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18 USC CHAPTER 85 - PRISON-MADE GOODS 01/06/03

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TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 85 - PRISON-MADE GOODS

.

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CHAPTER 85 - PRISON-MADE GOODS

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Sec.

1761. Transportation or importation.

1762. Marking packages.

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18 USC Sec. 1761 01/06/03

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TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 85 - PRISON-MADE GOODS

-HEAD-

Sec. 1761. Transportation or importation

-STATUTE-

(a) Whoever knowingly transports in interstate commerce or from

any foreign country into the United States any goods, wares, or

merchandise manufactured, produced, or mined, wholly or in part by

convicts or prisoners, except convicts or prisoners on parole,

supervised release, or probation, or in any penal or reformatory

institution, shall be fined under this title or imprisoned not more

than two years, or both.

(b) This chapter shall not apply to agricultural commodities or

parts for the repair of farm machinery, nor to commodities

manufactured in a Federal, District of Columbia, or State

institution for use by the Federal Government, or by the District

of Columbia, or by any State or Political subdivision of a State or

not-for-profit organizations.

(c) In addition to the exceptions set forth in subsection (b) of

this section, this chapter shall not apply to goods, wares, or

merchandise manufactured, produced, or mined by convicts or

prisoners who -

(1) are participating in - one of not more than 50 non-Federal

prison work pilot projects designated by the Director of the

Bureau of Justice Assistance;

(2) have, in connection with such work, received wages at a

rate which is not less than that paid for work of a similar

nature in the locality in which the work was performed, except

that such wages may be subject to deductions which shall not, in

the aggregate, exceed 80 per centum of gross wages, and shall be

limited as follows:

(A) taxes (Federal, State, local);

(B) reasonable charges for room and board, as determined by

regulations issued by the chief State correctional officer, in

the case of a State prisoner;

(C) allocations for support of family pursuant to State

statute, court order, or agreement by the offender;

(D) contributions to any fund established by law to

compensate the victims of crime of not more than 20 per centum

but not less than 5 per centum of gross wages;

(3) have not solely by their status as offenders, been deprived

of the right to participate in benefits made available by the

Federal or State Government to other individuals on the basis of

their employment, such as workmen's compensation. However, such

convicts or prisoners shall not be qualified to receive any

payments for unemployment compensation while incarcerated,

notwithstanding any other provision of the law to the contrary;

and

(4) have participated in such employment voluntarily and have

agreed in advance to the specific deductions made from gross

wages pursuant to this section, and all other financial

arrangements as a result of participation in such employment.

(d) For the purposes of this section, the term ''State'' means a

State of the United States and any commonwealth, territory, or

possession of the United States.

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 785; Pub. L. 90-351, title I,

Sec. 819(a), formerly Sec. 827(a), as added Pub. L. 96-157, Sec. 2,

Dec. 27, 1979, 93 Stat. 1215, and renumbered Pub. L. 98-473, title

II, Sec. 609B(f), Oct. 12, 1984, 98 Stat. 2093; Pub. L. 98-473,

title II, Sec. 223(c), 609K, Oct. 12, 1984, 98 Stat. 2028, 2102;

Pub. L. 100-17, title I, Sec. 112(b)(3), Apr. 2, 1987, 101 Stat.

149; Pub. L. 101-647, title XXIX, Sec. 2906, Nov. 29, 1990, 104

Stat. 4914; Pub. L. 102-393, title V, Sec. 535(a), Oct. 6, 1992,

106 Stat. 1764; Pub. L. 103-322, title XXXIII, Sec. 330010(11),

330016(1)(H), Sept. 13, 1994, 108 Stat. 2144, 2147; Pub. L.

104-134, title I, Sec. 101(b) (title I, Sec. 136), Apr. 26, 1996,

110 Stat. 1321-77, 1321-93; renumbered title I, Pub. L. 104-140,

Sec. 1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 104-294, title VI,

Sec. 601(a)(7), 607(h), Oct. 11, 1996, 110 Stat. 3498, 3512.)

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HISTORICAL AND REVISION NOTES

Based on title 18, U.S.C., 1940 ed., Sec. 396a, 396b (July 24,

1935, ch. 412, Sec. 1, 49 Stat. 494; Oct. 14, 1940, ch. 872, 54

Stat. 1134; July 9, 1941, ch. 283, 55 Stat. 581).

Section consolidates sections 396a and 396b of title 18, U.S.C.,

1940 ed. Each section related to the same subject matter and

defined the same offense. Section 396a of title 18, U.S.C., 1940

ed., was enacted later and superseded section 396b of title 18,

U.S.C., 1940 ed.

Reference to persons aiding, causing or assisting was omitted.

Such persons are principals under section 2 of this title.

Reference to states, territories, specific places, etc., were

omitted. This was made possible by insertion of words ''interstate

commerce or from any foreign country into the United States,'' and

by definitive section 10 of this title.

Subsection (b) was rewritten to eliminate ambiguity and

uncertainty by expressly making the exceptive language apply to the

entire chapter and by permitting State institutions to manufacture

goods for the Federal Government and the District of Columbia and

vice versa. In such subsections, the words ''penal and

correctional'' and ''penal or correctional,'' preceding

''institutions'' and ''institution,'' respectively, were omitted as

surplusage.

Minor changes in phraseology were made.

AMENDMENTS

1996 - Subsec. (a). Pub. L. 104-294, Sec. 601(a)(7), substituted

''fined under this title'' for ''fined not more than $50,000''.

Subsec. (b). Pub. L. 104-134 inserted ''or not-for-profit

organizations'' after ''of a State''.

Subsec. (d). Pub. L. 104-294, Sec. 607(h), added subsec. (d).

1994 - Pub. L. 103-322, Sec. 330016(1)(H), which directed the

amendment of this section by substituting ''under this title'' for

''not more than $1,000'', could not be executed because the phrase

''not more than $1,000'' did not appear in text subsequent to

amendment of subsec. (a) by Pub. L. 102-393. See 1992 Amendment

note below.

Subsec. (c). Pub. L. 103-322, Sec. 330010(11), struck out ''and''

at end of par. (1), substituted semicolon for period at end of par.

(2)(B), and inserted ''and'' at end of par. (3).

1992 - Subsec. (a). Pub. L. 102-393 substituted ''$50,000'' for

''$1,000'' and ''two years'' for ''one year''.

1990 - Subsec. (c). Pub. L. 101-647, Sec. 2906(1), (2),

substituted ''In addition to the exceptions set forth in subsection

(b) of this section, this chapter shall not apply to goods, wares,

or merchandise manufactured, produced, or mined by convicts or

prisoners who'' for ''In addition to the exceptions set forth in

subsection (b) of this section, this chapter shall also not apply

to goods, wares, or merchandise manufactured, produced, or mined by

convicts or prisoners participating in a program of not more than

twenty pilot projects designated by the Director of the Bureau of

Justice Assistance and who'' in introductory provisions, added par.

(1), and redesignated former pars. (1) to (3) as (2) to (4),

respectively.

Subsec. (c)(2)(B). Pub. L. 101-647, Sec. 2906(3), amended subpar.

(B) generally. Prior to amendment, subpar. (B) read as follows:

''reasonable charges for room and board as determined by

regulations which shall be issued by the Chief State correctional

officer;''.

1987 - Subsec. (d). Pub. L. 100-17 struck out subsec. (d) which

read as follows: ''Notwithstanding any law to the contrary,

materials produced by convict labor may be used in the construction

of any highways or portion of highways located on Federal-aid

systems, as described in section 103 of title 23, United States

Code.''

1984 - Subsec. (a). Pub. L. 98-473, Sec. 223(c), inserted '',

supervised release,'' after ''parole''.

Subsec. (c). Pub. L. 98-473, Sec. 609K(a), substituted ''twenty''

for ''seven'' and ''Director of the Bureau of Justice Assistance''

for ''Administrator of the Law Enforcement Assistance

Administration''.

Subsec. (d). Pub. L. 98-473, Sec. 609K(b), added subsec. (d).

1979 - Subsec. (c). Pub. L. 90-351 added subsec. (c).

EFFECTIVE DATE OF 1984 AMENDMENT

Amendment by section 223(c) of Pub. L. 98-473 effective Nov. 1,

1987, and applicable only to offenses committed after the taking

effect of such amendment, see section 235(a)(1) of Pub. L. 98-473,

set out as an Effective Date note under section 3551 of this title.

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TRANSFER OF FUNCTIONS

Effective Aug. 1, 2000, all functions of Director of Bureau of

Justice Assistance, other than those enumerated in section 3742(3)

through (6) of Title 42, The Public Health and Welfare, transferred

to Assistant Attorney General for Office of Justice Programs, see

section 1000(a)(1) (title I, Sec. 108(b)) of Pub. L. 106-113, set

out as a note under section 3741 of Title 42.

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REPORTS BY SECRETARY OF LABOR

Pub. L. 101-647, title XXIX, Sec. 2908, Nov. 29, 1990, 104 Stat.

4915, which required the Secretary of Labor to submit an annual

report to Congress on compliance by State Prison Industry

Enhancement Certification programs with requirements set forth in

section 1761(c) of this title, terminated, effective May 15, 2000,

pursuant to section 3003 of Pub. L. 104-66, as amended, set out as

a note under section 1113 of Title 31, Money and Finance. See,

also, page 123 of House Document No. 103-7.

EXEMPTIONS TO FEDERAL RESTRICTIONS ON MARKETABILITY OF PRISON-MADE

GOODS

Pub. L. 90-351, title I, Sec. 819(c), formerly Sec. 827(c), as

added Pub. L. 96-157, Sec. 2, Dec. 27, 1979, 93 Stat. 1215,

renumbered and amended Pub. L. 98-473, title II, Sec. 609B(f), (o),

Oct. 12, 1984, 98 Stat. 2093, 2096, provided that: ''The provisions

of section 1761 of title 18, United States Code, and of the first

section of the Act of June 30, 1936 (49 Stat. 2036; 41 U.S.C. 35),

commonly known as the Walsh-Healey Act, creating exemptions to

Federal restrictions on marketability of prison-made goods, as

amended from time to time, shall not apply unless -

''(1) representatives of local union central bodies or similar

labor union organizations have been consulted prior to the

initiation of any project qualifying of any exemption created by

this section; and

''(2) such paid inmate employment will not result in the

displacement of employed workers, or be applied in skills,

crafts, or trades in which there is a surplus of available

gainful labor in the locality, or impair existing contracts for

services.''

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SECTION REFERRED TO IN OTHER SECTIONS

This section is referred to in section 1762 of this title; title

41 section 35.

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18 USC Sec. 1762 01/06/03

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TITLE 18 - CRIMES AND CRIMINAL PROCEDURE

PART I - CRIMES

CHAPTER 85 - PRISON-MADE GOODS

-HEAD-

Sec. 1762. Marking packages

-STATUTE-

(a) All packages containing any goods, wares, or merchandise

manufactured, produced, or mined wholly or in part by convicts or

prisoners, except convicts or prisoners on parole or probation, or

in any penal or reformatory institution, when shipped or

transported in interstate or foreign commerce shall be plainly and

clearly marked, so that the name and address of the shipper, the

name and address of the consignee, the nature of the contents, and

the name and location of the penal or reformatory institution where

produced wholly or in part may be readily ascertained on an

inspection of the outside of such package.

(b) Whoever violates this section shall be fined under this

title, and any goods, wares, or merchandise transported in

violation of this section or section 1761 of this title shall be

forfeited to the United States, and may be seized and condemned by

like proceedings as those provided by law for the seizure and

forfeiture of property imported into the United States contrary to

law.

-SOURCE-

(June 25, 1948, ch. 645, 62 Stat. 786; Pub. L. 102-393, title V,

Sec. 535(b), Oct. 6, 1992, 106 Stat. 1764; Pub. L. 103-322, title

XXXIII, Sec. 330016(1)(H), Sept. 13, 1994, 108 Stat. 2147; Pub. L.

104-294, title VI, Sec. 601(a)(7), Oct. 11, 1996, 110 Stat. 3498.)

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HISTORICAL AND REVISION NOTES

Based on title 18, U.S.C., 1940 ed., Sec. 396c, 396d, 396e (July

24, 1935, ch. 412, Sec. 2, 3, 4, 49 Stat. 494, 495).

Section consolidates sections 396c, 396d, and 396e of title 18,

U.S.C., 1940 ed.

Words ''upon conviction thereof'' were deleted as unnecessary,

since punishment cannot be imposed until after conviction.

Words ''transported in violation of this section or section

1761'' were added after the word ''merchandise'' to continue

existing law.

The provisions of said section 396e of title 18, U.S.C., 1940

ed., relating to venue, were omitted as covered by section 3237 of

this title.

Minor changes were made in translations and phraseology.

AMENDMENTS

1996 - Subsec. (b). Pub. L. 104-294 substituted ''fined under

this title'' for ''fined not more than $50,000''.

1994 - Pub. L. 103-322, which directed the amendment of this

section by substituting ''under this title'' for ''not more than

$1,000'', could not be executed because the phrase ''not more than

$1,000'' did not appear in text subsequent to amendment of subsec.

(b) by Pub. L. 102-393. See 1992 Amendment note below.

1992 - Subsec. (b). Pub. L. 102-393 substituted ''$50,000'' for

''$1,000''.

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