A. The director may establish a revolving fund to be used to pay the expenses required:

1. For the purchase of raw materials, components and supplies to be used for the production of food and other items to be sold by the department‘s Arizona correctional industries.

2. For the compensation of prisoners and Arizona correctional industries professional and outside services.

3. For the purchase or rental of equipment to be used by the department’s Arizona correctional industries.

4. For the construction or reconstruction of facilities.

5. For other operating expenses and in-state travel.

6. For the purchase of workers’ compensation insurance for inmates who are employed in a federally certified prison industry enhancement program pursuant to section 41-1674.

7. For prisoner instruction related to vocational education, job training, parenting and alcohol and other drug use treatment classes.

B. Monies received for or derived from the operation of Arizona correctional industries, including monies from the sale of obsolete or unneeded material, supplies, equipment or property, shall be deposited, pursuant to sections 35-146 and 35-147, in a specially designated revolving fund and expended without need of previous encumbrance upon warrants drawn upon order of the director or the director’s designee. The fund is a continuing fund and is exempt from the provisions of section 35-190. The director shall transfer one million dollars from the revolving fund annually to the department of corrections building renewal fund established by section 41-797.

C. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, and monies earned from investment shall be credited to the fund.

D. For the purposes of this section:

1. "Components" means the parts, subassemblies and packaging materials that will become part of a final product or service.

2. "Raw materials" means the materials that are converted or combined during the manufacturing process.