HF 1115

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to public utilities; making changes to the 
  1.3             telephone assistance plan; amending Minnesota Statutes 
  1.4             2002, sections 237.70, subdivisions 2, 3, 4a, 5, 6, 7; 
  1.5             237.701, subdivision 1. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 2002, section 237.70, 
  1.8   subdivision 2, is amended to read: 
  1.9      Subd. 2.  [SCOPE.] The telephone assistance plan must be 
  1.10  statewide and apply to telephone companies local service 
  1.11  providers that provide local exchange service in Minnesota.  
  1.12     Sec. 2.  Minnesota Statutes 2002, section 237.70, 
  1.13  subdivision 3, is amended to read: 
  1.14     Subd. 3.  [FEDERAL MATCHING PLAN.] The telephone assistance 
  1.15  plan must contain adequate provisions to enable telephone 
  1.16  companies local service providers to qualify for waiver of the 
  1.17  federal interstate access charge and to enable eligible 
  1.18  subscribers to take advantage of the federal matching plan.  
  1.19     Sec. 3.  Minnesota Statutes 2002, section 237.70, 
  1.20  subdivision 4a, is amended to read: 
  1.21     Subd. 4a.  [HOUSEHOLD ELIGIBLE FOR CREDIT.] The telephone 
  1.22  assistance plan must provide telephone assistance credit for a 
  1.23  residential household in Minnesota that meets each of the 
  1.24  following criteria: 
  1.25     (1) has a household member who: 
  2.1      (i) subscribes to local exchange service; and 
  2.2      (ii) is either disabled or 65 years of age or older; 
  2.3      (2) whose household income is 150 percent or less of 
  2.4   federal poverty guidelines or is currently eligible for: 
  2.5      (i) the Minnesota family investment program; 
  2.6      (ii) medical assistance; 
  2.7      (iii) general assistance; 
  2.8      (iv) Minnesota supplemental aid; 
  2.9      (v) food stamps; 
  2.10     (vi) refugee cash assistance or refugee medical assistance; 
  2.11     (vii) energy assistance; or 
  2.12     (viii) supplemental security income; and 
  2.13     (3) who has been certified as eligible for telephone 
  2.14  assistance plan credits is eligible for the federal Lifeline 
  2.15  telephone service discount. 
  2.16     Sec. 4.  Minnesota Statutes 2002, section 237.70, 
  2.17  subdivision 5, is amended to read: 
  2.18     Subd. 5.  [NATURE AND EXTENT OF CREDITS.] The telephone 
  2.19  assistance plan may provide for telephone assistance credits to 
  2.20  eligible households up to the amounts available under the 
  2.21  federal matching plan.  However, the credits available under the 
  2.22  telephone assistance plan may not exceed: 
  2.23     (1) more than 50 percent of the local exchange rate charged 
  2.24  for the local exchange service provided to the household by that 
  2.25  household's telephone company local service provider; and 
  2.26     (2) the level of credits that can actually be funded in 
  2.27  accordance with the limitations contained in subdivision 6. 
  2.28     Sec. 5.  Minnesota Statutes 2002, section 237.70, 
  2.29  subdivision 6, is amended to read: 
  2.30     Subd. 6.  [FUNDING.] The commission shall provide for the 
  2.31  funding of the telephone assistance plan by assessing a uniform 
  2.32  recurring monthly surcharge, not to exceed ten cents per access 
  2.33  line, applicable to all classes and grades of access lines 
  2.34  provided by each telephone company local service provider in the 
  2.35  state.  
  2.36     Sec. 6.  Minnesota Statutes 2002, section 237.70, 
  3.1   subdivision 7, is amended to read: 
  3.2      Subd. 7.  [ADMINISTRATION.] The telephone assistance plan 
  3.3   must be administered jointly by the commission, the department 
  3.4   of human services commerce, and the telephone companies local 
  3.5   service providers in accordance with the following guidelines: 
  3.6      (a) The commission and the department of human 
  3.7   services commerce shall develop an application form that must be 
  3.8   completed by the subscriber for the purpose of certifying 
  3.9   eligibility for telephone assistance plan credits to 
  3.10  the department of human services local service provider.  The 
  3.11  application must contain the applicant's social security 
  3.12  number.  Applicants who refuse to provide a social security 
  3.13  number will be denied telephone assistance plan credits.  The 
  3.14  application form must also include provisions for the applicant 
  3.15  to show the name of the applicant's telephone company.  The 
  3.16  application must also advise the applicant to submit the 
  3.17  required proof of age or disability, and income and must provide 
  3.18  examples of acceptable proof.  The application must state that 
  3.19  failure to submit proof with the application will result in the 
  3.20  applicant being found ineligible a statement that the applicant 
  3.21  household is currently eligible for one of the programs that 
  3.22  confers eligibility for the federal Lifeline Program.  The 
  3.23  application must be signed by the applicant, certifying, under 
  3.24  penalty of perjury, that the information provided by the 
  3.25  applicant is true.  Each telephone company local service 
  3.26  provider shall annually mail a notice of the availability of the 
  3.27  telephone assistance plan to each residential subscriber in a 
  3.28  regular billing and shall mail the application form to customers 
  3.29  when requested.  
  3.30     The notice must state the following: 
  3.31     YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE 
  3.32  BILL IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND IF 
  3.33  YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS RECEIVE BENEFITS FROM 
  3.34  CERTAIN LOW-INCOME ASSISTANCE PROGRAMS.  FOR MORE INFORMATION OR 
  3.35  AN APPLICATION FORM PLEASE CONTACT ......... 
  3.36     (b) The department of human services shall determine the 
  4.1   eligibility for telephone assistance plan credits at least 
  4.2   annually according to the criteria contained in subdivision 4a.  
  4.3      (c) An application may be made by the subscriber, the 
  4.4   subscriber's spouse, or a person authorized by the subscriber to 
  4.5   act on the subscriber's behalf.  On completing the application 
  4.6   certifying that the statutory criteria for eligibility are 
  4.7   satisfied, the applicant must return the application to an 
  4.8   office of the department of human services specially designated 
  4.9   to process telephone assistance plan applications the 
  4.10  subscriber's local service provider.  On receiving a completed 
  4.11  application from an applicant, the department of human services 
  4.12  shall determine the applicant's eligibility or ineligibility 
  4.13  within 120 days.  If the department fails to do so, it shall 
  4.14  within three working days provide written notice to the 
  4.15  applicant's telephone company that the company subscriber's 
  4.16  local service provider shall provide telephone assistance plan 
  4.17  credits against monthly charges in the earliest possible month 
  4.18  following receipt of the written notice application.  The 
  4.19  applicant must receive telephone assistance plan credits until 
  4.20  the earliest possible month following the company's service 
  4.21  provider's receipt of notice from the department information 
  4.22  that the applicant is ineligible. 
  4.23     If the department of human services determines that an 
  4.24  applicant is not eligible to receive telephone assistance plan 
  4.25  credits, it shall notify the applicant within ten working days 
  4.26  of that determination. 
  4.27     Within ten working days of determining that an applicant is 
  4.28  eligible to receive telephone assistance plan credits, the 
  4.29  department of human services shall provide written notification 
  4.30  to the telephone company that serves the applicant.  The notice 
  4.31  must include the applicant's name, address, and telephone number.
  4.32     Each telephone company shall provide telephone assistance 
  4.33  plan credits against monthly charges in the earliest possible 
  4.34  month following receipt of notice from the department of human 
  4.35  services. 
  4.36     By December 31 of each year, the department of human 
  5.1   services shall redetermine eligibility of each person receiving 
  5.2   telephone assistance plan credits, as required in paragraph (b). 
  5.3   The department of human services shall submit an annual report 
  5.4   to the commission by January 15 of each year showing that the 
  5.5   department has determined the eligibility for telephone 
  5.6   assistance plan credits of each person receiving the credits or 
  5.7   explaining why the determination has not been made and showing 
  5.8   how and when the determination will be completed.  
  5.9      If the department of human services determines that a 
  5.10  current recipient of telephone assistance plan credits is not 
  5.11  eligible to receive the credits, it shall notify, in writing, 
  5.12  the recipient within ten working days and the telephone company 
  5.13  serving the recipient within 20 working days of the 
  5.14  determination.  The notice must include the recipient's name, 
  5.15  address, and telephone number. 
  5.16     Each telephone company shall remove telephone assistance 
  5.17  plan credits against monthly charges in the earliest possible 
  5.18  month following receipt of notice from the department of human 
  5.19  services. 
  5.20     Each telephone company that disconnects a subscriber 
  5.21  receiving the telephone assistance plan credit shall report the 
  5.22  disconnection to the department of human services.  The reports 
  5.23  must be submitted monthly, identifying the subscribers 
  5.24  disconnected.  Telephone companies that do not disconnect a 
  5.25  subscriber receiving the telephone assistance plan credit are 
  5.26  not required to report.  
  5.27     If the telephone assistance plan credit is not itemized on 
  5.28  the subscriber's monthly charges bill for local telephone 
  5.29  service, the telephone company local service provider must 
  5.30  notify the subscriber of the approval for the telephone 
  5.31  assistance plan credit. 
  5.32     (d) (c) The commission shall serve as the coordinator of 
  5.33  the telephone assistance plan and be reimbursed for its 
  5.34  administrative expenses from the surcharge revenue pool.  As the 
  5.35  coordinator, the commission shall: 
  5.36     (1) establish a uniform statewide surcharge in accordance 
  6.1   with subdivision 6; 
  6.2      (2) establish a uniform statewide level of telephone 
  6.3   assistance plan credit that each telephone company local service 
  6.4   provider shall extend to each eligible household in its service 
  6.5   area; 
  6.6      (3) require each telephone company local service provider 
  6.7   to account to the commission on a periodic basis for surcharge 
  6.8   revenues collected by the company provider, expenses incurred by 
  6.9   the company provider, not to include expenses of collecting 
  6.10  surcharges, and credits extended by the company provider under 
  6.11  the telephone assistance plan; 
  6.12     (4) require each telephone company local service provider 
  6.13  to remit surcharge revenues to the department of administration 
  6.14  for deposit in the fund; and 
  6.15     (5) remit to each telephone company local service provider 
  6.16  from the surcharge revenue pool the amount necessary to 
  6.17  compensate the company provider for expenses, not including 
  6.18  expenses of collecting the surcharges, and telephone assistance 
  6.19  plan credits.  When it appears that the revenue generated by the 
  6.20  maximum surcharge permitted under subdivision 6 will be 
  6.21  inadequate to fund any particular established level of telephone 
  6.22  assistance plan credits, the commission shall reduce the credits 
  6.23  to a level that can be adequately funded by the maximum 
  6.24  surcharge.  Similarly, the commission may increase the level of 
  6.25  the telephone assistance plan credit that is available or reduce 
  6.26  the surcharge to a level and for a period of time that will 
  6.27  prevent an unreasonable overcollection of surcharge revenues. 
  6.28     (e) (d) Each telephone company local service provider shall 
  6.29  maintain adequate records of surcharge revenues, expenses, and 
  6.30  credits related to the telephone assistance plan and shall, as 
  6.31  part of its annual report or separately, provide the commission 
  6.32  and the department of commerce with a financial report of its 
  6.33  experience under the telephone assistance plan for the previous 
  6.34  year.  That report must also be adequate to satisfy the 
  6.35  reporting requirements of the federal matching plan.  
  6.36     (f) (e) The department of commerce shall investigate 
  7.1   complaints against telephone companies local service providers 
  7.2   with regard to the telephone assistance plan and shall report 
  7.3   the results of its investigation to the commission.  
  7.4      Sec. 7.  Minnesota Statutes 2002, section 237.701, 
  7.5   subdivision 1, is amended to read: 
  7.6      Subdivision 1.  [FUND CREATED; AUTHORIZED EXPENDITURES.] 
  7.7   The telephone assistance fund is created as a separate account 
  7.8   in the state treasury to consist of amounts received by the 
  7.9   department of administration representing the surcharge 
  7.10  authorized by section 237.70, subdivision 6, and amounts earned 
  7.11  on the fund assets.  Money in the fund may be used only for: 
  7.12     (1) reimbursement to telephone companies local service 
  7.13  providers for expenses and credits allowed in section 237.70, 
  7.14  subdivision 7, paragraph (d) (c), clause (5); 
  7.15     (2) reimbursement of the administrative expenses of the 
  7.16  department of human services to implement sections 237.69 to 
  7.17  237.71, not to exceed $314,000 annually; 
  7.18     (3) reimbursement of the administrative expenses of the 
  7.19  commission not to exceed $25,000 annually; and 
  7.20     (4) (3) reimbursement of the statewide indirect cost of the 
  7.21  commission.