*HB1181.1*
January 20, 2022
HOUSE BILL No. 1181
_____
DIGEST OF HB 1181 (Updated January 19, 2022 3:50 pm - DI 131)
Citations Affected: IC 11-8; IC 11-14; IC 24-5.
Synopsis: Youth offender boot camps and inmate calling services.
Provides that juvenile offenders may not be placed in department of
correction boot camps beginning July 1, 2022. Provides, for purposes
of juvenile offenders who are already participating in the boot camp
program on July 1, 2022, that the boot camp program expires
December 31, 2023. Provides that a rate for intrastate: (1) collect
calling; (2) debit calling; (3) prepaid calling; or (4) prepaid collect
calling; in connection with inmate calling services shall not exceed the
rate cap for the comparable interstate service, as set by the Federal
Communications Commission (FCC) and in effect at the time the call
is initiated. Provides that this intrastate rate cap is subject to any
distinctions in the comparable interstate rate cap set by the FCC that
are based on: (1) the type or size of the correctional facility from which
the inmate calling services call is placed; and (2) whether any site
commission is sought to be recovered through the intrastate rate.
Specifies that a provider that has been granted a waiver by the FCC
from the interstate rate caps with respect to a particular: (1)
correctional facility; or (2) contract for the provision of inmate calling
services; is not subject to the intrastate rate caps for the comparable
intrastate services provided to the same correctional facility or under
the same contract. Prohibits a provider from charging an ancillary
service charge for an intrastate inmate calling services call, other than
those ancillary service charges permitted by the FCC for interstate or
international inmate calling services calls at the time the call is
initiated. Provides that a rate for a permitted ancillary service charge
(Continued next page)
Effective: July 1, 2022.
DeVon, McNamara, Jackson
January 6, 2022, read first time and referred to Committee on Courts and Criminal Code.
January 20, 2022, amended, reported — Do Pass.
HB 1181—LS 6917/DI 119 Digest Continued
for an intrastate inmate calling services call shall not exceed the rate
for the comparable ancillary service charge permitted by the FCC for
interstate or international inmate calling services calls at the time the
call is initiated. Specifies that a provider that has been granted a waiver
by the FCC from the ancillary service charge caps for interstate or
international inmate calling services calls with respect to a particular:
(1) correctional facility; or (2) contract for the provision of inmate
calling services; is not subject to the intrastate caps for the comparable
intrastate ancillary services provided to the same correctional facility
or under the same contract. Prohibits a provider of inmate calling
services from impeding the completion of, or otherwise degrading,
intrastate collect calling based on the lack of a billing relationship with
the called party's communications service provider. Prohibits a provider
from charging any taxes or fees in connection with intrastate inmate
calling services calls, except for: (1) authorized fees; and (2)
mandatory taxes and fees. Provides that: (1) authorized fees; and (2)
mandatory taxes and fees; may not include a markup, unless the
markup is specifically authorized by a federal, state, or local statute,
rule, or regulation. Prohibits a provider from: (1) imposing a per call or
per connection charge for any intrastate inmate calling services call; or
(2) offering flat rate calling for intrastate inmate calling services.
Provides that after June 30, 2022, a provider shall not enter into or
renew a contract for the provision of inmate calling services at a
correctional facility in Indiana unless the terms of the contract comply
with these provisions. Provides that any term, condition, or provision
that: (1) is included in such a contract; and (2) violates these
provisions; is void. Provides that a provider that violates these
provisions: (1) commits a deceptive act that is actionable by the
attorney general or by a consumer under the deceptive consumer sales
act (act); and (2) is subject to the remedies and penalties under the act.
HB 1181—LS 6917/DI 119HB 1181—LS 6917/DI 119 January 20, 2022
Second Regular Session of the 122nd General Assembly (2022)
PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana
Constitution) is being amended, the text of the existing provision will appear in this style type,
additions will appear in this style type, and deletions will appear in this style type.
Additions: Whenever a new statutory provision is being enacted (or a new constitutional
provision adopted), the text of the new provision will appear in this style type. Also, the
word NEW will appear in that style type in the introductory clause of each SECTION that adds
a new provision to the Indiana Code or the Indiana Constitution.
Conflict reconciliation: Text in a statute in this style type or this style type reconciles conflicts
between statutes enacted by the 2021 Regular Session of the General Assembly.
HOUSE BILL No. 1181
A BILL FOR AN ACT to amend the Indiana Code concerning
corrections.
Be it enacted by the General Assembly of the State of Indiana:
1 SECTION 1. IC 11-8-3-1 IS AMENDED TO READ AS FOLLOWS
2 [EFFECTIVE JULY 1, 2022]: Sec. 1. (a) The department may contract
3 with any city, county, state, or federal authority, or with other public or
4 private organizations, for:
5 (1) the custody, care, confinement, or treatment of committed
6 persons; or
7 (2) subject to subsection (e), the provision of other correctional
8 or related services to committed persons.
9 (b) Before transferring a committed person to the custody, care, or
10 control of an agency or organization under such a contract, the
11 department must approve the receiving facility or program as suitable
12 for the supervision and care of the person.
13 (c) The department may contract with individuals for the provision
14 of services to the department.
15 (d) To fund contracts under this section the department may use:
16 (1) its regular budgeted monies; and
17 (2) if applicable, monies deducted from the person's earnings
HB 1181—LS 6917/DI 119 2
1 under IC 11-10-7-5 or IC 11-10-8-6.
2 (e) After June 30, 2022, the department may not enter into or
3 renew a contract with a provider of inmate calling services for the
4 provision of inmate calling services at a correctional facility unless
5 the terms of the contract comply with IC 24-5-27. Any term,
6 condition, or provision that:
7 (1) is included in a contract that is entered into or renewed
8 after June 30, 2022, for the provision of inmate calling
9 services at a correctional facility; and
10 (2) violates IC 24-5-27;
11 is void.
12 (f) After June 30, 2022, a county owning or operating a
13 correctional facility may not enter into or renew a contract with a
14 provider of inmate calling services for the provision of inmate
15 calling services at the correctional facility unless the terms of the
16 contract comply with IC 24-5-27. Any term, condition, or provision
17 that:
18 (1) is included in a contract that is entered into or renewed
19 after June 30, 2022, for the provision of inmate calling
20 services at the correctional facility; and
21 (2) violates IC 24-5-27;
22 is void.
23 SECTION 2. IC 11-14-3-1 IS REPEALED [EFFECTIVE JULY 1,
24 2022]. Sec. 1. When sentencing a youthful offender, the sentencing
25 court may recommend to the department that the youthful offender be
26 placed in boot camp.
27 SECTION 3. IC 11-14-3-2 IS REPEALED [EFFECTIVE JULY 1,
28 2022]. Sec. 2. When a youthful offender is committed to the
29 department, the department shall determine whether the youthful
30 offender is eligible to participate in boot camp and whether the
31 youthful offender wishes to participate in boot camp. This
32 determination must be made when the youthful offender is evaluated
33 at the department's reception and diagnostic center.
34 SECTION 4. IC 11-14-3-3 IS REPEALED [EFFECTIVE JULY 1,
35 2022]. Sec. 3. If the department determines that a youthful offender is
36 eligible to participate in boot camp, space is available in boot camp,
37 and the youthful offender desires to participate, the department shall
38 place the youthful offender in boot camp.
39 SECTION 5. IC 11-14-3-6 IS REPEALED [EFFECTIVE JULY 1,
40 2022]. Sec. 6. If the department:
41 (1) receives a recommendation for boot camp placement under
42 section 1 of this chapter; and
HB 1181—LS 6917/DI 119 3
1 (2) determines that the youthful offender is not eligible to
2 participate in boot camp;
3 the department shall notify the sentencing court of the determination
4 of noneligibility.
5 SECTION 6. IC 11-14-5 IS ADDED TO THE INDIANA CODE AS
6 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
7 1, 2022]:
8 Chapter 5. Expiration
9 Sec. 1. This article expires December 31, 2023.
10 SECTION 7. IC 24-5-0.5-3, AS AMENDED BY P.L.156-2020,
11 SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
12 JULY 1, 2022]: Sec. 3. (a) A supplier may not commit an unfair,
13 abusive, or deceptive act, omission, or practice in connection with a
14 consumer transaction. Such an act, omission, or practice by a supplier
15 is a violation of this chapter whether it occurs before, during, or after
16 the transaction. An act, omission, or practice prohibited by this section
17 includes both implicit and explicit misrepresentations.
18 (b) Without limiting the scope of subsection (a), the following acts,
19 and the following representations as to the subject matter of a
20 consumer transaction, made orally, in writing, or by electronic
21 communication, by a supplier, are deceptive acts:
22 (1) That such subject of a consumer transaction has sponsorship,
23 approval, performance, characteristics, accessories, uses, or
24 benefits it does not have which the supplier knows or should
25 reasonably know it does not have.
26 (2) That such subject of a consumer transaction is of a particular
27 standard, quality, grade, style, or model, if it is not and if the
28 supplier knows or should reasonably know that it is not.
29 (3) That such subject of a consumer transaction is new or unused,
30 if it is not and if the supplier knows or should reasonably know
31 that it is not.
32 (4) That such subject of a consumer transaction will be supplied
33 to the public in greater quantity than the supplier intends or
34 reasonably expects.
35 (5) That replacement or repair constituting the subject of a
36 consumer transaction is needed, if it is not and if the supplier
37 knows or should reasonably know that it is not.
38 (6) That a specific price advantage exists as to such subject of a
39 consumer transaction, if it does not and if the supplier knows or
40 should reasonably know that it does not.
41 (7) That the supplier has a sponsorship, approval, or affiliation in
42 such consumer transaction the supplier does not have, and which
HB 1181—LS 6917/DI 119 4
1 the supplier knows or should reasonably know that the supplier
2 does not have.
3 (8) That such consumer transaction involves or does not involve
4 a warranty, a disclaimer of warranties, or other rights, remedies,
5 or obligations, if the representation is false and if the supplier
6 knows or should reasonably know that the representation is false.
7 (9) That the consumer will receive a rebate, discount, or other
8 benefit as an inducement for entering into a sale or lease in return
9 for giving the supplier the names of prospective consumers or
10 otherwise helping the supplier to enter into other consumer
11 transactions, if earning the benefit, rebate, or discount is
12 contingent upon the occurrence of an event subsequent to the time
13 the consumer agrees to the purchase or lease.
14 (10) That the supplier is able to deliver or complete the subject of
15 the consumer transaction within a stated period of time, when the
16 supplier knows or should reasonably know the supplier could not.
17 If no time period has been stated by the supplier, there is a
18 presumption that the supplier has represented that the supplier
19 will deliver or complete the subject of the consumer transaction
20 within a reasonable time, according to the course of dealing or the
21 usage of the trade.
22 (11) That the consumer will be able to purchase the subject of the
23 consumer transaction as advertised by the supplier, if the supplier
24 does not intend to sell it.
25 (12) That the replacement or repair constituting the subject of a
26 consumer transaction can be made by the supplier for the estimate
27 the supplier gives a customer for the replacement or repair, if the
28 specified work is completed and:
29 (A) the cost exceeds the estimate by an amount equal to or
30 greater than ten percent (10%) of the estimate;
31 (B) the supplier did not obtain written permission from the
32 customer to authorize the supplier to complete the work even
33 if the cost would exceed the amounts specified in clause (A);
34 (C) the total cost for services and parts for a single transaction
35 is more than seven hundred fifty dollars ($750); and
36 (D) the supplier knew or reasonably should have known that
37 the cost would exceed the estimate in the amounts specified in
38 clause (A).
39 (13) That the replacement or repair constituting the subject of a
40 consumer transaction is needed, and that the supplier disposes of
41 the part repaired or replaced earlier than seventy-two (72) hours
42 after both:
HB 1181—LS 6917/DI 119 5
1 (A) the customer has been notified that the work has been
2 completed; and
3 (B) the part repaired or replaced has been made available for
4 examination upon the request of the customer.
5 (14) Engaging in the replacement or repair of the subject of a
6 consumer transaction if the consumer has not authorized the
7 replacement or repair, and if the supplier knows or should
8 reasonably know that it is not authorized.
9 (15) The act of misrepresenting the geographic location of the
10 supplier by listing an alternate business name or an assumed
11 business name (as described in IC 23-0.5-3-4) in a local telephone
12 directory if:
13 (A) the name misrepresents the supplier's geographic location;
14 (B) the listing fails to identify the locality and state of the
15 supplier's business;
16 (C) calls to the local telephone number are routinely forwarded
17 or otherwise transferred to a supplier's business location that
18 is outside the calling area covered by the local telephone
19 directory; and
20 (D) the supplier's business location is located in a county that
21 is not contiguous to a county in the calling area covered by the
22 local telephone directory.
23 (16) The act of listing an alternate business name or assumed
24 business name (as described in IC 23-0.5-3-4) in a directory
25 assistance data base if:
26 (A) the name misrepresents the supplier's geographic location;
27 (B) calls to the local telephone number are routinely forwarded
28 or otherwise transferred to a supplier's business location that
29 is outside the local calling area; and
30 (C) the supplier's business location is located in a county that
31 is not contiguous to a county in the local calling area.
32 (17) The violation by a supplier of IC 24-3-4 concerning
33 cigarettes for import or export.
34 (18) The act of a supplier in knowingly selling or reselling a
35 product to a consumer if the product has been recalled, whether
36 by the order of a court or a regulatory body, or voluntarily by the
37 manufacturer, distributor, or retailer, unless the product has been
38 repaired or modified to correct the defect that was the subject of
39 the recall.
40 (19) The violation by a supplier of 47 U.S.C. 227, including any
41 rules or regulations issued under 47 U.S.C. 227.
42 (20) The violation by a supplier of the federal Fair Debt
HB 1181—LS 6917/DI 119 6
1 Collection Practices Act (15 U.S.C. 1692 et seq.), including any
2 rules or regulations issued under the federal Fair Debt Collection
3 Practices Act (15 U.S.C. 1692 et seq.).
4 (21) A violation of IC 24-5-7 (concerning health spa services), as
5 set forth in IC 24-5-7-17.
6 (22) A violation of IC 24-5-8 (concerning business opportunity
7 transactions), as set forth in IC 24-5-8-20.
8 (23) A violation of IC 24-5-10 (concerning home consumer
9 transactions), as set forth in IC 24-5-10-18.
10 (24) A violation of IC 24-5-11 (concerning real property
11 improvement contracts), as set forth in IC 24-5-11-14.
12 (25) A violation of IC 24-5-12 (concerning telephone
13 solicitations), as set forth in IC 24-5-12-23.
14 (26) A violation of IC 24-5-13.5 (concerning buyback motor
15 vehicles), as set forth in IC 24-5-13.5-14.
16 (27) A violation of IC 24-5-14 (concerning automatic
17 dialing-announcing devices), as set forth in IC 24-5-14-13.
18 (28) A violation of IC 24-5-15 (concerning credit services
19 organizations), as set forth in IC 24-5-15-11.
20 (29) A violation of IC 24-5-16 (concerning unlawful motor
21 vehicle subleasing), as set forth in IC 24-5-16-18.
22 (30) A violation of IC 24-5-17 (concerning environmental
23 marketing claims), as set forth in IC 24-5-17-14.
24 (31) A violation of IC 24-5-19 (concerning deceptive commercial
25 solicitation), as set forth in IC 24-5-19-11.
26 (32) A violation of IC 24-5-21 (concerning prescription drug
27 discount cards), as set forth in IC 24-5-21-7.
28 (33) A violation of IC 24-5-23.5-7 (concerning real estate
29 appraisals), as set forth in IC 24-5-23.5-9.
30 (34) A violation of IC 24-5-26 (concerning identity theft), as set
31 forth in IC 24-5-26-3.
32 (35) A violation of IC 24-5.5 (concerning mortgage rescue fraud),
33 as set forth in IC 24-5.5-6-1.
34 (36) A violation of IC 24-8 (concerning promotional gifts and
35 contests), as set forth in IC 24-8-6-3.
36 (37) A violation of IC 21-18.5-6 (concerning representations
37 made by a postsecondary credit bearing proprietary educational
38 institution), as set forth in IC 21-18.5-6-22.5.
39 (38) A violation of IC 24-5-15.5 (concerning collection actions of
40 a plaintiff debt buyer), as set forth in IC 24-5-15.5-6.
41 (39) A violation of IC 24-14 (concerning towing services), as set
42 forth in IC 24-14-10-1.
HB 1181—LS 6917/DI 119 7
1 (40) A violation of IC 24-5-14.5 (concerning misleading or
2 inaccurate caller identification information), as set forth in
3 IC 24-5-14.5-12.
4 (41) A violation of IC 24-5-27 (concerning intrastate inmate
5 calling services), as set forth in IC 24-5-27-27.
6 (c) Any representations on or within a product or its packaging or
7 in advertising or promotional materials which would constitute a
8 deceptive act shall be the deceptive act both of the supplier who places
9 such representation thereon or therein, or who authored such materials,
10 and such other suppliers who shall state orally or in writing that such
11 representation is true if such other supplier shall know or have reason
12 to know that such representation was false.
13 (d) If a supplier shows by a preponderance of the evidence that an
14 act resulted from a bona fide error notwithstanding the maintenance of
15 procedures reasonably adopted to avoid the error, such act shall not be
16 deceptive within the meaning of this chapter.
17 (e) It shall be a defense to any action brought under this chapter that
18 the representation constituting an alleged deceptive act was one made
19 in good faith by the supplier without knowledge of its falsity and in
20 reliance upon the oral or written representations of the manufacturer,
21 the person from whom the supplier acquired the product, any testing
22 organization, or any other person provided that the source thereof is
23 disclosed to the consumer.
24 (f) For purposes of subsection (b)(12), a supplier that provides
25 estimates before performing repair or replacement work for a customer
26 shall give the customer a written estimate itemizing as closely as
27 possible the price for labor and parts necessary for the specific job
28 before commencing the work.
29 (g) For purposes of subsection (b)(15) and (b)(16), a telephone
30 company or other provider of a telephone directory or directory
31 assistance service or its officer or agent is immune from liability for
32 publishing the listing of an alternate business name or assumed
33 business name of a supplier in its directory or directory assistance data
34 base unless the telephone company or other provider of a telephone
35 directory or directory assistance service is the same person as the
36 supplier who has committed the deceptive act.
37 (h) For purposes of subsection (b)(18), it is an affirmative defense
38 to any action brought under this chapter that the product has been
39 altered by a person other than the defendant to render the product
40 completely incapable of serving its original purpose.
41 SECTION 8. IC 24-5-27 IS ADDED TO THE INDIANA CODE AS
42 A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
HB 1181—LS 6917/DI 119 8
1 1, 2022]:
2 Chapter 27. Intrastate Inmate Calling Services
3 Sec. 1. (a) Except as provided in subsections (b) and (c), sections
4 19 through 25 of this chapter apply to the following:
5 (1) An inmate calling services call that is initiated after June
6 30, 2022.
7 (2) A contract described in section 26 of this chapter that is
8 entered into or renewed after June 30, 2022, for the provision
9 of inmate calling services at a correctional facility.
10 (b) Sections 19 through 25 of this chapter do not apply to an
11 inmate calling services call that is:
12 (1) initiated after June 30, 2022; and
13 (2) made in connection with a contract described in section 26
14 of this chapter that is:
15 (A) entered into or renewed before July 1, 2022; and
16 (B) in effect at the time the inmate calling services call is
17 initiated.
18 (c) Sections 19 through 25 of this chapter do not apply with
19 respect to a contract described in section 26 of this chapter that is:
20 (1) entered into or renewed before July 1, 2022; and
21 (2) for the provision of inmate calling services at a
22 correctional facility.
23 The exemption from sections 19 through 25 of this chapter
24 provided by this subsection terminates when the contract or the
25 renewal of the contract either expires by its terms or is terminated
26 by any party to the contract.
27 Sec. 2. As used in this chapter, "ancillary service charge" means
28 any charge that:
29 (1) consumers may be assessed for, or in connection with, the
30 intrastate use of inmate calling services (including any
31 intrastate inmate calling services call that includes
32 jurisdictionally mixed charges); and
33 (2) is not included in the per minute charges assessed for
34 individual calls.
35 Sec. 3. As used in this chapter, "authorized fee" means a
36 government authorized, but discretionary, fee:
37 (1) that a provider must remit to a federal, state, or local
38 government; and
39 (2) with respect to which a provider is permitted, but not
40 required, to pass through to consumers;
41 for, or in connection with, intrastate inmate calling services.
42 Sec. 4. As used in this chapter, "collect calling" means an
HB 1181—LS 6917/DI 119 9
1 arrangement in which the called party takes affirmative action
2 clearly indicating that the party will pay the charges associated
3 with a call originating from an inmate telephone.
4 Sec. 5. (a) As used in this chapter, "consumer" means an
5 individual who pays, or is responsible for paying, a provider for
6 intrastate inmate calling services.
7 (b) The term includes an inmate who pays, or is responsible for
8 paying, a provider for intrastate inmate calling services.
9 Sec. 6. As used in this chapter, "correctional facility" means:
10 (1) a state penal institution;
11 (2) a county jail; or
12 (3) a secure juvenile facility;
13 in Indiana.
14 Sec. 7. As used in this chapter, "debit calling" means a
15 presubscription or comparable service that allows an inmate, or
16 someone acting on an inmate's behalf, to fund an account that:
17 (1) is set up through a provider; and
18 (2) can be used to pay for inmate calling services calls
19 originated by the inmate.
20 Sec. 8. As used in this chapter, "flat rate calling" means a
21 calling plan under which a provider charges a single fee for an
22 inmate calling services call, regardless of the duration of the call.
23 Sec. 9. As used in this chapter, "inmate" means an individual
24 detained at a correctional facility, regardless of the duration of the
25 detention.
26 Sec. 10. As used in this chapter, "inmate calling service" means
27 a service that allows inmates to make calls to individuals outside
28 the correctional facility where the inmate is being held, regardless
29 of the technology used to deliver the service.
30 Sec. 11. As used in this chapter, "inmate telephone" means a
31 telephone instrument, or other device capable of initiating calls, set
32 aside by authorities of a correctional facility for use by inmates.
33 Sec. 12. As used in this chapter, "intrastate call" means a call
34 that originates and terminates in Indiana.
35 Sec. 13. As used in this chapter, "jurisdictionally mixed charge"
36 means any charge that:
37 (1) consumers may be assessed for use of inmate calling
38 services;
39 (2) is not included in the per minute charges assessed for
40 individual calls; and
41 (3) is assessed for, or in connection with, the use of inmate
42 calling services to make calls that have:
HB 1181—LS 6917/DI 119 10
1 (A) interstate or international components; and
2 (B) intrastate components;
3 that are not able to be segregated at the time the charge is
4 incurred.
5 Sec. 14. As used in this chapter, "mandatory tax or fee" means
6 a tax or fee that a provider is required to:
7 (1) collect directly from consumers; and
8 (2) remit to federal, state, or local governments;
9 for, or in connection with, intrastate inmate calling services.
10 Sec. 15. As used in this chapter, "per call or per connection
11 charge" means a one (1) time fee charged to a consumer at call
12 initiation.
13 Sec. 16. As used in this chapter, "prepaid calling" means a
14 presubscription or comparable service in which:
15 (1) a consumer, other than an inmate, funds an account set up
16 through a provider; and
17 (2) funds from the account can then be used to pay for inmate
18 calling services, including calls that originate with an inmate.
19 Sec. 17. As used in this chapter, "prepaid collect calling" means
20 a calling arrangement that:
21 (1) allows an inmate to initiate an inmate calling services call
22 without having a preestablished billing arrangement; and
23 (2) provides a means, within that call, for the called party to
24 establish an arrangement with a provider for the party to be
25 billed directly by the provider for future calls from the same
26 inmate.
27 Sec. 18. As used in this chapter, "provider of inmate calling
28 services", or "provider", means any communications service
29 provider that provides inmate calling services, regardless of the
30 technology used to provide the services.
31 Sec. 19. (a) As used in this section, "site commission" means any
32 form of monetary payment, in kind payment, gift, exchange of
33 services or goods, fee, technology allowance, or product that a
34 provider of inmate calling services pays, gives, donates, or
35 otherwise provides to:
36 (1) an entity that operates a correctional facility;
37 (2) an entity with which the provider of inmate calling
38 services enters into an agreement to provide inmate calling
39 services;
40 (3) a governmental agency that oversees a correctional
41 facility;
42 (4) the city, county, or state in which a correctional facility is
HB 1181—LS 6917/DI 119 11
1 located; or
2 (5) an agent of a correctional facility.
3 (b) Subject to subsections (c) and (d), the rate for intrastate:
4 (1) collect calling;
5 (2) debit calling;
6 (3) prepaid calling; or
7 (4) prepaid collect calling;
8 in connection with inmate calling services may not exceed the rate
9 cap for the comparable interstate service in connection with inmate
10 calling services, as set by the Federal Communications Commission
11 and in effect at the time the call is initiated, including any interim
12 rate cap that is set by the Federal Communications Commission
13 and in effect at the time the call is initiated.
14 (c) An intrastate rate cap under subsection (b) is subject to any
15 distinctions in the comparable interstate rate cap set by the Federal
16 Communications Commission that are based on:
17 (1) the type or size of the correctional facility from which the
18 inmate calling services call is placed, including:
19 (A) whether the correctional facility is a jail or a prison, as
20 those terms may be defined by the Federal
21 Communications Commission at the time the call is
22 initiated; and
23 (B) the average daily population of the correctional
24 facility, as that term may be defined by the Federal
25 Communications Commission at the time the call is
26 initiated; and
27 (2) whether any site commission is sought to be recovered
28 through the intrastate rate for a service, including any
29 distinctions in the facility-related rate component, as that
30 term may be defined by the Federal Communications
31 Commission at the time the call is initiated, that are based on
32 whether the site commission is legally mandated or
33 contractually prescribed.
34 (d) A provider that has been granted a waiver by the Federal
35 Communications Commission from the interstate rate caps for the
36 inmate calling services described in subsection (b) with respect to
37 a particular:
38 (1) correctional facility; or
39 (2) contract for the provision of inmate calling services;
40 is not subject to the intrastate rate caps under subsection (b) for
41 the comparable intrastate services provided to the same
42 correctional facility or under the same contract. The exemption
HB 1181—LS 6917/DI 119 12
1 from the intrastate rate caps provided under this subsection runs
2 concurrently with the term of the exemption from the
3 corresponding interstate rate caps, as determined by the Federal
4 Communications Commission.
5 Sec. 20. (a) The following definitions apply throughout this
6 section:
7 (1) "Automated payment fee" means:
8 (A) a credit card payment fee;
9 (B) a debit card payment fee; or
10 (C) a bill processing fee.
11 The term includes fees for payments made by interactive voice
12 response, the Internet, or kiosk.
13 (2) "Fee for single call and related services" means a billing
14 arrangement in which:
15 (A) an inmate's collect calls are billed through a third
16 party on a per call basis; and
17 (B) the called party:
18 (i) does not have an account with the provider of inmate
19 calling services; or
20 (ii) does not want to establish an account with the
21 provider of inmate calling services.
22 (3) "Live agent fee" means a fee associated with the optional
23 use of a live operator to complete inmate calling services
24 transactions.
25 (4) "Paper bill or statement fee" means a fee associated with
26 providing a customer of inmate calling services an optional
27 paper billing statement.
28 (5) "Third party financial transaction fee" means the exact
29 fee, with no markup, that a provider of inmate calling services
30 is charged by a third party to transfer money or process
31 financial transactions to facilitate a consumer's ability to
32 make account payments through the third party.
33 (b) A provider may not charge an ancillary service charge for,
34 or in connection with, an intrastate inmate calling services call,
35 other than those ancillary service charges permitted by the Federal
36 Communications Commission for, or in connection with, interstate
37 or international inmate calling services calls at the time the call is
38 initiated.
39 (c) Subject to subsection (d), a rate for an ancillary service
40 charge permitted under subsection (b) for, or in connection with,
41 an intrastate inmate calling services call shall not exceed the rate
42 for the comparable ancillary service charge permitted by the
HB 1181—LS 6917/DI 119 13
1 Federal Communications Commission for, or in connection with,
2 interstate or international inmate calling services calls at the time
3 the call is initiated. Subject to subsection (b), ancillary service
4 charges subject to the rate cap set forth in this subsection include
5 the following:
6 (1) Automated payment fees.
7 (2) Fees for single call and related services.
8 (3) Live agent fees.
9 (4) Paper bill or statement fees.
10 (5) Third party financial transaction fees.
11 (d) A provider that has been granted a waiver by the Federal
12 Communications Commission from the ancillary service charge
13 caps for interstate or international inmate calling services calls
14 with respect to a particular:
15 (1) correctional facility; or
16 (2) contract for the provision of inmate calling services;
17 is not subject to the intrastate caps under subsection (c) for the
18 comparable intrastate ancillary services provided to the same
19 correctional facility or under the same contract. The exemption
20 from the intrastate ancillary service charge caps provided under
21 this subsection runs concurrently with the term of the exemption
22 from the corresponding interstate or international ancillary service
23 charge caps, as determined by the Federal Communications
24 Commission.
25 Sec. 21. (a) Except as provided in subsection (b), a provider shall
26 not:
27 (1) prohibit or prevent completion of an intrastate collect
28 calling call made in connection with an inmate calling service;
29 or
30 (2) decline to establish or otherwise degrade intrastate collect
31 calling made in connection with inmate calling services;
32 solely for the reason that the provider lacks a billing relationship
33 with the called party's communications service provider.
34 (b) The prohibitions set forth in subsection (a) do not apply if a
35 provider offers debit calling, prepaid calling, or prepaid collect
36 calling for intrastate inmate calling services calls.
37 Sec. 22. (a) A provider may not charge any taxes or fees to users
38 of inmate calling services for, or in connection with, intrastate
39 calls, except for the following:
40 (1) Authorized fees.
41 (2) Mandatory taxes and fees.
42 (b) Any:
HB 1181—LS 6917/DI 119 14
1 (1) authorized fee; or
2 (2) mandatory tax or fee;
3 passed through to consumers for, or in connection with, intrastate
4 inmate calling services may not include a markup, unless the
5 markup is specifically authorized by a federal, state, or local
6 statute, rule, or regulation.
7 Sec. 23. A provider may not impose a per call or per connection
8 charge on a consumer for any intrastate inmate calling services
9 call.
10 Sec. 24. A provider may not offer flat rate calling for intrastate
11 inmate calling services.
12 Sec. 25. (a) A provider may not institute a minimum balance
13 requirement for a consumer to use:
14 (1) debit calling; or
15 (2) prepaid calling;
16 for intrastate inmate calling services calls.
17 (b) A provider may not prohibit a consumer from depositing at
18 least fifty dollars ($50) per transaction to fund a:
19 (1) debit calling; or
20 (2) prepaid calling;
21 account that can be used for intrastate inmate calling services calls.
22 Sec. 26. (a) After June 30, 2022, a provider shall not enter into
23 or renew a contract with:
24 (1) the department of correction; or
25 (2) any:
26 (A) county;
27 (B) city; or
28 (C) public or private agency or organization;
29 that operates a correctional facility in Indiana;
30 for the provision of inmate calling services at a correctional facility
31 unless the terms of the contract comply with this chapter.
32 (b) Any term, condition, or provision that:
33 (1) is included in a contract that is entered into or renewed
34 after June 30, 2022, for the provision of inmate calling
35 services at a correctional facility; and
36 (2) violates this chapter;
37 is void.
38 Sec. 27. A provider that violates this chapter:
39 (1) commits a deceptive act that is actionable by the attorney
40 general or by a consumer under IC 24-5-0.5-4; and
41 (2) is subject to the remedies and penalties under IC 24-5-0.5.
HB 1181—LS 6917/DI 119 15
COMMITTEE REPORT
Mr. Speaker: Your Committee on Courts and Criminal Code, to
which was referred House Bill 1181, has had the same under
consideration and begs leave to report the same back to the House with
the recommendation that said bill be amended as follows:
Page 1, between the enacting clause and line 1, begin a new
paragraph and insert:
"SECTION 1. IC 11-8-3-1 IS AMENDED TO READ AS
FOLLOWS [EFFECTIVE JULY 1, 2022]: Sec. 1. (a) The department
may contract with any city, county, state, or federal authority, or with
other public or private organizations, for:
(1) the custody, care, confinement, or treatment of committed
persons; or
(2) subject to subsection (e), the provision of other correctional
or related services to committed persons.
(b) Before transferring a committed person to the custody, care, or
control of an agency or organization under such a contract, the
department must approve the receiving facility or program as suitable
for the supervision and care of the person.
(c) The department may contract with individuals for the provision
of services to the department.
(d) To fund contracts under this section the department may use:
(1) its regular budgeted monies; and
(2) if applicable, monies deducted from the person's earnings
under IC 11-10-7-5 or IC 11-10-8-6.
(e) After June 30, 2022, the department may not enter into or
renew a contract with a provider of inmate calling services for the
provision of inmate calling services at a correctional facility unless
the terms of the contract comply with IC 24-5-27. Any term,
condition, or provision that:
(1) is included in a contract that is entered into or renewed
after June 30, 2022, for the provision of inmate calling
services at a correctional facility; and
(2) violates IC 24-5-27;
is void.
(f) After June 30, 2022, a county owning or operating a
correctional facility may not enter into or renew a contract with a
provider of inmate calling services for the provision of inmate
calling services at the correctional facility unless the terms of the
contract comply with IC 24-5-27. Any term, condition, or provision
that:
(1) is included in a contract that is entered into or renewed
HB 1181—LS 6917/DI 119 16
after June 30, 2022, for the provision of inmate calling
services at the correctional facility; and
(2) violates IC 24-5-27;
is void.".
Page 2, after line 12, begin a new paragraph and insert:
"SECTION 7. IC 24-5-0.5-3, AS AMENDED BY P.L.156-2020,
SECTION 87, IS AMENDED TO READ AS FOLLOWS [EFFECTIVE
JULY 1, 2022]: Sec. 3. (a) A supplier may not commit an unfair,
abusive, or deceptive act, omission, or practice in connection with a
consumer transaction. Such an act, omission, or practice by a supplier
is a violation of this chapter whether it occurs before, during, or after
the transaction. An act, omission, or practice prohibited by this section
includes both implicit and explicit misrepresentations.
(b) Without limiting the scope of subsection (a), the following acts,
and the following representations as to the subject matter of a
consumer transaction, made orally, in writing, or by electronic
communication, by a supplier, are deceptive acts:
(1) That such subject of a consumer transaction has sponsorship,
approval, performance, characteristics, accessories, uses, or
benefits it does not have which the supplier knows or should
reasonably know it does not have.
(2) That such subject of a consumer transaction is of a particular
standard, quality, grade, style, or model, if it is not and if the
supplier knows or should reasonably know that it is not.
(3) That such subject of a consumer transaction is new or unused,
if it is not and if the supplier knows or should reasonably know
that it is not.
(4) That such subject of a consumer transaction will be supplied
to the public in greater quantity than the supplier intends or
reasonably expects.
(5) That replacement or repair constituting the subject of a
consumer transaction is needed, if it is not and if the supplier
knows or should reasonably know that it is not.
(6) That a specific price advantage exists as to such subject of a
consumer transaction, if it does not and if the supplier knows or
should reasonably know that it does not.
(7) That the supplier has a sponsorship, approval, or affiliation in
such consumer transaction the supplier does not have, and which
the supplier knows or should reasonably know that the supplier
does not have.
(8) That such consumer transaction involves or does not involve
a warranty, a disclaimer of warranties, or other rights, remedies,
HB 1181—LS 6917/DI 119 17
or obligations, if the representation is false and if the supplier
knows or should reasonably know that the representation is false.
(9) That the consumer will receive a rebate, discount, or other
benefit as an inducement for entering into a sale or lease in return
for giving the supplier the names of prospective consumers or
otherwise helping the supplier to enter into other consumer
transactions, if earning the benefit, rebate, or discount is
contingent upon the occurrence of an event subsequent to the time
the consumer agrees to the purchase or lease.
(10) That the supplier is able to deliver or complete the subject of
the consumer transaction within a stated period of time, when the
supplier knows or should reasonably know the supplier could not.
If no time period has been stated by the supplier, there is a
presumption that the supplier has represented that the supplier
will deliver or complete the subject of the consumer transaction
within a reasonable time, according to the course of dealing or the
usage of the trade.
(11) That the consumer will be able to purchase the subject of the
consumer transaction as advertised by the supplier, if the supplier
does not intend to sell it.
(12) That the replacement or repair constituting the subject of a
consumer transaction can be made by the supplier for the estimate
the supplier gives a customer for the replacement or repair, if the
specified work is completed and:
(A) the cost exceeds the estimate by an amount equal to or
greater than ten percent (10%) of the estimate;
(B) the supplier did not obtain written permission from the
customer to authorize the supplier to complete the work even
if the cost would exceed the amounts specified in clause (A);
(C) the total cost for services and parts for a single transaction
is more than seven hundred fifty dollars ($750); and
(D) the supplier knew or reasonably should have known that
the cost would exceed the estimate in the amounts specified in
clause (A).
(13) That the replacement or repair constituting the subject of a
consumer transaction is needed, and that the supplier disposes of
the part repaired or replaced earlier than seventy-two (72) hours
after both:
(A) the customer has been notified that the work has been
completed; and
(B) the part repaired or replaced has been made available for
examination upon the request of the customer.
HB 1181—LS 6917/DI 119 18
(14) Engaging in the replacement or repair of the subject of a
consumer transaction if the consumer has not authorized the
replacement or repair, and if the supplier knows or should
reasonably know that it is not authorized.
(15) The act of misrepresenting the geographic location of the
supplier by listing an alternate business name or an assumed
business name (as described in IC 23-0.5-3-4) in a local telephone
directory if:
(A) the name misrepresents the supplier's geographic location;
(B) the listing fails to identify the locality and state of the
supplier's business;
(C) calls to the local telephone number are routinely forwarded
or otherwise transferred to a supplier's business location that
is outside the calling area covered by the local telephone
directory; and
(D) the supplier's business location is located in a county that
is not contiguous to a county in the calling area covered by the
local telephone directory.
(16) The act of listing an alternate business name or assumed
business name (as described in IC 23-0.5-3-4) in a directory
assistance data base if:
(A) the name misrepresents the supplier's geographic location;
(B) calls to the local telephone number are routinely forwarded
or otherwise transferred to a supplier's business location that
is outside the local calling area; and
(C) the supplier's business location is located in a county that
is not contiguous to a county in the local calling area.
(17) The violation by a supplier of IC 24-3-4 concerning
cigarettes for import or export.
(18) The act of a supplier in knowingly selling or reselling a
product to a consumer if the product has been recalled, whether
by the order of a court or a regulatory body, or voluntarily by the
manufacturer, distributor, or retailer, unless the product has been
repaired or modified to correct the defect that was the subject of
the recall.
(19) The violation by a supplier of 47 U.S.C. 227, including any
rules or regulations issued under 47 U.S.C. 227.
(20) The violation by a supplier of the federal Fair Debt
Collection Practices Act (15 U.S.C. 1692 et seq.), including any
rules or regulations issued under the federal Fair Debt Collection
Practices Act (15 U.S.C. 1692 et seq.).
(21) A violation of IC 24-5-7 (concerning health spa services), as
HB 1181—LS 6917/DI 119 19
set forth in IC 24-5-7-17.
(22) A violation of IC 24-5-8 (concerning business opportunity
transactions), as set forth in IC 24-5-8-20.
(23) A violation of IC 24-5-10 (concerning home consumer
transactions), as set forth in IC 24-5-10-18.
(24) A violation of IC 24-5-11 (concerning real property
improvement contracts), as set forth in IC 24-5-11-14.
(25) A violation of IC 24-5-12 (concerning telephone
solicitations), as set forth in IC 24-5-12-23.
(26) A violation of IC 24-5-13.5 (concerning buyback motor
vehicles), as set forth in IC 24-5-13.5-14.
(27) A violation of IC 24-5-14 (concerning automatic
dialing-announcing devices), as set forth in IC 24-5-14-13.
(28) A violation of IC 24-5-15 (concerning credit services
organizations), as set forth in IC 24-5-15-11.
(29) A violation of IC 24-5-16 (concerning unlawful motor
vehicle subleasing), as set forth in IC 24-5-16-18.
(30) A violation of IC 24-5-17 (concerning environmental
marketing claims), as set forth in IC 24-5-17-14.
(31) A violation of IC 24-5-19 (concerning deceptive commercial
solicitation), as set forth in IC 24-5-19-11.
(32) A violation of IC 24-5-21 (concerning prescription drug
discount cards), as set forth in IC 24-5-21-7.
(33) A violation of IC 24-5-23.5-7 (concerning real estate
appraisals), as set forth in IC 24-5-23.5-9.
(34) A violation of IC 24-5-26 (concerning identity theft), as set
forth in IC 24-5-26-3.
(35) A violation of IC 24-5.5 (concerning mortgage rescue fraud),
as set forth in IC 24-5.5-6-1.
(36) A violation of IC 24-8 (concerning promotional gifts and
contests), as set forth in IC 24-8-6-3.
(37) A violation of IC 21-18.5-6 (concerning representations
made by a postsecondary credit bearing proprietary educational
institution), as set forth in IC 21-18.5-6-22.5.
(38) A violation of IC 24-5-15.5 (concerning collection actions of
a plaintiff debt buyer), as set forth in IC 24-5-15.5-6.
(39) A violation of IC 24-14 (concerning towing services), as set
forth in IC 24-14-10-1.
(40) A violation of IC 24-5-14.5 (concerning misleading or
inaccurate caller identification information), as set forth in
IC 24-5-14.5-12.
(41) A violation of IC 24-5-27 (concerning intrastate inmate
HB 1181—LS 6917/DI 119 20
calling services), as set forth in IC 24-5-27-27.
(c) Any representations on or within a product or its packaging or
in advertising or promotional materials which would constitute a
deceptive act shall be the deceptive act both of the supplier who places
such representation thereon or therein, or who authored such materials,
and such other suppliers who shall state orally or in writing that such
representation is true if such other supplier shall know or have reason
to know that such representation was false.
(d) If a supplier shows by a preponderance of the evidence that an
act resulted from a bona fide error notwithstanding the maintenance of
procedures reasonably adopted to avoid the error, such act shall not be
deceptive within the meaning of this chapter.
(e) It shall be a defense to any action brought under this chapter that
the representation constituting an alleged deceptive act was one made
in good faith by the supplier without knowledge of its falsity and in
reliance upon the oral or written representations of the manufacturer,
the person from whom the supplier acquired the product, any testing
organization, or any other person provided that the source thereof is
disclosed to the consumer.
(f) For purposes of subsection (b)(12), a supplier that provides
estimates before performing repair or replacement work for a customer
shall give the customer a written estimate itemizing as closely as
possible the price for labor and parts necessary for the specific job
before commencing the work.
(g) For purposes of subsection (b)(15) and (b)(16), a telephone
company or other provider of a telephone directory or directory
assistance service or its officer or agent is immune from liability for
publishing the listing of an alternate business name or assumed
business name of a supplier in its directory or directory assistance data
base unless the telephone company or other provider of a telephone
directory or directory assistance service is the same person as the
supplier who has committed the deceptive act.
(h) For purposes of subsection (b)(18), it is an affirmative defense
to any action brought under this chapter that the product has been
altered by a person other than the defendant to render the product
completely incapable of serving its original purpose.
SECTION 8. IC 24-5-27 IS ADDED TO THE INDIANA CODE AS
A NEW CHAPTER TO READ AS FOLLOWS [EFFECTIVE JULY
1, 2022]:
Chapter 27. Intrastate Inmate Calling Services
Sec. 1. (a) Except as provided in subsections (b) and (c), sections
19 through 25 of this chapter apply to the following:
HB 1181—LS 6917/DI 119 21
(1) An inmate calling services call that is initiated after June
30, 2022.
(2) A contract described in section 26 of this chapter that is
entered into or renewed after June 30, 2022, for the provision
of inmate calling services at a correctional facility.
(b) Sections 19 through 25 of this chapter do not apply to an
inmate calling services call that is:
(1) initiated after June 30, 2022; and
(2) made in connection with a contract described in section 26
of this chapter that is:
(A) entered into or renewed before July 1, 2022; and
(B) in effect at the time the inmate calling services call is
initiated.
(c) Sections 19 through 25 of this chapter do not apply with
respect to a contract described in section 26 of this chapter that is:
(1) entered into or renewed before July 1, 2022; and
(2) for the provision of inmate calling services at a
correctional facility.
The exemption from sections 19 through 25 of this chapter
provided by this subsection terminates when the contract or the
renewal of the contract either expires by its terms or is terminated
by any party to the contract.
Sec. 2. As used in this chapter, "ancillary service charge" means
any charge that:
(1) consumers may be assessed for, or in connection with, the
intrastate use of inmate calling services (including any
intrastate inmate calling services call that includes
jurisdictionally mixed charges); and
(2) is not included in the per minute charges assessed for
individual calls.
Sec. 3. As used in this chapter, "authorized fee" means a
government authorized, but discretionary, fee:
(1) that a provider must remit to a federal, state, or local
government; and
(2) with respect to which a provider is permitted, but not
required, to pass through to consumers;
for, or in connection with, intrastate inmate calling services.
Sec. 4. As used in this chapter, "collect calling" means an
arrangement in which the called party takes affirmative action
clearly indicating that the party will pay the charges associated
with a call originating from an inmate telephone.
Sec. 5. (a) As used in this chapter, "consumer" means an
HB 1181—LS 6917/DI 119 22
individual who pays, or is responsible for paying, a provider for
intrastate inmate calling services.
(b) The term includes an inmate who pays, or is responsible for
paying, a provider for intrastate inmate calling services.
Sec. 6. As used in this chapter, "correctional facility" means:
(1) a state penal institution;
(2) a county jail; or
(3) a secure juvenile facility;
in Indiana.
Sec. 7. As used in this chapter, "debit calling" means a
presubscription or comparable service that allows an inmate, or
someone acting on an inmate's behalf, to fund an account that:
(1) is set up through a provider; and
(2) can be used to pay for inmate calling services calls
originated by the inmate.
Sec. 8. As used in this chapter, "flat rate calling" means a
calling plan under which a provider charges a single fee for an
inmate calling services call, regardless of the duration of the call.
Sec. 9. As used in this chapter, "inmate" means an individual
detained at a correctional facility, regardless of the duration of the
detention.
Sec. 10. As used in this chapter, "inmate calling service" means
a service that allows inmates to make calls to individuals outside
the correctional facility where the inmate is being held, regardless
of the technology used to deliver the service.
Sec. 11. As used in this chapter, "inmate telephone" means a
telephone instrument, or other device capable of initiating calls, set
aside by authorities of a correctional facility for use by inmates.
Sec. 12. As used in this chapter, "intrastate call" means a call
that originates and terminates in Indiana.
Sec. 13. As used in this chapter, "jurisdictionally mixed charge"
means any charge that:
(1) consumers may be assessed for use of inmate calling
services;
(2) is not included in the per minute charges assessed for
individual calls; and
(3) is assessed for, or in connection with, the use of inmate
calling services to make calls that have:
(A) interstate or international components; and
(B) intrastate components;
that are not able to be segregated at the time the charge is
incurred.
HB 1181—LS 6917/DI 119 23
Sec. 14. As used in this chapter, "mandatory tax or fee" means
a tax or fee that a provider is required to:
(1) collect directly from consumers; and
(2) remit to federal, state, or local governments;
for, or in connection with, intrastate inmate calling services.
Sec. 15. As used in this chapter, "per call or per connection
charge" means a one (1) time fee charged to a consumer at call
initiation.
Sec. 16. As used in this chapter, "prepaid calling" means a
presubscription or comparable service in which:
(1) a consumer, other than an inmate, funds an account set up
through a provider; and
(2) funds from the account can then be used to pay for inmate
calling services, including calls that originate with an inmate.
Sec. 17. As used in this chapter, "prepaid collect calling" means
a calling arrangement that:
(1) allows an inmate to initiate an inmate calling services call
without having a preestablished billing arrangement; and
(2) provides a means, within that call, for the called party to
establish an arrangement with a provider for the party to be
billed directly by the provider for future calls from the same
inmate.
Sec. 18. As used in this chapter, "provider of inmate calling
services", or "provider", means any communications service
provider that provides inmate calling services, regardless of the
technology used to provide the services.
Sec. 19. (a) As used in this section, "site commission" 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 pays, gives, donates, or
otherwise provides to:
(1) an entity that operates a correctional facility;
(2) an entity with which the provider of inmate calling
services enters into an agreement to provide inmate calling
services;
(3) a governmental agency that oversees a correctional
facility;
(4) the city, county, or state in which a correctional facility is
located; or
(5) an agent of a correctional facility.
(b) Subject to subsections (c) and (d), the rate for intrastate:
(1) collect calling;
HB 1181—LS 6917/DI 119 24
(2) debit calling;
(3) prepaid calling; or
(4) prepaid collect calling;
in connection with inmate calling services may not exceed the rate
cap for the comparable interstate service in connection with inmate
calling services, as set by the Federal Communications Commission
and in effect at the time the call is initiated, including any interim
rate cap that is set by the Federal Communications Commission
and in effect at the time the call is initiated.
(c) An intrastate rate cap under subsection (b) is subject to any
distinctions in the comparable interstate rate cap set by the Federal
Communications Commission that are based on:
(1) the type or size of the correctional facility from which the
inmate calling services call is placed, including:
(A) whether the correctional facility is a jail or a prison, as
those terms may be defined by the Federal
Communications Commission at the time the call is
initiated; and
(B) the average daily population of the correctional
facility, as that term may be defined by the Federal
Communications Commission at the time the call is
initiated; and
(2) whether any site commission is sought to be recovered
through the intrastate rate for a service, including any
distinctions in the facility-related rate component, as that
term may be defined by the Federal Communications
Commission at the time the call is initiated, that are based on
whether the site commission is legally mandated or
contractually prescribed.
(d) A provider that has been granted a waiver by the Federal
Communications Commission from the interstate rate caps for the
inmate calling services described in subsection (b) with respect to
a particular:
(1) correctional facility; or
(2) contract for the provision of inmate calling services;
is not subject to the intrastate rate caps under subsection (b) for
the comparable intrastate services provided to the same
correctional facility or under the same contract. The exemption
from the intrastate rate caps provided under this subsection runs
concurrently with the term of the exemption from the
corresponding interstate rate caps, as determined by the Federal
Communications Commission.
HB 1181—LS 6917/DI 119 25
Sec. 20. (a) The following definitions apply throughout this
section:
(1) "Automated payment fee" means:
(A) a credit card payment fee;
(B) a debit card payment fee; or
(C) a bill processing fee.
The term includes fees for payments made by interactive voice
response, the Internet, or kiosk.
(2) "Fee for single call and related services" means a billing
arrangement in which:
(A) an inmate's collect calls are billed through a third
party on a per call basis; and
(B) the called party:
(i) does not have an account with the provider of inmate
calling services; or
(ii) does not want to establish an account with the
provider of inmate calling services.
(3) "Live agent fee" means a fee associated with the optional
use of a live operator to complete inmate calling services
transactions.
(4) "Paper bill or statement fee" means a fee associated with
providing a customer of inmate calling services an optional
paper billing statement.
(5) "Third party financial transaction fee" means the exact
fee, with no markup, that a provider of inmate calling services
is charged by a third party to transfer money or process
financial transactions to facilitate a consumer's ability to
make account payments through the third party.
(b) A provider may not charge an ancillary service charge for,
or in connection with, an intrastate inmate calling services call,
other than those ancillary service charges permitted by the Federal
Communications Commission for, or in connection with, interstate
or international inmate calling services calls at the time the call is
initiated.
(c) Subject to subsection (d), a rate for an ancillary service
charge permitted under subsection (b) for, or in connection with,
an intrastate inmate calling services call shall not exceed the rate
for the comparable ancillary service charge permitted by the
Federal Communications Commission for, or in connection with,
interstate or international inmate calling services calls at the time
the call is initiated. Subject to subsection (b), ancillary service
charges subject to the rate cap set forth in this subsection include
HB 1181—LS 6917/DI 119 26
the following:
(1) Automated payment fees.
(2) Fees for single call and related services.
(3) Live agent fees.
(4) Paper bill or statement fees.
(5) Third party financial transaction fees.
(d) A provider that has been granted a waiver by the Federal
Communications Commission from the ancillary service charge
caps for interstate or international inmate calling services calls
with respect to a particular:
(1) correctional facility; or
(2) contract for the provision of inmate calling services;
is not subject to the intrastate caps under subsection (c) for the
comparable intrastate ancillary services provided to the same
correctional facility or under the same contract. The exemption
from the intrastate ancillary service charge caps provided under
this subsection runs concurrently with the term of the exemption
from the corresponding interstate or international ancillary service
charge caps, as determined by the Federal Communications
Commission.
Sec. 21. (a) Except as provided in subsection (b), a provider shall
not:
(1) prohibit or prevent completion of an intrastate collect
calling call made in connection with an inmate calling service;
or
(2) decline to establish or otherwise degrade intrastate collect
calling made in connection with inmate calling services;
solely for the reason that the provider lacks a billing relationship
with the called party's communications service provider.
(b) The prohibitions set forth in subsection (a) do not apply if a
provider offers debit calling, prepaid calling, or prepaid collect
calling for intrastate inmate calling services calls.
Sec. 22. (a) A provider may not charge any taxes or fees to users
of inmate calling services for, or in connection with, intrastate
calls, except for the following:
(1) Authorized fees.
(2) Mandatory taxes and fees.
(b) Any:
(1) authorized fee; or
(2) mandatory tax or fee;
passed through to consumers for, or in connection with, intrastate
inmate calling services may not include a markup, unless the
HB 1181—LS 6917/DI 119 27
markup is specifically authorized by a federal, state, or local
statute, rule, or regulation.
Sec. 23. A provider may not impose a per call or per connection
charge on a consumer for any intrastate inmate calling services
call.
Sec. 24. A provider may not offer flat rate calling for intrastate
inmate calling services.
Sec. 25. (a) A provider may not institute a minimum balance
requirement for a consumer to use:
(1) debit calling; or
(2) prepaid calling;
for intrastate inmate calling services calls.
(b) A provider may not prohibit a consumer from depositing at
least fifty dollars ($50) per transaction to fund a:
(1) debit calling; or
(2) prepaid calling;
account that can be used for intrastate inmate calling services calls.
Sec. 26. (a) After June 30, 2022, a provider shall not enter into
or renew a contract with:
(1) the department of correction; or
(2) any:
(A) county;
(B) city; or
(C) public or private agency or organization;
that operates a correctional facility in Indiana;
for the provision of inmate calling services at a correctional facility
unless the terms of the contract comply with this chapter.
(b) Any term, condition, or provision that:
(1) is included in a contract that is entered into or renewed
after June 30, 2022, for the provision of inmate calling
services at a correctional facility; and
(2) violates this chapter;
is void.
Sec. 27. A provider that violates this chapter:
(1) commits a deceptive act that is actionable by the attorney
general or by a consumer under IC 24-5-0.5-4; and
(2) is subject to the remedies and penalties under
IC 24-5-0.5.".
Renumber all SECTIONS consecutively.
and when so amended that said bill do pass.
HB 1181—LS 6917/DI 119 28
(Reference is to HB 1181 as introduced.)
SCHAIBLEY
Committee Vote: yeas 11, nays 0.
HB 1181—LS 6917/DI 119