiatives within the district funded by moneys from the national settlements that are earmarked for or otherwise required to be transferred or distributed to counties, cities, or other local governmental entities. The attorney general, the director of HHS, and the drug policy director of the office of drug control policy, or their designees, make up the panel. The panel shall review, and approve or deny, each proposal, and give priority to proposals containing documentation of evidence-based practices that effectively address opioid addiction. 
   For each fiscal year, $3.9 million is appropriated to HHS for statewide prevention initiatives, and for HHS to conduct an evaluation of each program and service funded by moneys from the fund. HHS’s evaluation must include measurable outcomes as determined by the panel.
   The bill creates an account in the fund under the control of HHS to support districts’ efforts to increase capacity for opioid-related services (services). An ASO may submit an application to the panel for moneys to facilitate a district’s efforts to increase capacity for services by increasing the number of behavioral health providers. The ASO’s application must demonstrate the district’s need to increase capacity for services in the district, and the ability to sustain the increased capacity. The panel shall review, and approve or deny, each application from an ASO.
   The bill requires HHS to submit a report to the general assembly for FY 2025-2026, FY 2026-2027, and FY 2027-2028 on or before September 1 containing recommendations from each district behavioral health advisory council for future disbursements from the fund, and the evaluation conducted by HHS for the immediately preceding fiscal year. HHS shall make each report publicly available on HHS’s internet site.
   The bill appropriates from the fund to HHS $20 million for FY 2025-2026 to be deposited in the account.