Ariz. Rev. Stat. § 41-1623 – Powers and duties of director

A. Subject to legislative appropriation, the director shall establish, regulate, operate and terminate, if appropriate, Arizona correctional industries pursuant to this article.
B. The department may enter into contracts and agreements with any person or persons for the acquisition and purchase of raw materials required for manufacture of Arizona correctional industries products.
C. The director or his designee shall, when necessary, conduct market research, establish marketing procedures and develop product specifications for sale of Arizona correctional industries products to public agencies, the public and private industry.
D. The director or his designee, consistent with sound business judgment, may construct, reconstruct or lease one or more buildings or portions of buildings on the grounds of any state correctional institution or location under department control, together with the real estate needed for reasonable access to such buildings, any lease to have a term of not to exceed twenty years, to a private corporation for the purpose of establishing and operating a factory for the manufacture and processing of products or any other commercial enterprise deemed by the director to provide employment opportunities for inmates in meaningful jobs for wages. Each lease negotiated and concluded pursuant to this section shall include and shall be valid only as long as the lessee adheres to the following provisions:
1. 1. All persons employed in the factory or other commercial enterprise operated in or on the leased property, except the lessee's supervisory employees and necessary training personnel, shall be inmates of the institution where the leased property is located who are approved for such employment by the director or his designee.
2. 2. The factory or other commercial enterprise operated in or on the leased property shall observe at all times such practices and procedures regarding security as the lease may specify or as the director may temporarily stipulate during periods of emergency.
3. 3. The factory or other commercial enterprise operated on the leased property shall be deemed a private enterprise and subject to all the laws and lawfully adopted rules of this state governing the operation of similar business enterprises elsewhere.
E. The director or his designees may dispose of property that is no longer needed or necessary for use by Arizona correctional industries. The disposition of property is exempt from chapter 23, article 8 of this title. Any monies derived from the disposition of property shall be deposited in the Arizona correctional industries revolving fund.
F. The director may employ persons necessary to carry out the provisions of this article.
G. The director shall adopt rules for the administration and management of personnel policies for prisoner workers including wages, working hours and conditions of employment.
H. The Arizona correctional industries program shall operate on the state fiscal year pursuant to section 35-102, and the director shall designate a certified public accountant to conduct an annual audit of its financial records.
I. The director shall prepare an annual report and distribute it to every member of the legislature which, in addition to making an annual financial report in accordance with section 35-103, reports on the management of the program, its goals and objectives and the record of management in achieving those objectives.
J. The director may accept and expend private grants of monies to effectuate the purposes of this article. Such monies shall be deposited and administered in accordance with section 41-1624.