Summary: H.R.4994 — 100th Congress (1987-1988)All Information (Except Text)

There is one summary for H.R.4994. Bill summaries are authored by CRS.

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Introduced in House (07/07/1988)

Federal Prison Industries Reform Act of 1988 - Amends the Federal criminal code to authorize the Federal Prison Industries, Incorporated (Corporation) to issue its obligations to the Secretary of the Treasury. Authorizes the Secretary to purchase such obligations. Limits the aggregate amount of outstanding obligations from exceeding 25 percent of the net worth of the Corporation.

Allows the Secretary to: (1) sell such obligations as public debt transactions; and (2) upon the request of the Corporation, invest excess monies from the Prison Industries Fund.

Permits Corporation funds to be used to acquire industrial buildings and equipment for corporate operations. Prohibits the use of corporate funds for the construction or acquisition of penal or correctional institutions or camps.

Requires the board of directors of the Corporation to include in its annual report to the Congress: (1) a statement of the amount of obligations issued during the fiscal year; and (2) an estimate of the amount of obligations that will be issued in the following fiscal year.

Requires the board of directors to employ the greatest number of inmates in U.S. penal institutions who are eligible to work.

Directs the Corporation to: (1) produce products on an economic basis, but avoid capturing a reasonable share of the market among Federal departments; (2) concentrate on providing to the the Federal Government only those products which permit employment of the greatest number of inmates; and (3) diversify products so that sales are broadly distributed among industries.

Requires any decision to produce a new product or expand production significantly to be made by the board of directors. Directs the Corporation, before such decision is made, to prepare a written analysis of the impact on industry and free labor of the plans for new or expanded production. Requires the Corporation to provide notice to potentially affected private vendors or trade associations of such plans. Allows vendors and trade associations to submit comments on the plans. Directs the Corporation to provide to the board of directors the analysis, comments, and recommendations for action.

Requires the Corporation to publish the final decision of the board of directors and, after each six-month period, a list of sales by the Corporation.