Panel backs enterprise funded by fee on certain in‑game purchases to support youth mental health, 6–5

House Bill 1418 would create a state enterprise to fund youth mental‑health programs by imposing a fee on add‑on in‑game purchases on online gaming platforms that are reasonably likely to be accessed by minors. Sponsors Representative Zocai and Representative Camacho said the fee is designed to be a narrowly tailored charge—arguing it is a fee, not a tax—whose revenue would support three programmatic priorities: a Youth Mental Health Core (AmeriCorps‑style peer navigators in schools), out‑of‑school time grants for after‑school and summer programs, and an educational rights enforcement program for students with disabilities.

Representative Zocai detailed research and anecdotes about screen time, platform design features and potential harms to children, and framed the enterprise as a sustainable replacement for federal funding that is being withdrawn. Co‑sponsor Representative Camacho described legal precedent and existing Colorado enterprises (for example, the Petroleum Storage Tank Fund) as analogous.

Proponents included youth‑service organizations and providers (Colorado Children’s Campaign, Youth Mental Health Corps, Children’s Hospital Colorado, Boys & Girls Clubs) and frontline AmeriCorps members who described the programs’ work and argued that a stable state funding stream is needed to avoid program cuts. Trey Rogers, who has represented TABOR litigants, testified that the charge would qualify as a fee under TABOR precedent if it remains reasonably related to services and targeted to those likely to benefit; he urged adoption of amendments to address concerns.

Opponents included Ryan Templeton of the Behavioral Health Administration, Amber Egbert of the Colorado Department of Revenue and Aaron Siegel of the Entertainment Software Association. The opponents emphasized significant concerns: (1) legal vulnerability under TABOR and the dormant commerce clause, (2) administrative and timing burdens on the Department of Revenue to collect and administer the fee, (3) privacy and geolocation issues industry may need to resolve to determine which players are subject to the charge, and (4) the risk that revenue could be challenged and leave funded programs without stable support.

Sponsors offered and the committee adopted a package of amendments (including definitions to exclude ISPs, clarify covered platforms using COPPA‑based targeting definitions, require point‑of‑sale US‑dollar equivalents for in‑game currencies, strike a 2% youth‑audience threshold and add a severability clause). After extended debate about process, constitutional exposure and program need, Representative Camacho moved HB 1418 as amended to Appropriations; the motion passed on a 6–5 roll call.