Prison Work and Victim Restitution Act of 1996

Prison Work and Victim Restitution Act of 1996 - Amends the Crime Control Act of 1990 to require convicted inmates confined in Federal prisons, jails, and other detention facilities to engage in: (1) work for no fewer than 50 hours weekly; and (2) job-training and educational and life skills preparation study. Allows nonprofit entities to utilize the services of prisoners if opportunities otherwise provided by law for inmates to work are insufficient to meet such requirements.

Authorizes the Attorney General to: (1) make prisoners available to for-profit American entities either located in a foreign country or considering moving to a foreign country because of high domestic labor costs, subject to specified requirements; and (2) provide incentives to such entities, such as the use of space and facilities in Federal prisons at a free or reduced rate.

Directs the Attorney General to make rules governing the provision of services by inmates to such nonprofit and for-profit entities.

Establishes in the Treasury a Fund into which shall be placed all proceeds and wages from prison labor. Directs that such Fund be used: (1) to offset the costs of prisoner incarceration (one third); (2) for victim restitution (one third); (3) for payment into the individual prisoner's account to be paid upon his or her release (one tenth); and (4) for payments to States with prison work requirements that are substantially the same as Federal requirements for programs to benefit the dependents of prisoners.

Amends the Fair Labor Standards Act of 1938 and the Occupational Safety and Health Act of 1970 to exclude prisoners from the term "employee" for purposes of such Acts.

Directs the Bureau of Prisons to ensure that Federal prisoners: (1) are subject to regular and random testing for drugs and illegal substances; (2) do not engage in specified activities, such as smoking, viewing pornographic materials, or sexual activity; and (3) do not possess microwave ovens, hot plates, toaster overs, televisions, or VCRs.

Repeals the limitation on the number of non-Federal prison work pilot projects with respect to which penalties for transporting in interstate commerce or importing from any foreign country into the United States goods, wares, or merchandise manufactured, produced, or mined wholly or in part by convicts or prisoners are inapplicable.