2023 New York Laws › COR - Correction › Article 7 - Labor in Correctional Institutions › 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.