(a) Except as provided in subsections (c)-(f), no goods, wares or merchandise manufactured, in whole or in part, by inmates, except inmates on parole or probation, shall be sold or offered for sale in this state by any person, firm, association or corporation or by any federal authority, state or political subdivision of the federal authority or state. Nothing in this section shall be construed to forbid the sale, exchange or disposition of those goods to any institution supported wholly or in part by funds derived from public taxation and operated under the supervision of the United States, the state of Tennessee, or any other state of the union, or any political subdivision thereof. In addition, goods, wares and merchandise may be offered for sale to private nonprofit corporations and charitable organizations that are duly chartered as such under the laws of the state of Tennessee and to private contractors if the goods purchased will subsequently be used by a public agency or a nonprofit organization.

(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 committee of the house of representatives having oversight over corrections 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.