Bill
SB 5696
Expands 0.1% local mental health/chemical dependency tax to fund new construction of facilities, in addition to renovations, for treatment and related services.
SB 5696 (2025) — Summary
Overview
- Purpose: Clarify and expand the uses of locally collected sales and use tax revenue dedicated to mental health and chemical dependency programs, by authorizing the construction of new facilities in addition to the existing use for modifying facilities.
- Status: Governor signed; Chapter 152, 2025 Laws; Effective date: 7/27/2025.
- Sponsor: Senator Curtis King.
What the bill would do
- Expands allowable uses of the local mental health and chemical dependency sales tax (up to 0.1%) to include new construction of facilities needed to provide, operate, or deliver mental health treatment and chemical dependency programs or services.
- Keeps existing authorized uses, such as modifying existing facilities, but adds the ability to fund new construction projects.
Key provisions
- New construction authority: Revenue from the local 0.1% tax may be used for constructing new facilities addressing the health and safety needs related to provision of chemical dependency or mental health treatment programs or services.
- Scope of programs and services: Includes treatment services, case management, transportation, housing, and other components of coordinated treatment programs.
- Therapeutic courts: The bill affirms that every county that authorizes the tax shall, and every other county may, establish a therapeutic court component for dependency proceedings tailored to the county’s size and resources.
- Funding and appropriations: No new state appropriation is introduced by the bill; the fiscal note is listed as available.
Fiscal note and funding
- Appropriation: None specified.
- Fiscal impact: Local fiscal implications; funds continue to come from local taxes (0.1%). No state-level appropriation changes required by this bill.
Effective date and timeline
- Effective date: 90 days after adjournment of the 2025 session (per the bill, the practical enactment date aligns with the chapter’s July 2025 effective date).
- Legislative timeline highlights:
- Introduced: February 7, 2025
- Passed both chambers in April 2025
- Signed by Governor: April 22, 2025
Who is affected
- Local governments that impose the local mental health and chemical dependency sales tax (counties and qualifying cities up to 0.1%).
- Agencies and programs delivering mental health and chemical dependency treatment, including therapeutic courts, treatment providers, case management, transportation, housing, and related services.
- Residents benefiting from expanded facilities and services funded by the tax.
Impact and considerations
- Practical effect: Counties and eligible cities can plan and fund new construction projects for treatment facilities, potentially reducing wait times and expanding capacity alongside existing renovations.
- Local control: Decisions about construction and use of funds remain at the local level, within the framework of the tax and program requirements.
Compiled from official sources — confirm details with the bill’s official record.
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