[Congressional Record Volume 152, Number 114 (Thursday, September 14, 2006)]
[House]
[Pages H6561-H6579]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
FEDERAL PRISON INDUSTRIES COMPETITION IN CONTRACTING ACT OF 2006
The SPEAKER pro tempore. Pursuant to House Resolution 997 and rule
XVIII, the Chair declares the House in the Committee of the Whole House
on the State of the Union for the consideration of the bill, H.R. 2965.
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In the Committee of the Whole
Accordingly, the House resolved itself into the Committee of the
Whole House on the State of the Union for the consideration of the bill
(H.R. 2965) to amend title 18, United States Code, to require Federal
Prison Industries to compete for its contracts minimizing its unfair
competition with private sector firms and their noninmate workers and
empowering Federal agencies to get the best value for taxpayers'
dollars, to provide a 5-year period during which Federal Prison
Industries adjusts to obtaining inmate work opportunities through other
than its mandatory source status, to enhance inmate access to remedial
and vocational opportunities and other rehabilitative opportunities to
better prepare inmates for a successful return to society, to authorize
alternative inmate work opportunities in support of nonprofit
organizations and other public service programs, and for other
purposes, with Mr. Boozman in the chair.
The Clerk read the title of the bill.
The CHAIRMAN. Pursuant to the rule, the bill is considered read the
first time.
The gentleman from Wisconsin (Mr. Sensenbrenner) and the gentleman
from Michigan (Mr. Conyers) each will control 30 minutes.
The Chair recognizes the gentleman from Wisconsin.
Mr. SENSENBRENNER. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, I rise in strong support of H.R. 2965, the Federal
Prison Industries Competition and Contracting Act of 2006. This bill is
substantially similar to H.R. 1829, which this body passed
overwhelmingly during the 108th Congress by a vote of 350-65.
As reported by the Judiciary Committee, the bill includes additional
bipartisan improvements that resulted from negotiations with the
Justice Department, prison fellowship, and other interested parties.
Since my early days in the Congress, I have been committed to
reforming Federal Prison Industries, or FPI, because I believe the
manner in which this program currently operates imposes unacceptable
burdens on government agencies, taxpayers, inmates, and private sector
businesses.
Under the current system, Federal agencies are required by law to
purchase FPI products that meet the agencies' requirements and do not
exceed current market prices. The mandatory source requirement
eliminates competition with the private sector, harming businesses and
stifling the creation of new jobs for law-abiding Americans. FPI enjoys
a mandatory market for its goods, a facility to produce them in and
cheap labor to manufacture them.
Despite these advantages, government agencies frequently pay more for
FPI products than if they were purchased from the private sector. The
Government Accountability Office concluded in a 1988 report that ``The
only limitation on FPI's price is that it may not exceed the upper end
of the current market price range.'' The GAO report also raised
questions about the timeliness of delivery of these products and the
quality of FPI products.
While the FPI has had serious problems, this legislation does not
seek to eliminate it, but would reform FPI to require that it compete
for Federal Government contracts in the same manner as other
businesses. FPI is well equipped to succeed in the competitive
marketplace because it is not faced with the same operating costs as
average businesses, such as providing health insurance, retirement
benefits, or paying union wages. And the facilities, of course, that
FPI does use in the manufacturing process are Federal prisons and not
on property tax rolls.
In recent years, FPI has demonstrated its competitiveness by
obtaining several large, multiyear contracts with the Department of
Defense and other Federal agencies, even though government procurement
policies have been changed to permit these agencies to determine
whether FPI products meet competitive pricing and quality benchmarks.
This legislation also helps inmates by establishing a position of
Inmate Work Training Administrator to create additional inmate work
opportunities, and allows FPI to create a program that will allow
inmates to perform jobs that are being performed outside the United
States. The bill also addresses concerns about providing meaningful
training for inmates by requiring FPI to devote some of its earnings to
additional inmate vocational training, education opportunities, and
release preparation.
The bill increases access to educational opportunities, including
remedial and modern, hands-on vocational programs which have been shown
to be effective in reducing recidivism. The bill provides alternative
inmate work opportunities by authorizing the production of products or
services for donation to community service organizations, and allows
Federal inmates to perform public service work for units of local
government.
Finally, the bill addresses concerns about the low wages paid to
inmates by requiring the Secretary of Labor to establish an inmate
training wage in consultation with the Attorney General for those
performing FPI jobs.
Mr. Chairman, as Members of Congress, we have a duty to ensure that
government corporations do not take away opportunities from small
businesses. We have a duty to ensure that the taxpayers' money is
wisely spent. Neither of these things can be guaranteed under the
current FPI regime. By passing this legislation we will ensure that all
Federal Government agencies will have the ability to utilize taxpayer
dollars in the most efficient manner possible, and that private
industry will have the right to compete with FPI for contracts.
H.R. 2965 will also ensure the continued viability of FPI, and
provides many avenues for FPI to pursue alternative rehabilitative work
and training opportunities for inmates.
Mr. Chairman, I am proud of this comprehensive legislation to reform
the Federal Prison Industries. I urge Members to support it.
Mr. Chairman, I reserve the balance of my time.
Mr. CONYERS. Mr. Chairman, I yield myself as much time as I may
consume.
Ladies and gentlemen of the Congress, this is a very important and
sensitive issue that is being brought by Chairman Sensenbrenner and
myself
[[Page H6562]]
today in support of H.R. 2965: How do we deal with the rehabilitation
of prisoners and balance it against the rising unemployment that is
affecting and afflicting this Nation so much?
As currently drafted, this bill, to me, strikes the appropriate
balance between the needs of Federal inmates versus the needs of
everyday men and women looking for gainful employment in the civilian
workforce; and this was arrived at through a great deal of activity and
negotiation with Members on both sides of the aisle.
First, the legislation establishes a gradual phaseout of the current
mandatory source requirement. As many know, the mandatory source
requirement compels all Federal agencies to purchase their goods and
services from the Federal Prison Industries program. A phaseout of this
requirement will allow private sector companies to effectively compete
for additional Federal contracts, which in turn will produce an
increase in private sector jobs, many to be filled by members of our
local labor unions across the country.
The second thing we do here is to ensure that the Federal inmates
continue to have adequate access to training opportunities during and
after the phaseout. The legislation authorizes a minimum of $75 million
a year for purposes of educating inmates and teaching them valuable
vocational skills. This new language was added to the text of the
underlying bill at my request and will guarantee that all Federal
inmates are equipped with the necessary skills to successfully reenter
society upon their release from prison.
This has been a very difficult problem in the corrections arena over
the years. This is not new. It is something we have been working on for
a long time, and we have come to this new agreement that is embodied in
H.R. 2965.
And, finally, to protect against inmate idleness and assure that the
safety of prison guards is intact, the legislation includes what has
been referred to as a safety valve. The safety valve would allow the
Attorney General to direct the award of a sole-source contract to the
Federal Prison Industries whenever necessary to, ``prevent
circumstances that could reasonably be expected to significantly
endanger the safe and effective administration'' of a particular
prison.
Now, we all know that the job market, and the economy as a whole for
that matter, have not fared well under the current administration. In
Michigan alone the State's unemployment rate is roughly 7 percent, but
in some areas it is 5 or 6 times that much, which, as of this summer,
tied Michigan's unemployment rate for the second highest in the Nation.
Something has to be done to help these hardworking men and women
obtain jobs in the private sector and yet continue the support for
Prison Industries which has worked so well, and this bill represents
the best thinking in that regard. That is why this legislation has been
endorsed by the United Automobile Workers, the Teamsters, the Food and
Commercial Workers, the United Brotherhood of Carpenters, the
Machinists United, and many others. I think that we finally reached the
kind of a compromise that takes both of these matters into
consideration, how we deal with the problem of rising unemployment in
the private sector, and with the great challenge to prepare those who
are coming out of incarceration to gain valuable vocational skills and
prepare themselves for returning to our society.
I urge your serious consideration of this matter.
Mr. Chairman, I reserve the balance of my time.
Mr. SENSENBRENNER. Mr. Chairman, I reserve the balance of my time.
Mr. CONYERS. I yield 7 minutes to my colleague who has worked on this
matter for many years, Bobby Scott, a distinguished member of the
Judiciary Committee from Virginia.
Mr. SCOTT of Virginia. Mr. Chairman, I rise in opposition to H.R.
2965, the Federal Prison Industries Competition in Contracting Act.
The Federal Prison Industries program was signed into law by
President Roosevelt in 1934, in the midst of the Great Depression. This
program was enacted as a way to protect the public by teaching
prisoners real work habits and skills, so that when they are released,
they will be better able to find and hold a job to support themselves
and their families and be less likely to commit crimes in the future.
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It is clear that the program has done just that. Follow-up studies
covering as much as 16 years of data have shown that inmates who
participate in Prison Industries are much more likely to be employed
and much less likely to commit crimes than prisoners who do not
participate in the program. While this certainly benefits offenders and
their families, the real public policy benefit is that, as a result of
this program, there are fewer victims of crime.
Contrary to the indication given by the proponents of this bill, the
FPI program does not have a significant impact on business and labor.
In its first year of operation, the percent of Federal contract
procurement from FPI represented one-fourth of 1 percent of total
annual Federal agency procurement dollars; and it is the same today,
one-fourth of 1 percent, and this is just Federal procurement. It is
obviously a minuscule portion of the total economy.
Critics, who were philosophically opposed to the program back in the
1930s and they are still opposed today, suggest that FPI has caused
substantial losses in jobs for law-abiding citizens. The furniture and
apparel industries are the two industries in which FPI has
traditionally done most of its work. When asked under oath,
representatives of these industries testified that the FPI sales
represent an insignificant and negligible portion of their industries.
At our last hearing, the office furniture industry representative was
not able to point to any loss to his industry caused by FPI.
I am the first to concede that there may be problems with FPI that
need improvement, and we have made improvements through activities in
Congress and the FPI board over the last 10 years. While it is
understandable that every company that does not get a contract that FPI
gets may be disappointed, just as they would be disappointed if another
company got the same contract, the public safety and institutional
safety and management benefits of this program have an insignificant
impact on business and labor, and it is a public policy success story.
All able inmates in the Federal system are required, by law, to work.
Non-FPI inmate jobs pay about $0.12 to $0.30 an hour, while FPI jobs
pay about $1 up to $1.15 per hour. There are currently enough FPI jobs
for only 18 percent of the work-eligible population. The other 82
percent of the prisoners work in non-FPI-related maintenance jobs.
In 2000, FPI jobs represented 25 percent of the prison jobs. In
recent years, however, because we have passed restrictions like there
are in this bill, there are fewer jobs and that has caused the
elimination of over 2,000 jobs at the same time that the prison
population has increased by 23,000 inmates, and it is still increasing.
This bill will shrink FPI jobs even more.
We need to promote, not reduce, Federal Prison Industries jobs
because the FPI program strongly supports education. To hold down an
FPI job, an inmate must have completed high school, or be making steady
progress towards obtaining a GED, and maintain a good record of
behavior. This is not only true for those who hold FPI jobs but also
those who are on the waiting list for a job, as well as those seeking
to establish eligibility to be placed on the waiting list; and once in
an FPI job, an inmate cannot earn more than $0.40 an hour until he
earns a GED. That is why FPI is not only a great job skills development
and education development tool, but it is also a great management tool
to help ensure prisons operate efficiently and safely for prison
employees as well as inmates. I have never met a prison administrator
who does not support this program.
Few offenders enter the program with marketable work skills. The vast
majority do not even have basic work habits, such as showing up for
work on time each day and working cooperatively and productively with
others. Such work habits are required to maintain an FPI job. These are
the same work habits required to be a good, productive, desirable
worker anywhere, and that is why inmates who have FPI work experience
have been found to be significantly more employable than those that do
not.
[[Page H6563]]
I oppose this bill because it will obviously reduce job
opportunities. The bill amends the current requirement in law for
agencies to purchase goods from FPI and establishes a competitive bid
process for agency purchases of goods and services from FPI, unless the
Attorney General and the Bureau of Prisons certify that they cannot
safely run the prisons without the particular contract award. It is
unrealistic to expect that any official would publicly admit such a
level of incompetence in order to obtain a contract, so it is unlikely
that that provision will ever be used.
The bill claims to make an effort to replace mandatory source and
service contracts by providing a transition preference program for
agencies using FPI, by authorizing new options such as providing
products or services to charitable and nonprofit organizations
contingent on appropriations, by allowing FPI to provide services and
products to Federal agencies on a noncompetitive basis if they would
otherwise be provided from offshore, and by authorizing work training
programs for FPI to produce goods and services for private companies if
the goods and services are not produced anywhere in the United States.
However, there is no basis for concluding that these authorities
would replace the loss of jobs now available and legally sanctioned,
and it is unlikely to suspect that the appropriations would be made or
that the job training programs will be sufficient because most of the
job training programs are 2 years at most. Obviously, people with
longer sentences cannot benefit from that.
So before we decimate what the Department of Justice defines as the
most important rehabilitation program, without a reliable replacement
for those jobs, I believe we should direct a comprehensive study of its
impact on labor and business and its beneficial impact on public safety
before we do anything else.
In the face of all the good that this program does, I do not believe
that we should throw the baby out with the bath water. Mr. Chairman, I
would hope that we would defeat the bill and we maintain these jobs.
Mr. SENSENBRENNER. Mr. Chairman, I yield 4 minutes to the gentleman
from Michigan (Mr. Hoekstra), the author of the bill.
Mr. HOEKSTRA. Mr. Chairman, I would like to thank the chairman of the
Judiciary Committee, as well as the ranking member of the committee,
for the great work that we have been able to do together and the
support that I have gotten from various individuals, as well as Mr.
Frank, Mr. Coble, Mrs. Maloney. We have put together a very effective
bipartisan team to work on this issue.
My colleague from Wisconsin calls me the Johnny-come-lately to this
issue, and he was working on this well before I did. I feel honored to
have him call me the author of this bill, and I am only the author of
this bill because in all the other things that the chairman of
Judiciary Committee is working on he has given me the opportunity to
lead on this issue.
But I very much appreciate the work that we have done with Mr.
Conyers as well. It has been a very, very effective group.
Mr. CONYERS. Mr. Chairman, will the gentleman yield?
Mr. HOEKSTRA. I yield to the gentleman from the great State of
Michigan.
Mr. CONYERS. Mr. Chairman, I want to thank Mr. Hoekstra personally
for the great work that he has done, not just on this bill but earlier
bills as well. This is not a subject on which you have just jumped
onboard. I appreciate, across the years, our working together on it.
Mr. HOEKSTRA. Well, thank you very much, and it is because of this
kind of cooperation.
My objective is still to get our other colleague over there, Mr.
Scott, onboard. We have evolved this bill a long way to try to get Mr.
Scott to be onboard in terms of the phase-in and phase-out of the
provisions of this bill, the number of other work opportunities that we
have put into this bill, the opportunities to work with not-for-profits
and those types of things, but we are not quite there yet. Are we
there?
Mr. SCOTT of Virginia. Mr. Chairman, will the gentleman yield?
Mr. HOEKSTRA. I yield to the gentleman from Virginia.
Mr. SCOTT of Virginia. Mr. Chairman, I thank the gentleman for
yielding.
I would tell my friend from Michigan that you would get my support if
you just guaranteed that the jobs would be there. We need people
working on these jobs. If they are working on jobs, there will be less
crime. So anything that will guarantee the jobs I can support.
Mr. HOEKSTRA. Reclaiming my time, I think the bill allows the
Attorney General and gives the Attorney General the responsibility to
make sure that the Attorney General can take the actions necessary to
keep prisons safe and to allow workers or prisoners to get the skills
that they need.
We have put together a very, very good coalition, the business
groups, the Teamsters, the organized labor, UAW, UNITE-HERE,
Machinists, Carpenters and a lot of other folks.
Mr. CONYERS. Mr. Chairman, if the gentleman would yield to just allow
me this, because I think what the gentleman from Virginia raised is a
very important point, somebody better guarantee me the jobs, too,
because that is what this is all about. We are not just writing
language to go into the law books. We want some action, and I do not
know who gives out guarantees around here, but I will be the first one
in line to get it. I am glad that that is your position as well.
Mr. HOEKSTRA. Mr. Chairman, I will reclaim my time. I am sure Mr.
Scott is going to have a little bit more time.
If I could complete my statement, I recognize the difference, but I
would hope that folks on both sides would recognize the tremendous
effort that we have put in bringing together a lot of different folks
to address the issues, both from the workers and the industries that
may be affected, but also the individuals in the prisons.
This effort is also supported by Prison Fellowship, that has a very
great passion for making sure that people who have found their way into
our prison systems, that when they come out, that they have developed
the skills that have enabled them to integrate effectively back into
society.
I think, with the support that we have developed, it is a clear
indication that this is a well-balanced approach between those
competing interests.
I will close with my comments. It is just good to be able to stand
here on this bill, to be able to work with the chairman and to be able
to work across the aisle and to take a look at the consensus that we
have developed on this bill. It is how the House should work.
I encourage my colleagues to support this bill that has come through
the Judiciary Committee. Let us move this forward and let us work
together to get something done in the Senate as well.
Mr. Chairman, H.R. 1965, the Hoekstra-Frank-Maloney-Sensenbrenner-
Conyers-Coble Federal Prison Industries Competition in Contracting Act
of 2006 will bring fundamental, comprehensive, and balanced reform to
Federal Prison Industries, Inc. (FPI).
Because of FPI's status as a mandatory source, non-inmate workers and
the firms that employ them are completely precluded from having the
opportunity to even bid on $800 million in Federal contracting
opportunities. Non-inmate workers and the firm's that employ them are
denied the job opportunities funded by their tax dollars.
That is why the bill is supported by a broad Coalition of business
groups, led by the U.S. Chamber of Commerce NFIB, and NAM. That is why
the bill is concurrently supported by many unions in organized labor
including the Teamsters, UAW, UNITE-HERE, Machinists, Carpenters, and
UFCW.
Because of FPI's mandatory source status, FPI's captive Federal
agency customers cannot get the best value for the taxpayer dollars
entrusted to their care. That is why H.R. 1829 enjoys the support of
federal managers represented by the Federal Managers Association.
The justification for FPI's mandatory source status is that inmate
work opportunities helps combat idleness and better prepares inmates
for a successful return to society. Neither of those cited benefits are
linked to the corrosive manner in which FPI is currently permitted to
operate in the Federal market.
Frequently cited is the statistic that inmates participating in
prison industry program are 24% less likely to return to prison. That
finding is drawn from the report on a multi-year study by the Federal
Bureau of Prisons, the Post-Release Employment Project (PREP). What
[[Page H6564]]
the proponents of the status quo forget to mention is that the same
PREP study demonstrated that inmates participating in remedial and
vocational educational programs were 33 percent less likely to return
to prison. Such programs better prepare inmates for a successful return
to society, but FPI does not use one dime of its gross profits, which
were $117 million in Fiscal Year 2004, to fund such educational
programs. No, those gross profits are devoted exclusively to FPI's
expansion.
Thanks to the work of my friend from Michigan (Mr. Conyers) and my
friend from Massachusetts (Mr. Frank) the bill expands the
opportunities for Federal inmates to participate in remedial and modern
hands-on vocational training programs. Those that are more likely to
reduce recidivism.
Similarly, the H.R. 2965 provides alternative work opportunities for
inmate by authorizing them to do work for non-profit entities and units
of local governments and special purpose districts, like school
districts.
During the Committee's consideration of the bill a Work-based
Employment Preparation Program for Federal inmates. This program will
provide Federal inmates with
FPI's current model's cause real problems. H.R. 2965 provides the
fundamental, comprehensive, and balanced solutions.
I urge my colleagues to support our bill.
Mr. CONYERS. Mr. Chairman, I am pleased to yield 2 minutes to the
gentleman from Illinois (Mr. Davis), my friend and colleague, who has
worked on this area for a long time.
Mr. DAVIS of Illinois. Mr. Chairman, I appreciate the work that the
Judiciary Committee has spent dealing with this very difficult and
complex issue, and I want to thank the gentleman from Michigan for
yielding.
All of us know that one of the biggest problems facing inmates when
they get out of prison is the ability to get a job. The best way that
you can convince a potential employer that you understand the world of
work is that you have been working. Therefore, this program which
provides inmates an opportunity to work needs all of the protection
that it can possibly get.
I agree that we need to change some things about it. I would agree
that we need to find a way to pay the inmates more, especially as they
get close to release time so that maybe when they get out, they have
got a little bit of money in their pocket that they can get started
with back in civilian life.
But to do anything that would reduce the possibility of individuals
working while they are incarcerated goes against the grain. It does not
benefit our correctional system. It does not benefit our correctional
institutions.
I spend time in the Federal prisons, and every administrator that I
have come into contact with supports this program and wants to see it
expanded, not reduced or possibly eliminated.
I again thank the gentleman from Michigan.
Mr. SENSENBRENNER. Mr. Chairman, I yield 3 minutes to the gentleman
from North Carolina (Mr. Coble).
Mr. COBLE. Mr. Chairman, I thank the chairman for yielding.
Mr. Chairman, this body has deliberated the role of Federal Prison
Industries for several years. In 2003, the House approved a version of
the vote by a decisive vote, and while that bill was not enacted, the
House Judiciary Committee has continued to deliberate on reforming FPI.
{time} 1200
I want to applaud the diligence of Chairman Sensenbrenner and
Chairman Hoekstra, the distinguished gentleman from Michigan (Mr.
Conyers), the ranking member of the full committee, and even though my
good friend from Tidewater, Virginia, is misguided on this bill, we
continue to be good friends. We have all worked together, and I think
it is a good bill.
I supported FPI reform in 2003, Mr. Chairman. While I still support
this reform today, I am pleased with the changes in the bill to ensure
that FPI will not be discouraged by its implementation of the bill
before us. I have always argued that the sole source rule was really
not justified and worked inevitably to the detriment of the private
sector.
Office furniture is an enormous business, as we all know. H.R. 2965
will balance the playing field in the market for supply furniture to
the Federal Government. Furniture manufacturing is an economic engine
in the Sixth District of North Carolina, which I represent, and would
welcome the opportunity to compete with FPI.
Mr. Chairman, recidivism in our Federal penitentiaries is of grave
concern. H.R. 2965, it appears to me, should not be construed as a
movement away from inmate training. And, finally, the Second Chance
Act, which Mr. Scott and I have nurtured through the House Judiciary
Committee, is another example of this new trend regarding incarceration
and, of course, that bill will be examined at a subsequent date.
Mr. CONYERS. Mr. Chairman, I would like at this time to recognize the
gentlewoman from New York (Mrs. Maloney) for 2 minutes.
(Mrs. MALONEY asked and was given permission to revise and extend her
remarks.)
Mrs. MALONEY. Mr. Chairman, I thank the gentleman for yielding and
for leading so strongly on this important issue, and I rise in strong
support of H.R. 2965, of which I have been a lead sponsor in many prior
Congresses.
This bill will bring comprehensive, fundamental, and balanced reform
to the Federal Prison Industries, which is long overdue. This bill
before us reflects improvements upon the bill in the 108th Congress,
which passed 350-65.
At the core of the bill is providing access to the Federal contract
opportunities, now reserved for FPI because of its status as a
mandatory source of supply for the various Federal agencies. In fiscal
year 2004, that amounted to $802 million in business opportunities upon
which private sector firms had no opportunity to bid. It will also
protect jobs of American workers. FPI will no longer be able to come in
and arbitrarily announce that they are taking their work, their
contracts away, which happened to my constituents.
Like many in this Chamber, I came to this issue from a problem
created by FPI. FPI was about to take the contract that Glamour Glove,
a manufacturer in my district, had won from the Department of Defense
on a competitive basis. Glamour Glove, now called Glove Street, was the
last union shop glove manufacturer in New York, and its proud members
are members of UNITE.
Working with my friend from Michigan, Mr. Hoekstra, and the
leadership of UNITE, we were able to persuade the FPI board to change
its plans. I know that my constituents were wondering why they had to
seek the mercy of six people in Washington and the FPI board of
directors to maintain their jobs.
Out of that experience, Mr. Hoekstra and I began working together to
put forward an opportunity for American workers to compete for these
jobs. Each year, the bill has been modified to provide alternative
rehab work opportunities for Federal inmates, and I congratulate Mr.
Frank for his leadership and Mr. Conyers on the amendments they have
added to improve the bill.
From the outset of our effort, Mr. Frank led our effort to find
alternative-inmate work opporunties for Federal inmates that would not
provide unfair competition with non-inmate workers. First, by doing
public service work for non-profit organizations that serve the poor.
This first step has been broadened in each succeeding year.
In the last Congress, we granted authority for Federal inmates to
provide work in support of units of local government and special
purpose districts, such as school districts. Protections were included
against any displacement of non-inmate workers, either public employees
or private sector.
During the Committee's consideration H.R. 2965, they added a Work-
based Employment Preparation Program for Federal inmates. This program
will provide Federal inmates with access to work-based training under
the tuteledge of real-world employers. Again, the new provision has
clear and enforceable protections against unfair competition with non-
inmate workers and the firms that employ them.
When H.R. 2965 is enacted into law, working men and women, who
perform contracts for the Federal Government will no longer have to be
concerned that FPI will simply be able to take their work
opportunities. They will have a chance to bid on the Federal contracts
that are funded by their tax dollars.
I look forward to this debate. The proponents are on the right side
and have the strong support of the business community and organized
labor, as well as federal managers, represented by the Federal Managers
Association.
Mr. CONYERS. Mr. Chairman, I yield 1 minute to my friend and brother,
the gentleman from Virginia (Mr. Scott).
Mr. SCOTT of Virginia. Mr. Chairman, I appreciate Mr. Conyers giving
[[Page H6565]]
me the opportunity to respond to my friend from North Carolina, who
suggested that I was misguided by opposing the bill. Perhaps I am
misguided, because the bill increases crime and I am trying to reduce
crime.
We know that increasing jobs will reduce crime. This bill, we know,
reduces jobs. The goal of FPI has been traditionally for 25 percent of
the jobs to be FPI jobs. As a result of the initiatives in this bill,
many of which were enacted in 2001, the percentage of jobs has gone
from 25 to 18, 2,000 fewer jobs. And if we had maintained the 25
percent, there would be 9,000 more people working in FPI jobs, with a
much lower chance of getting into trouble when they are released.
This reduction in jobs will increase crime. Maybe opposing an
increase in crime is misguided, but I think we ought to reguide
ourselves and support those initiatives, which will actually reduce
crime, not increase crime, as this bill does.
Mr. CONYERS. Mr. Chairman, I yield myself 1 minute to point out that
this bill does not increase crime because we have got a vocational
educational training program for inmates that will prepare them not
only in vocational skills but prepare them as a whole person.
So to say that we are increasing crime because we are phasing out
this Federal Prison Industries program is not exactly accurate.
Besides, there is a not-for-profit section that we are going to ramp
up. Local governments, school districts, and religious organizations
will all be able to benefit under this new provision to create more
jobs.
And so I just want to guarantee everybody, and particularly my friend
from Virginia, that if this doesn't create more jobs, then I want to
change the law myself. But to predict that this is what we are doing is
not exactly accurate.
Mr. Chairman, I yield 2 minutes to the gentleman from Massachusetts
(Mr. Frank).
Mr. FRANK of Massachusetts. Mr. Chairman, I thank the ranking member,
and I speak strongly in support of this bill. I have not yet had anyone
explain to me why it is our strong policy to ban the products of prison
labor that come over in trade, but we then encourage them to compete
with American workers if it is domestic prison labor.
I agree it is a good idea for inmates to have work opportunities, but
I am hoping that marketing is not one of those things in which
prisoners engage. That is, it is the actual process of making the
product that has its rehabilitative effect. And as the gentleman from
Michigan just mentioned, it is the intention of many of us to increase
the extent to which prisoners could be used to make products that could
be distributed to various entities in our society in a way that
wouldn't be competitive with the market.
But I do not understand how you tell low-wage workers, because the
level at which the prison products exist is at the low-wage level, how
do we tell low-wage workers they are going to lose their jobs because
of prisoners? How do you tell people who have been hardworking people
trying to support themselves and their families that prisoners are
taking their jobs because of the inherent subsidy that is involved?
Now, the way to resolve that, it seems to me, is to leave the market,
to the extent that we can, to people who are in the market, in the
private sector; and try, as the gentleman from Michigan said, as we try
in this legislation, to increase the extent to which prisoners can be
employed and learn skills and make products that will be distributed to
the nonmarket segment. And there is no loss there. Again, the marketing
is not part of the prison experience and shouldn't be.
So it is entirely possible to have prisoners learning skills,
improving their skills by producing things that can then be distributed
to a nonmarket segment. But the fundamental principle that we should
not allow prison labor to take jobs away from hardworking people,
particularly at the low-wage level, is at the core of this bill.
Mr. CONYERS. Mr. Chairman, I would yield 1 minute more, this is very
unusual, but I will yield 1 minute more to Mr. Scott.
Mr. SCOTT of Virginia. Mr. Chairman, I thank the gentleman for
yielding, because, as I indicated, as a result of the initiatives that
are in this bill, we have already lost thousands of jobs. And if we had
had the law as it was in 2000, we would have about 9,000 more people
working.
The gentleman from Massachusetts has said there are other
alternatives. If we were guaranteed funding for that, I would support
it. The problem is that the FPI pays for itself, so it doesn't need
appropriation. If we can guarantee the funding, there wouldn't be any
debate on this. The job training also may not have funding. So we don't
know that that is going to take place. So there is no guarantee.
The problem with this approach is that there is no guarantee for
funding. The FPI program pays for itself, and has been paying for
itself for over 70 years. It works well. We know it works, and the
replacements are just speculative.
Mr. CONYERS. Mr. Chairman, I yield 1 minute to the gentleman from
Massachusetts.
Mr. FRANK of Massachusetts. My problem with my friend from Virginia's
argument, well, there are two; first of all, if there are 9,000 fewer
jobs in Prison Industries, that means there are 9,000 more jobs in the
private sector.
So the second point is that he concedes that if we funded this it
wouldn't be a problem. Well, rather than put the burden on lower-wage
working people in the garment industry, the furniture industry, et
cetera, then let us work to get the funding. It is not a huge amount.
But there is, to some extent, a replacement of prison jobs and private
sector jobs.
Mr. SCOTT of Virginia. Mr. Chairman, will the gentleman yield?
Mr. FRANK of Massachusetts. I yield to the gentleman from Virginia.
Mr. SCOTT of Virginia. First of all, we will work together on the
funding, no question about that. Furthermore, there is not a one-to-one
replacement. You have about four people in prison working on what would
otherwise be one job.
Mr. FRANK of Massachusetts. Well, then I would say this. Then that
furthers reinforces the point. Because what you are then saying is the
underpayment, the subsidy element is such that you are still losing
private sector jobs to prison jobs.
And I would say to the gentleman, let us end on a note of approval.
Yes, I look forward to working with the gentleman for better funding,
and if things go well in November it will be easier than it has been.
Mr. SENSENBRENNER. Mr. Chairman, I yield 1 minute to the gentleman
from Minnesota (Mr. Gutknecht).
Mr. GUTKNECHT. Mr. Chairman, I thank the chairman of the committee
for yielding time.
I rise in opposition to this bill. Now, I represent two prisons in my
district, and grandma used to say that idle hands are the devil's
workshop. We have to find ways to keep these people busy; but, more
importantly, we have to give them real job skills.
Now, I understand that in some cases this may be taking jobs away
from the private sector, but that is very rare, Members. Mostly what we
are doing in those prisons today are jobs that either aren't done in
the United States much any more, or they are jobs that nobody wants.
And we need to keep these guys busy. We need to give them some job
skills. And I am afraid we are going to throw this baby out with the
bath water today.
Now, it may well be that we have to reform the Federal Prison
Industries a bit. And I hear the talk about, well, we can find $75
million for job training programs. Maybe that is true. But in the
middle are these folks who are working in the Federal Prison Industries
in my district who are earning a little bit of money, who are making a
difference, and are providing products that the United States military
needs.
Mr. Chairman, I rise to speak in opposition to this legislation. I
represent a number of employees and inmates at the Federal Correctional
Institution in Waseca, Minnesota, and they have a vested interest in
this matter.
Federal Prison Industries employs approximately 200 inmates in
Waseca. The jobs they have give these inmates real-life skills that
offer opportunity for rehabilitation and a chance at success when they
leave prison. The program is carefully overseen by trained prison
employees.
Mr. Chairman, changes might be necessary to improve the FPI program,
but I am not convinced that the legislation before us accomplishes
that. H.R. 2965 would authorize a $75
[[Page H6566]]
million work-based training program to replace FPI. The likelihood that
Congress will not appropriate these dollars threatens to make a bad
situation worse. Stresses on our federal budget could lead to a worse-
case scenario of having no education or job training program at all for
these inmates.
Many products made by FPI are used by our armed forces, and very few
of these products are made by U.S. companies who make these products.
In fact, the private sector companies who procure them already make
their purchases from foreign manufacturers, not U.S. companies.
Mr. Chairman, the existing FPI program works well. This is a classic
case of Congress trying to fix something that is not broken. I urge my
colleagues to oppose this legislation and to work to improve the FPI
program for inmates and small businesses alike.
Mr. SENSENBRENNER. Mr. Chairman, I yield myself 1 minute.
Mr. Chairman, it is pretty hard for somebody in the private sector
that pays taxes on their manufacturing equipment, that pays property
taxes on the building that is used to house the manufacturing
equipment, that pays their employees a decent wage, that takes out
Social Security and State and Federal income taxes and, hopefully,
provides benefits, including health care benefits, to compete against
those who are working in the prison where the taxpayers pay for the
medical benefits, the taxpayers pay for the room and board, and the
land and the prison is completely tax exempt.
Now, the gentleman from Minnesota says that what FPI provides is
bought by the Department of Defense. What this bill does is to provide
the same reforms that were provided a few years earlier with FPI
contracting with the Department of Defense. The gentleman from
Minnesota says it has worked with the Department of Defense. What we
want to do is to have it work with every other Federal agency as
successfully as it has done with the Department of Defense.
Mr. EHLERS. Mr. Chairman, I rise in strong support of H.R. 2965. This
bill restores a modicum of sense to our current government procurement
system.
Let me highlight two important aspects of this bill. One, the bill
helps federal agencies manage taxpayer dollars more responsibly. For
the first time, private-sector firms will be free to bid on federal
contracting opportunities currently reserved for Federal Prison
Industries. To assure that a buying agency is getting adequate value
for the taxpayer dollars being spent on clothing, textiles,
electronics, office furniture, equipment, services, or other
procurement items, the buying agency--rather than FPI--would be
empowered to determine whether the offered product and delivery
schedule meet the buying agency's needs. Similarly, the buying agency
would be empowered to determine whether FPI's offered price meets the
procurement standard for a ``fair and reasonable price.''
Two, the bill is eminently more fair to contractors. Let me give you
one example of the egregiously unfair practices under the current
system. Back in 2003, the FAA was seeking to procure office furniture
for its headquarters building. Through the General Services
Administration, it solicited bids for the contract. On April 16, 2003,
Steelcase (which is a major office furniture manufacturer based in my
district) submitted its final bid for this contract to the GSA. A week
later, Steelcase was informed by GSA that they were likely the winning
bid on the contract. On May 7, they were informed by GSA that FPI had
copied the proposal word for word and exactly matched Steelcase's bid.
FPI asserted its sole source authority and decided not to grant a
waiver for this contract. This was completely unfair as Steelcase had
spent over 1,000 man hours and hundreds of thousands of dollars
preparing the design, construction schedule, labor and material costs
and other elements of this bid, only to have FPI duplicate the offer
and undercut them. Thankfully, FPI eventually relented after
considerable political pressure was brought to bear by myself and
others.
We cannot continue to fight these kinds of situations on a case-by-
case basis. That is why I support comprehensive FPI reform. If FPI can
compete on quality and price, then great! Let me note that the bill
does not alter a broad array of other advantages that FPI enjoys when
it competes with private-sector firms, including extremely low wage
rates, low overhead costs and no tax liability. But the current
mandatory source privilege is anathema to principles of the free market
and open enterprise.
I commend my colleague, Mr. Hoekstra, for his steadfast dedication to
addressing this problem and for working with all the interested
stakeholders. I urge everyone to support this bill.
Mr. WOLF. Mr. Chairman, I rise in opposition to the bill. Before I
make some comments, let me say I have great respect for the gentleman
from Michigan (Mr. Hoekstra). He is a good person. But I do not believe
this approach is the way to go.
I appreciate the hard work of Mr. Hoekstra and his staff in trying to
develop a bill that addresses concerns raised by myself and others,
including the Justice Department. And while I appreciate his genuine
efforts to address the issue of providing additional opportunities for
inmates, I remain concerned that the alternatives provided in this
proposal will not be enough to replace the mandatory source authority
currently relied upon by Federal Prison Industries (FPI).
H.R. 2965 would decimate the FPI program by eliminating the mandatory
source preference without an adequate replacement. Mandatory source
preferences account for the majority of inmate jobs in the program.
I also want to acknowledge Mr. Hoekstra's efforts to work with the
Justice Department to craft a workable alternative to the currert
mandatory source authority that is responsible for many of jobs
currently available through FPI. While there have been a number of
changes from the proposal that was considered during the last Congress,
the Department of Justice has stated that they cannot support this bill
in the current form.
The Department of Justice calls FPI ``the Department's most important
correctional management tool.'' DOJ has a fiduciary relationship in
running these prisons and I certainly wish they had been stronger in
articulating their concerns. However, the fact remains that the bill
before us does not have their support.
Winston Churchill said one of the best tests of whether we are truly
a civilized people is the temper, the mood of the public in regard to
the treatment of crime and criminals.
I like to think of myself as a compassionate conservative. I've had
the chance to work with prisoners. Before I was elected, I was involved
in a program at Lorton Prison called ``Man to Man'' where we would meet
with and counsel the inmates. Knowing what this bill could do in terms
of prison work opportunities, I think this bill should be defeated.
You cannot put a man in prison for years and expect him to be
rehabilitated without work. The Bible says, ``Remember the prisoner as
though in prison with them.''
Currently, FPI is a self-supporting government program that provides
job skills opportunities to federal Bureau of Prisons (BOP) inmates by
producing products and services for federal agencies. The FPI prison
inmate work program fosters BOP prison safety by helping to keep
thousands of prison inmates productively occupied in labor-intensive
work activities and furthers BOP prisoner rehabilitation by providing
prison inmates with opportunities to develop job skills that will allow
them to reenter our communities as productive, law-abiding citizens.
This bill would make it difficult to operate a prison. Inmates
without work who are idle are prisoners that are going to later come
back and commit a crime. Prisoners that participate in the FPI program
have a 24 percent lower recidivism rate than prisoners who are not in
the program.
This bill also has major budget impacts. To those on my side of the
aisle who talk about balancing the budget, the cost of this bill over 5
years will be $500 million. In an era of limited discretionary funding,
I have to ask: does it make sense to replace the self-sustaining FPI
program with an alternative work program that would cost hundreds of
millions a year, without considering any additional staffing needs that
would arise from a loss of FPI jobs?
The FPI program provides those incarcerated with a unique opportunity
to learn discipline, responsibility, and job skills needed to re-enter
society. We should be supporting these prisoners as they serve their
time and seek to make the transition back into society, not
undercutting one of the most important programs offered by the prison
system to help them do so. I am very concerned that the bill before us
does not set up an alternative system that can ensure FPI will be able
to continue offering inmate work and training opportunities in the
future.
In the last four years, the percentage of inmates able to participate
in FPI has plummeted from 25 percent to 17 percent, with the BOP
estimating a continued decline if this legislation passes. That is the
key. There is no alternative system for ensuring there will continue to
be jobs if these reforms are implemented. That would be tragic.
If this bill is not amended, I believe, and I may be wrong, that this
bill, as surely as the night follows the day, will make it very
difficult to operate prisons. With the opportunity to work comes the
chance to restore dignity. Later, I am offering a commonsense amendment
with my colleagues Messrs. Lungren, Chabot and Scott that would simply
postpone the mandatory source phase-out for one year if the FPI
prisoner enrollment falls below the current level of 17 percent.
[[Page H6567]]
In a time of low national unemployment, it is hard to believe that we
are about to make it harder for incarcerated Americans to learn
discipline, responsibility, and job skills that working develops.
I urge my colleagues to vote against this underlying bill and for the
Lungren-Chabot-Wolf-Scott amendment.
Mr. MANZULLO. Mr. Chairman, Federal Prison Industries takes jobs away
from law-abiding citizens of this nation. Many people are concerned
about their future job security or where their next job will come from.
If it is within one of the more than 250 industries FPI already is in,
watch out!
We all understand the need to control a potentially violent prison
population. This bill points to a better way to train prisoners for
real jobs in the outside world than to have them unfairly compete
against small businesses for the precious few contracts with the
Federal Government. It will also allow FPI to manufacture products that
are no longer made in America and to also perform work in support of
non-profits such as Habitat for Humanity.
The jobs of law-abiding citizens--the forgotten Americans--who get up
every day, dress their kids for school, and set off for a long hard day
of work should not be sacrificed for convicted felons. The unintended
and indirect message from FPI to the forgotten American is that if you
want a job, commit a crime. That's not the American way! Some of my
small business constituents from northern Illinois have had difficulty
in selling to the Federal Government because of the unfair competition
from FPI.
I support H.R. 2965 because it will simply require that FPI compete
like every other business for contracts with the Federal Government.
FPI already has many advantages off the bat, such as a captive below
minimum wage work force and no health care, worker's compensation or
other benefits to pay for. Even with these advantages, small businesses
still believe they can beat FPI because various government agencies
have long complained about the quality and timeliness of delivery of
products from FPI.
Mr. Chairman, let's allow small businesses to compete against FPI. We
should convey the message to the forgotten American that if you play by
the rules, you have a fair shot at all the opportunities this society
has to offer. Convicted felons should not receive better treatment than
law-abiding citizens. I urge a ``yes'' vote on FPI and a ``no'' vote on
any amendment that weakens this well-thought out bill.
Mr. HOLT. Mr. Chairman, can you, or another member, tell me why we
are considering this legislation? Why when we have the largest prison
population in the world, why when we have one of the worst recidivism
rates in the world, why when we have enormous expense from crime and
imprisonment, and why when America's historic and ethical attitude
towards crime is based predominantly on a redemptive view of human
nature, why are we doing this?
Ms. WATERS. Mr. Chairman, I rise in support of H.R. 2965, the Federal
Prison Industries Competition in Contracting Act of 2005.
I thank my colleagues in the Committee on the Judiciary for their
overwhelming support of the ``sense of Congress'' language I offered
during Full Committee markup that would clarify the work-based program
newly established in Section 17 of this legislation. As previously
drafted, the ``heart'' of the wage provision of the work-based program
was only an alternative to a scenario where the Secretary of Labor--at
her discretion--would promulgate an inmate training wage. If the
Secretary fails to do so within 180 days, she would be able to
prescribe an interim training wage that is no less than 50% of the
prevailing federal minimum wage--a provision that, in and of itself, is
conditional.
I was elected to Congress in 1991, and I have continually stressed
the importance of providing individuals, who have paid their debt to
society, a realistic opportunity to transition from federal prison back
into the community. The truth is that the current system, sets them up
for failure. By turning them out on the street without a dime in their
pocket many of the individuals who are fortunate enough to make it out
of the system will start ``in the red.'' Already faced with the
pressing need to provide for food, shelter, and healthcare, with no
money in their pockets they are left with few alternatives to pay for
baby formula, HIV medication, a hot meal for one night, or even a place
to stay.
For these reasons, during the 108th Congress, my language was
accepted to establish a $2.50 minimum wage ``floor'' to eradicate the
severe economic disparities created by the existing wage scale, which
spans from $0.23 to a mere $1.15 per hour for inmates whose term of
imprisonment will expire within 2 years. I thank my colleagues for
retaining this important language, because it takes a good first step
toward providing a realistic and livable economic base for individuals
reentering the community from the federal system.
By and large, the individuals for whom I make my most passionate
appeals are those who deserve a second chance--those who did not commit
heinous and violent crimes and who have truly paid their debt to
society. In the real world, individuals who reenter the community from
incarceration already have families who depend upon them and they have
no job waiting for them. To further exacerbate this situation, many
employers will outright reject their application for a job once they
discover that an applicant has a criminal record.
Nevertheless, the work-based program established in this bill makes a
good effort to help these individuals by giving them a chance to earn
an apprenticeship certificate to substantiate their work experience. In
fact, the spirit of this program is consistent with the ``Prisoner Re-
entry Initiative'' proposed by President Bush in his State of the Union
Address when he called for a four-year, $300 million initiative to--and
I quote--``reduce recidivism and the societal costs of reincarceration
by helping inmates find work when they return to their communities.''
Therefore, I support this legislation and ask that my colleagues vote
yes on its final passage.
{time} 1215
Mr. SENSENBRENNER. Mr. Chairman, I reserve the balance of my time.
Mr. CONYERS. Mr. Chairman, I yield back the balance of my time.
Mr. SENSENBRENNER. Mr. Chairman, I yield back the balance of my time.
The Acting CHAIRMAN (Mr. Gillmor). All time for general debate has
expired.
Pursuant to the rule, the committee amendment in the nature of a
substitute printed in the bill shall be considered as an original bill
for the purpose of amendment under the 5-minute rule and shall be
considered read.
The text of the committee amendment in the nature of a substitute is
as follows:
H.R. 2965
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Federal
Prison Industries Competition in Contracting Act of 2006''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1 Short title; table of contents.
Sec. 2. Governmentwide procurement policy relating to purchases from
Federal Prison Industries.
Sec. 3. Public participation regarding expansion proposals by Federal
Prison Industries.
Sec. 4. Transitional mandatory source authority.
Sec. 5. Authority to perform as a Federal subcontractor.
Sec. 6. Inmate wages and deductions.
Sec. 7. Clarifying amendment relating to services.
Sec. 8. Conforming amendment.
Sec. 9. Rules of construction relating to chapter 307.
Sec. 10. Providing additional rehabilitative opportunities for inmates.
Sec. 11. Re-entry employment preparation through work-based training
and apprenticeship.
Sec. 12. Restructuring the Board of Directors.
Sec. 13. Providing additional management flexibility to Federal Prison
Industries operations.
Sec. 14. Transitional personnel management authority.
Sec. 15. Federal Prison Industries report to Congress.
Sec. 16. Definitions.
Sec. 17. Implementing regulations and procedures.
Sec. 18. Rules of construction.
Sec. 19. Effective date and applicability.
Sec. 20. Clerical amendments.
SEC. 2. GOVERNMENTWIDE PROCUREMENT POLICY RELATING TO
PURCHASES FROM FEDERAL PRISON INDUSTRIES.
Section 4124 of title 18, United States Code, is amended to
read as follows:
``Sec. 4124. Governmentwide procurement policy relating to
purchases from Federal Prison Industries
``(a) In General.--Purchases from Federal Prison
Industries, Incorporated, a wholly owned Government
corporation, as referred to in section 9101(3)(E) of title
31, may be made by a Federal department or agency only in
accordance with this section.
``(b) Solicitation and Evaluation of Offers and Contract
Awards.--(1)(A) If a procurement activity of a Federal
department or agency has a requirement for a specific product
or service that is authorized to be offered for sale by
Federal Prison Industries, in accordance with section 4122 of
this title, and is listed in the catalog referred to in
subsection (g), the procurement activity shall solicit an
offer from Federal Prison Industries, if the purchase is
expected to be in excess of the micro-purchase threshold (as
defined by section 32(f) of the Office of Federal Procurement
Policy Act (41 U.S.C. 428(f))).
``(B) The requirements of subparagraph (A) shall also apply
to a procurement that a Federal
[[Page H6568]]
department or agency intends to meet by placing an order
against a contract maintained by the General Services
Administration under the Multiple Award Schedule Contracts
Program.
``(C) Federal Prison Industries, upon its request, shall be
listed on any Schedule, referred to in subparagraph (B), as
offering products or services which Federal Prison Industries
believes to be comparable to those products and services
being offered by commercial contractors through the Multiple
Award Schedule Contracts Program.
``(2) A contract award for such product or service shall be
made using competitive procedures in accordance with the
applicable evaluation factors, unless a determination is made
by the Attorney General pursuant to paragraph (3) or an award
using other than competitive procedures is authorized
pursuant to paragraph (7).
``(3) The procurement activity shall negotiate with Federal
Prison Industries on a noncompetitive basis for the award of
a contract if the Attorney General determines that--
``(A) Federal Prison Industries cannot reasonably expect
fair consideration to receive the contract award on a
competitive basis; and
``(B) the contract award is necessary to maintain work
opportunities otherwise unavailable at the penal or
correctional facility at which the contract is to be
performed to prevent circumstances that could reasonably be
expected to significantly endanger the safe and effective
administration of such facility.
``(4) Except in the case of an award to be made pursuant to
paragraph (3), a contract award shall be made with Federal
Prison Industries only if the contracting officer for the
procurement activity determines that--
``(A) the specific product or service to be furnished will
meet the requirements of the procurement activity (including
any applicable prequalification requirements and all
specified commercial or governmental standards pertaining to
quality, testing, safety, serviceability, and warranties);
``(B) timely performance of the contract can be reasonably
expected; and
``(C) the contract price does not exceed a current market
price.
``(5) A determination by the Attorney General pursuant to
paragraph (3) shall be--
``(A) supported by specific findings by the warden of the
penal or correctional institution at which a Federal Prison
Industries workshop is scheduled to perform the contract;
``(B) supported by specific findings by Federal Prison
Industries regarding why it does not expect to win the
contract on a competitive basis; and
``(C) made and reported in the same manner as a
determination made pursuant to section 303(c)(7) of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 253(c)(7)).
``(6) If the Attorney General has not made the
determination described in paragraph (3) within 30 days after
Federal Prison Industries has been informed of a contracting
opportunity by a procurement activity, the procurement
activity may proceed to conduct a procurement for the product
or service in accordance with the procedures generally
applicable to such procurements by the procurement activity.
``(7) A contract award may be made to Federal Prison
Industries using other than competitive procedures if such
product or service is only available from Federal Prison
Industries and the contract may be awarded under the
authority of section 2304(c)(1) of title 10 or section 303(c)
of the Federal Property and Administrative Services Act of
1949 (41 U.S.C. 253(c)(1)), as may be applicable, and
pursuant to the justification and approval requirements
relating to such noncompetitive procurements specified by law
and the Governmentwide Federal Acquisition Regulation.
``(8) A contract award may be made to Federal Prison
Industries using other than competitive procedures by the
Federal Bureau of Prisons.
``(9) A solicitation for a contract shall first be made to
Federal Prison Industries using other than competitive
procedures if the product or service to be acquired would
otherwise be furnished by a contractor performing the work
outside of the United States.
``(c) Offers From Federal Prison Industries.--(1) A timely
offer received from Federal Prison Industries to furnish a
product or service to a Federal department or agency shall be
considered for award without limitation as to the dollar
value of the proposed purchase, unless the contract
opportunity has been reserved for competition exclusively
among small business concerns pursuant to section 15(a) of
the Small Business Act (15 U.S.C. 644(a)) and its
implementing regulations.
``(2)(A) Any offer made by Federal Prison Industries to
furnish a product or service may exclude from the offer the
price of the following:
``(i) The costs related to security of the facilities at
which the contract will be performed.
``(ii) The costs of educating and training the prison work
force performing the contract.
``(iii) Excess capital costs of machinery and excess
inventories used within a prison environment that are the
result of the unique environment of prison life.
``(iv) Other costs of performing the contract resulting
from the unique environment of prison facilities.
``(d) Performance by Federal Prison Industries.--Federal
Prison Industries shall perform its contractual obligations
under a contract awarded by a Federal department or agency to
the same extent as any other contractor.
``(e) Finality of Contracting Officer's Decision.--(1) A
decision by a contracting officer regarding the award of a
contract to Federal Prison Industries or relating to the
performance of such contract shall be final, unless reversed
on appeal pursuant to paragraph (2) or (3).
``(2)(A) The Chief Operating Officer of Federal Prison
Industries may protest a decision by a contracting officer
not to award a contract to Federal Prison Industries pursuant
to subsection (b)(4), in accordance with section 33.103,
(Protests to the agency) of the Federal Acquisition
Regulation (48 C.F.R. part 33.103).
``(B) In the event of an adverse decision of a protest
filed pursuant to subparagraph (A), the Assistant Attorney
General for Administration may request a reconsideration of
such adverse decision by the head of the Federal agency or
department, which shall be considered de novo and the
decision issued by such agency head on a non-delegable basis.
Such decision upon reconsideration by the agency head shall
be final.
``(3) A dispute between Federal Prison Industries and a
procurement activity regarding performance of a contract
shall be subject to--
``(A) alternative means of dispute resolution pursuant to
subchapter IV of chapter 5 of title 5; or
``(B) final resolution by the board of contract appeals
having jurisdiction over the procurement activity's contract
performance disputes pursuant to the Contract Disputes Act of
1978 (41 U.S.C. 601 et seq.).
``(f) Reporting of Purchases.--Each Federal department or
agency shall report purchases from Federal Prison Industries
to the Federal Procurement Data System (as referred to in
section 6(d)(4) of the Office of Federal Procurement Policy
Act (41 U.S.C. 405(d)(4))) in the same manner as it reports
to such System any acquisition in an amount in excess of the
simplified acquisition threshold (as defined by section 4(11)
of the Office of Federal Procurement Policy Act (41 U.S.C.
403(11))).
``(g) Catalog of Products.--Federal Prison Industries shall
publish and maintain a catalog of all specific products and
services that it is authorized to offer for sale. Such
catalog shall be periodically revised as products and
services are added or deleted by its board of directors (in
accordance with section 4122(b) of this title).
``(h) Compliance With Standards.--Federal Prison Industries
shall be subject to Federal occupational, health, and safety
standards with respect to the operation of its industrial
operations.''.
SEC. 3. PUBLIC PARTICIPATION REGARDING EXPANSION PROPOSALS BY
FEDERAL PRISON INDUSTRIES.
Section 4122(b) of title 18, United States Code, is
amended--
(1) by redesignating paragraph (6) as paragraph (13); and
(2) by striking paragraphs (4) and (5) and inserting the
following new paragraphs:
``(4)(A) Federal Prison Industries is authorized to offer a
new specific product or furnish a new specific service in
response to a competitive solicitation or other purchase
request issued by a Federal department or agency. No
subsequent offering of such product or service may be made by
Federal Prison Industries until the board of directors has
approved the offering for sale of such new specific product
or new specific service, in conformance with the requirements
of paragraphs (5) through (9).
``(B) Federal Prison Industries may produce a product or
furnish a service in excess of the authorized level of
production for such product or service, in response to an
order placed pursuant to an existing contract with a Federal
department or agency, if the agency's need for the product or
service is of such an urgency that it would justify the use
of procedures other than competitive procedures pursuant to
section 2304(c)(2) of title 10 or section 303(c)(2) of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 253(c)(2)), as may be applicable.
``(5) A decision to authorize Federal Prison Industries to
offer a new specific product or specific service or to expand
the production of an existing product or service for sale to
the Federal Government shall be made by its board of
directors in conformance with the requirements of subsections
(b), (c), (d), and (e) of section 553 of title 5, and this
chapter.
``(6)(A) Whenever Federal Prison Industries proposes to
offer for sale a new specific product or specific service or
to expand production of a currently authorized product or
service, the Chief Operating Officer of Federal Prison
Industries shall submit an appropriate proposal to the board
of directors and obtain the board's approval before
initiating any such expansion. The proposal submitted to the
board shall include a detailed analysis of the probable
impact of the proposed expansion of sales within the Federal
market by Federal Prison Industries on private sector firms
and their non-inmate workers.
``(B)(i) The analysis required by subparagraph (A) shall be
performed by an interagency team on a reimbursable basis or
by a private contractor paid by Federal Prison Industries.
``(ii) If the analysis is to be performed by an interagency
team, such team shall be led by the Administrator of the
Small Business Administration or the designee of such officer
with representatives of the Department of Labor, the
Department of Commerce, and the Federal Procurement Data
Center.
``(iii) If the analysis is to be performed by a private
contractor, the selection of the contractor and the
administration of the contract shall be conducted by one of
the entities referenced in clause (ii) as an independent
executive agent for the board of directors. Maximum
consideration shall be given to any proposed statement of
work furnished by the Chief Operating Officer of Federal
Prison Industries.
``(C) The analysis required by subparagraph (A) shall
identify and consider--
``(i) the number of vendors that currently meet the
requirements of the Federal Government for the specific
product or specific service;
``(ii) the proportion of the Federal Government market for
the specific product or specific service currently furnished
by small businesses during the previous 3 fiscal years;
``(iii) the share of the Federal market for the specific
product or specific service projected for
[[Page H6569]]
Federal Prison Industries for the fiscal year in which
production or performance will commence or expand and the
subsequent 4 fiscal years;
``(iv) whether the industry producing the specific product
or specific service in the private sector--
``(I) has an unemployment rate higher than the national
average; or
``(II) has a rate of unemployment for workers that has
consistently shown an increase during the previous 5 years;
``(v) whether the specific product is an import-sensitive
product;
``(vi) the requirements of the Federal Government and the
demands of entities other than the Federal Government for the
specific product or service during the previous 3 fiscal
years;
``(vii) the projected growth or decline in the demand of
the Federal Government for the specific product or specific
service;
``(viii) the capability of the projected demand of the
Federal Government for the specific product or service to
sustain both Federal Prison Industries and private vendors;
and
``(ix) whether authorizing the production of the new
product or performance of a new service will provide inmates
with the maximum opportunity to acquire knowledge and skill
in trades and occupations that will provide them with a means
of earning a livelihood upon release.
``(D)(i) The board of directors may not approve a proposal
to authorize the production and sale of a new specific
product or continued sale of a previously authorized product
unless--
``(I) the product to be furnished is a prison-made product;
or
``(II) the service to be furnished is to be performed by
inmate workers.
``(ii) The board of directors may not approve a proposal to
authorize the production and sale of a new prison-made
product or to expand production of a currently authorized
product if the product is--
``(I) produced in the private sector by an industry which
has reflected during the previous year an unemployment rate
above the national average; or
``(II) an import-sensitive product.
``(iii) The board of directors may not approve a proposal
for inmates to provide a service in which an inmate worker
has access to--
``(I) personal or financial information about individual
private citizens, including information relating to such
person's real property, however described, without giving
prior notice to such persons or class of persons to the
greatest extent practicable;
``(II) geographic data regarding the location of surface
and subsurface infrastructure providing communications, water
and electrical power distribution, pipelines for the
distribution of natural gas, bulk petroleum products and
other commodities, and other utilities; or
``(III) data that is classified.
``(iv)(I) Federal Prison Industries is prohibited from
furnishing through inmate labor construction services, unless
to be performed within a Federal correctional institution
pursuant to the participation of an inmate in an
apprenticeship or other vocational education program teaching
the skills of the various building trades.
``(II) For purposes of this clause, the term `construction'
has the meaning given such term by section 2.101 of the
Federal Acquisition Regulation (48 C.F.R. part 2.101), as in
effect on June 1, 2004, including the repair, alteration, or
maintenance of real property in being.
``(7) To provide further opportunities for participation by
interested parties, the board of directors shall--
``(A) give additional notice of a proposal to authorize the
production and sale of a new product or service, or expand
the production of a currently authorized product or service,
in a publication designed to most effectively provide notice
to private vendors and labor unions representing private
sector workers who could reasonably be expected to be
affected by approval of the proposal, which notice shall
offer to furnish copies of the analysis required by paragraph
(6) and shall solicit comment on the analysis;
``(B) solicit comments on the analysis required by
paragraph (6) from trade associations representing vendors
and labor unions representing private sector workers who
could reasonably be expected to be affected by approval of
the proposal to authorize the production and sale of a new
product or service (or expand the production of a currently
authorized product or service); and
``(C) afford an opportunity, on request, for a
representative of an established trade association, labor
union, or other private sector representatives to present
comments on the proposal directly to the board of directors.
``(8) The board of directors shall be provided copies of
all comments received on the expansion proposal.
``(9) Based on the comments received on the initial
expansion proposal, the Chief Operating Officer of Federal
Prison Industries may provide the board of directors a
revised expansion proposal. If such revised proposal provides
for expansion of inmate work opportunities in an industry
different from that initially proposed, such revised proposal
shall reflect the analysis required by paragraph (6)(C) and
be subject to the public comment requirements of paragraph
(7).
``(10) The board of directors shall consider a proposal to
authorize the sale of a new specific product or specific
service (or to expand the volume of sales for a currently
authorized product or service) and take any action with
respect to such proposal, during a meeting that is open to
the public, unless closed pursuant to section 552(b) of title
5.
``(11) In conformance with the requirements of paragraph
(10) of this subsection, the board of directors may--
``(A) authorize the donation of products produced or
services furnished by Federal industries and available for
sale;
``(B) authorize the production of a new specific product or
the furnishing of a new specific service for donation; or
``(C) authorize a proposal to expand production of a
currently authorized specific product or specific service in
an amount in excess of a reasonable share of the market for
such product or service, if--
``(i) a Federal agency or department, purchasing such
product or service, has requested that Federal Prison
Industries be authorized to furnish such product or service
in amounts that are needed by such agency or department; or
``(ii) the proposal is justified for other good cause and
supported by at least two-thirds of the appointed members of
the board.''.
SEC. 4. TRANSITIONAL MANDATORY SOURCE AUTHORITY.
(a) In General.--Notwithstanding the requirements of
section 4124 of title 18, United States Code (as amended by
section 2 of this Act), a Federal department or agency having
a requirement for a product that is authorized for sale by
Federal Prison Industries and is listed in its catalog
(referred to in section 4124(g) of title 18, United States
Code) shall first solicit an offer from Federal Prison
Industries and make purchases on a noncompetitive basis in
accordance with this section or in accordance with section
2410n of title 10, United States Code, or section 318 of
title III of the Federal Property and Administrative Services
Act of 1949 (as added by subsection (i)).
(b) Preferential Source Status.--Subject to the limitations
of subsection (d), a contract award shall be made on a
noncompetitive basis to Federal Prison Industries if the
contracting officer for the procurement activity determines
that--
(1) the product offered by Federal Prison Industries will
meet the requirements of the procurement activity (including
commercial or governmental standards or specifications
pertaining to design, performance, testing, safety,
serviceability, and warranties as may be imposed upon a
private sector supplier of the type being offered by Federal
Prison Industries);
(2) timely performance of the contract by Federal Prison
Industries can be reasonably expected; and
(3) the negotiated price does not exceed a fair and
reasonable price.
(c) Contractual Terms.--The terms and conditions of the
contract and the price to be paid to Federal Prison
Industries shall be determined by negotiation between Federal
Prison Industries and the Federal agency making the purchase.
The negotiated price shall not exceed a fair and reasonable
price determined in accordance with the procedures of the
Federal Acquisition Regulation.
(d) Performance of Contractual Obligations.--
(1) In general.--Federal Prison Industries shall perform
the obligations of the contract negotiated pursuant to
subsection (c).
(2) Performance disputes.--If the head of the contracting
activity and the Chief Operating Officer of Federal Prison
Industries are unable to resolve a contract performance
dispute to their mutual satisfaction, such dispute shall be
resolved pursuant to section 4124(e)(3) of title 18, United
States Code (as added by section 2 of this Act).
(e) Limitations on Use of Authority.--
(1) In general.--As a percentage of the sales made by
Federal Prison Industries during the base period, the total
dollar value of sales to the Government made pursuant to
subsection (b) and subsection (c) of this section shall not
exceed--
(A) 90 percent in fiscal year 2007;
(B) 85 percent in fiscal year 2008;
(C) 70 percent in fiscal year 2009;
(D) 55 percent in fiscal year 2010; and
(E) 40 percent in fiscal year 2011.
(2) Sales within various business sectors.--Use of the
authority provided by subsections (b) and (c) shall not
result in sales by Federal Prison Industries to the
Government that are in excess of its total sales during the
base year for each business sector.
(3) Limitations relating to specific products.--Use of the
authorities provided by subsections (b) and (c) shall not
result in contract awards to Federal Prison Industries that
are in excess of its total sales during the base period for
such product.
(4) Changes in design specifications.--If a buying agency
directs a change to the design specification for a specific
product, the costs associated with the implementation of such
specification change by Federal Prison Industries shall not
be considered for the purposes of computing sales by Federal
Prison Industries for the purposes of paragraphs (2) and (3).
(f) Additional Authority to Sustain Inmate Employment.--
During the period specified in subsection (g), the authority
of section 4122(b)(11)(C)(ii) of title 18, United States Code
(as added by section 3), may be used by the Board to sustain
inmate employment.
(g) Duration of Authority.--The preferential contracting
authorities authorized by subsection (b) may not be used on
or after October 1, 2011, and become effective on the
effective date of the final regulations issued pursuant to
section 17.
(h) Definitions.--For the purposes of this section--
(1) the term ``base period'' means the total sales of
Federal Prison Industries during the period October 1, 2003,
and September 30, 2004 (Fiscal Year 2004);
(2) the term ``business sectors'' means the seven product/
service business groups identified in the 2004 Federal Prison
Industries annual report as the Clothing and Textiles
Business Group, the Electronics Business Group, the Fleet
Management and Vehicular Components
[[Page H6570]]
Business Group, the Industrial Products Business Group, the
Office Furniture Business Group, the Recycling Activities
Business Group, and the Services Business Group; and
(3) the term ``fair and reasonable price'' shall be given
the same meaning as, and be determined pursuant to, part 15.8
of the Federal Acquisition Regulation (48 C.F.R. 15.8).
(i) Finding by Attorney General With Respect to Public
Safety.--(1) Not later than 60 days prior to the end of each
fiscal year specified in subsection (e)(1), the Attorney
General shall make a finding regarding the effects of the
percentage limitation imposed by such subsection for such
fiscal year and the likely effects of the limitation imposed
by such subsection for the following fiscal year.
(2) The Attorney General's finding shall include a
determination whether such limitation has resulted or is
likely to result in a substantial reduction in inmate
industrial employment and whether such reductions, if any,
present a significant risk of adverse effects on safe prison
operation or public safety.
(3) If the Attorney General finds a significant risk of
adverse effects on either safe prison management or public
safety, he shall so advise the Congress.
(4) In advising the Congress pursuant to paragraph (3), the
Attorney General shall make recommendations for additional
authorizations of appropriations to provide additional
alternative inmate rehabilitative opportunities and
additional correctional staffing, as may be appropriate.
(j) Procedural Requirements for Civilian Agencies Relating
to Products of Federal Prison Industries.--Title III of the
Federal Property and Administrative Services Act of 1949 (41
U.S.C. 251 et seq.) is amended by adding at the end the
following new section:
``SEC. 318. PRODUCTS OF FEDERAL PRISON INDUSTRIES: PROCEDURAL
REQUIREMENTS.
``(a) Market Research.--Before purchasing a product listed
in the latest edition of the Federal Prison Industries
catalog under section 4124(g) of title 18, United States
Code, the head of an executive agency shall conduct market
research to determine whether the Federal Prison Industries
product is comparable to products available from the private
sector that best meet the executive agency's needs in terms
of price, quality, and time of delivery.
``(b) Competition Requirement.--If the head of the
executive agency determines that a Federal Prison Industries
product is not comparable in price, quality, or time of
delivery to products available from the private sector that
best meet the executive agency's needs in terms of price,
quality, and time of delivery, the agency head shall use
competitive procedures for the procurement of the product or
shall make an individual purchase under a multiple award
contract. In conducting such a competition or making such a
purchase, the agency head shall consider a timely offer from
Federal Prison Industries.
``(c) Implementation by Head of Executive Agency.--The head
of an executive agency shall ensure that--
``(1) the executive agency does not purchase a Federal
Prison Industries product or service unless a contracting
officer of the agency determines that the product or service
is comparable to products or services available from the
private sector that best meet the agency's needs in terms of
price, quality, and time of delivery; and
``(2) Federal Prison Industries performs its contractual
obligations to the same extent as any other contractor for
the executive agency.
``(d) Market Research Determination Not Subject to
Review.--A determination by a contracting officer regarding
whether a product or service offered by Federal Prison
Industries is comparable to products or services available
from the private sector that best meet an executive agency's
needs in terms of price, quality, and time of delivery shall
not be subject to review pursuant to section 4124(b) of title
18.
``(e) Performance as a Subcontractor.--(1) A contractor or
potential contractor of an executive agency may not be
required to use Federal Prison Industries as a subcontractor
or supplier of products or provider of services for the
performance of a contract of the executive agency by any
means, including means such as--
``(A) a contract solicitation provision requiring a
contractor to offer to make use of products or services of
Federal Prison Industries in the performance of the contract;
``(B) a contract specification requiring the contractor to
use specific products or services (or classes of products or
services) offered by Federal Prison Industries in the
performance of the contract; or
``(C) any contract modification directing the use of
products or services of Federal Prison Industries in the
performance of the contract.
``(2) In this subsection, the term `contractor', with
respect to a contract, includes a subcontractor at any tier
under the contract.
``(f) Protection of Classified and Sensitive Information.--
The head of an executive agency may not enter into any
contract with Federal Prison Industries under which an inmate
worker would have access to--
``(1) any data that is classified;
``(2) any geographic data regarding the location of--
``(A) surface and subsurface infrastructure providing
communications or water or electrical power distribution;
``(B) pipelines for the distribution of natural gas, bulk
petroleum products, or other commodities; or
``(C) other utilities; or
``(3) any personal or financial information about any
individual private citizen, including information relating to
such person's real property however described, without the
prior consent of the individual.
``(g) Definitions.--In this section:
``(1) The term `competitive procedures' has the meaning
given such term in section 4(5) of the Office of Federal
Procurement Policy Act (41 U.S.C. 403(5)).
``(2) The term `market research' means obtaining specific
information about the price, quality, and time of delivery of
products available in the private sector through a variety of
means, which may include--
``(A) contacting knowledgeable individuals in government
and industry;
``(B) interactive communication among industry, acquisition
personnel, and customers; and
``(C) interchange meetings or pre-solicitation conferences
with potential offerors.''.
SEC. 5. AUTHORITY TO PERFORM AS A FEDERAL SUBCONTRACTOR.
(a) In General.--Federal Prison Industries is authorized to
enter into a contract with a Federal contractor (or a
subcontractor of such contractor at any tier) to produce
products as a subcontractor or supplier in the performance of
a Federal procurement contract. The use of Federal Prison
Industries as a subcontractor or supplier shall be a wholly
voluntary business decision by the Federal prime contractor
or subcontractor, subject to any prior approval of
subcontractors or suppliers by the contracting officer which
may be imposed by the Federal Acquisition Regulation or by
the contract.
(b) Limitations on Use.--Federal Prison Industries is
prohibited from being a subcontractor or supplier at any tier
if--
(1) the product or service is to be acquired by a Federal
department or agency pursuant to section 3 of the Javits-
Wagner-O'Day Act (41 U.S.C. 48); or
(2) the product to be acquired by the Federal department or
agency is subject to section 2533a of title 10, United States
Code.
(c) Commercial Sales Prohibited.--The authority provided by
subsection (a) shall not result, either directly or
indirectly, in the sale in the commercial market of a product
or service resulting from the labor of Federal inmate workers
in violation of section 1761(a) of title 18, United States
Code. A Federal contractor (or subcontractor at any tier)
using Federal Prison Industries as a subcontractor or
supplier in furnishing a commercial product pursuant to a
Federal contract shall implement appropriate management
procedures to prevent introducing an inmate-produced product
into the commercial market.
(d) Prohibitions on Mandating Subcontracting With Federal
Prison Industries.--Except as authorized under the Federal
Acquisition Regulation, the use of Federal Prison Industries
as a subcontractor or supplier of products or provider of
services shall not be imposed upon prospective or actual
Federal prime contractors or a subcontractors at any tier by
means of--
(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 products or services)
offered by Federal Prison Industries in the performance of
the contract;
(3) any contract modification directing the use of Federal
Prison Industries, its products or services; 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 (11) a new paragraph (12) as follows:
``(12)(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
imprisonment 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 expiration 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 Industries
shall--
``(i) not later than September 30, 2008, increase the
maximum wage rate for inmates performing work for or through
Federal Prison Industries to an amount equal to 50 percent of
the minimum wage prescribed by section 6(a)(1) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)); and
``(ii) not later than September 30, 2013, increase such
maximum wage rate to an amount equal to such minimum wage.
``(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 victims 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 agreement with the
inmate;
``(v) allocations to a fund in the inmate's name to
facilitate such inmate's assimilation back into society,
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--
[[Page H6571]]
``(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) and (c) by striking
``goods, wares, or merchandise manufactured, produced, or
mined'' each place it appears 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 commercial 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, 2010, if the prison work program is
directly furnishing the services to the commercial market.
(c) Approval Required for Long-Term Operation.--A prison
work program operated by a correctional 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 certified 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.
(d) Existing Work Opportunities for Federal Inmates.--Any
private for-profit business entity having an agreement with
Federal Prison Industries in effect on the date of enactment
of this Act, under which Federal inmates are furnishing
services that are being introduced into the commercial
market, may continue to furnish such services for the
duration of the term of such agreement.
(e) Additional Amendment.--Section 1761 of title 18, United
States Code, is further amended--
(1) by redesignating subsection (d) as subsection (e); and
(2) by inserting after subsection (c) the following new
subsection:
``(d) This section shall not apply to services performed as
part of an inmate work program conducted by a State or local
government to disassemble, scrap, and recycle products, other
than electronic products, that would otherwise be disposed of
in a landfill. Recovered scrap from such program may be
sold.''.
SEC. 8. CONFORMING AMENDMENT.
Section 4122(a) of title 18, United States Code, is amended
by striking ``production of commodities'' and inserting
``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 further
amended by adding at the end the following:
``Sec. 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 Industries facility;
or
``(B) any particular wage, compensation, or benefit on
demand, except as otherwise specifically 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 OPPORTUNITIES
FOR INMATES.
(a) Additional Educational, Training, and Release-
Preparation Opportunities.--
(1) Program established.--There is hereby established the
Enhanced In-Prison Educational and Vocational Assessment and
Training Program within the Federal Bureau of Prisons.
(2) Comprehensive program.--In addition to such other
components as the Director of the Bureau of Prisons deems
appropriate to reduce inmate idleness and better prepare
inmates for a successful reentry into the community upon
release, the program shall provide--
(A) in-prison assessments of inmates' needs and aptitudes;
(B) a full range of educational opportunities;
(C) vocational training and apprenticeships; and
(D) comprehensive release-readiness preparation.
(3) Authorization of appropriations.--For the purposes of
carrying out the program established by paragraph (1),
$75,000,000 is authorized for each fiscal year after fiscal
year 2008, to remain available until expended. It is the
sense of Congress that Federal Prison Industries should use
some of its net earnings to accomplish the purposes of the
program.
(4) Schedule for implementation.--All components of the
program shall be established--
(A) in at least 25 percent of all Federal prisons not later
than 2 years after the date of the enactment of this Act;
(B) in at least 50 percent of all Federal prisons not later
than 4 years after such date of enactment;
(C) in at least 75 percent of all Federal prisons not later
than 6 years after such date of enactment; and
(D) in all Federal prisons not later than 8 years after
such date of enactment.
(b) Additional Inmate Work Opportunities Through Public
Service Activities.--
(1) In general.--Chapter 307 of title 18, United States
Code, is further amended by inserting after section 4124 the
following new section:
``Sec. 4124a. Additional inmate work opportunities through
public service activities
``(a) In General.--Inmates with work assignments within
Federal Prison Industries may perform work for an eligible
entity pursuant to an agreement between such entity and the
Inmate Work Training Administrator in accordance with the
requirements of this section.
``(b) Definition of Eligible Entities.--For the purposes of
this section, the term `eligible entity' means an entity--
``(1) that is an organization described in section
501(c)(3) of the Internal Revenue Code of 1986 and exempt
from taxation under section 501(a) of such Code and that has
been such an organization for a period of not less than 36
months prior to inclusion in an agreement under this section;
``(2) that is a religious organization described in section
501(d) of such Code and exempt from taxation under section
501(a) of such Code; or
``(3) that is a unit of local government, a school
district, or another special purpose district.
``(c) Inmate Work Training Administrator.--There is hereby
established the position of Inmate Work Training
Administrator, who shall be responsible for fostering the
creation of alternative inmate work opportunities authorized
by this section. The Administrator shall be designated by the
Chief Executive Officer of Federal Prison Industries, with
the approval of the Board of Directors, and be under the
supervision of the Chief Operating Officer, but may directly
report to the Board.
``(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 specify--
``(1) types of work to be performed;
``(2) the proposed duration of the agreement, specified in
terms of a base year and number of option 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 various 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 written certification by
the chief executive officer of the eligible entity that--
``(A) the work to be performed by the inmate workers will
be limited to the eleemosynary work of such entity in the
case of an entity described in paragraph (1) or (2) of
subsection (b);
``(B) the work would not be performed in the United States
but for the availability of the inmate workers; and
``(C) the work performed by the inmate workers will not
result, either directly or indirectly, 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 workers.--Each proposed
agreement shall also be accompanied by a written
certification by the chief executive officer of the eligible
entity that--
``(A) no non-inmate employee (including any person
performing work activities for such governmental entity
pursuant to section 607 of subchapter IV of the Social
Security Act (42 U.S.C. 607)) of the eligible entity (or any
affiliate of the entity) working in the United States 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 inmate workers will
not supplant work currently being performed in the United
States by a contractor of the eligible entity.
``(f) Approval by Board of Directors.--
``(1) In general.--Each such proposed agreement shall be
presented to the Board of Directors, be subject to the same
opportunities for public comment, and be publicly considered
and acted upon by the Board in a manner comparable to that
required by paragraphs (7) and (8) of section 4122(b).
``(2) Matters to be considered.--In determining 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
livable wage upon release;
``(B) give priority to an agreement that provides for
maximum reimbursement for inmate 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 workers contrary to the
representations required by subsection (e)(2) as determined
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 production of a new product or
the furnishing of a service for other than resale by an
eligible entity described in paragraph (1) or (2) of
subsection (b) or donation.
``(g) Wage Rates and Deductions From Inmate Wages.--
``(1) In general.--Inmate workers shall be paid wages for
work under the agreement at a basic hourly rate to be
negotiated between the eligible entity and Federal Prison
Industries and specified in the agreement. The wage rates
[[Page H6572]]
set by the Director of the Federal Bureau of Prisons to be
paid inmates for various institutional work assignments are
specifically authorized.
``(2) Payment to inmate worker and authorized deductions.--
Wages shall be paid and deductions taken pursuant to section
4122(b)(12)(D).
``(3) Voluntary participation by inmate.--Each inmate
worker to be utilized by an eligible entity shall indicate in
writing that such person--
``(A) is participating voluntarily; and
``(B) understands and agrees to the wages to be paid and
deductions to be taken from such wages.
``(h) Assignment to Work Opportunities.--Assignment of
inmates to work under an approved agreement with an eligible
entity shall be subject to the Bureau of Prisons Program
Statement Number 1040.10 (Non-Discrimination Toward Inmates),
as contained in section 551.90 of title 28 of the Code of
Federal Regulations (or any successor document).
``(i) Enforcement of Protections for Non-Inmate Workers.--
``(1) Prior to board consideration.--Upon request of any
interested person, the Secretary of Labor may promptly verify
a certification made pursuant subsection (e)(2) with respect
to the displacement of non-inmate workers so as to make the
results of such inquiry available to the Board of Directors
prior to the Board's consideration of the proposed agreement.
The Secretary and the person requesting the inquiry may make
recommendations to the Board regarding modifications to the
proposed agreement.
``(2) During performance.--
``(A) In general.--Whenever the Secretary deems
appropriate, upon request or otherwise, the Secretary may
verify whether the actual performance of the agreement is
resulting in the displacement of non-inmate workers or the
use of inmate workers in a work activity not authorized under
the approved agreement.
``(B) Sanctions.--Whenever the Secretary determines that
performance of the agreement has resulted in the displacement
of non-inmate workers or employment of an inmate worker in an
unauthorized work activity, the Secretary may--
``(i) direct the Inmate Work Training Administrator to
terminate the agreement for default, subject to the processes
and appeals available to a Federal contractor whose
procurement contract has been terminated for default; and
``(ii) initiate proceedings to impose upon the person
furnishing the certification regarding non-displacement of
non-inmate workers required by subsection (d)(2)(B) any
administrative, civil, and criminal sanctions as may be
available.''.
(2) Authorization of appropriation.--There is authorized to
be appropriated $5,000,000 for each of the fiscal years 2008
through 2012 for the purposes of paying the wages of inmates
and otherwise undertaking the maximum number of agreements
with eligible entities pursuant to section 4124a of title 18,
United States Code, as added by paragraph (1).
(3) Sense of congress.--For purposes of sections 4124a and
4124b of title 18, United States Code, as added by sections
10(b) and 11, respectively, it is the sense of Congress that
an inmate training wage that is at least 50 percent of the
minimum wage prescribed pursuant to section 6(a)(1) of the
Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)) will
facilitate successful achievement of the goals of the work-
based training and apprenticeship program authorized under
such section 4124a.
(c) Inmate Work Opportunities in Support of Not-for-Profit
Entities.--
(1) Proposals for donation programs.--The Chief Operating
Officer of Federal Prison Industries shall develop and
present to the Board of Directors of Federal Prison
Industries proposals to have Federal Prison Industries donate
products and services to eligible entities that provide goods
or services to low-income individuals who would likely
otherwise have difficulty purchasing such products or
services in the commercial market.
(2) Schedule for submission and consideration of donation
programs.--
(A) Initial proposals.--The Chief Operating Officer shall
submit the initial group of proposals for programs of the
type described in paragraph (1) within 180 days after the
date of the enactment of this Act. The Board of Directors of
Federal Prison Industries shall consider such proposals from
the Chief Operating Officer not later than the date that is
270 days after the date of the enactment of this Act.
(B) Annual operating plan.--The Board of Directors of
Federal Prison Industries shall consider proposals by the
Chief Operating Officer for programs of the type described in
paragraph (1) as part of the annual operating plan for
Federal Prison Industries.
(C) Other proposals.--In addition to proposals submitted by
the Chief Operating Officer, the Board of Directors may, from
time to time, consider proposals presented by prospective
eligible entities.
(3) Definition of eligible entities.--For the purposes of
this subsection, the term ``eligible entity'' means an
entity--
(A) that is an organization described in section 501(c)(3)
of the Internal Revenue Code of 1986 and exempt from taxation
under section 501(a) of such Code and that has been such an
organization for a period of not less than 36 months prior to
inclusion in a proposal of the type described in paragraph
(1), or
(B) that is a religious organization described in section
501(d) of such Code and exempt from taxation under section
501(a) of such Code.
(4) Authorization of appropriations.--There are authorized
to be appropriated $7,000,000 for each of the fiscal years
2008 through 2012 for the purposes of paying the wages of
inmates and otherwise carrying out programs of the type
described in paragraph (1).
(d) Maximizing Inmate Rehabilitative Opportunities Through
Cognitive Abilities Assessments.--
(1) Demonstration program authorized.--
(A) In general.--There is hereby established within the
Federal Bureau of Prisons a program to be known as the
``Cognitive Abilities Assessment Demonstration Program''. The
purpose of the demonstration program is to determine the
effectiveness of a program that assesses the cognitive
abilities and perceptual skills of Federal inmates to
maximize the benefits of various rehabilitative opportunities
designed to prepare each inmate for a successful return to
society and reduce recidivism. The demonstration program
shall be undertaken by a contractor with a demonstrated
record of enabling the behavioral and academic improvement of
adults through the use of research-based systems that
maximize the development of both the cognitive and perceptual
capabilities of a participating individual, including adults
in a correctional setting.
(B) Scope of demonstration program.--The demonstration
program shall to the maximum extent practicable, be--
(i) conducted during a period of three consecutive fiscal
years, commencing during fiscal year 2008;
(ii) conducted at 12 Federal correctional institutions; and
(iii) offered to 6,000 inmates, who are categorized as
minimum security or less, and are within five years of
release.
(C) Report on results of program.--Not later than 60 days
after completion of the demonstration program, the Director
shall submit to Congress a report on the results of the
program. At a minimum, the report shall include an analysis
of employment stability, stability of residence, and rates of
recidivism among inmates who participated in the program
after 18 months of release.
(2) Authorization of appropriations.--There is authorized
to be appropriated $3,000,000 in each of the three fiscal
years after fiscal year 2007, to remain available until
expended, for the purposes of conducting the demonstration
program authorized by subsection (a).
(e) Prerelease Employment Assistance.--
(1) In general.--The Director of the Federal Bureau of
Prisons shall, to the maximum extent practicable, afford to
inmates opportunities to participate in programs and
activities designed to help prepare such inmates to obtain
employment upon release.
(2) Prerelease employment placement assistance.--Such
prerelease employment placement assistance required by
subsection (a) shall include--
(A) training in the preparation of resumes and job
applications;
(B) training in interviewing skills;
(C) training and assistance in job search techniques;
(D) conduct of job fairs; and
(E) such other methods deemed appropriate by the Director.
(3) Priority participation.--Priority in program
participation shall be accorded to inmates who are
participating in work opportunities afforded by Federal
Prison Industries and are within 24 months of release from
incarceration.
SEC. 11. RE-ENTRY EMPLOYMENT PREPARATION THROUGH WORK-BASED
TRAINING AND APPRENTICESHIP.
(a) In General.--Chapter 307 of title 18, United States
Code, is further amended by inserting after section 4124a, as
added by section 10(b), the following new section:
``Sec. 4124b. Re-entry employment preparation through work-
based training and apprenticeship.
``(a) Participation Authorized.--A private for-profit
business entity shall be an eligible entity for participation
in the program authorized by section 4124a of this title, if
such participation conforms with the requirements and
limitations of this section.
``(b) Requirements Relating to Products and Services.--A
private for-profit business entity is eligible for such
participation if such business entity proposes to train
participating inmates, pursuant to subsection (c), by
producing a product or performing a service, if such product
or service is of a type for which there is no production or
performance within the United States by noninmate workers.
``(c) Requirements Relating to Training.--
``(1) In general.--For purposes of this section, the
training of participating inmates shall be work-based
training that provides to a participating inmate
apprenticeship training or a functionally equivalent
structured program that combines hands-on work experience
with conceptual understanding of the work being performed.
Other inmates with regular work assignments within Federal
Prison Industries may be assigned to support the program.
``(2) Documentation of program participation.--
``(A) Each inmate who successfully completes participation
in training undertaken pursuant to this section shall be
provided a certificate or other written document
memorializing such successful completion, providing a
marketable summary of the skills learned and an overall
assessment of performance.
``(B) Copies of such documents shall be furnished to
perspective employers upon the request of the participant for
a period of not less than 24 months from the date of such
participant's release from incarceration.
``(3) Documents required for employment.--The Federal
Bureau of Prisons, in cooperation with a business entity
providing an inmate work-based training at the time of his or
her scheduled release, shall make every reasonable effort to
help the inmate timely obtain such documentation (including a
State government-
[[Page H6573]]
issued photo identification card) as a person may be required
to provide to a prospective employer, after such person
completes an Employment Eligibility Verification (ICE Form I-
9).
``(d) Wage Rates.--
``(1) In general.--Business entities participating in the
program authorized by subsection (a) shall propose wages for
inmates participating in the program at rates not less than
the inmate training wage promulgated pursuant to section
17(c) of the Federal Prison Industries Competition in
Contracting Act of 2006.
``(2) Inmate training wage.--Not more than 30 days after
the date of enactment of this section, the Board of Directors
of Federal Prison Industries shall request the Secretary of
Labor to promulgate an inmate training wage pursuant to
section 14(a) of the Fair Labor Standards Act of 1938 (29
U.S.C. 214(a)).
``(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 referred to in such
section submitted by an eligible business entity shall
specify an amount of any supplemental funding, specified as a
per-capita amount for each inmate participating 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 considering a
proposed agreement pursuant to section 4124a(f)(1) of this
title, the Board of Directors shall--
``(1) give preference to an agreement that proposes--
``(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 pursuant to subsection
(e) relating to providing financial support for release
preparation for other inmates; and
``(C) the highest inmate wage rates;
``(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 performed 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 International Trade
Commission (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 workers, whenever the Board determines that such an
additional assessment is warranted, including upon a request
from an interested party presenting information that the
Board deems to warrant such additional assessment prior to
the Board's consideration of the proposed agreement.
``(g) Limitations on the Use of the Authority.--
``(1) No sales by federal prison industries.--Federal
Prison Industries is prohibited from directly offering for
commercial sale products 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,
2016.
``(B) Performance of all such agreements shall be concluded
prior to October 1, 2021.''.
(b) Review and Reporting by the Attorney General.--Not less
than biannually, beginning in fiscal year 2008, 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
written report to the Committees on the Judiciary and
Appropriations 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 assessment of the
authority granted by section 4124b of title 18, United States
Code, as added by subsection (a).
(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 inmates;
(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 participation of
supervisory, quality assurance, and other management
employees of the participating business entity in worksites
within correctional 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;
(G) the rates of wages paid to inmate workers and the
effect that such wage rates have on willingness of business
entities to participate;
(H) any complaints filed regarding the displacement 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 disposition 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 business 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 opportunities for
Federal inmates with work assignments with Federal Prison
Industries provided 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 2007;
(ii) sales to Federal agencies of services, both through
non-competitive interagency transfers and as a result of
direct competition from private-sector offerors during the
period fiscal year 1990 though fiscal year 2007;
(iii) performance as a subcontrator to a Federal prime
contractor or Federal subcontractor at a higher tier
beginning in fiscal year 1990;
(iv) introduction of inmate-furnished services into the
commercial market, beginning in the second quarter of fiscal
year 1998;
(v) alternative inmate work opportunities, beginning in
fiscal year 2007, provided by agreements with--
(I) non-profit organizations, pursuant to section
4124a(b)(1) of title 18, United States Code, as added by
section 10(b), and section 10(c);
(II) religious organizations, pursuant to section
4124a(b)(2) of title 18, United States Code;
(III) units of local governments, school districts, or
other special purpose districts, pursuant to section
4124a(b)(3) of title 18, United States Code;
(IV) work-based Employment Preparation Programs for Federal
inmates, pursuant to section 4124b of title 18, United States
Code, as added by section 11; or
(V) other means.
(3) Opportunity for public comment.--The Comptroller
General shall provide an opportunity for public comment on
the proposed scope and methodology for the assessment
required by paragraph (1), making such modifications in
response to such comments as he deems appropriate.
(4) Reports and recommendations.--
(A) In general.--The Comptroller General shall submit to
the Congress in accordance with this subsection two interim
reports and a final report of the assessment of
implementation of the new authority, including such
recommendations 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 authority through the
end of fiscal year 2007; and
(ii) from the effective date of the authority through the
end of fiscal year 2010.
(C) Final report.--The final report shall assess the
implementation of the new authority from the effective date
of the authority through the end of fiscal year 2013.
(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).
(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 subsection (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 section 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:
``Sec. 4121. Federal Prison Industries; Board of Directors:
executive management
``(a) Federal Prison Industries is a government corporation
of the District of Columbia organized to carry on such
industrial operations in Federal correctional institutions as
authorized by its Board of Directors. The manner and extent
to which such industrial operations are carried 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 business community,
3 members represent organized labor, 1 member shall have
special expertise in inmate rehabilitation techniques, 1
member represents victims of crime, 1 member represents the
interests of Federal inmate workers, and 2 additional members
whose background and expertise the President deems
appropriate. The members of the Board representing the
business community shall include, 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
[[Page H6574]]
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 community shall
be appointed for a term of 3 years;
``(B) 2 members representing labor shall be appointed for a
term of 3 years;
``(C) 2 members whose background and expertise 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 community shall be
appointed for a term of 4 years;
``(G) 1 member representing the business community 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 appointed 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
subchapter 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 enable the
Board to perform its duties.
``(B) Upon request of the Chairperson of the Board, a
Federal agency may detail a Federal Government employee 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 temporary
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 Operating Officer
of the Corporation.''.
(b) Continued Governance.--The members of the Board of
Directors serving on the date of enactment of this Act, and
the person selected by them as Chairman, shall continue to
exercise the duties and responsibilities of the Board until
the earlier of--
(1) the date on which the President has appointed at least
6 members of the Board and designated a new Chairman,
pursuant to section 4121 of title 18, United States Code (as
added by section 12(a) of this Act); or
(2) the date that is 365 days after the date of enactment
of this Act.
SEC. 13. PROVIDING ADDITIONAL MANAGEMENT FLEXIBILITY TO
FEDERAL PRISON INDUSTRIES OPERATIONS.
Section 4122(b)(3) of title 18, United States Code, is
amended--
(1) by striking ``(3)'' and inserting ``(3)(A)''; and
(2) by adding at the end the following new paragraphs:
``(B) Federal Prison Industries may locate more than one
workshop at a Federal correctional facility.
``(C) Federal Prison Industries may operate a workshop
outside of a correctional facility if all of the inmates
working in such workshop are classified as minimum security
inmates.''.
SEC. 14. TRANSITIONAL PERSONNEL MANAGEMENT AUTHORITY.
Any correctional officer or other employee of Federal
Prison Industries being paid with nonappropriated funds who
would be separated from service because of a reduction in the
net income of Federal Prison Industries during any fiscal
year specified in section 4(e)(1) shall be--
(1) eligible for appointment (or reappointment) in the
competitive service pursuant to title 5, United States Code;
(2) registered on a Bureau of Prisons reemployment priority
list; and
(3) given priority for any other position within the Bureau
of Prisons for which such employee is qualified.
SEC. 15. FEDERAL PRISON INDUSTRIES REPORT TO CONGRESS.
Section 4127 of title 18, United States Code, is amended to
read as follows:
``Sec. 4127. Federal Prison Industries report to Congress
``(a) In General.--Pursuant to chapter 91 of title 31, the
board of directors of Federal Prison Industries shall submit
an annual report to Congress on the conduct of the business
of the corporation during each fiscal year and the condition
of its funds during the fiscal year.
``(b) Contents of Report.--In addition to the matters
required by section 9106 of title 31, and such other matters
as the board considers appropriate, a report under subsection
(a) shall include--
``(1) a statement of the amount of obligations issued under
section 4129(a)(1) of this title during the fiscal year;
``(2) an estimate of the amount of obligations that will be
issued in the following fiscal year;
``(3) an analysis of--
``(A) the corporation's total sales for each specific
product and type of service sold to the Federal agencies and
the commercial market;
``(B) the total purchases by each Federal agency of each
specific product and type of service;
``(C) the corporation's share of such total Federal
Government purchases by specific product and type of service;
and
``(D) the number and disposition of disputes submitted to
the heads of the Federal departments and agencies pursuant to
section 4124(e) of this title;
``(4) an allocation of the profits of the corporation, both
gross and net, to--
``(A) educational, training, release-preparation
opportunities for inmates;
``(B) opening new factories; and
``(C) improving the productivity and competitiveness of
existing factories;
``(5) an analysis of the inmate workforce that includes--
``(A) the number of inmates employed;
``(B) the number of inmates utilized to produce products or
furnish services sold in the commercial market;
``(C) the number and percentage of employed inmates by the
term of their incarceration; and
``(D) the various hourly wages paid to inmates employed
with respect to the production of the various specific
products and types of services authorized for production and
sale to Federal agencies and in the commercial market; and
``(6) data concerning employment obtained by former inmates
upon release to determine whether the employment provided by
Federal Prison Industries during incarceration provided such
inmates with knowledge and skill in a trade or occupation
that enabled such former inmate to earn a livelihood upon
release.
``(c) Public Availability.--Copies of an annual report
under subsection (a) shall be made available to the public at
a price not exceeding the cost of printing the report.''.
SEC. 16. DEFINITIONS.
Chapter 307 of title 18, United States Code, is amended by
adding at the end the following new section:
``Sec. 4131. Definitions
``As used in this chapter--
``(1) the term `assembly' means the process of uniting or
combining articles or components (including ancillary
finished components or assemblies) so as to produce a
significant change in form or utility, without necessarily
changing or altering the component parts;
``(2) the term `current market price' means, with respect
to a specific product, the fair market price of the product
within the meaning of section 15(a) of the Small Business Act
(15 U.S.C. 644(a)), at the time that the contract is to be
awarded, verified through appropriate price analysis or cost
analysis, including any costs relating to transportation or
the furnishing of any ancillary services;
``(3) the term `import-sensitive product' means a product
which, according to Department of Commerce data, has
experienced competition from imports at an import to domestic
production ratio of 25 percent or greater;
``(4) the term `labor-intensive manufacture' means a
manufacturing activity in which the value of inmate labor
constitutes at least 10 percent of the estimate unit cost to
produce the item by Federal Prison Industries;
``(5) the term `manufacture' means the process of
fabricating from raw or prepared materials, so as to impart
to those materials new forms, qualities, properties, and
combinations;
``(6) the term `reasonable share of the market' means a
share of the total purchases by the Federal departments and
agencies, as reported to the Federal Procurement Data System
for--
``(A) any specific product during the 3 preceding fiscal
years, that does not exceed 20 percent of the Federal market
for the specific product; and
``(B) any specific service during the 3 preceding fiscal
years, that does not exceed 5 percent of the Federal market
for the specific service; and
``(7) the term `services' has the meaning given the term
`service contract' by section 37.101 of the Federal
Acquisition Regulation (48 C.F.R. 36.102), as in effect on
July 1, 2004.''.
SEC. 17. IMPLEMENTING REGULATIONS AND PROCEDURES.
(a) Federal Acquisition Regulation.--
(1) Proposed revisions.--Proposed revisions to the
Governmentwide Federal Acquisition Regulation to implement
the amendments made by this Act shall be published not later
than 60 days after the date of the enactment of this Act and
provide not less than 60 days for public comment.
(2) Final regulations.--Final regulations shall be
published not later than 180 days after the date of the
enactment of this Act and shall be effective on the date that
is 30 days after the date of publication.
(3) Public participation.--The proposed regulations
required by subsection (a) and the final regulations required
by subsection (b) shall afford an opportunity for public
participation in accordance with section 22 of the Office of
Federal Procurement Policy Act (41 U.S.C. 418b).
(b) Board of Directors.--
(1) In general.--The Board of Directors of Federal Prison
Industries shall issue regulations defining the terms
specified in paragraph (2).
(2) Terms to be defined.--The Board of Directors shall
issue regulations for the following terms:
(A) Prison-made product.
(B) Prison-furnished service.
(C) Specific product.
(D) Specific service.
(3) Schedule for regulatory definitions.--
(A) Proposed regulations relating to the matter described
in subsection (b)(2) shall be published not later than 60
days after the date of
[[Page H6575]]
enactment of this Act and provide not less than 60 days for
public comment.
(B) Final regulations relating to the matters described in
subsection (b)(2) shall be published not less than 180 days
after the date of enactment of this Act and shall be
effective on the date that is 30 days after the date of
publication.
(4) Enhanced opportunities for public participation and
scrutiny.--
(A) Administrative procedure act.--Regulations issued by
the Board of Directors shall be subject to notice and comment
rulemaking pursuant to section 553 of title 5, United States
Code. Unless determined wholly impracticable or unnecessary
by the Board of Directors, the public shall be afforded 60
days for comment on proposed regulations.
(B) Enhanced outreach.--The Board of Directors shall use
means designed to most effectively solicit public comment on
proposed regulations, procedures, and policies and to inform
the affected public of final regulations, procedures, and
policies.
(C) Open meeting processes.--The Board of Directors shall
take all actions relating to the adoption of regulations,
operating procedures, guidelines, and any other matter
relating to the governance and operation of Federal Prison
Industries based on deliberations and a recorded vote
conducted during a meeting open to the public, unless closed
pursuant to section 552(b) of title 5, United States Code.
(c) Secretary of Labor.--
(1) Schedule for regulatory action.--Upon receipt of a
request from the Federal Prison Industries Board of
Directors, pursuant to section 11(d)(2), to establish an
inmate training wage pursuant to section 14(a) of the Fair
Labor Standards Act of 1938 (29 U.S.C. 214(a)), the Secretary
of Labor, in consultation with the Attorney General, shall
issue--
(A) an advanced notice of proposed rulemaking within 60
days;
(B) an interim regulation with concurrent request for
public comments within 180 days; and
(C) a final regulation within 365 days.
(2) Alternative to timely issuance.--In the event that the
Secretary of Labor fails to issue an interim inmate training
wage by the date required by paragraph (1)(B), the Federal
Prison Industries Board of Directors may prescribe an interim
inmate training wage, which shall be in an amount not less
than 50 percent of the amount of the minimum wage prescribed
pursuant to section 6(a)(1) of such Act (29 U.S.C.
206(a)(1)).
(3) Continued use of interim inmate training wage.--
(A) The interim inmate training wage issued pursuant to
paragraph (1)(B) or prescribed under paragraph (2) shall
remain in effect until the effective date of a final
regulation, issued pursuant to paragraph (1)(C).
(B) An eligible entity having an approved agreement with
Federal Prison Industries pursuant to section 4124b of title
18, United States Code, may continue to pay participating
inmates at the wages prescribed in the agreement for the
duration of the agreement, if those wages comply with the
standards of the interim inmate training wage issued pursuant
to paragraph (1)(B) or prescribed under paragraph (2).
(4) Existing agreements with nonconforming wages.--Any for-
profit business concern having an agreement with Federal
Prison Industries in effect on the date of enactment of this
Act, under which Federal inmates are furnishing services that
are being introduced into the commercial market, may continue
to pay wages at rates specified in the agreement for the
duration of the term of such agreement.
SEC. 18. RULES OF CONSTRUCTION.
(a) Agency Bid Protests.--Subsection (e) of section 4124 of
title 18, United States Code, as amended by section 2, is not
intended to alter any rights of any offeror other than
Federal Prison Industries to file a bid protest in accordance
with other law or regulation in effect on the date of the
enactment of this Act.
(b) Javits-Wagner-O'Day Act.--Nothing in this Act is
intended to modify the Javits-Wagner-O'Day Act (41 U.S.C. 46
et seq.).
SEC. 19. EFFECTIVE DATE AND APPLICABILITY.
(a) Effective Date.--Except as provided in subsection (b),
this Act and the amendments made by this Act shall take
effect on the date of enactment of this Act.
(b) Applicability.--Section 4124 of title 18, United States
Code, as amended by section 2, shall apply to any requirement
for a product or service offered by Federal Prison Industries
needed by a Federal department or agency after the effective
date of the final regulations issued pursuant to section
17(a)(2), or after September 30, 2007, whichever is earlier.
SEC. 20. CLERICAL AMENDMENTS.
The table of sections for chapter 307 of title 18, United
States Code, is amended--
(1) by amending the item relating to section 4121 to read
as follows:
``4121. Federal Prison Industries; Board of Directors: executive
management.'';
(2) by amending the item relating to section 4124 to read
as follows:
``4124. Governmentwide procurement policy relating to purchases from
Federal Prison Industries.'';
(3) by inserting after the item relating to section 4124
the following new items:
``4124a. Additional inmate work opportunities through public service
activities.
``4124b. Re-entry employment preparation through work-based training
and apprenticeship.'';
(4) by amending the item relating to section 4127 to read
as follows:
``4127. Federal Prison Industries report to Congress.'';
and
(5) by adding at the end the following new items:
``4130. Construction of provisions.
``4131. Definitions.''.
The Acting CHAIRMAN. No amendment to the committee amendment is in
order except the amendments printed in House Report 109-647. Each
amendment may be offered only in the order printed in the report, by a
Member designated in the report, shall be considered read, shall be
debatable for the time specified in the report, equally divided and
controlled by the proponent and an opponent of the amendment, shall not
be subject to amendment and shall not be subject to a demand for
division of the question.
Amendment No. 1 Offered by Mr. Sensenbrenner
The Acting CHAIRMAN. It is now in order to consider amendment No. 1
printed in House Report 109-647.
Mr. SENSENBRENNER. Mr. Chairman, I offer an amendment.
The Acting CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 1 offered by Mr. Sensenbrenner:
Page 8, lines 13 and 14, strike ``offer the price of'' and
insert ``offered price''.
Page 20, line 3, strike ``(i)'' and insert ``(j)''.
Page 21, line 21, strike ``2007'' and insert ``2008''.
Page 21, line 22, strike ``2008'' and insert ``2009''.
Page 21, line 23, strike ``2009'' and insert ``2010''.
Page 21, line 24, strike ``2010'' and insert ``2011''.
Page 21, line 25, strike ``2011'' and insert ``2012''.
Page 23, line 1, strike ``2011'' and ``2012''.
Page 33, lines 16 and 20, strike ``2004'' each place it
appears and insert ``2006''.
Page 33, line 21, strike ``2010'' and insert ``2011''.
Page 36, line 26, strike ``2008'' and insert ``2007''.
Page 55, lines 3 and 4, strike ``International Trade
Commission'' and insert ``Department of Commerce''.
Page 61, line 2, strike ``2007'' and insert ``2009''.
Page 61, line 4, strike ``2010'' and insert ``2012''.
Page 61, line 8, strike ``2013'' and insert ``2014''.
Page 66, strike lines 1 through 3, and insert the following
(and conform the table of contents accordingly):
SEC. 13. MANAGEMENT MATTERS.
Page 66, line 4, insert ``(a) Additional Flexibilities.--''
before ``Section 4122(b)(3)''.
Page 66, after line 15, insert the following:
(b) Cost Accounting System.--
(1) Establishment.--Federal Prison Industries shall
establish a cost accounting system that meets the
requirements of part 30 (Cost Accounting Standards
Administration) of the Federal Acquisition Regulation (48
C.F.R. part 30). The compliance of the cost accounting system
with such standards shall be annually verified as part of the
independent audit of Federal Prison Industries, Inc.,
pursuant to section 9106(b) of title 31, United States Code.
(2) Application of related provision.--Section 4124(c)(2)
of title 18, United States Code, shall apply when Federal
Prison Industries has been found to have a complaint cost
accounting system pursuant to paragraph (1).
The Acting CHAIRMAN. Pursuant to House Resolution 997, the gentleman
from Wisconsin (Mr. Sensenbrenner) and a Member opposed each will
control 5 minutes.
The Chair recognizes the gentleman from Wisconsin.
Mr. SENSENBRENNER. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, this manager's amendment would make technical
corrections to H.R. 2965. The amendment modifies 13 dates in various
provisions of the bill to reflect the passage of time since its
introduction, and also corrects one sectional cross-reference, and a
reference to an executive branch agency.
In addition, this amendment adds a provision to correct an amendment
that was accepted during the Judiciary Committee's markup, which would
require Federal Prison Industries, Inc., to establish a cost accounting
system. This technical change is necessary to implement the amendment.
Finally, the proposed amendment makes a grammatical correction.
The changes are all technical in nature, but essential to the proper
implementation of the bill. I urge my colleagues to support the
amendment.
Mr. Chairman, I reserve the balance of my time.
The Acting CHAIRMAN. Does the gentleman from Michigan claim the time
in opposition?
[[Page H6576]]
Mr. CONYERS. I do.
The Acting CHAIRMAN. The gentleman from Michigan is recognized for 5
minutes.
Mr. CONYERS. Mr. Chairman, I rise to support the amendment because it
is technical in nature, and I am sure thereby that there will be little
objection to it.
Mr. Chairman, I yield back the balance of my time.
Mr. SENSENBRENNER. Mr. Chairman, I yield myself the balance of my
time.
I am happy that between the time the gentleman rose to oppose the
amendment and the time he started speaking he was persuaded to support
the amendment.
Mr. Chairman, I yield back the balance of my time.
The Acting CHAIRMAN. The question is on the amendment offered by the
gentleman from Wisconsin (Mr. Sensenbrenner).
The amendment was agreed to.
Amendment No. 2 Offered by Mr. Scott of Virginia
The Acting CHAIRMAN. It is now in order to consider amendment No. 2
printed in House Report 109-647.
Mr. SCOTT of Virginia. Mr. Chairman, I offer an amendment.
The Acting CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 2 offered by Mr. Scott of Virginia:
Page 7, line 21, insert before the period the following:
``and, in the discretion of the Attorney General, other
agencies and offices of the Department of Justice, on a
contract-by-contract basis''.
The Acting CHAIRMAN. Pursuant to House Resolution 997, the gentleman
from Virginia (Mr. Scott) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Virginia.
Mr. SCOTT of Virginia. Mr. Chairman, I yield myself such time as I
may consume.
Mr. Chairman, this amendment would also authorize the Justice
Department to acquire products from the Federal Prison Industries on a
noncompetitive basis as deemed appropriate by the Attorney General.
Along with the Bureau of Prisons, the Attorney General has the
responsibility for the safe, productive operation of Federal prisons
and should, therefore, have the authority to ensure that all operations
under his control are available to be directed to this effort. And
insofar as Federal Prison Industries program is concerned, we know it
is an effective tool to help the prison operations.
This could be a much more realistic option for the Attorney General
to ensure against disruption at a prison from the loss of jobs and
contracts than the notion in the bill that he would have to declare the
prison unmanageable without a particular contract. That is what is in
the bill.
It is not the wholesale authority for the Attorney General to direct
any agency to award all of its FPI contracts, but only as deemed
necessary or appropriate by the Attorney General, and it only covers
Justice Department agencies.
Remember, Mr. Chairman, we are trying to create jobs and manage the
prisons. That is what this amendment would help the Attorney General
do. I hope it would be the body's pleasure to adopt the amendment.
Mr. Chairman, I reserve the balance of my time.
Mr. SENSENBRENNER. Mr. Chairman, I claim the time in opposition to
the amendment.
The Acting CHAIRMAN. The gentleman from Wisconsin is recognized.
Mr. SENSENBRENNER. Mr. Chairman, I yield myself such time as I may
consume.
Mr. Chairman, the underlying bill permits sole-source contracts
between the Federal Bureau of Prisons and the Federal Prison
Industries. This amendment would extend the sole-source authority to
the entire Department of Justice.
Existing law allows a head of any executive agency to make a sole-
source contract award, if the agency head makes a determination that
such an award is in the ``public interest.'' Following such a
determination, Congress must be notified and the contract award
suspended for 30 calendar days.
This bill expressly provides the Attorney General to grant a
noncompetitive contract whenever it is deemed necessary to maintain
prison safety. Additionally, the bill allows the FPI board of directors
to exceed the level specified for FPI sales if good cause is shown,
which would include maintaining inmate equipment.
DOJ operates a number of agencies, and the cost to the private sector
in lost jobs and businesses would be extensive. In addition, the
Department of Justice contains several law enforcement agencies, and
requiring their personnel to utilize products made by inmates may raise
safety concerns.
Finally, the purpose of this legislation is to ensure that the
government corporations do not take away opportunities from private
businesses and to ensure that the taxpayers' money is wisely spent. The
amendment would undermine that goal by denying the entire Department of
Justice access to the benefits of competitive pricing, thereby forcing
the taxpayer to bear the burden of higher prices.
I urge my colleagues to reject this amendment.
Mr. Chairman, I reserve the balance of my time.
Parliamentary Inquiry
Mr. SENSENBRENNER. Parliamentary inquiry, Mr. Chairman. Do either Mr.
Conyers or I have the right to close?
The Acting CHAIRMAN. The gentleman from Wisconsin has the right to
close.
Mr. SENSENBRENNER. It is the intention of the gentleman from
Wisconsin to yield for the closing statement to the gentleman from
Michigan, but I would ask the gentleman from Virginia to use up his
time and then Mr. Conyers can close.
Mr. SCOTT of Virginia. Mr. Chairman, I yield myself the balance of my
time.
I would close by saying this amendment would allow the Attorney
General to make sure that there are enough jobs in the Federal Prison
Industries to help manage the prisons. We know the more jobs there are,
the less crime there will be in the future. That is the purpose of this
amendment, managing the prisons and reducing crime.
I would hope we would adopt that goal by allowing prisons to be
managed better and reducing crime by adopting the amendment.
Mr. Chairman, I yield back the balance of my time.
Mr. SENSENBRENNER. Mr. Chairman, I yield the balance of my time to
the gentleman from Michigan (Mr. Conyers).
Mr. CONYERS. Mr. Chairman, I thank the gentleman for yielding me this
time.
When you examine this amendment, this creates a loophole that could
undermine the entire bill and any attempt that we have toward educating
inmates, teaching vocational skills, and getting contracts for jobs
because I, for one, am not for putting this into the tender hands and
the gentle mercies of the Attorney General of the United States.
I mean, I have never heard them even suggest that they support
anything in this bill. So for me to want to create this carve-out to
allow the Attorney General to direct agencies within the Department of
Justice to award individual contracts to Federal Prison Industries on a
noncompetitive basis is going way too far in terms of us trying to
bring some justice to this bill.
Now, we have to control our emotions here, ladies and gentlemen. This
is about how we help people who have violated the law return to
society. There is more than one way to do it. There are several ways to
do it. We are in the process of creating what we think will be a new
and better and more balanced way than the way that we have now.
This is not slamming the Federal Prison Industries. As a matter of
fact, under the provisions of this bill, they will be able to operate
with nonprofits, with government organizations, with churches. There
are a lot of ways to deal with this.
The important thing is we all come together and get the money.
Somebody said $75 million. Do you know how far $75 million goes in the
expenditures that we are making on Iraq every day? This should not be
the toughest assignment that those of us who support rehabilitation
programs would make.
[[Page H6577]]
I urge that if there is any one amendment that should be rejected, it
would be one that would leave this measure to the tender mercies of the
Attorney General of the United States.
I thank the gentleman for yielding me this time.
Mr. SENSENBRENNER. Mr. Chairman, I yield back the balance of my time.
The Acting CHAIRMAN. The question is on the amendment offered by the
gentleman from Virginia (Mr. Scott).
The question was taken; and the Acting Chairman announced that the
noes appeared to have it.
Mr. SCOTT of Virginia. Mr. Chairman, I demand a recorded vote.
The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Virginia
will be postponed.
It is now in order to consider amendment No. 3 printed in House
Report 109-647.
It is now in order to consider amendment No. 4 printed in House
Report 109-647.
Amendment No. 5 Offered by Mr. Scott of Virginia
The Acting CHAIRMAN. It is now in order to consider amendment No. 5
printed in House Report 109-647.
Mr. SCOTT of Virginia. Mr. Chairman, I offer an amendment.
The Acting CHAIRMAN. The Clerk will designate the amendment.
The text of the amendment is as follows:
Amendment No. 5 offered by Mr. Scott of Virginia:
Page 35, line 6, insert after ``services'' the following:
``, except that the Board of Directors may authorize Federal
Prison Industries to continue providing to private, for-
profit businesses services of the type and to the extent
being performed on the date of the enactment of the Federal
Prison Industries Competition in Contracting Act of 2006, on
a competitive basis''.
The Acting CHAIRMAN. Pursuant to House Resolution 997, the gentleman
from Virginia (Mr. Scott) and a Member opposed each will control 5
minutes.
The Chair recognizes the gentleman from Virginia.
Mr. SCOTT of Virginia. Mr. Chairman, I yield myself such time as I
may consume.
Mr. Chairman, this amendment would allow the level of service
contracts now being performed by FPI to continue at that level while
prohibiting further expansion. There is no mandatory source provision
for service contracts so they are already competitive. Most of the
contracts involve work that would otherwise be done offshore, so FPI's
competition is with foreign workers, not Americans.
There have been no complaints about service contracts. Service
contracts constitute a significant portion of the inmate work
opportunities now in the program. None of these authorities
individually or combined in the bill will realistically produce
sufficient work opportunities for inmates to replace the loss of jobs
from the elimination of mandatory source and the loss of current
service contract jobs.
Stable FPI jobs are critical to the efficient and safe operation of
Federal prisons and the rehabilitation of inmates which correlates
directly with public safety. There is no record to suggest that this
part of FPI is broken beyond the philosophical view that it represents
some kind of unfair competition to American businesses and workers; but
in this case, there is virtually no competition. The reality is that
this is not true, and no one has suggested that FPI service contracts
today have any significant impact on American businesses or workers.
Let us at least continue the level of service contracts we have now
in an effort to reduce crime in the future. We are trying to reduce
crime, trying to help manage the prisons. This will be go a little way
into preserving some of those opportunities.
Mr. Chairman, I reserve the balance of my time.
{time} 1230
Mr. SENSENBRENNER. Mr. Chairman, I rise in opposition to the
amendment.
The Acting CHAIRMAN. The gentleman from Wisconsin is recognized for 5
minutes.
Mr. SENSENBRENNER. Mr. Chairman, this amendment is a bad one because
it would authorize the FPI to sell inmate-furnished services in the
commercial market, which it first initiated in August of 1998.
In February of that year, FPI obtained a legal memorandum from the
Department of Justice Criminal Division stating that the sale of
inmate-furnished services was not expressly prohibited by existing law,
notwithstanding the fact that 18 U.S.C. section 1761(a) generally
prohibits the introduction of results of inmate labor into the
commercial market.
This view was later adopted as the Department's official position,
and though not issued by the Office of Legal Counsel, the then Attorney
General offered FPI's new commercial market service initiative based on
the Criminal Division's opinion.
FPI's 1934 authorizing statute prohibits sales into the commercial
market. The Attorney General was persuaded to authorize commercial
sales of inmate-furnished services by FPI because neither FPI's
authorizing statute nor the generally applicable prohibition, also from
the 1930s, specifically mentions services. In the 1930s, services were
not a large part of the economy, so they were not specifically
mentioned by the legislation.
However, the clear intent of the statute was to prohibit such sales
in the commercial market, because they would create unfair competition
and cause liability concerns. The reinterpretation reversed 75 years of
precedent. The bill would clarify that FPI cannot sell either goods or
services in the commercial marketplace. It would grandfather all
contracts that are operational at the time of the agreement. That for
the first time specifically authorized FPI to enter into services
contracts with Federal agencies. However, it would not allow new
contracts for services in the commercial marketplace.
The amendment would permit FPI to continue its 1998 self-authorized
expansion into the commercial services marketplace without restriction.
It would continue to subject non-inmate workers being paid market
driven wages, and the firms that employ them to unfair competition,
using FPI workers being paid an average FPI wage of $.90 an hour. If
you are for the minimum wage, you would have to be against this
amendment, because there is competition.
Additionally, telemarketing contracts, which are the most common
forms of services provided, might allow inmates access to the personal
financial information of individuals, raising significant privacy
concerns. If you are for privacy, you ought to be against the
amendment.
For these reasons, I hope the amendment is defeated.
Mr. Chairman, I reserve the balance of my time.
Mr. SCOTT of Virginia. Mr. Chairman, I yield myself such time as I
may consume, and just acknowledge this amendment is just designed to
preserve a few of the jobs that we have got left. The amendments that
passed in 2000 and 2001 have cost. If they had not passed, we would
have 9,000 more jobs than we have now. We have already lost jobs. We
would have had a lot more jobs than we had.
We are just trying to preserve job opportunities, which have been
shown to reduce crime. Now, I know it has already been said that trying
to reduce crime is misguided around here, but that is the goal of the
bill, and everybody who has studied it knows that is what would happen.
If you have more jobs, you will have less crime. That is all we are
trying to do.
Mr. Chairman, I reserve the balance of my time.
Mr. SENSENBRENNER. Mr. Chairman, I yield the balance of my time to
the gentleman from Michigan (Mr. Conyers).
Mr. CONYERS. I thank the gentleman from Wisconsin.
Mr. Chairman, this amendment raises an interesting question. We
exclude services, for-profit business services, but we include
everything else. What is the difference between the services and the
products? We have to move in an organized fashion or not. To bifurcate
this into services being excluded, I think, doesn't make any sense at
all.
Now, we are back to the continued mantra that less jobs mean more
crime, so if you are for less crime, you
[[Page H6578]]
are for more jobs. But what we are doing, in this bill, goes back to an
earlier consideration in which we said, which the gentleman from
Virginia said, that we could guarantee these jobs and the $75 million,
that this would work out.
Of course, I don't know where we get guarantee tickets around here.
But I am going to work to the best of my ability, and I have been in
this corrections business for quite a while, to make sure that we get
the money. It is very, very important that we do that.
I am going to urge our Members not to buy into this half-of-a-loaf
notion that services should somehow be allowed to continue and Federal
Prison Industries not.
The Acting CHAIRMAN. The question is on the amendment offered by the
gentleman from Virginia (Mr. Scott).
The question was taken; and the Acting Chairman announced that the
noes appeared to have it.
Mr. SCOTT of Virginia. Mr. Chairman, I demand a recorded vote.
The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further
proceedings on the amendment offered by the gentleman from Virginia
will be postponed.
Sequential Votes Postponed in Committee of the Whole
The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, proceedings
will now resume on those amendments on which further proceedings were
postponed, in the following order:
Amendment No. 2 by Mr. Scott of Virginia.
Amendment No. 5 by Mr. Scott of Virginia.
The Chair will reduce to 5 minutes the time for the second electronic
vote in this series.
Amendment No. 2 Offered by Mr. Scott of Virginia
The Acting CHAIRMAN. The pending business is the demand for a
recorded vote on the amendment offered by the gentleman from Virginia
on which further proceedings were postponed and on which the noes
prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The Acting CHAIRMAN. A recorded vote has been demanded.
A recorded vote was ordered.
The vote was taken by electronic device, and there were--ayes 77,
noes 339, not voting 16, as follows:
[Roll No. 441]
AYES--77
Bachus
Barrow
Berry
Bishop (GA)
Boyd
Brown, Corrine
Campbell (CA)
Carson
Chabot
Clay
Clyburn
Cummings
Davis (IL)
Davis (KY)
Davis, Tom
Doggett
Farr
Fattah
Filner
Green (WI)
Grijalva
Gutierrez
Gutknecht
Hastings (FL)
Hefley
Hensarling
Hinchey
Holden
Holt
Honda
Hyde
Jackson (IL)
Jackson-Lee (TX)
Johnson, E. B.
Jones (OH)
Kanjorski
Kolbe
Kucinich
LaHood
Larson (CT)
Lewis (CA)
Lofgren, Zoe
Lungren, Daniel E.
McDermott
McHugh
McKinney
Meeks (NY)
Melancon
Miller (NC)
Mollohan
Moore (WI)
Moran (VA)
Murtha
Pastor
Payne
Petri
Price (NC)
Rahall
Rogers (KY)
Ross
Rush
Sabo
Saxton
Schakowsky
Scott (VA)
Serrano
Sherwood
Shimkus
Spratt
Taylor (MS)
Thompson (MS)
Udall (CO)
Visclosky
Wasserman Schultz
Watson
Wolf
Wynn
NOES--339
Abercrombie
Ackerman
Aderholt
Akin
Alexander
Allen
Andrews
Baca
Baird
Baker
Baldwin
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bass
Bean
Beauprez
Becerra
Berkley
Berman
Biggert
Bilbray
Bilirakis
Bishop (NY)
Bishop (UT)
Blackburn
Blumenauer
Blunt
Boehlert
Boehner
Bonilla
Bonner
Bono
Boozman
Boren
Boswell
Boucher
Bradley (NH)
Brady (PA)
Brady (TX)
Brown (OH)
Brown (SC)
Brown-Waite, Ginny
Burgess
Burton (IN)
Butterfield
Buyer
Calvert
Camp (MI)
Cannon
Cantor
Capito
Capps
Capuano
Cardin
Cardoza
Carnahan
Carter
Castle
Chandler
Chocola
Coble
Cole (OK)
Conaway
Conyers
Costa
Costello
Cramer
Crenshaw
Crowley
Cubin
Cuellar
Davis (AL)
Davis (CA)
Davis (TN)
Davis, Jo Ann
Deal (GA)
DeFazio
DeGette
Delahunt
DeLauro
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Doolittle
Doyle
Drake
Dreier
Duncan
Edwards
Ehlers
Emanuel
Emerson
Engel
English (PA)
Eshoo
Etheridge
Evans
Everett
Feeney
Ferguson
Fitzpatrick (PA)
Flake
Foley
Forbes
Ford
Fortenberry
Fossella
Foxx
Frank (MA)
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gibbons
Gilchrest
Gillmor
Gingrey
Gohmert
Gonzalez
Goode
Goodlatte
Gordon
Granger
Graves
Green, Al
Green, Gene
Hall
Harman
Harris
Hart
Hastings (WA)
Hayes
Hayworth
Herger
Herseth
Higgins
Hinojosa
Hobson
Hoekstra
Hooley
Hostettler
Hulshof
Hunter
Inglis (SC)
Inslee
Israel
Issa
Istook
Jefferson
Jenkins
Jindal
Johnson (CT)
Johnson (IL)
Jones (NC)
Kelly
Kennedy (MN)
Kennedy (RI)
Kildee
Kilpatrick (MI)
Kind
King (IA)
King (NY)
Kingston
Kirk
Kline
Knollenberg
Kuhl (NY)
Langevin
Lantos
Larsen (WA)
Latham
LaTourette
Leach
Lee
Levin
Lewis (GA)
Lewis (KY)
Linder
Lipinski
LoBiondo
Lowey
Lucas
Lynch
Mack
Maloney
Manzullo
Marchant
Markey
Marshall
Matheson
Matsui
McCarthy
McCaul (TX)
McCollum (MN)
McCotter
McCrery
McGovern
McHenry
McIntyre
McKeon
McMorris Rodgers
McNulty
Meehan
Meek (FL)
Mica
Michaud
Millender-McDonald
Miller (FL)
Miller (MI)
Miller, Gary
Miller, George
Moore (KS)
Moran (KS)
Musgrave
Myrick
Nadler
Napolitano
Neal (MA)
Neugebauer
Northup
Norwood
Nunes
Nussle
Oberstar
Obey
Olver
Ortiz
Osborne
Otter
Owens
Oxley
Pallone
Pascrell
Paul
Pearce
Pelosi
Pence
Peterson (MN)
Peterson (PA)
Pickering
Pitts
Platts
Poe
Pombo
Pomeroy
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Rangel
Regula
Rehberg
Reichert
Renzi
Reyes
Reynolds
Rogers (AL)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Rothman
Roybal-Allard
Royce
Ruppersberger
Ryan (OH)
Ryan (WI)
Ryun (KS)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Schiff
Schmidt
Schwartz (PA)
Schwarz (MI)
Scott (GA)
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherman
Shuster
Simmons
Simpson
Skelton
Slaughter
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Sodrel
Solis
Souder
Stearns
Stupak
Sweeney
Tancredo
Tanner
Tauscher
Taylor (NC)
Terry
Thomas
Thompson (CA)
Thornberry
Tiahrt
Tiberi
Tierney
Towns
Turner
Udall (NM)
Upton
Van Hollen
Velazquez
Walden (OR)
Walsh
Wamp
Waters
Watt
Waxman
Weiner
Weldon (FL)
Weldon (PA)
Weller
Westmoreland
Wexler
Whitfield
Wicker
Wilson (NM)
Wilson (SC)
Woolsey
Wu
Young (AK)
Young (FL)
NOT VOTING--16
Boustany
Case
Cleaver
Cooper
Culberson
Davis (FL)
Dingell
Hoyer
Johnson, Sam
Kaptur
Keller
Murphy
Ney
Stark
Strickland
Sullivan
{time} 1306
Ms. HARRIS, Messrs. SIMPSON, SOUDER, SMITH of New Jersey, Mrs.
MALONEY, Mrs. NORTHUP, Ms. LEE, Messrs. CROWLEY, MEEK of Florida, and
CANNON changed their vote from ``aye'' to ``no.''
Messrs. TAYLOR of Mississippi, KUCINICH, CAMPBELL of California,
RAHALL, MCHUGH, and HENSARLING changed their vote from ``no'' to
``aye.''
So the amendment was rejected.
The result of the vote was announced as above recorded.
Stated against:
Mr. MURPHY. Mr. Chairman, on rollcall No. 441, had I been present, I
would have voted ``no.''
Amendment No. 5 Offered by Mr. Scott of Virginia
The Acting CHAIRMAN. The pending business is the demand for a
recorded vote on the amendment offered by the gentleman from Virginia
(Mr. Scott) on which further proceedings were postponed and on which
the noes prevailed by voice vote.
The Clerk will redesignate the amendment.
The Clerk redesignated the amendment.
Recorded Vote
The Acting CHAIRMAN. A recorded vote has been demanded.
A recorded vote was ordered.
The Acting CHAIRMAN. This will be a 5-minute vote.
The vote was taken by electronic device, and there were--ayes 80,
noes 332, not voting 20, as follows:
[[Page H6579]]
[Roll No. 442]
AYES--80
Bachus
Barrow
Berry
Blumenauer
Boyd
Campbell (CA)
Cardoza
Carson
Chabot
Clay
Clyburn
Costa
Cummings
Davis (CA)
Davis (IL)
Davis (KY)
Davis, Tom
Doggett
Farr
Fattah
Feeney
Filner
Goodlatte
Green (WI)
Gutierrez
Gutknecht
Hastings (FL)
Hensarling
Hinchey
Holden
Holt
Honda
Hyde
Jackson (IL)
Jackson-Lee (TX)
Johnson, E. B.
Kanjorski
Kolbe
Kucinich
LaHood
Lofgren, Zoe
Lungren, Daniel E.
McCollum (MN)
McDermott
McHugh
McKinney
Meeks (NY)
Melancon
Miller (NC)
Miller, George
Mollohan
Moore (WI)
Moran (VA)
Murtha
Oberstar
Obey
Paul
Payne
Petri
Price (NC)
Rahall
Rogers (KY)
Rush
Sabo
Saxton
Schakowsky
Scott (VA)
Serrano
Sherwood
Shimkus
Spratt
Taylor (MS)
Thompson (MS)
Towns
Udall (CO)
Visclosky
Wasserman Schultz
Watson
Wolf
Wynn
NOES--332
Abercrombie
Ackerman
Aderholt
Akin
Alexander
Allen
Andrews
Baca
Baird
Baker
Baldwin
Barrett (SC)
Bartlett (MD)
Barton (TX)
Bass
Bean
Beauprez
Becerra
Berkley
Berman
Biggert
Bilbray
Bilirakis
Bishop (GA)
Bishop (NY)
Bishop (UT)
Blackburn
Blunt
Boehlert
Boehner
Bonilla
Bonner
Bono
Boozman
Boren
Boucher
Boustany
Bradley (NH)
Brady (PA)
Brady (TX)
Brown (OH)
Brown (SC)
Brown, Corrine
Brown-Waite, Ginny
Burgess
Burton (IN)
Butterfield
Buyer
Calvert
Camp (MI)
Cannon
Cantor
Capito
Capps
Capuano
Cardin
Carnahan
Carter
Castle
Chandler
Chocola
Coble
Cole (OK)
Conaway
Conyers
Costello
Cramer
Crenshaw
Crowley
Cubin
Cuellar
Davis (AL)
Davis (TN)
Davis, Jo Ann
Deal (GA)
DeFazio
DeGette
Delahunt
DeLauro
Dent
Diaz-Balart, L.
Diaz-Balart, M.
Dicks
Dingell
Doolittle
Doyle
Drake
Dreier
Duncan
Edwards
Ehlers
Emanuel
Emerson
Engel
English (PA)
Eshoo
Etheridge
Evans
Everett
Ferguson
Fitzpatrick (PA)
Flake
Foley
Forbes
Ford
Fortenberry
Fossella
Foxx
Frank (MA)
Franks (AZ)
Frelinghuysen
Gallegly
Garrett (NJ)
Gerlach
Gibbons
Gilchrest
Gillmor
Gingrey
Gohmert
Gonzalez
Goode
Gordon
Granger
Graves
Green, Al
Green, Gene
Grijalva
Hall
Harman
Hart
Hayes
Hayworth
Hefley
Herger
Herseth
Higgins
Hinojosa
Hobson
Hoekstra
Hooley
Hostettler
Hulshof
Hunter
Inglis (SC)
Inslee
Israel
Issa
Istook
Jefferson
Jenkins
Jindal
Johnson (CT)
Johnson (IL)
Jones (NC)
Jones (OH)
Kelly
Kennedy (MN)
Kennedy (RI)
Kildee
Kilpatrick (MI)
Kind
King (IA)
King (NY)
Kingston
Kirk
Kline
Knollenberg
Kuhl (NY)
Langevin
Lantos
Larsen (WA)
Larson (CT)
Latham
LaTourette
Leach
Lee
Levin
Lewis (CA)
Lewis (GA)
Lewis (KY)
Linder
Lipinski
LoBiondo
Lowey
Lucas
Lynch
Mack
Manzullo
Marchant
Markey
Marshall
Matheson
Matsui
McCarthy
McCaul (TX)
McCotter
McCrery
McGovern
McHenry
McIntyre
McKeon
McMorris Rodgers
McNulty
Meehan
Meek (FL)
Mica
Michaud
Millender-McDonald
Miller (FL)
Miller (MI)
Miller, Gary
Moore (KS)
Moran (KS)
Musgrave
Myrick
Nadler
Napolitano
Neal (MA)
Neugebauer
Northup
Norwood
Nunes
Nussle
Olver
Ortiz
Osborne
Otter
Owens
Oxley
Pallone
Pascrell
Pastor
Pearce
Pelosi
Pence
Peterson (MN)
Peterson (PA)
Pickering
Pitts
Platts
Poe
Pombo
Pomeroy
Porter
Price (GA)
Pryce (OH)
Putnam
Radanovich
Ramstad
Rangel
Regula
Rehberg
Reichert
Renzi
Reyes
Reynolds
Rogers (AL)
Rogers (MI)
Rohrabacher
Ros-Lehtinen
Rothman
Roybal-Allard
Royce
Ruppersberger
Ryan (OH)
Ryan (WI)
Ryun (KS)
Salazar
Sanchez, Linda T.
Sanchez, Loretta
Sanders
Schiff
Schmidt
Schwartz (PA)
Schwarz (MI)
Scott (GA)
Sensenbrenner
Sessions
Shadegg
Shaw
Shays
Sherman
Shuster
Simmons
Simpson
Skelton
Slaughter
Smith (NJ)
Smith (TX)
Smith (WA)
Snyder
Sodrel
Solis
Souder
Stearns
Stupak
Sullivan
Sweeney
Tancredo
Tanner
Tauscher
Taylor (NC)
Terry
Thomas
Thompson (CA)
Thornberry
Tiahrt
Tiberi
Tierney
Turner
Udall (NM)
Upton
Van Hollen
Velazquez
Walden (OR)
Walsh
Wamp
Watt
Waxman
Weiner
Weldon (FL)
Weldon (PA)
Weller
Westmoreland
Wexler
Whitfield
Wilson (NM)
Wilson (SC)
Woolsey
Wu
Young (AK)
Young (FL)
NOT VOTING--20
Boswell
Case
Cleaver
Cooper
Culberson
Davis (FL)
Harris
Hastings (WA)
Hoyer
Johnson, Sam
Kaptur
Keller
Maloney
Murphy
Ney
Ross
Stark
Strickland
Waters
Wicker
{time} 1314
Mr. OBEY and Mr. BLUMENAUER changed their vote from ``no'' to
``aye.''
So the amendment was rejected.
The result of the vote was announced as above recorded.
Stated for:
Mr. ROSS. Mr. Chairman, earlier this afternoon I missed rollcall vote
442. I would like to state for the Record that I would have voted for
rollcall vote 442, which was the Scott (D-VA) amendment that would
allow the Federal Prison Industries to continue contracts, of the type
being performed on the date of enactment of the bill, that provide
services to for-profit businesses.
Stated for:
Mr. MURPHY. Mr. Chairman, on rollcall No. 442, had I been present, I
would have voted ``no.''
____________________