R746.  Public Service Commission, Administration.
R746-360.  Universal Public Telecommunications Service Support Fund.
R746-360-1.  General Provisions.
	A.  Authorization -- Section 54-8b-15 authorizes the Commission to establish an expendable trust fund, known as the Universal Public Telecommunications Service Support Fund, the "universal service fund," "USF" or the "fund," to promote equitable cost recovery and universal service by ensuring that customers have access to basic telecommunications service at just, reasonable and affordable rates, consistent with the Telecommunications Act of 1996.
	B.  Purpose -- The purposes of these rules are:
	1.  to govern the methods, practices and procedures by which:
	a.  the USF is created, maintained, and funded by end-user surcharges applied to retail rates;
	b.  funds are collected for and disbursed from the USF to qualifying telecommunications corporations so that they are able to recover the reasonable and prudent costs of providing basic telecommunications service while charging just, reasonable and affordable rates; and,
	2.  to ensure funds collected and disbursed from the USF are used efficiently and in the public interest.
	C.  Application of the Rules -- The rules apply to all retail providers that provide intrastate public telecommunications services.

R746-8. Utah Universal Public Telecommunications Service Support Fund (UUSF).

R746-8-100. Authority, Purpose, and Organization.
	(1)  This rule is adopted under:
	(a)  Utah Code § 54-8b-10; and
	(b)  Utah Code § 54-8b-15.
	(2)  This rule:
	(a)  governs the methods, practices, and procedures by which:
	(b)  the UUSF is created, maintained, and funded; and
	(c)  funds are disbursed from the UUSF to qualifying access line providers.
	(3)  This rule is organized into the following Parts:
	(a)  Part 100: Authority, Purpose and Organization;
	(b)  Part 200: Definitions;
	(c)  Part 300: UUSF Funding; and
	(d)  Part 400: UUSF Distributions.
	
R746-360-2.  Definitions.
	A.  Affordable Base Rate (ABR) -- means the monthly per line retail rates, charges or fees for basic telecommunications service which the Commission determines to be just, reasonable, and affordable for a designated support area.  The Affordable Base Rate shall be established by the Commission.  The Affordable Base Rate does not include the applicable USF retail surcharge, municipal franchise fees, taxes, and other incidental surcharges.
	B.  Average Revenue Per Line -- means the average revenue for each access line computed by dividing the sum of all revenue derived from a telecommunications corporation's provision of public telecommunications services, including, but not limited to, revenues received from the provision of services in both the interstate and intrastate jurisdictions, whether designated "retail," "wholesale," or some other categorization, all revenues derived from providing network elements, services, functionalities, etc. required under the Federal Telecommunications Act of 1996, Pub. L. 104-104,110 Stat.56 or the Utah Telecommunications Reform Act, Laws of Utah 1995, Chapter 269, all support funds received from the Federal Universal Service Support Fund, and each and every other revenue source or support or funding mechanism used to assist in recovering the costs of providing public telecommunications services in a designated support area by that telecommunications corporation's number of access lines in the designated support area.
	C.  Basic Telecommunications Service -- means a local exchange service consisting of access to the public switched network; touch-tone, or its functional equivalent; local flat-rated, unlimited usage, exclusive of extended area service; single-party service with telephone number listed free in directories that are received free; access to operator services; access to directory assistance, lifeline and telephone relay assistance; access to 911 and E911 emergency services; access to long-distance carriers; access to toll limitation services; and other services as may be determined by the Commission.
	D.  Designated Support Area -- means the geographic area used to determine USF support distributions.  A designated support area, or "support area," need not be the same as a USF proxy model's geographic unit.  The Commission will determine the appropriate designated support areas for determining USF support requirements. Unless otherwise specified by the Commission, the designated support area for a rate-of-return regulated Incumbent telephone corporation shall be its entire certificated service territory located in the State of Utah.
	E.  Facilities-Based Provider -- means a telecommunications corporation that uses its own facilities, a combination of its own facilities and essential facilities or unbundled network elements obtained from another telecommunications corporation, or a telecommunications corporation which solely uses essential facilities or unbundled network elements obtained from another telecommunications corporation to provide public telecommunications services.
	F.  Geographic Unit -- means the geographic area used by a USF proxy cost model for calculating costs of public telecommunications services.  The Commission will determine the appropriate geographic area to be used in determining public telecommunications service costs.
	G.  Net Fund Distributions -- means the difference between the gross fund distribution to which a qualifying telecommunications corporation is entitled and the gross fund surcharge revenues collected by that company, when the former amount is greater than the latter amount.
	H.  Net Fund Contributions -- means the difference between the gross fund distribution to which a qualifying telecommunications corporation is entitled and the gross fund surcharge revenues generated by that company, when the latter amount is greater than the former amount.
	I.  USF Proxy Model Costs -- means the total, jurisdictionally unseparated, cost estimate for public telecommunications services, in a geographic unit, based on the forward-looking, economic cost proxy model(s) chosen by the Commission. The level of geographic cost disaggregation to be used for purposes of assessing the need for and the level of USF support within a geographic unit will be determined by the Commission.  These models shall be provided by the Commission by January 2, 2001.
	J.  Universal Service Fund (USF or fund) -- means the Universal Public Telecommunications Service Support Fund established by 54-8b-15 and set forth by this rule.

R746-8-200.  Definitions.
	(1)(a)  "Access line" is defined at Utah Code Subsection 54-8b-2(1).
	(b)  For purposes of applying the statutory definition of "access line," the "functional equivalent of a circuit-switched connection from an end-user to the public switched network" means equipment or technology that allows an end-user to place or receive a real-time voice communication.
	(c)  Providers of access lines and functionally equivalent connections are hereafter referred to jointly as "providers."	(2)(a)  "Affordable base rate" or "ABR" means the monthly retail rate that a rate-of-return regulated provider is required to charge on a per-access line basis in order to receive ongoing disbursements from the UUSF.
	(b)  "Affordable base rate" does not include:
	(i)  the applicable UUSF surcharge;
	(ii)  municipal franchise fee(s);
	(iii)  tax(es); or
	(iv)  any other incidental surcharge(s):
	(A)  included in a Commission-approved tariff; or
	(B)  authorized under these rules.
	(3)(a)  "Average revenue per line" means a provider's total revenue received from a designated support area divided by the provider's total number of access lines in the same designated support area.
	(4)  "Eligible telecommunications carrier" or "ETC" means a provider that, if seeking to participate in the state Lifeline program:
	(a)  holds a certificate of public convenience and necessity from the commission; and
	(b)(i)  is designated as an eligible telecommunications carrier by the commission in accordance with 47 U.S.C. Section 214(e); or
	(ii)  is designated by the FCC as a Lifeline Broadband Provider (LBP).
	(4)  "Designated support area" means the geographic area used to determine a provider's UUSF support distribution, including, at a minimum, the provider's entire certificated service territory located in the State of Utah.
	(5)  The acronym "FCC" means the Federal Communications Commission.
	(6)  "Facilities-based provider" means a provider that uses:
	(a)  its own facilities;
	(b)  essential facilities or unbundled network elements obtained from another provider; or
	(c)  a combination of its own facilities and essential facilities or unbundled network elements obtained from another provider.
	(7)  "Group depreciation methodology," pursuant to FCC Part 32, Subpart 32.2000(g)(1)(i), means a group plan of accounting that distributes the loss in service value of property under the straight-line method during the service life of the property.
	(8)(a)  "Household" means any individual or group of individuals living together at the same address as one economic unit.
	(b)  "Economic unit" means all adult individuals contributing to and sharing in the income and expenses of a household.
	(9)  "Lifeline subscriber" means an individual who qualifies for state subsidization of an access line through participation in a program for low-income individuals that is recognized by the FCC.

R746-360-3.  Duties of Administrator.
	A.  Selection of Administrator -- The Division of Public Utilities will be the fund administrator.  If the Division is unable to fulfill that responsibility, the administrator, who must be a neutral third party, unaffiliated with any fund participant, shall be selected by the Commission.
	B.  Cost of Administration -- The cost of administration shall be borne by the fund; unless administered by a state agency.
	C.  Access to Books -- Upon reasonable notice, the administrator shall have access to the books of account of all telecommunications corporations and retail providers, which shall be used to verify the intrastate retail revenue assessed in an end-user surcharge, to confirm the level of eligibility for USF support and to ensure compliance with this rule.
	D.  Maintenance of Records -- The administrator shall maintain the records necessary for the operation of the USF and this rule.
	E.  Report Forms -- The administrator shall develop report forms to be used by telecommunications corporations and retail providers to effectuate the provisions of this rule and the USF.  An officer of the telecommunications corporation or retail provider shall attest to and sign the reports to the administrator.
	F.  Administrator Reports -- The administrator shall file reports with the Commission containing information on the average revenue per line calculations, projections of future USF needs, analyses of the end-user surcharges and Affordable Base Rates, and recommendations for calculating them for the following 12-month period. The report shall include recommendations for changes in determining basic telecommunications service, designated support areas, geographic units, USF proxy cost models and ways to improve fund collections and distributions.
	G.  Periodic Review -- The administrator, under the direction of the Commission, shall perform a periodic review of fund recipients to verify eligibility for future support and to verify compliance with all applicable state and federal laws and regulations.
	H.  Proprietary Information -- Information received by the administrator which has been determined by the Commission to be proprietary shall be treated in conformance with Commission practices.
	I.  Information Requested -- Information requested by the administrator which is required to assure a complete review shall be provided within 45 days of the request.  Failure to provide information within the allotted time period may be a basis for withdrawal of future support from the USF or other lawful penalties to be applied.

R746-360-4.  Application of Fund Surcharges to Customer Billings.
	A.  Commencement of Surcharge Assessments -- Commencing June 1, 1998, end-user surcharges shall be the source of revenues to support the fund.  Surcharges will be applied to intrastate retail rates, and shall not apply to wholesale services.
	B.  Surcharge Based on a Uniform Percentage of Retail Rates -- The retail surcharge shall be a uniform percentage rate, determined and reviewed annually by the Commission and billed and collected by all retail providers.
	C.  Surcharge -- The surcharge to be assessed is as follows:
	1.  through September 30, 2016, 1 percent of billed intrastate retail rates; and
	2.  beginning October 1, 2016, 1.65 percent of billed intrastate retail rates.

R746-360-5.  Fund Remittances and Disbursements.
	A.  Remitting Surcharge Revenues --
	1.  Telecommunications corporations, not eligible for USF support funds, providing telecommunications services subject to USF surcharges shall collect and remit surcharge revenues to the Commission as follows:
	a.  if the average monthly USF surcharge collections over the prior six months was ten dollars or greater, within 45 days after the end of each month,
	b.  if the average monthly USF surcharge collections over the prior six months was less than ten dollars, the telecommunications corporation may accrue the USF surcharge collections and submit the accrued collections on a semiannual basis.
	2.  Telecommunications corporations eligible for USF support funds shall make remittances as follows:
	a.  Prior to the end of each month, the fund administrator shall inform each qualifying telecommunications corporation of the estimated amount of support that it will be eligible to receive from the USF for that month.
	b. Net fund contributions shall be remitted to the Commission within 45 calendar days after the end of each month.  If the net amount owed is not received by that date, remedies, including withholding future support from the USF, may apply.
	3.  The Commission will forward remitted revenues to the Utah State Treasurer's Office for deposit in a USF account.
	B.  Distribution of Funds -- Net Fund distributions to qualifying telecommunications corporations for a given month shall be made 60 days after the end of that month, unless withheld for failure to maintain qualification or failure to comply with Commission orders or rules.

R746-8-300.  UUSF Funding.

R746-8-301.  Calculation and Application of UUSF Surcharge.
	(1)(a)  Unless Subsection R746-8-301(3) applies, providers shall collect from their end-user customers $0.36 per month per access line:
	(i)  that has a physical endpoint within the State of Utah; or
	(ii)  as to which the provider has record of an associated address within the State of Utah.
	(b)  The surcharge shall apply directly to each end-user as a separate charge and shall not be included in, nor paid from, the provider's rates or telecommunications revenues. 
	(2)(a)  A provider shall remit to the Commission no less than 98.69 percent of its total monthly surcharge collections.
	(b)  A provider may retain a maximum of 1.31 percent of its total monthly surcharge collections to offset the costs of administering this rule.
	(3)(a)  An end-user may petition the Commission for a waiver of the surcharge set forth in Subsection R746-8-301(1)(a). Any such petition shall be adjudicated as an informal administrative proceeding.
	(b)  An end-user that petitions for a waiver of the surcharge has the burden to provide billing records or other substantial documentary evidence demonstrating that, at all times and continuously during the six calendar months preceding the date of petition, the access line being assessed was not used to access Utah intrastate telecommunications services.
	(4)(a)  An exemption granted under Subsection R746-360-4(5) is valid for a period of one calendar year from the date of issuance.
	(b)  Following the expiration of an exemption, and upon notice from the Commission, the end-user's provider shall assess the surcharge each month, until such time as the provider is notified by the Commission that a renewed exemption has been granted.
	(c)  Any assessment remitted to the Commission between the expiration of an exemption and the approval of a petition for renewal of the exemption shall be non-refundable.
	(d)(i)  The end-user shall bear the sole responsibility to know the expiration date of an exemption granted to the end-user and to ensure that an application for renewal is filed at least 30 days prior to the date of expiration.
	(ii)  At any proceeding to review a petition for renewal of an exemption, evidence that the end-user was unaware of the expiration date shall be inadmissible.
	(iii)  A petition for renewal of an exemption is deemed granted unless the Commission issues an order of denial within 30 days of the date on which the petition is filed.

R746-8-302.  UUSF Surcharge Remittances.
	Providers shall collect and remit surcharge revenues to the Commission as follows:
	(1)  If, over a period of six months, the average monthly UUSF surcharge collections total $1,000 or more, the provider shall remit the funds:
	(a)  on a monthly basis; and
	(b)  within 45 days of the last calendar day of each month.
	(2)  If, over a period of six months, the average UUSF surcharge collections are less than $1,000 per month, the provider shall accrue the UUSF surcharge collections and submit the accrued collections every six months.

R746-8-400.  UUSF Distributions.
R746-360-6.  Eligibility for Fund Distributions.
	A.  Qualification --
	1.  To qualify to receive USF support funds, a telecommunications corporation shall be designated an "eligible telecommunications carrier," pursuant to 47 U.S.C. Section 214(e), and shall be in compliance with Commission orders and rules. Each telecommunications corporation receiving support shall use that support only to provide basic telecommunications service and any other services or purposes approved by the Commission.
	2.  Additional qualification criteria for Incumbent telephone corporations - In addition to the qualification criteria of R746-360-6A.1.,
	a.  Non-rate-of-return Incumbent telephone corporations, except Incumbent telephone corporations subject to pricing flexibility pursuant to 54-8b-2.3 shall make Commission approved, aggregate rate reductions for public telecommunications services, provided in the State of Utah, equal to each incremental increase in USF distribution amounts received after December 1, 1999.
	b.  Rate-of-return Incumbent telephone corporations shall complete a Commission review of their revenue requirement and public telecommunications services' rate structure prior to any change in their USF distribution which differs from a prior USF distribution, beginning with the USF distribution for December, 1999.
	B.  Rate Floor.
	1.  Unless a petition brought pursuant to Subsection (B)(2) is granted after adjudication, to be eligible for USF subsidization, a telecommunications corporation shall charge, at a minimum, the following Affordable Base Rate for basic telecommunications service:
	a.  As of July 1, 2016, $18 per line; and
	b.  As of July 1, 2017, $20 per line.
	2.a.  A telecommunications corporation may petition the Commission to deviate from the Affordable Base Rate set forth in this Subsection (B)(1).
	b.  A telecommunications corporation that files a petition under this Subsection (B)(2)(a) shall:
	i.  demonstrate that the Affordable Base Rate is not reasonable in the particular geographic area served; or
	ii.  impute income up to the Affordable Base Rate in calculating the telecommunications corporation's state USF subsidization.
	C.  Lifeline Requirement -- A telecommunications corporation may qualify to receive distributions from the fund only if it offers Lifeline service on terms and conditions prescribed by the Commission.
	D.  Exclusion of Resale Providers -- Only facilities-based providers, will be eligible to receive support from the fund.  Where service is provided through one telecommunications corporation's resale of another telecommunications corporation's service, support may be received by the latter only.

R746-360-8.  Calculation of Fund Distributions in Rate-of-Return Incumbent Telephone Corporation Territories.
	(A)  Determination of Support Amounts --
	(1)  Incumbent telephone corporation - Monies from the fund will equal the numerical difference between the Incumbent telephone corporation's total embedded costs of providing public telecommunications services, for a designated support area, less the product of the Incumbent telephone corporation's Average Revenue Per Line, for the designated support area, times the Incumbent telephone corporation's active access lines in the designated support area.  To the extent the Commission finds that inclusion of any cost will result in an inefficient use of USF funds or in a use of USF funds that is inconsistent with the public interest, such cost will be excluded from total embedded costs.  Total embedded costs shall include a weighted average rate of return on capital of the intrastate and interstate jurisdictions.  For example, in the case of an Incumbent telephone corporation whose costs are allocated fifty percent to each jurisdiction and whose interstate return is 11.25 percent and whose intrastate return authorized by the Commission is 9 percent, the weighted average return on capital would be 10.125 percent.
	(a)  In order to determine the interstate return on capital to calculate the weighted average rate of return on capital for Incumbent telephone corporations, the Commission shall:
	(i)  use the prior year return reported by the National Exchange Carriers Association (NECA) to the Federal Communications Commission (FCC) on FCC Form 492 for Incumbent telephone corporations that do separations between intrastate and interstate jurisdictions under 47 CFR Part 36.  In the event that the Incumbent local telephone corporation uses a future test period as provided in Utah Code Ann. Subsection 54-4-4(3)(b)(i), the interstate return for these Incumbent telephone corporations shall be the average of the actual return for the prior three years as reported on FCC Form 492.
	(ii)  use NECA's most recent interstate allocation computation filed at the FCC under 47 CFR Part 69.606 and the actual interstate return on capital reported by NECA as described in R746-360-8 A.1.a.i. for average schedule Incumbent telephone corporations.
	(iii)  use the actual interstate return of an Incumbent telephone corporation's relevant tariff group reported to the FCC in its most recent FCC Form 492A for Incumbent telephone corporations that are regulated on a price-cap basis in the interstate jurisdiction.
	(2)  Telecommunications corporations other than Incumbent telephone corporations - Monies from the fund will equal the respective Incumbent telephone corporation's average access line support amount for the designated support area, determined by dividing the Incumbent telephone corporation's USF monies for the designated support area by the Incumbent telephone corporation's active access lines in the designated support area, times the eligible telecommunications corporation's number of active access lines in the designated support area.
	(B)  Lifeline Support -- Eligible telecommunications corporations shall receive additional USF funds to recover any discount granted to lifeline customers, participating in a Commission-approved Lifeline program, that is not recovered from federal lifeline support mechanisms.
	(C)  Exemptions -- Telecommunications corporations may petition to receive an exemption for any provision of this rule or to receive additional USF support, for use in designated support areas, to support additional services which the Commission determines to be consistent with universal service purposes and permitted by law.

R746-8-401.  Rate-of-Return Regulated Incumbent Providers.
	(1)  A rate-of-return regulated incumbent provider is eligible for ongoing UUSF support if the provider:
	(a)  meets the definition of an ETC set forth in Subsection R746-8-200;
	(b)  is in compliance with Commission orders and rules;
	(c)  unless a petition brought pursuant to Subsection R746-8-401(2) is granted after adjudication, charges, at a minimum,
$18 per access line;
	(d)  offers Lifeline service on terms and conditions prescribed by the Commission;
	(e)  operates as a facilities-based provider, not a reseller; and
	(f)  in compliance with R746-8-401(3), demonstrates through an adjudicative proceeding that its costs to provide access lines in its designated support area exceed its revenues from providing access lines in its designated support area.
	(2)(a)  A rate-of-return regulated incumbent provider may petition the Commission to deviate from the affordable base rate set forth in Subsection R746-8-401(1)(c).
	(b)  A rate-of-return regulated incumbent provider that files a petition to deviate from the affordable base rate shall:
	(i)  demonstrate that the affordable base rate is not reasonable in the provider's designated support area; or
	(ii)  impute income up to the affordable base rate in calculating the provider's UUSF disbursement.
	(3)  The calculation of a rate-of-return regulated provider's ongoing UUSF distribution shall conform to the following standards:
	(a)(i)  The provider's rate of return shall be equal to the weighted average cost of capital rate of return prescribed by the FCC for rate-of-return regulated carriers, as of the date of the provider's application for support, and as follows:
	(A)  beginning July 1, 2016: 11.0%
	(B)  beginning July 1, 2017: 10.75%;
	(C)  beginning July 1, 2018: 10.5%;
	(D)  beginning July 1, 2019, 10.25%;
	(E)  beginning July 1, 2020, 10.0%; and
	(F)  beginning July 1, 2021, 9.75%.
	(ii)  The provider's depreciation costs shall be calculated through:
	(A)  the single-asset straight-line methodology; or
	(B)(I)  a group methodology that complies with FCC Part 32, Subpart 32.2000(g)(1)(i); and
	(II)  regardless of the methodology used, be calculated so as to depreciate each individual unit within an asset group at an even rate and over the full period of time prescribed in the provider's Commission-approved depreciation schedules.
	(4)  Beginning July 2017, and yearly thereafter, unless the provider files with the Commission a petition for review of its UUSF disbursement, the Division shall adjust each provider's monthly distribution according to:
	(i)  the current FCC rate of return as set forth in R746-8-401(3)(a); and
	(ii)  the provider's financial information from its last UUSF review.

R746-360-7.  Calculation of Fund Distributions in Non-rate-of-Return Regulated Incumbent Telephone Corporation Territories.
	A.  Use of Proxy Cost Models -- The USF proxy cost model(s) selected by the Commission and average revenue per line will be used to determine fund distributions within designated support areas.
	B.  Use of USF Funds --Telecommunications corporations shall use USF funds to support each primary residential line in active service which it furnishes in each designated area.
	C.  Determination of Support Amounts --
	1.  Incumbent telephone corporation - Monies from the fund will equal the numerical difference between USF proxy model cost estimates of costs to provide residential Basic Telecommunications Service in the designated support area and the product of the Incumbent telephone corporation's Average Revenue per line, for the designated support area, times the number of Incumbent telephone corporation's active residential access lines in the designated support area.
	2.  Telecommunications corporations other than Incumbent telephone corporations - Monies from the fund will equal the Incumbent telephone corporation's average residential access line support amount for the respective designated support area, determined by dividing the Incumbent telephone corporation's USF monies for the designated support area by the Incumbent telephone corporation's active residential access lines in the designated support area, times the eligible telecommunications corporation's number of active residential access lines.
	D.  Lifeline Support -- Eligible telecommunications corporations shall receive additional USF funds to recover any discount granted to lifeline customers, participating in a Commission approved Lifeline program, that is not recovered from federal lifeline support mechanisms.
	E.  Exemptions -- Telecommunications corporations may petition to receive an exemption for any provision of this rule or to receive additional USF support, for use in designated support areas, to support additional services which the Commission determines to be consistent with universal service purposes and permitted by law.

R746-8-402.  Non-rate-of-return Regulated Incumbent Providers.

PLACEHOLDER

R746-8-403.  Lifeline Support.
R746.  Public Service Commission, Administration.
R746-341.  Lifeline Rule.
R746-341-1.  Applicability.
	This Rule applies to each telecommunications corporation that is designated as an eligible telecommunications carrier (ETC) by the Commission, pursuant to 47 U.S.C. 214.

R746-341-2.  Definitions.
	A.  "Account holder" -- means the person responsible to pay the Lifeline account bills.
	B.  "Applicant" -- means an ETC's customer, residing in an ETC's service area, who fills out an application for Lifeline service.
	C.  "ETC" -- means an eligible telecommunications carrier.
	D.  "Federal ETC" -- means an ETC that qualifies for, and participates in, only the federal Lifeline program.
	E.  "Federal Poverty Guidelines" -- means the poverty guidelines issued each year by the Department of Health and Human Services and published in the Federal Register.
	F.  "Household" -- means a single person or group of individuals who meet the definition of mutual support contained in the federal Lifeline rules established pursuant to 47 U.S.C. 214.
	G.  "Income" -- means income as defined in 47 CFR Section 54.400 and includes gross income, whether earned or unearned, received by all members of the household including, but not limited to, salary before deductions.  Income shall not include student financial aid, military housing and cost-of-living allowances, or irregular income from occasional small jobs.
	H.  "Lifeline" -- means either federal or state programs defined by 47 CFR Section 54.401(a) and this rule.
	I.  "NLAD" -- means the National Lifeline Accountability Database as provided for in 47 CFR Section 54.404.
	J.  "Participant" -- means an ETC's customer currently receiving a Lifeline benefit.
	K.  "Program administrator" -- means the state government agency with which the Commission contracts to administer the initial eligibility verification and continued eligibility verification, of the State Lifeline participants.
	L.  "State ETC" -- means an ETC that participates in both the federal and state Lifeline programs.

R746-341-3.  Eligibility Requirements.
	A.  Initial Program-Based Criteria -- An ETC shall provide Lifeline telephone service to an applicant's household which, using an approved application form, is verified by either the program administrator (for State ETCs), or by a federal ETC, in compliance with the procedures set forth in 47 CFR 54.410(c), to be eligible for public assistance under one of the following or its successor programs:
	1.  Medicaid;
	2.  Supplemental Nutrition Assistance Program (SNAP or Food Stamps);
	3.  Supplemental Security Income (SSI);
	4.  Federal Public Housing Assistance (Section 8); or
	5.  Veterans Pension and Survivors Pension Benefit.
	B.  Tribal Residents -- A consumer who lives on Tribal lands is eligible for Lifeline service as a "qualifying low-income consumer" as defined by Section 54.400(a) and as an "eligible resident of Tribal lands" as defined by Section 54.400(e) if that consumer meets the qualifications for Lifeline specified Section A. or if the consumer, one or more of the consumer's dependents, or the consumer's household participates in one of the following Tribal-specific federal assistance programs:
	1.  Bureau of Indian Affairs General Assistance;
	2.  Tribally-Administered Temporary Assistance for Needy Families (TTANF);
	3.  Head Start (if income eligibility criteria are met); or
	4.  Food Distribution Program on Indian Reservations (FDPIR).
	C.  Initial Income-Based Criteria -- An ETC shall provide Lifeline telephone service to an applicant who certifies via supporting documentation (to either the ETC for federal ETC customers, or the program administrator for state ETC customers), under penalty of perjury, that the applicant's household income is at or below 135 percent of the then applicable Federal Poverty Guidelines.
	1.  Income-based eligibility is based on family size and actual income; therefore, an applicant shall certify, under penalty of perjury, the number of individuals residing in the household.
	2.  An applicant shall certify, under penalty of perjury, that the documentation presented accurately represents the applicant's annual household income.  The following documents, or any combination of these documents, are acceptable for Lifeline certification;
	a.  Prior year's state, federal, or tribal tax return;
	b.  Current year-to-date earnings statement from an employer or three consecutive months of paycheck stubs within the previous twelve months;
	c.  Social Security statement of benefits;
	d.  Veterans Administration statement of benefits;
	e.  Retirement/pension statement of benefits;
	f.  Unemployment/Workers Compensation statement of benefits;
	g.  Federal or tribal notice letter of participation in Bureau of Indian Affairs General Assistance; or
	h.  Divorce decree or child support wage assignment statement.
	D.  In order to be approved as a qualifying low-income consumer, an applicant must not already be receiving a Lifeline service, and there must not be anyone else in the applicant's household subscribed to a Lifeline service.
	E.  Eligibility Certification -- The application form for participation shall be supplied by the ETC or the program administrator and shall be consistent with both the federal requirements, then in effect, and any additional information requirements of the program administrator, and shall include:
	1.  a statement, under penalty of perjury, as to whether the person is participating in one of the programs listed in Subsection R746-341-3(A) or qualifies under other federal eligibility criteria; or a statement, under penalty of perjury, as to whether the person's household income is at or below 135 percent of the current Federal Poverty Guidelines;
	2.  if qualified by income-based criteria, a statement, under penalty of perjury, that identifies the number of individuals residing in the household and affirms that the documentation presented to support eligibility accurately represents the applicant's household income;
	3.  a statement that if the applicant is later shown to have submitted false information in an attempt to qualify for the Lifeline program, the applicant shall be responsible to re-pay the benefits received; and
	4.  the signature of the applicant, either physical or electronic.
	F.  False Certification Penalties -- A participant who does not qualify, but who has submitted false documentation or statements to qualify for the Lifeline program, is responsible to re-pay the value of the benefits received to the state Lifeline program, and is subject to whatever penalties are then current for the federal Lifeline program.
	G.  Tribal Land Lifeline Discounts - This rule does not govern or otherwise affect the Tribal Land Lifeline Discount program.

R746-341-4.  Duties of the Program Administrator.
	A.  Initial Eligibility
	1.  The program administrator shall process all applications submitted for participation in the state Lifeline telephone service program.  The program administrator shall check the NLAD for pre-existing participation if possible.  The program administrator shall inform the applicant and the state ETC of the results of the application process.
	B.  Annual Eligibility Verification
	1.  The program administrator shall verify on an annual basis the continuing eligibility status of state ETC Lifeline telephone service participants.  The annual eligibility verification shall be performed on the participant list as defined by the FCC in its May 22, 2013 Public Notice in Docket No. 11-42 and any subsequent FCC guidance.
	2.  The annual eligibility verification shall be performed by the program administrator using the same process as outlined in the de-enrollment process in R746-341-4.C. and in accordance with 47 CFR Section 54.410(f)(3).
	3.  The program administrator shall provide results of the annual recertification efforts to the ETCs pursuant to 47 CFR Section 54.410(f)(4) and will provide all necessary FCC Form 555 information to ETCs no later than five days prior to the first business day of the anniversary enrollment month of the participant.
	C.  De-Enrollment Process
	1.  The program administrator shall manage the de-enrollment process for state ETC Lifeline participants who are no longer eligible for the program.  Upon an initial finding that a Lifeline recipient is no longer eligible to participate in the state the Lifeline program, the program administrator shall send a notice to the participant explaining the participant's Lifeline telephone service benefit will be discontinued after 60 days unless the participant verifies continuing eligibility before that date.  The notice shall include the reason(s) for the recipient being ineligible and a description of the options available to the recipient to demonstrate eligibility.
	2.  At the end of 60 days, if the participant has not demonstrated continuing eligibility, the program administrator shall notify the relevant state ETC to discontinue the ineligible participant's Lifeline telephone service benefit.  The benefit must be discontinued in the month following notification; thus the next month's benefit cannot be provided.
	3.  Ineligible past participants may reapply for the Lifeline program, but must do so by submitting a completed application to the program administrator for state program participation, or to a federal ETC for federal only participation, in accordance with the application process in R746-341-3.
	D.  Participants Switching Between ETCs -- When a current Lifeline telephone service participant desires to change to a different ETC's Lifeline telephone service, the participant and ETCs shall follow the established NLAD procedures.  A participant who is not able to complete the switch due to unresolved problems may seek the assistance of the Division of Public Utilities requesting help in resolving the issue.
	E.  Documentation Retention -- The program administrator shall retain income and program eligibility certification documentation, in electronic format, for as long as required by then current federal Lifeline policies.  Copies of the relevant documentation shall be made available on request to auditors from either the federal Lifeline telephone service program or the state Lifeline telephone service program.

R746-341-5.  Duties of ETCs.
	A.  State ETCs
	1.  Each state ETC shall, monthly, send to the program administrator changes in the status of the Lifeline participants to whom the state ETC provides Lifeline telephone service, including, but not limited to:
	a.  participants changing residence locations (addresses);
	b.  participants switching carriers; or
	c.  customers who no longer receive telephone service.
	2.  The records sent shall contain the full identifying information for each participant as required by the program administrator's policies.
	3.  Each state ETC shall provide information to potential applicants regarding how to receive an application from the program administrator.  This information shall be provided in person, on the phone, in written format at the ETC's offices, and online at the ETC's website.
	4.  Each state ETC shall add the Lifeline discount to a customer's account, as directed by the program administrator, within five business days.
	5.  Each state ETC shall remove the Lifeline discount from a participant's account as directed by the program administrator within five business days of notification of the participant's ineligible status.
	6.  Each state ETC shall update the NLAD whenever it implements changes in a participants' Lifeline status in accordance with the requirements for NLAD updates found in 47 CFR Section 54.404.
	7.  If a Lifeline participant seeks to switch service to a different ETC, the program administrator shall be notified by the participant of their desire to switch Lifeline providers. Once informed by the program administrator of the applicant's eligibility, the involved ETCs shall follow all applicable NLAD procedures to accomplish the participant's desired switch.
	8.  Annually, each state ETC shall send the program administrator the participant list as defined by the FCC in its May 22, 2013 Public Notice in Docket No. 11-42 and any subsequent FCC guidance.  The list shall be provided to the program administrator by May 1 of each year.  The list shall contain the identifying information as required by the program administrator's policies.
	9.  If a state ETC has a reasonable basis to believe a Lifeline telephone service participant no longer qualifies for Lifeline service, the ETC shall promptly inform the program administrator and provide the documentation, or reason, for its belief.
	10.  A state ETC shall cooperate with the Division of Public Utilities to resolve Lifeline service complaints the Division brings to the state ETC's attention.
	B.  Federal ETCs
	Each designated federal ETC shall operate in the State of Utah subject to the conditions outlined in the commission order granting ETC status, the applicable provisions of this rule, and in accordance with the federal Lifeline program requirements.
	1.  Each federal ETC shall update the NLAD to reflect the ETC's initial eligibility verification decision and the participant's Lifeline status whenever the federal ETC adds or removes a Lifeline customer.
	2.  Each federal ETC shall update the NLAD with all changes in the ETC's participants' Lifeline status.
	3.  If a Lifeline participant seeks to switch service to a different ETC the ETCs shall follow all applicable NLAD procedures to accomplish the participant's desired switch.
	4.  A federal ETC shall cooperate with the Division of Public Utilities to resolve Lifeline service complaints the Division of Public Utilities brings to a federal ETC's attention.

R746-341-6.  State Lifeline Telephone Service Features.
	A.  Discounts -- Lifeline telephone service provided by state ETCs shall consist of dial tone line, usage charges or their equivalent, and authorized Extended Area Service (EAS) charges, less a discount of $3.50 and all other matching funds established by the Federal Communication Commission.
	B.  Service Characteristics -- State Lifeline telephone service shall include all features listed in Utah Code Ann. Section 54-8b-2(2).
	C.  Deposits -- When customer security deposits are otherwise required they shall be waived for Lifeline telephone service participants if the customer voluntarily elects to receive toll blocking.
	D.  Nonrecurring Charge Waiver -- Lifeline telephone service participants shall receive a waiver of the nonrecurring service charge for changing the type of local exchange usage service to Lifeline service, or changing from flat rate service to message rate service, or vice versa, but only one such waiver shall be allowed during a given 12-month period.
	E.  Disconnection -- Lifeline telephone service shall not be disconnected for nonpayment of toll service.
	F.  Restrictions -- Lifeline telephone service shall be subject to the following restrictions:
	1.  Lifeline telephone service shall only be provided to the applicant's principal residence.
	2.  A Lifeline telephone service participant shall only receive a Lifeline discount on one single residential access line.
	G.  Other Services -- A Lifeline telephone service participant may not be required to purchase other services from the state ETC, nor prohibited from purchasing other services unless the participant has failed to comply with the state ETC's terms and conditions for those services.

R746-341-7.  Federal Lifeline Telephone Service Features.
	Federal Lifeline telephone service consists of those features and conditions set forth in the applicable commission docket in which the federal ETC status was granted, as modified by subsequent orders and R746-341.E

R746-341-8.  State ETC Reporting Requirements.
	Reporting Requirements -- State ETCs shall submit, to the Division of Public Utilities, a semi-annual report, for the periods through June 30 and December 31, of each year, containing a description of the state ETC's Lifeline program.  The reports shall also contain monthly information on:
	A.  the forgone revenue resulting from the discounts provided to Lifeline participants, if any;
	B.  the amounts of administrative expenses;
	C.  interest accrual amounts on Lifeline funds, if any;
	D.  the number of Lifeline telephone service participants by exchange area per month; and
	E.  a detailed report of outreach efforts.

R746-341-9.  Funding of Lifeline.
	Cost Recovery -- The total cost of providing the state portion of Lifeline telephone service, including commission approved administrative costs of the state ETCs and the costs incurred by the program administrator, shall be recovered and funded as provided in Utah Code Ann. Section 54-8b-15.

R746-341-10.  Collection and Disbursement of Lifeline Funds.
	State ETC Payment -- Within 30 days after the review audit of a state ETC's semi-annual report by the Division of Public Utilities results in a favorable recommendation, the Public Service Commission shall disburse an amount equal to the ETC's semi-annual Lifeline program expenses and Lifeline discounts granted. For amounts the Division of Public Utilities disallows, the state ETC may petition the Commission to open a docket to examine the reasonableness of the denied amounts.

	(1)  	In addition to any disbursement calculated under R746-8-401 or R746-8-402, an ETC may receive an ongoing distribution through ongoing participation in a Commission-approved Lifeline program.
	(2)  The support claimed under this Subsection R746-8-403 may not exceed the following limits:
	(3)  $3.50 per Lifeline subscriber per month of subscription to a service that:
	(a)(i)  meets FCC broadband Lifeline requirements; and
	(ii)  allows, at no charge beyond the basic monthly fee, unlimited texting and at least 750 voice minutes per month.
	(b)  $2.00 per Lifeline subscriber per month of subscription to a service that:
	(i)  meets FCC broadband Lifeline requirements; and
	(ii)  does not include a voice component.
	(3)  An ETC that is approved to participate in the Commission Lifeline program shall:
	(a)  provide potential Lifeline subscribers with application materials and information;
	(b)  provide service to any customer who is verified as eligible for participation through the FCC's national verifier system;
	(c)  waive, for Lifeline subscribers, the following charges:
	(i)  customer security deposits, if the customer voluntarily elects to receive toll blocking; and
	(ii)  within any 12-month period, the first nonrecurring service charge for:
	(A)  changing local exchange usage service to Lifeline service; and
	(B)  changing from flat rate service to message rate service;
	(d)(i) add the Lifeline discount to a customer's account within five business days of notification of the customer's eligibility; and;
	(ii)  remove the Lifeline discount from a Lifeline subscriber's account within five business days of notification of the Lifeline subscriber's ineligibility; and
	(e)  submit the following reports to the Division:
	(i)  a monthly report setting forth the number of:
	(A)  Lifeline subscribers who have changed their residence locations (addresses);
	(B)  Lifeline subscribers who have switched carriers; and
	(C)  Lifeline subscribers who no longer receive telephone service;
	(ii)  a semi-annual report, for the periods from January 1 through June 30 and from July 1 through December 31 of each year, setting forth monthly data as to:
	(A)  the forgone revenue resulting from the discounts provided to Lifeline subscribers, if any;
	(B)  the total administrative expenses;
	(C)  interest accrual amounts on Lifeline funds, if any;
	(D)  the number of Lifeline telephone service subscribers by exchange area per month;
	(E)  a detailed report of outreach efforts; and
	(F)  any other data required or requested by the Division; and
	(iii)  by May 1 of each year, a complete Lifeline subscriber list, as defined by the FCC.
	(4)  An ETC participating in the Commission Lifeline program may not:
	(a)  disconnect Lifeline telephone service for nonpayment of toll service;
	(b)  require a Lifeline subscriber to purchase additional services from the ETC; or
	(c)  prohibit a Lifeline subscriber from purchasing additional services from the ETC, unless the participant fails to comply with the ETC's terms and conditions for those additional services.

R746-360-9.  One-Time Distributions From the Fund.
	A.  Applications for One-Time Distributions -- Telecommunications corporations, whether they are or are not receiving USF funds under R746-360-7 or R746-360-8, potential customers not presently receiving service because facilities are not available, or customers receiving inadequate service may apply to the Commission for one-time distributions from the fund for extension of service to a customer, or customers, not presently served or for amelioration of inadequate service.
	1.  These distributions are to be made only in extraordinary circumstances, when traditional methods of funding and service provision are infeasible.
	2.  One-time distributions will not be made for:
	a.  New subdivision developments;
	b.  Property improvements, such as cable placement, when associated with curb and gutter installations; or
	c.  Seasonal developments that are exclusively vacation homes.
	i.  Vacation home is defined as: A secondary residence which is primarily used for recreation and is unoccupied for a period of four consecutive weeks per year.
	3.  An application for a one-time distribution may be filed with the Commission by an individual or group of consumers desiring telephone service or improved service, a telecommunications corporation on behalf of those consumers, the Division of Public Utilities, or any entity permitted by law to request agency action.  An application shall identify the service(s) sought, the area to be served and the individuals or entities that will be served if the one-time distribution is approved.
	4.  Following the application's filing, affected telecommunications corporations shall provide engineering, facilities, costs, and any other pertinent information that will assist in the Commission's consideration of the application.
	5.  In considering the one-time distribution application, the Commission will examine relevant facts including the type and grade of service to be provided, the cost of providing the service, the demonstrated need for the service, whether the customer is within the service territory of a telecommunications corporation, whether the proposed service is for a primary residence, the provisions for service or line extension currently available, and other relevant factors to determine whether the one-time distribution is in the public interest.
	B.  Presumed Reasonable Amounts and Terms -- Unless otherwise ordered by the Commission, the maximum one-time distribution will be no more than $10,000 per customer for customers of rate-of-return regulated companies.  For customers of non-rate of return companies, the maximum one-time distribution shall be calculated so that the required customer payments would equal the payments required from a customer of a rate-of-return regulated company.  The Commission will presume a company's service or line extension terms and conditions reasonable, for a subscriber in connection with one-time universal service fund distribution requests, if the costs of service extension, for each extension, are recovered as follows:
	1.  For rate-of-return regulated Local Exchange Carriers who request USF One-Time Distribution support for facility placement:  The first $2,500 of cost coverage per account is provided by the company; and for cost amounts exceeding $2,500 per account up to two times the statewide average loop investment per account for rate-of-return regulated telecommunication companies, as determined annually by the Division of Public Utilities, the company will pay 50 percent of the costs of the project.
	2.  For non-rate-of-return Local Exchange Carriers who request USF One-Time Distribution support for facility placement the first $2,500 of cost coverage per account is provided by the company; and all other costs are shared between the customer and the fund as provided herein.
	3.  For projects that exceed $2,500 per account, but are equal to or less than $10,000 per account, the customer shall pay 25 percent of the costs that exceed $2,500.  For projects that exceed $10,000 per account, but are equal to or less than $20,000 per account, the customer shall pay 50 percent of the costs that are greater than $10,000 plus the previously calculated amount.  For projects exceeding $20,000 per account the customer shall pay 75 percent of the cost above $20,000 until the State Universal Service Support Fund has paid the maximum amount as provided herein, any project costs above that level will be paid for 100 percent by the customer.
	4.  The State Universal Service Support Fund shall pay the difference between the sum of the defined company contributions plus customer contribution amounts and the total project cost up to the maximum amount provided herein.  To the extent the Commission finds that inclusion of any cost will result in an inefficient use of USF funds or in a use of USF funds that is inconsistent with the public interest, such cost will be excluded from the total project cost.
	5.  Other terms and conditions for service extension shall be reviewed by the Commission in its consideration of an application and may be altered by the Commission in order to approve the use of universal service funds through the requested one-time distribution.
	C.  Combination of One-Time Distribution Funds with Additional Customer Funds and Future Customer Payment Recovery --
	1.  At least 51 percent of the potential customers must be full-time residents in the geographic area being petitioned for and must be willing to pay the initial up-front contribution to the project as calculated by the Commission or its agent.
	2.  Qualified customers in the area shall be notified by the telecommunications corporation of the nature and extent of the proposed service extension including the necessary customer contribution amounts to participate in the project.  Customer contribution payments shall be made prior to the start of construction.  In addition to qualified customers, the Local Exchange Company needs to make a good faith effort to contact all known property owners within the geographic boundaries of the proposed project and invite them to participate on the same terms as the qualified customers.  Local Exchange Companies may ask potential customers to help in the process of contacting other potential customers.
	3.  New developments and empty lots will not be considered in the cost analysis for USF construction projects unless the property owner is willing to pay the per account costs for each lot as specified in this rule.
	4.  Potential customers who are notified and initially decline participation in the line extension project, but subsequently decide to participate, prior to completion of the project, may participate in the project if they make a customer contribution payment, prior to completion of the project, of 105 percent of the original customer contribution amount.
	5.  For a period of five years following completion of a project, new customers who seek telecommunications service in the project area, shall pay a customer contribution payment equal to 110 percent of the amount paid by the original customers in the project.
	6.  The telecommunications corporation shall ensure that all customer contribution payments required by R746-360-9(C)(3), (4), and (5) are collected.  Funds received through these payments shall be sent to the universal service fund administrator.  The company is responsible for tracking and notification to the Commission when the USF has been fully compensated.  All monies will be collected and reported by the end of each calendar year, December 31st.
	7.  For each customer added during the five-year period following project completion, the telecommunications corporation and new customers shall bear the costs to extend service pursuant to the company's service or line extension terms and conditions, up to the telecommunications corporation's original contribution per customer for the project and the customer contributions required by this rule.  The company may petition the Commission for a determination of the recovery from the universal service fund and the new customer for costs which exceed this amount.
	D.  Impact of Distribution on Rate of Return Companies -- A one-time distribution from the fund shall be recorded on the books of a rate base, rate of return regulated LEC as an aid to construction and treated as an offset to rate base.
	E.  Notice and Hearing -- Following notice that a one-time distribution application has been filed, any interested person may request a hearing or seek to intervene to protect his interests.
	F.  Bidding for Unserved Areas -- If only one telecommunications corporation is involved in the one-time distribution request, the distribution will be provided based on the reasonable and prudent actual or estimated costs of that company.  If additional telecommunications corporations are involved, the distribution will be determined on the basis of a competitive bid.  The estimated amount of the one-time distribution will be considered in evaluating each bid.  Fund distributions in that area will be based on the winning bid.

R746-8-404.  One-time UUSF Distribution.

PLACEHOLDER

R746-360-10.  Altering the USF Charges and the End-User Surcharge Rates.
	The uniform surcharge shall be adjusted periodically to minimize the difference between amounts received by the fund and amounts disbursed.

R746-360-11.  Support for Schools, Libraries, and Health Care Facilities.  Calculation of Fund Distributions.
	The Universal Service Fund rules for schools, libraries and health care providers, as prescribed by the Federal Communications Commission in Docket 96-45, 97-157 Sections X and XI, paragraphs 424 - 749, of Order issued May 8, 1996, and CFR Sections 54.500 through 54.623 inclusive, incorporated by this reference, is the prescribed USF method that shall be employed in Utah.  Funding shall be limited to funds made available through the federal universal service fund program.

R746.  Public Service Commission, Administration.
R746-343.  Rule for Deaf, Severely Hearing or Speech Impaired Person.
R746-343-1.  Purpose and Authority.
	This rule is to establish a program as required in Section 54-8b-10 which will provide telecommunication devices to certified deaf, or severely hearing or speech impaired persons, who qualify under certain conditions, and to provide a dual relay system using third party intervention to connect deaf or severely hearing or speech impaired persons with normal hearing persons by way of telecommunication devices.

R746-8-405.  UUSF Support for Deaf, Hard of Hearing, or Severely Speech Impaired Person.
	(1)  This rule governs a program to provide telecommunication devices and services to qualifying deaf, hard of hearing, or severely speech impaired persons

R746-343-2.  Definitions.
	A.  Definitions
	1.  "Applicant" is a person applying for a Telecommunication Device for the Deaf, signal device, or other communication device.
	2.  "Audiologist" is a person who has a Master's or Doctoral degree in Audiology, is licensed in Audiology in Utah, and holds the Certificate of Clinic Competence in Audiology from the American Speech/Language/Hearing Association, or its equivalent.
	3.  "Deaf" is a hearing loss that requires the use of a TDD to communicate effectively on the telephone.
	4.  "Provider" is a service provider who agrees to be, if determined by the Public Service Commission, the administrator of the program or a portion of the program.
	5.  "Distribution center" is a facility authorized by the provider to distribute TDDs and signal devices, personal communicators, or other devices required by a recipient to communicate effectively on the telephone.
	6.  "Dual relay system" is the provision of voice and teletype communication between users of TDDs and other parties.
	7.  "Otolaryngologist" is a licensed physician specializing in ear, nose and throat medicine.
	8.  "Recipient" is a person who receives a TDD, signal device, personal communicator, or other device to communicate effectively on the telephone.
	9.  "Speech language pathologist" is a person who has a Master's or Doctoral degree in Speech Language Pathology in Utah, and holds the Certificate of Clinical Competence in Speech/Language Pathology from the American Speech Language Hearing Association, or its equivalent.
	10.  "Severely hearing impaired" is a hearing loss that requires use of TDD to communicate effectively on the telephone.
	11.  "Severely Speech Impaired" is a speech handicap, or disorder, that renders speech on an ordinary telephone unintelligible.
	12.  "Signal device" is a mechanical device that alerts a deaf, deaf-blind, or severely hearing impaired person of an incoming telephone call.
	13.  "Telecommunications Device for the Deaf, or TDD, is an electrical device for use with a telephone that utilizes a key board.  It may also have an acoustic coupler, display screen or braille display to transmit and receive messages.
	14.  "Telephone relay center" is a facility administered by the provider to provide dual relay service.
	15.  "Commission" is the Utah Public Service Commission.

	(2)  Definitions.
	(a)  "Applicant" means a person applying for:
	(i)  a telecommunication device for the deaf, hard of hearing, or severely speech impaired;
	(ii)  a signal device; or
	(iii)  another assistive communication device.
	(b)  "Audiologist" means a person who:
	(i)(A)  has a master's or doctoral degree in audiology; or
	(B)  is licensed in audiology in Utah; and
	(ii)  holds a Certificate of Clinic Competence in Audiology from the American Speech/Language/Hearing Association or its equivalent.
	(c)  "Deaf" means hearing loss that requires the use of a TDD to communicate effectively on the telephone.
	(d).  "Hard of hearing" means a hearing loss that requires use of a TDD to communicate effectively on the telephone.
	(e)  "Otolaryngologist" means a licensed physician specializing in ear, nose, and throat medicine.
	(f)  "Recipient" means a person who is approved to receive a TDD, signal device, personal communicator, or other assistive communication device.
	(g)  "Speech language pathologist" means a person who:
	(i)  has a master's or doctoral degree in Speech Language Pathology; and
	(ii)  holds a Certificate of Clinical Competence in Speech/Language Pathology from the American Speech Language Hearing Association or its equivalent.
	(h)  "Severely Speech Impaired" means a speech handicap or disorder that renders speech on an ordinary telephone unintelligible.
	(i)  "Signal device" means a mechanical device that alerts a deaf, deaf-blind, or hard of hearing person of an incoming telephone call.
	(j)  "Telecommunications Device for the Deaf" or "TDD" means an electrical device for use with a telephone that utilizes:
	(i)  a key board;
	(ii)  an acoustic coupler;
	(iii)  a display screen;
	(iv)  a braille display; or
	(v)  a tablet device or unlocked cellular telephone that is equipped with applications that allow a user to transmit and receive messages.

R746-343-3.  Eligibility Requirements.
	A.  An applicant is eligible if he is deaf, severely hearing impaired, or severely speech impaired and is eligible for assistance under a low income public assistance program.  The impairment must be established by the certification on an application form by a person who is permitted to practice medicine in Utah, an audiologist, otolaryngologist, speech/language pathologist, or qualified personnel within a state agency.  The applicant must provide evidence that they are currently eligible, though it is not necessary that they be participating in a low income public assistance program.
	C.  The provider may require additional documentation to determine applicant's eligibility.
	D.  During the training session required in Section R746-343-8, Training, the applicant must demonstrate an ability to send and receive messages with a TDD or other appropriate devices.

	(3)  Eligibility.
	(a)  At a minimum, applicants shall demonstrate that they:
	(i)  live within the State of Utah;
	(ii)  are
	(A)  deaf;
	(B)  hard of hearing; or
	(C)  severely speech impaired;
	(iii)  are eligible for assistance under a low-income public assistance program; and
	(iv)  are able to send and receive messages with a TDD or other appropriate assistive device.
	(b)  Qualification under Subsection R746-8-405(3)(a)(ii) shall be established by the certification of:
	(i) a person who is licensed to practice medicine;
	(ii)  an audiologist;
	(iii)  an otolaryngologist;
	(iv)  a speech/language pathologist; or
	(v)   qualified personnel within a state agency.

R746-343-4.  Approval of an Application.
	A.  Approved Application--
	1.  When an original application has been approved, the provider shall inform the applicant in writing of:
	a.  when the original application has been approved;
	b.  the location of the distribution center or designated place where the applicant may receive a TDD;
	c.  the date and time of the training session as required in Section R746-343-8.
	2.  When the request for a replacement TDD, signal device, or other device has been approved, the provider or the distribution center shall inform the recipient of the procedure for obtaining a replacement device.
	B.  Denied Applications--If an original application or replacement request is denied, the provider shall inform the applicant in writing of the reasons for the denial and of applicable procedures for appeal.  Denial notices shall be sent by mail.  The notice shall be accompanied by instructions on the review process.

R746-343-5.  Review by the Provider.
	A.  An applicant or recipient whose request for an original or replacement device has been denied may request that the provider review the decision.
	B.  The request for review shall be in writing and shall specify the basis for review and must be received by the provider within 30 days of the receipt of the notice of denial.
	C.  Within ten days of receiving the request for review, the provider shall inform the applicant or recipient in writing of the disposition of the request.

R746-343-6.  Review by the Commission.
	A.  Within 20 days of the notice of denial from the provider for review, the applicant or recipient may request in writing a hearing by the Commission.  The request shall specify the reasons for challenging the decision.

R746-343-7.  Distribution Process.
	A.  Distribution Centers shall:
	1.  Upon notice from the provider, distribute TDDs, signal devices, or other specified devices, to persons determined eligible under Section R746-343-3, Eligibility Requirements, and who reside in Utah;
	2.  Require each recipient or legal guardian to sign an agreement, Condition of Acceptance, form supplied by the provider;
	3.  Forward completed application forms and agreement forms to the provider;
	4.  Inform the provider of those applicants who fail to report for training and receipt of devices.
	B.  The provider shall implement a program to facilitate distribution of devices and provide training as required.
	C.  Neither the distribution center nor the provider shall be responsible for providing replacement paper for devices, the payment of the recipient's monthly telephone bill, purchase or lease cost of recipient's telephone, or the cost of replacement light bulbs for signal devices.

	(4)  Distribution process.
	(a)  If approved by the Commission to receive an assistive device, the applicant shall:
	(i)  unless Subsection R746-8-405(4)(b) applies, sign an agreement and conditions of acceptance form supplied by the Commission; and
	(ii)  report, as instructed by the Commission, for training and receipt of the approved device.
	(b)  If the recipient is a minor or is unable to sign the agreement and conditions of acceptance form, the recipient's legal guardian may sign.

R746-343-8.  Training.
	A.  The provider shall be responsible for seeing that training is provided to each recipient and legal guardian, or significant other, in accordance with guidelines established by the provider.

R746-343-9.  Replacement Devices.
	A.  The distribution center shall provide devices to persons determined by the provider to be eligible under Sections R746-343-3, Eligibility Requirements, and R746-343-8, Training, accept devices that need repair, and deliver devices returned by recipients to a repair center designated by the provider.

R746-343-10.  Ownership and Liability.
	A.  TDDs, signal devices, and other devices provided by this program are the property of the state.
	B.  A recipient or guardian shall return a TDD, signal device, or other device, to the provider or distribution center when the recipient no longer intends to reside in Utah, is no longer qualified for the program, does not need the device, or has been notified by the provider to return the device.
	C.  Other than normal usage, recipients are liable for damage to or loss of a device issued under conditions of acceptance.

	(5)  Ownership and Liability.
	(a)(i)  An assistive device provided under this rule remains the property of the State of Utah.
	(ii)  A recipient shall not remove an assistive device from the state of Utah for a period of time longer than 90 days unless the recipient obtains the written consent of the Commission.
	(b)  A recipient shall be solely responsible for the costs of:
	(i)  repair of an assistive device, other than for normal wear and tear;
	(ii)  replacement of an assistive device;
	(iii)  paper required by an assistive device;
	(iv)  telephone and internet service; and
	(v)  light bulbs required by an assistive device.	
	(c)  If an assistive device requires repair, the recipient shall return it to the Commission and may not make private arrangements for repair.

R746-343-11.  Out of State Use.
	No person shall remove a TDD, signal device, or other device from the state for a period longer than 90 days without written permission of the provider.

	(6)  Termination of Use. 	A recipient, or if applicable, the recipient's guardian, shall return an assistive device to the Commission if the recipient:
	(a)  no longer intends to reside in Utah;
	(b)  becomes ineligible pursuant to R746-8-405(3); or
	(c)  is notified by the Commission to return the device.

R746-343-12.  Dual Relay Service--Telephone Relay Center.
	A.  A telephone relay center shall provide dual relay service seven days a week, 24 hours a day, including holidays.
	B.  A telephone relay center shall hire operators with specialized communication skills who shall be salaried employees.
	C.  A telephone relay center shall require the operators to relay each message accurately, except as otherwise specifically provided in Section R746-343-14, Criminal Activity.

R746-343-13.  Confidentiality and Privacy Requirements.
	A.  Except as otherwise specifically provided in Section R746-343-14, Criminal Activity, a telephone relay center shall protect the privacy of persons to whom relay services are provided and shall require each operator to maintain the confidentiality of each telephone message.
	B.  The confidentiality and privacy of persons to whom relay services are provided will be protected by means of the following:
	1.  The relay center shall not maintain any form of permanent copies of messages relayed by their operators or allow the content of telephone messages relayed by their operators to be communicated to non-staff members.
	2.  Persons using the relay system shall not be required to provide identifying information until the party they are calling is on line, and shall only be required to identify themselves to the extent necessary to fulfill the purpose of their call.
	3.  Relay operators shall not leave messages with third parties unless instructed to do so by the person making the call.
	4.  Persons using the relay system may file complaints about the relay service to the telephone relay center or the provider, who shall review each complaint.

R746-343-14.  Criminal Activity.
	A.  Relay operators shall not knowingly transmit telephone messages that are made in furtherance of a criminal activity as defined by Utah or federal law.
	B.  The confidentiality and privacy requirements of Section R746-343-13, Confidentiality and Privacy Requirements, do not apply to telephone conversations made in furtherance of a criminal activity as defined by Utah or federal law.

R746-343-15.  Surcharge.
	A.  The surcharge will be imposed on each telephone number of each residential and business customer in this state.
	B.  The surcharge established by the Commission in accordance with Subsection 54-8b-10(4) is $.02 per month for each residential and business telephone number, subject to the limitation on surcharges related to mobile telecommunication service specified in Utah Code Ann. Subsection 54-8b-10(4)(b)(ii).
	C.  Subject to Subsection R746-343-15(D), the telephone number surcharge will be collected by each telecommunications corporation providing public telecommunications service to the customer and submitted, less administrative cost, to the Public Service Commission on a quarterly basis.
	D.  The provider will submit its budget for annual review by the Public Service Commission.
	E.  The telephone surcharge need not be collected by a telecommunications corporation if the amount collected would be less than the actual administrative costs of that collection.  In that case, the telecommunications corporation shall submit to the Commission, in lieu of the revenue from the surcharge collection, a breakdown of the anticipated costs and the expected revenue from the collection showing that the costs exceed the revenue.

R746-343-16.  R746-8-405a.  New Technology Equipment Distribution Program (NTEDP).
	(1)  Authority and Purpose.
	(a)  This rule section is promulgated pursuant to Utah Code Subsection 54-8b-10(3)(b).
	(b)  The purposes of the NTEDP are:
	(i)  to explore the feasibility of using tablet devices and/or unlocked cellular telephones to address the telecommunication needs of the deaf, severely hearing-impaired hard of hearing, and severely speech-impaired communities;
	(ii)  to determine how best to manage a program in which tablet devices and/or unlocked cellular telephones are provided; and
	(iii)  to determine the level of support services that would be required if tablet devices and/or unlocked cellular telephone devices are provided.
	(2)  Duration.  The NTEDP shall terminate no later than December 31, 2018.
	(3)  Participation.
	(a)  An individual who wishes to participate in the NTEDP shall:
	(i)  submit a completed application form to the Relay Utah office;
	(ii)  provide medical documentation of:
	(A)  deafness;
	(B)  severe hearing impairment hardness of hearing; or
	(C)  severe speech impairment;
	(iii)  demonstrate that the individual is receiving assistance from a low-income public assistance program administered by a state agency;
	(iv)(A)  if applying for a tablet, certify that the individual has consistent access to a WiFi network; or
	(B)  if applying for an unlocked cellular telephone, certify that the individual has a service plan in place with a wireless telecommunications provider; and
	(v)  certify that the individual is able and willing to comply with Subsection (4).
	(b)  Priority may be given to applicants who have previously participated in the Commission's Relay Utah program.
	(c)  An applicant who is not selected to participate may request to be placed on a waiting list.
	(d)  Participation shall be limited as follows:
	(i)  From the inception of the program through June 30, 2017, no more than 25 participants, as follows:
	(A)  no more than 8 deaf individuals who are at least 13 years old;
	(B)  no more than 8 severely hearing-impaired hard of hearing individuals who are at least 13 years old;
	(C)  no more than 8 severely speech impaired individuals who are at least 13 years old; and
	(D)  at least one deaf, severely hearing-impaired hard of hearing, or severely speech impaired individual who is under 13 years of age.
	(ii)  From July 1, 2017 through the conclusion of the program, up to 10 additional participants in each six-month period.
	(4)  Participant obligations.
	(a)  An individual who is chosen to participate in the NTEDP shall:
	(i)  participate in an entrance interview with the Relay Utah office;
	(ii)  complete online surveys as instructed by the Relay Utah office;
	(iii)  promptly comply with all instructions from the Relay Utah office to download apps;
	(iv)  promptly respond to requests from the Relay Utah office for information and feedback;
	(v)  maintain the device in the storage case provided;
	(vi)  retain all original device packaging, instructions, and information;
	(vii)  contact the manufacturer's customer service department for assistance with technical support;
	(viii)  promptly report to the Relay Utah office:
	(A)  software and hardware failures; and
	(B)  damage to the device;
	(ix)  take financial responsibility for loss of, or damage to, the device if caused by the individual's misuse or negligence; and
	(x)  immediately return the device to the Relay Utah office if the individual:
	(A)  moves from the State of Utah;
	(B)  is disqualified by the Relay Utah office from further participation in the NTEDP; or
	(C)  chooses to terminate the individual's participation in the NTEDP.
	(b)  An individual who is chosen to participate in the NTEDP may not:
	(i)  reformat or attempt to reformat the device;
	(ii)  allow any other person to use the device, except as necessary to assist the participant with telecommunications; or
	(iii)  install software, apps, or other programs not authorized by the Relay Utah office.
	(c)  A participant who fails to comply with this Subsection (4) may be disqualified from further participation in the NTEDP.
	(5)  All devices distributed as part of the NTEDP shall remain the property of the State of Utah Public Service Commission.

KEY:  Utah universal service fund, surcharges and disbursements, speech/hearing challenges, assistive devices and technology 
Date of Enactment or Last Substantive Amendment:
Notice of Continuation:
Authorizing, and Implemented or Interpreted Law:  54-3-1; 54-4-1; 54-8b-15; 54-8b-10