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Lifeline: Improving Accountability and Effectiveness S. HRG. 114–140 LIFELINE: IMPROVING ACCOUNTABILITY AND EFFECTIVENESS HEARING BEFORE THE SUBCOMMITTEE ON COMMUNICATIONS, TECHNOLOGY, INNOVATION, AND THE INTERNET OF THE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION UNITED STATES SENATE ONE HUNDRED FOURTEENTH CONGRESS FIRST SESSION JUNE 2, 2015 Printed for the use of the Committee on Commerce, Science, and Transportation ( U.S. GOVERNMENT PUBLISHING OFFICE 98–163 PDF WASHINGTON : 2016 For sale by the Superintendent of Documents, U.S. Government Publishing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Nov 24 2008 11:51 Jan 08, 2016 Jkt 075679 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 S:\GPO\DOCS\98163.TXT JACKIE SENATE COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION ONE HUNDRED FOURTEENTH CONGRESS FIRST SESSION JOHN THUNE, South Dakota, Chairman ROGER F. WICKER, Mississippi BILL NELSON, Florida, Ranking ROY BLUNT, Missouri MARIA CANTWELL, Washington MARCO RUBIO, Florida CLAIRE MCCASKILL, Missouri KELLY AYOTTE, New Hampshire AMY KLOBUCHAR, Minnesota TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut DEB FISCHER, Nebraska BRIAN SCHATZ, Hawaii JERRY MORAN, Kansas EDWARD MARKEY, Massachusetts DAN SULLIVAN, Alaska CORY BOOKER, New Jersey RON JOHNSON, Wisconsin TOM UDALL, New Mexico DEAN HELLER, Nevada JOE MANCHIN III, West Virginia CORY GARDNER, Colorado GARY PETERS, Michigan STEVE DAINES, Montana DAVID SCHWIETERT, Staff Director NICK ROSSI, Deputy Staff Director REBECCA SEIDEL, General Counsel JASON VAN BEEK, Deputy General Counsel KIM LIPSKY, Democratic Staff Director CHRIS DAY, Democratic Deputy Staff Director CLINT ODOM, Democratic General Counsel and Policy Director SUBCOMMITTEE ON COMMUNICATIONS, TECHNOLOGY, INNOVATION, AND THE INTERNET ROGER F. WICKER, Mississippi, Chairman BRIAN SCHATZ, Hawaii, Ranking ROY BLUNT, Missouri MARIA CANTWELL, Washington MARCO RUBIO, Florida CLAIRE MCCASKILL, Missouri KELLY AYOTTE, New Hampshire AMY KLOBUCHAR, Minnesota TED CRUZ, Texas RICHARD BLUMENTHAL, Connecticut DEB FISCHER, Nebraska EDWARD MARKEY, Massachusetts JERRY MORAN, Kansas CORY BOOKER, New Jersey DAN SULLIVAN, Alaska TOM UDALL, New Mexico RON JOHNSON, Wisconsin JOE MANCHIN III, West Virginia DEAN HELLER, Nevada GARY PETERS, Michigan CORY GARDNER, Colorado STEVE DAINES, Montana (II) VerDate Nov 24 2008 11:51 Jan 08, 2016 Jkt 075679 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 S:\GPO\DOCS\98163.TXT JACKIE C O N T E N T S Page Hearing held on June 2, 2015 ................................................................................. 1 Statement of Senator Wicker .................................................................................. 1 Statement of Senator Schatz .................................................................................. 2 Statement of Senator Nelson .................................................................................. 3 Prepared statement .......................................................................................... 4 Statement of Senator Ayotte ................................................................................... 37 Statement of Senator Booker .................................................................................. 39 Prepared statements from industry, civil rights and advocacy groups supporting the Broadband Adoption Act of 2015 ....................................... 41 Statement of Senator Fischer ................................................................................. 62 Statement of Senator Markey ................................................................................. 64 Statement of Senator Daines .................................................................................. 65 Statement of Senator Blumenthal .......................................................................... 67 Statement of Senator Manchin ............................................................................... 69 Statement of Senator Sullivan ............................................................................... 71 WITNESSES Ronald A. Brise´, Commissioner, Florida Public Service Commission, National Association of Regulatory Utility Commissioners (NARUC) ............................ 5 Prepared statement .......................................................................................... 6 Michael Clements, Acting Director, Physical Infrastructure Issues, U.S. Gov- ernment Accountability Office ............................................................................. 15 Prepared statement .......................................................................................... 17 Scott Bergmann, Vice President, Regulatory Affairs, CTIA—The Wireless As- sociation® .............................................................................................................. 21 Prepared statement .......................................................................................... 23 Randolph J. May, President, The Free State Foundation .................................... 28 Prepared statement .......................................................................................... 29 Jessica J. Gonza´lez, Executive Vice President and General Counsel, National Hispanic Media Coalition .................................................................................... 32 Prepared statement .......................................................................................... 34 APPENDIX Response to written questions submitted to Commissioner Ronald A. Brise´ by: Hon. Hon. John Thune ..................................................................................... 77 Hon. Joe Manchin ............................................................................................. 78 Hon. Amy Klobuchar ........................................................................................ 79 Response to written questions submitted to Michael Clements by: Hon. John Thune .............................................................................................. 81 Hon. Joe Manchin ............................................................................................. 82 Response to written questions submitted to Scott Bergmann by: Hon. John Thune .............................................................................................. 82 Hon. Roger F. Wicker ....................................................................................... 84 Hon. Joe Manchin ............................................................................................. 85 Hon. Amy Klobuchar ........................................................................................ 86 Response to written questions submitted to Randolph J. May by: Hon. John Thune .............................................................................................. 86 Hon. Roger F. Wicker ....................................................................................... 87 Hon. Hon. Joe Manchin ................................................................................... 88 Response to written questions submitted to Jessica J. Gonza´lez by: Hon. John Thune .............................................................................................. 88 Hon. Joe Manchin ............................................................................................. 89 Hon. Amy Klobuchar ........................................................................................ 91 (III) VerDate Nov 24 2008 11:51 Jan 08, 2016 Jkt 075679 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 S:\GPO\DOCS\98163.TXT JACKIE VerDate Nov 24 2008 11:51 Jan 08, 2016 Jkt 075679 PO 00000 Frm 00004 Fmt 5904 Sfmt 5904 S:\GPO\DOCS\98163.TXT JACKIE LIFELINE: IMPROVING ACCOUNTABILITY AND EFFECTIVENESS TUESDAY, JUNE 2, 2015 U.S. SENATE, SUBCOMMITTEE ON COMMUNICATIONS, TECHNOLOGY, INNOVATION, AND THE INTERNET, COMMITTEE ON COMMERCE, SCIENCE, AND TRANSPORTATION, Washington, DC. The Subcommittee met, pursuant to notice, at 9:31 a.m. in room SR–253, Russell Senate Office Building, Hon. Roger Wicker, Chair- man of the Subcommittee, presiding. Present: Senators Wicker [presiding], Ayotte, Fischer, Moran, Sullivan, Gardner, Daines, Schatz, Nelson, McCaskill, Blumenthal, Markey, Booker, Manchin, and Peters. OPENING STATEMENT OF HON. ROGER F. WICKER, U.S. SENATOR FROM MISSISSIPPI Senator WICKER. This subcommittee hearing on Communica- tions, Technology, Innovation, and the Internet will come to order. I think we will go ahead. We have a vote at 10:30, and we will probably be able to extend past that. Senator Schatz will be here shortly, but I don’t think he will mind us going ahead and taking care of some of the preliminaries. Today, we examine the state of the FCC’s Lifeline program, fo- cusing our attention on two key issues: Is the program effective in reaching those it is meant to serve? And what more needs to be done to root out waste, fraud, and abuse in order to ensure the pro- gram is accountable to the consumers who fund it and, of course, ultimately, to the American public? The Lifeline program was established as part of the Universal Service Fund in 1985. The goal of the Universal Service Fund has always been to achieve universal service throughout the Nation. Lifeline, specifically, is intended to make telephone service avail- able to qualifying low-income households. As mobile phone usage spiked in the early 2000s, Lifeline was extended to cover the cost of prepaid wireless service plans in
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