[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Rules and Regulations]
[Pages 16560-16587]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-05359]



[[Page 16559]]

Vol. 87

Wednesday,

No. 56

March 23, 2022

Part II





Federal Communications Commission





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47 CFR Part 64





Third Mandatory Data Collection for Calling Services for Incarcerated 
People; Final Rule

Federal Register / Vol. 87 , No. 56 / Wednesday, March 23, 2022 / 
Rules and Regulations

[[Page 16560]]


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FEDERAL COMMUNICATIONS COMMISSION

47 CFR Part 64

[WC Docket No. 12-375, DA 22-52; FRS 69893]


Third Mandatory Data Collection for Calling Services for 
Incarcerated People

AGENCY: Federal Communications Commission.

ACTION: Final rule.

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SUMMARY: The Wireline Competition Bureau and the Office of Economics 
and Analytics (WCB/OEA) adopt an Order defining the contours and 
specific requirements of the forthcoming Third Mandatory Data 
Collection for calling services for incarcerated people.

DATES: The effective date of the Order is delayed indefinitely. The 
Federal Communications Commission will publish a document in the 
Federal Register announcing the effective date once the Office of 
Management and Budget (OMB) has provided the approval required by the 
Paperwork Reduction Act (PRA).

ADDRESSES: You may submit comments, identified by WC Docket No. 12-375, 
by any of the following methods:
    <bullet> Electronic Filers: Comments may be filed electronically 
using the internet by accessing the ECFS: http://apps.fcc.gov/ecfs/.
    <bullet> Paper Filers: Parties who choose to file by paper must 
file an original and one copy of each filing.
    <bullet> Filings can be sent by commercial overnight courier, or by 
first-class or overnight U.S. Postal Service mail. All filings must be 
addressed to the Commission's Secretary, Office of the Secretary, 
Federal Communications Commission.
    <bullet> Commercial overnight mail (other than U.S. Postal Service 
Express Mail and Priority Mail) must be sent to 9050 Junction Drive, 
Annapolis Junction, MD 20701.
    <bullet> U.S. Postal Service first-class, Express, and Priority 
mail must be addressed to 45 L Street NE, Washington, DC 20554.
    <bullet> Effective March 19, 2020, and until further notice, the 
Commission no longer accepts any hand or messenger delivered filings. 
This is a temporary measure taken to help protect the health and safety 
of individuals, and to mitigate the transmission of COVID-19. See FCC 
Announces Closure of FCC Headquarters Open Window and Change in Hand-
Delivery Policy, Public Notice, DA 20-304 (March 19, 2020). https://www.fcc.gov/document/fcc-closes-headquarters-open-window-and-changes-hand-delivery-policy.
    People with Disabilities: To request materials in accessible 
formats for people with disabilities (braille, large print, electronic 
files, audio format), send an email to <a href="/cdn-cgi/l/email-protection#afc9cccc9a9f9befc9cccc81c8c0d9"><span class="__cf_email__" data-cfemail="cbada8a8fefbff8bada8a8e5aca4bd">[email protected]</span></a> or call the 
Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-
418-0432 (TTY).

FOR FURTHER INFORMATION CONTACT: Erik Raven-Hansen, Pricing Policy 
Division of the Wireline Competition Bureau, at (202) 418-1532 or via 
email at <a href="/cdn-cgi/l/email-protection#4b0e39222065192a3d2e2566032a25382e250b2d2828652c243d"><span class="__cf_email__" data-cfemail="bcf9ced5d792eeddcad9d291f4ddd2cfd9d2fcdadfdf92dbd3ca">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: This is a summary of the FCC's Order, DA 22-
52, released January 18, 2022. The full text of this Order is available 
at https://docs.fcc.gov/public/attachments/DA-22-52A1.pdf.

I. Introduction

    1. By this Order, the WCB/OEA adopt instructions, a reporting 
template, and a certification form to implement a Third Mandatory Data 
Collection related to calling services for incarcerated people. The 
reporting template consists of a Word document and Excel spreadsheets. 
For simplicity, the Commission refers to these respective portions of 
the reporting template as the Word template and the Excel template. The 
Commission's actions today largely adopt the proposals contained in the 
Third MDC Proposal document, with certain refinements and reevaluations 
responsive to record comments.

II. Background

    2. In the 2021 ICS Order, the Commission directed WCB/OEA to 
develop a new data collection ``related to providers' operations, 
costs, demand, and revenues.'' The Commission has conducted two prior 
mandatory data collections (MDCs) relating to inmate calling services 
(calling services or ICS) in the past--the 2014 First Mandatory Data 
Collection and the 2019 Second Mandatory Data Collection. The 
Commission explained that it would use the collected information to set 
permanent interstate and international inmate calling services 
provider-related rate caps that more closely reflect providers' costs 
of serving correctional facilities. The Commission also emphasized that 
the information would enable it to evaluate and, if warranted, revise 
the current caps for ancillary service charges.
    3. The Commission delegated authority to WCB/OEA to implement this 
Third Mandatory Data Collection and directed WCB/OEA to develop a 
template and instructions for the collection. The Commission also 
directed WCB/OEA to consider suggestions in the record regarding, among 
other matters, data granularity, cost allocation, and specificity in 
definitions and instructions in designing the data collection, and ``to 
require each provider to fully explain and justify each step of its 
costing process'' including, where appropriate, ``to specify the 
methodology the provider shall use in any or all of those steps.''
    4. Pursuant to this delegation, WCB/OEA developed proposals for the 
Third Mandatory Data Collection and issued a Public Notice seeking 
comments on all aspects of the proposed collection. Concurrently, 
pursuant to the Paperwork Reduction Act of 1995 (PRA), the Commission 
published a document in the Federal Register seeking comment on 
potential burdens of the proposed one-time reporting requirements.
    5. The Commission received comments from numerous ICS providers, 
public interest advocates, and other interested parties in response to 
the Public Notice, and one comment on the PRA document. The Commission 
received comments or reply comments in response to this Public Notice 
from Benj Azose; Global Tel*Link Corporation (GTL); NCIC Inmate 
Communications (NCIC); Pay Tel Communications, Inc. (Pay Tel); Prison 
Policy Initiative, Inc. (PPI); Securus Technologies, LLC (Securus); 
Worth Rises; and the Wright Petitioners, the Benton Institute for 
Broadband & Society, and Public Knowledge (collectively, Public 
Interest Parties). GTL filed the comment in response to the PRA Notice. 
Recently, GTL issued a press release announcing it had changed its name 
to ViaPath Technologies. For purposes of this Order, to avoid confusion 
with reference to the record, the Commission will continue to refer to 
this entity as GTL. The Commission has thoroughly considered all of 
these filings in implementing this final data collection. The 
Commission has also made a small number of minor conforming edits to 
the instructions and reporting template to, for example, ensure 
consistency in the use of defined terms.

III. Discussion

A. Implementing the Third Mandatory Data Collection

    6. Pursuant to delegated authority, the Commission adopts the 
instructions, template, and certification form to implement the Third 
Mandatory Data Collection. Commenters generally

[[Page 16561]]

support the broad contours and specific requirements of the data 
collection as proposed in Third MDC Proposal document. In particular, 
the Commission received neither any comments criticizing the proposal 
to adopt separate Word- and Excel-formatted template forms, nor any 
proposals for an alternative organization or reporting structure. The 
Commission therefore implements the proposed structure.
    7. Commenters did, however, offer suggestions to ``improve the 
quality, accuracy, and utility of the data collected.'' In response to 
these suggestions, the Commission has reevaluated some of the proposals 
and refined certain aspects of the instructions and templates, as set 
forth in greater detail below. These refinements include expanding the 
reporting period for cost data from one year to three years, revising 
certain proposed definitions, revamping the reporting of costs related 
to site commissions and security services, and reorganizing the 
reporting of operating expenses. The Commission concludes that these 
and the other modifications the Commission makes appropriately balance 
the need for ``detailed and specific instructions and templates'' and 
the desire to avoid unduly burdening providers. This conclusion is 
consistent with the Commission's finding in the 2021 ICS Order that the 
benefits of conducting this data collection ``far outweigh any burden 
on providers'' given the ``adverse impact that unreasonably high rates 
and ancillary services charges have on incarcerated people and those 
family and loved ones they call.'' Commenters reinforce this Commission 
finding. In particular, commenters highlight the importance of the 
Third Mandatory Data Collection considering that the ``flaws in prior 
data collections impeded meaningful rate-setting analysis and, 
ultimately, led to the Third MDC.''
    8. In finalizing the requirements for the data collection, the 
Commission does not resolve issues that are pending in the ICS 
rulemaking, such as the extent to which security costs are or are not 
related to ICS, or whether the Commission should change its rules, as 
some parties have suggested. As the Commission explained in the 2021 
ICS Order, the purpose of this data collection is to provide the 
Commission with sufficient information to resolve various issues it is 
considering as part of that rulemaking, including the adoption of 
permanent interstate and international rate caps. Therefore, the 
Commission agrees with Worth Rises and others that this Order ``is not 
the proper administrative vehicle'' to revise the scope of the data 
collection or change Commission rules. In this regard, the Commission 
disagrees with GTL's suggestion that the Commission already has or will 
get certain information regarding, for example, ``site commission 
payments, correctional facilities served, and annual ICS and ancillary 
service charge revenues'' from the ICS Annual Reports. As the 
Commission explained in the 2021 ICS Order, ``while the Annual Reports 
contain useful and relevant marketplace information on providers' rates 
and charges, the Commissions disagrees with the contention that the 
Annual Reports provide sufficient data to establish just and reasonable 
interstate inmate calling services rates.'' The Commission does not 
revisit this view here. The Annual Reports do not require the type of 
detailed and disaggregated cost reporting that the Commission requires 
in this data collection, which the Commission has determined is an 
``essential prerequisite to adopting permanent interstate rate caps for 
both provider-related and facility-related costs.''
    9. In the sections that follow, the Commission first addresses 
proposals to change specific data requests and then turns to proposals 
for more general revisions to the instructions.

B. Specific Data Requests

1. Categories of Information Requested
    10. The Commission adopts a requirement for ICS providers to report 
customer prepayments separately and modify the definition and thus the 
calculation of ``Net Capital Stock'' to reflect the subtraction of 
customer deposits. PPI proposes this additional reporting requirement 
because ``customer prepayments are a material balance-sheet item for 
ICS carriers.'' The Commission finds that customer prepayments are a 
source of non-investor supplied capital that should be subtracted from 
the providers' net capital stock because providers are able to use 
these monies to finance their operations. This subtraction treats 
customer deposits as zero interest, non-investor supplied capital, 
since the return on net capital stock reflected in the providers' 
annual total expenses will be reduced in proportion to the reduction in 
net capital stock. The Commission also requires providers to report the 
interest, if any, paid on customer prepayments separately from other 
interest expenses; and the Commission allows providers to add the 
interest paid on the customer deposits directly to their capital 
expense and annual total expenses. The Commission modifies the 
definition of ``Capital Expenses'' to make this clear.
2. Factors Affecting the Costs of Providing Interstate and 
International Inmate Calling Services
    11. In the Third MDC Proposal document, the Commission sought 
feedback about the types of data it should collect to help it 
understand the factors that affect the costs of providing interstate 
and international calling services at the facility level. The 
Commission proposed to collect data on billed minutes, unbilled 
minutes, average daily population (ADP), the number of telephones and 
kiosks installed, the opening and closing of accounts, admissions, 
releases, and weekly turnover rate. Based on record support, the 
Commission finds it appropriate to collect information on each of these 
metrics, including figures for new account generation and account 
termination. Securus argues that it would be sufficient to collect only 
ADP and data on the opening and closing of accounts while GTL asserts 
that the number of kiosks or telephones and account generation and 
termination are inaccurate indicators of demand. GTL asks us to rely 
solely on billed and unbilled minutes to determine demand. The 
Commission declines to implement these proposals. As an initial matter, 
the ADP reported for a facility may not always accurately indicate the 
demand for ICS at the facility or otherwise fully capture the factors 
affecting providers' costs. Thus, other metrics are critical in 
assessing cost causality. Obtaining data on activities like account 
set-up and termination will help the Commission understand if and how 
such activities impact providers' costs. In view of the above, the 
Commission finds GTL's suggestion that it can rely solely on billed and 
unbilled minutes too narrow. Instead, the Commission finds that 
collecting additional information on facility population metrics and 
account generation and termination will help the Commission better 
understand the providers' cost structures, including at relatively 
small facilities.
    12. The Commission further adopts the proposal to require providers 
to submit weekly turnover rate data, where it is available. These data 
will supplement, and help the Commission correct potential flaws in, 
other population metrics (i.e., facility-level ADP data and the figures 
for account generation and account termination). Some commenters 
disagree with this approach, arguing that it will impose a significant 
burden on providers because the facilities keep the pertinent data and

[[Page 16562]]

often lag in reporting the measures, leaving ICS providers without a 
reliable way to track arrests and releases. Given the record evidence 
indicating that turnover rates may play a significant role in cost 
causality at smaller facilities, these data are important. Providers 
can work with the respective facilities they serve to compile this data 
where providers otherwise have no other way to ascertain it. The 
Commission therefore declines the suggestion that the Commission 
refrains from collecting turnover data, where available, simply because 
such data may not be available for all facilities. The Commission 
concludes that the various population measures the Commission adopts 
collectively supplement one-another and will help the Commission 
understand provider cost drivers, particularly at smaller jails.
3. Site Commission Data
    13. The Commission takes a series of steps to reform the proposals 
concerning site commission data in response to the record in an effort 
to obtain more detailed and disaggregated information. First, 
consistent with the Commission's actions in the 2021 ICS Order, the 
Commission adopts the proposal to require ICS providers to categorize 
their site commission payments as either legally mandated or 
contractually prescribed for each of calendar years 2019 through 2021. 
GTL claims that requiring this categorization for three calendar years 
would impose a significant burden on providers because they had no 
obligation to separate site commission payments before the rules 
adopted in the 2021 ICS Order became effective on October 26, 2021. The 
Commission finds that GTL's characterization of the burden is 
overstated. Once a provider establishes whether site commission 
payments were legally mandated or contractually prescribed as of 
October 26, 2021, the additional burden of determining their 
categorization during earlier portions of the reporting period should 
be relatively minor, particularly where the provider operated under the 
same facility contract for the prior two years.
    14. Second, after considering record comments, generally, regarding 
the proposed site commission data and various ways of supplementing 
reportable site commission data, the Commission modifies, on its own 
motion, the instructions and reporting requirements for site 
commissions to require providers to disaggregate their reported site 
commission payment information between monetary and in-kind payments 
and, further, between fixed and variable payments. The Commission 
likewise requires providers to disclose each entity to which they pay 
site commissions at each facility in any fashion, and the amount of the 
same. The Commission finds that this additional disaggregated 
information will improve the Commission's understanding of the market 
and the role that site commissions play in the provision of inmate 
calling services.
    15. Third, the Commission adopts Securus's proposal that it require 
providers to identify and report up-front site commission payments at 
the beginning of a contract as a subset of fixed site commissions. The 
Commission agrees that this information will ``provide a more accurate 
picture of overall site commissions,'' and the Commission finds that 
the associated burden on providers will be minimal.
    16. The Commission also adopts a new requirement instructing 
providers to explain how they allocate site commission payments between 
ICS and non-ICS operations. The Commission agrees with PPI that this 
will resolve uncertainty in situations where carriers make site 
commission payments for both ICS and non-ICS services. Gathering this 
information is also consistent with the directive that the Commission 
ensure providers allocate common expenses between their ICS operations 
and other operations. Although Securus urges us to reject this 
proposal, claiming that it will ``further inject[ ] the Commission into 
unregulated services over which it has no jurisdiction,'' this 
information will help the Commission determine what portion, if any, of 
site commission payments are properly attributable to ICS.
    17. The Commission rewords the instructions on the allocation of 
site commissions at the facility level to correct for a loophole that 
could otherwise result in some of a provider's total site commission 
payments not being allocated to any facility. Specifically, the 
Commission instructs providers to fully allocate any reported site 
commissions among the facilities associated with each site commission 
payment during the reporting period. One commenter suggests that the 
Commission should require providers to identify the contract that 
governs ICS at each facility and require disclosure of the amounts and 
types of site commissions paid under that contract so that the 
Commission may understand instances where site commission payments were 
received by non-facility entities such as a governmental agency. The 
Commission adopts the requirement for providers to report each entity 
to which they pay site commissions at each facility in any fashion, and 
the amount of the same as a less burdensome alternative that will help 
clarify site commission allocations at the facility level.
    18. The Commission declines to adopt additional reporting 
requirements regarding how site commission payments are spent or how 
the expenditures are related to ICS. To be useful, such information 
would need to be broken down into categories similar to those that the 
Commission requires for provider costs. In addition, providers would 
most likely have to obtain this detailed categorized information from 
facility administrators, who, in turn, would have to expend significant 
efforts in compiling the requested information. In many cases, these 
administrators may be reluctant to provide accurate information about 
their use, especially where it bears no relationship to inmate calling. 
Given these circumstances, the Commission declines to require providers 
to collect and report this information.
4. Information on Security Services
    19. In the Third MDC Proposal document, the Commission proposed to 
require providers to report their security costs in connection with 
their ICS and non-ICS-related operations as part of their reporting on 
site commission payments and sought comment on a number of associated 
issues. After considering the comments, the Commission expands the data 
collection to include additional inquiries regarding providers' 
security and surveillance services outside the site commission section, 
including inquiries requiring narrative explanations describing such 
services. ICS providers should be mindful that any reporting in the 
separate subcategories outside the Site Commissions section must be 
exclusive of the data reported in connection with site commissions to 
prevent double-counting of security and surveillance costs. This 
approach is consistent with Worth Rises' and the Public Interest 
Parties' arguments that the collection should capture all security 
costs, not just those incurred in the context of site commission 
payments, since many security and surveillance costs would be excluded 
under the proposed instructions. The Commission agrees and revises the 
instructions accordingly.
    20. The Commission declines, however, to adopt a proposal that it 
collect more detailed information on security and surveillance costs 
spanning over 30 suggested categories of information. The Commission 
agrees with certain ICS providers that the requested level of 
granularity would be

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overly burdensome. The Commission similarly declines to collect 
security and surveillance costs data ``at a granular level without ICS 
provider labeling'' or a breakdown of security costs included and 
excluded from in-kind site commission payments as requested by another 
commenter. The Commission invites providers to include in their written 
responses in the Word template any information they have that would be 
responsive to Worth Rises' requests. While the collection of robust 
security and surveillance cost data is a critical component of this 
data collection, the Commission finds that further granularity in 
reported security costs is unnecessary in light of the revisions it 
incorporates into the security and surveillance data collection as well 
as the adoption of instructions that require ICS providers to submit 
narrative explanations of such costs and cost allocations. The 
Commission directs providers to include in their narrative responses 
any information they have that would provide more granular information 
about their security and surveillance costs.
    21. Finally, the Commission declines to address the issue of what 
categories, if any, of security and surveillance costs may be 
recoverable through interstate and international ICS rates. That issue 
is expressly teed up in the Commission's 2021 ICS Notice and is a 
matter for the Commission to decide as part of its rulemaking 
proceeding. The record confirms it is not the proper subject of this 
data collection Bureau-level Order.
5. Ancillary Service Charges Data
    22. Although the Commission declines to modify the definition of 
``Revenue-Sharing Agreement'' as discussed below, the Commission 
revises the instructions to require providers to identify the payor and 
payee in each Revenue-Sharing Agreement, as requested by PPI. The 
Commission agrees that this additional information indicating the flow 
of funds between such entities will shed useful light on revenue-
sharing practices and help the Commission better understand how the 
marketplace for these agreements functions.
6. Other Proposals
    23. Video Calling Services. One commenter requests that the 
Commission expands the data collection to require the reporting of 
detailed cost and other data specifically on providers' video calling 
services. As an initial matter, the Commission requires providers to 
report costs for non-ICS services, including any video services they 
offer. The Commission declines, however, to require providers to report 
detailed cost and other data on video services at this time. In GTL v. 
FCC, the U.S. Court of Appeals for the District of Columbia Circuit 
(D.C. Circuit) vacated the Commission's reporting requirements related 
to video calling, finding that the Commission had not sufficiently 
explained how its statutory authority extends to such services. The 
Commission has not reached this question on remand. The Commission made 
no reference to video services in the guidelines it directed WCB/OEA to 
use in developing the data collection.
    24. Additional Data Concerning Contracts. The Commission also 
declines to adopt requests that it collect all contracts between ICS 
providers and correctional facilities. Although collection of all, or a 
sample of, such contracts might assist the interpretation of facility-
level data, the Commission finds at this time that the burden on 
providers of such a collection would outweigh any possible benefits, 
and would substantially increase the administrative burdens associated 
with processing the related data. Given that the Commission has 
authority to ask providers to produce specific contracts at any time if 
the need arises, the Commission declines to impose such an obligation 
at this time. The Commission made no reference to video services in the 
guidelines it directed WCB/OEA to use in developing the data 
collection.
    25. Information Concerning Patent Assets/Royalty Expenditures. The 
Commission is not persuaded to expand the collection to obtain 
information concerning the potential use of patents as a tool for 
dominant carriers to prevent competition, as one commenter asks. The 
commenter does not articulate why or how the information it requests, 
such as the identity of the payor/licensor or a copy of any contract, 
would aid the Commission's review of inmate calling services costs and 
pricing. The Commission also finds that the production of this 
information would lie outside the scope of this collection while unduly 
burdening providers. Accordingly, the Commission declines to require 
providers to submit information regarding patents.
    26. Miscellaneous. The Commission revises all references to 
``credit card'' in the instructions and templates to instead refer to 
``payment card,'' a change that will avoid confusion and help us obtain 
data associated with both debit and credit cards. The Commission 
clarifies that this adopted revision only relates to this data 
collection and does not extend to definitions contained in the 
Commission's rules. The Commission, declines, however, to create three 
new call categories: (1) Traditional billed calls (paid for by end 
users), (2) facility-paid calls, and (3) unbilled calls (for which 
carriers receive no compensation). The Commission finds the creation of 
these new reporting categories unnecessary and that the burdens 
associated with requiring providers to classify each call into one of 
these three new categories outweigh the potential benefits.
    27. The Commission revises the relevant portions of the 
instructions to require providers to submit individual-facility data 
where multiple facilities are covered by a single contract. As the 
record reflects, providers with multi-facility contracts often merge or 
repeat the same data for several facilities covered by a single 
contract. Where the responsive data are available, ICS providers must 
submit individual data for each facility even if that facility is 
covered by the same contract as other facilities. The Commission 
declines, however, a request to require providers to submit separate, 
unredacted site commission data. Although certain site commission data 
may be publicly available, the Commission cannot properly prejudge 
potential provider requests for confidential treatment of other site 
commission data. Instead, any such requests will be evaluated in 
accordance with the Protective Order in this proceeding. Filings 
containing legitimate confidential information can be appropriately 
redacted and filed pursuant to the guidance and limitations set forth 
in the Protective Order and the standard set forth in section 0.459 of 
the Commission's rules.
    28. The Commission also implements the proposal to allow ICS 
providers to elect whether to use the default weighted average cost of 
capital (WACC) of 9.75% or an alternative WACC. If an ICS provider 
chooses to use a higher alternative WACC, the provider must submit a 
narrative response fully documenting and justifying the alternative. 
The Commission reminds providers that if they elect to claim a WACC 
greater than 9.75% and do not fully document, explain, and justify 
their calculations, then WCB/OEA may apply the default WACC of 9.75% 
instead. The Commission agrees with the Public Interest Parties' 
argument that an adequate response requires providers to submit 
calculations and work papers as both are necessary to establish that 
the provider's alternative WACC estimate reflects the provider's own 
and a demonstrably comparable-group of firms' financial data and 
economic circumstances, the use of widely accepted methods to estimate 
debt and equity costs and capital

[[Page 16564]]

structure, and the collective risks of providing ICS, Automated Payment 
Service, Live Agent Service, and Paper Bill/Statement Service, as 
specified in the instructions.

C. General Revisions Related to the Adopted Instructions

1. Definitions
    29. Accounting Entity, Affiliate, Business Segment, and Company. 
The Commission adopts the definitions of ``Accounting Entity,'' 
``Affiliate,'' ``Business Segment,'' and ``Company'' set forth in the 
proposed instructions. Although the Commission appreciate concerns that 
these definitions could be read to allow selective reporting that would 
adversely affect the results of the data collection, as the Commission 
explains, the Commission finds it unnecessary to revise the definition 
of ``Company'' to mean ```the legal entity that contains the Accounting 
Entity.''' Investments and expenses to be assigned, attributed, or 
allocated to or among Inmate Calling Services, Automated Payment 
Service, Live Agent Service, Paper Bill/Statement Service, Other 
Ancillary Services, and non-ICS Services are presumptively limited to 
those investments and expenses reflected in the existing financial 
reports that are routinely and specifically prepared for the accounting 
entity for management, shareholder, or creditor review. The provider 
may rebut this presumption with data and analysis but faces a high bar 
given the obvious incentives to shift investments and expenses to rate-
regulated services. Although the Commission appreciates concerns that 
these definitions could be read to allow selective reporting that would 
adversely affect the results of the data collection, the Commission 
finds it unnecessary to revise the definition of ``Company'' to mean 
``the legal entity that contains the Accounting Entity.'' As noted 
above, this data collection is not the appropriate vehicle to modify 
the Commission's existing rules. Accordingly, commenter suggestions 
that urge the Commission to change the definitions of terms contained 
in the Commission's rules are also outside the scope of this data 
collection.
    30. Accordingly, the Commission adheres to the proposal to define 
``Company'' as synonymous with ``Accounting Entity,'' which means ``the 
smallest group of separate Business Segments that collectively account 
for 100% of the Provider's ICS-Related Operations and ICS-related 
investments, expenses, and revenues.'' Together with ``Business 
Segment,'' these terms ground the cost-reporting process in existing 
financial reports, while allowing us to avoid the cost allocation 
issues and reporting issues that adversely impacted the Commission's 
earlier mandatory data collections. In contrast, the definition of 
``Company'' suggested by one commenter would broaden the scope of the 
cost-reporting process significantly without improving cost-reporting 
results. If a calling services provider organizes its operations in a 
manner aimed at inflating its reported costs of providing calling 
services to incarcerated people, that fact should be apparent in the 
provider's response to the data collection.
    31. Security Services. The Commission revises the proposed 
definition of ``Security Services'' to prevent an overinclusive reading 
of the term. The revised definition is as follows: ``Security Services 
means any security and surveillance system, product, or service that a 
Provider supplies to a Facility, including any such system, product, or 
service that allows Incarcerated Persons to make telephone calls as 
permitted by the Facility; helps the Facility ensure that Incarcerated 
Persons do not call persons they are not allowed to call; helps monitor 
and record on-going calls; or inspects and analyzes recorded calls. 
Security Services also include other related systems, products, and 
services, such as a voice biometrics system, a PIN system, or a system 
concerning the administration of subpoenas concerning telephone calls. 
The classification of a system, product, or service as a Security 
Service does not mean that it is part of a Provider's ICS-Related 
Operations.'' Under the proposed definition, ``Security Services'' 
would include ``any security and surveillance system, product, or 
service that a Provider supplies to a Facility'' as well as ``any 
service that allows Incarcerated Persons to make telephone calls as 
permitted by the Facility.'' As commenters explain, this proposed 
definition could ``encompass a wide variety of non-security related 
services'' or ``would classify all ICS costs as `security services.'' 
The Commission agrees that, without amendment, the definition could 
skew provider responses. The revised definition removes this ambiguity, 
and also addresses concerns that the proposed definition is unclear and 
potentially overbroad. For further clarity, the Commission also removes 
the last sentence from the proposed definition as unnecessary and 
potentially confusing, in accord with comments in the record. The 
related requests for information the Commission adopts ask providers to 
identify and describe supplied Security Services in the context of In-
Kind Site Commissions or ICS-related Operations. ``ICS-Related 
Operations means the actions or tasks performed by the Provider or 
authorized personnel to deliver Inmate Calling Services and related 
Ancillary Services to Incarcerated Persons and those they call, 
including but not limited to billing, customer service, and other 
requirements as determined by contract or by law. It excludes all Site 
Commission payments, including In-Kind Site Commission payments.''
    32. Revenue-Sharing Agreement. The Commission declines to adopt the 
suggestion that it narrow the definition of ``Revenue-Sharing 
Agreement'' so that it applies only to ``a contract for services to be 
rendered by an Affiliate or Third Party, which also provides for 
payments to the Provider.'' The Commission concludes that the proposed 
definition is tailored to identify the general relationship between the 
provider and the contracted party or parties within the specific 
context identified in each of the related information requests, 
including the scenarios discussed in the record. Because the definition 
encompasses agreements regarding the provision of ICS or any ancillary 
service that ``directly or indirectly'' result in payments to 
providers, it encompasses both the practices of concern identified in 
the record and any additional, as yet undisclosed, revenue sharing 
practices in which providers have engaged.
    33. Site Commission-Related Definitions. The Commission also does 
not modify the definition of ``Monetary Site Commission'' to include 
site commissions that ``take the form of a payment in money or an 
equivalent accounting entry.'' Doing so would obscure the data 
regarding site commissions, rather than bring clarity to it. As 
proposed, the instructions intentionally delineate between monetary 
site commissions and in-kind site commissions by focusing on the actual 
exchange of money. This proposal would effectively reclassify an in-
kind site commission, like the provision of certain equipment, as a 
monetary site commission, collapsing the distinction the Commission 
intends to capture between in-kind site commissions and monetary site 
commissions. The Commission does agree, however, with PPI's suggestion 
that it clarify that the definition of ``Contractually Prescribed Site 
Commissions'' excludes legally mandated site commission payments even 
when such legally mandated

[[Page 16565]]

payments are reflected in a contract. This clarification appropriately 
recognizes that a contract for the provision of inmate calling services 
may recite or incorporate state mandates for the payment of site 
commissions that are not the type of discretionary negotiated payments 
contemplated by the term ``Contractually Prescribed Site Commissions.''
    34. Capital Expenses. The Commission finds it unnecessary to make 
the definition of ``Capital Expenses'' more comprehensive by 
specifically ``captur[ing] expenditures on intangible assets such as 
technology licenses o[r] expenses on software.'' The current definition 
already includes annual amounts related to the amortization of 
capitalized expenditures on such intangible assets. This clarification 
appropriately recognizes that a contract for the provision of inmate 
calling services may recite or incorporate state mandates for the 
payment of site commissions that are not the type of discretionary 
negotiated payments contemplated by the term ``Contractually Prescribed 
Site Commissions.''
    35. Average Daily Population. On its own motion, the Commission 
revises the definition of ``Average Daily Population'' to make clear 
that data reported for that measure must reflect actual populations, 
rather than any estimate. A provider unable to provide exact ADP data 
must provide its best estimate and, in the Word template, indicate that 
fact and provide the basis for its estimate.
2. Adopting a Three-Year Reporting Period
    36. The Commission expands the proposed reporting period from one 
year to three years for the entire Mandatory Data Collection, including 
the cost data, as supported by the record. This action revises the 
proposal to generally collect data for each calendar year from 2019 
through 2021, but to limit the collection of cost data to only calendar 
year 2021. Commenters, including both service providers and public 
interest groups, convince us that collecting cost data for three years 
will help prevent atypical, one-time expenses from being considered 
normal company costs, which they argue is a potential downside to 
collecting only a single year's cost data. This potentiality becomes 
particularly acute if providers incurred large one-time costs related 
to COVID-19, as the record suggests may have happened. Additionally, 
the Commission finds that the difference in burden between providing 
one year versus three years of cost data is marginal and far outweighed 
by the benefits of collecting cost data for three years. The adoption 
of a three-year reporting period also accounts for providers that argue 
that data for the year 2021 is the most relevant and the best indicator 
of costs. The three-year reporting period the Commission adopts 
includes the year 2021 such that if that year proves most relevant, the 
collected information will speak for itself. Further, the Commission 
finds that adopting a consistent three-year period for all the data 
requests will reduce confusion among reporting providers, as well as 
include the one-year time period prior to any anomalous effects caused 
by the COVID-19 pandemic. In inviting comment on the proposed 
instructions and templates, the Commission asked commenters how it 
should ``require providers that track costs only on a contract level to 
respond.'' GTL offers no specific proposal for how the Commission could 
structure contract-level reporting to avoid the issues the Commission 
encountered in the Second Mandatory Data Collection. GTL argues that 
this average ``grossly underestimate[s]'' providers' response times for 
that data collection as outlined in that Notice. Instead of providing 
an alternative estimate, GTL simply points out that it provides calling 
services to over 1,900 facilities and that, even if it took only an 
hour per facility to respond to the data collection, GTL alone would 
spend over 1,900 hours preparing its response. The Commission rejects 
GTL's argument. As the Commission has recognized, GTL is the largest 
calling services provider, ``with an estimated market share approaching 
50%.'' Given that market share, the Commission would expect that GTL's 
total response time would far exceed any industry average, regardless 
of the number of estimated hours. Nevertheless, the Commission will 
update its average burden estimate to account for the additional effort 
required to produce the additional two years of cost data that are now 
required and the other changes made in this Order. The Commission's 
revised estimate, which will be included in the subsequent PRA document 
related to this data collection, will reflect the likely burden of the 
data collection.
3. Rejecting Revisions to Financial Data Requests
    37. The Commission adopts the proposed requests for financial data 
set forth in the Public Notice and accompanying draft instructions and 
template--including conformance with generally accepted accounting 
principles--with a few minor exceptions suggested by the record as 
reflected herein. GTL argues that the financial data requests are 
``impossible to satisfy,'' are formatted specifically for dominant 
carriers, and are beyond the Commission's authority. The Commission 
disagrees. GTL fails to provide any specific explanation for why it 
would not be able to comply with the proposed request. GTL's claims are 
also contradicted by the comments of other providers, indicating that 
ICS providers ``already have access'' to the requested data, and that 
the requests are ``consistent with existing ICS provider recordkeeping 
practices.'' The Commission agrees with PPI that any purported 
similarity to accounting rules for dominant carriers is ``irrelevant,'' 
especially when corporations are ``frequently called upon to reformat 
[accounting] information for different reporting purposes.'' Finally, 
collecting this financial information is well within the Commission's 
statutory authority and the authority the Commission delegated to WCB/
OEA for this collection.
    38. The Commission declines one commenter's request that the 
Commission eliminate the proposed reporting concerning non-ICS 
services, as well as its suggestion that mandating such reporting is 
beyond the Commission's authority. Collecting the requested information 
regarding non-ICS services is essential if the Commission is to ensure 
that, consistent with section 201(b) of the Communications Act, the 
costs relied upon to set rates for regulated services--in this case, 
ICS and associated ancillary services--do not include the costs of 
nonregulated activities. Additionally, this information will help the 
Commission verify the accuracy and reasonableness of providers' cost 
allocations. Although the commenter complains of the burden involved in 
providing this information, the instructions enable providers to report 
non-ICS services' costs collectively, substantially reducing the 
burdens that would otherwise be associated with providing more granular 
information about the costs of nonregulated services. In addition, many 
rows of the data requests will not apply to non-ICS services, in which 
case providers only have to report amounts for relatively general 
categories such as ``Maintenance, repair, and engineering of site 
plant, equipment, and facilities,'' which should further limit the 
burden involved. At the same time, the Commission declines to broaden 
the financial data requests to include federal income taxes paid, 
because the

[[Page 16566]]

collection already requests that providers report ``[o]ther income tax-
related adjustments.''
4. Adopting Cost Allocation Procedures as Proposed
    39. The Commission adopts the cost allocation procedures as 
proposed in the Public Notice and decline to implement alternative 
proposals for the reasons that follow. As the Public Interest Parties 
recognize, ``[t]he Third MDC provides a detailed methodology for 
providers to implement the allocation consistently.'' The instructions 
require providers to fully document, explain, and justify all cost 
allocations they make. This already comprehensive requirement obviates 
the need to yield to record requests that the Commission provide 
examples and guidance regarding direct attribution, or that the 
Commission provide more detailed information on the methodology for 
such allocations. Other commenters seek revisions to the allocation of 
common costs relying on direct costs, either by allowing alternative 
methodologies of common cost allocation, or by suggesting that the 
Commission should consider whether, or when, additional common cost 
allocation metrics are appropriate. The Commission declines to modify 
the instructions requiring a direct cost allocation of common costs. 
While the Commission is aware that using direct costs to allocate 
common or indirect costs ``can be a problem if the direct costs are a 
very small share of total costs,'' the Commission notes that this cost 
allocation method is the last two steps in a hierarchy of 
methodologies. Thus, the Commission does not expect it to be used for a 
significant portion of any provider's costs, assuming each provider 
does its due diligence with respect to identifying and measuring the 
actual factors that drive its costs. Authorizing alternative approaches 
to the allocation of common costs would sacrifice the desired 
uniformity in the allocation process. The Commission similarly declines 
a request that it reorder the third and fourth cost allocation steps. 
The Commission finds no sound reason why the inversion of these two 
steps would be beneficial or efficient.
    40. Other comments suggest adding a contract-level allocation step 
to the hierarchy of allocation instructions. However, the instructions 
already explain that contract-level costs that are not directly 
assignable to facilities are to be treated as shared costs and provide 
steps for allocating such shared costs. The Commission finds no reason 
to make any changes to these instructions. The Commission is also 
unpersuaded that an allocation methodology based upon ADP will result 
in improved cost attribution, as one of the key objectives of the data 
collection is to ascertain from the cost data how costs vary among 
facilities that have different ADPs.
5. Adopting Certain Revisions to Response Granularity
    41. The Commission implements the proposal to require providers to 
submit data both at the company-wide level and at the correctional 
facility level. However, the Commission adjusts the reporting of 
operating expenses between the company-wide level and the facility 
level to ensure consistency in reporting of these expenses at all 
levels and to avoid imposing additional burdens on reporting providers. 
The Commission disagrees with commenters that argue that providers 
should be able to report cost information only at the contract level. 
The Commission finds that making such a change would substantially 
increase the likelihood of recreating the same data issues the 
Commission confronted in the context of the Second Mandatory Data 
Collection.
    42. The Commission initially proposed an allocation of operating 
costs for facilities that differed from that sought at the company 
level. The record persuades us to revise the requirements on the 
allocation of operating costs among facilities to parallel the level of 
disaggregation required at the company level. As Securus explains, the 
proposed instructions would require 16 categories of operating expenses 
to be reported at the company level, but only four categories of 
operating expenses to be reported at the facility level. Securus 
explains that requiring similar levels of disaggregation for both 
company and facility data ``would assist the Commission in identifying 
the different cost drivers between larger and smaller facilities'' and 
``help the Commission and interested parties understand and validate 
the cost-causative methodologies used.'' The Commission agrees that 
adopting a similar level of disaggregation for facility data as for 
company-wide data will yield more useful cost allocation results. In 
addition, requiring consolidation of accounts at the facility level 
appears to require an additional step for providers, thereby imposing 
an unnecessary burden. As the Commission seeks to maximize the benefits 
of the data collection while minimizing burdens to the extent possible, 
the Commission concludes that the same level of disaggregation should 
be required for both company-wide and facility-specific data. 
Considering that the Commission adopts facility-level disaggregation of 
operating expenses, the Commission clarifies that providers may use the 
same number of allocators they would have used to allocate expenses 
from the company-wide disaggregated accounts to the facility-level 
consolidated accounts. Thus, providers may use the same allocators for 
more than one cost category, instead of a separate allocator for each 
cost category. The proposed instructions and Excel template required: 
(a) 16 categories of operating expenses to be reported at the company-
wide level (site commissions are included); (b) 15 to be reported at 
the company-wide, service specific level (site commissions are 
excluded); and (c) four to be reported at the facility-specific, ICS 
level (reflecting an aggregation of the company-wide, service specific 
categories). The Commission modifies these instructions and the 
template to require 15 categories of operating expenses to be reported 
at the facility-specific, ICS level. (Site commissions are excluded.)
    43. The Commission declines to adopt GTL's proposal to permit 
providers to report information on a contract-only basis, rather than 
at the company and facility levels. GTL claims that reporting 
information at the company and facility levels would be ``directly 
contrary to the Commission's finding that `many providers assess their 
inmate calling services operations on a contract-by-contract basis.''' 
The Commission disagrees. The Commission made this observation in 
connection with its analysis of the responses to the Second Mandatory 
Data Collection and identified contract-level reporting as one of the 
principal limitations in the reported data. In requiring the Third 
Mandatory Data Collection, the Commission directed WCB/OEA to 
``incorporate lessons learned from the two prior data collections'' and 
to ``[e]nsure that the provider has directly assigned to specific 
contracts or facilities investments and expenses directly attributable 
to inmate calling services to the extent feasible.'' The decision to 
require facility-level reporting instead of contract-level reporting is 
a direct response to the Commission's directives to avoid a repeat of 
the problems that affected prior data collections. Accordingly, the 
Commission is unpersuaded that it should permit contract-level 
reporting, especially considering that other ICS providers support 
facility-level reporting.
6. Financial Reports
    44. The Commission adopts the proposal to require all providers to

[[Page 16567]]

submit audited financial statements or reports, or similar 
documentation, for the reporting period, to the extent they have been 
produced in the ordinary course of business. Providers must either 
submit these reports for each year of the reporting period or certify 
that they have not produced such reports in the ordinary course of 
business.
7. Effective Date
    45. The Commission's actions in this Order shall be effective on 
the date specified in a document to be published in the Federal 
Register announcing approval by the Office of Management and Budget 
(OMB).
    46. Pursuant to the Commission's directive set forth in the 2021 
ICS Order, responses to this Third Mandatory Data Collection will be 
due 120 days after WCB announces in a public document that OMB has 
approved the data collection.

IV. Procedural Matters

    47. Supplemental Final Regulatory Flexibility Act Analysis. As 
required by the Regulatory Flexibility Act of 1980, as amended (RFA), 
the Commission has prepared a Supplemental Final Regulatory Flexibility 
Analysis (FRFA) relating to this Order.
    48. Final Paperwork Reduction Act Analysis. The Order contains new 
or modified information collection requirements subject to the 
Paperwork Reduction Act of 1995 (PRA), Public Law 104-13. It will be 
submitted to OMB for review under section 3507(d) of the PRA. OMB, the 
general public, and other Federal agencies will be invited to comment 
on the new or modified information collection requirements contained in 
this proceeding. In addition, the Commission notes that pursuant to the 
Small Business Paperwork Relief Act of 2002, Public Law 107-198; see 44 
U.S.C. 3506(c)(4), the Commission previously sought specific comment on 
how the Commission might further reduce the information collection 
burden for small business concerns with fewer than 25 employees. The 
Commission has assessed the effects of the data collection on small 
business concerns, including those having fewer than 25 employees, and 
find that to the extent such entities are subject to the collection, 
any further reduction in the burden of the collection would be 
inconsistent with the objectives behind the collection.
    49. Congressional Review Act. The Commission will not send a copy 
of this Order 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).

V. Supplemental Final Regulatory Flexibility Analysis

    1. As required by the Regulatory Flexibility Act of 1980, as 
amended (RFA), the Wireline Competition Bureau (WCB) and the Office of 
Economics and Analytics (OEA) (collectively, WCB/OEA) have prepared 
this Supplemental Final Regulatory Flexibility Analysis (Supplemental 
FRFA) of the possible significant economic impact on small entities by 
the policies and rules adopted in this Order pertaining to the 
forthcoming Third Mandatory Data Collection for inmate calling services 
(ICS). A Supplemental Initial Regulatory Flexibility Analysis 
(Supplemental IRFA) was included with a Public Notice seeking comment 
on proposals to implement the Third Mandatory Data Collection in the 
Commission's Inmate Calling Services proceeding. WCB/OEA sought written 
public comment on the proposals in that Notice, including comment on 
the Supplemental IRFA. WCB/OEA did not receive comments directed toward 
the IRFA. The Commission will send a copy of the Order, including this 
Supplemental FRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration (SBA). In addition, the Order and the 
Supplemental FRFA (or summaries thereof) will be published in the 
Federal Register.

A. Need for, and Objectives of, the Data Collection

    2. In this Order, WCB/OEA adopt policies and specific requirements 
to implement the forthcoming Third Mandatory Data Collection for ICS. 
In the 2021 ICS Order, the Commission adopted a new data collection 
requirement. The Commission determined that this data collection would 
enable it to adopt permanent interstate and international rate caps, 
protect consumers against unjust and unreasonable ancillary service 
charges, and improve its continuing review of the inmate calling 
services marketplace.
    3. Pursuant to their delegated authority, WCB/OEA have prepared 
instructions and a template for the Third Mandatory Data Collection and 
are issuing the Order to adopt all aspects of these documents.

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

    4. WCB/OEA did not receive comments specifically addressing the 
rules and policies proposed in the Supplemental IRFA.

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

    5. The Chief Counsel did not file any comments in response to the 
rules and policies proposed in the Supplemental IRFA.

D. Description and Estimate of the Number of Small Entities to Which 
the Third Mandatory Data Collection Will Apply

    6. 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 Third Mandatory Data Collection. 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 
SBA.
    7. Regulatory Flexibility Analyses were incorporated in the 2020 
ICS Notice, 2021 ICS Order, and the Third MDC Proposal document. In 
those analyses, the Commission described in detail the small entities 
that might be affected. Accordingly, in this Order, for the 
Supplemental FRFA, the Commission hereby includes by reference the 
descriptions and estimates of the number of small entities from these 
previous Regulatory Flexibility Analyses.

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

    8. The Third Mandatory Data Collection requires ICS providers to 
submit, among other things, data and other information on calls, 
demand, operations, company and contract information, information about 
facilities served, revenues, site commission payments, and ancillary 
fees. WCB/OEA estimate that approximately 20 ICS providers will be 
subject to this one-time reporting requirement. In the aggregate, WCB/
OEA estimate that responses will take approximately 47,100 hours and 
cost approximately $418,570.

[[Page 16568]]

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

    9. The RFA requires an agency to describe any significant 
alternatives that it has considered in reaching its proposed approach, 
which may include the following four alternatives (among others): ``(1) 
the establishment of differing compliance or reporting requirements or 
timetables that take into account the resources available to small 
entities; (2) the clarification, consolidation, or simplification of 
compliance and reporting requirements under the rules for such small 
entities; (3) the use of performance rather than design standards; and 
(4) an exemption from coverage of the rule, or any part thereof, for 
such small entities.''
    10. The Third Mandatory Data Collection is a one-time request and 
does not impose a recurring obligation on providers. Because the 
Commission's 2021 ICS Order requires all ICS providers to comply with 
the mandatory data collection, the collection will affect smaller as 
well as larger ICS providers. WCB/OEA have taken steps to ensure that 
the data collection template is competitively neutral and not unduly 
burdensome for any set of providers and have considered the economic 
impact on small entities, as identified in comments filed in response 
to the Third MDC Proposal document and the Supplemental IRFA, in 
finalizing the instructions and the template for the Third Mandatory 
Data Collection. In response to the comments, WCB/OEA have refined 
certain aspects of the data collection, including by expanding the 
reporting period for cost data, revising certain proposed definitions, 
and reorganizing the manner in which providers report certain costs. 
These modifications avoid unduly burdening responding providers while 
ensuring that providers have sufficiently detailed and specific 
instructions to respond to the data collection.

G. Report to Congress

    11. The Commission will send a copy of the Order, including this 
Supplemental FRFA, in a report a report to be sent to Congress pursuant 
to the Small Business Regulatory Enforcement Fairness Act of 1996. In 
addition, the Commission will send a copy of the Order, including this 
Supplemental FRFA, to the Chief Counsel for Advocacy of the Small 
Business Administration. A copy of the Order, and Supplemental FRFA (or 
summaries thereof) will also be published in the Federal Register.

VI. Ordering Clauses

    12. Accordingly, it is ordered that, pursuant to the authority 
contained in sections 1, 2, 4(i)-(j), 155(c), 201(b), 218, 220, 276, 
and 403 of the Communications Act of 1934, as amended, 47 U.S.C. 151, 
152, 154(i)-(j), 155(c), 201(b), 218, 220, 276, and 403, and the 
authority delegated pursuant to sections 0.21, 0.91, 0.291, 0.201(d), 
0.271, 0.291 of the Commission's rules, 47 CFR 0.21, 0.91, 0.201(d), 
0.271, 0.291, this Order is adopted.
    13. It is further ordered that the Commission's Consumer and 
Governmental Affairs Bureau, Reference Information Center, shall send a 
copy of this Order, including the Supplemental Final Regulatory 
Flexibility Analysis, to the Chief Counsel for Advocacy of the Small 
Business Administration.

Federal Communications Commission.
Lynne Engledow,
Deputy Chief, Pricing Policy Division, Wireline Competition Bureau.


    Note: The following appendix, Third Mandatory Data Collection 
Instructions and Template, will not appear in the Code of Federal 
Regulations.

Third Mandatory Data Collection Instructions and Template

I. Data Collection Overview

    In the 2021 ICS Order, the Commission determined that a Third 
Mandatory Data Collection would enable it to adopt permanent interstate 
and international rate caps for inmate calling services (ICS) and to 
evaluate and, if warranted, revise the current Ancillary Service Charge 
caps for those services. The Commission delegated authority to the WCB/
OEA to implement this Third Mandatory Data Collection, ``including 
determining and describing the types of information required related to 
providers' operations, costs, demand, and revenues.'' The Commission 
also delegated authority to WCB/OEA ``to require each provider to fully 
explain and justify each step of its costing process and, where [WCB/
OEA] deem it appropriate, to specify the methodology the provider shall 
use in any or all of those steps.''
    The Commission directed WCB/OEA to develop a template and 
instructions for the collection. The Commission also directed that WCB/
OEA consider, in designing the data collection, various suggestions 
regarding data granularity, cost allocation, and specificity in 
definitions and instructions received from parties in response to the 
2020 ICS Notice, among other matters. Further, the Commission directed 
WCB/OEA to ``incorporate lessons learned from the two prior [ICS] data 
collections to ensure that [the Commission] collect[s], to the extent 
possible, uniform cost, demand, and revenue data from each provider.''
    These instructions and the accompanying template are designed to 
implement the Commission's directives. The template consists of a Word 
document and Excel spreadsheets. For simplicity, we refer to these 
respective portions of the template as the Word template and the Excel 
template.

II. General Instructions

    Our instructions first identify the entities which we require to 
respond to this data collection. We then review the information we 
require them to provide and describe the procedure for submitting the 
requisite responses.
    Throughout these instructions, the terms ``you'' and ``your'' refer 
to any entities directed to respond to these data requests which 
qualify as Inmate Calling Service Providers as we define them below.
    You may contact the Commission staff at 
<a href="/cdn-cgi/l/email-protection#4c212d22282d38233e35282d382d2f232020292f382523220c2a2f2f622b233a"><span class="__cf_email__" data-cfemail="d1bcb0bfb5b0a5bea3a8b5b0a5b0b2bebdbdb4b2a5b8bebf91b7b2b2ffb6bea7">[email protected]</span></a> if you have questions regarding whether 
your Company must file a data collection response or the requirements 
for such a response.

A. Who Must Submit Data

    All ICS Providers, as defined in our rules and as further described 
below, must submit complete, accurate, and truthful responses to this 
data collection. See Part III, below, for the definition of ``ICS 
Provider.'' Each group of affiliated Providers shall respond as a 
single entity, regardless of the number of separately incorporated 
companies or other entities within that group that provide ICS. See 
Part III, below, for the definitions of ``Accounting Entity'' and 
``Affiliates,'' which collectively make clear which entities must file 
responses to this Data Collection.
    A Subcontractor is included as an entity acting as an ICS Provider 
if it partners with or serves an ICS Provider which holds a direct 
contractual relationship with a correctional authority, and also, for 
example, completes calls for ICS Customers, bills Customers for those 
calls, and retains the revenue from those calls. Subcontractors are 
therefore not exempted from the definition of an ICS Provider on the 
grounds that they lack a direct contractual relationship with a 
correctional authority. Alternatively, where a Subcontractor completes 
calls but the ICS Provider bills Customers for those calls and then 
pays the Subcontractor, that Subcontractor may

[[Page 16569]]

also meet the definition of an ICS Provider. In contrast, an entity 
that provides billing and collection for Calling Services provided by a 
separate entity and remits those revenues may not, without more, meet 
the definition of an ICS Provider.
    Providers (and all Subcontractors thereof who meet the definition 
herein) must complete all portions of this data collection unless 
otherwise indicated. Section II.C below provides instructions as to how 
certain data shall be reported.

B. What Must Be Submitted

    You must fully and completely respond to each request for 
information in this data collection by using the Word and Excel 
templates attached to these instructions. Providers must report their 
information according to the best information in their possession, 
custody, or control.
    Your full response shall consist of several parts:
    (1) A Word document containing responses that require a narrative 
explanation (see Appendix A to these instructions);
    (2) An Excel spreadsheet containing responses that indicate 
specific numbers, percentages, and or information (see Appendix B to 
these instructions);
    (3) An audited financial statement or report for each Year from 
2019 through 2021; and
    (4) A signed certification of truthfulness, accuracy, and 
completeness (see Appendix C to these instructions).
    The Word and Excel templates and any additional spreadsheets must 
be submitted in machine-readable and manipulatable formats. As 
indicated, you also must submit an audited financial statement or 
report for each Year from 2019 through 2021, or similar documentation, 
to the extent they have been produced in the ordinary course of 
business. Additionally, all responses must be accompanied by a 
certification by an officer of the Provider that, based on information 
and belief formed after reasonable inquiry, the statements and 
information contained in the submission are true, accurate, and 
complete. You must complete the certification form provided in Appendix 
C before submitting your response. Submissions made without a completed 
certification form will be rejected and returned for correction and 
resubmission.
    We caution Providers that they must proceed in good faith and with 
absolute candor in responding to this data collection. We also caution 
that any failure to timely file an accurate, complete, and truthful 
response to this data collection may subject the Provider to sanctions, 
including, but not limited to, monetary forfeitures. See 47 U.S.C. 502, 
503(b). Willful false statements in responses to this data collection 
also are punishable by fine or imprisonment under 18 U.S.C. 1001.
    As a general matter, these instructions direct you to enter your 
responses to requests for certain information or numbers at specific 
places in these appendices. Where these instructions require you to 
provide the workpapers, formulas, calculations, or data underlying your 
responses, report and display the required information as clearly and 
succinctly as possible.
    Narrative responses are to be provided in the Word template. Use 
that template to provide any additional information needed to ensure 
that your response is full and complete, and to identify and explain 
any caveats associated with your response. The Word template shall also 
include formulas, explanations, and appropriate references for 
calculations, where necessary, including any explanations needed to 
make your entries on the Excel template transparent and understandable.
    Unless otherwise stated, use the Excel template to provide your 
responses to the inquiries that follow. As a general matter, your 
entries on that template will be for specific numbers or percentages 
(e.g., a Facility's Average Daily Population) or discrete information 
(e.g., a Facility's geographical coordinates). The Excel template has 
formulas in certain cells that operate in accordance with these 
instructions and use data you enter in other cells to facilitate a 
complete reporting of the required data. Data that you are required to 
``report'' include both the data that you enter in the cells and the 
data that are automatically generated by the Excel formulas. The Excel 
template uses ``N/A'' to identify cells in which no data are to be 
reported. Following the same format, you should add additional rows or 
columns to this template as necessary to complete your responses.
    Where indicated, please provide your responses for the three-year 
Reporting Period--from January 1, 2019, to December 31, 2021. Where 
inquiries do not specify a format for the Reporting Period, answer the 
question on a year-by-year basis, rather than in the aggregate for the 
Reporting Period.
    You must submit a valid entry on the designated template in 
response to each request in this data collection. If a request does not 
apply to your Company, enter ``N/A'' in the appropriate field, and use 
the Word document to fully explain the reasons for this response. If 
your responses are deemed incomplete or are not submitted in the 
required format, your filing may be rejected and returned to you for 
correction and resubmission.

C. Filing Deadline and Submission

    The Commission will submit this data collection, including all 
required forms, to the Office of Management and Budget (OMB) for its 
approval under the Paperwork Reduction Act of 1995, Public Law 104-13. 
Within seven business days of our receiving that approval, we will 
issue a Public Notice announcing that approval and setting the deadline 
by which you must submit your response to this data collection, which 
will be 120 days after we issue the Public Notice announcing OMB 
approval. We also will publish a notice in the Federal Register 
announcing OMB's approval of the data collection and the due date for 
your response.
    You must submit public versions of your response by filing and 
certifying the completed templates and certification form 
electronically, using the Commission's Electronic Comment Filing System 
(ECFS), by accessing the ECFS at https://www.fcc.gov/ecfs/.
    You may file any information that you believe should be afforded 
confidential treatment pursuant to the guidance and limitations in the 
Protective Order in this proceeding and by adhering to the standard set 
forth in section 0.459(b) of the Commission's rules. You may access the 
Protective Order through this link: https://apps.fcc.gov/edocs_public/attachmatch/DA-13-2434A1.pdf. Confidential versions of the reports must 
be submitted to the Secretary's office using the original Word and 
Excel templates provided by the Commission and in a machine-readable 
and manipulatable format. You must also provide courtesy copies of the 
confidential filing to WCB/OEA via email at 
<a href="/cdn-cgi/l/email-protection#2449454a4045504b565d40455045474b48484147504d4b4a644247470a434b52"><span class="__cf_email__" data-cfemail="f79a969993968398858e9396839694989b9b9294839e9899b7919494d9909881">[email protected]</span></a>.
    If your response is not completed properly, it may be rejected and/
or returned to you. For further information and any questions on 
completing your response, please contact Erik Raven-Hansen, Wireline 
Competition Bureau, Pricing Policy Division, at 202-418-1532 or at 
<a href="/cdn-cgi/l/email-protection#e1a493888acfb38097848fcca9808f92848fa1878282cf868e97"><span class="__cf_email__" data-cfemail="0d487f6466235f6c7b686320456c637e68634d6b6e6e236a627b">[email protected]</span></a>, or Richard Kwiatkowski, Office of Economics 
and Analytics, Economic Analysis Division, at 202-418-1383 or at 
<a href="/cdn-cgi/l/email-protection#f8aa919b90998a9cd6b38f91998c93978f8b9391b89e9b9bd69f978e"><span class="__cf_email__" data-cfemail="0c5e656f646d7e6822477b656d7867637b7f67654c6a6f6f226b637a">[email protected]</span></a>.

III. Relevant Definitions

    Accounting Entity means the smallest group of separate Business 
Segments that collectively account for 100% of the

[[Page 16570]]

Provider's ICS-Related Operations and ICS-related investments, 
expenses, and revenues.
    Admissions means the number of Incarcerated Persons booked into and 
housed in a Facility by formal legal documents and the authority of the 
courts or other official agency, including repeat offenders booked on 
new charges as well as persons sentenced to weekend programs who enter 
the Facility for the first time. It excludes Incarcerated Persons 
reentering the Facility after an escape, work release, medical 
appointment, treatment facility appointment, or bail and court 
appearance.
    Affiliates means any two or more companies, partnerships, or other 
legal entities where (a) one entity directly or indirectly owns or 
controls the other or others, (b) a Third Party controls or has the 
power to control both or all, (c) the entities share common ownership 
or have interlocking directorates, or (d) the entities share employees, 
equipment, and/or facilities. For purposes of this definition, the term 
``own'' means to own an equity interest (or the equivalent thereof) of 
more than 10%.
    Affiliate Group means the Company and its ICS and non-ICS 
Affiliates.
    Ancillary Service Charge means any charge Consumers may be assessed 
for, or in connection with, the interstate or international use of 
Inmate Calling Services that is not included in the per-minute charges 
assessed for such individual calls. Ancillary Service Charges that may 
be assessed are limited only to those listed in 47 CFR 64.6000(a)(1)-
(5) and consist of Automated Payment Fees, Live Agent Fees, Paper Bill/
Statement Fees, Fees for Single-Call and Related Services, and Third-
Party Financial Transaction Fees. All other Ancillary Service Charges 
are prohibited in connection with interstate and international Inmate 
Calling Services. For purposes of this definition, ``interstate'' 
includes any jurisdictionally mixed charge, as defined in 47 CFR 
64.6000(u).
    Ancillary Services means Permissible Ancillary Services and Other 
Ancillary Services.
    Annual Total Expenses means the sum of annual Operating Expenses 
and annual Capital Expenses.
    Automated Payment Fees means credit card payment fees, debit card 
payment fees, and bill processing fees, including fees for payments 
made by interactive voice response (IVR), through the internet, or by 
use of an Incarcerated Person Kiosk.
    Automated Payment Service means any service providing Customers of 
Inmate Calling Services with credit card payment, debit card payment, 
and bill processing services, including enabling payments by 
interactive voice response (IVR), web, or Incarcerated Person Kiosk.
    Average Daily Population or ADP means the sum of all Incarcerated 
Persons in a Facility for each day of a Year, divided by the number of 
days in the Year.
    Billed Calls means the number of Inmate Calling Services calls 
supplied during a Year for which payment is demanded.
    Billed Uses means the number of times Automated Payment Service, 
Live Agent Service, or Paper Bill/Statement Service is put into action 
during a Year and for which payment is demanded.
    Billed Transactions means the number of discrete instances where a 
seller supplies Single-Call and Related Service or Third-Party 
Financial Transaction Service and a buyer agrees to pay a price for 
that service.
    Billed Minutes means the number of Inmate Calling Services minutes 
supplied during a Year for which payment is demanded.
    Billed Revenues means gross sales, without adjustment for 
uncollectable accounts or expenses related to producing these sales, 
derived from the number of units of a service supplied during a Year 
for which payment is demanded.
    Business Segment means a component of a Company that generates its 
own revenues and creates its own products, product lines, or services 
and for which a financial report is routinely prepared for management, 
shareholder, or creditor review.
    Capital Expenses means the sum of (a) the Return that debt, 
preferred stock, and equity investors require; (b) interest paid on 
customer prepayments or deposits; (c) depreciation expense; (d) 
amortization expense; and (e) federal and state income tax expense 
attributable to the fraction of the Return attributable to equity 
holders.
    Cash Working Capital means the average investor-supplied capital a 
firm needs to fund its day-to-day operations.
    Company means the Accounting Entity unless otherwise indicated.
    Consumer means the party paying a Provider of Inmate Calling 
Services.
    Contractually Prescribed Site Commission means a Site Commission 
payment, other than a Legally Mandated Site Commission payment, 
required pursuant to a contract negotiated between a Facility and a 
Provider.
    Customer means the Incarcerated Person or the person who pays for 
ICS if that person is not the Incarcerated Person.
    Discretionary Tax or Discretionary Fee means a fee that a Provider 
must remit to federal, state, or local governments and may, but is not 
required to, recover it from Customers, including but not limited to 
fees for the Universal Service Fund.
    Facility means a Prison or Jail as those terms are defined 
elsewhere in this document.
    Fees for Single-Call and Related Services means billing 
arrangements whereby an Incarcerated Person's collect calls are billed 
through a Third Party on a per-call basis, where the called party does 
not have an account with the Provider of Inmate Calling Services or 
does not want to establish an account.
    Fixed Site Commission means a Site Commission that is assessed or 
paid without regard to ICS usage or revenues. Fixed Site Commissions 
include, but are not limited to, minimum annual guarantee payments, 
other lump-sum payments, and payments in kind that Providers make 
pursuant to ICS contracts.
    Gross Investment means the book value of an asset prior to 
subtracting accumulated depreciation or amortization.
    Incarcerated Person means a person detained in a Prison or Jail, 
regardless of the duration of the detention.
    Incarcerated Person Kiosk means a self-service transaction machine 
that a Provider of Inmate Calling Services owns or leases and makes 
available to Incarcerated Persons at a Facility to obtain ICS-Related 
Services, such as obtaining a calling card or depositing money in a 
prepaid account.
    Incarcerated Person Telephone means a telephone instrument or other 
device capable of initiating telephone calls and set aside by a 
Facility for use by Incarcerated Persons.
    Inmate Calling Services, Calling Services, and ICS mean a service 
that allows Incarcerated Persons to make calls to individuals outside 
the Facility where the Incarcerated Person is being held, regardless of 
the technology used to deliver the service.
    ICS-Related Operations means the actions or tasks performed by the 
Provider or authorized personnel to deliver Inmate Calling Services and 
related Ancillary Services to Incarcerated Persons and those they call, 
including but not limited to billing, customer service, and other 
requirements as determined by contract or by law. It excludes all Site 
Commission payments, including In-Kind Site Commission payments.
    ICS-Related Products and/or Services means any hardware, software,

[[Page 16571]]

applications, devices, products, or services used by a Provider or 
under a Provider's direction as part of its ICS-Related Operations. 
ICS-Related Products and/or Services also may support a Company's non-
ICS Products and Services.
    In-Kind Site Commission means a Site Commission that does not take 
the form of a Monetary Site Commission.
    Intrastate Communication means any communication that originates 
and terminates in the same state, territory, or possession of the 
United States (other than the Canal Zone), or the District of Columbia.
    International Communication means a communication or transmission 
from any state, territory, or possession of the United States, or the 
District of Columbia to points outside the United States.
    Interstate Communication means, pursuant to 47 U.S.C. 153(28), 
communication or transmission (a) from any state, territory, or 
possession of the United States (other than the Canal Zone), or the 
District of Columbia, to any other state, territory, or possession of 
the United States (other than the Canal Zone), or the District of 
Columbia, (b) from or to the United States to or from the Canal Zone, 
insofar as such communication or transmission takes place within the 
United States, or (c) between points within the United States but 
through a foreign country. Interstate Communication shall not, for 
purposes of these instructions, include wire or radio communication 
between points in the same state, territory, or possession of the 
United States, or the District of Columbia, through any place outside 
thereof, if such communication is regulated by a state commission.
    Jail means a facility of a local, state, or federal law enforcement 
agency that is used primarily to hold individuals who are: (a) Awaiting 
adjudication of criminal charges; (b) post-conviction and committed to 
confinement for sentences of one year or less; or (c) post-conviction 
and awaiting transfer to another facility. The term also includes city, 
county or regional facilities that have contracted with a private 
company to manage day-to-day operations; privately owned and operated 
facilities primarily engaged in housing city, county or regional 
Incarcerated Persons; facilities used to detain individuals operated 
directly by the Federal Bureau of Prisons or U.S. Immigration and 
Customs Enforcement, or pursuant to a contract with those agencies; 
juvenile detention centers; and secure mental health facilities.
    Legally Mandated Site Commission means a Site Commission payment 
required by state statutes or laws and regulations that are adopted 
pursuant to state administrative procedure statutes where there is 
notice and an opportunity for public comment such as by a state public 
utility commission or similar regulatory body with jurisdiction to 
establish Inmate Calling Services rates, terms, and conditions and that 
operate independently of the contracting process between Facilities and 
Providers.
    Live Agent Fee means a fee associated with the optional use of a 
live operator to complete Inmate Calling Services Transactions.
    Live Agent Service means providing Customers of Inmate Calling 
Services the optional use of a live operator to complete Inmate Calling 
Services Transactions.
    Mandatory Tax or Mandatory Fee means a fee that a Provider is 
required to collect directly from Customers and remit to federal, 
state, or local governments.
    Maximum Call Duration means the maximum limit, if any, that a 
Provider or Facility imposes on the length of ICS calls from a 
Facility.
    Monetary Site Commission means a Site Commission that takes the 
form of a monetary payment.
    Net Capital Stock means Gross Investment in assets, net of 
accumulated depreciation and amortization, accumulated deferred federal 
and state income taxes, and customer prepayments or deposits, plus an 
allowance for Cash Working Capital.
    Net Investment means the book value of an asset after subtracting 
accumulated depreciation or amortization.
    Operating Expenses means recurring expenses incurred to supply a 
service on a continuous basis, including but not limited to maintenance 
and repair of plant, equipment, and facilities; billing, collection, 
and customer care; general and administrative expense; other overhead 
expense; tax expense other than income tax expense; bad debt expense; 
and the Inmate Calling Service-specific expenses specified in this data 
request.
    Other Ancillary Services means an ancillary service that is not a 
Permissible Ancillary Service.
    Paper Bill/Statement Fees means fees associated with providing 
Customers of Inmate Calling Services an optional paper billing 
statement.
    Paper Bill/Statement Service means providing Customers of Inmate 
Calling Services an optional paper billing statement.
    Permissible Ancillary Services means Automated Payment Service, 
Live Agent Service, Paper Bill/Statement Service, Single-Call and 
Related Services, and Third-Party Financial Transaction Services, as 
defined in Part 64 of the Commission's rules and these instructions.
    Prison means a facility operated by a territorial, state, or 
federal agency that is used primarily to confine individuals convicted 
of felonies and sentenced to terms in excess of one year. The term also 
includes public and private facilities that provide outsource housing 
to other agencies such as the State Departments of Correction and the 
Federal Bureau of Prisons; and facilities that would otherwise fall 
under the definition of Jail but in which the majority of Incarcerated 
Persons are post-conviction or are committed to confinement for 
sentences of longer than one year.
    Provider, ICS Provider, and Provider of Inmate Calling Services 
mean any communications service provider that provides Inmate Calling 
Services, regardless of the technology used, as defined in 47 CFR 
64.6000(s). This definition includes all entities acting as 
Subcontractors as defined below, to the extent that their activities 
otherwise include the provision of Inmate Calling Services.
    Releases means the number of Incarcerated Persons released after a 
period of confinement (e.g., sentence completion, bail or bond 
releases, other pretrial releases, transfers to other jurisdictions, 
and deaths). It includes Incarcerated Persons who have completed 
weekend programs and are leaving the Facility for the last time. It 
excludes temporary discharges, such as discharges for work, medical or 
treatment appointments, court appearances, furloughs, and day 
reporting.
    Reporting Period means the three-year period from January 1, 2019, 
to December 31, 2021. Where inquiries do not specify a format for 
reporting, provide responses for each year of the Reporting Period.
    Return means the product of a Company's Net Capital Stock and its 
Weighted Average Cost of Capital.
    Revenue-Sharing Agreement means any agreement, whether express, 
implied, written, or oral between a Provider or any Affiliate and a 
Third Party, such as a financial institution, or between a Provider and 
any of its Affiliates that, over the course of the agreement, directly 
or indirectly results in the payment of all or part of the revenue 
received from the provision of ICS or any Ancillary Service to the 
other party to the agreement.
    Security Services means any security and surveillance system, 
product, or

[[Page 16572]]

service that a Provider supplies to a Facility, including any such 
system, product, or service that allows Incarcerated Persons to make 
telephone calls as permitted by the Facility; helps the Facility ensure 
that Incarcerated Persons do not call persons they are not allowed to 
call; helps monitor and record on-going calls; or inspects and analyzes 
recorded calls. Security Services also include other related systems, 
products, and services, such as a voice biometrics system, a PIN 
system, or a system concerning the administration of subpoenas 
concerning telephone calls. The classification of a system, product, or 
service as a Security Service does not mean that it is part of a 
Provider's ICS-Related Operations.
    Single-Call and Related Services means billing arrangements whereby 
an Incarcerated Person's collect calls are billed through a Third Party 
on a per-call basis, where the called party does not have an account 
with the Provider of Inmate Calling Services.
    Site Commissions means any form of monetary payment, in kind 
payment, gift, exchange of services or goods, fee, technology 
allowance, or product that a Provider of Inmate Calling Services or 
Affiliate of a Provider of Inmate Calling Services may pay, give, 
donate, or otherwise provide to an entity that operates a correctional 
institution, an entity with which the Provider of Inmate Calling 
Services enters into an agreement to provide ICS, a governmental agency 
that oversees a Facility, the city, the county, or state where a 
Facility is located, or an agent of any such Facility.
    Subcontractor means an entity that provides ICS to a Facility and 
has a contract or other arrangement with another Provider for provision 
of ICS to that Facility. A Subcontractor need not have a contractual 
relationship with the Facility.
    Third Party means an entity that is not a Provider, an Affiliate of 
a Provider, or a Facility.
    Third-Party Financial Transaction Fees means the exact fees, with 
no markup, that Providers of Inmate Calling Services are charged by 
Third Parties to transfer money or process financial transactions to 
facilitate a Customer's ability to make account payments via a Third 
Party.
    Third-Party Financial Transaction Services means the transfer of 
money or the processing of financial transactions to facilitate a 
Customer's ability to make account payments via a Third Party.
    Unbilled Calls means the number of Inmate Calling Services calls 
supplied during a Year for which payment is not demanded.
    Unbilled Minutes, Unbilled Minutes of Use, and Unbilled MOU mean 
the number of Inmate Calling Services minutes supplied during a Year 
for which payment is not demanded.
    Variable Site Commissions means Site Commissions that are assessed 
on a per-unit basis, such as a per-minute basis, percentage of ICS 
revenue, or number of ICS phones at a Facility.
    Weekly Turnover Rate means the percentage calculated by subtracting 
the average number of weekly Releases during a Year from the average 
number of weekly Admissions during that Year and then dividing the 
resulting number by the Average Daily Population for that Year.
    Weighted Average Cost of Capital means the sum of the cost of 
equity, the cost of preferred stock, and the cost of debt, each 
expressed as an annual percentage rate and weighted by its proportion 
in the capital structure.
    Year means a calendar year, from January 1 through December 31 of 
any given year.

IV. Required Information

    This Part sets forth the information you must provide in your 
response to this data collection. In some cases, the data are to be 
reported on the attached Word template, while other questions require a 
narrative response on the Excel template. In general, this Part 
proceeds from the general (Company-level data) to the specific 
(Facility-level data).
    This Part begins by asking you to provide general information about 
your Company, including information pertaining to your ICS-Related 
Operations. Next, we direct you to provide financial data and related 
information at the Company level. We then direct you to disaggregate 
that financial information into service-specific categories and provide 
detailed instructions regarding cost allocation in connection with this 
step. We also instruct you how to report data where a Provider has an 
agreement with another entity for the provision of ICS. Next, we 
require you to report Company-level Ancillary Services and Site 
Commission data, followed by data regarding transactions with 
Affiliates. Finally, following the instructions for reporting Company-
level data, we direct you to report certain financial information at 
the Facility level.

A. General Information

    This section directs you to provide general information and data 
about your Company and its Affiliates, among other matters, in total 
for the Reporting Period, unless otherwise specified.
    (1) Company Name: Enter the Company's name.
    (2) Accounting Entity: Enter the name of each corporation, 
partnership, or other legal entity within the Accounting Entity.
    (3) Contact Person: Enter the name, title, email address, and phone 
number of the person whom the Commission may contact to inquire about 
the Company's response to the collection.
    (4) Holding Company Name: Enter the name of Company's ultimate 
parent, if any.
    (5) Filing Date: Enter the filing date using the following format: 
``MM/DD/YYYY'' to indicate the month, day, and year.
    (6) Headquarters Address: Enter the physical address where the 
Company's headquarters are located.
    (7) Publicly Listed: Identify whether the Company is a corporation 
or part of a corporation whose ownership is dispersed among the general 
public in many shares of stock which are freely traded on a stock 
exchange or in over-the-counter markets.
    (8) ICS-Related Services: List all ICS-Related Services, including 
any Ancillary Services, that the Company provided at or for Facilities, 
or to Incarcerated Persons or those they call, during the Reporting 
Period. List all such services even if the Company only provided them 
at some Facilities.
    (9) Non-ICS Business Segments:
    (a) List all non-ICS Business Segments that the Company engaged in 
during the Reporting Period.
    (b) Provide the Billed Revenues for each listed Business Segment 
during each Year of the Reporting Period.
    (c) In the Word template, describe generally the operations of each 
listed non-ICS Business Segment.
    (d) List all non-ICS Business Segments the Company or an Affiliate 
provided at or for Facilities, or to Incarcerated Persons or those they 
call, during the Reporting Period. List all such Business Segments even 
if the Company or Affiliate provided them only at some Facilities.
    (e) In the Word template, describe in detail all non-ICS Business 
Segments the Company or an Affiliate provided at or for Facilities, or 
to Incarcerated Persons or those they call, during the Reporting 
Period.
    (f) In the Word template, describe in detail how, if at all, the 
Company's ICS Business Segments and non-ICS Business Segments interact 
with each other.
    (10) Assets:
    (a) List each type of asset that the Company used in its ICS-
Related Operations during the Reporting Period.

[[Page 16573]]

Exclude any type of asset whose Net Investment is less than 5% of the 
Company's total Net Investment.
    (b) Provide the Net Investment in each listed type of asset as of 
December 31, 2021.
    (c) List each ICS-Related Product or Service that each listed type 
of asset supported.
    (d) List each non-ICS-Related Product or Service, if any, that each 
listed type of asset supported.
    (11) Non-ICS Affiliates: List the names of all of the Company's 
non-ICS Affiliates during the Reporting Period.
    (12) Non-ICS Affiliates' Annual Revenues: Enter total Billed 
Revenues for each Year of the Reporting Period.
    (13) Non-ICS Affiliates' Business Segments:
    (a) List all Business Segments in which non-ICS Affiliates engaged 
during the Reporting Period.
    (b) Identify each non-ICS Affiliate that participated in the supply 
of each Business Segment on your list.
    (14) Non-ICS Affiliates' Annual Revenues by Business Segments: 
Enter total Billed Revenues for each Year of the Reporting Period by 
each non-ICS Affiliate for each Business Segment on your list.
    (15) Affiliate Transactions: List all types of assets and services 
that the Company obtained from a non-ICS Affiliate that were used in 
the provision of ICS-Related Services during the Reporting Period. For 
each type of asset and service that you list, identify for each Year of 
the Reporting Period:
    (a) Each non-ICS Affiliate that provided those assets or services;
    (b) The amounts the Company paid its non-ICS Affiliates for those 
assets and services; and
    (c) The non-ICS Affiliates' Net Investment in those assets and the 
Annual Total Expenses incurred to provide those services.
    (16) Accounting and Record Keeping Systems: In the Word template, 
describe in detail the Accounting Entity's accounting and record-
keeping systems.
    (17) Mandatory Data Collection Response: In the Word template, 
provide an overview of how the Company used its accounting and record-
keeping system to respond to this Mandatory Data Collection. As part of 
this overview, explain the process by which the Company used data from 
income statements, balance sheets, general ledger, subledger, journals, 
department, division, or other organization group accounts or 
subaccounts, and other records or sources of financial data to develop, 
compile, assign, attribute, allocate or report Company-wide, service-
specific, and Facility-specific revenues, investments, and expenses, as 
required by this Mandatory Data Collection. Identify the sources for 
all depreciation and amortization schedules or asset life projections 
used to determine the amount of depreciation and amortization expenses 
reported and how these expenses are derived using these schedules and 
projections or other methods in lieu of or in combination with these 
schedules and projections. Explain how Company-wide, service-specific, 
Facility-specific, department, division, or other organization group 
data are used to determine how costs are incurred in order to assign, 
attribute, or allocate investments and expenses, as required by this 
Mandatory Data Collection, including, for example, data as to the 
number of calls or call minutes, ADP, headcounts, labor hours, or 
salaries; computer processing, electronic equipment or other inside or 
outside plant equipment, circuit, and electric power use or capacity; 
internal or external maintenance or computer-center help desk requests, 
tickets, orders or dispatch numbers; and purchase orders, transactions, 
or other measures of resource use and cost-causation.
    (18) Representative Information: In the Word template, address in 
detail whether the information collected though the data collection 
will be representative of the Company's future ICS-Related Operation 
given the effects of the COVID-19 pandemic on those operations during 
the Reporting Period. Identify for the two-year period January 1, 2022, 
to December 31, 2023, any specific known and measurable changes to the 
Company's ICS-related investments, expenses, revenues, and demand that 
are not reflected in the data collected through this data collection.
    (19) Sources: In the Word template, identify the source for any 
data or any document included in or relied upon in your response.

B. Overview Information

    This section provides an overview of your ICS-Related Operations by 
incorporating information from other sections of your Excel template. 
You should first enter the data required in those other portions into 
that template. Once you do that, the data required for this section 
will automatically be entered into this portion of the template. All of 
those data will be at the Accounting Entity level.

(1) Company Name
(2) Facilities
    (a) Number of Facilities
    (b) Number of Prisons
    (c) Number of Jails with ADP of 1,000 and above
    (d) Number of Jails with ADP below 1,000
    (e) Number of contracts
    (f) Number of Prison contracts
    (g) Number of Jail contracts
(3) Annual Total Expenses for each Year of the Reporting Period for:
    (a) Inmate Calling Services
    (b) Automated Payment Service
    (c) Live Agent Service
    (d) Paper Bill/Statement Service
(4) Revenues during each Year of the Reporting Period for:
    (a) Inmate Calling Services
    (b) Permissible Ancillary Services
    (c) Other Ancillary Services
    (d) Non-ICS Products and Services
(5) Site Commissions paid during each Year of the Reporting Period:
    (a) Total Site Commissions
    (i) Total Monetary Site Commissions
    (ii) Total In-Kind Site Commissions
    (b) Legally Mandated Site Commissions
    (c) Total Contractually Prescribed Site Commissions

C. Company-Wide Information

    This section seeks general financial data and other information 
about the Company and directs you to determine the Annual Total 
Expenses the Company incurs to provide Inmate Calling Services, 
Automated Payment Service, Live Agent Service, and Paper Bill/Statement 
Service during the Reporting Period.
1. Overall Financial Information
    This subsection directs you to provide financial data and other 
information in the aggregate for the entire Company (i.e., Accounting 
Entity). All financial data must comply with generally accepted 
accounting principles (GAAP). The carrying value of all assets, both 
tangible and intangible, shall reflect the results of the most recent 
impairment testing, and any adjustments required to account for any 
impairment loss shall be separately identified. In the Word template, 
explain in detail the process the Company used to comply with this 
requirement and provide any additional information needed to make that 
process fully transparent and understandable. Alternatively, explain in 
detail in the Word template why an impairment test is not now 
necessary, when impairment testing normally occurs under Company 
policy, and identify with specificity any accounting adjustments that 
were made at the time of the most recent impairment testing.
    (1) Annual Revenues: Enter the total Billed Revenues for the 
Accounting Entity for Inmate Calling Services for each Year of the 
Reporting Period.
    (2) Investment and Expense Data: Provide the following investment 
and

[[Page 16574]]

expense data in the aggregate for the Accounting Entity for the 
Reporting Period:
    (a) Capital Assets: Report year-end amounts for each Year of the 
Reporting Period for each of the items specified below. Report amounts 
for items (i), (ii) or (iii), and (iv) separately for each of the 
following types of assets: (aa) Tangible assets; (bb) capitalized 
research and development; (cc) purchased software; (dd) internally 
developed software; (ee) trademarks; (ff) other identifiable intangible 
assets; and (gg) goodwill. Report a single amount for each of items 
(v), (vi), and (vii).
    (i) Gross Investment;
    (ii) Accumulated depreciation;
    (iii) Accumulated amortization;
    (iv) Net Investment;
    (v) Accumulated deferred federal income taxes;
    (vi) Accumulated deferred state income taxes; and
    (vii) Customer prepayments or deposits.
    (b) Capital Expenses: Report the annual amount for each Year of the 
Reporting Period for each of the items specified below. Report amounts 
for items (i) or (ii) separately for each of the following types of 
assets: (aa) Tangible assets; (bb) capitalized research and 
development; (cc) purchased software; (dd) internally developed 
software; (ee) trademarks; (ff) other identifiable intangible assets; 
and (gg) goodwill. Report a single amount for each of items (iii), 
(iv), and (v).
    (i) Depreciation;
    (ii) Amortization;
    (iii) Interest other than interest paid on customer prepayments or 
deposits;
    (iv) Interest paid on customer prepayments or deposits; and
    (v) Other income tax-related adjustments.
    (c) Operating Expenses: Report the annual amount for each Year of 
the Reporting Period for each of the items specified below. Each 
expense must be reported for a particular category; for example, do not 
report expense incurred for termination of International Communication 
as an expense incurred for Interstate and Intrastate Communication. 
Exclude any charges for asset impairment loss.
    (i) Maintenance, repair, and engineering of site plant, equipment, 
and facilities;
    (ii) Origination, switching, and transporting of Interstate, 
International and Intrastate Communication and termination of 
Interstate and Intrastate Communication;
    (iii) Termination of International Communication;
    (iv) Field service;
    (v) Network operations;
    (vi) Call center;
    (vii) Data center;
    (viii) Security Services relating to the Company's ICS-Related 
Operations, non-ICS Operations, or both;
    (ix) Payment of Site Commissions;
    (x) Billing, collection, client management, and customer care;
    (xi) Sales and marketing;
    (xii) General and administrative;
    (xiii) Other overhead;
    (xiv) Taxes other than income taxes;
    (xv) Transactions related to mergers and acquisitions; and
    (xvi) Bad debt.
    (d) Income Tax Rates: Report separately for each Year of the 
Reporting Period each state income tax rate applicable to the Company. 
Report total Billed ICS Revenues separately for each state. The Excel 
template uses these reported data to calculate an ICS-Related 
Operations revenue-weighted average of the individual state income tax 
rates (i.e., the sum of the products of each state tax rate multiplied 
by the percentage of the Company's total Billed ICS Revenues derived 
from ICS supplied at Facilities located in each corresponding state). 
The result of this calculation is used to calculate state income tax 
expense reported separately for specific services as instructed below.
2. Service-Specific Financial Information
    The preceding subsection instructs you to provide financial 
information at the Company level. We now require you to determine the 
Annual Total Expenses the Company incurs to provide Inmate Calling 
Services, Automated Payment Service, Live Agent Service, and Paper 
Bill/Statement Service for each Year of the Reporting Period. This 
process involves several steps.
    First, we instruct you to assign, attribute, or allocate the 
reported Company-wide investments and expenses (without separation 
between federal and state jurisdictions) among Inmate Calling Services, 
Automated Payment Service, Live Agent Service, Paper Bill/Statement 
Service, Other Ancillary Services, and non-ICS Services in accordance 
with the cost allocation instructions set forth below. We also instruct 
you to calculate federal and state income taxes for Inmate Calling 
Services, Automated Payment Service, Live Agent Service, and Paper 
Bill/Statement Service. We do not require the reporting of Company-wide 
federal and state income tax expenses or the reporting of these 
expenses for Other Ancillary Services or non-ICS Services. We also do 
not require the reporting of Company-wide amounts for Cash Working 
Capital, Net Capital Stock, or Return or the reporting of these items 
for Other Ancillary Services or non-ICS Services.
    We next instruct you to provide the results of your cost 
assignments, attributions, and allocations separately for Inmate 
Calling Services, Automated Payment Service, Live Agent Service, and 
Paper Bill/Statement Service, Other Ancillary Services, and non-ICS 
Services, which shall include amounts for investments, Capital 
Expenses, and Operating Expenses. We also instruct you to report your 
federal and state income tax calculations for Inmate Calling Services, 
Automated Payment Service, Live Agent Service, and Paper Bill/Statement 
Service.
    We then require you to make two elections. We first instruct you to 
elect whether to use the default Weighted Average Cost of Capital or an 
alternative Weighted Average Cost of Capital. We then instruct you to 
elect whether to include an allowance for Cash Working Capital. If you 
elect an alternative Weighted Average Cost of Capital greater than 
9.75% or include an allowance for Cash Working Capital, we require you 
to report the components of those elections.
    We instruct you to provide the Company's Annual Total Expenses 
(without separation between federal and state jurisdictions) of 
providing Inmate Calling Services, Automated Payment Service, Live 
Agent Service, and Paper Bill/Statement Service and to make certain 
elections relating to adjustments to Annual Total Expenses. Finally, we 
also instruct you to elect whether to adjust the Company's Annual Total 
Expenses and thus to report Annual Total Expenses for the federal 
jurisdiction alone (covering both Interstate and International 
Communications), either to recognize any cost differentials between 
interstate/international Inmate Calling Services and intrastate Inmate 
Calling Services that should be reflected in an interstate rate cap or 
for any other reason.
a. Cost Allocation Instructions
    You must assign or allocate Company-wide investments and expenses 
(without separation between federal and state jurisdictions) among 
Inmate Calling Services, Automated Payment Service, Live Agent Service, 
Paper Bill/Statement Service, Other Ancillary Services, and non-ICS 
Services using the hierarchy of methods specified below. For purposes 
of these cost allocation instructions, Inmate Calling Services, 
Automated Payment Service, Live Agent Service, Paper Bill/Statement 
Service, Other Ancillary

[[Page 16575]]

Services, and non-ICS Services are each a separate ``service.'' Also, 
any costs the Company incurs in providing Single-Call and Related 
Services or Third-Party Financial Transaction Services shall be 
included in its Inmate Calling Services costs.
    (1) First, to the extent possible, directly assign investments used 
exclusively to provide a particular service to that service; likewise, 
to the extent possible, directly assign expenses incurred exclusively 
to provide a particular service to that service. Calculate federal and 
state income taxes separately for Inmate Calling Services, Automated 
Payment Service, Live Agent Service, and Paper Bill/Statement Service 
as specified in items 7 and 8 below.
    (2) Second, group shared investments and expenses into shared 
investment and expense categories based on business function, activity, 
or task. Group common investments and expenses into common investment 
and expense categories based on business function, activity, or task.
    (a) Any investments and expenses that are not directly assignable 
to a specific service are shared or common investments and expenses.
    (b) Shared investments are for assets used exclusively to supply a 
specific subset of services that are not assignable or attributable to 
a particular service. Shared expenses are expenses incurred solely to 
supply a specific subset of services that are not assignable or 
attributable to a specific service.
    (c) Common investments are for assets not assignable or 
attributable to a specific service or subset of services. Common 
expenses are expenses that are not assignable or attributable to a 
specific service or subset of services.
    (3) Third, to the extent possible, directly attribute categories of 
shared investments and expenses, and categories of common investments 
and expenses, to particular services based on direct analysis of 
factors that cause a particular business function, activity, or task 
and thus investments or expenses to increase or decrease.
    (4) Fourth, where neither direct assignment nor direct attribution 
is possible, allocate categories of shared investments and expenses, 
and categories of common investments and expenses, to particular 
services based on an indirect, cost-causative link to another 
investment and expense or another investment or expense category (or 
group of categories) for which direct assignment or attribution is 
possible.
    (5) Fifth, where none of the methods described above is possible, 
allocate categories of shared investments and expenses to the 
particular services that share the investments and expenses in 
proportion to each service's share of the total of all investments or 
expenses already directly assigned or attributed to these particular 
services. Allocate categories of common investments and expenses to 
particular services in proportion to each service's share of the total 
of all investments or expenses already directly assigned or attributed 
to all services.
    (6) The sums of the investment and expense amounts assigned to, 
attributed to, or allocated among Inmate Calling Service, Automated 
Payment Service, Live Agent Service, Paper Bill/Statement Service, 
Other Ancillary Services, and non-ICS Services shall equal the total 
investment and expense amounts respectively reported for the Company 
above (excluding federal and state income taxes, Cash Working Capital 
and Net Capital Stock, which are only reported for Inmate Calling 
Service, Automated Payment Service, Live Agent Service, Paper Bill/
Statement Service).
    (7) Federal income taxes: First, subtract reported interest expense 
other than interest paid on customer prepayments or deposits (and any 
amount reported for other income tax-related adjustments) from Return 
to determine federal taxable income. Second, divide the federal income 
tax rate by 1 minus the federal income tax rate to determine a federal 
income tax gross-up factor. Third, multiply the federal income tax 
gross-up factor by federal taxable income to determine the amount of 
federal income tax to report.
    (8) State income taxes: First, add the portion of federal income 
tax not deductible for state income tax purposes to federal taxable 
income to determine state taxable income. Second, divide the weighted 
average of the individual state income tax rates by 1 minus the 
weighted average of the individual state income tax rates to determine 
a state income tax gross-up factor. Third, multiply the state income 
tax gross-up factor by state taxable income to determine the amount of 
state income tax to report.
    (9) Fully document, explain, and justify all cost assignments, 
attributions, and allocations using the Word template and submit 
additional workpapers developed using Excel spreadsheets.
b. Cost Allocation Results
    Report the results of your cost assignments, attributions, and 
allocations separately for Inmate Calling Services, Automated Payment 
Service, Live Agent Service, Paper Bill/Statement Service, Other 
Ancillary Services, and non-ICS Services on the Excel template, as 
specified below. Report your federal and state income tax calculations 
separately for Inmate Calling Services, Automated Payment Service, Live 
Agent Service, and Paper Bill/Statement Service on the Excel template, 
as specified below.
    (1) Capital Assets: Report the year-end amount for each Year of the 
Reporting Period for each of the items specified below. Report amounts 
for items (a), (b) or (c), and (d) separately for each of the following 
types of assets: (i) Tangible assets; (ii) capitalized research and 
development; (iii) purchased software; (iv) internally developed 
software; (v) trademarks; (vi) other identifiable intangible assets; 
and (vi) goodwill. Report a single amount for each of items (e) through 
(i).
    (a) Gross Investment;
    (b) Accumulated depreciation;
    (c) Accumulated amortization;
    (d) Net Investment;
    (e) Accumulated deferred federal income taxes;
    (f) Accumulated deferred state income taxes;
    (g) Customer prepayments or deposits;
    (h) Cash Working Capital (see d.(1) and (2) below); and
    (i) Net Capital Stock.
    (2) Capital Expenses and Related Tax Information: Report the annual 
amount or a percentage for each Year of the Reporting Period for each 
of the items specified below. Report amounts for items (a) and (b) 
separately for each of the following types of assets: (i) Tangible 
assets; (ii) capitalized research and development; (iii) purchased 
software; (iv) internally developed software; (v) trademarks; (vi) 
other identifiable intangible assets; and (vii) goodwill. Report a 
single amount for each of items (c) through (p).
    (a) Depreciation;
    (b) Amortization;
    (c) Weighted Average Cost of Capital (see c.(1) and (2) below);
    (d) Return;
    (e) Interest other than interest paid on customer prepayments or 
deposits;
    (f) Interest paid on customer prepayments or deposits;
    (g) Other income tax-related adjustments;
    (h) Federal taxable income;
    (i) Federal income tax rate;
    (j) Federal income tax gross-up factor;
    (k) Federal income tax;
    (l) Federal income tax not deductible for state income tax 
purposes;
    (m) State taxable income;
    (n) State income tax rate;
    (o) State income tax gross-up factor; and
    (p) State income tax.

[[Page 16576]]

    (3) Operating Expenses: Report the annual amount for each Year of 
the Reporting Period for each of the items specified below. Exclude any 
charges for asset impairment loss.
    (a) Maintenance, repair, and engineering of site plant, equipment, 
and facilities;
    (b) Origination, switching, and transporting of Interstate, 
International and Intrastate Communication and termination of 
Interstate and Intrastate Communication;
    (c) Termination of International Communication;
    (d) Field service;
    (e) Network operations;
    (f) Call center;
    (g) Data center;
    (h) Security Services relating to the Company's ICS-Related 
Operations, non-ICS Operations, or both;
    (i) Billing, collection, client management, and customer care;
    (j) Sales and marketing;
    (k) General and administrative;
    (l) Other overhead;
    (m) Taxes other than income taxes;
    (n) Transactions related to mergers and acquisitions; and
    (o) Bad debt.
c. Weighted Average Cost of Capital
    (1) Elect, by checking the appropriate box on the Excel template, 
whether to use the default Weighted Average Cost of Capital of 9.75% 
(which is the Commission's currently authorized rate of return for 
incumbent local exchange carriers regulated on a rate-of-return basis) 
for each Year of the Reporting Period or an alternative Weighted 
Average Cost of Capital reflecting the Company's own and a demonstrably 
comparable-group of firms' financial data and economic circumstances, 
use of widely accepted methods to estimate current debt and equity 
costs and capital structure, and the collective risks of providing ICS, 
Automated Payment Service, Live Agent Service, and Paper Bill/Statement 
Service.
    (2) If you elect to use an alternative Weighted Average Cost of 
Capital greater than 9.75%, report on the Excel template the components 
of the Company's current Weighted Average Cost of Capital and the 
Weighted Average Cost of Capital itself, as specified below. Use this 
singular estimate of the Company's current Weighted Average Cost of 
Capital to calculate Return for each Year of the Reporting Period. In 
the Word template, fully document by submitting data, formulas, cost of 
equity analyses using, for example, the Discounted Cash Flow Model or 
Capital Asset Pricing Model, calculations, and worksheets, explain, and 
justify the development of each claimed component. Failure to fully 
document, explain, and justify each claimed component may result in the 
application of the default Weighted Average Cost of Capital of 9.75%.
    (a) Cost of debt;
    (b) Cost of preferred stock;
    (c) Cost of equity;
    (d) Total debt outstanding in dollars and as a percent of total 
capital outstanding (the sum of debt, preferred stock, and equity 
outstanding);
    (e) Total preferred stock outstanding and as a percent of total 
capital outstanding;
    (f) Total equity outstanding and as a percent of total capital 
outstanding; and
    (g) Weighted Average Cost of Capital.
d. Cash Working Capital
    (1) Elect, by checking the appropriate box on the Excel template, 
whether to include an allowance for Cash Working Capital in the 
Company's Net Capital Stock.
    (2) If you elect to include an allowance for Cash Working Capital 
in the Company's Net Capital Stock, report the allowance claimed for 
each Year of the Reporting Period on the Excel template separately for: 
(a) Inmate Calling Services; (b) Automated Payment Service; (c) Live 
Agent Service; and (d) Paper Bill/Statement Service. Submit a lead-lag 
study or the equivalent that estimates the average number of days 
between the payment of expenses and the receipt of revenues and average 
daily cash expenses as support for each claimed allowance. Fully 
document, explain, and justify each claimed allowance in the Word 
template.
e. Annual Total Expenses
    (1) Report Company-wide Annual Total Expenses separately for: (a) 
Inmate Calling Services; (b) Automated Payment Service; (c) Live Agent 
Service; and (d) Paper Bill/Statement Service. Exclude reported 
interest expense other than interest paid on customer prepayments or 
deposits from Annual Total Expenses. The allowance for interest expense 
other than interest paid on customer prepayments or deposits is 
included in the Return component of the Annual Total Expenses 
calculation. Include reported interest paid on customer prepayments or 
deposits in Annual Total Expenses. Exclude expense reported for 
termination of International Communication from Annual Total Expenses.
f. Optional Allocations and Adjustments
    (1) In the Word template, state whether the Company elects to 
further separate its investments, expenses, Net Capital Stock, and 
Annual Total Expenses between interstate/international and intrastate 
Inmate Calling Services, Automated Payment Service, Live Agent Service, 
and Paper Bill/Statement Service to reflect any measurable differences 
between the cost incurred to provide interstate/international and 
intrastate services. If you elect to separate the Company's 
investments, expenses, Net Capital Stock, and Annual Total Expenses 
between interstate/international and intrastate Inmate Calling 
Services, Automated Payment Service, Live Agent Service, and Paper 
Bill/Statement Service, you must: (a) Fully document, explain, and 
justify this separation in the Word template; and (b) submit additional 
Excel spreadsheets, similar in design and level of data disaggregation 
to those in the Excel template, showing in detail each aspect of the 
Company's separations processes. These showings in the Word template 
and Excel spreadsheets must fully document and justify each aspect of 
the processes by which the separated interstate/international Inmate 
Calling Services investment and expenses are further assigned, 
attributed, or allocated to or among each of the Company's Facilities, 
and how the Net Capital Stock and Annual Total Expenses for each of 
these Facilities are developed. Electing this cost allocation option 
does not relieve the Company of its obligation to report its 
unseparated investments, expenses, Net Capital Stock, and Annual Total 
Expenses in the Excel template and in accordance with the instructions 
for reporting unseparated data.
    (2) In the Word template, state whether the Company elects to 
further adjust its investments, expenses, Net Capital Stock, and Annual 
Total Expenses developed in accordance with the instructions set out in 
this document, for any other reason. If you elect to make such an 
adjustment, you must: (a) Fully document, explain, and justify it in 
the Word template; and (b) submit additional Excel spreadsheets, 
similar in design and level of data disaggregation to those in the 
Excel template, showing in detail each aspect of the Company's 
adjustments, including all changes to the Company's data, cost 
allocation procedures, and results. If the Company also elects to 
further separate its investments, expenses, Net Capital Stock, and 
Annual Total Expenses as specified in Part IV.C.2.f.(1), above, you 
also must separately justify and document the impact of any further 
adjustments in response to this Inquiry upon your

[[Page 16577]]

results under Part IV.C.2.f.(1). Electing this additional adjustment 
option does not relieve the Company of its obligation to report its 
unseparated and unadjusted investments, expenses, Net Capital Stock, 
and Annual Total Expenses on the Excel template and in accordance with 
the instructions for reporting unseparated and unadjusted data.
3. Other Company-Wide Information
    This subsection directs you to report Company-wide data on Site 
Commissions, Security Services, Ancillary Services, and Affiliate 
Transactions. It also provides instructions on reporting data and other 
information where a Provider subcontracts with another entity for the 
provision of ICS.
a. Site Commissions
    (1) Total Site Commissions: Enter the total amount of all Site 
Commissions paid by the Company during each Year of the Reporting 
Period, without regard to whether the Site Commission was Legally 
Mandated, Contractually Prescribed, Fixed, Variable, Monetary, or In-
Kind.
    (a) Enter the percentage of the total Site Commissions paid by the 
Company during each Year of the Reporting Period that were attributable 
to the Company's ICS-Related Operations.
    (2) Total Legally Mandated Site Commissions: Enter the total amount 
of Legally Mandated Site Commissions paid by the Company during each 
Year of the Reporting Period.
    (a) Total Monetary Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Legally Mandated Site, Monetary 
Commissions paid by the Company.
    (i) Total Fixed Site Commissions: For each Year of the Reporting 
Period, enter the total amount of all Legally Mandated Site Commissions 
paid by the Company that were both Monetary Site Commissions and Fixed 
Site Commissions.
    (aa) Total Upfront Payments: For each Year of the Reporting Period, 
enter the total amount of all Legally Mandated Site Commissions that 
not only were Monetary Site Commissions and Fixed Site Commissions but 
also were paid by the Company at the signing of a contract for ICS or 
during the first year of a contract for ICS.
    (ii) Total Variable Site Commissions: For each Year of the 
Reporting Period, enter the total amount of all Legally Mandated Site 
Commissions paid by the Company that were both Monetary Site 
Commissions and Variable Site Commissions.
    (b) Total In-Kind Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Legally Mandated Site Commissions 
paid by the Company that were also In-Kind Site Commissions.
    (i) In the Word template, describe these in-kind payments in 
detail. Specifically describe each Security Service that you classify 
as an In-Kind Site Commission payment. Also specifically describe any 
other payment, gift, exchange of services or goods, fee, technology 
allowance, or product that you classify as an In-Kind Site Commission 
payment.
    (ii) Total Fixed Site Commissions: For each Year of the Reporting 
Period, enter the total amount of all Legally Mandated Site Commissions 
paid by the Company that were both In-Kind Site Commissions and Fixed 
Site Commissions.
    (aa) Total Upfront Payments: For each Year of the Reporting Period, 
enter the total amount of all Legally Mandated Site Commissions that 
not only were In-Kind Site Commissions and Fixed Site Commissions but 
also were paid by the Company at the signing of a contract for ICS or 
during the first year of a contract for ICS.
    (iii) Total Variable Site Commissions: For each Year of the 
Reporting Period, enter the total amount of all Legally Mandated Site 
Commissions paid by the Company that were both In-Kind Site Commissions 
and Variable Site Commissions.
    (3) Total Contractually Prescribed Site Commissions: Enter the 
total amount of Contractually Prescribed Site Commissions paid by the 
Company during each Year of the Reporting Period.
    (a) Total Monetary Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Contractually Prescribed Site 
Commissions paid by the Company that were also Monetary Site 
Commissions.
    (i) Total Fixed Site Commissions: For each Year of the Reporting 
Period, enter the total amount of all Contractually Prescribed Site 
Commissions paid by the Company that were both Monetary Site 
Commissions and Fixed Site Commissions.
    (aa) Total Upfront Payments: For each Year of the Reporting Period, 
enter the total amount of all Contractually Prescribed Site Commissions 
that not only were Monetary Site Commissions and Fixed Site Commissions 
but also were paid by the Company at the signing of a contract for ICS 
or during the first year of a contract for ICS.
    (ii) Total Variable Site Commissions: For each Year of the 
Reporting Period, enter the total amount of all Contractually 
Prescribed Site Commissions paid by the Company that were both Monetary 
Site Commissions and Variable Site Commissions.
    (b) Total In-Kind Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Contractually Prescribed Site 
Commissions that paid by the Company that were also In-Kind Site 
Commissions.
    (i) In the Word template, describe these in-kind payments in 
detail. Specifically describe each Security Service that you classify 
as an In-Kind Site Commission payment. Also specifically describe any 
other payment, gift, exchange of services or goods, fee, technology 
allowance, or product that you classify as an In-Kind Site Commission 
payment.
    (ii) Total Fixed Site Commissions: For each Year of the Reporting 
Period, enter the total amount of all Contractually Prescribed Site 
Commissions paid by the Company that were both In-Kind Site Commissions 
and Fixed Site Commissions.
    (aa) Total Upfront Payments: For each Year of the Reporting Period, 
enter the total amount of all Contractually Prescribed that not only 
were In-Kind Site Commissions and Fixed Site Commissions but also were 
paid by the Company at the signing of a contract for ICS or during the 
first year of a contract for ICS.
    (iii) Total Variable Site Commissions: For each Year of the 
Reporting Period, enter the total amount of all Contractually 
Prescribed Site Commissions paid by the Company that were both In-Kind 
Site Commissions and Variable Site Commissions.
    (4) Site Commissions Allocation Methodology: In the Word template, 
fully describe, document, explain, and justify the allocation 
methodology you use to allocate Site Commission payments between ICS 
and non-ICS operations in situations where you made Site Commission 
payments for both ICS and non-ICS Operations.
b. Security Services Not Classified as Site Commissions
    Reporting in response to the following questions (1) through (3) 
must be exclusive of the data reported in connection with Site 
Commissions to prevent double-counting.
    (1) On the Excel template, report the total dollar amount of costs 
the Company incurred to provide the following categories of services 
for each Year of the Reporting Period.
    (a) Law enforcement support services.
    (i) In the Word template, identify by name and describe each 
service you

[[Page 16578]]

classify as a law enforcement support service, including a description 
of the specific tasks and functions covered by this service and whether 
you routinely offer this service in connection with ICS.
    (b) Call security services.
    (i) In the Word template, identify by name and describe each 
service you classify as a call security service, including a 
description of the specific tasks and functions covered by this service 
and whether you routinely offer this service in connection with ICS.
    (c) Call recording services.
    (i) In the Word template, identify by name and describe each 
service you classify as a call recording service, including a 
description of the specific tasks and functions covered by this service 
and whether you routinely offer this service in connection with ICS.
    (d) Call monitoring services.
    (i) In the Word template, identify by name and describe each 
service you classify as a call monitoring service, including a 
description of the specific tasks and functions covered by this service 
whether you routinely offer this service in connection with ICS.
    (e) Voice biometrics services.
    (i) In the Word template, identify by name and describe each 
service you classify as a voice biometric service, including a 
description of the specific tasks and functions covered by this service 
and whether you routinely offer this service in connection with ICS.
    (f) Other services.
    (i) In the Word template, identify by name and describe each 
Security Service you provide that is not classified under one of the 
foregoing subcategories, including a description of the specific tasks 
and functions covered by each service and whether you routinely offer 
each service in connection with ICS.
    (2) In the Word template, specifically describe each Security 
Service provided by you that you do not classify as a Site Commission 
and is not offered in connection with ICS.
    (3) In the Word template, specifically describe any other payment, 
gift, exchange of goods or services, fee, technology allowance, or 
product provided for security purposes that you do not classify as a 
Site Commission payment.
c. Ancillary Services
    This subsection directs you to provide certain Company-level 
information on your Ancillary Services expenses and revenues, and 
Revenue-Sharing Agreements in connection with your Ancillary Services. 
First, this subsection directs you to report expenses you incurred in 
providing Ancillary Services and includes inquiries requiring you to 
report subsets of those expenses and/or provide narratives in the Word 
template. Second, this subsection directs you to report revenues earned 
from providing Ancillary Services and similarly includes questions 
requiring you to report subsets of those revenues and/or provide 
narrative responses. Third, this subsection directs you to identify and 
provide information regarding Revenue-Sharing Agreements relating to 
your Ancillary Services in the Word template.
    (1) Ancillary Services: Enter ``Yes'' if you charged Customers 
Automated Payment Service Fees, Live Agent Service Fees, Paper Bill/
Statement Service Fees, Fees for Single-Call and Related Services, 
Third-Party Financial Transaction Services Fees during the Reporting 
Period. Otherwise, enter ``No.''
    (a) In the next cell, enter ``Yes'' if you charged Customers more 
than one Permissible Ancillary Service Charge fee in connection with 
the same interstate, international, or mixed-jurisdictional transaction 
during the Reporting Period.
    (i) If you answered ``Yes,'' describe in detail the circumstances 
relating to those charges in the Word template. Your description shall 
include, in addition to all other relevant information, a list of the 
specific transactions for which you charged multiple fees, the fee 
charged in each transaction, the functions that were covered by each 
fee, and the total amounts that Customers paid for each fee.
    (2) Ancillary Services Expenses: Enter your Annual Total Expenses 
in providing Automated Payment Service, Paper Bill/Statement Service, 
and Live Agent Service for each Year of the Reporting Period.
    (a) Automated Payment Services: Enter the Annual Total Expenses 
incurred in providing Automated Payment Service for each Year of the 
Reporting Period.
    (i) In the next cell, identify each Affiliate, if any, that the 
Company used in providing its Automated Payment Service.
    (ii) In the next cell, enter ``Yes'' if the Company used a Third 
Party in providing its Automated Payment Service. Otherwise Enter 
``No.''
    (aa) If you entered ``Yes,'' identify each such Third Party in the 
next cell.
    (bb) Enter the amount the Company paid to each listed Third Party 
for providing Automated Payment Service for each Year of the Reporting 
Period.
    (iii) In the Word template, describe payment card processing 
services offered in connection with your Automated Payment Service for 
each Year of the Reporting Period. Identify whether the payment card 
processing was performed by the Company, an Affiliate, or a Third 
Party. If provided by an Affiliate or Third Party, identify the 
Affiliate or Third Party.
    (b) Live Agent Services: Enter the Annual Total Expenses applicable 
to your Live Agent Service for each Year of the Reporting Period.
    (i) In the next cell, identify each Affiliate, if any, that the 
Company used in providing its Live Agent Service.
    (ii) In the next cell, enter ``Yes'' if the Company used a Third 
Party in providing its Live Agent Service. Otherwise enter ``No.''
    (aa) If you entered ``Yes,'' identify each such Third Party in the 
next cell.
    (bb) In the next cell, enter the amount the Company paid each 
listed Third Party for each Year of the Reporting Period to provide 
Live Agent Service.
    (c) Paper Bill/Statement Services: Enter the Annual Total Expenses 
applicable to your Paper Bill/Statement Service for each Year of the 
Reporting Period.
    (i) In the next cell, identify each Affiliate that the Company used 
in providing its Paper Bill/Statement Service.
    (ii) In the next cell, enter ``Yes'' if the Company used a Third 
Party in providing its Paper Bill/Statement Service. Otherwise, enter 
``No.''
    (aa) If you entered ``Yes,'' identify each such Third Party in the 
next cell.
    (bb) In the next cell, enter the amount the Company paid each 
listed Third Party for each Year of the Reporting Period to provide.
    (d) Single-Call and Related Services:
    (i) List each entity that charged the Company for billing services 
for Single-Call and Related Services during each Year of the Reporting 
Period. Indicate whether each listed entity is a Third Party.
    (ii) Enter the amount the Company paid each Third Party for billing 
services in connection with Single-Call and Related Services for each 
Year of the Reporting Period.
    (iii) Enter the amount the Company paid a Third Party for billing 
services in connection with Single-Call and Related Services that the 
Company passed through to Customers for each Year of the Reporting 
Period.
    (iv) Enter the amount the Company paid to an entity other than a 
Third Party for billing services in connection with Single-Call and 
Related Services for each Year of the Reporting Period.
    (v) Enter the amount the Company paid to an entity other than a 
Third

[[Page 16579]]

Party for billing services in connection with Single-Call and Related 
Services for each Year of the Reporting Period that the Company passed 
through to Customers.
    (vi) In the Word template, state whether any entity other than the 
Company charged Customers Single-Call and Related Services Fees in 
connection with the Company's ICS-Related Operations during each Year 
of the Reporting Period. If so, list each such entity, indicate whether 
each listed entity is a Third Party, and provide the amount of such 
fees each listed entity charged Customers during each Year of the 
Reporting Period.
    (e) Third-Party Financial Transaction Services:
    (i) Payment Card Processing for Third-Party Financial Transaction 
Services: In the Word template, describe payment card processing 
services performed in connection with Third-Party Financial Transaction 
Services during each Year of the Reporting Period. Identify whether the 
payment card processing was performed by the Company, an Affiliate, or 
a Third Party. If provided by an Affiliate or Third Party, identify the 
Affiliate or Third Party.
    (ii) List each entity that charged the Company for providing Third-
Party Financial Transaction Services during the Reporting Period in 
connection with the Company's ICS-Related Operations. Indicate whether 
each listed entity is a Third Party.
    (iii) Enter the amount the Company paid to a Third Party for Third-
Party Financial Transaction Services during each Year of the Reporting 
Period.
    (iv) Enter the amount the Company paid to a Third Party for Third-
Party Financial Transaction Services that the Company passed through to 
Customers during each Year of the Reporting Period.
    (v) Enter the amount the Company paid to an entity other than a 
Third Party for Third-Party Financial Transaction Services during each 
Year of the Reporting Period.
    (vi) Enter the amount the Company paid to an entity other than a 
Third Party for Third-Party Financial Transaction Services that the 
Company passed through to Customers during each Year of the Reporting 
Period.
    (vii) In the Word template, state whether any entity other than the 
Company charged Customers for Third-Party Financial Transaction 
Services in connection with the Company's ICS-Related Operations during 
each Year of the Reporting Period. If so, list each such entity and 
provide the amount of such fees each listed entity charged Customers 
during each Year of the Reporting Period.
    (3) Ancillary Services Revenues: Enter the total revenues you 
received from Customers for providing Permissible Ancillary Services 
during each Year of the Reporting Period. This total shall include fees 
Customers paid the Company for Automated Payment Service, Live Agent 
Service, Paper Bill/Statement Service, Single-Call and Related 
Services, Third-Party Financial Transaction Services, and Other 
Ancillary Services.
    (a) Automated Payment Service Revenues: Enter the total amount of 
revenues the Company received from charging Automated Payment Fees 
during each Year of the Reporting Period.
    (i) Payment Card Processing Revenues for Automated Payment Service: 
Of the amount reported for Total Automated Payment Fee Revenues above, 
enter the amount of those revenues applicable to payment card 
processing for each Year of the Reporting Period.
    (aa) In the Word template, describe the payment card processing 
services in connection with Automated Payment Service revenue. Identify 
whether the payment card processing was performed by the Company, an 
Affiliate, or a Third Party. If payment card processing was performed 
by an Affiliate or Third Party, identify the Affiliate or Third Party.
    (ii) Automated Payment Service Revenue-Sharing Agreements: If the 
Provider has a Revenue-Sharing Agreement with an Affiliate or Third 
Party in connection with Automated Payment Service, including for any 
payment card processing functions enter ``Yes.'' Otherwise, enter 
``No.''
    (aa) If you answered ``Yes,'' you must provide the information 
requested below under the ``Ancillary Services Revenue-Sharing 
Agreements'' heading in the Word template.
    (b) Live Agent Fee Revenues: Enter the total revenues the Company 
received from charging the Live Agent Fee for each Year during the 
Reporting Period.
    (i) In the next cell, enter ``Yes'' if an Affiliate or Third Party 
charged the Live Agent Fee for each Year during the Reporting Period. 
Otherwise, enter ``No.'' If you entered ``Yes,'' identify each such 
Affiliate or Third Party in the next cell and provide the amount 
charged by the Affiliate or Third Party next to the name.
    (c) Paper Bill/Statement Fee Revenues: Enter the total revenues the 
Company received from charging the Paper Bill/Statement Fee for each 
Year during the Reporting Period.
    (d) Single-Call and Related Services Revenues: Enter the total 
amount of revenues the Company received from charging Fees for Single-
Call and Related Services for each Year during the Reporting Period.
    (i) Single-Call and Related Services: Of the amount reported for 
Total Single-Call and Related Services Revenues above, enter the amount 
of those revenues the Company received from charging the adopted, per-
minute rate in connection with Single-Call and Related Services. This 
amount should exclude any Third-Party charges passed through to 
Customers as part of providing Single-Call and Related Services.
    (ii) Single-Call and Related Services Revenue-Sharing Agreements: 
If the Provider has a Revenue-Sharing Agreement with an Affiliate or a 
Third Party in connection with Single-Call and Related Services enter 
``Yes.'' Otherwise, enter ``No.''
    (aa) If you answered ``Yes,'' you must provide the information 
requested below under the ``Ancillary Services Revenue-Sharing 
Agreements'' heading in the Word template.
    (e) Third-Party Financial Transaction Fee Revenue: Enter the total 
revenues the Company received from charging Third-Party Financial 
Transaction Fees for each Year during the Reporting Period.
    (i) Payment Card Processing Revenues from Third-Party Financial 
Transaction Services: Of the amount reported for Total Third-Party 
Financial Transaction Fee Revenue, enter the amount of that revenue 
applicable to payment card processing for each Year during the 
Reporting Period.
    (ab) In the Word template, describe these payment card processing 
services, including whether they were performed by the Provider, an 
Affiliate, or a Third Party. If provided by an Affiliate or a Third 
Party, identify each Affiliate or Third Party. State whether the 
Company charged Customers payment card processing fees for each Year 
during the Reporting Period. If so, enter the amount of such fees 
charged to Customers for each Year during the Reporting Period.
    (ii) Third-Party Financial Transaction Fee Revenue-Sharing 
Agreements: If the Provider has a Revenue-Sharing Agreement with an 
Affiliate or a Third Party in connection with Third-Party Financial 
Transaction Fees, enter ``Yes.'' Otherwise, enter ``No.''
    (aa) If you answered ``Yes,'' you must provide the information 
requested below under the ``Ancillary Services Revenue-Sharing 
Agreements'' heading in the Word template.
    (4) Ancillary Services Revenue-Sharing Agreements: In the Word 
template, identify any Revenue-Sharing Agreements between the Provider 
and

[[Page 16580]]

any Affiliate and/or Third Party in connection with any Ancillary 
Service.
    (a) For each Revenue-Sharing Agreement identified, provide, at a 
minimum, the following information:
    (i) The parties to the agreement;
    (ii) Identify each payor and each payee under the agreement;
    (iii) Whether any party to the agreement is an Affiliate or Third 
Party;
    (iv) The Ancillary Service for which revenue is required to be 
shared under the agreement;
    (v) The amount of revenue to be shared under the terms of the 
agreement;
    (vi) The total amount of revenue shared for each Year during the 
Reporting Period;
    (vii) The total amount of revenue shared for each Ancillary 
Service; and
    (viii) The effective and termination dates of the agreement.
d. Affiliate Transactions
    (1) In the Word template, describe in detail all types of 
transactions between the Accounting Entity and its non-Accounting 
Entity Affiliates.
    (2) Provider's Payments to Non-Accounting Entity Affiliates:
    (a) Total ICS Revenue Paid to Non-Accounting Entity Affiliates: 
Enter the amount of ICS revenue the Provider paid to any non-Accounting 
Entity Affiliate during each Year of the Reporting Period.
    (b) Total Automated Payment Fee Revenue Paid to Non-Accounting 
Entity Affiliates: Enter the amount of Automated Payment Fee revenue 
the Provider paid to any non-Accounting Entity Affiliate during each 
Year of the Reporting Period.
    (c) Total Single-Call and Related Services Revenue Paid to Non-
Accounting Entity Affiliates: Enter the amount of revenue from charging 
Fees for Single-Call and Related Services the Provider paid to any non-
Accounting Entity Affiliate during each Year of the Reporting Period.
    (d) Total Live Agent Fee Revenue Paid to Non-Accounting Entity 
Affiliates: Enter the amount of Live Agent Fee revenue the Provider 
paid to any non-Accounting Entity Affiliate during each Year of the 
Reporting Period.
    (e) Total Paper Bill/Statement Fee Revenue Paid to Non-Accounting 
Entity Affiliates: Enter the amount of Paper Bill/Statement Fee revenue 
the Provider paid to any Affiliate during each Year of the Reporting 
Period.
    (f) Total Third-Party Financial Transaction Fee Revenue Paid to 
Non-Accounting Entity Affiliates: Enter the amount of Third-Party 
Financial Transaction Fee Revenue the Provider paid to any non-
Accounting Entity Affiliate during each Year of the Reporting Period.
    (g) International Termination Payments to Affiliates: Enter the 
total amounts paid by the Company to an affiliated international 
service provider during each Year of the Reporting Period to terminate 
International ICS Calls originating from the Facility.
e. Instructions Relating to Subcontracts To Provide Inmate Calling 
Services
    This subsection provides instructions on reporting data and other 
information where a Provider subcontracts with another entity for the 
provision of ICS. The primary goal in requiring the submission of these 
data is to prevent double counting of costs and/or revenues between a 
Company and other entities when they have a contractual or other 
arrangement to provide ICS to the same Facility. Further, we also seek 
to understand the nature of any such arrangements.
    Subcontractor Reporting of Cost and Revenue Data: In reporting cost 
and revenue data, Subcontractors shall not treat any Billed Revenue 
passed on to a Provider as an expense and shall otherwise report 
investments, expenses, and revenues in accordance with the instructions 
set forth in this document.
    (1) Provider Reporting of Cost Data: Where a Provider has a 
Subcontractor:
    (a) The Provider shall directly assign, attribute, or allocate its 
investments and expenses based on the cost allocation hierarchies set 
forth in these instructions to or among:
    (i) Inmate Calling Services, Automated Payment Service, Live Agent 
Service, Paper Bill/Statement Service, Other Ancillary Services, and 
non-ICS Services;
    (ii) Further directly assign, attribute, or allocate the Provider's 
Inmate Calling Services investments and expenses to or among (i) 
Provider-supplied facilities; and (ii) Subcontractor-supplied 
facilities.
    (2) Narrative Description of a Subcontract to Provide ICS: If a 
Provider contracts with a Subcontractor to provide any aspect of ICS, 
the Provider and the Subcontractor shall explain each such arrangement 
in the Word templates of their respective responses. At a minimum, each 
such explanation shall include:
    (a) The name of the Provider with the contractual or other 
agreement with a Facility or contracting authority for the provision of 
ICS;
    (b) The name of the Subcontractor;
    (c) The services provided by the Subcontractor under the agreement;
    (d) The unique identifier and address for the Facilities at which 
the Subcontractor provides services under the agreement;
    (e) A description of the ICS-Related Operations provided by the 
Provider and the Subcontractor;
    (f) The types of ICS calls billed by the Provider and the 
Subcontractor; and
    (g) A description of any Revenue-Sharing Agreement between the 
Provider and the Subcontractor.

D. Facility-Specific Information

    The previous section directs you to provide general financial data 
and other information at the Company level. In this section, we direct 
you to provide financial data and other information at the Facility 
level. You must submit individual data for each Facility even if that 
Facility is covered by the same contract as other Facilities. Those 
data must be specific to the Facility in question and not simply a 
repeat of data reported for other Facilities covered by the same 
contract.
1. Facility-Specific Financial Information
    Part IV.C.2, above, directs you to provide Company-wide financial 
information. We now direct you to provide financial information at the 
Facility level. We begin by providing cost allocation instructions. We 
then direct you to provide the results of the cost allocation process. 
We also direct you to provide Annual Total Expenses for ICS at each 
Facility as well as Facility-specific demand and revenue data. In 
particular, this subsection seeks Inmate Calling Service demand, 
revenue, and expense information allocated by Facility in accordance 
with the cost allocation instructions set forth below.
a. Cost Allocation Instructions
    In Part IV.C.2, above, we direct you to allocate your Company-wide 
investments and expenses to Inmate Calling Services, among other 
services, in accordance with certain instructions. We now provide 
instructions on how you are to allocate the Company-wide investments 
and expenses allocated to Inmate Calling Services among the Facilities 
at which the Company provides Calling Services to incarcerated people.
    To the extent possible, you must assign or allocate Company-wide 
investments and expenses for Inmate Calling Services among Facilities 
using the hierarchy of methods specified below.
    (1) First, to the extent possible, directly assign investments used

[[Page 16581]]

exclusively to provide Inmate Calling Services at or for a particular 
Facility to that Facility; likewise, to the extent possible, directly 
assign expenses incurred exclusively to provide Inmate Calling Services 
at or for a particular Facility to that Facility. Calculate federal and 
state income taxes relative to Inmate Calling Services for a particular 
Facility as specified in 6 and 7 below.
    (2) Second, group shared investments and expenses into shared 
investment and expense categories based on business function, activity, 
or task. Group common investments and expenses into common investment 
and expense categories based on business function, activity, or task.
    (a) Any investments and expenses that are not directly assignable 
to a specific Facility are shared or common investments and expenses.
    (b) Shared investments are for assets used exclusively to provide 
Inmate Calling Services at or for a specific subset of Facilities that 
are not assignable or attributable to a particular Facility. Shared 
expenses are expenses incurred solely to provide Inmate Calling 
Services at or for a specific subset of Facilities that are not 
assignable or attributable to a specific Facility.
    (c) Common investments are for assets not assignable or 
attributable to a specific Facility or subset of facilities. Common 
expenses are expenses that are not assignable or attributable to a 
specific Facility or subset of Facilities.
    (3) Third, to the extent possible, directly attribute categories of 
shared investments and expenses, and categories of common investments 
and expenses, to particular Facilities based on direct analysis of 
factors that cause a particular business function, activity, or task--
and thus investments or expenses--to increase or decrease.
    (4) Fourth, where neither direct assignment nor direct attribution 
is possible, allocate categories of shared investments and expenses, 
and categories of common investments and expenses, to particular 
Facilities based on an indirect, cost-causative link to another 
investment and expense or another investment or expense category (or 
group of categories) for which direct assignment or attribution is 
possible.
    (5) Fifth, where none of the methods described above is possible, 
allocate categories of shared investments and expenses to the 
particular Facilities that share the investments and expenses in 
proportion to each Facility's share of the total of all investments or 
expenses already directly assigned or attributed to these particular 
Facilities. Allocate categories of common investments and expenses to 
particular Facilities in proportion to each Facility's share of the 
total of all investments or expenses already directly assigned or 
attributed to all Facilities.
    (6) Federal income taxes: First, subtract reported interest expense 
other than interest paid on customer prepayments or deposits (and any 
amount reported for other income tax-related adjustments) from Return 
to determine federal taxable income. Second, divide the federal income 
tax rate by 1 minus the federal income tax rate to determine a federal 
income tax gross-up factor. Third, multiply the federal income tax 
gross-up factor by federal taxable income to determine the amount of 
federal income tax to report.
    (7) State income taxes: First, add the portion of federal income 
tax that is not deductible for state income tax purposes to federal 
taxable income to determine state taxable income. Second, divide the 
individual state income tax rate applicable to a particular Facility by 
1 minus the individual state income tax rate applicable to that 
Facility to determine a state income tax gross-up factor. Third, 
multiply the state income tax gross-up factor by state taxable income 
to determine the amount of state income tax to report.
    The sums of the investment and expense amounts assigned to, 
attributed to, or allocated among Facilities shall equal the total of 
the Company-wide investment and expense amounts reported for Inmate 
Calling Services. The sums of the federal and state income taxes 
calculated separately for each of the Facilities shall equal the 
Company-wide federal and state income tax amounts reported for Inmate 
Calling Services. Fully document, explain, and justify all cost 
assignments, attributions, and allocations in the Word template.
b. Cost Allocation Results
    Report the results of your cost assignments, attributions, and 
allocations in the Excel template.
    (1) Capital Assets: Report the year-end amount related to the 
provision of Inmate Calling Services at or for each Facility for each 
Year of the Reporting Period for each of the items specified below. For 
Cash Working Capital (item (h)), please report the average amount.
    (a) Gross Investment;
    (b) Accumulated depreciation;
    (c) Accumulated amortization;
    (d) Net Investment;
    (e) Accumulated deferred federal income taxes;
    (f) Accumulated deferred state income taxes;
    (g) Customer prepayments or deposits;
    (h) Cash Working Capital; and
    (i) Net Capital Stock.
    (2) Capital Expenses and Related Tax Information: Report the annual 
amount or percentages related to the provision of Inmate Calling 
Services at or for each Facility for each Year of the Reporting Period 
for each of the items specified below.
    (a) Depreciation;
    (b) Amortization;
    (c) Weighted Average Cost of Capital;
    (d) Return;
    (e) Interest other than interest paid on customer prepayments or 
deposits;
    (f) Interest paid on customer prepayments or deposits;
    (g) Other income tax-related adjustments;
    (h) Federal taxable income;
    (i) Federal income tax rate;
    (j) Federal income tax gross-up factor;
    (k) Federal income tax;
    (l) Federal income tax not deductible for state income tax 
purposes;
    (m) State taxable income;
    (n) State income tax rate;
    (o) State income tax gross-up factor; and
    (p) State income tax.
    (3) Operating Expenses: Report the annual amount related to the 
provision of Inmate Calling Services at or for each Facility for each 
Year of the Reporting Period for each of the items specified below. 
Each expense must be reported for a particular category; for example, 
do not report expense incurred for termination of International 
Communication as an expense incurred for Interstate and Intrastate 
Communication. Exclude any charges for asset impairment loss.
    (a) Maintenance, repair, and engineering of site plant, equipment, 
and facilities;
    (b) Origination, switching, and transporting of Interstate, 
International and Intrastate Communication and termination of 
Interstate and Intrastate Communication;
    (c) Termination of International Communication;
    (d) Field service;
    (e) Network operations;
    (f) Call center;
    (g) Data center;
    (h) Security Services relating to the Company's ICS-Related 
Operations;
    (i) Billing, collection, client management, and customer care;
    (j) Sales and marketing;
    (k) General and administrative;
    (l) Other overhead;
    (m) Taxes other than income taxes;
    (n) Transactions related to mergers and acquisitions; and
    (o) Bad debt.

[[Page 16582]]

c. Facility-Specific Annual Total Expenses
    Report the separate Facility-specific Annual Total Expenses for 
Inmate Calling Services for each Facility at which you provided Calling 
Services to incarcerated people. Exclude reported interest expense 
other than interest paid on customer prepayments or deposits from 
Annual Total Expenses. The allowance for interest expense other than 
interest paid on customer prepayments or deposits is included in the 
Return component of the Annual Total Expenses calculation. Include 
reported interest paid on customer prepayments or deposits in Annual 
Total Expenses. Exclude expense reported for termination of 
International Communication from Annual Total Expenses.
d. Facility-Specific Demand and Revenue Data
    (1) Demand for Inmate Calling Services: Report on the Excel 
template the annual demand for Inmate Calling Services for each Year of 
the Reporting Period. Provide separate data for each Facility at which 
you provided Calling Services to incarcerated people. Annual demand 
shall be expressed in the units and for the categories specified below. 
Billed and Unbilled Minutes and Calls reported for different categories 
shall sum to the relevant total reported for Billed and Unbilled 
Minutes and Calls. You must submit individual data for each Facility 
even if that Facility is covered by the same contract as other 
Facilities. Those data must be specific to the Facility in question and 
not simply a repeat of data reported for other Facilities covered by 
the same contract. If you repeat or merge data across multiple 
facilities covered by a single contract, explain in the Word template 
why you did so and how you reported the data.
    (a) Total Billed Calls;
    (b) Billed Calls separately for (i) Interstate Communication, (ii) 
International Communication, and (iii) Intrastate Communication;
    (c) Total Unbilled Calls;
    (d) Total Billed and Unbilled Calls;
    (e) Total Billed Minutes;
    (f) Billed Minutes separately for (i) Interstate Communication, 
(ii) International Communication, and (iii) Intrastate Communication;
    (g) Total Unbilled Minutes;
    (h) Total Billed and Unbilled Minutes;
    (i) Average Daily Population;
    (aa) If you do not know a Facility's Average Daily Population, so 
indicate and provide your best estimate of that Average Daily 
Population. Explain the basis for this estimate in the Word template.
    (j) Total number of ICS accounts opened;
    (k) Total number of ICS accounts closed;
    (l) Total Admissions;
    (m) Total Releases;
    (n) Weekly Turnover Rate;
    (o) Number of Incarcerated Person Telephones Installed; and
    (p) Number of Incarcerated Person Kiosks Installed.
    (2) Demand for Automated Payment Service, Live Agent Service, Paper 
Bill/Statement Service, Single-Call and Related Services, and Third-
Party Financial Transaction Service: Report on the Excel template the 
annual demand for Automated Payment Service, Live Agent Service, Paper 
Bill/Statement Service, Single-Call and Related Services, and Third-
Party Financial Transaction Service. Provide separate data for each 
Facility at which you provided Calling Services to incarcerated people. 
Express demand for Automated Payment Service, Live Agent Service, and 
Paper Bill/Statement Service as the number of Billed Uses. Express 
demand for Single-Call and Related Services and Third-Party Financial 
Transaction Service as the number of Billed Transactions. Billed demand 
reported for each Facility shall sum to the relevant total for all 
Facilities.
    (3) Revenues from Inmate Calling Services: Report on the Excel 
template the annual Billed Revenues from Inmate Calling Services for 
each Year of the Reporting Period. Provide separate data for each of 
the categories specified below for each Facility at which you provided 
Calling Services for incarcerated people. Billed Revenues reported for 
different categories shall sum to the relevant total reported for 
Billed Revenues.
    (a) Total Billed Revenues;
    (b) Billed Revenues separately for (i) Interstate Communication, 
(ii) International Communication, and (iii) Intrastate Communication;
    (4) Revenues from Automated Payment Service, Live Agent Service, 
Paper Bill/Statement Service, Single-Call and Related Services, and 
Third-Party Financial Transaction Service: Report on the Excel template 
the annual Billed Revenues from Automated Payment Service, Live Agent 
Service, Paper Bill/Statement Service, Single-Call and Related 
Services, and Third-Party Financial Transaction Service. Provide 
separate data for each Facility at which you provided Calling Services 
for incarcerated people. Billed Revenues reported for each Facility 
shall sum to the relevant total for all Facilities.
2. Other Facility-Specific Information
    The following information requires you to report various Facility-
level data in the Excel template.
a. General Information
    (1) Unique Identifier for Contract: Enter a unique identifier for 
each contract under which the Company provides Inmate Calling Services.
    (2) Counterparty to Contract: For each contract identified above, 
list the name of the party or entity that entered into the contract 
with the Provider.
    (3) Unique Identifier for Facility: Enter a unique identifier for 
each Facility at which the Company offers Inmate Calling Services.
    (4) Facility Address: Enter the complete address (street address, 
city, state, and ZIP Code) of the physical location of each Facility.
    (5) Facility Geographical Coordinates: Enter the geographical 
coordinates of each Facility.
    (6) Facility Type (Jail or Prison): Indicate whether each Facility 
is a Prison (P) or a Jail (J).
    (7) Maximum Call Duration: Enter in minutes the Maximum Call 
Duration for ICS calls originating from each Facility. If neither the 
Facility nor the Company imposes a limit on the length of ICS calls 
placed from the Facility, enter ``N/A.''
b. Site Commissions
    This subsection directs you to report Facility-specific data on 
Site Commissions. You must fully allocate all reported Site Commissions 
during the Reporting Period among the Facilities associated with each 
Site Commission payment.
    (1) Site Commissions: For each Year of the Reporting Period, enter 
the total amount of all Site Commissions paid by the Company that was 
related to the Facility, without regard to whether the Site Commission 
was Legally Mandated, Contractually Prescribed, Fixed, Variable, 
Monetary, or In-Kind.
    (a) For each Year of the Reporting Period, enter the percentage of 
the total Site Commissions paid by the Company that was related to the 
Facility and that was attributable to the Company's ICS-Related 
Operations.
    (b) List the non-ICS Products and Services that the Company 
provided at the Facility during each year of the Reporting Period.
    (c) In the Word template, identify for each Year of the Reporting 
Period any Site Commissions paid by the Company that related to any 
Facility and that

[[Page 16583]]

included both a monetary payment and an in-kind payment. Provide the 
name of the Facility, the entity to which you paid the Site Commission, 
and the amount of the monetary payment, and describe in detail the in-
kind payment, including any Security Service.
    (d) In the Word template, list for each Year of the Reporting 
Period each entity to which you paid a Site Commission. Provide the 
name of the Facility for which that entity is responsible and the 
amount paid to that entity without regard to whether the Site 
Commission was Legally Mandated, Contractually Prescribed, Fixed, 
Variable, Monetary, or In-Kind.
    (2) Legally Mandated Site Commissions: Enter the total amount of 
Legally Mandated Site Commissions paid in connection with ICS calls 
from the Facility during each Year of the Reporting Period.
    (a) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Legally Mandated Site 
Commissions in connection with ICS calls from the Facility. If the Site 
Commissions were paid to more than one entity, allocate the payment 
between the relevant entities.
    (b) Legally Mandated Site Commission Authority: For each year of 
the Reporting Period during which you paid Legally Mandated Site 
Commissions in connection with ICS calls from the Facility, provide a 
citation to the authority requiring the such payment.
    (c) Total Monetary Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Legally Mandated Site, Monetary 
Commissions paid in connection with ICS calls from the Facility.
    (d) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Legally Mandated, 
Monetary Site Commissions in connection with ICS calls from the 
Facility. If the Site Commissions were paid to more than one entity, 
allocate the payment between the relevant entities.
    (i) Fixed Site Commissions: For each Year of the Reporting Period, 
enter the total amount of Legally Mandated Site Commissions that were 
both Monetary Site Commissions and Fixed Site Commissions and that were 
paid in connection with ICS calls from the Facility.
    (aa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid the Legally Mandated, 
Fixed, Monetary Site Commissions in connection with ICS calls from the 
Facility. If these Site Commissions were paid to more than one entity, 
allocate the payments among the relevant entities.
    (ab) If the Legally Mandated, Fixed, Monetary Site Commission was 
imposed at the contract level (e.g., a minimum annual guarantee due 
annually under a contract covering multiple Facilities), allocate the 
Site Commission payments among all Facilities covered by the contract.
    (ac) In the Word template, describe the methodology used to 
allocate the Legally Mandated, Fixed, Monetary Site Commission payments 
among Facilities covered by the contract.
    (ad) Upfront Payments: For each Year of the Reporting Period, enter 
the total amount of all Legally Mandated Site Commissions that not only 
were Monetary Site Commissions and Fixed Site Commissions but also were 
paid, at the signing of a contract or during the first year of the 
contract, in connection with the provision of ICS at the Facility.
    (aaa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you made these upfront 
payments. If those Site Commissions were paid to more than one entity, 
allocate the payments among the relevant entities.
    (ii) Variable Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Legally Mandated Site Commissions 
that were both Monetary Site Commissions and Variable Site Commissions 
and that were paid in connection with ICS calls from the Facility.
    (aa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Legally Mandated, 
Variable, Monetary Site Commissions. If these Site Commissions were 
paid to more than one entity, allocate the payments among the relevant 
entities.
    (e) Total In-Kind Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Legally Mandated Site Commissions 
that were also In-Kind Site Commissions and that were paid in 
connection with ICS calls from the Facility.
    (i) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Legally Mandated, In-
Kind Site Commissions in connection with ICS calls from the Facility. 
If those Site Commissions were paid to more than one entity, allocate 
the payments among the relevant entities.
    (ii) In the Word template, describe these in-kind payments in 
detail. Specifically describe each Security Service provided at the 
Facility that you classify as an In-Kind Site Commission payment. Also 
specifically describe any other payment, gift, exchange of services or 
goods, fee, technology allowance, or product provided the Facility that 
you classify as an In-Kind Site Commission payment.
    (iii) Fixed Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Legally Mandated Site Commissions 
that were both In-Kind Site Commissions and Fixed Site Commissions and 
that were paid in connection with ICS calls from the Facility.
    (aa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Legally Mandated, 
Fixed, In-Kind Site Commissions in connection with ICS calls from the 
Facility. If the Site Commissions were paid to more than one entity, 
allocate the payments among the relevant entities.
    (ab) If the Legally Mandated, Fixed, In-Kind Site Commission was 
imposed at the contract level (e.g., a minimum annual guarantee due 
annually under a contract covering multiple Facilities), allocate the 
Site Commission among all Facilities covered by the contract.
    (ac) In the Word template, describe the methodology used to 
allocate the Legally Mandated, Fixed, In-Kind Site Commission payments 
among Facilities covered by the contract.
    (ad) Upfront Payments: For each Year of the Reporting Period, enter 
the total amount of all Legally Mandated Site Commissions that not only 
were In-Kind Site Commissions and Fixed Site Commissions but also were 
paid, at the signing of a contract or during the first year of the 
contract, in connection with the provision of ICS at the Facility.
    (aaa) Recipient: For each year of the Reporting Period, enter the 
name of the entity or entities to which you made these upfront 
payments. If those Site Commissions were paid to more than one entity, 
allocate the payments among the relevant entities.
    (iv) Variable Site Commissions: For each Year of the Reporting 
Period, enter the amount of Legally Mandated Site Commissions that were 
both In-Kind Site Commissions and Variable Site Commissions and that 
were paid in connection with ICS calls from the Facility.
    (aa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Legally Mandated, 
Variable, In-Kind Site Commissions. If the Site Commissions were paid 
to more than one entity, allocate the payments among the relevant 
entities.
    (3) Contractually Prescribed Site Commissions: Enter the total 
amount of

[[Page 16584]]

Contractually Prescribed Site Commissions paid in connection with ICS 
calls from the Facility during each Year of the Reporting Period.
    (a) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Contractually 
Prescribed Site Commissions Site Commissions in connection with ICS 
calls from the Facility. If the Site Commissions were paid to more than 
one entity, allocate the payment among the relevant entities.
    (b) Total Monetary Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Contractually Prescribed, Monetary 
Site Commissions paid related to the Facility.
    (i) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Contractually 
Prescribed, Monetary Site Commissions. If the Site Commissions were 
paid to more than one entity, allocate the payments among the relevant 
entities.
    (ii) Fixed Site Commissions: For each Year of the Reporting Period, 
enter the total amount of Contractually Prescribed Site Commissions 
that were both Monetary Site Commissions and Fixed Site Commissions and 
that were paid in connection with ICS calls from the Facility.
    (aa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Contractually 
Prescribed, Fixed, Monetary Site Commissions in connection with ICS 
calls from the Facility. If these Site Commissions were paid to more 
than one entity, allocate the payments among the relevant entities
    (ab) If the Contractually Prescribed, Fixed, Monetary Site 
Commission was imposed at the contract level (e.g., a minimum annual 
guarantee due annually under a contract covering multiple Facilities), 
allocate the Site Commission among all Facilities covered by the 
contract.
    (ac) In the Word template, describe the methodology used to 
allocate the Contractually Prescribed, Fixed, Monetary Site Commission 
payments among Facilities covered by the contract.
    (ad) Upfront Payments: For each Year of the Reporting Period, enter 
the total amount of all Contractually Prescribed Site Commissions that 
not only were Monetary Site Commissions and Fixed Site Commissions but 
also were paid, at the signing of a contract or during the first year 
of the contract, in connection with the provision of ICS at the 
Facility.
    (aaa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which made these upfront payments. If 
the Site Commissions were paid to more than one entity, allocate the 
payments among the relevant entities.
    (iii) Variable Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Contractually Prescribed Site 
Commissions that were both Monetary Site Commissions and Variable Site 
Commissions and that were paid in connection with ICS calls from the 
Facility.
    (aa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Contractually 
Prescribed, Variable, Monetary Site Commissions. If the Site 
Commissions were paid to more than one entity, allocate the payments 
among the relevant entities.
    (c) Total In-Kind Site Commissions: For each Year of the Reporting 
Period, enter the total amount of Contractually Prescribed Site 
Commissions that were also In-Kind Site Commissions and that were paid 
related in connection with ICS calls from the Facility.
    (i) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Contractually 
Prescribed, In-Kind Site Commissions. If the Site Commissions were paid 
to more than one entity, allocate the payments among the relevant 
entities.
    (ii) In the Word template, describe these in-kind payments in 
detail. Specifically describe each Security Service provided at the 
Facility that you classify as an In-Kind Site Commission payment. Also 
specifically describe any other payment, gift, exchange of services or 
goods, fee, technology allowance, or product provided the Facility that 
you classify as an In-Kind Site Commission payment.
    (iii) Fixed Site Commissions: For each Year of the Reporting 
Period, enter the amount of Contractually Prescribed Site Commissions 
that were both In-Kind Site Commissions and Fixed Site Commissions and 
that were paid in connection with ICS calls from the Facility.
    (aa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Contractually 
Prescribed, Fixed, In-Kind Site Commissions in connection with ICS 
calls from the Facility. If the Site Commissions were paid to more than 
one entity, allocate the payments among the relevant entities.
    (ab) If the Contractually Prescribed, Fixed, In-Kind Site 
Commission was imposed at the contract level (e.g., a minimum annual 
guarantee due annually under a contract covering multiple Facilities), 
allocate the Site Commission among all Facilities covered by the 
contract.
    (ac) In the Word template, describe the methodology used to 
allocate the Contractually Prescribed, Fixed, In-Kind Site Commission 
payments among Facilities.
    (ad) Upfront Payments: For each Year of the Reporting Period, enter 
the amount of all Contractually Prescribed Site Commissions that not 
only were In-Kind Site Commissions and Fixed Site Commissions but also 
were paid, at the signing of a contract or during the first year of the 
contract, in connection with the provision of ICS at the Facility.
    (aaa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you made these upfront 
payments. If those Site Commissions were paid to more than one entity, 
allocate the payments among the relevant entities.
    (iv) Variable Site Commissions: For each Year of the Reporting 
Period, enter the amount of Contractually Prescribed Site Commissions 
that were both In-Kind Site Commissions and Variable Site Commissions 
and that were paid in connection with ICS calls from the Facility.
    (aa) Recipient: For each Year of the Reporting Period, enter the 
name of the entity or entities to which you paid Contractually 
Prescribed, Variable, In-Kind Site Commissions. If the Site Commissions 
were paid to more than one entity, allocate the payments among the 
relevant entities.
    (4) Site Commission Allocation Methodology: In the Word template, 
fully describe, document, explain, and justify the allocation 
methodology you used to allocate Site Commission payments between your 
ICS and non-ICS operations at each Facility during each Year of the 
Reporting Period in situations where you made Site Commission payments 
for both ICS and non-ICS Operations.
c. Security Services Not Classified as Site Commissions
    Reporting in response to the following questions (1) through (4) 
must be exclusive of the data reported in connection with Site 
Commissions to prevent double-counting.
    (1) On the Excel template, fully allocate and report the total 
dollar amount of costs the Company incurred to provide the following 
categories of services at each Facility during each Year of the 
Reporting Period.
    (a) Law enforcement support services

[[Page 16585]]

    (i) In the Word template, for each Facility and for each Year of 
the Reporting Period, identify by name and describe each service you 
classify as a law enforcement support service, including a description 
of the specific tasks and functions covered by this service and whether 
you routinely offer this service in connection with ICS.
    (b) Call security services
    (i) In the Word template, for each Facility and for each Year of 
the Reporting Period, identify by name and describe each service you 
classify as a call security service, including a description of the 
specific tasks and functions covered by this service and whether you 
routinely offer this service in connection with ICS.
    (c) Call recording services
    (i) In the Word template, for each Facility and for each Year of 
the Reporting Period, identify by name and describe each service you 
classify as a call recording service, including a description of the 
specific tasks and functions covered by this service and whether you 
routinely offer this service in connection with ICS.
    (d) Call monitoring services
    (i) In the Word template, for each Facility and for each Year of 
the Reporting Period, identify by name and describe each service you 
classify as a call monitoring service, including a description of the 
specific tasks and functions covered by this service whether you 
routinely offer this service in connection with ICS.
    (e) Voice biometrics services
    (i) In the Word template, for each Facility and for each Year of 
the Reporting Period, identify by name and describe each service you 
classify as a voice biometric service, including a description of the 
specific tasks and functions covered by this service and whether you 
routinely offer this service in connection with ICS.
    (f) Other Security Services
    (i) In the Word template, for each Facility and for each Year of 
the Reporting Period, identify by name and describe each Security 
Service that is not included in one of the foregoing subcategories, 
including a description of the specific tasks and functions covered by 
each service and whether you routinely offer each service in connection 
with ICS.
    (2) In the Word template, specifically describe each Security 
Service you provided at the Facility that you do not classify as a Site 
Commission and that is not offered in connection with ICS.
    (3) In the Word template, specifically describe any other payment, 
gift, exchange of goods or services, fee, technology allowance, or 
product provided for security purposes at the Facility that you do not 
classify as a Site Commission payment.
    (4) In the Word template, fully describe, document, explain, and 
justify the allocation methodology you use to allocate the costs of 
your Security Services between ICS and non-ICS operations at each 
Facility during each Year of the Reporting Period in situations where 
Security Services offered by you also shared elements or overlapped 
with your non-ICS operations at each Facility.
d. Ancillary Services Information
    (1) Automated Payment Fee Revenues: Enter the amount of Automated 
Payment Fee Revenues the Accounting Entity received from Customers for 
ICS calls originating in the Facility during each Year of the Reporting 
Period.
    (2) Automated Payment Fees Paid to An Affiliate: Enter the amount 
of Automated Payment Fee revenue the Accounting Entity paid to any non-
ICS Affiliate for ICS calls originating in the Facility during each 
Year of the Reporting Period.
    (3) Affiliates Used in Providing Automated Payment Service: List 
each Affiliate, if any, that the Accounting Entity used in providing 
its Automated Payment Service at each Facility for each Year of the 
Reporting Period.
    (4) Third Parties Used in Providing Automated Payment Service: List 
each Third Party, if any, that the Accounting Entity used in providing 
its Automated Payment Service at each Facility for each Year of the 
Reporting Period and enter the amount of Automated Pay Service for 
which the Company was billed by each listed Third Party at each 
Facility for each Year of the Reporting Period.
    (5) Automated Payment Fees and Third-Party Transaction Fees Charged 
in the Same Transaction: In the Word template and for each Facility for 
each Year of the Reporting Period, identify any transactions for which 
both Automated Payment Fees and Third-Party Transaction Fees were 
charged, describe the services provided for the transaction, and 
apportion the fees charged for the services provided for each.
    (6) Payment Card Processing Revenue for Automated Payment Fees: Of 
the amount reported for Automated Payment Fee Revenue above, enter the 
amount of that revenue attributable to payment card processing fees 
charged in connection with calls at each Facility during each Year of 
the Reporting Period.
    (a) In the Word template, describe these payment card processing 
functions performed at each Facility, including whether they were 
performed by the Provider, an Affiliate, or a Third Party. If such 
functions were performed by an Affiliate or Third Party, identify the 
Affiliate or Third Party.
    (7) Fees for Single-Call and Related Services: Enter the amount of 
Fees for Single-Call and Related Services the Accounting Entity 
received from Customers in connection with its ICS-Related Operations 
at the Facility during each Year of the Reporting Period.
    (8) Single-Call and Related Services Revenues Paid to An Affiliate: 
Enter the amount of revenues from Fees for Single-Call and Related 
Services Customers paid to any Affiliate for ICS calls originating in 
the Facility during each Year of the Reporting Period.
    (9) Entities Charging the Accounting Entity for Billing Services: 
List each entity that charged the Accounting Entity for billing 
services for Single-Call and Related services at each Facility for each 
year during the Reporting Period. Indicate whether each listed entity 
is a Third Party.
    (10) Amounts Paid to Third Parties for Billing Services: Enter the 
amount the Accounting Entity paid to a Third Party for billing services 
in connection with Single-Call and Related Services at each Facility 
during each Year of the Reporting Period.
    (11) Single-Call and Related Services Fees Passed through to 
Customers: Enter the amount the Accounting Entity paid to Third Parties 
for billing services in connection with Single-Call and Related 
Services that the Company passed through to Customers at each Facility 
during each Year of the Reporting Period.
    (12) Amounts Paid to Other Entities for Billing Services: Enter the 
amount the Accounting Entity paid to entities other than Third Parties 
for billing services in connection with Single-Call and Related 
Services at each Facility during each Year of the Reporting Period.
    (13) Amounts Paid to Other Entities for Billing Services Passed 
Through to Customers: Enter the amount the Accounting Entity paid to 
entities other than Third Parties for billing services in connection 
with Single-Call and Related Services that the Company passed through 
to Customers at each Facility during each Year of the Reporting Period.
    (14) Other Entities that Charged Customers for Single-Call and 
Related Services: In the Word template, state whether any entity other 
than the

[[Page 16586]]

Company charged Customers Single-Call and Related Services Fees in 
connection with the Company's ICS-Related Operations at each Facility 
for each Year during the Reporting Period. If so, list each such 
entity, indicate whether each listed entity is a Third Party, and 
provide the amount of such fees each listed entity charged Customers at 
each Facility during each Year of the Reporting Period.
    (15) Live Agent Fees: Enter the amount of Live Agent Fee revenue 
the Accounting Entity received from Customers in connection with its 
ICS-Related Operations at the Facility during each Year of the 
Reporting Period.
    (16) Affiliates Used to Provide Live Agent Service: List each 
Affiliate, if any, that the Accounting Entity used in providing its 
Live Agent Service at each Facility during each Year of the Reporting 
Period.
    (17) Third Parties Used to Provide Live Agent Service: List each 
Third Party, if any, that the Accounting Entity used in providing its 
Live Agent Service at each Facility during each Year of the Reporting 
Period.
    (18) Amounts Paid to Third Parties for Live Agent Service: Enter 
the amount the Accounting Entity paid to each listed Third Party for 
Live Agent Service at each Facility during each Year of the Reporting 
Period.
    (19) Live Agent Fee Revenue Paid to an Affiliate: Enter the amount 
of Live Agent Fee revenues the Accounting Entity paid to any non-ICS 
Affiliate for ICS calls originating in the Facility during each Year of 
the Reporting Period.
    (20) Paper Bill/Statement Fee Revenue: Enter the amount of Paper 
Bill/Statement Fee revenue generated by calls originating in the 
Facility during each Year of the Reporting Period.
    (21) Affiliates Used to Provide Paper Bill/Statement Service: List 
each Affiliate, if any, that the Accounting Entity used in providing 
its Paper Bill/Statement Fee Service at each Facility during each Year 
of the Reporting Period.
    (22) Third Parties Used to Provide Paper Bill/Statement Service: 
List each Third Party, if any, that the Accounting Entity used in 
providing its Paper Bill/Statement Service at each Facility during each 
Year of the Reporting Period.
    (23) Amounts Paid to Third Parties for Paper Bill/Statement 
Service: Enter the amount the Accounting Entity paid to each listed 
Third Party for Paper Bill/Statement Service at each Facility during 
each Year of the Reporting Period.
    (24) Paper Bill/Statement Fee Revenue Paid to an Affiliate: Enter 
the amount of Paper Bill/Statement Fee revenue paid by the Accounting 
Entity to any non-ICS Affiliate for ICS calls originating in the 
Facility during each Year of the Reporting Period.
    (25) Third-Party Financial Transaction Fees: Enter the amount of 
revenue from Third-Party Financial Transaction Fees the Accounting 
Entity received from Customers in connection with its ICS-Related 
Operations at the Facility during each Year of the Reporting Period.
    (26) Per-Transaction Charges for Third-Party Transactions: Enter 
the per-transaction fee(s) charged to an end user for transferring 
money or processing other financial transactions to facilitate an end 
user's ability to make account payments via a Third Party, including a 
Third Party that is an Affiliate of the Provider. For each fee, 
indicate whether the Third Party receiving the payment is an Affiliate 
or non-Affiliate.
    (27) Payment Card Processing Revenue from Third-Party Financial 
Transaction Fees: Of the amount reported for Third-Party Financial 
Transaction Fees above, enter the amount of that revenue applicable to 
charging Customers for payment card processing for each Facility during 
each Year during the Reporting Period.
    (a) In the Word template, describe the payment card processing 
services in connection with revenue reported for Third-Party Financial 
Transaction Fees, including whether they were performed by the 
Provider, an Affiliate, or a Third Party. If such services were 
provided by an Affiliate or a Third Party, identify the Affiliate or 
Third Party.
    (28) Entities Charging the Accounting Entity for Third-Party 
Financial Transaction Services: List each entity that charged the 
Accounting Entity for providing Third-Party Financial Transaction 
Services at each Facility for each Year of the Reporting Period. 
Indicate whether each listed entity is a Third Party.
    (29) Amounts Paid to Third Parties for Third-Party Financial 
Transaction Services: Enter the amount the Accounting Entity paid to 
Third Parties for Third-Party Financial Transaction Services at each 
Facility during each Year of the Reporting Period.
    (30) Amounts Paid to Third Parties for Third-Party Financial 
Transaction Services Passed Through to Customers: Enter the amount the 
Accounting Entity paid to Third Parties for Third-Party Financial 
Transaction Services that the Company passed through to Customers at 
each Facility for each Year of the Reporting Period.
    (31) Amounts Paid to Other Entities for Third-Party Financial 
Transaction Services: Enter the amount the Accounting Entity paid to 
entities other than Third Parties for Third-Party Financial Transaction 
Services at each Facility during each Year of the Reporting Period.
    (32) Amounts Paid to Other Entities for Third-Party Financial 
Transaction Services Passed Through to Customers: Enter the amount the 
Accounting Entity paid to entities other than Third Parties for Third-
Party Financial Transaction Services that the Company passed through to 
Customers at each Facility during each Year of the Reporting Period.
    (33) Other Entities that Charged Customers for Third-Party 
Financial Transaction Services: In the Word template, state whether any 
entity other than the Company charged Customers for Third-Party 
Financial Transaction Services in connection with the Company's ICS-
Related Operations at each Facility for each Year of the Reporting 
Period. If so, list each such entity and provide the amount of such 
fees each listed entity charged Customers at each Facility for each 
Year of the Reporting Period.
    (34) Third-Party Financial Transaction Fees Paid to an Affiliate: 
Enter the amount of Third-Party Financial Transaction Fees paid by the 
Accounting Entity to any non-ICS Affiliate for ICS calls originating in 
the Facility during each Year of the Reporting Period.

V. Certification Form

    Each Provider of Inmate Calling Services must submit a signed 
certification form as part of its Mandatory Data Collection response. 
The Chief Executive Officer (CEO), Chief Financial Officer (CFO), or 
other senior executive of the Provider must complete the form and 
certify that, based the executive's own reasonable inquiry, that all 
statements and information contained in the Provider's Mandatory Data 
Collection response are true, accurate, and complete. The Certification 
Form is Appendix C to these instructions.
    (1) Name of Service Provider: Provide the name under which the 
Provider offers ICS. If the Provider offers ICS under more than one 
name, provide all relevant names.
    (2) Reporting Years: Provide the relevant time period for the 
information the certification covers.
    (3) Officer Name, Title: Provide the name and title of the officer 
completing the certification form. The officer must be the Chief 
Executive Officer (CEO),

[[Page 16587]]

Chief Financial Officer (CFO), or other senior executive of the 
Provider who can attest to the truthfulness, accuracy, and completeness 
of the information provided.
    (4) Mailing Address of Officer: Provide the business mailing 
address of the officer identified in item (3).
    (5) Telephone Number: Provide the business telephone number, with 
area code, of the officer identified in item (3).
    (6) Email Address: Provide the business email address of the 
officer identified in item (3).
    (7) Certification: This section requires the person who signs the 
certification form on behalf of the Provider to declare, under penalty 
of perjury, that (1) the signatory is an officer of the above-named 
Provider and is authorized to submit the attached Mandatory Data 
Collection response on behalf of the Provider; (2) the signatory has 
examined the attached Mandatory Data Collection response and determined 
that all requested information has been provided; and (3) based on 
information known to the signatory, or provided to the signatory by 
employees responsible for the information being submitted, and on the 
signatory's own reasonable inquiry, all statements and information 
contained in the Provider's Mandatory Data Collection response are 
true, accurate, and complete.
    (8) Signature of Authorized Officer: The signature of the officer 
identified in item (3) is required in this block.
    (9) Date: The date the officer identified in item (3) signs the 
form is required in this block.
    (10) Printed Name of Authorized Officer: The printed name of the 
officer identified in item (3) is required in this block.

[FR Doc. 2022-05359 Filed 3-22-22; 8:45 am]
BILLING CODE 6712-01-P


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