FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON
OFFICE OF
THE CHAIRMAN
March 23,2015
The Honorable Tom Reed
U.S. House of Representatives
1504 Longworth House Office Building
Washington, D.C. 20515
Dear Congressman Tom Reed:
Thank you for your letter expressing concerns regarding the Commission's inmate calling
services (lCS) proceeding. In your letter, you express concern regarding the Commission's legal
authority under Sections 201 (b) and 276 of the Communications Act of 1996 to regulate site
commissions and intrastate calls. Your views are very important, and they will both be included
in the record of the proceeding and be considered as part of the Commission's review.
In September 2013, the Commission released a Report and Order and Further Notice of
Proposed Rulemaking on inmate calling services (lCS). In the Report and Order, the
Commission adopted interim reforms of interstate ICS rates, requiring that providers' rates and
charges be just, reasonable, and fair. The Report and Order also recognized that security
measures are an important part of rcs and made clear that it is appropriate for security costs to
be recovered through ICS rates.
The Report and Order is already having positive results, with decreased lower interstate
rates and increased res usage enable more families to connect with inmates. Unfortunately,
intrastate rates have increased in many states. Moreover, many ICS providers are imposing an
increasing array of ancillary charges.
Under the leadership of Commissioner Clyburn, who has been spearheading the
Commission's effort on this issue, the Commission adopted a Second Further Notice of
Proposed Rulemaking ("Further Notice") on October 17,2014, with a goal of comprehensively
reforming the rcs system, including both interstate and intrastate rates. The Further Notice also
seeks comment on the data submitted by rcs providers in August, which included cost data for
jails and prisons of all sizes, as well as on permanent rate caps on all services - local, in-state
long distance, and interstate long distance telephone services - and specifically seeks comment
on whether Section 276 gives the Commission authority to regulate both interstate and intrastate
charges for rcs ancillary 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 correctional facilities, as well as state
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and local governments. The goal of the Further Notice is to reform the res system
comprehensively, without sacrificing security, 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