Senate Study Bill 1226 - Introduced SENATE FILE _____ BY (PROPOSED COMMITTEE ON APPROPRIATIONS BILL BY CHAIRPERSON KRAAYENBRINK) A BILL FOR An Act relating to the opioid settlement fund, making 1 appropriations, and including effective date provisions. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 2130XC (3) 91 lh/ko

S.F. _____ Section 1. Section 12.51, subsection 2, Code 2025, is 1 amended to read as follows: 2 2. a. Moneys in the fund shall not be transferred, used, 3 obligated, appropriated, or otherwise encumbered except as 4 provided in this section . Moneys in the fund shall only be 5 used pursuant to appropriations from the fund by the general 6 assembly for purposes of abating the opioid crisis in this 7 state, which may include but are not limited to the purposes 8 specified in section 135.190A for moneys in the opioid 9 antagonist medication fund. 10 b. (1) Annually, the department of health and human 11 services and the office of the attorney general shall each 12 submit a proposed legislative bill pursuant to section 2.16, 13 subsection 2, containing recommended appropriations from the 14 fund to the respective entity for the upcoming fiscal year. To 15 ensure equitable statewide services, the department of health 16 and human services and the attorney general shall consider 17 the recommendations for the proposed legislative bill from 18 each district behavioral health advisory council established 19 pursuant to 2024 Iowa Acts, ch. 1161, §5. The proposed 20 legislative bills must provide that seventy-five percent 21 of the unencumbered and unobligated moneys in the fund are 22 appropriated to the department of health and human services, 23 and twenty-five percent of the unencumbered and unobligated 24 moneys in the fund are appropriated to the office of the 25 attorney general. The department of health and human services 26 and the office of the attorney general shall disburse moneys 27 appropriated from the fund in accordance with the requirements 28 of the master settlement agreements, the Act in which the 29 moneys are appropriated, and this section. The moneys 30 disbursed by the department of health and human services and 31 the office of the attorney general pursuant to an appropriation 32 from the fund shall be accompanied by a statement on any 33 printed or marketing materials that the funding is a one-time 34 allocation from the opioid settlement fund. 35 -1- LSB 2130XC (3) 91 lh/ko 1/ 4

S.F. _____ (2) The department of health and human services and the 1 office of the attorney general shall submit a report jointly or 2 individually by January 1, 2027, and by January 1 every year 3 thereafter, to the general assembly detailing the disbursements 4 from the immediately preceding fiscal year and, if applicable, 5 the impact of the disbursements on Iowans. 6 Sec. 2. OPIOID SETTLEMENT FUND —— APPROPRIATIONS —— 7 FY 2024-2025. 8 1. There is appropriated from the opioid settlement fund 9 created in section 12.51 to the department of health and human 10 services for the fiscal year beginning July 1, 2024, and ending 11 June 30, 2025, the following amounts, or so much thereof as is 12 necessary, to be used for the purposes designated: 13 a. To provide grants to nonprofit organizations 14 headquartered in a city with a population between 24,500 and 15 25,000 as determined by the 2020 federal decennial census, that 16 are members of the Iowa substance use and problem gambling 17 services integrated provider network and specialize in the 18 treatment and prevention of co-occurring mental health and 19 substance use disorders for adolescents and adults, to be used 20 for renovation and expansion of a nature-based recovery campus 21 to provide co-occurring assessment, treatment, and prevention 22 services for both adolescents and adults who are suffering 23 from mental health and substance use disorders, including 24 outpatient, residential treatment, and detoxification: 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,000,000 26 b. To abate the opioid crisis in the state as described in 27 section 12.51, subsection 2: 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000,000 29 2. Notwithstanding section 8.33, moneys appropriated in 30 this section that remain unencumbered or unobligated at the 31 close of the fiscal year shall not revert but shall remain 32 available for expenditure for the purposes designated until the 33 close of the succeeding fiscal year. 34 Sec. 3. EFFECTIVE DATE. This Act, being deemed of immediate 35 -2- LSB 2130XC (3) 91 lh/ko 2/ 4

S.F. _____ importance, takes effect upon enactment. 1 EXPLANATION 2 The inclusion of this explanation does not constitute agreement with 3 the explanation’s substance by the members of the general assembly. 4 This bill relates to and makes appropriations from the 5 opioid settlement fund (fund). 6 The bill provides that annually, the department of health 7 and human services (HHS) and the office of the attorney general 8 (AG) shall each submit a proposed legislative bill by the 9 prefiling deadline for departments containing recommended 10 appropriations from the fund for the upcoming fiscal year. 11 To ensure equitable statewide services, HHS and the AG shall 12 consider recommendations for the proposed legislative bill from 13 each district behavioral health advisory council. The proposed 14 legislative bills shall provide that of the unencumbered and 15 unobligated moneys in the fund, 75 percent is appropriated 16 to HHS and 25 percent is appropriated to the AG. Moneys 17 appropriated to HHS or the AG shall be disbursed in accordance 18 with the requirements of the master settlement agreements, 19 the Act in which the money is appropriated, and the bill, and 20 shall be accompanied by a statement on any printed or marketing 21 materials that the funding is a one-time allocation from the 22 fund. 23 The bill requires HHS and the AG to submit a report jointly 24 or individually to the general assembly by January 1, 2027, and 25 by January 1 each subsequent year, detailing the disbursements 26 from the immediately preceding fiscal year, including the 27 impact of the disbursements. 28 The bill appropriates $12 million for FY 2024-2025 from 29 the fund to HHS to provide grants to nonprofit organizations 30 headquartered in a city with a population between 24,500 and 31 25,000 as determined by the 2020 federal decennial census, that 32 are members of the Iowa substance use and problem gambling 33 services integrated provider network and specialize in the 34 treatment and prevention of co-occurring mental health and 35 -3- LSB 2130XC (3) 91 lh/ko 3/ 4

S.F. _____ substance use disorders for adolescents and adults, for 1 purposes of renovation and expansion of a campus as detailed 2 in the bill. 3 The bill also appropriates $30 million for FY 2024-2025 from 4 the fund to HHS to abate the opioid crisis in the state. 5 The bill takes effect upon enactment. 6 -4- LSB 2130XC (3) 91 lh/ko 4/ 4