Relates to the maintenance appropriations to the Department of Health and Welfare and the State Independent Living Council for fiscal year 2027.

LEGISLATURE OF THE STATE OF IDAHO
Sixty-eighth Legislature Second Regular Session - 2026
IN THE SENATE
SENATE BILL NO. 1375
BY FINANCE COMMITTEE
AN ACT	1
RELATING TO THE APPROPRIATION TO HEALTH AND HUMAN SERVICES; APPROPRIATING	2
MONEYS TO THE DEPARTMENT OF HEALTH AND WELFARE FOR THE DIVISIONS OF	3
YOUTH SAFETY AND PERMANENCY, EARLY LEARNING AND DEVELOPMENT, FAMILY AND	4
COMMUNITY PARTNERSHIPS, WELFARE, MEDICAID, PUBLIC HEALTH SERVICES, IN-	5
DIRECT SUPPORT SERVICES, LICENSING AND CERTIFICATION, SUBSTANCE ABUSE	6
TREATMENT AND PREVENTION, MENTAL HEALTH SERVICES, PSYCHIATRIC HOS-	7
PITALIZATION, AND INDEPENDENT COUNCILS, AND TO THE STATE INDEPENDENT	8
LIVING COUNCIL FOR FISCAL YEAR 2027; LIMITING THE NUMBER OF AUTHORIZED	9
FULL-TIME EQUIVALENT POSITIONS; PROVIDING FOR GENERAL FUND TRANSFERS	10
TO THE COOPERATIVE WELFARE FUND; DIRECTING EXPENDITURES FOR TRUSTEE AND	11
BENEFIT PAYMENTS; PROVIDING REQUIREMENTS FOR PROGRAM INTEGRITY; CLARI-	12
FYING THE RESPONSIBILITY FOR THE EDUCATIONAL NEEDS OF CERTAIN CHILDREN	13
IN STATE CARE; DIRECTING THE USE OF CHILD ABUSE PROTECTION AND TREATMENT	14
ACT FUNDS; REQUIRING A MONTHLY MEDICAID TRACKING REPORT; ALLOWING FOR	15
TRANSFER OF APPROPRIATIONS BETWEEN MEDICAID PROGRAMS; REQUIRING A RE-	16
PORT ON MEDICAID MANAGED CARE IMPLEMENTATION; REQUIRING COST-SHARING	17
FOR SERVICES; APPROPRIATING AND TRANSFERRING MONEYS FROM THE COOPER-	18
ATIVE WELFARE (GENERAL) FUND TO THE RURAL PHYSICIAN INCENTIVE FUND;	19
PROVIDING REQUIREMENTS FOR BUDGET INTEGRITY FOR MEDICAID; ALLOCATING	20
FUNDING FOR SMOKING CESSATION; DIRECTING EXPENDITURES FOR PROJECT FIL-	21
TER; REQUIRING REPORTS ON FACILITY LICENSING AND CERTIFICATIONS; LIM-	22
ITING THE TRANSFER OF LEGISLATIVE APPROPRIATIONS BETWEEN MENTAL HEALTH	23
SERVICES AND PSYCHIATRIC HOSPITALIZATION; REQUIRING REPORTS REGARD-	24
ING FUNDING FOR BEHAVIORAL HEALTH COMMUNITY CRISIS CENTERS; DIRECTING	25
THE USE OF THE STATE OPIOID RESPONSE GRANT; DIRECTING USES OF THE IDAHO	26
MILLENNIUM INCOME FUND; PROVIDING FOR IDAHO DRUG FREE YOUTH OVERSIGHT;	27
PROVIDING EXEMPTIONS FROM PROGRAM TRANSFER LIMITATIONS FOR THE COMMU-	28
NITY HOSPITALIZATION PROGRAM; DIRECTING ACQUISITIONS; PROVIDING FOR	29
ACCOUNTABILITY REPORTS; PROVIDING FOR CONDITIONS, LIMITATIONS, AND RE-	30
STRICTIONS; AND DECLARING AN EMERGENCY AND PROVIDING AN EFFECTIVE DATE.	31
Be It Enacted by the Legislature of the State of Idaho:	32
SECTION 1. There is hereby appropriated to Health and Human Services	33
the following amounts to be expended according to the designated programs	34
and expense classes from the listed funds for the period July 1, 2026,	35
through June 30, 2027:	36

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2
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
(1) DEPARTMENT OF HEALTH AND WELFARE:	5
I. YOUTH SAFETY & PERMANENCY:	6
A. YOUTH SAFETY & PERMANENCY:	7
FROM:	8
Cooperative Welfare (General)	9
Fund	10 $18,538,400 $4,677,100 $23,215,500
Cooperative Welfare (Dedicated)	11
Fund	12 76,500 20,000 96,500
Cooperative Welfare (Federal)	13
Fund	14 30,851,600 5,928,500 36,780,100
TOTAL	15 $49,466,500 $10,625,600 $60,092,100
B. FOSTER & ASSISTANCE PAYMENTS:	16
FROM:	17
Cooperative Welfare (General)	18
Fund	19 $29,996,300 $29,996,300
Cooperative Welfare (Dedicated)	20
Fund	21 150,000 150,000
Cooperative Welfare (Federal)	22
Fund	23 31,306,700 31,306,700
TOTAL	24 $61,453,000 $61,453,000
DIVISION TOTAL	25 $49,466,500 $10,625,600 $61,453,000 $121,545,100
II. EARLY LEARNING & DEVELOPMENT:	26
A. EARLY LEARNING AND DEVELOPMENT:	27
FROM:	28
Cooperative Welfare (General)	29
Fund	30 $8,453,200 $1,505,600 $2,860,200 $12,819,000
Cooperative Welfare (Dedicated)	31
Fund	32 131,100 46,300 783,100 960,500
Cooperative Welfare (Federal)	33
Fund	34 6,009,600 1,860,500 2,853,500 10,723,600
TOTAL	35 $14,593,900 $3,412,400 $6,496,800 $24,503,100

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3
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
B. IDAHO CHILD CARE PROGRAM:	5
FROM:	6
Cooperative Welfare (General)	7
Fund	8 $24,800 $1,175,000 $1,199,800
Cooperative Welfare (Federal)	9
Fund	10 676,100 $1,604,600 60,784,400 63,065,100
TOTAL	11 $700,900 $1,604,600 $61,959,400 $64,264,900
C. SOUTHWEST IDAHO TREATMENT CENTER:	12
FROM:	13
Cooperative Welfare (General)	14
Fund	15 $5,967,300 $439,300 $91,300 $6,497,900
Cooperative Welfare (Dedicated)	16
Fund	17 345,500 137,800 10,600 493,900
Cooperative Welfare (Federal)	18
Fund	19 4,393,300 1,562,500 147,200 6,103,000
TOTAL	20 $10,706,100 $2,139,600 $249,100 $13,094,800
DIVISION TOTAL	21 $26,000,900 $7,156,600 $68,705,300 $101,862,800
III. FAMILY AND COMMUNITY PARTNERSHIPS:	22
FROM:	23
Cooperative Welfare (General)	24
Fund	25 $430,200 $133,400 $450,000 $1,013,600
Cooperative Welfare (Dedicated)	26
Fund	27 19,500 50,000 69,500
Cooperative Welfare (Federal)	28
Fund	29 3,005,000 270,900 2,900,000 6,175,900
TOTAL	30 $3,435,200 $423,800 $3,400,000 $7,259,000
IV. DIVISION OF WELFARE:	31
A. SELF-RELIANCE OPERATIONS:	32
FROM:	33
Cooperative Welfare (General)	34
Fund	35 $19,674,300 $5,565,000 $25,239,300

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4
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
Cooperative Welfare (Dedicated)	5
Fund	6 862,100 3,539,000 4,401,100
Cooperative Welfare (Federal)	7
Fund	8 32,918,900 17,333,000 50,251,900
TOTAL	9 $53,455,300 $26,437,000 $79,892,300
B. BENEFIT PAYMENTS:	10
FROM:	11
Cooperative Welfare (General)	12
Fund	13 $19,630,600 $19,630,600
Cooperative Welfare (Dedicated)	14
Fund	15 500,000 500,000
Cooperative Welfare (Federal)	16
Fund	17 32,318,800 32,318,800
TOTAL	18 $52,449,400 $52,449,400
DIVISION TOTAL	19 $53,455,300 $26,437,000 $52,449,400 $132,341,700
V. DIVISION OF MEDICAID:	20
A. MEDICAID ADMINISTRATION AND MEDICAL MGMT:	21
FROM:	22
Cooperative Welfare (General)	23
Fund	24 $13,184,000 $14,230,400 $5,205,700 $32,620,100
Medicaid Management Information Systems Dedicated	25
Fund	26 82,900 82,900
Cooperative Welfare (Dedicated)	27
Fund	28 461,600 8,883,800 9,345,400
Idaho Millennium Income	29
Fund	30 108,400 142,300 250,700
Cooperative Welfare (Federal)	31
Fund	32 18,710,400 37,158,800 19,518,700 75,387,900
TOTAL	33 $32,547,300 $60,415,300 $24,724,400 $117,687,000

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5
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
B. COORDINATED MEDICAID PLAN:	5
FROM:	6
Cooperative Welfare (General)	7
Fund	8 $324,757,700 $324,757,700
Hospital Assessment	9
Fund	10 103,577,700 103,577,700
Cooperative Welfare (Dedicated)	11
Fund	12 1,445,100 1,445,100
Cooperative Welfare (Federal)	13
Fund	14 853,459,000 853,459,000
TOTAL	15 $1,283,239,500 $1,283,239,500
C. ENHANCED MEDICAID PLAN:	16
FROM:	17
Cooperative Welfare (General)	18
Fund	19 $317,708,200 $317,708,200
Hospital Assessment	20
Fund	21 4,172,700 4,172,700
Cooperative Welfare (Dedicated)	22
Fund	23 347,297,000 347,297,000
Cooperative Welfare (Federal)	24
Fund	25 752,848,700 752,848,700
TOTAL	26 $1,422,026,600 $1,422,026,600
D. BASIC MEDICAID PLAN:	27
FROM:	28
Cooperative Welfare (General)	29
Fund	30 $202,906,400 $202,906,400
Hospital Assessment	31
Fund	32 115,270,400 115,270,400
Cooperative Welfare (Dedicated)	33
Fund	34 1,023,000 1,023,000
Cooperative Welfare (Federal)	35
Fund	36 582,661,100 582,661,100
TOTAL	37 $901,860,900 $901,860,900

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6
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
E. EXPANSION MEDICAID PLAN:	5
FROM:	6
Cooperative Welfare (General)	7
Fund	8 $89,470,200 $89,470,200
Hospital Assessment	9
Fund	10 25,064,800 25,064,800
Cooperative Welfare (Dedicated)	11
Fund	12 196,248,900 196,248,900
Cooperative Welfare (Federal)	13
Fund	14 1,010,215,500 1,010,215,500
TOTAL	15 $1,320,999,400 $1,320,999,400
F. EXTENDED EMPLOYMENT SERVICES:	16
FROM:	17
Cooperative Welfare (General)	18
Fund	19 $299,900 $91,700 $2,969,800 $3,361,400
DIVISION TOTAL	20 $32,847,200 $60,507,000 $4,955,820,600 $5,049,174,800
VI. PUBLIC HEALTH SERVICES:	21
A. PHYSICAL HEALTH SERVICES:	22
FROM:	23
Cooperative Welfare (General)	24
Fund	25 $2,309,000 $969,700 $1,678,900 $4,957,600
Cancer Control	26
Fund	27 76,000 205,000 82,600 363,600
Central Tumor Registry	28
Fund	29 360,000 360,000
Rural Nursing Loan Repayment	30
Fund	31 875,000 875,000
Cooperative Welfare (Dedicated)	32
Fund	33 3,176,900 5,712,700 12,386,200 21,275,800
Idaho Millennium Income	34
Fund	35 2,406,000 2,100,000 4,506,000

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7
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
Cooperative Welfare (Federal)	5
Fund	6 11,230,500 17,967,500 35,005,100 64,203,100
TOTAL	7 $16,792,400 $27,620,900 $52,127,800 $96,541,100
B. LABORATORY SERVICES:	8
FROM:	9
Cooperative Welfare (General)	10
Fund	11 $2,369,900 $716,000 $3,085,900
Cooperative Welfare (Dedicated)	12
Fund	13 498,400 273,800 772,200
Cooperative Welfare (Federal)	14
Fund	15 1,352,600 939,300 2,291,900
TOTAL	16 $4,220,900 $1,929,100 $6,150,000
C. SUICIDE PREVENTION AND AWARENESS:	17
FROM:	18
Cooperative Welfare (General)	19
Fund	20 $361,200 $316,600 $1,129,400 $1,807,200
Cooperative Welfare (Federal)	21
Fund	22 0 115,000 80,000 195,000
TOTAL	23 $361,200 $431,600 $1,209,400 $2,002,200
D. HEALTH CARE POLICY INITIATIVES:	24
FROM:	25
Cooperative Welfare (General)	26
Fund	27 $117,500 $32,700 $142,000 $292,200
Cooperative Welfare (Dedicated)	28
Fund	29 81,400 75,000 156,400
Cooperative Welfare (Federal)	30
Fund	31 119,200 33,000 356,300 508,500
TOTAL	32 $318,100 $140,700 $498,300 $957,100
DIVISION TOTAL	33 $21,692,600 $30,122,300 $53,835,500 $105,650,400

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8
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
VII. INDIRECT SUPPORT SERVICES:	5
FROM:	6
Cooperative Welfare (General)	7
Fund	8 $12,185,100 $8,525,700 $20,710,800
Cooperative Welfare (Dedicated)	9
Fund	10 1,626,200 1,502,100 3,128,300
Cooperative Welfare (Federal)	11
Fund	12 14,142,500 9,780,300 23,922,800
TOTAL	13 $27,953,800 $19,808,100 $47,761,900
VIII. LICENSING AND CERTIFICATION:	14
FROM:	15
Cooperative Welfare (General)	16
Fund	17 $2,084,900 $251,400 $2,336,300
Cooperative Welfare (Dedicated)	18
Fund	19 1,037,300 12,200 1,049,500
Cooperative Welfare (Federal)	20
Fund	21 4,791,100 639,600 5,430,700
TOTAL	22 $7,913,300 $903,200 $8,816,500
IX. SUBSTANCE ABUSE TREATMENT & PREVENTION:	23
FROM:	24
Prevention of Minors' Access to Tobacco	25
Fund	26 $21,800 $21,800
Cooperative Welfare (Dedicated)	27
Fund	28 $7,000 438,300 445,300
Liquor Control	29
Fund	30 533,900 $116,100 650,000
Idaho Millennium Income	31
Fund	32 320,000 1,600,000 1,920,000
Cooperative Welfare (Federal)	33
Fund	34 761,800 3,460,200 19,302,300 23,524,300
TOTAL	35 $1,302,700 $4,240,300 $21,018,400 $26,561,400

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9
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
X. MENTAL HEALTH SERVICES:	5
A. CHILDREN'S MENTAL HEALTH:	6
FROM:	7
Cooperative Welfare (General)	8
Fund	9 $3,759,200 $2,715,000 $1,550,400 $8,024,600
Cooperative Welfare (Federal)	10
Fund	11 2,661,600 1,904,400 1,812,600 6,378,600
TOTAL	12 $6,420,800 $4,619,400 $3,363,000 $14,403,200
B. ADULT MENTAL HEALTH:	13
FROM:	14
Cooperative Welfare (General)	15
Fund	16 $13,510,300 $4,249,600 $7,960,700 $25,720,600
Cooperative Welfare (Federal)	17
Fund	18 1,085,700 1,165,300 778,700 3,029,700
TOTAL	19 $14,596,000 $5,414,900 $8,739,400 $28,750,300
DIVISION TOTAL	20 $21,016,800 $10,034,300 $12,102,400 $43,153,500
XI. PSYCHIATRIC HOSPITALIZATION:	21
A. COMMUNITY HOSPITALIZATION:	22
FROM:	23
Cooperative Welfare (General)	24
Fund	25 $534,800 $4,249,900 $4,784,700
B. STATE HOSPITAL NORTH:	26
FROM:	27
Cooperative Welfare (General)	28
Fund	29 $9,415,100 $852,900 $45,600 $10,313,600
Cooperative Welfare (Dedicated)	30
Fund	31 2,579,000 382,200 2,961,200
State Hospital North Endowment Income	32
Fund	33 652,800 1,192,600 104,400 1,949,800
Cooperative Welfare (Federal)	34
Fund	35 1,709,300 0 0 1,709,300
TOTAL	36 $14,356,200 $2,427,700 $150,000 $16,933,900

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10
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
C. STATE HOSPITAL SOUTH:	5
FROM:	6
Cooperative Welfare (General)	7
Fund	8 $6,678,900 $225,200 $5,300 $6,909,400
Cooperative Welfare (Dedicated)	9
Fund	10 13,774,200 3,339,100 900 17,114,200
Mental Hospital Endowment Income	11
Fund	12 5,446,400 2,208,700 284,700 7,939,800
Cooperative Welfare (Federal)	13
Fund	14 5,586,500 893,100 20,300 6,499,900
TOTAL	15 $31,486,000 $6,666,100 $311,200 $38,463,300
D. STATE HOSPITAL WEST:	16
FROM:	17
Cooperative Welfare (General)	18
Fund	19 $1,694,100 $468,700 $8,300 $2,171,100
Cooperative Welfare (Dedicated)	20
Fund	21 4,154,400 1,783,800 5,938,200
Cooperative Welfare (Federal)	22
Fund	23 4,400 0 0 4,400
TOTAL	24 $5,852,900 $2,252,500 $8,300 $8,113,700
DIVISION TOTAL	25 $51,695,100 $11,881,100 $4,719,400 $68,295,600
XII. INDEPENDENT COUNCILS:	26
A. DEVELOPMENTAL DISABILITIES COUNCIL:	27
FROM:	28
Cooperative Welfare (General)	29
Fund	30 $205,800 $20,100 $225,900
Cooperative Welfare (Dedicated)	31
Fund	32 15,000 15,000
Cooperative Welfare (Federal)	33
Fund	34 497,200 275,900 $31,600 804,700
TOTAL	35 $703,000 $311,000 $31,600 $1,045,600

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11
FOR	1
FOR	2 FOR TRUSTEE AND
PERSONNEL	3 OPERATING BENEFIT
COSTS	4 EXPENDITURES PAYMENTS TOTAL
B. DOMESTIC VIOLENCE COUNCIL:	5
FROM:	6
Cooperative Welfare (General)	7
Fund	8 $198,300 $79,200 $277,500
Domestic Violence Project	9
Fund	10 219,500 164,600 $171,800 555,900
Cooperative Welfare (Dedicated)	11
Fund	12 40,000 40,000
Cooperative Welfare (Federal)	13
Fund	14 318,300 269,200 12,515,400 13,102,900
TOTAL	15 $736,100 $553,000 $12,687,200 $13,976,300
DIVISION TOTAL	16 $1,439,100 $864,000 $12,718,800 $15,021,900
(2) STATE INDEPENDENT LIVING COUNCIL:	17
FROM:	18
General	19
Fund	20 $173,700 $109,900 $283,600
State Independent Living Council (Ded)	21
Fund	22 312,200 94,800 407,000
TOTAL	23 $485,900 $204,700 $690,600
GRAND TOTAL	24 $298,704,400 $183,208,000 $5,246,222,800 $5,728,135,200
SECTION 2. FTP AUTHORIZATION. In accordance with Section 67-3519,	25
Idaho Code, each of the programs in Health and Human Services listed below	26
is authorized no more than the following number of full-time equivalent po-	27
sitions at any point during the period July 1, 2026, through June 30, 2027,	28
unless specifically authorized by the Governor. The Joint Finance-Appro-	29
priations Committee will be notified promptly of any increased positions so	30
authorized.	31
Youth Safety and Permanency ..................................500.53	32
Early Learning and Development ...............................142.83	33
Idaho Child Care Program .......................................5.50	34
Southwest Idaho Treatment Center .............................111.00	35
Family and Community Partnerships .............................38.55	36
Division of Welfare ..........................................609.50	37
Division of Medicaid .........................................303.50	38

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12
Public Health Services .......................................214.22	1
Indirect Support Services ....................................244.75	2
Licensing and Certification ...................................68.00	3
Substance Abuse Treatment and Prevention .......................12.00	4
Children's Mental Health ......................................53.80	5
Adult Mental Health ..........................................132.00	6
State Hospital North .........................................137.19	7
State Hospital South .........................................300.41	8
State Hospital West ...........................................53.99	9
Developmental Disabilities Council .............................6.00	10
Domestic Violence Council ......................................5.00	11
State Independent Living Council ...............................4.00	12
SECTION 3. GENERAL FUND TRANSFERS. As appropriated, the Office of the	13
State Controller shall periodically make transfers from the General Fund to	14
the Cooperative Welfare Fund as requested by the director of the Department	15
of Health and Welfare and approved by the Board of Examiners.	16
SECTION 4. TRUSTEE AND BENEFIT PAYMENTS. Notwithstanding the provi-	17
sions of Section 67-3511, Idaho Code, funds appropriated in Section 1 of this	18
act in the trustee and benefit payments expense class shall not be trans-	19
ferred to any other expense classes for the period July 1, 2026, through June	20
30, 2027.	21
SECTION 5. PROGRAM INTEGRITY. Notwithstanding any other provision of	22
law to the contrary, the Department of Health and Welfare shall be required	23
to provide those services authorized or mandated by law in each program, only	24
to the extent of funding and available resources appropriated for each bud-	25
geted program.	26
SECTION 6. EDUCATIONAL NEEDS. The Department of Health and Welfare	27
shall be responsible for the educational needs of school-age children placed	28
in its custody by the judicial branch for either child protective issues or	29
mental health issues. If the department places a child in a licensed resi-	30
dential treatment facility that includes a nonpublic accredited school and	31
it is determined by the department that it is in the best interests of the	32
child to be educated at the residential treatment facility, then it is the	33
responsibility of the department to pay for such education per student, per	34
educational day. Other Idaho state agencies shall not be precluded from	35
exercising their responsibility to ensure a free and appropriate education	36
for these students within the requirements of federal disability law. The	37
fiscal impact of this section is included within existing department base	38
appropriations.	39
SECTION 7. CHILD ABUSE PROTECTION AND TREATMENT ACT FUNDS. Of the	40
amount appropriated in Section 1 of this act from the Cooperative Welfare	41
(Federal) Fund, a minimum of $42,000 of federal Child Abuse Protection and	42
Treatment Act funds appropriated to the Department of Health and Welfare	43
shall be provided to the public health districts each year. Funds for each	44
public health district shall be distributed at one-seventh (1/7) of the	45

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13
total amount, which shall be used for the citizen review panels pursuant to	1
Section 16-1647, Idaho Code.	2
SECTION 8. MEDICAID TRACKING REPORT. The Department of Health and Wel-	3
fare's Division of Medicaid and Division of Indirect Support Services shall	4
deliver a report that compares the Medicaid appropriation, distributed by	5
month for the year, to the actual expenditures and remaining forecasted ex-	6
penditures for the year on a monthly basis to the Legislative Services Office	7
and the Division of Financial Management. The report shall also include a	8
forecast, updated monthly, of the next fiscal year's anticipated trustee and	9
benefit expenditures. The format of the report and the information included	10
therein shall be determined by the Legislative Services Office and the Divi-	11
sion of Financial Management.	12
SECTION 9. TRANSFER OF APPROPRIATIONS. Notwithstanding the provisions	13
of Section 67-3511, Idaho Code, funding provided for the trustee and bene-	14
fit payments expense class in the Department of Health and Welfare's Divi-	15
sion of Medicaid may be transferred in excess of ten percent (10%) among the	16
Coordinated Medicaid Plan, Enhanced Medicaid Plan, Basic Medicaid Plan, Ex-	17
pansion Medicaid Plan, and Medicaid Administration and Medical Management	18
Programs, but shall not be transferred to any other budgeted program or ex-	19
pense class within the Department of Health and Welfare for the period July	20
1, 2026, through June 30, 2027.	21
SECTION 10. MEDICAID MANAGED CARE IMPLEMENTATION. The Department of	22
Health and Welfare's Division of Medicaid shall provide a report to the	23
Legislative Services Office and the Division of Financial Management on	24
progress in integrating managed care approaches into the state Medicaid	25
system. The format of the report and information contained therein shall be	26
determined by the Legislative Services Office and the Division of Financial	27
Management. The report shall be submitted no later than December 1, 2026.	28
SECTION 11. COST-SHARING REQUIREMENT. The Department of Health and	29
Welfare shall implement cost-sharing in the Division of Medicaid, as re-	30
quired by Section 56-257, Idaho Code, to the maximum extent that is federally	31
allowable for the expanded population of children whose families' gross	32
taxable income exceeds one hundred eighty-five percent (185%) but does not	33
exceed three hundred percent (300%) of the federal poverty limit, for Medic-	34
aid-eligible services as identified in House Bill No. 43, as enacted by the	35
First Regular Session of the Sixty-fourth Idaho Legislature.	36
SECTION 12. CASH TRANSFER. Of the amount appropriated in Section 1 of	37
this act from the Cooperative Welfare (General) Fund, there is hereby appro-	38
priated and the Office of the State Controller shall transfer $640,000 from	39
the Cooperative Welfare (General) Fund to the Rural Physician Incentive Fund	40
on July 1, 2026, or as soon thereafter as practicable, for the Department of	41
Health and Welfare for the period July 1, 2026, through June 30, 2027.	42
SECTION 13. BUDGET INTEGRITY. Notwithstanding any other provision of	43
law to the contrary, and consistent with its cost containment strategy,	44

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14
the Department of Health and Welfare's Division of Medicaid shall submit	1
its budget request in accordance with applicable Idaho law as of the date	2
of submission. This section does not prohibit the agency or Governor from	3
making requests of the Legislature that would impact any portion of the	4
department's budget. However, any proposed changes to Idaho Code with an	5
anticipated budgetary impact shall be identified in the agency budget re-	6
quest and Governor's budget recommendation in narrative form only, without	7
numerical entries. Further, the department shall submit its budget request	8
based on the forecasted amount for the most recent month available from the	9
report identified in Section 8 of this act and for the estimated needs of	10
maintaining operations of the division.	11
SECTION 14. SMOKING CESSATION. Of the amount appropriated in Section 1	12
of this act, $2,100,000 from the Idaho Millennium Income Fund shall be dis-	13
tributed to the public health districts for the purpose of prevention and	14
cessation programs for tobacco, vape, and other substances as funds allow.	15
These moneys shall be distributed to each district based on the approved for-	16
mula of the board of trustees of the Idaho district boards of health as pro-	17
vided in Section 39-411(6), Idaho Code.	18
SECTION 15. PROJECT FILTER ALLOWABLE USES. Of the amount appropriated	19
in Section 1 of this act, $2,406,000 from the Idaho Millennium Income Fund	20
shall be expended for the purpose of prevention and cessation programs from	21
tobacco, vape, and other substances as funds allow. No moneys for Project	22
Filter from the Idaho Millennium Income Fund shall be used for sponsorships	23
or passive advertising.	24
SECTION 16. REPORTS ON FACILITY LICENSING AND CERTIFICATIONS. The De-	25
partment of Health and Welfare's Licensing and Certification Program shall	26
provide biannual reports to the Legislative Services Office Budget and Pol-	27
icy Analysis Division and the Division of Financial Management on the sta-	28
tus of facility licensing and certifications as well as staff workload and	29
caseload issues. The format of the report and the type of information in-	30
cluded therein shall be determined by the Legislative Services Office and	31
the Division of Financial Management. The first report shall be submitted	32
no later than December 31, 2026, and the second report shall be submitted no	33
later than June 30, 2027.	34
SECTION 17. LIMITING TRANSFER OF LEGISLATIVE APPROPRIATIONS. Notwith-	35
standing the provisions of Section 67-3511, Idaho Code, moneys appropriated	36
from the Cooperative Welfare (General) Fund to the Department of Health and	37
Welfare's Divisions of Mental Health Services and Psychiatric Hospitaliza-	38
tion may be transferred between divisions but shall not be transferred to any	39
other division or program within the Department of Health and Welfare with-	40
out legislative approval.	41
SECTION 18. BEHAVIORAL HEALTH COMMUNITY CRISIS CENTERS. The seven be-	42
havioral health community crisis centers shall submit a report that indi-	43
cates the levels of funding support by fund source. The format of the report	44
and the information included therein shall be determined by the Legislative	45

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Services Office Budget and Policy Analysis Division. The contents of these	1
reports shall aid in providing a clearer understanding of the financial sit-	2
uations of the behavioral health community crisis centers. These reports	3
shall be submitted by the Department of Health and Welfare to the Legislative	4
Services Office Budget and Policy Analysis Division no later than December	5
31, 2026.	6
SECTION 19. STATE OPIOID RESPONSE GRANT. Funds available for naloxone	7
shall be available only to first responders for distribution in the state of	8
Idaho.	9
SECTION 20. IDAHO MILLENNIUM INCOME FUND. Of the funds appropriated	10
from the Idaho Millennium Income Fund in Section 1 of this act, $250,000	11
shall be used by Idaho Drug Free Youth to support its various programs,	12
including its annual youth summit, program chapters, and drug free school	13
coordinators. Idaho Drug Free Youth shall provide to the Department of	14
Health and Welfare a document that demonstrates operational and fiscal ac-	15
countability for the supported programs. Idaho Drug Free Youth shall work	16
collaboratively with the Department of Health and Welfare and shall sign an	17
attestation letter or equivalent document that ensures funds will be used in	18
accordance with this section, in accordance with Section 21 of this act, and	19
in accordance with any other applicable rule or law and accounted for using	20
generally accepted accounting principles.	21
SECTION 21. IDAHO DRUG FREE YOUTH OVERSIGHT. (1) The Department of	22
Health and Welfare shall provide oversight for the funds provided in Section	23
of this act for Idaho Drug Free Youth. The Department of Health and Wel-	24
fare shall:	25
(a) Provide four distributions of $62,500 for a total distribution of	26
$250,000. Distributions shall occur no later than July 15, 2026, Octo-	27
ber 15, 2026, January 15, 2027, and April 15, 2027;	28
(b) Receive and compile two reports from Idaho Drug Free Youth and	29
transmit each report to the Legislative Services Office Budget and Pol-	30
icy Analysis Division on behalf of the Joint Millennium Fund Committee	31
by December 30, 2026, and by June 30, 2027, or as soon thereafter as is	32
practicable. The format of the report and the content therein shall be	33
determined by the Legislative Services Office Budget and Policy Analy-	34
sis Division;	35
(c) Withhold or recover distributions pursuant to paragraph (a) of this	36
subsection if Idaho Drug Free Youth is not operating or has indicated it	37
intends to no longer operate prior to the close of the fiscal year, if it	38
does not provide any of the required reports, or otherwise as needed to	39
address legal or fiscal concerns regarding funds provided to Idaho Drug	40
Free Youth; and	41
(d) Assist Idaho Drug Free Youth, as needed, to ensure services are be-	42
ing provided as intended by this act and to meet the needs of program	43
participants.	44
(2) The Department of Health and Welfare shall not have the authority to	45
directly manage Idaho Drug Free Youth or direct Idaho Drug Free Youth to per-	46
form functions not required by this section or Section 20 of this act. The	47

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Department of Health and Welfare shall assist Idaho Drug Free Youth to ensure	1
funds are used in accordance with this act. If the Department of Health and	2
Welfare has reason to believe funds are misused in violation of this section	3
or Section 20 of this act, or any rule or law, the Department of Health and	4
Welfare may withhold funds until Idaho Drug Free Youth is in compliance with	5
this act and applicable law. The Department of Health and Welfare shall im-	6
mediately notify the Legislative Services Office Budget and Policy Analysis	7
Division on behalf of the Joint Millennium Fund Committee of any misuse or	8
perceived misuse of funds. The Department of Health and Welfare shall work	9
collaboratively with Idaho Drug Free Youth to develop an appropriate correc-	10
tive action plan.	11
SECTION 22. EXEMPTIONS FROM PROGRAM TRANSFER LIMITATIONS. The Commu-	12
nity Hospitalization Program is hereby exempted from the provisions of Sec-	13
tion 67-3511(2), Idaho Code, allowing unlimited transfers into the Commu-	14
nity Hospitalization Program from other programs within the Department of	15
Health and Welfare for all moneys appropriated to it for the period July 1,	16
2026, through June 30, 2027.	17
SECTION 23. ACQUISITIONS. (1) Consistent with the provisions of Chap-	18
ter 92, Title 67, Idaho Code, the Idaho Department of Health and Welfare is	19
encouraged to engage in open, competitive acquisition processes. For all	20
acquisitions during the period July 1, 2026, through June 30, 2027, for prop-	21
erty, services, or settlement valued at more than $1,000,000, the Idaho De-	22
partment of Health and Welfare shall make a report to the Joint Finance-Ap-	23
propriations Committee when the acquisition process includes:	24
(a) Any targeted requests for information or questions conveyed on be-	25
half of external stakeholders by the Office of the Governor; or	26
(b) Facilitation or coordination of meetings or communications with	27
potential or actual bidders by the Office of the Governor.	28
(2) Such report shall be made by the Idaho Department of Health and Wel-	29
fare to the Joint Finance-Appropriations Committee and the Legislative Ser-	30
vices Office Budget and Policy Analysis Division within 30 business days of	31
such contact and include:	32
(a) The nature and purpose for contact from the Office of the Governor;	33
(b) The amount of the contract for property, services, or settlement	34
subject to the acquisition process;	35
(c) The duration of the contract for property, services, or settlement;	36
(d) The parties involved;	37
(e) The subject; and	38
(f) Whether the acquisition was part of or awarded as a result of an	39
open, competitive acquisition process or a sole source or other noncom-	40
petitive procurement pursuant to Section 67-9221, Idaho Code.	41
SECTION 24. ACCOUNTABILITY REPORTS. Funds specifically identified in	42
statute or in an appropriation act as intended for a certain purpose may	43
be used only for that purpose. Funds provided in this act are subject to	44
accountability reports and management reviews in accordance with Section	45
67-702, Idaho Code, provided the Legislative Services Office auditor has	46
sufficient resources to conduct those reports. State agencies that are	47

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authorized to contract for outside audits shall submit those reports to the	1
Joint Finance-Appropriations Committee when those reports become avail-	2
able.	3
SECTION 25. CONDITIONS, LIMITATIONS, AND RESTRICTIONS. Appropriations	4
made pursuant to this act are subject to the conditions, limitations, and re-	5
strictions specified in this act.	6
SECTION 26. An emergency existing therefor, which emergency is hereby	7
declared to exist, this act shall be in full force and effect on and after	8
July 1, 2026.	9

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