To create a new dedicated fund for excise tax revenue from firearms and ammunition (Proposition KK) and to redirect and consolidate behavioral health-related funding.
Key Provisions
New Fund Creation
Establishes the Behavioral and Mental Health Excise Tax Cash Fund.
This fund is designated to receive and manage revenue from Proposition KK excise taxes on firearms and ammunition.
Money in this fund must be used for behavioral and mental health-related purposes.
Fund Transfer Requirements
Under current law, $8 million annually from Proposition KK goes to the Behavioral and Mental Health Cash Fund.
The bill redirects this $8 million to the new excise tax cash fund instead.
Balance Reallocation
All existing money from Proposition KK already in the Behavioral and Mental Health Cash Fund must be transferred to the new Excise Tax Cash Fund.
Fund Sunset Adjustment
The Behavioral and Mental Health Cash Fund is currently set to repeal on July 1, 2032.
The bill accelerates that repeal date to July 1, 2027, effectively phasing it out sooner in favor of the new fund.
Overall Effect
Replaces the existing behavioral health cash fund with a new, more targeted excise tax fund tied to Proposition KK.
Streamlines and redirects firearm tax revenue exclusively into the newly established fund.
Shortens the lifespan of the old fund to ensure transition and consolidation.
Summary
Joint Budget Committee. The bill creates the behavioral and
mental health excise tax cash fund that is designated to hold money received from the firearm and ammunition excise tax (Proposition KK) for certain behavioral health-related purposes.
Current law requires $8 million that is received from Proposition
KK to be transferred to the behavioral and mental health cash fund. The bill requires this money to instead be transferred to the behavioral and mental health excise tax cash fund.
The bill requires the state treasurer to transfer the Proposition KK
money in the behavioral and mental health cash fund to the behavioral and mental health excise tax cash fund.
Current law repeals the behavioral and mental health cash fund on
July 1, 2032. The bill changes the repeal date to July 1, 2027.
