1. (a) Application. This section applies to 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 (FUSF)).
2. (b) Lifeline Service and Link Up Service. Each eligible telecommunications carrier shall provide Lifeline Service and Link Up Service as provided by this section. A consumer eligible for Lifeline Service is automatically eligible for Link Up Service. However, a consumer may qualify for and receive Link Up Service independently of Lifeline Service. Nothing in this section shall prohibit a consumer otherwise eligible to receive Lifeline Service and/or Link Up Service from obtaining and using telecommunications equipment or services designed to aid such consumer in utilizing qualifying telecommunications services.

3. (c) Lifeline Service Program. Lifeline Service is a retail local service offering available to qualifying low-income consumers.

   1. (1) Provision of Lifeline Service. Lifeline Service shall be provided according to the following requirements.

      1. (A) Designated Lifeline services. The eligible telecommunications carrier shall offer the services or functionalities enumerated in 47 Code of Federal Regulations §54.101(a)(1)-(9) (relating to Supported Services for Rural, Insular and High Cost Areas).

      2. (B) Toll limitation.

         1. (i) Toll limitation requirements. The eligible telecommunications carrier shall offer toll limitation to all qualifying low-income consumers at the time such consumers subscribe to Lifeline Service. If the consumer elects to receive toll limitation, that service shall become part of the consumer's Lifeline Service.
         2. (ii) Waiver. The commission may grant a waiver of the requirement of clause (i) of this subparagraph upon a finding that exceptional circumstances prevent an eligible telecommunications carrier from providing toll limitation. The period for the waiver shall not extend beyond the time that the commission deems necessary for that eligible telecommunications carrier to complete network upgrades to provide toll limitation services.

      3. (C) Disconnection of service.

         1. (i) Disconnection prohibition. An eligible telecommunications carrier may not disconnect Lifeline Service for non-payment of toll charges.

         2. (ii) Waiver. The commission may grant a waiver of clause (i) of this subparagraph if the eligible telecommunications carrier can demonstrate that:

            1. (I) it would incur substantial costs in complying with this requirement;
            2. (II) it offers toll limitation to its qualifying low-income consumers without charge; and
            3. (III) telephone subscribership among low-income consumers in the eligible telecommunications carrier's service area is greater than or equal to the national subscribership rate for low-income consumers with an income below the poverty level for a family of four residing in the state.

         3. (iii) Review by Federal Communications Commission (FCC).

            1. (I) An eligible telecommunications carrier may file a petition for review of the commission decision pursuant to clause (ii) of this subparagraph with the FCC within 30 days of that decision.
            2. (II) If the commission has not acted on a petition to waive the requirement of clause (i) of this subparagraph within 30 days of the date of the filing of the waiver petition, the eligible telecommunications carrier may file the petition with the FCC on the 31st day after the initial filing date.
         4. (iv) Subsequent waiver requests. An eligible telecommunications carrier may reapply for the waiver set forth in clause (ii) of this subparagraph.

      4. (D) Service deposit prohibition.

         1. (i) Service deposit requirements. An eligible telecommunications carrier may not collect a service deposit in order to initiate Lifeline Service, if the qualifying low-income consumer voluntarily elects toll blocking from the eligible telecommunications carrier.
         2. (ii) Waiver. If a waiver for providing toll blocking has been granted pursuant to subparagraph (B)(ii) of this paragraph, an eligible telecommunications carrier may charge a service deposit.

   2. (2) Lifeline support.

      1. (A) Lifeline support amounts. Lifeline support amounts per qualifying low-income consumer shall be provided according to the provisions of this paragraph.

         1. (i) Federal baseline Lifeline support amount. An eligible telecommunications carrier shall grant a waiver of the $3.50 monthly federal subscriber line charge (SLC) to qualifying low-income consumers. If the eligible telecommunications carrier does not charge the federal SLC, it shall apply the $3.50 federal baseline support amount to reduce its lowest tariffed residential rate for supported services.
         2. (ii) State-approved $1.75 reduction. Pursuant to 47 Code of Federal Regulations §54.403 (relating to Lifeline Support Amount), an eligible telecommunications carrier shall give a qualifying low-income consumer a state-approved reduction of $1.75 in the monthly amount of intrastate charges paid.

         3. (iii) Additional state reduction with federal matching. Pursuant to 47 Code of Federal Regulations §54.403, an eligible telecommunications carrier shall give a qualifying low-income consumer the following:

            1. (I) an additional state-approved reduction of $3.50 in the monthly amount of intrastate charges; and
            2. (II) a further federally approved reduction of $1.75.

      2. (B) Recovery of support amounts.

         1. (i) Federal baseline Lifeline support. An eligible telecommunications carrier shall be entitled to recover the support amount required by subparagraph (A)(i) of this paragraph pursuant to 47 Code of Federal Regulations §54.407 (relating to Reimbursement for offering Lifeline), through the federal USF.
         2. (ii) State-approved $1.75 reduction. An eligible telecommunications carrier shall be entitled to recover federal Lifeline support pursuant to 47 Code of Federal Regulations §54.407 to recover the reduction amount required by subparagraph (A)(ii) of this paragraph.

         3. (iii) Additional state reduction with federal matching.

            1. (I) An eligible telecommunications carrier shall be entitled to recover support from the Texas Universal Service Fund to recover the reduction amount required by subparagraph (A)(iii)(I) of this paragraph. An eligible telecommunications carrier that is also an incumbent local exchange company (ILEC) as defined by §26.5 of this title (relating to Definitions) that offered, as of June 1, 1997, a tariffed $3.50 Lifeline Service rate discount in addition to the $3.50 waiver of the federal SLC, must reduce rates for services determined appropriate by the commission by an amount equivalent to the amount of support it is eligible to receive under this subclause. If such ILEC does not reduce its toll and access rates pursuant to this subclause, it shall not be eligible to receive support under this subclause.
            2. (II) An eligible telecommunications carrier shall be entitled to recover federal Lifeline support pursuant to 47 Code of Federal Regulations §54.407 to recover the reduction amount required by subparagraph (A)(iii)(II) of this paragraph.

      3. (C) Application of support amounts.

         1. (i) Eligible telecommunications carriers that charge the federal SLC or equivalent federal charges shall apply the $3.50 federal baseline Lifeline support to waive a qualified low-income consumer's federal SLC. The state-approved reductions of $1.75 and $3.50 and the additional federally approved reduction of $1.75 shall be applied to reduce the monthly intrastate end user charges paid by the qualifying low-income consumers.
         2. (ii) Eligible telecommunications carriers that do not charge the federal SLC or equivalent federal charges shall apply the $3.50 federal baseline Lifeline support amount, plus the state-approved reductions of $1.75 and $3.50 and the additional federally approved reduction of $1.75 to reduce their lowest tariffed residential rate for the supported services and charge qualified low-income consumers the resulting amount.
         3. (iii) The monthly discounted residential rate for qualified low-income consumers may not be reduced below $2.50.

4. (d) Link Up Service Program. This is a program certified by the FCC that provides qualifying low-income consumer with the following assistance:

   1. (1) Services.

      1. (A) A qualifying low-income consumer may receive a reduction in the eligible telecommunications carrier's customary charge for commencing telecommunications service for a primary single line connection at the consumer'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 consumer may receive a deferred schedule for payment of the charges assessed for commencing service, for which the consumer does not pay interest. The interest charges not assessed the consumer shall be 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.
   2. (2) Qualifying low-income consumer choice. A qualifying low-income consumer may choose one or both of the programs set forth in paragraphs (1)(A) and (B) of this subsection.
   3. (3) Limitation on receipt. An eligible telecommunications carrier's Link Up program shall allow a qualifying low-income consumer to receive the benefit of the Link Up program for a second or subsequent time only for a principal place of residence with an address different from the residence address at which the Link Up assistance was provided previously.

5. (e) Obligations of the consumer, Texas Department of Human Services (TDHS), and the eligible telecommunications carrier.

   1. (1) Obligations of the consumer. Consumers may apply for Lifeline Service and Link Up Service by completing and filing an application with TDHS. Consumers who are eligible for Lifeline Service and Link Up Service and who do not have telephone service must additionally initiate a request for service from their serving eligible telecommunications carrier.
   2. (2) Obligations of TDHS. TDHS shall review the consumer's application form and shall determine if the consumer meets the eligibility criteria. TDHS shall provide each eligible telecommunications carrier with an initial list of consumers eligible for Lifeline Service and Link Up Service and shall provide an updated list to each eligible telecommunications carrier on a semi-annual basis.

   3. (3) Obligations of eligible telecommunications carriers.

      1. (A) Lifeline Service.

         1. (i) The eligible telecommunications carrier shall provide Lifeline Service to all eligible consumers identified by TDHS within its service area if the existing service of those consumers meets the qualifications set forth in subsection (d)(1) of this section. The eligible telecommunications carrier shall identify those consumers on the TDHS list to whom it is providing telephone service and shall determine if the existing telephone service qualifies. Within 60 days after receipt of the list, the eligible telecommunications carrier shall begin reduced billing for those qualifying low-income consumers subscribing to qualifying services.
         2. (ii) If the existing telephone service does not qualify, the eligible telecommunications carrier shall advise the eligible consumer by direct mail of changes necessary to satisfy Lifeline criteria. The eligible telecommunications carrier shall advise the eligible consumer by direct mail that persons choosing not to make necessary changes to their telephone service arrangements will not receive Lifeline Service and that the eligible consumer 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 consumer changes the telephone service to qualifying services or initiates new qualifying service, the eligible telecommunications carrier shall begin reduced billing at the time the change of service becomes effective or at the time new service is established.
         3. (iii) The eligible telecommunications carrier shall notify TDHS on a semi-annual basis of changes in the status of its Lifeline Service consumers.
      2. (B) Link Up Service. The eligible telecommunications carrier shall provide Link Up Service to all qualifying low-income consumers identified by TDHS within its service area, who have initiated a request for service pursuant to subsection (e)(1) of this section.
      3. (C) Qualifying low-income consumer certification. An eligible telecommunications carrier shall obtain from the qualifying low-income consumer that consumer's signature on a document certifying under penalty of perjury that the consumer receives benefits from one of the following: Medicaid, food stamps, Supplemental Security Income, federal public housing assistance, or Low-Income Energy Assistance Program, and shall identify the program(s) from which that consumer receives benefits. On the same document, a qualifying low-income consumer must also agree to notify the eligible telecommunications carrier if that consumer ceases to participate in the program(s) identified.
6. (f) Tariff requirement. Each carrier seeking designation as an eligible 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, prior to filing its application for designation as an eligible telecommunications carrier. No other revision, addition, or deletion unrelated to Lifeline Service and Link Up Service shall be contained in the tariff application.

7. (g) Reporting requirements.

   1. (1) Texas Universal Service Fund (TUSF). An eligible telecommunications carrier 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. An eligible telecommunications carrier shall provide the commission and the TUSF administrator with information demonstrating that its Lifeline plan meets the requirements of this section.
      2. (B) Monthly reporting requirements. An eligible telecommunications carrier shall report monthly to the TUSF administrator the total number of qualified low-income consumers to whom Lifeline Service was provided for the month by the eligible telecommunications carrier.
      3. (C) Other reporting requirements. An eligible telecommunications carrier shall report any other information required by the commission or the TUSF administrator.

   2. (2) Federal Lifeline Service Program. An eligible telecommunications carrier shall file the following information with the administrator of the Federal Lifeline Program:

      1. (A) information demonstrating that the eligible telecommunications carrier's Lifeline plan meets the criteria set forth in 47 Code of Federal Regulations Subpart E (relating to Universal Service Support for Low-Income Consumers);
      2. (B) the number of qualifying low-income consumers served by the eligible telecommunications carrier;
      3. (C) the amount of state assistance; and
      4. (D) other information required by the administrator of the Federal Lifeline Program.

Source Note:The provisions of this §26.412 adopted to be effective August 10, 1999, 24 TexReg 6035.