ARC 4255C

ARC 4255C

UTILITIES DIVISION[199]

Notice of Termination

Terminating rule making related to inmate calling rates

The Utilities Board hereby terminates the rule making initiated by its Notice of Intended Action published in the Iowa Administrative Bulletin on March 14, 2018, as ARC 3674C, proposing to amend Chapter 22, "Service Supplied by Telephone Utilities," Iowa Administrative Code.

Legal Authority for Rule Making

The above-mentioned rule making is terminated under the authority provided in Iowa Code sections 17A.4, 17A.7, 476.2 and 476.91.

Purpose and Summary

This rule making terminates the proposed rule making that would have implemented rate caps on charges that may be assessed to inmates in Iowa correctional facilities and inmates' families for local and intrastate telephone calls. On January 2, 2019, the Board issued an order terminating rule making. The order is available on the Board's electronic filing system, efs.iowa.gov, under Docket No.RMU-2017-0004.

Reason for Termination

An Amended Notice of Intended Action was published in the Iowa Administrative Bulletin on May 9, 2018, as ARC 3773C in order to allow for a public hearing (oral presentation) at which public comment could be received. The public hearing was held on July 10, 2018. The Office of Consumer Advocate (OCA), a division of the Iowa Department of Justice; Securus Technologies, Inc.(Securus); and Telespan Communications, Inc.; and NCIC Inmate Telephone Services (collectively, Petitioners) participated at the hearing.

At the public hearing, OCA affirmed its commitment to the proposed rule, stating the rule would provide uniform and predictable call conditions for inmates and their families. Petitioners also affirmed their support for the rule, arguing the rule is in line with policies implemented in a number of states and the rates would be sufficient to cover the costs of providing services. Petitioners further contended that the rule would not impact competition for inmate calling rate services and that any company may seek a waiver of the rate caps should the caps prevent a company from recovering its costs. Securus argued the rule was unnecessary, stating the current alternative operator service provider tariff review process covers most inmate calling service providers in the state. Securus contended that, should the Board continue with the rule, the Board should collect and analyze provider costs to determine the appropriate cap.

Pursuant to the authority of Iowa Code section 17A.4(1)"b," the Board has terminated the proposed rule making. First, there is an increasing movement, both in Iowa and across the nation, to remove telecommunications regulations to reflect a more competitive marketplace. Correctional facilities have choices as to both the provider and services offered to inmates and have significant ability to control the rates ultimately charged to inmates based on the services selected and the site payments included in the contract. In addition, most companies providing inmate calling rate services in Iowa qualify as alternative operator service companies, which are subject to Board regulation. These companies must file tariffs with the Board for review and approval, which provides a flexible process to review the terms and costs of service. Finally, the Board finds there is insufficient evidence to support the rate caps proposed in the rule.

Jobs Impact

After analysis and review of this rule making, no impact on jobs has been found.

Review by Administrative Rules Review Committee

The Administrative Rules Review Committee, a bipartisan legislative committee which oversees rule making by executive branch agencies, may, on its own motion or on written request by any individual or group, review this rule making at its regular monthly meeting or at a special meeting. The Committee's meetings are open to the public, and interested persons may be heard as provided in Iowa Code section 17A.8(6).