12-48-03.1. The director of the department of corrections and rehabilitation may establish and engage in prison industries

12-48-03.1. The director of the department of corrections and rehabilitation may

establish and engage in prison industries.

1. The director of the department of corrections and rehabilitation may establish and

engage in prison industries the director deems necessary and which are of greatest

benefit to and in the best interest of the state of North Dakota, the department, and

offenders committed to the legal and physical custody of the department. The director

may also discontinue industries when necessary. The director shall make all rules and

regulations and do all things necessary or incidental to the establishing and

maintaining of prison industries including the manufacture, sale, or distribution of

prison industries produce or products, and, so far as is compatible with the efficient

operation of the industry, shall use offenders committed to the department as laborers

in prison industries. The director shall also do all things necessary and incidental to the

discontinuance of industries no longer necessary or beneficial to the department. The

department shall keep a true and accurate account of all receipts from the established

industries and deposit the earnings in an account as provided by law.

2. All products made in prison industries may be purchased directly by governmental

agencies, including federal, state, and tribal agencies and political subdivisions, for

use in official business, and by nonprofit organizations, excluding trade associations,

fraternal organizations, co-ops, and health insurance companies. Prison industries

may sell commissary items and prison industries-made clothing to inmates. Prison

industries-made products may also be sold through wholesale or retail outlets that

possess a valid sales tax permit, and if the products are manufactured under the

prison industries enhancement certification program under Public Law No. 96-157 [93

Stat. 1215; 18 U.S.C. 176(c)], in interstate commerce and through export firms for sale

to international markets.