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Bill Summary · HF 978

Summary — HF 978 (introduced March 27, 2025; passed House April 21, 2025)

Purpose

HF 978 establishes a state-regulated program for the production, recommendation, and supervised administration of psilocybin. It creates licensing and registration systems, sets procedural and safety requirements for providers and production establishments, establishes criminal penalties for misuse of program systems, directs studies on other psychedelic compounds and psilocybin efficacy, and declares certain contract and nondiscrimination policies.

Key provisions

  • Creates a Psilocybin Production Establishment Licensing Board (within Iowa HHS) to license production facilities and set rules; board begins accepting license applications July 1, 2026 (FY2027). Boards/roles may be modified by amendment language shifting some authority to the HHS director.
  • Licensing/registration framework:
    • Annual renewal for production licenses (subject to compliance).
    • Provisional licenses allowed if facility address not yet provided; converted upon proof of purchase/lease.
    • Production establishment agents, qualified medical psilocybin providers, qualified medical psilocybin therapists, and qualified therapy provider agents require state registration cards; agent/provider cards expire after two years and are renewable.
    • Qualified medical psilocybin therapist (defined categories include physicians, PAs, ARNPs, psychologists, social workers) must meet training/continuing education, inventory controls, emergency transport plan, and other application requirements before administering treatments.
    • Administration permitted only in registered/approved locations and requires a valid patient recommendation.
  • Patient eligibility: patients must be at least 21 years old. (One fiscal note/version limits recommendations to patients diagnosed with PTSD and caps recommendations statewide at 5,000 — see “Variations” below.)
  • Rules and systems: HHS must adopt administrative rules and — in cooperation with Department of Agriculture & Land Stewardship and DPS — establish an electronic verification system to validate registrations.
  • Reports and studies:
    • HHS to submit an initial annual program participation report by Nov 1, 2025 and annually thereafter.
    • HHS to study other psychedelic compounds and report by Jan 1, 2026.
    • HHS to report on medical efficacy of psilocybin by June 1, 2028 with recommendations.
  • Fees: Application, licensing, renewal, and registration fees established by administrative rule; criminal background check fees to cover DPS costs. Fees deposited into the General Fund as specified.
  • Insurance/employer/FDA: Bill does not require insurers, third‑party administrators, or employers to cover or reimburse psilocybin; does not restrict FDA‑approved prescription distribution.
  • Contracts and nondiscrimination (Amendment H-1260):
    • Declares state public policy that contracts related to production/sale/administration of psilocybin under the chapter are enforceable and cannot be deemed unenforceable solely because federal law prohibits psilocybin.
    • New nondiscrimination provision: state agencies/political subdivisions cannot remove or initiate child removal proceedings solely because a parent used psilocybin as authorized by the chapter.
    • Authorizes HHS rulemaking to allow production and sale of consumable goods containing psilocybin.

Penalties

  • Simple misdemeanor (fines starting at $100): failing to carry registration card; other violations where no other penalty specified.
  • Serious misdemeanor (fine up to $1,000; up to 1 year confinement): negligent/reckless release of information from electronic verification system; intentional/knowing violations or 3+ violations.
  • Class D felony (fine up to ~$10,245; up to 5 years confinement): knowing/intentional improper release or unlawful acquisition/use of information from the electronic verification system.

Fiscal and administrative impact

  • HHS implementation will require additional staff and IT/operational resources. Fiscal note estimates (selected figures):
    • FY2026 personnel cost example: $90,000 (executive officer) — FY2027 personnel ~$233,000 (three positions).
    • Operating costs: estimated ~$224,000 in FY2026 for IT project management/vendor services/hardware; ~$102,000 in FY2027.
  • Criminal justice fiscal impacts noted in fiscal analysis given new offenses; some cost assumptions and projections were included but are partly truncated in available material.

Who is affected

  • State agencies (HHS, DPS, Department of Agriculture), licensed production establishments, registered providers/therapists/agents, patients (age 21+; in one version, PTSD-diagnosed and subject to a 5,000‑patient cap), insurers/employers (not required to pay), and entities entering contracts related to program activities.

Legislative status & timeline

  • Introduced: March 27, 2025. Amendment H‑1260 filed and adopted. Passed House April 21, 2025 (yeas 84, nays 6). Fiscal notes issued May 6, 2025. Licensing begins accepting applications July 1, 2026 per bill language.

Variations: Two fiscal-note versions exist — one frames program for general medical psilocybin; another restricts treatment to PTSD patients and includes a 5,000‑patient limit. Readers should consult the enrolled/amended bill text for final operative provisions.

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

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