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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Fair Access and Indi-
vidual Responsibilities Act of 2004’’. 
SEC. 2. INDUSTRIAL OPERATIONS IN FEDERAL PRISONS. 
(a) BOARD OF DIRECTORS.—Section 4121 of title 18, 
United States Code, is amended by striking all after the 
section heading and inserting the following:
‘‘(a) ESTABLISHMENT.—Federal Prison Industries is 
a government corporation of the District of Columbia. 
‘‘(b) BOARD.— 
‘‘(1) IN GENERAL.—Federal Prison Industries 
is administered by a board of directors, composed of 
12 directors appointed by the Attorney General, of 
which 4 shall be appointed as follows: 
‘‘(A) 1 director upon the recommendation 
of the Speaker of the House of Representatives. 
‘‘(B) 1 director upon the recommendation 
of the minority leader of the House of Rep-
resentatives. 
‘‘(C) 1 director upon the recommendation 
of the majority leader of the Senate. 
‘‘(D) 1 director upon the recommendation 
of the minority leader of the Senate. 
‘‘(2) TERM.—A director shall be appointed to a 
term of 4 years and may be reappointed. 
‘‘(3) COMPENSATION.—A director shall serve 
without compensation. 
‘‘(c) DUTY.—The duty of the board shall be to carry 
on and facilitate such industrial operations in Federal cor-
rectional institutions as the Attorney General determines.
‘‘(d) CHIEF EXECUTIVE OFFICER.—The Director of 
the Bureau of Prisons shall serve as chief executive officer 
of the corporation. 
‘‘(e) INDEPENDENT REVIEW PANEL.— 
‘‘(1) IN GENERAL.—The Attorney General shall 
appoint an independent review panel to advise the 
board of directors regarding the type and quantity 
of products to be produced by Federal Prison Indus-
tries and conditions of hire and work consistent with 
this chapter. 
‘‘(2) MEMBERS.—The panel shall be comprised 
of— 
‘‘(A) 1 member representing the Depart-
ment of Commerce; 
‘‘(B) 1 member representing the Depart-
ment of Labor; 
‘‘(C) 1 member representing the Depart-
ment of the Treasury; 
‘‘(D) 1 member representing the Inter-
national Trade Commission; 
‘‘(E) 1 member representing the Small 
Business Association; 
‘‘(F) 1 member representing the Economic 
Development Administration;
‘‘(G) 1 member representing the business 
community; 
‘‘(H) 1 member representing organized 
labor; 
‘‘(I) 1 member representing taxpayers; 
‘‘(J) 1 member representing crime victims; 
‘‘(K) 1 member representing the Depart-
ment of Health and Human Services Office of 
Child Support Enforcement; 
‘‘(L) 1 member representing minorities 
overrepresented in prison populations; 
‘‘(M) not less than 2 members rep-
resenting, and appointed from among, inmates 
working in Federal Prison Industries; and 
‘‘(N) such other members as the Attorney 
General considers appropriate. 
‘‘(3) COMPENSATION.—Members of the panel 
shall serve without compensation. 
‘‘(4) INAPPLICABILITY OF FACA.—The Federal 
Advisory Committee Act shall not apply with respect 
to the panel.’’. 
(b) ADMINISTRATION.—Section 4122 of title 18, 
United States Code, is amended by striking all after the 
section heading and inserting the following:
‘‘(a) IN GENERAL.—The Attorney General shall de-
termine in what manner and to what extent industrial op-
erations shall be carried on in Federal correctional institu-
tions. 
‘‘(b) OBJECTIVES.—The Attorney General shall con-
duct such operations so as to maximize— 
‘‘(1) the productivity, legal income, and finan-
cial responsibility of every Federal corrections in-
mate; 
‘‘(2) the unsubsidized competitive opportunities 
of industrial operations in Federal correctional insti-
tutions; and 
‘‘(3) the profit opportunities of private and non- 
profit firms employing inmates in Federal correc-
tional institutions, within the rules of the normal 
competitive economy and subject to the requirements 
of safe and secure correctional facilities. 
‘‘(c) RESPONSIBILITIES.—Within requirements of 
safety and security, the Attorney General shall be respon-
sible for protecting and facilitating the participation rights 
of each Federal corrections inmate as well as for facili-
tating the ability of each inmate to meet that inmate’s 
financial responsibilities through successful competitive 
participation in the economy of the United States.
‘‘(d) AVAILABILITY OF OPPORTUNITIES.—The Attor-
ney General shall endeavor to make available to inmates 
who have been committed to the custody of the Bureau 
of Prisons opportunities, free from discrimination, to work 
or be employed in a Federal Prison Industries shop. 
‘‘(e) STANDARDS.—The Attorney General may set 
standards regarding education and conduct for those in-
mates who work in a Federal Prison Industries shop. 
‘‘(f) VOLUNTARY MOVEMENT.—Except where safety 
and security of individual inmates requires exception, the 
voluntary movement of inmates among classes of institu-
tional maintenance, work, or employment shall not be in-
hibited.’’. 
SEC. 3. INDUSTRY CLASSES. 
(a) PURCHASE
OF PRISON-MADE PRODUCTS
BY 
FEDERAL DEPARTMENTS.—Section 4124 of title 18, 
United States Code, is amended by striking ‘‘products of 
the industries authorized by this chapter’’ and inserting 
‘‘products of Class A industries authorized by this chap-
ter’’. 
(b) CLASSES A, B, C, AND D.—(1) Chapter 307 of 
title 18, United States Code, is amended by adding after 
section 4124 the following new sections:
‘‘§ 4124A. Class A industries 
‘‘(a) DEFINITION.—In this chapter, a Class A indus-
try is an industry established under this chapter as of De-
cember 31, 2002. 
‘‘(b) LIMITATIONS ON NUMBER OF WORKERS.—The 
number of inmates working in Class A industries may not 
exceed— 
‘‘(1) the number of inmates working in Class A 
industries as of December 31, 2002, during the pe-
riod beginning on the date of the enactment of this 
section and ending on December 31, 2015; 
‘‘(2) 75 percent of the number referred to in 
paragraph (1), during the period beginning on Janu-
ary 1, 2016, and ending on December 31, 2020; and 
‘‘(3) 50 percent of the number referred to in 
paragraph (1), after December 31, 2020. 
‘‘(c) LIMITATIONS ON PERCENTAGE OF WORKERS.— 
Of the total population of inmates, the percentage who 
work in Class A industries may not exceed— 
‘‘(1) the percentage who worked in Class A in-
dustries as of December 31, 2002, during the period 
beginning on the date of the enactment of this sec-
tion and ending on December 31, 2015; 
‘‘(2) 75 percent of the percentage referred to in 
paragraph (1), during the period beginning on Janu-
ary 1, 2016, and ending on December 31, 2020; and
‘‘(3) 50 percent of the percentage referred to in 
paragraph (1), after December 31, 2020. 
‘‘(d) LIMITATION ON INDUSTRIES.—The types of in-
dustries in Class A industries may not expand beyond the 
industries in existence as of December 31, 2002. 
‘‘§ 4124B. Class B industries 
‘‘(a) DEFINITION.—In this chapter, a Class B indus-
try is an industry established on or after January 1, 2005, 
that meets the requirements of subsection (b). 
‘‘(b) REQUIREMENTS.—An industry meets the re-
quirements of this subsection if, and only if, it meets the 
following requirements: 
‘‘(1) It is carried out by a competitive entity 
unrelated to a Class A industry that produces goods 
or services for sale in government or open markets, 
including in interstate and international commerce. 
‘‘(2) The entity is an independent taxpaying 
unit subject to all opportunities and obligations af-
fecting a similarly located private firm. 
‘‘(3) All civilian and inmate workers of the enti-
ty are identically covered under wage and benefit 
plans and all Federal and applicable State and local 
laws covering civilian employees, including but not 
limited to all provisions of the Fair Labor Standards 
Act, the National Labor Relations Act, the Ameri-
cans With Disabilities Act, and health and safety 
standards affecting private firms. 
‘‘(4) The entity is subject to all license, permit, 
and tax obligations of a similarly located private 
firm. 
‘‘(5) Any land, buildings, capital equipment, 
utilities, services, or staff assistance (except secu-
rity) owned or provided to the entity by Federal 
Prison Industries are obtained in an arms-length, 
open, competitive bidding process maximizing re-
turns to taxpayers. 
‘‘(6) The entity does not receive from Federal 
Prison Industries any implicit or explicit subsidy not 
equivalently offered to other firms. 
‘‘(7) The entity, before engaging in a business, 
offers for competitive bid all resources, including op-
portunities to recruit inmate employees, to firms in 
the locale engaged in the proposed line of business. 
‘‘(8) Mandatory preference does not apply to 
the entity. 
‘‘§ 4124C. Class C industries 
‘‘(a) DEFINITION.—In this chapter, a Class C indus-
try is an industry established on or after January 1, 2005, 
that meets the requirements of subsection (b).
‘‘(b) REQUIREMENTS.—An industry meets the re-
quirements of this subsection if, and only if, it meets the 
following requirements: 
‘‘(1) It is carried out by a private entity located 
in a Federal correctional institution that produces 
goods or services for sale in government or open 
markets, including in interstate and international 
commerce. 
‘‘(2) The entity employs convicts or prisoners 
who meet the requirements of each paragraph of 
section 1761(c) of this title. 
‘‘(3) The entity meets the same requirements 
that an entity must meet for participation in the 
State Prison Industry Enhancement Certification 
program of the Department of Justice. 
‘‘(4) The entity meets any other requirements 
that the Federal Bureau of Prisons may prescribe 
under subsection (c). 
‘‘(c) BOP REQUIREMENTS.— 
‘‘(1) IN
GENERAL.—The Federal Bureau of 
Prisons shall prescribe the other requirements re-
ferred to in subsection (b)(4). The first such require-
ments shall be published not later than 180 days 
after the date of the enactment of this section.
‘‘(2) LIMITATIONS.—The requirements shall be 
designed to maximize opportunities for private and 
nonprofit firms to compete for efficient operations in 
Federal correctional facilities while maintaining nec-
essary security. The requirements shall ensure that 
a Class C industry may be established, invested in, 
or participated in, by inmates, so long as— 
‘‘(A) normal conditions of law are met; 
‘‘(B) the business or investment poses no 
significant threat to the safety or security of 
the institution; and 
‘‘(C) inmate entrepreneurs and managers 
exercise no notable control or influence over em-
ployed inmates outside the workplace. 
‘‘§ 4124D. Class D industries 
‘‘(a) DEFINITION.—In this chapter, a Class D indus-
try is a pilot industry that is created for purposes of test-
ing reform of inmate employment and prison industries 
and that meets the requirements of subsection (b). 
‘‘(b) REQUIREMENTS.—An industry meets the re-
quirements of this subsection if, and only if, it meets the 
following requirements: 
‘‘(1) Inmate participation is voluntary. 
‘‘(2) The entity carrying out the industry meets 
all health and safety regulations.
‘‘(3) The Attorney General determines that the 
industry is safe, fair, and devised to increase inmate 
economic well-being. 
‘‘(4) It is a legitimate test industry meant to be 
preliminary to wider application or for purposes of 
determining whether there should be a proposed 
change in law. 
‘‘(5) The entity carrying out the industry has 
adequate public oversight and independent evalua-
tion. 
‘‘(c) BOP REQUIREMENTS.—The Federal Bureau of 
Prisons may establish up to 20 separate Class D indus-
tries, employing no more than a cumulative total of 2000 
inmates over the life of the Class D industry program. 
‘‘(d) RELATIONSHIP TO CLASS A, B, AND C INDUS-
TRIES.—Class D industries do not have to comply with 
the requirements of class A, B, and C industries, as set 
forth in sections 4124A, 4124B, and 4124C. 
‘‘(e) TERMINATION.—The Class D industries pro-
gram shall terminate on December 31, 2020. 
‘‘§ 4124E. Other industries prohibited 
‘‘An industry may not be established under this chap-
ter unless it is a Class A industry under section 4124A, 
a Class B industry under section 4124B, a Class C indus-
try under section 4124C, or a Class D industry under sec-
tion 4124D.’’. 
(2) The table of sections at the beginning of such 
chapter is amended by adding at the end the following 
new items: 
‘‘4124A. Class A industries. 
‘‘4124B. Class B industries. 
‘‘4124C. Class C industries. 
‘‘4124D. Class D industries. 
‘‘4124E. Other industries prohibited.’’. 
SEC. 4. REPEAL OF MANDATORY SOURCE PROVISIONS. 
Section 4124 of title 18, United States Code, is 
amended by adding at the end the following new sub-
section: 
‘‘(e)(1) Except as provided in paragraph (2), this sec-
tion shall not apply after December 31, 2010. 
‘‘(2) This section shall apply with respect to Federal 
Prison Industries at a specific correctional facility for a 
period not exceeding 2 years after December 31, 2010, 
if the Attorney General— 
‘‘(A) certifies that national security or security 
of the facility would be endangered if the section 
ceased to apply with respect to the facility; and 
‘‘(B) publishes a plan for the elimination, by 
the end of the period for which the applicability is 
extended under this paragraph, of the conditions 
causing the endangerment of national security or se-
curity of the facility.’’.
SEC. 5. INMATE WAGE RATES. 
(a) IN GENERAL.—Chapter 307 of title 18, United 
States Code, is amended by adding after section 4124E 
(as added by section 3) the following new section: 
‘‘§ 4124F. Wage rates 
‘‘(a) IN GENERAL.—Within the requirements of safe 
and secure confinement, the Attorney General shall modify 
correctional practices to improve the attractiveness and 
business efficiency of Federal correctional facilities to en-
sure maximum employment of inmates at prevailing 
wages. 
‘‘(b) PREVAILING WAGE.—A Federal inmate em-
ployed in a Class B industry or a Class C industry, and 
a State or local inmate employed in connection with the 
Prison Industry Enhancement Certification program of 
the Department of Justice, shall be paid at a wage not 
less than the prevailing wage in the locality, except—
‘‘(1) to the degree the productivity of individual 
inmates or subgroups of inmates can be reasonably 
demonstrated to lag that of civilian workers in the 
locality, and then only for the period during which 
their productivity lags, as demonstrated on an an-
nual basis and certified by the Department of Em-
ployment Services in the host State; or 
‘‘(2) to the degree unavoidable inefficiencies or 
risks of operating in a correctional setting deter a
facility’s hiring inmates at prevailing wages, as evi-
denced by its inability to attract enough firms to 
employ 50 inmates at prevailing wages, provided 
that—
‘‘(A) the reduction in any inmate’s wage is 
no more than 50 percent of the difference be-
tween the Federal minimum wage and the de-
termined prevailing wage; 
‘‘(B) the full value of the reduction, to the 
limit of the prescribed deduction, is credited to 
the inmate in lieu of deductions for board and 
room; 
‘‘(C) the inefficiencies, efforts to mitigate 
them, and justifications for their persistence are 
documented and published; and 
‘‘(D) the inefficiency is certified annually 
by the Attorney General or a State attorney 
general; or 
‘‘(3) during the first 24 months of a new firm 
or new Class B industry’s operation in a correctional 
facility. 
‘‘(c) REASONABLE MEASURES.—In all instances jus-
tifying sub-prevailing wages because of reduced produc-
tivity, the host correctional facility will have in place rea-
sonable measures including, but not limited to, access to
education and appropriate training, to increase the pro-
ductivity of the affected inmates. 
‘‘(d) NOTICE.—No facility may contract with or es-
tablish a firm employing inmates at less than prevailing 
wages unless it has first by public notice in the Federal 
Register and by other effective means offered opportuni-
ties to all firms to compete for employment of inmates 
at the facility.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by inserting 
after the item relating to section 4124E (as added by sec-
tion 3) the following new item:
‘‘4124F. Wage rates.’’.
SEC. 6. INCENTIVES TO TRADE ORGANIZATIONS AND NON-
PROFITS. 
(a) IN GENERAL.—From amounts made available to 
carry out this section, the Attorney General may make 
matching grants to business trade organizations, labor or-
ganizations, and human rights and non-profit organiza-
tions to attract firms and create business entities in Fed-
eral and State correctional settings. 
(b) PURPOSE.—The purpose of a matching grant 
under subsection (a) shall be to encourage investment and 
innovation in bringing inmates into successful open mar-
ket employment.
(c) GRANT AMOUNTS
AND TERMS.—A matching 
grant under subsection (a) may be made for not more than 
five years, in an amount not to exceed $200,000 per year. 
(d) SET-ASIDE.—Not less than 20 percent of 
amounts made available to carry out this section shall be 
used for research and evaluation. 
SEC. 7. INMATE FINANCIAL RESPONSIBILITIES. 
(a) IN GENERAL.—Chapter 307 of title 18, United 
States Code, is amended by adding after section 4124F 
(as added by section 5) the following new section: 
‘‘§ 4124G. Inmate financial responsibilities 
‘‘(a) IN GENERAL.—The Attorney General shall fa-
cilitate the success of each inmate in meeting reasonably 
proportioned financial obligations to the victims of that 
inmate, the children and family of that inmate, to tax-
payers, and the inmate individually. In particular, the Di-
rector of the Bureau of Prisons shall coordinate with 
working inmates and courts, family services, and offices 
of child support enforcement to ensure victim compensa-
tion, restitution, family support, establishment of pater-
nity and reasonable child support orders, payment toward 
any other court-ordered obligations, to contribute toward 
the costs of incarceration, as well as for reasonable actions 
to encourage prudent purchasing, saving, and investment 
by inmates.
‘‘(b) CLASS B DEDUCTIONS.—Deductions may be 
made from the earnings of an inmate in a Class B indus-
try only for taxes and normal payroll deductions, court-
ordered deductions for any purpose, victim compensation, 
restitution, family support, child and family support, and 
contributions to costs of incarceration. Deductions may 
not, in total, exceed 80 percent of gross pay. No deduction 
from any inmate’s earnings for costs of incarceration, vic-
tim compensation, or restitution can exceed the aggregate 
average rate of deductions for family or child support. The 
Attorney General may require and monitor savings, and 
Federal Prison Industries shall encourage prudent inter-
est-earning savings. Inmates shall have full access to Fed-
eral Prisons credit union savings or investment accounts 
on terms identical to those offered civilian employees for 
all required savings. Although savings may be required 
from the 20 percent of gross income remaining for the 
inmate, at least half of the remainder shall be held exempt 
from any deduction ordered by Federal Prison Industries 
or any court and will accrue solely to the discretion of the 
inmate wage earner. Records of all deductions will be 
maintained by category and compiled annually for public 
release. 
‘‘(c) CLASS C DEDUCTIONS.—Deductions may be 
made from the earnings of an inmate in a Class C industry
in the same manner as deductions may be made from the 
earnings of an inmate in a Prison Industry Enhancement 
Certification program of the Department of Justice.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
at the beginning of such chapter is amended by adding 
after the item relating to section 4124F (as added by sec-
tion 5) the following new item:
‘‘4124G. Inmate financial responsibilities.’’.
SEC. 8. SUPPORT BY OTHER FEDERAL AGENCIES. 
(a) IN GENERAL.—From amounts made available to 
carry out this section, the Attorney General shall facilitate 
other Federal, State, and other agencies increasing the 
education, skills, and economic productivity of the Federal 
inmate population and in assisting inmates in meeting fi-
nancial obligations. 
(b) INMATE AND INDUSTRY RIGHTS.—No Federal in-
mate and no Class A, Class B, or Class C industry of Fed-
eral Prison Industries may be prohibited from obtaining 
the services of a Federal agency for which that inmate 
or industry is otherwise qualified, so long as institutional 
safety and security are preserved. 
(c) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated $50,000 for each of fis-
cal years 2005 through 2015 for each of the Departments 
of Commerce, Education, Justice, Health and Human 
Services, Labor, and Treasury, to identify and begin to
effect linkages between Departmental programs and serv-
ices serving Federal, State, and local inmates and correc-
tional industries. 
SEC. 9. RIGHTS OF INMATE WORKERS. 
(a) ESTABLISHMENT OF PROCEDURES.—Not later 
than 1 year after the date of the enactment of this Act, 
the Director of the Bureau of Prisons shall establish pro-
cedures to ensure that inmate workers have the right to 
form and join a labor organization of their own choice and 
to engage in collective bargaining. 
(b) RIGHTS.—Such procedures shall— 
(1) ensure employer and prison authority neu-
trality with regard to the exercise of collective bar-
gaining rights by inmate workers; 
(2) provide for a right of inmate workers to 
withhold services in the event of a dispute over 
terms and conditions of employment; 
(3) enable inmate workers to initiate collective 
bargaining upon a showing by petition that a major-
ity of workers of a unit appropriate for collective 
bargaining wish to be represented by an individual 
or labor organization (except that bargaining unit 
determinations will be made in accordance with the 
requirements of section 9(b)(3) of the National 
Labor Relations Act (29 U.S.C. 159(b)(3)));
(4) provide for binding arbitration if the inmate 
workers and the employer are unable to negotiate an 
initial collective bargaining agreement in a timely 
manner; and 
(5) otherwise afford inmate workers with simi-
lar rights to those afforded to employees under the 
National Labor Relations Act (29 U.S.C. 151 et 
seq). 
SEC. 10. INMATE WORKER COUNCILS. 
(a) IN GENERAL.—The Attorney General shall estab-
lish inmate worker councils in each Federal correctional 
institution, including all inmates working in Class A, B, 
or C industries of Federal Prison Industries. The councils 
shall be for the purposes of— 
(1) increasing productivity, quality, and income 
opportunity, including recruiting new firms; 
(2) representing common workplace interests of 
inmate employees, including in negotiation with Fed-
eral Prison Industries and firm management; and 
(3) intersite and public communication rep-
resenting inmate workers. 
(b) COMMUNICATION AND PARTICIPATION.—Councils 
will be designed to encourage open communication about 
workplace issues within the bounds of safe and secure con-
finement. Each employed inmate shall have the right to
participate in inmate councils, and local and national lead-
ership of such councils shall be chosen by inmates in a 
free and democratic manner. 
(c) NON-WORKPLACE ISSUES EXCLUDED.—Correc-
tions issues whose primary impact is other than the work-
place shall not be considered in inmate worker councils. 
(d) APPROVAL
OF CLASS C AGREEMENTS.—No 
agreement for a Class C industry may be approved without 
review and comment by the facility’s inmate worker coun-
cil. A council shall have full access to all terms and condi-
tions of the proposed agreement affecting their employ-
ment, work content, duties, hours, pay, benefits, and other 
working conditions. Before such an agreement is signed, 
inmate worker council comments and recommendations 
must receive serious consideration by facility management 
and facility management must submit a formal reply to 
the council on each recommendation. The council, at its 
discretion, may publish the recommendations and response 
in their entirety. 
(e) PROTECTION.—The Attorney General shall en-
sure that workplace issues raised by any inmate through 
worker councils, whose reasonable consequences are legal, 
are exempt from correctional disciplinary action, work-
place retaliation, or loss of any right or privilege.