‘‘(A) that is an organization described in 
section 501(c)(3) of the Internal Revenue Code 
of 1986 and exempt from taxation under sec-
tion 501(a) of such Code; and 
‘‘(B) that has demonstrated, for a period 
of not less than 5 years, expertise in the theory 
and practice of fostering inmate rehabilitation 
through work-based programs in cooperation 
with private sector firms. 
‘‘(3) With respect to the formation and per-
formance of an agreement authorized by this section, 
the Director of the Bureau of Prisons and the Chief 
Operating Officer of Federal Prison Industries shall 
be responsible only for— 
‘‘(A) maintaining appropriate institutional 
and inmate security; and 
‘‘(B) matters relating to the selection and 
payment of participating inmates. 
‘‘(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-
ten certification by the chief executive officer of the 
eligible entity that— 
‘‘(A) the work to be performed by the in-
mate workers will be limited to the eleemosy-
nary work of such entity in the case of an enti-
ty described in paragraph (1) or (2) of sub-
section (b);
‘‘(B) the work would not be performed but 
for the availability of the inmate workers; 
‘‘(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 
entity or any affiliate of the such entity. 
‘‘(2) PROTECTIONS
FOR
NON-INMATE
WORK-
ERS.—Each proposed agreement shall also be ac-
companied by a written certification by the chief ex-
ecutive officer of the eligible entity that— 
‘‘(A) no non-inmate employee or volunteer 
of the eligible entity (or any affiliate of the enti-
ty) 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 by a contractor 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 com-
ment, and be publicly considered and acted upon by 
the Board in a manner comparable to that required 
by paragraphs (6) and (7) 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 
prospects of obtaining employment paying a liv-
able 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 
equipment needed to perform the types of work 
to be performed; 
‘‘(C) not approve an agreement that will 
result in the displacement of non-inmate work-
ers or volunteers contrary to the representa-
tions required by subsection (e)(2) as deter-
mined by the Board or by the Secretary of 
Labor (pursuant to subsection (i)); and 
‘‘(D) not approve an agreement that will 
result, either directly or indirectly, in the pro-