Inmate Commissary Account Deposit Procedures

SUMMARY: In this document, the Bureau of Prisons is proposing to amend

its regulations on how an inmate may receive funds from family,

friends, and other sources. Under current regulation, funds intended

for any inmate's use are included in correspondence sent to the inmate

or left with staff as part of visiting. Staff at the institution

arrange for the deposit of these funds into the inmate's account. Under

the proposed regulations, funds from family, friends, or other sources

will no longer be sent to the inmate but will instead be sent directly

to a centralized inmate commissary account in the form of a money order

for receipt and posting. Any funds sent by family or friends to the

inmate's location will not be accepted and will be rejected and

returned to the sender provided there is an adequate return address.

This amendment is intended to provide for the more efficient processing

of inmate funds.

DATES: Comments due by June 22, 1999.

ADDRESSES: Rules Unit, Office of General Counsel, Bureau of Prisons,

HOLC Room 754, 320 First Street, NW., Washington, DC 20534.

FOR FURTHER INFORMATION CONTACT: Roy Nanovic, Office of General

Counsel, Bureau of Prisons, phone (202) 514-6655.

SUPPLEMENTARY INFORMATION: The Bureau of Prisons is proposing to add

new regulations (28 CFR part 506) pertaining to inmate deposits and to

make conforming amendments to its regulation on inmate correspondence

(28 CFR 540.23). The current provisions in Sec. 540.23 were published

in the Federal Register on October 1, 1985 (50 FR 40109).

Current provisions on general correspondence allow an inmate, upon

completing the appropriate form, to receive funds through the mail from

family or friends or, upon approval of the Warden, from other persons

for crediting to the inmate's trust fund account. Current provisions on

visiting provide that the Warden may allow a visitor to leave money

with a designated staff member for deposit in the inmate's commissary

account. Institution staff are responsible for processing these funds.

The Bureau is proposing that all inmate funds from family and friends

be sent directly to a centralized inmate commissary account. The

deposit must be in the form of a money order and the envelope must not

contain any enclosures intended for delivery to the inmate as any

enclosure is subject to disposal. Personal checks are not acceptable,

but will be returned provided the check has adequate return address

information. Funds received from other sources such as tax refunds,

dividends from stocks, or state benefits will be forwarded for deposit

to the centralized inmate commissary account.

The Bureau currently manages its inmate accounting functions in a

completely de-centralized fashion. Each institution operates separately

and distinctly from one another, although each is performing virtually

identical functions. For example, posting mail room collections to

inmate accounts, making daily trips to the bank to deposit collections,

establishing inmate accounts each time an inmate arrives at their

current location, and transferring funds between institutions. The

Bureau believes that having a centralized inmate commissary account

will benefit the inmate by allowing them immediate access to their

funds. Also, the centralized inmate commissary account will eliminate

redundant work efforts, allow institutions complete access to detailed

inmate account history, remove personal liability from institution

staff related to handling of inmate funds, and enhance Bureau security

by allowing centralized reporting and comparisons of sources of

incoming funds and destination of outgoing funds across all

institutions. The tremendous growth of the number of Bureau facilities

coupled with new computer networking technology have made the current

method of managing inmate funds outdated, inefficient, and costly.

The Bureau will test deposit procedures under a centralized inmate

commissary account at a limited number of institutions. The inmates at

the institutions selected for the test project will be notified

individually of the procedures to follow and will be provided

assistance in notifying family and friends of these same procedures.

Information gathered from the test project will be used in conjunction

with comments received from the public in evaluating any final rule.

Interested persons may participate in this proposed rulemaking by

submitting data, views, or arguments in writing to the Rules Unit,

Office of General Counsel, Bureau of Prisons, 320 First Street, NW.,

HOLC Room 754, Washington, DC 20534. Comments received during the

comment period will be considered before final action is taken.

Comments received after the expiration of the comment period will be

considered to the extent practicable. All comments received remain on

file for public inspection at the above address. The proposed rule may

be changed in light of the comments received. No oral hearings are

contemplated.

Executive Order 12866

This rule falls within a category of actions that the Office of

Management and Budget (OMB) has determined not to constitute

``significant regulatory actions'' under section 3(f) of Executive

Order 12866 and, accordingly, it was not reviewed by OMB.

Executive Order 12612

This regulation will not have substantial direct effects on the

States, on the relationship between the national government and the

States, or on distribution of power and responsibilities among the

various levels of government. Therefore, in accordance with Executive

Order 12612, it is determined that this rule does not have sufficient

federalism implications to warrant the preparation of a Federalism

Assessment.

Regulatory Flexibility Act

The Director of the Bureau of Prisons, in accordance with the

Regulatory Flexibility Act (5 U.S.C. 605(b)), has reviewed this

regulation and by approving it certifies that this regulation will not

have a significant economic impact upon a substantial number of small

entities for the following reasons: This rule pertains to the

correctional management of offenders committed to the custody of the

Attorney General or the Director of the Bureau of Prisons, and its

economic impact is limited to the Bureau's appropriated funds.

Unfunded Mandates Reform Act of 1995

This rule will not result in the expenditure by State, local and

tribal governments, in the aggregate, or by the private sector, of

$100,000,000 or more in any one year, and it will not significantly or

uniquely affect small governments. Therefore, no actions were deemed

necessary under the provisions of the Unfunded Mandates Reform Act of

1995.

[[Page 20127]]

Small Business Regulatory Enforcement Fairness Act of 1996

This rule is not a major rule as defined by Sec. 804 of the Small

Business Regulatory Enforcement Fairness Act of 1996. This rule will

not result in an annual effect on the economy of $100,000,000 or more;

a major increase in costs or prices; or significant adverse effects on

competition, employment, investment, productivity, innovation, or on

the ability of United States-based companies to compete with foreign-

based companies in domestic and export markets.

Plain Language Instructions

We try to write clearly. If you can suggest how to improve the

clarity of these regulations, call or write Roy Nanovic, Office of

General Counsel, Bureau of Prisons, HOLC Room 754, 320 First Street,

NW., Washington, DC 20534, 202-514-6655.

List of Subjects in 28 CFR Parts 506 and 540

Prisoners.

Kathleen Hawk Sawyer,

Director, Bureau of Prisons.

Accordingly, pursuant to the rulemaking authority vested in the

Attorney General in 5 U.S.C. 552(a) and delegated to the Director,

Bureau of Prisons in 28 CFR 0.96(o), a new part 506 is proposed to be

added to 28 CFR, chapter V, subchapter A, and part 540 in 28 CFR,

chapter V, subchapter C is proposed to be amended as set forth below.

SUBCHAPTER A--GENERAL MANAGEMENT AND ADMINISTRATION

1. Part 506 is added to read as follows:

PART 506--INMATE COMMISSARY ACCOUNT

Sec.

506.1 Background.

506.2 Deposit procedures.

Authority: 5 U.S.C. 301; 18 U.S.C. 3621, 3622, 3624, 4001, 4042,

4081, 4082 (Repealed in part as to offenses committed on or after

November 1, 1987), 5006-5024 (Repealed October 12, 1984 as to

offenses committed after that date), 5039; 28 U.S.C. 509, 510; 31

U.S.C. 1321; 28 CFR 0.95-0.99.

Sec. 506.1 Background.

The Bureau operates individual inmate commissary accounts to

maintain inmates' monies while they are incarcerated. Deposits to the

account may be made by family or friends, and for funds received from

other sources.

Sec. 506.2 Deposit procedures.

(a) Funds deposited by family and friends. Deposits by family and

friends must be mailed to the centralized inmate commissary account at

the address provided by the Bureau and must be in the form of a money

order.

(1) The deposit envelope must not contain any enclosures intended

for delivery to the inmate. Any enclosure is subject to disposal.

(2) The deposit must be in the form of a money order made out to

the inmate's full name and complete register number. Checks are to be

returned to the sender provided the check contains an adequate return

address.

(b) Funds received from other sources. Funds received from other

sources in correspondence addressed to the inmate (for example, tax

refunds, royalties from books, dividends from stocks, state benefits)

are to be forwarded for deposit to the centralized inmate commissary

account.

SUBCHAPTER C--INSTITUTIONAL MANAGEMENT

PART 540--CONTACT WITH PERSONS IN THE COMMUNITY

1. The authority citation for 28 CFR part 540 continues to read as

follows:

Authority: 5 U.S.C. 301, 551, 552A, 18 U.S.C. 1791, 3621, 3622,

3624, 4001, 4042, 4081, 4082 (Repealed in part as to offenses

committed on or after November 1, 1987), 5006-5024 (Repealed October

12, 1984, as to offenses committed after that date), 5039; 28 U.S.C.

509; 28 CFR 0.95-0.99.

2. Section 540.23, is revised to read as follows:

Sec. 540.23 Inmate funds received through the mails.

Except as provided for in part 506 of this chapter, funds enclosed

in inmate correspondence are to be rejected. Deposits intended for the

inmate's commissary account must be mailed directly to the centralized

commissary account (see 28 CFR part 506).

3. In Sec. 540.51 paragraph (g)(3) is revised to read as follows:

Sec. 540.51 Procedures.

* * * * *

(g) * * *

(3) The visiting room officer may not accept articles or gifts of

any kind for an inmate, except packages which have had prior approval

by the Warden or a designated staff member.

* * * * *

[FR Doc. 99-10207 Filed 4-22-99; 8:45 am]

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