A bill to enable all able-bodied Federal prisoners to work.

SECTION 1. DIRECT SALE OF EXCESS PROPERTY.

    (a) Amendment of Title 18, United States Code.--
            (1) In general.--Chapter 307 of title 18, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 4130. Direct sale of excess property
    ``Notwithstanding any other law, Federal Prison Industries may sell 
on the open market at the best available price such excess or 
obsolescent property as Federal Prison Industries deems appropriate, 
the proceeds of such sales to be deposited in the Treasury to the 
credit of the Prison Industries Fund.''.
            (2) Technical amendment.--The chapter analysis for chapter 
        307 of title 18, United States Code, is amended by adding at 
        the end the following new item:

``4130. Direct sale of excess property.''.
    (b) Amendment of the Federal Property and Administrative Services 
Act.--Section 602 of the Federal Property and Administrative Services 
Act of 1949 (40 U.S.C. 474) is amended--
            (1) by striking ``or'' at the end of paragraph (20);
            (2) by striking the period at the end of paragraph (21) and 
        inserting ``; or''; and
            (3) by adding after paragraph (21) the following new 
        paragraph:
            ``(22) Federal Prison Industries with respect to the 
        disposal of property described in section 4130 of title 18, 
        United States Code.''.
    (c) Transportation and Importation.--Section 1761(b) of title 18, 
United States Code, is amended by inserting ``, nor to property 
described in section 4130'' before the period.

SEC. 2. PRISON INDUSTRIES FUND; USE AND SETTLEMENT OF ACCOUNTS.

    Section 4126 of title 18, United States Code, is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Federal Prison Industries shall determine the character of 
and necessity for its obligations and expenditures, and the manner in 
which they shall be incurred, allowed, and paid, subject to laws 
specifically applicable to government corporations.'';
            (2) by striking subsections (d) and (e); and
            (3) by redesignating subsection (f) as subsection (d).

SEC. 3. ADMINISTRATION OF FEDERAL PRISON INDUSTRIES.

    Section 4122(a) of title 18, United States Code, is amended to read 
as follows:
    ``(a)(1) As authorized by this chapter, Federal Prison Industries 
shall determine in what manner and to what extent industrial operations 
shall be carried on in Federal penal and correctional institutions for 
the production of commodities and services.
    ``(2) Commodities and services produced by Federal Prison 
Industries shall be sold at current market prices and shall conform to 
design, quality, and testing standards of the Federal Government and 
the relevant private industry.''.

SEC. 4. PRODUCTION AND ACQUISITION OF PRISON-MADE PRODUCTS, PROCESSES 
              AND SERVICES.

    (a) In General.--Section 4124 of title 18, United States Code, is 
amended--
            (1) by striking ``(b) Disputes'' and inserting ``(f) 
        Disputes.--Disputes'';
            (2) by striking ``(c) Each'' and inserting ``(g) Reporting 
        of Acquisitions.--Each'';
            (3) by striking ``(d) Within'' and inserting ``(h) 
        Catalog.--Within''; and
            (4) by striking the heading and subsection (a) and 
        inserting the following:
``Sec. 4124. Production and acquisition of prison-made products, 
              processes, and services
    ``(a) Relationship Between Federal Prison Industries and Government 
Institutions.--The Federal departments and agencies and all other 
Government institutions of the United States shall--
            ``(1) purchase from Federal Prison Industries such 
        products, processes, or services of the industries authorized 
        by this chapter as meet their requirements and may be 
        available, except that if Federal Prison Industries and the 
        workshops for the blind or other severely handicapped each 
        offer competitive services, priority shall be afforded to 
        services offered by the workshops; and
            ``(2) provide to Federal Prison Industries the maximum 
        practicable opportunity to participate as a subcontractor in 
        labor-intensive, light manufacturing segments of contracts 
        awarded, consistent with efficient contract performance.
    ``(b) Production of Products, Processes, and Services Otherwise 
Produced Offshore.--(1) Notwithstanding any other law and subject to 
the limitations stated in this subsection, Federal Prison Industries 
may produce or provide for sale on the open market processes, products, 
and services that would otherwise be produced by foreign labor at 
offshore locations.
    ``(2) Federal Prison Industries may enter into agreements with 
private industry in order to carry out this section.
    ``(3) The board of directors of Federal Prison Industries shall 
certify that processes, products, or services undertaken under this 
section--
            ``(A) are labor-intensive and limited to levels that 
        replace goods and services produced by offshore labor; and
            ``(B) do not significantly increase competition with any 
        remaining domestic labor or industry.
    ``(c) Recycling of Materials for Sale on the Open Market.--
Notwithstanding any other law, Federal Prison Industries may produce 
and provide for sale on the open market recycled materials directly or 
in partnership with private sector firms.
    ``(d) Flood or Other Disaster Relief Activities.--Notwithstanding 
any other law, Federal Prison Industries may produce or provide goods 
and services for sale or donation on the open market to private, 
nonprofit organizations chartered by Congress to assist in flood or 
other disaster relief programs or activities.
    ``(e) Exemptions From Requirements of Other Laws.--(1)(A) Items 
sold on the open market pursuant to the authority granted in this 
chapter are exempt from the prohibition against shipment in commerce of 
prison-made goods contained in section 1761.
    ``(B) Inmates who work on the production of products or processes 
or provide services under this section are exempt from the minimum wage 
requirements of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et 
seq.).
    ``(2) Section 4122(b) (4) and (5) do not apply with respect to 
production undertaken pursuant to subsection (b) or (c).''.
    (b) Technical Amendment.--The chapter analysis for chapter 307 of 
title 18, United States Code, is amended by striking the item relating 
to section 4124 and inserting the following:

``4124. Production and acquisition of prison-made products, processes, 
                            and services.''.

SEC. 5. PROCUREMENT.

    (a) In General.--Chapter 307 of title 18, United States Code, as 
amended by section 1(a), is amended by adding at the end the following 
new section:
``Sec. 4131. Procurement
    ``(a) In General.--Funds available to Federal Prison Industries may 
be used to enter into contracts directly related to the purchase of 
goods for industrial operations authorized under this chapter without 
regard to laws governing procurement by Federal agencies.
    ``(b) Rule of Construction.--Nothing in this section shall be 
construed to affect any requirement of law to purchase commodities and 
services produced or provided by qualified nonprofit agencies for the 
blind and other severely handicapped.
    ``(c) Procedures.--The board of directors of Federal Prison 
Industries shall establish procedures to ensure that any such 
procurements are conducted in a manner that promotes competition 
consistent with the needs of the Corporation.''.
    (b) Technical Amendment.--The chapter analysis for chapter 307 of 
title 18, United States Code, is amended by adding at the end the 
following new item:

``4131. Procurement.''.

Summary: Amends the Federal criminal code to authorize Federal Prison Industries (FPI) to sell excess or obsolescent property on the open market at the best available price, with the proceeds of such sales to be deposited to the Prison Industries Fund. 
Requires FPI to determine the character of and necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid, subject to laws applicable to Government corporations.  (Current law requires FPI to deposit all of its monies into the Fund.) 
Requires commodities and services produced by FPI to be sold at current market prices and to conform to Federal and relevant private industry design, quality, and testing standards. 
 Accords services of the workshops for the handicapped priority for Federal purchasing over those offered by FPI if both entities offer competitive services.  Requires Federal agencies to provide to FPI the maximum opportunity to participate as a subcontractor in labor-intensive, light manufacturing segments of awarded contracts. 
Authorizes FPI to:    (1) produce or provide for sale on the open market processes, products, and services that would otherwise be produced by foreign labor at offshore locations; and (2) enter into agreements with private industry for such purposes.  Requires FPI to certify that such products, processes, or services:  (1) are labor-intensive and limited to levels that replace goods and services produced by offshore labor; and (2) do not significantly increase competition with any remaining domestic labor or industry. 
Authorizes FPI to:  (1) produce and provide recycled materials for sale on the open market; and (2) produce or provide goods and services for sale or donation on the open market to private, nonprofit organizations to assist in disaster relief. 
Exempts:  (1) items sold on the open market pursuant to this Act from the prohibition against shipment in commerce of prison-made goods; and (2) inmates who work on the production of products or services from the minimum wage requirements of the Fair Labor Standards Act of 1938. 
Authorizes FPI funds to be used to enter into contracts related to the purchase of goods for industrial operations without regard to laws governing procurement by Federal agencies.