§ 4122. — Administration of Federal Prison Industries.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 18USC4122]
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
PART III--PRISONS AND PRISONERS
CHAPTER 307--EMPLOYMENT
Sec. 4122. Administration of Federal Prison Industries
(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.''
(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.)
Historical and Revision Notes
1948 Act
Based on title 18, U.S.C., 1940 ed., Secs. 744a, 744c, 744k (May 27,
1930, ch. 340, Secs. 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.
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.
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).
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.
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.''
