Appropriations committee recommends passage of bill raising 9‑1‑1 and 988 funding while drawing opposition over workers’ compensation fee increases

The House Appropriations Committee recommended passage of Senate Finance Committee substitute for Senate Bill 535, a multi‑topic financing bill that increases the 9‑1‑1 surcharge, creates a dedicated non‑reverting fund to support the 988 crisis intervention hotline, adjusts several Public Regulation Commission fees and raises the assessment rate used to support the workers’ compensation system.

Supporters told the committee the 9‑1‑1 surcharge has not been raised in decades and local public‑safety and 9‑1‑1 professionals urged a surcharge increase to sustain and modernize dispatch and call‑handling systems statewide. “The surcharge increase for 9‑1‑1 is long overdue,” Nicole Brown of the San Juan County 9‑1‑1 center said. Fire chiefs and county officials also testified in favor.

The bill as amended directs increased telecommunications relay or 988‑related surcharges to a new recurring fund to pay for ongoing 988 services and to stabilize funding for the Commission for the Deaf and Hard of Hearing’s programs, supporters said. The amendment also added limits tying some annual fee adjustments to a public‑employee cost index and moved several collection dates from April to July.

The bill includes a multi‑year schedule of increases to the workers’ compensation assessment that supports the state’s workers’ comp fund; committee testimony said the assessment had not been raised for 35 years and the agency is running an operating shortfall. A committee witness summarized the current assessment and proposed increases: the current assessment is $2.00 per employee and $2.30 employer contribution; the proposal phases increases over several years beginning with an initial increase to roughly $2.25 (employee) and $2.55 (employer) in the first year, with further phased increases in later years, per the agency’s testimony.

That workers’ compensation component provoked opposition from several committee members. Representative Brown said she supported the 9‑1‑1 and 988 pieces but would oppose the bill because of fee increases on small businesses. During final proceedings the motion to give the bill a due pass passed but the clerk recorded several members in opposition: Representatives Baca, Duncan, Brown and Chatfield were shown in opposition on the final tally.

The committee also adopted an amendment to update PRC inspection and supervision fee language, raise certain utility inspection fees and adjust the timing of collections. The amendment sets the 9‑1‑1 monthly surcharge increase (a witness characterized the change as moving the monthly 9‑1‑1 surcharge from $0.51 to $1.00) and creates the dedicated fund for 988. Supporters said the change will provide predictable, recurring revenue for crisis services and 9‑1‑1 modernization; opponents urged separating emergency‑telecom funding from fee increases on employers.

The bill was moved by Vice Chair Dixon and seconded by Representative Hernandez. The motion carried with recorded opposition from Baca, Duncan, Brown and Chatfield. The committee directed the bill forward to the House floor with the amendment in place.

What’s next: The bill proceeds to the House floor under the committee’s due‑pass recommendation. Committee testimony shows broad support for upgrades to 9‑1‑1 and a new funding stream for 988; the workers’ compensation fee schedule generated dissent and may draw floor‑level debate.