Bill
HB 1418
Colorado levies a 5% fee on online gaming add-ons to fund three youth mental health programs via a new state-run enterprise within the Behavioral Health Administration.
HB 1418 (2026A) – Colorado: Online Add-on Transaction Fee Youth Service Enterprise
Overview
- Purpose: Create a dedicated funding mechanism and programmatic structure to provide youth mental health services in Colorado through an internet-based “Youth Mental Health Services Access Enterprise,” funded by a fee on add-on transactions on certain online gaming platforms that target or are accessible to youth.
- Key result: Establish a non-tax, government-owned enterprise within the Behavioral Health Administration (BHA) that collects a fee from covered online gaming platforms and uses the revenue to operate and fund three youth mental health initiatives, starting in phases from 2027 onward.
What is a “Covered Platform” and an “Add-on Transaction”
- Covered Platform: A legal business entity (or affiliate) with substantial online revenue, that offers online gaming services/products/features accessible to youth, collects users’ personal data (or has it processed), and determines the purposes/means of data processing.
- Add-on Transaction: An online item or feature acquired in a gaming service that gives an advantage, or alters/enhances the gaming experience.
Fee and Revenue Allocation
- Fee imposition: Beginning January 1, 2027, each covered platform must impose and collect a fee on every add-on transaction and remit the full amount to the Colorado Department of Revenue (DOR).
- Initial fee: 5% of the add-on transaction amount.
- Fee adjustments: Beginning October 1, 2027, the enterprise may adjust the fee amount (subject to statutory limits and fiscal constraints).
- Revenue allocation after administrative costs:
- 40% to operate and fund the Youth Mental Health Peer Navigator Grant Program.
- 35% to operate and fund the Crisis Resolution Team Program.
- 25% (starting July 1, 2027) to operate the existing Youth Mental Health Services Program.
Enterprise and Fund Structure
- Creation: The Youth Mental Health Services Access Enterprise is created within the Behavioral Health Administration as a government-owned business (Type 1 entity). It operates as an enterprise for purposes of the state constitution (Section 20, Article X).
- Fund: A dedicated Youth Mental Health Services Access Enterprise Fund is created to hold fee revenue, bond proceeds, and other money appropriated by the General Assembly. The fund is continuously appropriated to the enterprise.
- Governance: The enterprise is directed by a board appointed by the Governor, with powers to contract, issue revenue bonds (payable only from fund money), adopt rules, and set policies in line with this act.
Programs Created or Expanded
1) Youth Mental Health Peer Navigator Grant Program
- Purpose: Award grants to entities that recruit and train young adults to provide prevention services, peer support, and system navigation for youth in schools or community settings.
- Eligible recipients: Entities including tribes, higher education, local governments, state agencies, and nonprofits providing youth mental health programming in schools or community settings.
- Grant administration: The enterprise administers the program in coordination with the BHA and the Governor’s Commission on Community Service (Serve Colorado). Requires clear grant procedures, eligibility criteria, reporting requirements, and annual accounting.
- Reporting: Annual reports due Jan. 31 each year, with program metrics published publicly.
2) Crisis Resolution Team Program
- Purpose: Provide community-based de-escalation and stabilization services for youth in high-acuity behavioral health crises and support for caregivers.
- Providers: Crisis resolution teams contract with the enterprise to deliver services (minimum engagement and service duration requirements).
- Services: Counseling/therapy, crisis management, family coaching, medication management, and care coordination. Services available at least three days a week for 4–6 weeks, with flexibility based on clinical needs.
- Data and evaluation: Providers must collect participant data (with privacy protections) and report outcomes; the program includes an annual external evaluation.
- Coordination: Works with local community partners (schools, health providers, law enforcement, hospitals, etc.) and uses existing community coordination frameworks.
3) Youth Mental Health Services Program (Revised)
- Previously administered by the BHA; under this bill, the enterprise would operate and fund this program starting July 1, 2027.
- Reimbursement: May reimburse providers for up to six mental health sessions per youth (increased from the prior cap of three sessions in current law).
- Portal and access: Uses a portal/website to facilitate access to mental health services and initial screenings.
Effective Dates and Timeline
- January 1, 2027: Covered platforms must start imposing the fee and remitting it to the Department of Revenue.
- October 1, 2027: The enterprise may adjust the fee amount.
- July 1, 2027: The enterprise takes over operation and funding of the Youth Mental Health Services Program (transition from BHA to Enterprise for this program).
- July 1, 2027 onward: The enterprise is authorized to reimburse providers for additional sessions (up to six).
- 2033: Subsection detailing the enterprise not being subject to certain voter-approved financial constraints is slated to expire (repeal of a temporary provision after July 1, 2033).
Other Provisions
- Open meetings and public records: The enterprise remains subject to open meetings and public records laws, with records treated as public records unless privacy laws apply.
- Fiscal limits: First five fiscal years cap on fee revenue (not exceeding $100 million) to qualify as an enterprise without certain supermajority voter approvals. The limit is repealed in 2033.
- Reporting: Annual reporting to the legislature on program activities and grant awards; ongoing public reporting via the BHA website.
Who is Affected
- Covered platforms: Online gaming platforms/services accessible to Colorado youth will pay the add-on transaction fee.
- Youth: Colorado youths who engage with online gaming services may benefit from increased access to mental health services and crisis support.
- Providers: Mental health professionals and organizations participating in peer navigation, crisis resolution, and standard youth mental health services receive reimbursement and support.
- Government: State agencies (BHA, DOR, Department of Treasury) administer funding, oversight, and reporting.
Bottom line
HB 1418 establishes a dedicated, fee-funded enterprise to expand youth mental health services in Colorado, funded by a 5% fee on add-on transactions from online gaming platforms accessed by youth. It creates three new or expanded programs, transfers governance and funding responsibilities to the Youth Mental Health Services Access Enterprise (operating under BHA), and sets forth reporting, privacy, and operational requirements to ensure services reach youth and caregivers while maintaining fiscal and administrative controls.
Compiled from official sources — confirm details with the bill’s official record.
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