‘‘(e) SUPPORT FOR OTHER RELEASE PREPARATION 
PROGRAMS.—In addition to the matters listed in section 
4124a(d) of this title, a proposal for an agreement re-
ferred to in such section submitted by an eligible business 
entity shall specify an amount of any supplemental fund-
ing, specified as a per-capita amount for each inmate par-
ticipating pursuant to the agreement, that the business 
entity will provide for the purpose of supporting remedial, 
vocational, and other release preparation programs for 
other nonparticipating inmates. 
‘‘(f) ADDITIONAL STANDARDS APPLICABLE.—In con-
sidering a proposed agreement pursuant to section 
4124a(f)(1) of this title, the Board of Directors shall— 
‘‘(1) give preference to an agreement that pro-
poses— 
‘‘(A) work-based training opportunities 
that provide the participating inmate the best 
prospects for obtaining employment paying a 
livable wage upon release; 
‘‘(B) the highest per-capita amount pursu-
ant to subsection (e) relating to providing fi-
nancial support for release preparation for 
other inmates; and 
‘‘(C) the highest inmate wage rates; 
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‘‘(2) not approve any agreement with respect to 
furnishing services of the type described in section 
4122(b)(6)(D)(iii) of this title; 
‘‘(3) not approve any agreement with respect to 
furnishing construction services described in section 
4122(b)(6)(D)(iv) of this title, unless to be per-
formed within a Federal correctional institution; 
‘‘(4) not approve an agreement that does not 
meet the standards of subsection (b); and 
‘‘(5) request a determination from the Depart-
ment of Commerce (and such other executive branch 
entities as may be appropriate), regarding whether a 
product or service is of the type being produced or 
performed in the United States by noninmate work-
ers, whenever the Board determines that such an ad-
ditional assessment is warranted, including upon a 
request from an interested party presenting informa-
tion that the Board deems to warrant such addi-
tional assessment prior to the Board’s consideration 
of the proposed agreement. 
‘‘(g) LIMITATIONS ON THE USE OF THE AUTHOR-
ITY.— 
‘‘(1) NO SALES BY FEDERAL PRISON INDUS-
TRIES.—Federal Prison Industries is prohibited 
from directly offering for commercial sale products 
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produced or services furnished by Federal inmates, 
including through any form of electronic commerce. 
‘‘(2) DURATION.— 
‘‘(A) No proposed agreement pursuant to 
this subsection may be approved by the Board 
of Directors after September 30, 2020. 
‘‘(B) Performance of all such agreements 
shall be concluded prior to October 1, 2025.’’. 
(b) REVIEW AND REPORTING BY THE ATTORNEY 
GENERAL.—Not less than biannually, beginning in fiscal 
year 2014, the Attorney General shall meet in person 
jointly with the Chairman of the Board of Directors and 
the Chief Executive Officer of Federal Prison Industries 
to review the progress that Federal Prison Industries is 
making in maximizing the use of the authority provided 
by sections 4124a and 4124b of title 18, United States 
Code. The Attorney General shall provide annually a writ-
ten report to the Committees on the Judiciary and Appro-
priations of the House of Representatives and the Senate 
addressing such progress by Federal Prison Industries. 
(c) GAO ASSESSMENT OF WORK-BASED TRAINING 
PROGRAM.— 
(1) IN GENERAL.—The Comptroller General of 
the United States shall undertake an on-going as-
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sessment of the authority granted by section 4124b 
of title 18, United States Code. 
(2) MATTERS TO BE ASSESSED.—In addition to 
such other matters as the Comptroller General 
deems appropriate, the assessment shall include— 
(A) efforts to recruit private for-profit 
business entities to participate; 
(B) the quality of training provided to in-
mates; 
(C) the amounts and types of products and 
services that have been produced incident to the 
work-based training programs; 
(D) the types of worksite arrangement that 
encourage business concerns to voluntarily enter 
into such partnerships; 
(E) the extent and manner of the partici-
pation of supervisory, quality assurance, and 
other management employees of the partici-
pating business entity in worksites within cor-
rectional facilities of various levels of security; 
(F) the extent of the facilities, utilities, 
equipment, and personnel (other than security 
personnel) provided by the host correctional 
agency, and extent to which such resources are 
provided on a nonreimbursable basis; 
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(G) the rates of wages paid to inmate 
workers and the effect that such wage rates 
have on willingness of business entities to par-
ticipate; 
(H) any complaints filed regarding the dis-
placement of noninmate workers or of inmate 
workers being paid less than required wages 
and the disposition of those complaints; 
(I) any sanctions recommended relating to 
displacement of noninmate workers or payment 
of less than the required wages, and the dis-
position of such proposed sanctions; 
(J) the extent to which the new authority 
provided additional inmate work opportunities 
assisting the Bureau of Prisons in attaining its 
objective of providing 25 percent of the work- 
eligible inmates with work opportunities within 
Federal Prison Industries; 
(K) measures of any adverse impacts of 
implementation of the new authority on busi-
ness concerns using noninmate workers that are 
engaged in providing similar types of products 
and services in direct competition; and 
(L) a compilation of data relating work op-
portunities for Federal inmates with work as-
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signments with Federal Prison Industries pro-
vided by— 
(i) sales to Federal agencies pursuant 
to the status of Federal Prison Industries 
as a mandatory source of supply during 
the period fiscal year 1990 through fiscal 
year 2012; 
(ii) sales to Federal agencies of serv-
ices, both through non-competitive inter-
agency transfers and as a result of direct 
competition from private-sector offerors 
during the period fiscal year 1990 though 
fiscal year 2012; 
(iii) performance as a subcontrator to 
a Federal prime contractor or Federal sub-
contractor at a higher tier beginning in fis-
cal year 1990; 
(iv) introduction of inmate-furnished 
services into the commercial market, begin-
ning in the second quarter of fiscal year 
1998; 
(v) alternative inmate work opportuni-
ties, beginning in fiscal year 2014, pro-
vided by agreements with— 
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(I) non-profit organizations, pur-
suant to section 4124a(b)(1) of title 
18, United States Code, and section 
10(c); 
(II) religious organizations, pur-
suant to section 4124a(b)(2) of title 
18, United States Code; 
(III) units of local governments, 
school districts, or other special pur-
pose districts, pursuant to section 
4124a(b)(3) of title 18, United States 
Code; 
(IV) 
work-based 
Employment 
Preparation Programs for Federal in-
mates, pursuant to section 4124b of 
title 18, United States Code; or 
(V) other means. 
(3) OPPORTUNITY
FOR
PUBLIC
COMMENT.— 
The Comptroller General shall provide an oppor-
tunity for public comment on the proposed scope 
and methodology for the assessment required by 
paragraph (1), making such modifications in re-
sponse to such comments as he deems appropriate. 
(4) REPORTS AND RECOMMENDATIONS.— 
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(A) IN GENERAL.—The Comptroller Gen-
eral shall submit to the Congress in accordance 
with this subsection two interim reports and a 
final report of the assessment of implementa-
tion of the new authority, including such rec-
ommendations as the Comptroller General may 
deem appropriate. 
(B) INTERIM REPORTS.—The two interim 
reports shall encompass the assessment of the 
implementation of the new authority— 
(i) from the effective date of the au-
thority through the end of fiscal year 
2016; and 
(ii) from the effective date of the au-
thority through the end of fiscal year 
2019. 
(C) FINAL
REPORT.—The final report 
shall assess the implementation of the new au-
thority from the effective date of the authority 
through the end of fiscal year 2020. 
(D) 
SUBMISSION
TO
CONGRESS.—The 
Comptroller General shall submit the reports 
required by this paragraph within 6 months 
after the end of the fiscal years referred to in 
subparagraphs (B) and (C). 
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(d) CONFORMING AMENDMENT.—Section 1761 of 
title 18, United States Code, as amended by section 7, 
is further amended— 
(1) by redesignating subsection (f) as sub-
section (g); and 
(2) by inserting after subsection (e), as so re-
designated by section 7(e) of this Act, the following 
new subsection: 
‘‘(f) 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. DIRECTOR OF THE BUREAU OF PRISONS. 
(a) IN GENERAL.—Section 4041 of title 18, United 
States Code, is amended by striking ‘‘appointed by and 
serving directly under the Attorney General.’’ and insert-
ing the following: ‘‘who shall be appointed by the Presi-
dent by and with the advice and consent of the Senate. 
The Director shall serve directly under the Attorney Gen-
eral.’’. 
(b) INCUMBENT.—Notwithstanding the amendment 
made by subsection (a), the individual serving as the Di-
rector of the Bureau of Prisons on the date of enactment 
of this Act may serve as the Director of the Bureau of 
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Prisons until the date that is 3 months after the date of 
enactment of this Act. 
(c) RULE OF CONSTRUCTION.—Nothing in this Act 
shall be construed to limit the ability of the President to 
appoint the individual serving as the Director of the Bu-
reau of Prisons on the date of enactment of this Act to 
the position of the Director of the Bureau of Prisons in 
accordance with section 4041 of title 18, United States 
Code, as amended by subsection (a). 
SEC. 13. 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. 
‘‘(2) In making appointments to the Board, the 
President shall assure that 3 members represent the busi-
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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; 
‘‘(C) 2 members whose background and exper-
tise the President deems appropriate for a term of 
3 years; 
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‘‘(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. 
‘‘(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-
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