Findings of Fact
1. Parties who oppose implementation of income certification have failed to offer any acceptable way to compensate for the lost federal revenues.
2. The income certification program will apply to both ETCs and non-ETCs.
3. The ULTS surcharge would have to be increased from 1.55% to 3.35% to make up for the shortfall if the $330 million in federal funds is eliminated.
4. Restricting ULTS funding sources to California surcharges is fiscally irresponsible and is likely to cause substantial harm to the ULTS program.
5. The FCC employs program-based criteria in the federal default states.
6. In Ohio only 20% of all Lifeline/Link-Up customers qualified via income in 2003.
7. Adopting a hybrid program of income certification or program-based eligibility would best meet the needs of California's consumers.
8. It is easy to verify participation in need-based programs.
9. A hybrid system will reduce the costs of the TPA.
10. Program-based eligibility is much less labor-intensive than the income certification process.
11. Establishment of telephone service should not be delayed pending enrollment in the ULTS program.
12. Verification occurs annually after a customer has already been enrolled in ULTS.
13. The Commission has ongoing oversight over the ULTS program and can institute audits as it deems necessary.
14. The FCC's Order does not address documentation of eligibility for current ULTS customers.
15. It would be costly and time-consuming to recertify all the current 3.4 million ULTS subscribers.
16. Most ETCs in California are parties to this proceeding
17. The ETCs that have participated in this proceeding express strong support for use of a TPA.
18. Use of a TPA would facilitate standardization of the document review and information-handling policies
19. With a single centralized agency, a subscriber could move within California, change telephone carriers, and not have to reapply for the discount.
20. A third party will be more capable of ensuring privacy and security of the customers' personal data
21. Having a centralized TPA would be likely to reduce administrative costs of the program.
22. A single TPA will greatly simplify the Commission's oversight and monitoring responsibilities.
23. It is more cost-effective to have a single TPA, than to have 40 different carriers all performing the same function.
24. With a TPA, there are economies of scale in training the employees who need to review the incoming documents.
25. Program participants' personal information must be kept confidential.
26. A web-based system is a desirable alternative for all customers who are applying for ULTS using program-based eligibility.
27. With program-based eligibility, the participant does not need to provide papers documenting income or program involvement so that form of certification lends itself to an internet application.
28. The web-based access would be an alternative to completion of a paper document which would then be mailed to the TPA.
29. The web-based alternative is not viable for those customers that are applying using income-based criteria.
30. The web-based system could be used for the annual verification process, and would complement a paper system.
31. The TPA will be the only entity responsible for the certification and verification process.
32. Any sort of capitation program where CBOs are compensated for assisting program participants in completing their paperwork is potentially cost-prohibitive.
33. The CBOs currently involved in our ULTS outreach program are uniquely qualified to reach target populations.
34. The CBOs currently involved in ULTS outreach activities will assist in education of the process for signing up for ULTS.
35. CBO involvement is a key element to the success of the new ULTS certification system.
36. The TPA will train CBOs in the forms used and use of the web-based system.
37. There would be economies of scale in having the outreach, call center and certification/verification functions handled by a single entity.
38. A significant volume of information will need to be exchanged between the TPA and carriers.
39. A mechanized system will enable consumers to be enrolled in the program more quickly.
40. It would be cumbersome for the TPA to work with a large group of carriers to develop its interface.
41. Adoption of program-based eligibility may make it unnecessary to implement any form of automatic enrollment.
1. Adopting income-based eligibility requirements will move California toward compliance with the requirements of the FCC's Lifeline Order and retain state eligibility for federal Lifeline/Link-Up funds.
2. Allowing non-ETC CLECs to comply with a lower standard for eligibility would be inequitable and discriminatory.
3. Allowing non-ETC CLECs to comply with a lower standard for eligibility violates Public Utilities Code requirements.
4. Adoption of income certification will ensure that the Commission continues to receive the $330 million in federal Lifeline/Link-Up funds.
5. The FCC's order supports the adoption of program-based criteria, to be used at the consumer's option, in lieu of income-based certification.
6. Self-certification is permitted for states that receive and distribute federal funding on a program eligibility basis.
7. Consumers qualifying under an income-based criterion must present documentation of their household income prior to enrollment in Lifeline.
8. Eligibility for ULTS under the program-based option is not subject to the FCC's income documentation requirements.
9. The FCC requires states to establish a process to verify customers' continued eligibility for the ULTS program.
10. Verification procedures may include random beneficiary audits, periodic submission of documents, or annual self-certification.
11. The cost of establishing a TPA should come from the ULTS surcharge revenues.
12. Carriers should be permitted to recover administrative and implementation costs incurred during and as a result of the transition period.
13. The web-based system should be accessible to persons with disabilities.
14. CBOs should not be compensated a capitation fee for signing up ULTS program participants.
15. The forms to sign up for ULTS should be available in a variety of languages.
16. The forms to sign up for ULTS, along with any accompanying written materials, should be available in an accessible format.
17. The issue of auto enrollment should be deferred to a separate Commission proceeding.
Therefore, IT IS ORDERED that:
1. Income documentation requirements are adopted for the Universal Lifeline Telephone Service (ULTS) program.
2. Acceptable income documentation are the following:
a. Prior year's state, federal, or tribal tax return,
b. Current income statement from an employer or paycheck stub,
c. Statement of benefits from Social Security, Veterans Administration,
d. Statement of benefits from retirement/pension, Unemployment/Workmen's Compensation,
e. Federal or tribal notice letter of participation in Bureau of Indian Affairs General Assistance,
f. A divorce decree, or
g. Child support document.
3. ULTS eligibility is expanded to include program-based eligibility.
4. The following programs shall be used to demonstrate eligibility:
a. Medicaid/Medi-Cal
b. Food Stamps
c. Supplemental Security Income
d. Federal Public Housing Assistance (Section 8)
e. Low Income Home Energy Assistance Program
f. Temporary Assistance for Needy Families (TANF)
g. National School Lunch's free lunch program (NSL)
h. Tribal TANF
i. Bureau of Indian Affairs General Assistance
j. Tribal NSL
k. Tribal Head Start
l. Healthy Families Category A
m. Women, Infants and Children (WIC)
5. Annual self-certification is adopted as the means of verifying continued eligibility for the ULTS program.
6. A Third Party Administrator (TPA) shall perform the certification and verification functions for ULTS.
7. The Telecommunications Division (TD) shall incorporate adequate safeguards to protect participants' personal information into its bid document.
8. The TPA shall establish a web-based system for program-based eligibility and for annual verification.
9. The role of Community Based Organizations involved in the ULTS outreach program shall include promotion of the new certification and verification process.
10. The TD is authorized to combine the contracts for marketing and outreach, the call center, and/or the third party administrator for certification and verification at any point in the future if TD deems it to be cost-effective to do so.
11. The TPA shall develop a mechanized process for the exchange of information with carriers.
12. The TD shall convene a workshop within 30 days of the effective date of this order to discuss the following open issues:
· Security and privacy issues relating to the TPA
· Web-based certification/verification system (including access by the disabled)
· Development of ULTS forms in accessible format for the disabled.
· How the TPA will receive eligibility information from customers, and communicate it to carriers.
13. The TD shall convene a second workshop to discuss:
· Revisions to General Order 153.
· Additional programs to facilitate participation of persons without immigration documents and those who live in a cash economy.
· Miscellaneous implementation issues.
This order is effective today.
Dated April 7, 2005, at San Francisco, California.
MICHAEL R. PEEVEY
President
GEOFFREY F. BROWN
SUSAN P. KENNEDY
DIAN M. GRUENEICH
Commissioners
