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[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5983 Introduced in House (IH)]

111th CONGRESS
  2d Session
                                H. R. 5983

                 To revise the Javits-Wagner-O'Day Act.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 2010

Mr. Towns (for himself and Mr. Bilbray) introduced the following bill; 
 which was referred to the Committee on Oversight and Government Reform

_______________________________________________________________________

                                 A BILL

 
                 To revise the Javits-Wagner-O'Day Act.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Javits-Wagner-
O'Day Act of 2010''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Committee for Purchase From People Who Are Blind or People With 
                            Other Significant Disabilities.
Sec. 3. Procurement requirements for the Federal Government; 
                            nonapplication to prison made products.
Sec. 4. Duties of the Committee.
Sec. 5. Qualified nonprofit agency.
Sec. 6. Audit.
Sec. 7. Establishment of Inspector General for Committee for Purchase 
                            From People Who Are Blind or People With 
                            Other Significant Disabilities.
Sec. 8. Panel on the Committee and Federal procurement.
Sec. 9. Definitions.
Sec. 10. Sense of Congress.
Sec. 11. Committee for Purchase Fund.
Sec. 12. Conforming repeal.

SEC. 2. COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR PEOPLE WITH 
              OTHER SIGNIFICANT DISABILITIES.

    (a) Establishment.--There is established an independent Federal 
entity to be known as the Committee for Purchase From People Who Are 
Blind or People With Other Significant Disabilities (in this Act 
referred to as the ``Committee'').
    (b) Membership.--
            (1) Number of members.--The Committee shall be composed of 
        17 members appointed by the President as follows:
                    (A) One general or flag officer or Senior Executive 
                Service or equivalent employee from each of the 
                following:
                            (i) The Department of Agriculture.
                            (ii) The Department of Commerce.
                            (iii) The Department of Defense.
                            (iv) The Department of Education.
                            (v) The Department of Homeland Security.
                            (vi) The Department of Justice.
                            (vii) The Department of Labor.
                            (viii) The Department of the Air Force.
                            (ix) The Department of the Army.
                            (x) The Department of the Interior.
                            (xi) The Department of the Navy.
                            (xii) The Department of Veterans Affairs.
                            (xiii) The General Services Administration.
                    (B) One member who is not an officer or employee of 
                the Federal Government and who is conversant with the 
                problems incident to the employment of people who are 
                blind.
                    (C) One member who is not an officer or employee of 
                the Federal Government and who is conversant with the 
                problems incident to the employment of people with 
                other significant disabilities.
                    (D) One member who is not an officer or employee of 
                the Federal Government and who represents people who 
                are blind and employed in a qualified nonprofit agency 
                for people who are blind.
                    (E) One member who is not an officer or employee of 
                the Federal Government and who represents people with 
                other significant disabilities (other than people who 
                are blind) who are employed in a qualified nonprofit 
                agency for people with other significant disabilities.
            (2) Nomination of general or flag officer or senior 
        executive service.--
                    (A) In general.--The head of each department or 
                agency listed in paragraph (1)(A) shall nominate, in 
                consultation with the Committee, one general or flag 
                officer or Senior Executive Service or equivalent 
                employee in the department or agency for appointment 
                under such paragraph.
                    (B) Existing members.--Those officers or employees 
                serving as members of the Committee on the effective 
                date of this Act who are not general or flag officers 
                or Senior Executive Service or equivalent employees may 
                continue serving until the head of the department or 
                agency nominates a new officer or employee and the 
                nominated officer or employee is appointed by the 
                President as a member on the Committee.
    (c) Terms.--
            (1) In general.--Except as provided in paragraph (2), each 
        member shall be appointed for a term of 5 years and may be 
        reappointed to the Committee.
            (2) Vacancies.--
                    (A) In general.--Any member appointed under 
                subparagraphs (B), (C), (D), and (E) of subsection 
                (b)(1) to fill a vacancy occurring before the 
                expiration of the term for which the member's 
                predecessor was appointed shall be appointed only for 
                the remainder of that term.
                    (B) Extension of term.--A member may serve after 
                the expiration of that member's term until a successor 
                has taken office.
                    (C) Appointment of member for vacancy.--A vacancy 
                in the Committee shall be filled in the manner in which 
                the appointment was made pursuant to subsection (b).
    (d) Basic Pay.--
            (1) Rate of pay.--Except as provided in paragraph (2), 
        members of the Committee shall each be entitled to receive the 
        daily equivalent of the annual rate of basic pay under section 
        5376 of title 5, United States Code, for each day (including 
        travel time) during which they are engaged in the actual 
        performance of duties vested in the Committee.
            (2) Prohibition of compensation of federal employees.--
        Members of the Committee who are officers or employees of the 
        Federal Government may not receive additional pay, allowances, 
        or benefits by reason of their service on the Committee.
    (e) Travel Expenses.--Each member shall receive travel expenses, 
including per diem in lieu of subsistence, in accordance with 
applicable provisions under subchapter I of chapter 57 of title 5, 
United States Code.
    (f) Status of Members.--
            (1) Tort claim.--For the purpose of chapter 171 of title 
        28, United States Code, each member of the Committee shall be 
        considered to be a Federal employee.
            (2) Federal status of members.--Each member of the 
        Committee shall be considered to be a Federal employee for 
        purposes of the provisions of law relating to ethics, conflicts 
        of interest, corruption, and any other criminal or civil 
        statute or regulation governing the conduct of Federal 
        employees.
    (g) Chairman.--
            (1) Election.--The members of the Committee shall elect one 
        of the members to be Chairman of the Committee.
            (2) Vacancy.--The Chairman may serve after the expiration 
        of the term until a successor has taken office.
    (h) Executive Director, General Counsel, and Staff of Committee; 
Experts and Consultants.--
            (1) Executive director and general counsel.--
                    (A) In general.--Subject to rules prescribed by the 
                Committee, the Chairman may appoint and fix the pay of 
                an Executive Director and General Counsel to assist the 
                Committee, at the direction of the Committee, in 
                carrying out the Committee's duties and powers under 
                this Act.
                    (B) Executive director pay.--The Executive Director 
                shall be paid at a rate not to exceed the rate of basic 
                pay for level II of the Executive Schedule under 
                section 5313 of title 5, United States Code.
                    (C) General counsel pay.--The General Counsel shall 
                be paid at a rate not to exceed the rate of basic pay 
                for level III of the Executive Schedule under section 
                5314 of title 5, United States Code.
            (2) Staff.--
                    (A) Appointment.--Subject to rules prescribed by 
                the Committee and with the consent of the Chairman, the 
                Executive Director may appoint and fix the pay of 
                additional personnel as the Executive Director 
                considers necessary.
                    (B) Applicability of certain civil service laws.--
                Personnel appointed under subparagraph (A) shall be 
                appointed subject to the provisions of title 5, United 
                States Code, governing appointments in the competitive 
                service, and shall be paid in accordance with the 
                provisions of chapter 51 and subchapter III of chapter 
                53 of that title relating to classification and General 
                Schedule pay rates.
            (3) Critical positions.--
                    (A) Critical pay authority.--Notwithstanding 
                paragraph (2)(B) and subject to section 5377 of title 
                5, United States Code, any rules prescribed by the 
                Committee, and subparagraph (B), the Executive Director 
                may appoint and fix the pay of such individuals that 
                the Executive Director considers necessary for 
                positions designated as critical administrative, 
                technical, and professional.
                    (B) Limitation.--The number of critical positions 
                designated under subparagraph (A) may not exceed 15 
                percent of the full-time equivalent positions 
                authorized for the Committee staff.
            (4) Experts and consultants.--With the approval of the 
        Chairman, the Executive Director may procure temporary and 
        intermittent services under section 3109(b) of title 5, United 
        States Code.
    (i) Staff of Federal Agencies.--Upon request of the Committee, the 
head of any Federal department or agency may detail, on a reimbursable 
or nonreimbursable basis, any of the personnel of that department or 
agency to the Committee to assist it in carrying out its duties and 
powers under this Act.
    (j) Powers of the Committee.--
            (1) Obtaining official data.--The Committee may secure 
        directly from any department or agency of the United States, 
        designated central nonprofit agency, or qualified nonprofit 
        agency, information necessary to enable it to carry out this 
        Act. Upon request of the Chairman of the Committee, the head of 
        that department or agency shall furnish that information to the 
        Committee.
            (2) Administrative support services.--Upon the request of 
        the Committee, the Administrator of General Services shall 
        provide to the Committee, on a reimbursable basis, the 
        administrative support services necessary for the Committee to 
        carry out the duties and responsibilities of the Committee 
        under this Act.

SEC. 3. PROCUREMENT REQUIREMENTS FOR THE FEDERAL GOVERNMENT; 
              NONAPPLICATION TO PRISON MADE PRODUCTS.

    (a) Requirement.--Except as provided in subsection (b), if any 
entity of the Federal Government intends to procure any product or 
service, or any product or service that is essentially the same as a 
product or service on the procurement list, that entity shall, in 
accordance with regulations of the Committee, procure such product or 
service, at the price established by the Committee, from a qualified 
nonprofit agency for people who are blind or such an agency for people 
with other significant disabilities designated by the Committee if the 
product or service is available within the period required by that 
entity.
    (b) Exception.--This section shall not apply with respect to the 
procurement of any product that is available for procurement from an 
industry established under chapter 307 of title 18, United States Code, 
and which, under section 4124 of such title, is required to be procured 
from such industry.

SEC. 4. DUTIES OF THE COMMITTEE.

    (a) Oversight.--The Committee shall oversee and carry out a program 
under this Act to administer and implement the procurement list and 
other provisions of this Act.
    (b) Procurement List.--
            (1) In general.--The Committee shall establish and publish 
        in the Federal Register a list (in this Act referred to as the 
        ``procurement list'') that includes--
                    (A) the products produced by--
                            (i) any qualified nonprofit agency for 
                        people who are blind; or
                            (ii) any qualified nonprofit agency for 
                        people with other significant disabilities; and
                    (B) the services provided by any such agency;
        that the Committee determines are suitable for procurement by 
        the Federal Government pursuant to this Act.
            (2) Adding and removing products and services from the 
        procurement list.--Except as provided under paragraph (3), the 
        Committee may, by rule made in accordance with the requirements 
        of subsections (b), (c), (d), and (e) of section 553 of title 
        5, United States Code, add to and remove from the procurement 
        list products so produced and services so provided.
            (3) Adding products and services to the procurement list 
        for compelling need.--
                    (A) In general.--Notwithstanding subsections (b), 
                (c), (d), and (e) of section 553 of title 5, United 
                States Code, and subject to subparagraphs (B) and (C), 
                the Committee may establish a process to immediately 
                add products or services to the procurement list for a 
                period not to exceed five years if the Committee 
                determines that there is a compelling need to add such 
                products or services.
                    (B) Process.--The Committee shall ensure that any 
                process under subparagraph (A) provides, before adding 
                a product or service to the list, an opportunity for a 
                full and fair consideration of input of the responsible 
                contracting activity that includes the following:
                            (i) The capability of the proposed 
                        nonprofit agency to provide the product or 
                        service.
                            (ii) The extent to which the proposed price 
                        adequately reflects a fair market price.
                            (iii) The suitability of the product or 
                        service to the contracting activity.
                    (C) Requirements.--Any product or service that is 
                immediately added to the procurement list pursuant to 
                this paragraph--
                            (i) shall be for a contract that is valued 
                        at less than the simplified acquisition 
                        threshold annually; and
                            (ii) shall meet the requirements of 
                        paragraph (2) not later than two years after 
                        the date on which such product or service is 
                        added to the procurement list.
            (4) Designation.--In administering the procurement list, 
        the Committee shall designate which qualified nonprofit agency 
        may provide the products or services to the Federal Government 
        and may transfer the responsibility to provide such products or 
        services from any nonprofit agency to another nonprofit agency 
        if necessary, as provided by regulations.
            (5) Information campaign.--The Committee--
                    (A) shall inform Federal agencies about the 
                procurement list and the procurement requirements under 
                section 3 of this Act;
                    (B) shall encourage and assist Federal agencies to 
                identify additional products and services that would be 
                suitable to add to the procurement list; and
                    (C) shall encourage the private sector to work with 
                qualified nonprofit agencies to increase employment 
                opportunities for people who are blind or people with 
                other significant disabilities.
    (c) Fair Market Price; Price Revision.--The Committee shall--
            (1) determine the fair market price of products and 
        services that are on the procurement list and that are offered 
        for sale to the Federal Government by any qualified nonprofit 
        agency; and
            (2) revise, in accordance with changing market conditions, 
        its price determinations with respect to such products and 
        services.
    (d) Central Nonprofit Agency.--
            (1) Designation of central nonprofit agency.--To perform 
        the duties and responsibilities under paragraph (2) and any 
        other duties and responsibilities the Committee determines are 
        necessary to carry out the purposes of this Act in accordance 
        with regulations, the Committee shall designate--
                    (A) a central nonprofit agency or agencies for 
                people who are blind 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
                    (B) a central nonprofit agency or agencies for 
                people with other significant disabilities 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.
            (2) Central nonprofit agency duties.--The Committee may 
        assign to the designated central nonprofit agencies the 
        following duties and responsibilities:
                    (A) Evaluate the qualifications and capabilities of 
                the nonprofit agencies of such central nonprofit agency 
                and provide the Committee with relevant data regarding 
                such nonprofit agencies.
                    (B) Represent the nonprofit agencies of such 
                central nonprofit agency in matters before the 
                Committee.
                    (C) Obtain from Federal contracting activities such 
                procurement information as the Committee determines is 
                appropriate.
                    (D) Recommend to the Committee suitable products or 
                services to add to the procurement list.
                    (E) Recommend to the Committee--
                            (i) the initial fair market price for the 
                        products and services proposed to be added to 
                        the procurement list; and
                            (ii) price changes as market conditions 
                        change.
                    (F) Allocate, in accordance with the policy 
                guidelines of the Committee, orders for products and 
                services on the procurement list to the qualified 
                nonprofit agencies of the central nonprofit agency.
                    (G) When authorized by the Committee, enter into 
                contracts with Federal agencies to provide products or 
                services on the procurement list.
                    (H) Submit preliminary documentation and 
                information to support the qualification under section 
                5 of the nonprofit agencies of such central nonprofit 
                agency.
                    (I) Obtain and review annual qualification 
                information from the nonprofit agencies of the central 
                nonprofit agency.
                    (J) Assist the nonprofit agencies of the central 
                nonprofit agency to meet statutory, regulatory, and 
                contractual requirements.
                    (K) Assist the nonprofit agencies of the central 
                nonprofit agency to facilitate efforts to assist 
                employees who are interested to enter or retain other 
                full-time or, if appropriate, part-time competitive 
                employment in the integrated labor market or satisfy 
                the vocational outcome of self-employment.
                    (L) Perform other noninherently governmental 
                functions, at the request of the Committee or a 
                qualified nonprofit agency of the central nonprofit 
                agency.
            (3) Right of appeal.--The Committee shall require each 
        designated central nonprofit agency to implement procedures--
                    (A) that provide for a review of the decisions made 
                by the central nonprofit agency that adversely impact 
                the qualified nonprofit agency (or agency seeking 
                qualified status); and
                    (B) that include a provision for a qualified 
                nonprofit agency (or agency seeking qualified status) 
                to appeal such adverse decision to the Committee.
    (e) Regulations.--
            (1) In general.--The Committee shall prescribe regulations 
        necessary to carry out the purposes of this Act, including 
        additions, deletions, transfers, and pricing of items on the 
        procurement list and qualifications and fees of central 
        nonprofit agencies.
            (2) Priority.--The Committee shall prescribe regulations 
        providing that, in the purchase by the Federal Government of 
        products produced and offered for sale by qualified nonprofit 
        agencies for people who are blind or people with other 
        significant disabilities, priority shall be accorded to 
        products produced and offered for sale by qualified nonprofit 
        agencies for people who are blind.
            (3) Definition for compelling need.--The Committee shall 
        prescribe regulations that define ``compelling need'' for 
        purposes of section 4(b)(3).
            (4) Central nonprofit agency fee.--The Committee shall 
        prescribe regulations establishing an annual maximum ceiling 
        for a fee paid by nonprofit agencies to the central nonprofit 
        agency.
            (5) Noncompliance.--The Committee shall prescribe 
        regulations to address alleged violations of this Act and 
        regulations prescribed pursuant to this Act by central 
        nonprofit agencies and qualified nonprofit agencies, including 
        progressive sanctions and an opportunity for such agencies to 
        address and submit statements about such alleged violations to 
        the Committee.
    (f) Demonstration Project.--The Committee may conduct pilot or 
demonstration projects (on its own or in cooperation with other public, 
nonprofit agencies, or private agencies) on the following:
            (1) Methods to increase use by the Federal Government of 
        products produced and services delivered by qualified nonprofit 
        agencies throughout the Federal Government, including methods 
        to remove or mitigate any barriers or impediments to such 
        usage.
            (2) Development and adaptation of production methods that 
        would enable a greater use of people who are blind and people 
        with other significant disabilities.
    (g) Annual Report and Data Collection.--
            (1) Annual report.--The Committee shall, not later than 
        April 1 of each year, evaluate and submit to the President and 
        to Congress a report that includes the following:
                    (A) The names of the Committee members serving in 
                the preceding fiscal year.
                    (B) The dates of Committee meetings in such fiscal 
                year.
                    (C) A description of the activities of the 
                Committee under this Act in such fiscal year.
                    (D) Data regarding compliance of Federal agencies 
                with the requirements of this Act.
                    (E) An analysis of the direct and indirect effects 
                of this Act on the small business community.
                    (F) An analysis of Federal agency level of 
                performance with the requirements of section 3 of this 
                Act, including number and dollar value of contracts 
                awarded pursuant to this Act.
            (2) Data collection.--At the request of the Committee, 
        Federal agencies shall provide data to the Committee regarding 
        compliance with the requirements of this Act.
            (3) Central nonprofit agencies and qualified nonprofit 
        agency collection of data.--Central nonprofit agencies and 
        qualified nonprofit agencies shall keep records prescribed by 
        the Committee and shall participate in data collection, 
        including data required for preparation of the required 
        reports.

SEC. 5. QUALIFIED NONPROFIT AGENCY.

    (a) Qualified Nonprofit Agency.--In this Act, the term ``qualified 
nonprofit agency'' means--
            (1) a qualified nonprofit agency for people who are blind, 
        as defined in subsection (b); or
            (2) a qualified nonprofit agency for people with other 
        significant disabilities, as defined in subsection (c).
    (b) Qualified Nonprofit Agency for People Who Are Blind.--
            (1) In general.--In this Act, the term ``qualified 
        nonprofit agency for people who are blind'' means a nonprofit 
        agency for people who are blind that--
                    (A) meets the initial qualification requirement 
                under paragraph (2) and maintains qualification under 
                paragraph (3) where applicable;
                    (B) provides employment for people who are blind; 
                and
                    (C) complies with all other regulations for 
                qualified nonprofit agencies prescribed by the 
                Committee.
            (2) Initial qualification.--In order to meet the initial 
        qualification requirement under this paragraph, a nonprofit 
        agency for people who are blind must submit a certification to 
        the Committee through the central nonprofit agency that 
        includes the following assurances:
                    (A) Such nonprofit agency is organized under the 
                laws of the United States or of a State.
                    (B) Such nonprofit agency is operated in the best 
                interest of people who are blind.
                    (C) The net income of such nonprofit agency does 
                not inure in whole or in part to the benefit of any 
                shareholder or other individual.
                    (D) Such nonprofit agency uses sound organizational 
                and personnel assignment practices, including making 
                nondiscriminatory decisions to employ and advance in 
                employment qualified people who are blind.
                    (E) Such nonprofit agency practices sound fiscal 
                management in accordance with generally accepted 
                accounting principles.
            (3) Maintenance of qualification.--In order to maintain 
        qualification under this paragraph, a nonprofit agency for 
        people who are blind must meet each of the following 
        requirements:
                    (A) Maintain all qualifications necessary for 
                initial qualification.
                    (B) Furnish products and services in accordance 
                with Federal Government contracts.
                    (C) Comply with applicable Federal procurement 
                standards, compensation, employment, and occupational 
                health and safety standards, including procedures to 
                encourage filling of vacancies within the agency by 
                promotion of qualified employees who are blind.
                    (D) Comply with regulations prescribed by the 
                Committee.
                    (E) Make the records of the nonprofit agency 
                available for review and inspection by the Committee or 
                the designated central nonprofit agency.
                    (F) Upon receipt of payment by the Federal agency 
                for products or services provided under contracts 
                awarded to qualified nonprofit agencies pursuant to 
                this Act, pay to the central nonprofit agency a fee not 
                to exceed the fee ceiling established by the Committee.
                    (G) Employ people who are blind for not less than 
                75 percent of the employment hours required for 
                products or services provided under contracts awarded 
                to qualified nonprofit agencies pursuant to this Act, 
                except as provided for under paragraph (4).
            (4) Waiver for employment requirement.--
                    (A) Waiver.--The Committee may waive the 
                requirement under paragraph (3)(I) for a nonprofit 
                agency for people who are blind if the Committee 
                determines that--
                            (i) the nonprofit agency employs people who 
                        are blind at a percentage less than 75 percent 
                        of the employment hours, but not less than 51 
                        percent of the employment hours; and
                            (ii) the--
                                    (I) nonprofit agency is temporarily 
                                unable to meet the 75 percent 
                                requirement due to an emergency or 
                                extraordinary circumstance;
                                    (II) particular product or service 
                                is significantly complex as to make it 
                                unlikely that the nonprofit agency can 
                                meet the 75 percent employment hour 
                                requirement; or
                                    (III) nonprofit agency could employ 
                                a substantial number of people who have 
                                the most significant productivity 
                                challenges at wages at or above the 
                                applicable Federal or State minimum 
                                wage for the particular product or 
                                service.
                    (B) Regulations.--The Committee shall prescribe 
                regulations on the process and the factors that 
                determine whether to exercise the waiver authority 
                under this paragraph.
            (5) Report.--A qualified nonprofit agency for people who 
        are blind shall prepare and submit to the Committee, through 
        the applicable central nonprofit agency, a report by December 
        31 of each year that contains the following:
                    (A) The number of people who are blind that 
                provided products or services provided under contracts 
                awarded to qualified nonprofit agencies pursuant to 
                this Act for the previous fiscal year.
                    (B) The number of people who are blind that 
                received training, technical assistance, or other 
                employment services facilitated by the agency pursuant 
                to this Act.
                    (C) The number of people who are blind who are in 
                management positions or other positions within the 
                agency with decision-making authority as set forth in 
                the Committee regulations.
    (c) Qualified Nonprofit Agency for People With Other Significant 
Disabilities.--
            (1) In general.--In this Act, the term ``qualified 
        nonprofit agency for people with other significant 
        disabilities'' means a nonprofit agency for people with other 
        significant disabilities that--
                    (A) meets the initial qualification requirement 
                under paragraph (2) and maintains qualification under 
                paragraph (3) where applicable;
                    (B) provides employment for people with other 
                significant disabilities;
                    (C) may provide employment for people who are 
                blind; and
                    (D) complies with all other regulations for 
                qualified nonprofit agencies prescribed by the 
                Committee.
            (2) Initial qualification.--In order to meet the initial 
        qualification requirement under this paragraph, a nonprofit 
        agency for people with other significant disabilities must 
        submit a certification to the Committee through the central 
        nonprofit agency that includes the following assurances:
                    (A) Such nonprofit agency is organized under the 
                laws of the United States or of a State.
                    (B) Such nonprofit agency is operated in the best 
                interest of people with other significant disabilities.
                    (C) The net income of such nonprofit agency does 
                not inure in whole or in part to the benefit of any 
                shareholder or other individual.
                    (D) Such nonprofit agency uses sound organizational 
                and personnel assignment practices, including making 
                nondiscriminatory decisions to employ and advance in 
                employment qualified people with other significant 
                disabilities.
                    (E) Such nonprofit agency practices sound fiscal 
                management in accordance with generally accepted 
                accounting principles.
            (3) Maintenance of qualification.--In order to maintain 
        qualification under this paragraph, a nonprofit agency for 
        people with other significant disabilities must meet each of 
        the following requirements:
                    (A) Maintain all qualifications necessary for 
                initial qualification.
                    (B) Furnish products and services in accordance 
                with Federal Government contracts.
                    (C) Comply with applicable Federal procurement 
                standards, compensation, employment, and occupational 
                health and safety standards, including procedures to 
                encourage filling of vacancies within the agency by 
                promotion of qualified people with other significant 
                disabilities.
                    (D) Comply with regulations prescribed by the 
                Committee.
                    (E) Make the records of the nonprofit agency 
                available for review and inspection by the Committee or 
                the designated central nonprofit agency.
                    (F) Upon receipt of payment by the Federal agency 
                for products or services provided under contracts 
                awarded to qualified nonprofit agencies pursuant to 
                this Act, pay to the central nonprofit agency a fee not 
                to exceed the fee ceiling established by the Committee.
                    (G) Employ people with other significant 
                disabilities for not less than 75 percent of the 
                employment hours required for products or services 
                provided under contracts awarded to qualified nonprofit 
                agencies pursuant to this Act, except as provided for 
                under paragraph (4).
            (4) Waiver for employment requirement.--
                    (A) Waiver.--The Committee may waive the 
                requirement under paragraph (3)(I) for a nonprofit 
                agency for people with other significant disabilities 
                if the Committee determines that--
                            (i) the nonprofit agency employs people 
                        with other significant disabilities at a 
                        percentage less than 75 percent of the 
                        employment hours, but not less than 51 percent 
                        of the employment hours; and
                            (ii) the--
                                    (I) nonprofit agency is temporarily 
                                unable to meet the 75 percent 
                                requirement due to an emergency or 
                                extraordinary circumstance;
                                    (II) particular product or service 
                                is significantly complex as to make it 
                                unlikely that the nonprofit agency can 
                                meet the 75 percent employment hour 
                                requirement; or
                                    (III) nonprofit agency could employ 
                                a substantial number of people who have 
                                the most significant productivity 
                                challenges at wages at or above the 
                                applicable Federal or State minimum 
                                wage for the particular product or 
                                service.
                    (B) Regulations.--The Committee shall prescribe 
                regulations on the process and the factors that 
                determine whether to exercise the waiver authority 
                under this paragraph.
            (5) Report.--A qualified nonprofit agency for people with 
        other significant disabilities shall prepare and submit, 
        through the applicable central nonprofit agency, to the 
        Committee a report by December 31 of each year that contains 
        the following:
                    (A) The number of people with other significant 
                disabilities that provided products or services 
                provided under contracts awarded to qualified nonprofit 
                agencies pursuant to this Act for the previous year.
                    (B) The number of people with other significant 
                disabilities that received training, technical 
                assistance, or other employment services facilitated by 
                the agency pursuant to this Act.
                    (C) The number of people with other significant 
                disabilities who are in management positions or other 
                positions within the agency with decision-making 
                authority as set forth in the Committee regulations.

SEC. 6. AUDIT.

    The Comptroller General of the United States, or a duly authorized 
representative, shall have access, for the purpose of audit and 
examination, to any books, documents, papers, and other records of the 
Committee and of each central nonprofit agency designated by the 
Committee under this Act. This section shall also apply to any 
qualified nonprofit agency for people who are blind and any such agency 
for people with other significant disabilities that have sold products 
or services under this Act but only with respect to the books, 
documents, papers, and other records of such agency which relate to its 
activities in a fiscal year in which a sale was made under this Act.

SEC. 7. ESTABLISHMENT OF INSPECTOR GENERAL FOR COMMITTEE FOR PURCHASE 
              FROM PEOPLE WHO ARE BLIND OR PEOPLE WITH OTHER 
              SIGNIFICANT DISABILITIES.

    (a) Establishment.--Section 8G(a)(2) of the Inspector General Act 
of 1978 (5 U.S.C. App.) is amended by adding after ``the Board for 
International Broadcasting,'' the following: ``Committee for Purchase 
From People Who Are Blind or People With Other Significant 
Disabilities,''.
    (b) Appointment.--The Chairman of the Committee shall appoint an 
Inspector General for the Committee not later than one year after the 
date of the enactment of this Act.
    (c) Authority To Investigate Federal Agency Compliance.--The 
Inspector General of the Committee for Purchase From People Who Are 
Blind or People With Other Significant Disabilities, in consultation 
with other inspectors general, may investigate Federal agency 
compliance with this Act.

SEC. 8. PANEL ON THE COMMITTEE AND FEDERAL PROCUREMENT.

    (a) Establishment.--The Chairman of the Committee shall establish a 
panel to be known as the ``Panel on the Committee for Purchase From 
People Who Are Blind or People With Other Significant Disabilities and 
Federal Procurement'' (in this section referred to as the ``Panel'').
    (b) Composition.--The Panel shall be composed of representatives as 
follows:
            (1) A representative of the Committee appointed by the 
        Chairman, who shall be Co-Chairman of the Panel.
            (2) The Under Secretary of Defense for Acquisition, 
        Technology, and Logistics, who shall serve as Co-Chairman of 
        the Panel.
            (3) A representative of the Office for Federal Procurement 
        Policy.
            (4) The chief acquisition officer of the Department of 
        Veterans Affairs.
            (5) The chief acquisition officer of the Department of 
        Homeland Security.
            (6) The chief acquisition officer of the Department of the 
        Interior.
            (7) The chief acquisition officer of the General Services 
        Administration.
            (8) The chief acquisition officer of the National 
        Aeronautics and Space Administration.
            (9) The chief acquisition officer of the Department of 
        Agriculture.
            (10) Such other representatives as the Chairman of the 
        Committee determines is appropriate.
    (c) Duties of the Panel.--The duties of the Panel shall be to--
            (1) complete any matters assigned by the Chairman of the 
        Committee;
            (2) review the actions taken by the Committee with regard 
        to the procurement requirement under section 3 of this Act, 
        review Federal agency compliance with such requirement, and 
        recommend, if necessary, legislation, regulations, policy, or 
        infrastructure to increase employment of people who are blind 
        or people with other significant disabilities through such 
        requirement;
            (3) review progress made by the Committee and Federal 
        agencies to increase employment for United States citizens who 
        are people who are blind or people with other significant 
        disabilities through the requirement under section 3;
            (4) recommend changes to the procurement practices of 
        Federal agencies through proposed legislation, regulations, 
        policy, and infrastructure that will increase employment of 
        people who are blind or people with other significant 
        disabilities; and
            (5) recommend education and awareness of procurement 
        officials regarding the requirement under section 3.
    (d) Meetings.--The Panel shall meet as determined necessary by the 
Chairmen of the Panel, but not less than once every month.
    (e) Report.--Not later than 6 months after the date of the 
enactment of this Act, the Panel shall prepare and submit to the 
Chairman of the Committee and the Congress a report on the activities 
of the Panel, including a summary of the findings and recommendations 
of the Panel for the fiscal year covered by the report.
    (f) Termination.--The Panel shall terminate on the date on which 
the report is submitted pursuant to subsection (e).

SEC. 9. DEFINITIONS.

    In this Act:
            (1) Central nonprofit agency.--The term ``central nonprofit 
        agency'' means a central nonprofit agency designated under 
        section 4(d).
            (2) Employment hours.--The term ``employment hours'' 
        includes all work required for preparation, processing, 
        packing, and distribution of a product, or work directly 
        relating to the performance of a service, and may include 
        employment hours for supervision, administration, inspection, 
        shipping, or other directly allocable services, only when the 
        individual whose direct employment hours of supervision, 
        administration, inspection, shipping, or other directly 
        allocable services being counted, meets the definition of 
        ``people who are blind'' or ``people with other significant 
        disabilities''.
            (3) Federal government.--The term ``Federal Government'' 
        includes any entity of the legislative branch or the judicial 
        branch, any executive agency or military department (as such 
        agency and department are respectively defined by sections 102 
        and 105 of title 5, United States Code), the United States 
        Postal Service, and any nonappropriated fund instrumentality 
        under the jurisdiction of the Armed Forces.
            (4) Major life activity.--The term ``major life activity'' 
        includes mobility, communication, self-care, self-direction, 
        work tolerance, or work skills.
            (5) People who are blind.--The term ``people who are 
        blind'' means an individual or class of individuals whose 
        central visual acuity does not exceed 20/200 in the better eye 
        with correcting lenses or whose visual acuity, if better than 
        20/200, is accompanied by a limit to the field of vision in the 
        better eye to such a degree that its widest diameter subtends 
        an angle of no greater than 20 degrees.
            (6) People with other significant disabilities.--The term 
        ``people with other significant disabilities'' means an 
        individual or class of individuals with a physical or mental 
        impairment or combination of impairments, other than people who 
        are blind, for whom competitive employment has not occurred or 
        currently is not occurring as demonstrated by--
                    (A) a work function barrier or employment activity 
                limitation, including the need for services or support 
                on an ongoing basis, or on a recurrent basis to the 
                degree that manifestation of the impairment is 
                episodic, over an extended period of time; and
                    (B) substantial limitation of two or more major 
                life activities.
            (7) Qualified nonprofit agency.--The term ``qualified 
        nonprofit agency'' has the meaning given that term in section 
        5.
            (8) Simplified acquisition threshold.--The term 
        ``simplified acquisition threshold'' has the meaning given that 
        term in section 4 of the Office of Federal Procurement Policy 
        Act (41 U.S.C. 403).
            (9) State.--The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, the Trust 
        Territory of the Pacific Islands, and any other territory or 
        possession of the United States.

SEC. 10. SENSE OF CONGRESS.

    It is the sense of Congress that the term ``people with other 
significant disabilities'' maintains (neither expands nor narrows) 
eligibility under this Act for ``other severely handicapped'' and 
``severely handicapped individuals'', as such terms are defined in the 
Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.), as in existence before 
the date of the enactment of this Act.

SEC. 11. COMMITTEE FOR PURCHASE FUND.

    (a) Establishment of Fund.--There is established in the Treasury of 
the United States a separate account for the deposit of fees under this 
Act to be known as the Committee for Purchase Fund.
    (b) Assessment and Collection of Committee Fees.--The Committee 
shall assess and collect each year, in accordance with this section, 
fees from each central nonprofit agency for an amount as needed that is 
not more than 5 percent of the fees collected by such central nonprofit 
agency from qualified nonprofit agencies.
    (c) Deposit.--The Secretary shall deposit any fees collected 
pursuant to subsection (b) into the Committee for Purchase Fund 
established by subsection (a).
    (d) Use of Funds.--
            (1) In general.--Amounts in the Committee for Purchase Fund 
        shall be immediately available to the Committee, and shall 
        remain available until expended, for--
                    (A) the payment of employees for oversight and 
                compliance purposes; and
                    (B) to provide for the Inspector General 
                established pursuant to section 7.
            (2) Fees not government funds.--Funds obtained by, 
        transferred to, or credited to the Committee for Purchase Fund 
        shall not be construed to be Government funds or appropriated 
        monies.
            (3) Amounts not subject to apportionment.--Notwithstanding 
        any other provision of law, amounts in the Committee for 
        Purchase Fund shall not be subject to apportionment for 
        purposes of chapter 15 of title 31, United States Code, or 
        under any other authority, or for any other purpose.
    (e) Regulations.--Not later than 9 months after the date of the 
enactment of this Act, the Committee shall prescribe regulations 
governing the collection and payment of fees pursuant to this section.

SEC. 12. CONFORMING REPEAL.

    The Javits-Wagner-O'Day Act (41 U.S.C. 46 et seq.) is repealed.
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