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.