First Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 15-0923.01 Jennifer Berman x3286HOUSE BILL 15-1338 HOUSE SPONSORSHIP Moreno, SENATE SPONSORSHIP (None), House Committees Senate Committees Public Health Care & Human Services A BILL FOR AN ACT Concerning the creation of a pilot program to provide discounts on the purchase of wireless service to families that are eligible for basic cash assistance grants under the federal temporary assistance for needy families program administered in Colorado through the Colorado works program. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) Under federal law, low-income households meeting certain eligibility criteria may receive discounts on the purchase of either wireline telephone service or wireless telephone service under the federal lifeline program (federal program). The uniform subsidy under the federal program is $9.25 per eligible consumer, with eligible consumers residing on tribal lands receiving an additional $25. A telecommunications carrier desiring to participate in the federal program applies for designation as an eligible telecommunications carrier (ETC) from the public utilities commission with jurisdiction over the telecommunications carrier and, upon such designation, provides discounted wireline and wireless services to eligible low-income households. As reimbursement for the costs of participating in the federal program, ETCs receive funds from the federal universal service support mechanisms imposed on all telecommunications carriers for the funding of the federal program. The bill creates the lifeline benefits program to provide state support for the purchase of a discounted wireless telephone or discounted wireless service to low-income families receiving cash assistance under the federal temporary assistance for needy families program, administered in Colorado through the Colorado works program. The program provides eligible participants with a $30 discount on the purchase of a wireless telephone and a $13-per-month discount on the purchase of wireless service from an ETC participating in the program. A participating ETC is required to provide wireless telephones at a $30 discount from the retail price and wireless service at a $13 discount from the monthly retail price to eligible participants in the program. Under the program, an eligible participant who is unemployed will receive both the $30 nonrecurring subsidy for a wireless telephone and the $13 monthly recurring subsidy for wireless service. An eligible participant who is employed will receive the $30 nonrecurring subsidy for a wireless telephone but will have $13 per month deducted from the basic cash assistance grant he or she receives under the Colorado works program. Payments under the program are not considered part of an eligible applicant's income for purposes of calculating the applicant's countable income for determining eligibility for cash assistance under the Colorado works program. The department of human services, in collaboration with participating county departments that administer benefits under the Colorado works program, shall administer reimbursements to ETCs for the provision of discounted wireless telephones and discounted wireless service under the program. The department of human services shall adopt rules to implement the program and shall, on an annual basis, report to the house of representatives and senate committees that hear matters on human services on the progress of the program. The bill is repealed, effective July 1, 2020. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 26-2-725 as follows: 26-2-725. Lifeline benefits program - fund - repeal. (1) Short title. This section shall be known and may be cited as the "Lifeline Benefits Program Act". (2) Definitions. As used in this section, unless the context otherwise requires: (a) "Commercial mobile services" has the meaning set forth in 47 U.S.C. sec. 332 (d) (1). (b) "Commission" means the public utilities commission created in section 40-2-101, C.R.S. (c) "Electronic messaging service" has the meaning set forth in 47 U.S.C. sec. 153 (19). (d) "Eligible telecommunications carrier" or "ETC" means a telecommunications carrier that the commission has authorized to receive federal universal service support by designating the telecommunications carrier as an eligible telecommunications carrier pursuant to 47 U.S.C. sec. 214 (e), in compliance with the rules set forth in 47 CFR 54.201 and 54.202. (e) "Fund" means the lifeline benefits fund established pursuant to subsection (6) of this section. (f) "Lifeline benefits program" or "program" means the discount program created in subsection (3) of this section. (g) "Telecommunications" has the meaning set forth in 47 U.S.C. 153 (50). (h) "Wireless service" means the offering of commercial mobile service and electronic messaging service over a wireless telephone for a fee. (i) "Wireless telephone" means a wireless handset that operates without a physical, wireline connection to the provider's equipment. The term includes cellular and mobile telephones and handsets used with all commercial mobile services. (3) Lifeline benefits program - creation. (a) In collaboration with eligible telecommunications carriers and county departments desiring to participate, the state department shall administer the lifeline benefits program, created herein, to provide discounts on the purchase of a wireless telephone and wireless service from a participating eligible telecommunications carrier to families that are eligible for basic cash assistance grants under TANF and for discounts under the program. A county department's participation in the program is discretionary. Upon application in a form and manner determined by the state department, a participating county department shall determine if an applicant is eligible for the program. (b) (I) An applicant is eligible for discounts on the retail price of a wireless telephone and wireless service if the applicant: (A) Is eighteen years of age or older; (B) Is a member of a Colorado works program assistance unit; and (C) Is not a member of an assistance unit that has already received discounted wireless service under a separate application to the program. (II) If a participating county department determines that an applicant is eligible to receive discounts under subparagraph (I) of this paragraph (b), the state department shall authorize the payment of the following amounts to the participating ETC from which the eligible recipient has purchased a wireless telephone or wireless service: (A) A nonrecurring payment of thirty dollars for the discounted wireless telephone purchased from the participating ETC; and (B) A recurring monthly payment of thirteen dollars for the discounted wireless service purchased from the participating ETC. (III) If a participating county department determines that an eligible recipient is employed, the state department shall deduct from the eligible recipient's basic cash assistance grant the thirteen dollars per month discount paid to reimburse the participating ETC for the provision of wireless service. (c) To implement the lifeline benefits program, a participating county department shall use appropriate cash assistance funds, not otherwise restricted by the federal government, to reimburse participating ETCs for discounts provided to eligible recipients under the program. (d) Neither the state department nor a participating county department shall consider discounts provided under the lifeline benefits program as countable income when determining eligibility under the Colorado works program. (e) The state department shall provide information on its web site about the lifeline benefits program, including eligibility criteria. Each participating county department is encouraged to post on its web site information about the lifeline benefits program or a link to the state department's web site. (f) If a recipient's wireless service is discontinued because the recipient no longer receives assistance through the Colorado works program, the recipient's wireless service may be reinstated if the recipient is reinstated in the Colorado works program within twelve months of the date that the recipient enrolled or reenrolled in the lifeline benefits program. (4) Participating eligible telecommunications carriers - requirements - reimbursement. (a) In accordance with rules established by the state department, a participating eligible telecommunications carrier shall: (I) Upon receiving and verifying a program recipient's proof of eligibility under the program in a form and manner determined by the state department by rule, offer the program recipient: (A) A thirty dollar discount on the retail price of a wireless telephone if the program recipient has not received a wireless telephone under the program within the past twelve months; and (B) A thirteen dollar per month discount on the retail price of wireless service; (II) Annually certify to the state department the ETC's continued compliance with: (A) The commission's requirements for eligible telecommunications carrier designation; and (B) Additional consumer protection and minimum service obligations established by the state department by rule pursuant to paragraph (b) of subsection (5) of this section; and (III) If required by the state department by rule, promote the program throughout its service territory. (b) A participating eligible telecommunications carrier is entitled to reimbursement from the state department for providing discounted wireless telephones and discounted wireless service to program recipients. (c) To facilitate a participating ETC's obligation to verify a recipient's eligibility in the program at the point of purchase of a discounted wireless telephone or wireless service in accordance with subparagraph (I) of paragraph (a) of this subsection (4), the state department may promulgate rules providing participating ETCs with access to real-time databases or other documentation that provides information on participant enrollment in the Colorado works program. (5) Rules. (a) The state department shall promulgate rules to implement the lifeline benefits program, including rules establishing: (I) Criteria for determining whether an applicant is employed or unemployed for purposes of determining the amount of cash assistance that would be deducted from the applicant's basic cash assistance grant if the applicant were accepted into the program; (II) If the state department determines that an ETC must promote the program throughout its service territory as a condition of participating in the program, the manner in which the participating ETC must promote the program throughout its service territory; (III) The manner, timing, and frequency of reimbursement to which a participating ETC is entitled; (IV) The form and manner in which a participating ETC certifies its program compliance; (V) The form and manner in which a participating ETC certifies the amount of reimbursement to which it is entitled under the program; (VI) The form and manner in which an applicant must: (A) Certify his or her eligibility for discounts under the program; and (B) On an annual basis after the state department has made an initial determination of eligibility, recertify his or her eligibility for discounts under the program; (VII) The form and manner in which an eligible recipient in the program must demonstrate to the participating ETC in whose service territory the eligible recipient resides that the recipient: (A) Is eligible for the program, which, if authorized by the state department by rule, may be accomplished by the ETC accessing real-time databases or other documentation that provides information on participant enrollment in the Colorado works program. Any real-time database access authorized must not include disclosure of any individual's personal data. (B) Is not receiving discounted wireless service through another participating ETC or agrees to switch his or her chosen ETC; (C) Within the past twelve months, has not received a discounted wireless telephone through the program; and (D) Is not a member of an assistance unit that receives discounts under the program under a separate application into the program; and (VIII) For any discounts received by a recipient to which the recipient was not entitled due to duplication of other discounts received or ineligibility in the program, the form and manner of reimbursement to the state department, county departments, or participating ETC that provided the discounts. (b) The state department, in collaboration with the commission, shall establish by rule additional consumer protection and minimum service obligations for participating ETCs beyond the standards already required for designation as an ETC by the commission. (6) (a) The state department may solicit and accept gifts, grants, and donations for the purposes of this section, but the implementation of this section is not dependent on the receipt of gifts, grants, and donations. The state department shall transmit all moneys received through gifts, grants, or donations to the state treasurer, who shall credit them to the lifeline benefits fund, which fund is created in the state treasury. The fund consists of any moneys that may be appropriated to the fund by the general assembly and any gifts, grants, or donations that the state department may receive for the program. The moneys in the fund are subject to annual appropriation by the general assembly to the state department for the direct and indirect costs associated with implementing this section. (b) The state treasurer may invest any moneys in the fund not expended for the purpose of this section as provided by law. The state treasurer shall credit all interest and income derived from the investment and deposit of moneys in the fund to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year remain in the fund and shall not be credited or transferred to the general fund or another fund. (c) The state treasurer shall transfer all unexpended and unencumbered moneys remaining in the fund as of July 1, 2020, to the general fund. (7) Review and reporting. (a) On or before February 1, 2016, and on or before February 1 of each subsequent year, the state department shall report to the committees of the house of representatives and the senate that hear human services issues on the lifeline benefits program, including information about: (I) The number of ETCs participating in the program and the geographic areas of the state that they serve; (II) The number and geographic distribution of recipients receiving discounts through the program; (III) The amount of discounts provided under the program; (IV) The amount of reimbursements paid to participating ETCs; and (V) The amount, if any, of money owed by or recouped from recipients whose discounts under the program have been determined to be duplicative of other discounts received under the program or for which the recipients were otherwise determined to be ineligible. (b) On or before November 30, 2019, each participating county shall submit a report to the state department on its activities and outcomes concerning implementation of the lifeline benefits program. On or before February 1, 2020, the state department shall make a final report to the committees in the house of representatives and the senate that hear human services issues on the lifeline benefits program. (8) Repeal. This section is repealed, effective July 1, 2020. SECTION 2. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 5, 2015, if adjournment sine die is on May 6, 2015); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.