[Federal Register Volume 78, Number 131 (Tuesday, July 9, 2013)]
[Rules and Regulations]
[Pages 40968-40970]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-16490]
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FEDERAL COMMUNICATIONS COMMISSION
47 CFR Part 54
[WC Docket No. 11-42; DA 13-1441]
Lifeline and Link Up Modernization and Reform
AGENCY: Federal Communications Commission.
ACTION: Final rule.
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SUMMARY: In this Order, the Wireline Competition Bureau (Bureau)
underscores certain compliance requirements that are contained in the
Lifeline Reform Order and its accompanying rules. The Bureau codifies
the Commission's requirement that eligible telecommunications carriers
(ETCs) verify a Lifeline subscriber's eligibility for Lifeline service
before activating such service, pursuant to the authority delegated in
the Lifeline Reform Order.
DATES: Effective August 8, 2013.
FOR FURTHER INFORMATION CONTACT: Radhika Karmarkar, Wireline
Competition Bureau, (202) 418-7400 or TTY: (202) 418-0484.
[[Page 40969]]
SUPPLEMENTARY INFORMATION: This is a summary of the Wireline
Competition Bureau's Order in WC Docket No. 11-42; DA 13-1441, released
on June 25, 2013. The complete text of this document is available for
inspection and copying during normal business hours in the FCC
Reference Information Center, Portals II, 445 12th Street SW., Room CY-
A257, Washington, DC 20554. The document may also be purchased from the
Commission's duplicating contractor, Best Copy and Printing, Inc.
(BCPI), 445 12th Street SW., Room CY-B402, Washington, DC 20554,
telephone (800) 378-3160 or (202) 863-2893, facsimile (202) 863-2898,
or via the Internet at http://www.bcpiweb.com. It is also available on
the Commission's Web site at: http://www.fcc.gov/document/order-codifying-requirement-verify-lifeline-subscriber-eligibility.
I. Introduction
1. In this Order, the Wireline Competition Bureau (Bureau)
underscores certain compliance requirements that are contained in the
Lifeline Reform Order, 77 FR 12952, March 2, 2012, and its accompanying
rules. The Bureau codifies the Commission's requirement that eligible
telecommunications carriers (ETCs) verify a Lifeline subscriber's
eligibility for Lifeline service before activating such service,
pursuant to the authority delegated in the Lifeline Reform Order.
2. Despite the directives provided in the Lifeline Reform Order,
some ETCs may be activating phones that they represent enable use of
Lifeline-supported service for consumers prior to fully verifying the
eligibility of such consumers. For this reason, the Bureau reminds ETCs
that they must verify the eligibility of a low-income consumer prior to
providing Lifeline service to that consumer, and may not provide an
activated device intended to enable access to Lifeline service to a
consumer until that consumer's eligibility is fully verified and all
other necessary enrollment steps are completed. We take this action in
pursuit of the Commission's goal to combat any and all forms of waste,
fraud, and abuse.
II. Discussion
3. In the Lifeline Reform Order, the Commission adopted several
rules to ensure the eligibility of low-income consumers for Lifeline
service. Specifically, the Commission promulgated Sec. 54.410(a),
which requires ETCs to ``implement policies and procedures for ensuring
that their Lifeline subscribers are eligible to receive Lifeline
services.'' Similarly, Sec. 54.416(a)(1) requires an officer of each
ETC to ``certify that the carrier has policies and procedures in place
to ensure that its Lifeline subscribers are eligible to receive
Lifeline services.'' As discussed below, these rules, read in
conjunction with the Lifeline Reform Order and other Commission rules,
make clear that the ETC must determine whether a Lifeline subscriber is
eligible to receive Lifeline service, and that the ETC must have
processes and policies in place to make the eligibility determination
prior to activating service for that consumer.
4. Section 54.410(b) and (c) of the Commission's rules makes clear
that ETCs must make this eligibility determination for ``prospective
subscriber[s].'' To give meaning to the distinct term ``Lifeline
subscribers'' in Sec. 54.410(a), ``prospective subscriber[s]'' in
Sec. 54.410(b) and (c) must be understood to require an ETC to
determine eligibility for consumers that have not yet had Lifeline
service activated, but are merely seeking to do so by enrolling in the
ETC's Lifeline offering. Similarly, when an ETC holds itself out as
offering Lifeline service, as required by Sec. 54.405(c), a subscriber
seeking to enroll in Lifeline service with that ETC would reasonably
consider him/herself to be a ``Lifeline subscriber'' from the moment
that, for example, the certification form is completed and the handset
is activated for voice telephony service.
5. The framework for determining eligibility and enrolling
consumers adopted in the Lifeline Reform Order also demonstrates that
an ETC must determine eligibility before service activation. The
Commission stated in the Lifeline Reform Order that ETCs must make the
required determination of eligibility ``prior to enrolling a new
subscriber in Lifeline.'' The enrollment process involves consumers
signing up for service and making the required certifications via a
certification form. Prior Commission forbearance conditions, which
formed part of the basis for the enrollment rules adopted in the
Lifeline Reform Order, prohibited ETCs from activating service before
obtaining the required consumer certifications. Against that backdrop,
the Lifeline Reform Order should be understood as imposing on all ETCs
the requirement that they may not activate Lifeline service until
completing the entire enrollment process. Because the determination of
eligibility must be made before the enrollment process is completed, it
also must occur before the ETC may activate any phone that the ETC
indicates will be used for Lifeline service. We also take this
opportunity to reiterate the Commission's rule that Lifeline is a
``non-transferable retail service offering,'' a fact that must be
disclosed to the consumer and included on the certification form. We
note that, pursuant to the Lifeline Reform Order, a Lifeline subscriber
may not transfer his or her service to any other individual, including
another eligible low-income consumer.
6. Pursuant to Sec. Sec. 54.410(a) and 54.416(a)(1) of the
Commission's rules, an ETC must have processes and policies in place to
make the eligibility determination prior to activating Lifeline service
for a consumer. An ETC therefore may not provide a service that it
represents to be Lifeline service, even on an interim basis while the
consumer's application is being processed, before verifying
eligibility. And in particular, an ETC may not provide an activated
handset to a consumer whose eligibility has not been fully verified.
7. Pursuant to the authority delegated to the Bureau in paragraph
507 of the Lifeline Reform Order, we codify the requirement described
above by amending Sec. 54.410(a) of the Commission's.
III. Procedural Matters
A. Paperwork Reduction Act
8. This document does not contain proposed information
collection(s) subject to the Paperwork Reduction Act of 1995 (PRA),
Public Law 104-13. In addition, therefore, it does not contain any new
or modified information collection burden for small business concerns
with fewer than 25 employees, pursuant to the Small Business Paperwork
Relief Act of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
B. Final Regulatory Flexibility Certification
9. The Regulatory Flexibility Act of 1980, as amended (RFA),
requires that a regulatory flexibility analysis be prepared for
rulemaking proceedings, unless the agency certifies that ``the rule
will not have a significant economic impact on a substantial number of
small entities.'' The RFA generally defines ``small entity'' as having
the same meaning as the terms ``small business,'' ``small
organization,'' and ``small governmental jurisdiction.'' In addition,
the term ``small business'' has the same meaning as the term ``small
business concern'' under the Small Business Act. A small business
concern is one which: (1) Is independently owned and operated; (2) is
not dominant in its field of operation; and (3) satisfies any
additional criteria established by the Small Business Administration
(SBA).
[[Page 40970]]
10. Underscoring these compliance requirements does not create any
burdens, benefits, or requirements that were not addressed by the Final
Regulatory Flexibility Analysis attached to the Lifeline Reform Order.
Therefore, we certify that the requirements of this Order will not have
a significant economic impact on a substantial number of small
entities. The Commission will send a copy of the Order, including a
copy of this Final Regulatory Flexibility Certification, in a report to
Congress pursuant to SBREFA. In addition, the Order and this
certification will be sent to the Chief Counsel for Advocacy of the
SBA, and will be published in the Federal Register.
C. Congressional Review Act
11. The Commission will send a copy of this Order to Congress and
the Government Accountability Office pursuant to the Congressional
Review Act.
IV. Ordering Clauses
12. Accordingly, it is ordered that, pursuant to the authority
contained in sections 1, 2, 4(i), 5(c), 10, 201 through 206, 214, 218
through 220, 251, 252, 254, 256, 303(r), 332, and 403 of the
Communications Act of 1934, as amended, and section 706 of the
Telecommunications Act of 1996, 47 U.S.C. 151, 152, 154(i), 155(c),
160, 201 through 206, 214, 218 through 220, 251, 252, 254, 256, 303(r),
332, 403, 1302, Sec. Sec. 0.91, 0.291, 1.1, and 1.427 of the
Commission's rules, 47 CFR 0.91, 0.291, 1.1, 1.427, and the delegation
of authority in paragraph 507 of FCC 12-11, this order is adopted.
13. It is further ordered that part 54 of the Commission's rules,
47 CFR part 54, IS amended as set forth below, and such rule amendments
shall be effective August 8, 2013. It is further ordered that the
Commission's Consumer and Governmental Affairs Bureau, Reference
Information Center, shall send a copy of this Order, including the
Final Regulatory Flexibility Certification, to the Chief Counsel for
Advocacy of the Small Business Administration.
List of Subjects in 47 CFR Part 54
Communications common carriers, Reporting and recordkeeping
requirements, Telecommunications, Telephone.
Federal Communications Commission.
Amy Bender,
Deputy Chief, Telecommunications Access Policy Division Wireline
Competition Bureau.
Final Rules
For the reasons discussed in the preamble, the Federal
Communications Commission amends 47 CFR part 54 as follows:
PART 54--UNIVERSAL SERVICE
0
1. The authority citation for part 54 continues to read as follows:
Authority: Sections 1, 4(i), 5, 201, 205, 214, 219, 220, 254,
303(r), and 403 of the Communications Act of 1934, as amended, and
section 706 of the Communications Act of 1996, as amended; 47 U.S.C.
151, 154(i), 155, 201, 205, 214, 219, 220, 254, 303(r), 403, and
1302 unless otherwise noted.
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2. Amend Sec. 54.410 by revising paragraph (a) to read as follows:
Sec. 54.410 Subscriber eligibility determination and certification.
(a) All eligible telecommunications carriers must implement
policies and procedures for ensuring that their Lifeline subscribers
are eligible to receive Lifeline services. An eligible
telecommunications carrier may not provide a consumer with an activated
device that it represents enables use of Lifeline-supported service,
nor may it activate service that it represents to be Lifeline service,
unless and until it has:
(1) Confirmed that the consumer is a qualifying low-income consumer
pursuant to Sec. 54.409, and;
(2) Completed the eligibility determination and certification
required by this section and Sec. Sec. 54.404 through 54.405, and
completed any other necessary enrollment steps.
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[FR Doc. 2013-16490 Filed 7-8-13; 8:45 am]
BILLING CODE 6712-01-P