The State is Fixing a Loophole That Let "Unlimited" Prepaid Phone Plans Skip 911 Fees

What This Bill Actually Does

Right now, Colorado tacks on three small fees whenever you buy a retail prepaid phone plan: a 911 charge ($2.23), a 988 crisis hotline charge ($0.30), and a telephone disability access (TDA) charge ($0.08). These charges fund critical local emergency dispatch centers, the state's suicide prevention lifeline, and communication relay services for Coloradans who are deaf or hard of hearing. But in June 2025, the Colorado Department of Revenue issued a ruling stating that prepaid plans offering unlimited voice minutes technically didn't fit the state's legal definition of a "prepaid wireless" service. Because the old law defined prepaid as units that "decline with use" (like old-school roll-over minutes), modern unlimited plans were suddenly exempt from chipping in.

Section 2 of HB26-1115 rewrites the rules to match how we actually buy phone service today. It updates the definition of prepaid wireless telecommunications service to explicitly include plans that provide "unlimited use of the service for a fixed period of time." If you buy a 30-day unlimited prepaid card at the grocery store, it will now definitively be subject to the same emergency fees as a pay-by-the-minute plan.

The bill also targets providers of "free" government-subsidized phones (like those using the federal Lifeline program). Under current law, these providers already have to pay the 911 charge out of their federal reimbursements. Sections 9 and 10 of this bill require them to also pay the 988 crisis hotline charge. Finally, it modernizes how the state collects the money, allowing the Department of Revenue to require electronic filing for the 988 charge and to share reporting data with the Public Utilities Commission to make sure everyone is paying their fair share.

What It Means for You

If you use a traditional post-paid cell phone plan (like a standard monthly contract with Verizon, AT&T, or T-Mobile), this bill doesn't change a thing for you. You are already paying these emergency fees on your monthly bill, and you have been all along. But if you rely on a prepaid unlimited plan from providers like Mint Mobile, Boost Mobile, or Straight Talk, expect to see those emergency fees reappear on your store receipt.

We are talking about an extra $2.61 per transaction ($2.23 for 911, $0.30 for 988, and $0.08 for TDA). While a couple of bucks might not sound like a lot, if you are buying a $20 or $30 prepaid card every month to get by, that represents a noticeable percentage increase on your communication lifeline. However, the reality is that 911 call centers and the 988 crisis hotline rely heavily on these specific charges to keep the lights on, upgrade their technology, and keep operators in their seats. When the June 2025 ruling inadvertently exempted unlimited prepaid plans, it created a massive, unexpected funding gap for local emergency responders. This bill ensures that if your phone can dial 911 in an emergency, your phone plan is helping pay for the person answering the call.

• Check your receipts: If you use a prepaid unlimited plan, keep an eye on your checkout totals in the coming months to see when these fees are reinstated.
• Contact your state representative: If you have strong feelings about telecom fees or the funding of emergency services, the bill is heading to the full House floor soon. Let them know where you stand.

What It Means for Your Business

If you own a convenience store, grocery store, or electronics shop that sells prepaid wireless cards or top-up PINs, HB26-1115 directly impacts your point-of-sale (POS) systems. Because of the 2025 Department of Revenue ruling, you may have recently stopped collecting the 911, 988, and TDA fees on unlimited prepaid plans to stay compliant with state guidance. Once this bill is signed, you will need to update your POS software to resume collecting that $2.61 per transaction on all prepaid wireless sales, regardless of whether they are sold by the minute or as an unlimited 30-day block. The good news? You aren't doing this entirely for free. The law allows sellers to deduct and retain 3.3% of the 911 and 988 fees collected to cover your administrative costs.

If you are a telecom provider operating federally supported programs (often marketed as "free phones" for low-income residents), pay close attention to Section 10. You are already accustomed to paying the 911 charge out of your federally subsidized reimbursements. This bill officially extends that obligation to the 988 crisis hotline charge. The bill explicitly states that "exchanges of nonmonetary consideration"—like the consumer information you collect to claim federal reimbursement—counts as a "purchase," triggering the fee. You will also need to prepare for mandatory electronic filing for these remittances with the Department of Revenue.

• Call your POS vendor THIS WEEK: Ask them how quickly they can push an update to resume collecting the three telecom fees on unlimited prepaid plans once the bill is signed.
• Alert your floor staff: Prepare your cashiers for potential customer complaints. People will notice when a standard $30 prepaid card suddenly rings up a couple of bucks higher than it did last month.
• Update your accounting practices: If you are a telecom provider, prepare to remit the 988 fee electronically to the Department of Revenue alongside your existing 911 remittances.

Follow the Money

According to the nonpartisan Fiscal Note, this bill doesn't actually cost the state any new money to implement, nor does it technically create a "new" tax. Instead, it stops the bleeding. After the Department of Revenue's June 2025 private letter ruling exempted unlimited prepaid plans, the state was staring down a significant, though officially "indeterminate," drop in revenue for critical emergency services. By updating the legal definition of prepaid wireless, this bill restores the revenue streams for the 911 surcharge, the 988 Crisis Hotline Enterprise, and the Communication Services for People with Disabilities Enterprise back to their previously expected levels.

Because it simply restores the status quo for how these fees are applied, the bill requires $0 in new state appropriations. The Department of Revenue and the Public Utilities Commission will see a minimal workload increase to update their guidance, forms, and reporting systems, but they can handle that within their existing budgets. Note that the 911 fee revenue is subject to TABOR limits, while the 988 and TDA revenues are exempt enterprise funds.

Where This Bill Stands

HB26-1115 was introduced in the House on February 4, 2026, by prime sponsors Rep. Andrew Boesenecker and Rep. Katie Stewart, with companion sponsorship in the Senate from Sen. Dylan Roberts and Sen. Scott Bright. It is moving through the Capitol quickly. On February 19, the House Finance Committee reviewed the bill, adopted a minor amendment, and referred it favorably to the House Committee of the Whole.

Because this is a bipartisan "cleanup" bill aimed at fixing an unintended administrative loophole rather than introducing controversial new policy, it has a very high likelihood of passing without much friction. Crucially, the legislation includes a safety clause. This means the moment the Governor signs it (or lets it become law), it takes effect immediately—there is no standard 90-day waiting period. If you are in the retail or telecom space, expect these changes to go live before the summer.