DAR File No. 28137

Public Service Commission, Administration

R746-341

Lifeline/Link-up Rule

NOTICE OF PROPOSED RULE

DAR File No.: 28137
Filed: 08/12/2005, 03:54
Received by: NL

RULE ANALYSIS

Purpose of the rule or reason for the change:

These changes are being made to further update and clarify the guidelines, eligibility, and verification requirements for carriers and individuals to participate in the state Lifeline program.

Summary of the rule or change:

The proposed amendments update or clarify: 1) Subsection R746-341-2(A) which clarifies that the responsible agency is a state government agency; 2) Section R746-341-3 which clarifies that eligibility is based on consideration of the household and not the individual, and clarifies that the application will identify the telephone service provider and Link-up America inclusion, and that records will be maintained as agreed between the responsible agency and the Commission; 3) Section R746-341-4 which clarifies that the continuing verification responsibility lies with the responsible agency and not telephone companies, and clarifies the notice process that will be followed to establish continuing eligibility and how a participant may appeal an adverse eligibility determination; 4) Section R746-341-5 which clarifies that a participant need not subscribe to other services, but if so choosing, needs to comply with the terms applicable to these other services; and 5) Section R746-341-6 which clarifies that the Link-up America discount will be applied to eligible customer's accounts. Subsections R746-341-4(C)(2), R746-341-4(C)(4), R746-341-4(C)(5), and R746-341-5(D), and Section R746-341-10 are deleted to remove redundant provisions and to effect these clarifications.

State statutory or constitutional authorization for this rule:

Section 54-8b-15

Anticipated cost or savings to:

the state budget:

There is no anticipated cost or saving impacts upon state agency budgets because the changes are to update and clarify the existing process and rule.

local governments:

No effect because this rule does not affect local government budgets or local government activities.

other persons:

No cost or saving impacts are expected as the changes are to clarify the existing process and application of the rule.

Compliance costs for affected persons:

None--The proposed rule text changes clarify the existing process and rule application. No change is expected in the substantive conduct of individuals participating in the Lifeline program, telephone companies, or state agencies.

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

Informal comments on the existing rule have indicated that various provisions could be clarified to avoid questions about the processes and procedures to be followed in operating the Lifeline program. The proposed changes should have no fiscal impact as they are made to have the rule language more closely follow the existing and anticipated process and avoid ambiguity that may exist in the current rule. 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:

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

10/03/2005

This rule may become effective on:

10/04/2005

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 10.

R746-341-2. Definitions.

A. "Applicant" -- means the eligible telecommunications customer who owns and resides in a residential property or rents and resides in a residential property.

B. "Responsible Agency" -- means the state government 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 ETCs shall provide lifeline telephone service to any applicant who self-certifies, under the penalty of perjury, [the]his household [members' eligibility]is eligible for public assistance under one of the following or its successor programs:

1. Temporary Assistance to Needy Families (TANF);

2. Work Toward Employment;

3. Food Stamps;

4. General Assistance;

5. Home Energy Assistance Target Programs/Help Program;

6. Medicaid;

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, his household 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 customers 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.

C. Certification -- The application form for participation will be supplied by the ETC or the responsible agency and contain the following:

1. applicant's name, [current]program participating telephone number, if available, identification of the ETC which the applicant anticipates will provide service, and social security number;

2. a request for lifeline service, and where applicable, a request for Link-up America Plan participation;

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 listed in Subsection R746-341-3.A or other federal eligibility criteria; or a statement, under the penalty of perjury, as to whether the person's household 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.]a statement, under penalty of perjury, that identifies the number of individuals residing in the household and affirms that the documentation presented to support eligibility accurately represents the applicant's household income.

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 new connection or a reconnection; 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]agreed with the Commission.

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, other federal eligibility criteria, 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. Continuing Eligibility.

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

B. [ETC ]Verification Responsibilities -- At least annually, the [ETCs offering Lifeline telephone service]responsible agency shall provide the [responsible agency with computer tapes, written lists, or personal computer disks, listing their Lifeline service customers' names, telephone numbers, addresses and social security numbers. ETCs with more than 300 Lifeline telephone customers shall provide the information in an electronic format useable by the responsible agency. ETC's with less than 300 customers shall provide the information in a format designated by the responsible agency]ETCs with information identifying customers who are eligible for Lifeline service or Link-up America Plan participation.

C. Verification [Criteria]Methods -- 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. ]Should the ETC 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 shall inform the responsible agency. If a Lifeline customer does not appear as a participant in a program on the state computer system or the responsible agency otherwise has a basis to believe that the customer no longer qualifies for Lifeline service, the responsible agency will send a [letter]notice to the Lifeline customer requesting;

a. proof of participation in any of the programs listed in R746-341-3.A or other federal eligibility criteria; 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]c. The notice must allow the customer at least [60]40 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.

] 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]If the customer fails to respond to the notice given pursuant to R746-341-4.C.2. or otherwise establish continued eligibility, the responsible agency shall notify the customer of its intent to discontinue the customer's eligibility and the basis for that decision. The program eligibility termination notice shall be in writing and shall be delivered to the customer[ in a mailing separate from the customer's monthly bill]'s mailing address.

a. The program eligibility termination notice must allow the customer at least [60]20 days to demonstrate continued eligibility consistent with this rule. The customer's participation in Lifeline may not be discontinued during the [60]20-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]Division of Public Utilities.

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 with the responsible agency in place of a telecommunications carrier.

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 ETCs shall consist of dial tone line, usage charges or their equivalent, and any Extended Area Service (EAS) charges, less a discount 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 customers if the 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 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 one such waiver shall be allowed during any 12-month period.

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

[G]F. 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 customer will only receive a Lifeline discount on one single residential access line.

[H]G. Other Services -- A Lifeline telephone service customer will not be required to purchase other services from the ETC, nor prohibited from purchasing [vertical]other services unless the customer has failed to comply with the ETC's terms and conditions for those 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. ETCs shall apply the Link-up America Plan discount to eligible customers identified by the responsible agency.

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.

R746-341-7. Reporting Requirements.

A. 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 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 customers by exchange area; and

5. a detailed report of outreach efforts.

R746-341-8. Funding of Lifeline.

A. Cost Recovery -- The total cost of providing Lifeline telephone service, including the administrative costs of the ETCs and the costs incurred by the responsible agency, shall be recovered and funded as provided in 54-8b-15.

R746-341-9. Collection and disbursement of Lifeline Funds.

A. ETC Payment -- Within 30 days after review and audit of an ETC's semi-annual report, the Public Service Commission shall disburse an amount equal to the 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

[June 20, ]2005

Notice of Continuation November 15, 2000

54-4-1

54-4-4

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