Oklahoma 2022 Regular Session

Oklahoma House Bill HB2328 Compare Versions

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3		-	ENGR. H. B. NO. 2328 Page 1 1
	3	+	HB2328 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 2328 By: Lawson of the House
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
	30	+
	31	+	STATE OF OKLAHOMA
	32	+
	33	+	1st Session of the 58th Legislature (2021)
	34	+
	35	+	HOUSE BILL 2328 By: Lawson of the House
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31	37		and
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33	39		Rosino of the Senate
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	45	+	AS INTRODUCED
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42	47		An Act relating to state government; amending 74 O.S.
43	48		2011, Section 85.7, as last amended by Section 10,
44	49		Chapter 98, O.S.L. 2020 (74 O.S. Supp. 2020, Section
45	50		85.7), which relates to acquisitions; modifying
46	51		exception to competitive bidding requirements; and
47	52		providing an effective date .
	53	+
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52	59		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
53	60		SECTION 1. AMENDATORY 74 O.S. 2011, Section 85.7, as
54	61		last amended by Section 10, Chapter 98, O.S.L. 2020 (74 O.S. Supp.
55	62		2020, Section 85.7), is amended to read as follows:
56	63		Section 85.7 A. 1. Except as otherwise provided by the
57	64		Oklahoma Central Purchasing Act, or associated rules:
58	65		a. every state agency shall initiate all acquisitions by
59	66		the submission of a requisition to the Purchasing
60	67		Division, and
61		-	b. no state agency shall make an acquisition for an
62		-	amount exceeding Fifty Thousand Dollars ($50,000.00)
63		-	or the limit determined by the State Purchasing
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65		-	ENGR. H. B. NO. 2328 Page 2 1
	69	+	HB2328 HFLR Page 2
	70	+	BOLD FACE denotes Committee Amendments. 1
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	95	+	b. no state agency shall make an acquisition for an
	96	+	amount exceeding Fifty Thousand Dollars ($50,000.00)
	97	+	or the limit determined by the State Purchasing
90	98		Director pursuant to rules authorized by Section 85.5
91	99		of this title, not to exceed Two Hundred Fifty
92	100		Thousand Dollars ($250,000.00), wit hout submission of
93	101		a requisition to the Purchasing Division for issuance
94	102		of a solicitation for the acquisition on behalf of the
95	103		agency. Any exemption from competitive bid
96	104		requirements of the Oklahoma Central Purchasing Act
97	105		further exempts the acquisition from requisition
98	106		requirements of the act.
99	107		2. The State Purchasing Director may request additional
100	108		information necessary to adequately review a requisition to ensure
101	109		compliance with this act and associated rules. If the State
102	110		Purchasing Director determine s that an acquisition is not necessary,
103	111		excessive or not justified, the State Purchasing Director shall deny
104	112		the requisition.
105	113		3. The provisions of this act shall not preclude a state agency
106	114		from:
107	115		a. accepting gifts or donations in any manner authorized
108	116		by law, or
109		-	b. making an acquisition for itself without submitting a
110		-	requisition under this section when authorized in
111		-	writing by the State Purchasing Director.
112		-	4. Any acquisition a state agency makes shall be made pursuant
113		-	to this act and associated rules. No agency shall use split
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115		-	ENGR. H. B. NO. 2328 Page 3 1
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	144	+	b. making an acquisition for itself without submitting a
	145	+	requisition under this section when authorized in
	146	+	writing by the State Purchasing Director.
	147	+	4. Any acquisition a state agency makes shall be made pursuant
	148	+	to this act and associated rules. No agency shall use split
140	149		purchasing for the purpose of evading the requirement of competitive
141	150		bidding or other requirement of this act or associated rules.
142	151		Violation of this provision shall be cause for discipline of a state
143	152		employee up to and including termination.
144	153		5. The State Purchasing Director may waive or increase the
145	154		limit authorized for a state agency acquisition made pursuant to its
146	155		own competitive procedures. To perfect an otherwise valid
147	156		acquisition inadvertently exceeding the limit due to a dministrative
148	157		error by a state agency or unforeseeable circumstances, the state
149	158		agency shall request a limited waiver or increase upon the discovery
150	159		of the error or circumstance to the State Purchasing Director. The
151	160		State Purchasing Director shall report requests for waivers or
152	161		increases, stating the amount and whether the request was granted or
153	162		denied, upon request by the Governor, President Pro Tempore of the
154	163		Senate or Speaker of the House of Representatives.
155	164		6. Competitive bidding requirements of this section shall not
156	165		be required for the following:
157	166		a. contracts for master custodian banks or trust
158	167		companies, investment managers, investment
159		-	consultants, and actuaries for the state retirement
160		-	systems, and Oklahoma Employees Insurance and Benefits
161		-	Board, pension fund management consultants of the
162		-	Oklahoma State Pension Commission and the
163		-	Commissioners of the Land Office, fin ancial
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165		-	ENGR. H. B. NO. 2328 Page 4 1
	169	+	HB2328 HFLR Page 4
	170	+	BOLD FACE denotes Committee Amendments. 1
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	195	+	consultants, and actuaries for the state retirement
	196	+	systems, and Oklahoma Employees Insurance and Benefits
	197	+	Board, pension fund management consultants of the
	198	+	Oklahoma State Pension Commission and the
	199	+	Commissioners of the Land Office, financial
190	200		institutions to act as depositories and managers of
191	201		the Oklahoma College Savings Plan accounts and other
192	202		professional services a s defined in Section 803 of
193	203		Title 18 of the Oklahoma Statutes. When requested by
194	204		the Oklahoma Employees Insurance and Benefits Board or
195	205		the governing board of a state retirement system
196	206		authorized to hire investment managers, the Purchasing
197	207		Division shall assist in the process of selecting
198	208		investment managers,
199	209		b. a state agency making such an acquisition shall notify
200	210		the State Purchasing Director within fifteen (15) days
201	211		following completion of the acquisition. A list of
202	212		the exempt contracts shall be provi ded, upon request,
203	213		to a member of the Appropriations and Budget Committee
204	214		of the House of Representatives or Appropriations
205	215		Committee of the Senate .,
206	216		c. purchases of postage by state agencies made pursuant
207	217		to Sections 90.1 through 90.4 of this title,
208		-	d. a sole source acquisition made in compliance with
209		-	Section 85.45j 85.44D.1 of this title,
210		-	e. an acquisition for design, deve lopment, communication
211		-	or implementation of the state employees flexible
212		-	benefits plan; provided, procedures used for the
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214		-	ENGR. H. B. NO. 2328 Page 5 1
	219	+	HB2328 HFLR Page 5
	220	+	BOLD FACE denotes Committee Amendments. 1
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	245	+	d. a sole source acquisition made in compliance with
	246	+	Section 85.45j 85.44D.1 of this title,
	247	+	e. an acquisition for design, development, communication
	248	+	or implementation of the state employees flexible
	249	+	benefits plan; provided, procedures used for the
239	250		acquisition are consistent with competitive bid
240	251		requirements of this act and associated rules,
241	252		f. any acquisition of a service which the Office of
242	253		Management and Enterprise Services has approved as
243	254		qualifying for a fixed and uniform rate, subject to
244	255		the following:
245	256		(1) the Purchasing Division shall establish criteria
246	257		and guidelines for those services which may
247	258		qualify for a fixed and uniform rate,
248	259		(2) fixed and uniform rate contracts authorized by
249	260		this subsection shall be limited to contracts for
250	261		those services furnished to persons directly
251	262		benefiting from such services and shall not be
252	263		used by a state agency to employ consultants or
253	264		to make other acquisitions,
254	265		(3) any state agency desiring to have a service
255	266		qualified for a fixed and uniform rate shall make
256	267		a request for service qualification to the State
257	268		Purchasing Director and submit documentation to
258		-	support the request. The State Purcha sing
259		-	Director shall approve or deny the request. If
260		-	approved, the state agency shall establish a
261		-	fixed and uniform rate for the service. No
262		-	contracts shall be entered into by the state
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264		-	ENGR. H. B. NO. 2328 Page 6 1
	270	+	HB2328 HFLR Page 6
	271	+	BOLD FACE denotes Committee Amendments. 1
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	296	+	support the request. The State Purchasing
	297	+	Director shall approve or deny the request. If
	298	+	approved, the state agency shall establish a
	299	+	fixed and uniform rate for the servic e. No
	300	+	contracts shall be entered into by the state
289	301		agency until the rate has been approved by the
290	302		state agency in a public hearing. The proposed
291	303		rate shall be clearly and separately identified
292	304		in the agenda of the state agency for the hearing
293	305		and shall be openly and separately discussed
294	306		during such hearing. The state agency shall
295	307		notify the State Purchasing Director of its
296	308		pending consideration of the proposed rate at
297	309		least thirty (30) days before the state agency is
298	310		to meet on the proposed rate and deli ver a copy
299	311		of the agenda items concerning the proposed rate
300	312		with supporting documentation. The State
301	313		Purchasing Director shall communicate any
302	314		observation, reservation, criticism or
303	315		recommendation to the agency, either in person at
304	316		the time of the hearing or in writing delivered
305	317		to the state agency before or at the time of the
306	318		hearing. The State Purchasing Director shall
307	319		specifically note in the written communications
308		-	whether the Director has determined the rate to
309		-	be excessive. Any written communication
310		-	presented in the absence of the State Purchasing
311		-	Director shall be presented orally during the
312		-	public hearing. Whether made in person or in
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314		-	ENGR. H. B. NO. 2328 Page 7 1
	321	+	HB2328 HFLR Page 7
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	347	+	whether the Director has determined the rate to
	348	+	be excessive. Any written communication
	349	+	presented in the absence of the State Purchasing
	350	+	Director shall be presented orally during the
	351	+	public hearing. Whether made in person or in
339	352		writing, any comment made by the State Purchasing
340	353		Director shall be made a part of the minutes of
341	354		the hearing in full,
342	355		(4) within two (2) weeks after the convening of the
343	356		Legislature, the administrative officer of the
344	357		state agency shall furnish to the Speaker of the
345	358		House of Representatives, the President Pro
346	359		Tempore of the Senate and to any member of the
347	360		House or Senate, if requested by the member, a
348	361		complete list of all of the types of services
349	362		paid for by uniform fixed rates, the amount of
350	363		the rate last approved by the agency for the
351	364		service and the number of contracts then in
352	365		existence for each type of service. An y rate
353	366		which has been determined to be excessive by the
354	367		State Purchasing Director shall be specifically
355	368		identified in the list by the state agency, and
356	369		(5) at any time, the State Purchasing Director may
357	370		review, suspend or terminate a contract entered
358		-	into pursuant to the provisions of this paragraph
359		-	if the Director determines the contract is not
360		-	necessary, is excessive or is not justified,
361		-	g. an acquisition for a client of the State Department of
362		-	Rehabilitation Services and acquisitions of the
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364		-	ENGR. H. B. NO. 2328 Page 8 1
	372	+	HB2328 HFLR Page 8
	373	+	BOLD FACE denotes Committee Amendments. 1
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	398	+	into pursuant to the provisions of this paragraph
	399	+	if the Director determines the contract is not
	400	+	necessary, is excessive or is not justified,
	401	+	g. an acquisition for a client of the State Department of
	402	+	Rehabilitation Services and acquisitions of the
389	403		business enterprise program; provided, the agency
390	404		develops and maintains standards for such an
391	405		acquisition. The agency may elect to utilize the
392	406		Purchasing Division for an acquisition. The standards
393	407		shall foster economy, provide a short response time,
394	408		include appropriate safeguards, require written
395	409		records, ensure appropriate competition for economical
396	410		and efficient purchasing and shall be approved by the
397	411		State Purchasing Director,
398	412		h. structured settlement agreements entered into by the
399	413		Attorney General's office in order to settle any
400	414		lawsuit involving the state, the Legislature, any
401	415		state agency or any employee or official of the state
402	416		if:
403	417		(1) prior to entering into any contract for the
404	418		services of an entity to administer a structured
405	419		settlement agreement, the Attorney General
406	420		receives proposals from at least three entities
407	421		engaged in providing such services, and
408		-	(2) the selection of a p articular entity is made on
409		-	the basis of the response to the request which is
410		-	the most economical and provides the most
411		-	competent service which furthers the best
412		-	interests of the state,
413	422
414		-	ENGR. H. B. NO. 2328 Page 9 1
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	424	+	BOLD FACE denotes Committee Amendments. 1
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	449	+	(2) the selection of a particular entity is made on
	450	+	the basis of the response to the request which is
	451	+	the most economical and provides the most
	452	+	competent service which furthers the best
	453	+	interests of the state,
439	454		i. an acquisition by a state agency pursuant to a
440	455		contract the State Purchasing Director enters into on
441	456		behalf of a state agency or awards and designates for
442	457		use by state agencies,
443	458		j. an acquisition by the Committee for Sustaining
444	459		Oklahoma's Energy Resources pursuant to a contract
445	460		with a local supplier for the purpose of holding a
446	461		special event or an exhibition throughout the state.
447	462		7. Notwithstanding any other provision of law, an acquisition
448	463		may be exempted from requirements of this section by the State
449	464		Purchasing Director when in the State Purchasing Director 's
450	465		discretion unusual, time -sensitive or unique circumstances exist
451	466		which make such exemption in the best and immediate interest of the
452	467		state. As used in this subsection, "State Purchasing Director "
453	468		shall not mean a designee. Any such acquisitions shall be described
454	469		in detail and publicly posted as a data feed. The description shall
455	470		include the name of the supplier, cost of the acquisition, reason
456	471		for exemption and, as applicable, detailed comparison of the
457	472		acquisition with comparable items, any identified cost savings
458		-	resulting from the acquisition and a description of benefits to the
459		-	state. The State Purchasing Director shall take no action under the
460		-	provisions of this subsection prior to such public posting.
461		-	B. Competitively bid acquisitions shall be awarded to t he
462		-	lowest and best, or best value, bidder or bidders.
463	473
464		-	ENGR. H. B. NO. 2328 Page 10 1
	474	+	HB2328 HFLR Page 10
	475	+	BOLD FACE denotes Committee Amendments. 1
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	500	+	resulting from the acquisition and a description of benefits to the
	501	+	state. The State Purchasing Director shall take no action under the
	502	+	provisions of this subsection prior to such public posting.
	503	+	B. Competitively bid acquisitions shall be awarded to the
	504	+	lowest and best, or best value, bidder or bidders.
489	505		C. Bids for an amount requiring submission of requisitions to
490	506		the Purchasing Division shall be evaluated by the Purchasing
491	507		Division and the state agency receiving the acquisition. At a
492	508		minimum, cost and technical expertise shall be considered in
493	509		determining the lowest and best, or best value, bid. Further, the
494	510		state agency shall pre sent its evaluation and recommendation to the
495	511		State Purchasing Director. A documented evaluation report
496	512		containing the evaluations of the Purchasing Division or the state
497	513		agency shall be completed prior to the contract award and such
498	514		report shall be a mat ter of public record.
499	515		D. Except as otherwise specifically provided by law, the
500	516		acquisition of food items or food products by a state agency from a
501	517		public trust created pursuant to Sections 176 through 180.56 of
502	518		Title 60 of the Oklahoma Statutes shall comp ly with competitive
503	519		bidding requirements of this section.
504	520		E. Cooperative contracts shall not be utilized unless the
505	521		purchasing cooperative and its affiliated suppliers have complied
506	522		with competitive bid requirements of this act and associated rules.
507		-	F. Notwithstanding any provision of this act, in all cases
508		-	where federal granted funds are involved, the federal laws, rules
509		-	and regulations thereto shall govern to the extent necessary to
510		-	inure to the benefit of such funds to this state.
511		-	G. A court order requiring an acquisition by a state agency,
512		-	whether or not such state agency is subject to this act, shall not
513	523
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	524	+	HB2328 HFLR Page 11
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	550	+	F. Notwithstanding any provision of this act, in all cases
	551	+	where federal granted funds are involved, the federal laws, rules
	552	+	and regulations thereto shall govern to the extent necessary to
	553	+	inure to the benefit of such funds to this state.
	554	+	G. A court order req uiring an acquisition by a state agency,
	555	+	whether or not such state agency is subject to this act, shall not
539	556		invalidate competitive bidding procedures required by this section
540	557		if such court order does not specify a specific supplier. Any such
541	558		acquisition shall comply with competitive bid procedures.
542	559		SECTION 2. This act shall become effective November 1, 2021.
543		-	Passed the House of Representatives the 9th day of March, 2021.
544	560
545		-
546		-
547		-
548		-	Presiding Officer of the House
549		-	of Representatives
550		-
551		-
552		-	Passed the Senate the ___ day of __________, 2021.
553		-
554		-
555		-
556		-
557		-	Presiding Officer of the Senate
558		-
559		-
	561	+	COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 02/25 /2021 - DO PASS,
	562	+	As Coauthored.