HB 265

                    LAWS OF ALASKA
                                 2026
Source  Chapter No.
CCS HB 265  _______
                                 AN ACT
Making appropriations for the operating and capital expenses of the state's integrated
comprehensive mental health program; and providing for an effective date.
                             _______________
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA:
                     THE ACT FOLLOWS ON PAGE 1
                                                                 Enrolled HB 265
                                        AN ACT
1 Making appropriations for the operating and capital expenses of the state's integrated
2 comprehensive mental health program; and providing for an effective date.
3_______________
4(SECTION 1 OF THIS ACT BEGINS ON PAGE 2)
                                            -1-  Enrolled HB 265
1  * Section 1. The following appropriation items are for operating expenditures from the
2  general fund or other funds as set out in the fiscal year 2027 budget summary for the
3  operating budget by funding source to the agencies named for the purposes expressed for the
4  fiscal year beginning July 1, 2026, and ending June 30, 2027, unless otherwise indicated.
5Appropriation       General  Other
6Allocations  Items  Funds  Funds
7*****  *****
8* * * * * Department of Administration * * * * *
9*****  *****
10 Legal and Advocacy Services  4,318,500      3,894,900  423,600
11  Office of Public Advocacy  2,892,500
12  Public Defender Agency  1,426,000
13*****  *****
14* * * * * Department of Corrections * * * * *
15*****  *****
16 Community Residential Centers  6,970,500      6,970,500
17  Community Residential  6,970,500
18   Centers
19 Health and Rehabilitation Services  10,209,500      9,707,800  501,700
20  Behavioral Health Care  8,565,600
21  Substance Abuse Treatment  1,643,900
22   Program
23*****  *****
24* * * * * Department of Education and Early Development * * * * *
25*****  *****
26 Education Support and Admin Services  532,200        377,800  154,400
27  Student and School  532,200
28   Achievement
29*****  *****
30* * * * * Department of Family and Community Services * * * * *
31*****  *****
CCS HB 265, Sec. 1
                                              -2-
1Appropriation        General  Other
2Allocations  Items  Funds  Funds
3  Alaska Psychiatric Institute  22,237,600   22,237,600
4   Alaska Psychiatric  21,575,600
5    Institute
6   Facility Rent, Operations,  662,000
7    and Maintenance
8  Children's Services  2,226,900       2,226,900
9   Children's Services  69,500
10   Management
11  Front Line Social Workers  148,500
12  Family Preservation  726,000
13  Foster Care Augmented Rate  500,000
14  Foster Care Special Need  782,900
15 Juvenile Justice  1,770,900       1,670,900       100,000
16  McLaughlin Youth Center  989,800
17  Fairbanks Youth Facility  143,300
18  Bethel Youth Facility  211,800
19  Probation Services  326,000
20  Juvenile Justice Health  100,000
21   Care
22 Departmental Support Services  8,288,300       7,799,000       489,300
23  Coordinated Health and  8,288,300
24   Complex Care
25*****  *****
26* * * * * Department of Health * * * * *
27*****  *****
28 Behavioral Health  58,842,700   57,033,100        1,809,600
29  Behavioral Health Treatment        36,461,100
30   and Recovery Grants
31 The amount appropriated by this appropriation includes the unexpended and unobligated
32 balance on June 30, 2026, of the Alcohol and Other Drug Abuse Treatment & Prevention
33 Fund, the Recidivism Reduction Fund, and the Marijuana Education & Treatment Fund for
                                                                            CCS HB 265, Sec. 1
                                              -3-
1Appropriation    General     Other
2Allocations  Items      Funds      Funds
3  taxes collected under AS 43.60.010 and AS 43.61.010.
4   Alcohol Safety Action  1,311,100
5     Program (ASAP)
6   Behavioral Health  10,720,300
7     Administration
8   Behavioral Health  6,710,300
9     Prevention and Early
10    Intervention Grants
11  Alaska Mental Health Board  1,036,300
12    and Advisory Board on
13    Alcohol and Drug Abuse
14  Suicide Prevention Council  626,200
15  Residential Child Care  1,614,400
16  Behavioral Health Facility  363,000
17    Operations and Maintenance
18 Health Care Services  283,000     283,000
19  Health Facilities Licensing  128,700
20    and Certification
21 The amount allocated for Health Facilities Licensing and Certification includes the
22 unexpended and unobligated balance on June 30, 2026, of general fund program receipts
23 collected for biennial license fees issued under AS 47.32.050.
24  Residential Licensing  154,300
25 Public Health  5,133,000   4,516,200   616,800
26  Women, Children and Family  2,181,000
27    Health
28  Emergency Programs  700
29  Chronic Disease Prevention  2,604,800
30    and Health Promotion
31  Bureau of Vital Statistics  74,500
32  Public Health Facility  272,000
33    Operations and Maintenance
CCS HB 265, Sec. 1
                                              -4-
1Appropriation        General  Other
2Allocations  Items  Funds  Funds
3  Senior and Disabilities Services  18,309,200      16,506,300      1,802,900
4   Senior and Disabilities  1,180,600
5     Community Based Grants
6   Early Intervention/Infant  13,444,500
7     Learning Programs
8   Senior and Disabilities  2,155,900
9     Services Administration
10  General Relief/Temporary  740,300
11    Assisted Living
12  Commission on Aging  271,000
13  Governor's Council on  474,400
14    Disabilities and Special
15    Education
16  Senior and Disabilities  42,500
17    Services Facility
18    Operations and Maintenance
19 Medicaid Services  82,155,800      82,155,800
20  Medicaid Services  82,155,800
21 It is the intent of the legislature that the Department of Health augment the rates for
22 adolescent behavioral health treatment services provided by Level 3 residential programs as
23 certified by the American Society of Addiction Medicine to reflect the additional costs of
24 caring for youth.
25 It is the intent of the legislature that the Department of Health increase the rate per service
26 increment of private duty nursing services from $20.00 to $30.00 for Registered Nurses, and
27 from $18.75 to $26.25 for Licensed Practical or Vocational Nurses.
28*****  *****
29* * * * * Department of Labor and Workforce Development * * * * *
30*****  *****
31 Commissioner and Administrative  25,900  25,900
32  Services
33  Labor Market Information  25,900
                                                                            CCS HB 265, Sec. 1
                                               -5-
1Appropriation   General  Other
2Allocations  Items        Funds      Funds
3  Vocational Rehabilitation  100,000  100,000
4   Vocational Rehabilitation  100,000
5     Administration
6  The amount allocated for Vocational Rehabilitation Administration includes the unexpended
7  and unobligated balance on June 30, 2026, of receipts from all prior fiscal years collected
8  under the Department of Labor and Workforce Development's federal indirect cost plan for
9  expenditures incurred by the Department of Labor and Workforce Development.
10*****  *****
11* * * * * Department of Law * * * * *
12*****  *****
13 Civil Division  100,100    100,100
14 The amount appropriated by this appropriation includes the unexpended and unobligated
15 balance on June 30, 2026, of inter-agency receipts collected in the Department of Law's
16 federally approved cost allocation plan.
17  Health, Safety & Welfare  100,100
18*****  *****
19* * * * * Department of Natural Resources * * * * *
20*****  *****
21 Administration & Support Services  6,438,200  6,438,200
22  Mental Health Trust Lands  5,542,400
23    Administration
24  Mental Health Trust Lands  895,800
25    Facility Operations and
26    Maintenance
27*****  *****
28* * * * * Department of Public Safety * * * * *
29*****  *****
30 Alaska State Troopers  60,000  60,000
31  Alaska State Trooper  60,000
32    Detachments
33 Alaska Police Standards Council  80,000  80,000
CCS HB 265, Sec. 1
                                                 -6-
1Appropriation  General  Other
2Allocations  Items  Funds  Funds
3  The amount appropriated by this appropriation includes the unexpended and unobligated
4  balance on June 30, 2026, of the receipts collected under AS 12.25.195(c), AS 12.55.039, AS
5  28.05.151, and AS 29.25.074 and receipts collected under AS 18.65.220(7).
6   Alaska Police Standards  80,000
7    Council
8  Integrated Victim Assistance  1,617,500        1,617,500
9   Council on Domestic  1,617,500
10   Violence and Sexual Assault
11*****  *****
12* * * * * Department of Revenue * * * * *
13*****  *****
14 Alaska Mental Health Trust Authority  6,718,500  787,100      5,931,400
15  Mental Health Trust  5,931,400
16   Operations
17  Long Term Care Ombudsman  787,100
18   Office
19 Alaska Housing Finance Corporation  200,000  200,000
20  AHFC Operations  200,000
21*****  *****
22* * * * * University of Alaska * * * * *
23*****  *****
24 University of Alaska  3,431,800  805,800      2,626,000
25  Anchorage Campus  3,381,800
26  Troth Yeddha' Campus  50,000
27***** *****
28* * * * * Judiciary * * * * *
29***** *****
30 Alaska Court System  634,800  532,800        102,000
31  Trial Courts  634,800
32 Therapeutic Courts  4,678,200        4,519,900       158,300
33  Therapeutic Courts  4,678,200
                                                                            CCS HB 265, Sec. 1
                                              -7-
1Appropriation   General   Other
2Allocations  Items     Funds    Funds
3(SECTION 2 OF THIS ACT BEGINS ON THE NEXT PAGE)
    CCS HB 265, Sec. 1
                                      -8-
1  * Sec. 2. The following appropriation items are for operating expenditures from the general
2  fund or other funds as set out in sec. 3 of this Act to the state agencies named and for the
3  purposes set out in the new legislation for the fiscal year beginning July 1, 2026 and ending
4  June 30, 2027, unless otherwise indicated. The appropriations in this section fund legislation
5  assumed to have passed during the second regular session of the thirty-fourth legislature. If a
6  measure listed in this section fails to pass and its substance is not incorporated in some other
7  measure, or is vetoed by the governor, the appropriation for that measure shall be reduced
8  accordingly.
9Appropriation
10 SB 178 EXPAND EARLY INTERVENTION SERVICES
11  Department of Health
12    Senior and Disabilities Services
13     Senior and Disabilities Services Administration
141037 GF/MH  454,500
15 *** Total New Legislation Funding ***  454,500
16(SECTION 3 OF THIS ACT BEGINS ON THE NEXT PAGE)
                                                                             CCS HB 265, Sec. 2
                                               -9-
1  * Sec. 3. The following sets out the funding by agency for the appropriations made in sec. 1
2  and sec. 2 of this Act.
3New
4   Funding Source  Operating   Legislation  Total
5  Department of Administration
6   1037 General Fund / Mental Health  3,894,900  0      3,894,900
7   1092 Mental Health Trust Authority  423,600  0        423,600
8Authorized Receipts
9   *** Total Agency Funding ***  4,318,500  0      4,318,500
10 Department of Corrections
11  1037 General Fund / Mental Health  9,707,800  0      9,707,800
12  1092 Mental Health Trust Authority  501,700  0        501,700
13Authorized Receipts
14  1246 Recidivism Reduction Fund  6,970,500  0      6,970,500
15  *** Total Agency Funding ***  17,180,000  0     17,180,000
16 Department of Education and Early Development
17  1037 General Fund / Mental Health  377,800  0        377,800
18  1092 Mental Health Trust Authority  154,400  0        154,400
19Authorized Receipts
20  *** Total Agency Funding ***  532,200  0        532,200
21 Department of Family and Community Services
22  1037 General Fund / Mental Health  33,934,400  0     33,934,400
23  1092 Mental Health Trust Authority  589,300  0        589,300
24Authorized Receipts
25  *** Total Agency Funding ***  34,523,700  0     34,523,700
26 Department of Health
27  1037 General Fund / Mental Health  129,463,000      454,500     129,917,500
28  1092 Mental Health Trust Authority  4,229,300  0      4,229,300
29Authorized Receipts
30  1180 Alcohol and Other Drug Abuse  20,100,000  0     20,100,000
31Treatment & Prevention Fund
CCS HB 265, Sec. 3
                                            -10-
1New
2Operating     Legislation  Total
3   1246 Recidivism Reduction Fund  4,412,000  0     4,412,000
4   1254 Marijuana Education and  6,519,400  0     6,519,400
5Treatment Fund
6   *** Total Agency Funding ***  164,723,700        454,500      165,178,200
7  Department of Labor and Workforce Development
8   1092 Mental Health Trust Authority  125,900  0      125,900
9Authorized Receipts
10  *** Total Agency Funding ***  125,900  0      125,900
11 Department of Law
12  1037 General Fund / Mental Health  100,100  0      100,100
13  *** Total Agency Funding ***  100,100  0      100,100
14 Department of Natural Resources
15  1092 Mental Health Trust Authority  6,438,200  0     6,438,200
16Authorized Receipts
17  *** Total Agency Funding ***  6,438,200  0     6,438,200
18 Department of Public Safety
19  1092 Mental Health Trust Authority  140,000  0      140,000
20Authorized Receipts
21  1246 Recidivism Reduction Fund  1,617,500  0     1,617,500
22  *** Total Agency Funding ***  1,757,500  0     1,757,500
23 Department of Revenue
24  1037 General Fund / Mental Health  787,100  0      787,100
25  1092 Mental Health Trust Authority  200,000  0      200,000
26Authorized Receipts
27  1094 Mental Health Trust  5,931,400  0     5,931,400
28Administration
29  *** Total Agency Funding ***  6,918,500  0     6,918,500
30 University of Alaska
31  1037 General Fund / Mental Health  805,800  0      805,800
32  1092 Mental Health Trust Authority  2,626,000  0     2,626,000
33Authorized Receipts
                                                                     CCS HB 265, Sec. 3
                                      -11-
1New
2Operating     Legislation  Total
3   *** Total Agency Funding ***  3,431,800  0     3,431,800
4  Judiciary
5   1037 General Fund / Mental Health  5,052,700  0     5,052,700
6   1092 Mental Health Trust Authority  260,300  0      260,300
7Authorized Receipts
8   *** Total Agency Funding ***  5,313,000  0     5,313,000
9  * * * * * Total Budget * * * * *  245,363,100        454,500      245,817,600
10(SECTION 4 OF THIS ACT BEGINS ON THE NEXT PAGE)
CCS HB 265, Sec. 3
                                      -12-
1  * Sec. 4. The following sets out the statewide funding for the appropriations made in sec. 1
2  and sec. 2 of this Act.
3New
4   Funding Source  Operating   Legislation  Total
5  Unrestricted General
6   1037 General Fund / Mental Health  184,123,600      454,500     184,578,100
7   *** Total Unrestricted General ***  184,123,600      454,500     184,578,100
8  Designated General
9   1180 Alcohol and Other Drug Abuse  20,100,000  0     20,100,000
10Treatment & Prevention Fund
11  1246 Recidivism Reduction Fund  13,000,000  0     13,000,000
12  1254 Marijuana Education and  6,519,400  0      6,519,400
13Treatment Fund
14  *** Total Designated General ***  39,619,400  0     39,619,400
15 Other Non-Duplicated
16  1092 Mental Health Trust Authority  15,688,700  0     15,688,700
17Authorized Receipts
18  1094 Mental Health Trust  5,931,400  0      5,931,400
19Administration
20  *** Total Other Non-Duplicated ***  21,620,100  0     21,620,100
21(SECTION 5 OF THIS ACT BEGINS ON THE NEXT PAGE)
                                                                          CCS HB 265, Sec. 4
                                            -13-
1  * Sec. 5. The following appropriations are for capital projects and grants from the general
2  fund or other funds as set out in sec. 5 of this Act by funding source to the agencies named for
3  the purposes expressed. They lapse under AS 37.25.020, unless otherwise noted.
4Appropriation  General  Other
5Allocations  Items  Funds  Funds
6*****  *****
7* * * * * Department of Health * * * * *
8*****  *****
9  MH Trust: Deferred Maintenance and  500,000  500,000
10  Accessibility Improvements (HD 1-40)
11 MH Trust: Home Modification and  1,150,000      1,150,000
12  Upgrades to Retain Housing (HD 1-40)
13 MH Trust: Person Centered  250,000  250,000
14  Transportation (HD 1-40)
15 MH Trust: Universal Changing Spaces  250,000  250,000
16  Assistance Fund (HD 1-40)
17*****  *****
18* * * * * Department of Revenue * * * * *
19*****  *****
20 Alaska Housing Finance Corporation
21 MH Trust: AHFC Homeless Assistance  10,150,000      9,200,000  950,000
22  Program (HD 1-40)
23 MH Trust: AHFC Beneficiary and Special  1,950,000      1,750,000  200,000
24  Needs Housing (HD 1-40)
25 MH Trust: AHFC Rural Housing  135,000  135,000
26  Coordinator - Ketchikan (HD 1-40)
27*****  *****
28* * * * * Department of Transportation and Public Facilities * * * * *
29*****  *****
30 MH Trust: Coordinated Transportation  700,000  700,000
31  and Vehicles (HD 1-40)
CCS HB 265, Sec. 5
                                              -14-
1Appropriation   General  Other
2Allocations  Items     Funds  Funds
3 (SECTION 6 OF THIS ACT BEGINS ON THE NEXT PAGE)
                                                CCS HB 265, Sec. 5
                       -15-
1  * Sec. 6. The following sets out the funding by agency for the appropriations made in sec. 5 of
2  this Act.
3   Funding Source  Amount
4  Department of Health
5   1037 General Fund / Mental Health  1,150,000
6   1092 Mental Health Trust Authority Authorized Receipts  1,000,000
7   *** Total Agency Funding ***  2,150,000
8  Department of Revenue
9   1092 Mental Health Trust Authority Authorized Receipts  1,285,000
10  1139 Alaska Housing Finance Corporation Dividend  10,950,000
11  *** Total Agency Funding ***  12,235,000
12 Department of Transportation and Public Facilities
13  1037 General Fund / Mental Health  700,000
14  *** Total Agency Funding ***  700,000
15 * * * * * Total Budget * * * * *  15,085,000
16(SECTION 7 OF THIS ACT BEGINS ON THE NEXT PAGE)
CCS HB 265, Sec. 6
                                              -16-
1  * Sec. 7. The following sets out the statewide funding for the appropriations made in sec. 5 of
2  this Act.
3   Funding Source  Amount
4  Unrestricted General
5   1037 General Fund / Mental Health  1,850,000
6   1139 Alaska Housing Finance Corporation Dividend  10,950,000
7   *** Total Unrestricted General ***  12,800,000
8  Other Non-Duplicated
9   1092 Mental Health Trust Authority Authorized Receipts  2,285,000
10  *** Total Other Non-Duplicated ***  2,285,000
11(SECTION 8 OF THIS ACT BEGINS ON THE NEXT PAGE)
                                                                            CCS HB 265, Sec. 7
                                              -17-
1    * Sec. 8. PURPOSE. In accordance with AS 37.14.003 and 37.14.005, the appropriations
2  made in this Act are for the state's integrated comprehensive mental health program.
3    * Sec. 9. NONGENERAL FUND RECEIPTS. (a) Alaska Mental Health Trust Authority
4  authorized receipts (AS 37.14.036) or administration receipts (AS 37.14.036) that exceed the
5  amounts appropriated in this Act are appropriated conditioned upon compliance with the
6  program review provisions of AS 37.07.080(h).
7(b) If Alaska Mental Health Trust Authority authorized receipts (AS 37.14.036) or
8  administration receipts (AS 37.14.036) fall short of the estimates used as the basis of the
9  appropriation, the affected appropriation is reduced by the amount of the shortfall in receipts.
10   * Sec. 10. SALARY AND BENEFIT ADJUSTMENTS. (a) The appropriations made in sec.
11 1 of this Act include amounts for salary and benefit adjustments for public officials, officers,
12 and employees of the executive branch, Alaska Court System employees, employees of the
13 legislature, and legislators and to implement the monetary terms for the fiscal year ending
14 June 30, 2027, of the following ongoing collective bargaining agreements:
15(1) Public Employees Local 71, for the labor, trades, and crafts unit;
16(2) Alaska Public Employees Association, for the supervisory unit;
17(3)   Teachers' Education Association of Mt. Edgecumbe, representing the
18 teachers of Mt. Edgecumbe High School;
19(4)   Alaska Vocational Technical Center Teachers' Association, National
20 Education Association, representing the employees of the Alaska Vocational Technical
21 Center;
22(5) International Organization of Masters, Mates, and Pilots, representing the
23 masters, mates, and pilots unit;
24(6) Alaska State Employees Association, for the general government unit;
25(7) Marine Engineers' Beneficial Association, representing licensed engineers
26 employed by the Alaska marine highway system;
27(8) Confidential Employees Association, representing the confidential unit;
28(9) Inlandboatmen's Union of the Pacific, Alaska Region, representing the
29 unlicensed marine unit;
30(10) Alaska Correctional Officers Association, representing the correctional
31 officers unit;
Enrolled HB 265  -18-
1(11)      Public Safety Employees Association, representing the regularly
2  commissioned public safety officers unit members within the Department of Transportation
3  and Public Facilities;
4(12)      Public Safety Employees Association, representing the regularly
5  commissioned public safety officers unit members within the Department of Public Safety.
6(b) The appropriations made to the University of Alaska in sec. 1 of this Act include
7  amounts for salary and benefit adjustments to implement the monetary terms for the fiscal
8  year ending June 30, 2027, of the following collective bargaining agreements:
9(1) Alaska Graduate Workers Association/UAW;
10(2)    United Academics - American Association of University Professors,
11 American Federation of Teachers;
12(3)    United Academic - Adjuncts - American Association of University
13 Professors, American Federation of Teachers;
14(4) Alaska Higher Education Crafts and Trades Employees, Local 6070;
15(5) Fairbanks Firefighters Union, IAFF Local 1324.
16(c) If a collective bargaining agreement listed in (a) of this section is not ratified by
17 the membership of the respective collective bargaining unit, the appropriations made in this
18 Act applicable to the collective bargaining unit's agreement are adjusted proportionately by
19 the amount for that collective bargaining agreement, and the corresponding funding source
20 amounts are adjusted accordingly.
21(d) If a collective bargaining agreement listed in (b) of this section is not ratified by
22 the membership of the respective collective bargaining unit and approved by the Board of
23 Regents of the University of Alaska, the appropriations made in this Act applicable to the
24 collective bargaining unit's agreement are adjusted proportionately by the amount for that
25 collective bargaining agreement, and the corresponding funding source amounts are adjusted
26 accordingly.
27(e) Appropriations made in sec. 1 of this Act for salary and benefit adjustments as
28 described in (a) and (b) of this section are for the benefit of the state's integrated
29 comprehensive mental health program only and do not necessarily affect every group of
30 noncovered employees or every collective bargaining unit listed in (a) and (b) of this section.
31  * Sec. 11. This Act takes effect July 1, 2026.
                                               -19-  Enrolled HB 265