N.Y. COR. LAW § 177 : NY Code - Section 177: Labor of inmates in state and local correctional facilities

1.
  The  labor  of  inmates  in the state correctional facilities, after the
  necessary labor for and manufacture of  all  needed  supplies  for  said
  institutions,  shall  be  primarily  devoted  to  the  state, the public
  buildings and institutions thereof, and the manufacture of supplies  for
  the  state,  and  public  institutions  thereof,  and  secondly  to  the
  political subdivisions of the state, and public institutions thereof;
    2. The labor of inmates in local  correctional  facilities  after  the
  necessary labor for and manufacture of all needed supplies for the same,
  shall  be primarily devoted to the counties, respectively, in which said
  local correctional facilities are located, and  the  towns,  cities  and
  villages  therein,  and  to  the  manufacture of supplies for the public
  institutions of the counties, or the political subdivisions thereof, and
  secondly to the state and the public institutions thereof;
    3. However, for the purpose of distributing, marketing or sale of  the
  whole  or  any  part  of the product of any correctional facility in the
  state, other than by said state correctional facilities, to the state or
  to any political subdivisions thereof  or  to  any  public  institutions
  owned  or  managed  and  controlled  by  the  state, or by any political
  subdivisions thereof,  or  to  any  public  corporation,  authority,  or
  eleemosynary  association  funded  in  whole  or in part by any federal,
  state or local  funds,  the  sheriff  of  any  such  local  correctional
  facility  and the commissioner of correctional services may enter into a
  contract or contracts which may determine the  kinds  and  qualities  of
  articles   to  be  produced  by  such  institution  and  the  method  of
  distribution and  sale  thereof  by  the  commissioner  of  correctional
  services  or  under  his  direction,  either  in  separate  lots  or  in
  combination with the products of other such institutions  and  with  the
  products  produced  by  inmates  in  state correctional facilities. Such
  contracts may fix and determine any and all terms and conditions for the
  disposition of such products and the disposition  of  proceeds  of  sale
  thereof  and  any  and  all  other terms and conditions as may be agreed
  upon, not inconsistent with the constitution. However, no such  contract
  shall be for a period of more than one year and any prices fixed by such
  contract shall be the prices established pursuant to section one hundred
  eighty-six of this article for like articles or shall be approved by the
  department  of  correctional  services and the director of the budget on
  presentation to them of a copy of such contract  or  proposed  contract,
  and  provided  further  that  any  distribution  or  diversification  of
  industries provided for by such contract shall be in accordance with the
  rules and regulations established  by  the  department  of  correctional
  services  or  shall be approved by such department on presentation to it
  of a copy of such contract or proposed contract.
    4. No product manufactured in whole or  in  part  by  inmates  in  any
  correctional  facility  of  the  state  or  of  a  political subdivision
  thereof, shall be sold, or otherwise disposed  of  for  profit,  by  any
  officer, or administrative body, of such institution, or by any officer,
  or  administrative  body  of  the  state,  or of a political subdivision
  thereof, except to the  state  itself  or  to  a  political  subdivision
  thereof,  the  government  of  the  United States or to any state of the
  United States, or to an officer or administrative body of the state,  or
  of  a  political  subdivision thereof, or to or for a public institution
  owned or managed and  controlled  by  the  state  or  by  any  political
  subdivision   thereof,   or  to  a  public  corporation,  authority,  or
  eleemosynary association funded in whole or in part by federal, state or
  local funds. In no case shall said products be purchased for the purpose
  of resale or for their disposition for profit in  a  manner  not  herein
  provided for in the first instance.

    5.  The  commissioner  shall be authorized to enter into agreements to
  sell food and drink products made at the food production center  of  the
  department  to  food  kitchens, homeless shelters and other eleemosynary
  organizations funded in whole or in part  by  federal,  state  or  local
  funds  and to counties for governmental purposes. All proceeds from such
  sales shall be deposited into an account which shall only  be  used  for
  the  continued  operation  of the food production center. The charge for
  these products, included in the agreements between the commissioner  and
  these  eleemosynary organizations, shall not exceed the costs associated
  with the production and transportation of the  products  for  sale.  The
  commissioner  may, in his or her discretion, and by whatever means he or
  she deems appropriate, notify such organizations of the availability  of
  such products for sale.
    6.  A  violation  of  any of the foregoing provisions shall constitute
  sufficient  cause  for  the  removal  of  such  officer  or   board   of
  administration by the duly constituted authority having jurisdiction.