An amendment numbered 6 printed in the Congressional Record on Wednesday, November 5, 2003.

1. 1

   Change 1: Inserts new text on page 29, line 5

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   Inserted: (b) Additional Inmate Work Opportunities Through Public Service Activities.--

   Inserted: (1) In general.--Chapter 307 of title 18, United States Code, is further amended by inserting after section 4124 the following new section:

   Inserted: "Sec. 4124a. Additional inmate work opportunities through public service activities

   Inserted: "(a) In General.--Inmates with work assignments within Federal Prison Industries may perform work for an eligible entity pursuant to an agreement between such entity and the Inmate Work Training Administrator in accordance with the requirements of this section.

   Inserted: "(b) Definition of Eligible Entities.--For the purposes of this section, the term 'eligible entity' means an entity--

   Inserted: "(1) that is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code and that has been such an organization for a period of not less than 36 months prior to inclusion in an agreement under this section;

   Inserted: "(2) that is a religious organization described in section 501(d) of such Code and exempt from taxation under section 501(a) of such Code; or

   Inserted: "(3) that is a unit of local government, a school district, or another special purpose district.

   Inserted: "(c) Inmate Work Training Administrator.--

   Inserted: "(1) The Federal Prison Industries Board of Directors shall designate an entity as the Inmate Work Training Administrator to administer the work-based training program authorized by this section.

   Inserted: "(2) In selecting the Inmate Work Training Administrator, the Board of Directors shall select an entity--

   Inserted: "(A) that is an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code; and

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   Inserted: "(B) that has demonstrated, for a period of not less than 5 years, expertise in the theory and practice of fostering inmate rehabilitation through work-based programs in cooperation with private sector firms.

   Inserted: "(3) With respect to the formation and performance of an agreement authorized by this section, the Director of the Bureau of Prisons and the Chief Operating Officer of Federal Prison Industries shall be responsible only for--

   Inserted: "(A) maintaining appropriate institutional and inmate security; and

   Inserted: "(B) matters relating to the selection and payment of participating inmates.

   Inserted: "(d) Proposed Agreements.--An eligible entity seeking to enter into an agreement pursuant to subsection (a) shall submit a detailed proposal to the Inmate Work Training Administrator. Each such agreement shall specify--

   Inserted: "(1) types of work to be performed;

   Inserted: "(2) the proposed duration of the agreement, specified in terms of a base year and number of option years;

   Inserted: "(3) the number of inmate workers expected to be employed in the specified types of work during the various phases of the agreement;

   Inserted: "(4) the wage rates proposed to be paid to various classes of inmate workers; and

   Inserted: "(5) the facilities, services and personnel (other than correctional personnel dedicated to the security of the inmate workers) to be furnished by Federal Prison Industries or the Bureau of Prisons and the rates of reimbursement, if any, for such facilities, services, and personnel.

   Inserted: "(e) Representations.--

   Inserted: "(1) Eleemosynary work activities.--Each proposed -agreement shall be accompanied by a written certification by the chief executive officer of the eligible entity that--

   Inserted: "(A) the work to be performed by the inmate workers will be limited to the eleemosynary work of such entity in the case of an entity described in paragraph (1) or (2) of subsection (b);

   Inserted: "(B) the work would not be performed but for the --availability of the inmate workers;

   Inserted: "(C) the work performed by the inmate workers will not result, either directly or indirectly, in the production of a new product or the furnishing of a service that is to be offered for other than resale or donation by the eligible entity or any affiliate of the such entity.

   Inserted: "(2) Protections For non-inmate workers.--Each proposed agreement shall also be accompanied by a written certification by the chief executive officer of the eligible entity that--

   Inserted: "(A) no non-inmate employee or volunteer of the eligible entity (or any affiliate of the entity) will have his or her job abolished or work hours reduced as a result of the entity being authorized to utilize inmate workers; and

   Inserted: "(B) the work to be performed by the inmate workers will not supplant work currently being performed by a contractor of the eligible entity.

   Inserted: "(f) Approval by Board of Directors.--

   Inserted: "(1) In general.--Each such proposed agreement shall be -presented to the Board of Directors, be subject to the same opportunities for public comment, and be publicly considered and acted upon by the Board in a manner comparable to that required by paragraphs (6) and (7) of section 4122(b).

   Inserted: "(2) Matters to be considered.--In determining whether to approve a proposed agreement, the Board shall--

   Inserted: "(A) give priority to an agreement that provides inmate work opportunities that will provide participating inmates with the best prospects of obtaining employment paying a livable wage upon release;

   Inserted: "(B) give priority to an agreement that provides for maximum reimbursement for inmate wages and for the costs of supplies and equipment needed to perform the types of work to be performed;

   Inserted: "(C) not approve an agreement that will result in the displacement of non-inmate workers or volunteers contrary to the representations required by subsection (e)(2) as determined by the Board or by the Attorney General (pursuant to subsection (i)); and

   Inserted: "(D) not approve an agreement that will result, either directly or indirectly, in the production of a new product or the furnishing of a service for other than resale or donation.

   Inserted: "(g) Wage Rates and Deductions from Inmate Wages.--

   Inserted: "(1) In general.--Inmate workers shall be paid wages for work under the agreement at a basic hourly rate to be negotiated between the eligible entity and Federal Prison Industries and specified in the agreement. The wage rates set by the Director of the Federal Bureau of Prisons to be paid inmates for various institutional work assignments are specifically authorized.

   Inserted: "(2) Payment to inmate worker and authorized deductions.--Wages shall be paid and deductions taken pursuant to section 4122(b)(11)(C).

   Inserted: "(3) Voluntary participation by inmate.--Each inmate worker to be utilized by an eligible entity shall indicate in writing that such person--

   Inserted: "(A) is participating voluntarily; and

   Inserted: "(B) understands and agrees to the wages to be paid and deductions to be taken from such wages.

   Inserted: "(h) Assignment to Work Opportunities.--Assignment of inmates to work under an approved agreement with an eligible entity shall be subject to the Bureau of Prisons Program Statement Number 1040.10 (Non-Discrimination Toward Inmates), as contained in section 551.90 of title 28 of the Code of Federal Regulations (or any successor document).

   Inserted: "(i) Enforcement of Protections for Non-inmate Workers.--

   Inserted: "(1) Consultation With Secretary of Labor.--The Attorney General shall carry out this subsection in consultation with the Secretary of Labor.

   Inserted: "(2) Prior to board consideration.--Upon request of any interested person, the Attorney General may promptly verify a certification made pursuant subsection (e)(2) with respect to the displacement of non-inmate workers so as to make the results of such inquiry available to the Board of Directors prior to the Board's consideration of the proposed agreement. The Attorney General and the person requesting the inquiry may make recommendations to the Board regarding modifications to the proposed agreement.

   Inserted: "(3) During performance.--

   Inserted: "(A) In general.--Whenever the Attorney General deems appropriate, upon request or otherwise, the Attorney General may verify whether the actual performance of the agreement is resulting in the displacement of non-inmate workers or the use of inmate workers in a work activity not authorized under the approved agreement.

   Inserted: "(B) Sanctions.--Whenever the Attorney General determines that performance of the agreement has resulted in the displacement of non-inmate workers or employment of an inmate worker in an unauthorized work activity, the Attorney General may--

   Inserted: "(i) direct the Inmate Work Training Administrator to terminate the agreement for default, subject to the processes and appeals available to a Federal contractor whose procurement contract has been terminated for default; and

   Inserted: "(ii) initiate proceedings to impose upon the person furnishing the certification regarding non-displacement of non-inmate workers required by subsection (d)(2)(B) any administrative, civil, and criminal sanctions as may be available.".

   Inserted: (2) Authorization of appropriation.--There is authorized to be appropriated $5,000,000 for each of the fiscal years 2004 through 2008 for the purposes of paying the wages of inmates and otherwise undertaking the maximum number of agreements with eligible entities pursuant to section 4124a of title 18, United States Code, as added by paragraph (1).

   Inserted: (3) Clerical amendment.--The table of sections for chapter 307 of title 18, United States Code, is amended by inserting after the item relating to section 4124 the following new item:

   Inserted: "4124a. Additional inmate work opportunities through public service activities.".

   Original wording

   Page 29, insert after line 5 the following new subsection (and redesignate subsequent subsections accordingly):

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   Change 2: Adds SEC. 11. ADDITIONAL PILOT AUTHORITIES FOR INMATE WORK OPPORTUNITIES on page 36, line 5

   Adds a sectionPrinted page

   Inserted: SEC. 11. ADDITIONAL PILOT AUTHORITIES FOR INMATE WORK OPPORTUNITIES.

   Inserted: (a) In General.--Chapter 307 of title 18, United States Code, as amended by section 9, is further amended by adding at the end the following new section:

   Inserted: "Sec. 4131. Additional pilot authorities for inmate work opportunities

   Inserted: "(a) Pilot Authorities.--Federal Prison Industries may contract with private or public sector entities for Federal inmates to produce products or perform services for those entities. Under these pilot authorities, and pursuant to the terms and conditions specified in section 4122, Federal inmates may, under the direct supervision of Federal Prison Industries staff--

   Inserted: "(1) produce products or perform services for commercial companies which have been otherwise produced or performed for the companies by foreign labor outside the United States for at least 3 years before the proposed effective date of the business agreement;

   Inserted: "(2) produce products or perform services for commercial companies which would otherwise be performed for the companies by domestic labor, if available; or

   Inserted: "(3) produce products or perform services for not-for-profit agencies in support of the charitable activities of those agencies.

   Inserted: "(b) Limitations on Use of Authorities.--(1) Federal Prison Industries is prohibited from directly offering for commercial sale products produced or services furnished by Federal inmates, including through any form of electronic commerce.

   Inserted: "(2) The number of Federal inmates working under the pilot authority provided in subsection (a)(1) shall not exceed--

   Inserted: "(A) 4,000 during fiscal year 2005;

   Inserted: "(B) 8,000 during fiscal year 2006;

   Inserted: "(C) 12,000 during fiscal year 2007;

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   Inserted: "(D) 16,000 during fiscal year 2008;

   Inserted: "(E) 20,000 during fiscal year 2009; or

   Inserted: "(F) 25 percent of the work-eligible Federal inmate population in any fiscal year beginning after September 30, 2008.

   Inserted: "(3) The number of Federal inmates working under the pilot authority provided in subsection (a)(3) shall not exceed--

   Inserted: "(A) 2,000 during fiscal year 2005;

   Inserted: "(B) 4,000 during fiscal year 2006;

   Inserted: "(C) 6,000 during fiscal year 2007;

   Inserted: "(D) 8,000 during fiscal year 2008;

   Inserted: "(E) 10,000 during fiscal year 2009; or

   Inserted: "(F) 10 percent of the work eligible Federal inmate population in any fiscal year beginning after September 30, 2009.

   Inserted: "(c) Inmate wages.--

   Inserted: "(1) In general.--Each Federal inmate worker participating in industrial operations authorized by the Corporation shall be paid at a wage rate prescribed by the Board of Directors. The Director of the Federal Bureau of Prisons shall prescribe the wage rates for other Federal inmate work assignments within the various Federal correctional institutions. The Board shall give priority to approving Federal inmate work opportunities which maximize inmate earnings. Inmate wage rates shall be reviewed by the Board at least biannually.

   Inserted: "(2) Work pursuant to subsection (a)(1).--For Federal inmate work performed for commercial companies pursuant to subsection (a)(1), the wage rate paid to Federal inmates must be the Federal Prison Industries wage rate in effect on the date of the enactment of this section or twice the rate paid for work of a similar nature in the foreign locality in which the work would otherwise be performed, whichever is higher.

   Inserted: "(3) Work pursuant to subsection (a)(2).--For work performed by Federal inmates pursuant to subsection (a)(2), the wage rate paid to inmates shall be not less than the rate paid for work of a similar nature in the locality in which the work is to be performed, but in no event less than the minimum wage required pursuant to the Fair Labor Standards Act (29 U.S.C. 201 et seq). The determination of this wage rate shall be approved by the Secretary of Labor or by the State or local government entity with authority to approve such determinations.

   Inserted: "(d) Deductions From Inmate Wages.--Inmate wages paid by commercial companies shall be paid to the Corporation in the name and for the benefit of the Federal inmate. Except as specified in subsection (e), the Corporation may deduct, withhold, and disburse from the gross wages paid to inmates, aggregate amounts of not less than 50 percent and not more than 80 percent of gross wages for--

   Inserted: "(1) applicable taxes (Federal, State, and local);

   Inserted: "(2) payment of fines, special assessments, and any other restitution owed by the inmate worker pursuant to court order;

   Inserted: "(3) payment of additional restitution for victims of the inmate's crimes (at a rate not less than 10 percent of gross wages);

   Inserted: "(4) allocations for support of the inmate's family pursuant to statute, court order, or agreement with the inmate;

   Inserted: "(5) allocations to a fund in the inmate's name to facilitate such inmate's assimilation back into society, payable at the conclusion of incarceration;

   Inserted: "(6) such other deductions as may be specified by the Board of Directors.

   Inserted: "(e) Exception for Higher Deductions.--The aggregate deduction authorized in subsection (d) may, with the written consent of an inmate, exceed the maximum limitation, if the amounts in excess of such limitation are for the purposes described in paragraphs (4) or (5) of that subsection.

   Inserted: "(f) Conversions.--Commercial market services authorized by the Federal Prison Industries Board of Directors and being provided by Federal Prison Industries on the date of enactment of this section may be continued until converted to a private sector contract pursuant to the authority in this Act. The Board of Directors of Federal Prison Industries shall ensure these conversions occur at the earliest practicable date.

   Inserted: "(g) Proposals From Private Companies.--Federal Prison Industries may solicit, receive and approve proposals from private companies for Federal inmate work opportunities. Federal Prison Industries shall establish and publish for comment criteria to be used in evaluating and approving such proposals. In developing criteria, priority shall be given to those proposals which offer Federal inmates the highest wages, the most marketable skills, and the greatest prospects for post-release reintegration.

   Inserted: "(h) Approval of Proposals.--The Board must approve all proposals in advance of their implementation.

   Inserted: "(i) Content of Proposals.--Any business or eligible not-for-profit entity seeking to contract with Federal Prison Industries for Federal inmate workforce participation shall submit a detailed proposal to the Chief Operating Officer of Federal Prison Industries. Each such proposal shall specify--

   Inserted: "(1) the product or service to be produced or furnished;

   Inserted: "(2) the proposed duration of the business agreement, specified in terms of a base period and number of option period;

   Inserted: "(3) the number of Federal inmate workers expected to be employed during the various phases of the agreement;

   Inserted: "(4) the number of foreign workers, if any, outside the United States currently performing for the proposing entity the work proposed for performance by Federal inmate workers, and the wage rates paid to those workers;

   Inserted: "(5) the wage rates proposed to be paid to various classes of Federal inmate workers, at not less than the rates required by subsection (c); and

   Inserted: "(6) the facilities, services and personnel (other than correctional personnel dedicated to the security of the inmate workers) to be furnished by the Federal Prison Industries or the Bureau of Prisons and the rates of reimbursement for such facilities, services, and personnel, if any.

   Inserted: "(j) Written Certification for Proposed Commercial Business Agreement.--Each proposed commercial business agreement shall be accompanied by a written certification by the chief executive officer of the business entity proposing the agreement that--

   Inserted: "(1) no noninmate employee of the business (or any affiliate) working within the United States will have their job abolished or their work hours reduced as a direct result of the agreement;

   Inserted: "(2) inmate workers will be paid wages at rates in accordance with subsection (c); and

   Inserted: "(3) any domestic workforce reductions carried out by the business entity affecting employees performing work comparable to the work being performed by inmates pursuant to the agreement shall first apply to inmate workers employed pursuant to the agreement.

   Inserted: "(k) Written Certification for Proposed Agreement with Not-for-Profit Entity.--Each proposed agreement with an eligible not-for-profit entity shall be accompanied by a written certification by the chief executive officer of the eligible entity that--

   Inserted: "(1) the work to be performed by the inmate workers will be limited to the eleemosynary work of such entity;

   Inserted: "(2) the work would not be performed on a compensated basis but for the availability of the inmate workers;

   Inserted: "(3) the work performed by the inmate workers will not result, either directly or indirectly, in the production of a product or the furnishing of a service that is to be offered for commercial sale by the eligible entity or any affiliate of such entity;

   Inserted: "(4) no noninmate employees of the eligible entity (or any affiliate of the entity) will have their job abolished or their work hours reduced as a result of the entity entering into an agreement to utilize inmate workers; and

   Inserted: "(5) the work to be performed by the inmate workers will not supplant work currently being performed by a contractor of the eligible entity.

   Inserted: "(l) Public Notice and Comment.--

   Inserted: "(1) In general.--The Board shall make reasonable attempts to provide opportunities for notice and comment to the widest audience of potentially interested parties as practicable. At a minimum, the Board shall--

   Inserted: "(A) give notice of a proposed business agreement on the Corporation's web site and in a publication designed to most effectively provide notice to private businesses and labor unions representing private sector workers who could reasonably be expected to be affected by approval of the proposed agreement, which notice shall offer to furnish copies of the proposal (excluding any proprietary information) and chief executive certifications and shall solicit comments on same;

   Inserted: "(B) solicit comments on the business proposal from trade associations representing businesses and labor unions representing workers who could reasonably be expected to be affected by approval of the proposal; and

   Inserted: "(C) afford an opportunity, on request, for a representative of an established trade association, labor union, or other representatives of private industry to present comments on the proposal directly to the Board of Directors.

   Inserted: "(2) Copies.--The Board of Directors shall be provided copies of all comments received on the proposal.

   Inserted: "(3) Revised proposal.--Based on the comments received on the initial business proposal, the business or nonprofit entity or Federal Prison Industries Chief Operating Officer may provide the Board of Directors a revised proposal. If the revised proposal presents new issues or potential effects on the private sector which were not addressed in the original proposal and comments received thereon, the Board shall provide another public notice and comment opportunity pursuant to paragraph (1).

   Inserted: "(4) Open meeting.--The Board of Directors shall consider all inmate work opportunity proposals submitted and take any action with respect to such proposals, during a meeting that is open to the public, unless closed pursuant to section 552(b) of title 5.

   Inserted: "(m) Board approval.--(1) In determining whether to approve a proposed business agreement for Federal inmate work opportunities, the Board shall--

   Inserted: "(A) not approve any agreement that would result in the displacement of noninmate workers contrary to the certifications required in subsections (j) and(k) or pay less than the wages required by subsection (c).

   Inserted: "(B) not approve an agreement which the Board determines contains terms and conditions which would subject domestic noninmate workers to unfair competition;

   Inserted: "(C) request a determination from the International Trade Commission, the Department of Commerce or such other Executive Branch entities as may be appropriate, whenever the Board questions the representations by a commercial company or a not-for-profit entity regarding whether a particular product or service has been produced by foreign labor outside the United States for the commercial company or not-for profit entity for at least 3 years before the proposed effective date of the business agreement;

   Inserted: "(D) not approve an agreement which would cause Federal Prison Industries sales revenue derived from any specific industry to exceed 50 percent of Federal Prison Industries total revenue.

   Inserted: "(E) not approve any agreement which provides for direct supervision of Federal inmate workers by non-Federal Prison Industries employees; and

   Inserted: "(H) not approve any agreement which would provide for products or services produced by Federal inmates to be sold to agencies of State government without the written consent of the Governor or designee.

   Inserted: "(n) Review and Enforcement.--(1) The Attorney General shall carry out this subsection in consultation with the Secretary of Labor.

   Inserted: "(2) Upon request of any interested person, the Attorney General may promptly verify a certification pursuant to subsection (j)(1) with respect to the displacement of noninmate workers or a certification with respect to the wages proposed to be paid Federal inmate workers pursuant to subsection (j)(2) so as to make the results of such inquiry available to the Board of Directors prior to the Board's consideration of the proposed agreement. The Attorney General and the person requesting the inquiry may make recommendations to the Board regarding modifications to the proposed agreement.

   Inserted: "(3) Whenever the Attorney General deems appropriate, the Attorney General may verify whether the actual performance of the agreement is resulting in the displacement of noninmate workers and whether the wages being paid the Federal inmate workers meet the standards of subsection (c).

   Inserted: "(4) Whenever the Attorney General determines that performance of the agreement has resulted in the displacement of noninmate workers or the payment of Federal inmate workers at less than the required wage rates, the Attorney General may--

   Inserted: "(A) direct the Chief Operating Officer of the Corporation to terminate the agreement for default, subject to the processes and appeals available to a Federal contractor whose procurement contract has been terminated for default;

   Inserted: "(B) direct that the Federal inmate workers be retroactively paid the wages that were due; and

   Inserted: "(C) initiate proceedings to impose upon the person furnishing the certifications made pursuant to subsection (j), any administrative, civil, and criminal sanctions as may be available.".

   Inserted: (b) Clerical Amendment.--The table of sections for chapter 307 of title 18, United States Code, is amended by adding at the end the following new item:

   Inserted: "4131. Additional pilot authorities for inmate work opportunities.".

   Original wording

   Page 36, insert after line 5 the following (and redesignate subsequent subsections and clerical amendments accordingly):

Read automatically from the Congressional Record. Check the original before relying on it.

As printed