eligible entity pursuant to an agreement between such enti-
ty and the Inmate Work Training Administrator in accord-
ance with the requirements of this section. 
‘‘(b) DEFINITION OF ELIGIBLE ENTITIES.—For the 
purposes of this section, the term ‘eligible entity’ means an 
entity— 
‘‘(1) 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 that has been such an organization for a 
period of not less than 36 months prior to inclusion 
in an agreement under this section; 
‘‘(2) that is a religious organization described in 
section 501(d) of such Code and exempt from taxation 
under section 501(a) of such Code; or 
‘‘(3) that is a unit of local government, a school 
district, or another special purpose district. 
‘‘(c) INMATE WORK TRAINING ADMINISTRATOR.— 
There is hereby established the position of Inmate Work 
Training Administrator, who shall be responsible for fos-
tering the creation of alternative inmate work opportunities 
authorized by this section. The Administrator shall be des-
ignated by the Chief Executive Officer of Federal Prison 
Industries, with the approval of the Board of Directors, and 
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be under the supervision of the Chief Operating Officer, but 
may directly report to the Board. 
‘‘(d) PROPOSED AGREEMENTS.—An eligible entity 
seeking to enter into an agreement pursuant to subsection 
(a) shall submit a detailed proposal to the Inmate Work 
Training Administrator. Each such agreement shall speci-
fy— 
‘‘(1) types of work to be performed; 
‘‘(2) the proposed duration of the agreement, 
specified in terms of a base year and number of op-
tion years; 
‘‘(3) the number of inmate workers expected to be 
employed in the specified types of work during the 
various phases of the agreement; 
‘‘(4) the wage rates proposed to be paid to var-
ious classes of inmate workers; and 
‘‘(5) the facilities, services and personnel (other 
than correctional personnel dedicated to the security 
of the inmate workers) to be furnished by Federal 
Prison Industries or the Bureau of Prisons and the 
rates of reimbursement, if any, for such facilities, 
services, and personnel. 
‘‘(e) REPRESENTATIONS.— 
‘‘(1) ELEEMOSYNARY
WORK
ACTIVITIES.—Each 
proposed agreement shall be accompanied by a writ-
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ten certification by the chief executive officer of the el-
igible entity that— 
‘‘(A) the work to be performed by the in-
mate workers will be limited to the eleemosynary 
work of such entity in the case of an entity de-
scribed in paragraph (1) or (2) of subsection (b); 
‘‘(B) the work would not be performed in 
the United States but for the availability of the 
inmate workers; and 
‘‘(C) the work performed by the inmate 
workers will not result, either directly or indi-
rectly, in the production of a new product or the 
furnishing of a service that is to be offered for 
other than resale or donation by the eligible enti-
ty or any affiliate of the such entity. 
‘‘(2) PROTECTIONS
FOR
NON-INMATE
WORK-
ERS.—Each proposed agreement shall also be accom-
panied by a written certification by the chief execu-
tive officer of the eligible entity that— 
‘‘(A) no non-inmate employee (including 
any person performing work activities for such 
governmental entity pursuant to section 607 of 
subchapter IV of the Social Security Act (42 
U.S.C. 607)) of the eligible entity (or any affil-
iate of the entity) working in the United States 
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will have his or her job abolished or work hours 
reduced as a result of the entity being authorized 
to utilize inmate workers; and 
‘‘(B) the work to be performed by the in-
mate workers will not supplant work currently 
being performed in the United States by a con-
tractor of the eligible entity. 
‘‘(f) APPROVAL BY BOARD OF DIRECTORS.— 
‘‘(1) IN GENERAL.—Each such proposed agree-
ment shall be presented to the Board of Directors, be 
subject to the same opportunities for public comment, 
and be publicly considered and acted upon by the 
Board in a manner comparable to that required by 
paragraphs (7) and (8) of section 4122(b). 
‘‘(2) MATTERS TO BE CONSIDERED.—In deter-
mining whether to approve a proposed agreement, the 
Board shall— 
‘‘(A) give priority to an agreement that 
provides inmate work opportunities that will 
provide participating inmates with the best pros-
pects of obtaining employment paying a livable 
wage upon release; 
‘‘(B) give priority to an agreement that 
provides for maximum reimbursement for in-
mate wages and for the costs of supplies and 
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