empt from taxation under section 501(a) of such 
Code. 
(4) AUTHORIZATION
OF
APPROPRIATIONS.—
There are authorized to be appropriated $7,000,000 
for each of the fiscal years 2004 through 2008 for the 
purposes of paying the wages of inmates and other-
wise carrying out programs of the type described in 
paragraph (1). 
(c) MAXIMIZING INMATE REHABILITATIVE OPPORTU-
NITIES THROUGH COGNITIVE ABILITIES ASSESSMENTS.—
(1) DEMONSTRATION PROGRAM AUTHORIZED.—
(A) IN GENERAL.—There is hereby estab-
lished within the Federal Bureau of Prisons a 
program to be known as the ‘‘Cognitive Abilities 
Assessment Demonstration Program’’. The pur-
pose of the demonstration program is to deter-
mine the effectiveness of a program that assesses 
the cognitive abilities and perceptual skills of 
Federal inmates to maximize the benefits of var-
ious rehabilitative opportunities designed to pre-
pare each inmate for a successful return to soci-
ety and reduce recidivism. The demonstration 
program shall be undertaken by a contractor 
with a demonstrated record of enabling the be-
havioral and academic improvement of adults
through the use of research-based systems that 
maximize the development of both the cognitive 
and perceptual capabilities of a participating 
individual, including adults in a correctional 
setting. 
(B) 
SCOPE
OF
DEMONSTRATION
PRO-
GRAM.—The demonstration program shall to the 
maximum extent practicable, be—
(i) conducted during a period of three 
consecutive fiscal years, commencing during 
fiscal year 2004; 
(ii) conducted at 12 Federal correc-
tional institutions; and 
(iii) offered to 6,000 inmates, who are 
categorized as minimum security or less, 
and are within five years of release. 
(C) REPORT ON RESULTS OF PROGRAM.—
Not later than 60 days after completion of the 
demonstration program, the Director shall sub-
mit to Congress a report on the results of the 
program. At a minimum, the report shall in-
clude an analysis of employment stability, sta-
bility of residence, and rates of recidivism 
among inmates who participated in the program 
after 18 months of release.
(2) AUTHORIZATION
OF
APPROPRIATIONS.—
There is authorized to be appropriated $3,000,000 in 
each of the three fiscal years after fiscal year 2003, 
to remain available until expended, for the purposes 
of conducting the demonstration program authorized 
by subsection (a). 
(d) PRERELEASE EMPLOYMENT ASSISTANCE.—
(1) IN GENERAL.—The Director of the Federal 
Bureau of Prisons shall, to the maximum extent prac-
ticable, afford to inmates opportunities to participate 
in programs and activities designed to help prepare 
such inmates to obtain employment upon release. 
(2) PRERELEASE EMPLOYMENT PLACEMENT AS-
SISTANCE.—Such prerelease employment placement 
assistance required by subsection (a) shall include—
(A) training in the preparation of resumes 
and job applications; 
(B) training in interviewing skills; 
(C) training and assistance in job search 
techniques; 
(D) conduct of job fairs; and 
(E) such other methods deemed appropriate 
by the Director. 
(3) PRIORITY PARTICIPATION.—Priority in pro-
gram participation shall be accorded to inmates who
are participating in work opportunities afforded by 
Federal Prison Industries and are within 24 months 
of release from incarceration. 
SEC. 11. RESTRUCTURING THE BOARD OF DIRECTORS. 
Section 4121 of title 18, United States Code, is amend-
ed to read as follows: 
‘‘§ 4121. Federal Prison Industries; Board of Directors: 
executive management 
‘‘(a) Federal Prison Industries is a government cor-
poration of the District of Columbia organized to carry on 
such industrial operations in Federal correctional institu-
tions as authorized by its Board of Directors. The manner 
and extent to which such industrial operations are carried 
on in the various Federal correctional institutions shall be 
determined by the Attorney General. 
‘‘(b)(1) The corporation shall be governed by a board 
of 11 directors appointed by the President. 
‘‘(2) In making appointments to the Board, the Presi-
dent shall assure that 3 members represent the business 
community, 3 members represent organized labor, 1 member 
shall have special expertise in inmate rehabilitation tech-
niques, 1 member represents victims of crime, 1 member 
represents the interests of Federal inmate workers, and 2 
additional members whose background and expertise the 
President deems appropriate. The members of the Board
representing the business community shall include, to the 
maximum extent practicable, representation of firms fur-
nishing services as well as firms producing products, espe-
cially from those industry categories from which Federal 
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 
‘‘(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. 
‘‘(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.’’. 
SEC. 12. 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. 13. 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; 
(2) registered on a Bureau of Prisons reemploy-
ment priority list; and 
(3) given priority for any other position within 
the Bureau of Prisons for which such employee is 
qualified. 
SEC. 14. FEDERAL PRISON INDUSTRIES REPORT TO CON-
GRESS. 
Section 4127 of title 18, United States Code, is amend-
ed to read as follows:
‘‘§ 4127. Federal Prison Industries report to Congress 
‘‘(a) IN GENERAL.—Pursuant to chapter 91 of title 31, 
the board of directors of Federal Prison Industries shall sub-
mit an annual report to Congress on the conduct of the busi-
ness of the corporation during each fiscal year and the con-
dition of its funds during the fiscal year. 
‘‘(b) CONTENTS OF REPORT.—In addition to the mat-
ters required by section 9106 of title 31, and such other 
matters as the board considers appropriate, a report under 
subsection (a) shall include—
‘‘(1) a statement of the amount of obligations 
issued under section 4129(a)(1) of this title during 
the fiscal year; 
‘‘(2) an estimate of the amount of obligations 
that will be issued in the following fiscal year; 
‘‘(3) an analysis of—
‘‘(A) the corporation’s total sales for each 
specific product and type of service sold to the 
Federal agencies and the commercial market; 
‘‘(B) the total purchases by each Federal 
agency of each specific product and type of serv-
ice; 
‘‘(C) the corporation’s share of such total 
Federal Government purchases by specific prod-
uct and type of service; and
‘‘(D) the number and disposition of disputes 
submitted to the heads of the Federal depart-
ments and agencies pursuant to section 4124(e) 
of this title; 
‘‘(4) an analysis of the inmate workforce that in-
cludes—
‘‘(A) the number of inmates employed; 
‘‘(B) the number of inmates utilized to 
produce products or furnish services sold in the 
commercial market; 
‘‘(C) the number and percentage of em-
ployed inmates by the term of their incarcer-
ation; and 
‘‘(D) the various hourly wages paid to in-
mates employed with respect to the production of 
the various specific products and types of serv-
ices authorized for production and sale to Fed-
eral agencies and in the commercial market; and 
‘‘(5) data concerning employment obtained by 
former inmates upon release to determine whether the 
employment provided by Federal Prison Industries 
during incarceration provided such inmates with 
knowledge and skill in a trade or occupation that en-
abled such former inmate to earn a livelihood upon 
release.
‘‘(c) PUBLIC AVAILABILITY.—Copies of an annual re-
port under subsection (a) shall be made available to the 
public at a price not exceeding the cost of printing the re-
port.’’. 
SEC. 15. INDEPENDENT STUDY TO DETERMINE THE EF-
FECTS OF ELIMINATING THE FEDERAL PRIS-
ON INDUSTRIES MANDATORY SOURCE AU-
THORITY. 
(a) STUDY
REQUIRED.—The Comptroller General 
shall undertake to have an independent study conducted on 
the effects of eliminating the Federal Prison Industries 
mandatory source authority. 
(b) SOLICITATION OF VIEWS.—The Comptroller Gen-
eral shall ensure that in developing the statement of work 
and the methodology for the study, the views and input of 
private industry, organized labor groups, Members and staff 
of the relevant Congressional committees, officials of the ex-
ecutive branch, and the public are solicited. 
(c) SUBMISSION.—Not later than June 30, 2004, the 
Comptroller General shall submit the results of the study 
to Congress, including any recommendations for legislation. 
SEC. 16. SENSE OF CONGRESS. 
It is the sense of Congress that it is important to study 
the concept of implementing a ‘‘good time’’ release program 
for non-violent criminals in the Federal prison system.
SEC. 17. DEFINITIONS. 
Chapter 307 of title 18, United States Code, is amend-
ed by adding at the end the following new section: 
‘‘§ 4131. Definitions 
‘‘As used in this chapter—
‘‘(1) the term ‘assembly’ means the process of 
uniting or combining articles or components (includ-
ing ancillary finished components or assemblies) so as 
to produce a significant change in form or utility, 
without necessarily changing or altering the compo-
nent parts; 
‘‘(2) the term ‘current market price’ means, with 
respect to a specific product, the fair market price of 
the product within the meaning of section 15(a) of the 
Small Business Act (15 U.S.C. 644(a)), at the time 
that the contract is to be awarded, verified through 
appropriate price analysis or cost analysis, including 
any costs relating to transportation or the furnishing 
of any ancillary services; 
‘‘(3) the term ‘import-sensitive product’ means a 
product which, according to Department of Commerce 
data, has experienced competition from imports at an 
import to domestic production ratio of 25 percent or 
greater; 
‘‘(4) the term ‘labor-intensive manufacture’ 
means a manufacturing activity in which the value
of inmate labor constitutes at least 10 percent of the 
estimate unit cost to produce the item by Federal 
Prison Industries; 
‘‘(5) the term ‘manufacture’ means the process of 
fabricating from raw or prepared materials, so as to 
impart to those materials new forms, qualities, prop-
erties, and combinations; 
‘‘(6) the term ‘reasonable share of the market’ 
means a share of the total purchases by the Federal 
departments and agencies, as reported to the Federal 
Procurement Data System for—
‘‘(A) any specific product during the 3 pre-
ceding fiscal years, that does not exceed 20 per-
cent of the Federal market for the specific prod-
uct; and 
‘‘(B) any specific service during the 3 pre-
ceding fiscal years, that does not exceed 5 percent 
of the Federal market for the specific service; and 
‘‘(7) the term ‘services’ has the meaning given 
the term ‘service contract’ by section 37.101 of the 
Federal Acquisition Regulation (48 C.F.R. 36.102), as 
in effect on July 1, 2002.’’. 
SEC. 18. IMPLEMENTING REGULATIONS AND PROCEDURES. 
(a) FEDERAL ACQUISITION REGULATION.—
(1) PROPOSED
REVISIONS.—Proposed revisions 
to the Governmentwide Federal Acquisition Regula-
tion to implement the amendments made by this Act 
shall be published not later than 60 days after the 
date of the enactment of this Act and provide not less 
than 60 days for public comment. 
(2) FINAL
REGULATIONS.—Final regulations 
shall be published not later than 180 days after the 
date of the enactment of this Act and shall be effective 
on the date that is 30 days after the date of publica-
tion. 
(3) PUBLIC PARTICIPATION.—The proposed regu-
lations required by subsection (a) and the final regu-
lations required by subsection (b) shall afford an op-
portunity for public participation in accordance with 
section 22 of the Office of Federal Procurement Policy 
Act (41 U.S.C. 418b). 
(b) BOARD OF DIRECTORS.—
(1) IN
GENERAL.—The Board of Directors of 
Federal Prison Industries shall issue regulations de-
fining the terms specified in paragraph (2). 
(2) TERMS TO BE DEFINED.—The Board of Di-
rectors shall issue regulations for the following terms: 
(A) Prison-made product. 
(B) Prison-furnished service.
(C) Specific product. 
(D) Specific service. 
(3) 
SCHEDULE
FOR
REGULATORY
DEFINI-
TIONS.—
(A) Proposed regulations relating to the 
matter described in subsection (b)(2) shall be 
published not later than 60 days after the date 
of enactment of this Act and provide not less 
than 60 days for public comment. 
(B) Final regulations relating to the mat-
ters described in subsection (b)(2) shall be pub-
lished not less than 180 days after the date of en-
actment of this Act and shall be effective on the 
date that is 30 days after the date of publication. 
(4) ENHANCED
OPPORTUNITIES
FOR
PUBLIC 
PARTICIPATION AND SCRUTINY.—
(A) ADMINISTRATIVE
PROCEDURE
ACT.—
Regulations issued by the Board of Directors 
shall be subject to notice and comment rule-
making pursuant to section 553 of title 5, United 
States Code. Unless determined wholly impracti-
cable or unnecessary by the Board of Directors, 
the public shall be afforded 60 days for comment 
on proposed regulations.
(B) ENHANCED OUTREACH.—The Board of 
Directors shall use means designed to most effec-
tively solicit public comment on proposed regula-
tions, procedures, and policies and to inform the 
affected public of final regulations, procedures, 
and policies. 
(C) 
OPEN
MEETING
PROCESSES.—The 
Board of Directors shall take all actions relating 
to the adoption of regulations, operating proce-
dures, guidelines, and any other matter relating 
to the governance and operation of Federal Pris-
on Industries based on deliberations and a re-
corded vote conducted during a meeting open to 
the public, unless closed pursuant to section 
552(b) of title 5, United States Code. 
SEC. 19. RULES OF CONSTRUCTION. 
(a) AGENCY BID PROTESTS.—Subsection (e) of section 
4124 of title 18, United States Code, as amended by section 
2, is not intended to alter any rights of any offeror other 
than Federal Prison Industries to file a bid protest in ac-
cordance with other law or regulation in effect on the date 
of the enactment of this Act. 
(b) JAVITS-WAGNER-O’DAY ACT.—Nothing in this Act 
is intended to modify the Javits-Wagner-O’Day Act (41 
U.S.C. 46, et seq.).
SEC. 20. EFFECTIVE DATE AND APPLICABILITY. 
(a) EFFECTIVE DATE.—Except as provided in sub-
section (b), this Act and the amendments made by this Act 
shall take effect on the date of enactment of this Act. 
(b) APPLICABILITY.—Section 4124 of title 18, United 
States Code, as amended by section 2, shall apply to any 
requirement for a product or service offered by Federal Pris-
on Industries needed by a Federal department or agency 
after the effective date of the final regulations issued pursu-
ant to section 18(a)(2), or after September 30, 2004, which-
ever is earlier. 
SEC. 21. CLERICAL AMENDMENTS. 
The table of sections for chapter 307 of title 18, United 
States Code, is amended—
(1) by amending the item relating to section 
4121 to read as follows:
‘‘4121. Federal Prison Industries; Board of Directors: executive management.’’;
(2) by amending the item relating to section 
4124 to read as follows:
‘‘4124. Governmentwide procurement policy relating to purchases from Federal 
Prison Industries.’’;
(3) by amending the item relating to section 
4127 to read as follows:
‘‘4127. Federal Prison Industries report to Congress.’’;
and
(4) by adding at the end the following new items:
‘‘4130. Construction of provisions. 
‘‘4131. Definitions.’’.
Union Calendar No. 165
108TH CONGRESS 
1ST SESSION 
H. R. 1829
[Report No. 108–286] 
A BILL 
To amend title 18, United States Code, to require 
Federal Prison Industries to compete for its con-
tracts minimizing its unfair competition with pri-
vate sector firms and their non-inmate workers 
and empowering Federal agencies to get the best 
value for taxpayers’ dollars, to provide a five-year 
period during which Federal Prison Industries 
adjusts to obtaining inmate work opportunities 
through other than its mandatory source status, 
to enhance inmate access to remedial and voca-
tional opportunities and other rehabilitative op-
portunities to better prepare inmates for a suc-
cessful return to society, to authorize alternative 
inmate work opportunities in support of non-
profit organizations, and for other purposes. 
SEPTEMBER 25, 2003
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed