N.Y. Correct. Law § 170

§ 170. Contracts prohibited. 1. The commissioner shall not, nor shall\nany other authority whatsoever, make any contract by which the labor or\ntime of any inmate in any state or local correctional facility in this\nstate, or the product or profit of his work, shall be contracted, let,\nfarmed out, given or sold to any person, firm, association or\ncorporation; except that the inmates in said correctional institutions\nmay work for, and the products of their labor may be disposed of to, the\nstate or any political subdivision thereof, any public institution owned\nor managed and controlled by the state, or any political subdivision\nthereof, provided that no inmate shall be employed or assigned to engage\nin any activity that involves obtaining access to, collecting or\nprocessing social security account numbers of other individuals.\n 2. Notwithstanding any other provision of law, it shall be lawful for\nan inmate of the department to work in an institution of the department\nin the manufacture and production of goods, including but not limited\nto, license plates, identification plates and insignia for vehicles, and\nfor the department to sell or otherwise dispose of for profit such goods\nto the government of the United States or to any state of the United\nStates, or political subdivision thereof, or any public corporation or\neleemosynary association or corporation funded in whole or in part by\nany federal, state or local funds.\n 3. Notwithstanding any other provision of law, an inmate may be\npermitted to leave the institution under guard to voluntarily perform\nwork for a nonprofit organization. As used in this section, the term\n"nonprofit organization" means an organization operated exclusively for\nreligious, charitable, or educational purposes, no part of the net\nearnings of which inures to the benefit of any private shareholder or\nindividual.\n