[Federal Register Volume 80, Number 129 (Tuesday, July 7, 2015)]
[Proposed Rules]
[Pages 38658-38660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-16637]


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DEPARTMENT OF JUSTICE

Bureau of Prisons

28 CFR Part 506

[BOP Docket No. 1156-P]
RIN 1120-ABXX


Inmate Commissary Account Deposit Procedures

AGENCY: Bureau of Prisons, Justice.

ACTION: Proposed rule.

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SUMMARY: In this document, the Bureau of Prisons (Bureau) proposes to 
amend its regulations on inmate commissary account deposit procedures 
and requirements to provide clarification. Specifically, the amendments 
will clarify that, regardless of the form or method of the deposit (by 
mail or electronic deposit), the Bureau is authorized to obtain 
transaction information about the sender, and the sender is required to 
provide such information to the Bureau and its authorized service 
providers if the sender seeks to deposit funds in an inmate's 
commissary account.

DATES: Comments must be received by September 8, 2015.

ADDRESSES: Submit comments to Rules Unit, Office of General Counsel, 
Bureau of Prisons, 320 First Street NW., Washington, DC 20534.

FOR FURTHER INFORMATION CONTACT: Sarah Qureshi, Office of General 
Counsel, Bureau of Prisons, phone (202) 307-2105, email 
[email protected].

SUPPLEMENTARY INFORMATION:

Posting of Public Comments

    Please note that all comments received are considered part of the 
public record and made available for public inspection online at 
www.regulations.gov. Such information includes personal identifying 
information (such as your name, address, etc.) voluntarily submitted by 
the commenter.
    If you want to submit personal identifying information (such as 
your name, address, etc.) as part of your comment, but do not want it 
to be posted online, you must include the phrase ``PERSONAL IDENTIFYING 
INFORMATION'' in the first paragraph of your comment. You must also 
locate all the personal identifying information you do not want posted 
online in the first paragraph of your comment and identify what 
information you want redacted.
    If you want to submit confidential business information as part of 
your comment but do not want it to be posted online, you must include 
the phrase ``CONFIDENTIAL BUSINESS INFORMATION'' in the first paragraph 
of your comment. You must also prominently identify confidential 
business information to be redacted within the comment. If a comment 
contains so much confidential business information that it cannot be 
effectively redacted, all or part of that comment may not be posted on 
www.regulations.gov.
    Personal identifying information identified and located as set 
forth above will be placed in the agency's public docket file, but not 
posted online. Confidential business information identified and located 
as set forth above will not be placed in the public docket file. If you 
wish to inspect the agency's public docket file in person by 
appointment, please see the ``For Further Information Contact'' 
paragraph.
    The Proposed Rule: The Bureau proposes to amend and clarify its 
inmate commissary account regulations, published on July 2, 2004 (69 FR 
40315). The proposed revisions are explained below.

Section 506.1 Purpose

    In this regulation, we reiterate the purpose of the inmate 
commissary account deposit program, as stated in the current 
regulation. We also state that the Bureau operates and maintains 
individual inmate commissary accounts in a manner that preserves the 
safety, security, and good order of Bureau institutions, and protects 
the public.

Section 506.2 Methods of depositing funds into an inmate commissary 
account

    In this regulation, the Bureau clarifies that funds from family, 
friends, or other sources, may be deposited into an inmate commissary 
account by mail or electronic deposit. Subparagraph (a) simply 
paraphrases language in current Sec.  506.2(a).
    Subparagraph (b) allows for electronic deposits, which may be sent 
from persons in the community through service providers (for example, a 
financial institution as defined in 31 U.S.C. 5312(a)(2), bank, money 
service business, or money service provider or processor), and 
forwarded to the individual inmate's commissary account, as authorized 
and directed by the Bureau.

Section 506.3 Consent to collection and use of sender's transactional 
and personal identification data

    This regulation will clarify that persons sending or depositing, or 
attempting to send or deposit, funds to an inmate's commissary account 
under this subpart are required to provide all related transactional 
data, including the sender's personal identification information, to 
(1) the Bureau; and (2) the service provider(s) (for example, a 
financial institution, bank, money service business, or money service 
provider or processor) in accordance with the provisions of its 
agreement for providing service to the Bureau.
    System of records BOP-006, Inmate Trust Fund Accounts and 
Commissary Record System, currently authorizes the Bureau to collect 
``personal identification data for persons who send or receive funds 
to/from inmates. This regulation serves to put the public on notice 
that such data will be collected whenever funds are sent or attempted 
to be sent to an inmate, regardless of the form of the deposit.
    This regulation will also clarify that by sending or depositing, or 
attempting to send or deposit, funds to an inmate's commissary account 
under this subpart, a person consents to the collection, review, use, 
disclosure, and retention of, all related transactional data, including 
the sender's personal identification information, by both (1) the 
Bureau, pursuant to the applicable Privacy Act system(s) of records; 
and (2) the service provider in accordance with the provisions of its 
agreement for providing service to the Bureau.
    This rule is in compliance with the Right to Financial Privacy Act, 
12 U.S.C.

[[Page 38659]]

3401 et seq. (the RFPA), which allows federal agencies to have access 
to or obtain copies of the financial records of any customer from a 
financial institution only if the financial records are reasonably 
described and . . . the financial records are disclosed in response to 
a formal written request which meets certain notice and other technical 
requirements. 12 U.S.C. 3402(5).
    RFPA provides that a financial institution cannot release a 
customer's financial records unless and until the federal government 
authority seeking the records certifies in writing to the financial 
institution that the authority has complied with the applicable 
provisions of the RFPA or unless the release of such records falls 
within one of the RFPA's delineated exceptions.
    The Bureau allows transfers into inmate accounts via the use of 
``money transmitters,'' or ``monetary service'' providers which do not 
qualify as ``financial institutions'' under the RFPA. Except as 
provided in Section 3414 of the RFPA (which allows for disclosures in 
connection with terrorism investigations and other exigent 
circumstances), a ``financial institution'' means ``any office of a 
bank, savings bank, card issuer as defined in section 1602(n) of Title 
15 [of the United States Code], industrial loan company, trust company, 
savings association, building and loan, or homestead association 
(including cooperative banks), credit union or consumer finance 
institution located in any State or territory of the United States, 
District of Columbia, Puerto Rico, Guam, American Samoa, or the Virgin 
Islands.'' 12 U.S.C. 3401(1).
    The ``monetary service'' providers that facilitate outside deposits 
into inmate accounts are not among the entities covered by the 
definition of ``financial institution'' above. Therefore, such entities 
are not ``financial institutions'' for purposes of the RFPA's general 
restrictions on providing personally identifiable records to federal 
government authorities.
    Further, the legitimate law enforcement purpose for this rule is to 
use transactional information of people who deposit funds into inmate 
accounts in order to detect unlawful activity. Continuous and routine 
deposits into an inmate's account, sometimes from fraudulent sources, 
have been linked to unlawful conducting of a business by an inmate or 
other inmate-involved unlawful activity, such as drug trafficking, 
money laundering, fraudulent income tax returns, gambling, attempted 
criminal assault, and other such unlawful activities. This rule is 
intended to provide notice to those members of the public who deposit 
funds into inmate accounts that their transactional information will be 
retained for the purpose of detecting unlawful activity.

Executive Order 12866

    The Director certifies that this rule is a ``significant regulatory 
action'' under section 3(f) of Executive Order 12866 and therefore was 
reviewed by the Office of Management and Budget for review.

Executive Order 13132

    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. Under Executive Order 13132, this rule 
does not have sufficient federalism implications for which we would 
prepare a Federalism Assessment.

Regulatory Flexibility Act

    The Director of the Bureau of Prisons, under the Regulatory 
Flexibility Act (5 U.S.C. 605(b)), reviewed this regulation. By 
approving it, the Director certifies that it will not have a 
significant economic impact upon a substantial number of small entities 
because: This rule is about the correctional management of offenders 
committed to the custody of the Attorney General and 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 cause State, local and tribal governments, or 
the private sector, to spend $100,000,000 or more in any one year, and 
it will not significantly or uniquely affect small governments. We do 
not need to take action under the Unfunded Mandates Reform Act of 1995.

Small Business Regulatory Enforcement Fairness Act of 1996

    This rule is not a major rule as defined by section 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.

List of Subjects in 28 CFR Part 506

    Prisoners.

L.C. Eichenlaub,
Deputy Director, Bureau of Prisons.

    Under the rulemaking authority vested in the Attorney General in 5 
U.S.C. 552(a) and delegated to the Director, Bureau of Prisons, we 
propose to revise 28 CFR part 506 to read as follows:

PART 506--INMATE COMMISSARY ACCOUNT

Sec.
506.1 Purpose.
506.2 Methods of depositing funds into an inmate commissary account.
506.3 Consent to collection and use of sender's transactional and 
personal identification data.

    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.


Sec.  506.1  Purpose.

    The purpose of this subpart is to describe the Bureau's operation 
and maintenance of individual inmate commissary accounts in a manner 
that preserves the safety, security, and good order of Bureau 
institutions, and protects the public. Family, friends, or other 
sources may send and deposit funds into these accounts, and inmates may 
withdraw funds from these accounts, as authorized by the Bureau.


Sec.  506.2  Methods of depositing funds into an inmate commissary 
account.

    Family, friends, and other sources, (such as senders of tax 
refunds, dividends from stocks, or state benefits) may send or deposit 
funds into an inmate's commissary account by the following methods:
    (a) By mail. Funds for deposit must be sent to the centralized 
inmate commissary account address we provide. Deposits must be in the 
form of a money order made out to the inmate's full name and complete 
register number. Personal checks will be returned to the sender, if an 
adequate return address is provided. The deposit envelope must not 
contain any enclosure(s) intended for delivery to the inmate. Any such 
enclosure(s) will be disposed.
    (b) By electronic deposit. Electronic deposits of funds may be sent 
from persons in the community through service providers (for example, a 
financial institution, bank, money service business, or money service 
provider or processor), and forwarded to

[[Page 38660]]

the individual inmate's commissary account, as authorized and directed 
by the Bureau.


Sec.  506.3  Consent to collection and use of sender's transactional 
and personal identification data.

    Persons sending or depositing, or attempting to send or deposit, 
funds to an inmate's commissary account under this subpart are required 
to provide, and consent to the collection, review, use, disclosure, and 
retention of, all related transactional data, including the sender's 
personal identification information, to:
    (a) The Bureau, pursuant to the applicable Privacy Act system(s) of 
records; and
    (b) The service provider(s) (for example, a financial institution, 
bank, money service business, or money service provider or processor) 
involved with the inmate commissary account program as authorized and 
directed by the Bureau in accordance with its agreement for providing 
service to the Bureau.
[FR Doc. 2015-16637 Filed 7-6-15; 8:45 am]
 BILLING CODE 4410-05-P