ARC 9844C

ARC 9844C

HUMAN SERVICES DEPARTMENT[441]

Notice of Intended Action

Proposing rulemaking related to opioid settlement fund disbursement
and providing an opportunity for public comment

    The Department of Health and Human Services hereby proposes to adopt new Chapter 306, “Opioid Settlement Fund Disbursement,” Iowa Administrative Code.

Legal Authority for Rulemaking

    This rulemaking is proposed under the authority provided in Iowa Code section 12.51 and 2025 Iowa Acts, House File 1038.

State or Federal Law Implemented

    This rulemaking implements, in whole or in part, Iowa Code section 12.51 and 2025 Iowa Acts, House File 1038.

Purpose and Summary

    This proposed chapter is intended to implement division I of 2025 Iowa Acts, House File 1038, by adopting rules to outline the Department’s responsibilities in the distribution of funds from the State of Iowa’s Opioid Settlement Fund.

Regulatory Analysis

    A Regulatory Analysis for this rulemaking was published in the Iowa Administrative Bulletin on November 12, 2025. A public hearing was held on the following date(s):

     ?   December 2, 2025

Fiscal Impact

    Division II of the Act provided a supplement appropriation of $29 million. Following that, it is estimated that the Department will receive the following amounts of funds for disbursement: FY 2026, $28,611,794; FY 2027, $7,433,269; FY 2028, $5,590,470; FY 2029, $8,011,520; and FY 2030, $8,212,828.

Jobs Impact

    After analysis and review of this rulemaking, no impact on jobs has been found.

Waivers

    Any person who believes that the application of the discretionary provisions of this rulemaking would result in hardship or injustice to that person may petition the Department for a waiver of the discretionary provisions, if any, pursuant to 441—Chapter 6.

Public Comment

     Any interested person may submit written or oral comments concerning this proposed rulemaking, which must be received by the Department no later than 4:30 p.m. on January 13, 2026. Comments should be directed to:

Public Hearing

    Public hearings at which persons may present their views orally or in writing will be held as follows:

    Persons who wish to make oral comments at a public hearing may be asked to state their names for the record and to confine their remarks to the subject of this proposed rulemaking.

    Any persons who intend to attend a public hearing and have special requirements, such as those related to hearing or mobility impairments, should contact the Department and advise of specific needs.

Review by Administrative Rules Review Committee

    The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rulemaking by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rulemaking at its regular monthly meeting or at a special meeting. The Committee’s meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).

    The following rulemaking action is proposed:

    ITEM 1.  Adopt the following new 441—Chapter 306:

CHAPTER 306

OPIOID SETTLEMENT FUND DISBURSEMENT

441—306.1(12) Definition.

    “Fund” means the opioid settlement fund created in Iowa Code section 12.51.

441—306.2(12) Methodology. To facilitate the fund disbursement required by Iowa Code section 12.51, the department may solicit requests for proposals pursuant to rules of the department of administrative services each fiscal year, starting with the fiscal year beginning July 1, 2025. The department may pursue additional funding mechanisms as fund availability and opportunities allow.

441—306.3(12) Outcome measurement. Subsequent to the awarding of disbursements, the department will formulate indicators to be used to help identify if the outcomes intended for each disbursement are being met. Intended outcomes can include but are not to be limited to prevention of opioid-related deaths, reduction of opioid misuse, and increased access to appropriate medication and services.

441—306.4(12) Annual report. Starting with the fiscal year beginning on July 1, 2025, on or before November 1, the department will annually submit to the general assembly and to the governor a report that includes the elements required by Iowa Code section 12.51(2)“b”(3)(d).

These rules are intended to implement Iowa Code section 12.51 as amended by 2025 Iowa Acts, House File 1038.