Section 186. Prices of labor performed and articles manufactured in correctional facilities

1. The commissioner  of  correctional  services  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  of  correction.  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  correctional
  services 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  correctional services 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 of

  correctional services 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.