Pursuant to the general policies of the department, the director and the division are authorized to:

(1) Cooperate with and utilize the services of the state agency or agencies administering the state’s public assistance program, the federal bureau of old-age and survivors insurance under the United States department of health and human services, and other federal, state and local public agencies providing services relating to vocational rehabilitation, and with the state system of public employment offices in the state, and shall make maximum feasible utilization of the job placement and employment counseling services and other services and facilities of such offices;
(2) Cooperate with political subdivisions, other public and nonprofit organizations and agencies, in their establishment of workshops and rehabilitation facilities, and, to the extent feasible in providing vocational rehabilitation services, shall utilize all such facilities meeting the standards established by the department;
(3) Enter into contractual arrangements with the federal bureau of old-age and survivors insurance under the United States department of health and human services, with respect to certifications of disability and performance of other services, and with other authorized public agencies for performance of services related to vocational rehabilitation, for such agencies;
(4) Contract with schools, hospitals, and other agencies, and with doctors, nurses, technicians and other persons, for training, physical restoration, transportation, and other vocational rehabilitation services; and
(5)

(A) Contract with a nonprofit organization or organizations for the management and operation of workshops for the blind located at Nashville and Memphis and, in fulfillment of the terms of such contract or contracts, lease the present workshop facilities to the organization or organizations for the period of time as specified in the contract; provided, that any contract entered into for this purpose shall not be effective until approved by the governor, attorney general and reporter, and comptroller of the treasury. Such contract shall also be governed by former § 12-4-109 [See the Compiler’s Notes] and the regulations promulgated pursuant to former § 12-4-109. A contractor that manages and operates a workshop under this subdivision (5) shall not be bound by enactments of the general assembly that govern:

(i) The administration of personnel, including title 8, chapter 30;
(ii) The purchase of goods and services, including title 12, chapter 3 [see the Compiler’s Notes] and former §§ 12-4-109 and 12-4-110 [see the Compiler’s Notes]; and
(iii) The administration, disposition, and inventory of property and surplus property, including title 12, chapter 2 and § 4-3-1105.
(B) However, a contractor may purchase, inventory, and dispose of goods, property, and surplus property under these laws, with the approval of and under conditions set by the procurement commission. The department of general services may, upon request, purchase supplies and equipment for a contractor to manage and operate a facility. The purchases shall be made on the same terms and rules that govern the purchase of supplies and equipment by such department. The contractor shall pay for all such purchases. Any contractor operating a workshop under this subdivision (5) shall pay the minimum wage, unless a certificate of exemption is granted under the federal Fair Labor Standards Act of 1938 ( 29 U.S.C. § 201 et seq.), as amended, and shall also comply with all other state and federal laws applying to employment in the private sector.