inmate telephone system service contracts

Plain English Breakdown

The effective date is not listed in the provided official material, so it remains unknown when this rule starts applying.

Limits on Inmate Phone Service Contracts

This law stops the state corrections department from signing phone contracts where they receive money beyond their reasonable operating costs.

What This Bill Does

• Adds a new rule to Arizona laws about inmate telephone services.
• Prohibits contracts that let the department accept revenue more than its reasonable operating cost for setting up and running the system.
• Bans payment methods like commissions, profit sharing, percentage payments, up-front signing bonuses, inflated rent, or unrelated technology supplies.

Who It Names or Affects

• The Arizona Department of Corrections
• Companies that provide telephone services to inmates

Terms To Know

Reasonable operating cost

The actual money needed for the department to set up and run the phone system.

Profit sharing

A payment method where earnings are shared, which is banned in these contracts.

Limits and Unknowns

• The bill does not define exactly how to calculate 'reasonable operating costs'.
• The text does not say when this law will officially start or take effect.
• The rule only applies to new contracts and agreements the department enters into.

Official Summary Text

HB2358 - inmate telephone system service contracts

Current Bill Text

HB2358 - 572R - I Ver

REFERENCE TITLE:
inmate telephone system service contracts

State of Arizona

House of Representatives

Fifty-seventh Legislature

Second Regular Session

2026

HB 2358

Introduced by

Representatives
Crews: Aguilar, Liguori, Travers, Villegas

AN
ACT

amending title 41, chapter 11, article 1,
Arizona Revised Statutes, by adding section 41-1604.21; relating to the state
department of corrections.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 41, chapter 11, article 1,
Arizona Revised Statutes, is amended by adding section 41-1604.21, to read:

START_STATUTE
41-1604.21.

Inmate telephone system service contracts; prohibited terms

The department may not enter into a contract or
agreement for inmate telephone system services that Allows the department to
accept or receive revenue in excess of the department's reasonable operating
cost for establishing and administering the inmate telephone system services
, including a contract or agreement that Allows
commissions, profit sharing, percentage payments, up-front signing bonuses,
inflated rent payments or the supplying of technologies that are unrelated to
the actual telephone service.
END_STATUTE