Section 78A. The commission shall, subject to appropriation, administer a program of extended sheltered employment for those handicapped persons over sixteen years of age, who, after individual evaluation, are determined unemployable in the competitive labor market, but who are able to maintain acceptable levels of attendance and productive capacity in extended sheltered employment in a program administered by a private nonprofit organization. The levels of attendance and productive capacity which shall be deemed acceptable shall be established by regulations promulgated by the commission. The commission shall inspect the facilities for extended sheltered employment of such private nonprofit organizations and shall maintain a register of such organizations which it approves as qualified to meet the needs of such handicapped persons and eligible to receive funds. The commission may contract with such organizations for the furnishing of such extended sheltered employment; provided, however, that the rate payable by the commission for such services shall be subject to the approval of the operational services division within the executive office of administration and finance.