This docum ent does not reflect the intent or official position of the bill sponsor or House of Representatives.
STORAGE NAME: h0551b.COM
DATE: 1/19/2024
HOUSE OF REPRESENTATIVES STAFF ANALYSIS
BILL #: CS/HB 551 Designation of Eligible Telecommunications Carriers
SPONSOR(S): Energy, Communications & Cybersecurity Subcommittee, Barnaby
TIED BILLS: IDEN./SIM. BILLS: CS/SB 478
REFERENCE ACTION ANALYST STAFF DIRECTOR or
BUDGET/POLICY CHIEF
1) Energy, Communications & Cybersecurity
Subcommittee
14 Y, 0 N, As CS Bauldree Keating
2) Commerce Committee Bauldree Hamon
SUMMARY ANALYSIS
The federal Lifeline program (Lifeline) provides telecommunications service discounts for qualifying low-income
consumers. Consumers may qualify to participate in Lifeline either through program-based or income-based
eligibility standards. Qualifying households can receive a discount on their monthly phone or broadband
Internet bills from providers which have been designated as eligible telecommunications carriers (ETCs).
Pursuant to federal law, state commissions are granted authority to designate a company as an ETC. In
Florida, the Public Service Commission (PSC) oversees Lifeline. Florida law does not authorize the PSC to
designate wireless carriers as ETCs. If a company is not subject to the jurisdiction of the state commission, the
company must petition the Federal Communications Commission (FCC) for ETC designation.
The bill authorizes the PSC to designate wireless providers as ETCs for the limited purpose of providing
Lifeline service.
The bill does not appear to have a fiscal impact on state or local governments.
The bill provides that it will take effect upon becoming law. STORAGE NAME: h0551b.COM PAGE: 2
DATE: 1/19/2024
FULL ANALYSIS
I. SUBSTANTIVE ANALYSIS
A. EFFECT OF PROPOSED CHANGES:
Present Situation
In 1985 the Lifeline program (Lifeline) was created by federal law, providing telecommunications
service discounts for qualifying low-income consumers. Lifeline’s initial goal was to ensure that all
Americans had the opportunity and security that basic phone service provides. Over time, that goal has
evolved to include broadband service. Qualifying households can receive up to a $9.25 discount on
their monthly phone or broadband Internet bills from wireline service providers that have been
designated as eligible telecommunications carriers (ETCs). Alternatively, consumers may choose to
receive monthly wireless minutes and/or measured data service from designated wireless providers.
1
Consumers may qualify to participate in Lifeline either through program-based or income-based
eligibility standards. Program-based eligibility is determined by a customer’s enrollment in specific
qualifying programs. Customers can qualify for Lifeline by being enrolled in any of the following
programs:
Supplemental Nutrition Assistance Program (SNAP)
Medicaid
Federal Public Housing Assistance
Supplemental Security Income
Veterans or Survivors Pension Program
Bureau of Indian Affairs Programs, including Tribal Temporary Assistance to Needy Families,
Head Start Subsidy, and National School Lunch Program.
2
Consumers whose total household income is less than 135 percent of the Federal Poverty Guidelines
may participate in Lifeline under the income-based standard. The Federal Poverty Guidelines are
annually updated by the United States Department of Health and Human Services.
3
Florida Lifeline ETC Designation
Pursuant to federal law, state commissions
4
are granted authority to designate a company as an ETC.
5
In Florida, the Public Service Commission (PSC) oversees Lifeline. As permitted by federal law, the
PSC designates telecommunications companies
6
as ETCs pursuant to standards outlined in federal
law.
7, 8
Telecommunications providers must be designated as an ETC in order to participate in the
Lifeline program.
9
Florida law requires that an ETC must provide Lifeline service to qualified residential
subscribers as defined in the ETC's published schedules.
10
Designation of Wireless Carriers
Florida law does not authorize the PSC to designate commercial mobile radio service providers
(wireless carriers) as ETCs. If a wireless carrier is not subject to the jurisdiction of the state
commission, the company must petition the Federal Communications Commission (FCC) for ETC
1
Public Service Commission (PSC), 2022 Florida Lifeline Assistance Report, December 2022, p. 3.,
https://www.floridapsc.com/pscfiles/website-files/PDF/Publications/Reports/Telecommunication/LifelineReport/2022.pdf.
2
Id.
3
Id. at 4.
4
The term state commission means the commission, board or official (by whatever name designated) that, under the laws
of any state, has regulatory jurisdiction with respect to intrastate operations of carriers. 47 C.F.R. § 54.5 (1997).
5
Florida Public Service Commission, Agency Analysis of 2024 Senate Bill 478, p. 1 (Nov. 28, 2023).
6
A telecommunications company does not include commercial mobile radio service providers. S. 364.02(13), F.S.
7
S. 364.10(1)(a), F.S.
8
See 47 C.F.R. § 54.5 (1997).
9
Florida Public Service Commission, Agency Analysis of 2024 Senate Bill 478, p. 1 (Nov. 28, 2023).
10
S. 364.10(1)(a), F.S. STORAGE NAME: h0551b.COM PAGE: 3
DATE: 1/19/2024
designation.
11
The PSC indicates that, since 2011, there have been 37 ETC applications by wireless
carriers to the FCC for which no action has been taken.
12
Effect of the Bill
The bill authorizes the PSC to designate wireless carriers as ETCs for the limited purpose of providing
Lifeline service. The bill does not grant the PSC jurisdiction over wireless carriers for any other
purpose.
B. SECTION DIRECTORY:
Section 1: Amends s. 364.10, F.S., relating to Lifeline service.
Section 2: Provides that the bill is effective upon becoming law.
II. FISCAL ANALYSIS & ECONOMIC IMPACT STATEMENT
A. FISCAL IMPACT ON STATE GOVERNMENT:
1. Revenues:
None.
2. Expenditures:
None.
13
B. FISCAL IMPACT ON LOCAL GOVERNMENTS:
1. Revenues:
None.
2. Expenditures:
None.
C. DIRECT ECONOMIC IMPACT ON PRIVATE SECTOR:
According to the PSC, allowing wireless providers to petition the PSC for ETC designation may result in
a more expedited application process, which may lead to more companies offering service with a
Lifeline discount.
14
The bill does not alter the pool of eligible consumers.
D. FISCAL COMMENTS:
None.
III. COMMENTS
A. CONSTITUTIONAL ISSUES:
1. Applicability of Municipality/County Mandates Provision:
Not Applicable. The bill does not appear to affect county or municipal government.
2. Other:
11
Florida Public Service Commission, Agency Analysis of 2024 Senate Bill 478, p. 1 (Nov. 28, 2023).
12
Id.
13
Florida Public Service Commission, Agency Analysis of 2024 Senate Bill 478, p. 2 (Nov. 28, 2023).
14
Id. at 2. STORAGE NAME: h0551b.COM PAGE: 4
DATE: 1/19/2024
None.
B. RULE-MAKING AUTHORITY:
The bill does not authorize or require rulemaking.
C. DRAFTING ISSUES OR OTHER COMMENTS:
None.
IV. AMENDMENTS/COMMITTEE SUBSTITUTE CHANGES
On December 12, 2023, the Energy, Communications & Cybersecurity Subcommittee adopted an
amendment and reported the bill favorably as a committee substitute. The amendment clarified the Public
Service Commission’s regulatory jurisdiction with respect to wireless carriers.
This analysis is drafted to the committee substitute as passed by the Energy, Communications &
Cybersecurity Subcommittee.