DAR File No. 38545

Public Service Commission, Administration

Rule R746-341

Lifeline/Link-up Rule

Notice of Proposed Rule

(Amendment)

DAR File No.: 38545
Filed: 05/20/2014 10:34:45 AM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule amendment is necessary to reflect changes in federal Lifeline program rules and procedures and changes to the Public Service Commission's contract with the Department of Workforce Services (DWS) for Lifeline program administration.

Summary of the rule or change:

The following is a summary of the amendments to the rule: 1) in Section R746-341-1, clarifies the applicability of the rule; 2) in Section R746-341-2, provides updated definitions to reflect changes in the telecommunications industry and federal law regarding Lifeline since the last substantive rule amendment; 3) in Section R746-341-3, provides a list of aid programs that qualify an applicant to participate in the Lifeline program. This section also provides a list of the documents a person must submit to be qualified under an income based standard. Additionally, this section outlines the duties of an applicant; 4) in Section R746-341-4, defines the duties of the program administrator reflecting current practice and anticipated improvements to procedures and capabilities; 5) in Section R746-341-5, defines the duties of the eligible telecommunications carrier (ETC) with respect to record keeping, documentation and customer interactions; 6) in Section R746-341-6, defines the Lifeline program service characteristics that must be present in a state Lifeline service offering; 7) in Section R746-341-7, clarifies that a Lifeline service offered by a federal ETC must be consistent with the federal program guidelines and relevant Public Service Commission orders and rules; 8) in Section R746-341-8, defines the required reporting requirements for state ETCs; 9) in Section R746-341-9, clarifies the funding source for the Lifeline program and allowable expenses; and 10) in Section R746-341-10; clarifies how state ETCs may be reimbursed for Lifeline benefits extended and associated expenses.

State statutory or constitutional authorization for this rule:

• Section 54-4-1
• Section 54-4-4

Anticipated cost or savings to:

the state budget:

Amending this rule will result in reduced administrative costs for the Lifeline program and a more streamlined process for removing non-qualifying participants from the Lifeline program.

local governments:

The lifeline program will have no fiscal impact on local government because the program only disburses money to private companies. Local governments will not be required to collect taxes nor will they receive any payments. As such, this rule amendment will have no effect on local government.

small businesses:

The lifeline program will have no fiscal impact on small businesses because the program only disburses money to eligible telecommunication carriers approved by the Public Service Commission. As a result, this rule amendment will have no effect on small businesses.

persons other than small businesses, businesses, or local governmental entities:

This rule amendment will facilitate more accurate Lifeline program participant eligibility decisions.

Compliance costs for affected persons:

This rule amendment will not result in additional compliance costs for affected persons (companies) because the rule reduces the cost of participating in a program for the eligible telecommunication carriers. For customers receiving the benefit it will reduce their cost of telephone service.

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

This rule amendment will have no fiscal impact on businesses.

Ron Allen, Commission Chairman

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

Public Service Commission
Administration
HEBER M WELLS BLDG
160 E 300 S
SALT LAKE CITY, UT 84111-2316

Direct questions regarding this rule to:

• Sheri Bintz at the above address, by phone at 801-530-6714, by FAX at 801-530-6796, or by Internet E-mail at [email protected]
• Jordan White at the above address, by phone at 801-530-6712, by FAX at , or by Internet E-mail at [email protected]

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:

07/15/2014

This rule may become effective on:

07/22/2014

Authorized by:

Jordan White, Legal Counsel

R746. Public Service Commission, Administration.

R746-341. Lifeline[/Link-up] Rule.

R746-341-1. Applicability.

[Telecommunications corporations]This Rule applies to each telecommunications corporation that [have been]is designated as an eligible telecommunications [carriers]carrier (ETC) by the Commission, pursuant to [Section]47 U.S.C. 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. "Account holder" -- means the person responsible to pay the Lifeline account bills.

B.  "Applicant" -- means [the eligible telecommunications]an ETC's customer, residing in an ETC's service area, who [owns and resides in a residential property or rents and resides in a residential property]fills out an application for Lifeline service.

[B. "Responsible Agency" -- means the state government agency that administers the certification, verification, and continued verification of Lifeline enrollment.

]C. "[ ]ETC[ ]" -- means [the]an eligible telecommunications carrier.

D. "Federal ETC" -- means an ETC that qualifies for, and participates in, only the federal Lifeline program.

E. "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.]F. "Household" -- means a single person or group of individuals who meet the definition of mutual support contained in the federal Lifeline rules established pursuant to 47 U.S.C. 214.

G.  "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.

H. "Lifeline" -- means either federal or state programs defined by 47 U.S.C. 214 and this rule.

I. "NLAD" -- means the National Lifeline Accountability Database.

J. "Participant" -- means an ETC's customer currently receiving a Lifeline benefit.

K. "Program administrator" -- means the state government agency with which the Commission contracts to administer the initial eligibility verification and continued eligibility verification, of the State Lifeline participants.

L. "State ETC" -- means an ETC that participates in both the federal and state Lifeline programs.

 

R746-341-3. Eligibility Requirements.

A. Initial Program-Based Criteria [-- The ETCs]-- An ETC shall provide [lifeline]Lifeline telephone service to [any applicant who self-certifies, under the penalty of perjury, his]an applicant's household [is]which, using an approved application form, is verified by either the program administrator (for State ETCs), or by a federal ETC, to be 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).

]1. Medicaid;

2. Supplemental Nutrition Assistance Program (SNAP or Food Stamps);

3. Supplemental Security Income (SSI);

4. Federal Public Housing Assistance (Section 8);

5. Low-Income Home Energy Assistance Program (LIHEAP);

6. Temporary Assistance to Needy Families (TANF);

7. National School Lunch Program's Free Lunch Program; or

8. Head Start (if income eligibility criteria are met).

B. Tribal Residents -- For an individual who could qualify for Tribal programs, but who wishes to receive (non-Tribal) Lifeline service instead of Tribal Lifeline service, the following programs may be used to determine eligibility in addition to any of the above listed programs:

1. Bureau of Indian Affairs General Assistance;

2. Tribally-Administered Temporary Assistance for Needy Families (TTANF); or

3. Food Distribution Program on Indian Reservations (FDPIR).

[B.]C.  Initial Income-Based Criteria [-- The ETCs]-- An ETC shall provide [lifeline]Lifeline telephone service to [any]an applicant who certifies via supporting documentation[,](to either the ETC for federal ETC customers, or the program administrator for state ETC customers), under [the ]penalty of perjury, [his]that the applicant's household income [to be]is 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]an applicant shall certify, under [the ]penalty of perjury, the number of individuals residing in [their]the household.

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

a. Prior [year's]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]Workers 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.]D. Eligibility Certification -- The application form for participation [will]shall be supplied by the ETC or the [responsible agency]program administrator and [contain]shall be consistent with both the [following:

1. applicant's name, program participating telephone number, if available, identification]federal requirements, then in effect, and any additional information requirements of the [ETC which the applicant anticipates will provide service, and social security number;

2. a request for lifeline service]program administrator, and [where applicable, a request for Link-up America Plan participation;]shall include:

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

4.]1. 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 qualifies under other federal eligibility criteria; or a statement, under [the ]penalty of perjury, as to whether the [person's]person's household income is at or below 135 percent of the current Federal Poverty Guidelines.;

[a. If]2. if qualified by income-based criteria, 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]applicant's household income[.];

[5.]3. a statement that if the applicant is later shown to have submitted [a ]false [self-certification]information in an attempt to qualify for the Lifeline program, the applicant [will]shall be responsible to re-pay the [difference between] benefits received; and

4. the signature of applicant, either physical or electronic.

E. False Certification Penalties -- A participant who does not qualify, but who has submitted false documentation or statements to qualify for the Lifeline program, is responsible to re-pay the value of the benefits received to the state Lifeline program, and is subject to whatever penalties are then current for the federal Lifeline program.

F. Tribal Land Lifeline Discounts - This rule does not govern or otherwise affect the Tribal Land Lifeline Discount program.

 

R746-341-4. Duties of the Program Administrator.

A. Initial Eligibility

1. The program administrator shall process all applications submitted for participation in the state Lifeline telephone service program after checking the NLAD for pre-existing participation. The program administrator shall inform the applicant and the state ETC of the results of the application process.

B. Annual Eligibility Verification

1. The program administrator shall verify on an annual basis the continuing eligibility status of state ETC Lifeline telephone service participants. The annual eligibility verification shall be performed on a participant list current as of December 31, and shall be conducted in the month following the deadline for submission of Federal Communication Commission Form 497.

C. De-Enrollment Process

1. The program administrator shall manage the de-enrollment process for state ETC Lifeline telephone service participants who are no longer eligible for the program. Upon an initial finding that a Lifeline recipient is no longer eligible to participate in the state the [l]Lifeline [service rate and the otherwise applicable service rate;]program, the program administrator shall send a notice to the participant explaining the participant's Lifeline telephone service benefit will be discontinued after 30 days unless the participant verifies continuing eligibility before that date. The notice shall include the reason(s) for the recipient being ineligible and a description of the options available to the recipient to demonstrate eligibility.

[6. a statement whether this is a new connection or a reconnection; and

7. the applicant's signature.

]2. At the end of thirty days, if the participant has not demonstrated continuing eligibility, the program administrator shall notify the relevant state ETC to discontinue the ineligible participant's Lifeline telephone service benefit. The benefit must be discontinued in the month following notification; thus the next month's benefit cannot be provided.

3. Ineligible past participants may reapply for the Lifeline program, but must do so by submitting a completed application to the program administrator for state program participation, or to a federal ETC for federal only participation.

D. Participants Switching Between ETCs -- When a current Lifeline telephone service participant desires to change to a different ETC's Lifeline telephone service, the participant and ETCs shall follow the established NLAD procedures. A participant who is not able to complete the switch due to unresolved problems may seek the assistance of the Division of Public Utilities requesting help in resolving the issue.

[D.]E. Documentation Retention -- The [responsible agency will]program administrator shall retain income and program eligibility certification [for as long as agreed with the Commission]documentation, in electronic format, for as long as required by then current federal Lifeline policies. Copies of the relevant documentation shall be made available on request to auditors from either the federal Lifeline telephone service program or the state Lifeline telephone service program.

[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, 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 customers on the Lifeline service rate shall be verified annually

B. Verification Responsibilities -- At least annually, the responsible agency shall provide the ETCs with information identifying customers who are eligible for Lifeline service or Link-up America Plan participation.

C. Verification 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. Should the ETC have a ]

 

R746-341-5. Duties of ETCs.

A. State ETCs

1. Each state ETC shall, at least monthly, send to the program administrator changes in the status of the Lifeline participants to whom the state ETC provides Lifeline telephone service, including:

a. participants changing residence locations (addresses);

b. participants switching carriers; or

c. customers who no longer receive telephone service.

2. The records sent shall contain the full identifying information for each participant as required by the program administrator's policies.

3. Each state ETC shall provide information to potential applicants regarding how to receive an application from the program administrator. This information shall be provided in person, in written format at the ETC's offices, and online at the ETC's website.

4. Each state ETC shall add the Lifeline discount to a customer's account, as directed by the program administrator, within five business days.

5. Each state ETC shall remove the Lifeline discount from a participant's account as directed by the program administrator beginning with the next month's billing cycle following notification of the participant's ineligible status.

6. Each state ETC shall update the NLAD whenever it implements changes in a participants' Lifeline status.

7. If a Lifeline participant seeks to switch service to a different ETC, the program administrator shall be notified by the ETC to which the participant switches. The ETCs shall follow all applicable NLAD procedures to accomplish the participant's desired switch. The new benefit may not be applied until the following month. Each ETC shall update the NLAD to reflect the change in the participant's status.

8. Annually, each state ETC shall send the program administrator a full list of all Lifeline participants, and qualifying individuals if necessary, current as of December 31 of the preceding year. The list shall be provided to the program administrator when the ETC submits the Federal Communication Commission Form 497 for the year in question. The list shall contain the identifying information as required by the program administrator's policies.

9. If a state ETC has 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]participant no longer qualifies for Lifeline service, the [responsible agency will send a notice to the Lifeline customer requesting;]ETC shall promptly inform the program administrator and provide the documentation, or reason, for its belief.

[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.

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.

]10. A state ETC shall cooperate with the Division of Public Utilities to resolve Lifeline service complaints the Division brings to the state ETC's attention.

B. Federal ETCs

Each designated federal ETC shall operate in the State of Utah subject to the conditions outlined in the commission order granting ETC status, the applicable provisions of this rule, and in accordance with the federal Lifeline program requirements.

1. Each federal ETC shall update the NLAD to reflect the ETC's initial eligibility verification decision and the participant's Lifeline status whenever the federal ETC adds or removes a Lifeline customer.

2. Each federal ETC shall update the NLAD with all changes in the ETC's participants' Lifeline status.

3. If a Lifeline participant seeks to switch service to a different ETC the program administrator shall be notified by the ETC to which the participant switches. The ETCs shall follow all applicable NLAD procedures to accomplish the participant's desired switch. The new benefit may not be applied until the following month. Each ETC shall update the NLAD to reflect the change in the participant's status.

4. A federal ETC shall cooperate with the Division of Public Utilities to resolve Lifeline service complaints the Division of Public Utilities brings to a federal ETC's attention.

 

R746-341-6. State[R746-341-5.] Lifeline Telephone Service Features.

A. Discounts -- Lifeline telephone service provided by state ETCs shall consist of dial tone line, usage charges or their equivalent, and [any]authorized Extended Area Service (EAS) charges, less a discount of $3.50 and [any]all other matching funds established by the Federal Communication Commission.

B. Service Characteristics -- State Lifeline telephone service shall include all features listed in Utah Code Ann. Section 54-8b-2(2).

C.  Deposits -- When customer security deposits are otherwise required , they [will]shall be waived for Lifeline telephone service [customers]participants 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. Nonrecurring Charge Waiver -- Lifeline telephone service [customers will]participants shall 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]a given 12-month period.

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

F. Restrictions -- Lifeline telephone service [will]shall be subject to the following restrictions:

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

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

G. Other Services -- A Lifeline telephone service [customer will]participant may not be required to purchase other services from the state ETC, nor prohibited from purchasing other services unless the [customer]participant has failed to comply with the [ETC's]state ETC's terms and conditions for those services.

 

R746-341-7. Federal Lifeline Telephone Service Features.

Federal Lifeline telephone service consists of those features and conditions set forth in the applicable commission docket in which the federal ETC status was granted, as modified by subsequent orders and R746-341.E

 

R746-341-8. State ETC Reporting Requirements.

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

[1]A. the forgone revenue resulting from the discounts provided to Lifeline [customers]participants, if any;

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

[3]C. interest accrual amounts on Lifeline [and Link up ]funds[; and], if any;

[4]D. the number of Lifeline telephone service [customers]participants by exchange area per month; and

[5]E. a detailed report of outreach efforts.

 

R746-341-9.[R746-341-8.] Funding of Lifeline.

[A.  ]Cost Recovery -- The total cost of providing the state portion of Lifeline telephone service, including [the]commission approved administrative costs of the state ETCs and the costs incurred by the [responsible agency]program administrator, shall be recovered and funded as provided in Utah Code Ann. Section 54-8b-15.

 

R746-341-10.[R746-341-9.] Collection and Disbursement of Lifeline Funds.

[A.]State ETC Payment -- Within 30 days after the review [and ]audit of [an ETC's]a state ETC's semi-annual report by the Division of Public Utilities results in a favorable recommendation, the Public Service Commission shall disburse an amount equal to the [ETC's]ETC's semi-annual Lifeline program expenses and Lifeline discounts granted.  For amounts the Division of Public Utilities disallows, the state ETC may petition the Commission to open a docket to examine the reasonableness of the denied amounts.

 

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

Date of Enactment or Last Substantive Amendment: [February 24, ]2014

Notice of Continuation: October 18, 2010

Authorizing, and Implemented or Interpreted Law: 54-4-1; 54-4-4