F E DERAL COMMUNICATION S C O M MISSION WASHINGTON OFFICE OF THE CHAIRMAN The Honorable Patrick Toomey United States Senate 510 Dirksen Senate Office Building Washington, D.C. 20510 Dear Senator Toomey: January 23,2015 Thank you for contacting me to express concerns regarding the Commission' s inmate calling services (ICS) proceeding. In your letter, you strongly urge Commission to consider state and local government budget concerns, as well as potential security issues that may result from the proposed changes to ICS. Your views are very important and will be included in the record ofthe proceeding and considered as part of the Commission's review. On September 26, 2013, the Commission released a Report and Order and Further Notice of Proposed Rulemaking on ICS. In the Report and Order, the Commission adopted interim reforms of interstate res rates, requiring that providers' rates and charges be just, reasonable, and fair. The Report and Order also required submission of data from IC providers on costs and usage, which the Commission received in August 2014. The Report and Order recognized that security measures are an important part of IC and made clear that it is appropriate for security costs to be recovered through ICS rates. In the associated Further Notice of Proposed Rulemaking, the Commission sought public comment on a number of outstanding issues regarding ICS - including reform of intrastate ICS rates and practices - and whether the Commission should adopt a rate structure that distinguishes between jails and prisons. The Report and Order is already having positive results with decreased interstate rates and increased ICS usage enabling more families to connect with inmates. On the other hand , intrastate rates have increased in many states. lCS providers are imposing an increasing array of ancillary charges, and correctional facilities are continuing to demand site commissions, or payments to facilities that arc not based on their costs to provision res, which represent a significant portion of ICS provider gross revenues. Under the leadership of Commissioner Clyburn, who has been spearheading the Commission's effort on this issue, on October 17, 2014, the Commission adopted a S'econd Further Notice of Proposed Rulemaking ("Further Notice" ) with a goal of comprehensively reforming the ICS system, including both interstate and intrastate rates. The Further Notic:e seeks comment on the data submitted by ICS providers in August, which included cost data for jails and prisons of all sizes. The Further Notice also seeks comment on whether to ban site Page 2- The Honorable Patrick Toomey commissions, as well as permanent rate caps on all services: local, in-state long distance, and interstate long distance telephone services. Finally, the Further Notice seeks comment on providing a multi-year transition period to provide sufficient time for correctional facilities to adjust their budgets. Please be assured that we will take into consideration the issues and concerns presented by all stakeholders engaged in this proceeding, including state and local governments. The goal of the Further Notice is to reform the ICS system comprehensively, while also ensuring appropriate cost recovery and transition periods for correctional facilities. I appreciate your interest in this matter. Please let me know if I can be of any further assistance. Tom Wheeler