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STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 1567 By: Rosino of the Senate
and
Bush of the House
COMMITTEE SUBSTITUTE
An Act relating to state use; amending 74 O.S. 2021,
Section 3001, which relates to the State Use
Committee; providing en tity name; modifying member of
Council; requiring certain meetings; directing the
State Purchasing Director to administer the State Use
Program; providing certain authority and
responsibilities; 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 State Purchasing Director to award and
manage contracts to certain organizations; directing
deposit of certain fee; amending 74 O.S. 2021,
Section 3004.1, which relates to contracts;
authorizing certain contracts or awards; modifying
allowing expenditures; amending 74 O.S. 2021, Section
3004.2, which relates to the State Use Committee
Revolving Fund; allowing certain fee or levy;
amending 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 dist ribution; amending 74
O.S. 2021, Section 3007, which relates to procuring a
product or service at a certain price; modifying
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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; amending 74 O.S. 2021,
Section 3009, which re lates to annual reporting;
requiring certain report; repealing 74 O.S. 2021,
Sections 3010, which relate exemptions; providing for
codification; and providing an effec tive date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA :
SECTION 1. AMENDATORY 74 O.S. 2021, Section 3001, is
amended to read as follows :
Section 3001. A. There is hereby created in t he Office of
Management and Enterprise Services a committee council to be known
as the “State Use Committee Council”. The Committee Council shall
consist of seven (7) members and one nonvoting member as follo ws:
1. A private citizen conversant with the employment needs of
people with severe disabilities who shall be appointed by and serve
at the pleasure of the Governor to act as an advocate for th e
employment needs of people with severe disabilities;
2. The Director of the Office of Management and Enterprise
Services or designee;
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3. The Director of the Division of Services for the Blind and
Visually Impaired of the State Department of Rehabilitat ion
Services, or designee;
4. The past president of Oklahoma Community-Based Providers or
designee to serve for a one -year period, who may be reappointed by
the succeeding president One member who shall be appointed by th e
President Pro Tempore of the Senate ;
5. An individual or a parent or guardian of an individua l with
severe disabilities who participates in vocational programming
through a sheltered environment facility qualified non-profit agency
for individuals with disabilit ies, to be selected by the Commi ttee
appointed by the Speaker of the House of Representatives;
6. The Director of Human Services, or designee; and
7. A certified procurement officer from any state agency
appointed by the State Purchasing Director, selected to represent
the customer agencies of the State of Oklahoma; and
8. As a nonvoting member, a A person employed by the Office of
Management and Enterprise Services Central Purchasing Division as a
contracting officer in the purchasing division , appointed by the
State Purchasing Director with the advice of the Committee and
designated specifically to solicit, develop, and ne gotiate contracts
with agencies and individuals .
B. The Committee shall elect from among its membership a Chair
and a Vice Chair who shall both serve for a period of one (1) year.
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C. The private citizen citizens on the Committee Council shall
serve for a period of two (2 ) years and may be reappointed by the
appointing authority. Any private citizen appointed pursuant to
this section to fill a vacanc y occurring prior to the expira tion of
the term for which the predecess or was appointed shall be appointed
only for the remainder of the term.
D. Any member of the Committee shall be prohibited from voting
on any issue in which the member has an interest The State Use
Council shall meet a minimum of twice a year for the purpose of
exchanging ideas to market and improve the State Use Program.
SECTION 2. 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 authority and responsibility to admin ister and oversee the
State Use Program including but not limited to :
1. Promulgating 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 procur ement 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 .
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SECTION 3. AMENDATORY 74 O.S. 2021, Section 3003, is
amended to read as follows:
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 Council” means the State Use Committee Council;
3. “Qualified nonprofit agency for the severely handicapped
employment of individuals with disabilities” means a nonprofit
agency:
a. employing severely disabled persons with disabilities
who constitute at lea st seventy-five percent (75%) of
the personnel direct labor hours engaged in direct
production, manufacturing, processing and/or
assembling of products or services o ffered by the
agency for procurement by this state and or who meet
the definition of “blind person” blind person as
provided for in paragrap h 1 of this section, or
b. which is certified as a sheltered workshop by the Wage
and Hour Division of the United States Department of
Labor;
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4. “Severely disabled person Individuals with disabilities”
means an individual with a physical or mental disability
constituting a substantial handicap to employment and preventing the
person from engaging in normal competitive employment and /or
includes any blind person;
5. “Qualified organization” means a blind person, qualifie d
nonprofit agency for the severely handicapped, or severely disabled
person employment of individuals with disabilities contracting to
supply goods or services;
6. “Manufactured” means goods made by manual labor;
7. “Produced” means to have brought into exis tence or created
from raw materials;
8. “Processed” means the action of taking something through an
established and mostly routine set of procedures or steps to
substantially convert a potential product 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. “Assemble” means to put or fit together or put together the
parts of a potential product;
10. “Central nonprofit agency (CNA)” means a qualified 501(C)3
nonprofit entity meeting the qualifications in the Request for
Procurement (RFP) issued by the Office of Management and Enterprise
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Services selected to administer and oversee the State Use Program ;
and
11. “Procurement schedule” means a designated schedule of
products and services currently approved by the Office of Management
and Enterprise Services Central Purchasing Division as suitable to
procure from qualified organizations particip ating in the State Use
Program.
SECTION 4. AMENDATORY 74 O.S. 2021, Section 3004, is
amended to read as follows:
Section 3004. The Committee Office of Management and Enterprise
Services Central Purchasing Division shall designate and distribute
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 individual with disabilities or
qualified nonprofit agency for the severely disabled employment of
individuals with disabilities , as defined by this act in Section
3003 of this title, which the Committee State Purchasing Director
determines are suitable for procurement by the state. The products
and services on contract will b e published on the procurement
schedule and will be designated as mandatory. 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
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disabled individuals who are not certified by the Committee 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.
SECTION 5. AMENDATORY 74 O.S. 2021, Section 3004.1, is
amended to read as follows:
Section 3004.1. A one-percent fee of any contract for products
or services of the severely disa bled shall be assessed against the
qualified organization and The State Purchasing Director may enter
or award contracts for products or services to a q ualified
organization as defined in Section 3003 of this title and assess a
contract management fee or l evy. The contract management fe e or
levy shall be deposited in the State Us e Committee Council Revolving
Fund, as created in Section 3004.2 of this title, for the salary,
administrative costs, annual trainings, professional ass ociation
memberships, qualified agency operational improvement grants,
periodic economic advantage study, Annual Report development and
other expenses incurred by the Central Purchasing Division of the
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Office of Management and Enterprise Services for promoting goods and
services provided by qualified organizatio ns.
SECTION 6. AMENDATORY 74 O.S. 2021, Section 3004.2 , is
amended to read as follows:
Section 3004.2. There is hereby created in the State Tre asury a
revolving fund for the Office of M anagement and Enterprise Services
to be designated the “State Use Committee Council Revolving Fund”.
The fund shall be a co ntinuing fund, not subject to fiscal year
limitations, and shall consist of all proceeds from the one-percent
management fee or levy on contracts for purchases of products or
services of the severely disabled individuals with disabilities, 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 in vest. Interest earned shall be
retained by the fund. All monies accrui ng to the credit of the fund
are hereby appropriated and may be budgeted and expended by the
Office of Management and Enterprise Services for the salary and
other administrative expens es of the buyer and clerical and
technical support in the Central Purchasing Division of the Office
of Management and Enterprise Services responsible for contracts for
the products and services of the severely disabled individuals with
disabilities and expenses the Office incurs to support Committee
State Use operations including services of the Centralized Non -
Profit Agency (CNA). Expenditures from the fund shall be made upon
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warrants issued by the State T reasurer against claims filed as
prescribed by law with the Di rector of the Office of Management and
Enterprise Services for approval and payment.
SECTION 7. 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 m arket
price of all products and services included in the procurement
schedule and shall rev ise such prices in accor dance with changing
market conditions; provided, howev er, a change in price s hall not be
effective prior to the expiration of fifteen (15) thirty (30) days
from the date on which such change is made by the Committe e
approved. Approved fair market prices shall be re flected on State
Use contracts and procurement sche dules within thirty (30) days of
approval and distribution.
SECTION 8. 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
the:
1. Management of the day-to-day operations of the program;
2. The facilitation, promotion, and the distribution of orders
of the state for products or serv ices on the procurement schedule
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among qualified nonprofit agencies for people with severe
disabilities;
3. Scheduling and conducting annual training sessions;
4. Publishing the approved State Use Procurement Schedule;
5. Promotion of the State Use program through development and
distribution of program marketing material, pr omotion of program
through continued contact with current and fut ure customers; and
6. All other duties assigned by the RFP through the O ffice of
Management and Enterprise Services .
SECTION 9. 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 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
within 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.
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C. Provided, the requirements of this section shall not apply
to the procurement of janito rial 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 market 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 lower 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 is authorized to
purchase products and services from any qualified organization as
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 10. AMENDATORY 74 O.S. 2021, Section 3008, is
amended to read as follows:
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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 shall be construed to prohibit any
department 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 t o 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 products 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 E nterprise Services Central
Purchasing Division exceeds a current market price for the same
product or service, and such lower market price has been verified by
the agency through compliance with the fair market ana lysis process
approved by the Office of Ma nagement 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.
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SECTION 11. AMENDATORY 74 O.S. 2021, Se ction 3009, is
amended to read as follows:
Section 3009. A. The State Use Committee Office of Management
and Enterprise Services Central Purch asing Division shall prescribe
rules to carry out the purposes of the provisions of Sections 3001
through 3009 of this title.
B. The rules shall include requireme nts for:
1. Publishing a catalog listing goods and services and jobs
that workshops qualified agencies employ ing individuals with
disabilities can provide the state, annually; and
2. Conducting a minimum of six two meetings per year of the
State Use Council, in compliance with the Oklahoma Open Meeting Act,
Section 301 et seq. of Title 25 of the Oklahoma Statutes ;
3. Making available to contractors the mi nutes of all meetings;
4. Notifying contractors a t least ten (10) days prior to
meeting dates. Meet ings shall be called by the Committee Cha ir; and
5. Establishing guidelines by which a vendor may file a
grievance.
C. The Committee shall report any vio lations of the intent of
the laws to the Attorney General’s office within thirty (30) days of
their determination of such violations.
D. C. The Committee shall file a n Annual Report On an annual
basis, the Office of Mana gement and Enterprise Ser vices shall within
sixty (60) days after the close of the legislative fiscal year,
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transmit a strategic plan for the State Use Program with to the
President Pro Tempore of the Senate, the Speaker of the House of
Representatives and the Governor.
SECTION 12. REPEALER 74 O.S. 2021, Section 3010, is
hereby repealed.
SECTION 13. This act shall become effective November 1, 2022.
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