1.1                          A bill for an act 
  1.2             relating to telecommunications; amending the state 
  1.3             telephone assistance program to match federal 
  1.4             requirements; modifying TAP eligibility and enrollment 
  1.5             provisions; requiring the department of human services 
  1.6             to automatically enroll eligible persons based on 
  1.7             information in state information systems; regulating 
  1.8             the TAP surcharge; requiring public utilities 
  1.9             commission to develop and implement state universal 
  1.10            service fund by January 1, 2002; changing authorized 
  1.11            expenditures for the telephone assistance fund; 
  1.12            requiring funding study and report; amending Minnesota 
  1.13            Statutes 1996, sections 237.49; 237.69, subdivisions 
  1.14            4, 5, and by adding a subdivision; 237.70, 
  1.15            subdivisions 3, 6, and by adding a subdivision; and 
  1.16            237.701, subdivision 1; Minnesota Statutes 1997 
  1.17            Supplement, section 237.70, subdivisions 4a and 7; 
  1.18            proposing coding for new law in Minnesota Statutes, 
  1.19            chapter 237; repealing Minnesota Statutes 1996, 
  1.20            section 237.69, subdivision 9. 
  1.21  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.22     Section 1.  Minnesota Statutes 1996, section 237.49, is 
  1.23  amended to read: 
  1.24     237.49 [COMBINED LOCAL ACCESS SURCHARGE.] 
  1.25     Each local telephone company entity required to collect 
  1.26  surcharges under sections 237.52, subdivision 3; 237.70, 
  1.27  subdivision 6; and 403.11, subdivision 1, paragraph (c), shall 
  1.28  collect from each subscriber an amount per telephone access line 
  1.29  representing the total of the surcharges required under sections 
  1.30  237.52, 237.70, and 403.11.  Amounts collected must be remitted 
  1.31  to the department of administration in the manner prescribed in 
  1.32  section 403.11.  The department of administration shall divide 
  1.33  the amounts received proportional to the individual surcharges 
  2.1   and deposit them in the appropriate accounts.  A company or the 
  2.2   billing agent for a company shall list the surcharges as one 
  2.3   amount on a billing statement sent to a subscriber. 
  2.4      Sec. 2.  Minnesota Statutes 1996, section 237.69, 
  2.5   subdivision 4, is amended to read: 
  2.6      Subd. 4.  [TELEPHONE COMPANY.] "Telephone company" has the 
  2.7   meanings given it in section 237.01, subdivisions 2 and 3, that 
  2.8   provides and includes any entity certified to provide local 
  2.9   exchange telephone service under section 237.16, and any other 
  2.10  provider of local exchange telephone service designated by the 
  2.11  commission as an eligible telecommunications carrier under 
  2.12  United States Code, title 47, section 214, subsection (e). 
  2.13     Sec. 3.  Minnesota Statutes 1996, section 237.69, 
  2.14  subdivision 5, is amended to read: 
  2.15     Subd. 5.  [ACCESS LINE.] "Access line" means telephone 
  2.16  company-owned facilities furnished to permit switched access to 
  2.17  the telecommunications network that extend from a central office 
  2.18  to the demarcation point on the property where the subscriber is 
  2.19  served.  The term "Access line" includes access lines provided 
  2.20  to residential and business subscribers, and includes centrex 
  2.21  access lines on a trunk-equivalent basis, but.  "Access lines" 
  2.22  also means cellular and other nonwire access services or nonwire 
  2.23  access line equivalents.  "Access line" does not include private 
  2.24  nonswitched or wide area telephone service access lines or 
  2.25  paging telecommunications services. 
  2.26     Sec. 4.  Minnesota Statutes 1996, section 237.69, is 
  2.27  amended by adding a subdivision to read: 
  2.28     Subd. 11.  [STATE AUTOMATED INFORMATION SYSTEMS.] "State 
  2.29  automated information systems" means information systems 
  2.30  operated and maintained by the departments of human services; 
  2.31  children, families, and learning; and revenue for the purpose of 
  2.32  providing public assistance. 
  2.33     Sec. 5.  Minnesota Statutes 1996, section 237.70, 
  2.34  subdivision 3, is amended to read: 
  2.35     Subd. 3.  [FEDERAL MATCHING PLAN.] The telephone assistance 
  2.36  plan must contain adequate provisions to enable telephone 
  3.1   companies to qualify for waiver of the federal interstate access 
  3.2   charge to receive federal support under the federal Lifeline 
  3.3   Program, Code of Federal Regulations, title 47, section 54.407, 
  3.4   and to enable eligible subscribers to take advantage of the 
  3.5   federal matching plan.  
  3.6      Sec. 6.  Minnesota Statutes 1997 Supplement, section 
  3.7   237.70, subdivision 4a, is amended to read: 
  3.8      Subd. 4a.  [HOUSEHOLDS ELIGIBLE FOR CREDITS.] (a) The 
  3.9   telephone assistance plan must provide telephone assistance 
  3.10  credit for a residential household in Minnesota that meets each 
  3.11  of the following criteria: 
  3.12     (1) that has a household member who: 
  3.13     (i) subscribes to local exchange service; and 
  3.14     (ii) is either disabled or 65 years of age or older; 
  3.15     (2) whose household income is 150: 
  3.16     (i) 100 percent or less of federal poverty guidelines for 
  3.17  single-person households and, until June 30, 1999, all other 
  3.18  households; or is currently eligible for: 
  3.19     (i) aid to families with dependent children or Minnesota 
  3.20  family investment program-statewide; 
  3.21     (ii) medical assistance; 
  3.22     (iii) general assistance; 
  3.23     (iv) Minnesota supplemental aid; 
  3.24     (v) food stamps; 
  3.25     (vi) refugee cash assistance or refugee medical assistance; 
  3.26     (vii) energy assistance; or 
  3.27     (viii) supplemental security income as of July 1, 1999, 125 
  3.28  percent or less of federal poverty guidelines for households 
  3.29  with multiple persons; and 
  3.30     (3) who has been certified as eligible for telephone 
  3.31  assistance plan credits. 
  3.32     (b) A residential household in Minnesota that participated 
  3.33  in the telephone assistance plan during the service provider's 
  3.34  billing cycle immediately prior to August 1, 1998, is entitled 
  3.35  to receive continued telephone assistance credits, regardless of 
  3.36  whether the household meets the criteria in paragraph (a), 
  4.1   provided the residential household continues to meet the income 
  4.2   criteria required for eligibility prior to August 1, 1998. 
  4.3      Sec. 7.  Minnesota Statutes 1996, section 237.70, 
  4.4   subdivision 6, is amended to read: 
  4.5      Subd. 6.  [FUNDING.] (a) The commission shall provide for 
  4.6   the funding of the telephone assistance plan by assessing a 
  4.7   uniform recurring monthly surcharge, not to exceed ten cents per 
  4.8   access line, applicable to all classes and grades of access 
  4.9   lines provided by each telephone company and radio common 
  4.10  carrier in the state.  
  4.11     (b) The commission shall discontinue assessing this 
  4.12  surcharge the month following the adoption of the universal 
  4.13  service fund required under section 237.16, subdivision 9, that 
  4.14  continues the goals, purposes, and funding for the telephone 
  4.15  assistance plan; the implementation of funding for the universal 
  4.16  service fund; and the issuance of a formal determination by the 
  4.17  commission that the funding for the universal service fund is 
  4.18  sufficient to provide ongoing telephone assistance to eligible 
  4.19  households. 
  4.20     Sec. 8.  Minnesota Statutes 1997 Supplement, section 
  4.21  237.70, subdivision 7, is amended to read: 
  4.22     Subd. 7.  [ADMINISTRATION.] The telephone assistance plan 
  4.23  must be administered jointly by the commission, the department 
  4.24  of human services, and the telephone companies, and radio common 
  4.25  carriers in accordance with the following guidelines: 
  4.26     (a) The commission and the department of human services 
  4.27  shall develop an application enrollment form that must be 
  4.28  completed by the telephone service subscriber for the purpose of 
  4.29  certifying eligibility for telephone assistance plan credits to 
  4.30  the department of human services.  The application completed 
  4.31  enrollment form must contain the applicant's social security 
  4.32  number.  Applicants who refuse to provide a social security 
  4.33  number will be denied telephone assistance plan credits.  
  4.34  The application form must include provisions for the applicant 
  4.35  to show the name of the applicant's telephone company.  
  4.36  The application enrollment form must also advise the applicant 
  5.1   to submit the required proof of age or disability, and income 
  5.2   and must provide examples of acceptable proof a copy or copies 
  5.3   of federal or state tax information for the previous year 
  5.4   demonstrating the applicant's total household income, or other 
  5.5   documentation of income deemed acceptable by the department of 
  5.6   human services, unless the applicant has been notified, under 
  5.7   subdivision 8, that information maintained in state automated 
  5.8   information systems demonstrates income eligibility for 
  5.9   assistance.  The application form must state that failure to 
  5.10  submit proof this documentation, if required, with the 
  5.11  application form will result in the applicant being found 
  5.12  ineligible.  Each telephone company shall annually mail a notice 
  5.13  of the availability of the telephone assistance plan to each 
  5.14  residential subscriber in a regular billing and shall mail the 
  5.15  application enrollment form to customers when requested.  
  5.16     The notice must state the following: 
  5.17     YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE 
  5.18  BILL IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND IF 
  5.19  YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS.  FOR MORE INFORMATION 
  5.20  OR AN APPLICATION ENROLLMENT FORM PLEASE CONTACT ......... 
  5.21     (b) The department of human services shall determine the 
  5.22  eligibility for telephone assistance plan credits at least 
  5.23  annually according to the criteria contained in subdivision 4a.  
  5.24     (c) An application The enrollment form may be made 
  5.25  submitted by the telephone service subscriber, the subscriber's 
  5.26  spouse, or a person authorized by the subscriber to act on the 
  5.27  subscriber's behalf.  On completing the application certifying 
  5.28  that the statutory criteria for eligibility are satisfied 
  5.29  enrollment form, the applicant must return the application form 
  5.30  to an office of the department of human services specially 
  5.31  designated to process telephone assistance plan applications 
  5.32  enrollments.  On receiving a completed application enrollment 
  5.33  form from an the applicant satisfying the requirements of this 
  5.34  subdivision or subdivision 8, the department of human services 
  5.35  shall determine the applicant's eligibility or ineligibility 
  5.36  within 120 days.  If the department fails to do so, it shall 
  6.1   within three working days provide written notice to the 
  6.2   applicant's telephone company that the company shall provide 
  6.3   telephone assistance plan credits against monthly charges in the 
  6.4   earliest possible month following receipt of the written 
  6.5   notice.  The applicant must receive telephone assistance plan 
  6.6   credits until the earliest possible month following the 
  6.7   company's receipt of notice from the department that the 
  6.8   applicant is ineligible enroll the applicant in the telephone 
  6.9   assistance plan. 
  6.10     If the applicant does not demonstrate eligibility for the 
  6.11  telephone assistance plan, the department of human services 
  6.12  determines shall determine that an the applicant is not eligible 
  6.13  to receive telephone assistance plan credits, it and shall 
  6.14  notify the applicant within ten working days of that 
  6.15  determination. 
  6.16     Within ten working days of determining that an applicant is 
  6.17  eligible to receive telephone assistance plan credits, the 
  6.18  department of human services shall provide written notification 
  6.19  to the telephone company that serves the applicant.  The notice 
  6.20  must include the applicant's name, address, and telephone number.
  6.21     Each telephone company shall provide telephone assistance 
  6.22  plan credits against monthly charges in the earliest possible 
  6.23  month following receipt of notice from the department of human 
  6.24  services. 
  6.25     By December 31 April 15 of each year, each enrollee shall 
  6.26  provide the department of human services with updated income 
  6.27  documentation, unless the department can obtain the enrollee's 
  6.28  income information from state automated information systems.  
  6.29  The department of human services shall review each enrollee's 
  6.30  updated documentation and shall redetermine eligibility of each 
  6.31  person receiving telephone assistance plan credits, as required 
  6.32  in paragraph (b).  The department of human services shall submit 
  6.33  an annual report to the commission by January 15 of each year 
  6.34  showing that the department has determined the eligibility for 
  6.35  telephone assistance plan credits of each person receiving the 
  6.36  credits or explaining why the determination has not been made 
  7.1   and showing how and when the determination will be 
  7.2   completed.  Any enrollee for whom current income information 
  7.3   cannot be obtained from state automated information systems who 
  7.4   fails to provide regular updates of income documentation as 
  7.5   required under this paragraph may be deemed ineligible for 
  7.6   continued assistance. 
  7.7      If the department of human services determines that a 
  7.8   current recipient of telephone assistance plan credits an 
  7.9   enrollee's updated income information demonstrates that the 
  7.10  enrollee is not eligible to receive the credits, it the 
  7.11  department of human services shall notify, in writing, the 
  7.12  recipient within ten working days and the telephone company 
  7.13  serving the recipient within 20 working days of the 
  7.14  determination.  The notice must include the recipient's name, 
  7.15  address, and telephone number. 
  7.16     Each telephone company shall remove telephone assistance 
  7.17  plan credits against monthly charges in the earliest possible 
  7.18  month following receipt of notice from the department of human 
  7.19  services. 
  7.20     Each telephone company that disconnects a subscriber 
  7.21  receiving the telephone assistance plan credit shall report the 
  7.22  disconnection to the department of human services.  The reports 
  7.23  must be submitted monthly, identifying the subscribers 
  7.24  disconnected.  Telephone companies that do not disconnect a 
  7.25  subscriber receiving the telephone assistance plan credit are 
  7.26  not required to report.  
  7.27     If the telephone assistance plan credit is not itemized on 
  7.28  the subscriber's monthly charges bill for local telephone 
  7.29  service, the telephone company must notify the subscriber of the 
  7.30  approval for the telephone assistance plan credit. 
  7.31     (d) The commission shall serve as the coordinator of the 
  7.32  telephone assistance plan and be reimbursed for its 
  7.33  administrative expenses from the surcharge revenue pool.  As the 
  7.34  coordinator, the commission shall: 
  7.35     (1) establish a uniform statewide surcharge in accordance 
  7.36  with subdivision 6; 
  8.1      (2) establish a uniform statewide level of telephone 
  8.2   assistance plan credit that each telephone company shall extend 
  8.3   to each eligible household in its service area first 
  8.4   participating in the telephone assistance plan on or after 
  8.5   August 1, 1998; 
  8.6      (3) establish a uniform statewide level of telephone 
  8.7   assistance plan credit that each telephone company shall extend 
  8.8   to each eligible household in its service area that was also a 
  8.9   participant in the telephone assistance plan during the service 
  8.10  provider's billing cycle immediately prior to August 1, 1998.  
  8.11  The credit amount under this clause shall not be lower than the 
  8.12  statewide level of telephone assistance plan credit the 
  8.13  residential household was receiving during the billing cycle 
  8.14  immediately prior to August 1, 1998, unless a lower credit 
  8.15  amount is required in a final order of the Federal 
  8.16  Communications Commission; 
  8.17     (3) (4) require each telephone company and radio common 
  8.18  carrier to account to the commission on a periodic basis for 
  8.19  surcharge revenues collected by the company or carrier, expenses 
  8.20  incurred by the company, not to include expenses of collecting 
  8.21  surcharges, and credits extended by the company under the 
  8.22  telephone assistance plan; 
  8.23     (4) (5) require each telephone company and radio common 
  8.24  carrier to remit surcharge revenues to the department of 
  8.25  administration for deposit in the fund; and 
  8.26     (5) (6) remit to each telephone company from the surcharge 
  8.27  revenue pool the amount necessary to compensate the company for 
  8.28  expenses, not including expenses of collecting the surcharges, 
  8.29  and telephone assistance plan credits.  When it appears that the 
  8.30  revenue generated by the maximum surcharge permitted under 
  8.31  subdivision 6 will be inadequate to fund any particular 
  8.32  established level of telephone assistance plan credits, the 
  8.33  commission shall reduce the credits to a level that can be 
  8.34  adequately funded by the maximum surcharge.  In making 
  8.35  reductions pursuant to this clause, the commission shall not 
  8.36  reduce the level of credit established pursuant to clause (3) 
  9.1   below the minimum level required by that clause until no further 
  9.2   reductions can be made to the level of credit established 
  9.3   pursuant to clause (2).  This requirement does not apply if a 
  9.4   final order of the Federal Communications Commission requires 
  9.5   the level of credit established pursuant to clause (3) to be 
  9.6   identical to the level of credit established pursuant to clause 
  9.7   (2).  Similarly, the commission may increase the level of the 
  9.8   telephone assistance plan credit that is available or reduce the 
  9.9   surcharge to a level and for a period of time that will prevent 
  9.10  an unreasonable overcollection of surcharge revenues. 
  9.11     (e) Each telephone company and radio common carrier shall 
  9.12  maintain adequate records of surcharge revenues, expenses, and 
  9.13  credits related to the telephone assistance plan and shall, as 
  9.14  part of its annual report or separately, provide the commission 
  9.15  and the department of public service with a financial report of 
  9.16  its experience under the telephone assistance plan for the 
  9.17  previous year.  That report must also be adequate to satisfy the 
  9.18  reporting requirements of the federal matching plan.  
  9.19     (f) The department of public service shall investigate 
  9.20  complaints against telephone companies with regard to the 
  9.21  telephone assistance plan and shall report the results of its 
  9.22  investigation to the commission. 
  9.23     Sec. 9.  Minnesota Statutes 1996, section 237.70, is 
  9.24  amended by adding a subdivision to read: 
  9.25     Subd. 8.  [NOTIFICATION OF ELIGIBILITY.] (a) The department 
  9.26  of human services shall notify households for whom information 
  9.27  maintained in state automated information systems demonstrates 
  9.28  income eligibility for telephone assistance that the household 
  9.29  may qualify for that assistance.  The notification form shall 
  9.30  include a description of the additional information needed by 
  9.31  the department to enroll the household in the telephone 
  9.32  assistance plan.  In order to be enrolled in the telephone 
  9.33  assistance plan, the telephone subscriber must return the 
  9.34  completed form to the department with the necessary 
  9.35  information.  Upon receipt of a completed form demonstrating 
  9.36  eligibility for telephone assistance, the department shall 
 10.1   enroll the household in the plan, and shall at least annually 
 10.2   review the household's income information maintained in state 
 10.3   automated information systems to determine the household's 
 10.4   continued eligibility for telephone assistance. 
 10.5      (b) The department of human services shall notify 
 10.6   households under paragraph (a) on a random basis according to 
 10.7   the following schedule: 
 10.8      (1) by July 1, 1999, one-third of the total number of 
 10.9   persons eligible for notification under this subdivision as of 
 10.10  July 1, 1998; 
 10.11     (2) by July 1, 2000, two-thirds of that total; and 
 10.12     (3) by July 1, 2001, and on a continuing basis thereafter, 
 10.13  all persons eligible for notification.  
 10.14     (c) The departments of human services; children, families, 
 10.15  and learning; and revenue are authorized to share income 
 10.16  information contained in state automated information systems for 
 10.17  purposes consistent with this section. 
 10.18     (d) Participants who were enrolled in the telephone 
 10.19  assistance plan as of June 30, 1998, shall be counted toward the 
 10.20  number of persons to be notified under paragraph (b), clause (1).
 10.21     Sec. 10.  Minnesota Statutes 1996, section 237.701, 
 10.22  subdivision 1, is amended to read: 
 10.23     Subdivision 1.  [FUND CREATED; AUTHORIZED EXPENDITURES.] 
 10.24  The telephone assistance fund is created as a separate account 
 10.25  in the state treasury to consist of amounts received by the 
 10.26  department of administration representing the surcharge 
 10.27  authorized by section 237.70, subdivision 6, and amounts earned 
 10.28  on the fund assets.  Money in the fund may be used only for: 
 10.29     (1) reimbursement to telephone companies for expenses and 
 10.30  credits allowed in section 237.70, subdivision 7, paragraph (d), 
 10.31  clause (5); 
 10.32     (2) reimbursement of the administrative expenses of the 
 10.33  department of human services to implement sections 237.69 to 
 10.34  237.71, not to exceed $314,000 annually $500,000 in fiscal year 
 10.35  1998 and $500,000 in fiscal year 1999; 
 10.36     (3) reimbursement of the administrative expenses of the 
 11.1   commission not to exceed $25,000 annually; and 
 11.2      (4) reimbursement of the statewide indirect cost of the 
 11.3   commission. 
 11.4      Sec. 11.  [237.702] [OTHER TELEPHONE ASSISTANCE PLAN 
 11.5   PROVISIONS.] 
 11.6      Subdivision 1.  [OUTREACH.] The department of human 
 11.7   services, in consultation with the department of public service 
 11.8   and the public utilities commission, shall develop, implement, 
 11.9   and maintain an outreach and marketing program to increase 
 11.10  awareness of the availability of telephone assistance and to 
 11.11  identify potentially eligible participants who do not have 
 11.12  telephone service. 
 11.13     Subd. 2.  [INCORPORATION INTO STATE UNIVERSAL SERVICE 
 11.14  FUND.] The public utilities commission shall develop and 
 11.15  implement the state universal service fund required under 
 11.16  section 237.16, subdivision 9, by January 1, 2002.  The 
 11.17  commission shall incorporate the purpose, goals, and levels of 
 11.18  funding of the telephone assistance plan into the purpose, 
 11.19  goals, and funding of that universal service fund. 
 11.20     Sec. 12.  [STUDY OF POSSIBLE FUNDING ALTERNATIVES.] 
 11.21     The department of public service shall review and analyze 
 11.22  possible alternative mechanisms of funding for the telephone 
 11.23  assistance plan established and funded pursuant to Minnesota 
 11.24  Statutes, section 237.70, including, but not limited to, the 
 11.25  propriety of, and mechanisms for, ensuring assistance to 
 11.26  households participating in the telephone assistance plan prior 
 11.27  to August 1, 1998, at levels at least equal to levels provided 
 11.28  prior to that date.  As part of its analysis of alternatives, 
 11.29  the department shall analyze how each alternative could provide 
 11.30  the level of funding necessary to preserve participation by 
 11.31  eligible households in the telephone assistance plan.  The 
 11.32  department shall report its initial findings and recommendations 
 11.33  to the legislature by January 15, 1999, and its final findings 
 11.34  and recommendations by January 15, 2000. 
 11.35     Sec. 13.  [SAVINGS PROVISION.] 
 11.36     In the event that the federal support for telephone 
 12.1   assistance is reduced or eliminated due to a finding by a court 
 12.2   or federal agency that any portion of this act is inconsistent 
 12.3   with federal law, regulation or order, the public utilities 
 12.4   commission shall, until July 1, 1999, administer the telephone 
 12.5   assistance plan under Minnesota Statutes, sections 237.69 to 
 12.6   237.711, to conform to federal requirements and to provide 
 12.7   telephone assistance credit for a residential household in 
 12.8   Minnesota: 
 12.9      (1) that has a household member who subscribes to local 
 12.10  exchange service; 
 12.11     (2) whose household income is: 
 12.12     (i) 100 percent or less of federal poverty guidelines for 
 12.13  single-person households and, until June 30, 1999, all other 
 12.14  households; or 
 12.15     (ii) as of July 1, 1999, 125 percent or less of federal 
 12.16  poverty guidelines for households with multiple persons; and 
 12.17     (3) who has been certified as eligible for telephone 
 12.18  assistance plan credits. 
 12.19     Sec. 14.  [TAP SURCHARGE.] 
 12.20     Notwithstanding Minnesota Statutes, section 237.70, 
 12.21  subdivision 6, the uniform recurring monthly surcharge imposed 
 12.22  under that subdivision shall be six cents per access line until 
 12.23  June 30, 1999. 
 12.24     Sec. 15.  [REPEALER.] 
 12.25     Minnesota Statutes 1996, section 237.69, subdivision 9, is 
 12.26  repealed. 
 12.27     Sec. 16.  [EFFECTIVE DATE.] 
 12.28     Section 3 is effective July 1, 1999.  Until the effective 
 12.29  date of section 3, the public utilities commission shall not: 
 12.30     (1) impose the surcharge under Minnesota Statutes 1996, 
 12.31  section 237.70, subdivision 6, on cellular and other nonwire 
 12.32  access services or nonwire access line equivalents; or 
 12.33     (2) require radio common carriers, as defined in Minnesota 
 12.34  Statutes 1996, section 237.01, subdivision 4, to collect and 
 12.35  remit the surcharge under Minnesota Statutes 1996, section 
 12.36  237.70, subdivision 7.