OK
Oklahoma Senate Bill SB1371

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1371 Compare Versions

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4-An Act
5-ENROLLED SENATE
29+HOUSE OF REPRESENTATIVES - FLOOR VERSION
30+
31+STATE OF OKLAHOMA
32+
33+2nd Session of the 58th Legislature (2022)
34+
35+ENGROSSED SENATE
636 BILL NO. 1371 By: Quinn of the Senate
737
838 and
939
1040 Pfeiffer of the House
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1545 An Act relating to the Oklahoma Central Purcha sing
1646 Act; amending 74 O.S. 2021, Section 85.7, which
1747 relates to competitive bidding procedures; modifying
1848 certain exceptions; and providing an effective date.
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2050
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23-SUBJECT: Oklahoma Central Purcha sing Act
24-
2553 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
26-
2754 SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.7, is
2855 amended to read as foll ows:
29-
3056 Section 85.7. A. 1. Except as otherwise provided by the
3157 Oklahoma Central Purchasing Act, or associated rules:
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3358 a. every state agency shall initiate all acquisitions by
3459 the submission of a requisition to the Purchasing
3560 Division, and
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3761 b. no state agency shall make an acquisition for an
3862 amount exceeding Fifty Thousand Dollars ($50,000.00)
3963 or the limit determined by the State Purchasin g
4064 Director pursuant to rules authorized by Section 85.5
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4192 of this title, not to exceed Two Hundred Fifty
4293 Thousand Dollars ($250,000.00), without submission of
4394 a requisition to the Purchasing Division for issuance
4495 of a solicitation for the acquisition on beha lf of the
4596 agency. Any exemption from competitive bid
4697 requirements of the Oklahoma Central Purchasing Act
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48-ENR. S. B. NO. 1371 Page 2
4998 further exempts the acquisition from requisition
5099 requirements of the act.
51-
52100 2. The State Purchasing Director may request additional
53101 information necessary to adequately revi ew a requisition to ensure
54102 compliance with this act and associated rules. If the State
55103 Purchasing Director determines that an acquisition is not necessary,
56104 excessive or not justified, the State Purchasing Director shall deny
57105 the requisition.
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59106 3. The provisions of this act shall not preclude a state agency
60107 from:
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62108 a. accepting gifts or donations in any mann er authorized
63109 by law, or
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65110 b. making an acquisition for itself without submitting a
66111 requisition under this section when authorized in
67112 writing by the State Pu rchasing Director.
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69113 4. Any acquisition a state agen cy makes shall be made pursuant
70114 to this act and associated rules. No agency shall use s plit
71115 purchasing for the purpose of evading the requirement of competitive
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72143 bidding or other requi rement of this act or associated rules.
73144 Violation of this provision sha ll be cause for discipline of a state
74145 employee up to and including termination.
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76146 5. The State Purchasing Director may waive or increase the
77147 limit authorized for a state agency acquisit ion made pursuant to its
78148 own competitive procedures. To perfect an othe rwise valid
79149 acquisition inadvertently exceeding th e limit due to administrative
80150 error by a state agency or unforeseeable circumstances, the state
81151 agency shall request a limited waiver or increase upon the discovery
82152 of the error or circumstance to the State Purchasing Director. The
83153 State Purchasing Direct or shall report requests for waivers o r
84154 increases, stating the amount and whether the request was granted or
85155 denied, upon request by t he Governor, Presiden t Pro Tempore of the
86156 Senate or Speaker of the House of Representatives.
87-
88157 6. Competitive bidding requi rements of this section shall not
89158 be required for the following:
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92-ENR. S. B. NO. 1371 Page 3
93159 a. contracts for master custodian banks or trust
94160 companies, investmen t managers, investmen t
95161 consultants, and actuaries for the state retireme nt
96162 systems, and Oklahoma Employees Insurance and B enefits
97163 Board, pension fund management consultants of the
98164 Oklahoma State Pension Commission and the
99165 Commissioners of the Land Office, examiners, experts,
100166 or consultants for the Insurance Department whose job
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101194 duties are tied to Market Conduct Exams, Financi al
102195 Exams, and Insurance Business Transfers, financial
103196 institutions to act as depositories and managers of
104197 the Oklahoma College Savings Plan accounts and other
105198 professional services as defined in Section 803 of
106199 Title 18 of the Oklahoma Statutes. W hen requested by
107200 the Oklahoma Employees Insuran ce and Benefits Board or
108201 the governing board of a state retirement system
109202 authorized to hire investment managers, the Purchasing
110203 Division shall assist in the process of selecting
111204 investment managers,
112-
113205 b. a state agency making such an acquisition shall notif y
114206 the State Purchasing Director within fifteen (15) days
115207 following completion of the acquisition. A list of
116208 the exempt contracts shall be provided, upon request,
117209 to a member of the Approp riations and Budget C ommittee
118210 of the House of Representatives or App ropriations
119211 Committee of the Senate.,
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121212 c. purchases of postage by state agencies made pursuant
122213 to Sections 90.1 through 90.4 of this title,
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124214 d. a sole source acquisition made in compliance wi th
125215 Section 85.45j 85.44D.1 of this title,
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127216 e. an acquisition for des ign, development, communication
128217 or implementation of the state employees flexible
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129245 benefits plan; provided, procedures used for the
130246 acquisition are consistent with compe titive bid
131247 requirements of this act and associated rules,
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133248 f. any acquisition of a servic e which the Office of
134249 Management and Enterprise Services has approved as
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136-ENR. S. B. NO. 1371 Page 4
137250 qualifying for a fixe d and uniform rate, subject to
138251 the following:
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140252 (1) the Purchasing Division shall establish criteria
141253 and guidelines for those services which may
142254 qualify for a fixed and uniform rate,
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144255 (2) fixed and uniform rate contracts authorized by
145256 this subsection shall be limited to contracts for
146257 those services furnished to persons directly
147258 benefiting from such services and shall not be
148259 used by a state agency to employ consultants or
149260 to make other acquisitions,
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151261 (3) any state agency desiring to have a service
152262 qualified for a fixed and uniform rate shall make
153263 a request for service qualification to the State
154264 Purchasing Director and submit documentation to
155265 support the request. The Sta te Purchasing
156266 Director shall approve or deny the request. If
157267 approved, the state agency shall establish a
158268 fixed and uniform rate for the service. No
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159296 contracts shall be entered into by the state
160297 agency until the rate has been approved by the
161298 state agency in a public hearing. The proposed
162299 rate shall be clearly and separately identified
163300 in the agenda of the state agency for the hearing
164301 and shall be openly and separately discussed
165302 during such hearing. The state agency shall
166303 notify the State Purchasing Direc tor of its
167304 pending consideration of the proposed rate at
168305 least thirty (30) days before the sta te agency is
169306 to meet on the proposed rate and deliver a copy
170307 of the agenda items concerning the proposed rate
171308 with supporting documentation. The State
172309 Purchasing Director shall communicate any
173310 observation, reservation, criticism or
174311 recommendation to the a gency, either in person at
175312 the time of the hearing or in writing delivered
176313 to the state agency before or at the time of the
177314 hearing. The State Purchasing Directo r shall
178315 specifically note in the written communications
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180-ENR. S. B. NO. 1371 Page 5
181316 whether the Director has determined th e rate to
182317 be excessive. Any written communication
183318 presented in the absenc e of the State Purchasing
184319 Director shall be presen ted orally during the
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185347 public hearing. Whether made in person or in
186348 writing, any comment made by the State Purchasing
187349 Director shall be made a part of the minutes of
188350 the hearing in full,
189-
190351 (4) within two (2) weeks after the convening of t he
191352 Legislature, the administrative officer of the
192353 state agency shall furnish to the Speaker of the
193354 House of Representatives, the President Pro
194355 Tempore of the Senate and to any member of the
195356 House or Senate, if requested by the member, a
196357 complete list of all of the types of se rvices
197358 paid for by uniform fixed rates , the amount of
198359 the rate last approved by the agency for the
199360 service and the number of contrac ts then in
200361 existence for each type of service. Any rate
201362 which has been determined to be excessive by th e
202363 State Purchasing Director shall be specifically
203364 identified in the list by the state agency, and
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205365 (5) at any time, the State Purchasing Director may
206366 review, suspend or terminate a contract entered
207367 into pursuant to the provisio ns of this paragraph
208368 if the Director determines th e contract is not
209369 necessary, is excess ive or is not justified,
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210396
211397 g. an acquisition for a client of the State Department of
212398 Rehabilitation Services; provided, the agency develops
213399 and maintains standards for su ch an acquisition. The
214400 agency may elect to utilize the Purchasing Division
215401 for an acquisition. The standards shall foster
216402 economy, provide a short response time, include
217403 appropriate safeguards, require written records,
218404 ensure appropriate competition for economical and
219405 efficient purchasing and shall be a pproved by the
220406 State Purchasing Direct or,
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223-ENR. S. B. NO. 1371 Page 6
224407 h. structured settlement agreements entered into by the
225408 Attorney General’s office in order to settle any
226409 lawsuit involving the state, the Legislature, any
227410 state agency or any employee or officia l of the state
228411 if:
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230412 (1) prior to entering into any contract for the
231413 services of an entity to administer a structured
232414 settlement agreement, the Attorney G eneral
233415 receives proposals from at least three entities
234416 engaged in providing such services, and
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236417 (2) the selection of a partic ular entity is made on
237418 the basis of the response to the request which is
238419 the most economical and provides the most
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239447 competent service which furthers the best
240448 interests of the state,
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242449 i. an acquisition by a st ate agency pursuant to a
243450 contract the State Purcha sing Director enters into on
244451 behalf of a state agency or awards and designates for
245452 use by state agencies,
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247453 j. an acquisition by the C ommittee for Sustaining
248454 Oklahoma’s Energy Resources pursuant to a contract
249455 with a local supplier for the purpose of holding a
250456 special event or an exhibition throu ghout the state.
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252457 7. Notwithstanding any other provision of law, an acquisition
253458 may be exempted from requirements of this section by the State
254459 Purchasing Director when in the State Purchasing Direct or’s
255460 discretion unusual, time-sensitive or unique circumst ances exist
256461 which make such exemption in the best and immediate interest of the
257462 state. As used in this subsection, “State Purchasing Director ”
258463 shall not mean a designe e. Any such acquisitions shal l be described
259464 in detail and publicly posted as a data fee d. The description shall
260465 include the name of the supplier, cost of the acquisition, reason
261466 for exemption and, as applicable, detailed comparison of the
262467 acquisition with comparable items, any identi fied cost savings
263468 resulting from the acquisition and a des cription of benefits to the
264469 state. The State Purchasing Director shall take no action under t he
265470 provisions of this subsection prior to such public posting.
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268497
269498 B. Competitively bid acquisitions shall be awarded to the
270499 lowest and best, or best value, bidder o r bidders.
271-
272500 C. Bids for an amount requiring submission of requisitions to
273501 the Purchasing Divis ion shall be evaluated by the Purchasing
274502 Division and the state agency rec eiving the acquisition. At a
275503 minimum, cost and te chnical expertise shall be considered in
276504 determining the lowest and best, or best value, bid. Further, the
277505 state agency shall prese nt its evaluation and recommendation to the
278506 State Purchasing Director. A documented evaluation report
279507 containing the evalua tions of the Purchasing Division or th e state
280508 agency shall be completed prior to the contract award and such
281509 report shall be a matte r of public record.
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283510 D. Except as otherwise specifically provided by law, the
284511 acquisition of food items or food products by a state agency from a
285512 public trust created pursuant to Sections 176 through 180.56 of
286513 Title 60 of the Oklahoma Statutes shall comply with competitive
287514 bidding requirements of this section.
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289515 E. Cooperative contracts shall not be utilized unless the
290516 purchasing cooperative and its affiliated suppl iers have complied
291517 with competitive bid requirements of this act and associated rules.
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293518 F. Notwithstanding any provision of this act, in all cases
294519 where federal granted funds are involved, the feder al laws, rules
295520 and regulations thereto shall govern to the extent necessary to
296521 inure to the benefit of such funds to this state.
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298549 G. A court order requi ring an acquisition by a state agency,
299550 whether or not such state agency is subject to this act, shall no t
300551 invalidate competitive bidding procedures required by th is section
301552 if such court order does not specify a specific supplier. Any such
302553 acquisition shall comply with competitive bid procedures.
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304554 SECTION 2. This act shall become effective November 1, 2022.
305555
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307-ENR. S. B. NO. 1371 Page 8
308-Passed the Senate the 9th day of March, 2022.
309-
310-
311-
312- Presiding Officer of the Senate
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315-Passed the House of Representatives the 28th day of April, 2022.
316-
317-
318-
319- Presiding Officer of the House
320- of Representatives
321-
322-OFFICE OF THE GOVERNOR
323-Received by the Office of the Governor this _______ _____________
324-day of _________________ __, 20_______, at _______ o'clock _______ M.
325-By: _______________________________ __
326-Approved by the Governor of the State of Oklahoma this _____ ____
327-day of _________________ __, 20_______, at _______ o'clock _______ M.
328-
329- _________________________________
330- Governor of the State of Oklahoma
331-
332-
333-OFFICE OF THE SECRETARY OF STATE
334-Received by the Office of the Secretary of State this _______ ___
335-day of __________________, 20 _______, at _______ o'clock _______ M.
336-By: _______________________________ __
556+COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT MODERNIZATION AND
557+EFFICIENCY, dated 04/12/2022 - DO PASS.