Disposition of Commissions From Pay Telephones at Federal Prisons

An opinion was requested on whether commissions received from telephone companies, based on their receipts from pay telephones provided for the exclusive use of inmates at institutions of the Bureau of Prisons, must continue to be deposited in the miscellaneous receipts account of the Treasury, or whether they may be used by the Bureau for alternative depositions. The pay telephones are designated for local calls only. The inmates pay for their own calls at the same rate as with any other pay telephone. The Bureau does not pay a service charge to the telephone companies for the installation or use of pay telephones. Commissions are paid to the Bureau based on receipts from pay telephone calls. Where monies are paid to a Government agency or department for the use of the United Sates, the deposition of such monies is governed by legislation which provides that such receipts shall be paid into Treasury as miscellaneous receipts, with an exception not relevant here. Therefore, the commissions received by the Bureau from the telephone companies based on inmate payments for pay telephone calls must continue to be deposited into the general fund of the Treasury as miscellaneous receipts.