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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
SENATE BILL 1567 By: Rosino
AS INTRODUCED
An Act relating to state use; directing the State
Purchasing Director to administer the State Use
Program; amending 74 O.S. 2021, Section 3003, which
relates to definitions; modifying certain
definitions; amending 74 O.S. 2021, Section 3004 ,
which relates to procurement schedules; modifying
entity responsible for procurement schedule;
directing Central Purchasing Director to award and
manage contracts to certain organizations; directing
deposit of certain fee; amending 74 O.S. 2021,
Section 3004.2, which relates to the State Use
Committee Revolving Fund; transferring funds into
certain revolving fund by a specific date; amendi ng
74 O.S. 2021, Section 3005, which relates to fair
market pricing; modifying entity responsible for
determining fair market price of certain products and
services; modifying time period for price changes to
be effective; 74 O.S. 2021, Section 3006, whic h
relates to distribution agency; allowing the State
Purchasing Director to contract with a third-party
for certain operations and distribution ; amending 74
O.S. 2021, Section 3007, which relates to procuring a
product or service at a certain price; modifying
procurement source; modifying en tity responsible for
determining fair market price; modifying procurement
requirements; removing certain exemption; authorizing
municipalities and counties to make certain purchases
from qualified organizations; amending 74 O.S . 2021,
Section 3008, which relates to exceptions; removing
exemption; requiring certain pricing review; allowing
for temporary exception under certain circumstances;
allowing Central Purchasing Division to prescribe
rules to carry out this act; requiring the Offi ce of
Management and Enterprise Services to send a
strategic plan to the Governor, President Pro Tempore
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of the Senate, and the Speaker of the House of
Representatives within a specific time period ;
repealing 74 O.S. 2021, Sections 3001, 3004.1, and
3009, which relate to the State Use Committee,
promotion fees, and rules; providing for
codification; and providing an effec tive date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of l aw to be codified
in the Oklahoma Statutes as Section 3001.1 of Title 74, unless there
is created a duplication in numb ering, reads as follows:
The State Purchasing Director, under the supervision of the
Director of the Office of Manag ement and Enterprise Services, shall
have the sole and exclusive authority and responsibility to
administer and oversee the State Use Program including but not
limited to:
1. Promulgate rules relating to the program;
2. Qualification of organizations par ticipating in the program;
3. Contracting with qualified organizations for products and
services to be included on the procurement schedule;
4. Determination of fair market price of all products and
services to be included o n the procurement schedule; and
5. Designation and publication of a procurement schedule .
SECTION 2. AMENDATORY 74 O.S. 2021, Section 3003, is
amended to read as follows:
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Section 3003. As used in this act Section 3001 et seq. of this
title:
1. “Blind person” means a person having a visual acuity n ot to
exceed 20/200 in the bet ter eye, with correcting lenses, or visual
acuity greater than 20/200 but with limitation in the field of
vision such that the widest diameter of visual fie ld subtends an
angle no greater than twenty (20) degrees;
2. “Committee” means the State Use Commit tee;
3. 2. “Qualified nonprofit agency for the severely handicapped ”
means a nonprofit agency:
a. employing severely disable d persons who constitute at
least seventy-five percent (75%) of t he personnel
engaged in direct produc tion of products or services
offered by the agency for procurement by this state
and who meet the defin ition of “blind person” as
provided for in paragrap h 1 of this section, or
b. which is certified as a sheltered work shop by the Wage
and Hour Division of the United States Department of
Labor;
4. 3. “Severely disabled person” means an individual with a
physical or mental disability constituting a substantial handicap to
employment and preventing the person from engagin g in normal
competitive employment and includes any blind person;
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5. 4. “Qualified organization” means a blind person, qualified
nonprofit agency for the severely handicapped, or severely disabled
person contracting to su pply goods or services;
6. 5. “Manufactured” means goods made by manual l abor;
7. 6. “Produced” means to have brought into exis tence or
created from raw materials;
8. 7. “Processed” means the action of taking something through
an established and mostly routine set of procedures or steps to
substantially convert a potential prod uct from one form to another.
This action involves a sequence of multiple steps each requiring a
distinct decision-making process to evolve a potential product to
the next step; and
9. 8. “Assemble” means to put or fit together or put together
the parts of a potential product;
9. “Central nonprofit agency ” means an entity designated as a
central nonprofit agency under contract with the Office of
Management and Enterprise Services pursuant to the authority of the
State Purchasing Director in Section 85.5 of this title; and
10. “Procurement schedule” means a designated schedule of
products and services curren tly approved by the Office of Management
and Enterprise Services Central P urchasing Division as suitable to
procure from qualified organizations particip ating in the State Use
Program.
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SECTION 3. AMENDATORY 74 O.S. 2021, Section 3004, is
amended to read as follow s:
Section 3004. The Committee Office of Management and Enterprise
Services Central Purchasing shall designate and maintain by
regulation a schedul e, hereinafter referred to as the procurement
schedule, of the products directly manufactured, produced, processed
or assembled or services directly performed, offered o r provided by
any severely disabled person or qualified nonprof it agency for the
severely disabled, as defined by this act in Section 3003 of this
title, which the Committee State Purchasing Director determines are
suitable for procurem ent by the state. No state agency shall
purchase, pursuant to Section 3007 of this title, products or
services purporting to be made by se verely disabled persons in
workshops which are not certified by the Committee or by se verely
disabled individuals who are not certified by the Committe e The
Office of Management and Enterprise Services Central Purchasing
Division shall have the authority to qualify organizations for
inclusion in the State Use Program, monitor qualified organizations
for continued complia nce to remain active in the program and re move
organizations from the program. Central Purchasing shall have the
authority to award and manage cont racts to the qualified
organizations as well as to renegotiate or cancel contracts whe n
appropriate.
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SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3004.1a of Title 74, unless
there is created a duplication in numb ering, reads as follows:
The State Purchasing Director may enter or award contract s for
products or services to a q ualified organization as defined in
Section 3003 of Title 74 of the Oklahoma Statutes and assess a
contract management fee or levy. The contract management fe e or
levy shall be deposited in the Office of Mana gement and Enterprise
Services Contract Management Revol ving Fund statutorily created in
Section 85.33A of Title 74 of the Oklahoma Statutes .
SECTION 5. AMENDATORY 74 O.S. 2021, Section 3004.2, is
amended to read as follows:
Section 3004.2. A. There is hereby created in the State
Treasury a revolving fund for the Office of M anagement and
Enterprise Services to be designated the “State Use Committee
Revolving Fund”. The fund shall be a continuing fund, not subject
to fiscal year limitations , and shall consist of all proceeds from
the one-percent fee on contracts for purchases of products or
services of the severely disabled, as provided in Section 3004.1 of
this title. The fund shall be invested in any of the types of
instruments in which the State Treasurer is authorized by law to
invest. Interest earned shall be retained b y the fund. All monies
accruing to the credit of the fund are hereby appropriated and may
be budgeted and expended by the O ffice of Management and Enterprise
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Services for the salary and other administrative expens es of the
buyer and clerical and technical support in the Purchasing Div ision
of the Office of Management and Enterprise Services responsible for
contracts for the pr oducts and services of the severely disabled and
expenses the Office incurs to support Com mittee operations.
Expenditures from the fund shall be made upon warran ts issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Servic es for
approval and payment .
B. Effective November 1, 2022, all funds remaining in the State
Use Committee Revolving Fund shall be transferred to the Office of
Management and Enterprise Services Contract Management Revol ving
Fund statutorily authorized in Section 85.33A of this title. Any
encumbrance or obligation of the fund shall also be transferred to
the Office of Management and Enterpri se Services Contract Management
Revolving Fund upon the effective date of this act. When the
transfer is complete , the State Use Committee Revolving Fund will
cease to exist.
SECTION 6. AMENDATORY 74 O.S. 2021, Section 3005, is
amended to read as follows:
Section 3005. The Committee Office of Management and Enterprise
Services Central Purchas ing Division shall determine the fair market
price of all products and services included in the proc urement
schedule and shall rev ise such prices in accor dance with changing
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market conditions; provided, howev er, a change in price shall not be
effective prior to the expiration of fifteen (15) days from the date
on which such change is made by the Committe e approved.
SECTION 7. AMENDATORY 74 O.S. 2021, Section 3006, is
amended to read as follows:
Section 3006. The Committee State Purchasing Director may
designate contract with a central nonprofit agency to facilitate
third-party for the:
1. Management of the day to day operations of the program; or
2. The facilitation of the distribution of orders of the state
for products or serv ices on the procurement schedule among qualified
nonprofit agencies for people with severe disabilities as defined in
Section 3003 of this title.
SECTION 8. AMENDATORY 74 O.S. 2021, Section 3007, is
amended to read as follows:
Section 3007. A. Whenever the State of Oklahoma or any of its
agencies intends to procure any produ ct or service included in the
procurement schedule, that entity shall secure the product or
service from a qualified nonprofit agency providing employment to
people with severe disabilities organization as defined in Section
3003 of this title at the fair market price determined by the
Committee Office of Management and Enterprise Services Central
Purchasing Division, if the product or service is available with in
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the period required by the entity and meets the specifications of
the entity.
B. An agency of this state shall not evade the intent and
meaning of this section by slight variations from standards ad opted
by the Office of Management and Enterprise Servi ces Central
Purchasing Division.
C. Provided, the requirements of this section shall not apply
to the procurement of janitorial services by the Oklahom a State
Bureau of Investigation. The Bureau shall conduct background
investigations and national crimin al history record checks on
companies and individu als with which it contracts to provide
janitorial services.
D. When the fair market price for a produ ct or service approved
by the Committee exceeds a current m arket price for the same product
or service, and such lower market price has been verified by t he
agency through compliance with the fair marke t analysis process
approved by the Office of Management and Enterprise Services, the
state use contracting office r may grant a temporary exception to a
requesting agency so that the agency may purchase the pr oduct or
service from the vendor offering the lo wer market price. The
temporary exception shall autom atically expire when a new fair
market price is established by the State Use Committee Any
municipality or county agency of this state i s authorized to
purchase products and services from any qualified organization as
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defined in Section 3003 of this title. The qualified organization
shall be able to meet the needs and specific ations for the products
or services required by the purchasing body at the fai r market
price.
SECTION 9. AMENDATORY 74 O.S. 2021, Sec tion 3008, is
amended to read as follows:
Section 3008. A. Nothing in Sections 3001 et seq. of this
title pursuant to purchase s of products and services from people
with severe disabilities a qualified organization shall be construed
to prohibit any departme nt or agency of the state from manufacturing
or supplying its own products or services for its own use.
Procurements made pursuant to this act shall not be subject to the
competitive bid requirements of the Oklahoma Central P urchasing Act,
Section 85.1 et seq. of this title.
B. The Office of Management and Enterprise Ser vices Central
Purchasing Division shall require an annua l qualified organization
pricing review for all pr oducts and services approved and designated
on the procurement schedule. The method of the pricing review shall
be defined in the promulgated rules.
C. When the fair market price for a product or service approved
by the Office of Management and Enterpris e Services Central
Purchasing Division exceeds a current ma rket price for the same
product or service, and such l ower market price has been verified by
the agency through compliance with the fair market ana lysis process
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approved by the Office of Management and Enterprise Services Central
Purchasing Division, the State Use contracting officer m ay grant a
temporary exception to a requesting agency so that the agency may
purchase the product or service from the supplier offering the lower
market price.
SECTION 10. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 3009.1 of Title 74, unless there
is created a duplication in numb ering, reads as follows:
The Office of Management and Enter prise Services Central
Purchasing Division, with appro val by the Director of the Office of
Management and Enterprise Services, shall prescribe rules to carry
out the purposes of the provisions of S ections 3001.1 et seq. of
Title 74 of the Oklahoma Statutes .
SECTION 11. NEW LAW A new sec tion of law to be codifi ed
in the Oklahoma Statutes as Section 3009.2 of Title 74, unless there
is created a duplication in numb ering, reads as follows:
On an annual basis, t he Office of Management and Enterprise
Services shall transmit to the Governor, President Pro Tempore of
the Senate, and the Speaker of the House of Representatives a
strategic plan for the State Use Pro gram. The plan shall be due
within sixty (60) days aft er the close of the fiscal y ear.
SECTION 12. REPEALER 74 O.S. 2021, Sections 3001,
3004.1, 3009, and 3010, are hereby repealed.
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SECTION 13. This act shall become effective November 1, 2022.
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