(1) DEFINITIONS. In this section: (a) “Board” means the state use board. (c) “Direct labor” means all labor or work involved in producing or supplying materials, supplies or equipment or performing contractual services including preparation, processing and packing, but excluding supervision, administration, inspection and shipping. (d) “Severely handicapped individual” means an individual who has a physical, mental or emotional disability which is a substantial handicap to employment and prevents the individual from engaging in normal competitive employment. (e) “Work center” means a charitable organization or nonprofit institution which is licensed under s. 104.07 and incorporated in this state or a unit of county government which is licensed under s. 104.07, and which is operated for the purpose of carrying out a program of rehabilitation for severely handicapped individuals and for providing the individuals with remunerative employment or other occupational rehabilitating activity of an educational or therapeutic nature, and which is engaged in the production of materials, supplies or equipment or the performance of contractual services in connection with which not less than 75 percent of the total hours of direct labor are performed by severely handicapped individuals. (2) DUTIES OF THE STATE USE BOARD. The board shall: (a) Coordinate and monitor the implementation of this section. (b) Aid in the identification of materials, supplies, equipment and contractual services to be procured by agencies from work centers. (c) Establish eligibility criteria for work centers participating in the program established under this section. (d) At least annually, establish and review fair market prices for materials, supplies, equipment and contractual services to be purchased from work centers. (e) No later than October 1, prepare and submit to the secretary an annual report concerning its activities, including: 1. A summary of materials, supplies, equipment and contractual services purchased by agencies from work centers. 2. The names of work centers participating in the program established under this section. 3. The impact of the program established under this section upon production, work stabilization and program development of, and the number of severely handicapped individuals served by, participating work centers. (f) At least annually, conduct a review of the prices paid by agencies for the materials, supplies, equipment and contractual services provided by work centers and make any adjustments necessary to establish fair market price. (g) Promulgate rules regarding specifications, time of delivery and designation of materials, supplies, equipment and contractual services to be supplied by work centers. The board shall maintain a list of each material, supply, piece of equipment or contractual service to be supplied by work centers, and shall assign a number to each item on the list. Specifications of the board shall be consistent with specifications prescribed by agencies for which procurements are made. (h) Review each order and contract for the impact that the requirements of sub. (7) have on each supplier or contractor, and assure that the requirements do not affect more than 15 percent of the supplier’s or contractor’s current yearly sales or production. (i) Prescribe a surcharge to be paid by each agency, which shall be payable to the department within a time and in accordance with a procedure specified by the board. (7) QUALIFICATION OF WORK CENTERS. To qualify for participation under the program established under this section, a work center shall submit to the board a copy of its license under s. 104.07 together with the following documents, transmitted by a letter signed by an officer of the work center: (a) In the case of a charitable organization or nonprofit institution: 1. A legible copy of the articles of incorporation of the organization showing the date of filing with the department of financial institutions. 2. A copy of the bylaws of the organization certified by an officer. 3. A copy of a letter from the federal internal revenue service indicating that the organization qualifies as a tax-exempt organization. (b) In the case of a unit of county government, a copy of the ordinance or resolution of the county board of supervisors authorizing or directing the establishment of the work center. (8) RESPONSIBILITIES OF WORK CENTERS. Each work center participating in the program established under this section shall: (a) Furnish materials, supplies, equipment and services in strict accordance with orders issued by agencies. (b) Make its records available for public inspection at any reasonable time. (c) Maintain records of direct labor hours performed in the work center by each worker. (d) Annually submit to the board a certification that it is qualified to participate in the program established under this section. (e) Comply with applicable occupational health and safety standards prescribed by the U.S. secretary of labor, the federal occupational health and safety administration or the department of safety and professional services. (f) Maintain an ongoing placement program for severely handicapped individuals that includes staff which is assigned to perform personal evaluations and to maintain liaisons with appropriate community service organizations. (g) Maintain a record for each severely handicapped individual employed by it which includes a written report prepared by a licensed physician or psychiatrist, or a qualified psychologist, reflecting the nature and extent of the disability that causes the individual to qualify as severely handicapped. (9) PURCHASE OF RAW MATERIALS. Work centers shall seek broad competition in the purchase of raw materials and components used in the materials, supplies, equipment or services provided to agencies under this section. Work centers shall inform the board before entering into multiyear contracts for such raw materials and components. (10) PRODUCTION OF SUCH MATERIALS, SUPPLIES AND EQUIPMENT. In the production of materials, supplies and equipment under this section, a work center shall make an appreciable contribution to the reforming of raw materials or the assembly of components thereof. (11) VIOLATIONS. Any alleged violation of this section by a work center shall be investigated by the board. The board shall determine whether a violation has occurred. If the board determines that a violation has occurred, the board may terminate assignments to the work center or suspend assignments for such period as the board determines. (12) PROCUREMENT REQUIREMENTS AND PROCEDURES. (a) Except as provided in pars. (c), (d), (h), (i), and (j) and as authorized under sub. (13), agencies shall obtain materials, supplies, equipment and services on the list maintained by the board under sub. (2) (g). (b) Purchase orders shall contain the following: 1. The name, material, supply or equipment number assigned by the board, most recent specification, quantity, unit price, and place and time of delivery. 2. The type of work and location of service required, most recent specification, work to be performed, estimated volume, and time for completion. (c) Agencies shall issue purchase orders with sufficient time for the appropriate work center to produce the materials, supplies or equipment or provide the services required. (d) If any commodity on the list maintained under sub. (2) (g) is also produced at an institution of the state and the commodity conforms to the specifications on the list, the ordering agency shall purchase the commodity from the institution. (e) If a specific material, supply or piece of equipment on the list maintained under sub. (2) (g) also appears on the list of materials, supplies and equipment supplied by the prison industries under s. 16.75 (3t) (c), the ordering agency shall notify and provide prison industries with the opportunity to fill the order prior to placing an order. (h) Paragraph (a) does not apply to purchases of printing or stationery. (i) Paragraph (a) does not apply to procurements by the department relating to information technology or telecommunications. (j) Paragraph (a) does not apply to services purchased under a contract under s. 153.05 (2m) (a). (13) CERTIFICATES OF EXCEPTION. (a) Grant written authorization to an ordering agency to procure materials, supplies, equipment or services on the list maintained under sub. (2) (g) from commercial sources when all of the following conditions are met: 1. The work center to which the order is assigned cannot furnish a material, supply, piece of equipment or service within the period specified in the order. 2. The material, supply, equipment or service is available from commercial sources in the quantities and at an earlier time than it is available from the work center to which the order is assigned. (b) Issue an authorization to an ordering agency to procure materials, supplies, equipment or services from commercial sources when the quantity involved is not sufficient for the economical production or provision by the work center to which the order is assigned. (c) Issue authorizations under pars. (a) and (b) promptly upon request of an ordering agency. The authorization shall be in the form of a certificate which shall specify the quantities and delivery period covered by the authorization. The organization shall transmit a copy of each certificate to the board. (14) PRICES. (a) All prices included in the list maintained under sub. (2) (g) shall be determined by the board on the basis of fair market prices for materials, supplies, equipment or services similar to those supplied by work centers. (b) Prices for materials, supplies or equipment shall include delivery and packaging, packing and marketing costs. (c) Price changes for materials, supplies or equipment shall apply to all orders placed on or after the effective date of the change. (d) Delivery of an order is accomplished when a shipment is received and accepted by the purchasing agency. (15) ADJUSTMENT AND CANCELLATION OF ORDERS. If a work center fails to comply with the terms of an order from an agency, the ordering agency shall make every effort to negotiate adjustments before canceling the order. (17) QUALITY CONTROL. (a) Materials, supplies and equipment furnished by work centers under specifications issued by an agency shall be manufactured by work centers in strict accordance with the specifications. (b) Services provided by work centers under specifications issued by an agency shall be performed by work centers in strict accordance with the specifications. If no specifications exist, the services shall be performed by work centers in accordance with good commercial practices. (c) If the quality of a material, supply, piece of equipment or service received from a work center is not satisfactory to the con- tracting agency, the agency shall advise the board and, if the board determines that the quality of the material, supply, equipment or service is unsatisfactory, the board shall suspend the eligibility of the work center which provided the material, supply or equipment or which performed the service to participate in the program established under this section. (18) SPECIFICATION CHANGES. (a) The board may change specifications contained in the list maintained under sub. (2) (g). Each list shall contain a basic specification and the date of the latest revision. (b) If an agency makes substantial changes in a specification on the list maintained under sub. (2) (g) the board shall assign a new item number. The agency shall notify the board of the changes prior to their effective date.
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