Minnesota AG Urges More Money for TAP; State Commerce, Telcos Disagree

an increase to 10 cents -- the maximum statutory amount -- from 3 cents monthly per line to fund a higher $9 TAP credit, but the Minnesota Commerce Department advised the PUC to keep the current surcharge. The Minnesota Telecom Alliance (MTA) also said the PUC shouldn’t make changes. TAP enrollment is declining because the credit can't be used for wireless and it’s too low for many customers to see value in applying for it, said OAG. The PUC could increase participation by increasing the credit and doing more outreach, it said. The current credit is less than a half-hour's minimum wage, it said. Increasing the credit to $9 would make it comparable to the $9.25 federal Lifeline credit that will be phased out by late 2021 for voice services, OAG said. A 7 cent increase to the credit would have minimal impact to customers, it said. No change is needed “to address either a shortage or surplus in the TAP fund,” Commerce said. “When the TAP surcharge and credit levels are revisited in 2019 it may be necessary to make adjustments to preserve the integrity of the program.” Phone companies haven’t heard much concern from consumers about the TAP credit being too low, said MTA. The fund balance was flat over for 12 months since June 30 last year, showing “no imminent funding issue.” Increasing the fee could hurt consumers, it said. “Minnesota telephone customers pay significant regulatory fees and taxes ... Adding to those costs could cause serious concern and hardship.”