SECTION 4281 OF TITLE 18 OF THE UNITED STATES CODE AUTHORIZES A GRATUITY NOT MORE THAN 100 DOLLARS WHILE SECTION 4284 AUTHORIZES AN ADVANCE (LOAN) NOT MORE THAN 150 DOLLARS UNLESS APPROVED BY THE ATTORNEY GENERAL. THIS REPORT COVERS THE AUTHORITY AND RESPONSIBILITY FOR PROVIDING RELEASE FUNDS, BUREAU OF PRISONS GUIDELINES ON THE USE OF RELEASE GRATUITY, THE SOURCE AND USE OF GRATUITY FUNDS, VARIANCES AMONG INSTITUTIONS IN GRATUITY PAYMENTS, USE OF RELEASE LOANS, THE SOURCE AND AMOUNT OF INMATE PERSONAL FUNDS, AND INFORMATION AVAILABLE TO BUREAU OF PRISONS HEADQUARTERS PERSONNEL ON RELEASE PAYMENT ACTIVITIES. IT WAS REVEALED THAT BUREAU OF PRISON'S POLICY GUIDELINES ALLOWED QUESTIONABLE USES OF RELEASE FUND AUTHORITY, NAMELY RELEASE LOANS FOR INMATES ON WORK FURLOUGH AND RELEASE GRATUITIES UPON AN INMATE'S PLACEMENT IN BUREAU OF PRISONS' CONTRACTED COMMUNITY TREATMENT CENTERS. IT IS RECOMMENDED THAT THE SUBCOMMITTEE INITIATE CLARIFYING LEGISLATION THAT WOULD EITHER AUTHORIZE OR PROHIBIT LOANS TO PRISONERS IN WORK RELEASE PROGRAMS, AND, IF DESIRED, TO AUTHORIZE INMATES COMMITTED TO COMMUNITY TREATMENT CENTERS TO RECEIVE RELEASE GRATUITIES.