Aespite several consecutive quarters of rosy revenue income, the Oregon Legislature has chosen to pass another tax to raise even more revenue in the form of a cell phone tax to benefit the 9-8-8 system which is the mental health hotline in Oregon. Unlike some tax increases, which are fees targeting users who create an expense for the state -- such as a park use fee, or a fee for policing a certain industry -- cell phone users aren't any more susceptible to mental illness than other Oregonians. Governor Tina Kotek signed into law HB 2757 recently in a signing ceremony dedicated to behavioral health.

During the last legislative session, Representative E. Werner Reschke, a member of the House Committee on Revenue presented testimony in opposition to HB 2757.

According to Representative Reschke, the need identified to operate the 9-8-8 center is about $5M per biennium which -- with about 5,710,000 cell phones would need a tax of less than 3 1/2 cents per month. The proposed tax of 50 cents per month per phone would yield more than $68M per biennium -- far more than the $5M needed to run the call center.

In his presentation, Representative Reschke recounted recent legislative action supporting mental health call centers in Oregon -- efforts that presumably overlap with the goals of HB 2757

• HB 2417 (2021) $5 million General Fund to initiate the crisis hotline center (contract with Lines for Life and Northwest Human Services). $10 million General Fund distributed to counties to establish and maintain mobile crisis intervention teams that could respond to crisis in the community.
• HB 5024 (2021) $6.5 million General Fund for Mobile Response and Crisis Stabilization Services (MRSS) that continued expansion of crisis stabilization services, resulting in coverage across the entire life span of Oregonians regardless of insurance status.
• HB 5202 (2022) Included $1.8 million General Fund and 10 positions for ongoing agency operations to support implementation and oversight of the system envisioned by HB 2417, the development of standards for statewide mobile crisis teams, development of Medicaid reimbursement opportunities and business information system and financial management support.

In addition to Representative Reschke's testimony, impacted organizations added their opinion of the tax.

A D V E R T I S E M E N T

A D V E R T I S E M E N T

The Oregon Combined Chapters of the Association of Public Safety Communications Officials and National Emergency Number Association offered testimony in opposition to HB 2757, saying

We believe that supporting a tax as outlined in this bill dilutes our ability to secure future increases that may be needed to augment the acquisition of new technology and/or services. As a federally mandated program addressing mental health and addiction services, 9-8-8 will likely have a significant number of other funding options ranging (but certainly not limited to,) from private insurance companies to grants.

In the past, there have been other attempts to enact similar tax mechanisms added to phone lines in Oregon have been rejected. The examples we have are Life Flight and OHSU’s Poison Control Center. Again, while we support the mission of both organizations, we opposed both of those taxes. We feel that adding a 9-8-8 tax falls into that same category.

We feel that any further taxes or increasing our tax to fund other things is an open invitation for many others to want their piece of that pie and it would risk our ability to successfully continue down the road.

Brant Wolf of the Oregon Telecommunications Association objected to the tax increase, offering these thoughts to the House Committee on Revenue,

Based on prior comments offered on HB 2757A, it is important to note and understand that the FCC did not direct states to impose 988 fees. The clear majority of states have not adopted any such fee. Most states have used their own general fund dollars, federal funds or some combination of the two in order to fund 988 systems and response teams if they have taken action at all.

--Staff Reports

Post Date: 2023-08-19 14:54:23

Last Update: 2023-08-25 19:09:32