§ 186 — Prices of labor performed and articles manufactured in correctional facilities

§ 186. Prices of labor performed and articles manufactured in\ncorrectional facilities. 1. The commissioner shall establish the prices\nat which all services performed, and all articles manufactured in the\ncorrectional facilities in this state, and furnished to the state, or\nthe political subdivisions thereof, or to the public institutions\nthereof, or to public benefit corporations, authorities or commissions.\nHowever, prices for goods or services furnished by the local\ncorrectional facilities to or for the county in which they are located,\nor the political subdivisions thereof, shall be fixed by the board of\nsupervisors of such counties, except the counties located within New\nYork city, in which the prices shall be fixed by the commissioner. It\nshall also be the duty of such boards, respectively, to classify the\nbuildings, offices and institutions owned or managed and controlled by\nthe state, and the political subdivisions thereof, and to fix and\ndetermine the styles, patterns, designs and qualities of the articles to\nbe manufactured for such buildings, offices and public institutions,\nexcept where the same have been fixed or their specifications approved\nby the office of general services in the executive department. So far as\npracticable, all supplies used in such buildings, offices and public\ninstitutions shall be uniform for each class, and of the styles,\npatterns, designs and qualities that can be manufactured in the\ncorrectional facilities in this state.\n 2. The prices established by the commissioner shall be based upon\ncosts as determined pursuant to this subdivision, but shall not exceed a\nreasonable fair market price determined at or within ninety days before\nthe time of sale. Fair market price as used herein means the price at\nwhich a vendor of the same or similar product or service who is\nregularly engaged in the business of selling such product or service\noffers to sell such a product or service under similar terms in the same\nmarket. However, the price established by the commissioner for license\nplates sold to the New York state department of motor vehicles shall in\nno event exceed an amount approved by the director of the budget.\n First instance appropriations to the department of corrections and\ncommunity supervision for correctional industries shall be reimbursed\npursuant to an agreement with the director of the budget. In the absence\nof a first instance appropriation, costs shall be determined in\naccordance with an agreement between the commissioner of corrections and\ncommunity supervision and the director of the budget. Any such agreement\nshall include, among other provisions deemed necessary by the budget\ndirector for the purposes of enabling programmatic overview and fiscal\ncontrols, one or more methodologies for the determination of costs\nattributable to correctional industries or to any product manufactured\nin the institutions of the department or distributed, marketed or sold\nby the commissioner pursuant to this section, section one hundred\nseventy-seven of this article or section one hundred seventy-five of the\nstate finance law.\n 3. A purchaser of any such product or services may, at any time prior\nto or within thirty days of the time of sale, appeal the purchase price\non the basis that it unreasonably exceeds fair market price. Such appeal\nshall be raised in a form to be provided for by the commissioner\npursuant to rule and shall include a verified statement setting forth\nthe basis of an alternative fair market price determined according to\nthe standards for establishing prices set forth in subdivision two of\nthis section.\n An appeal brought by such a purchaser as to the reasonableness of the\nfair market price established pursuant to subdivision two of this\nsection shall be decided by majority vote of a three-member price review\nboard consisting of the director of the budget, the commissioner and the\ncommissioner of the office of general services or their representatives.\n All hearings before such price review board shall be governed by the\nrules to be adopted and prescribed by such board. The hearings of such\nboard may, in the discretion of a majority of its members, be open to\nthe public, but shall not be bound by the technical rules of evidence.\nThe price review board shall permit the parties to such an appeal to\npresent such evidence, in person or through their attorneys, as the\nboard may deem necessary for its determination. A stenographic record\nshall be kept of any proceeding before such board and the decision of\nthe board shall be in writing and state the reasons for such decision.\n The decision of such board as to the reasonableness of the price\nestablished by the commissioner shall be conclusive on all parties. If\nthe board finds that a price unreasonably exceeds the fair market price,\nit may adjust the sales price with respect to such purchaser. Prices so\nadjusted shall otherwise apply prospectively to purchases made\nsubsequent to such adjustment until such time as new prices are\nestablished pursuant to subdivision two of this section. In the event\nthat payment has been made, upon such adjustment of price, any excess\npaid to the state shall be refunded to such purchaser on a voucher\nsigned by the commissioner within amounts available therefor or at the\noption of the purchaser, the commissioner may credit such excess amount\ntoward any future purchase.\n 4. The state or the political subdivisions thereof, or public\ninstitutions thereof, or public benefit corporations, authorities or\ncommissions shall purchase the products manufactured in correctional\ninstitutions in this state in accordance with their needs and at prices\nestablished pursuant to this section.\n