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Disposal of Industrial Products

43. (1) Subject to subsection (2), articles or products that are produced by the labour of inmates employed in penitentiary industry
 (a)
shall not be disposed of to purchasers in the ordinary course of trade under competitive conditions; and
 (b)
may be disposed of
 
 (i)
to any department, branch or agency of the Government of Canada, the government of a province or a municipal government, or
 
 (ii)
to any charitable, religious or non-profit-making organization.
    (2) Where, in the opinion of the Treasury Board,
 (a)
the operations of a penitentiary industry would not be practical unless the articles or products produced by inmates employed in the penitentiary industry are disposed of to purchasers, and
 (b)
the penitentiary industry referred to in paragraph (a) is of particular importance for the training or rehabilitation of inmates.
the Treasury Board may authorize the disposition of the articles or products so produced to purchasers in the ordinary course of trade under competitive conditions.
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