House Chairman Sets #1 Goal for 1999:Expand Federal Prison Sales to Non-Government Buyers

Rep. Bill McCollum (R-FL) said today that expanding Federal Prison Industries will be 'my number one priority in the new Congress (1999-2000). I plan to reintroduce my bill at the beginning of the session in January. We'll move this legislation and it will clear the House by the end of the year.' He predicted that the President will sign the bill 'because there is no cost to the taxpayer.'

McCollum is Chairman of the Crime Subcommittee of the House Judiciary Committee and is author of HR 4100 which for the first time allows convict- made goods to be sold on the open market. McCollum said he could not get action on his bill in September because the committee is tied up on the impeachment of President Clinton.

He said his bill will help more companies use the prison work force in a 'partnership in which the private sector is running prison industries, training prisoners and making a profit. The private marketplace will pay for the up-keep of the prisons.'

He warned that legislation introduced by Rep. Pete Hoekstra (R-MI) will 'cost the taxpayers money, will increase the cost of the prisons, is not sellable to the Congress and is not good public policy.' The Hoekstra bill (HR 2758) ends the monopoly Federal prison industries have in selling to US agencies. Federal departments must buy any goods that prisons have available or can manufacture. The Hoekstra bill would allow for the first time private firms to compete with convicts for the sale of goods and services to the Federal government.

McCollum and Hoekstra spoke at a small meeting sponsored by the US Chamber of Commerce. McCollum told the business people present he would not ask the Federal Prison Industries to stop expanding. Even without his bill, FPI sales will expand 20% to over $600 million in the next two years. FPI, already in dozens of markets, will expand into many new product areas, according to FPI director Steve B. Schwalb.

McCollum said 'privatization is a movement that is going to happen. I don't see how you can eliminate prison industries.'

Kenton Pattie (703 280 4622) NEEDA Executive Director, told McCollum his bill is not true reform because it does nothing to increase literacy, education, vocational skills, and substance abuse help needed by prisoners. Instead, the bill gives prisoners entry level, labor intensive jobs that are unlikely to help them when they get out. Meanwhile, small businesses will lose contracts and jobs as more and more private sector work gets moved to Federal prisons. Business people attending the meeting predicted that the McCollum bill will favor a few large businesses while taking away business opportunities from small firms.

Hoekstra's bill is supported by a Coalition of business groups representing firms 'which are fed up with unfair Federal competition,' Pattie said.

'Businesses who want to stop the McCollum bill should ask their US Representative and Senators to co sponsor the Hoekstra bill (Federal Prison Industries Competition in Contracting Act of 1997)' Pattie said. 'The Hoekstra bill doesn't eliminate prison industries, but it stops their monopoly and levels the playing field. FPI has taken over 16,000 jobs from the private sector and they want many more. Businesses are losing contracts to FPI every day. With their 'mandatory' status they have an unfair advantage. The Hoekstra bill says NO to their lock on the Federal market and sends a message: stop expanding at the expense of small business.'