[House Report 109-647]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-647

======================================================================



 
  PROVIDING FOR CONSIDERATION OF H.R. 2965, FEDERAL PRISON INDUSTRIES 
                 COMPETITION IN CONTRACTING ACT OF 2006

                                _______
                                

 September 12, 2006.--Referred to the House Calendar and ordered to be 
                                printed

                                _______
                                

   Mr. Gingrey, from the Committee on Rules, submitted the following

                              R E P O R T

                       [To accompany H. Res. 997]

    The Committee on Rules, having had under consideration 
House Resolution 997, by a nonrecord vote, report the same to 
the House with the recommendation that the resolution be 
adopted.

                SUMMARY OF PROVISIONS OF THE RESOLUTION

    The resolution provides for the consideration of H.R. 2965, 
the Federal Prison Industries Competition in Contracting Act of 
2006, under a structured rule. The rule provides one hour of 
general debate equally divided and controlled by the chairman 
and ranking minority member of the Committee on the Judiciary. 
The rule waives all points of order against consideration of 
the bill.
    The rule provides that the amendment in the nature of a 
substitute recommended by the Committee on the Judiciary now 
printed in the bill shall be considered as an original bill for 
the purpose of amendment and shall be considered as read.
    The rule makes in order only those amendments printed in 
this report. The rule provides that the amendments made in 
order may be offered only in the order printed in this report, 
may be offered only by a Member designated in this report, 
shall be considered as read, shall be debatable for the time 
specified in this report equally divided and controlled by the 
proponent and an opponent, shall not be subject to amendment, 
and shall not be subject to a demand for division of the 
question in the House or in the Committee of the Whole. The 
rule waives all points of order against the amendments printed 
in this report.
    Finally, the rule provides one motion to recommit with or 
without instructions.

                         EXPLANATION OF WAIVERS

    The waiver of all points of order against consideration of 
the bill is necessary because the report of the Committee on 
the Judiciary (H. Rept. 109-591) accompanying the bill did not 
contain a cost estimate by the Congressional Budget Office 
(CBO), as required by clause 3 of rule XIII. It is the 
understanding of the Committee on Rules that the Committee on 
the Judiciary will cause the CBO cost estimate to be printed in 
the Congressional Record dated Tuesday, September 12, 2006.

                  SUMMARY OF AMENDMENTS MADE IN ORDER

    1. Sensenbrenner (WI): Manager's Amendment. Modifies 13 
dates in various provisions of the bill to reflect the passage 
of time since the bill's introduction, which were not modified 
during the Committee's consideration. Also corrects one 
sectional cross reference and a reference to an Executive 
Branch agency. Adds a provision explicitly requiring Federal 
Prison Industries (FPI) to establish a cost accounting system 
which was implicit in, and necessary to implement, the 
amendment by Rep. Issa which was adopted during Judiciary 
Committee consideration of the bill. Also makes a grammatical 
correction to the Issa amendment. (10 minutes)
    2. Scott, Robert (VA): Allows the Attorney General to 
direct agencies within the Department of Justice to award 
individual contracts to Federal Prison Industries (FPI) on a 
non-competitive basis. (10 minutes)
    3. Lungren (CA)/Chabot (OH)/Scott, Robert (VA): Postpones 
the scheduled phase out of mandatory source for one year if the 
percentage of inmates employed by Federal Prison Industries 
(FPI) falls below 17%. Also requires the Attorney General to 
study ways to increase participation in FPI if participation in 
FPI falls below 17%. (10 minutes)
    4. Cuellar (TX): Requires inmates performing work for the 
Federal Prison Industries (FPI) to contribute a portion of 
their earnings to living expenses. (10 minutes)
    5. Scott, Robert (VA): Allows Federal Prison Industries 
(FPI) to continue service contracts of the nature and to the 
extent it was doing so on the date of enactment of the bill. 
(10 minutes)

                    TEXT OF AMENDMENTS MADE IN ORDER

   1. An Amendment To Be Offered by Representative Sensenbrenner of 
          Wisconsin, or His Designee, Debatable for 10 Minutes

    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).
                              ----------                              


 2. An Amendment To Be Offered by Representative Scott of Virginia, or 
                 His Designee, Debatable for 10 Minutes

    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''.
                              ----------                              


3. An Amendment To Be Offered by Representative Lungren of California, 
               or His Designee, Debatable for 10 Minutes

    Page 24, strike lines 11 through 18 and insert the 
following:
    (3) If, based on a calculation by either the Comptroller 
General or an independent firm retained by the Board of 
Directors, the Attorney General finds that the percentage of 
work eligible inmates employed by Federal Prison Industries, 
Inc., falls below 17 percent during a fiscal year--
            (A) such finding shall serve to postpone for one 
        year any further percentage limitation under subsection 
        (e)(1); and
            (B) the Attorney General shall conduct a study for 
        purposes of recommending legislation to Congress on 
        ways to increase participation in the Federal Prison 
        Industries program.
    (4) Any percentage limitation postponed under paragraph (3) 
shall take effect in the fiscal year immediately following the 
fiscal year for which it is postponed.
    Page 23, line 17, strike ``and''.
    Page 23, line 21, strike the period and insert ``; and''.
    Page 23, insert after line 21, the following:
            (4) the term ``work eligible inmates'' means--
                    (A) male inmates who are sentenced, not 
                subject to an order of deportation, medically 
                able to perform work, and confined to low, 
                medium, or high security Bureau of Prisons-
                operated institutions; and
                    (B) female inmates who are sentenced, not 
                subject to an order of deportation, and 
                medically able to perform work, irrespective of 
                the security level of the Bureau of Prisons-
                operated institution to which they are 
                confined.
                              ----------                              


 4. An Amendment To Be Offered by Representative Cuellar of Texas, or 
                 His Designee, Debatable for 10 Minutes

    Page 32, line 22, strike ``and'' after the semicolon.
    Page 32, after line 22, insert the following new clause:
                            (vi) reimbursement of costs related 
                        to the living expenses of the inmate, 
                        including food, utilities, services, 
                        and other such items, at the discretion 
                        of the Director of the Bureau of 
                        Prisons; and
    Page 32, line 23, redesignate clause (vi) as clause (vii).
                              ----------                              


 5. An Amendment To Be Offered by Representative Scott of Virginia, or 
                 His Designee, Debatable for 10 Minutes

    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''.

                                  
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