NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

SOURCES OF INFORMATION

LFC Files

Public Regulation Commission

SUMMARY

Synopsis of Bill

Senate Joint Memorial 18 requests the Public Regulation Commission (PRC) and the Corrections Department to examine whether the rates charged for collect calls placed by New Mexico inmates are reasonable. The agencies would report the findings to an interim legislative committee before December 1, 2000.

Significant Issues

A December 6, 1999, New York Times article reports about two million inmates behind bars in the United States -- the vast majority in state prisons and county jails -- are subject to a system in which telephone companies like MCI, AT&T and others are paying states sizeable commissions for the privilege of charging artificially high rates for collect calls made by convicts to their families and friends.

Since FY93, CD has collected $5,112.8 from inmate telephone revenue. CD currently collects 48.25 percent of the gross billable revenue from the provider of telephone services at the state-run institutions and deposits the revenue in the probation and parole cash account.

FISCAL IMPLICATIONS

Senate Joint Memorial 18 does not contain an appropriation.

ADMINISTRATIVE IMPLICATIONS

Senate Joint Memorial 18 would have a minor impact on these agencies. The Office of the Attorney General, though not identified in this memorial, may be an agency that should also be involved in studying this issue.

MFV/prr