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STATE OF IOWA
KIM R EYNOLDS
G OVERNOR
June 6, 2025
The Honorable Paul Pate
Secretary of State of Iowa
State Capitol
Des Moines, Iowa 50319
Dear Mr. Secretary,
I hereby transmit:
House File 1038, an Act relating to the opioid settlement fund, making appropriations
and disbursements, and including effective date and retroactive applicability provisions.
The above House File is hereby approved on this date.
Sincerely,
Kim Reynolds
Governor of Iowa
STATE CAPITOL DES MOINES, IOWA 50319 515.281.5211 WWW.GOVERNOR.IOWA.GOV
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House File 1038
AN ACT
RELATING TO THE OPIOID SETTLEMENT FUND, MAKING APPROPRIATIONS
AND DISBURSEMENTS, AND INCLUDING EFFECTIVE DATE AND
RETROACTIVE APPLICABILITY PROVISIONS.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
DIVISION I
OPIOID SETTLEMENT FUND
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, § l.
b. Behavioral health district means the same as defined in
section 225A.1, as enacted in 2024 Iowa Acts, ch. 1161, § 1.
C. Department" means the department of health and human
services.
d. " District behavioral health advisory council - means the
same as defined in section 225A.1, as enacted in 2024 Iowa
Acts, ch. 1161, § 1.
2. a. An opioid settlement fund is created in the
office of the treasurer of state. The fund shall be separate
House File 1038, p. 2
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. ( 1) 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.
( 2) ( a) For each fiscal year for the period beginning July
1, 2025, and ending June 30, 2030, of the total amount of the
state portion of the moneys paid to the state as described in
paragraph ' b - and deposited in the fund, plus any interest
and earnings on moneys in the fund, seventy-five percent is
appropriated to the department and twenty-five percent is
appropriated to the office of the attorney general for purposes
of abating the opioid crisis in this state.
( b) Notwithstanding section 8.33, moneys appropriated
under subparagraph division ( a) that remain unencumbered and
unobligated at the close of each fiscal year shall not revert
but shall remain available for expenditure for the purposes
designated until June 30, 2030.
( c) Notwithstanding section 12C.7, subsection 2, the
interest or earnings on moneys appropriated under subparagraph
division ( a) are appropriated to the entity receiving the
appropriation to be used for the purposes designated.
( 3) The department and the office of the attorney general
shall do all of the following:
( a) Review each administrative services organization's
proposed uses of the appropriated moneys for crisis response,
early intervention, and treatment for opioid addiction, and
recovery from opioid addiction, for the behavioral health
district for which the administrative services organization has
been designated.
( b) Disburse the moneys appropriated under subparagraph
( 2), subparagraph division ( a), in accordance with the national
opioid settlement agreements and this section.
House File 1038, p. 3
( c) Identify indicators and outcomes applicable to each
disbursement to be used to determine if the services and
activities that are funded achieve the intended outcomes, which
may include prevention of opioid-related deaths, reduction of
opioid misuse, and increased access to opioid use disorder
medications and services.
( d) Submit an annual report on or before November 1 to the
general assembly and the governor that contains all of the
following for the immediately preceding fiscal year:
( i) Information related to each disbursement from the
fund, and if the intended outcomes of each disbursement were
achieved.
( ii) Input from each district behavioral health advisory
council regarding disbursements from the fund, intended
outcomes, and recommendations for future disbursements from the
fund.
( iii) 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.
( e) Adopt rules pursuant to chapter 17A to administer this
paragraph.
( 4) A recipient shall receive no more than one disbursement
under paragraph ' b - , subparagraph ( 3), subparagraph division
b
( 5) The department and the office of the attorney general
may, but are not required to, ensure that moneys appropriated
under subparagraph ( 2) are distributed equally to the
administrative services organizations.
( 6) The department and the office of the attorney general
shall use no more than two and one-half percent of the moneys
appropriated under subparagraph ( 2) for administrative costs.
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.
3. a. Moneys in the fund shall not be transferred,
used, obligated, appropriated, or otherwise encumbered except
House File 1038, p. 4
as provided in this section.
b. Moneys in the fund shall only be used pursuant to
apprepriatiens frem the fund by the general assembi-Y 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.
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.
DIVISION II
OPIOID SETTLEMENT FUND — FY 2024-2025
Sec. 2. OPIOID SETTLEMENT FUND — DEPARTMENT OF HEALTH AND
HUMAN SERVICES.
1. 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, 2024, and ending
June 30, 2025, the following amount, or so much thereof is as
necessary, for the purposes designated:
$ 29,000,000
2. Notwithstanding any provision of law to the contrary, of
the moneys appropriated to the department of health and human
services under subsection 1, the department shall disburse to
the following entities, the following amounts, for the purposes
designated:
a. To a youth- serving nonprofit organization that has been
in existence for at least forty-five years that provides crisis
stabilization, emergency shelter, and residential addiction
treatment, and that is located in a central Iowa county with
a population between ninety-eight thousand and ninety-nine
thousand based on the 2020 federal decennial census, to support
the development of a recovery- focused high school and workforce
training center that integrates education, job training, and
therapeutic support to empower youth in recovery from substance
use disorder to successfully transition into the workforce upon
graduation:
$ 3,000,000
House File 1038, p. 5
b. To an opioid treatment program incorporated as a
nonprofit organization in 1997, that operates fourteen
locations and offers behavioral and medical health care
to patients, and that is licensed in the state to provide
medication- assisted treatment, mental health therapy,
counseling, and primary health care, to expand access to
medication- assisted treatment in rural and underserved areas
of the state through co- located and mobile recovery units
and to collaborate with jail- based screening, assessment,
diagnosis, and treatment service providers to extend support
to incarcerated individuals and individuals who are no longer
incarcerated, and sustain established infrastructure for
dispensing medications for opioid use disorder services in
rural and underserved areas:
$ 5,000,000
c. To the administrative services organization designated
pursuant to section 225A.4, as enacted in 2024 Iowa Acts,
ch. 1161, § 4, to contract with a collaborative mental health
services organization that operates in Iowa to provide
jail- based screening, assessment, diagnosis, and treatment
service providers and system navigation to all county jails, to
ensure inmates receive necessary mental health and substance
use care, regardless of the mental health and substance use
resources available in the county in which the inmate is
incarcerated:
$ 1,500,000
d. To a nonprofit organization headquartered in a western
Iowa county with a population between one hundred thousand and
one hundred six thousand based on the 2020 federal decennial
census, for a recovery project that involves recovery housing
and post- treatment support based on a recovery cafe model, for
individuals in addiction recovery including those experiencing
homelessness and transitioning from incarceration, and the
nonprofit organization provides an appropriate physical
location and a dollar- for- dollar match for each dollar
disbursed to the nonprofit organization:
$ 2,000,000
e. To the administrative services organization designated
pursuant to section 255A.4, as enacted in 2024 Iowa Acts, ch.
House File 1038, p. 6
1161, § 4, to contract with local peer- recovery specialists in
four rural locations in the state to provide post- overdose
response services through emergency departments that connect
individuals and families to post- overdose treatment and
recovery support, and to train peer recovery coaches using the
linkage to outreach referrals and engagement model:
$ 2,000,000
f. To provide grants to nonprofit organizations for each
nonprofit organization to establish recovery community centers,
including for the purchase or lease of physical space and
programming, in behavioral health districts four, five, and
seven to connect members of the recovery community to support,
education, resources, and advocacy:
$ 4,500,000
g. To provide grants to nonprofit organizations to
establish recovery cafes in behavioral health districts
five and seven to support members of the recovery community,
focusing on health maintenance and opioid addiction prevention
by providing a safe environment to cultivate meaningful
connections, compassionate understanding, and a culture of
affirmation that enhances well-being and self-worth:
$ 1,500,000
h. To provide grants to nonprofit organizations in
behavioral health districts one, four, five, and seven
for recovery respite that focuses on women, and women with
children, who are in substance use disorder treatment or
recovery to provide the women appropriate resources to enhance
their recovery efforts and transition to independent living:
$ 1,500,000
i. To provide a grant to a nonprofit organization
headquartered in a city with a population between twenty-four
thousand five hundred and twenty-five thousand based on the
2020 federal decennial census, that is a member of the Iowa
substance use and problem gambling services integrated provider
network and that specializes in treatment and prevention
services, including outpatient, residential treatment, and
detoxification for adolescents and adults who are experiencing
mental health and substance use disorders:
$ 3,000,000
House File 1038, p. 7
j. To provide a grant to a nonprofit organization
headquartered in a county with a population between one hundred
seventy-four thousand and one hundred seventy-five thousand
based on the 2020 federal decennial census, that is a community
mental health center under chapter 230A, and that maintains
or conducts a program licensed under chapter 125 the primary
purpose of which is the treatment and rehabilitation of persons
with a substance use disorder, including outpatient care,
residential care, habilitation homes, crisis stabilization
residential services, assertive community treatment,
multisystemic therapy, and integrated home health and
supportive and affordable housing for adolescents and adults
experiencing substance use or mental health disorders:
$ 2,000,000
3. Notwithstanding any provision of law to the contrary, of
the moneys appropriated to the department of health and human
services under subsection 1, $ 3,000,000 shall be disbursed as
grants to nonprofit organizations that submit a proposal to
the department of health and human services for development of
recovery housing in behavioral health districts that do not
have established recovery housing capacity.
4. a. Moneys disbursed under subsections 2 and 3 shall be
used by the recipient in compliance with the requirements of
the national opioid settlement agreements and section 12.51.
b. A recipient shall utilize the indicators and outcomes
identified by the department of health and human services
and the office of the attorney general under section 12.51,
subsection 2, paragraph " b - , subparagraph ( 3), subparagraph
division ( c), to determine whether the services and activities
that are funded by the disbursement achieve the intended
outcomes, and shall report the recipient's findings to the
department of health and human services and the office of the
attorney general.
c. Moneys disbursed under subsection 2 shall be fully
obligated by the recipient no later than June 30, 2027.
d. A recipient shall receive no more than one disbursement
under subsections 2 and 3.
Sec. 3. EFFECTIVE DATE. This division of this Act, being
deemed of immediate importance, takes effect upon enactment.
House File 1038, p. 8
Sec. 4. RETROACTIVE APPLICABILITY. This division of this
Act applies retroactively to July 1, 2024.
4• PAT GRASSLE
Speaker of the House
AMY SINCWAIR
.1.2-
President of the Senate
I hereby certify that this bill originated in the House and
is known as House File 1038, Ninety-first General Assembly.
Approved , 2025