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H.R. 5387 (ih) [Introduced in House] ...


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108th CONGRESS
  2d Session
                                H. R. 5386

    To amend title 18, United States Code, to reform Federal Prison 
                  Industries, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           November 18, 2004

 Mr. Conyers introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
    To amend title 18, United States Code, to reform Federal Prison 
                  Industries, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fair Access and Individual 
Responsibilities Act of 2004''.

SEC. 2. INDUSTRIAL OPERATIONS IN FEDERAL PRISONS.

    (a) Board of Directors.--Section 4121 of title 18, United States 
Code, is amended by striking all after the section heading and 
inserting the following:
    ``(a) Establishment.--Federal Prison Industries is a government 
corporation of the District of Columbia.
    ``(b) Board.--
            ``(1) In general.--Federal Prison Industries is 
        administered by a board of directors, composed of 12 directors 
        appointed by the Attorney General, of which 4 shall be 
        appointed as follows:
                    ``(A) 1 director upon the recommendation of the 
                Speaker of the House of Representatives.
                    ``(B) 1 director upon the recommendation of the 
                minority leader of the House of Representatives.
                    ``(C) 1 director upon the recommendation of the 
                majority leader of the Senate.
                    ``(D) 1 director upon the recommendation of the 
                minority leader of the Senate.
            ``(2) Term.--A director shall be appointed to a term of 4 
        years and may be reappointed.
            ``(3) Compensation.--A director shall serve without 
        compensation.
    ``(c) Duty.--The duty of the board shall be to carry on and 
facilitate such industrial operations in Federal correctional 
institutions as the Attorney General determines.
    ``(d) Chief Executive Officer.--The Director of the Bureau of 
Prisons shall serve as chief executive officer of the corporation.
    ``(e) Independent Review Panel.--
            ``(1) In general.--The Attorney General shall appoint an 
        independent review panel to advise the board of directors 
        regarding the type and quantity of products to be produced by 
        Federal Prison Industries and conditions of hire and work 
        consistent with this chapter.
            ``(2) Members.--The panel shall be comprised of--
                    ``(A) 1 member representing the Department of 
                Commerce;
                    ``(B) 1 member representing the Department of 
                Labor;
                    ``(C) 1 member representing the Department of the 
                Treasury;
                    ``(D) 1 member representing the International Trade 
                Commission;
                    ``(E) 1 member representing the Small Business 
                Association;
                    ``(F) 1 member representing the Economic 
                Development Administration;
                    ``(G) 1 member representing the business community;
                    ``(H) 1 member representing organized labor;
                    ``(I) 1 member representing taxpayers;
                    ``(J) 1 member representing crime victims;
                    ``(K) 1 member representing the Department of 
                Health and Human Services Office of Child Support 
                Enforcement;
                    ``(L) 1 member representing minorities 
                overrepresented in prison populations;
                    ``(M) not less than 2 members representing, and 
                appointed from among, inmates working in Federal Prison 
                Industries; and
                    ``(N) such other members as the Attorney General 
                considers appropriate.
            ``(3) Compensation.--Members of the panel shall serve 
        without compensation.
            ``(4) Inapplicability of faca.--The Federal Advisory 
        Committee Act shall not apply with respect to the panel.''.
    (b) Administration.--Section 4122 of title 18, United States Code, 
is amended by striking all after the section heading and inserting the 
following:
    ``(a) In General.--The Attorney General shall determine in what 
manner and to what extent industrial operations shall be carried on in 
Federal correctional institutions.
    ``(b) Objectives.--The Attorney General shall conduct such 
operations so as to maximize--
            ``(1) the productivity, legal income, and financial 
        responsibility of every Federal corrections inmate;
            ``(2) the unsubsidized competitive opportunities of 
        industrial operations in Federal correctional institutions; and
            ``(3) the profit opportunities of private and non-profit 
        firms employing inmates in Federal correctional institutions, 
        within the rules of the normal competitive economy and subject 
        to the requirements of safe and secure correctional facilities.
    ``(c) Responsibilities.--Within requirements of safety and 
security, the Attorney General shall be responsible for protecting and 
facilitating the participation rights of each Federal corrections 
inmate as well as for facilitating the ability of each inmate to meet 
that inmate's financial responsibilities through successful competitive 
participation in the economy of the United States.
    ``(d) Availability of Opportunities.--The Attorney General shall 
endeavor to make available to inmates who have been committed to the 
custody of the Bureau of Prisons opportunities, free from 
discrimination, to work or be employed in a Federal Prison Industries 
shop.
    ``(e) Standards.--The Attorney General may set standards regarding 
education and conduct for those inmates who work in a Federal Prison 
Industries shop.
    ``(f) Voluntary Movement.--Except where safety and security of 
individual inmates requires exception, the voluntary movement of 
inmates among classes of institutional maintenance, work, or employment 
shall not be inhibited.''.

SEC. 3. INDUSTRY CLASSES.

    (a) Purchase of Prison-Made Products by Federal Departments.--
Section 4124 of title 18, United States Code, is amended by striking 
``products of the industries authorized by this chapter'' and inserting 
``products of Class A industries authorized by this chapter''.
    (b) Classes A, B, C, and D.--(1) Chapter 307 of title 18, United 
States Code, is amended by adding after section 4124 the following new 
sections:
``Sec. 4124A. Class A industries
    ``(a) Definition.--In this chapter, a Class A industry is an 
industry established under this chapter as of December 31, 2002.
    ``(b) Limitations on Number of Workers.--The number of inmates 
working in Class A industries may not exceed--
            ``(1) the number of inmates working in Class A industries 
        as of December 31, 2002, during the period beginning on the 
        date of the enactment of this section and ending on December 
        31, 2015;
            ``(2) 75 percent of the number referred to in paragraph 
        (1), during the period beginning on January 1, 2016, and ending 
        on December 31, 2020; and
            ``(3) 50 percent of the number referred to in paragraph 
        (1), after December 31, 2020.
    ``(c) Limitations on Percentage of Workers.--Of the total 
population of inmates, the percentage who work in Class A industries 
may not exceed--
            ``(1) the percentage who worked in Class A industries as of 
        December 31, 2002, during the period beginning on the date of 
        the enactment of this section and ending on December 31, 2015;
            ``(2) 75 percent of the percentage referred to in paragraph 
        (1), during the period beginning on January 1, 2016, and ending 
        on December 31, 2020; and
            ``(3) 50 percent of the percentage referred to in paragraph 
        (1), after December 31, 2020.
    ``(d) Limitation on Industries.--The types of industries in Class A 
industries may not expand beyond the industries in existence as of 
December 31, 2002.
``Sec. 4124B. Class B industries
    ``(a) Definition.--In this chapter, a Class B industry is an 
industry established on or after January 1, 2005, that meets the 
requirements of subsection (b).
    ``(b) Requirements.--An industry meets the requirements of this 
subsection if, and only if, it meets the following requirements:
            ``(1) It is carried out by a competitive entity unrelated 
        to a Class A industry that produces goods or services for sale 
        in government or open markets, including in interstate and 
        international commerce.
            ``(2) The entity is an independent taxpaying unit subject 
        to all opportunities and obligations affecting a similarly 
        located private firm.
            ``(3) All civilian and inmate workers of the entity are 
        identically covered under wage and benefit plans and all 
        Federal and applicable State and local laws covering civilian 
        employees, including but not limited to all provisions of the 
        Fair Labor Standards Act, the National Labor Relations Act, the 
        Americans With Disabilities Act, and health and safety 
        standards affecting private firms.
            ``(4) The entity is subject to all license, permit, and tax 
        obligations of a similarly located private firm.
            ``(5) Any land, buildings, capital equipment, utilities, 
        services, or staff assistance (except security) owned or 
        provided to the entity by Federal Prison Industries are 
        obtained in an arms-length, open, competitive bidding process 
        maximizing returns to taxpayers.
            ``(6) The entity does not receive from Federal Prison 
        Industries any implicit or explicit subsidy not equivalently 
        offered to other firms.
            ``(7) The entity, before engaging in a business, offers for 
        competitive bid all resources, including opportunities to 
        recruit inmate employees, to firms in the locale engaged in the 
        proposed line of business.
            ``(8) Mandatory preference does not apply to the entity.
``Sec. 4124C. Class C industries
    ``(a) Definition.--In this chapter, a Class C industry is an 
industry established on or after January 1, 2005, that meets the 
requirements of subsection (b).
    ``(b) Requirements.--An industry meets the requirements of this 
subsection if, and only if, it meets the following requirements:
            ``(1) It is carried out by a private entity located in a 
        Federal correctional institution that produces goods or 
        services for sale in government or open markets, including in 
        interstate and international commerce.
            ``(2) The entity employs convicts or prisoners who meet the 
        requirements of each paragraph of section 1761(c) of this 
        title.
            ``(3) The entity meets the same requirements that an entity 
        must meet for participation in the State Prison Industry 
        Enhancement Certification program of the Department of Justice.
            ``(4) The entity meets any other requirements that the 
        Federal Bureau of Prisons may prescribe under subsection (c).
    ``(c) BOP Requirements.--
            ``(1) In general.--The Federal Bureau of Prisons shall 
        prescribe the other requirements referred to in subsection 
        (b)(4). The first such requirements shall be published not 
        later than 180 days after the date of the enactment of this 
        section.
            ``(2) Limitations.--The requirements shall be designed to 
        maximize opportunities for private and nonprofit firms to 
        compete for efficient operations in Federal correctional 
        facilities while maintaining necessary security. The 
        requirements shall ensure that a Class C industry may be 
        established, invested in, or participated in, by inmates, so 
        long as--
                    ``(A) normal conditions of law are met;
                    ``(B) the business or investment poses no 
                significant threat to the safety or security of the 
                institution; and
                    ``(C) inmate entrepreneurs and managers exercise no 
                notable control or influence over employed inmates 
                outside the workplace.
``Sec. 4124D. Class D industries
    ``(a) Definition.--In this chapter, a Class D industry is a pilot 
industry that is created for purposes of testing reform of inmate 
employment and prison industries and that meets the requirements of 
subsection (b).
    ``(b) Requirements.--An industry meets the requirements of this 
subsection if, and only if, it meets the following requirements:
            ``(1) Inmate participation is voluntary.
            ``(2) The entity carrying out the industry meets all health 
        and safety regulations.
            ``(3) The Attorney General determines that the industry is 
        safe, fair, and devised to increase inmate economic well-being.
            ``(4) It is a legitimate test industry meant to be 
        preliminary to wider application or for purposes of determining 
        whether there should be a proposed change in law.
            ``(5) The entity carrying out the industry has adequate 
        public oversight and independent evaluation.
    ``(c) BOP Requirements.--The Federal Bureau of Prisons may 
establish up to 20 separate Class D industries, employing no more than 
a cumulative total of 2000 inmates over the life of the Class D 
industry program.
    ``(d) Relationship to Class A, B, and C Industries.--Class D 
industries do not have to comply with the requirements of class A, B, 
and C industries, as set forth in sections 4124A, 4124B, and 4124C.
    ``(e) Termination.--The Class D industries program shall terminate 
on December 31, 2020.
``Sec. 4124E. Other industries prohibited
    ``An industry may not be established under this chapter unless it 
is a Class A industry under section 4124A, a Class B industry under 
section 4124B, a Class C industry under section 4124C, or a Class D 
industry under section 4124D.''.
    (2) The table of sections at the beginning of such chapter is 
amended by adding at the end the following new items:

``4124A. Class A industries.
``4124B. Class B industries.
``4124C. Class C industries.
``4124D. Class D industries.
``4124E. Other industries prohibited.''.

SEC. 4. REPEAL OF MANDATORY SOURCE PROVISIONS.

    Section 4124 of title 18, United States Code, is amended by adding 
at the end the following new subsection:
    ``(e)(1) Except as provided in paragraph (2), this section shall 
not apply after December 31, 2010.
    ``(2) This section shall apply with respect to Federal Prison 
Industries at a specific correctional facility for a period not 

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