Committee backs package to raise 9‑1‑1 and 988 surcharges, add worker‑comp fees and create recurring 988 fund

The House Appropriations & Finance Committee approved a do-pass recommendation on a Senate Finance substitute for Senate Bill 535 as amended, a multi-part measure that raises the 9‑1‑1 emergency surcharge and the telecommunications-relay surcharge to create a new, recurring fund for the 988 crisis-intervention hotline, and increases two public-regulation commission fees and workers’ compensation assessment rates.

Committee members adopted a detailed amendment that (1) raises the monthly 9‑1‑1 surcharge, (2) directs increased telecommunications-relay surcharge revenue to a nonreverting fund for 988, and (3) adjusts PRC inspection and supervision fees to reflect inflation. The amendment also phases in increases to the workers’ compensation assessment to address a long-running shortfall in the assessment that funds the workers’ compensation system.

Supporters—including county 9‑1‑1 directors, fire chiefs and rural-telecom providers—testified that 9‑1‑1 surcharges had not been raised in decades and that next-generation 9‑1‑1 technology and cybersecurity needs require additional funding. “This surcharge increase for 9‑1‑1 is absolutely critical to the state,” said Earl Wright, former Santa Fe County GIS manager. Nicole Brown, director of the San Juan County 9‑1‑1 center, and several fire chiefs endorsed the increase to support emergency-dispatch infrastructure statewide.

Consumer-advocacy and industry testimony noted trade-offs. The wireless-trade association CTIA cautioned that increases to universal-service style fees can put upward pressure on consumer wireless bills; industry witnesses asked lawmakers to weigh customer impacts while funding broadband and public-safety initiatives.

Opposition to parts of the bill centered on the workers’ compensation fee increases. Representative Brown said she supported the 9‑1‑1 increase but could not vote for the bill because of the workers’ compensation assessment changes. Committee testimony said the workers’ compensation assessment has not been increased in 35 years and the agency projects a structural shortfall of roughly $1.5 million per year under current rates.

The committee adopted the amendment and the final do-pass motion. The motion was moved by Vice Chair Dixon and seconded by Representative Hernandez. The chair’s tally recorded several members in opposition during the final vote. The bill will move to the House floor for further consideration with the adopted amendment.