Prison Industries derives substantial sales. The members of 
the Board representing organized labor shall, to the max-
imum practicable, include representation from labor unions 
whose members are likely to be most affected by the sales 
of Federal Prison Industries. 
‘‘(3) Each member shall be appointed for a term of 
5 years, except that of members first appointed— 
‘‘(A) 2 members representing the business com-
munity shall be appointed for a term of 3 years; 
‘‘(B) 2 members representing labor shall be ap-
pointed for a term of 3 years; 
‘‘(C) 2 members whose background and expertise 
the President deems appropriate for a term of 3 
years; 
‘‘(D) 1 member representing victims of crime 
shall be appointed for a term of 3 years; 
‘‘(E) 1 member representing the interests of Fed-
eral inmate workers shall be appointed for a term of 
3 years; 
‘‘(F) 1 member representing the business commu-
nity shall be appointed for a term of 4 years; 
‘‘(G) 1 member representing the business commu-
nity shall be appointed for a term of 4 years; and 
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‘‘(H) the members having special expertise in in-
mate rehabilitation techniques shall be appointed for 
a term of 5 years. 
‘‘(4) The President shall designate 1 member of the 
Board as Chairperson. The Chairperson may designate a 
Vice Chairperson. 
‘‘(5) Members of the Board may be reappointed. 
‘‘(6) Any vacancy on the Board shall be filled in the 
same manner as the original appointment. Any member ap-
pointed to fill a vacancy occurring before the expiration of 
the term for which the member’s predecessor was appointed 
shall be appointed for the remainder of that term. 
‘‘(7) The members of the Board shall serve without 
compensation. The members of the Board shall be allowed 
travel expenses, including per diem in lieu of subsistence, 
at rates authorized for employees of agencies under sub-
chapter I of chapter 57 of title 5, United States Code, to 
attend meetings of the Board and, with the advance ap-
proval of the Chairperson of the Board, while otherwise 
away from their homes or regular places of business for pur-
poses of duties as a member of the Board. 
‘‘(8)(A) The Chairperson of the Board may appoint 
and terminate any personnel that may be necessary to en-
able the Board to perform its duties. 
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‘‘(B) Upon request of the Chairperson of the Board, 
a Federal agency may detail a Federal Government em-
ployee to the Board without reimbursement. Such detail 
shall be without interruption or loss of civil service status 
or privilege. 
‘‘(9) The Chairperson of the Board may procure tem-
porary and intermittent services under section 3109(b) of 
title 5, United States Code. 
‘‘(c) The Director of the Bureau of Prisons shall serve 
as Chief Executive Officer of the Corporation. The Director 
shall designate a person to serve as Chief Operating Officer 
of the Corporation.’’. 
(b) CONTINUED GOVERNANCE.—The members of the 
Board of Directors serving on the date of enactment of this 
Act, and the person selected by them as Chairman, shall 
continue to exercise the duties and responsibilities of the 
Board until the earlier of— 
(1) the date on which the President has ap-
pointed at least 6 members of the Board and des-
ignated a new Chairman, pursuant to section 4121 of 
title 18, United States Code (as added by section 
12(a) of this Act); or 
(2) the date that is 365 days after the date of en-
actment of this Act. 
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SEC. 13. PROVIDING ADDITIONAL MANAGEMENT FLEXI-
BILITY TO FEDERAL PRISON INDUSTRIES OP-
ERATIONS. 
Section 4122(b)(3) of title 18, United States Code, is 
amended— 
(1) by striking ‘‘(3)’’ and inserting ‘‘(3)(A)’’; 
and 
(2) by adding at the end the following new para-
graphs: 
‘‘(B) Federal Prison Industries may locate more than 
one workshop at a Federal correctional facility. 
‘‘(C) Federal Prison Industries may operate a work-
shop outside of a correctional facility if all of the inmates 
working in such workshop are classified as minimum secu-
rity inmates.’’. 
SEC. 14. TRANSITIONAL PERSONNEL MANAGEMENT AU-
THORITY. 
Any correctional officer or other employee of Federal 
Prison Industries being paid with nonappropriated funds 
who would be separated from service because of a reduction 
in the net income of Federal Prison Industries during any 
fiscal year specified in section 4(e)(1) shall be— 
(1) eligible for appointment (or reappointment) 
in the competitive service pursuant to title 5, United 
States Code; 
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