ALJ/KAJ/jva Mailed 4/8/2005

Decision 05-04-026 April 7, 2005

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking Into Implementation of Federal Communications Commission Report and Order 04-87, As It Affects The Universal Lifeline Telephone Service Program.

Rulemaking 04-12-001 (Filed December 2, 2004)

DECISION ADOPTING NEW UNIVERSAL LIFELINE TELEPHONE SERVICE CERTIFICATION AND VERIFICATION PROCESSES

Table of Contents

Title Page

DECISION ADOPTING NEW UNIVERSAL LIFELINE TELEPHONE SERVICE CERTIFICATION AND VERIFICATION PROCESSES 22

I. Summary 22

II. Background 33

A. The FCC's Lifeline/Linkup Order 33

B. Implementation of FCC's Order 44

C. Implementation Timeline 55

D. Scope of Proceeding 88

III. Income-Based Eligibility Requirements 88

A. The FCC's Income-Based Requirement 88

B. Income Certification for Non-ETCs 1010

C. Impact of Not Implementing the FCC's Order 1212

D. Adoption of Income Certification Process 1212

E. Acceptable Income Documentation 1212

IV. Program-based Eligibility 1414

A. Program-based Eligibility in the FCC's Order 1515

B. The Need for Program-based Eligibility 1717

C. When Does Certification Occur? 1919

D. List of Programs 2020

V. Verification 2222

A. Scope of Verification 2222

B. Certification of Existing ULTS Customer Base 2424

VI. Third-Party Administrator 2525

A. Cost of Establishing TPA 2828

B. Safeguarding Customer Information 2929

C. Web-Based System 3131

D. The Role of CBOs 3232

E. Exchange of Information Between the TPA and Carriers 3636

IX. Auto Enrollment 3838

VII. Miscellaneous Implementation Issues 4141

VIII. Comments on Draft Decision 4343

IX. Assignment of Proceeding 4343

Findings of Fact 4444

Conclusions of Law 4747

ORDER 4848

DECISION ADOPTING NEW UNIVERSAL LIFELINE TELEPHONE SERVICE CERTIFICATION AND VERIFICATION PROCESSES

I. Summary

California's Universal Lifeline Telephone Service (ULTS) program is, by far, the most comprehensive telephone lifeline service program in the United States. Currently we have 3.4 million authorized participants signed up for the ULTS program.¹

In this decision, we take the initial steps necessary to make certain that the state will continue to receive the $330 million in federal Lifeline/Link-Up funds to protect the financial viability of the ULTS program. Specifically, we adopt a program of income certification and annual verification, as required by the Federal Communications Commission's (FCC's) Lifeline Order.²

At the same time, we adopt program-based eligibility, to facilitate participation in the program by all eligible customers. Program-based eligibility is based on the customer's participation in specific means - tested programs. It is our goal to maximize to the greatest extent possible the number of eligible households that subscribe to ULTS. To that end we are adopting two options for low income customers-income documentation or program-based eligibility-to qualify for the ULTS program. We make other program changes to facilitate ULTS enrollment.

We have determined that the certification and verification processes adopted here should be performed by a Third-Party Administrator (TPA).

We have crafted a program that satisfies the FCC requirements, but also meets the universal service goals of the California Legislature and ensures continued strong enrollment by all segments of eligible populations, including the disabled population, non-English speakers, and those that may have difficulty documenting their income.