HB 26-1418

House Bill 26-1418, which has been signed into law, requires social media platforms that generate significant revenue from online gaming services and have youth users to impose a fee on in-game purchases. The collected fees will be used to fund mental health programs for young people, including peer support and crisis intervention services. Additionally, the bill establishes an enterprise to award grants supporting out-of-school time programs focused on children's mental health and well-being. This law aims to improve youth mental health by leveraging revenue from online gaming platforms.

Official Summary

The bill requires each covered social media platform (covered platform) to impose a fee on each add-on transaction that occurs on the covered platform. The bill creates the youth mental health services access enterprise (enterprise) in the behavioral health administration (BHA) to use the fee revenue to operate and fund programs that provide youth mental health services. The youth mental health services access enterprise constitutes an enterprise for purposes of section 20 of article X of the state constitution.     A 'covered platform' means a sole proprietorship, a partnership, a limited liability company, a corporation, an association, or another legal entity, or an affiliate thereof, that:Conducts business in this state; Generates revenue directly from add-on transactions conducted in an online gaming service, product, or feature;Generates a majority of its annual revenue from online gaming services, products, or features ; Makes available Publishes one or more online gaming services, products, or features that are reasonably likely to be accessed by a youth;Collects users' personal data or has users' personal data collected on its behalf by a processor ; and Solely or jointly with others Determines the purposes and means of the processing of users' personal data.     'Add-on transaction' means an online a transaction through which a player or participant in a video game accessed via an online gaming service, product, or feature acquires:An item or ability that provides the player or participant an advantage over other players or participants of the video game ; orA feature that alters or enhances the video game as accessed by the online gaming service, product, or feature.      The bill creates the youth mental health services access enterprise fund, consisting of money credited to the fund as fee revenue, any money received from the issuance of revenue bonds, and any other money that the general assembly may appropriate or transfer to the youth mental health services access enterprise fund. Money in the youth mental health services access enterprise fund is continuously appropriated to the youth mental health services access enterprise.     After deducting its administrative expenses, the youth mental health services access enterprise is required to allocate the remaining fee revenue credited to the fund as follows:40% to operate and fund the youth mental health peer navigator grant program, which program is created in the bill (see below);35% to operate and fund the crisis resolution team program, which program is created in the bill (see below); and25%, beginning July 1, 2027, to operate the existing youth mental health services program (see below).     The initial amount of the fee is 5% of the amount of the add-on transaction. On and after October 1, 2027, the youth mental health services access enterprise may adjust the amount of the fee.      The bill creates the youth mental health services access enterprise fund (fund), consisting of money credited to the fund as fee revenue, any money received from the issuance of revenue bonds, and any other money that the general assembly may appropriate or transfer to the fund. Money in the fund is continuously appropriated to the enterprise.     The bill creates the youth mental health peer navigator grant program to award grants to entities that recruit and train young adults to provide prevention services, peer support, and system navigation to youth in schools or community-based settings.     The bill creates the crisis resolution team program to provide community-based de-escalation and stabilization services to youth who are experiencing high-acuity behavioral health crises and to their caregivers.     Under current law, the BHA operates the youth mental health services program to facilitate access to mental health services, including substance use disorder services, for youth in response to mental health needs identified in an initial mental health screening through the program's web-based portal. The program reimburses providers for up to 3 mental health sessions with a youth. The bill directs the youth mental health services access enterprise, rather than the BHA, to operate and fund the youth mental health services program beginning July 1, 2027. The bill also allows the youth mental health services access enterprise to reimburse a provider for up to 6 mental health sessions with a youth.      The bill requires a covered platform to ensure that the purchase price for an online gaming service, product, or feature that is reasonably likely to be accessed by a minor to be listed in United States dollars at the point of sale.      The bill creates the youth programming and protections enterprise to: Award grants through the existing out-of-school time program grant program; and Support the department of education's enforcement of educational rights on behalf of children.      The youth programming and protections enterprise constitutes an enterprise for purposes of section 20 of article X of the state constitution.      The bill creates the youth programming and protections enterprise fund. In each state fiscal year, after the state treasurer has credited $8 million to the youth mental health services access enterprise fund, the state treasurer must credit any other money received as fees to the youth programming and protections enterprise fund.      Under current law the department of education administers the out-of-school time program grant program, and the state board of education awards grants from the program, subject to available appropriations. The bill directs the department of education to consult with the youth programming and protections enterprise in administering the program, and the bill directs the youth programming and protections enterprise to award grants from the program in consultation with the state board of education. The bill also requires the program to provide programming and services that support the mental health and well-being of children and youth.      For the 2026-27 state fiscal year, the bill appropriates: $294,984 to the department of revenue from the general fund; $26,500 to the department of law from reappropriated funds; $145,750 to the department of law from the youth mental services access enterprise fund created in the bill; and $79,500 to the department of law from the youth programming and protections enterprise fund created in the bill.(Note: Italicized words indicate new material added to the original summary; dashes through words indicate deletions from the original summary.)(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Topics

Votes