1. (a) Scope and purpose. Through this rule the commission seeks to extend Lifeline Service and Link Up Service to all qualifying end users and establish a procedure for the Lifeline Automatic Enrollment Program. 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) and §26.417 of this title (relating to Designation as Eligible Telecommunications Providers to Receive Texas Universal Service Funds (TUSF)).
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 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. Eligible telecommunications' carriers provide qualifying end users with a waiver of the federal subscriber line charge (SLC) and an additional discount up to $7.00 per monthly bill and 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.

      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 blocking.

         1. (i) Toll blocking requirements. The eligible telecommunications carrier 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 the toll blocking charge.
         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 blocking. 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 blocking 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) Discontinuance of Lifeline Discounts when eligibility ends. Upon notice by the Texas Department of Human Services (TDHS), pursuant to subsection (f)(2)(D) of this section, that an end user no longer qualifies for Lifeline Service, the eligible telecommunications carrier shall provide a direct mail notice to the end user advising that the Lifeline Service discount will be discontinued 30 days from the date of the notice unless the end user notifies the eligible carrier that an error has been made. If the end user notifies the carrier of an error, the Lifeline Service discount will be continued for an additional 30 days to allow the end user adequate time to correct records and obtain an affirmation of eligibility from TDHS. If the end user has not obtained an affirmation of eligibility from TDHS by the end of the 60-day period, Lifeline Service may be discontinued and the end user's service and billing will continue at applicable tariffed rates.
         3. (iii) Discontinuance of Lifeline Discounts for customers who have self-certified. Individuals not receiving benefits through TDHS programs, but who have met Lifeline income qualifications in subsection (b) of this section, may be required to verify their status with an affidavit. Eligible telecommunications carriers may require such verification annually and notify customers receiving Lifeline Service by direct mail that the accompanying affidavit must be submitted within 60 days to continue the Lifeline service. If the customer does not respond within 60 days, the Lifeline discount will cease and service will continue at applicable tariffed rates.
      4. (D) Service deposit prohibition. If the qualifying low-income customer voluntarily elects toll blocking from the eligible 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 according to the provisions of this paragraph.

         1. (i) Federal baseline Lifeline support amount. An eligible telecommunications carrier shall grant a waiver of the monthly federal subscriber line charge (SLC) to qualifying low-income customers. If the eligible telecommunications carrier does not charge the federal SLC, it shall apply the 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 customer 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 customer 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.
            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) 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. If such ILEC does not reduce its rates pursuant to a commission order, it shall not be eligible to receive support.
         2. (ii) Eligible telecommunications carriers that charge the federal SLC or equivalent federal charges shall apply the federal baseline Lifeline support to waive a qualified low-income customer'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 customers.
         3. (iii) Eligible telecommunications carriers that do not charge the federal SLC or equivalent federal charges shall apply the federal baseline Lifeline support amount, plus the state-approved reduction 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 customers the resulting amount.
         4. (iv) The monthly discounted residential rate for qualified low-income customers may not be reduced below $2.50.

4. (d) Link Up Service Program. This is a program certified by the Federal Communications Commission (FCC), pursuant to 47 CFR §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 eligible 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. An eligible 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 eligible 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 their local eligible telecommunications carrier with an affidavit of self-certification 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 of TDHS unless they provide their local carrier 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 eligible telecommunications carriers providing local service in their area.

   2. (2) Obligations of eligible telecommunications carriers.

      1. (A) Lifeline Service.

         1. (i) The eligible telecommunications carrier shall provide Lifeline Service to all eligible customers identified by TDHS within its service area in accordance with this section.

            1. (I) The eligible telecommunications carrier shall identify those customers on the initial list(s) provided by TDHS to whom it is providing telephone service and shall begin reduced billing for those qualifying low-income customers in accordance with the timeline filed with the commission pursuant to subsection (i) of this section.
            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 eligible 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 TDHS under subsection (e)(2) of this section, the eligible telecommunications carrier shall begin reduced billing for those qualifying low-income customers subscribing to services within 30 days of receipt of the monthly update.
         3. (iii) The eligible telecommunications carrier shall provide a blank affidavit of self-certification to all customers who may meet the low-income criteria of subsection (b) of this section but do not receive benefits from TDHS and shall provide such affidavit by direct mail at the customer's request. Upon receipt of the customer's signed affidavit the eligible telecommunications carrier shall initiate Lifeline Service within 30 days. The eligible telecommunications carrier may require annual verification pursuant to the procedure in subsection (c)(i)(C)(iii) of this section.
      2. (B) Link Up Service. The eligible telecommunications carrier shall provide Link Up Service to all qualifying low-income customers as described in this section. Upon receipt of the self-certification affidavit, the eligible telecommunications carrier will initiate contact, by direct mail or telephone, with the qualifying customer to determine any necessary information required to accomplish a request for new service. The customer will remain eligible for the Link Up discounts for the 12-month period covered by the self-certification affidavit but the customer will be required to contact the eligible telecommunications carrier to initiate an order for service.

6. (f) Memorandum of Understanding. Pursuant to a Memorandum of Understanding (MOU) between the commission and TDHS to facilitate automatic enrollment of eligible customers in Lifeline, the commission and the TDHS will undertake the following obligations.

   1. (1) Commitments of the commission.

      1. (A) The commission will provide TDHS with a listing of eligible telecommunications carriers in the state. The listing will include the carriers' mailing addresses, a list of the counties served by each carrier, and a carrier contact for Lifeline and Link Up Services.
      2. (B) On a monthly basis, the commission will provide electronic updates to the listing set out in subparagraph (A) of this paragraph, including changes, additions or deletions to the listing.
      3. (C) The commission will work with TDHS and the eligible telecommunications carriers to develop informational material on Lifeline and Link Up Services for distribution to eligible customers through TDHS' field offices.
      4. (D) The commission will provide TDHS with other information available to the commission that will assist TDHS in implementing an automatic enrollment system for eligible customers.

   2. (2) Commitments of TDHS

      1. (A) TDHS will identify all active recipients of the benefits in subsection (b) of this section who are therefore eligible for Lifeline and Link Up Service.
      2. (B) By March 2, 2001, provided that TDHS has received a signed confidentiality agreement pursuant to subsection (l) of this section, TDHS will provide each eligible telecommunications carrier with an initial list of eligible customers for automatic enrollment in Lifeline Service in an electronic format.
      3. (C) The initial list set out in subparagraph (B) of this paragraph shall include the name, address, county, telephone number, if available, and social security number (SSN) of the qualifying customer. TDHS and an eligible telecommunications carrier may agree on another format to the initial list.
      4. (D) TDHS will provide electronic updates to the initial list, in the same format, to each eligible telecommunications carrier. The monthly updates provided by TDHS will include new eligible customers only. An annual update provided by TDHS will include "deletes", defined as a person or persons who have ceased being eligible or ceased receiving benefits from TDHS. The annual delete file will be provided by TDHS on February 1 of each year, beginning February 1, 2002.
      5. (E) TDHS will work with the commission and the eligible telecommunications carriers to develop informational material on Lifeline and Link Up Services for distribution to eligible customers through TDHS' field offices.
7. (g) 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. Within 60 days of the effective date of this section all carriers currently offering Lifeline and Link Up Service shall file a revised tariff in compliance with this section. No other revision, addition, or deletion unrelated to Lifeline Service and Link Up Service shall be contained in the tariff application.
8. (h) Review of Affidavits of Self-Certification, letters and notices provided by eligible telecommunications carriers. Within 30 days of the effective date of this section, eligible telecommunications carriers must provide drafts of its standard affidavit of self-certification for low-income customers and any proposed letters, notices, or informational material, including text of its directory notice, to be used pursuant to this section for commission review and approval.
9. (i) Implementation timeline. Telecommunications carriers must implement the Lifeline Service Automatic Enrollment Program within 180 days after the effective date of this section.

10. (j) Reporting requirements.

    1. (1) After receipt of the initial TDHS eligibility list and then annually on the anniversary of the date of the telecommunications carrier's full implementation of the automatic Lifeline enrollment process, all eligible telecommunications carriers shall file with the commission a report detailing how many customers were enrolled through the Lifeline Automatic Enrollment Program.

    2. (2) 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 Service 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 customers 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, including any information necessary to assess contributions to and disbursements from the TUSF.

    3. (3) 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 Service 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 customers 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.
11. (k) Notice of Lifeline and Link Up Services. An eligible telecommunications provider 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.
12. (l) Confidentiality agreements. Eligible telecommunications carriers must execute a confidentiality agreement with TDHS prior to receiving the eligible customer list pursuant to subsection (f)(2)(B) of this section. The agreement will specify that client information is released by TDHS to the carrier 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.

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.