DAR File No. 27821

Public Service Commission, Administration

R746-341

Lifeline Rule

NOTICE OF PROPOSED RULE

DAR File No.: 27821
Filed: 04/15/2005, 01:40
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

The purpose of this amendment is to comply with changes to federal rules and to clarify the responsibilities of telecommunications carriers and recipients of Lifeline.

Summary of the rule or change:

Changes are made to provide updated guidelines for carriers and individuals to participate in the state Lifeline program. In addition to previous eligibility based on participation in specified assistance programs (and updating the current names for such programs), the rule is amended to reorganize the existing rule dealing with the Commission practice of eligibility based on income levels and specifically tracts the Federal Communications Commission income eligibility criteria and documentation standards. The change also places in the rule past practice and policy of steps to carry over eligibility from year to year and clarifies the steps necessary to establish qualification and how to challenge program disqualifications.

State statutory or constitutional authorization for this rule:

Sections 54-8b-15 and 54-8b-10

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or saving impacts upon state agency budgets, but for a possible impact on the Universal Service Fund (USF), which is not a state agency budget, if some additional individuals participate in the Lifeline program and generate some additional subsidy payments. The subsidy amounts for participants remain the same, but the number of participants may change. The Commission has no information to estimate the number of additional individuals who may participate beyond those already participating. As the Commission already permits income-based qualification beyond assistance program participation qualification for Lifeline service, additional participation likely will come from continuing outreach programs (which are not affected by the rule change other than including in the rule the current practice of telecommunications carriers informing the Commission of their outreach efforts and coordination attempts) rather than from any proposed change in the existing rule. The Commission administers the USF for telecommunications carrier expenses and its own associated costs and those of other state agencies who are impacted (the agency verifying participation in specified assistance programs). The Commission believes that any changes in state agency operations can be accommodated without any change in costs or savings for these agencies or any impact on the level of funds currently budgeted in the USF.

local governments:

No effect--This rule does not affect local government. Therefore, there are no costs or savings.

other persons:

Costs for telecommunications carriers may decrease as they may standardize current practices for eligibility determinations, but no significant change is anticipated as the changes to the rule follow current practices used in administering the Lifeline program. Cost to participants may increase as they may have to obtain different or additional documents, and retain them for a specified period, but no significant changes are anticipated as the rule change follows current income based qualification process. Indeed, some (small) savings may be realized as the rule change specifies the specific documentation which will be accepted, possibly reducing participants document acquisition and retention efforts of documents which may no longer be needed in eligibility determinations.

Compliance costs for affected persons:

Individuals discounted telephone service will be the same as currently provided; the number of participants may change, but this will not have an affect at the individual level. Individuals will receive the same discount/price reduction for Lifeline telephone service as was provided prior to the proposed rule change.

Comments by the department head on the fiscal impact the rule may have on businesses:

The state participation in the Lifeline program has attempted to mirror the federal program and maximize as much as possible the benefits that can be obtained for telecommunication services customers in the State of Utah. Eligibility criteria and verifications methods have changed at the federal level, so this rule change is generally driven to reflect these changes, rather than make changes on the financial or fiscal aspects of the existing rule. While the rule change can result in additional individuals participating in the program, the current funding mechanism is sufficient to accommodate that potential change without changing the surcharge. Ric Campbell, Chairman

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Direct questions regarding this rule to:

Barbara Stroud or Sandy Mooy at the above address, by phone at 801-530-6714 or 801-530-6708, by FAX at 801-530-6796 or 801-530-6796, or by Internet E-mail at bstroud@utah.gov or smooy@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

05/31/2005

This rule may become effective on:

06/01/2005

Authorized by:

Barbara Stroud, Paralegal

RULE TEXT

R746. Public Service Commission, Administration.

R746-341. Lifeline/Link-up Rule.

R746-341-1. Applicability.

Telecommunications corporations that have been designated as eligible telecommunications carriers by the Commission, pursuant to Section 214 of the Federal Communications Act, shall establish a lifeline telephone service pursuant to the requirements of Sections 2 through [8]10.

R746-341-2. Definitions.

A. "Applicant" -- means [a head of a household or person in whose name the property or rental agreement resides]the eligible telecommunications customer who owns and resides in a residential property or rents and resides in a residential property.

B. "[Appropriate State]Responsible Agency" -- means [the agency administering the public assistance programs listed in R746-341-3(A).]the agency that administers the certification, verification, and continued verification of Lifeline enrollment.

C. " ETC " -- means the eligible telecommunications carrier.

D. "Federal Poverty Guidelines" -- means the poverty guidelines issued each year by the Department of Health and Human Services and published in the Federal Register.

E. "Income " -- means gross income, whether earned or unearned, received by all members of the household including, but not limited to, salary before deductions. Income shall not include student financial aid, military housing and cost-of-living allowances, or irregular income from occasional small jobs.

R746-341-3. Eligibility Requirements.

A. Program-Based Criteria -- The [eligible telecommunications carriers]ETCs shall provide lifeline telephone service to any applicant who self-certifies, under the penalty of perjury, the household members' eligibility for public assistance under one of the following or its successor programs:

1. Temporary Assistance to Needy Families (TANF);

2. [Emergency Work Programs]Work Toward Employment;

3. Food Stamps;

4. General Assistance;

5. Home Energy Assistance Target Programs/Help Program;

6. Medicaid[l Assistance];

7. Refugee Assistance;

8. Supplemental Security Income.

9. Federal Public Housing Assistance, including Section 8 Housing;

10. National School Lunch Free Lunch Program; or

11. Head Start Program (income qualifying standard only).

B. Income-Based Criteria -- The ETCs shall provide lifeline telephone service to any applicant who certifies via supporting documentation, under the penalty of perjury, income to be at or below 135 percent of the then applicable Federal Poverty Guidelines.

1. Income-based eligibility is based on family size and actual income, therefore, the Lifeline customer must certify, under the penalty of perjury, the number of individuals residing in their household.

2. A Lifeline customer must certify, under the penalty of perjury, that the documentation presented accurately represents the applicant's annual household income. The following documents, or any combination of these documents, are acceptable for Lifeline certification;

a. Prior year's state, federal, or tribal tax return;

b. Current year-to-date earnings statement from an employer or three consecutive months of paycheck stubs;

c. Social Security statement of benefits;

d. Veterans Administration statement of benefits;

e. Retirement/pension statement of benefits;

f. Unemployment/Worker's Compensation statement of benefits;

g. Federal or tribal notice letter of participation in Bureau of Indian Affairs General Assistance; or

h. Divorce decree, or child support wage assignment statement.

[B.]C. [Self-c]Certification -- [will be upon a form]The application form for participation will be supplied by the [eligible telecommunications carrier]ETC or the [appropriate state]responsible agency and contain the following:

1. applicant's name, current telephone number, and social security number;

2. a request for lifeline service;

3. an affirmative statement that the applicant qualifies for lifeline service.

4. a statement, under the penalty of perjury, as to whether the person is participating in one of the programs [set out]listed in Subsection R746-341-3.A[ above or would be eligible for one or more of those programs, without respect to any time limitation for participation in those programs]; or a statement, under the penalty of perjury, as to whether the person's income is at or below 135 percent of the Federal Poverty Guidelines.

a. If qualified by income-based criteria, certification must be supported by acceptable documentation listed in R746-341-3.B.

5. a statement that if the applicant is later shown to have submitted a false self-certification for the Lifeline program, the applicant will be responsible to pay the difference between the lifeline service rate and the otherwise applicable service rate;

6. a statement whether this is a connection or a reconnection[ or not]; and

7. the applicant's signature.

D. Documentation Retention -- The responsible agency will retain income and program eligibility certification for as long as the eligible customer receives Lifeline service from an ETC.

E. Tribal Land Lifeline Discounts -- Customers who live on tribal lands and who qualify for the state Lifeline service rate based on the program qualifications and income qualifications set forth in R746-341-3.B, are eligible to receive a larger federal discount. Those federal discounts are not within the scope of, nor governed by, these rules.

R746-341-4. [Verification Procedures]Continuing Eligibility.

A. Annual Verification -- The continuing eligibility of all customers on the Lifeline service rate shall be verified annually[At least a]

B. ETC Verification Responsibilities -- Annually, the [eligible telecommunications carriers]ETCs offering Lifeline telephone service shall provide the [appropriate state]responsible agency with computer tapes, written lists, or personal computer disks, listing their Lifeline service customers' names, telephone numbers, addresses and social security numbers. [Eligible telecommunications carriers]ETCs with more than 300 Lifeline telephone customers shall provide the information in an electronic format useable by the [appropriate state]responsible agency. ETC's with less than 300 customers shall provide the information in a format designated by the responsible agency.

C. Verification Criteria -- The responsible agency will verify the continued eligibility of Lifeline customers under the program-based and income-based eligibility criteria.

1. The responsible agency shall identify a method by which income eligibility will be verified on an annual basis including, but not limited to, annual self-certification, random beneficiary audits, a periodic submission of income documents, or the continued eligibility of a statistically valid sample of Lifeline customers.

2. The responsible agency will use the records provided in Subsection R746-341-3.A. to match, using the state computer system, against program participation.

3. If a Lifeline customer does not appear as a participant in a program on the state computer system, the responsible agency will send a letter to the Lifeline customer requesting;

a. proof of participation in any of the programs listed in R746-341-3.A; or

b. documentation of eligibility under the income-based criteria set forth in R746-341-3.B.

4. The responsible agency shall notify any Lifeline customer who fails to supply proof of participation in one of the programs listed in R746-341-3.A or documentation of income eligibility as listed in R746-341-3.B of an intent to discontinue the customer's eligibility for the Lifeline service discount. The letter will explain the appeals process as set forth in Subsection R746-341-4.D.

a. The notice must allow the customer at least 60 days to demonstrate continued eligibility consistent with this rule.

5. If the customer fails to file an appeal within the prescribed appeal period, or if the customer does not prevail on appeal, the responsible agency will notify each ETC, using a format designated by the responsible agency, that the customer is no longer eligible for the Lifeline service rate.

[B. Lifeline telephone customers who do not participate in any of the programs listed in Section 3, but who are qualified to participate in those programs, shall be certified by the appropriate state agency as being eligible for any of the qualifying programs, and shall thereafter be included on a Lifeline Only verification list maintained by the agency. Lifeline customers on Lifeline Only lists will be required to annually recertify with the appropriate state agency to verify their continued eligibility for Lifeline telephone service.

C. Eligible telecommunications carriers shall notify any Lifeline telephone service customer who fails to appear on the appropriate state agency's listing of public assistance program participants, or Lifeline Only list, that the customer is now ineligible and is no longer entitled to the Lifeline service rate.

D. A subscriber denied Lifeline telephone service under Subsection C above shall be entitled to resubscribe to Lifeline service only after the eligible telecommunications carrier providing telephone service to that subscriber has received confirmation from the appropriate state agency that the discontinued Lifeline telephone services subscriber is currently a participant in a state public assistance program or is qualified to participate in those programs, or would be able to participate in those programs but for any time limitation related to participation in those programs.]D. Termination Notices and Dispute Resolution --

1. Should the ETC or the responsible agency have a reasonable basis to believe that a Lifeline telephone service customer no longer qualifies for Lifeline service in accordance with this rule, the ETC or the responsible agency shall notify the customer of its intent to discontinue the customer's eligibility and the basis for that decision. The notice shall be in writing and shall be delivered to the customer in a mailing separate from the customer's monthly bill.

a. The notice must allow the customer at least 60 days to demonstrate continued eligibility consistent with this rule. The customer's participation in Lifeline may not be discontinued during the 60-day period.

b. The notice shall also alert the customer of the option to continue local telephone service after termination of Lifeline benefits at the non-discounted rate.

2. If the customer fails to provide proof of continued eligibility as required, or if the ETC or the responsible agency does not accept the customer's proof of continued eligibility, the ETC or the responsible agency shall notify the customer in writing of its determination and intent to discontinue the customer's participation in the program. The notice shall also include instructions for filing an appeal of the determination.

a. The customer may appeal this decision within ten days of the notification by filing a written notice of appeal with the agency assigned responsibility for administering the Lifeline program.

b. Lifeline benefits will continue pending an appeal of a non-eligibility decision.

3. The appeal shall be addressed consistent in time and manner with the dispute resolution procedures set forth in R746-240-7 and 8 that provide for review and resolution of disputes between telecommunications carriers and consumers.

E. False Certification Penalties -- A Lifeline telephone service customer who does not qualify and has falsely self-certified and participated in the Lifeline program will be responsible to pay the difference between the Lifeline service rate and the otherwise applicable service rate for the length of time the customer subscribed to Lifeline telephone service for which the customer was not eligible.

R746-341-5. Lifeline Telephone Service Features.

A. Discounts -- Lifeline telephone service provided by [eligible telecommunications carriers]ETCs shall consist of dial tone line, usage charges or their equivalent, and any Extended Area Service (EAS) charges, less a discount [equal to the end user common line charge]of $3.50 and any other matching funds established by the Federal Communication Commission.

B. Deposits -- When customer security deposits are otherwise required, they will be waived for Lifeline telephone service [subscribers]customers if the [subscriber]customer voluntarily elects to receive toll blocking.

C. Link-Up America Plan Participation -- Companies providing Lifeline service shall apply for the Link-Up America Plan provided by the Federal Communications Commission.

D. Link-Up America Plan Discounts -- In addition to the Link-Up America reduction, Lifeline qualifying customers are entitled to a 50 percent reduction of the remaining connection charges.

E. Nonrecurring Charge Waiver -- Lifeline telephone service [subscribers]customers will receive a waiver of the nonrecurring service charge for changing the type of local exchange usage service to Lifeline service, or changing from flat rate service to message rate service, or vice versa, but only [once]one such waiver shall be allowed during any 12-month period.

F. Disconnection -- Lifeline service shall not be disconnected for nonpayment of toll service.

G. Restrictions -- Lifeline telephone service will be subject to the following restrictions:

1. Lifeline telephone service will only be provided to the applicant's principal residence.

2. A Lifeline telephone service [subscriber]customer will only receive a Lifeline discount on one single residential access line.

H. Other Services -- A Lifeline telephone service customer will not be prohibited from purchasing vertical services.

R746-341-6. Link-up America Plan Telephone Service.

A. Link-Up -- An ETC shall provide the initial installation for telephone service to any applicant who qualifies for Lifeline service in accordance with the eligibility criteria listed under R746-341-3.

1. Link-up telephone service provided by ETCs is a federal program that provides a 50 percent discount of the initial hook-up fee, up to $30.00, for eligible customers.

B. Enhanced Link-UP -- Customers who live on tribal lands and qualify for the state Lifeline service rate under R746-341-3, are eligible to receive a larger federal discount. Those federal discounts are not within the scope of, nor governed by, these rules.

R746-341-[6]7. Reporting Requirements.

A. [Eligible telecommunications carriers]Reporting Requirements -- ETCs shall submit, to the Division of Public Utilities, a semi-annual report, by June 30 and December 31, of each year, containing a description of the [eligible telecommunication carrier's]ETC's Lifeline program. The reports shall also contain monthly information on:

1. the forgone revenue resulting from the discounts provided to Lifeline customers;

2. the amounts of administrative, advertising, voucher and other program expenses;

3. interest accrual amounts on Lifeline and Link up funds; and

4. the number of Lifeline telephone service [subscribers]customers by exchange area; and

5. a detailed report of outreach efforts.

R746-341-[7]8. Funding of Lifeline.

A. Cost Recovery -- The t[T]otal cost of providing Lifeline telephone service, including the administrative costs of the [eligible telecommunications carriers]ETCs and the costs incurred by the responsible[ of the appropriate state] agency, shall be recovered and funded as provided in 54-8b-15.

R746-341-[8]9. Collection and disbursement of Lifeline Funds.

A. ETC Payment -- Within 30 days after review and audit of an [eligible telecommunications carrier's]ETC's semi-annual report, the Public Service Commission shall disburse an amount equal to the [eligible telecommunications carrier's]ETC's semi-annual Lifeline program expenses and Lifeline discounts granted.

R746-341-10. Outreach Guidelines.

A. Reporting and Coordination -- ETC's shall report their outreach efforts to the Public Service Commission, as well as coordinate with agencies that administer any of the relevant government assistance programs to maximize public awareness and participation in the Lifeline Program.

KEY: telephone, telecommunications, rules and procedures, lifeline rates

[March 1, 2001]2005

Notice of Continuation November 15, 2000

54-4-1

54-4-4

ADDITIONAL INFORMATION

PLEASE NOTE:

• Text to be deleted is struck through and surrounded by brackets (e.g., [example]). Text to be added is underlined (e.g., example). Some browsers may not depict some or any of these attributes on the screen or when the document is printed.
• Please see the DISCLAIMER regarding information available from state web pages.

For questions regarding the content or application of this rule, please contact Barbara Stroud or Sandy Mooy at the above address, by phone at 801-530-6714 or 801-530-6708, by FAX at 801-530-6796 or 801-530-6796, or by Internet E-mail at bstroud@utah.gov or smooy@utah.gov

For questions about the rulemaking process, please contact the Division of Administrative Rules (801-538-3764). Please Note: The Division of Administrative Rules is NOT able to answer questions about the content or application of these administrative rules.