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SSB 1226

A bill for an act relating to the opioid settlement fund, making appropriations, and including effective date provisions.

2025-2026 Regular Session

Creates a formal annual process to allocate opioid settlement funds, splitting 75% to HHS and 25% to the AG, plus a $12 million one-time grant to Iowa nonprofits in small cities.

Committee report approving bill, renumbered as SF 624.
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Bill Summary · SSB 1226

Summary of SSB 1226 (renumbered as SF 624)

Overview

SSB 1226, introduced April 9, 2025, relates to the state’s opioid settlement fund and makes appropriations from that fund. The bill was approved by a committee and renumbered as SF 624. It provides a framework for annual spending from the opioid settlement fund, including a specific one-time appropriation to health and human services (HHS) and ongoing reporting requirements to the General Assembly. The bill takes effect upon enactment.

Purpose and intent

  • To allocate and monitor funds remaining in the opioid settlement fund, ensuring uses align with the state’s settlement obligations and statewide service needs.
  • To create a recurring process in which HHS and the Office of the Attorney General (AG) propose annual appropriations for the fund and seek district input to promote equitable statewide services.

Key provisions

Annual allocation process

  • Each year, HHS and the AG must submit proposed legislative bills (with recommended appropriations from the fund) by the prefiling deadline for the upcoming fiscal year.
  • Recommendations from each district behavioral health advisory council must be considered in shaping the proposed legislation.

Distribution of unencumbered funds

  • Of the unencumbered and unobligated moneys in the fund, 75% must be appropriated to HHS and 25% to the AG.
  • Disbursements to HHS or the AG must comply with:
    • Master Settlement Agreements
    • The Act under which the money is appropriated
    • The bill itself
  • Any funding provided must be accompanied by a statement indicating the funding is a one-time allocation from the fund (for printed/marketing materials).

Reporting

  • HHS and the AG must jointly or individually report to the General Assembly by January 1, 2027, and by January 1 of each subsequent year.
  • Reports must detail disbursements from the preceding fiscal year and include the impact of those disbursements.

Specific appropriation (FY 2024-2025)

  • The bill appropriates $12 million from the opioid settlement fund to HHS for grants to nonprofit organizations headquartered in Iowa cities with populations between 24,500 and 31,000 (per the 2020 Census).
  • Eligible nonprofits must be members of the Iowa Substance Use and Problem Gambling Services Integrated Provider Network and specialize in treatment and prevention of co-occurring mental health and substance use disorders.

Affected entities and stakeholders

  • Iowa Department of Health and Human Services (HHS)
  • Office of the Attorney General (AG)
  • Nonprofit organizations meeting the specified criteria
  • District behavioral health advisory councils
  • Iowa General Assembly (through reporting and appropriation processes)

Procedural and timeline notes

  • Introduced: April 9, 2025
  • Subcommittee: April 9, 2025 (Kraayenbrink, Costello, Petersen)
  • Subcommittee meeting: April 14, 2025
  • Subcommittee action: April 14, 2025
  • Committee action: April 15, 2025 (bill renumbered as SF 624)
  • Effective date: Upon enactment

Potential impact

  • Creates statutory discipline for allocating opioid settlement funds with a clear 75/25 split between HHS and AG.
  • Establishes ongoing accountability via annual reporting on fund disbursements and impacts.
  • Directs a targeted, one-time grant program to small Iowa cities for organizations addressing co-occurring mental health and substance use treatment and prevention.
  • Aims to promote equitable statewide service provision through advisory council input.

Compiled from official sources — confirm details with the bill’s official record.

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