WPCF 2B0J  CourierTimes RomanTimes Roman BoldTimes Roman ItalicPTimes Roman5Si PostScript RM 8409HPLA5SPO.PRSx  @l$ςX@26 F ZP3|]HP LaserJet 5Si PostScript RM 8409HPLA5SPO.PRSX\  P6G;l$ςPxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+999999S9S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN-"i~'^"(22TN"""28"2222222222888,\HBBH>8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""2"2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""d<d<$YYdCCddooCYL7Z.:L<&z"S^(1<d<d<+oodCCddddCoDD>>>>>>>|>DD||||||||DD|DD yO) yO-q#X\  P6G;2P# Federal Communications Commission `(#DA 981709  yxxdddy )   I. A. 1. a.(1)(a) i) a) I. 1. 1. a.(1)(a) i) a)3u Before the Federal Communications Commission  yO Washington, D.C. 20554 ĐTTP  X-#Xj\  P6G;cXP#In the Matter of hh@) x` `  hh@)  X-FederalState Joint Board on hh@)hppCC Docket No. 9645  X-Universal Service hh@)  Xu-Ԋ  X^ -;ORDER ĐTP  X - Adopted: August 26, 1998hh @hppReleased: August 27, 1998 x` `  hh  X - By the Chief, Common Carrier Bureau:  X-x1. ` ` On November 12, 1997, the Minnesota Public Utility Commission (Minnesota  X-Commission) filed a request for a temporary waiver until August 1, 1998 yO-ԍ Minnesota Public Utilities Commission Request for Waiver, CC Docket 9645 (Nov. 12, 1997) (Minnesota Commission Waiver Request). of the Commission's rule requiring that states that provide Lifeline support must establish consumer  Xx-qualification criteria that is based solely on income or on factors directly related to income.Ix  yOI-ԍ 47 C.F.R.  54.409(a).I On December 30, 1997, the Common Carrier Bureau (Bureau) granted the Minnesota Commission's request for a temporary waiver so that current Lifeline consumers in Minnesota would receive uninterrupted federal support pending legislative changes necessary to conform  X-Minnesota's eligibility criteria to our rules. {O}-ԍ FederalState Joint Board on Universal Service, Order, CC Docket No. 9645, DA 972478 (Com. Car.  {OG-Bur. rel. Dec. 30, 1997) (Lifeline Waiver Order). In this Order, we address the status of Minnesota's Lifeline consumer qualification criteria and conclude that consumers in Minnesota who satisfy the federal default consumer qualification established in section 54.409(b) of the Commission's rules are eligible to receive the baseline amount of federal Lifeline support.  X-x2. ` ` On May 8, 1997, the Commission issued a Report and Order that revised our rules governing consumer qualification for federal Lifeline support and the federal Lifeline  Xd-support amount. Zd  yO!&-ԍ FederalState Board on Universal Service, Report and Order, CC Docket No. 9645, FCC 97157, 12 FCC  {O&-Rcd 8776 (rel. May 8, 1997). The Commission released an erratum correcting the Universal Service Order on June 4, 1997.  In revising these rules, the Commission sought generally to make Lifeline"d. 0*((PP" and Link Up available to lowincome consumers in every state and territory in the nation. The revised rules specify that states that provide Lifeline support shall establish consumer  X-qualification criteria that is based solely on income or on factors directly related to income.I yOK-ԍ 47 C.F.R.  54.409(a).I To qualify to receive federal Lifeline support in states that do not provide state Lifeline  X-support, a consumer must certify that he or she satisfies the federal default criteria, i.e., participates in one of the following programs: Medicaid; food stamps; Supplemental Security  Xx-Income; federal public housing assistance; or LowIncome Home Energy Assistance Program.CxX yO -ԍ 47 C.F.R.  54.409(b).C The revised rules also provide for three forms of federal Lifeline support: (1) $3.50 per qualifying lowincome consumer; (2) an additional $1.75 if the state commission approves a reduction of $1.75 in the intrastate rate paid by Lifeline consumers; and (3) additional support, subject to a $7.00 ceiling on the total amount of federal Lifeline support, if the state provides intrastate Lifeline support to customers based solely on income or factors directly  X -related to income.  yO-ԍ 47 C.F.R.  54.403. The third form of federal Lifeline support comes in an amount equal to onehalf the amount of any state Lifeline support will be made available to the carrier providing Lifeline service to a qualifying lowincome consumer if the state approves an additional reduction in the amount paid by that consumer equal to the state support multiplied by 1.5. The federal Lifeline support amount shall not exceed $7.00 per qualifying lowincome consumer.  X -x3. ` ` In its waiver request, the Minnesota Commission explained that Minnesota state law required that the consumer qualification criteria for its state Lifeline program, called the Telephone Assistance Program (TAP), must be based on both income and age or disability  X{-and thus did not qualify as a Lifeline program under federal rules.H{ yO-ԍ Minnesota Waiver Request at 1.H The Minnesota Commission stated that the Minnesota legislature would begin its 1998 legislative session in February, and any changes in legislation that bring TAP's consumer qualification criteria into  X6-compliance with Commission rules likely would not become effective until August 1, 1998.H 6(  yO-ԍ Minnesota Waiver Request at 2.H  X-In our Lifeline Waiver Order, we found that good cause existed to waive our rule until August 1, 1998 so that consumers in Minnesota who were eligible for lowincome assistance at that time continued to benefit from federal Lifeline support and did not experience temporary  X-disruption in their local rates between January and August.\   {OE#-ԍ See Lifeline Waiver Order at para. 12.\ "J 0*''PP"Ԍ X-x4. ` ` The Minnesota Commission has informed the Commission that the consumer  X-qualification criteria for TAP has not been brought into compliance with section 54.409(a). " yOb-ԍ Letter from Edward A. Garvey, Minnesota Public Utilities Commission, and Jim Alan, Minnesota  {O*-Department of Public Service, to William E. Kennard, FCC, dated July 17, 1998 (July 17 letter). (Because the July 17 letter did not contain a docket number, the letter was resubmitted on July 29, 1998 with the appropriate docket number.)   X-The Minnesota Commission also reports in its July 17 letter, however, that, pursuant to authority granted to it by state law, it has adopted the federal default consumer qualification  X-criteria.:  {O -ԍ Id. at 2. : The Minnesota Commission maintains, therefore, that consumers in Minnesota who meet the federal default criteria should be eligible to receive the baseline level of federal  Xv-Lifeline support, i.e., $5.25.9 vD {Ok -ԍ Id. at 3.9 The Minnesota Commission asserts that consumers who satisfy both the federal default criteria and TAP's limited eligibility criteria should be eligible to  XJ-receive $5.25 in federal support,9J {O-ԍ Id. at 3.9 but that consumers participating in TAP will no longer receive the additional $1.75 in federal support that is available when a state provides funds to  X -customers based solely on income or factors directly related to income.9 h  {O5-ԍ Id. at 3.9 x  X -x5. ` ` We concur with the Minnesota Commission's assertion. We find that, in adopting the federal default consumer qualification criteria, the Minnesota Commission has  X -complied with our rules in section 54.409(a).iZ  yOk-ԍ In an Order released on March 2, 1998, the Bureau reached the same conclusion with respect to the status  {O3-of Arizona's Lifeline consumer qualification criteria. See FederalState Joint Board on Universal Service, Order, CC Docket No. 9645, DA 98113 (Com. Car. Bur. rel. March 2, 1998).i We also find that it would be unfair to consumers in Minnesota who meet the federal default criteria to deny the $5.25 in federal baseline support that is available to similarlysituated consumers in states that do not provide any Lifeline support. Thus, we conclude that consumers in Minnesota who satisfy the federal default consumer qualification criteria will be eligible to receive $5.25 in federal Lifeline support per qualifying lowincome consumer. Minnesota remains free, of course, to continue  X6-to provide state support to the more limited class of consumers eligible for TAP (i.e., lowincome consumers who also meet age or disability criteria). Because TAP does not comply with section 54.409(a) of our rules, however, participants in that program will not be eligible to receive the additional $1.75 in federal support that is available to states that comply with section 54.403(a) of the Commission's rules. We further conclude that, because the waiver expired August 1, 1998, only the federal Lifeline support amount of $5.25 per eligible consumer per month should be provided as of August 1, 1998."0*''PP"Ԍ X-)lM X-q#X\  P6G;ɒP# Federal Communications Commission `(#DA 981709  yxdddy )x6.` ` It is THEREFORE ORDERED, pursuant to sections 4(i), 214, and 254 of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 214, and 254 and sections 0.91, 0.291, 1.3, and 54.409 of the Commission's rules, 47 C.F.R.  0.91, 0.291, 1.3, and 54.409 that consumers in Minnesota who satisfy the federal default Lifeline consumer  X-qualification criteria may receive the baseline level of federal Lifeline support (i.e., $5.25 per month). x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `   x` ` hhKathryn C. Brown x` ` hhChief, Common Carrier Bureau