DATE:	November 17, 2009
TO:	Office of Commission Clerk (Cole)
FROM:	Office of the General Counsel (Gervasi) Division of Regulatory Analysis (C. Williams, Casey) Division of Economic Regulation (Hewitt)
RE:	Docket No. 090504-TP – Proposed amendment of Rule 25-4.0665, F.A.C., Lifeline Service.
AGENDA:	12/01/09 – Regular Agenda – Interested Persons May Participate
COMMISSIONERS ASSIGNED:			All Commissioners
PREHEARING OFFICER:			Klement
RULE STATUS:			Proposal May Be Deferred
SPECIAL INSTRUCTIONS:			None
FILE NAME AND LOCATION:			S:\PSC\GCL\WP\090504.RCM.DOC

 

 Case Background

The Florida Public Service Commission (Commission) first initiated rulemaking regarding Lifeline service in 2004, upon a petition filed by the Office of Public Counsel (OPC) to implement a rule requiring local exchange telecommunications companies to provide Lifeline service within 30 days of certification of a customer’s eligibility for such service under section 364.10(3)(a), Florida Statutes (F.S.).  Staff held rule development workshops on August 9, 2004, and November 5, 2004, to obtain comments on OPC’s proposed rule. On July 15, 2005, staff received a letter from OPC indicating that the local exchange companies had improved the processing of Lifeline applications and that rulemaking on the matter was no longer necessary. Therefore, that rulemaking docket, Docket No. 040451-TP, was closed by Order No. PSC-05-0911-FOF-TP, issued September 16, 2005.

Thereafter, the Commission promulgated Rule 25-4.0665, Florida Administrative Code (F.A.C.), effective January 2, 2007, to implement a procedure for the notification and termination of Lifeline service.  The Rule was amended effective December 6, 2007, to implement procedures for the Lifeline service Automatic Enrollment Process, in compliance with Section 364.10(3)(h)2, F.S.  That section requires any state agency that determines a person is eligible for Lifeline service to immediately forward the information to the Commission for automatic enrollment, and required the Commission to adopt rules no later than December 31, 2007, creating procedures to automatically enroll eligible customers in Lifeline service.

Since the inception of the Florida Lifeline program, the Commission has issued various orders addressing specific Lifeline requirements.  Further, various state and federal laws have been adopted addressing Lifeline service.  The purpose of the rule amendments proposed herein is to consolidate various Lifeline and Link-Up requirements for eligible telecommunications carriers (ETCs).

On October 2, 2008, and November 13, 2009, the Commission issued Notices of Development of Rulemaking in the Florida Administrative Weekly (F.A.W.), to implement eligibility requirements for Lifeline service and to amend the requirements ETCs must follow when offering Lifeline service.  Specific requirements designed to strengthen the program address certification, verification, data reporting, and other key issues related to Lifeline.

On November 5, 2008, Commission staff held a rule development workshop to allow interested persons to provide input regarding the proposed amendment of Rule 25-4.0665, F.A.C.  Various interested persons participated, including various ETCs and OPC.  Post-workshop comments were submitted on December 12, 2008, from the Florida Telecommunications Industry Association (FTIA), Verizon Florida LLC (Verizon), Sprint Nextel Corp. (Sprint Nextel), and Nexus Communications, Inc. (Nexus).

This recommendation addresses staff’s recommended amendments to Rule 25-4.0665, F.A.C., included as Attachment A.  The Commission has jurisdiction pursuant to sections 120.80(13)(d), 364.0252, 364.10, 364.105, and 364.183(1), F.S, and rulemaking authority pursuant to sections 120.54, 350.127(2), 364.0252, and 364.10(3)(j), F.S.

Discussion of Issues

Issue 1: 

 Should the Commission propose amendments to Rule 25-4.0665, F.A.C.?

Recommendation: 

 Yes, the Commission should propose amendments to Rule 25-4.0665, F.A.C., as set forth in Attachment A.  (Gervasi, C. Williams, Casey, Hewitt)

Staff Analysis: 

 Staff is recommending the amendment of Rule 25-4.0665, F.A.C., to consolidate various Lifeline and Link-Up requirements for ETCs. Attachment A contains the rule language staff is recommending.

Staff has taken into consideration the comments filed by ETCs in the proposed rule amendments.  In its comments, FTIA suggested that the rule language be clear that not all ETCs are required to offer Lifeline to customers based upon an income eligibility test involving the federal poverty income guidelines for Lifeline service, and that those ETCs that are not required to offer Lifeline service may do so voluntarily.  Section 364.10(3)(a), F.S., requires each local exchange company (LEC) that has more than 1 million access lines and that is designated as an ETC to provide Lifeline service to any customer who meets an income eligibility test of 150% or less of the federal poverty income guidelines.  Subsection (2) of the proposed rule amendments, at page 6, lines 15-17, incorporates FTIA’s suggestion.  There was also concern at the workshop about ETCs accepting applications electronically, since many companies are not able to do so without incurring significant cost.  Subsection (7) of the proposed rule amendments, at page 7, lines 12-15, satisfies this concern by allowing customers the option to submit applications by U.S. Mail or facsimile, as well as electronically.  FTIA, Verizon, and Sprint Nextel suggested that the Lifeline reporting requirements be no more often than annual.  In Subsection (19), at page 11, lines 5-9, staff recommends that the reporting requirements be quarterly.  Staff believes that quarterly reporting is necessary because it will allow for better oversight of the program, will provide staff with current data to track program success and to respond to external requests, and will not overly burden the ETCs.  Nexus suggested an alternate means of enrollment whereby subscribers would be allowed to self-certify their eligibility in the Lifeline and Link-Up programs, under penalty of perjury, by submitting a copy of a document demonstrating their participation in one of the means-based programs approved by the Commission.  Subsection (6) of the proposed rule amendments, at page 7, lines 8-11, requires ETCs to accept Public Assistance eligibility determination letters as proof of eligibility for Link-Up and Lifeline enrollment.

Subsections (1) through (8) of the proposed rule amendments, at page 6, lines 2-24, through page 7, lines 1-19, outline the eligibility requirements for Lifeline service and the enrollment process for the Lifeline and Link-up programs.  Subsections (10) through (12) of the proposed rule amendments, at page 9, lines 13-22, require that ETCs not impose additional verification requirements on subscribers beyond those required by the rule or by the OPC under section 364.10(3)(a), F.S., and that ETCs provide notice of the reason for a rejected Lifeline application within 30 days of receipt of the application.  Subsection (16), at page 10, lines 16-22, imposes specific advertising requirements upon ETCs of the availability of Lifeline service.  Subsection (17), at page 10, lines 23-24, through page 11, lines 1-2, prohibits ETCs from charging a service deposit if the subscriber elects toll blocking or toll limitation. Subsection (18), at page 11, lines 3-4, prohibits ETCs from charging Lifeline subscribers a monthly number-portability charge.  Finally, Subsection (19), at page 11, lines 5-18, imposes specific quarterly reporting requirements upon ETCs offering Link-Up and Lifeline service.

Statement of Estimated Regulatory Costs

            The Florida Administrative Procedure Act encourages an agency to prepare a Statement of Estimated Regulatory Costs (SERC).  The SERC prepared by staff is included as Attachment B to this recommendation.

            The SERC states that the proposed rule language would have an increased workload on staff, associated with implementation of the Automated Online Application Process and maintenance and review of the quarterly reports, but that the rule changes could decrease inquiries from ETCs relating to Lifeline service.  The proposed rule amendments would affect approximately 21 ETCs, some of which are small businesses. Lifeline customers could experience less difficulty and delay in receiving approval of their applications, but would have to pay a deposit if they do not elect toll blocking.  Outside businesses and local governments should not be affected.

 

            Based on the foregoing, staff recommends that the Commission propose the amendment of Rule 25-4.0665, F.A.C., as set forth in Attachment A of this recommendation.

Issue 2:  Should this docket be closed?

 

Recommendation:  Yes, if no requests for hearing or comments are filed, the rule as proposed should be filed with the Secretary of State, and the docket should be closed. (Gervasi)

 

Staff Analysis:  Unless comments or requests for hearing are filed, the rule, as proposed, may be filed with the Secretary of State without further Commission action.  This docket may then be closed.