(1) A private vendor shall incarcerate all inmates assigned to the private correctional facility by the department and as specified in the contract. The department may not exceed the maximum occupancy designated for the facility in the contract.
(2) Inmates incarcerated in a private correctional facility are in the legal custody of the department. A private vendor may not award gain-time or release credits, determine inmate eligibility for furlough or work release, calculate inmate release dates, approve inmate transfers, place inmates in less restrictive custody than that ordered by the department or approve inmate work assignments. A private vendor may not benefit financially from the labor of inmates except to the extent authorized under chapter 946.