1. (a) Scope and purpose. Through this section the commission seeks to extend Lifeline Service and Link Up Service to all qualifying customers, establish a procedure for Lifeline Automatic Enrollment and Lifeline Self-Enrollment, and define the responsibilities of participating telecommunications carriers, qualified customers, the Texas Department of Human Services (TDHS), and the Low-Income Discount Administrator (LIDA) Program. This section applies to designated eligible telecommunications carriers as defined by §26.418 of this title (relating to Designation of Common Carriers as Eligible Telecommunications Carriers to Receive Federal Universal Service Funds) and designated eligible telecommunications providers as defined by §26.417 of this title (relating to Designation as Eligible Telecommunications Providers to Receive Texas Universal Service Funds (TUSF)), collectively referred to in this section as participating telecommunications carriers.
2. (b) Lifeline Service and Link Up Service. Each participating telecommunications carrier shall provide Lifeline Service and Link Up Service as provided by this section. A customer with an income at or below 125% of the federal poverty guidelines, or receiving benefits from any of the following programs qualifies for Lifeline and Link Up Services: Medicaid, food stamps, Supplemental Security Income (SSI), federal public housing assistance, or Low Income Energy Assistance Program (LIHEAP). A customer eligible for Lifeline Service is automatically eligible for Link Up Service. However, a customer may qualify for and receive Link Up Service independently of Lifeline Service. Nothing in this section shall prohibit a customer otherwise eligible to receive Lifeline Service and/or Link Up Service from obtaining and using telecommunications equipment or services designed to aid such customer in utilizing qualifying telecommunications services.

3. (c) Lifeline Service Program. Lifeline Service is a retail local service offering available to qualifying low-income customers. Participating telecommunications carriers provide qualifying customers with a waiver of the federal subscriber line charge (SLC) and an additional discount up to $7.00 per monthly bill, for which participating telecommunications carriers are reimbursed from federal and state universal service funds.

   1. (1) Provision of Lifeline Service. Lifeline Service shall be provided according to the following requirements and the terms of the Low-Income Discount Procedural Guide (the Guide). The Guide compiles the regulatory and statutory requirements for, and roles of, participants in the rate reduction program, including participating telecommunications carriers, TDHS, the LIDA, and customers, and sets out administrative information, including the required data formats and deadlines for transmitting information to the LIDA, other program participants, and the commission. The initial version of the Guide will be approved by the commission, but it may be updated to reflect statutory or commission-approved changes in rules and program requirements, or to modify the format or timing of the provision of information by participating telecommunications carriers and the LIDA, with the approval of the Executive Director.

      1. (A) Designated Lifeline services. The participating telecommunications carriers shall offer the services or functionalities enumerated in Title 47, Code of Federal Regulations, §54.101(a)(1)-(9) (relating to Supported Services for Rural, Insular and High Cost Areas).
      2. (B) Toll blocking. The participating telecommunications carriers shall offer toll blocking to all qualifying low-income customers at the time such customers subscribe to Lifeline Service. If the customer elects to receive toll blocking, that service shall become part of the customer's Lifeline Service and the customer's monthly bill will not be increased by otherwise applicable toll blocking charges.

      3. (C) Disconnection of service.

         1. (i) Disconnection prohibition. Participating telecommunications carriers may not disconnect Lifeline Service for non-payment of toll charges.
         2. (ii) Discontinuance of Lifeline Discounts for customers automatically enrolled. The eligibility period for automatically enrolled customers is the length of their enrollment in TDHS benefits plus a period of 60 days for renewal. Automatically enrolled customers will have an opportunity to renew their TDHS benefits or self enroll with LIDA upon the expiration of their automatic enrollment.
         3. (iii) Discontinuance of Lifeline Discounts for customers who have self-enrolled. Individuals not receiving benefits through TDHS programs, but who have met Lifeline income qualifications in subsection (b) of this section, are eligible to receive the Lifeline Discount for seven months, which includes a period of 60 days during which the customer may renew their eligibility with LIDA for an additional seven months.
      4. (D) Service deposit prohibition. If the qualifying low-income customer voluntarily elects toll blocking from the participating telecommunications carrier, the carrier may not collect a service deposit pursuant to §26.24 of this title (relating to Credit Requirements and Deposits) in order to initiate Lifeline Service.

   2. (2) Lifeline support.

      1. (A) Lifeline support amounts. Lifeline support amounts per qualifying low-income customer shall be provided to participating telecommunications carriers pursuant to Title 47, Code of Federal Regulations, §54.403 (relating to Lifeline Support Amount) and according to any applicable provisions of the Guide. Tribal Land discounts will be provided pursuant to Title 47, Code of Federal Regulations, §54.403(a)(4).

         1. (i) Federal Subscriber Line Charge Waiver. A participating telecommunications carrier shall grant a waiver of the monthly federal subscriber line charge (SLC) at the rate tariffed by the incumbent local exchange carrier serving the area of the qualifying low-income customers. If the participating telecommunications carrier does not charge the federal SLC, it shall reduce its lowest tariffed residential rate for supported services by the amount of the SLC tariffed by the ILEC serving the area of the qualifying low-income customer.
         2. (ii) Federal approved $1.75 reduction. A participating telecommunications carrier shall give a qualifying low-income customer a federal approved reduction of $1.75 in the monthly amount of intrastate charges paid pursuant to Title 47, Code of Federal Regulations, §54.403 (relating to Lifeline Support Amount).

         3. (iii) Additional state reduction with federal matching. A participating telecommunications carrier shall give a qualifying low-income customer the following:

            1. (I) an additional state-approved reduction of up to a maximum of $3.50 in the monthly amount of intrastate charges; and
            2. (II) a further federally approved reduction equal to one-half the amount of the reduction in subclause (I) of this clause up to a maximum of $1.75.
      2. (B) Recovery of support amounts. Participating telecommunications carriers shall be entitled to recover the support amount required by subparagraph (A) of this paragraph pursuant to Title 47, Code of Federal Regulations, §54.407 (relating to Reimbursement for offering Lifeline). Participating telecommunications carriers are entitled to recover the support amount described in subparagraph (A)(i), (ii) and (iii)(II) of this paragraph through the Federal Universal Service Fund (USF). The support amount described in subparagraph (A)(iii)(I) of this paragraph can be recovered through the Texas Universal Service Fund (TUSF).

4. (d) Link Up Service Program. This is a program certified by the Federal Communications Commission (FCC), pursuant to Title 47, Code of Federal Regulations, §54.411, that provides a qualifying low-income customer with the following assistance:

   1. (1) Services.

      1. (A) A qualifying low-income customer may receive a reduction in the participating telecommunications carrier's customary charge for commencing telecommunications service for a primary single line connection at the customer's principal place of residence. The reduction shall be half of the customary charge or $30, whichever is less.
      2. (B) A qualifying low-income customer may receive a deferred schedule for payment of the charges assessed for commencing service, for which the customer does not pay interest. Interest shall be waived for connection charges of up to $200 that are deferred for a period not to exceed one year. Charges assessed for commencing service include any charges that the carrier customarily assesses to connect subscribers to the network. These charges do not include any permissible security deposit requirements. Deferred payment of these charges will not be subject to late fees or additional service fees.
   2. (2) Qualifying low-income customer choice. A qualifying low-income customer is eligible for both of the services set forth in paragraphs (1)(A) and (B) of this subsection.
   3. (3) Limitation on receipt. A participating telecommunications carrier's Link Up Service shall allow a qualifying low-income customer to receive the benefit of Link Up Service on subsequent occasions only for a principal place of residence with an address different from the residence address at which the Link Up Service was provided previously.

5. (e) Obligations of the customer and the participating telecommunications carrier.

   1. (1) Obligations of the customer. Customers who meet the low-income requirement for qualification but do not receive benefits under the programs listed in subsection (b) of this section may provide the LIDA with self-enrollment for Lifeline and/or Link Up Service benefits. Customers receiving benefits under the programs listed in subsection (b) of this section and who have telephone service will be subject to the Lifeline automatic enrollment procedures as provided by the LIDA pursuant to the terms of the Guide unless they provide the LIDA with a request to be excluded from Lifeline Service. Customers receiving benefits under the programs listed in subsection (b) of this section and who do not have telephone service must initiate a request for service from a participating telecommunications carrier providing local service in their area.

   2. (2) Obligations of participating telecommunications carriers.

      1. (A) Lifeline Service.

         1. (i) A participating telecommunications carrier shall provide Lifeline Service to all eligible customers identified by the LIDA within its service area in accordance with this section and the Guide.

            1. (I) A participating telecommunications carrier shall identify those customers on the initial database provided by the LIDA to whom it is providing telephone service and shall begin reduced billing for those qualifying low-income customers in accordance with the terms of the Guide.
            2. (II) The eligible customer shall not be charged for changes in telephone service arrangements that are made in order to qualify for Lifeline Service, or for service order charges associated with transferring the account into Lifeline Service. If the eligible customer changes the telephone service or initiates new service, the participating telecommunications carrier shall begin reduced billing at the time the change of service becomes effective or at the time new service is established.
         2. (ii) Upon receipt of the monthly update provided by the LIDA pursuant to the terms of the Guide a participating telecommunications carrier shall begin reduced billing for those qualifying low-income customers subscribing to services within the timeframe established by the Guide.
         3. (iii) The LIDA shall provide a self-enrollment form by direct mail at the customer's request. The LIDA shall maintain customers' self-enrollment forms and provide a database of self-enrolling customers to all participating telecommunications carriers.
      2. (B) Link Up Service. Participating telecommunications carriers shall provide Link Up Service to all qualifying low-income customers in accordance with this section and the terms of the Guide.
6. (f) Memorandum of Understanding. Pursuant to a Memorandum of Understanding (MOU) between the commission and the TDHS to facilitate automatic enrollment of eligible customers in Lifeline, and pursuant to the terms of the Guide, the commission and the TDHS will undertake obligations to insure an efficient automatic enrollment process in cooperation with the LIDA and all participating telecommunications carriers.
7. (g) Tariff requirement. Each participating telecommunications carrier shall file a tariff to implement Lifeline Service and Link Up Service, or revise its existing tariff for compliance with this section and with applicable law.

8. (h) Reporting requirements.

   1. (1) On September 1st of each year all participating telecommunications carriers shall file with the commission a report detailing how many customers were enrolled through the Lifeline Automatic Enrollment Program, through the self-enrollment process, and how many customers received Link Up in the preceding year.

   2. (2) Texas Universal Service Fund (TUSF). Participating telecommunications carriers providing Lifeline Service pursuant to this section shall report information as required by the commission or the TUSF administrator, including but not limited to the following information.

      1. (A) Initial reporting requirements. Participating telecommunications carriers shall provide the commission and the TUSF administrator with information demonstrating that its Lifeline Service plan meets the requirements of this section.
      2. (B) Monthly reporting requirements. Participating telecommunications carriers shall report monthly to the TUSF administrator the total number of qualified low-income customers to whom Lifeline Service was provided for the month by the participating telecommunications carrier.
      3. (C) Other reporting requirements. Participating telecommunications carriers shall report any other information required by the commission or the TUSF administrator, including any information necessary to assess contributions to and disbursements from the TUSF.

   3. (3) Federal Lifeline Service Program. Participating telecommunications carriers shall file the following information with the administrator of the Federal Lifeline Program:

      1. (A) information demonstrating that the participating telecommunications carrier's Lifeline Service plan meets the criteria set forth in Title 47, Code of Federal Regulations, Subpart E (relating to Universal Service Support for Low-Income Consumers);
      2. (B) the number of qualifying low-income customers served by the participating telecommunications carrier;
      3. (C) the amount of state assistance; and
      4. (D) other information required by the administrator of the Federal Lifeline Program.
9. (i) Notice of Lifeline and Link Up Services. A participating telecommunications carrier shall provide notice of Lifeline and Link Up Services in any directory it distributes to its customers and shall provide an annual bill message advising customers of the availability of Lifeline and Link Up Services. In any instance where the carrier provides bilingual (English and Spanish) information in its directory and annual bill messages, the carrier must also provide its notice regarding Lifeline and Link Up Service in a bilingual format.
10. (j) Confidentiality agreements. Participating telecommunications carriers must execute a confidentiality agreement with TDHS pursuant to the terms of the Guide prior to receiving the LIDA's eligibility database. The agreement will specify that client information is released by TDHS to carriers for the sole purpose of providing Lifeline and/or Link Up Service to eligible customers and that the information cannot be released by the carrier or used by the carrier for any other purpose.

11. (k) Opportunity for contest.

    1. (1) A customer who believes that their self-enrollment application has been erroneously denied may request that LIDA review the application, and the customer may submit additional information as proof of eligibility.
    2. (2) A customer who is dissatisfied with LIDA's action following a request for review under paragraph (1) of this subsection may request an informal hearing to be conducted by the commission staff.
    3. (3) A customer dissatisfied with the determination after an informal hearing under paragraph (2) of this subsection may file a formal complaint pursuant to §22.242(e) of this title (relating to Complaints).
12. (l) Low-Income Discount Procedural Guide. In the event of conflicts between the language of the Guide and the language of this section, the section shall prevail.

Source Note:The provisions of this §26.412 adopted to be effective August 10, 1999, 24 TexReg 6035; amended to be effective March 4, 2001, 26 TexReg 1697; amended to be effective February 5, 2004, 29 TexReg 953.