In February 1986, the California Public Utilities Commission voted to permit Pacific Telephone Company and its competitors to pay jails a group rate commission similar to the commissions paid to hotels and restaurants. The Contra Costa Sheriff's Office immediately requested inclusion in the program. The commission rate paid by Pac Bell was between 5 and 6 percent. While this amounted to nearly $5,000 a month, it was substantially less than the 10 to 15 percent commission rate initially quoted by the telephone company. In 1987, following a protest of this misrepresentation, Pac Bell announced it would pay jails only a flat $15 per telephone, producing only $1,000 per month. Pac Bell based its policy on claims that inmates defrauded the company of millions of dollars. As a result of this policy, negotiations were begun with Triple Crown, Inc., which offered a 15 percent commission and free installation and maintenance. This competitive pressure led to an agreement from Pac Bell to pay a 16 percent commission. For Contra Costa County, with an inmate count of 1,300, this should generate over $200,000 per year. To prevent diversion of these revenues, legislation was enacted to ensure that monies would go to the benefit of inmates. It is recommended that jails in other States initiate similar programs. A list of telephone companies is provided. Photographs.