OK
Oklahoma House Bill HB3876

Oklahoma 2022 Regular Session

Oklahoma House Bill HB3876 Compare Versions

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2828 STATE OF OKLAHOMA
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3030 2nd Session of the 58th Legislature (2022)
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3232 HOUSE BILL 3876 By: Boatman
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3838 AS INTRODUCED
3939
4040 An Act relating to state purchasing; defining terms;
4141 authorizing promulgation of rules; determining size
4242 standards for historically underutilized business;
4343 providing for certif ication; providing for assistance
4444 to certain businesses; authorizing mentor-protege
4545 program; providing for planning an d reporting
4646 requirements; providing for purchasing goals;
4747 providing penalty; authorizing subcontra cting;
4848 requiring good-faith compliance; providing for
4949 codification; and providing an effective date .
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5656 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
5757 SECTION 1. NEW LAW A new section of law to be codified
5858 in the Oklahoma Statutes as Section 84.1 of Title 74, unless there
5959 is created a duplication in numbering , reads as follows:
6060 As used in this act:
6161 1. "Goods" means supplies, materials, or equipment ;
6262 2. "Historically underutilized business " means an entity with
6363 its principal place of business in this state that is:
6464 a. a corporation formed for the purpose of making a
6565 profit in which fifty-one percent (51%) or more of all
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9292 classes of the shares of stock or other equitable
9393 securities are owned by one or more economically
9494 disadvantaged persons who have a proportionate
9595 interest and actively participate in the co rporation's
9696 control, operation, and management ,
9797 b. a sole proprietorship created for the purpose of
9898 making a profit that is completely owned, operated,
9999 and controlled by an economically disadvantaged
100100 person,
101101 c. a partnership formed for the purpose of m aking a
102102 profit in which fifty-one (51%) percent or more of the
103103 assets and interest in the partnership are owned by
104104 one or more economically disadvantaged persons who
105105 have a proportionate in terest and actively participate
106106 in the partnership's control, operation, and
107107 management,
108108 d. a joint venture in which each entity in the venture is
109109 a historically underutilized busine ss, or
110110 e. a supplier contract between a historically
111111 underutilized busines s and a prime contractor under
112112 which the historically underut ilized business is
113113 directly involved in the manufactu re or distribution
114114 of the goods or otherwise warehouses and ships the
115115 goods;
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142142 3. "Economically disadvantaged person " means a person who:
143143 a. is economically disadvantaged because of the person 's
144144 identification as a member of a certain group,
145145 including:
146146 (1) Black Americans,
147147 (2) Hispanic Americans,
148148 (3) women,
149149 (4) Asian Pacific Americans ,
150150 (5) Native Americans, or
151151 (6) veterans as defined by 38 U.S.C. , Section 101(2)
152152 who have suffered at least a twenty percent (20%)
153153 service-connected disability as defined by 38
154154 U.S.C., Section 101(16), and
155155 b has suffered the effects of discriminatory practices
156156 or other similar insidious circumstance s over which
157157 the person has no control; and
158158 4. "Contract" includes an arrangement under which a state
159159 agency receives professional or investment brokerage ser vices.
160160 SECTION 2. NEW LAW A new sec tion of law to be codified
161161 in the Oklahoma Statutes as Sec tion 84.2 of Title 74, unless there
162162 is created a duplication in numbering, reads as follows:
163163 The Director of the Office of Management and E nterprise Services
164164 shall promulgate rules to efficiently and effectively administer
165165 this act. The rules shall provide goals for increasing the contract
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192192 awards for the purchase of goods or services by state agencies to
193193 businesses that qualify as historical ly underutilized businesses
194194 because the businesses are owned or owned, operated, and controlled,
195195 as applicable, wholl y or partly by one or more veterans , as defined
196196 by 38 U.S.C., Section 101(2), who have a service-connected
197197 disability as defined by 38 U.S. C., Section 101(16).
198198 SECTION 3. NEW LAW A new section of law to be codifi ed
199199 in the Oklahoma Statutes as Section 84.3 of Title 74, unless there
200200 is created a duplication in number ing, reads as follows:
201201 The Director of the Office of Ma nagement and Enterprise Services
202202 shall establish size standards that a business may not exceed if it
203203 is to be considered a historically underutilized business under this
204204 act. In determining the size standards, the Director shall
205205 determine the size at whic h a business should be considered
206206 sufficiently large that the business does not significantly suf fer
207207 from the effects of past discriminatory practices.
208208 SECTION 4. NEW LAW A n ew section of law to be codifi ed
209209 in the Oklahoma Statutes as Section 84.4 of Title 74, unless there
210210 is created a duplication in numbering, reads as follows :
211211 A. The Director of the Office of Management and Enterpri se
212212 Services shall certify historically underutilized businesses.
213213 B. As one of its certification pro cedures, the Director may:
214214 1. Approve the certification program of one or more local
215215 governments or nonprofit organizations in this state that certify
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242242 historically underutilized businesses, minority business
243243 enterprises, women's business enterprises, or d isadvantaged business
244244 enterprises under substantially the same definition, to the extent
245245 applicable, if the local government or nonprofit organization meets
246246 or exceeds the standards establi shed by the Director; and
247247 2. Certify a business that is certified by a local government
248248 or by a nonprofit organization as a historically underutilized
249249 business pursuant to this act.
250250 C. To maximize the number of certified historically
251251 underutilized businesses, the Director shall enter into agreements
252252 with local governmen ts in this state that conduct certification
253253 programs described by subsection B of this section and with
254254 nonprofit organizations. The Director may terminate an agreement if
255255 a local government or nonprofit organization fails to meet the
256256 standards establishe d by the Director for certifying historically
257257 underutilized businesses. The agreements shall take effect
258258 immediately and:
259259 1. Allow for automatic certification of businesses certified by
260260 the local government or nonprofit o rganization;
261261 2. Provide for the efficient updating of the Director's
262262 database containing information about historically underutil ized
263263 businesses and potential historically underutilized businesses; and
264264 3. Provide for a method by which the Director may efficiently
265265 communicate with business es certified by the local government or
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292292 nonprofit organization and provide those businesses wit h information
293293 about the state historically underutilized business program.
294294 D. A local government or a nonprofit organization that
295295 certifies historically underut ilized businesses, minority business
296296 enterprises, women's business enterprises, or disadvantage d business
297297 enterprises as defined in Section 1 of this act shall complete the
298298 certification of an applicant o r provide an applicant with written
299299 justification of the applicant's certification denial within the
300300 period established by the Director in its rules for certification
301301 activities.
302302 E. A local government or a nonprofit organization t hat
303303 certifies historically underutil ized businesses under subsection C
304304 of this section or that conducts a certification program described
305305 by and approved pursuant to subsection B of this section shall make
306306 available to the public an online searchable database containing
307307 information about historically underutilized businesses, m inority
308308 business enterprises, women 's business enterprises, and
309309 disadvantaged business enterprises certified by the loc al government
310310 or nonprofit organization, including:
311311 1. The name of the business;
312312 2. The contact person or owner of the business;
313313 3. The address and telephone number of the business;
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340340 4. The type or category of business, including rel evant
341341 capabilities of the business and the North American Industry
342342 Classification System codes for the busines s; and
343343 5. The expiration date of the business 's certification.
344344 SECTION 5. NEW LAW A new section of law to be codified
345345 in the Oklahoma Statute s as Section 84.5 of Title 74, unless there
346346 is created a duplication in numbering, reads as follows:
347347 A. The Director of the Office of Ma nagement and Enterprise
348348 Services shall seek the advice of the Governor, Legislature, and
349349 state agencies in identifying and developing opportunities for
350350 historically underutilized businesses.
351351 B. The Director shall offer historically underutilized
352352 businesses assistance and training regarding state procurement
353353 procedures.
354354 C. The Director shall advise historically underutili zed
355355 businesses of available state co ntracts and shall advise
356356 historically underutilized bu sinesses to apply for registration on
357357 the Director's master bidders list.
358358 D. The Director shall send historically underutili zed
359359 businesses an orientation package on certification or
360360 recertification. The package shall include:
361361 1. A certificate issued i n the historically underutilized
362362 business's name;
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389389 2. A description of the significance and value of
390390 certification;
391391 3. A list of state purchasing p ersonnel;
392392 4. Information regarding elec tronic commerce opportunities; and
393393 5. Additional information ab out the state procurement process.
394394 E. A state agency with a budget that exceeds Ten Million
395395 Dollars ($10,000,000.00) shall designate a staff member to serve as
396396 the historically underutilized businesses coordinator for the agency
397397 during the fiscal year. The procurement director may serve as the
398398 coordinator. In agencies that employ a historicall y underutilized
399399 businesses coordinator, the position of coor dinator, within the
400400 agency's structure, shall be at least equal to the position of
401401 procurement director . In addition to any other responsibilities,
402402 the coordinator shall:
403403 1. Coordinate training programs for the recruitment and
404404 retention of historically u nderutilized busines ses;
405405 2. Report required information to the Director; and
406406 3. Match historically underutilized businesses with key staff
407407 within the agency.
408408 SECTION 6. NEW LAW A new section of law to be codified
409409 in the Oklahoma Statutes as Section 84.6 of Title 74, unless there
410410 is created a duplication in numbering, reads as follows:
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437437 The Director of the Office of Management and Enterprise Services
438438 shall encourage state agencies to use historically underutilized
439439 businesses by:
440440 1. Working with state agencies to establish a statewide policy
441441 for increasing the use of historical ly underutilized businesses;
442442 2. Assisting state agencies in seeking historically
443443 underutilized businesses capable of supplying required goods or
444444 services;
445445 3. Assisting state agencies in identifying and advising
446446 historically underutilized businesses on the types of goods and
447447 services the agencies need; and
448448 4. Assisting state agencies in increasing the amount of
449449 business placed with historically underutil ized businesses.
450450 SECTION 7. NEW LAW A new section of law to be codified
451451 in the Oklahoma Statutes as Section 84.7 of Title 74, unless there
452452 is created a duplication in numbering, reads as follows:
453453 A. The Director of the Office of Managemen t and Enterprise
454454 Services shall compile, in the most cost -efficient form, a director y
455455 of businesses certified as historically underutilized businesses
456456 under Section 4 of this act.
457457 B. The Director, at least semiannually , shall update the
458458 directory and provide access to the di rectory electronically or in
459459 another form to each state agency.
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486486 C. Depending on the needs of a state agency, the Director shall
487487 provide access to the directory electronically or in another form.
488488 D. The Director shall provide a copy of the directory to every
489489 municipality in January and July of each year. On r equest, the
490490 Director shall make the directory available to other local
491491 governments and the public.
492492 E. A state agency, including the Director, shall use the
493493 directory in determinin g awards of state pu rchasing and public works
494494 contracts.
495495 SECTION 8. NEW LAW A new section of law to be codified
496496 in the Oklahoma Statu tes as Section 84.8 of Title 74, unless there
497497 is created a duplication in numbering, reads as follo ws:
498498 A. The Director of the Office of Management and Enterpris e
499499 Services shall design a mentor-protege program to foster long -term
500500 relationships between prim e contractors and historically
501501 underutilized businesses and to increase the ability of historically
502502 underutilized businesses to contract with the state or to rec eive
503503 subcontracts under a state contract. Each state agency with an
504504 appropriation that exceeds Ten Million Dollars ($10,000,000.00)
505505 shall implement the program designed by the Director.
506506 B. Participation in the pr ogram shall be voluntary for both the
507507 contractor and the histori cally underutilized business
508508 subcontractor.
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535535 SECTION 9. NEW LAW A new section of law to be codified
536536 in the Oklahoma Statutes as Section 84.9 of Title 74, unless there
537537 is created a duplicatio n in numbering, reads as follows:
538538 A. The Director of the Office of Management and Enterprise
539539 Services shall design a program of forums in which historically
540540 underutilized businesses are invited by state agencies to deliver
541541 technical and business presentat ions that demonstrate their
542542 capability to do business with the agency to:
543543 1. Senior managers and procurement person nel at state agencies
544544 that acquire goods and ser vices of a type supplied by the
545545 historically underutilized businesses; and
546546 2. Contractors with the state who may be subcontract ing for
547547 goods and services of a type supplied by the historically
548548 underutilized businesses.
549549 B. The forums shall be held at state agency offices.
550550 C. Each state agency with a n appropriation that exce eds Ten
551551 Million Dollars ($10,000,000.00) shall participate in the program by
552552 sending senior managers and procurement personnel to atte nd relevant
553553 presentations and by informing the agency 's contractors about
554554 presentations that may be relevant to anticipate d subcontracting
555555 opportunities.
556556 D. Each state agency that has a historically underutilized
557557 businesses coordinator shall:
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584584 1. Design its own program and model the program to the extent
585585 appropriate on the program dev eloped by the Director under this
586586 section; and
587587 2. Sponsor presentations b y historically underutilized
588588 businesses at the agency.
589589 E. The Director and each state agency that ha s a historically
590590 underutilized businesses coordinator shall aggressivel y identify and
591591 notify individual historically under utilized businesses regarding
592592 opportunities to make presentations regarding the types of goods and
593593 services supplied by the historica lly underutilized business and
594594 shall advertise in appropriate trade pub lications that target
595595 historically underutilized bus inesses regarding opportunities to
596596 make presentations.
597597 SECTION 10. NEW LAW A new section of law to be codifie d
598598 in the Oklahoma Statutes as Section 84.10 of Title 74, unless there
599599 is created a duplication in number ing, reads as follows:
600600 A. The Director of the Office of Management and Enterprise
601601 Services shall prepare a consolidated report that:
602602 1. Includes the number and dollar amount of contracts awarded
603603 and paid to historically underutilized businesses certified by the
604604 Director;
605605 2. Analyzes the relative level of opportunity f or historically
606606 underutilized businesses for various categories of acquired goods
607607 and services; and
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634634 3. Tracks, by vendor identification number and, to the extent
635635 allowed by federal law, by Social Security number, the graduation
636636 rates for historically und erutilized businesses that grew to exceed
637637 the size standards determined by the Director.
638638 B. Each state agency shall send to the Director information
639639 required by Section 11 of this act and other information required by
640640 the Director for the preparation of the Director's report not later
641641 than March 15 and September 15 of each year.
642642 C. The Director shall base its report on the compilation and
643643 analysis of reports received under subsection B of this section and
644644 other information maintained or received by the Director.
645645 D. The Director shall send to the presiding officer of each
646646 chamber of the Legislature:
647647 1. On May 15 of each year, a report on the previous six -month
648648 period; and
649649 2. On November 15 of each year, a repo rt on the preceding
650650 fiscal year.
651651 SECTION 11. NEW LAW A new section of law to be codified
652652 in the Oklahoma Stat utes as Section 84.11 of Title 74, unless there
653653 is created a duplication in numbering, reads as follows:
654654 A. To ensure accuracy in reporting, a state agency shall
655655 maintain and compile monthly information relating to the use by the
656656 agency and each of its op erating divisions of historically
657657 underutilized businesses, including information regarding
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684684 subcontractors and suppliers req uired by subsection B of this
685685 section.
686686 B. A contractor or supplier awarded a contract by a state
687687 agency shall report to the agency the identity of each historically
688688 underutilized business to whom the contractor or supplier awarded a
689689 subcontract for the pu rchase of goods or services.
690690 C. Each state agency shall report to the Director of the Office
691691 of Management and Enterprise Services the following information with
692692 regard to the expenditure of funds:
693693 1. The total dollar amount of purcha ses and payments mad e under
694694 contracts awarded to historic ally underutilized businesses;
695695 2. The number of businesses participating in any issuance of
696696 state bonds by the agency;
697697 3. The number of contracts awa rded to businesses with regard to
698698 the agency's acquisition, construc tion, or equipping of a facility
699699 or implementation of a program; and
700700 4. The number of bids, proposals, or other applicable
701701 expressions of interest made by historica lly underutilized
702702 businesses with regard to the agency 's acquisition, construction, or
703703 equipping of a facility or implementat ion of a program.
704704 D. A state agency participating in a group purchasing program
705705 shall send to the Director in the agency's report under Section 10
706706 of this act a separate list of purchases from historic ally
707707 underutilized businesses that are made through t he group purchasing
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734734 program, including the dollar amount of each purchase allocated to
735735 the reporting agency.
736736 E. A state agency's report is a record of the ag ency's
737737 purchases for which the agency selecte d the vendor. If th e vendor
738738 was selected by the Director as part of its state contract program,
739739 the Director shall include the purchase in the Director's report of
740740 its own purchases unless the Director made a sole source purchase
741741 for the agency pursuant to Section 85.44D1 of Title 74 of the
742742 Oklahoma Statutes. The state agency for which the purchase was made
743743 shall report the selection of the vendor on it s report as if the
744744 agency selected the vendor when the agency drew specifications for
745745 goods or services that are proprietary to one vendor.
746746 SECTION 12. NEW LAW A new section of law to be codified
747747 in the Oklahoma Statutes as Section 84.12 of Title 74, unless there
748748 is created a duplication in numbering, reads as follows:
749749 A. Each state agency shall have a strategic plan for increasing
750750 the agency's use of historically underutilized businesses in
751751 purchasing and public works contracting.
752752 B. The plan shall include:
753753 1. A policy or mission statement relating to increasing the use
754754 of historically underutilized bu sinesses by the state agen cy;
755755 2. Goals to be met by the agency in carrying out the policy or
756756 mission; and
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783783 3. Specific programs to be conducted by the agency to meet the
784784 goals stated in the plan, including a specific program to encoura ge
785785 contractors to use historically underuti lized businesses as partners
786786 and subcontractors.
787787 C. On request, the Director of the Office of Management and
788788 Enterprise Services shall provide technical assistance to a state
789789 agency that is preparing its plan.
790790 D. The Director and the state auditor and inspector shall
791791 cooperate to develop procedures providing for random periodic
792792 monitoring of state agency compli ance with this section. The state
793793 auditor shall report to the Director a state agency that is not
794794 complying with this secti on. In determining whether a state agency
795795 is making a good-faith effort to comply, the state auditor shall
796796 consider whether the age ncy:
797797 1. Has adopted rules pursuant to this act;
798798 2. Has used the Director's directory under Section 7 of this
799799 act and other resources to identify hi storically underutilized
800800 businesses that are able and available to contract with the agency;
801801 3. Made good-faith, timely efforts to contact identified
802802 historically underutiliz ed businesses regarding contracting
803803 opportunities;
804804 4. Conducted its procuremen t program in accordance with the
805805 good faith effort methodology ; and
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832832 5. Established goals for contract ing with historically
833833 underutilized businesses in each procurement category based on:
834834 a. scheduled fiscal year expenditures, and
835835 b. the availability of historically underutilized
836836 businesses in each category as determined by r ules
837837 adopted under Section 2 of this act.
838838 E. In conducting an audit of an agency's compliance with this
839839 section or an agency 's making of a good-faith effort to implement
840840 the plan adopted under this section, the state auditor and inspector
841841 shall consider the success or fail ure of the agency to contract with
842842 historically underutilized businesses in accordance with the
843843 agency's goals.
844844 F. If the state auditor and inspector reports to the Director
845845 that a state agency is not complying with this section, the Director
846846 shall assist the agency i n complying.
847847 SECTION 13. NEW LAW A new section of law to be codified
848848 in the Oklahoma Statutes as Section 84.13 of Title 74, unless there
849849 is created a duplication in numbering, reads as follows:
850850 A. Each state agency shall prepare a report for each fiscal
851851 year documenting progress under its plan to increase the use of
852852 historically underutilize d businesses.
853853 B. The Director of the Office of Management an d Enterprise
854854 Services shall develop a standard form for the report.
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881881 C. The state agency shall file the report with the Governor,
882882 Lieutenant Governor, the Speaker of the House of Representatives,
883883 and President Pro Tempore of the Senate not later than December 31
884884 of each year.
885885 SECTION 14. NEW LAW A new section of law to be codified
886886 in the Oklahoma Statutes as Section 84.14 of Title 74, unless there
887887 is created a duplication in numbering, reads as follows:
888888 The Director of the Office of Management and Enterprise
889889 Services, in cooperation with each state agency reporting u nder this
890890 act, shall categorize each historically underutilized business
891891 included in a report under this subch apter by sex, race, and
892892 ethnicity and by whether the business qualifies as a historicall y
893893 underutilized business because it is owned or owned, ope rated, and
894894 controlled, as applicable, wholly or partly by one or more veterans
895895 as defined by 38 U.S.C., Section 101(2) who have suffered at least a
896896 twenty percent (20%) service-connected disability as defined by 38
897897 U.S.C., Section 101(16).
898898 SECTION 15. NEW LAW A new section of law to be codified
899899 in the Oklahoma Stat utes as Section 84.15 of Title 74, unless there
900900 is created a duplication in numbering, reads as follows:
901901 Before October 15 of each year, the Director of the Office of
902902 Management and Enterprise Services shall report to the Governor, the
903903 Speaker of the Oklahoma House of Representatives, and the President
904904 Pro Tempore of the Senate on the education and training efforts that
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931931 the Director has made toward historically underutilized businesses.
932932 The report shall include the following as related to historically
933933 underutilized businesses:
934934 1. The Director's vision, mission, and philosophy;
935935 2. Marketing materials and other educational materials
936936 distributed by the Director;
937937 3. The Director's policy regarding education, outreach, and
938938 dissemination of information;
939939 4. Goals that the Director has attained during the fiscal year;
940940 5. The Director's goals, objectives, and expected outc ome
941941 measures for each outreach and education al event; and
942942 6. The Director's planned future initiatives on education and
943943 outreach.
944944 SECTION 16. NEW LAW A new section of law to be codified
945945 in the Oklahoma Statutes as Section 84.16 of Title 74, unless there
946946 is created a duplication in numbering , reads as follows:
947947 A. Each state agency shall include as part of its legislative
948948 appropriations request a det ailed report for consideration by the
949949 budget committees of the Legislature that show s the extent to which
950950 the agency complied with this act and rules promulgated by the
951951 Director of the Office of Management and Enterprise Services during
952952 the two (2) calendar years preceding the calendar year in which the
953953 request is submitted. To the extent th e state agency did not
954954 comply, the report shall demonstrate the reasons for that fact. The
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981981 extent to which a state agency complies with this act is considered
982982 a key performance measure for purposes of the appropriations
983983 process.
984984 B. The report shall include:
985985 1. The agency's goals established under Section 12 of this act
986986 for contracting with historically underutilized businesses during
987987 the two (2) calendar years preceding the calendar year in which the
988988 request is submitted;
989989 2. A statement regarding whether the goals established under
990990 Section 12 of this act were met during the two (2) calendar years
991991 preceding the calendar year in which the reques t is submitted; and
992992 3. If the goals established under Section 12 of this act were
993993 not met during the two (2) calendar years preceding the calendar
994994 year in which the requ est is submitted:
995995 a. a statement of the percentage by which the agency 's
996996 actual use of historically underutilized businesses
997997 deviated from the agency's goals, and
998998 b. an explanation of why the goals were not met.
999999 SECTION 17. NEW LAW A new section of law to be codified
10001000 in the Oklahoma Statutes as Section 84.17 of Title 74, unless there
10011001 is created a duplication in numbering, reads as follows:
10021002 A state agency shall make a good-faith effort to increase the
10031003 contract awards for the purchase o f goods or services that the
10041004 agency expects to make during a fiscal year to historical ly
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10311031 underutilized businesses based on rules adopted by the Director of
10321032 the Office of Management and Enterprise Ser vices.
10331033 SECTION 18. NEW LAW A new s ection of law to be codified
10341034 in the Oklahoma Statutes as Section 84.18 of Title 74, unless there
10351035 is created a duplication in numbering, reads as follows:
10361036 A state agency that contracts for a constru ction project shall
10371037 make a good-faith effort to increase th e construction contract
10381038 awards that the agency expects to make during a fiscal year t o
10391039 historically underutilized businesses based on rules adopted by the
10401040 Director of the Office of Management and Enterprise Services.
10411041 SECTION 19. NEW LAW A new section of law to be codified
10421042 in the Oklahoma Statutes as Section 84.19 of Title 74, unless there
10431043 is created a duplication in numbering, reads as follows:
10441044 A. Not later than the 60th day of its fiscal year, a state
10451045 agency shall:
10461046 1. Estimate the total value of contract awards the agency
10471047 expects to make for that fiscal year that a re subject to Section 17
10481048 of this act; and
10491049 2. Shall estimate the total value of contract awards the agenc y
10501050 expects to make for that fiscal year .
10511051 B. The state agency may r evise an estimate as new information
10521052 requires.
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10791079 SECTION 20. NEW LAW A new section of law to be codified
10801080 in the Oklahoma Statutes as Section 84.20 of Title 74, unless there
10811081 is created a duplication in numbering, reads as follows:
10821082 A person who:
10831083 1. Intentionally applies as a historically underutilized
10841084 business for an award of a purchasing contract or public works
10851085 contract under this subtitle; and
10861086 2. Knows the person is not a historically underutilized
10871087 business;
10881088 shall be guilty of a felony.
10891089 SECTION 21. NEW LAW A new section of law to be codified
10901090 in the Oklahoma Statutes as Section 84.21 of Title 74, unless there
10911091 is created a duplication in numbering, reads as follows:
10921092 A. This section applies to all contracts entere d into by a
10931093 state agency with an expected value of One Hundred Thousand Dollars
10941094 ($100,000.00) or more, including:
10951095 1. Contracts for the acquisition of a good or service; and
10961096 2. Contracts for or related to the construction of a public
10971097 building, road, or other public work.
10981098 B. This section applies to the contract without regard to:
10991099 1. Whether the contract is otherwise subject to this subtitle;
11001100 or
11011101 2. The source of funds for the contract, except that to the
11021102 extent federal funds are used to pay for the contr act, this
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11291129 subchapter does not apply if federal law prohibits the application
11301130 of this act in relation to the exp enditure of federal funds.
11311131 SECTION 22. NEW LAW A new section of law to be codified
11321132 in the Oklahoma Statutes as Section 84.22 of Title 74, unless there
11331133 is created a duplication in numbering, reads as f ollows:
11341134 A. Each state agency tha t considers entering into a contract
11351135 with an expected value of One Hundred Thousand Dollars ( $100,000.00)
11361136 or more shall, before the agency solici ts bids, proposals, offers,
11371137 or other applicable expressions of interest for th e contract,
11381138 determine whether the re will be subcontracting opportunities under
11391139 the contract. If the state ag ency determines that there is that
11401140 probability, the agency shall requ ire that each bid, proposal,
11411141 offer, or other applicable expression of interest for the contract
11421142 include a historically underutilized business subcontracting plan.
11431143 B. When a state agency requires a historically underutilized
11441144 business subcontracting plan un der subsection A of this section, a
11451145 bid, proposal, offer, or other applicable expression of interest for
11461146 the contract must contain a plan to be considered respon sive.
11471147 SECTION 23. NEW LAW A new section of law to be codified
11481148 in the Oklahoma Statutes as Section 84.23 of Title 74, unless there
11491149 is created a duplica tion in numbering, reads as follo ws:
11501150 A. When a state agency requires a historic ally underutilized
11511151 business subcontracting plan under Section 22 of this act, the
11521152 awarded contract shall contain, as a provision of the contract that
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11791179 must be fulfilled, the pla n that the contractor submitted i n its
11801180 bid, proposal, offer, or other applicable expression of interest for
11811181 the contract. The contractor shall make good -faith efforts to
11821182 implement the plan. A contractor 's participation in a mentor -
11831183 protege program under S ection 8 of this act and submission of a
11841184 protege as a subcontractor in the contr actor's historically
11851185 underutilized business subcontracting plan constitutes a good -faith
11861186 effort under this section for the particular area of the
11871187 subcontracting plan involving the protege.
11881188 B. To the extent that subcontracts are not contracted for as
11891189 originally submitted in the historically underutilized business
11901190 subcontracting plan, the contractor sha ll report to the state agency
11911191 all the circumstances that explain that fact and describe the good-
11921192 faith efforts made to find and subcontract with another hist orically
11931193 underutilized business.
11941194 C. The state agency shall audit the contractor 's compliance
11951195 with the historically underutilized business subcontracting plan.
11961196 In determining whether the contractor made the required good-faith
11971197 effort, the agency may not consider the success or failure of the
11981198 contractor to subcontract with historically underutilized bus inesses
11991199 in any specific quantity. The agency 's determination is restricted
12001200 to considering factors indicating good faith.
12011201 D. If a determination is made th at the contractor failed to
12021202 implement the plan in good faith, the agency, in addition to any
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12291229 other remedies, may bar the contractor from further contracting
12301230 opportunities with the agency.
12311231 SECTION 24. This act shall become effective November 1, 2022.
12321232
12331233 58-2-8877 LRB 01/14/22