Incarcerated People's Communications Services; Implementation of the Martha Wright-Reed Act; Rates for Interstate Inmate Calling Services, 68369-68375 [2024-18605]

Agencies

• FEDERAL COMMUNICATIONS COMMISSION

[Federal Register Volume 89, Number 165 (Monday, August 26, 2024)]
[Rules and Regulations]
[Pages 68369-68375]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-18605]



[[Page 68369]]

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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[WC Docket Nos. 12-375, 23-62; FCC 24-75; FR ID 237667]


Incarcerated People's Communications Services; Implementation of 
the Martha Wright-Reed Act; Rates for Interstate Inmate Calling 
Services

AGENCY: Federal Communications Commission.

ACTION: Final rule; dismissal, partial grant and partial denial of 
petitions for reconsideration, clarification and waiver.

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SUMMARY: In this document, the Federal Communications Commission 
(Commission) addresses and resolves multiple pending petitions in the 
incarcerated people's communications services (IPCS) proceeding. The 
Commission grants the Hamilton Relay, Inc. petition for reconsideration 
of certain aspects of the 2022 ICS Order released on September 30, 
2022. The Commission dismisses the United Church of Christ and Public 
Knowledge petition for reconsideration of the 2021 ICS Order released 
on May 24, 2021. The Commission dismisses the portion of the NCIC 
Inmate Communications petition for reconsideration of the 2021 ICS 
Order that it had not previously addressed. The Commission dismisses a 
petition filed by Securus Technologies, LLC seeking clarification of 
one aspect of the 2021 ICS Order and dismiss in part and otherwise 
denies the Securus petition for waiver of certain Commission rules.

DATES: August 26, 2024.

ADDRESSES: Federal Communications Commission, 45 L Street NE, 
Washington, DC 20554.
    People with Disabilities: To request materials in accessible 
formats for people with disabilities (Braille, large print, electronic 
files, audio format), send an email to [email protected], or call the 
Consumer and Governmental Affairs Bureau at (202) 418-0530 (voice) or 
(202) 418-0432 (TTY).

FOR FURTHER INFORMATION CONTACT: Stephen Meil, Pricing Policy Division 
of the Wireline Competition Bureau, at (202) 418-7233 or via email at 
[email protected], regarding the portions of this document relating 
to matters other than communications services for incarcerated people 
with disabilities, and Michael Scott, Disability Rights Office of the 
Consumer and Governmental Affairs Bureau, at (202) 418-1264 or via 
email at [email protected], regarding the portions of this document 
relating to communications services for incarcerated people with 
disabilities.

SUPPLEMENTARY INFORMATION: This is a summary of the Commission's Order 
on Reconsideration, Clarification and Waiver, document FCC 24-75, 
adopted on July 18, 2024 and released on July 22, 2024, in WC Docket 
Nos. 12-375 and 23-62. This summary is based on the public redacted 
version of the document. The full text of the document FCC 24-75 can be 
accessed electronically via the FCC's Electronic Document Management 
System (EDOCS) website at www.fcc.gov/edocs or via the FCC's Electronic 
Comment Filing System (ECFS) website at www.fcc.gov/ecfs, or is 
available at the following internet address: https://www.fcc.gov/document/fcc-caps-exorbitant-phone-video-call-rates-incarcerated-persons-their-families.

Synopsis

I. Order on Reconsideration, Clarification and Waiver

    1. We address and resolve multiple pending petitions in this 
proceeding. We grant the Hamilton Relay, Inc. petition for 
reconsideration of certain aspects of the 2022 ICS Order, published at 
87 FR 75496 (Dec. 9, 2022). We dismiss the United Church of Christ and 
Public Knowledge petition for reconsideration of the 2021 ICS Order, 
published at 86 FR 40682 (July 28, 2021). We also dismiss the remainder 
of the NCIC petition for reconsideration not previously addressed. The 
NCIC petition seeks reconsideration of various aspects of the 
Commission's treatment of site commissions in the 2021 ICS Order, 
published at 86 FR 40682. The Commission previously addressed the 
portions of the petition relating to its interim caps for certain 
ancillary service charges in the 2022 ICS Order. Given the actions we 
take addressing site commissions in this Order, we now dismiss as moot 
the remainder of the petition. We also dismiss a petition filed by 
Securus seeking clarification of one aspect of the 2021 ICS Order and 
dismiss in part and otherwise deny the Securus petition for waiver of 
certain Commission rules.

A. Hamilton Petition for Reconsideration

    2. Hamilton Relay, Inc., seeks partial reconsideration of the 
requirement that Video Relay Service (VRS) and internet Protocol 
Captioned Telephone Service (IP CTS) providers update an incarcerated 
person's registration information within 30 days of the user being 
released from incarceration or transferred to a different correctional 
authority. Hamilton asserts that TRS providers will learn that an 
incarcerated person has been released or transferred only when notified 
by the correctional authority or the incarcerated person. Hamilton 
therefore asks us to modify Sec.  64.611(k)(1)(iii) of our rules to 
require that VRS and IP CTS providers update an incarcerated person's 
registration information within 30 days ``of receiving written 
notification from such person or the correctional authority of'' an 
incarcerated person's release or transfer, rather than within 30 days 
``after'' such release or transfer.'' No party opposes this change.
    3. As some commenters anticipate, this concern may be less pressing 
as a result of our determination above to allow enterprise registration 
for IP CTS in carceral settings. Nevertheless, to the extent that 
individual registration continues to be used, we agree that TRS 
providers are not expected to independently track the location status 
of incarcerated users who have individually registered for IP CTS or 
VRS. The allowed thirty-day period for updating registration 
information should begin upon the provider's receipt of written 
notification of the incarcerated person's release or transfer. 
Accordingly, we amend Sec.  64.611(k)(1)(iii) to clarify the rule. We 
modify Hamilton's proposed language to reflect that written 
notification may be received from the incarcerated person, the 
correctional authority, or the IPCS provider.
    4. We also modify this provision to clarify the updated information 
that TRS providers must transmit to the TRS User Registration Database 
when an individual who registers for VRS or IP CTS while incarcerated 
is released. In addition to the individual's residential address and 
Registered Location (if required), the update shall include any other 
required registration information not previously provided.
    5. We therefore grant Hamilton's Petition for Reconsideration with 
the modifications described herein.

B. Securus Petition for Clarification

    6. We dismiss as moot Securus's Petition for Clarification, which 
``addresses only contractually prescribed site commission payments.'' 
With respect to such payments, Securus seeks clarification as to 
whether providers may use ``revenues from ICS rates to pay site 
commission costs above the $0.02 rate cap,'' provided that the total 
charged to consumers does not exceed the applicable rate cap.

[[Page 68370]]

Securus's concern stems from the Commission's statement in the 2021 ICS 
Order in which it confirmed that the $0.02 per minute allowance for 
contractually prescribed site commissions ``does not prevent or 
prohibit the payment of additional site commission amounts to 
correctional facilities should the calling services providers and the 
facility enter into a contract resulting in the provider making per-
minute payments to the facility higher than $0.02.'' Securus contends 
that the Commission's language ``creates ambiguity over whether 
providers may pay additional site commissions from end user revenues 
collected under the provider-related rate component.'' In Securus's 
view, ``[f]ailure to clarify the limits of site commission cost 
recovery from ICS rates . . . could result in some providers being 
competitively disadvantaged in the bidding process by which ICS service 
providers are selected to serve carceral facilities.''
    7. Our actions in the 2024 IPCS Report and Order, which end the 
practice of paying site commissions, effectively moot Securus's request 
for clarification. Because the rules we adopt in connection with site 
commissions apply prospectively, there are no retroactive implications 
from these actions that we need to consider. Our reforms eliminate site 
commission payments associated with IPCS. Because IPCS providers will 
no longer be able to pay site commissions associated with their IPCS 
offerings, we need not clarify whether providers may use IPCS revenues 
to pay such site commissions.

C. Securus Waiver Petition

    8. We dismiss in part and otherwise deny the Securus Waiver 
Petition. In its Waiver Petition, Securus seeks a waiver of Sec. Sec.  
64.6030, 64.6080, and 64.6090 of the Commission's rules so that 
``Securus and other providers'' can offer ``alternative rate options 
that promote increased calling while reducing costs.'' Because we adopt 
rules, in the 2024 IPCS Report and Order, specifically allowing 
alternate pricing plans, including flat-rate pricing, Securus's 
requests for a waiver of Sec.  64.6030, which specifies the use of 
mandatory rate caps on a per-minute basis, and Sec.  64.6090, which 
prohibits flat-rate calling, are moot and are therefore dismissed.
    9. We deny Securus's request for a waiver of Sec.  64.6080, which 
prohibits per-call and per-connection charges, to the extent that 
request would permit a provider to impose such one-time charges in 
addition to any base rates for alternate pricing plans. We retain today 
a key consumer protection rule at Sec.  64.6080, and Securus does not 
explain why a waiver of this section of the rules is necessary in light 
of the alternate pricing plan rules we adopt in the Order.

II. Procedural Matters

    10. Final Regulatory Flexibility Analysis. As required by the 
Regulatory Flexibility Act of 1980, as amended (RFA), the Commission 
has prepared a Final Regulatory Flexibility Analysis (FRFA) relating to 
this Report and Order and this Order on Reconsideration, Clarification, 
and Waiver. The FRFA is set forth in below.
    11. Congressional Review Act. The Commission will not send a copy 
of this Order on Reconsideration, Clarification, and Waiver to Congress 
and the Government Accountability Office pursuant to the Congressional 
Review Act (CRA), see 5 U.S.C. 801(a)(1)(A), because it does not adopt 
any rule as defined in the CRA, 5 U.S.C. 804(3).
    12. Paperwork Reduction Act Analysis. The Order on Reconsideration, 
Clarification, and Waiver does not contain new or modified information 
collection requirements subject to the Paperwork Reduction Act of 1995, 
Public Law 104-13. Therefore, it does not contain any new or modified 
information collection burdens for small business concerns with fewer 
than 25 employees, pursuant to the Small Business Paperwork Relief Act 
of 2002, Public Law 107-198, see 44 U.S.C. 3506(c)(4).
    13. People with Disabilities. To request materials in accessible 
formats for people with disabilities (Braille, large print, electronic 
files, audio format), send an email to [email protected] or call the 
Consumer and Governmental Affairs Bureau at 202-418-0530.

III. Final Regulatory Flexibility Act Analysis

    14. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), Initial Regulatory Flexibility Analyses (IRFAs) were 
incorporated in the Incarcerated People's Communications Services; 
Implementation of the Martha Wright-Reed Act; Rates for Interstate 
Inmate Calling Services, Notice of Proposed Rulemaking (NPRM) in WC 
Docket Nos. 23-62 and 12-375 (released in March 2023), in the Sixth 
Further Notice of Proposed Rulemaking in WC Docket No. 12-375 (released 
in September 2022), and in the Fifth Further Notice of Proposed 
Rulemaking in WC Docket No. 12-375 (released in May 2021). The Federal 
Communications Commission (Commission) sought written public comment on 
the proposals in those documents, including comment on the IRFAs. No 
comments were filed addressing the IRFA. This present Final Regulatory 
Flexibility Analysis (FRFA), relating to the Report and Order and the 
Order on Reconsideration, Clarification and Waiver (collectively, 
Report and Order), conforms to the RFA.

A. Need for, and Objectives of, the Report and Order

    15. The Report and Order implements the expanded authority granted 
to the Commission by the Martha Wright-Reed Act to establish a 
compensation plan that ensures both just and reasonable rates and 
charges for incarcerated people's audio and video communications 
services and fair compensation for incarcerated people's communication 
services (IPCS) providers. The Report and Order fundamentally reforms 
the regulation of IPCS in all correctional facilities, regardless of 
the technology used to deliver these services, and significantly lowers 
the IPCS rates that incarcerated people and their loved ones will pay.
    16. The reforms adopted by the Report and Order: (1) utilize the 
expanded authority granted the Commission, in conjunction with the 
Commission's preexisting statutory authority, to adopt just and 
reasonable IPCS rates and charges for all intrastate, interstate, and 
international audio and video IPCS, including video visitation 
services, that ensure fair compensation for providers; (2) lower 
existing per-minute rate caps for audio IPCS, based on industry-wide 
cost data submitted by IPCS providers, while permitting states to 
maintain IPCS rates lower than the Commission's rate caps; (3) lower 
the overall prices consumers pay for IPCS and simplify the pricing 
structure by incorporating the costs of ancillary services in the rate 
caps and prohibiting providers from imposing any separate ancillary 
service charges on IPCS consumers; (4) prohibit IPCS providers from 
making site commission payments for IPCS and preempt state and local 
laws and regulations requiring such commissions; (5) limit the costs 
associated with safety and security measures that can be recovered in 
the per-minute rates to only those costs that the Commission finds used 
and useful in the provision of IPCS; (6) allow, subject to conditions, 
IPCS providers to offer alternate pricing plans for IPCS that comply 
with the rate caps we establish; (7) revise and strengthen 
accessibility requirements for IPCS for incarcerated people with 
disabilities; (8) revise and strengthen existing consumer disclosure 
and inactive account requirements; and (9)

[[Page 68371]]

revise the existing annual reporting and certification requirements. 
The Report and Order also addresses petitions for reconsideration, 
clarification and waiver pending in this proceeding.

B. Summary of Significant Issues Raised by Public Comments in Response 
to the IRFA

    17. There were no comments filed that specifically addressed the 
proposed rules and policies presented in the IRFA.

C. Response to Comments by the Chief Counsel for Advocacy of the Small 
Business Administration

    18. Pursuant to the Small Business Jobs Act of 2010, which amended 
the RFA, the Commission is required to respond to any comments filed by 
the Chief Counsel for Advocacy of the Small Business Administration 
(SBA), and to provide a detailed statement of any change made to the 
proposed rules as a result of those comments. The Chief Counsel did not 
file any comments in response to the proposed rules in this proceeding.

D. Description and Estimate of the Number of Small Entities to Which 
Rules Will Apply

    19. The RFA directs agencies to provide a description of, and, 
where feasible, an estimate of, the number of small entities that may 
be affected by the rules they adopt. The RFA generally defines the term 
``small entity'' as having the same meaning as the terms ``small 
business,'' ``small organization,'' and ``small governmental 
jurisdiction.'' In addition, the term ``small business'' has the same 
meaning as the term ``small business concern'' under the Small Business 
Act. A ``small business concern'' is one which: (1) is independently 
owned and operated; (2) is not dominant in its field of operation; and 
(3) satisfies any additional criteria established by the Small Business 
Administration (SBA).
    20. Small Businesses, Small Organizations, Small Governmental 
Jurisdictions. Our actions, over time, may affect small entities that 
are not easily categorized at present. We therefore describe, at the 
outset, three broad groups of small entities that could be directly 
affected herein. First, while there are industry specific size 
standards for small businesses that are used in the regulatory 
flexibility analysis, according to data from the Small Business 
Administration's (SBA) Office of Advocacy, in general a small business 
is an independent business having fewer than 500 employees. These types 
of small businesses represent 99.9% of all businesses in the United 
States, which translates to 33.2 million businesses.
    21. Next, the type of small entity described as a ``small 
organization'' is generally ``any not-for-profit enterprise which is 
independently owned and operated and is not dominant in its field.'' 
The Internal Revenue Service (IRS) uses a revenue benchmark of $50,000 
or less to delineate its annual electronic filing requirements for 
small exempt organizations. Nationwide, for tax year 2022, there were 
approximately 530,109 small exempt organizations in the U.S. reporting 
revenues of $50,000 or less according to the registration and tax data 
for exempt organizations available from the IRS.
    22. Finally, the small entity described as a ``small governmental 
jurisdiction'' is defined generally as ``governments of cities, 
counties, towns, townships, villages, school districts, or special 
districts, with a population of less than fifty thousand.'' U.S. Census 
Bureau data from the 2022 Census of Governments indicate there were 
90,837 local governmental jurisdictions consisting of general purpose 
governments and special purpose governments in the United States. Of 
this number, there were 36,845 general purpose governments (county, 
municipal, and town or township) with populations of less than 50,000 
and 11,879 special purpose governments (independent school districts) 
with enrollment populations of less than 50,000. Accordingly, based on 
the 2022 U.S. Census of Governments data, we estimate that at least 
48,724 entities fall into the category of ``small governmental 
jurisdictions.''
    23. Wired Telecommunications Carriers. The U.S. Census Bureau 
defines this industry as establishments primarily engaged in operating 
and/or providing access to transmission facilities and infrastructure 
that they own and/or lease for the transmission of voice, data, text, 
sound, and video using wired communications networks. Transmission 
facilities may be based on a single technology or a combination of 
technologies. Establishments in this industry use the wired 
telecommunications network facilities that they operate to provide a 
variety of services, such as wired telephony services, including VoIP 
services, wired (cable) audio and video programming distribution, and 
wired broadband internet services. By exception, establishments 
providing satellite television distribution services using facilities 
and infrastructure that they operate are included in this industry. 
Wired Telecommunications Carriers are also referred to as wireline 
carriers or fixed local service providers.
    24. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 show that there 
were 3,054 firms that operated in this industry for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2022 Universal Service 
Monitoring Report, as of December 31, 2021, there were 4,590 providers 
that reported they were engaged in the provision of fixed local 
services. Of these providers, the Commission estimates that 4,146 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    25. Local Exchange Carriers (LECs). Neither the Commission nor the 
SBA has developed a size standard for small businesses specifically 
applicable to local exchange services. Providers of these services 
include both incumbent and competitive local exchange service 
providers. Wired Telecommunications Carriers is the closest industry 
with an SBA small business size standard. Wired Telecommunications 
Carriers are also referred to as wireline carriers or fixed local 
service providers. The SBA small business size standard for Wired 
Telecommunications Carriers classifies firms having 1,500 or fewer 
employees as small. U.S. Census Bureau data for 2017 show that there 
were 3,054 firms that operated in this industry for the entire year. Of 
this number, 2,964 firms operated with fewer than 250 employees. 
Additionally, based on Commission data in the 2022 Universal Service 
Monitoring Report, as of December 31, 2021, there were 4,590 providers 
that reported they were fixed local exchange service providers. Of 
these providers, the Commission estimates that 4,146 providers have 
1,500 or fewer employees. Consequently, using the SBA's small business 
size standard, most of these providers can be considered small 
entities.
    26. Incumbent Local Exchange Carriers (Incumbent LECs). Neither the 
Commission nor the SBA have developed a small business size standard 
specifically for incumbent local exchange carriers. Wired 
Telecommunications Carriers is the closest industry with an SBA small 
business size standard. The SBA small business size standard for Wired 
Telecommunications Carriers classifies

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firms having 1,500 or fewer employees as small. U.S. Census Bureau data 
for 2017 show that there were 3,054 firms in this industry that 
operated for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Additionally, based on Commission data in the 
2022 Universal Service Monitoring Report, as of December 31, 2021, 
there were 1,212 providers that reported they were incumbent local 
exchange service providers. Of these providers, the Commission 
estimates that 916 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, the 
Commission estimates that the majority of incumbent local exchange 
carriers can be considered small entities.
    27. Competitive Local Exchange Carriers (CLECs). Neither the 
Commission nor the SBA has developed a size standard for small 
businesses specifically applicable to local exchange services. 
Providers of these services include several types of competitive local 
exchange service providers. Wired Telecommunications Carriers is the 
closest industry with a SBA small business size standard. The SBA small 
business size standard for Wired Telecommunications Carriers classifies 
firms having 1,500 or fewer employees as small. U.S. Census Bureau data 
for 2017 show that there were 3,054 firms that operated in this 
industry for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Additionally, based on Commission data in the 
2022 Universal Service Monitoring Report, as of December 31, 2021, 
there were 3,378 providers that reported they were competitive local 
service providers. Of these providers, the Commission estimates that 
3,230 providers have 1,500 or fewer employees. Consequently, using the 
SBA's small business size standard, most of these providers can be 
considered small entities.
    28. Interexchange Carriers (IXCs). Neither the Commission nor the 
SBA have developed a small business size standard specifically for 
Interexchange Carriers. Wired Telecommunications Carriers is the 
closest industry with a SBA small business size standard. The SBA small 
business size standard for Wired Telecommunications Carriers classifies 
firms having 1,500 or fewer employees as small. U.S. Census Bureau data 
for 2017 show that there were 3,054 firms that operated in this 
industry for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Additionally, based on Commission data in the 
2022 Universal Service Monitoring Report, as of December 31, 2021, 
there were 127 providers that reported they were engaged in the 
provision of interexchange services. Of these providers, the Commission 
estimates that 109 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, the 
Commission estimates that the majority of providers in this industry 
can be considered small entities.
    29. Local Resellers. Neither the Commission nor the SBA have 
developed a small business size standard specifically for Local 
Resellers. Telecommunications Resellers is the closest industry with a 
SBA small business size standard. The Telecommunications Resellers 
industry comprises establishments engaged in purchasing access and 
network capacity from owners and operators of telecommunications 
networks and reselling wired and wireless telecommunications services 
(except satellite) to businesses and households. Establishments in this 
industry resell telecommunications; they do not operate transmission 
facilities and infrastructure. Mobile virtual network operators (MVNOs) 
are included in this industry. The SBA small business size standard for 
Telecommunications Resellers classifies a business as small if it has 
1,500 or fewer employees. U.S. Census Bureau data for 2017 show that 
1,386 firms in this industry provided resale services for the entire 
year. Of that number, 1,375 firms operated with fewer than 250 
employees. Additionally, based on Commission data in the 2022 Universal 
Service Monitoring Report, as of December 31, 2021, there were 207 
providers that reported they were engaged in the provision of local 
resale services. Of these providers, the Commission estimates that 202 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    30. Toll Resellers. Neither the Commission nor the SBA have 
developed a small business size standard specifically for Toll 
Resellers. Telecommunications Resellers is the closest industry with a 
SBA small business size standard. The Telecommunications Resellers 
industry comprises establishments engaged in purchasing access and 
network capacity from owners and operators of telecommunications 
networks and reselling wired and wireless telecommunications services 
(except satellite) to businesses and households. Establishments in this 
industry resell telecommunications; they do not operate transmission 
facilities and infrastructure. Mobile virtual network operators (MVNOs) 
are included in this industry. The SBA small business size standard for 
Telecommunications Resellers classifies a business as small if it has 
1,500 or fewer employees. U.S. Census Bureau data for 2017 show that 
1,386 firms in this industry provided resale services for the entire 
year. Of that number, 1,375 firms operated with fewer than 250 
employees. Additionally, based on Commission data in the 2022 Universal 
Service Monitoring Report, as of December 31, 2021, there were 457 
providers that reported they were engaged in the provision of toll 
services. Of these providers, the Commission estimates that 438 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    31. Other Toll Carriers. Neither the Commission nor the SBA has 
developed a definition for small businesses specifically applicable to 
Other Toll Carriers. This category includes toll carriers that do not 
fall within the categories of interexchange carriers, operator service 
providers, prepaid calling card providers, satellite service carriers, 
or toll resellers. Wired Telecommunications Carriers is the closest 
industry with a SBA small business size standard. The SBA small 
business size standard for Wired Telecommunications Carriers classifies 
firms having 1,500 or fewer employees as small. U.S. Census Bureau data 
for 2017 show that there were 3,054 firms in this industry that 
operated for the entire year. Of this number, 2,964 firms operated with 
fewer than 250 employees. Additionally, based on Commission data in the 
2022 Universal Service Monitoring Report, as of December 31, 2021, 
there were 90 providers that reported they were engaged in the 
provision of other toll services. Of these providers, the Commission 
estimates that 87 providers have 1,500 or fewer employees. 
Consequently, using the SBA's small business size standard, most of 
these providers can be considered small entities.
    32. Payphone Service Providers (PSPs). Neither the Commission nor 
the SBA have developed a small business size standard specifically for 
payphone service providers, a group that includes incarcerated people's 
services providers. Telecommunications Resellers is the closest 
industry with a SBA small business size standard. The 
Telecommunications Resellers industry

[[Page 68373]]

comprises establishments engaged in purchasing access and network 
capacity from owners and operators of telecommunications networks and 
reselling wired and wireless telecommunications services (except 
satellite) to businesses and households. Establishments in this 
industry resell telecommunications; they do not operate transmission 
facilities and infrastructure. Mobile virtual network operators (MVNOs) 
are included in this industry. The SBA small business size standard for 
Telecommunications Resellers classifies a business as small if it has 
1,500 or fewer employees. U.S. Census Bureau data for 2017 show that 
1,386 firms in this industry provided resale services for the entire 
year. Of that number, 1,375 firms operated with fewer than 250 
employees. Additionally, based on Commission data in the 2022 Universal 
Service Monitoring Report, as of December 31, 2021, there were 36 
providers that reported they were engaged in the provision of payphone 
services. Of these providers, the Commission estimates that 32 
providers have 1,500 or fewer employees. Consequently, using the SBA's 
small business size standard, most of these providers can be considered 
small entities.
    33. Telecommunications Relay Service (TRS) Providers. 
Telecommunications relay services enable individuals who are deaf, hard 
of hearing, deafblind, or who have a speech disability to communicate 
by telephone in a manner that is functionally equivalent to using voice 
communication services. Internet-based TRS connects an individual with 
a hearing or a speech disability to a TRS communications assistant 
using an internet Protocol-enabled device via the internet, rather than 
the public switched telephone network. Video Relay Service (VRS) one 
form of internet-based TRS, enables people with hearing or speech 
disabilities who use sign language to communicate with voice telephone 
users over a broadband connection using a video communication device. 
Internet Protocol Captioned Telephone Service (IP CTS) another form of 
internet-based TRS, permits a person with hearing loss to have a 
telephone conversation while reading captions of what the other party 
is saying on an internet-connected device. A third form of internet-
based TRS, internet Protocol Relay Service (IP Relay), permits an 
individual with a hearing or a speech disability to communicate in text 
using an internet Protocol-enabled device via the internet, rather than 
using a text telephone (TTY) and the public switched telephone network. 
Providers must be certified by the Commission to provide VRS and IP CTS 
and to receive compensation from the TRS Fund for TRS provided in 
accordance with applicable rules. Analog forms of TRS, text telephone 
(TTY), Speech-to-Speech Relay Service, and Captioned Telephone Service, 
are provided through state TRS programs, which also must be certified 
by the Commission.
    34. Neither the Commission nor the SBA have developed a small 
business size standard specifically for TRS Providers. All Other 
Telecommunications is the closest industry with a SBA small business 
size standard. Internet Service Providers (ISPs) and Voice over 
internet Protocol (VoIP) services, via client-supplied 
telecommunications connections are included in this industry. The SBA 
small business size standard for this industry classifies firms with 
annual receipts of $35 million or less as small. U.S. Census Bureau 
data for 2017 show that there were 1,079 firms in this industry that 
operated for the entire year. Of those firms, 1,039 had revenue of less 
than $25 million. Based on Commission data there are 14 certified 
internet-based TRS providers and two analog forms of TRS providers. The 
Commission however does not compile financial information for these 
providers. Nevertheless, based on available information, the Commission 
estimates that most providers in this industry are small entities.
    35. All Other Telecommunications. This industry is comprised of 
establishments primarily engaged in providing specialized 
telecommunications services, such as satellite tracking, communications 
telemetry, and radar station operation. This industry also includes 
establishments primarily engaged in providing satellite terminal 
stations and associated facilities connected with one or more 
terrestrial systems and capable of transmitting telecommunications to, 
and receiving telecommunications from, satellite systems. Providers of 
internet services (e.g., dial-up ISPs) or Voice over Internet Protocol 
(VoIP) services, via client-supplied telecommunications connections are 
also included in this industry. The SBA small business size standard 
for this industry classifies firms with annual receipts of $40 million 
or less as small. U.S. Census Bureau data for 2017 show that there were 
1,079 firms in this industry that operated for the entire year. Of 
those firms, 1,039 had revenue of less than $25 million. Based on this 
data, the Commission estimates that the majority of ``All Other 
Telecommunications'' firms can be considered small.

E. Description of Projected Reporting, Recordkeeping, and Other 
Compliance Requirements for Small Entities

    36. IPCS providers, including any that may be small entities, will 
need to change their operations, recordkeeping, and reporting to comply 
with the requirements of the Report and Order. These requirements 
include compliance with the rate caps the Report and Order establishes 
for IPCS. While the new rate cap structure is lower than the 
preexisting per-minute rate caps, given that the rate caps are based on 
cost data provided by IPCS providers, including smaller providers, 
small entities are likely to be able to recover their costs in the same 
manner as larger providers. Additionally, because the rate caps apply 
to both interstate and intrastate IPCS, the new rate cap structure 
reduces the recordkeeping and reporting burdens of complying with the 
Commission's rules with regards to audio IPCS because providers will no 
longer need to determine the jurisdictional nature of each call. The 
Report and Order's requirements also include a prohibition on the 
assessment of ancillary service charges associated with IPCS, which 
will greatly reduce the recordkeeping burdens on providers and simplify 
their billing operations.
    37. The Report and Order prohibits IPCS providers from paying site 
commissions of any kind associated with IPCS and eliminates the 
requirement under the Commission's rules for providers to label, and 
disclose the source of, those payments on consumers' bills. The Report 
and Order requires that, where facilities claim to incur costs related 
to IPCS, providers are to determine whether those costs are in fact 
used and useful in the provision of IPCS and are, therefore, 
reimbursable under the Commission's rules. These changes will reduce 
the burdens of the Commission's billing rules, while requiring that 
IPCS providers make determinations regarding whether cost claims 
submitted to them by facilities are consistent with Commission 
requirements.
    38. The Report and Order allows providers the option to offer 
alternate pricing plans in addition to providing IPCS at per-minute 
rates. IPCS providers may elect whether to offer such plans, and should 
they elect to do so, they may determine the format of such plans, 
provided that these plans comply with the Commission's generally 
applicable IPCS rules, certain specified limitations, and other 
safeguards adopted in the Report and Order. The Report and Order

[[Page 68374]]

establishes additional requirements for alternative pricing plans 
regarding dropped communications, automatic renewals, and consumer 
cancellation.
    39. The Report and Order adopts consumer disclosure requirements 
applicable to all IPCS, including requirements that providers disclose 
their IPCS rates, charges, and associated practices on their publicly 
available websites in a manner that is easily accessible and available 
to all members of the public. Providers must also make these 
disclosures available via their online and mobile applications, if 
consumers use such applications to enroll, and on paper, upon a 
consumer's request. The Report and Order further requires providers to 
make available billing statements and statements of account to account 
holders on a monthly basis, and details regarding the timing, manner, 
and content requirements for these and other disclosure documents for 
alternate pricing plans. The Report and Order also ensures that the 
consumer disclosure rules, as amended, apply to all IPCS providers 
subject to the Commission's expanded jurisdiction under the Martha 
Wright-Reed Act.
    40. The Report and Order extends the Commission's rules regarding 
inactive accounts to apply to all accounts that can be used to pay an 
IPCS-related rate or charge, to the extent they are controlled by IPCS 
providers or their affiliates. The Report and Order reaffirms that 
providers are barred from improperly disposing of unused funds in 
inactive accounts (which includes disposing of such funds before 180 
calendar days of continuous account inactivity has passed), and are 
required to undertake reasonable efforts to refund unused funds. The 
Report and Order expands upon these rules, including by requiring 
providers to (1) contact the relevant account holder if and when they 
become aware that an incarcerated person has been released or 
transferred or upon the expiration of the 180-day inactivity period, 
(2) issue refunds within 30 calendar days of a request from an account 
holder, or of an account being deemed inactive (even in the absence of 
such a request), and (3) notify account holders of the status of IPCS 
accounts prior to their being deemed inactive. However, the Report and 
Order limits the requirement for automatic refunds (i.e., in the 
absence of a consumer's specific request) to account balances of 
greater than $1.50. The Report and Order also clarifies what 
``reasonable efforts'' entail, the procedures to follow if ``reasonable 
efforts'' to refund inactive accounts fail, and which refund mechanisms 
providers may use. Additionally, the Report and Order reaffirms and 
clarifies the exception to these rules that allows a provider to 
dispose of funds in inactive accounts in compliance with a controlling 
judicial or administrative mandate.
    41. The Report and Order modifies the scope and content of the 
annual reporting requirements, to reflect the Commission's expanded 
jurisdiction under the Martha Wright-Reed Act, to include the full 
scope of IPCS and all providers of IPCS, and to reflect the changes to 
the Commission's rules adopted in the Report and Order. The Report and 
Order also amends the Commission's part 14 rules as appropriate to 
reflect the Martha Wright-Reed Act's expansion of the Communications 
Act's definition of ``advanced communication service.'' It also 
modifies the Commission's rules to allow a form of enterprise 
registration for the use of Internet Protocol Captioned Telephone 
Service (IP CTS) in carceral facilities and clarifies that internet-
based IPCS providers may provide access to traditional (TTY-based) TRS 
via real-time text. The Report and Order on Reconsideration also amends 
the Commission's rules to require that VRS and IP CTS providers update 
an incarcerated person's registration information within 30 days of 
receiving written notification from such person, the correctional 
authority, or IPCS provider of an incarcerated person's release or 
transfer.

F. Steps Taken To Minimize the Significant Economic Impact on Small 
Entities, and Significant Alternatives Considered

    42. The RFA requires an agency to provide, ``a description of the 
steps the agency has taken to minimize the significant economic impact 
on small entities . . . including a statement of the factual, policy, 
and legal reasons for selecting the alternative adopted in the final 
rule and why each one of the other significant alternatives to the rule 
considered by the agency which affect the impact on small entities was 
rejected.''
    43. In the Report and Order, the Commission adopts a new, more 
comprehensive set of rate caps that differentiate between prisons and 
jails, and between four different sizes of jails--large, medium, small 
and very small--based on average daily population (ADP). The use of 
four different size tiers is supported in the record and accounts for 
differences in costs incurred by providers serving these different 
facility sizes. The Commission conducts a cost analysis specific to 
each size tier using data submitted by IPCS providers and adopts new 
rate caps for each of these facility size and type categories for both 
audio and video IPCS. The Commission believes that these actions 
properly recognize that some jails may be more costly for providers to 
serve than prisons, and similarly that jails with smaller ADPs may be 
more costly for providers to serve than those with larger ADPs.
    44. Compliance with the Commission's new audio and video rate caps 
and its rules eliminating site commission payments will be required by 
January 1, 2025 for prisons and for jails with ADPs of 1,000 or above 
incarcerated persons where no site commissions mandated by law are 
currently paid; by April 1, 2025 for jails with ADPs less than 1,000 
where no site commissions mandated by law are currently paid; and by 
July 1, 2025 for all size facilities where site commissions mandated by 
law are currently paid. The Commission extended the compliance deadline 
for providers serving smaller jails to account for the additional time 
that these facilities, and the providers that serve them, may need to 
adapt to the changes adopted in the Report and Order.
    45. The Commission recognizes that it cannot foreclose the 
possibility that in certain limited instances, certain providers, 
possibly smaller providers with less ability to spread their costs over 
a larger number of facilities or minutes of use, may not be able to 
recover their costs of providing IPCS under the rate caps adopted in 
the Report and Order. To minimize the burden on such providers, the 
Commission retains, with modifications, its waiver process, which 
allows providers to seek relief from its rules at the facility or 
contract level if they can demonstrate that they are unable to recover 
their used and useful IPCS-related costs at that facility or for that 
contract. The Commission modifies this process to reflect the 
provisions of the Martha Wright-Reed Act, including its new authority 
thereunder. The waiver process will allow the Commission to review 
individual providers' data and potentially allow these providers to 
charge rates that enable them to recover their costs of providing IPCS 
at that facility or under that contract. This waiver process should 
benefit any IPCS providers that may be small businesses unable to 
recover their costs under the new rate caps.
    46. In the Report and Order, the Commission prohibits providers 
from assessing ancillary service charges in

[[Page 68375]]

addition to per-minute rates for IPCS. The Commission incorporates the 
costs of providing ancillary services in its rate caps to allow 
providers the opportunity to recover their average costs of providing 
these ancillary services, while eliminating the burden of administering 
independent billing processes for each of these services. At the same 
time, eliminating all separately assessed ancillary service charges 
prevents providers from engaging in rent-seeking activity in their 
application of these charges, helping to ensure that IPCS rates and 
charges are just and reasonable.
    47. The Commission revises its rules to make clear that IPCS 
providers may meet the requirement to provide access to traditional TRS 
via real-time text, as an alternative to TTY transmissions, if real-
time text transmission is supported by the available devices and 
reliable service can be provided by this method. Permitting this 
alternative affords providers further flexibility in conducting their 
operations, and accommodates the needs of smaller providers that may 
have insufficient resources to expand or otherwise adjust their service 
format and infrastructure to enable TTY transmission.
    48. The Commission revises its rules to permit providers to 
implement alternate pricing plans, other than per-minute pricing, 
subject to rules and conditions to protect IPCS consumers. Any provider 
that adopts these plans must offer them as a voluntary alternative to 
per-minute pricing. Providers are not required to offer such plans, but 
should they elect to do so, they will have the flexibility to determine 
the format of the plans they offer. Permitting this additional means of 
providing IPCS affords providers, including smaller providers, further 
flexibility in conducting their operations.
    49. The Commission's rate caps incorporate the costs of only a 
subset of the safety and security measures reported by providers. The 
rate caps incorporate the costs of the two categories that the 
Commission finds to be both used and useful in the provision of IPCS: 
Communications Assistance for Law Enforcement Act (CALEA) compliance 
measures and communications security services. Because cost recovery 
through the rate caps is only accommodated for a more limited set of 
such measures, providers, particularly smaller providers, may not need 
to be capable of offering more sophisticated safety and security 
services in order to successfully compete for IPCS contracts.

G. Report to Congress

    50. The Commission will send a copy of the Report and Order, 
including this FRFA, in a report to be sent to Congress pursuant to the 
Congressional Review Act. In addition, the Commission will send a copy 
of the Report and Order, including this FRFA, to the Chief Counsel for 
Advocacy of the SBA. A copy of the Report and Order and FRFA (or 
summaries thereof) will also be published in the Federal Register.

IV. Ordering Clauses

    51. Accordingly, it is ordered that, pursuant to the authority 
contained in Sec. Sec.  1, 2, 4(i)-(j), 201(b), 218, 220, 225, 255, 
276, 403, and 716 of the Communications Act of 1934, as amended, 47 
U.S.C. 151, 152, 154(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 
617, and the Martha Wright-Reed Just and Reasonable Communications Act 
of 2022, Public Law 117-338, 136 Stat 6156 (2022), this Order on 
Reconsideration, Clarification and Waiver is adopted.
    52. It is further ordered that, pursuant to the authority contained 
in Sec. Sec.  1, 2, 4(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 
716, of the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 
154(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 617, and the 
Martha Wright-Reed Just and Reasonable Communications Act of 2022, 
Public Law 117-338, 136 Stat 6156 (2022), the Petition for 
Reconsideration, filed August 27, 2021 and amended December 14, 2022, 
by the United Church of Christ, OC Inc. and Public Knowledge is 
dismissed as described herein.
    53. It is further ordered that, pursuant to the authority contained 
in Sec. Sec.  1, 2, 4(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 
716, of the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 
154(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 617, and the 
Martha Wright-Reed Just and Reasonable Communications Act of 2022, 
Public Law 117-338, 136 Stat 6156 (2022), the Petition for 
Reconsideration, filed August 21, 2021, by NCIC Inmate Communications 
is dismissed as described herein.
    54. It is further ordered that, pursuant to the authority contained 
in Sec. Sec.  1, 2, 4(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 
716, of the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 
154(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 617, and the 
Martha Wright-Reed Just and Reasonable Communications Act of 2022, 
Public Law 117-338, 136 Stat 6156 (2022), the Petition for Partial 
Reconsideration, filed January 9, 2023, by Hamilton Relay, Inc. is 
granted as described herein.
    55. It is further ordered that, pursuant to the authority contained 
in Sec. Sec.  1, 2, 4(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 
716, of the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 
154(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 617, and the 
Martha Wright-Reed Just and Reasonable Communications Act of 2022, 
Public Law 117-338, 136 Stat 6156 (2022), the Petition for 
Clarification, filed September 17, 2021, by Securus Technologies, LLC 
is dismissed as described herein.
    56. It is further ordered that, pursuant to the authority contained 
in Sec. Sec.  1, 2, 4(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 
716, of the Communications Act of 1934, as amended, 47 U.S.C. 151, 152, 
154(i)-(j), 201(b), 218, 220, 225, 255, 276, 403, and 617, and the 
Martha Wright-Reed Just and Reasonable Communications Act of 2022, 
Public Law 117-338, 136 Stat 6156 (2022), the Petition for Waiver, 
filed August 30, 2021, by Securus Technologies, LLC is dismissed in 
part and otherwise denied as described herein.
    57. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Order on Reconsideration, Clarification, and Waiver, 
including the Final Regulatory Flexibility Analyses, to the Chief 
Counsel for Advocacy of the Small Business Administration.
    58. It is further ordered that the Office of the Managing Director, 
Performance Evaluation and Records Management, shall send a copy of 
this Order on Reconsideration, Clarification, and Waiver in a report to 
be sent to Congress and the Government Accountability Officer pursuant 
to the Congressional Review Act, 5 U.S.C. 801(a)(1)(A).

Federal Communications Commission.
Marlene Dortch,
Secretary.
[FR Doc. 2024-18605 Filed 8-23-24; 8:45 am]
BILLING CODE 6712-01-P