-CITE-

18 USC CHAPTER 307 - EMPLOYMENT 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

.

-HEAD-

CHAPTER 307 - EMPLOYMENT

-MISC1-

Sec.

4121. Federal Prison Industries; board of directors.

4122. Administration of Federal Prison Industries.

4123. New industries.

4124. Purchase of prison-made products by Federal departments.

4125. Public works; prison camps.

4126. Prison Industries Fund; use and settlement of accounts.

4127. Prison Industries report to Congress.

4128. Enforcement by Attorney General.

4129. Authority to borrow and invest.

AMENDMENTS

1990 - Pub. L. 101-647, title XXXV, Sec. 3599A, Nov. 29, 1990,

104 Stat. 4931, substituted ''Fund'' for ''fund'' in item 4126.

1988 - Pub. L. 100-690, title VII, Sec. 7093(b), Nov. 18, 1988,

102 Stat. 4412, added item 4129.

-SECREF-

CHAPTER REFERRED TO IN OTHER SECTIONS

This chapter is referred to in title 39 section 2201; title 41

sections 42, 48.

-CITE-

18 USC Sec. 4121 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

-HEAD-

Sec. 4121. Federal Prison Industries; board of directors

-STATUTE-

''Federal Prison Industries'', a government corporation of the

District of Columbia, shall be administered by a board of six

directors, appointed by the President to serve at the will of the

President without compensation.

The directors shall be representatives of (1) industry, (2)

labor, (3) agriculture, (4) retailers and consumers, (5) the

Secretary of Defense, and (6) the Attorney General, respectively.

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 851; May 24, 1949, ch. 139, Sec.

62, 63 Stat. 98.)

-MISC1-

HISTORICAL AND REVISION NOTES

1948 ACT

Based on title 18, U.S.C., 1940 ed., Sec. 744i, 744j (June 23,

1934, ch. 736, Sec. 1, 2, 48 Stat. 1211).

Section consolidates sections 744i and 744j of title 18, U.S.C.,

1940 ed. The former was rewritten omitting unnecessary recital as

to policy and expressing the original language of the two sections

more logically.

Changes were made in transportation and phraseology.

1949 ACT

This section (section 62) incorporates in section 4121 of title

18, U.S.C., with changes in phraseology, the provisions of section

3 of act of June 29, 1948 (ch. 719, 62 Stat. 1100), which was

enacted subsequent to the enactment of the revision of title 18 and

which provided for appointment of an additional member of the board

of directors of the Federal Prison Industries, as a representative

of the Secretary of Defense.

AMENDMENTS

1949 - Act May 24, 1949, made a representative of the Secretary

of Defense a member of the board of directors.

-TRANS-

TRANSFER OF FUNCTIONS

Federal Prison Industries, Inc. (together with its Board of

Directors), and its functions transferred to Department of Justice

to be administered under general direction and supervision of

Attorney General, by Reorg. Plan No. II of 1939, Sec. 3(a), eff.

July 1, 1939, 4 F.R. 2731, 53 Stat. 1431, set out in the Appendix

to Title 5, Government Organization and Employees. See, also,

Reorg. Plan No. 2 of 1950, Sec. 1, eff. May 1, 1950, 15 F.R. 3173,

64 Stat. 1261, and section 509 of Title 28, Judiciary and Judicial

Procedure.

-MISC5-

MANDATORY WORK REQUIREMENT FOR ALL PRISONERS

Pub. L. 101-647, title XXIX, Sec. 2905, Nov. 29, 1990, 104 Stat.

4914, provided that:

''(a) In General. - (1) It is the policy of the Federal

Government that convicted inmates confined in Federal prisons,

jails, and other detention facilities shall work. The type of work

in which they will be involved shall be dictated by appropriate

security considerations and by the health of the prisoner involved.

''(2) A Federal prisoner may be excused from the requirement to

work only as necessitated by -

''(A) security considerations;

''(B) disciplinary action;

''(C) medical certification of disability such as would make it

impracticable for prison officials to arrange useful work for the

prisoner to perform; or

''(D) a need for the prisoner to work less than a full work

schedule in order to participate in literacy training, drug

rehabilitation, or similar programs in addition to the work

program.''

CLOSURE OF MCNEIL ISLAND PENITENTIARY; REPORT ON STATUS OF FEDERAL

PRISON INDUSTRIES

Pub. L. 95-624, Sec. 10, Nov. 9, 1978, 92 Stat. 3463, provided

that:

''(a) On or before September 1, 1979, the Attorney General shall

submit to the Congress -

''(1) a plan to assure the closure of the United States

Penitentiary on McNeil Island, Steilacoom, Washington, on or

before January 1, 1982; and

''(2) a report on the status of the Federal Prison Industries.

''(b) The report made under this section shall include a

long-range plan for the improvement of meaningful employment

training, and the methods which could be undertaken to employ a

greater number of United States prisoners in the program. Such

report may include recommendations for legislation.''

-CITE-

18 USC Sec. 4122 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

-HEAD-

Sec. 4122. Administration of Federal Prison Industries

-STATUTE-

(a) 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 for consumption in such institutions or for sale to the

departments or agencies of the United States, but not for sale to

the public in competition with private enterprise.

(b)(1) Its board of directors shall provide employment for the

greatest number of those inmates in the United States penal and

correctional institutions who are eligible to work as is reasonably

possible, diversify, so far as practicable, prison industrial

operations and so operate the prison shops that no single private

industry shall be forced to bear an undue burden of competition

from the products of the prison workshops, and to reduce to a

minimum competition with private industry or free labor.

(2) Federal Prison Industries shall conduct its operations so as

to produce products on an economic basis, but shall avoid capturing

more than a reasonable share of the market among Federal

departments, agencies, and institutions for any specific product.

Federal Prison Industries shall concentrate on providing to the

Federal Government only those products which permit employment of

the greatest number of those inmates who are eligible to work as is

reasonably possible.

(3) Federal Prison Industries shall diversify its products so

that its sales are distributed among its industries as broadly as

possible.

(4) Any decision by Federal Prison Industries to produce a new

product or to significantly expand the production of an existing

product shall be made by the board of directors of the

corporation. Before the board of directors makes a final decision,

the corporation shall do the following:

(A) The corporation shall prepare a detailed written analysis

of the probable impact on industry and free labor of the plans

for new production or expanded production. In such written

analysis the corporation shall, at a minimum, identify and

consider -

(i) the number of vendors currently meeting the requirements

of the Federal Government for the product;

(ii) the proportion of the Federal Government market for the

product currently served by small businesses, small

disadvantaged businesses, or businesses operating in labor

surplus areas;

(iii) the size of the Federal Government and non-Federal

Government markets for the product;

(iv) the projected growth in the Federal Government demand

for the product; and

(v) the projected ability of the Federal Government market to

sustain both Federal Prison Industries and private vendors.

(B) The corporation shall announce in a publication designed to

most effectively provide notice to potentially affected private

vendors the plans to produce any new product or to significantly

expand production of an existing product. The announcement shall

also indicate that the analysis prepared under subparagraph (A)

is available through the corporation and shall invite comments

from private industry regarding the new production or expanded

production.

(C) The corporation shall directly advise those affected trade

associations that the corporation can reasonably identify the

plans for new production or expanded production, and the

corporation shall invite such trade associations to submit

comments on those plans.

(D) The corporation shall provide to the board of directors -

(i) the analysis prepared under subparagraph (A) on the

proposal to produce a new product or to significantly expand

the production of an existing product,

(ii) comments submitted to the corporation on the proposal,

and

(iii) the corporation's recommendations for action on the

proposal in light of such comments.

In addition, the board of directors, before making a final decision

under this paragraph on a proposal, shall, upon the request of an

established trade association or other interested representatives

of private industry, provide a reasonable opportunity to such trade

association or other representatives to present comments directly

to the board of directors on the proposal.

(5) Federal Prison Industries shall publish in the manner

specified in paragraph (4)(B) the final decision of the board with

respect to the production of a new product or the significant

expansion of the production of an existing product.

(6) Federal Prison Industries shall publish, after the end of

each 6-month period, a list of sales by the corporation for that

6-month period. Such list shall be made available to all

interested parties.

(c) Its board of directors may provide for the vocational

training of qualified inmates without regard to their industrial or

other assignments.

(d)(1) The provisions of this chapter shall apply to the

industrial employment and training of prisoners convicted by

general courts-martial and confined in any institution under the

jurisdiction of any department or agency comprising the Department

of Defense, to the extent and under terms and conditions agreed

upon by the Secretary of Defense, the Attorney General and the

Board of Directors of Federal Prison Industries.

(2) Any department or agency of the Department of Defense may,

without exchange of funds, transfer to Federal Prison Industries

any property or equipment suitable for use in performing the

functions and duties covered by agreement entered into under

paragraph (1) of this subsection.

(e)(1) The provisions of this chapter shall apply to the

industrial employment and training of prisoners confined in any

penal or correctional institution under the direction of the

Commissioner of the District of Columbia to the extent and under

terms and conditions agreed upon by the Commissioner, the Attorney

General, and the Board of Directors of Federal Prison Industries.

(2) The Commissioner of the District of Columbia may, without

exchange of funds, transfer to the Federal Prison Industries any

property or equipment suitable for use in performing the functions

and duties covered by an agreement entered into under subsection

(e)(1) of this section.

(3) Nothing in this chapter shall be construed to affect the

provisions of the Act approved October 3, 1964 (D.C. Code, sections

24-451 et seq.), entitled ''An Act to establish in the Treasury a

correctional industries fund for the government of the District of

Columbia, and for other purposes.''

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 851; May 24, 1949, ch. 139, Sec.

63, 63 Stat. 98; Oct. 31, 1951, ch. 655, Sec. 31, 65 Stat. 722;

Pub. L. 90-226, title VIII, Sec. 802, Dec. 27, 1967, 81 Stat. 741;

Pub. L. 100-690, title VII, Sec. 7096, Nov. 18, 1988, 102 Stat.

4413.)

-MISC1-

HISTORICAL AND REVISION NOTES

1948 ACT

Based on title 18, U.S.C., 1940 ed., Sec. 744a, 744c, 744k (May

27, 1930, ch. 340, Sec. 1, 3, 46 Stat. 391; June 23, 1934, ch. 736,

Sec. 3, 48 Stat. 1211).

Section consolidates sections 744a, part of 744c, and 744k of

title 18, U.S.C., 1940 ed., with such changes of phraseology as

were necessary to effect the consolidation.

Provisions in section 744k of title 18, U.S.C., 1940 ed., for

transfer of duties to the corporation was omitted as executed.

Other provisions of said section 744c of title 18, U.S.C., 1940

ed., form section 4123 of this title.

Changes were made in phraseology.

1949 ACT

Subsection (c) of section 4122 of title 18, U.S.C., as added by

this amendment (see section 63), incorporates provisions of act of

May 11, 1948 (ch. 276, 62 Stat. 230), which was not incorporated in

title 18 when the revision was enacted. The remainder of such act

is incorporated in section 4126 of such title by another section of

this bill.

Subsections (d) and (e) of such section 4122, added by this

amendment (see section 63), incorporate, with changes in

phraseology, the provisions of sections 1 and 2 of act of June 29,

1948 (ch. 719, 62 Stat. 1100), extending the functions and duties

of Federal Prisons Industries, Incorporated, to military

disciplinary barracks. Section 3 of such act is incorporated in

section 4121 of such title by another section of this bill, and

section 4 of such act is classified to section 1621a of title 50,

U.S.C., Appendix, War and National Defense.

-REFTEXT-

REFERENCES IN TEXT

The Act approved October 3, 1964 (D.C. Code, sections 24-451 et

seq.), entitled ''An Act to establish in the Treasury a

correctional institution industries fund for the government of the

District of Columbia, and for other purposes'', referred to in

subsec. (e)(3), is Pub. L. 88-622, Oct. 3, 1964, 78 Stat. 1000.

-MISC2-

AMENDMENTS

1988 - Subsec. (b). Pub. L. 100-690 designated existing

provisions as par. (1), substituted ''the greatest number of those

inmates in the United States penal and correctional institutions

who are eligible to work as is reasonably possible'' for ''all

physically fit inmates in the United States penal and correctional

institutions'', and added pars. (2) to (6).

1967 - Subsec. (d). Pub. L. 90-226, Sec. 802(1), (2), designated

existing provisions of subsec. (d) as par. (1) thereof, designated

existing provisions of subsec. (e) as par. (2) of subsec. (d), and

substituted reference to par. (1) of this subsection for reference

to subsec. (d) of this section.

Subsec. (e). Pub. L. 90-226, Sec. 802(3), added subsec. (e).

Former subsec. (e) redesignated (d)(2).

1951 - Subsecs. (d), (e). Act Oct. 31, 1951, substituted

''Department of Defense'' for ''National Military Establishment''.

1949 - Act May 24, 1949, designated existing first two pars. as

subsecs. (a) and (b), respectively, and added subsecs. (c) to (e).

-TRANS-

TRANSFER OF FUNCTIONS

Office of Commissioner of District of Columbia, as established by

Reorg. Plan No. 3 of 1967, abolished as of noon Jan. 2, 1975, by

Pub. L. 93-198, title VII, Sec. 711, Dec. 24, 1973, 87 Stat. 818,

and replaced by Office of Mayor of District of Columbia by section

421 of Pub. L. 93-198.

-MISC5-

UTILIZATION OF SURPLUS PROPERTY

Act June 29, 1948, ch. 719, Sec. 4, 62 Stat. 1100, provided that:

''For its own use in the industrial employment and training of

prisoners and not for transfer or disposition, transfers of surplus

property under the Surplus Property Act of 1944 (former sections

1611 to 1646 of Appendix to Title 50, War and National Defense, may

be made to Federal Prison Industries, Incorporated, without

reimbursement or transfer of funds.''

-CITE-

18 USC Sec. 4123 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

-HEAD-

Sec. 4123. New industries

-STATUTE-

Any industry established under this chapter shall be so operated

as not to curtail the production of any existing arsenal, navy

yard, or other Government workshop.

Such forms of employment shall be provided as will give the

inmates of all Federal penal and correctional institutions a

maximum opportunity to acquire a knowledge and skill in trades and

occupations which will provide them with a means of earning a

livelihood upon release.

The industries may be either within the precincts of any penal or

correctional institution or in any convenient locality where an

existing property may be obtained by lease, purchase, or otherwise.

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 851.)

-MISC1-

HISTORICAL AND REVISION NOTES

Based on title 18, U.S.C., 1940 ed., Sec. 744c (May 27, 1930, ch.

340, Sec. 3, 46 Stat. 391).

A part of said section 744c of title 18, U.S.C., 1940 ed., is

incorporated in section 4122 of this title.

References to the Attorney General were omitted because section

744k of title 18, U.S.C., 1940 ed., as originally enacted, provided

for the transfer to Federal Prison Industries of the powers and

duties then vested in the Attorney General.

References to ''this chapter'' were substituted for ''this

section'' since the general authority to establish and supervise

prison industries is contained in this chapter.

Minor changes of phraseology were made.

-CITE-

18 USC Sec. 4124 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

-HEAD-

Sec. 4124. Purchase of prison-made products by Federal departments

-STATUTE-

(a) The several Federal departments and agencies and all other

Government institutions of the United States shall purchase at not

to exceed current market prices, such products of the industries

authorized by this chapter as meet their requirements and may be

available.

(b) Disputes as to the price, quality, character, or suitability

of such products shall be arbitrated by a board consisting of the

Attorney General, the Administrator of General Services, and the

President, or their representatives. Their decision shall be final

and binding upon all parties.

(c) Each Federal department, agency, and institution subject to

the requirements of subsection (a) shall separately report

acquisitions of products and services 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)

in the same manner as it reports other acquisitions. Each report

published by the Federal Procurement Data System that contains the

information collected by the System shall include a statement to

accompany the information reported by the department, agency, or

institution under the preceding sentence as follows: ''Under

current law, sales by Federal Prison Industries are considered

intragovernmental transfers. The purpose of reporting sales by

Federal Prison Industries is to provide a complete overview of

acquisitions by the Federal Government during the reporting

period.''.

(d) Within 90 days after the date of the enactment of this

subsection, Federal Prison Industries shall publish a catalog of

all products and services which it offers for sale. This catalog

shall be updated periodically to the extent necessary to ensure

that the information in the catalog is complete and accurate.

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 851; Oct. 31, 1951, ch. 655, Sec.

32, 65 Stat. 723; Pub. L. 98-216, Sec. 3(b)(2), Feb. 14, 1984, 98

Stat. 6; Pub. L. 101-647, title XXIX, Sec. 2901, Nov. 29, 1990, 104

Stat. 4912; Pub. L. 102-564, title III, Sec. 303(b), Oct. 28, 1992,

106 Stat. 4262; Pub. L. 104-316, title I, Sec. 109(b), Oct. 19,

1996, 110 Stat. 3832.)

-MISC1-

HISTORICAL AND REVISION NOTES

Based on title 18, U.S.C., 1940 ed., Sec. 744g (May 27, 1930, ch.

340, Sec. 7, 46 Stat. 392).

The revised section substituted the Director of the Bureau of

Federal Supply of the Treasury Department for the General Supply

Committee, the functions of the latter having been transferred to

the Procurement Division of the Treasury Department by Executive

Order No. 6166, Sec. 1, June 10, 1933, and the name of that unit

having been changed to Bureau of Federal Supply by order of the

Secretary of the Treasury effective January 1, 1947, 11 Federal

Register No. 13,638. The Bureau of the Budget was substituted for

the Bureau of Efficiency which was abolished by Act of March 3,

1933, ch. 212, Sec. 17, 47 Stat. 1519, without transferring its

functions elsewhere. However, the Bureau of the Budget performs

similar duties and its Director logically should serve on the

arbitration board.

Reference to authority for appropriations was omitted and words

''by this chapter'' substituted therefor.

The word ''agencies'' was substituted for ''independent

establishments'' to avoid any possibility of ambiguity. See

definition of ''agency'' in section 6 of this title.

-REFTEXT-

REFERENCES IN TEXT

Section 6(d)(4) of the Office of Federal Procurement Policy Act,

referred to in subsec. (c), is classified to section 405(d)(4) of

Title 41, Public Contracts.

The date of the enactment of this subsection, referred to in

subsec. (d), is the date of enactment of Pub. L. 101-647, which was

approved Nov. 29, 1990.

-MISC2-

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-316 substituted ''Attorney

General'' for ''Comptroller General of the United States''.

1992 - Subsec. (c). Pub. L. 102-564 substituted ''acquisitions of

products and services 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) in the same manner as it

reports other acquisitions'' for ''to the General Services

Administration all of its acquisitions of products and services

from Federal Prison Industries, and that reported information shall

be entered in the Federal Procurement Data System referred to in

section 6(d)(4) of the Office of Federal Procurement Policy Act''.

1990 - Pub. L. 101-647 designated first and second pars. as

subsecs. (a) and (b), respectively, and added subsecs. (c) and (d).

1984 - Pub. L. 98-216 substituted ''President'' for ''Director of

the Bureau of the Budget'' in second par.

1951 - Act Oct. 31, 1951, substituted ''Administrator of General

Services'' for ''Director of the Bureau of Federal Supply,

Department of the Treasury'' in second par.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in title 10 section 2410n; title 15

section 657a; title 41 section 48.

-CITE-

18 USC Sec. 4125 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

-HEAD-

Sec. 4125. Public works; prison camps

-STATUTE-

(a) The Attorney General may make available to the heads of the

several departments the services of United States prisoners under

terms, conditions, and rates mutually agreed upon, for constructing

or repairing roads, clearing, maintaining and reforesting public

lands, building levees, and constructing or repairing any other

public ways or works financed wholly or in major part by funds

appropriated by Congress.

(b) The Attorney General may establish, equip, and maintain camps

upon sites selected by him elsewhere than upon Indian reservations,

and designate such camps as places for confinement of persons

convicted of an offense against the laws of the United States.

(c) The expenses of transferring and maintaining prisoners at

such camps and of operating such camps shall be paid from the

appropriation ''Support of United States prisoners'', which may, in

the discretion of the Attorney General, be reimbursed for such

expenses.

(d) As part of the expense of operating such camps the Attorney

General is authorized to provide for the payment to the inmates or

their dependents such pecuniary earnings as he may deem proper,

under such rules and regulations as he may prescribe.

(e) All other laws of the United States relating to the

imprisonment, transfer, control, discipline, escape, release of, or

in any way affecting prisoners, shall apply to prisoners

transferred to such camps.

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 852.)

-MISC1-

HISTORICAL AND REVISION NOTES

Based on title 18, U.S.C., 1940 ed., Sec. 744b, 851, 853, 854,

855 (Feb. 26, 1929, ch. 336, Sec. 1, 3, 4, 5, 45 Stat. 1318; May

27, 1930, ch. 340, Sec. 2, 46 Stat. 391).

Section consolidates section 744b of title 18, U.S.C., 1940 ed.,

with those portions of sections 851, 853-855 of title 18, U.S.C.,

1940 ed., which may not have been superseded by section 744b of

said title.

Section 851 of title 18, U.S.C., 1940 ed., was superseded except

for the proviso which formed the basis for the added words

''elsewhere than upon Indian reservations''.

Section 855 of title 18, U.S.C., 1940 ed., was superseded by

section 744b of title 18, U.S.C., 1940 ed., except as to the

specific mention in section 855 of said title of expense for

maintenance and operation of camps. Hence a reference to operation

was added in subsection (c) of this section.

Section 854 of title 18, U.S.C., 1940 ed., was added as a part of

subsection (c).

Section 853 of title 18, U.S.C., 1940 ed., was added as

subsection (d) of this section, although its retention may be

unnecessary.

The phrase ''the cost of which is borne exclusively by the United

States'' which followed the words ''constructing or repairing

roads'' was omitted as inconsistent with the later phrase

''constructing or repairing any other public ways or works financed

wholly or in major part by funds appropriated from the Treasury of

the United States.''

The provision for transfer of prisoners was omitted as

duplicitous of a similar provision in section 4082 of this title.

Other changes of phraseology were made.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4126 of this title; title

15 section 657a.

-CITE-

18 USC Sec. 4126 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

-HEAD-

Sec. 4126. Prison Industries Fund; use and settlement of accounts

-STATUTE-

(a) All moneys under the control of Federal Prison Industries, or

received from the sale of the products or by-products of such

Industries, or for the services of federal prisoners, shall be

deposited or covered into the Treasury of the United States to the

credit of the Prison Industries Fund and withdrawn therefrom only

pursuant to accountable warrants or certificates of settlement

issued by the General Accounting Office.

(b) All valid claims and obligations payable out of said fund

shall be assumed by the corporation.

(c) The corporation, in accordance with the laws generally

applicable to the expenditures of the several departments,

agencies, and establishments of the Government, is authorized to

employ the fund, and any earnings that may accrue to the

corporation -

(1) as operating capital in performing the duties imposed by

this chapter;

(2) in the lease, purchase, other acquisition, repair,

alteration, erection, and maintenance of industrial buildings and

equipment;

(3) in the vocational training of inmates without regard to

their industrial or other assignments;

(4) in paying, under rules and regulations promulgated by the

Attorney General, compensation to inmates employed in any

industry, or performing outstanding services in institutional

operations, and compensation to inmates or their dependents for

injuries suffered in any industry or in any work activity in

connection with the maintenance or operation of the institution

in which the inmates are confined.

In no event may compensation for such injuries be paid in an amount

greater than that provided in chapter 81 of title 5.

(d) Accounts of all receipts and disbursements of the corporation

shall be rendered to the General Accounting Office for settlement

and adjustment, as required by the Comptroller General.

(e) Such accounting shall include all fiscal transactions of the

corporation, whether involving appropriated moneys, capital, or

receipts from other sources.

(f) Funds available to the corporation may be used for the lease,

purchase, other acquisition, repair, alteration, erection, or

maintenance of facilities only to the extent such facilities are

necessary for the industrial operations of the corporation under

this chapter. Such funds may not be used for the construction or

acquisition of penal or correctional institutions, including camps

described in section 4125.

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 852; May 24, 1949, ch. 139, Sec.

64, 63 Stat. 99; Pub. L. 87-317, Sept. 26, 1961, 75 Stat. 681; Pub.

L. 100-690, title VII, Sec. 7094, Nov. 18, 1988, 102 Stat. 4412.)

-MISC1-

HISTORICAL AND REVISION NOTES

1948 ACT

Based on title 18, U.S.C., 1940 ed., Sec. 744d, 744e, 744f, 744l

(May 27, 1930, ch. 340, Sec. 4-6, 46 Stat. 391, 392; June 23, 1934,

ch. 736, Sec. 4, 48 Stat. 1211).

This section is a restatement of section 744l of title 18,

U.S.C., 1940 ed., with which sections 744d and 744f and the first

sentence of section 744e of title 18, U.S.C., 1940 ed., are

consolidated, in view of the fact that those provisions have been

superseded by section 744l of title 18, U.S.C., 1940 ed., in

connection with other provisions of the act of June 23, 1934, ch.

736, 48 Stat. 1211.

The first sentence of section 744l of title 18, U.S.C., 1940 ed.,

authorizing replacement of the prison industries working capital

fund by the prison industries fund was omitted, as executed. That

provision superseded section 744d of title 18, U.S.C., 1940 ed.,

which authorized creation of the prison industries working capital

fund and the first sentence of section 744e of title 18, U.S.C.,

1940 ed., directing that certain funds should be credited to the

consolidated prison industries working capital fund.

The phrase ''or received from the sale of the products or

by-products of such Industries, or for the services of Federal

prisoners,'' was inserted to make the first paragraph of this

section complete, and required the Federal Prison Industries to

account for all moneys under its control.

The words ''in the repair, alteration, erection and maintenance

of industrial buildings and equipment'' and ''under rules and

regulations promulgated by the Attorney General in paying

compensation to inmates employed in any industry, or performing

outstanding services in industrial operations'' were inserted in

part to conform to administrative construction, and in part to

provide greater flexibility in the operation of Prison Industries.

Much friction was caused by the inability of Prison Industries to

compensate inmates whose services in operating the utilities of the

institution were most necessary but which were uncompensated while

those prisoners who worked in the Industries received

compensation. This inequitable situation is corrected by the

revised section.

The words ''in performing the duties imposed by this chapter''

were substituted for the words ''for the purposes enumerated in

sections 744a-744h of this title,'' since the provisions with

regard to prison industries now appear in this chapter. The

general provisions as to use of the fund supersede the more

specific provisions of section 744f of said title (enacted

earlier).

A reference to the Federal Employees' Compensation Act as

appeared in the 1934 act was substituted for the reference to

specific sections of title 5. The word ''law'' was substituted for

the reference to sections in title 31 since translation of the

reference in the 1934 act was not practicable.

Remaining provisions of said section 744e of title 18, U.S.C.,

1940 ed., relating to authorization of appropriations, were omitted

as unnecessary.

Other changes in phraseology were made.

1949 ACT

This section (section 64) incorporates in section 4126 of title

18, U.S.C., provisions of act of May 11, 1948 (ch. 276, 62 Stat.

230), which was not incorporated in title 18 when the revision was

enacted. The remainder of such act is incorporated in section 4122

of such title by another section of this bill.

AMENDMENTS

1988 - Subsecs. (a), (b). Pub. L. 100-690, Sec. 7094(1),

designated first and second pars. as subsecs. (a) and (b),

respectively.

Subsec. (c). Pub. L. 100-690, Sec. 7094(1), (2), designated third

par. as subsec. (c) and amended subsec. (c) generally. Prior to

amendment, subsec. (c) read as follows: ''The corporation, in

accordance with the laws generally applicable to the expenditures

of the several departments and establishments of the government, is

authorized to employ the fund, and any earnings that may accrue to

the corporation, as operating capital in performing the duties

imposed by this chapter; in the repair, alteration, erection and

maintenance of industrial buildings and equipment; in the

vocational training of inmates without regard to their industrial

or other assignments; in paying, under rules and regulations

promulgated by the Attorney General, compensation to inmates

employed in any industry, or performing outstanding services in

institutional operations, and compensation to inmates or their

dependents for injuries suffered in any industry or in any work

activity in connection with the maintenance or operation of the

institution where confined. In no event shall compensation be paid

in a greater amount than that provided in the Federal Employees'

Compensation Act.''

Subsecs. (d), (e). Pub. L. 100-690, Sec. 7094(1), designated

fourth and fifth pars. as subsecs. (d) and (e), respectively.

Subsec. (f). Pub. L. 100-690, Sec. 7094(3), added subsec. (f).

1961 - Pub. L. 87-317 authorized compensation for injuries to

inmates incurred while working in connection with the maintenance

or operation of the institution where confined.

1949 - Act May 24, 1949, inserted ''in the vocational training of

inmates without regard to their industrial or other assignments;''

after second semicolon in third par.

-CITE-

18 USC Sec. 4127 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

-HEAD-

Sec. 4127. Prison Industries report to Congress

-STATUTE-

The board of directors of Federal Prison Industries shall submit

an annual report to the Congress on the conduct of the business of

the corporation during each fiscal year, and on the condition of

its funds during such fiscal year. Such report shall include a

statement of the amount of obligations issued under section

4129(a)(1) during such fiscal year, and an estimate of the amount

of obligations that will be so issued in the following fiscal year.

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 852; Pub. L. 100-690, title VII,

Sec. 7095, Nov. 18, 1988, 102 Stat. 4413.)

-MISC1-

HISTORICAL AND REVISION NOTES

Based on title 18, U.S.C., 1940 ed., Sec. 744m (June 23, 1934,

ch. 736, Sec. 5, 48 Stat. 1212).

Words ''of Federal Prison Industries'' were inserted after

''board of directors''.

Minor changes were made in phraseology.

AMENDMENTS

1988 - Pub. L. 100-690 amended section generally. Prior to

amendment, section read as follows: ''The board of directors of

Federal Prison Industries shall make annual reports to Congress on

the conduct of the business of the corporation and on the condition

of its funds.''

TERMINATION OF REPORTING REQUIREMENTS

For termination, effective May 15, 2000, of reporting provisions

in this section, see section 3003 of Pub. L. 104-66, as amended,

set out as a note under section 1113 of Title 31, Money and

Finance, and page 117 of House Document No. 103-7.

-CITE-

18 USC Sec. 4128 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

-HEAD-

Sec. 4128. Enforcement by Attorney General

-STATUTE-

In the event of any failure of Federal Prison Industries to act,

the Attorney General shall not be limited in carrying out the

duties conferred upon him by law.

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 853.)

-MISC1-

HISTORICAL AND REVISION NOTES

Based on title 18, U.S.C., 1940 ed., Sec. 744n (June 23, 1934,

ch. 736, Sec. 6, 48 Stat. 1212).

Phrase relating to section being ''supplemental'' to sections

744i-744h of title 18, U.S.C., 1940 ed., is omitted as unnecessary.

Retention of remainder of section is essential to insure

authority of Attorney General to require performance of duties of

Prison Industries. (See sections 4001 and 4003 of this title.) This

is also consistent with 1939 Reorganization Plan No. II, Sec. 3(a),

transferring the corporation to the Department of Justice ''under

the general direction and supervision of the Attorney General''.

(See section 133t of title 5, U.S.C., 1940 ed., Executive

Departments and Government Officers and Employees.)

Words ''Federal Prison Industries'' were substituted for ''the

corporation''.

-CITE-

18 USC Sec. 4129 01/06/03

-EXPCITE-

TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART III - PRISONS AND PRISONERS

CHAPTER 307 - EMPLOYMENT

-HEAD-

Sec. 4129. Authority to borrow and invest

-STATUTE-

(a)(1) As approved by the board of directors, Federal Prison

Industries, to such extent and in such amounts as are provided in

appropriations Acts, is authorized to issue its obligations to the

Secretary of the Treasury, and the Secretary of the Treasury, in

the Secretary's discretion, may purchase or agree to purchase any

such obligations, except that the aggregate amount of obligations

issued by Federal Prison Industries under this paragraph that are

outstanding at any time may not exceed 25 percent of the net worth

of the corporation. For purchases of such obligations by the

Secretary of the Treasury, the Secretary is authorized to use as a

public debt transaction the proceeds of the sale of any securities

issued under chapter 31 of title 31 after the date of the enactment

of this section, and the purposes for which securities may be

issued under that chapter are extended to include such purchases.

Each purchase of obligations by the Secretary of the Treasury under

this subsection shall be upon such terms and conditions as to yield

a return at a rate not less than a rate determined by the Secretary

of the Treasury, taking into consideration the current average

yield on outstanding marketable obligations of the United States of

comparable maturity. For purposes of the first sentence of this

paragraph, the net worth of Federal Prison Industries is the amount

by which its assets (including capital) exceed its liabilities.

(2) The Secretary of the Treasury may sell, upon such terms and

conditions and at such price or prices as the Secretary shall

determine, any of the obligations acquired by the Secretary under

this subsection. All purchases and sales by the Secretary of the

Treasury of such obligations under this subsection shall be treated

as public debt transactions of the United States.

(b) Federal Prison Industries may request the Secretary of the

Treasury to invest excess moneys from the Prison Industries Fund.

Such investments shall be in public debt securities with maturities

suitable to the needs of the corporation as determined by the board

of directors, and bearing interest at rates determined by the

Secretary of the Treasury, taking into consideration current market

yields on outstanding marketable obligations of the United States

of comparable maturities.

-SOURCE-

(Added Pub. L. 100-690, title VII, Sec. 7093(a), Nov. 18, 1988, 102

Stat. 4411.)

-REFTEXT-

REFERENCES IN TEXT

The date of the enactment of this section, referred to in subsec.

(a)(1), is the date of enactment of Pub. L. 100-690 which was

approved Nov. 18, 1988.

-SECREF-

SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 4127 of this title.

-CITE-