(a) Establishment.--There is established in the State Treasury a nonlapsing restricted interest-bearing account to be known as the 911 Fund. Money in the fund and the interest the money accrues is appropriated to the agency to be disbursed by the agency.

(b) Composition of fund.--The following money shall be deposited in the fund:

(1) The surcharge remitted under section 5307 (relating to payment, collection and remittance of surcharge by providers of 911 communications services) and the prepaid wireless surcharge remitted under section 5307.1 (relating to payment, collection and remittance of surcharge by sellers of prepaid wireless telecommunications service).

(2) Any money appropriated by the General Assembly.

(3) Money from any other public or private source.

(4) Interest accrued by the fund.

(c) Use.--

(1) The money in the fund shall be used only for reasonably necessary costs that enhance, operate or maintain a 911 system in this Commonwealth in accordance with the Statewide 911 plan established by the agency. For the purposes of this paragraph, reasonably necessary costs shall be determined by the agency, in consultation with the board, consistent with the following:

(i) The agency shall establish factors for reasonably necessary costs.

(ii) The agency shall provide the factors annually through agency guidelines.

(iii) Notwithstanding any guidelines provided by the agency, use of the fund by a 911 system or the agency to establish, enhance, operate or maintain Statewide interconnectivity of 911 systems or to establish a capital or operating reserve consistent with a 911 system plan shall be deemed reasonably necessary.

(2) Money from the fund shall not be expended on a 911 system that does not conform to the standards and guidance published by the agency.

(3) Money from the fund shall not be transferred for General Fund use by the Commonwealth or counties.

(d) Distribution.--Within 30 days after the end of each quarter, the agency shall determine the amount available from the fund for distribution and make disbursements in accordance with the Statewide 911 plan and this chapter and in accordance with the following:

(1) Not less than 80% of the amount in the fund shall be disbursed to a 911 system through a mathematical formula established by the agency in consultation with the board, of which at least 30% shall solely be based on population.

(2) Up to 15% of the amount in the fund shall be used by the agency to establish, enhance, operate or maintain Statewide interconnectivity of 911 systems, including, but not limited to, the use or obligations of money for debt service related to regional or Statewide interconnectivity. Money under this paragraph may also be used to purchase a Statewide system designed to allow individuals to identify their phone numbers as associated with a person with a physical disability, so that when an individual makes a 911 call, the PSAP has this information.

(3) Three percent of the amount available shall be disbursed equally to the PSAPs of this Commonwealth. Consolidation of PSAPs after the effective date of this paragraph shall not reduce an allocation to a county under this paragraph.

(4) Not greater than 2% of the amount in the fund may be retained by the agency to pay for agency expenses directly related to administering the provisions of this chapter. Any excess shall be added to the amounts available for distribution under paragraph (1). Audits conducted by the agency under this section shall be funded from amounts retained under this paragraph.

(e) Distribution formula considerations.--

(1) The distribution formula established by the agency under subsection (d) shall fairly and proportionately reflect 911 system needs.

(2) The initial distribution formula shall be established and implemented by the agency, in consultation with the board, no later than 18 months following the effective date of this section.

(3) The distribution formula shall be reviewed every two years and may be adjusted annually.

(4) In developing and evaluating the distribution formula, the agency, in consultation with the board, shall consider and may include the following factors that permit the formula to reflect 911 system needs:

(i) Base level costs common to all 911 systems.

(ii) Population and population density.

(iii) Call volume, including definition of what constitutes a call as published by the agency.

(iv) Extenuating factors such as topography, concentrated exposure such as transit or industrial facilities, or cyclical exposures such as high-attendance public events.

(5) In development of the distribution formula, the agency, in consultation with the board, shall consider the 911 system's average reported allowable 911 system costs for the five years immediately preceding the effective date of this section.

(6) Notwithstanding the provisions of paragraph (5), the total annual disbursement from the fund to any one 911 system may not exceed the actual annual costs to enhance, operate or maintain that 911 system in accordance with the Statewide 911 system plan. Actual costs may include amortization or depreciation of allowable capital costs of the 911 system as determined using generally accepted accounting principles and approved plan allocations to capital and operating reserves, if approved by the agency.

(f) Interim distribution formula.--Commencing on the effective date of this subsection, until the board develops and the agency implements a distribution formula under subsection (e), the money available under subsection (d)(1) and (3) shall be distributed to each 911 system as follows:

(1) A share equivalent to 106% times the respective 911 system's average of local exchange telephone carriers surcharge collections under section 5305 (relating to 911 system plan) for the five years immediately preceding the effective date of this section.

(2) A share equivalent to 106% times the respective 911 system's average of VoIP provider's surcharge collections under section 5307 for the five years immediately preceding the effective date of this section.

(3) The remaining amount distributed to each 911 system shall be based on the ratio that its average reported allowable 911 system costs for the five years immediately preceding the effective date of this paragraph bear to the average reported allowable 911 system costs for all 911 systems for the five years immediately preceding the effective date of this paragraph.

(g) Surplus.--

(1) If excess money remains available in the fund after the distribution and balanced disbursements required under subsections (d) and (e), the agency shall distribute the remaining money for the enhancement, operation or maintenance of 911 systems as provided under subsection (d)(1) in this Commonwealth in accordance with the Statewide 911 system plan.

(2) If the fund experiences a surplus as described in this section for eight consecutive quarters, the agency shall provide written notice of the surplus to the General Assembly and the written notice shall include a recommended reduced surcharge for consideration by the General Assembly.

(3) The written notice required under paragraph (2) shall be submitted to the General Assembly within 60 days after the end of the eighth consecutive quarter experiencing the surplus.

(h) County or city action required.--A county or city of the third class shall not be eligible to receive funds under this section unless the governing body of the county or city adopts a resolution or ordinance authorizing acceptance of the funds. The county or city shall provide public notice of the intent to adopt the resolution or ordinance. A copy of the resolution or ordinance shall be provided to the agency.

(i) Audits.--

(1) The fund shall be audited in a manner and on a frequency consistent with other restricted receipts accounts administered by the Commonwealth.

(2) The agency shall require a biennial performance audit of each PSAP's use of the disbursements it has received from the fund, including amounts placed in capital or operating reserve consistent with published guidelines established by the agency.

(June 29, 2015, P.L.36, No.12, eff. Aug. 1, 2015; June 28, 2019, P.L.142, No.17, eff. imd.)

2019 Amendment. Act 17 amended subsec. (d)(2).

2015 Amendment. Act 12 added section 5306.1.

Cross References. Section 5306.1 is referred to in sections 5302, 5303 of this title.