(a) Disbursements from the Fund shall be made for the following purposes:
(1) Nonrecurring costs, including costs for purchasing and installing the customer premises terminal equipment (“CPE”) required to establish or upgrade public safety answering points, purchasing 911 network equipment or upgrading equipment as required to ensure proper functioning of the 911 service and related software, developing wireless data bases, and initial training in the use of CPE equipment.
(2) Recurring costs, including costs for network access fees and other telephone charges, software, equipment, data base management, maintenance and improvement, public education, language translation services, ongoing training in the use of CPE equipment, and network and equipment maintenance.
(3) Expenses of the Board and the Department of Safety and Homeland Security incurred under this chapter for the purposes of administering the Fund and expenses incurred in connection with the Board’s responsibilities under Chapter 100 of this title.
(4) Expenses of the Board for its obligations under the contracts and agreements necessary or incidental to the performance of its powers and duties.
(b) A monthly disbursement from the Fund must be made to each PSAP. The Board may reduce, suspend, or terminate disbursements under this section if a PSAP does not comply with the requirements of this chapter or provide 911 service.
(1) Beginning on January 1, 2027, the total monthly disbursement to the PSAPs will be ¼ of the monthly surcharges deposited into the Fund by providers. The Board must establish a funding formula to determine each PSAP’s share of the monthly disbursement. The funding formula must be based on the following factors:
a. The number of billing addresses associated with any monthly surcharges collected during calendar year 2025 from any of the following services:
1. Residence exchange access lines.
2. Residential BRI ISDN arrangements.
3. Wireless phone numbers.
b. Any other information the Board considers relevant.
(2) The Board must recalculate and publish the funding formula to all PSAPs on January 1, 2032, and every 5 years thereafter. The funding formula must be based on the following factors:
a. The number of billing addresses associated with any monthly surcharges collected during calendar year 2030, and every 5 years thereafter, from any of the following services:
1. Residence exchange access lines.
2. Residential BRI ISDN arrangements.
3. Wireless phone numbers.
b. Any other information the Board considers relevant.
(3) If the total amount of money in the Fund is insufficient to pay the monthly disbursements to the PSAPs under this section at any given time, each PSAP shall receive a pro rata share of their monthly disbursement at that time. Any remaining unpaid monthly disbursement must be carried forward for payment as soon as sufficient funds become available.
(4) The Board may not distribute less than $2,500,000 per year in total disbursements to the PSAPs, provided that the total amount of money in the Fund is sufficient to pay the disbursements in subsection (a) of this section.
(c) The Board shall determine how revenue allocated to the Fund is used and is authorized to do any of the following:
(1) Make disbursements from the Fund as necessary to pay the Board’s expenses and obligations in carrying out its functions and duties.
(2) Carry forward revenues for the purpose of establishing or maintaining statewide 911 initiatives.
(3) Make disbursements to a PSAP above the monthly disbursement to meet eligible costs. In determining additional disbursements under this paragraph (c)(3), the Board may consider the population of the area served by the PSAP, the PSAP’s operations and compliance with the operating standards set by the Board, the level of service the PSAP delivers dispatching first responders, and any other information the Board considers relevant. A PSAP may request consideration of an eligible expense or statewide initiative in the form and manner prescribed by the Board.
(d) Disbursements may not be used for:
(1) Personnel costs for public safety answering points, except as set forth in subsection (b) and paragraph (c)(3) of this section.
(2) Construction, purchase, renovation, or furnishings for real estate to house public safety answering points, except as set forth in subsection (b) of this section.
(3) Vehicles, including ambulances, fire engines, or other emergency vehicles, associated equipment, and utilities, with the exception of 911 communications equipment within a mobile command vehicle.
(4) Two-way radios, with the exception of 2-way radios used directly by a PSAP.
(5) Any interface or connectivity costs or expenses for any PSAP, political subdivision, or local government within this State that opts out of using a good or service procured through any contract or agreement entered into by the Board.
(e) [Repealed.]
(f) Providers may request reimbursement on a monthly basis, and payments from the Fund to providers shall be made by the State Treasurer within 60 days of receipt of such request.
(g) The annual expenditures from the Fund shall not exceed the annual revenues deposited into it.
(h) Any PSAP receiving disbursements or other allocation by the Board from the Fund must:
(1) Deposit disbursements from the Fund into a separate, dedicated bank account established solely for the purpose of holding the funds. Under no circumstances shall these funds be commingled with any other accounts or moneys. PSAPs must ensure that all disbursements, transfers, and accounting related to these funds are separately tracked and documented to maintain full transparency and accountability.
(2) Use disbursements from the Fund to offset the costs incurred by the PSAP in connection with the administration, staffing, street addressing, necessary capital equipment, and training necessary to support the provision of 911 service and the operating standards of the Board.
(3) Not use disbursements from the Fund to purchase, contract for, or otherwise obtain services that compete with, duplicate, or are intended to substitute the services procured or approved by the Board or for any disallowable expense under subsection (c) of this section.
(4) Prepare and submit to the Board a detailed semiannual financial report on January 15 and July 15 of each year. This report must include a full accounting of all revenues received from the Fund during the reporting period, and all expenses incurred and paid from the Fund. The report must be in a form acceptable to the Board and supported by appropriate documentation sufficient to verify the accuracy of the information provided.
(i) (1) An audit of the Fund shall be completed by an independent auditor to be designated by the Board. An audit must be completed at least once every 3 years.
(2) The Board may audit PSAP financial records related to the use of funds provided under this chapter at any time and costs incurred must be verified annually as directed by the Board. Upon request, a PSAP must promptly provide a complete and accurate accounting of all revenues, expenditures, and supporting documentation for the administration of this section. Failure to submit the required accounting or to comply with an audit request may result in the reduction, suspension, or termination of disbursements under this chapter until such requirements are met to the Board’s satisfaction.
(j) All PSAPs within this State must migrate their 911 operations to the Board-managed vendors no later than December 31, 2027. The Board may reduce, suspend, or terminate disbursements or technical support to any PSAP that has not transitioned to the Board-managed vendors after the migration date.
