The legislation would authorize the Attorney General to establish a new FPI [Federal Prison Industries] program in federal prisons that, subject to appropriation of the necessary amounts, would produce goods to be donated to nonprofit organizations instead of being offered for purchase to the federal government. In addition, FPI would be authorized to contract with nonprofit organizations and certain public entities for the use of inmate labor to provide charitable services. The bill would authorize the appropriation of $12 million for fiscal year 2008 and $48 million over the 2008-2011 period for these programs.Section 10 of the bill permits programs to be created to furnish prison-made goods to non-profit or religious organizations that "provide goods or services to low-income individuals who would likely otherwise have difficulty purchasing such products or services in the commercial market." Eligible organizations can suggest programs to FPI.
Section 10 more generally permits any religious (or other non-profit) organization that qualifies under Sections 501(c)(3) or 501(d) of the Internal Revenue Code to contract with the Inmate Work Training Administrator to employ inmates at below minimum wage rates. While there are various restrictions insuring that inmates will only provide non-profit services, and that inmates will not be discriminated against on the basis of religion (or on the basis of race, sex, national origin, disability or political belief), nothing in the bill appears to preclude using inmates to perform services that have religious content.
The bill has been approved by the House Judiciary Committee and will move to the full House for a vote.