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.