Is their a specific statute in Federal or state law that covers the privacy of mail and the exceptions of mail in a penal institution?

Answer:

274.96 Mail Addressed to Prisoners Authorized personnel of prisons, jails, or other correctional institutions, under rules and regulations promulgated by the institution, may open, examine, and censor mail sent from or addressed to, an inmate of the institution. An inmate may designate in writing an agent outside the institution to receive his or her mail, either through an authorized address of the agent, if the mail is so addressed, or at the delivery Post Office serving the institution, if the mail is addressed to the inmate at the institution.

See: U.S. Postal Service Administrative Support Manual Issue 13 (July 1999)

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