HR 2965 RFS 
(d) CONFORMING AMENDMENT.—Section 1761 of 
title 18, United States Code, as amended by section 7, 
is further amended— 
(1) by redesignating subsection (e) as sub-
section (f); and 
(2) inserting after subsection (d) the following 
new subsection: 
‘‘(e) This section shall not apply to products produced 
or services furnished with inmate labor incidental to the 
work-based training program authorized pursuant to sec-
tion 4124b of this title.’’. 
SEC. 12. RESTRUCTURING THE BOARD OF DIRECTORS. 
(a) IN GENERAL.—Section 4121 of title 18, United 
States Code, is amended to read as follows: 
‘‘§ 4121. Federal Prison Industries; Board of Direc-
tors: 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 insti-
tutions as authorized by its Board of Directors. The man-
ner and extent to which such industrial operations are car-
ried 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. 
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‘‘(2) In making appointments to the Board, the 
President shall assure that 3 members represent the busi-
ness community, 3 members represent organized labor, 1 
member shall have special expertise in inmate rehabilita-
tion techniques, 1 member represents victims of crime, 1 
member represents the interests of Federal inmate work-
ers, and 2 additional members whose background and ex-
pertise the President deems appropriate. The members of 
the Board representing the business community shall in-
clude, to the maximum extent practicable, representation 
of firms furnishing services as well as firms producing 
products, especially from those industry categories from 
which Federal Prison Industries derives substantial sales. 
The members of the Board representing organized labor 
shall, to the maximum 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; 
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‘‘(C) 2 members whose background and exper-
tise 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 
Federal inmate workers shall be appointed for a 
term of 3 years; 
‘‘(F) 1 member representing the business com-
munity shall be appointed for a term of 4 years; 
‘‘(G) 1 member representing the business com-
munity shall be appointed for a term of 4 years; and 
‘‘(H) the members having special expertise in 
inmate 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 
appointed to fill a vacancy occurring before the expiration 
of the term for which the member’s predecessor was ap-
pointed shall be appointed for the remainder of that term. 
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‘‘(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 
approval of the Chairperson of the Board, while otherwise 
away from their homes or regular places of business for 
purposes 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 Oper-
ating Officer of the Corporation.’’. 
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