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House approves fee on in-game microtransactions to fund youth mental-health programs

Colorado House of Representatives
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Summary

Lawmakers passed HB14-18 to create a dedicated enterprise funded by a fee on certain in-game microtransactions used by children; sponsors said revenue will support a youth mental-health core, out-of-school programs and enforcement for education rights, while opponents warned of administrative complexity and questioned fee design.

The House voted to pass House Bill 14-18 on May 6, establishing a youth mental-health enterprise funded by a fee on certain in-game add-on transactions in online gaming platforms that are used primarily by minors. Representative Zokai, the bill's sponsor, said the measure responds to documented harms ranging from predatory contact to compulsive play and financial exploitation. "These are digital environments built by some of the most sophisticated engagement engineers in the world," Zokai said, arguing platforms are "designed to capture attention, drive in‑platform spending, and keep kids logged in long after they should have stopped."

The bill creates three primary funding uses: a youth mental-health core placing trained mental-health staff in schools; grants for out-of-school-time programs to provide supervised, in-person activities; and an education-rights enforcement program for students with disabilities. Supporters said federal funding declines threaten these programs and that targeted state revenue could sustain them. Representative Camacho, co-sponsor, emphasized that the enterprise structure has Colorado precedent and said the proposed fee is narrowly targeted to add-on transactions rather than initial game purchases.

Opponents argued the bill will impose another fee, raise administrative and collection questions for the Department of Revenue, and could unintentionally tax families and young people. Representative Barone and others warned that the levy may not change behavior and questioned whether the state should be "charging" young people or parents in this way. The House adopted committee changes and the bill passed on the floor; the transcript records the chair's declaration that the ayes had it.

What happens next: The enterprise structure and fee mechanism will require rulemaking and coordination with the Department of Revenue and state enterprises staff; sponsors said revenues will be restricted to the specified youth programs.