TAP, Lifeline & Link-Up

Local wireline service providers must collect TAP (Telephone Assistance Plan), TAM (Telecommunications Access Minnesota), and 911 fees from their customers.

Wireless service providers must collect TAM and 911 fees from their customers. (Wireless service providers are not to collect these fees from prepaid wireless phones and calling cards – see note below). The fees are remitted to the Minnesota Department of Public Safety. Remittance forms and related information are available at the Department of Public Safety website.

As of January 1, 2016, the fees are:

TAP: $0.03
TAM: $0.05
911: $0.95

P-999/M-16-227, In the Matter of the Department of Commerce’s TAM’s 2017 Proposed Budget and Surcharge Recommendations

The above entitled matter has been considered by the Commission and the following disposition made:
- Approves the proposed decrease of the TAM surcharge from $0.07 to $0.05.
- Directs that the TAM surcharge change be effective on, or billing cycle after, August 1, 2016.

Note: TAM and 911 fees for prepaid wireless phones and calling cards are to be collected by retailers. Information relating to the collection of TAM and 911 fees on prepaid wireless service may be found at the Department of Revenue (.pdf).

Minnesota Rules subpart 7817.0900 requires a local service provider to maintain adequate records of surcharge revenues, expenses, and credits related to the program, and to report that information on the prescribed TAP Form. The TAP Reporting forms are available at the Public Utilities Commission website.

Lifeline Re-Certification
TAP Instructions
Requirements

Annual Lifeline Re-Certification Process

In the Lifeline Reform Order (.pdf) the Federal Communications Commission (FCC) made sweeping changes to the Lifeline program. All Eligible Telecommunications Carriers (ETCs) are now required to conduct an annual re-certification of their entire subscriber base.

47 C.F.R. §54.410(f) sets forth the processes and procedures that all ETCs must follow to annually certify that their Lifeline subscribers continue to be eligible for Lifeline services.

ETCs may also elect to have the Universal Service Administrative Company (USAC) conduct the annual re-certification process on their behalf.

To avoid unnecessary de-enrollment of eligible subscribers, the Minnesota Public Utilities Commission (Commission) supports ETCs’ use of the DHS database to validate eligible subscribers and reduce the number of Lifeline subscribers needing direct contact (August 5, 2014 Order, Docket No. P999/PR-14-20).

If an ETC is unable to re-certify a subscriber, it must follow the notification and de-enrollment procedures outlined in §54.405(e)(4).

ETCs are required to report the results of the annual re-certification to the Commission, the FCC, and USAC using FCC Form 555 (the Annual Lifeline Eligible Telecommunications Carrier Certification Form) by January 31 of each year. Form 555 and instructions are available on USAC’s website.

2014 annual re-certification results are due February 2, 2015 and should be submitted to the Commission in Docket P999/PR-15-20.
TAP Reporting Form Instructions

Purpose

Minnesota's Telephone Assistance Plan (TAP) provides a discount in the form of monthly credits on customers' telephone bills. The eligibility requirements are the same as the federal Lifeline program. MN Rules subpart 7817.0900 requires a telephone company to maintain adequate records of surcharge revenues, expenses, and credits related to the program, and to report that information on the prescribed TAP Form.

MN Stat. 237.01 defines a telephone company as "any person, firm, association, or any corporation, private or municipal, owning or operating any telephone line or telephone exchange for hire, wholly or partly within this state, or furnishing any telephone service to the public."

General Filing Instructions

The TAP report enables reimbursement of credits and administrative expenses filed during the reporting period. The TAP reporting form (.xls) can be found on the Public Utilities Commission website. There may be TAP reporting forms for more than one year. The correct form to use is the one for the reporting period in which the credits were applied, not the month in which the report is submitted.
- The TAP reporting form is due no later than 30 days after the end of the reporting period.
- A telephone company shall file (at its option) either quarterly or monthly reports.
- A telephone company with 100 or fewer subscribers may file an annual report rather than filing quarterly or monthly reports.
- The report also requests that the company attach the fee submission form submitted to the Department of Public Safety's Minnesota 911 Program to remit collections for 911, TAM (Tele-Relay) and TAP surcharges. The form is to be submitted using e-dockets.
Effective October 1, 2013, or the first billing cycle thereafter, all local telephone companies must implement the following changes:
- The monthly TAP credit increases from $2.50 to $3.50 per access line
- The monthly TAP surcharge decreases from $0.06 to $0.03 per access line
Please review the Instructions worksheet tab of the TAP Reporting Form. Completing the form per the instructions will expedite your payment process.
Telephone Carrier Program Requirements

TAP, Lifeline, and Link-Up are programs that offer a discount on telephone service for qualifying low-income consumers in Minnesota. As a carrier providing local service, you have the obligation to provide one or more of these programs. Of the three programs, TAP is the only program created by the state. Lifeline and Link-Up were created by the FCC. TAP is administered by the Minnesota Public Utilities Commission and Minnesota Department of Commerce. Eligibility criteria are the same for the TAP and Lifeline programs. The Link-Up program is available for qualifying residents of Tribal lands.

TAP offers a monthly discount of $3.50 and must be offered by all local service providers.

Lifeline offers a monthly discount of $9.25 and must be offered by Eligible Telecommunications Carriers (ETCs).

Link-Up offers a 100 percent reduction, up to $100, off installation charges to qualifying residents of Tribal lands, and must be offered by ETCs.

For a more detailed explanation on which programs each type of carrier must offer, download the Who Offers document (.pdf).

The TAP program is established under Minnesota Statutes sections 237.70 through 237.711. As a local service provider, some of your obligations under this program include:
- Assessing the TAP surcharge on your customers;
- Collecting the surcharge and remitting it to the Department of Public Safety;
- Filing a TAP report with the Minnesota Public Utilities Commission
- Notifying your residential customers of the availability of the program;
- Accepting applications from your customers and enrolling them in the program until they notify you that they are no longer eligible.
This list does not include all of a carrier's responsibilities under the TAP program; Review Minnesota Statutes sections 237.70 through 237.711, and Minnesota Rules Chapter 7817. Contact the Department of Commerce at telecom.commerce@state.mn.us if you have further questions.

The Minnesota Public Utilities Commission sets both the TAP surcharge and TAP credit. Occasionally, the Commission may choose to change either the surcharge or the credit. When the Commission makes a change in the surcharge or credit, you will receive correspondence from the Commission instructing you to make the required change.

TAP, Lifeline & Link-Up

Questions?