Delegates approve bill to tax certain products to fund mental‑health facilities and school services

Sponsor Sebastian Scarlabang introduced Senate Bill 07.17 to create a dedicated funding stream for mental‑health hospitals and to expand mental‑health education and services in schools by imposing a modest tax on alcohol, tobacco and vapor products.

In opening remarks Scarlabang said the bill targets longstanding underfunding: "This bill creates a dedicated and sustainable funding stream by imposing a modest tax on alcohol, tobacco, and vapor products," and added funds would be deposited into the Department of Social Health Services’ excess fund for allocation to both state‑operated and private mental‑health hospitals and underfunded public schools.

Delegates questioned program design and salary language. One member noted a provision referencing a $72,000 figure; Scarlabang clarified that the language restricts grant funds from being used to fund raises above that level for positions paid through the grant, but he emphasized this is not a statewide salary cap.

An amendment was read that replaces the original effective date of 07/29/2026 with "90 days after passage." After floor debate the presiding officer called for a placard vote; the chair announced the motion passed and the bill was adopted.

Next steps: the bill’s effective date and the amendment require administrative action to set implementation milestones; the transcript does not include detailed appropriations estimates or an implementation plan.