The Florida Senate
BILL ANALYSIS AND FISCAL IMPACT STATEMENT
(This document is based on the provisions contained in the legislation as of the latest date listed below.)
Prepared By:
BILL: SPB 7036
INTRODUCER: Committee on Regulated Industries
SUBJECT: Lifeline Telecommunications Service
DATE: January 14, 2022
ANALYST STAFF DIRECTOR REFERENCE ACTION
1. Sharon Imhof RI Submitted as Comm. Bill/Fav
I. Summary:
SPB 7036 amends ss. 364.10 and 364.107, F.S., under the Lifeline program to conform to current
federal regulations.
The bill clarifies that an eligible telecommunications carrier (ETC) must notify a Lifeline
subscriber (subscriber) of impending termination of Lifeline service if there is reason to believe
that the subscriber no longer qualifies for the service. It requires a subscriber to provide proof of
continued eligibility for Lifeline service upon request of the ETC, the Federal Communications
Commission (FCC) or its designee.
The bill removes obsolete provisions relating to income eligibility standards that are inconsistent
with current FCC requirements. It removes references to state agencies no longer involved in the
development of procedures for promoting Lifeline, leaving just the Public Service Commission
(PSC) and the Department of Children and Families (DCF). The bill clarifies that the PSC and
the DCF may exchange information with ETCs, and the FCC or its designee, in order to enroll
eligible customers in Lifeline service. The bill requires any state agency that determines a person
is eligible for Lifeline service to coordinate with the FCC or its designee to verify eligibility.
The bill amends s. 364.107, F.S, allowing state agencies to share information with the FCC or its
designee to verify eligibility or auditing of a Lifeline Assistance Plan.
The bill is effective July 1, 2022.
REVISED: BILL: SPB 7036 Page 2
II. Present Situation:
Lifeline Service
The Lifeline program has provided telecommunication services discounts to qualifying low-
income consumers since 1985.
1
The initial goal was to ensure that all Americans could connect
to jobs, family, and emergency services through phone service. Since then, that goal has
expanded to include the provision of broadband Internet service.
2
Under the program, qualifying consumers may receive a discount up to $9.25 toward their
monthly phone or broadband Internet bills through service providers that have been designated
as ETCs. Consumers may choose to receive monthly wireless minutes and/or measured data
service from designated wireless providers, instead of the credit.
3
Lifeline is a federal program funded by the Universal Service Fund (USF).
4
Its rules are
established by the FCC, which designated the Universal Service Administrative Company
(USAC), an independent not-for-profit corporation, as Lifeline’s administrator.
5
USAC is
responsible for data collection and maintenance, support calculation, and disbursement for
Lifeline.
6
Consumers may qualify to participate in Lifeline through income-based eligibility standards, if
their total household income is less than 135 percent of the Federal Poverty Guidelines, which
are annually updated by the United States Department of Health and Human Services.
7
Alternatively, consumers may qualify to participate in Lifeline through program-based eligibility
if they are enrolled in any of the following:
Supplemental Nutrition Assistance Program (SNAP);
Medicaid;
Federal Public Housing Assistance;
Supplemental Security Income;
Veterans or Survivors Pension Program; or
Bureau of Indian Affairs Programs, including Tribal Temporary Assistance to Needy
Families, Head Start Subsidy, and National School Lunch Program.
8
1
FCC, Lifeline Program for Low-Income Consumers, https://www.fcc.gov/general/lifeline-program-low-income-consumers
(last visited Jan. 12, 2022).
2
PSC, 2021 Florida Lifeline Assistance Report (Dec. 2021), p. 3, available at:
http://www.psc.state.fl.us/Files/PDF/Publications/Reports/Telecommunication/LifelineReport/2021.pdf (last visited
Jan. 12, 2022).
3
Id.
4
The USF is both a fund and category of FCC programs and policies implementing the Universal Service principle that all
Americans should have access to communications services. This principle is a cornerstone of the Communications Act of
1934 that established the FCC. See FCC, Universal Service, https://www.fcc.gov/general/universal-service (last visited
Jan. 13, 2022).
5
PSC, 2021 Lifeline Report, supra n. 2, at 3. See Assistant Secretary for Planning and Evaluation, Department of Health and
Human Services, Poverty Guidelines for 2021, https://aspe.hhs.gov/topics/poverty-economic-mobility/poverty-guidelines
(last visited Jan. 13, 2022).
6
Id.
7
Id. at 4.
8
Id. BILL: SPB 7036 Page 3
Lifeline in Florida
In Florida, the PSC has oversight of the program and is charged with designating
telecommunications companies with ETC status, pursuant to 47 C.F.R. s. 54.201.
9
ETCs must
provide service to qualified residential subscribers, as defined in the ETC’s published
schedules.
10
Each local exchange telecommunications company with more than one million
access lines and which is designated as an ETC must, and any wireless service provider
designated as an ETC may, upon filing a notice of election to do so with the PSC, provide
Lifeline to any otherwise eligible customer or potential customer whose household income is 150
percent or less of the federal poverty guidelines for Lifeline.
11
The Office of Public Counsel (OPC)
12
certifies and maintains claims submitted by customers for
Lifeline eligibility under the income test.
13
Customers may also be eligible for Lifeline under the
eligibility standards established by federal law based on participation in certain low-income
assistance programs.
14
Each state agency providing benefits to persons eligible for Lifeline service, must develop
procedures to promote Lifeline participation in cooperation with the DCF, the Department of
Education, the PSC, the OPC, and ETCs.
15
These named agencies may exchange information
with the appropriate ETC, including a person's name, date of birth, service address, and
telephone number. This information is otherwise confidential and exempt from public disclosure,
but for the limited purposes of determining eligibility and enrollment in the program.
16
If a state agency determines that someone is eligible for Lifeline, that agency must immediately
forward their information to the PSC for automatic enrollment with the appropriate ETC.
17
The
state agency must include an option for an eligible customer to choose not to subscribe to the
Lifeline service.
18
An ETC must notify a Lifeline subscriber of impending termination of Lifeline service if the
ETC reasonably believes that the subscriber no longer qualifies for Lifeline service.
19
Notification must be sent in a letter separate from the subscriber’s bill.
20
A subscriber must be
given 60 days from the termination letter to demonstrate continued eligibility.
21
9
Section 364.10, F.S.; R. 25-4.0665, Fla. Admin. Code (Lifeline Assistance).
10
Section 364.10(1)(a), F.S.
11
Section 364.10(2)(a), F.S. There have not been any wireline carriers in Florida with more than a million access lines since
2016. An ETC may provide the Lifeline discount to qualifying customers using the expanded 150 percent guideline,
however, this would not qualify for reimbursement from USAC under the 135 percent guideline.
12
Under s. 350.0611, F.S., the Office of Public Counsel provides representation for the people of the state in proceedings in
front of the PSC.
13
Section 364.10(2)(a), F.S.
14
Section 364.10(2)(a), F.S.
15
Section 364.10(2)(g)1., F.S.
16
Sections 364.10(2)(g)1. and 364.107, F.S.
17
Section 364.10(2)(g)1., F.S.
18
Section 364.10(2)(g)2., F.S.
19
Section 364.10(1)(e)1.,F.S.
20
Id.
21
Section 364.10(1)(e)2. BILL: SPB 7036 Page 4
2016 Lifeline Modernization Reform Order
In April 2016, the FCC issued the Lifeline Modernization Order (2016 Order).
22
The intent was
to modernize the program by including broadband as a supported service, designating uniform
minimum service standards and eligibility criteria and establishing the National Verifier.
23
Prior
to the 2016 Order, states could establish their own income eligibility standards or include
additional state qualifying programs. In 2016, the FCC eliminated this provision to simplify
administration of the program and bring uniformity among the states.
24
National Lifeline Eligibility Verifier
To fight waste, fraud, and abuse in the program, the 2016 Order directed the USAC to develop
the National Verifier as a way to determine initial subscriber eligibility, conduct annual
recertification, populate a national database of Lifeline customers, and support payments to
ETCs.
25
The National Verifier’s efficiency depends on the establishment of an automated
verification interface process connected to qualifying program databases. The National Verifier
is connected to federal databases, including the Public Housing Assistance and Medicaid
databases, allowing additional avenues to verify eligibility.
26
USAC Interface with the DCF Database
In 2019, the PSC coordinated an informal meeting between the DCF and USAC, to assist in
Florida’s transition to the National Verifier.
27
This meeting established the groundwork for an
automated verification process, allowing the USAC to interface with the DCF’s qualifying
program database. USAC’s connection to the DCF database was established in January 2021.
The DCF database provides the USAC with confirmation of a customer’s participation in a
qualifying program, without revealing the type of program or other customer information, and
eliminating the need for supporting documentation.
28
Minimum Service Standards
The 2016 Order required all ETCs to provide a discount for broadband service meeting the
FCC’s established minimum service standards.
29
These standards are reviewed annually by the
FCC to ensure that Lifeline service options remain viable as technology improves.
30
As of
December 2019, the minimum service standards were:
Mobile voice - 1,000 minutes per month;
Mobile broadband usage - 8.75 GB per month at 3G; and
Fixed broadband - 20 Mbps downstream and 3 Mbps upstream with 1 TB data usage per
month.
22
FCC, FCC Modernizes Lifeline Program for Low-Income Consumers, https://www.fcc.gov/document/fcc-modernizes-
lifeline-program-low-income-consumers (last visited Jan. 13, 2022).
23
PSC, 2021 Lifeline Report, supra n. 2, at 15.
24
FCC, Third Report and Order, FCC 16-38, WC Docket No. 11-42 (released April 27, 2016) at p. 77, par. 212.
25
PSC, 2021 Lifeline Report, supra n. 2, at 17.
26
Id. At 18.
27
Id.
28
Id.
29
PSC, 2021 Lifeline Report, supra n. 2, at 15. To be exempt, an ETC needed to be granted forbearance by the FCC.
30
Id. To receive USF support, ETCs must meet the minimum service standards. BILL: SPB 7036 Page 5
III. Effect of Proposed Changes:
Section 1 clarifies that an ETC must notify a subscriber of impending termination of Lifeline
service if there is reason to believe that the subscriber no longer qualifies for the service. It
requires a subscriber to provide proof of continued eligibility for Lifeline service upon request of
the ETC, the FCC or its designee.
The bill removes obsolete provisions relating to income eligibility standards that are inconsistent
with current FCC requirements. It removes references to state agencies no longer involved in the
development of procedures for promoting Lifeline, leaving just the PSC and the DCF. The bill
clarifies that the PSC and the DCF may exchange information with ETCs, and the FCC or its
designee, in order to enroll eligible customers in the program. The bill requires any state agency
that determines a person is eligible for Lifeline service to coordinate with the FCC or its designee
to verify eligibility.
Section 2 amends s. 364.107, F.S., allowing state agencies to share information with the FCC or
its designee to verify eligibility or auditing of a Lifeline Assistance Plan.
Section 3 provides that the bill is effective July 1, 2022.
IV. Constitutional Issues:
A. Municipality/County Mandates Restrictions:
None.
B. Public Records/Open Meetings Issues:
None.
C. Trust Funds Restrictions:
None.
D. State Tax or Fee Increases:
None.
E. Other Constitutional Issues:
None.
V. Fiscal Impact Statement:
A. Tax/Fee Issues:
None. BILL: SPB 7036 Page 6
B. Private Sector Impact:
None.
C. Government Sector Impact:
None.
VI. Technical Deficiencies:
None.
VII. Related Issues:
None.
VIII. Statutes Affected:
This bill substantially amends the following sections: 364.10 and 364.107 of the Florida Statutes.
IX. Additional Information:
A. Committee Substitute – Statement of Changes:
(Summarizing differences between the Committee Substitute and the prior version of the bill.)
None.
B. Amendments:
None.
This Senate Bill Analysis does not reflect the intent or official position of the bill’s introducer or the Florida Senate.