Butler County Prison is losing the $30,000 a month average commission it receives from its inmate communications contractor due to a federal regulation aimed at reducing costs that inmates and their families pay to stay in touch.

Warden Beau Sneddon told the prison board Tuesday that the Federal Communications Commission is implementing a rule that prohibits the jail from collecting a commission from its inmate communications vendor, and the last payment will come in March.

The rule stems from a law passed in January 2023 that authorizes the FCC to reduce rates and fees for audio and video communications between inmates and their loved ones.

Last year, the jail received $474,853 from Smart Communications, of Florida, which provides communication services through phones, tablets and kiosks in the jail, Sneddon said.

The average commission the jail receives is about $30,000 a month, but the amount fluctuates based on the amount of phone use, he said. Last year the monthly commissions ranged from about $29,700 to about $49,100.

Sneddon said he believes the rule means the rate for phone use decreases from 21 cents per minute to 0.07 cents, and rate for video visits will decrease from 15 cents per minute to 12 cents.

“This is a hot topic, obviously,” Sneddon said.

He said the FCC is getting “a lot of push back from other states” over the regulation.

Sneddon said the commission is deposited into the jail budget and saves tax dollars by being used to help fund operations.

Controller Ben Holland said the jail has saved a lot of the commission payments and has saved enough to use for the next several years.

He said $338,000 was spent from last year’s reimbursement to pay for inmate health care costs that exceeded the contractual coverage limit with the inmate health care provider.

In addition, the board agreed to buy 600 new sheet sets and 550 blankets for inmates at a cost of $46,373.