I 

108TH CONGRESS 

2D SESSION H. R. 5386 

To amend title 18, United States Code, to reform Federal Prison Industries, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 18, 2004 

Mr. CONYERS introduced the following bill; which was referred to the 

Committee on the Judiciary 

A BILL 

To amend title 18, United States Code, to reform Federal 

Prison Industries, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Fair Access and Indi5 vidual Responsibilities Act of 2004’’. 

6 SEC. 2. INDUSTRIAL OPERATIONS IN FEDERAL PRISONS. 

7 (a) BOARD OF DIRECTORS.—Section 4121 of title 18, 

8 United States Code, is amended by striking all after the 

9 section heading and inserting the following: 
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1 ‘‘(a) ESTABLISHMENT.—Federal Prison Industries is 

2 a government corporation of the District of Columbia. 

3 ‘‘(b) BOARD.— 

4 ‘‘(1) IN GENERAL.—Federal Prison Industries 

5 is administered by a board of directors, composed of 

6 12 directors appointed by the Attorney General, of 

7 which 4 shall be appointed as follows: 

8 ‘‘(A) 1 director upon the recommendation 

9 of the Speaker of the House of Representatives. 

10 ‘‘(B) 1 director upon the recommendation 

11 of the minority leader of the House of Rep12 resentatives. 

13 ‘‘(C) 1 director upon the recommendation 

14 of the majority leader of the Senate. 

15 ‘‘(D) 1 director upon the recommendation 

16 of the minority leader of the Senate. 

17 ‘‘(2) TERM.—A director shall be appointed to a 

18 term of 4 years and may be reappointed. 

19 ‘‘(3) COMPENSATION.—A director shall serve 

20 without compensation. 

21 ‘‘(c) DUTY.—The duty of the board shall be to carry 

22 on and facilitate such industrial operations in Federal cor23 rectional institutions as the Attorney General determines. 
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1 ‘‘(d) CHIEF EXECUTIVE OFFICER.—The Director of 

2 the Bureau of Prisons shall serve as chief executive officer 

3 of the corporation. 

4 ‘‘(e) INDEPENDENT REVIEW PANEL.— 

5 ‘‘(1) IN GENERAL.—The Attorney General shall 

6 appoint an independent review panel to advise the 

7 board of directors regarding the type and quantity 

8 of products to be produced by Federal Prison Indus9 tries and conditions of hire and work consistent with 

10 this chapter. 

11 ‘‘(2) MEMBERS.—The panel shall be comprised 

12 of— 

13 ‘‘(A) 1 member representing the Depart14 ment of Commerce; 

15 ‘‘(B) 1 member representing the Depart16 ment of Labor; 

17 ‘‘(C) 1 member representing the Depart18 ment of the Treasury; 

19 ‘‘(D) 1 member representing the Inter20 national Trade Commission; 

21 ‘‘(E) 1 member representing the Small 

22 Business Association; 

23 ‘‘(F) 1 member representing the Economic 

24 Development Administration; 
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1 ‘‘(G) 1 member representing the business 

2 community; 

3 ‘‘(H) 1 member representing organized 

4 labor; 

5 ‘‘(I) 1 member representing taxpayers; 

6 ‘‘(J) 1 member representing crime victims; 

7 ‘‘(K) 1 member representing the Depart8 ment of Health and Human Services Office of 

9 Child Support Enforcement; 

10 ‘‘(L) 1 member representing minorities 

11 overrepresented in prison populations; 

12 ‘‘(M) not less than 2 members rep13 resenting, and appointed from among, inmates 

14 working in Federal Prison Industries; and 

15 ‘‘(N) such other members as the Attorney 

16 General considers appropriate. 

17 ‘‘(3) COMPENSATION.—Members of the panel 

18 shall serve without compensation. 

19 ‘‘(4) INAPPLICABILITY OF FACA.—The Federal 

20 Advisory Committee Act shall not apply with respect 

21 to the panel.’’. 

22 (b) ADMINISTRATION.—Section 4122 of title 18, 

23 United States Code, is amended by striking all after the 

24 section heading and inserting the following: 
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1 ‘‘(a) IN GENERAL.—The Attorney General shall de2 termine in what manner and to what extent industrial op3 erations shall be carried on in Federal correctional institu4 tions. 

5 ‘‘(b) OBJECTIVES.—The Attorney General shall con6 duct such operations so as to maximize— 

7 ‘‘(1) the productivity, legal income, and finan8 cial responsibility of every Federal corrections in9 mate; 

10 ‘‘(2) the unsubsidized competitive opportunities 

11 of industrial operations in Federal correctional insti12 tutions; and 

13 ‘‘(3) the profit opportunities of private and non14 profit firms employing inmates in Federal correc15 tional institutions, within the rules of the normal 

16 competitive economy and subject to the requirements 

17 of safe and secure correctional facilities. 

18 ‘‘(c) RESPONSIBILITIES.—Within requirements of 

19 safety and security, the Attorney General shall be respon20 sible for protecting and facilitating the participation rights 

21 of each Federal corrections inmate as well as for facili22 tating the ability of each inmate to meet that inmate’s 

23 financial responsibilities through successful competitive 

24 participation in the economy of the United States. 
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1 ‘‘(d) AVAILABILITY OF OPPORTUNITIES.—The Attor2 ney General shall endeavor to make available to inmates 

3 who have been committed to the custody of the Bureau 

4 of Prisons opportunities, free from discrimination, to work 

5 or be employed in a Federal Prison Industries shop. 

6 ‘‘(e) STANDARDS.—The Attorney General may set 

7 standards regarding education and conduct for those in8 mates who work in a Federal Prison Industries shop. 

9 ‘‘(f) VOLUNTARY MOVEMENT.—Except where safety 

10 and security of individual inmates requires exception, the 

11 voluntary movement of inmates among classes of institu12 tional maintenance, work, or employment shall not be in13 hibited.’’. 

14 SEC. 3. INDUSTRY CLASSES. 

15 (a) PURCHASE OF PRISON-MADE PRODUCTS BY

16 FEDERAL DEPARTMENTS.—Section 4124 of title 18, 

17 United States Code, is amended by striking ‘‘products of 

18 the industries authorized by this chapter’’ and inserting 

19 ‘‘products of Class A industries authorized by this chap20 ter’’. 

21 (b) CLASSES A, B, C, AND D.—(1) Chapter 307 of 

22 title 18, United States Code, is amended by adding after 

23 section 4124 the following new sections: 
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1 ‘‘§ 4124A. Class A industries 

2 ‘‘(a) DEFINITION.—In this chapter, a Class A indus3 try is an industry established under this chapter as of De4 cember 31, 2002. 

5 ‘‘(b) LIMITATIONS ON NUMBER OF WORKERS.—The 

6 number of inmates working in Class A industries may not 

7 exceed— 

8 ‘‘(1) the number of inmates working in Class A 

9 industries as of December 31, 2002, during the pe10 riod beginning on the date of the enactment of this 

11 section and ending on December 31, 2015; 

12 ‘‘(2) 75 percent of the number referred to in 

13 paragraph (1), during the period beginning on Janu14 ary 1, 2016, and ending on December 31, 2020; and 

15 ‘‘(3) 50 percent of the number referred to in 

16 paragraph (1), after December 31, 2020. 

17 ‘‘(c) LIMITATIONS ON PERCENTAGE OF WORKERS.— 

18 Of the total population of inmates, the percentage who 

19 work in Class A industries may not exceed— 

20 ‘‘(1) the percentage who worked in Class A in21 dustries as of December 31, 2002, during the period 

22 beginning on the date of the enactment of this sec23 tion and ending on December 31, 2015; 

24 ‘‘(2) 75 percent of the percentage referred to in 

25 paragraph (1), during the period beginning on Janu26 ary 1, 2016, and ending on December 31, 2020; and 
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1 ‘‘(3) 50 percent of the percentage referred to in 

2 paragraph (1), after December 31, 2020. 

3 ‘‘(d) LIMITATION ON INDUSTRIES.—The types of in4 dustries in Class A industries may not expand beyond the 

5 industries in existence as of December 31, 2002. 

6 ‘‘§ 4124B. Class B industries 

7 ‘‘(a) DEFINITION.—In this chapter, a Class B indus8 try is an industry established on or after January 1, 2005, 

9 that meets the requirements of subsection (b). 

10 ‘‘(b) REQUIREMENTS.—An industry meets the re11 quirements of this subsection if, and only if, it meets the 

12 following requirements: 

13 ‘‘(1) It is carried out by a competitive entity 

14 unrelated to a Class A industry that produces goods 

15 or services for sale in government or open markets, 

16 including in interstate and international commerce. 

17 ‘‘(2) The entity is an independent taxpaying 

18 unit subject to all opportunities and obligations af19 fecting a similarly located private firm. 

20 ‘‘(3) All civilian and inmate workers of the enti21 ty are identically covered under wage and benefit 

22 plans and all Federal and applicable State and local 

23 laws covering civilian employees, including but not 

24 limited to all provisions of the Fair Labor Standards 

25 Act, the National Labor Relations Act, the Ameri-
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1 cans With Disabilities Act, and health and safety 

2 standards affecting private firms. 

3 ‘‘(4) The entity is subject to all license, permit, 

4 and tax obligations of a similarly located private 

5 firm. 

6 ‘‘(5) Any land, buildings, capital equipment, 

7 utilities, services, or staff assistance (except secu8 rity) owned or provided to the entity by Federal 

9 Prison Industries are obtained in an arms-length, 

10 open, competitive bidding process maximizing re11 turns to taxpayers. 

12 ‘‘(6) The entity does not receive from Federal 

13 Prison Industries any implicit or explicit subsidy not 

14 equivalently offered to other firms. 

15 ‘‘(7) The entity, before engaging in a business, 

16 offers for competitive bid all resources, including op17 portunities to recruit inmate employees, to firms in 

18 the locale engaged in the proposed line of business. 

19 ‘‘(8) Mandatory preference does not apply to 

20 the entity. 

21 ‘‘§ 4124C. Class C industries 

22 ‘‘(a) DEFINITION.—In this chapter, a Class C indus23 try is an industry established on or after January 1, 2005, 

24 that meets the requirements of subsection (b). 
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1 ‘‘(b) REQUIREMENTS.—An industry meets the re2 quirements of this subsection if, and only if, it meets the 

3 following requirements: 

4 ‘‘(1) It is carried out by a private entity located 

5 in a Federal correctional institution that produces 

6 goods or services for sale in government or open 

7 markets, including in interstate and international 

8 commerce. 

9 ‘‘(2) The entity employs convicts or prisoners 

10 who meet the requirements of each paragraph of 

11 section 1761(c) of this title. 

12 ‘‘(3) The entity meets the same requirements 

13 that an entity must meet for participation in the 

14 State Prison Industry Enhancement Certification 

15 program of the Department of Justice. 

16 ‘‘(4) The entity meets any other requirements 

17 that the Federal Bureau of Prisons may prescribe 

18 under subsection (c). 

19 ‘‘(c) BOP REQUIREMENTS.— 

20 ‘‘(1) IN GENERAL.—The Federal Bureau of 

21 Prisons shall prescribe the other requirements re22 ferred to in subsection (b)(4). The first such require23 ments shall be published not later than 180 days 

24 after the date of the enactment of this section. 
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1 ‘‘(2) LIMITATIONS.—The requirements shall be 

2 designed to maximize opportunities for private and 

3 nonprofit firms to compete for efficient operations in 

4 Federal correctional facilities while maintaining nec5 essary security. The requirements shall ensure that 

6 a Class C industry may be established, invested in, 

7 or participated in, by inmates, so long as— 

8 ‘‘(A) normal conditions of law are met; 

9 ‘‘(B) the business or investment poses no 

10 significant threat to the safety or security of 

11 the institution; and 

12 ‘‘(C) inmate entrepreneurs and managers 

13 exercise no notable control or influence over em14 ployed inmates outside the workplace. 

15 ‘‘§ 4124D. Class D industries 

16 ‘‘(a) DEFINITION.—In this chapter, a Class D indus17 try is a pilot industry that is created for purposes of test18 ing reform of inmate employment and prison industries 

19 and that meets the requirements of subsection (b). 

20 ‘‘(b) REQUIREMENTS.—An industry meets the re21 quirements of this subsection if, and only if, it meets the 

22 following requirements: 

23 ‘‘(1) Inmate participation is voluntary. 

24 ‘‘(2) The entity carrying out the industry meets 

25 all health and safety regulations. 
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1 ‘‘(3) The Attorney General determines that the 

2 industry is safe, fair, and devised to increase inmate 

3 economic well-being. 

4 ‘‘(4) It is a legitimate test industry meant to be 

5 preliminary to wider application or for purposes of 

6 determining whether there should be a proposed 

7 change in law. 

8 ‘‘(5) The entity carrying out the industry has 

9 adequate public oversight and independent evalua10 tion. 

11 ‘‘(c) BOP REQUIREMENTS.—The Federal Bureau of 

12 Prisons may establish up to 20 separate Class D indus13 tries, employing no more than a cumulative total of 2000 

14 inmates over the life of the Class D industry program. 

15 ‘‘(d) RELATIONSHIP TO CLASS A, B, AND C INDUS16 TRIES.—Class D industries do not have to comply with 

17 the requirements of class A, B, and C industries, as set 

18 forth in sections 4124A, 4124B, and 4124C. 

19 ‘‘(e) TERMINATION.—The Class D industries pro20 gram shall terminate on December 31, 2020. 

21 ‘‘§ 4124E. Other industries prohibited 

22 ‘‘An industry may not be established under this chap23 ter unless it is a Class A industry under section 4124A, 

24 a Class B industry under section 4124B, a Class C indus-
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1 try under section 4124C, or a Class D industry under sec2 tion 4124D.’’. 

3 (2) The table of sections at the beginning of such 

4 chapter is amended by adding at the end the following 

5 new items: 

‘‘4124A. Class A industries. 

‘‘4124B. Class B industries. 

‘‘4124C. Class C industries. 

‘‘4124D. Class D industries. 

‘‘4124E. Other industries prohibited.’’. 

6 SEC. 4. REPEAL OF MANDATORY SOURCE PROVISIONS. 

7 Section 4124 of title 18, United States Code, is 

8 amended by adding at the end the following new sub9 section: 

10 ‘‘(e)(1) Except as provided in paragraph (2), this sec11 tion shall not apply after December 31, 2010. 

12 ‘‘(2) This section shall apply with respect to Federal 

13 Prison Industries at a specific correctional facility for a 

14 period not exceeding 2 years after December 31, 2010, 

15 if the Attorney General— 

16 ‘‘(A) certifies that national security or security 

17 of the facility would be endangered if the section 

18 ceased to apply with respect to the facility; and 

19 ‘‘(B) publishes a plan for the elimination, by 

20 the end of the period for which the applicability is 

21 extended under this paragraph, of the conditions 

22 causing the endangerment of national security or se23 curity of the facility.’’. 
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1 SEC. 5. INMATE WAGE RATES. 

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

3 States Code, is amended by adding after section 4124E 

4 (as added by section 3) the following new section: 

5 ‘‘§ 4124F. Wage rates 

6 ‘‘(a) IN GENERAL.—Within the requirements of safe 

7 and secure confinement, the Attorney General shall modify 

8 correctional practices to improve the attractiveness and 

9 business efficiency of Federal correctional facilities to en10 sure maximum employment of inmates at prevailing 

11 wages. 

12 ‘‘(b) PREVAILING WAGE.—A Federal inmate em13 ployed in a Class B industry or a Class C industry, and 

14 a State or local inmate employed in connection with the 

15 Prison Industry Enhancement Certification program of 

16 the Department of Justice, shall be paid at a wage not 

17 less than the prevailing wage in the locality, except—

18 ‘‘(1) to the degree the productivity of individual 

19 inmates or subgroups of inmates can be reasonably 

20 demonstrated to lag that of civilian workers in the 

21 locality, and then only for the period during which 

22 their productivity lags, as demonstrated on an an23 nual basis and certified by the Department of Em24 ployment Services in the host State; or 

25 ‘‘(2) to the degree unavoidable inefficiencies or 

26 risks of operating in a correctional setting deter a 
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1 facility’s hiring inmates at prevailing wages, as evi2 denced by its inability to attract enough firms to 

3 employ 50 inmates at prevailing wages, provided 

4 that—

5 ‘‘(A) the reduction in any inmate’s wage is 

6 no more than 50 percent of the difference be7 tween the Federal minimum wage and the de8 termined prevailing wage; 

9 ‘‘(B) the full value of the reduction, to the 

10 limit of the prescribed deduction, is credited to 

11 the inmate in lieu of deductions for board and 

12 room; 

13 ‘‘(C) the inefficiencies, efforts to mitigate 

14 them, and justifications for their persistence are 

15 documented and published; and 

16 ‘‘(D) the inefficiency is certified annually 

17 by the Attorney General or a State attorney 

18 general; or 

19 ‘‘(3) during the first 24 months of a new firm 

20 or new Class B industry’s operation in a correctional 

21 facility. 

22 ‘‘(c) REASONABLE MEASURES.—In all instances jus23 tifying sub-prevailing wages because of reduced produc24 tivity, the host correctional facility will have in place rea25 sonable measures including, but not limited to, access to 
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1 education and appropriate training, to increase the pro2 ductivity of the affected inmates. 

3 ‘‘(d) NOTICE.—No facility may contract with or es4 tablish a firm employing inmates at less than prevailing 

5 wages unless it has first by public notice in the Federal 

6 Register and by other effective means offered opportuni7 ties to all firms to compete for employment of inmates 

8 at the facility.’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 at the beginning of such chapter is amended by inserting 

11 after the item relating to section 4124E (as added by sec12 tion 3) the following new item:

‘‘4124F. Wage rates.’’.

13 SEC. 6. INCENTIVES TO TRADE ORGANIZATIONS AND NON14 PROFITS. 

15 (a) IN GENERAL.—From amounts made available to 

16 carry out this section, the Attorney General may make 

17 matching grants to business trade organizations, labor or18 ganizations, and human rights and non-profit organiza19 tions to attract firms and create business entities in Fed20 eral and State correctional settings. 

21 (b) PURPOSE.—The purpose of a matching grant 

22 under subsection (a) shall be to encourage investment and 

23 innovation in bringing inmates into successful open mar24 ket employment. 
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1 (c) GRANT AMOUNTS AND TERMS.—A matching 

2 grant under subsection (a) may be made for not more than 

3 five years, in an amount not to exceed $200,000 per year. 

4 (d) SET-ASIDE.—Not less than 20 percent of 

5 amounts made available to carry out this section shall be 

6 used for research and evaluation. 

7 SEC. 7. INMATE FINANCIAL RESPONSIBILITIES. 

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

9 States Code, is amended by adding after section 4124F 

10 (as added by section 5) the following new section: 

11 ‘‘§ 4124G. Inmate financial responsibilities 

12 ‘‘(a) IN GENERAL.—The Attorney General shall fa13 cilitate the success of each inmate in meeting reasonably 

14 proportioned financial obligations to the victims of that 

15 inmate, the children and family of that inmate, to tax16 payers, and the inmate individually. In particular, the Di17 rector of the Bureau of Prisons shall coordinate with 

18 working inmates and courts, family services, and offices 

19 of child support enforcement to ensure victim compensa20 tion, restitution, family support, establishment of pater21 nity and reasonable child support orders, payment toward 

22 any other court-ordered obligations, to contribute toward 

23 the costs of incarceration, as well as for reasonable actions 

24 to encourage prudent purchasing, saving, and investment 

25 by inmates. 
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1 ‘‘(b) CLASS B DEDUCTIONS.—Deductions may be 

2 made from the earnings of an inmate in a Class B indus3 try only for taxes and normal payroll deductions, court4 ordered deductions for any purpose, victim compensation, 

5 restitution, family support, child and family support, and 

6 contributions to costs of incarceration. Deductions may 

7 not, in total, exceed 80 percent of gross pay. No deduction 

8 from any inmate’s earnings for costs of incarceration, vic9 tim compensation, or restitution can exceed the aggregate 

10 average rate of deductions for family or child support. The 

11 Attorney General may require and monitor savings, and 

12 Federal Prison Industries shall encourage prudent inter13 est-earning savings. Inmates shall have full access to Fed14 eral Prisons credit union savings or investment accounts 

15 on terms identical to those offered civilian employees for 

16 all required savings. Although savings may be required 

17 from the 20 percent of gross income remaining for the 

18 inmate, at least half of the remainder shall be held exempt 

19 from any deduction ordered by Federal Prison Industries 

20 or any court and will accrue solely to the discretion of the 

21 inmate wage earner. Records of all deductions will be 

22 maintained by category and compiled annually for public 

23 release. 

24 ‘‘(c) CLASS C DEDUCTIONS.—Deductions may be 

25 made from the earnings of an inmate in a Class C industry 
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1 in the same manner as deductions may be made from the 

2 earnings of an inmate in a Prison Industry Enhancement 

3 Certification program of the Department of Justice.’’. 

4 (b) CLERICAL AMENDMENT.—The table of sections 

5 at the beginning of such chapter is amended by adding 

6 after the item relating to section 4124F (as added by sec7 tion 5) the following new item:

‘‘4124G. Inmate financial responsibilities.’’.

8 SEC. 8. SUPPORT BY OTHER FEDERAL AGENCIES. 

9 (a) IN GENERAL.—From amounts made available to 

10 carry out this section, the Attorney General shall facilitate 

11 other Federal, State, and other agencies increasing the 

12 education, skills, and economic productivity of the Federal 

13 inmate population and in assisting inmates in meeting fi14 nancial obligations. 

15 (b) INMATE AND INDUSTRY RIGHTS.—No Federal in16 mate and no Class A, Class B, or Class C industry of Fed17 eral Prison Industries may be prohibited from obtaining 

18 the services of a Federal agency for which that inmate 

19 or industry is otherwise qualified, so long as institutional 

20 safety and security are preserved. 

21 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated $50,000 for each of fis23 cal years 2005 through 2015 for each of the Departments 

24 of Commerce, Education, Justice, Health and Human 

25 Services, Labor, and Treasury, to identify and begin to 
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1 effect linkages between Departmental programs and serv2 ices serving Federal, State, and local inmates and correc3 tional industries. 

4 SEC. 9. RIGHTS OF INMATE WORKERS. 

5 (a) ESTABLISHMENT OF PROCEDURES.—Not later 

6 than 1 year after the date of the enactment of this Act, 

7 the Director of the Bureau of Prisons shall establish pro8 cedures to ensure that inmate workers have the right to 

9 form and join a labor organization of their own choice and 

10 to engage in collective bargaining. 

11 (b) RIGHTS.—Such procedures shall— 

12 (1) ensure employer and prison authority neu13 trality with regard to the exercise of collective bar14 gaining rights by inmate workers; 

15 (2) provide for a right of inmate workers to 

16 withhold services in the event of a dispute over 

17 terms and conditions of employment; 

18 (3) enable inmate workers to initiate collective 

19 bargaining upon a showing by petition that a major20 ity of workers of a unit appropriate for collective 

21 bargaining wish to be represented by an individual 

22 or labor organization (except that bargaining unit 

23 determinations will be made in accordance with the 

24 requirements of section 9(b)(3) of the National 

25 Labor Relations Act (29 U.S.C. 159(b)(3))); 
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1 (4) provide for binding arbitration if the inmate 

2 workers and the employer are unable to negotiate an 

3 initial collective bargaining agreement in a timely 

4 manner; and 

5 (5) otherwise afford inmate workers with simi6 lar rights to those afforded to employees under the 

7 National Labor Relations Act (29 U.S.C. 151 et 

8 seq). 

9 SEC. 10. INMATE WORKER COUNCILS. 

10 (a) IN GENERAL.—The Attorney General shall estab11 lish inmate worker councils in each Federal correctional 

12 institution, including all inmates working in Class A, B, 

13 or C industries of Federal Prison Industries. The councils 

14 shall be for the purposes of— 

15 (1) increasing productivity, quality, and income 

16 opportunity, including recruiting new firms; 

17 (2) representing common workplace interests of 

18 inmate employees, including in negotiation with Fed19 eral Prison Industries and firm management; and 

20 (3) intersite and public communication rep21 resenting inmate workers. 

22 (b) COMMUNICATION AND PARTICIPATION.—Councils 

23 will be designed to encourage open communication about 

24 workplace issues within the bounds of safe and secure con25 finement. Each employed inmate shall have the right to 
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1 participate in inmate councils, and local and national lead2 ership of such councils shall be chosen by inmates in a 

3 free and democratic manner. 

4 (c) NON-WORKPLACE ISSUES EXCLUDED.—Correc5 tions issues whose primary impact is other than the work6 place shall not be considered in inmate worker councils. 

7 (d) APPROVAL OF CLASS C AGREEMENTS.—No 

8 agreement for a Class C industry may be approved without 

9 review and comment by the facility’s inmate worker coun10 cil. A council shall have full access to all terms and condi11 tions of the proposed agreement affecting their employ12 ment, work content, duties, hours, pay, benefits, and other 

13 working conditions. Before such an agreement is signed, 

14 inmate worker council comments and recommendations 

15 must receive serious consideration by facility management 

16 and facility management must submit a formal reply to 

17 the council on each recommendation. The council, at its 

18 discretion, may publish the recommendations and response 

19 in their entirety. 

20 (e) PROTECTION.—The Attorney General shall en21 sure that workplace issues raised by any inmate through 

22 worker councils, whose reasonable consequences are legal, 

23 are exempt from correctional disciplinary action, work24 place retaliation, or loss of any right or privilege. 
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1 (f) EXPENSES.—Reasonable council expenses shall be 

2 funded from that portion of deductions from inmate gross 

3 wages for board and room. 

4 SEC. 11. BUSINESS COUNCILS. 

5 (a) IN GENERAL.—The Attorney General shall facili6 tate creation of councils of entities operating Class B or 

7 C industries in Federal correctional institutions. The 

8 councils shall be for the purposes of improving efficiency, 

9 competitiveness, employment, and profitability of such en10 tities, improving working relationships with Federal insti11 tutions and the Federal Bureau of Prisons, as well as for 

12 improving safety, security, and public understanding of 

13 Federal prison industry programs. 

14 (b) ISSUES.—Such councils shall exclusively address 

15 issues affecting workplace efficiency and success. Correc16 tions issues whose primary impact is other than the work17 place or business efficiency shall not be considered in busi18 ness councils. 

19 SEC. 12. WORKPLACE DISCIPLINE AND WORKPLACE 

20 ISSUES. 

21 (a) IN GENERAL.—This Act and the amendments 

22 made by this Act apply solely to workplace operations in 

23 correctional facilities regarding the production of goods 

24 and services for agencies or open markets other than the 

25 operation of the specific correctional facility. They do not 
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1 apply to work in institutional maintenance or to correc2 tional matters of any sort beyond the workplace. 

3 (b) PROTECTION.—Except where a specific workplace 

4 action can be shown to directly threaten or harm correc5 tional safety or security, workplace issues involving in6 mates in Class A, B, or C industries must be addressed 

7 solely in the workplace with no correctional consequence. 

8 Correctional disciplinary procedures and transfers shall 

9 not be used to address inmate workplace issues, including 

10 issues raised in an otherwise legal collective bargaining 

11 process. 

12 SEC. 13. CORRECTIONAL INSTITUTION LOCATIONS. 

13 In locating new correctional institutions, the Attorney 

14 General will favorably consider locations that increase or 

15 maximize Federal inmates’ opportunities for successful 

16 open-market employment and competitive participation in 

17 the United States economy, along with opportunities for 

18 education and training. 

19 SEC. 14. RESEARCH AND PILOT PROGRAM SUPPORT. 

20 There are authorized to be appropriated to the Fed21 eral Bureau of Prisons, to assist the Federal Bureau of 

22 Prisons in transitioning to successful open-market partici23 pation for inmates and industries, $2,000,000 for each of 

24 fiscal years 2006 through 2015, to be available for— 
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1 (1) external expertise in designing and effecting 

2 programs for Class B and C industries; 

3 (2) research and followup support; 

4 (3) staffing support to initiate such programs; 

5 and 

6 (4) outreach support. 

7 SEC. 15. ANNUAL PUBLIC REPORTS. 

8 (a) ACCOUNTING REPORT.—Not later than June 30 

9 of each year, the Attorney General shall publish a report, 

10 broken down by Class A, B, and C industries, on Federal 

11 Prison Industries. The report shall include— 

12 (1) numbers of working inmates by industry 

13 and occupation; 

14 (2) distributions of hours worked and hourly 

15 and annual incomes; 

16 (3) deductions by class of deduction; 

17 (4) annual value of product; 

18 (5) injuries and workers compensation claims; 

19 and 

20 (6) any other statistics necessary for a public 

21 accounting of inmate work. 

22 (b) PUBLICATIONS BY PRIVATE FIRMS.—With the 

23 exception of inmate wage disclosure, the Attorney General 

24 shall not require private firms employing inmates to pub25 lish information which would both— 
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1 (1) not otherwise be required; and 

2 (2) could reasonably be construed to harm the 

3 firm’s competitive position. 

4 (c) MAJOR EVENTS REPORT.—Concurrently with the 

5 report required by subsection (a), the Attorney General 

6 shall publish annually a report summarizing major events 

7 and progress in each of Class A, B, and C industries of 

8 Federal Prison Industries. The report shall— 

9 (1) identify all significant events and decisions 

10 affecting inmate work opportunity, conditions of 

11 work, pay and benefits, and events affecting inmate 

12 participation in the workplace; and 

13 (2) include an annual national report prepared 

14 by inmate worker and business councils including 

15 whatever information those councils considers appro16 priate. 

Æ