2023 Tennessee Code › Title 41 - CORRECTIONAL INSTITUTIONS AND INMATES (§§ 41-1-101 — 41-51-302) › Chapter 22 - WORK PROGRAMS (§§ 41-22-101 — 41-22-415) › Part 1 - GENERAL PROVISIONS (§§ 41-22-101 — 41-22-130) › Section 41-22-116 - Sale of prison-made goods in open market prohibited - Exceptions

(a)
(1)
Except as provided in subsections (c)-(f), a person, firm, association, corporation, federal or state authority, or political subdivision thereof, shall not sell or offer for sale goods, wares, or merchandise manufactured, in whole or in part, by inmates, except inmates on parole or probation. This section does not prohibit the sale, exchange, or disposition of those goods to an institution supported wholly or in part by funds derived from public taxation and operated under the supervision of the United States, this state, or any other state, or any political subdivision thereof.
(2)
Notwithstanding subdivision (a)(1), goods, wares, and merchandise manufactured by inmates may be offered for sale to government entities or to private nonprofit corporations and charitable organizations that are duly chartered as such under the laws of this state on such terms and conditions as the TRICOR board deems to be in the best interest of this state and if the TRICOR board determines the sales do not unfairly compete with private sector businesses in this state. The inmates making the goods, wares, and merchandise for resale to government entities or to private nonprofit corporations and charitable organizations must be paid an appropriate wage so that the products do not unfairly compete with private sector businesses in this state.
(b)
Notwithstanding subsection (a), this section shall not be construed so as to limit the display and casual sale to the public of arts and crafts made by adult and juvenile inmates at any approved departmental outlets, art and craft exhibitions, state parks or any appropriate display or exhibition program.
(c)
The state or a prison contractor operating pursuant to the Private Prison Contracting Act of 1986, compiled in chapter 24 of this title, is authorized to develop industry programs in correctional facilities, pursuant to which inmates shall manufacture goods to be sold on the open market. No goods may be manufactured for sale on the open market pursuant to this section unless the goods are determined by the department of economic and community development to be goods not otherwise manufactured in Tennessee. For any programs for manufacture of goods for sale on the open market, the TRICOR board shall establish a wage rate for inmates and shall establish a rate of payment by inmates to reimburse the state for providing room and board.
(d)
The TRICOR board may contract with food processors for the purposes of processing and packaging agricultural products produced in whole or in part by inmates, except inmates on parole or probation, or exchanging the agricultural products for food products of comparable value.
(e)
The TRICOR board is authorized to develop joint ventures with private sector businesses upon such terms and conditions as the TRICOR board may deem to be in the best interest of the state. These ventures shall operate pursuant to the Private Sector Prison Industry Enhancement Certification Program (PS/PIEC) (P.L. 96-157, as amended) and in accordance with §§
41-6-204
,
41-6-205(a) and (c)
,
41-6-206
and
41-6-207
. Section
41-6-205(b)
also applies to ventures in which inmates are employed by private industries. Eligibility for participation will not be extended to those businesses that have ceased Tennessee operations within twenty-four (24) months of the initiation of the venture or during such venture. If the private sector business is doing business in Tennessee, the venture shall not cause the loss of jobs for Tennessee employees. Goods produced in these ventures may be sold on the open market.
(f)
The TRICOR board is authorized to develop policies for the sale of TRICOR products to state, city and county employees. Any products sold directly to these employees shall not be made available for commercial resale. The board shall designate two percent (2%) of total annual sales from state, city and county employees to inmate educational programs. Policies developed by the TRICOR board as authorized by this section shall be reviewed by the state and local government committee of the senate and the state government committee of the house of representatives prior to implementation of the sale of products to state, city and county employees. Policies developed by the TRICOR board shall take into account possible competition with retail merchants and the impact on state and local sales tax collections.
(g)
The TRICOR board is authorized to develop policies for the sale of goods, wares or merchandise to inmates who are within the custody of the department of correction.
(h)
Each violation of this section by a person, firm or corporation is a Class C misdemeanor.
Amended by 2021 Tenn. Acts, ch. 338, s 1, eff. 5/4/2021.
Amended by 2021 Tenn. Acts, ch. 64, s 57, eff. 3/29/2021.
Amended by 2019 Tenn. Acts, ch. 345, s 67, eff. 5/10/2019.
Amended by 2013 Tenn. Acts, ch. 236, s 64, eff. 4/19/2013.
Acts 1937, ch. 67, §§ 1, 2; C. Supp. 1950, § 12206.1 (Williams, §§ 12209.3, 12209.4); Acts 1972, ch. 576, § 22; 1978, ch. 542, § 1; T.C.A. (orig. ed.), § 41-418; Acts 1986, ch. 932, § 16; 1987, ch. 238, § 1, 2; 1989, ch. 591, § 113; 1991, ch. 78, §§ 1-3; 1992, ch. 1022, § 5; 1994, ch. 737, §§ 11, 12; 1996, ch. 564, § 2; 2003 , ch. 378, §§ 1, 2; 2010 , ch. 896, § 1; 2011 , ch. 410, § 2(h).