equipment needed to perform the types of work 
to be performed; 
‘‘(C) not approve an agreement that will re-
sult in the displacement of non-inmate workers 
contrary to the representations required by sub-
section (e)(2) as determined by the Board or by 
the Secretary of Labor (pursuant to subsection 
(i)); and 
‘‘(D) not approve an agreement that will re-
sult, either directly or indirectly, in the produc-
tion of a new product or the furnishing of a serv-
ice for other than resale by an eligible entity de-
scribed in paragraph (1) or (2) of subsection (b) 
or donation. 
‘‘(g) WAGE RATES AND DEDUCTIONS FROM INMATE 
WAGES.— 
‘‘(1) IN GENERAL.—Inmate workers shall be paid 
wages for work under the agreement at a basic hourly 
rate to be negotiated between the eligible entity and 
Federal Prison Industries and specified in the agree-
ment. The wage rates set by the Director of the Fed-
eral Bureau of Prisons to be paid inmates for various 
institutional work assignments are specifically au-
thorized. 
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‘‘(2) PAYMENT
TO
INMATE
WORKER
AND
AU-
THORIZED DEDUCTIONS.—Wages shall be paid and 
deductions taken pursuant to section 4122(b)(12)(D). 
‘‘(3) VOLUNTARY PARTICIPATION BY INMATE.— 
Each inmate worker to be utilized by an eligible enti-
ty shall indicate in writing that such person— 
‘‘(A) is participating voluntarily; and 
‘‘(B) understands and agrees to the wages to 
be paid and deductions to be taken from such 
wages. 
‘‘(h) ASSIGNMENT
TO WORK OPPORTUNITIES.—As-
signment of inmates to work under an approved agreement 
with an eligible entity shall be subject to the Bureau of Pris-
ons Program Statement Number 1040.10 (Non-Discrimina-
tion Toward Inmates), as contained in section 551.90 of 
title 28 of the Code of Federal Regulations (or any successor 
document). 
‘‘(i) ENFORCEMENT OF PROTECTIONS FOR NON-IN-
MATE WORKERS.— 
‘‘(1) PRIOR TO BOARD CONSIDERATION.—Upon 
request of any interested person, the Secretary of 
Labor may promptly verify a certification made pur-
suant subsection (e)(2) with respect to the displace-
ment of non-inmate workers so as to make the results 
of such inquiry available to the Board of Directors 
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prior to the Board’s consideration of the proposed 
agreement. The Secretary and the person requesting 
the inquiry may make recommendations to the Board 
regarding modifications to the proposed agreement. 
‘‘(2) DURING PERFORMANCE.— 
‘‘(A) IN GENERAL.—Whenever the Secretary 
deems appropriate, upon request or otherwise, 
the Secretary may verify whether the actual per-
formance of the agreement is resulting in the dis-
placement of non-inmate workers or the use of 
inmate workers in a work activity not author-
ized under the approved agreement. 
‘‘(B) SANCTIONS.—Whenever the Secretary 
determines that performance of the agreement 
has resulted in the displacement of non-inmate 
workers or employment of an inmate worker in 
an unauthorized work activity, the Secretary 
may— 
‘‘(i) direct the Inmate Work Training 
Administrator to terminate the agreement 
for default, subject to the processes and ap-
peals available to a Federal contractor 
whose procurement contract has been termi-
nated for default; and 
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