Prison Industry Authority: nonprofit organizations: prison-made goods.

Existing law establishes the Prison Industry Authority and authorizes it to operate industrial, agricultural, and service enterprises which will provide products and services needed by the state, or any political subdivision of the state, or by the federal government, or any department, agency, or corporation of the federal government, or for any other public use. Existing law provides that all things authorized to be produced by the authority shall be purchased by the state, and may be purchased by local governments, to offer for sale to persons residing in state-operated institutions, at the prices fixed by the authority. Under existing law, it is unlawful for any person to sell, expose for sale, or offer for sale, any article manufactured by prison labor, except articles the sale of which is specifically sanctioned by law. This bill would provide that all products and services provided by the authority may be offered for sale to a tax-exempt nonprofit organization, provided that the products and services are provided to public school students at no cost and the nonprofit organization has entered into a memorandum of understanding with a local education agency, as defined.