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; requiring the department of human 
  1.5             services to automatically enroll eligible persons 
  1.6             based on information in state information systems; 
  1.7             regulating the TAP surcharge; requiring public 
  1.8             utilities commission to develop and implement state 
  1.9             universal service fund by December 31, 2000; changing 
  1.10            authorized expenditures for the telephone assistance 
  1.11            fund; amending Minnesota Statutes 1996, sections 
  1.12            237.70, subdivision 6, and by adding a subdivision; 
  1.13            and 237.701, subdivision 1; Minnesota Statutes 1997 
  1.14            Supplement, section 237.70, subdivisions 4a and 7; 
  1.15            proposing coding for new law in Minnesota Statutes, 
  1.16            chapter 237; repealing Minnesota Statutes 1996, 
  1.17            section 237.69, subdivision 9. 
  1.18  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.19     Section 1.  Minnesota Statutes 1997 Supplement, section 
  1.20  237.70, subdivision 4a, is amended to read: 
  1.21     Subd. 4a.  [HOUSEHOLDS ELIGIBLE FOR CREDITS.] 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~~:~~ 
  1.26     ~~(i)~~ subscribes to local exchange service; ~~and~~ 
  1.27     ~~(ii) is either disabled or 65 years of age or older;~~ 
  1.28     (2) whose household income is 150 percent or less of 
  1.29  federal poverty guidelines ~~or is currently eligible for:~~ 
  1.30     ~~(i) aid to families with dependent children or Minnesota~~ 
  1.31  ~~family investment program-statewide;~~ 
  2.1      ~~(ii) medical assistance;~~ 
  2.2      ~~(iii) general assistance;~~ 
  2.3      ~~(iv) Minnesota supplemental aid;~~ 
  2.4      ~~(v) food stamps;~~ 
  2.5      ~~(vi) refugee cash assistance or refugee medical assistance;~~ 
  2.6      ~~(vii) energy assistance; or~~ 
  2.7      ~~(viii) supplemental security income~~; and 
  2.8      (3) who has been certified as eligible for telephone 
  2.9   assistance plan credits. 
  2.10     Sec. 2.  Minnesota Statutes 1996, section 237.70, 
  2.11  subdivision 6, is amended to read: 
  2.12     Subd. 6.  [FUNDING.] (a) The commission shall provide for 
  2.13  the funding of the telephone assistance plan by assessing a 
  2.14  uniform recurring monthly surcharge~~, not to exceed ten cents per~~ 
  2.15  ~~access line,~~ applicable to all classes and grades of access 
  2.16  lines provided by each telephone company in the state.  
  2.17  Notwithstanding section 237.49, the surcharge must appear as a 
  2.18  specific and separate charge on the customer's bill.  
  2.19     (b) The amount of the uniform recurring monthly surcharge 
  2.20  shall not exceed: 
  2.21     (1) ten cents per access line between July 1, 1998, and 
  2.22  June 30, 1999; 
  2.23     (2) 12 cents per access line between July 1, 1999, and June 
  2.24  30, 2001; and 
  2.25     (3) 16 cents per access line after June 30, 2001. 
  2.26     (c) The commission shall discontinue assessing this 
  2.27  surcharge the month following the adoption of the universal 
  2.28  service fund required under section 237.16, subdivision 9, that 
  2.29  continues the goals, purposes, and funding for the telephone 
  2.30  assistance plan; the implementation of funding for the universal 
  2.31  service fund; and the issuance of a formal determination by the 
  2.32  commission that the funding for the universal service fund is 
  2.33  sufficient to provide ongoing telephone assistance to eligible 
  2.34  individuals. 
  2.35     Sec. 3.  Minnesota Statutes 1997 Supplement, section 
  2.36  237.70, subdivision 7, is amended to read: 
  3.1      Subd. 7.  [ADMINISTRATION.] The telephone assistance plan 
  3.2   must be administered jointly by the commission, the department 
  3.3   of human services, and the telephone companies in accordance 
  3.4   with the following guidelines: 
  3.5      (a) For individuals that are not eligible for automatic 
  3.6   enrollment under subdivision 8, the commission and the 
  3.7   department of human services shall develop an ~~application~~ 
  3.8   enrollment form that must be completed by the telephone service 
  3.9   subscriber for the purpose of certifying eligibility for 
  3.10  telephone assistance plan credits to the department of human 
  3.11  services.  The ~~application~~ completed enrollment form must 
  3.12  contain the applicant's social security number.  Applicants who 
  3.13  refuse to provide a social security number will be denied 
  3.14  telephone assistance plan credits.  The ~~application~~ form must 
  3.15  include provisions for the applicant to show the name of the 
  3.16  applicant's telephone company.  The ~~application~~ enrollment form 
  3.17  must also advise the applicant to submit ~~the required proof of~~ 
  3.18  ~~age or disability, and income and must provide examples of~~ 
  3.19  ~~acceptable proof~~ a copy or copies of federal or state tax 
  3.20  information for the previous year demonstrating the applicant's 
  3.21  total household income, or other documentation of income deemed 
  3.22  acceptable by the department of human services.  The ~~application~~ 
  3.23  form must state that failure to submit ~~proof~~ this documentation 
  3.24  with the application will result in the applicant being found 
  3.25  ineligible.  Each telephone company shall annually mail a notice 
  3.26  of the availability of the telephone assistance plan to each 
  3.27  residential subscriber in a regular billing and shall mail the 
  3.28  application form to customers when requested.  
  3.29     The notice must state the following: 
  3.30     YOU MAY BE ELIGIBLE FOR ASSISTANCE IN PAYING YOUR TELEPHONE 
  3.31  BILL ~~IF YOU ARE 65 YEARS OF AGE OR OLDER OR ARE DISABLED AND~~ IF 
  3.32  YOU MEET CERTAIN HOUSEHOLD INCOME LIMITS.  FOR MORE INFORMATION 
  3.33  OR AN APPLICATION FORM PLEASE CONTACT ......... 
  3.34     (b) The department of human services shall determine the 
  3.35  eligibility for telephone assistance plan credits at least 
  3.36  annually according to the criteria contained in subdivision 4a.  
  4.1      (c) ~~An application~~ The enrollment form may be ~~made~~ 
  4.2   submitted by the telephone service subscriber, the subscriber's 
  4.3   spouse, or a person authorized by the subscriber to act on the 
  4.4   subscriber's behalf.  On completing the ~~application certifying~~ 
  4.5   ~~that the statutory criteria for eligibility are satisfied~~ 
  4.6   enrollment form, the applicant must return the ~~application~~ form 
  4.7   to an office of the department of human services specially 
  4.8   designated to process telephone assistance plan ~~applications~~ 
  4.9   enrollments.  On receiving a completed ~~application~~ enrollment 
  4.10  form and documentation demonstrating income eligibility from an 
  4.11  applicant, the department of human services shall ~~determine the~~ 
  4.12  ~~applicant's eligibility or ineligibility within 120 days. If the~~ 
  4.13  ~~department fails to do so, it shall within three working days~~ 
  4.14  ~~provide written notice to the applicant's telephone company that~~ 
  4.15  ~~the company shall provide telephone assistance plan credits~~ 
  4.16  ~~against monthly charges in the earliest possible month following~~ 
  4.17  ~~receipt of the written notice.  The applicant must receive~~ 
  4.18  ~~telephone assistance plan credits until the earliest possible~~ 
  4.19  ~~month following the company's receipt of notice from the~~ 
  4.20  ~~department that the applicant is ineligible~~ enroll the applicant 
  4.21  in the telephone assistance plan. 
  4.22     If the income documentation provided by the applicant does 
  4.23  not demonstrate income eligibility for the telephone assistance 
  4.24  plan, the department of human services ~~determines~~ shall 
  4.25  determine that ~~an~~ the applicant is not eligible to receive 
  4.26  telephone assistance plan credits~~, it~~ and shall notify the 
  4.27  applicant within ten working days of that determination. 
  4.28     Within ten working days of determining that an applicant is 
  4.29  eligible to receive telephone assistance plan credits, the 
  4.30  department of human services shall provide written notification 
  4.31  to the telephone company that serves the applicant.  The notice 
  4.32  must include the applicant's name, address, and telephone number.
  4.33     Each telephone company shall provide telephone assistance 
  4.34  plan credits against monthly charges in the earliest possible 
  4.35  month following receipt of notice from the department of human 
  4.36  services. 
  5.1      By ~~December 31~~ April 15 of each year, all enrollees, 
  5.2   including those automatically enrolled under subdivision 8, 
  5.3   shall provide the department of human services with updated 
  5.4   income documentation.  The department of human services shall 
  5.5   review each enrollee's updated documentation and shall 
  5.6   redetermine eligibility of each person receiving telephone 
  5.7   assistance plan credits, as required in paragraph (b).  ~~The~~ 
  5.8   ~~department of human services shall submit an annual report to~~ 
  5.9   ~~the commission by January 15 of each year showing that the~~ 
  5.10  ~~department has determined the eligibility for telephone~~ 
  5.11  ~~assistance plan credits of each person receiving the credits or~~ 
  5.12  ~~explaining why the determination has not been made and showing~~ 
  5.13  ~~how and when the determination will be completed.~~  Any enrollee 
  5.14  who fails to provide regular updates of income documentation as 
  5.15  required under this paragraph may be deemed ineligible for 
  5.16  continued assistance. 
  5.17     If ~~the department of human services determines that a~~ 
  5.18  ~~current recipient of telephone assistance plan credits~~ an 
  5.19  enrollee's updated income information demonstrates that the 
  5.20  enrollee is not eligible to receive the credits, ~~it~~ the 
  5.21  department of human services shall notify, in writing, the 
  5.22  recipient within ten working days and the telephone company 
  5.23  serving the recipient within 20 working days of the 
  5.24  determination.  The notice must include the recipient's name, 
  5.25  address, and telephone number. 
  5.26     Each telephone company shall remove telephone assistance 
  5.27  plan credits against monthly charges in the earliest possible 
  5.28  month following receipt of notice from the department of human 
  5.29  services. 
  5.30     Each telephone company that disconnects a subscriber 
  5.31  receiving the telephone assistance plan credit shall report the 
  5.32  disconnection to the department of human services.  The reports 
  5.33  must be submitted monthly, identifying the subscribers 
  5.34  disconnected.  Telephone companies that do not disconnect a 
  5.35  subscriber receiving the telephone assistance plan credit are 
  5.36  not required to report.  
  6.1      If the telephone assistance plan credit is not itemized on 
  6.2   the subscriber's monthly charges bill for local telephone 
  6.3   service, the telephone company must notify the subscriber of the 
  6.4   approval for the telephone assistance plan credit. 
  6.5      (d) The commission shall serve as the coordinator of the 
  6.6   telephone assistance plan and be reimbursed for its 
  6.7   administrative expenses from the surcharge revenue pool.  As the 
  6.8   coordinator, the commission shall: 
  6.9      (1) establish a uniform statewide surcharge in accordance 
  6.10  with subdivision 6; 
  6.11     (2) establish a uniform statewide level of telephone 
  6.12  assistance plan credit that each telephone company shall extend 
  6.13  to each eligible household in its service area; 
  6.14     (3) require each telephone company to account to the 
  6.15  commission on a periodic basis for surcharge revenues collected 
  6.16  by the company, expenses incurred by the company, not to include 
  6.17  expenses of collecting surcharges, and credits extended by the 
  6.18  company under the telephone assistance plan; 
  6.19     (4) require each telephone company to remit surcharge 
  6.20  revenues to the department of administration for deposit in the 
  6.21  fund; and 
  6.22     (5) remit to each telephone company from the surcharge 
  6.23  revenue pool the amount necessary to compensate the company for 
  6.24  expenses, not including expenses of collecting the surcharges, 
  6.25  and telephone assistance plan credits.  When it appears that the 
  6.26  revenue generated by the maximum surcharge permitted under 
  6.27  subdivision 6 will be inadequate to fund any particular 
  6.28  established level of telephone assistance plan credits, the 
  6.29  commission shall reduce the credits to a level that can be 
  6.30  adequately funded by the maximum surcharge.  Similarly, the 
  6.31  commission may increase the level of the telephone assistance 
  6.32  plan credit that is available or reduce the surcharge to a level 
  6.33  and for a period of time that will prevent an unreasonable 
  6.34  overcollection of surcharge revenues. 
  6.35     (e) Each telephone company shall maintain adequate records 
  6.36  of surcharge revenues, expenses, and credits related to the 
  7.1   telephone assistance plan and shall, as part of its annual 
  7.2   report or separately, provide the commission and the department 
  7.3   of public service with a financial report of its experience 
  7.4   under the telephone assistance plan for the previous year.  That 
  7.5   report must also be adequate to satisfy the reporting 
  7.6   requirements of the federal matching plan.  
  7.7      (f) The department of public service shall investigate 
  7.8   complaints against telephone companies with regard to the 
  7.9   telephone assistance plan and shall report the results of its 
  7.10  investigation to the commission. 
  7.11     Sec. 4.  Minnesota Statutes 1996, section 237.70, is 
  7.12  amended by adding a subdivision to read: 
  7.13     Subd. 8.  [AUTOMATIC ENROLLMENT.] (a) The department of 
  7.14  human services shall automatically enroll in the telephone 
  7.15  assistance plan households whose income, telephone number, 
  7.16  telephone company and telephone subscriber name can be obtained 
  7.17  from state automated information systems or telephone company 
  7.18  records.  When this information cannot be obtained from state 
  7.19  automated information systems, the department shall obtain this 
  7.20  enrollment information from the household.  For the purposes of 
  7.21  this subdivision, "state automated information systems" means 
  7.22  information systems operated and maintained by the departments 
  7.23  of human services; children, families, and learning; and revenue 
  7.24  for the purpose of providing public assistance. 
  7.25     (b) The department of human services shall automatically 
  7.26  enroll eligible persons in the telephone assistance program on a 
  7.27  random basis according to the following schedule: 
  7.28     (1) by July 1, 1999, one-third of the total number of 
  7.29  persons eligible for automatic enrollment as of July 1, 1998; 
  7.30     (2) by July 1, 2000, two-thirds of that total; and 
  7.31     (3) by July 1, 2001, all persons eligible for automatic 
  7.32  enrollment.  
  7.33     (c) The departments of human services; children, families, 
  7.34  and learning; and revenue are authorized to share income 
  7.35  information contained in state automated information systems for 
  7.36  purposes consistent with this section. 
  8.1      (d) Participants who were enrolled in the telephone 
  8.2   assistance plan as of June 30, 1998, shall be included in the 
  8.3   group of persons selected for automatic enrollment under 
  8.4   paragraph (b), clause (1). 
  8.5      Sec. 5.  Minnesota Statutes 1996, section 237.701, 
  8.6   subdivision 1, is amended to read: 
  8.7      Subdivision 1.  [FUND CREATED; AUTHORIZED EXPENDITURES.] 
  8.8   The telephone assistance fund is created as a separate account 
  8.9   in the state treasury to consist of amounts received by the 
  8.10  department of administration representing the surcharge 
  8.11  authorized by section 237.70, subdivision 6, and amounts earned 
  8.12  on the fund assets.  Money in the fund may be used only for: 
  8.13     (1) reimbursement to telephone companies for expenses and 
  8.14  credits allowed in section 237.70, subdivision 7, paragraph (d), 
  8.15  clause (5); 
  8.16     (2) reimbursement of the administrative expenses of the 
  8.17  department of human services to implement sections 237.69 to 
  8.18  237.71, not to exceed ~~$314,000 annually~~ $500,000 in fiscal year 
  8.19  1998 and $500,000 in fiscal year 1999; 
  8.20     (3) reimbursement of the administrative expenses of the 
  8.21  commission not to exceed $25,000 annually; and 
  8.22     (4) reimbursement of the statewide indirect cost of the 
  8.23  commission. 
  8.24     Sec. 6.  [237.702] [OTHER TELEPHONE ASSISTANCE PLAN 
  8.25  PROVISIONS.] 
  8.26     Subdivision 1.  [OUTREACH.] The department of human 
  8.27  services, in consultation with the department of public service 
  8.28  and the public utilities commission shall develop, implement, 
  8.29  and maintain an outreach and marketing program to increase 
  8.30  awareness of the availability of telephone assistance and to 
  8.31  identify potentially eligible participants who do not have 
  8.32  telephone service. 
  8.33     Subd. 2.  [INCORPORATION INTO STATE UNIVERSAL SERVICE 
  8.34  FUND.] The public utilities commission shall develop and 
  8.35  implement the state universal service fund required under 
  8.36  section 237.16, subdivision 9, by December 31, 2000.  The 
  9.1   commission shall incorporate the purpose, goals, and levels of 
  9.2   funding of the telephone assistance plan into the purpose, 
  9.3   goals, and funding of that universal service fund. 
  9.4      Sec. 7.  [REPEALER.] 
  9.5      Minnesota Statutes 1996, section 237.69, subdivision 9, is 
  9.6   repealed. 
  9.7      Sec. 8.  [EFFECTIVE DATE.] 
  9.8      Sections 1 to 6 are effective the day following final 
  9.9   enactment.