§ 4126. — Prison Industries Fund; use and settlement of accounts.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 18USC4126]
TITLE 18--CRIMES AND CRIMINAL PROCEDURE
PART III--PRISONS AND PRISONERS
CHAPTER 307--EMPLOYMENT
Sec. 4126. Prison Industries Fund; use and settlement of
accounts
(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Prison Industries Fund and withdrawn therefrom only pursuant to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.
(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.)
Historical and Revision Notes
1948 Act
Based on title 18, U.S.C., 1940 ed., Secs. 744d, 744e, 744f, 744l
(May 27, 1930, ch. 340, Secs. 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.
