Relates to the appropriation from the Idaho Millennium Income Fund for fiscal year 2027.

LEGISLATURE OF THE STATE OF IDAHO Sixty-eighth Legislature Second Regular Session - 2026 IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 942 BY APPROPRIATIONS COMMITTEE AN ACT1 RELATING TO THE APPROPRIATION FROM THE IDAHO MILLENNIUM INCOME FUND FOR FIS-2 CAL YEAR 2027; DIRECTING THE USES OF THE IDAHO MILLENNIUM INCOME FUND;3 APPROPRIATING ADDITIONAL MONEYS FOR COMMUNITY-BASED RECOVERY CENTERS;4 PROVIDING FOR OVERSIGHT FOR MONEYS PROVIDED TO COMMUNITY-BASED RE-5 COVERY CENTERS; PROVIDING CRITERIA TO ESTABLISH NEW COMMUNITY-BASED6 RECOVERY CENTERS; CLARIFYING THE EXPENDITURE OF FUNDS FOR AFTER-SCHOOL7 PROGRAMS; APPROPRIATING ADDITIONAL MONEYS TO THE DEPARTMENT OF HEALTH8 AND WELFARE FOR THE IDAHO CHILDREN'S TRUST FUND FOR FISCAL YEAR 2027;9 APPROPRIATING ADDITIONAL MONEYS TO THE DEPARTMENT OF JUVENILE CORREC-10 TIONS FOR YOUTH ASSESSMENT CENTERS FOR FISCAL YEAR 2027; APPROPRIATING11 ADDITIONAL MONEYS TO THE DEPARTMENT OF HEALTH AND WELFARE FOR THE IDAHO12 COUNCIL ON DOMESTIC VIOLENCE AND VICTIM ASSISTANCE FOR FISCAL YEAR13 2027; APPROPRIATING ADDITIONAL MONEYS TO THE OFFICE OF DRUG POLICY14 FOR FISCAL YEAR 2027; CLARIFYING THE EXPENDITURE OF FUNDS FOR MEDICAID15 CLAIMS; APPROPRIATING ADDITIONAL MONEYS TO THE DEPARTMENT OF JUVE-16 NILE CORRECTIONS FOR STATEWIDE TRAINING AND COORDINATION FOR SCHOOL17 RESOURCE OFFICERS FOR FISCAL YEAR 2027; PROVIDING FOR CONDITIONS, LIMI-18 TATIONS, AND RESTRICTIONS; AND DECLARING AN EMERGENCY AND PROVIDING AN19 EFFECTIVE DATE.20

Be It Enacted by the Legislature of the State of Idaho:21

SECTION 1. USES OF THE IDAHO MILLENNIUM INCOME FUND. The Joint Millen-22 nium Fund Committee, pursuant to Section 67-1808(6), Idaho Code, recommends23 that all moneys available for appropriation from the Idaho Millennium Income24 Fund beginning in fiscal year 2024 and each year thereafter be prioritized25 for programs that focus on prevention, cessation, and treatment related to26 tobacco, vape, alcohol, illegal substances, and other substances that may be27 abused beyond the intended uses and for the overall safety and well-being of28 Idaho youth. Funding should be prioritized first to programs that benefit29 Idahoans under 18 years of age and then for adults with higher risk factors30 for abusing or using various substances described in this section. It is the31 recommendation of the Joint Millennium Fund Committee that no moneys from32 the Idaho Millennium Income Fund be used for the payment of Medicaid claims.33 In accordance with the priorities of this section, any requested funds not34 already an ongoing appropriation in fiscal year 2027 shall be presented in35 the Legislative Budget Book as a request for new onetime appropriation in the36 Idaho Millennium Fund Program and in the respective agency budgets. Consis-37 tent with Section 67-1806, Idaho Code, the Joint Millennium Fund Committee38 shall be responsible for the official recommendation on the uses of the Idaho39 Millennium Income Fund.40

SECTION 2. COMMUNITY-BASED RECOVERY CENTERS. In addition to any other41 appropriation provided by law, there is hereby appropriated to the Depart-42

2 ment of Health and Welfare for the Substance Abuse Treatment and Prevention1 Program $150,000 from the Idaho Millennium Income Fund for the period July2 1, 2026, through June 30, 2027. Of the moneys appropriated to the Depart-3 ment of Health and Welfare for the Substance Abuse Treatment and Prevention4 Program from the Idaho Millennium Income Fund, no more than $1,500,000 shall5 be distributed for the purpose of continued funding to eligible community-6 based recovery centers. "Community-based recovery center" means a not-for-7 profit organization with an oversight advisory board and a verifiable phys-8 ical location where support services are provided to Idahoans at no cost or9 at very limited cost based on ability to pay, that operates at least 25 con-10 sistent hours each week, and that has sufficient square footage for walk-in11 visits and group activities for recovery support. Services provided may in-12 clude peer-to-peer support, job training, recovery support to reduce sub-13 stance use, recovery coaching, and references to other community-based re-14 covery services. Funds shall be used by the community-based recovery cen-15 ters to support the operations of the center, including but not limited to16 personnel costs, rent or lease expenses, basic supplies, and other operating17 costs. Community-based recovery centers shall provide to the Department of18 Health and Welfare a document that demonstrates operational and fiscal ac-19 countability for the center. Community-based recovery centers shall work in20 partnership with the Department of Health and Welfare and sign an attesta-21 tion letter or equivalent document that ensures funds will be used in accor-22 dance with this section, with Section 3 of this act, and with any other appli-23 cable rule or law, and that all moneys received will be accounted for using24 generally accepted accounting principles. Funding is allocated for eligi-25 ble centers for the cities of Boise, Caldwell or Nampa, Coeur d'Alene, Em-26 mett, Idaho Falls, Kamiah, Lewiston, Moscow, Pocatello, and Twin Falls.27

SECTION 3. COMMUNITY-BASED RECOVERY CENTERS OVERSIGHT. (1) The Depart-28 ment of Health and Welfare shall provide oversight for the funds appropri-29 ated in the fiscal year 2027 maintenance bill and in Section 2 of this act30 for community-based recovery centers. The Department of Health and Welfare31 shall:32 (a) Provide four distributions of $37,500 for a total distribution of33 $150,000 to each eligible center. Distributions shall occur no later34 than July 15, 2026, October 15, 2026, January 15, 2027, and April 15,35 2027;36 (b) Receive and compile two reports from each center and transmit each37 report to the Budget and Policy Analysis Division of the Legislative38 Services Office on behalf of the Joint Millennium Fund Committee by39 December 30, 2026, and by June 30, 2027, or as soon thereafter as prac-40 ticable. The format of the report and the content therein shall be41 developed by the department and approved by the Budget and Policy Analy-42 sis Division of the Legislative Services Office;43 (c) Withhold or recover distributions pursuant to paragraph (a) of this44 subsection if the center is not operating or has indicated it intends to45 no longer operate prior to the close of the fiscal year, if it does not46 provide any of the required reports, or otherwise as needed to address47 legal or fiscal concerns regarding funds provided to a center. The48 department shall notify the center immediately with detailed informa-49

3 tion on identified concerns and potential amounts subject to recovery.1 Amounts subject to withholding or recovery shall be based on the time2 frame in question; and3 (d) Assist each center, as needed, to ensure services are being pro-4 vided as intended by this act and to meet the needs of that local commu-5 nity.6 (2) The Department of Health and Welfare shall not have the authority to7 directly manage any center or direct any center to perform functions not re-8 quired in this section or Section 2 of this act. If the Department of Health9 and Welfare has reason to believe that appropriated funds are used in viola-10 tion of this section or Section 2 of this act or any other rule or law, the11 department shall immediately notify the center in question, the Budget and12 Policy Analysis Division of the Legislative Services Office, and the Execu-13 tive Office of the Governor of any misuse or perceived misuse of funds. The14 Department of Health and Welfare shall work collaboratively with such cen-15 ter and the Executive Office of the Governor to develop an appropriate cor-16 rective action plan. If funds were withheld pursuant to subsection (1)(c)17 of this section while a center made necessary adjustments according to the18 corrective action plan and the center continued operations according to the19 provisions of this act, then the department shall provide any withheld fund-20 ing no later than 30 days after completion of the corrective action plan.21 (3) Should any of the community-based recovery centers as defined in22 Section 2 of this act cease to operate or not be operational in accordance23 with the requirements of this section and Section 2 of this act within 30 days24 of any quarterly distribution date identified in this section, the State25 Controller, at the request of the Department of Health and Welfare, shall26 transfer any quarterly distribution moneys back to the Idaho Millennium27 Income Fund as soon as practicable. If a delay occurs as a result of action28 or inaction by the Department of Health and Welfare, funds shall be retained29 until such time that a payment can be made to an eligible center or it can30 be determined that a center will no longer be able to operate. A decision31 to no longer operate requires agreement from the identified center, the De-32 partment of Health and Welfare, and the Executive Office of the Governor. If33 a resolution is not reached by the end of the fiscal year, all moneys shall34 be returned to the Idaho Millennium Income Fund and adequate documentation35 shall be independently provided by the center and the Department of Health36 and Welfare to the Budget and Policy Analysis Division of the Legislative37 Services Office no later than 30 days after the end of the fiscal year docu-38 menting why a resolution could not be reached.39

SECTION 4. ESTABLISHING A NEW COMMUNITY-BASED RECOVERY CENTER. (1) If40 any of the 10 cities identified in Section 2 of this act does not have an ap-41 proved center by no later than 14 days after a payment date identified in Sec-42 tion 3 of this act and it does not appear that a previously existing center43 for that city will be operational with the conditions set forth in this act,44 the Department of Health and Welfare shall allow eligible organizations to45 apply through a competitive application process. The Department of Health46 and Welfare, a representative from that city's regional behavioral health47 board or representative from the Executive Office of the Governor if a re-48 gional behavioral health board is not operational, and a representative from49

4 that city's regional public health district shall review each application1 and select the most qualified organization to operate a community-based re-2 covery center for that city. The Department of Health and Welfare shall im-3 mediately notify the Budget and Policy Analysis Division of the Legislative4 Services Office of the selected organization chosen to operate the center.5 Funds may be provided to a new center if it is selected and operational within6 45 days after a distribution date provided for in Section 3 of this act. If7 a center is not operational within 45 days, then funds related to that quar-8 terly distribution shall be transferred back to the Idaho Millennium Income9 Fund by the State Controller as soon as practicable at the request of the De-10 partment of Health and Welfare. Should a qualified applicant not be selected11 to operate the center, then all appropriated funds that are allocated for12 that center shall be transferred back to the Idaho Millennium Income Fund by13 the State Controller at the request of the Department of Health and Welfare14 no later than 30 days after the date identified for the fourth quarterly dis-15 tribution.16 (2) If the Department of Health and Welfare has received interest to es-17 tablish an additional center or replace one of the current 10 regional cen-18 ters due to a lack of qualified options, the department shall make an offi-19 cial request to the Idaho Legislature by including an enhancement request in20 its fiscal year 2028 budget request submitted to the Legislature and the Gov-21 ernor. A formal presentation shall be made to the Joint Millennium Fund Com-22 mittee and, if needed, the Joint Finance-Appropriations Committee.23

SECTION 5. AFTER-SCHOOL PROGRAMS. Of the moneys appropriated for the24 State Department of Education in the fiscal year 2027 maintenance bill25 for after-school programs, moneys distributed by the department shall be26 expended by a school district or public charter school for after-school27 programs that provide education on the prevention and cessation for the use28 of tobacco, alcohol, and other substances. All programs must comply with29 Section 33-201, Idaho Code, regarding age compliance for programs offered.30

SECTION 6. IDAHO CHILDREN'S TRUST FUND. (1) In addition to any other31 appropriation provided by law, and consistent with Section 39-6008, Idaho32 Code, there is hereby appropriated to the Department of Health and Welfare33 for the Division of Youth Safety and Permanency $692,200 from the Idaho Mil-34 lennium Income Fund to be expended for trustee and benefit payments for the35 Idaho Children's Trust Fund for the period July 1, 2026, through June 30,36 2027.37 (2) Any moneys appropriated from the Idaho Millennium Income Fund to38 the Department of Health and Welfare for the Idaho Children's Trust Fund39 shall be considered a onetime appropriation with no expectation of future40 financial support.41 (3) Funds are appropriated for the purpose of providing mid-size grants42 to community-based projects throughout Idaho. Use of moneys appropriated43 from the Idaho Millennium Income Fund by the Idaho Children's Trust Fund44 shall be consistent with Chapter 60, Title 39, Idaho Code. The Idaho Chil-45 dren's Trust Fund shall submit a proposed plan to the Idaho Department of46 Health and Welfare prior to providing any awards or distribution of funds,47

5 outlining how the funds will be distributed and how oversight will be con-1 ducted during the funding period.2 (4) The Idaho Children's Trust Fund shall provide a semi-annual report3 on the use of the funds. The reports shall be provided to the Budget and Pol-4 icy Analysis Division of the Legislative Services Office and the Department5 of Health and Welfare no later than December 30, 2026, and June 30, 2027.6

SECTION 7. DEPARTMENT OF JUVENILE CORRECTIONS FOR YOUTH ASSESSMENT7 CENTERS. (1) In addition to any other appropriation provided by law, there is8 hereby appropriated to the Department of Juvenile Corrections for the Com-9 munity, Operations, and Program Services Program $1,000,000 from the Idaho10 Millennium Income Fund to be expended for trustee and benefit payments to11 youth assessment centers for the period July 1, 2026, through June 30, 2027.12 (2) Any moneys appropriated from the Idaho Millennium Income Fund to13 the Department of Juvenile Corrections for youth assessment centers shall be14 considered a onetime appropriation with no expectation of future financial15 support.16 (3) In order for a youth assessment center to receive moneys from the17 Idaho Millennium Income Fund, the center shall provide a detailed sustain-18 ability plan that demonstrates how that center can remain operational with-19 out reliance on state funds. Each plan shall include documentation stat-20 ing financial commitments for ongoing financial support for the center. The21 sustainability plan shall be submitted to the Department of Juvenile Cor-22 rections and the Budget and Policy Analysis Division of the Legislative Ser-23 vices Office prior to the Department of Juvenile Corrections distributing24 any moneys.25 (4) Funding shall be distributed to eligible youth assessment centers26 based on criteria set forth by the Department of Juvenile Corrections. Fund-27 ing for the period July 1, 2026, through June 30, 2027, shall be distributed28 in two installments with the first distribution to occur no later than July29 15, 2026, and the second distribution to occur no later than December 1,30 2026. Funding determinations made by the Department of Juvenile Corrections31 shall be considered final.32 (5) Each youth assessment center that receives moneys from the Idaho33 Millennium Income Fund shall sign an attestation letter or equivalent doc-34 ument that demonstrates how distributed moneys will be used in accordance35 with this section and with any other applicable rule or law, that confirms36 that all moneys received will be accounted for using generally accepted37 accounting principles, and that demonstrates how the center will maintain38 operational and fiscal accountability throughout the year. This informa-39 tion shall be provided to the Department of Juvenile Corrections and the40 Budget and Policy Analysis Division of the Legislative Services Office prior41 to the Department of Juvenile Corrections distributing any moneys. Each42 center must maintain adequate records for revenue and expenditure verifica-43 tion. If a center that receives moneys from the Idaho Millennium Income Fund44 ceases operations between July 1, 2026, and June 30, 2027, that center shall45 immediately notify the Department of Juvenile Corrections and the Budget and46 Policy Analysis Division of the Legislative Services Office and shall return47 all unexpended moneys to the Department of Juvenile Corrections as soon as48 practicable.49

6 (6) Each youth assessment center that receives moneys from the Idaho1 Millennium Income Fund shall provide reports demonstrating the State's re-2 turn on investment for moneys provided, including data-driven results on the3 success of the center. A uniform report template shall be created by a coali-4 tion of members that represent various youth assessment centers around the5 state, and all centers shall submit reports according to the template. The6 Idaho Safe Teen Assessment Center Coalition shall provide a semi-annual re-7 port on the use of the funds. The reports shall be provided to the Budget and8 Policy Analysis Division of the Legislative Services Office and the Depart-9 ment of Juvenile Corrections no later than December 30, 2026, and June 30,10 2027.11 (7) If the Joint Millennium Fund Committee determines that an indepen-12 dent audit is needed, then such an audit is required and will occur at the ex-13 pense of the associated center.14

SECTION 8. IDAHO COUNCIL ON DOMESTIC VIOLENCE AND VICTIM ASSISTANCE.15 (1) In addition to any other appropriation provided by law, there is hereby16 appropriated to the Department of Health and Welfare for the Council on Do-17 mestic Violence and Victim Assistance $3,000,000 from the Idaho Millennium18 Income Fund to be expended for trustee and benefit payments for children's19 advocacy centers.20 (2) Any moneys appropriated from the Idaho Millennium Income Fund for21 the Council on Domestic Violence and Victim Assistance shall be considered a22 onetime appropriation with no expectation of future financial support.23 (3) Funds are appropriated for the purpose of providing support for the24 10 children's advocacy centers across the state. The Council on Domestic Vi-25 olence and Victim Assistance shall submit a proposed plan to the Department26 of Health and Welfare prior to fund dispersal, outlining how the funds will27 be distributed and how oversight will be conducted during the funding pe-28 riod.29 (4) The Idaho Network of Children's Advocacy Centers shall provide a30 semi-annual report on the use of the funds. The reports shall be provided to31 the Budget and Policy Analysis Division of the Legislative Services Office32 and the Department of Health and Welfare no later than December 30, 2026, and33 June 30, 2027.34

SECTION 9. OFFICE OF DRUG POLICY. (1) In addition to any other appro-35 priation provided by law, there is hereby appropriated to the Office of Drug36 Policy $5,000,000 from the Idaho Millennium Income Fund to be expended for37 operating expenditures for the period July 1, 2026, through June 30, 2027.38 (2) Funds are appropriated for the purpose of conducting a statewide39 drug awareness media campaign. The Office of Drug Policy shall identify a40 suitable vendor through the state procurement process. The Joint Millennium41 Fund Committee shall be provided an opportunity to review proposals, as well42 as be consulted in the selection process.43 (3) The Office of Drug Policy shall provide a semi-annual report on the44 uses of the funds. The reports shall be provided to the Budget and Policy45 Analysis Division of the Legislative Services Office no later than December46 30, 2026, and June 30, 2027.47

7 (4) A full report, including research, all data collected, and report-1 ing metrics shall be presented by the Office of Drug Policy to the Joint Mil-2 lennium Fund Committee following the conclusion of the statewide media cam-3 paign.4

SECTION 10. MEDICAID CLAIMS PAYMENTS. (1) Notwithstanding the recom-5 mendation that no moneys be used for Medicaid claims as specified in Sec-6 tion 1 of this act, should funds be appropriated from the Idaho Millennium7 Income Fund for the purpose of mitigating the impact of the updated Medic-8 aid forecast on the General Fund, there shall be no expectation of Medicaid9 claim payments becoming a recurring expenditure of the Idaho Millennium In-10 come Fund.11 (2) Any remaining, unused moneys at the end of the fiscal year shall be12 returned to the Idaho Millennium Income Fund.13

SECTION 11. DEPARTMENT OF JUVENILE CORRECTIONS FOR STATEWIDE TRAINING14 AND COORDINATION OF SCHOOL RESOURCE OFFICERS. In addition to any other ap-15 propriation provided by law, there is hereby appropriated to the Department16 of Juvenile Corrections for the Community, Operations, and Program Services17 Program $30,000 from the Idaho Millennium Income Fund to be expended for18 operating expenditures for the period July 1, 2026, through June 30, 2027.19 Funds are appropriated to provide for statewide training and coordination20 for school resource officers.21

SECTION 12. CONDITIONS, LIMITATIONS, AND RESTRICTIONS. Appropriations22 made pursuant to this act are subject to the conditions, limitations, and re-23 strictions specified in this act.24

SECTION 13. An emergency existing therefor, which emergency is hereby25 declared to exist, this act shall be in full force and effect on and after26 July 1, 2026.27