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FCC, NARUC Seek to Enlist NGA in Lowering ICS Intrastate Rates

Statutory limits on state and federal authority stop the FCC and NARUC “from squarely addressing unjust and unreasonable intrastate rates” for inmate calling services, the federal agency and state commissioners’ association said in a Tuesday letter to the National Governors…

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Association. “Until there is Congressional or state legislative action, neither the FCC nor state commissions can cap the excessive intrastate rates that lie beyond our authority,” FCC Chairman Ajit Pai and NARUC President Brandon Presley wrote NGA Chair Andrew Cuomo, D-N.Y., and Vice Chair Asa Hutchinson, R-Ark. NGA “received the letter today and have been sharing it with governors’ offices,” a spokesperson emailed. FCC and NARUC efforts “are complicated by a patchwork of authority over rates and charges,” with FCC authority limited to interstate and international rates and some state regulators lacking jurisdiction over intrastate rates, Pai and Presley wrote. “We understand that in most, if not all, cases where a state commission does have jurisdiction, rates have been set at just and reasonable levels.” The FCC says “intrastate rates for debit or prepaid calls substantially exceed existing interstate rates in 45 states,” sometimes by up to seven times, while 27 states allow first-minute intrastate charges up to 26 times higher than for an interstate call, they said. “This situation is unacceptable, especially as the overwhelming majority of calls from incarcerated individuals -- roughly 80% -- are billed as intrastate.” Pai and Presley attached a list of facilities that charged intrastate rates above interstate caps last year. “Prompt and meaningful action on intrastate rates is critical to ensuring that incarcerated individuals and their loved ones can maintain vital connections during the COVID-19 pandemic and beyond.” Presley will propose a resolution at NARUC’s November meeting (see 2007240045).