Online Add-on Transaction Fee Youth Service Enterprise

     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 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 a majority of its annual revenue from online services;
• Makes available 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 transaction through which a player or participant in 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; or
• A feature that alters or enhances the online gaming service, product, or feature.

     After deducting its administrative expenses, the enterprise is required to allocate the remaining fee revenue 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); and
• 25%, 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 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 enterprise, rather than the BHA, to operate and fund the youth mental health services program beginning July 1, 2027. The bill also allows the enterprise to reimburse a provider for up to 6 mental health sessions with a youth.


(Note: This summary applies to this bill as introduced.)