Online Add-on Transaction Fee Youth Service Enterprise

The act requires each covered social media platform (covered platform) to impose a fee on each add-on transaction that occurs on the covered platform. The act creates the youth mental health services access 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.     The act defines a 'covered platform' as 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;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; andDetermines the purposes and means of the processing of users' personal data.     The act defines an 'add-on transaction' as 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 act 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 act;35% to operate and fund the crisis resolution team program, which program is created in the act; and25%, beginning January 1, 2028, to operate the existing youth mental health services program.     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 act 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 act 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 youth mental health services program reimburses providers for up to 3 mental health sessions with a youth. The act directs the youth mental health services access enterprise, rather than the BHA, to operate and fund the youth mental health services program beginning January 1, 2028. The act also allows the youth mental health services access enterprise to reimburse a provider for up to 6 mental health sessions with a youth.     The act creates the youth programming and protections enterprise to:Award grants through the existing out-of-school time program grant program; andSupport 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 act 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 act directs the department of education to consult with the youth programming and protections enterprise in administering the out-of-school time program grant program, and the act directs the youth programming and protections enterprise to award grants from the program in consultation with the state board of education. The act also requires the out-of-school time program grant program to provide programming and services that support the mental health and well-being of children and youth.     The act 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.     For the 2026-27 state fiscal year, the act 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 act; and$79,500 to the department of law from the youth programming and protections enterprise fund created in the act.(Note: This summary applies to this bill as enacted.)