article: SECTION 1. DIRECT SALE OF EXCESS PROPERTY. (a) Amendment of Title 18, United States Code.-- (1) In general.--Chapter 307 of title 18, United States Code, is amended by adding at the end the following new section: ``Sec. 4130. Direct sale of excess property ``Notwithstanding any other law, Federal Prison Industries may sell on the open market at the best available price such excess or obsolescent property as Federal Prison Industries deems appropriate, the proceeds of such sales to be deposited in the Treasury to the credit of the Prison Industries Fund.''. (2) Technical amendment.--The chapter analysis for chapter 307 of title 18, United States Code, is amended by adding at the end the following new item: ``4130. Direct sale of excess property.''. (b) Amendment of the Federal Property and Administrative Services Act.--Section 602 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 474) is amended-- (1) by striking ``or'' at the end of paragraph (20); (2) by striking the period at the end of paragraph (21) and inserting ``; or''; and (3) by adding after paragraph (21) the following new paragraph: ``(22) Federal Prison Industries with respect to the disposal of property described in section 4130 of title 18, United States Code.''. (c) Transportation and Importation.--Section 1761(b) of title 18, United States Code, is amended by inserting ``, nor to property described in section 4130'' before the period. SEC. 2. PRISON INDUSTRIES FUND; USE AND SETTLEMENT OF ACCOUNTS. Section 4126 of title 18, United States Code, is amended-- (1) by amending subsection (a) to read as follows: ``(a) Federal Prison Industries shall determine the character of and necessity for its obligations and expenditures, and the manner in which they shall be incurred, allowed, and paid, subject to laws specifically applicable to government corporations.''; (2) by striking subsections (d) and (e); and (3) by redesignating subsection (f) as subsection (d). SEC. 3. ADMINISTRATION OF FEDERAL PRISON INDUSTRIES. Section 4122(a) of title 18, United States Code, is amended to read as follows: ``(a)(1) As authorized by this chapter, Federal Prison Industries shall determine in what manner and to what extent industrial operations shall be carried on in Federal penal and correctional institutions for the production of commodities and services. ``(2) Commodities and services produced by Federal Prison Industries shall be sold at current market prices and shall conform to design, quality, and testing standards of the Federal Government and the relevant private industry.''. SEC. 4. PRODUCTION AND ACQUISITION OF PRISON-MADE PRODUCTS, PROCESSES AND SERVICES. (a) In General.--Section 4124 of title 18, United States Code, is amended-- (1) by striking ``(b) Disputes'' and inserting ``(f) Disputes.--Disputes''; (2) by striking ``(c) Each'' and inserting ``(g) Reporting of Acquisitions.--Each''; (3) by striking ``(d) Within'' and inserting ``(h) Catalog.--Within''; and (4) by striking the heading and subsection (a) and inserting the following: ``Sec. 4124. Production and acquisition of prison-made products, processes, and services ``(a) Relationship Between Federal Prison Industries and Government Institutions.--The Federal departments and agencies and all other Government institutions of the United States shall-- ``(1) purchase from Federal Prison Industries such products, processes, or services of the industries authorized by this chapter as meet their requirements and may be available, except that if Federal Prison Industries and the workshops for the blind or other severely handicapped each offer competitive services, priority shall be afforded to services offered by the workshops; and ``(2) provide to Federal Prison Industries the maximum practicable opportunity to participate as a subcontractor in labor-intensive, light manufacturing segments of contracts awarded, consistent with efficient contract performance. ``(b) Production of Products, Processes, and Services Otherwise Produced Offshore.--(1) Notwithstanding any other law and subject to the limitations stated in this subsection, Federal Prison Industries may produce or provide for sale on the open market processes, products, and services that would otherwise be produced by foreign labor at offshore locations. ``(2) Federal Prison Industries may enter into agreements with private industry in order to carry out this section. ``(3) The board of directors of Federal Prison Industries shall certify that processes, products, or services undertaken under this section-- ``(A) are labor-intensive and limited to levels that replace goods and services produced by offshore labor; and ``(B) do not significantly increase competition with any remaining domestic labor or industry. ``(c) Recycling of Materials for Sale on the Open Market.-- Notwithstanding any other law, Federal Prison Industries may produce and provide for sale on the open market recycled materials directly or in partnership with private sector firms. ``(d) Flood or Other Disaster Relief Activities.--Notwithstanding any other law, Federal Prison Industries may produce or provide goods and services for sale or donation on the open market to private, nonprofit organizations chartered by Congress to assist in flood or other disaster relief programs or activities. ``(e) Exemptions From Requirements of Other Laws.--(1)(A) Items sold on the open market pursuant to the authority granted in this chapter are exempt from the prohibition against shipment in commerce of prison-made goods contained in section 1761. ``(B) Inmates who work on the production of products or processes or provide services under this section are exempt from the minimum wage requirements of the Fair Labor Standards Act of 1938 (29 U.S.C. 201 et seq.). ``(2) Section 4122(b) (4) and (5) do not apply with respect to production undertaken pursuant to subsection (b) or (c).''. (b) Technical Amendment.--The chapter analysis for chapter 307 of title 18, United States Code, is amended by striking the item relating to section 4124 and inserting the following: ``4124. Production and acquisition of prison-made products, processes, and services.''. SEC. 5. PROCUREMENT. (a) In General.--Chapter 307 of title 18, United States Code, as amended by section 1(a), is amended by adding at the end the following new section: ``Sec. 4131. Procurement ``(a) In General.--Funds available to Federal Prison Industries may be used to enter into contracts directly related to the purchase of goods for industrial operations authorized under this chapter without regard to laws governing procurement by Federal agencies. ``(b) Rule of Construction.--Nothing in this section shall be construed to affect any requirement of law to purchase commodities and services produced or provided by qualified nonprofit agencies for the blind and other severely handicapped. ``(c) Procedures.--The board of directors of Federal Prison Industries shall establish procedures to ensure that any such procurements are conducted in a manner that promotes competition consistent with the needs of the Corporation.''. (b) Technical Amendment.--The chapter analysis for chapter 307 of title 18, United States Code, is amended by adding at the end the following new item: ``4131. Procurement.''.
summary: Amends the Federal criminal code to authorize Federal Prison Industries (FPI) to sell excess or obsolescent property on the open market at the best available price, with the proceeds of such sales to be deposited to the Prison Industries Fund. Requires FPI to determine the character of and necessity for its obligations and expenditures and the manner in which they shall be incurred, allowed, and paid, subject to laws applicable to Government corporations. (Current law requires FPI to deposit all of its monies into the Fund.) Requires commodities and services produced by FPI to be sold at current market prices and to conform to Federal and relevant private industry design, quality, and testing standards. Accords services of the workshops for the handicapped priority for Federal purchasing over those offered by FPI if both entities offer competitive services. Requires Federal agencies to provide to FPI the maximum opportunity to participate as a subcontractor in labor-intensive, light manufacturing segments of awarded contracts. Authorizes FPI to: (1) produce or provide for sale on the open market processes, products, and services that would otherwise be produced by foreign labor at offshore locations; and (2) enter into agreements with private industry for such purposes. Requires FPI to certify that such products, processes, or services: (1) are labor-intensive and limited to levels that replace goods and services produced by offshore labor; and (2) do not significantly increase competition with any remaining domestic labor or industry. Authorizes FPI to: (1) produce and provide recycled materials for sale on the open market; and (2) produce or provide goods and services for sale or donation on the open market to private, nonprofit organizations to assist in disaster relief. Exempts: (1) items sold on the open market pursuant to this Act from the prohibition against shipment in commerce of prison-made goods; and (2) inmates who work on the production of products or services from the minimum wage requirements of the Fair Labor Standards Act of 1938. Authorizes FPI funds to be used to enter into contracts related to the purchase of goods for industrial operations without regard to laws governing procurement by Federal agencies.