Iowa Gov. Kim Reynolds signs $56M opioid settlement fund distribution, open meetings law

DES MOINES — Fifty-six million dollars in opioid settlement funds will be distributed after Iowa Gov. Kim Reynolds on Friday signed into law legislation that outlines how the money will be spent, along with 24 other bills.

After three years of failing to advance legislation, Iowa lawmakers finally agreed on a spending plan for $56 million in national opioid settlement funds, as well as the tens of millions more expected to come to the state over the next decade-plus.

“The opioid crisis continues to impact Iowa families,” Reynolds said in a statement Friday. “I’m thankful the legislature reached an opioid settlement fund agreement this session to immediately distribute $29 million to providers and appropriate ongoing available funds to support early intervention, prevention, treatment and recovery.”

Under a compromise agreement among House and Senate Republican leadership and the governor’s office, lawmakers passed House File 1038 in May. The bill will allocate $29 million to fund 10 specific projects suggested by the Iowa Department of Health and Human Services to address immediate needs or help expand services that are showing results in addressing opioid abuse.

The remaining $27 million will be split between HHS and the Iowa Attorney General’s Office, with 75 percent of settlement funds going to HHS and 25 percent to the Iowa AG’s office for crisis response, early intervention, treatment, and recovery for opioid addiction.

Opioids claimed the lives of 238 Iowans in 2023, according to state figures. Iowa’s annual opioid-related death rate peaked at 258 in 2021.

Open meetings law expansion

Penalties for violating the state’s open meetings laws will be increased and public information accessibility training will be required for most public officials under House File 706, which Reynolds signed into law Friday.

Rep. Gary Mohr, R-Bettendorf, who says the legislation aims to increase transparency in local and state government, originally introduced the legislation in 2024 in response to two events in Davenport. The first was the difficulty members of the public and media had accessing public records, including inspection reports, related to the 2023 partial building collapse in downtown Davenport. The second was when the city of Davenport approved a $1.6 million departure agreement with its city administrator without a public vote.

In April, the Senate amended the legislation to exempt security camera footage and identification card access system data for the Iowa Capitol building from open records requests.

The bill increases fines for public officials who do not follow the open meetings or records requirements from $100-$500 to $500-$2,500. The bill increases damages if a violation was knowingly committed from $1,000-$2,500 to $5,000-$12,500.

Under the legislation, newly elected or appointed public officials would be required to complete public records training provided by the Iowa Public Information Board within 90 days of taking oath or assuming office.

Tax incentive overhaul

Multiple state tax incentives will be repealed, adjusted and created, including ones awarded to businesses for research and development, under a bill singed into law by Reynolds.

Senate File 657 contains 17 provisions, including the creation of tax credits for film production and sustainable aviation fuel, as well as the elimination of older credit programs.

It also overhauls the Research Activities Credit, a program that provides tax incentives to businesses, replacing it with the Research and Development Tax Credit Program. The new program, administered by the Iowa Economic Development Authority, will provide tax credits to eligible businesses that incur qualified research expenses in Iowa.

The creation of the Research and Development Tax Credit Program includes a provision that will allow the IEDA to take back credits awarded to businesses that close, lay off workers or knowingly employ individuals not authorized to legally work in Iowa.

Prohibiting ticket bots

The use of bots to purchase tickets or circumvent electronic queues or presale codes will be prohibited under Senate File 146, which Reynolds signed into law Friday. Bots are automated software programs that perform repetitive tasks over a network.

Similar legislation, dubbed “Taylor Swift bills,” came up in state capitols across the country after fans encountered difficulties purchasing tickets for Swift’s Eras tour in 2023 and 2024. Fans were either kicked out of the online ticket queue or were resold the tickets for much more than their face value.

The bill will require a ticket seller to report known violations of the bill’s provisions within five days of noticing one. It also requires the attorney general to establish an electronic reporting system to submit reports of bots.

The attorney general may bring civil action for using bots to obtain tickets, which could come with a civil penalty of up to $10,000.

Fetal development instruction

Reynolds signed a bill Friday that will require Iowa schools to include specific instruction and visual materials on pregnancy and fetal development, including a video, along with health curriculum for students in grades 5-12.

Senate File 175 will require schools to show:

Republicans amended the bill to prohibit schools from using “any book, article, outline, handout, video or other educational material” produced or provided by an entity that:

Previous, similar versions of the bill would have required schools use a specific video, titled “Baby Olivia” and produced by an anti-abortion rights organization, in schools’ human growth and development instruction. Medical and reproductive rights groups say the video provides scientifically inaccurate information.

Other bills

Other bills Reynolds signed on Friday include:

HF 189: Will require public schools to allow students enrolled in non-public schools to compete in extracurricular interscholastic athletic contests or competitions provided by public schools.

SF 288: Will provide more support for students at public universities in the state who are pregnant or who have recently given birth.

Gazette-Lee Des Moines Bureau Chief Erin Murphy and Deputy Bureau Chief Tom Barton contributed to this report.