WPC17 2MBERKZ3|\ X-#Xj\  P6G;ynXP#"i~'^09CSS999S]+9+/SSSSSSSSSS//]]]Ixnnxg]xx9?xgxx]xn]gxxxxg9/9MS9ISISI9SS//S/SSSS9?/SSxSSIP!PZ9+ZM999+999999S9S/xIxIxIxIxIlnIgIgIgIgI9/9/9/9/xSxSxSxSxSxSxSxSxSxSxIxSxRxSxSxS]SxIxIxInInInZnIxigIgIgIgIxSxSxSxZxSxZxS9/9S999Su]ZZxSg/gCg9g9g/xSbxSxSxSxSxn9n9n9]?]?]?]ZgFg/gMxSxSxSxSxSxSxxZgIgIgIxSg9xS]?g9xSi+SS88WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN/>/>/>/x]SSSSx]x]x]x]xSxSx]SSxSxSf]xSxSxSxIxIxWxIx{nInInInISSSWS]a?/?]?9?]]WW]n/nKn9nCn/x]xx]x]SSxxIxIxI]?]?]?]WnUn9nax]x]x]x]x]x]xxWnInInIx]n9x]]?n9xSz+SS8-8WuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuuxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN8HH"&H>XHH8HB8>HH^HH>"".2",2,2,"222N2222"&22H22,006"6."""""""""2"2H,H,H,H,H,XAB,>,>,>,>,""""H2H2H2H2H2H2H2H2H2H2H,H2H1H2H2H282H,H,H,B,B,B6B,H?>,>,>,>,H2H2H2H6H2H6H2""2"""2F866H2>>(>">">H2;H2H2H2H2XHB"B"B"8&8&8&86>*>>.H2H2H2H2H2H2^HH6>,>,>,H2>"H28&>"H2?22!!WFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxN$<<$.2",2222`2 LL2 LL2L"",,2d""\4  pG;7jC:,ynXj\  P6G;XP7nC:,-ԍ FederalState Joint Board on Universal Service, Order, CC Docket No. 9645, DA 972478 (Com. Car. Bur. rel. Dec. 30, 1997) (Lifeline Waiver Order). On January 21, 1998, the Arizona Commission filed a letter with the Commission stating that actions it had taken while its  X-petition was pending rendered its request for a waiver unnecessary.| yOj-ԍ Letter from Paul A. Bullis, Arizona Corporation Commission, to Magalie R. Salas, FCC, dated January 21, 1998 (January 21, 1998 Letter). For the reasons set forth below, we find consumers in Arizona who meet the federal default consumer qualification criteria recently adopted by the Arizona Commission may receive $5.25 per month in federal Lifeline support retroactive to January 1, 1998.  X- x2.` ` On May 8, 1997, the Commission issued a Report and Order that revised our rules governing consumer qualification for federal Lifeline support and the federal Lifeline  Xd-support amount. Zd | yO!&-ԍ FederalState Board on Universal Service, Report and Order, CC Docket No. 9645, FCC 97157, 12 FCC  {O&-Rcd 8776 (rel. May 8, 1997). The Commission released an erratum correcting the Universal Service Order on June 4, 1997.  In revising these rules, the Commission sought generally to make Lifeline"d. 0*((PP" and Link Up available to lowincome consumers in every state and territory in the nation. The revised rules specify that, in order for a consumer to receive federal Lifeline support in states that provide state Lifeline support, the consumer must meet the criteria established by the state and those criteria must be based solely on income or factors directly related to  X-income.C yO-ԍ 47 C.F.R.  54.409(a).C To qualify to receive federal Lifeline support in states that do not provide state Lifeline support, a consumer must certify that he or she participates in one of the following programs: Medicaid; food stamps; Supplemental Security Income; federal public housing  X_-assistance; or LowIncome Home Energy Assistance Program.C_X yOh -ԍ 47 C.F.R.  54.409(b).C The revised rules also provide for three forms of federal Lifeline support: (1) $3.50 per qualifying lowincome consumer; (2) an additional $1.75 if the state commission approves a reduction of $1.75 in the intrastate rate paid by Lifeline consumers; and (3) additional support, subject to a $7.00 ceiling on the total amount of federal Lifeline support, if the state provides intrastate Lifeline support to  X -customers based solely on income or factors directly related to income.  {O-ԍ See 47 C.F.R.  54.403. The third form of federal Lifeline support comes in an amount equal to onehalf the amount of any state Lifeline support will be made available to the carrier providing Lifeline service to a qualifying lowincome consumer if the state approves an additional reduction in the amount paid by that consumer equal to the state support multiplied by 1.5. The federal Lifeline support amount shall not exceed $7.00 per qualifying lowincome consumer.  X -x3.` ` Arizona offers two lowincome telephone assistance programs: the Arizona LowIncome Telephone Assistance Program (ALITAP) and the Telephone Assistance Program (TAP). Consumer qualification for ALITAP is based on income and age. Consumer qualification for TAP is based on income and medical disability. In a petition filed on December 4, 1997, the Arizona Commission requested a waiver of section 54.409(a) to allow the Arizona legislature time to conform the state eligibility criteria for these programs to be based solely on income or factors directly related to income, as set forth in section 54.409(a) of our rules.  X-x4.` ` In our December 30, 1997 Order, we found that good cause existed to waive our rule temporarily so that consumers in Arizona who are currently eligible to receive lowincome assistance continue to benefit from the federal Lifeline support. The waiver extended until July 30, 1998, at which point all consumers who met Arizona's new consumer qualification criteria, if based solely on income or on factors directly related to income, would  X|-be eligible to receive federal Lifeline support.V| {O#-ԍ See Lifeline Waiver Order at para. 14.V "e, 0*''PP"Ԍ X-x5.` ` In a letter filed with the Commission on January 21, 1998, the Arizona Commission stated that, in a series of orders issued in December 1997, the Arizona Commission adopted consumer qualification criteria that were based solely on income or factors directly related to income. Specifically, the Arizona Commission ordered carriers to  X-apply the federal default criteria set forth in section 54.409(b) of our rules.Q  {O-ԍ See January 21, 1998 Letter at 1.Q The Arizona Commission stated the Arizona constitution authorizes the Arizona Commission to establish  Xv-such criteria.Q vZ {O -ԍ See January 21, 1998 Letter at 2.Q Based on these actions, we find that the Arizona Commission has complied with section 54.409(a) of our rules and that the December 30th waiver is no longer necessary. Accordingly, based on the record before us, consumers in Arizona meeting the eligibility criteria adopted by the Arizona Commission are eligible to receive $5.25 in federal Lifeline universal service support per qualifying lowincome consumer. Additional federal support, however, will not be provided unless the state provides support, pursuant to section 54.403(a) of our rules, to all consumers meeting the eligibility criteria adopted by the Arizona  X -Commission.M  {Or-ԍ See 47 C.F.R.  54.403(a).M We reiterate that Arizona remains free to provide to the more limited class of consumers eligible for the state lowincome assistance programs (e.g., lowincome consumers who are also disabled) a state support amount that is higher than that offered to consumers  X-who meet only incomebased criteria. $~ {O-ԍ See Lifeline Waiver Order at para. 14. As provided in the Lifeline Waiver Order, "[a]lthough the federal support mechanisms will provide a maximum of $7.00 to qualifying consumers, states are not limited in the amount of Lifeline assistance they provide, nor are states prohibited from offering different levels of assistance to  {O-different classes of customers." Id.Ĺ Because the actions taken by the Arizona Commission were effective as of January 1, 1998, we further conclude that consumers in Arizona who meet the criteria adopted by the Arizona Commission are eligible to receive federal Lifeline support retroactive to January 1, 1998.  X4- "4j 0*''PP "  X-x6.` ` It is THEREFORE ORDERED, pursuant to sections 4(i), 214, and 254 of the Communications Act of 1934, as amended, 47 U.S.C.  154(i), 214, and 254 and sections 0.91, 0.291, 1.3, and 54.409 of the Commission's rules, 47 C.F.R.  0.91, 0.291, 1.3, and 54.409 that the Arizona Commission's Lifeline program complies with section 54.409(a) of our rules and that a waiver is no longer necessary. x` `  hhFEDERAL COMMUNICATIONS COMMISSION x` `   x` ` hhJames D. Schlichting x` ` hhDeputy Chief, Common Carrier Bureau