H.F. 2408 Section 1. Section 34A.7A, subsection 2, Code 2016, is 1 amended to read as follows: 2 2. Moneys collected pursuant to subsection 1 and section 3 34A.7B, subsection 2 , shall be deposited in a separate E911 4 emergency communications fund within the state treasury 5 under the control of the program manager. Section 8.33 shall 6 not apply to moneys in the fund. Moneys earned as income, 7 including as interest, from the fund shall remain in the fund 8 until expended as provided in this section . Moneys in the fund 9 shall be expended and distributed in the following priority 10 order: 11 a. An amount as appropriated by the general assembly to the 12 director shall be allocated to the director and program manager 13 for implementation, support, and maintenance of the functions 14 of the director and program manager and to employ the auditor 15 of state to perform an annual audit of the E911 emergency 16 communications fund. 17 b. (1) The program manager shall allocate to each joint 18 E911 service board and to the department of public safety a 19 minimum of one thousand dollars per calendar quarter for each 20 public safety answering point within the service area of the 21 department of public safety or joint E911 service board that 22 has submitted an annual written request to the program manager 23 in a form approved by the program manager by May 15 of each 24 year. 25 (2) The amount allocated under this paragraph “b” shall be 26 sixty percent of the total amount of surcharge generated per 27 calendar quarter allocated as follows: 28 (a) Sixty-five percent of the total dollars available for 29 allocation shall be allocated in proportion to the square miles 30 of the service area to the total square miles in this state. 31 (b) Thirty-five percent of the total dollars available for 32 allocation shall be allocated in proportion to the wireless 33 E911 calls taken at the public safety answering point in 34 the service area to the total number of wireless E911 calls 35 -1- LSB 6014HV (2) 86 gh/rj 1/ 7

H.F. 2408 originating in this state. 1 (c) Notwithstanding subparagraph divisions (a) and (b), the 2 minimum amount allocated to each joint E911 service board and 3 to the department of public safety shall be no less than one 4 thousand dollars for each public safety answering point within 5 the service area of the department of public safety or joint 6 E911 service board. 7 (3) The funds allocated in this paragraph “b” shall be used 8 for emergency communication equipment utilized by the public 9 safety answering points for the implementation and maintenance 10 of E911 services. 11 b. c. From July 1, 2013, until June 30, 2026, the program 12 manager shall allocate ten percent of the total amount of 13 surcharge generated to wireless carriers to recover their costs 14 to deliver E911 phase 1 services. If the allocation in this 15 paragraph is insufficient to reimburse all wireless carriers 16 for such carrier’s eligible expenses, the program manager 17 shall allocate a prorated amount to each wireless carrier 18 equal to the percentage of such carrier’s eligible expenses as 19 compared to the total of all eligible expenses for all wireless 20 carriers for the calendar quarter during which such expenses 21 were submitted. When prorated expenses are paid, the remaining 22 unpaid expenses shall no longer be eligible for payment under 23 this paragraph. 24 c. d. The program manager shall reimburse communications 25 service providers on a calendar quarter basis for carriers’ 26 eligible expenses for transport costs between the selective 27 router and the public safety answering points related to the 28 delivery of wireless E911 phase 1 services. 29 d. e. The program manager shall reimburse wire-line 30 carriers and third-party E911 automatic location information 31 database providers on a calendar quarterly basis for the 32 costs of maintaining and upgrading the E911 components and 33 functionalities beyond the input to the E911 selective router, 34 including the E911 selective router and the automatic location 35 -2- LSB 6014HV (2) 86 gh/rj 2/ 7

H.F. 2408 information database. 1 e. (1) The program manager shall allocate to each joint 2 E911 service board and to the department of public safety a 3 minimum of one thousand dollars per calendar quarter for each 4 public safety answering point within the service area of the 5 department of public safety or joint E911 service board that 6 has submitted an annual written request to the program manager 7 in a form approved by the program manager by May 15 of each 8 year. 9 (2) The amount allocated under this paragraph “e” shall be 10 forty-six percent of the total amount of surcharge generated 11 per calendar quarter allocated as follows: 12 (a) Sixty-five percent of the total dollars available for 13 allocation shall be allocated in proportion to the square miles 14 of the service area to the total square miles in this state. 15 (b) Thirty-five percent of the total dollars available for 16 allocation shall be allocated in proportion to the wireless 17 E911 calls taken at the public safety answering point in 18 the service area to the total number of wireless E911 calls 19 originating in this state. 20 (c) Notwithstanding subparagraph divisions (a) and (b), the 21 minimum amount allocated to each joint E911 service board and 22 to the department of public safety shall be no less than one 23 thousand dollars for each public safety answering point within 24 the service area of the department of public safety or joint 25 E911 service board. 26 (3) The funds allocated in this paragraph “e” shall be 27 used for communication equipment utilized by the public safety 28 answering points for the implementation and maintenance of E911 29 services. 30 f. (1) If moneys remain in the fund after fully paying 31 all obligations under paragraphs “a” , “b” , “c” , “d” , and “e” , 32 the remainder may be accumulated in the fund as a carryover 33 operating surplus. shall be expended and distributed in the 34 following priority order: 35 -3- LSB 6014HV (2) 86 gh/rj 3/ 7

H.F. 2408 (a) (i) The E911 communications council may provide a grant 1 to any public safety answering point agreeing to consolidate 2 with one or more other public safety answering points. Such 3 a grant to a public safety answering point shall not exceed 4 one-half of the projected cost of consolidation, or two hundred 5 thousand dollars, whichever is less. 6 (ii) The grant program established in this subparagraph 7 division shall expire on June 30, 2022. 8 (iii) The director, in consultation with the program 9 manager and the E911 communications council, shall adopt rules 10 governing the eligibility for and the E911 communications 11 council’s distribution of grants to public safety answering 12 points pursuant to this subparagraph division. 13 (b) The program manager, in consultation with the E911 14 communications council, shall allocate an amount, not to exceed 15 one hundred thousand dollars per fiscal year, for development 16 of public awareness and educational programs related to the 17 use of 911 by the public, educational programs for personnel 18 responsible for the maintenance, operation, and upgrading of 19 local E911 systems , and the expenses of members of the E911 20 communications council for travel, monthly meetings, and 21 training . 22 (c) The program manager shall allocate remaining surplus 23 shall be used moneys equally as follows: 24 (i) To public safety answering points to fund future network 25 and public safety answering point improvements and for the 26 receipt and disposition of 911 calls, including hardware and 27 software for an internet protocol-enabled next generation 28 network , and wireless . 29 (ii) Costs related to access the state’s interoperable 30 communications system. 31 (iii) Costs related to the receipt and disposition of 911 32 calls. 33 (iv) Wireless carriers’ transport costs related to wireless 34 E911 services, if those costs are not otherwise recovered by 35 -4- LSB 6014HV (2) 86 gh/rj 4/ 7

H.F. 2408 wireless carriers through customer billing or other sources and 1 approved by the program manager in consultation with the E911 2 communications council. 3 (2) Notwithstanding section 8.33 , any moneys remaining in 4 the fund at the end of each fiscal year shall not revert to the 5 general fund of the state but shall remain available for the 6 purposes of the fund. 7 g. The director, in consultation with the program manager 8 and the E911 communications council, shall adopt rules pursuant 9 to chapter 17A governing the distribution of the surcharge 10 collected and distributed pursuant to this subsection . The 11 rules shall include provisions that all joint E911 service 12 boards and the department of public safety which answer 13 or service wireless E911 calls are eligible to receive an 14 equitable portion of the receipts. 15 Sec. 2. Section 34A.15, Code 2016, is amended by adding the 16 following new subsection: 17 NEW SUBSECTION . 3A. The council may provide grants, subject 18 to available moneys in the E911 emergency communications fund, 19 to public safety answering points agreeing to consolidate 20 pursuant to section 34A.7A, subsection 2, paragraph “f” . 21 Sec. 3. STUDY OF CONSOLIDATION OF PUBLIC SAFETY ANSWERING 22 POINTS. The department of homeland security and emergency 23 management shall conduct a study to determine how public safety 24 answering points can be consolidated to achieve operational 25 and cost efficiencies. The study shall also review sections 26 34A.7 and 34A.7A to determine the most efficient method 27 of distributing surcharge revenues to support a network of 28 consolidated public safety answering points. The department 29 shall submit a report containing the results of the study no 30 later than January 15, 2017. 31 EXPLANATION 32 The inclusion of this explanation does not constitute agreement with 33 the explanation’s substance by the members of the general assembly. 34 This bill relates to the distribution and permissible 35 -5- LSB 6014HV (2) 86 gh/rj 5/ 7

H.F. 2408 expenditures of the E911 emergency communications service 1 surcharge. 2 Under current Code section 34A.7A, a monthly surcharge 3 is imposed on all communications service providers in Iowa. 4 Moneys collected pursuant to the surcharge are deposited in 5 a fund and are distributed by the E911 program manager in a 6 priority order as listed in Code section 34A.7A(2), paragraphs 7 “a” through “f”. 8 The bill establishes a higher priority of funding for 9 the contents of Code section 34A.7A(2), paragraph “e”, which 10 relates to funding to be provided to joint E911 service boards 11 and to the department of public safety (DPS), and increases the 12 amount of moneys allocated for funding under this paragraph 13 from 46 percent to 60 percent of the total amount of surcharge 14 generated. The bill also specifies that the funds allocated to 15 such joint E911 boards and to DPS shall be used for “emergency” 16 communication equipment to receive and dispose of 911 calls. 17 The bill amends Code section 34A.7A(2), paragraph “f”, 18 which relates to the distribution of any moneys remaining 19 after fully paying all prioritized obligations under the 20 previous paragraphs, by establishing a new priority order for 21 the expenditure and distribution of such remaining moneys. 22 First in this priority order is an amount allocated to the 23 E911 communications council to provide grants to public 24 safety answering points agreeing to consolidate, not to exceed 25 one-half of the cost of consolidation, or $200,000, whichever 26 is less. Such grants may be provided until June 30, 2022. 27 Second in this priority order is an amount, not to exceed 28 $100,000 per year, to be allocated only for the development 29 of public awareness and educational programs relating to the 30 use and maintenance of E911 systems and not for the expenses 31 of members of the E911 communications travel for meetings and 32 training. Third in this priority order is for any remaining 33 moneys to be allocated equally to the following: public safety 34 answering points to fund future network improvements; costs 35 -6- LSB 6014HV (2) 86 gh/rj 6/ 7

H.F. 2408 related to access the Iowa interoperable communications system; 1 costs related to the receipt and disposition of 911 calls; and 2 wireless carriers’ transport costs for wireless E911 services, 3 if applicable. 4 The bill provides the E911 communications council with the 5 authority to provide grants to consolidating public safety 6 answering points under Code section 34A.15. 7 The bill requires the department of homeland security and 8 emergency management to conduct a study to determine the most 9 efficient method to consolidate public safety answering points. 10 The department must submit a report containing the results of 11 the study no later than January 15, 2017. 12 -7- LSB 6014HV (2) 86 gh/rj 7/ 7