LOW-INCOME TELECOMM. ASSISTANCE PROGRAM, the official text

SENATE BILL 152

57th legislature - STATE OF NEW MEXICO - second session, 2026

INTRODUCED BY

Michael Padilla and Pamelya Herndon and Debra M. Sariñana

AN ACT

RELATING TO TELECOMMUNICATIONS; AMENDING THE RURAL
TELECOMMUNICATIONS ACT OF NEW MEXICO TO ESTABLISH A LOW-INCOME
TELECOMMUNICATIONS ASSISTANCE PROGRAM AND RESTRUCTURE THE
EXISTING BROADBAND PROGRAM; MAKING CONFORMING AND CLEAN-UP
AMENDMENTS; REQUIRING REPORTS; ESTABLISHING STATE RURAL
UNIVERSAL SERVICE FUND BUDGET CAPS; REPEALING THE LOW INCOME
TELEPHONE SERVICE ASSISTANCE ACT; AMENDING, REPEALING AND
ENACTING SECTIONS OF THE NMSA 1978.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

SECTION 1. Section 63-9A-5 NMSA 1978 (being Laws 1985,
Chapter 242, Section 5, as amended) is amended to read:

"63-9A-5. REGULATION BY COMMISSION.--

A. Except as otherwise provided in the New Mexico
Telecommunications Act, each public telecommunications service
is declared to be affected with the public interest and, as
such, subject to the provisions of that act, including the
regulation thereof as provided in that act.

B. Except in cases regarding the fixing of rates
pursuant to Section 63-7-1.1 NMSA 1978, the commission has
exclusive jurisdiction to regulate incumbent local exchange
carriers that serve fifty thousand or more access lines within
the state to the extent authorized by the New Mexico
Telecommunications Act; provided that:

(1) the commission's jurisdiction includes the
regulation of wholesale rates, including access charges and
interconnection agreements consistent with federal law and its
enforcement and determinations of participation in low-income
telephone service assistance programs pursuant to the [Low
Income Telephone Service Assistance Act] Rural
Telecommunications Act of New Mexico; and

(2) incumbent local exchange carriers
regulated pursuant to this section shall be regulated in the
same manner as incumbent rural telecommunications carriers are
regulated pursuant to the Rural Telecommunications Act of New
Mexico.

C. Any rules adopted by the commission for the
regulation of incumbent local exchange carriers pursuant to the
New Mexico Telecommunications Act shall preserve and not alter:

(1) the rights and obligations of any entity,
including the commission, established pursuant to federal law,
including 47 U.S.C. Sections 251 and 252, or established
pursuant to any state law, rule, procedure, regulation or order
related to interconnection, intercarrier compensation,
intercarrier complaints, wholesale rights and obligations or
any wholesale rate or schedule that is filed with and
maintained by the commission;

(2) the rights and obligations of any
competitive telecommunications service provider holding a
certificate of public convenience and necessity, or the rights
and obligations of any competitive carrier to obtain such a
certificate;

(3) the authority of the commission to resolve
consumer complaints regarding basic local exchange service;
provided, however, that the commission's authority to resolve
such complaints shall be limited to resolving issues of
consumer protection and shall not include the authority to
determine or fix rates, provider of last resort obligations or
service quality standards except as expressly set forth in the
New Mexico Telecommunications Act;

(4) the authority of the commission to
establish reasonable quality of service standards; provided,
however, that the enforcement of such standards shall be
limited to the commission's fining authority set forth in
Section 63-7-23 NMSA 1978 and the authority to seek an
injunction set forth in Section 63-9-19 NMSA 1978;

(5) the rights and obligations of any entity,
including the commission, regarding the fund;

(6) the rights and obligations of any entity,
including the commission, regarding access to emergency service
to the extent consistent with the Enhanced 911 Act; or

(7) the rights and obligations of any entity,
including the commission, regarding the administration of
slamming and cramming rules, telecommunications relay service
and numbering resources to the extent permitted by and
consistent with federal law.

D. The provisions of the New Mexico
Telecommunications Act do not apply to incumbent rural
telecommunications carriers."

SECTION 2. Section 63-9D-5 NMSA 1978 (being Laws 1989,
Chapter 25, Section 5, as amended) is amended to read:

"63-9D-5. IMPOSITION OF SURCHARGE.--

A. A 911 emergency surcharge is imposed in the
amount of one dollar ($1.00) to be billed to each subscriber
access line by a communications service provider, on each
active number for a commercial mobile radio service subscriber
and on the number of VoIP lines for which the VoIP service
provider enables the capacity for simultaneous calls,
regardless of actual usage, to be connected to the public
switched telephone network during the period for which the
fixed charge is imposed. The surcharge is imposed on all
subscribers whose place of primary use, as defined in the
federal Mobile Telecommunications Sourcing Act, is in New
Mexico; provided, however, that the surcharge shall not be
imposed upon subscribers receiving reduced rates [pursuant to
the Low Income Telephone Service Assistance Act] as a result of
the low-income telecommunications assistance program pursuant
to the Rural Telecommunications Act of New Mexico; and provided
further that the surcharge shall not apply to prepaid wireless
communication service; and provided further that a 911
emergency surcharge shall not be assessed on the provision of
broadband internet access service.

B. A communications service provider shall bill and
collect the surcharge from subscribers whose places of primary
use, as defined in the federal Mobile Telecommunications
Sourcing Act, are in New Mexico. The surcharge required to be
collected by the communications service provider shall be added
to and stated clearly and separately in the billings to the
subscriber. The surcharge collected by the communications
service provider shall not be considered revenue of the
communications service provider.

C. A billed subscriber is liable for payment of the
911 emergency surcharge until it has been paid to the
communications service provider.

D. A communications service provider has no
obligation to take legal action to enforce the collection of
the surcharge; an action may be brought by or on behalf of the
department. A communications service provider, upon request
and not more than once a year, shall provide to the department
a list of the surcharge amounts uncollected, along with the
names and addresses of subscribers who carry a balance that can
be determined by the communications service provider to be
nonpayment of the surcharge. The communications service
provider shall not be held liable for uncollected surcharge
amounts."

SECTION 3. Section 63-9F-11 NMSA 1978 (being Laws 1993,
Chapter 54, Section 11, as amended) is amended to read:

"63-9F-11. IMPOSITION OF SURCHARGE.--

A. A telecommunications relay service surcharge of
one and sixty-six hundredths percent is imposed on the gross
amount paid:

(1) by customers, except customers whose
telephone service rates are reduced as [authorized by the Low
Income Telephone Service Assistance Act] a result of the low-
income telecommunications assistance program pursuant to the
Rural Telecommunications Act of New Mexico, for intrastate
telecommunications services provided in this state;

(2) by customers for the intrastate portion of
interconnected voice over internet protocol service;

(3) by customers for intrastate mobile
telecommunications services that originate and terminate in the
same state, regardless of where the mobile telecommunications
services originate, terminate or pass through, provided by home
service providers to customers whose place of primary use is in
New Mexico; and

(4) by a prepaid consumer in a retail
transaction.

B. The telecommunications relay service surcharge
shall be included on the monthly bill of each customer of a
local exchange company or other telecommunications company
providing intrastate telecommunications services,
interconnected voice over internet protocol services or
intrastate mobile telecommunications services and paid at the
time of payment of the monthly bill. Receipts from selling
those services to any other telecommunications company or
provider for resale are not subject to the surcharge. The
customer is liable for the payment of the surcharge to the
provider of intrastate mobile telecommunications services, the
provider of interconnected voice over internet protocol
services or the local exchange company or other
telecommunications company providing intrastate
telecommunications services to the customer.

C. For the purposes of the surcharge imposed on a
retail transaction pursuant to Paragraph (4) of Subsection A of
this section:

(1) the surcharge shall be collected by the
seller from the prepaid consumer with respect to each retail
transaction occurring in this state. The amount of the
surcharge shall be either separately stated on an invoice,
receipt or other similar document that is provided to the
prepaid consumer by the seller or otherwise disclosed to the
prepaid consumer;

(2) for the purposes of Paragraph (1) of this
subsection, a retail transaction that is effected in person by
a prepaid consumer at a business location of the seller shall
be treated as occurring in this state if that business location
is in this state, and any other retail transaction is treated
as occurring in this state if the retail transaction is treated
as occurring in this state for purposes of the Gross Receipts
and Compensating Tax Act;

(3) the surcharge is the liability of the
prepaid consumer and not of the seller or any provider;
[except] provided that the seller shall be liable to remit all
surcharges collected from the prepaid consumer as provided in
this subsection, including all such surcharges that the seller
is deemed to collect where the amount of the surcharge has not
been separately stated on an invoice, receipt or other similar
document provided to the prepaid consumer by the seller;

(4) the amount of the surcharge that is
collected by a seller from a prepaid consumer, if such amount
is separately stated on an invoice, receipt or other similar
document provided to the prepaid consumer by the seller, shall
not be included in the base for measuring any tax, fee,
surcharge or other charge that is imposed by this state, any
political subdivision of this state or any intergovernmental
agency;

(5) when prepaid wireless communications
service is sold with one or more other products or services for
a single, non-itemized price, the percentage specified in
Subsection A of this section shall apply to the entire non-itemized price unless the seller elects to apply such
percentage to:

(a) if the amount of the prepaid
wireless communications service is disclosed to the prepaid
consumer as a dollar amount, such dollar amount; or

(b) if the seller can identify the
portion of the price that is attributable to the prepaid
wireless communications service by reasonable and verifiable
standards from its books and records that are kept in the
regular course of business for other purposes, including non-tax purposes, such portion;

(6) if a minimal amount of prepaid wireless
communications service is sold with a prepaid wireless device
for a single, non-itemized price, the seller may elect not to
apply the percentage specified in Subsection A of this section
to such transaction. For the purposes of this paragraph, an
amount of service denominated as ten minutes or less, or five
dollars ($5.00) or less, is minimal;

(7) surcharges collected by sellers shall be
remitted to the taxation and revenue department at the times
and in the manner provided with respect to the Gross Receipts
and Compensating Tax Act. The department shall establish
registration and payment procedures that substantially coincide
with the registration and payment procedures that apply to the
Gross Receipts and Compensating Tax Act. A seller shall be
permitted to deduct and retain three percent of surcharges that
are collected by the seller from the prepaid consumer;

(8) the audit and appeal procedures applicable
to the Gross Receipts and Compensating Tax Act shall apply to
the surcharge;

(9) the taxation and revenue department shall
establish procedures by which a seller of prepaid wireless
communications services may document that a sale is not a
retail transaction, which procedures shall substantially
coincide with the procedures for documenting sale for resale
transactions for the Gross Receipts and Compensating Tax Act;
and

(10) notwithstanding Paragraph (1) of this
subsection, if a 911 surcharge is imposed on prepaid wireless
communications service pursuant to the Enhanced 911 Act, the
taxation and revenue department shall promulgate rules to
permit sellers to combine the surcharge imposed pursuant to
this section and the surcharge imposed pursuant to the Enhanced
911 Act into a single surcharge on the invoice, receipt or
other similar document that is provided to the prepaid
consumer. The department shall ensure that appropriate
surcharge revenues are directed proportionately to the
respective 911 and telecommunications relay service funds.

D. A telecommunications company providing
intrastate telecommunications services, a home service provider
providing intrastate mobile telecommunications services and a
seller of interconnected voice over internet protocol services
shall, on sales subject to the telecommunications relay service
surcharge, assess and collect the surcharge and remit the
surcharge collected monthly to the taxation and revenue
department on or before the twenty-fifth day of the month
following collection. The department shall administer and
enforce the collection of the surcharge in accordance with the
Tax Administration Act.

E. The taxation and revenue department shall
transfer the following amounts of the net receipts of the
telecommunications relay service surcharge collected, less any
amount deducted in accordance with Subsection F of this
section, within the month following the month in which the
surcharge is collected:

(1) twenty percent to the telecommunications
access fund; and

(2) eighty percent to the 988 lifeline fund.

F. The taxation and revenue department may deduct
an amount not to exceed three percent of the telecommunications
relay service surcharge collected as a charge for the
administrative costs of collection and shall remit that amount
to the state treasurer for deposit in the general fund each
month.

G. The commission and the health care authority
shall report to the revenue stabilization and tax policy
committee annually by September 30 the following information
with respect to the prior fiscal year:

(1) the amount and source of revenue received
by the telecommunications access fund and the 988 lifeline
fund;

(2) the amount and category of expenditures
from the funds; and

(3) the balance of the funds on that June 30."

SECTION 4. Section 63-9H-3 NMSA 1978 (being Laws 1999,
Chapter 295, Section 3, as amended by Laws 2021, Chapter 118,
Section 1 and by Laws 2021, Chapter 120, Section 8) is amended
to read:

"63-9H-3. DEFINITIONS.--As used in the Rural
Telecommunications Act of New Mexico:

A. "affordable rates" means rates for basic service
that promote universal service [within a local exchange service
area], giving consideration to the economic conditions of
households in the service area and costs to provide service in
the area in which service is provided;

B. "basic service" means service that is provided
[to a rural end-user customer] that is consistent with the
federal act:

(1) to a rural end-user customer; or

(2) to a rural or non-rural end-user customer
pursuant to the low-income telecommunications assistance
program;

C. "broadband infrastructure" means [any cable or
device used for high-capacity transmission over a wide range of
frequencies that enables a large number of electronic messages
to be transmitted or received simultaneously] facilities and
equipment used to provide internet service, excluding
telecommunications equipment owned, controlled or operated by a
public or private end user;

D. "cable service" means the transmission to
subscribers of video programming or other programming service
and subscriber interaction, if any, that is required for the
selection or use of the video programming or other programming
service;

E. "commission" means the public regulation
commission;

F. "comparable carrier" means an eligible
telecommunications carrier established prior to enactment of
the Rural Telecommunications Act of New Mexico that has a
similar number of access lines as an eligible
telecommunications carrier established after enactment of that
act;

G. "digital equity" means information technology
needed for civic and cultural participation, employment,
education, business and economic development, lifelong learning
and access to essential services generally available to
residents regardless of their racial grouping, socioeconomic
status or cultural identity;

H. "digital inclusion" means access to and the
ability to use information technologies;

I. "eligible telecommunications carrier" means an
eligible telecommunications carrier as defined in the federal
act;

J. "federal act" means the federal
Telecommunications Act of 1996;

K. "fund" means the state rural universal service
fund;

L. "incumbent local exchange carrier" means a
person that:

(1) was designated as an eligible
telecommunications carrier by the state corporation commission
in Docket #97-93-TC by order dated October 23, 1997, or that
provided local exchange service in this state on February 8,
1996; or

(2) became a successor or assignee of an
incumbent local exchange carrier;

M. "incumbent rural telecommunications carrier"
means an incumbent local exchange carrier that serves fewer
than fifty thousand access lines within the state and has been
designated as an eligible telecommunications carrier by the
state corporation commission or the public regulation
commission;

N. "local exchange area" means a geographic area
encompassing one or more local communities, as described in
maps, tariffs or rate schedules filed with the commission,
where local exchange rates apply;

O. "local exchange service" means the transmission
of two-way interactive switched voice communications furnished
by a telecommunications carrier within a local exchange area;

P. "long distance service" means telecommunications
service between local exchange areas that originate and
terminate within the state;

Q. "office" means the office of broadband access
and expansion;

[Q.] R. "private telecommunications service" means
a system, including its construction, maintenance or operation
for the provision of telecommunications service, or any portion
of that service, by a person for the sole and exclusive use of
that person and not for resale, directly or indirectly. For
purposes of this definition, the person that may use the
service includes any affiliates of the person if at least
eighty percent of the assets or voting stock of the affiliates
is owned by the person. If any other person uses the
telecommunications service, whether for hire or not, the
private telecommunications service is a public
telecommunications service;

[R.] S. "public telecommunications service" means
the transmission of signs, signals, writings, images, sounds,
messages, data or other information of any nature by wire,
radio, lightwaves or other electromagnetic means originating
and terminating in this state regardless of actual call
routing. "Public telecommunications service" does not include
the provision of terminal equipment used to originate or
terminate the service; private telecommunications service;
broadcast transmissions by radio, television and satellite
broadcast stations regulated by the federal communications
commission; [radio common carrier services, including mobile
telephone service and] radio paging; or cable service;

T. "rural area" means an unincorporated area or a
city, a town or an incorporated area with a population of
twenty thousand or less as reflected in the most recent federal
decennial census or applicable tribal census;

[S.] U. "statewide broadband plan" means the [State
of New Mexico Broadband Strategic Plan and Rural Broadband
Assessment published by the department of information
technology in June 2020; provided that, upon Senate Bill 93 of
the first session of the fifty-fifth legislature becoming law,
"statewide broadband plan" means the statewide broadband plan
developed pursuant to that law and] plan developed by the
office pursuant to the Broadband Access and Expansion Act;

[T.] V. "telecommunications carrier" means a person
that provides public telecommunications service;

W. "underserved" means an area or property that
does not have access to internet service offering speeds
greater than one hundred megabits per second downstream and
twenty megabits per second upstream; and

X. "unserved" means an area or property that either
does not have access to internet service at all or only has
access to internet service offering speeds below twenty-five
megabits per second downstream or three megabits per second
upstream."

SECTION 5. Section 63-9H-4 NMSA 1978 (being Laws 1999,
Chapter 295, Section 4, as amended) is amended to read:

"63-9H-4. REGULATION BY COMMISSION.--

A. Except as otherwise provided in the Rural
Telecommunications Act of New Mexico or the federal act, each
public telecommunications service is declared to be affected
with the public interest and, as such, subject to the
provisions of those acts, including the regulation thereof as
provided in those acts.

B. The commission has exclusive jurisdiction to
regulate incumbent rural telecommunications carriers only in
the manner and to the extent authorized by the Rural
Telecommunications Act of New Mexico, and Section 63-7-1.1 NMSA
1978 does not apply; provided, however, that the commission's
jurisdiction includes the regulation of wholesale rates,
including access charges and interconnection agreements
consistent with federal law and its enforcement and a
determination of participation in low-income telephone service
assistance programs pursuant to the [Low Income Telephone
Service Assistance Act] Rural Telecommunications Act of New
Mexico.

C. The commission shall adopt rules consistent with
the requirement for relaxed regulation for incumbent rural
telecommunications carriers set forth in the Rural
Telecommunications Act of New Mexico that provide for:

(1) reduced filing requirements for applicants
in rate increase proceedings under the Rural Telecommunications
Act of New Mexico and proceedings under that act seeking
payments from the fund; and

(2) expedited consideration in all proceedings
initiated pursuant to the Rural Telecommunications Act of New
Mexico in order to reduce the cost and burden for incumbent
rural telecommunications carriers and other applicants."

SECTION 6. Section 63-9H-6 NMSA 1978 (being Laws 1999,
Chapter 295, Section 6, as amended) is amended to read:

"63-9H-6. STATE RURAL UNIVERSAL SERVICE FUND--ESTABLISHMENT.--

A. The commission shall implement and maintain a
"state rural universal service fund" to maintain and support
universal service [that is] provided by eligible
telecommunications carriers, including commercial mobile radio
services carriers, as are determined by the commission. As
used in this section, "universal service" means basic local
exchange service, comparable retail alternative services at
affordable rates, service pursuant to a low-income [telephone]
telecommunications assistance plan and broadband internet
access service to unserved and underserved areas as determined
by the commission.

B. The fund shall be financed by a surcharge on
intrastate retail public telecommunications services to be
determined by the commission, excluding services provided
pursuant to a low-income [telephone] telecommunications
assistance plan billed to end-user customers by a
telecommunications carrier, and excluding all amounts from
surcharges, gross receipts taxes, excise taxes, franchise fees
and similar charges. For the purpose of funding the fund, the
commission has the authority to apply the surcharge on
intrastate retail public telecommunications services provided
by telecommunications carriers, including commercial mobile
radio services and voice over internet protocol services, at a
competitively and technologically neutral rate or rates to be
determined by the commission. The commission may establish the
surcharge as a percentage of intrastate retail public
telecommunications services revenue or as a fixed amount
applicable to each communication connection. For purposes of
this section, a "communication connection" means a voice-enabled telephone access line, wireless voice connection,
unique voice over internet protocol service connection or other
uniquely identifiable functional equivalent as determined by
the commission. Such surcharges shall be competitively and
technologically neutral. Money deposited in the fund is not
public money, and the administration of the fund is not subject
to the provisions of law regulating public funds. The
commission shall not apply this surcharge to a private
telecommunications network; to the state, a county, a
municipality or other governmental entity; to a public school
district; to a public institution of higher education; to
eligible households that participate in the low-income
telecommunications assistance program; to an Indian nation,
tribe or pueblo; or to Native American customers who reside on
tribal or pueblo land.

C. The fund shall be competitively and
technologically neutral, equitable and nondiscriminatory in its
collection and distribution of funds, portable between eligible
telecommunications carriers and additionally shall provide a
specific, predictable and sufficient support mechanism as
determined by the commission that ensures universal service in
the state.

D. The commission shall:

(1) establish eligibility criteria for
participation in the fund consistent with federal law that
ensure the availability of universal service at affordable
rates. The eligibility criteria shall not restrict or limit an
eligible telecommunications carrier from receiving federal
universal service support;

(2) provide for the collection of the
surcharge on a competitively neutral basis and for the
administration and disbursement of money from the fund;

(3) determine those services and areas
requiring support from the fund;

(4) provide for the separate administration
and disbursement of federal universal service funds consistent
with federal law; and

(5) establish affordability benchmark rates
for local residential and business services that shall be
utilized in determining the level of support from the fund.
The process for determining subsequent adjustments to the
benchmark shall be established through a rulemaking.

E. All incumbent telecommunications carriers and
competitive carriers already designated as eligible
telecommunications carriers for the fund shall be eligible for
participation in the fund. All other carriers that choose to
become eligible to receive support from the fund may petition
the commission to be designated as an eligible
telecommunications carrier for the fund. The commission may
grant eligible carrier status to a competitive carrier in a
rural area upon a finding that granting the application is in
the public interest. In making a public interest finding, the
commission may consider at least the following items:

(1) the impact of designation of an additional
eligible carrier on the size of the fund;

(2) the unique advantages and disadvantages of
the competitor's service offering; and

(3) any commitments made regarding the quality
of [telephone] service.

F. The commission shall adopt rules, including a
provision for variances, for the implementation and
administration of the fund in accordance with the provisions of
this section. The rules shall enumerate the appropriate uses
of fund support and any restrictions on the use of fund support
by eligible telecommunications carriers. The rules shall
require that through December 31, 2028, an eligible
telecommunications carrier receiving support from the fund
pursuant to Subsection K, L, M or N of this section [must]
shall expend no less than sixty percent of the support it
receives to deploy and maintain broadband internet access
services in rural areas of the state. In subsequent years, the
rules shall require that an eligible telecommunications carrier
receiving support from the fund pursuant to Subsection K, L, M
or N of this section shall expend no less than one hundred
percent of the support it receives to deploy and maintain
broadband internet access services. The rules also shall
provide for annual reporting by eligible telecommunications
carriers verifying that the reporting carrier continues to meet
the requirements for designation as an eligible
telecommunications carrier for purposes of the fund and is in
compliance with the commission's rules, including the
provisions regarding use of support from the fund.

G. The commission shall, upon implementation of the
fund, select a neutral third-party administrator to collect,
administer and disburse money from the fund under the
supervision and control of the commission pursuant to
established criteria and rules promulgated by the commission.
The administrator may be reasonably compensated for the
specified services from the surcharge proceeds to be received
by the fund pursuant to Subsection B of this section. For
purposes of this subsection, the commission shall not be a
neutral third-party administrator.

H. The fund established by the commission shall
ensure the availability of universal service as determined

by the commission at affordable rates in rural areas of the
state; provided, however, that nothing in this section shall be
construed as granting any authority to the commission to
[impose the surcharge on or otherwise] regulate broadband
internet access services.

I. The commission shall ensure that intrastate
switched access charges are equal to interstate switched access
charges established by the federal communications commission as
of January 1, 2006. Nothing in this section shall preclude the
commission from considering further adjustments to intrastate
switched access charges based on changes to interstate switched
access charges.

J. To ensure that providers of intrastate retail
communications service contribute to the fund and to further
ensure that the surcharge determined pursuant to Subsection B
of this section to be paid by the end-user customer will be
held to a minimum, the commission shall adopt rules, or take
other appropriate action, to require all such providers to
participate in a plan to ensure accurate reporting.

K. The commission shall authorize payments from the
fund to incumbent local exchange carriers, in combination with
revenue-neutral rate rebalancing up to the affordability
benchmark rates. Beginning in 2018, the commission shall make
access reduction support payments in the amount made from the
fund in base year 2014, adjusted each year thereafter by:

(1) the annual percentage change in the number
of access lines served by the incumbent local exchange carriers
receiving such support for the prior calendar year, as compared
to base year 2014; and

(2) changes in the affordability benchmark
rates that have occurred since 2014.

L. Notwithstanding the provisions of Subsection K
of this section, the annual amount of access reduction support
payments for an eligible incumbent local exchange carrier in
[2024, 2025 and 2026] each year shall be equal to the annual
access reduction support payments for that eligible incumbent
local exchange carrier for the year 2023. [Access reduction
support payments shall be terminated after December 31, 2026.]

M. The commission shall determine the methodology
to be used to authorize payments to all other carriers that
apply for and receive eligible carrier status; provided that:

(1) an eligible incumbent telecommunications
carrier that is not eligible for funding pursuant to rate
rebalancing in Subsection K of this section and that has been
previously authorized [pursuant to Subsection N of this
section] for need-based support may apply for ongoing fund
support at the annual amount previously authorized in 2023
pursuant to Subsection N of this section;

(2) the commission shall award an applicant
ongoing fund support at no less than the average access line
amount of funding support for comparable carriers; [provided
that an eligible telecommunications carrier receiving fund
support pursuant to this subsection shall not offer basic local
exchange residential and business services at rate levels lower
than the rates for such services charged by any of the
comparable carriers used for the determination of the level of
support;]

(3) the commission shall act upon a request
for ongoing fund support within one hundred twenty days of the
filing of the request; and

(4) nothing in this [section] subsection shall
limit the commission's authority to adopt rules [pursuant to
Subsection F of this section] regarding appropriate uses of
fund support and any restrictions on the use of the fund
support by eligible telecommunications carriers.

N. The commission may also authorize payments from
the fund to incumbent rural telecommunications carriers or to
telecommunications carriers providing comparable retail
alternative services that have been designated as eligible
telecommunications carriers serving in rural areas of the state
upon a finding, based on factors that may include a carrier's
regulated revenues, expenses or investment, by the commission
that such payments are needed to ensure the widespread
availability and affordability of universal service. The
commission shall decide cases filed pursuant to this subsection
with reasonable promptness, with or without a hearing, but no
later than six months following the filing of an application
seeking payments from the fund, unless the commission finds
that a longer time will be required, in which case the
commission may extend the period for an additional three
months.

[O. The commission shall adopt rules that establish
and implement a broadband program to provide funding to
eligible telecommunications carriers for the construction and
maintenance of broadband infrastructure. Each year, an amount
equal to forty million dollars ($40,000,000) less the amounts
expended pursuant to Subsections K, L, M and N of this section
shall be dedicated to the broadband program.

P. Rules adopted pursuant to Subsection O of this
section shall require that the commission:

(1) consider applications for funding on a
technology-neutral basis;

(2) submit applications for funding to the
connect New Mexico council for prioritization and alignment
with the statewide broadband plan to ensure digital equity and
digital inclusion; and

(3) require that the awards of support be
consistent with federal universal service support programs.

Q. The total obligations of the fund determined by
the commission pursuant to this section, plus administrative
expenses and a prudent fund balance, shall not exceed a cap of
forty million dollars ($40,000,000) per year.

R. By October 1 of each year, the commission shall
make a report to the legislature regarding the status of the
fund, including:

(1) relevant data relating to implementation
of the broadband program and the progress toward digital equity
and digital inclusion in rural areas of the state;

(2) recommendations for changes to the
structure, size and purposes of the fund and whether the cap on
the fund provided for in Subsection Q of this section should be
modified, maintained or eliminated; and

(3) the service areas that received funding
awards from the broadband program and the amounts of those
awards.

S. The 2025 annual report made pursuant to
Subsection R of this section shall include an assessment of the
state rural universal service fund that addresses:

(1) whether to repurpose the access reduction
support funds into the commission's broadband support program;

(2) a methodology for determining broadband
support levels that is consistent with the requirements of
Subsection C of this section and accounts, at a minimum, for
broadband costs, potential revenues from deployed
infrastructure and existing federal support mechanisms;

(3) the appropriate size of the fund;

(4) criteria for awarding funding;

(5) the impact of proposed changes on per-
connection assessments; and

(6) whether all sellers of prepaid
telecommunications services should be required to collect state
rural universal service fund assessments at the point of sale,
similar to the methodology for collecting 911 emergency
surcharges pursuant to Section 63-9D-5 NMSA 1978.]"

SECTION 7. A new section of the Rural Telecommunications
Act of New Mexico is enacted to read:

"[NEW MATERIAL] LOW-INCOME TELECOMMUNICATIONS ASSISTANCE
AND BROADBAND PROGRAMS--REPORTS.--

A. By January 1, 2027, the commission shall
promulgate rules to implement a low-income telecommunications
assistance program to ensure affordable access to
telecommunications services to eligible low-income households
in New Mexico. Rules adopted pursuant to this subsection
shall:

(1) complement the lifeline program
administered by the federal communications commission or a
successor federal broadband affordability program;

(2) mirror quality of service standards for
fixed broadband and mobile broadband provided to a broadband
serviceable location established by the federal communications
commission;

(3) establish a mechanism by which a
participating eligible telecommunications carrier may be
reimbursed from the fund for reduced rates provided to eligible
households at levels up to the retail charges for qualifying
services;

(4) require participating eligible
telecommunications carriers to use the national verifier or
national lifeline accountability database administered by the
federal communications commission or a successor federal
broadband affordability database to verify eligible households
under Paragraph (5) of this subsection; and

(5) provide for an eligible telecommunications
carrier to provide assistance in the form of reduced rates to
households that:

(a) include a student identified by the
public education department who is determined to be at risk
pursuant to the final judgment in the Yazzie/Martinez v. State
of New Mexico consolidated lawsuit;

(b) meet the eligibility criteria of one
or more need-based assistance programs administered by the
health care authority; or

(c) are eligible for support under the
federal lifeline program or a successor program.

B. The commission shall allocate money not
allocated to the other state rural universal service fund
obligations to the low-income telecommunications assistance
program.

C. Subject to state and federal laws and
regulations governing the sharing of confidential information,
the public education department and health care authority shall
cooperate with the commission and eligible telecommunications
carriers in identifying those persons eligible for assistance
from the low-income telecommunications assistance program.

D. The commission shall adopt rules to establish
and implement a broadband program to provide funding to assist
eligible telecommunications carriers in the construction or
maintenance of rural broadband infrastructure to ensure that
all New Mexico residents have access to broadband internet
access service that meets the quality of service standards
established pursuant to the Broadband Access and Expansion Act
or by the federal communications commission if state standards
are not established pursuant to the Broadband Access and
Expansion Act; provided that rules adopted pursuant to this
subsection shall:

(1) consider applications for funding on a
technology-neutral basis;

(2) require that applications for funding be
submitted to the office for prioritization and alignment with
the statewide broadband plan;

(3) require that the awards of support be
consistent with federal universal service support programs; and

(4) require tribal consent for all
applications that propose to provide service on the sovereign
land of an Indian nation, tribe or pueblo in New Mexico.

E. By October 1 of each year, the commission shall
make a report to the interim committee that studies economic
and rural development, the legislative finance committee, the
legislative education study committee and the interim committee
that studies technology and telecommunications regarding the
status of the broadband program and the low-income
telecommunications assistance program. The report shall be
shared with the office, the public education department and the
health care authority. The report shall include, at a minimum:

(1) the number of households receiving
assistance from the low-income telecommunications assistance
program pursuant to this section;

(2) the number of households in New Mexico
eligible for low-income telecommunications assistance pursuant
to this section based on eligible households identified by the
public education department, the health care authority and the
federal communications commission;

(3) the estimated cost of providing low-income
telecommunications assistance to all eligible households in New
Mexico;

(4) the service areas that received funding
awards from the broadband program, the amounts of those awards
and the nature of the awards;

(5) the proposed construction time lines for
all new broadband construction;

(6) a comparison of the annual broadband
operation and maintenance funding provided by the commission
each year, broken down by individual carrier;

(7) recommendations for changes to the
structure, size and purposes of the fund, including:

(a) whether the cap on the low-income
telecommunications assistance program provided for in
Subsection C of Section 8 of this 2026 act should be modified,
maintained or eliminated; and

(b) whether the cap on the broadband
program provided for in Subsection B of Section 8 of this 2026
act should be modified, maintained or eliminated;

(8) details regarding collaboration with the
office in the implementation and operation of the broadband
program; and

(9) details regarding collaboration with the
public education department and the health care authority in
the implementation and operation of the low-income
telecommunications assistance program."

SECTION 8. A new section of the Rural Telecommunications
Act of New Mexico is enacted to read:

"[NEW MATERIAL] STATE RURAL UNIVERSAL SERVICE FUND BUDGET
CAPS.--The total obligations of the fund determined by the
commission, plus administrative expenses and a prudent fund
balance, shall not exceed a cap of:

A. eighteen million dollars ($18,000,000) pursuant
to the access reduction support, need-based support and
comparable carrier support in Subsections K through N of
Section 63-9H-6 NMSA 1978;

B. twelve million dollars ($12,000,000) pursuant to
the broadband program in Subsection D of Section 7 of this 2026
act; and

C. pursuant to the low-income telecommunications
assistance program:

(1) ten million dollars ($10,000,000) in the
first year of the program; and

(2) forty-five million dollars ($45,000,000)
per year in subsequent years of the program."

SECTION 9. REPEAL.--Sections 63-9C-1 through 63-9C-6 NMSA
1978 (being Laws 1987, Chapter 197, Sections 1 through 6, as
amended) are repealed.

SECTION 10. EFFECTIVE DATE.--The effective date of the
provisions of this act is July 1, 2026.

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