41-1629. Order of distribution of articles, services and products; sale of surplus products

A. The articles or products manufactured or produced or services provided by Arizona correctional industries in accordance with the provisions of this article shall be devoted to both:

1. Fulfilling the requirements of the offices, departments, institutions and agencies of the state that are supported in whole or in part by the state.

2. Providing the political subdivisions of the state and the public with such articles, services and products.

B. To prevent loss to the state, the director or the director's designee may dispose of surplus products developed from the operations of Arizona correctional industries in prisons, institutions or locations under the jurisdiction of the director by sale to private persons, firms, corporations or associations in any other state, to foreign governments, to corporations for distribution in foreign countries, and to private persons or their agents in markets outside the United States and in countries which permit the importation of prison-made goods.

C. All articles or products manufactured or produced or services provided by Arizona correctional industries, except agricultural products, shall be priced at not less than the actual cost of producing and marketing the product plus an allowance for overhead and administrative costs and a reasonable profit to provide fiscal resources for the research and development of inmate work programs. Arizona correctional industries shall defray its costs, on an accrual basis, out of receipts from the sale of articles and products.

D. All profits earned from the sale of articles, services or products pursuant to subsection B shall be deposited in the Arizona correctional industries revolving fund.