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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H. Res. 641 Introduced in House (IH)]

106th CONGRESS
  2d Session
H. RES. 641

   Expressing the sense of the House of Representatives that Federal 
Prison Industries, Inc., should immediately cease taking excess Federal 
computer equipment and selling such computer equipment and other excess 
               Federal property in the commercial market.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            October 18, 2000

Mr. Hoekstra (for himself, Mr. Frank of Massachusetts, Mr. Collins, and 
Mrs. Maloney of New York) submitted the following resolution; which was 
               referred to the Committee on the Judiciary

_______________________________________________________________________

                               RESOLUTION

 
   Expressing the sense of the House of Representatives that Federal 
Prison Industries, Inc., should immediately cease taking excess Federal 
computer equipment and selling such computer equipment and other excess 
               Federal property in the commercial market.

Whereas information technology and the Internet are playing an increasingly 
        important role in driving economic growth and creating job opportunities 
        for millions of Americans;
Whereas inner city and rural areas need access to this growing sector of the 
        economy to improve education, spur economic development, and create 
        opportunity;
Whereas the Computers for Learning Program, established by Executive Order 12999 
        which was issued by President Clinton on April 17, 1996, created a 
        program to accelerate the transfer of excess Federal computers, related 
        equipment, and software to schools and other organizations to help 
        bridge the digital divide for inner city and rural young people;
Whereas Federal Prison Industries, Inc., a wholly-owned Government corporation 
        established in 1935 to centrally manage the industrial work programs of 
        the Federal Bureau of Prisons, has now grown to be a chain of over 100 
        factories in 27 States, employing almost 21,000 inmate workers;
Whereas on February 2, 1998, a legal memorandum which was issued by a special 
        counsel in the Office of Enforcement Operations within the Criminal 
        Division of the Department of Justice, found that the general statutory 
        prohibition in force since 1934 on the sale in interstate commerce of 
        the results of inmate labor did not apply to services, permitting 
        Federal Prison Industries, Inc., and prison industry programs operated 
        by the States and local governments to sell inmate-furnished services in 
        the commercial market, reversing interpretations and practice in place 
        for almost 45 years;
Whereas Federal Prison Industries, Inc., then began to exercise its priority 
        status as a Government-owned corporation to take for free increasingly 
        large quantities of computers and other equipment no longer needed by 
        the Department of Defense and other executive departments and agencies;
Whereas takings by Federal Prison Industries, Inc., from the Department of 
        Defense grew from 4,372 items with a purchase value of $17,600,000 in 
        fiscal year 1997, to 59,627 items with a purchase value of $480,800,000 
        during fiscal year 1999, to 83,113 items with a purchase value of almost 
        $890,000,000 during the first nine months of fiscal year 2000, a more 
        than 5,000 percent increase;
Whereas Federal Prison Industries, Inc., began to offer these computers, 
        computer-related equipment, and software for sale to the general public 
        through retail outlets and websites in direct, but unfair, competition 
        with small business owners, contrary to the letter and spirit of the 
        authorizing statute;
Whereas these takings by Federal Prison Industries, Inc., were diverting this 
        Federal computer equipment from other authorized beneficiaries, 
        including State and local governments, schools, and not-for-profit 
        community service organizations; and
Whereas the Subcommittee on Oversight and Investigations of the Committee on 
        Education and the Workforce of the House of Representatives held a 
        hearing on September 26, 2000, receiving testimony from a representative 
        of the Federal Supply Service of the General Services Administration, a 
        representative of the Defense Reutilization and Marketing Service of the 
        Defense Logistics Agency, the President of the National Association of 
        State Agencies for Surplus Property, the executive director of a not-
        for-profit organization working to bridge the digital divide in 
        Philadelphia, Pennsylvania, and a small business owner from Florida: 
        Now, therefore, be it
    Resolved, That it is the sense of the House of Representatives that 
the Board of Directors of Federal Prison Industries, Inc., should 
direct its Chief Operating Officer to immediately cease taking computer 
equipment and other equipment excess to the needs of various Federal 
agencies and departments and selling such equipment in the commercial 
market.
                                 <all>
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