§ 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.