Legislature(2025 - 2026)BARNES 124
05/09/2025 03:15 PM House LABOR & COMMERCE
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| Audio | Topic |
|---|---|
| Start | |
| HB110 | |
| HB138 | |
| HB156 | |
| SB79 | |
| Adjourn |
* first hearing in first committee of referral
+ teleconferenced
= bill was previously heard/scheduled
+ teleconferenced
= bill was previously heard/scheduled
| + | SB 133 | TELECONFERENCED | |
| += | HB 110 | TELECONFERENCED | |
| += | HB 138 | TELECONFERENCED | |
| + | TELECONFERENCED | ||
| += | SB 79 | TELECONFERENCED | |
| += | HB 156 | TELECONFERENCED | |
HB 138-BEH. HEALTH CRISIS SURCHARGE & FUND
3:44:30 PM
CO-CHAIR HALL announced that the next order of business would be
HOUSE BILL NO. 138, "An Act establishing a behavioral health
crisis services surcharge; establishing the behavioral health
crisis services fund; and providing for an effective date."
3:44:41 PM
CO-CHAIR HALL opened public testimony on HB 138.
3:44:56 PM
JASON CUSTER, Vice President, Regulatory & Government Affairs,
Alaska Power & Telephone (AP&T), testified in opposition to HB
138. He asserted that HB 138 would adversely impact people who
"suffer from socioeconomic distress," reporting that a 0.98 cent
rate increase would increase a typical lifeline bill by about 12
percent. He noted that a lifeline bill is typically $8 and that
there are 75,000 lifeline-eligible customers in Alaska. He
reported that, for non-lifeline customers, a 0.98 cent rate
increase was representative of a 5 percent increase. He
asserted that the surcharge would create administrative tasks
and costs that would likely be passed onto the customers and
predicted that some customers would discontinue their telephone
service as a result. He asserted that, with fewer customers,
utilities would be pressured to increase rates to cover the
operating costs for the people who need and depend on telephone
services. He said that the proposed 0.98 cents surcharge would
be more than ten times California's surcharge of 0.08 cents and
further noted that California caps its future surcharges at 0.30
cents. He argued that HB 138 would force telecom utilities into
the role of tax collector and further stated that AP&T currently
pays the Mental Health Trust Authority for utility right of way.
MR. CUSTER argued that the proposed surcharge was a regressive
tax, and that low-income and vulnerable populations would be the
most affected by HB 138. He asserted that it was at odds with
state efforts to improve affordability of telecom services in
Alaska. He encouraged committee members not to advance HB 138.
3:47:47 PM
KERMIT WILSON, Executive Director, Advocacy Board, Alaska Mental
Health Board (AMHB), testified in support of HB 138. She stated
that HB 138 would establish a surcharge on landlines and
wireless phones to provide funding to expand Alaska's capacity
to respond to mental crises and emergencies. He reported that
adults and youth are increasingly using the call center, with
contacts in 2024 reaching an all-time high of just shy of 40,000
calls. He stated that it was practical to increasing funding to
services that would prevent costly emergencies. He stated that
HB 138 would offer a sustainable funding solution to address the
increasing need for mental health and substance use crises
services, such as the 988 hotline, crisis stabilization, and the
mobile crisis team. He stated that the Advisory Board on
Alcoholism and Drug Abuse and the Alaska Mental Health Board
encourage the passage of HB 138.
3:49:35 PM
BRENDA MCFALANE, Crisis Now Coordinator, City of Fairbanks,
testified in support of HB 138. She stated that Fairbanks has
partnered with Alaska Behavioral Health to dispatch the mobile
crisis team for the last 3 years. She stated that, in
collaboration with the local police officers, the mobile crisis
team has kept over 82 percent of community members in the
community, diverting them from hospitals, incarceration, or
travel to Anchorage or out of state for care. She reported that
they received 113 calls in March 2025 and noted that the call
center saves the state thousands of dollars in emergency care.
She emphasized that it was very important to support life-saving
services, noting that mobile crisis teams are proven and
effective, save money, and prevent potentially fatal
interactions with law enforcement. She thanked the committee
members for their attention to HB 138.
3:51:53 PM
DARCI NEVZUROFF, Director of Operations, Division of Behavioral
Services, South Central Foundation (SCF), testified in support
of HB 138. She stated that SCF is investing over $120 million
to construct two new facilities in Anchorage: a crisis
stabilization center and a crisis residential center. She
stated that SCF is the largest provider of mental health
services in Alaska. She stated that individuals that can access
help immediately are less likely to need more expensive
interventions, such as emergency hospital stays, psychiatric in-
patient, or involvement in the criminal justice system, in the
long run. She stated that crisis services are expensive to
start up and sustain and noted that HB 138 provides for a
sustainable funding model. She strongly urged the support of HB
138.
3:53:56 PM
STEVE WILLIAMS, Director, Diversion Programming, Anchorage
Police Department (APD), testified in support of HB 138. He
stated that HB 138 would provide an additional revenue stream to
support the components of a comprehensive system of care for
individuals experiencing a behavioral health crisis. He stated
that this revenue would cover a crisis care line, mobile
response teams, crisis stabilization and residential centers.
He encouraged the committee to pass HB 138 as written.
3:55:19 PM
CO-CHAIR HALL, after ascertaining that there was no one else who
wished to testify, closed public testimony on HB 138.
3:55:35 PM
REPRESENTATIVE COULOMBE moved to adopt Amendment [1] to HB 138,
labeled 34-LS0471\I.1, A. Radford, 5/5/25, which read as
follows:
Page 1, line 7:
Delete "$.98"
Insert "$.48"
CO-CHAIR FIELDS objected.
REPRESENTATIVE COULOMBE explained that the amendment would
decrease the surcharge, or "tax," from 0.98 cents to 0.48 cents,
noting that it could be burdensome to low-income and senior
individuals. She further noted that there is already almost $8
of taxes on phone lines, citing the 911 charge, the universal
service fund surcharge, universal access surcharge, et cetera.
She stated that 0.48 cents would be adequate to fund only the
988 call line. She said that phones are necessities.
CO-CHAIR FIELDS offered his appreciation but stated that he
could not support the amendment because of how difficult it had
been to get funds appropriated for behavioral health.
REPRESENTATIVE SADDLER offered his support for the amendment and
noted that HB 138 was proposing the highest surcharge in the
nation. He noted that Vermont currently charged the highest
surcharge at 0.72 cents a month. He cited the arguments about
the surcharge being regressive on careline phones.
CO-CHAIR FIELDS maintained his objection.
3:58:32 PM
A roll call vote was taken. Representatives Coulombe and
Saddler voted in favor of the motion to adopt Amendment [1] to
HB 138. Representatives Burke, Carrick, Fields, and Hall voted
against it. Therefore, Amendment [1] failed to be adopted by a
vote of 2-4.
3:59:10 PM
REPRESENTATIVE COULOMBE moved to adopt Amendment [2] to HB 138,
labeled 34-LS0471\I.2, A. Radford, 5/7/25, which read as
follows:
Page 1, line 1:
Delete "behavioral health crisis services"
Insert "988 suicide prevention and mental health
crisis hotline system"
Page 1, line 2:
Delete "behavioral health crisis services"
Insert "988 suicide prevention and mental health
crisis hotline system"
Page 1, line 5:
Delete "Behavioral Health Crisis Services"
Insert "988 Suicide Prevention and Mental Health
Crisis Hotline System"
Page 1, lines 6 - 7:
Delete "Behavioral health crisis services
surcharge; behavioral health crisis services"
Insert "988 suicide prevention and mental health
crisis hotline system surcharge; 988 suicide
prevention and mental health crisis hotline system"
Page 1, line 7:
Delete "behavioral health crisis services"
Insert "988 suicide prevention and mental health
crisis hotline system"
Page 1, line 11:
Delete "behavioral health crisis services"
Insert "988"
Page 1, lines 13 - 14:
Delete "behavioral health crisis services"
Insert "988"
Page 2, lines 1 - 2:
Delete "behavioral health crisis services"
Insert "988"
Page 2, lines 3 - 4:
Delete "behavioral health crisis services"
Insert "988"
Page 2, line 6:
Delete "behavioral health crisis services"
Insert "988"
Page 2, line 9:
Delete "behavioral health crisis services"
Insert "988"
Page 2, lines 11 - 12:
Delete "behavioral health crisis services"
Insert "988"
Page 2, line 13:
Delete "behavioral health crisis services"
Insert "services provided to users of the 988
suicide prevention and mental health crisis hotline"
Page 2, line 17:
Delete "behavioral health crisis services"
Insert "988"
Page 2, lines 24 - 25:
Delete "behavioral health crisis services"
Insert "988"
Page 2, line 27:
Delete "behavioral health crisis services"
Insert "988"
Page 2, line 28:
Delete "behavioral health crisis services"
Insert "988"
Page 2, line 31:
Delete "behavioral health crisis services"
Insert "988"
Page 3, line 6:
Delete "behavioral health crisis services"
Insert "988"
Page 3, line 8:
Delete "behavioral health crisis services"
Insert "988 suicide prevention and mental health
crisis hotline system"
Page 3, lines 9 - 10:
Delete "behavioral health crisis services"
Insert "988"
Page 3, line 11:
Delete "behavioral health crisis services"
Page 3, line 14:
Delete "may"
Insert "shall"
Page 3, line 16, through page 4, line 4:
Delete all material and insert:
"(1) ensuring the efficient and effective
routing of calls made to the 988 suicide prevention
and mental health crisis hotline to an appropriate
crisis center; and
(2) personnel and the provision of acute
mental health, crisis outreach, and stabilization
services by directly responding to the 988 suicide
prevention and mental health crisis hotline."
Reletter the following subsection accordingly.
Page 4, following line 5:
Insert a new paragraph to read:
"(1) "988 surcharge" means the 988 suicide
prevention and mental health crisis hotline system
surcharge;"
Renumber the following paragraphs accordingly.
CO-CHAIR HALL objected.
REPRESENTATIVE COULOMBE explained that the amendment would take
out funding for different types of behavioral health services,
limiting it to only the 988 call line. She again shared her
concern about the funds being shared equitably among various
communities. She opined that people living in rural Alaska
would get frustrated were Anchorage to receive all of the grant
funding.
REPRESENTATIVE SADDLER offered his support for the amendment.
He offered his understanding that the amendment would constrain
the surcharge strictly to use of the 988. He additionally
commented that federal standards prohibit the fee from being
used for anything other than 988 support.
4:01:09 PM
CO-CHAIR FIELDS offered his appreciation for the desire to
distribute funds equitably across Alaska communities. He
pointed to prior behavioral health grants, noting that they have
been relatively equitable between urban and rural communities.
4:01:39 PM
REPRESENTATIVE CARRICK stated that she was initially inclined to
support the amendment because she agreed with the amendment
sponsors comments on the non-specificity of funds. She noted
that the rates of substance abuse and rates of mental health
issues will vary by community. She noted that in her community
of Fairbanks, there are specific issues with individuals needing
services in the middle of the night that are not a jail cell or
the hospital. She said she shared concerns with the amendment
sponsor on distribution of funds. She further stated that HB
138 was a "revenue-neutral" way to collect funds to address
behavioral health needs in Alaska. She said that ultimately,
she was opposed to Amendment [2].
REPRESENTATIVE COULOMBE asserted that the amendment would create
a dedicated fund that could not be appropriated for purposes
other than behavioral health. She noted that "behavioral health
crisis service fund" was loosely defined in HB 138 and could be
used for purposes other than behavioral health with the way the
legislation was currently written. She further noted that the
amendment would ensure that the 988 funds could not be swept by
future legislatures.
4:04:51 PM
CO-CHAIR HALL maintained her objection.
A roll call vote was taken. Representatives Saddler and
Coulombe voted in favor of the motion to adopt Amendment [2] to
HB 138. Representatives Carrick, Burke, Fields, and Hall voted
against it. Therefore, Amendment [2] failed to be adopted by a
vote of 2-4.
4:05:24 PM
REPRESENTATIVE SADDLER indicated that he would not be offering
Amendment [3].
REPRESENTATIVE SADDLER moved to adopt Amendment [4] to HB 138,
labeled 34-LS0471\I.4, A. Radford, 5/7/25, which read as
follows:
Page 3, line 16:
Delete "(1)"
Page 3, line 19:
Delete ";"
Insert "."
Page 3, line 20, through page 4, line 3:
Delete all material.
CO-CHAIR HALL objected.
REPRESENTATIVE SADDLER explained that the amendment would
prevent the surcharge from being used for anything other than
the maintenance and improvement of the 988 system. He stated
that, under HB 138 as currently written, the surcharge could be
used for "direct services, workforce development, recruitment
and retention, public outreach, public education and data
collection, and administrative services." He reasoned that the
variety of services resulted in the high surcharge of 0.98 cents
and offered his preference to reduce the burden and costs on
consumers.
4:06:51 PM
REPRESENTATIVE COULOMBE asked how Amendment [4] was different
from Amendment [2].
REPRESENTATIVE SADDLER referred to page 3 of the proposed
legislation and explained that the amendment would delete
[paragraphs (2)-(7) under Section 1, subsection (g)].
4:07:27 PM
The committee took an at-ease from 4:07 p.m. to 4:08 p.m.
4:08:31 PM
CO-CHAIR HALL maintained her objection.
A roll call vote was taken. Representatives Coulombe and
Saddler voted in favor of the motion to adopt Amendment [4] to
HB 138. Representatives Burke, Carrick, Fields, and Hall voted
against it. Therefore, Amendment [4] failed to be adopted by a
vote of 2-4.
4:09:19 PM
REPRESENTATIVE SADDLER moved to adopt Amendment [5] to HB 138,
labeled 34-LS0471\I.5, A. Radford, 5/7/25, which read as
follows:
Page 4, following line 13:
Insert new bill sections to read:
"* Sec. 2. AS 43.98.080(a), enacted by sec. 1 of
this Act, is amended to read:
(a) A monthly behavioral health crisis services
surcharge [OF $.98 A MONTH] is imposed for each
wireless telephone number and for each local exchange
access line for wireline telephones. The department
shall determine the amount of the surcharge based on
the actual cost of providing behavioral health crisis
services during the preceding fiscal year.
* Sec. 3. Section 2 of this Act takes effect
July 1, 2026."
Renumber the following bill section accordingly.
Page 4, line 14:
Delete "This"
Insert "Except as provided in sec. 3 of this Act,
this"
CO-CHAIR HALL objected.
REPRESENTATIVE SADDLER explained that the amendment would allow
the surcharge to be adjusted annually a year after
implementation. He stated the intent was to allow the fee to
reflect the "real operating expenses."
REPRESENTATIVE SADDLER moved to adopt Conceptual Amendment 1 to
Amendment [5], which he stated as follows:
I propose Conceptual Amendment 1 to Amendment [5] that
would set an upper limit to the fee at 0.98 cents per
line per month. By clarification, that means the fee
could be adjusted to pay the actual costs but does not
leave it open-ended. It puts the per line cap
envisioned in the original bill but still allows the
mechanism for annual adjustments in case that expense
were less than that full amount.
4:10:58 PM
CO-CHAIR FIELDS asked for additional explanation.
REPRESENTATIVE SADDLER explained that the conceptual amendment
would place an upper limit on the proposed fee at 0.98 cents per
line.
CO-CHAIR HALL announced there being no objection, Conceptual
Amendment 1 to Amendment [5] was adopted.
4:12:11 PM
REPRESENTATIVE CARRICK stated that the language in Amendment
[5], as amended, was nebulous, citing "The department shall
determine the amount of the surcharge based on the actual cost
of providing behavioral health crisis services". She asked how
Representative Saddler envisioned the Department of Health (DOH)
would make its determination.
REPRESENTATIVE SADDLER clarified that he was referring to
behavioral health services as defined by the proposed
legislation, which he stated were found on page 3, lines 16
through page 4, line 3.
REPRESENTATIVE CARRICK asked for confirmation that the amendment
would not, theoretically, prevent [DOH] from charging 0.98 cents
a month.
REPRESENTATIVE SADDLER confirmed that was correct.
REPRESENTATIVE CARRICK said she presumed the need in Alaska was
higher than 0.98 cents a customer and said she did not
anticipate the need being less than 0.98 cents for a long time.
She offered her appreciation for the intent of the amendment.
REPRESENTATIVE SADDLER offered his concern that HB 138 envisions
funding a lot of services through landline and cellphone fees
and asserted that there should be a cap on the funding
mechanism. He urged a yes vote from committee members.
4:15:06 PM
CO-CHAIR HALL maintained her objection to Amendment 5, as
amended.
A roll call vote was taken. Representatives Saddler and
Coulombe voted in favor of the motion to adopt Amendment [5], as
amended, to HB 138. Representatives Burke, Carrick, Fields, and
Hall voted against it. Therefore, Amendment [5], as amended,
failed to be adopted by a vote of 2-4.
4:15:42 PM
CO-CHAIR FIELDS moved to adopt Amendment [6] to HB 138, labeled
34-LS0471\I.6, A. Radford, 5/9/25, which read as follows:
Page 4, line 14:
Delete "2025"
Insert "2026"
4:15:47 PM
The committee took a brief at-ease at 4:15 p.m.
4:16:35 PM
CO-CHAIR HALL objected for the purpose of discussion.
CO-CHAIR FIELDS explained that the amendment would change the
effective date of the proposed legislation from 2025 to 2026.
CO-CHAIR HALL removed her objection. There being no further
objection, Amendment [6] was adopted.
4:17:19 PM
REPRESENTATIVE GENEVIEVE MINA, Alaska State Legislature, noted
that she was open to excluding lifeline phones from the 988
surcharge proposed under HB 138, as amended, as she did not
intend to burden those who are struggling to pay their phone
bills.
4:18:27 PM
REPRESENTATIVE SADDLER argued that the "behavioral health crisis
fee" was actually a regressive phone line tax that would not
necessarily serve every individual that was paying for it. He
asserted that the proposed legislation would disqualify Alaska
from the 988 federal grant funding. He noted that the
behavioral health crisis was a difficult situation and commended
the sponsor for addressing it but asserted that it should be
addressed through a different legislative funding mechanism. He
stated that he would not be supporting HB 138, as amended.
4:19:57 PM
CO-CHAIR FIELDS moved to report HB 138, as amended, out of
committee with individual recommendations and the accompanying
fiscal notes.
REPRESENTATIVE SADDLER objected.
A roll call vote was taken. Representatives Burke, Carrick,
Fields, and Hall voted in favor of the motion to report HB 138,
as amended, out of committee. Representatives Coulombe and
Saddler voted against it. Therefore, CSHB 138(L&C) was reported
out of the House Labor and Commerce Standing Committee by a vote
of 4-2.
| Document Name | Date/Time | Subjects |
|---|---|---|
| HB 138 Amendment 1 (I.1).pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 138 |
| HB 138 Amendment 2 (I.2).pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 138 |
| HB 138 Amendment 3 (I.3).pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 138 |
| HB 138 Amendment 4 (I.4).pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 138 |
| HB 138 Amendment 5 (I.5).pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 138 |
| HB 156 Amendment A.1.pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 156 |
| HB 156 Amendment A.3.pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 156 |
| HB 156 Amendment A.2.pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 156 |
| HB156 Amendment A.6.pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 156 |
| HB 156 Amendment A.7.pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 156 |
| HB 156 Amendment A.5.pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 156 |
| HB 138 Amendment I.6.pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 138 |
| HCSSB 79 Ver N.pdf |
HL&C 5/9/2025 3:15:00 PM |
SB 79 |
| HCSSB79 Summary of Changes Ver A - Ver N 5.9.2025.pdf |
HL&C 5/9/2025 3:15:00 PM |
SB 79 |
| HCSSB79 Sectional Analysis Ver N 5.9.2025.pdf |
HL&C 5/9/2025 3:15:00 PM |
SB 79 |
| HB 138 Amendment A.8.pdf |
HL&C 5/9/2025 3:15:00 PM |
HB 138 |