New York Correction Law Section 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.


Last modified: February 3, 2019