Oklahoma 2022 Regular Session

Oklahoma House Bill HB1789 Compare Versions

Version 1 (Old)

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1		-	An Act
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	30	+	March 31, 2021
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3	34		BILL NO. 1789 By: Pae of the House
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5	36		and
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7	38		Howard of the Senate
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13	43		An Act relating to public buildings and public works;
14	44		amending 61 O.S. 2011, Section 103, as last amended
15	45		by Section 2, Chapter 405, O.S.L. 2019 (61 O.S. Supp.
16	46		2020, Section 103), which relates to competitive
17	47		bidding; authorizing certain local governmental units
18	48		to create purchasing cooperative; providing for
19	49		notice and publication; providing for compliance of
20	50		requirements; and providing an effective date.
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24		-	SUBJECT: Public buildings and public works
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26	55		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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28	56		SECTION 1. AMENDATORY 61 O.S. 2011, Section 103, as last
29	57		amended by Section 2, Chapter 405, O.S.L. 2019 (61 O.S. Supp. 2020,
30	58		Section 103), is amended to read as follows:
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32	59		Section 103. A. Unless otherwise provided by law, all public
33	60		construction contracts exceeding Fifty Thousand Dollars ($50,000.00)
34	61		shall be let and awarded to the lowest responsible bidder, by open
35	62		competitive bidding after solicitation for sealed bids, in
36	63		accordance with the provisions of the Public Competitive Bidding Act
37	64		of 1974. No work shall be commenced until a written contract is
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38	92		executed and all required bonds and insurance have been provided by
39	93		the contractor to the awarding public agency.
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41	94		B. Notwithstanding subsection A of this section, in awarding
42	95		public construction contracts exceeding Fifty Thousand Dollars
43	96		($50,000.00), counties, cities, other local units of government and
44	97		any public trust with a count y or a municipality as its sole
45	98		beneficiary may provid e for a local bid preference of not more than
46		-	five percent (5%) of the bid price if the awarding public agency ~~ENR. H. B. NO. 1789 Page 2~~
	99	+	five percent (5%) of the bid price if the awarding public agency
47	100		determines that there is an economic benefit to the local area or
48	101		economy. Provided, howev er, the local bidder or contractor must
49	102		agree to perform the contract for the same price and terms as the
50	103		bid proposed by the nonlocal bidder or contractor. Any bid
51	104		preference granted hereunder must be in accordance with an
52	105		established policy adopted by t he governing body of the awarding
53	106		public agency to cle arly demonstrate the economic benefit to the
54	107		local area or economy. Provided, further, no local bid preference
55	108		shall be granted unless the local bidding entity is the second
56	109		lowest qualified bid on the contract. The bid specifications shall
57	110		clearly state that the bid is subject to a local bidder preference
58	111		law. For purposes of this section, "local bid" means the bidding
59	112		person is authorized to transact business in this state and
60	113		maintains a bona fide establishment for transacting such business
61	114		within this state. This provision does not apply to any
62	115		construction contract for which federal funds are available for
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63	143		expenditure when its provisions may be in conflict with federal law
64	144		or regulation.
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66	145		C. Except as provided in subsection E of this section, other
67	146		construction contracts for the purpose of making any public
68	147		improvements or constructing any public building or making repairs
69	148		to the same for Fifty Thousand Dollars ($50,000.00) or less shall be
70	149		let and awarded to the lowest responsible bidder by receipt of
71	150		written bids or awarded on the basis of competitive quotes to the
72	151		lowest responsible qualified contractor. Work may be commenced in
73	152		accordance with the purchasing policies of the public agency.
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75	153		D. Except as provided in subsection E of this section, ot her
76	154		construction contracts for less than Five Thousand Dollars
77	155		($5,000.00) may be negotiated with a qualified contractor. Work may
78	156		be commenced in accordance with the purchasing policies of the
79	157		public agency.
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81	158		E. The provisions of this subsection shall ap ply to public
82	159		construction for minor maintenance or minor repair work to public
83	160		school district property. Other construction contracts for less
84	161		than Twenty-five Thousand Dollars ($25,000.00) may be neg otiated
85	162		with a qualified contractor. Construction con tracts equal to or
86	163		greater than Twenty-five Thousand Dollars ($25,000.00) but less than
87	164		Fifty Thousand Dollars ($50,000.00) shall be let and awarded to the
88	165		lowest responsible bidder by receipt of writte n bids. No work shall
89	166		be commenced on any constructio n contract until a written contract
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90	194		is executed and proof of insurance has been provided by the
91		-	contractor to the awarding public agency. ENR. H. B. NO. 1789 Page 3
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	195	+	contractor to the awarding public agency.
93	196		F. The Construction and Properties Division of the Office of
94	197		Management and Enterprise Services may award contracts u sing best
95	198		value competitive proposals. As used in this subsection, "best
96	199		value" means an optional contract award system which can evaluate
97	200		and rank submitted competitive performance proposals to identi fy the
98	201		proposal with the greatest value to the state. The Office of
99	202		Management and Enterprise Services, pursuant to the Administrative
100	203		Procedures Act, shall promulgate rules necessary to implement the
101	204		provisions of this subsection.
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103	205		G. 1. A public agency shall not let or award a public
104	206		construction contract exceeding Fifty Thousand Dollars ($50,000.00)
105	207		to any contractor affiliated with a purchasing cooperative unless
106	208		the purchasing cooperative and the contractor have complied with all
107	209		of the provisions of the Public Competitive Bidding Act of 1974,
108	210		including but not limited to open competitive bidding after
109	211		solicitation for sealed bids. A public agency shall not let or
110	212		award a public construction contract exceeding Five Thousand Dollars
111	213		($5,000.00) up to Fifty Thousand Dollars ($50,000.00) to any
112	214		contractor affiliated with a purchasing cooperative unless the
113	215		purchasing cooperative and the contractor have complied with all of
114	216		the provisions of the Public Competitive Bidding Act of 1974,
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115	244		including submission of a written bid upon notice of competitive
116	245		bidding.
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118	246		2. A purchasing cooperative and its affiliated contractors
119	247		shall not be allowed to bid on any public construction contract
120	248		exceeding Fifty Thousand Dollars ($50,000.00) unless the purchasing
121	249		cooperative and its affiliated contractors have complied with al l of
122	250		the provisions of the Public Competitive Bidding Act of 1974,
123	251		including but not limited to open competitive bidding after
124	252		solicitation for sealed bids. A purchasing cooperative and its
125	253		affiliated contractors shall not be allowed to bid on any public
126	254		construction contract exceeding Two Thousand Five Hundred Dollars
127	255		($2,500.00) unless the purchasing cooperative and its affiliated
128	256		contractors have complied with all of the provisions of the Public
129	257		Competitive Bidding Act of 1974, including submission of a written
130	258		bid upon notice of open competitive bidding.
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132	259		3. Local governmental units, or local governmental units
133	260		cooperating under the terms of any interlocal cooperative agreement
134	261		authorized by state la w, may create a purchasing cooperative or
135	262		contract with a purchasing cooperative to provide leverage in
136		-	achieving best value or the best terms in contracts. To encourage ~~ENR. H. B. NO. 1789 Page 4~~
	263	+	achieving best value or the best terms in contracts. To encourage
137	264		intergovernmental collaboration, any purchasing cooperative or
138	265		interlocal cooperative entity may utilize any single legal newspaper
139	266		of this state to serve as sufficient compliance for bid notice
140	267		requirements of competitive bidding or solicitation of bids. If the
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141	295		purchasing cooperative or interlocal cooperative entity is engaging
142	296		in a project exclusive to a county or group of counties of this
143	297		state, and not open to all governmental units or public trusts that
144	298		wish to participate statewide, the bid notice shall be published in
145	299		a legal newspaper located within the county or group of counties.
146	300		Any local governmental unit or public trust that ent ers into
147	301		membership or contracts with a purchasing cooperative or interlocal
148	302		cooperative entity may enter into purchases or contracts under the
149	303		terms negotiated by the purchasing cooperative or interloc al
150	304		cooperative entity. If the purchasing cooperative or interlocal
151	305		cooperative entity complies with the requirements of this section of
152	306		law, all local governmental units shall be deemed in compliance with
153	307		the requirements set forth for bid notices and pub lication.
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155	308		SECTION 2. This act shall become effective November 1, 2021.
156		-	ENR. H. B. NO. 1789 Page 5
157		-	Passed the House of Representatives the 18th day of February,
158		-	2021.
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163		-	Presiding Officer of the House
164		-	of Representatives
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167		-	Passed the Senate the 21st day of April, 2021.
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172		-	Presiding Officer of the Senate
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176		-	OFFICE OF THE GOVERNOR
177		-	Received by the Office of the Governor this ____________________
178		-	day of ___________________, 20_______, at _______ o'clock _______ M.
179		-	By: _________________________________
180		-	Approved by the Governor of the State of Oklahoma this _________
181		-	day of ___________________, 20_______, at _______ o'clock _______ M.
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183		-
184		-	_________________________________
185		-	Governor of the State of Oklahoma
186		-
187		-	OFFICE OF THE SECRETARY OF STATE
188		-	Received by the Office of the Secretary of State this __________
189		-	day of ___________________, 20_______, at _______ o'clock _______ M.
190		-	By: _________________________________
	309	+	COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT
	310	+	March 31, 2021 - DO PASS