If a city council imposes a surcharge pursuant to NRS 266.344, the city council shall:

1. 1. Establish by ordinance an advisory committee to develop a plan, consistent with the master plan adopted by the city council pursuant to NRS 266.344, to enhance the telephone system for reporting an emergency in the city and to oversee any money allocated for that purpose. The advisory committee must consist of not less than five members who:

   1. (a) Are residents of the city;
   2. (b) Possess knowledge concerning telephone systems for reporting emergencies; and

   3. (c) Are not elected public officers.

      At least one member of an advisory committee established pursuant to this section must be a representative of an incumbent local exchange carrier that provides service to persons in that city. As used in this subsection, “incumbent local exchange carrier” has the meaning ascribed to it in 47 U.S.C. § 251(h)(1), as that section existed on October 1, 1999, and includes a local exchange carrier that is treated as an incumbent local exchange carrier pursuant to that section.

2. 2. Create a special revenue fund of the city for the deposit of the money collected pursuant to NRS 266.344. The money in the fund must be used only to enhance the telephone system for reporting an emergency so that the number and address from which a call received by the system is made may be determined, including only:

   1. (a) Paying recurring and nonrecurring charges for telecommunication services necessary for the operation of the enhanced telephone system;
   2. (b) Paying costs for the personnel and training associated with the routine maintenance and updating of the database for the enhanced telephone system;
   3. (c) Purchasing, leasing or renting the equipment and software necessary to operate the enhanced telephone system; and
   4. (d) Paying costs associated with any maintenance, upgrade and replacement of equipment and software necessary for the operation of the enhanced telephone system.
3. 3. If the balance in a fund created pursuant to subsection 2 that has not been committed for expenditure exceeds $500,000 at the end of any fiscal year, reduce the amount of the surcharge imposed during the next fiscal year by the amount necessary to ensure that the unencumbered balance in the fund at the end of the next fiscal year does not exceed $500,000.

(Added to NRS by 2005, 496)