N.Y. Correction Law § 186: Prices of labor performed and articles manufactured in correctional facilities

§ 186. Prices of labor performed and articles manufactured in

correctional facilities. 1. The commissioner shall establish the prices

at which all services performed, and all articles manufactured in the

correctional facilities in this state, and furnished to the state, or

the political subdivisions thereof, or to the public institutions

thereof, or to public benefit corporations, authorities or commissions.

However, prices for goods or services furnished by the local

correctional facilities to or for the county in which they are located,

or the political subdivisions thereof, shall be fixed by the board of

supervisors of such counties, except the counties located within New

York city, in which the prices shall be fixed by the commissioner. It

shall also be the duty of such boards, respectively, to classify the

buildings, offices and institutions owned or managed and controlled by

the state, and the political subdivisions thereof, and to fix and

determine the styles, patterns, designs and qualities of the articles to

be manufactured for such buildings, offices and public institutions,

except where the same have been fixed or their specifications approved

by the office of general services in the executive department. So far as

practicable, all supplies used in such buildings, offices and public

institutions shall be uniform for each class, and of the styles,

patterns, designs and qualities that can be manufactured in the

correctional facilities in this state.

2. The prices established by the commissioner shall be based upon

costs as determined pursuant to this subdivision, but shall not exceed a

reasonable fair market price determined at or within ninety days before

the time of sale. Fair market price as used herein means the price at

which a vendor of the same or similar product or service who is

regularly engaged in the business of selling such product or service

offers to sell such a product or service under similar terms in the same

market. However, the price established by the commissioner for license

plates sold to the New York state department of motor vehicles shall in

no event exceed an amount approved by the director of the budget.

First instance appropriations to the department of corrections and

community supervision for correctional industries shall be reimbursed

pursuant to an agreement with the director of the budget. In the absence

of a first instance appropriation, costs shall be determined in

accordance with an agreement between the commissioner of corrections and

community supervision and the director of the budget. Any such agreement

shall include, among other provisions deemed necessary by the budget

director for the purposes of enabling programmatic overview and fiscal

controls, one or more methodologies for the determination of costs

attributable to correctional industries or to any product manufactured

in the institutions of the department or distributed, marketed or sold

by the commissioner pursuant to this section, section one hundred

seventy-seven of this article or section one hundred seventy-five of the

state finance law.

3. A purchaser of any such product or services may, at any time prior

to or within thirty days of the time of sale, appeal the purchase price

on the basis that it unreasonably exceeds fair market price. Such appeal

shall be raised in a form to be provided for by the commissioner

pursuant to rule and shall include a verified statement setting forth

the basis of an alternative fair market price determined according to

the standards for establishing prices set forth in subdivision two of

this section.

An appeal brought by such a purchaser as to the reasonableness of the

fair market price established pursuant to subdivision two of this

section shall be decided by majority vote of a three-member price review

board consisting of the director of the budget, the commissioner and the

commissioner of the office of general services or their representatives.

All hearings before such price review board shall be governed by the

rules to be adopted and prescribed by such board. The hearings of such

board may, in the discretion of a majority of its members, be open to

the public, but shall not be bound by the technical rules of evidence.

The price review board shall permit the parties to such an appeal to

present such evidence, in person or through their attorneys, as the

board may deem necessary for its determination. A stenographic record

shall be kept of any proceeding before such board and the decision of

the board shall be in writing and state the reasons for such decision.

The decision of such board as to the reasonableness of the price

established by the commissioner shall be conclusive on all parties. If

the board finds that a price unreasonably exceeds the fair market price,

it may adjust the sales price with respect to such purchaser. Prices so

adjusted shall otherwise apply prospectively to purchases made

subsequent to such adjustment until such time as new prices are

established pursuant to subdivision two of this section. In the event

that payment has been made, upon such adjustment of price, any excess

paid to the state shall be refunded to such purchaser on a voucher

signed by the commissioner within amounts available therefor or at the

option of the purchaser, the commissioner may credit such excess amount

toward any future purchase.

4. The state or the political subdivisions thereof, or public

institutions thereof, or public benefit corporations, authorities or

commissions shall purchase the products manufactured in correctional

institutions in this state in accordance with their needs and at prices

established pursuant to this section.