Fiscal impact reports (FIRs) are prepared by the Legislative Finance Committee (LFC) for standing finance committees of the Legislature. LFC does not assume responsibility for the accuracy of these reports if they are used for other purposes. F I S C A L I M P A C T R E P O R T SPONSOR Padilla LAST UPDATED ORIGINAL DATE 02/09/25 SHORT TITLE Rename Enhanced 911 Act BILL NUMBER Senate Bill 137 ANALYST Graeser REVENUE* (dollars in thousands) Type FY25 FY26 FY27 FY28 FY29 Recurring or Nonrecurring Fund Affected 911 Emergency Surcharge $0 $13,100.0 $13,400.0 $13,600.0 $13,900.0 Recurring 911 Emergency Service Fund Parentheses ( ) indicate revenue decreases. *Amounts reflect most recent analysis of this legislation. ESTIMATED ADDITIONAL OPERATING BUDGET IMPACT* (dollars in thousands) Agency/Program FY25 FY26 FY27 3 Year Total Cost Recurring or Nonrecurring Fund Affected TRD $13.5 $0 $0 $13.5 Nonrecurring General Fund Parentheses ( ) indicate expenditure decreases. *Amounts reflect most recent analysis of this legislation. Relates to Senate Bill 67 Sources of Information LFC Files Agency Analysis Received From Taxation and Revenue Department (TRD) Public Regulation Commission (PRC) Regulation and Licensing Department (RLD) Agency Analysis was Solicited but Not Received From Department of Finance and Administration/Local Government Division (DFA) New Mexico Municipal League (NMML) Middle Rio Grande Council of Governments Senate Bill 137 – Page 2 SUMMARY Synopsis of Senate Bill 137 Senate Bill 137 (SB137) increases the existing 911 emergency surcharge from $0.51 to $1.50 per line per month. In addition, the bill changes the names of the 911 Act and the 911 Bond Act, removing “enhanced” from both titles, and renames the enhanced 911 fund to the 911 emergency service fund. The bill also amends Section 63-9D-8 NMSA 1978 to provide that primary or secondary public safety answering points may also receive payments from the fund and that payments from the fund may be used for costs of providing 911 emergency services, including next generation 911 equipment and infrastructure. A significant addition is in the findings: “A 911 telephone emergency system provides…enhanced capabilities through next generation 911, including: 1) the ability to process emergency communications through voice, text, video and data, increasing accessibility for all residents; 2) improved accuracy and efficiency in emergency response due to advanced geographic .system capabilities and internet-protocol-based technologies; and 3) greater system resilience and redundancy to ensure continuous operation during emergencies;” The effective date of this bill is July 1, 2025 FISCAL IMPLICATIONS Current distributions to the enhanced 911 fund were used to calculate the revenue gain from the proposed increase in the surcharge from $0.51 to $1.50 per line per month. The historical growth rate of these distributions was employed to grow the fiscal impact. The bill does not include a recurring appropriation but diverts or “earmarks” revenue, representing a recurring loss from the general fund. LFC has concerns with including continuing distribution language in the statutory provisions for funds because earmarking reduces the ability of the Legislature to establish spending priorities. However, these revenues have been earmarked since 1989 when originally implemented. The Taxation and Revenue Department (TRD) notes a small nonrecurring cost for systems updates. SIGNIFICANT ISSUES The original Enhanced 911 Act was passed and implemented in 1989. The assessment has not increased in the ensuing 35 years, despite the overwhelming technological improvements in smart-phone technology. TRD notes the following policy points: The bill enhances statewide emergency communications capabilities by increasing the 911 emergency surcharge, which has not been updated for inflation since 1989. Compared to states with similar populations like Utah and Nevada, New Mexico currently charges a lower fee for emergency communications, although the proposal would place New Mexico above Senate Bill 137 – Page 3 these states. 1 Adopting new technologies for emergency communications requires significant investments in infrastructure updates and changes in maintenance and operation. Modernizing emergency communication networks may revolve shortcomings such as poor reachability, inadequate coverage in rural areas, lack of security features, inefficiency in the service, and, as a result, less ability to promptly deploy services to an emergency incident. CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP This bill relates to Senate Bill 67, which amends the Enhanced 911 Act, Section 63-9D-3 NMSA 1978, to require a wireless service provider or internet service provider to provide the location information regarding a device used to make a 911 call to requests from law enforcement agencies for the purpose of responding to situations that involve the risk of death or serious physical harm. LG/hj/SL2 1 https://www.fcc.gov/sites/default/files/15th-annual-911-fee-report-2023.pdf, Nevada currently has fees between $0.75 -$1.00; Utah is at $0.96.