41-2636

41-2636. Procurement from Arizona industries
for the blind, certified nonprofit agencies that serve individuals
with disabilities and Arizona correctional industries;
definitions

A. The director shall appoint a state set-aside committee to determine those
materials and services that are provided, manufactured, produced and offered for sale by
Arizona industries for the blind, certified nonprofit agencies that serve individuals
with disabilities and Arizona correctional industries and that satisfy the requirements
of state governmental units and to establish a fair market price for all approved
materials and services offered for sale that meet these requirements. Membership shall
include the assistant director for rehabilitation services in the department of economic
security or the assistant director's designee and a private sector businessperson
appointed by the governor who contracts or employs persons with disabilities in the
private sector. At each quarterly meeting the director shall report on new procurement
requests or renewal of existing procurement requests for state purchases from lists
supplied by set-aside providers and that are within the capability of and that can be
supplied by the entities that are prescribed in this section. To qualify for set-aside
contracts, certified nonprofit agencies must maintain an employment ratio of at least
sixty per cent of program employees with significant disabilities.

B. Materials and services from Arizona correctional industries shall be presented
to the committee for approval. Office products, vinyl binders and furniture refurbishing
services shall be exempt from this article. State governmental units shall purchase
office products, vinyl binders and furniture from Arizona correctional industries if each
of the following applies:

1. Such materials and services are readily available.

2. Such materials and services are capable of timely delivery.

3. Such materials and services are of equal quality and price for these same
materials and services in the private sector.

C. State governmental units shall purchase approved materials and services if such
materials and services are readily available.

D. Notwithstanding the requirements of section 41-2532, state governmental units
and local public procurement units may purchase or contract for any products, materials
and services directly from Arizona industries for the blind, certified nonprofit agencies
that serve individuals with disabilities and Arizona correctional industries without
competitive bidding if the delivery and quality of the products, materials or services
meet the unit's reasonable requirements.

E. All state governmental units shall endeavor to set aside at least one per cent
of their new purchases or contracts for any products, materials and services from the
entities that are prescribed in subsection D of this section, except for contracts for
care and services for clients of the department of economic security or the department of
health services. The department shall communicate with each state governmental unit
regarding its responsibility to comply with this subsection. The committee shall meet
quarterly to report progress in increasing state governmental purchases or contracts with
the entities that are prescribed in subsection D of this section. The committee shall
compile quarterly reports detailing new purchases or contracts that are entered into
pursuant to this subsection to the director, each committee member, the governor, the
president of the senate and the speaker of the house of representatives.

F. The committee shall meet during the first month of each fiscal year to determine
which articles, products or services Arizona correctional industries, certified nonprofit
agencies that serve individuals with disabilities and Arizona industries for the blind
should continue to manufacture for state use, to advise such agencies and industries of
any changes in specifications and to identify new articles or products that should be
manufactured or could be eligible for procurement.

G. For the purposes of this section:

1. "Certified nonprofit agency that serves individuals with disabilities" means a
nonprofit activity center that serves individuals with significant disabilities and that
satisfies all of the following:

(a) Is organized under the laws of this state or another state, is operated in the
interest of disabled individuals and the net income of which does not inure in whole or
in part to the benefit of any shareholder or other individual.

(b) Complies with any applicable occupational health and safety standard required
by the laws of the United States and this state.

2. "Disabled individual" means an individual who, because of the nature of the
individual's disabilities, is not able to fully participate in competitive employment and
for whom specialized employment and training is necessary by a qualified nonprofit
organization through the department of economic security or the department of health
services.