II

103D CONGRESS

2D SESSION S. 2267

To enable all able-bodied Federal prisoners to work.

IN THE SENATE OF THE UNITED STATES

JULY 1 (legislative day, JUNE 7), 1994

Mr. BROWN introduced the following bill; which was read twice and referred

to the Committee on the Judiciary

A BILL

To enable all able-bodied Federal prisoners to work.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. DIRECT SALE OF EXCESS PROPERTY.

4 (a) AMENDMENT OF TITLE 18, UNITED STATES

5 CODE.—

6 (1) IN GENERAL.—Chapter 307 of title 18,

7 United States Code, is amended by adding at the

8 end the following new section:

9 ‘‘§ 4130. Direct sale of excess property

10 ‘‘Notwithstanding any other law, Federal Prison In11 dustries may sell on the open market at the best available

12 price such excess or obsolescent property as Federal Pris-
2

•S 2267 IS

1 on Industries deems appropriate, the proceeds of such

2 sales to be deposited in the Treasury to the credit of the

3 Prison Industries Fund.’’.

4 (2) TECHNICAL AMENDMENT.—The chapter

5 analysis for chapter 307 of title 18, United States

6 Code, is amended by adding at the end the following

7 new item:

‘‘4130. Direct sale of excess property.’’.

8 (b) AMENDMENT OF THE FEDERAL PROPERTY AND

9 ADMINISTRATIVE SERVICES ACT.—Section 602 of the

10 Federal Property and Administrative Services Act of 1949

11 (40 U.S.C. 474) is amended—

12 (1) by striking ‘‘or’’ at the end of paragraph

13 (20);

14 (2) by striking the period at the end of para15 graph (21) and inserting ‘‘; or’’; and

16 (3) by adding after paragraph (21) the follow17 ing new paragraph:

18 ‘‘(22) Federal Prison Industries with respect to

19 the disposal of property described in section 4130 of

20 title 18, United States Code.’’.

21 (c) TRANSPORTATION AND IMPORTATION.—Section

22 1761(b) of title 18, United States Code, is amended by

23 inserting ‘‘, nor to property described in section 4130’’ be24 fore the period.
3

•S 2267 IS

1 SEC. 2. PRISON INDUSTRIES FUND; USE AND SETTLEMENT

2 OF ACCOUNTS.

3 Section 4126 of title 18, United States Code, is

4 amended—

5 (1) by amending subsection (a) to read as fol6 lows:

7 ‘‘(a) Federal Prison Industries shall determine the

8 character of and necessity for its obligations and expendi9 tures, and the manner in which they shall be incurred,

10 allowed, and paid, subject to laws specifically applicable

11 to government corporations.’’;

12 (2) by striking subsections (d) and (e); and

13 (3) by redesignating subsection (f) as sub14 section (d).

15 SEC. 3. ADMINISTRATION OF FEDERAL PRISON INDUS16 TRIES.

17 Section 4122(a) of title 18, United States Code, is

18 amended to read as follows:

19 ‘‘(a)(1) As authorized by this chapter, Federal Prison

20 Industries shall determine in what manner and to what

21 extent industrial operations shall be carried on in Federal

22 penal and correctional institutions for the production of

23 commodities and services.

24 ‘‘(2) Commodities and services produced by Federal

25 Prison Industries shall be sold at current market prices

26 and shall conform to design, quality, and testing standards
4

•S 2267 IS

1 of the Federal Government and the relevant private indus2 try.’’.

3 SEC. 4. PRODUCTION AND ACQUISITION OF PRISON-MADE

4 PRODUCTS, PROCESSES AND SERVICES.

5 (a) IN GENERAL.—Section 4124 of title 18, United

6 States Code, is amended—

7 (1) by striking ‘‘(b) Disputes’’ and inserting

8 ‘‘(f) DISPUTES.—Disputes’’;

9 (2) by striking ‘‘(c) Each’’ and inserting ‘‘(g)

10 REPORTING OF ACQUISITIONS.—Each’’;

11 (3) by striking ‘‘(d) Within’’ and inserting ‘‘(h)

12 CATALOG.—Within’’; and

13 (4) by striking the heading and subsection (a)

14 and inserting the following:

15 ‘‘§ 4124. Production and acquisition of prison-made

16 products, processes, and services

17 ‘‘(a) RELATIONSHIP BETWEEN FEDERAL PRISON IN18 DUSTRIES AND GOVERNMENT INSTITUTIONS.—The Fed19 eral departments and agencies and all other Government

20 institutions of the United States shall—

21 ‘‘(1) purchase from Federal Prison Industries

22 such products, processes, or services of the indus23 tries authorized by this chapter as meet their re24 quirements and may be available, except that if Fed25 eral Prison Industries and the workshops for the
5

•S 2267 IS

1 blind or other severely handicapped each offer com2 petitive services, priority shall be afforded to services

3 offered by the workshops; and

4 ‘‘(2) provide to Federal Prison Industries the

5 maximum practicable opportunity to participate as a

6 subcontractor in labor-intensive, light manufacturing

7 segments of contracts awarded, consistent with effi8 cient contract performance.

9 ‘‘(b) PRODUCTION OF PRODUCTS, PROCESSES, AND

10 SERVICES OTHERWISE PRODUCED OFFSHORE.—(1) Not11 withstanding any other law and subject to the limitations

12 stated in this subsection, Federal Prison Industries may

13 produce or provide for sale on the open market processes,

14 products, and services that would otherwise be produced

15 by foreign labor at offshore locations.

16 ‘‘(2) Federal Prison Industries may enter into agree17 ments with private industry in order to carry out this sec18 tion.

19 ‘‘(3) The board of directors of Federal Prison Indus20 tries shall certify that processes, products, or services un21 dertaken under this section—

22 ‘‘(A) are labor-intensive and limited to levels

23 that replace goods and services produced by offshore

24 labor; and
6

•S 2267 IS

1 ‘‘(B) do not significantly increase competition

2 with any remaining domestic labor or industry.

3 ‘‘(c) RECYCLING OF MATERIALS FOR SALE ON THE

4 OPEN MARKET.—Notwithstanding any other law, Federal

5 Prison Industries may produce and provide for sale on the

6 open market recycled materials directly or in partnership

7 with private sector firms.

8 ‘‘(d) FLOOD OR OTHER DISASTER RELIEF ACTIVI9 TIES.—Notwithstanding any other law, Federal Prison In10 dustries may produce or provide goods and services for

11 sale or donation on the open market to private, nonprofit

12 organizations chartered by Congress to assist in flood or

13 other disaster relief programs or activities.

14 ‘‘(e) EXEMPTIONS FROM REQUIREMENTS OF OTHER

15 LAWS.—(1)(A) Items sold on the open market pursuant

16 to the authority granted in this chapter are exempt from

17 the prohibition against shipment in commerce of prison18 made goods contained in section 1761.

19 ‘‘(B) Inmates who work on the production of prod20 ucts or processes or provide services under this section are

21 exempt from the minimum wage requirements of the Fair

22 Labor Standards Act of 1938 (29 U.S.C. 201 et seq.).

23 ‘‘(2) Section 4122(b) (4) and (5) do not apply with

24 respect to production undertaken pursuant to subsection

25 (b) or (c).’’.
7

•S 2267 IS

1 (b) TECHNICAL AMENDMENT.—The chapter analysis

2 for chapter 307 of title 18, United States Code, is amend3 ed by striking the item relating to section 4124 and insert4 ing the following:

‘‘4124. Production and acquisition of prison-made products, processes, and services.’’.

5 SEC. 5. PROCUREMENT.

6 (a) IN GENERAL.—Chapter 307 of title 18, United

7 States Code, as amended by section 1(a), is amended by

8 adding at the end the following new section:

9 ‘‘§ 4131. Procurement

10 ‘‘(a) IN GENERAL.—Funds available to Federal Pris11 on Industries may be used to enter into contracts directly

12 related to the purchase of goods for industrial operations

13 authorized under this chapter without regard to laws gov14 erning procurement by Federal agencies.

15 ‘‘(b) RULE OF CONSTRUCTION.—Nothing in this sec16 tion shall be construed to affect any requirement of law

17 to purchase commodities and services produced or pro18 vided by qualified nonprofit agencies for the blind and

19 other severely handicapped.

20 ‘‘(c) PROCEDURES.—The board of directors of Fed21 eral Prison Industries shall establish procedures to ensure

22 that any such procurements are conducted in a manner

23 that promotes competition consistent with the needs of the

24 Corporation.’’.
8

•S 2267 IS

1 (b) TECHNICAL AMENDMENT.—The chapter analysis

2 for chapter 307 of title 18, United States Code, is amend3 ed by adding at the end the following new item:

‘‘4131. Procurement.’’.

Æ