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ENGROSSED SENATE AMENDMENTS
TO
ENGROSSED HOUSE
BILL NO. 4080 By: Wallace of the House
and
Leewright of the Senate
An Act relating to public buildings and public works;
amending *** contracting, and construction of public
buildings and works; *** requiring submission of
certain plans to certain authorities; *** modifying
the requirements for the execution of a contra ct;
regulating payment and partial payment; providing ***
defining emergency situations; amending 61 O.S. 2021,
Sections 202, 204, 207.2, 208, 208.1, 208.2, 209,
210, 211, *** contracts; updating references;
clarifying language *** 326, 327, 327.1, and 330.1,
*** repealing 61 O.S. 2021, Sections 103.8 and 129,
*** and providing an effective date.
AMENDMENT NO. 1. Page 24, line 1, delete, after the word
"electronically" and before the word " by", the
word "or" and insert the word "and"
AMENDMENT NO. 2 Page 24, line 6, delete, after the wor d "least"
and before the word "da ys", the words "ten (10)"
and restore the stricken words "twenty -one (21)"
AMENDMENT NO. 3. Page 25, line 22, delete, after the word " least"
and before the word "days", the words "ten (10)"
and restore the stricken words "twenty (20)"
AMENDMENT NO. 4. Page 63, line 4, delete, after the word
"publication" and before the word
"electronically", the comma and the word " either"
AMENDMENT NO. 5. Page 63, line 5, delete, after the word "website"
and before the word "in ", the word "or" and insert
the word "and"
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AMENDMENT NO. 6. Page 63, line 5, delete, after the word "i n" and
before the word "authorized", the words " a
newspaper" and restore the stricken words "two
newspapers"
AMENDMENT NO. 7. Page 63, lines 6-7, restore the stricken language
AMENDMENT NO. 8. Page 64, line 12, delete, after the word "da ys"
and before the word "electronically", the word
"either"
AMENDMENT NO. 9. Page 64, line 12, delete, after the word " website"
and before the word "in", the word "or" and insert
the word "and"
AMENDMENT NO. 10. Page 66, line 17, delete, after the word "weeks",
the word "either"
AMENDMENT NO. 11. Page 66, line 18, delete, after the word "website"
and before the word "in", the word " or" and insert
the word "and"
AMENDMENT NO. 12. Page 28, lines 15-23, strike subsections A and B
and delete all new language, and insert the
following:
"Bids whether submitted in paper or electronic
format shall be opened only at t he time and place
listed in the bidding documents. Paper bids shall
be opened in the presence of an administrative
officer of the awarding public agency and be read
aloud at the time of opening. S uch bid opening
shall be open to the publ ic and to all bidders.
Electronic bids shall not be viewable prior to the
time listed for bid opening in the biddin g
documents. Electronic bids may be opened in a
public bid opening in the same way as for paper
bids. A public bid opening is not required for
electronic bids if the awarding public a gency
electronically publishes the bids on its website
at time of bid opening."
and amend the title to conform
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Passed the Senate the 27th day of April, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of __________,
2022.
Presiding Officer of the House
of Representatives
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ENGROSSED HOUSE
BILL NO. 4080 By: Wallace of the House
and
Leewright of the Senate
An Act relating to public buildings and public works;
amending 61 O.S. 2021, Sections 1, 4, 6, 11, and 12,
which relate to the bonding, contracting , and
construction of public buildings and works ; modifying
construction bonds; regulating public contracts and
hours worked during a day; modifying preference
requirements for products produced in Oklahoma;
modifying requirements for accommodations for people
with disabilities; requiring submission of certain
plans to certain authorities; amending 61 O.S. 2021,
Sections 60, 61, 62, 62.2, 63, and 65, which relate
to construction management and consultant services;
regulating certain mandatory contract forms;
modifying definitions; eliminating references to the
Department of Real Estate Services and its Director;
regulating registration and selection of con struction
managers and consultants; amending requirements for
contracts for on-call minor services; providing for
what shall be considered state property; establishing
procedures for when an emergency exists; amending 61
O.S. 2021, Section 84, which relates to the Fair and
Open Competition in Governmental Construction Act;
modifying prohibited contract terms; amending 61 O.S.
2021, Sections 102, 103.4, 103.7, 104, 105, 106, 107,
109, 110, 112, 113, 113.1, 119.1, 121, and 130, which
relate to the Public Competitive Bidding A ct of 1974;
modifying definitions; modifying requirements for
school buildings and force account s; modifying
contract requirements relating to fish and wildlife
conservation; modifying required bids and bid
notices; modifying bid documents on file; regulating
late bids; providing exemptions for open bid
requirements; providing public inspection
requirement; modifying the requirements for the
execution of a contra ct; regulating payment and
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partial payment; providing for contract negotiations
when no bid is received; defining emergency
situations; amending 61 O.S. 2021, Sections 202, 204,
207.2, 208, 208.1, 208.2, 209, 210, 211, and 212,
which relate to the Public Facilities Act; modifying
definitions; providing for the reviewing and approval
of projects; modifying process for con tract approval;
allowing for fees; modifying the State Construction
Revolving Fund; establishing the nature of the fun d;
declaring funds appropriated; granting rulemaking
authority; allowing for performance-based efficiency
contracts; updating references; clarifying language;
amending 61 O.S. 2021, Section s 308, 309, 311, 312,
316, 317, 323, 324, 326, 327, 327 .1, and 330.1, which
relate to the management, maintenance, and disposal
of state property; clarifying language; increasing
options for providing certain notices; modifying
certain award standards; modifying deposit
destination of certain revenues; broadening scope of
certain exclusive control and jurisdiction; providing
for expanded severability treatment of provisions;
changing fund references; eliminating certain
exceptions; eliminating certain described properties
from certain defined description; modifying
expenditure purpose for certain funds; requiring
certain estimations and certain process related to
certain real property disposals; authorizing
electronic auctions; allowing the disposal of
property at estimated value und er certain conditions;
authorizing invitations for written proposals under
certain conditions; modifying proposal e valuation
criteria; modifying exemption for certain recording
fee; repealing 61 O.S. 2021, Sections 8, 9, 10, 14,
and 15, which relate to the bonding, contracting, and
construction of public buildings a nd works; repealing
61 O.S. 2021, Section 51, which relates to the
purchase of American goods and equipment; repealin g
61 O.S. 2021, Sections 103.8 and 129, which relate to
the Public Competitive Bidding Act of 1974; repealing
61 O.S. 2021, Section 203, which relates to the
Department of Real Estate Services ; repealing 61 O.S.
2021, Sections 315, 321, 329, 330, and 331, which
relate to the management, maintenance, and disposal
of state property; and providing an effective date.
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BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 61 O.S. 2021, Section 1, is
amended to read as follows:
Section 1. A. Prior to an award of a cont ract exceeding Fifty
Thousand Dollars ($50,000.00) One Hundred Thousand Dollars
($100,000.00) for construction or repair of a public or private
building, structure, or improvement on publi c real property, the
person that receives the award shall :
1. Furnish furnish a bond with good and sufficient sureties
payable to the state in a sum not less than the total sum of the
contract; or
2. Cause an irrevocable letter of credit, containing term s the
Office of Management and Enterprise Services prescribes, to be
issued for the benefit of the state by a financial institution
insured by the Federal Deposit Insurance Corporation in a sum not
less than the total sum of the contract.
B. The bond or irrevocable letter of credit shall ensure the
proper and prompt completion of the work in accordance with the
contract and shall ensure that the contractor shall pay all
indebtedness the contractor incu rs for the contractor's
subcontractors and all supplier s of labor, material, rental of
machinery or equipment, and rep air of and parts for equi pment the
contract requires the contractor to furnish.
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C. For a contract not exceeding Fifty Thousand Dollars
($50,000.00), in lieu of a bond or irrevocable letter of credit, the
contractor shall submit an affidavit of the payment of all
indebtedness incurred by the contractor , the contractor's
subcontractors, and all suppliers of labor, material, rented
machinery or equipment, and repair of and parts for equipment used
or consumed in the performance of the contract. The execution of
the affidavit with kn owledge that any of th e contents of the
affidavit are false, upon conviction, shall constitute perjury,
punishable as provided for by law.
SECTION 2. AMENDATORY 61 O.S. 2021, Section 4, is
amended to read as follows:
Section 4. All contracts hereafter made by or on behalf of the
state, or by or on behalf of any county, city, township, or ot her
municipality, with any corporation, person or perso ns, for the
performance of any public work, by or on behalf of the state or any
county, city, township, or other municipality, shall b e deemed and
considered as made upon the basis of eight (8) hours c onstituting a
day's work; and it shall be unlawful for such corporation, person or
persons, to require, aid, abet, assist, connive at, or permi t any
laborer, workman, mechanic, prison guard s, janitors in public
institutions, or other person to work more th an eight hours per
calendar day in doing such work, exc ept in cases and upon the
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conditions provided in the preceding section Section 3 of this
title.
Provided that the provisions of this a ct in regard to hours
worked per calendar day shall not apply to th e construction,
reconstruction, maintenance, or the pro duction of local materials
for: Highways, roads, streets, and all the structures and dr ainage
in connection therewith; sewer systems, waterworks systems, dams and
levees, canals, drainage ditches, air port grading, drainage,
surfacing, seeding and planting . Provided that the provisions of
this act will not prevent employees from drawing time and half for
those hours worked over forty (4 0) during any calendar week.
SECTION 3. AMENDATORY 61 O.S. 2021, Section 6, is
amended to read as follows:
Section 6. From and after the passage and approval of this ac t,
in In the construction of all public buildings er ected for the
state; for any county for educational, eleemosynary, penal or other
institution of the state, or for any county there of, where the
expense of construction is borne wholly or in part by the s tate, or
county, by appropriation, by the issuance o f bonds, or by taxation,
preference shall be given to materials mined, quarr ied, manufactured
or procured within the State of Oklah oma, provided that the same can
be procured at no greater expense than li ke material or materials of
equal quality from witho ut the state.
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SECTION 4. AMENDATORY 61 O.S. 2021, Section 11, is
amended to read as follows:
Section 11. A. Unless otherwise provided for by law, all plans
and specifications for the erection of public buildings by this
state, or any agency or political subdivision thereof, or for any
building erected through the use of public funds shall provide
facilities for the handicapped people with disabilities . Such
facilities shall conform with the c odes and standards adopted by the
State Fire Marshal and amended by the Division's Office's
promulgated rules. Elevators shall be constructed and installed in
said public buildings to the extent deemed feasible and financially
reasonable by the contractin g authority of the state or such
political subdivision. Said codes and standards shall be on file in
the Construction and Properties Division of the Office of Management
and Enterprise Services.
B. After May 24, 1973, any Any building or facility which w ould
have been subject to the provisions of this section but for the fact
that it was constructed prior to May 24 , 1973, shall be subject to
the requirements of this se ction if additions are made to such
building or facility in any twelve -month period which increase the
total floor area of such building or facility by twenty-five percent
(25%) or more or if alteratio ns or structural repairs are made to
such building or facility in any twelve-month period which affect
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twenty-five percent (25%) or more of the total floor area of such
building or facility.
SECTION 5. AMENDATORY 61 O.S. 2021, Sec tion 12, is
amended to read as follows:
Section 12. All plans and specifications for the erection of
public buildings subject to Section 11 of this title shall be
submitted prior to bidding and awarding of contract to the governing
body of the political e ntity controlling the funds involved State
Fire Marshal or other authority having jurisdiction. Such plans and
specifications shall be checked for compliance with Section 11 of
this title, and no construction contract for any public building
shall be awarded unless and until said plans and s pecifications are
approved as being in compliance with Section 11 of this title by the
appropriate governmental agency. If public buildings are to be
financed by state funds, the Construction and Properties Division of
the Office of Management and Enterpr ise Services shall approve said
plans and specifications. In the case of public buildings to be
financed by county funds or funds controlled by some other p olitical
subdivision of the state, the agency whose approval i s required
shall be the governing bod y of such subdivision.
SECTION 6. AMENDATORY 61 O.S. 2 021, Section 60, is
amended to read as follows:
Section 60. All state agencies, boards, commissions, offices,
institutions, and other gove rnmental bodies of this state, and all
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individuals representing such entities, except the Department of
Transportation, the Oklahoma Turnpike A uthority, the Oklahoma State
Regents for Higher Edu cation and its constituent institutions, and
the Commissioners of the Land Office and CompSource Oklahoma
provided CompSource Oklahoma is operating pursuant to a pilot
program authorized by Sections 3316 a nd 3317 of Title 74 of the
Oklahoma Statutes, shall use construction manager, consultant and
construction contrac t forms that the State Facilities Director of
the Department of Real Estate Services of the Office of Man agement
and Enterprise Services requir es to award and execute contracts for
designs to construct, renovate, alter, repair, maintain, or improve
real property or fixtures of real property of the state. The State
Facilities Director may authorize, in writin g, exceptions to the use
of construction manager, consultant and construction contract fo rms
for specific projects.
SECTION 7. AMENDATORY 61 O.S. 2021, Section 61, is
amended to read as follows:
Section 61. As used in Sections 61 through 65 of this title:
1. "Chief administrative officer" means an individual
responsible for directing the administration of a state agency. The
term does not mean one or all of the individuals that m ake policy
for a state agency;
2. "Construction manager " means an individual, firm,
corporation, association, partnership, copartnership, or any other
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legal entity on the Office of Management and Ente rprise Services
Construction and Properties (OMES -CAP) registration list and
possessing the qualifications to provide services of construction
management which include, but are not necessarily l imited to, design
review, scheduling, cost control, value engi neering,
constructability evaluation, preparation and c oordination of bid
packages, and construction administration;
3. "Consultant" means an individual or legal entity possessing
the qualifications to provide licensed architectural, registered
engineering, or registered land surveying services or other
individuals or legal entities possessing specialized credentials an d
qualifications as may be needed to evaluate, plan or design and/or
provide construction administration and/or construction inspection
services for any construction or a public work improvement project;
4. "Director" means the Director of the Office of M anagement
and Enterprise Services or a designee;
5. "Department" means the Department of Real Estate Services of
the Office of Management and Enterprise Services;
6. "Office" means the Office of Management and Enterprise
Services;
7. 6. "Project" means studies, evaluations, p lans or designs
for facility evaluations or public work improvements, except the
transportation facilities under the jurisdiction of the Department
of Transportation or the Oklahoma Turnpike Authority:
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a. to construct, renovate, a lter, repair, maintain, or
improve real property or fixtures of real property ,
and
b. that does not constitute "construction" as defined by
the Public Building Construction and Planning Act;
8. 7. "State agency" means an agency, office, officer, bureau,
board, counsel, court, comm ission, institution, unit, division, body
or house of the executive or judicial branches of state government,
whether elected or appointed, excluding only political sub divisions
of the state, the Oklahoma State Regents for Higher Education and
its constituent institutions and the Commissioners of the Land
Office; and
9. "Facilities Director" or "SFD" means the State Facilities
Director of the Department of Real Estate S ervices of the Office of
Management and Enterprise Services; a nd
10. 8. "Political subdivision" means any local governmental
body formed pursuant to the laws of this state, including, but not
limited to, school districts, career technology centers, cities ,
counties, public trusts, public authorities, commissions or other
local governmental b odies exercising their authority to contract
with construction managers and/or consultants. The term also means
any quasi-governmental and nongovernmental organization s contracting
with construction managers and/or consultants us ing public funds or
on behalf of a political subdivision.
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SECTION 8. AMENDATORY 61 O.S. 2021, Section 62, is
amended to read as follows:
Section 62. A. The Department of Real Estate Services of the
Office of Management and Enterprise Services shall ma intain a file
of all persons and entities interested i n and capable of performing
construction management and consul tant services for state agencies.
The file shall inclu de registration forms and information submit ted
by construction managers and consulta nts pursuant to rules
promulgated by the Office of Man agement and Enterprise Services.
Pursuant to rules promulgate d by the Office, the Department Office
shall determine whether a construction manager or consultant
qualifies for registration and shall not ify the construction manager
or consultant within twen ty (20) days of receipt of a request for
registration. Constr uction managers and consultants shall re -
register for each successive calendar year with the Department
Office.
B. The requisitioning state agency shall define the scope of a
proposed project. The scope shall identify project components,
phases and timetables and shall include detailed project
descriptions. The state agency may request the Department Office to
assist with scope development. The state agency shall send the
scope and a requisit ion for construction management or consult ant
services, signed by an authorized official, to the Department
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Office. The Department Office shall review the scope and approve it
before the state agency i ssues a solicitation.
C. The state agency shall issue a solicitation to construction
managers or consultants that are registered with the Department
Office and capable of providing the services the state agency
desires. The solicitation shall, at a minim um, contain:
1. Description and scope of the project;
2. Estimated construction cost or available funds, anticipat ed
starting date, and completion date the state agency desires for the
project;
3. Certification of funds available for the construction
manager or consultant fee, including federal, state or o ther
participation;
4. Closing date for construction manager or consultant to give
notice of interest to the state a gency; and
5. Additional data the state age ncy requires from the
construction manager or consultant. The closing date for submission
of construction manager or consultant notice of interest for
consideration shall be within thirty (30) days of the date o f the
notice the state agency issues.
D. After the closing date, the Department Office shall provide
information from the construction man agers' or consultants' files to
the state agency upon request. Should there be an inadequate
expression of interest in the project, the state agency and
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Department Office personnel shall confer to add construction
managers or consultants for consideration .
E. The state agency shall review the information the Department
Office provides and shall sele ct no less than thre e and no more than
five construction manage rs or consultants per contract for
interviews. The review shall include consideration of factor s from
the information the Department Office supplies including, but not
limited to:
1. Professional qualifications for the type of work
contemplated;
2. Capacity for completing the project in the sp ecified time
period; and
3. Past performance on projec ts of a similar nature.
F. The Department Office shall advise the state agency of the
methods to be used to co nduct an evaluation, interview, selection,
contract negotiation, and fee negotiation proce sses pursuant to
rules promulgated by the Office of Management and Enterprise
Services.
G. 1. Upon completion of co ntract negotiation with the highest
qualified construction manager or consultant, which contract s hall
include a fair and reasonable fee, t he Department Office shall
approve and award the contra ct.
2. If the Department Office and the first-choice construction
manager or consultant cannot reach an agreement, t he negotiations
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shall terminate and negotia tions with the second-choice construction
manager or consultant shall commence. If the Department Office and
the second-choice construction manager or consul tant cannot reach an
agreement, the negotiations shall terminate and negotiations with
the third-choice construction manager or consultant shall commence.
If the Department Office and the third-choice construction manager
or consultant cannot reach an agr eement, then all negotiations shall
terminate. Should the Department Office be unable to negotiate a
satisfactory contract with any of the three selected construction
managers or consultants, t he Department Office shall select
additional construction mana gers or consultants in order of their
competency and qualifications and shall continue negotiations in
accordance with the provisions of th is section until an agreement is
reached.
H. Any plans developed pursuant to the process for selection of
a contractor for construction of a facility authorized pursuant t o
Section 183 of Title 73 of the Oklahoma Statutes shall become the
property of the State of Oklahoma as a condition of the award of the
final contract for construction of the facility.
I. For all state agencies subject to the Public Facilities Act,
Sections 202 through 213 of this title, the Department Office shall
perform the necessary procurement actions on behalf of a
requisitioning agency as enumerated in subsections B through H of
this section:
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1. Determine or approve the agency 's scope of a project and
required services as provided in the P ublic Facilities Act;
2. Issue solicitations for construction manager and consultant
services;
3. Conduct evaluations, interviews, selection, contract
negotiation, and fee negotiation processes; and
4. Provide contract management services after award of a
construction management or consultant contract.
J. In the selection of a consultant, all pol itical subdivisions
of this state shall select a consultant ba sed upon the professional
qualifications and technical experience of the consultant. The
subdivision shall negotiate a contract with the h ighest qualified
consultant, provided that a fee can be negotiated that is fair and
reasonable to both parties. In t he event a reasonable fee cannot be
negotiated with the selected consultant, the subdivision may
negotiate with other consultants in order of their qualifications.
K. In the selection of a cons truction manager, all political
subdivisions of this state sha ll:
1. Extend consideration to construction managers f rom the file
maintained by the Department of Real Estate Services of the Office
of Management and Enterprise Services. Political subdivisi ons are
not limited in the number of construction manager cand idates from
whom they intend on seeking proposals;
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2. Evaluate the candidates' professional qualifications,
licensing, registration, certi fications, technical abilities and
past experience rele vant to the contemplated project. Only firms
recognized as qualified construction managers by the Department of
Real Estate Services of the Office of Managemen t and Enterprise
Services pursuant to thi s section may be considered for selection as
a construction manager. The subdivision shall use procedures as
described in this section and the Public Construction Manageme nt Act
for Political Subdivisions or may ad opt procedures established by
the Office of Management and Enterprise Services for state agencie s;
and
3. The political subdivision shall select a constructi on
manager based upon the professional qualifications a nd technical
experience of the construction manager. The political subdivision
shall negotiate a contract with the highest qualified const ruction
manager, provided that a fee can be negotiated that is fair and
reasonable to both parties. In the event a r easonable fee cannot be
negotiated with the selected construction manager, the polit ical
subdivision may negotiate with other construction managers in order
of their qualifications.
SECTION 9. AMENDATORY 61 O.S. 2021, Section 62.2 , is
amended to read as follows:
Section 62.2 The Construction and Properties Division of the
Office of Management and Enterprise Services may enter into
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contracts with construction managers and consu ltants registered with
the Division Office for the purpose of providing on-call minor
services to state agencies. The contracts shall provide for
services on an as-needed basis and shall not ex ceed One Hundred
Thousand Dollars ($100,000.00) per constructi on manager or
consultant during one (1) yea r. The requisitioning state agency
shall reimburse the Division be solely responsible for the fee of
the construction manager or consultant that provi des the services.
SECTION 10. AMENDATORY 61 O.S. 2021, Section 63, is
amended to read as f ollows:
Section 63. All drawings, plans, specifications, reports, and
models made by a construction manager or consultant for a state
agency shall be the property of this state, and shall be d elivered
to the Department of Real Estate Services of the Office of
Management and Enterprise Services. T he state agency shall file
such plans with the Department for inclusion in a library system to
be maintained by the Department. Any state agency shall have access
for review to any plans or specifications filed with the Department
state as directed by the terms of the contract.
SECTION 11. AMENDATORY 61 O.S. 2021, Section 65, is
amended to read as follows:
Section 65. A. In addition to the conditions prescribed
pursuant to subsections subsection C and D of this section, the
provisions of Section 62 of this tit le shall not apply whenever the
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Department of Real Estate Services of the Office of Management and
Enterprise Services with concu rrence of the chief administrative
officer of the publi c agency affected declares that an emergency
exists. The construction m anager or consultant shall be selected by
the State Facilities Director of the Department of Real Estate
Services of the Office of Management and Enterprise Services. The
resulting construction manager or consultant contract shall n ot
exceed Fifty Thousan d Dollars ($50,000.00). The reasons for the
emergency shall be recorded in the official records of the
Department Office.
B. Emergency as used in this section shall be limited to
conditions resulting from any of the following:
1. A sudden unexpected hap pening or unforeseen occurrence if it
is impossible for the provisions of Section 62 of this title to be
observed because of the time factor and if the public health or
safety is endangered; and
2. A condition or situation which, if allowed to continue,
would lead to economic loss to the state or to further damage of
state property.
C. The provisions of Section 62 of this title sh all not apply
to the process for construction of a corr ectional facility whenever
the State Board of Cor rections informs the Department Office that an
emergency condition threatens the security of the state correctional
system, including inmate population growth, and the condition
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requires expeditious treatmen t for the review, approval and bid
process as it relates to construction or expansion of correctional
facilities. The Department Office and the Department of Corrections
are authorized to implement an expedited competitive bid process for
the contracting of construction managers or consultants and
construction of new or expan ded correctional facilities that
adequately respond to the emergency. The State Board of Corrections
shall provide written notif ication to the Governor, the Speaker of
the House of Representatives and to the President Pro Tempore of the
Senate of the emergency conditions.
D. The provisions of Section 62 of this title shall not apply
to CompSource Oklahoma if CompSource Oklahoma is operating pursuant
to a pilot program authorized by Se ctions 3316 and 3317 of Title 74
of the Oklahoma Statutes.
SECTION 12. AMENDATORY 61 O.S. 2021, Section 84, is
amended to read as follows:
Section 84. A public agency shall no t award a grant, tax
abatement, or tax credit that is c onditioned upon a requirement that
the awardee include a term describ ed in Section 3 of the Fair and
Open Competition in Governmental Construction Act 83 of this title
in a contract document for any co nstruction, improvement,
maintenance, or renovation to real property or fixtures that are the
subject of the grant, tax abatement, or tax cre dit.
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SECTION 13. AMENDATORY 61 O.S. 2021, Section 102, is
amended to read as follows:
Section 102. As used in the Public Competitive Bidding Act of
1974:
1. "Administrator" means the State Construction Administrator
of the Construction and Properties Divisio n of the Office of
Management and Enterprise Services;
2. "Awarding public agency" means the public agen cy which
solicits and receives se aled bids on a particular public
construction contract;
3. 2. "Bidding documents" means the bid notice, instruction to
bidders, plans and specifications, bidding form, bidding
instructions, general conditions, special condi tions and all other
written instruments prepared by or on behalf of an awarding public
agency for use by prospective bid ders on a public construction
contract;
4. 3. "Chief administrative officer" means an individual
responsible for directing the administr ation of a public agency.
The term does not mean one or all of the individuals that make
policy for a public agency;
5. 4. "Construction management trade contract or su bcontract"
means any public construction contract exceeding Fifty Thousand
Dollars ($50,000.00) in amount that is awa rded as a trade contract
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in an agency construction management contract or awarded as a
subcontract in an at-risk construction management co ntract;
6. 5. "Public agency" means the State of Oklaho ma, and any
county, city, town, school district or other poli tical subdivision
of the state, any public trust, any public entity specifically
created by the statutes of the State of Oklahoma or as a result of
statutory authorization therefor, and any depar tment, agency, board,
bureau, commission, committee or author ity of any of the foregoing
public entities;
7. 6. "Public construction contract " or "contract" means any
contract, exceeding One Hundred Thousand Dollars ($100,000.00) in
amount, or any construc tion management trade contracts or
subcontracts exceeding Fifty Thousand Dollars ($50,000.00) in
amount, awarded by any public agency for the purpos e of making any
public improvements or constructing any public building or making
repairs to or performing m aintenance on the same except wh ere the
improvements, constr uction of any building or repairs to the same
are improvements or buildings leased to a person or other legal
entity exclusively for private and not for public use and no public
tax revenues shall be expended on or for the contr act unless the
public tax revenues used for the project are authorized by a
majority of the voters of the applicable public agency voting at an
election held for that purpose and the public tax revenues do not
exceed twenty-five percent (25%) of the total project cost. The
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amount of public tax dollars committed to the project will not
exceed a fixed amount established by resolution of the governing
body prior to or concurrent with approval of the project;
8. 7. "Public improvement" means any beneficial or valuable
change or addition, betterment, enhancement or amelioration of or
upon any real property, or interest ther ein, belonging to a public
agency, intended to enhance its value, beauty or utility or to adapt
it to new or further purposes. The term does not include the direct
purchase of materials, equipment or supplies by a public agency, or
any personal property, including property as defined in p aragraphs 1
and 4 of subsection B of Section 430.1 of Title 62 of the Oklah oma
Statutes;
9. 8. "Purchasing cooperative" means an association of public
entities working together to provide leverage in achieving best
value and/or the best terms in contracts awarded through a
competitive bidding process; and
10. 9. "Retainage" means the difference between the amount
earned by the contractor on a public construction contract, with the
work being accepted by the public agency, and the amount paid on
said contract by the public agency.
SECTION 14. AMENDATORY 61 O. S. 2021, Section 103.4, is
amended to read as follows:
Section 103.4 Nothing in the Public Com petitive Bidding Act of
1974 shall be construed to prohibit a school district from e recting
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a building or making improvements on a force accoun t basis.
Contracts between a state agency and a school distri ct for the
purpose of emergency asbestos abatement shall be exempt from the
provisions of the Publi c Competitive Bidding Act of 1974.
SECTION 15. AMENDATORY 61 O.S. 2021, Section 103.7, i s
amended to read as follows:
Section 103.7 For purposes of the provisions of the Public
Competitive Bidding Act o f 1974, contracts ente red into solely for
projects and activitie s by the Oklahoma Department of Wildlife
Conservation relating to fish and wildlife conservation shall be let
and awarded using the competitive bidding process as set forth in
the Public Competitive Bidding Act of 1974. However, for contracts
of Fifty Thousand Dollars ($50,000.00) or less not exceeding One
Hundred Thousand Dollars ($100,000.00), the Department may
administer the competitive bidding process and let and award the
contract itself rathe r than the Construction and Properties Division
of the Office of Management and Enterprise Services.
SECTION 16. AMENDATORY 61 O.S. 2021, Section 104, is
amended to read as follows:
Section 104. All proposals to award publi c construction
contracts shall be made equally and uniformly known by t he awarding
public agency to all prospective bidders and the public in the
following manner:
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1. Notice thereof shall be given by electronically or by
publication in a newspaper of gene ral circulation and published in
the county where the work, or the majo r part of it, is to be done,
such notice by publication to be published in two consecutive weekly
issues of the newspaper, with the first publication thereof to be at
least twenty-one (21) ten (10) days prior to the date set for
opening bids; and
2. Notice thereof shall be sent to one in-state trade or
construction publicati on for their use and information whenever the
estimated cost of the public construction contract exceeds One
Hundred Thousand Dollars ($100,000 .00) or the cost of the
construction management trade contract or subcontract exceeds Fifty
Thousand Dollars ($50 ,000.00); provided, however, this section shall
not be construed to require the publication of the notice in such
trade or construction publica tion or the requirement to provide the
notice to more than one in-state trade or construction publication
or to any out-of-state trade or construction publications.
SECTION 17. AMENDATORY 61 O.S. 2021, Section 105, is
amended to read as follows:
Section 105. All bid notices shall set forth the following
information:
1. The character of t he proposed public construction contract
in sufficient details that all bidders shall know exactly what their
obligation will be, either in the bid notice itself or by reference
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to bidding documents on file in the main office of the awarding
public agency available to the public ; and
2. The name of the officer, agent or employee of the awarding
public agency and the office location and address of s uch person,
from whom a complete set of bi dding documents regarding such
proposed contract may be obtained, to gether with the amount of the
cost deposit required therefor, if any; and
3. The date, time and place of opening of the sealed bids
either in person or electronically; and
4. The name and office location and address of the office of
the awarding public agency to whom the sealed bids should be
submitted or information sufficient to enable a bid to be submitted
electronically; and
5. Any additional information regarding such proposed cont ract
deemed by the awarding public agency to be of beneficial intere st to
prospective bidders or the public.
SECTION 18. AMENDATORY 61 O.S. 2021, Sect ion 106, is
amended to read as follows:
Section 106. At least one complete set of Complete bidding
documents regarding a proposed public construction co ntract shall be
on file in the main office of the awarding public agency available
to the public at least twenty (20) ten (10) days prior to the date
set for opening bids. The officer, agent or employee of the
awarding public agency designated in the bid notice shall have a
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sufficient number of complete sets of said bidding documents and
shall provide a complete set of same to any pr ospective bidder, upon
request; provided, however, th at the awarding public agency, or its
agent, may require a reasonable de posit for each such set of bidding
documents; provided, that such deposit shall not exceed the actual
cost of duplicating or printi ng. The public agency, or its agent,
may retain all or part of said deposit if so stated in the notice
for bids.
SECTION 19. AMENDATORY 61 O.S. 2021, Secti on 107, is
amended to read as follows:
Section 107. A. A bidder on a public constructi on contract
exceeding One Hundred Thousand Dollars ($100,000.00) or a
construction management trade contract or subcontract exceeding
Fifty Thousand Dollars ($50,000.00) shall accompany the bid with:
1. A certified check, cashier's check or bid bond equal to five
percent (5%) of the bid, which s hall be deposited with the awarding
public agency as a guaranty; or
2. An irrevocable letter of credit containing terms the
Construction and Properties Division of the Office of Management and
Enterprise Services p rescribes, issued by a financial institut ion
insured by the Federal Deposit Insurance Corporation or the Federa l
Savings and Loan Insurance Corpo ration for the benefit of the state,
on behalf of the awarding pu blic agency, in an amount equal to five
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percent (5%) of the bid. The awarding public a gency shall deposit
the irrevocable letter of credit with the Division Office.
B. The cost of republica tion of the notice to bidders, actual
expenses incurred by reason of the bidder's default and the
difference between the low bid of the defaulting bidde r and the
amount of the bid of the bidder to whom the contract is subs equently
awarded, but not to excee d the amount of the certified check,
cashier's check, bid bond or irrevocable letter of credit may, at
the discretion of the awarding public agency, be forfeited to the
awarding public agency in the event the apparently su ccessful bidder
fails to execute the contract or fails to provide the required bonds
or irrevocable letters of credit and insurance to the awardi ng
public agency.
C. The public agency shall, upon receipt of notice from the
awarding public agency, return a certified or cashier's check, bid
bond, or irrevocable letter of credit to the successful bidder o n
execution and delivery of the contract and r equired bonds or
irrevocable letters of c redit and insurance. Checks of unsuccessful
bidders shall be returned to them in accordance with the te rms of
the bid solicitation.
D. Nothing contained herein shall b e construed so as to prevent
the awarding public agency or the courts from exonerating the bidder
and other parties to the bid security document from liabili ty upon a
timely showing that the bidder committed what the courts have
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determined under the common law to be an excusable bidding error and
for that reason it would not be equitable to enforce the bid
security.
SECTION 20. AMENDATORY 61 O.S. 2021, Section 109, is
amended to read as follows:
Section 109. Any bid received by the awarding public agency or
an officer or employee thereof, more than ninet y-six (96) hours
excluding Saturdays, Sundays and holidays before the time set for
the opening of bids, or any bid so received after the time set for
opening of bids, shall not be opened or considered by the awar ding
public agency and shall be returned uno pened to the bidder
submitting same.
SECTION 21. AMENDATORY 61 O.S. 2021, Section 110, is
amended to read as follow s:
Section 110. A. Except as provided by subsection B of this
section, all bids shall be sealed and opened only at the time and
place mentioned in the bidding documents, and read aloud in the
presence of an administrative officer of the award ing public agency.
Such bid opening shall be open to the public and to all bidders.
B. The Oklahoma Department of Transportation and the Ok lahoma
Turnpike Authority A public agency shall be exempt from the
requirements provided in subsection A of this se ction, if the agency
electronically publishes the bids on the website of the agency.
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SECTION 22. AMENDATORY 61 O.S. 2021, Section 112, is
amended to read as follows:
Section 112. All bids, both successful and unsucces sful, and
all contracts and required bonds shall be placed on file and
maintained in the main office of by the awarding public agency for a
period of five (5) years from the date of opening of bids or for a
period of three (3) years from the date of comple tion of the
contract, whichever is longer, and shall be open to public
inspection and shall be matters of public record.
SECTION 23. AMENDATORY 61 O.S. 2021, Section 113, is
amended to read as follows:
Section 113. A. Except as otherwise provided by law, within
the period of time, not to exceed sixty (60) days, specified in the
bid notice by the awarding public agency, a contract embodying the
terms set forth in the bidding documents shall be executed by the
awarding public agency or, where construction m anagement at-risk is
the project delivery method, by the construction manager an d the
successful bidder. No bidder shall obtain any property right in a
contract awarded under the provisions of the Public Competitive
Bidding Act of 1974 until the contract has been fully executed by
both the bidder and the awarding public agency.
B. Except as otherwise provided by law, within the p eriod of
time specified in subsection A of this section, the following shall
be provided by the contractor to the awarding publi c agency for
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public construction contracts exceeding One Hundred Thousand Dollar s
($100,000.00) or construction management trade contracts or
subcontracts exceeding Fifty Thousand Dollars ($50,000.00):
1. A bond or irrevocable letter of credit complying with the
provisions of Section 1 of this title;
2. A bond in a sum equal to the contract price, with adequate
surety, or an irrevocable letter of credit containing terms
prescribed by the Construction and Properties Division of the Office
of Management and Enterprise Services issued by a financial
institution insured by the Federal De posit Insurance Corporation or
the Federal Savings and Loan Insurance Corporation for the benefit
of the state, on behalf of the awarding public agency, in a sum
equal to the contract price, to ensure the proper and prompt
completion of the work in accorda nce with the provisions of the
contract and bidding documents;
3. A bond in a sum equal to the contract price or an
irrevocable letter of credit containing terms as prescribed by the
Division issued by a financial institution insured by the Federal
Deposit Insurance Corporation or the Federal Savings a nd Loan
Insurance Corporation for the benefit of the state, on behalf of the
awarding public agency, in a sum equal to the contr act price, to
protect the awarding public agency against defective workmanship a nd
materials for a period of one (1) year after acceptance of the
project, except when the awarding public agency is the Department of
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Transportation or the Oklahoma Turnpike A uthority, in such case the
period shall be for one (1) year after project comple tion; and
4. Public liability and workers ' compensation insurance during
construction in reasonable amounts. A public agency may require the
contractor to name the public age ncy and its architects or
engineers, or both, as an additional assured under the public
liability insurance, which requirement, if made, shall be
specifically set forth in the bidding documents.
C. A single irrevocable letter of credit may be used to sati sfy
paragraphs 1, 2 and 3 of subsection B of this section, provided such
single irrevocable letter of credit meets all applicabl e
requirements of subsection B of this section.
If the contractor needs additional time in which to obtain the
bond required pursuant to subsection B of this section, the
contractor may request and the awardi ng agency may allow the
contractor an additional sixty (60) days in which to obtain the
bond.
D. 1. After the award of a contract, but prior to its
execution, an awarding pub lic agency, upon discovery of an
administrative error in the award process that would void an
otherwise valid award, may suspend the time of execution of the
contract. The agency may rescind the award and readvertise for
bids, or may direct correction of the error and award the contract
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to the lowest responsible bidder, whichever sha ll be in the best
interests of the state.
2. If the awarding public agency has a governing body, the
agency shall, at the next regularly scheduled public business
meeting of the governing body of the agency, upon the record,
present to the governing body that an error has been made in the
award process and shall state the nature of the error. The
governing body, upon presentation of the facts of the error, may
rescind the award and readvertise for bids, or may direct correction
of the error and award the contract to the lowest responsible
bidder, whichever shall be in the best interests of the state.
E. No public agency shall require for any public construction
project, nor shall any general contractor submit a project bid based
on acquiring or participat ing in, any wrap-up, wrap-around, or
controlled insurance program. For the purposes of this subsectio n,
"wrap-up, wrap-around, or controlled insurance program " means any
insurance program that has the effect of disabling or rendering
inapplicable any work ers' compensation, commercial general
liability, builders' risk, completed operations, or excess liabi lity
insurance coverage carried by a subcontractor that is engaged or to
be engaged on a public construction project unless this is a cost
savings to the public or the need exists for a specialized or
complex insurance program and shall not apply to contracts less than
Seventy-five Million Dollars ($75,000,000.00).
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F. This act shall not apply to the public construction projects
of constitutional agencies w hich had authorized a wrap-up, wrap-
around, or controlled insurance program on or before April 11, 200 0.
SECTION 24. AMENDATORY 61 O.S. 2021, Section 1 13.1, is
amended to read as follows:
Section 113.1 A. A public construction contract s hall provide
for partial payment based up on work completed. The contract shall
provide that up to five percent ( 5%) of all partial payments made
shall be withheld as r etainage until the project is fifty percent
(50%) complete as determined by the awarding agency. When the
awarding public agency determines that the project is at least fifty
percent (50%) complete, the retainage amount shall be two and one -
half percent (2.5%) with respect to the balance of the work.
B. The Department of Transportation or t he Oklahoma Turnpike
Authority shall not withhold r etainage on public construction
contracts awarded by the Department or the Authority.
C. The Department of Transport ation shall not withhold
retainage or require any bond on projects awarded to railroads on
the railroad's privately owned or operated rail property.
SECTION 25. AMENDATORY 61 O .S. 2021, Section 119.1, is
amended to read as follows:
Section 119.1 A. If no timely bid is received after bid
notices have been published on any proposed public construct ion
contract which does not exceed One Hundred Thousand Dollars
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($100,000.00) or on any proposed construction management trade
contract or subcontract which does not exceed Fifty Thousand Dollars
($50,000.00):
1. The governing body of a county, city, tow n or school
district may direct its employees or agents to negotiate the
contract with a prospective contractor; or
2. The state agency, as defined in Section 202 of this title,
shall request the State Construction Administrator of the
Construction and Properties Division Office of Management and
Enterprise Services to negotiate a contr act on its behalf.
B. The amount of a public construction contract which may be
awarded by the governing body pursuant to th is section shall not
exceed One Hundred Thousand Dollars ($100,000.00 ), nor shall the
amount of a construction management trade con tract or subcontract
awarded by the governin g body pursuant to this section exceed Fifty
Thousand Dollars ($50,000.00) , and the work to be performed shall be
as specified in the initial bidding documents. The contract shall
be executed within six (6) mont hs after the date initially set for
opening of bids. The contract and contract procedure shal l conform
to all other applicab le provisions of the Public Competitive Bidding
Act of 1974.
SECTION 26. AMENDATORY 61 O.S. 2021, Section 121, is
amended to read as follows:
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Section 121. A. Change orders or addenda to public
construction contracts of One Million Dollars ($1,000, 000.00) or
less shall not exceed a fifteen percent (15%) cumulative increase in
the original contract amount.
B. Change orders or addenda to public construction contra cts of
over One Million Dollars ($1,000,000.00) shall not exceed the
greater of One Hundred Fifty Thousand Dollars ($150,000.00) or a ten
percent (10%) cumulative increase in the original contract amount.
C. Change orders or cumulative change orders which exceed the
limits of subsection A or B of this section shall require a
readvertising for bids on the incomplete portions of the contract.
D. If the awarding public agency does not have a governing
body, the chief administrative officer of the awarding pu blic agency
shall approve change orders. The State Construction Administrator
of the Construction and Properties Division Director of the Office
of Management and Enterprise Services, or the Administrator's
Director's designee, shall sign and execute all contracts and change
orders, as they relate to state agencies.
E. If the awarding publi c agency has a governing body, all
change orders shall be formally approved by the governing body of
the awarding public agency and the reasons for approval recorded in
the permanent records of the governing body. The governing body of
a municipality or technology center may delegate approval of change
orders up to Forty Thousand Dollars ($40,000.00) or ten perc ent
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(10%) of any contract, whichev er is less, to the chief
administrative officer of the municipality or technology center or
their designee, with any approved change orders reported to the
governing body at the next regularly scheduled meeting.
F. The Oklahoma Veterans Commission, as the governing body of
the Oklahoma Department of Veterans Affairs, is authorized to
delegate to the Director of the agency the authority to approve
change orders on a construction contract provided that the
individual change order does not exceed Forty Thousa nd Dollars
($40,000.00) in expenditure, and complies with the limits
established by this section. Change orders approved by the Director
pursuant to a delegation o f authority shall be presented to the
Commission during th e next regular meeting and the rea sons for the
orders recorded in permanent records.
G. The governing body of the Oklahoma Tourism and Recreation
Department is authorized, upon approval of a majori ty of all of the
members of the Oklahoma Tourism and Recre ation Commission, to
delegate to the Director of the agency the authority to approve
change orders on a construction contract provided that the
individual change order does not exceed Twenty -five Thousand Dollars
($25,000.00) in expenditure and complies wi th the limits established
by this section. The Administrator of the Division Director of the
Office shall sign and execute all contracts and chang e orders.
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H. The Transportation Comm ission may, by rule, authorize the
Director of the Department of Transportation to approve change
orders in an amount of not to e xceed Five Hundred Thousand Dollars
($500,000.00). Change orders approved by the Director shall be
presented to the Transporta tion Commission during the next regular
meeting and the reasons therefor recorded in the permanent records.
The Oklahoma Turnpik e Authority may authorize the Director of the
Authority to approve change orders in an amo unt not to exceed Two
Hundred Fifty Thousand Dollars ($250,000.00). Change orders
approved by the Director of the Authority shall be presented to the
Authority during the next regular meeting and the reasons for the
orders recorded in permanent records.
I. All change orders for the Departme nt of Transportation or
the Authority shall contain a unit price and total for each of the
following items:
1. All materials wit h cost per item;
2. Itemization of all labor with n umber of hours per operation
and cost per hour;
3. Itemization of all equi pment with the type of equipment,
number of each type, cost per hour for each type, and number of
hours of actual operation for e ach type;
4. Itemization of insurance cost, bond co st, Social Security,
taxes, workers' compensation, employee fringe benefits and overhead
cost; and
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5. Profit for the contractor.
J. 1. If a construction contract contains unit pricing, and
the change order pertains to the unit price, the change order wi ll
not be subject to subsection A or B of this section.
2. When the unit price change does not exceed Twenty Thousand
Dollars ($20,000.00), the unit price change order computation may be
based on an acceptable unit price basis in lieu of cost itemization
as required in paragraphs 1, 2, 3, 4 a nd 5 of subsection I of this
section.
3. When the unit price change exceeds Twenty Thousand Dollars
($20,000.00), any unit price for a new item established at or bel ow
the average eighteen-month-price history for the new item may be
used in lieu of cost i temization as required in paragraphs 1, 2, 3,
4 and 5 of subsection I of this section.
K. Alternates or add items bid with the original bid and
contained in the awar ded contract as options of the awarding public
agency shall not be construed as change ord ers under the provisions
of the Public Competitive Bidding Act of 1974.
L. Where construction management at-risk is the project
delivery method, the limits establish ed by subsections A and B of
this section shall be b ased upon the total cost of the projec t
rather than the cost of the individ ual trade contracts.
SECTION 27. AMENDATORY 61 O.S. 2021, Section 130, is
amended to read as follows:
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Section 130. A. The provisions of the Public Competitive
Bidding Act of 1974 with reference to notice and bids shall not
apply to an emergenc y if:
1. The governing body of a public agency declares by a two-
thirds (2/3) majority vote of all of the members of the governing
body that an emergency exists;
2. The Transportation Commission and the Oklahoma Tourism and
Recreation Commission, by majo rity vote of all the members of each
Commission, declare that an emergency exists; or
3. The chief administrative officer of a public agency without
a governing body declares that an emergency exists.
B. The governing body of a publi c agency may, upon ap proval of
two-thirds (2/3) majority of all of the members of the governing
body, delegate to the chief administrative officer of a public
agency the authority to declare an emergenc y whereby the provisions
of the Public Competitive Bid ding Act of 1974 with reference to
notice and bids shall not apply to contracts less than One Hundred
Fifty Thousand Dollars ($150,000.00) in amount; provided, such
authority of the Department of Transp ortation and the Oklahoma
Turnpike Authority shall not extend to any contra ct exceeding Seven
Hundred Fifty Thousand Dollars ($750,000.00) in amount and such
authority of the Dep artment of Corrections shall not extend to any
contract exceeding Two Hundred Fifty Thousand Dollars ($250,000.00)
in amount for situations in which the emergency impacts the
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conditions of confinement, health and safety of correctional
officers and inmates in the custody of the Department of
Corrections.
C. Upon approval of a two -thirds (2/3) majority vote, the
Oklahoma Conservation C ommission may delegat e to the Executive
Director the authority to declare an emergency and set a monetary
limit for the declaration. The provisions of this subsection may
only be used for the purpose o f responding to an emergency involving
the reclamation of abandoned coal mi nes or the repair of damaged
upstream floodwater retarding structures.
D. An emergency declared by the Board of Corrections pursuant
to subsection C of Section 65 of this title sha ll exempt the
Department of Corrections from the limit s which would otherwi se be
imposed pursuant to subsection B of this section for the contracting
and construction of new or e xpanded correctional facilities.
E. The chief administrative officer of a pub lic agency with a
governing body shall notify the gove rning body within ten (10) days
of the declaration of an emergency if the governing body did not
approve the emergency . The notification shall contain a statement
of the reasons for the action, and sha ll be recorded in the official
minutes of the governin g body.
F. Emergency as used in this section shall be limited to
conditions resulting from a sudden unexpected happening or
unforeseen occurrence or condition whereby the public health or
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safety is endangered or further damage to state property is likely
if the situation is not addressed promptly.
G. The chief administrative officer of a public agency shall
report an emergency within ten ( 10) days of the emergency
declaration and include the official min utes of the governing body
of the public agency, if ap plicable, to the State Construction
Administrator of the Construction and Properties Division of the
Office of Management and Enterprise Services who which shall compile
an annual report detailing all emergen cies declared pursuant to this
section during the prev ious calendar year. The report shall be
submitted to the Governor, the President Pro Tempore of the Senate,
and the Speaker of th e House of Representatives upon request.
H. The Risk Management Adminis trator of the Office of
Management and Enterprise Services may declare an emergency on
behalf of a public agency when an insurable loss has occurred which
would lead to further economic loss or additional property damage if
not addressed promptly. Such declaration shall not relieve the
public agency of fiscal responsibility for its deductible, uninsured
losses, and other related expenses.
SECTION 28. AMENDATORY 61 O.S. 2021, Section 202, is
amended to read as follows:
Section 202. As used in the Public Facilities Act:
1. "Annual capital plan" means the collective state facility
capital improvements, facility operations and maintenance, rent and
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lease payments, facility debt services, water, sewer and energ y
utilities and real property transaction s approved by the Legislature
in a capital budget relative to state construction, maintenance, and
real estate services;
2. "Capital planning and asset management " means the processes
delegated to the Department of Real Estate Services for real
property data acquisition, data analysis and de termination of
capital construction projects and procurement related to real
property;
3. "Construction" means the process of plan ning, acquiring,
designing, building, equipping , altering, repairing, improving,
maintaining, leasing, disposing or demolishi ng any structure or
appurtenance thereto including facilities, utilities, or other
improvements to any real property but not includ ing highways,
bridges, airports, railroads, tun nels, sewers not related to a
structure or appurtenance thereto, or dams;
4. "Construction administration" means a series of actions
required of the State Facilities Director, of Office of Management
and Enterprise Services or other state agency employees, o r, under a
construction administration contract or contract provision, to
ensure the full, timely, and proper performance of all phases of a
construction project by all contractors, suppliers, and other
persons having responsibility for project work and an y guarantees or
warranties pertaining thereto;
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5. "Department" means the Department of Real Estate Services of
the Office of Management and Enterprise Services;
6. "Construction management " means a project delivery method
based on an agreement whereby the owner acquires from a constructio n
entity a series of services that inclu de, but are not necessarily
limited to, design review, scheduling, cost control, value
engineering, constructability evaluation, preparation and
coordination of bid packages, and construction administration;
"construction management" includes:
a. "agency construction management" whereby the
construction entity provides services to the owner
without taking on financial risks for the execution of
the actual construction or time of p erformance, and
the owner contracts di rectly with those awarded trade
contracts for the work, and
b. "at-risk construction management" whereby the
construction entity, after providing agency services
during the pre-construction period:
(1) takes on the financial obligation to timely carry
out construction under a specified cost
agreement, and
(2) enters into written subcontracts for the work in
accordance with the construction management
procedures for state agencies;
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7. 6. "Consultant" means an individual or legal entity
possessing the qualif ications to provide licensed architectur al,
registered engineering, registered land surveying, certified
appraisal, land title, or abstract services or possessing
specialized credentials and qualifications as may be ne eded to
evaluate, plan or design for a ny construction or public work
improvement project, or to lease, acquire or dispose of state-owned
real property;
8. "Division" means the Construction and Properties D ivision of
the Office of Management and Enterprise Services;
9. 7. "Energy performance index or indices" (EPI) means a
number describing the energy requirements at the building boundary
of a structure, per square foot of floor space or per cubic foot of
occupied volume, as appropriate under defined inter nal and external
ambient conditions ov er an entire seasonal cycle. As experie nce
develops on the energy performance achieved with state construction,
the indices (EPI) will serve as a measure of structure performance
with respect to energy consumption;
10. "Facilities Director" or "SFD" means the State Facilities
Director of the Department of Real Estate Services of the Office of
Management and Enterprise Services;
11. 8. "Life cycle costs" means the cost of owning, operating,
and maintaining the structu re over the life of the structure. Th is
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may be expressed as an annual cost for each year of the facility's
use;
12. 9. "Office" means the Office of Management and Enterprise
Services;
13. 10. "Procurement" means buying, purchasing, renting,
leasing, allocating, trading or otherwise acquirin g or disposing of
supplies, services, or construction necessary to evaluate, plan,
construct, manage, operate and preserve real property capital
assets;
14. 11. "Public improvement" means any beneficial or valuable
change or addition, betterment, enhancem ent or amelioration of or
upon any real property, or interest therein, belonging to a state
agency and the State of Oklahoma, intended to enhance its value,
beauty or utility or to adapt it to new or further purposes. The
term does not include the direct purchase of materials used for
general repairs and maintenance to state facilities;
15. 12. "Shared savings financing" means the financing of
energy conservation measu res and maintenance services through a
private firm which may own any purchased equipmen t for the duration
of a contract. Such contract shall specify that the private firm
will be recompensed either out of a negotiated portion of the
savings resulting fro m the conservation measures and maintenance
services provided by the private firm or, in the case of a
cogeneration project, through the payment of a rate for energy lower
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than would otherwise have been paid for the same energy from current
sources; and
16. 13. "State agency" means an agency, board, com mission,
counsel, court, office, office r, bureau, institution, unit,
division, body, or house of the executive or judicial branches of
government of this state, whether elected or appointed, excluding
only political subdivisions, the Oklahoma State Regents for Higher
Education and its constitue nt institutions and the Commissioners o f
the Land Office.
SECTION 29. AMENDATORY 61 O.S. 2021, Section 204, is
amended to read as follows:
Section 204. A. The Department of Real Estate Services Office
of Management and Enterpri se Services shall:
1. Maintain a comprehensive maste r plan for utilization and
construction of state buildings, capital improvements, and
utilization of land owned by th is state. Requirements of the master
planning process shall include:
a. reporting by each state agency concerning facility
needs,
b. data acquisition of condition and performance
benchmarking of state agency facilities,
c. analyses and audits of state age ncy facilities,
properties and leaseholds t o determine critical and
long-range needs,
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d. development of state agency long -range strategic
facility plans,
e. short-range project programming to identify budget
requests for facility capital improvements and a sset
management decisions, and
f. an annual capital plan for all state agencies
submitted to the Legislature for line -item
appropriation requests;
2. Review and approve all construction plans and specifications
to ensure compliance with good constructi on practices and space
standards, costs of project, proposed construction timetables, an d
agency need for the project;
3. 2. Inspect prior to acceptance and final payment all
completed projects for which the Department Office issued bid
solicitations to ensure compliance with the plans and specifi cations
of the project;
4. 3. Select and hire consultants and construction managers for
projects as determined or approved by the Department Office. The
Department Office shall select, award and execute contracts to
consultants and construction managers t hat provide services to state
agencies subject to this act;
5. 4. Develop and issue solicitatio ns for award of state agency
contracts for construction services. The Department Office shall
have final approval au thority for contracts and contract document s.
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Neither the Department Office nor any public entity shall, for
performance of work that requ ires that a contractor be licensed by
this state, issue a solicitation to, or make a contract with, a
contractor not licensed by this state;
6. 5. Review inspections performed by consultants and
construction managers during construction, perform primary
inspections when consultants or construction managers are not used,
and final inspections after completion;
7. 6. Establish standards and policies as required to
standardize facility assessment and benchma rking, facility
operations and maintenance, asset p reservation, design and energy
standards, space utilization, material testing, indexes of
efficiency, economy, and ef fectiveness;
8. 7. Monitor indices of facility condition, effectiveness of
operations and maintenance programs, deferred maintenance
prioritization, effectiveness of planning processes, budgeting for
capital needs, application of facility standards as est ablished by
the Department Office, and performance outcomes of construction
projects to ensure maximum efficiency in the expenditure of sta te
funds for asset management and preservation of the state's capital
real property;
9. 8. Coordinate, monitor and r eport on statewide energy
conservation programs delegated to the Office;
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10. 9. Provide property leasing and brokerage services
delegated to the Office;
11. 10. Report fraud or waste in any construction project by
written notification with documentation for the report to the
Attorney General. Th e Attorney General shall take appropriate
action to protect the interest of the state; and
12. 11. Prequalify as good and sufficient insurance carriers,
bonding companies and surety companies to meet provisions o f
Sections 1 and 134 of this title. The Di rector shall promulgate
rules to establish cr iteria to determine whether a carrier or
company is good and sufficient. The prequalification requirement
and process shall not violate the provisions of Section 135 o f this
title.
B. When a state agency emplo ys a licensed architect or licensed
engineer as a full-time employee, said licensed employee may conduct
required facility planning, prepare project plans and specifications
and monitor construction work as prescr ibed by the Department
Office. State agencies authorized to employ licensed architects and
engineers for the purposes of this section incl ude:
1. The Department of Transportation with respect to highways,
bridges and dams;
2. The Oklahoma State Regents for Higher Education and its
constituent institutions;
3. The Military Department of th e State of Oklahoma;
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4. The Oklahoma Tourism and R ecreation Department; and
5. The Department of Human Services.
C. Not later than December 31, 2012, with the advice of the
State Facilities Director, the Dire ctor of the Office of Management
and Enterprise Services shall provide a report containing
recommendations to the Legislature for the streamlining,
integration, and consolidation of state construction, maintenance ,
and real property management processes to maximize capital assets
and achieve cost sav ings to the state. The report shall identify
the necessary planning processes for transitioning from a
decentralized capital budgeting process to a centralized annual
capital plan appropriation process, to be i mplemented no later than
January 1, 2014.
SECTION 30. AMENDATORY 61 O.S . 2021, Section 207.2, is
amended to read as follow s:
Section 207.2 A. Except as provided by subsection B of this
section, no state agency shall employ, either temporary or full -
time, any person engaged in the practice of architecture,
engineering or land surveying for the purpose of planning or
performing any construction upon any real property belonging to the
agency or to the state, or upon any real property of which this
state will assume possession o r ownership by contract, option to
purchase agreement, lease, or otherwise. The term "practice of
architecture" shall be defined as tho se activities of an architect
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as provided for in Section 46.3 of Title 59 of the Oklahoma
Statutes. The terms "practice of engineering" or the "practice of
land surveying" shall be defined as such terms are defined by
Section 475.2 of Title 59 of the Okla homa Statutes.
B. The provisions of subsection A of this section shall not
apply to:
1. The Department of Human Servic es;
2. The Oklahoma Tourism and Recreatio n Department;
3. The State Department of Health insofar as the monitoring of
permitted health care facility construction for licensing purposes;
4. The Oklahoma Historical Society insofar as the monitoring of
historical site preservation and authenticity ;
5. The Office of Management and Enterprise Services;
6. The State Department of Education and the public schools
subject to its jurisdiction;
7. The Department of Transportation;
8. The Oklahoma State System of Higher Education;
9. The Military Depa rtment of the State of Oklahoma;
10. The Oklahoma Municipa l Power Authority;
11. The Department of Public Safety gun range; and
12. CompSource Oklahoma if CompSource Oklahoma is operating
pursuant to a pilot pro gram authorized by Sections 3316 and 3317 of
Title 74 of the Oklahoma Statutes; and
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13. The University Hospitals Authority and Univ ersity Hospitals
Trust.
SECTION 31. AMENDATORY 61 O.S. 2021, Section 208, is
amended to read as follows:
Section 208. A. The Department of Real Estate Services of the
Office of Management and Enterprise Services shall select and award
contracts to construction managers and design consultants pursuant
to the provisions of Section 62 of this title.
B. The negotiation of construction manager and con sultant
contracts and fees shall be performed by the Department Office.
C. The Department Office shall award and administer
construction contracts for state agencies pursuant to the provisions
of the Public Competitive Bidding Act of 1974.
D. 1. When all bids for a public construction contract exceed
the programmed estimate and available funding, the Department Office
may enter into negotiations with the lowest responsible b idder for
the purpose of modif ying the project scope and reducing the
construction cost, provided that:
a. the unexpected higher construction costs resulted from
unforeseen economic conditions or ot herwise sudden
price volatility in the construction indust ry,
b. the project was appropr iately planned, and cost
estimates were developed u sing standards of care
acceptable to the Department Office, and
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c. further delay caused by redesigning and rebidding the
project would jeopardize the using agency 's mission or
result in the loss of a plann ed funding source.
2. To request consideration for negotiations pursuant to this
subsection, the using agency, within ten (10) days of the bid
opening date, shall make a written request to the Director of the
Office of Management and Enterprise Services t o enter into
negotiations pursuant to paragraph 1 o f this subsection. If
approved by the Director, the Department Office shall consult with
the using agency, consultan t and low bidder on methods to reduce the
project scope or other cost-saving measures.
3. If a suitable revised scope and contract amount is agreed
upon by the using agency, low lowest responsible bidder, and the SFD
Director, the Department Office may award the public construction
contract to the low lowest responsible bidder.
4. The Department Office shall negotiate a fair and reasonable
fee with the project's consultant, if applicable, to make any
necessary revisions to the contract documents. T he cost of this
additional consulting work shall be paid from t he agency's available
funds.
5. Approval and final award of the contract for the
construction negotiated pursuant to this subsection shall occur no
later than one hundred twenty (120) days fro m the opening bid.
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E. The Department of Real Estate Services Office is authorized
to issue solicitations and award statewide contracts for manag ed
construction service delivery in order to provide efficient and
cost-effective procurement solutions for public ag encies. Statewide
contracts may be either mandatory or n onmandatory as determined by
the SFD Director.
F. The Department of Real Estate S ervices Office is authorized
to provide facility management and operations and maintenance
services for any state age ncy on a cost-recovery basis for any
facility operated by a state agency when:
1. The state agency initiates a request with the SFD Director;
or
2. Beginning on or after July 1, 2016, the SFD The Director
determines a state agency is performing in the bo ttom ten percent
(10%) of all state age ncies with respect to performance measures for
facility management established by the Department Office.
G. In addition to the exception from this act hereby provided
to the Oklahoma State Regents for Higher Educatio n and its
constituent institutions and the Com missioners of the Land Office,
the State Facilities Director may authorize an exemption to th e
provisions of this act to any other state agency provided that the
recipient of the exemption:
1. Adopts standards , processes and procedures for planning,
budgeting, design, facility management, asset m anagement and asset
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preservation that are substanti ally compliant with those as
prescribed by the Department Office;
2. Adheres to procurement requirements of Sections 62 through
65 of this title and the provisions of th is act;
3. Reports benchmark, budg et and ongoing performance data
required by the Department Office; and
4. Participates in annual performance reviews and organized
forums for promoting best practices statewide as determined by the
SFD Director.
SECTION 32. AMENDATORY 61 O.S. 2021, Section 208.1, is
amended to read as follows:
Section 208.1 The Department of Real Estate Services Office may
collect a reasonable fee for the purpo se of providing or contracting
for architectural, engineering, land surveying, planning, real
estate and related services to state agencies and political
subdivisions of the state, and from persons requesting plans and
notification of solicitations issued by the Department Office. The
Department Office may collect a reasonable fee for manage ment
services. Annual fees to the Department Office shall be on a cost-
recovery basis and may be calculated as a percentage of annual
construction and real estate serv ices in an amount necessary to
support Department operation as designated in the annual capital
plan the Office's operations. All fees collected in accordance with
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the provisions of this section sha ll be deposited in the "State
Construction Revolving Fund " created in Section 208.2 of this title.
SECTION 33. AMENDATORY 61 O.S. 2021, Section 208.2, is
amended to read as follows:
Section 208.2 There is hereby created in the Sta te Treasury a
revolving fund for the Department of Real E state Services of the
Office of Management and Ent erprise Services, to be designated the
"State Construction Revolving Fund". The fund shall be a continuing
fund, not subject to fiscal year limitati ons, and shall consist of
all funds appropriated by the L egislature for projects included in
the annual capital plan; funds from nonappropriated sources
designated for projects within a capital pl an; allocations from an
approved annual capital plan designe d for assessment and planning
services; allocations from an approved annual capital plan for
emergency response in accordance with Section 130 of this title; and
fees collected by the Department Office in accordance with the
provisions of this section or a s otherwise provided by law. All
monies accruing to the credit of the fund are hereby appropriated
and may be budgeted and expended by the Department Office. The fund
shall be used to pay expenses resulting from contracts awarded by
the Department Office and to defray Department Office operating
costs and expenses the Office incurs to support Department
construction-related operations. Expenditu res from the fund shall
be made upon warrants issue d by the State Treasurer against claims
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filed as prescribed by law with the Director of the Office of
Management and Enterprise Services for approval and payment.
SECTION 34. AMENDATORY 61 O.S. 2021, Section 209, is
amended to read as follows:
Section 209. The Director of the Office of Management and
Enterprise Services shall promulgate rules:
1. For state agencies to perform minor construction projects;
2. Specifying building codes pursuant to the Oklahoma Uniform
Building Code Commission Act for construction projects;
3. Permitting state agencies who have the expertise, upon
written application to the Department of Real Estate Services of the
Office of Management and Enterprise Services, to perform any part of
the responsibilities of the Department Office pursuant to the
provisions of the Public Facilities Act for a specific project;
4. Specifying procedures and guidelines for the implementation
of shared savings fi nancing by state agencies;
5. Specifying energy co nservation performance guidelines, for
conducting a life cycle cost analysis of alternative architectural
and engineering designs and alternative major items of energy-
consuming equipment to be retrofitted in existing state-owned or
leased structures and f or developing energy performance indices to
evaluate the efficiency of energy utilization for completing designs
in the construction of state-financed and leased structures;
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6. The time, manner, authentic ation, and form of making
requisitions to the Department Office;
7. The form and manner of submission for bids or proposals and
the manner of accepting and opening bids or proposa ls that may
include online bids pursuant to the Oklahoma Online Bidding Act;
8. The manner for a state agency to acquire servi ces for
construction projects;
9. Conditions under which any of the rules herein authorized
may be waived;
10. The form of any document the Director requires;
11. Specifying provisions a state agency sh all follow to adhere
to acquisition, contract, cont ract management and other provisions
of this title; and
12. Specifying the process a state agency shall follow to
establish the scope of work, schedule and cost estimate for all
publicly bid construction projects involving construction or
renovation of buildings.
SECTION 35. AMENDATORY 61 O.S. 2021, Section 210, is
amended to read as follows:
Section 210. A. Shared savings contracts shall be developed in
accordance with a model contract deve loped by the Department of Real
Estate Services of the Office of Management and Enterprise Services.
The model contract shall include:
1. The methodology for calculating baseline energy costs;
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2. A procedure for revising these costs should the state
institute additional energy conservation features or structure use
change;
3. A requirement for a performance bond guaranteeing that the
structure will be restored to the original condition in the event of
default;
4. A provision for early buyout;
5. A clause specifying who will be responsible for mainta ining
the equipment; and
6. A provision allowing the disposal o f equipment at the end of
the contract.
No state agency or department shall substantially alter the
provisions described in the model without t he permission of the
Department Office.
B. Contracts subject to this section shall be awarded pursuant
to the provisions of subsection A of Section 208 of this title.
SECTION 36. AMENDATORY 61 O.S. 2021, Section 211, is
amended to read as follows:
Section 211. On and after July 1, 1987, when When any state
agency or department must replace or supplement major items of
energy-consuming equipment in existing state-owned or leased
structures or any sel f-contained unit of any structur e with other
major items of energy-consuming equipment, the selection of such
items shall be made on the basis of a life cycle cost analysis of
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alternatives in accordan ce with rules and regulations promulgated by
the Director of the Office of Management an d Enterprise Services.
SECTION 37. AMENDATORY 61 O.S. 2021, Section 212, is
amended to read as follows:
Section 212. A. For purposes of this section:
1. "Performance-based efficiency contract " means a contract for
the design, development, financing, installation, construction and
service of any improvement, repair, alteration or betterment of any
public building or facility; or any equipment, fixture or furnishing
to be added to or used in any such building or faci lity; or any
maintenance or operational strategy that is designed and implemented
that will reduce utility consumption or lower operating costs, and
may include, but is not limited to , one or more of the following:
a. utility services,
b. heating, ventilating or air conditioning system
modifications or replacements and automated control
systems,
c. replacement or modifications of l ighting fixtures,
d. indoor air quality improvements to increase air
quality that conform to the applicable state or local
building code requirements when done in conjunction
with other cost-saving measures,
e. any additional building infrastructure improv ement,
cost saving, life safety or any other improvemen t that
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provides long-term operating cost reductions and is in
compliance with state and local codes, or
f. any facility operation and support programs that
reduce operating cost; and
2. "Qualified provider" means a person or business experienced
or trained in the design, analysis, construction and/or installation
of energy conservation and facility management measures. A
qualified provider must employ a professional engineer registered in
the State of Oklahoma.
B. In addition to any other legally permiss ible alternatives of
entering into contracts, the Office of Management an d Enterprise
Services Construction and Properties Division may enter into
performance-based efficiency contracts on behalf of al l state
agencies with a qualified provider pursuant to the provisions of
this section.
A qualified provider to whom the contract is awarded shall be
required to provide to the Division Office a sufficient bond for its
faithful performance of the contract. In addition, the Division
Office may require performan ce bonds covering the annual amount of
guaranteed savings over the contra ct term. The Office of Management
and Enterprise Services State agencies may enter into an installment
contract, lease purchase agreement or other contractual obligation
for the purpose of financing performance-based efficiency projects
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for a term not to exceed the greater of twenty (20) years or the
useful life of the project.
The qualified provider must guarantee the contract 's cost
savings each year during the term of the agreement . In calculating
cost savings, the public entity may consider capital co st avoidance
and include additional revenue that is directly attri buted to the
performance-based efficiency contract. The savin gs must be
sufficient to offset the annual costs of the contract. The contract
shall provide for reimbursement to the state age ncy undertaking the
project annually for any shortfall of guarante ed savings. Savings
must be measured, verified and documented each year of the term and
may be utilized to meet the annual debt service.
The contracts authorized by this section shall inclu de
procedures for modifying the contract should the Division Office
determine it necessary.
This section shall constitute the so le authority necessary to
enter into performance-based efficiency contracts, without regard to
compliance with other laws which may specify additional procedural
requirements for execution of co ntracts.
SECTION 38. AMENDATORY 61 O. S. 2021, Section 308, is
amended to read as follows:
Section 308. The Office of Management and Enterprise Services
is hereby authorized to lea se for drilling and development of oil or
gas, or both, any of the lands belonging t o the state, on which are
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located penal or eleemosynary public institutions, or are connected
with or a part of the lands of such institution. Such leasing to be
made by public competition after not less than fifteen (15) days'
notice by publication , either electronically on an authorized state
website or in two newspapers a newspaper authorized by law to
publish legal notices , one of which newspapers shall be published at
the State Capital, and the other in the county where the land is
situated, and in such manner as said Office of Management and
Enterprise Services may by rule prescribe . All such leasing must be
on electronic or sealed bids and awarded to the highest resp onsible
bidder, and for a term of not to exceed fiv e (5) years from date and
as long thereafter as oil and gas, or either of them, is produced in
paying quantities from the land by the lessee, provided the Office
may reject any and all bids. The oil and g as interest in such land
hereby authorized to be le ased, is to the extent and in the manner
that a private owner of lands in fee, may in his own right , execute
such lease or grant.
SECTION 39. AMENDATORY 61 O.S. 2021, Section 309, is
amended to read as follows:
Section 309. A. The Office of Management and Enterp rise
Services is hereby autho rized and empowered to offer for sale and
sell and execute and deliver oil and gas or mineral leases upon the
lands described in Section 1 of T itle 73 of the Oklahoma Statutes
under the control of said Office of Managem ent and Enterprise
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Services. The Office of Management and Ent erprise Services is
hereby authorized and empowered to enter into contracts with persons
or corporations for the drilling of oil and g as wells on any such
property owned by the state. No such l ease or drilling contract
shall be entered into by said Office of Management and Enterprise
Services which provides for the payment of a royalty to the State of
Oklahoma of less than one -eighth (1/8) of all of the oil, gas, or
casinghead gas produced, save d, and sold from said lands, plus cash
bonus, of the royalty i n said leases. Such Office shall give notice
of its intention to offer for sale said lease or drilling contract
by advertising said f act for a period of at least twenty -one (21)
days either electronically on an authorized state website or in a
legal newspaper published and of general circulation in the county
where said lands are located. The Office shall award such lease,
leases, or drilling contracts to the highest and best responsible
bidder. All bidding shall be by sealed written or electronic bids
filed with said Office of Management and Enterprise Serv ices.
B. The monies received as royalties, bonuses, or rentals by the
Office of Management and Enterprise Services for the use and benefit
of this state not paid by said Office of Management and Enter prise
Services to the Treasurer shall be credited into the General Revenue
Fund. All royalties, bonuses, and rentals accruing to the state
from any contracts or leases executed pursuant to the provisions of
subsection A of this section and all other monie s received from the
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sale of any such leases, bonuses, a nd royalties or other contracts
made by said Office of Management and Enterpris e Services shall be
credited to the Public Building Fund Maintenance of State Buildings
Revolving Fund of the State of Oklahoma.
SECTION 40. AMENDATORY 61 O.S. 2021, Section 311, is
amended to read as follows:
Section 311. The lands described in Section One of this act
Sections 308 through 317 of this title shall be under the exclusive
control and jurisdiction of the State of Oklahoma and the zoning and
drilling regulations of any municipality of this state sha ll not
apply thereto.
SECTION 41. AMENDATORY 61 O.S. 202 1, Section 312, is
amended to read as follows:
Section 312. If any section, paragraph, sentence or phrase of
this act title shall be declared unconstitutional or void for any
reason by any court of final jurisdiction, such decision shall not
in any way invalidate or affect any other section, paragraph,
sentence or phrase of this act but the same shall continue in full
force and effect.
SECTION 42. AMENDATORY 61 O.S. 2021, Section 316, is
amended to read as follows:
Section 316. All proceeds derived from any royalty under such
leases or any bonus received from the sale of such leases , shall be
paid into the General Revenue Fund Maintenance of State Buildings
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Revolving Fund of the state but this section shall not be a p art of
any contract with any lessee hereunder.
SECTION 43. AMENDATORY 61 O.S. 2021, Section 317, is
amended to read as follows:
Section 317. The Office of Management and Enterprise Ser vices
is hereby authorized and empowered to sell and execute oil and gas
leases, and other mining leases, on any of th e lands of this state
under the control of said Office of M anagement and Enterprise
Services. Sale of Oklahoma State Capitol lands or par kways or the
Executive Mansion lands shall be made upon a ba sis of a retained
royalty of not less than one -eighth (1/8) of all the oil, gas, and
other minerals produced therefro m, and such additional cash bonus as
may be procured. Such leases shall contai n a provision that in the
event of the discovery of natural gas, gas shall be furnished free
of charge to any state in stitution located or hereafter located upon
the lands covered by said lease, or leases. Said leases shall be
sold only after advertisemen t for a period of three (3) weeks either
electronically on an authorized state website or in a legal
newspaper published a nd of general circulation in the county in
which said lands are located. The sale shall be made to the highest
and best responsible bidder, and all bids for any tract shall be
presented to the Office of Management and Enterprise Services
electronically or in sealed envelopes, and shall all be opened and
considered at the same time. Said Office of Management and
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Enterprise Services shal l have the right to reject any and all of
said bids and again readvertise said lease, or leases, for sale.
The Office of Management and Enterprise Services is further
authorized to make and promulgate such additional rules and
regulations as he may deem ne cessary and for the best interest of
the state in facilitati ng the sale of said leases. The Director may
contract with other state agencies to implement the provisions of
this section and any expenses charged under such contract may be
paid from the proceeds of the lease.
All monies derived from the sale of any an d all of said leases,
and from any royalties subsequently accr uing, after deduction of the
amount required to pay nec essary and actual expenses of developing
the lease, shall be paid into the Stat e Treasury and credited to the
General Revenue Fund of the s tate Maintenance of State Building s
Revolving Fund.
SECTION 44. AMENDATORY 61 O.S. 2021, Section 323, is
amended to read as follows:
Section 323. A. The Director of the Office of Management and
Enterprise Services is hereby autho rized to lease for a temporary
period of time the surface of a ny of the lands belonging to the
state described in Sec tion 322 of this title, which are not needed
or required for the proper mainten ance of the institutions or
departments in possession thereo f.
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B. Except as otherwise provided by Section 6201 of Title 7 4 of
the Oklahoma Statutes, leases Leases shall be for a period of time
not exceeding five (5) years and upon such other terms and
conditions as the Director may determine to be in the best inte rests
of the state.
C. Except as otherwise provided by Sectio n 6201 of Title 74 of
the Oklahoma Statutes, leases Leases shall provide for a termination
of the lease upon reasonable notice in writ ing whenever the needs of
the state or the institution in po ssession thereof requires the
land.
D. The Director may also execute lease contracts for the lands
to any institution or agency or department, commission, or municipal
subdivision that requires t he need of the land in conjunction with
cooperation or parti cipation in any city or state project authorized
by law, if contracts or agreements will not interfere with or
restrict in any manner, the proper use of the lands by the state
institution in posse ssion thereof.
E. The Commissioners of the Land Office, the Oklahoma Ordnance
Works Authority, the Midwestern Oklahoma De velopment Authority, the
Oklahoma Department of Transpo rtation, the Oklahoma Turnpike
Authority and the Northeast Oklahoma Public Faci lities Authority and
their lands shall be exempt from the ap plication of this section.
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F. Lands leased to private prison contractors pursuant to
Section 561 of Title 57 of the Oklahoma Statutes shall be exempt
from the application of this section.
SECTION 45. AMENDATORY 61 O.S. 2021, Secti on 324, is
amended to read as follows:
Section 324. The Director of the Office of Management and
Enterprise Services is authorized and directed to take charge of,
manage, and lease "Capitol Build ing Lands", described as follows:
Lots 31 and 32, Ethel Par k Addition to Oklahoma City, Oklahoma,
known as Tract No. 23, b eing a part of Section 23 - Twp. 12N - R - 3
West.
Lots 1, 2, 3, 4, 5, and lots 45, 46, 47, and 48 in Block 6,
Ethel Park Addition to Oklahoma City, Oklahoma, known as Tract No.
24, being a part of Section 23 - Twp. 12 N - R - 3 West.
Lots 1, 2, 3, 4, 5, 6 , and 43, 44, 45, 46, 47, and 48, Block 1,
Ethel Park Addition to Oklahoma City, Oklahoma, known as Tract No.
25, being a part of Sect ion 23 Twp. 12 N - R - 3 West.
Lots 30 and 31, Woody Crest Addition to Oklahoma City, Oklahoma,
known as Tract No. 39, bei ng a part of Section 22 - Twp. 12N - R - 3
West.
Lots 11 and 12, Stevens Hamill Addition to Oklahoma City,
Oklahoma, known as Tract No . 19, being a part of Section 26 Twp. 12N
- R - 3 West.
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Lots 11 and 12, Block 3, Northeast Highland Addition to Oklahoma
City, Oklahoma, known as Tract No. 40, being a part of S ection 23 -
Twp. 12N - R - 3 West.
Lots 35, 36, 37, and 38 Northeast Highland A ddition to Oklahoma
City, Oklahoma, known as Tract No. 44, being a part of Section 22 -
Twp. 12N - R - 3 West.
Lots 7, 8, 9, and 10, Block 1, Donley Heights, a subdivision of
Blocks 19 and 20, Barrows Second Addition to Oklahoma City,
Oklahoma. Lots 31 and 32, Block 4, of the subdivision of Lots 9 and
10, and 23 and 24 of Barrows First and Second Additions to Oklahoma
City, Oklahoma. Lots 11 and 12, Block 3, Northeast Highland
Addition, being a part of Blocks 25 and 26, Barrows Second Addition
to Oklahoma City, Oklahoma. All of the above lots in Barrows
Addition being known as Tract No. 41.
A tract of land 48' x 128' facing NE 38th Street and located
between Lindsay Avenue and F irst Street west known as Tract No. 29.
Lots 9 and 10, Block 2, Stevens Hamill Addition to Oklahoma City,
Oklahoma, known as Tract No. 18, being a part of Section 26 - Twp.
12 N - R - 3 West.
Lots 13 through 24, inclusive, Block 2, Frances Heights Addition
to Oklahoma City, Oklahoma, known as Tract No. 43, being a part of
Section 22 - Twp. 12 N - R - 3 West.
Lots 5, 6, 11, 12, 19 and 20, Blo ck 2, Hares Lake View Addition,
situated approximately two and one-half (2 1/2) miles Northeast of
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Oklahoma City, Oklahoma, known as Tract No. 30, being a part of
Section 11 - Twp. 12 N - R - 3 West.
Also the following acreage tracts of land:
Two (2) acres, situated three and one-half (3 1/2) miles East on
23rd Street hence two (2) miles North, thence one -half (1/2) mile
East, thence one-fourth (1/4) mile North from the State Capitol
Building, known as Tract No. 3, being a part of SE 1/4 of SW 1/4 of
Section 8 - Twp. 12 N - R - 2 West.
Five (5) acres, situated one and one-half (1 1/2) miles East and
one and one-half (1 1/2) miles North of the State Capitol Building,
facing on Eastern Avenue and layin g directly South of Springlake
Park, and known as Tract No. 28. Also described as S 1/2 of SE 1/4
of NE 1/4 of SE 1/4 of Section 14, Township 12 North, Range 3 West.
Also other lots and tracts not listed or described above
constituting the small balance o f "State Capitol Building Land" not
heretofore disposed of pursuant to the provision of Chapter 298,
Session Laws 1919.
SECTION 46. AMENDATORY 61 O .S. 2021, Section 326, is
amended to read as follows:
Section 326. After payment of all costs incurred in the
inventory and appraisal and adver tisement and costs of sale, the
remaining proceeds therefrom, and any monies derived from leasing
the property described in Section 324 of this title, shall be
deposited in a special "Capitol Buil ding Maintenance and Repair
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Fund" the Maintenance of State B uildings Revolving Fund. The fund
shall be used for the maint enance and repair of all State Capitol
Buildings, grounds, shrubbery, boulevards, and streets surr ounding
the same. The funds shall b e paid upon claims made therefor by the
Office of Management and Enterprise Services and approved by the
Director of the Office of Management and Enterprise Services. The
leasing for oil and gas purposes of any such lan ds and the proceeds
therefrom shall be conducted and handled by the Office of Management
and Enterprise Services pursuant to Section 317 of this title.
SECTION 47. AMENDATORY 61 O.S. 2021, Section 327, is
amended to read as follows:
Section 327. A. Unless procedures for state agency real
property transactions are otherwise specifically provided for by
law, no state agency shall sell, lease, exchange, or otherwise
dispose of such real prop erty subject to its jurisdiction, or lease,
purchase or otherwise acquire real property subject to its
jurisdiction, except as authorized by subsection L of this section
and as otherwise provided for in this section. As used in this
section, "state agency " means any department, board, commission,
institution, agency or entity of sta te government.
B. 1. Every state agency shall request the Office of
Management and Enterprise Services to dispose of rea l property upon:
a. legislative authorization,
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b. authorization by the Long-Range Capital Planning
Commission, or
c. a determination, in writing, by the Office of
Management and Enterprise Servi ces or the state agency
that a parcel of real property subject to its
jurisdiction is no longe r needed.
2. Upon the request of the state agency to dispose of real
property, the Office of Manageme nt and Enterprise Services shall
estimate the value of the property, and:
a. for properties with an estimated value of gre ater than
Twenty-five Thousand Dollars ( $25,000.00), obtain at
least one complete appraisal made by a person
certified by the Real Est ate Appraiser Board of the
Oklahoma Insurance Department, wh o shall ascertain:
(1) the present fair value of the property,
(2) the present value of the improvements on such
property, and
(3) the actual condition of the improvements on the
property,
b. after completion of the provisions of su bsection L of
this section, cause notice of such sale to be
published for at least one (1) day in a newspaper of
general statewide circulatio n authorized to publish
legal notices, and weekly for three (3) consecutive
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weeks in a newspaper of general circula tion published
in the county or counties in which the property is
located. The notice shall contain the legal
description of each parcel of real property to be
offered for sale, the appraised value thereof, the
time and location of the sale or opening of the bids,
and terms of the sale including the fact that no
parcel of property shall be sold for less than ninety
percent (90%) of the apprais ed value of the real
property; provided, in lieu of such procedure, the
information may be published electronically on the
Office of Management and Enterprise Services' website
if the notice of sale an d instructions on accessing
the public information are published in a newspaper of
general circulation in the county or counties in wh ich
the property is located weekly f or three (3)
consecutive weeks,
c. offer the property through electronic auction, public
auction or sealed bids within three (3) weeks after
the last publication of the notice. The property
shall be sold to the highest bidder. The Office of
Management and Enterprise Service s shall not accept a
bid of less than ninety percent ( 90%) of the average
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appraised fair value of the property and the
improvements on such property, and
d. if the property is being disposed of in com pliance
with Section 908 of Title 62 of the Oklahoma Sta tutes,
the Office may auction the property at public o r
electronic auction provided proper public notice is
given in compliance with this section and the property
has been approved for liquidation by the Long-Range
Capital Planning Commission . The Office of Management
and Enterprise Services is authorized to reject all
bids,
e. if the property has an estimated value of less than
Twenty-five Thousand Dollars ($25,000.00), the Office
of Management and Enterprise Services may establish
the value through market co mparison and may dispose of
the property based on estimated va lue without
obtaining a certified appraisal; provided however, the
sale shall comply with all other requirements of
statute, and
f. if the property is landlocked, the Office of
Management and Enterprise Services may offer the
property through indirect sale to the adjacent
property owner, for n ot less than ninety percent (90%)
of fair market value, as determined in com pliance with
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this section. All sales costs, including any required
surveys and appraisals, shall be at the expense of the
buyer.
3. The cost of the appraisal required by the provisions of this
section, together with other necessary expenses incurred pursuant to
this section, shall be paid by the state agency fo r which the real
property is to be sold from funds available to the state agency for
such expenditure. All monies received from the sale o r disposal of
the property, except those monies necessary to pay the expenses
incurred pursuant to this section, shal l be deposited in the
Maintenance of State Buildings Revolving Fund unless otherwise
provided by law.
4. The Office of Management and Ente rprise Services may dismiss
from consideration any appraisal found to be incomp lete or flawed.
C. Unless otherwise provided by law, the O ffice of Management
and Enterprise Services shall review and ap prove state agency real
property transactions . A state agency shall not lease or acquire
real property, or lease, dispose of or trans fer state-owned real
property until the Office provides not ice of transaction approval to
the state agency. Prior to approval, a state agency shall provide
documents to the Off ice and provide reference to statutory or other
legal authority of the state ag ency to lease or acquire real
property, or lease, dispose o f or transfer state-owned real
property. If the state agency i ntends to lease or acquire real
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property, the state age ncy shall state the intended use of the real
property, and shall provide the Of fice with required telework
documentation. Within thirty (30) days of receipt, the Office shall
provide notice of transac tion approval or disapproval to the state
agency.
D. The provisions of this section shall not apply to the lease
of office space or r eal property subject to supervision of the
Commissioners of the Land Office or district boards of education.
E. 1. The Office of Management and Enterprise Services shall
maintain a comprehensive inventory of state-owned real property and
its use excluding property of the public schools and p roperty
subject to the jurisdiction of the Commissioners of the Land Office.
2. Each state agency shall, within thirty (30) days of the
closing date for lands newly acquired, provide to the Office a list
of records, deeds, abstracts and other title instru ments showing the
description of and relating to any and all such lands or interests
therein.
3. The provisions of paragraph 2 of this sub section shall apply
to all lands of public trusts having a state agency as the primary
beneficiary, but shall not app ly to lands of municipalities,
counties, school districts, or agencies thereof, or D epartment of
Transportation rights -of-way.
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4. A state agency that sells or otherwise disposes of land
shall notify the Office within thirty (30) days of the disposition
closing date.
F. This section shall not be construed to authorize any state
agency, not otherwise authorized by law, to sell, lease, or
otherwise dispose of any real property owned by the state.
G. The Office of Manage ment and Enterprise Services and the
Secretary of the Commissioners of the Land Office, or designee, as
provided in subsection L of this section may provide services to
sell, transfer, trade or purchase real property for other state
agencies.
H. The Director of the Office of Management and En terprise
Services shall, pursuant to the Administrative Procedures Act,
promulgate rules to effect procedures necessary to the fulfillment
of its responsibilities under this section.
I. The Oklahoma Ordnance Works Aut hority and its lands, and the
Northeast Oklahoma Public Facilities Authority, the Oklahoma
Historical Society, the Oklaho ma Department of Transportation , the
Oklahoma Turnpike Authority and the Department of Wildlife managed
lands shall be exempt from the application of this section. The
Grand River Dam Authority and its lands shall be exempt from the
application of this sec tion for any real property disposed of prior
to November 1, 2006.
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J. Unless otherwise provided for by law, the procedures
established pursuant to this section for the sale or exchange of
real estate or personal property as authorized pursuant to Sections
2222 and 2223 of Title 74 of the Oklahoma Statutes shal l be followed
unless the sale is to an entity of state government.
K. The Director of the Office of Management and E nterprise
Services shall contract with experts, professionals or consultants
as necessary to perform the duties of the Office . Selections shall
be made using the qualifications-based procedures established in
Section 62 of this title and the rules promulg ated by the Director
for the selection of construction managers and design consultan ts.
L. 1. No state agency shall sell, lease, exchange , or
otherwise dispose of such real property subject to its jurisdiction,
or lease, purchase or otherwise acquire rea l property subject to its
jurisdiction, until such agency or the Office of Managemen t and
Enterprise Services acting on the agency's behalf has presented to
the Secretary of the Commissioners of the Land Office , or designee,
all information collected pursu ant to subparagraph a of paragraph 2
of subsection B of this section, and provided t he Secretary of the
Commissioners of the Land Office or designee a twenty-calendar-day
period to provide a proposal for the acquisitio n or disposal of
applicable real prope rty.
2. The Secretary of the Commissioners of the Land Office or
designee may decline to provide such a proposal ,; provided such
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notice of decline is communicated to the Office of Management and
Enterprise Services in written or electronic form. Upon the
reception of such notice of decline by the Office of Management and
Enterprise Services, the twenty-calendar-day period otherwise
required by this subsection shall be deemed to have expired.
SECTION 48. AMENDATORY 61 O.S. 2021, Section 327.1, is
amended to read as follows:
Section 327.1 A. When historic signific ance, location,
advancement of the long term capital as set plan or other factors
make disposition of state -owned properties under Sec tion 327 of
Title 61 of the Oklahoma Statut es this title not in the best
interest of the state, the Office of Management and Enterpris e
Services may invite the presentation of written propo sals for the
purchase or, lease, and sale, exchange, construction, maintenance,
repair, improvement, development, or redevelopment, of state-owned
property provided the property meets one or more of th e following
criteria:
1. The property is listed on the National Register of Historic
Places;
2. The property is designat ed by the Oklahoma Hi storical
Society as a property of historical interest or significance;
3. The property is located within the Okl ahoma State Capitol
Complex; or
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4. The property is loc ated within a campus owned by the State
of Oklahoma;.
B. Proposals shall be evaluated by a committee selected by the
Director of the Office of Management and Enterp rise Services which
shall include at least one member of the Long -Range Capital Planning
Commission or a designee. The evaluation of the proposals shall be
based on the principal criteria of:
1. The proposal's e conomic benefits, cultural benefits, job
creation potential, advancement of long term capital asset plan or
other benefits to the State of Oklahoma and the general public;
2. The qualifications and ex perience of the construction or
maintenance provider, d eveloper, or redeveloper;
3. The financial ability of the construction or maint enance
provider, developer, or redeveloper to complete the redevelopment in
a timely fashion; and
4. When applicable, th e fidelity of the prop osed renovation or
redevelopment with the historic significance of the property.
C. The Office of Management and Enterprise Services may enter
into negotiations with o ne or more respondents and may enter into
contracts with the respo ndent or respondents s elected by the
committee.
The Office of Management and Enterprise Services may reject any
and all bids proposals.
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SECTION 49. AMENDATORY 61 O.S . 2021, Section 330.1, is
amended to read as follows:
Section 330.1 All instruments vesting any right, title or
interest in lands or minerals and mineral rights, in providing for
the passage of title or release of interest to or from the Office of
Management and Enterprise Services or any other state agency,
whether as grantor or grantee, and all instruments to adjust an y
defect or irregularity or to remove any cloud on the title to lands
or minerals or mineral rights owned by the state, and all notices
and orders issued by the Office of Management and Enterprise
Services and proofs of public ation thereof, shall be filed and
recorded by the proper officers of all counties of the State of
Oklahoma at the request of the Office of Management and Enterprise
Services without any filing or recording fee being charged.
SECTION 50. REPEALER 61 O.S. 2021, Sections 8, 9, 10,
14, and 15, are hereby repealed.
SECTION 51. REPEALER 61 O.S. 2021, Section 51, is hereby
repealed.
SECTION 52. REPEALER 61 O.S. 2021, Sections 103.8 and
129, are hereby repealed.
SECTION 53. REPEALER 61 O.S. 2021, Section 203, is
hereby repealed.
SECTION 54. REPEALER 61 O.S. 2021, Sections 315, 321,
329, 330, and 331, are hereby repealed.
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SECTION 55. This act shall become effective November 1, 2022.
Passed the House of Representatives the 9th day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senat e