North Dakota Code § 12-48-03.1

The director of the department of corrections and rehabilitation may
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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.

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