An amendment to further expand the inmate work programs in conjunction with non-profit organizations.

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 Secretary of Labor (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) Prior to board consideration.--Upon request of any interested person, the Secretary of Labor 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 Secretary and the person requesting the inquiry may make recommendations to the Board regarding modifications to the proposed agreement.

   Inserted: "(2) During performance.--

   Inserted: "(A) In general.--Whenever the Secretary deems appropriate, upon request or otherwise, the Secretary 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 Secretary 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 Secretary 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, after line 5, insert the following new subsection (and redesignate subsequent subsections in section 10 accordingly):

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As printed