Addicted to Kickbacks, Va Hangs Up on Prisoners and Families

The Federal Communications Commission did as expected and lowered prison phone rates. 

Virginia legislators did as expected – nothing. 

The FCC capped in state and local telephone rates to and from prisons, described as predatory and exorbitant by opponents of the rates. 

The regulatory body also capped additional fees and charges added to the rates, an additional expense for family and friends who pay.  

Yet the FCC retreated from capping or eliminating the commissions, often called kickbacks, firms pay states for exclusive contracts.

 In a statement issued Oct. 22, the FCC said its authority to regulate commissions is questionable.

 Instead, the FCC will implement new rules to discourage commissions to states.

The FCC can discourage but it can't cap or eliminate the commissions. States will have to address the issue. 

During the last General Assembly, Delegate Patrick A. Hope, a Northern Virginia democrat, introduced HB 1403, a bill to cap commissions at ten percent. And commissions would be funneled to the state's Prisoner Reentry Fund to help prisoners deal with life outside prison. The bill was left in the House Appropriations Committee.

Virginia ranks 48th among 50 states for the cost of prison phone rates, one of the highest in the nation. Click here for a survey of the rates, charges and public documents. 

Two firms – Global Tel-Link Corporation and Securus Technologies – dominate the market. Global Tel Link, or GTEL, according to PrisonPhoneJustice.org, a prisoner advocacy group, has the contract for state, regional and local jails in Virginia. 

The firm's lobbyist is the law firm of Maguire Woods, based in Richmond, according to the Virginia Public Access Project, a non-partisan watchdog. 

 Former Virginia Attorney General Jerry Gilgore, a Republican, is a managing partner of the firm and is listed as a Global Tel Link lobbyist. 

NorfolkSheriff Robert McCabe and Virginia Beach Sheriff Ken Stolle have received campaign donations from the firm, according to the Virginia Public Access Project.

Global Tel Link wasted no time expressing “grave concern” about the FCC's decision.

The firm issued a statement on PRNewswire-USWire saying the FCC's decision “ensures all parties lose” and “company will pursue a stay of FCC decision.”

GTL pitched the same propaganda often cited by firms whose profits might plummet – financial instability in the industry and reduced service to customers.  

In the press release, GTL CEO Brian Oliver issues a warning.

“In today’s decision, the FCC may ultimately hurt inmates and their families – the very people they set out to help. While they might see lower per-minute rates, they could be left with either the lowest quality of phone service or no phone service at all,” said GTL CEO Brian Oliver.

Here's a sampling of the rate caps:
  • 11 cents per minute for debit and prepaid calls in state or federal prisons.
  • 14 cents per minute for debit and prepaid calls in jails with 1,000 or more inmates.
  • 16 cents per minute for debit and prepaid calls in jails with 350-999 inmates.
  • 22 cents per minute for debit and prepaid calls in jails of up to 349 inmates.
  • Rates for collect calls are slightly higher in the first year and will be phased down to these caps over a two-year transition period.