(1) a contract solicitation provision requiring a 
contractor to offer to make use of Federal Prison 
Industries, its products or services; 
(2) specifications requiring the contractor to 
use specific products or services (or classes of prod-
ucts or services) offered by Federal Prison Indus-
tries in the performance of the contract; 
(3) any contract modification directing the use 
of Federal Prison Industries, its products or serv-
ices; or 
(4) any other means. 
SEC. 6. INMATE WAGES AND DEDUCTIONS. 
Section 4122(b) of title 18, United States Code (as 
amended by section 3 of this Act), is further amended by 
adding after paragraph (10) a new paragraph (11) as fol-
lows: 
‘‘(11)(A) The Board of Directors of Federal Prison 
Industries shall prescribe the rates of hourly wages to be 
paid inmates performing work for or through Federal 
Prison Industries. The Director of the Federal Bureau of 
Prisons shall prescribe the rates of hourly wages for other 
work assignments within the various Federal correctional 
institutions. In the case of an inmate whose term of im-
prisonment is to expire in not more than 2 years, wages 
shall be earned at an hourly rate of not less than $2.50,
but paid at the same rate and in the same manner as to 
any other inmate, and any amount earned but not paid 
shall be held in trust and paid only upon the actual expira-
tion of the term of imprisonment. 
‘‘(B) The various inmate wage rates shall be reviewed 
and considered for increase on not less than a biannual 
basis. 
‘‘(C) The Board of Directors of Federal Prison In-
dustries shall— 
‘‘(i) not later than September 30, 2005, in-
crease the maximum wage rate for inmates per-
forming work for or through Federal Prison Indus-
tries to an amount equal to 50 percent of the min-
imum wage prescribed by section 6(a)(1) of the Fair 
Labor 
Standards 
Act 
of 
1938 
(29 
U.S.C. 
206(a)(1)); 
‘‘(ii) not later than September 30, 2010, in-
crease such maximum wage rate to an amount equal 
to such minimum wage; and 
‘‘(iii) request the Secretary of Labor to estab-
lish, not later than October 1, 2005, an ‘inmate 
training wage’ pursuant to that Act. 
‘‘(D) Wages earned by an inmate worker shall be paid 
in the name of the inmate. Deductions, aggregating to not
more than 80 percent of gross wages, shall be taken from 
the wages due for— 
‘‘(i) applicable taxes (Federal, State, and local); 
‘‘(ii) payment of fines and restitution pursuant 
to court order; 
‘‘(iii) payment of additional restitution for vic-
tims of the inmate’s crimes (at a rate not less than 
10 percent of gross wages); 
‘‘(iv) allocations for support of the inmate’s 
family pursuant to statute, court order, or agree-
ment with the inmate; 
‘‘(v) allocations to a fund in the inmate’s name 
to facilitate such inmate’s assimilation back into so-
ciety, payable at the conclusion of incarceration; and 
‘‘(vi) such other deductions as may be specified 
by the Director of the Bureau of Prisons. 
‘‘(E) Each inmate worker working for Federal Prison 
Industries shall indicate in writing that such person— 
‘‘(i) is participating voluntarily; and 
‘‘(ii) understands and agrees to the wages to be 
paid and deductions to be taken from such wages.’’. 
SEC. 7. CLARIFYING AMENDMENT RELATING TO SERVICES. 
(a) IN GENERAL.—Section 1761 of title 18, United 
States Code, is amended in subsection (a), by striking 
‘‘any goods, wares, or merchandise manufactured, pro-
duced, or mined’’ and inserting ‘‘products manufactured, 
services furnished, or minerals mined’’. 
(b) COMPLETION OF EXISTING AGREEMENTS.—Any 
prisoner work program operated by a prison or jail of a 
State or local jurisdiction of a State which is providing 
services for the commercial market through inmate labor 
on October 1, 2004, may continue to provide such com-
mercial services until— 
(1) the expiration date specified in the contract 
or other agreement with a commercial partner on 
October 1, 2004, or 
(2) until September 30, 2008, if the prison 
work program is directly furnishing the services to 
the commercial market. 
(c) APPROVAL REQUIRED FOR LONG-TERM OPER-
ATION.—A prison work program operated by a correc-
tional institution operated by a State or local jurisdiction 
of a State may continue to provide inmate labor to furnish 
services for sale in the commercial market after the dates 
specified in subsection (b) if such program has been cer-
tified pursuant to section 1761(c)(1) of title 18, United 
States Code, and is in compliance with the requirements 
of such subsection and its implementing regulations.
SEC. 8. CONFORMING AMENDMENT. 
Section 4122(a) of title 18, United States Code, is 
amended by striking ‘‘production of commodities’’ and in-
serting ‘‘production of products or furnishing of services’’. 
SEC. 9. RULES OF CONSTRUCTION RELATING TO CHAPTER 
307. 
Chapter 307 of title 18, United States Code, is fur-
ther amended by adding the following: 
‘‘§ 4130. Construction of provisions 
‘‘Nothing in this chapter shall be construed— 
‘‘(1) to establish an entitlement of any inmate 
to— 
‘‘(A) employment in a Federal Prison In-
dustries facility; or 
‘‘(B) any particular wage, compensation, 
or benefit on demand, except as otherwise spe-
cifically provided by law or regulation; 
‘‘(2) to establish that inmates are employees for 
the purposes of any law or program; or 
‘‘(3) to establish any cause of action by or on 
behalf of any inmate against the United States or 
any officer, employee, or contractor thereof.’’. 
SEC. 10. PROVIDING ADDITIONAL REHABILITATIVE OPPOR-
TUNITIES FOR INMATES. 
(a) ADDITIONAL EDUCATIONAL, TRAINING, AND RE-
LEASE-PREPARATION OPPORTUNITIES.—