An Act
ENROLLED SENATE
BILL NO. 1567 By: Rosino and Stephens of the
Senate
and
Bush of the House
An Act relating to state use; amending 74 O.S. 2021,
Section 3001, which relates to the State Use
Committee; providing entity 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; amending
74 O.S. 2021, Section 3004.1, which relates to
contracts; authorizing certain contracts or awards;
directing deposit of certain fee; modifying allowing
expenditures; amending 74 O.S. 2021, Section 3004.2 ,
which relates to the State Use Committee Revolvi ng
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; amending 74 O.S. 2021, Section 3006, which
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
procurement source; modifying entity responsible for
determining fair market price; modifying procurement
requirements; removing certain exemption; authorizing
ENR. S. B. NO. 1567 Page 2
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 circumstance s;
amending 74 O.S. 2021, Section 3009, which relates to
annual reporting; allowing Central Purchasing
Division to prescribe rules to carry out this act;
requiring certain report; repealing 74 O.S. 2021,
Section 3010, which relates to exemptions; providing
for codification; and providing an effec tive date.
SUBJECT: State use
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA :
SECTION 1. AMENDATORY 74 O.S. 2 021, Section 3001, is
amended to read as follows :
Section 3001. A. There is hereby crea ted in the Office of
Management and Enterprise Services a committee an advisory council
to be known as the "State Use Committee Advisory Council". The
Committee Council shall consist of seven (7) members and one
nonvoting member as follows:
1. A private citizen conversant with the employment needs of
people with severe significant disabilities who shall be appointed
by and serve at the pleasure of the Governor to act as an advocate
for the employment needs of people with severe significant
disabilities;
2. The Director of the Office of Management and Enterprise
Services or designee;
3. The Director of the Division of Services for the Blind and
Visually Impaired of th e State Department of Rehabilitat ion
Services, or designee;
4. The past president of Okl ahoma Community-Based Providers or
designee to serve for a one-year period, who may be reappointed by
ENR. S. B. NO. 1567 Page 3
the succeeding president One member who shall be a state use
provider who shall be appointed by th e President Pro Tempore of the
Senate;
5. An individual or a parent or guardian of an individual with
severe significant disabilities who participates in vocational
programming through a sheltered environment facility qualified
nonprofit agency for individuals with disabilit ies, to be selected
by the Committee 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 age ncy
appointed by the State Purchasing Director, select ed 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 Enterp rise 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 negotiate 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 o ne (1) year.
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. A ny private citizen appointed pursuant to
this section to fill a vacancy occurring prior to the expiration 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 pr ohibited from voting
on any issue in which the member has an interest The State Use
Advisory Council shall meet a minimum of twice a year for the
purpose of exchanging ideas to market and improve the State Use
Program.
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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 numbering, reads as follows:
The State Purchasing Director, under th e supervision of the
Director of the Office of Ma nagement 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 procurement schedule;
4. Determination of fai r market price of all products and
services to be included on the procurement schedule; and
5. Designation and publication of a procurement schedule .
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. o f 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 th e field of
vision such that the widest diameter of visual f ield subtends an
angle no greater than twenty (20) degrees;
2. "Committee Council" means the State Use Committee Advisory
Council;
3. "Qualified nonprofit agency for the severely handicapped
employment of people with significant disabilities " means a
nonprofit agency:
a. employing severely disabled persons with significant
disabilities who constitute at least seventy-five
ENR. S. B. NO. 1567 Page 5
percent (75%) of the personnel direct labor hours
engaged in direct production, manufacturing,
processing and/or assembling of products or services
offered by the agency for procurement by this state
and or who meet the definition of "blind person" blind
person as provided for in paragraph 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;
4. "Severely disabled person” "Person with significant
disabilities" means an individual with a physical or mental
disability constituting a s ubstantial 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, or qualified
nonprofit agency for the severely handicapped, or seve rely disabled
person employment of people with significant disabilities
contracting to supply goods or services;
6. "Manufactured" means goods made by manual labor;
7. "Produced" means to have brought into existence 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
ENR. S. B. NO. 1567 Page 6
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 schedule, hereinafter referred to as the procurement
schedule, of the products directly manufactured, produced, processed
or assembled or services directly performed, offered or provided by
any severely disabled person with significant disabilities or
qualified nonprofit agency for the severely disabled employment of
people with significant 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. No
state agency shall purchase, pursuant to Section 3007 of this title,
products or services purporting to be made by severely disabled
persons in workshops which are not certified by the Committee or by
severely disabled individuals who are not certified by the Committee
The products and services on contract will b e published on the
procurement schedule and will be designated as mandatory. 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 remove
organizations from the program. Central Purchasing shall have the
authority to award and manage contracts to the qualified
organizations as well as to renegotiate or cancel contracts when
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
ENR. S. B. NO. 1567 Page 7
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 fee or
levy shall be deposited in the State Us e Committee Advisory Council
Revolving Fund, as created in Section 3004.2 of this title, for the
salary, administrative costs, annual trainings, professional
association memberships, qualified agency operational improvement
grants, periodic economic advantage study, Annual Report
development, and other expenses incurred by the Central Purchasing
Division of the Office of Management and Enterprise Services for
promoting goods and services provi ded by qualified organizations.
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 Treasury a
revolving fund for the Office of M anagement and Enterprise Services
to be designated the "State Use Committee Advisory 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 people with
significant 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 l aw 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 expend ed by the Office of Management and Enterprise
Services for the salary and other administrativ e expenses 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 people with significant 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 warrants issued by the
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
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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 revise such prices in accordance with changing
market conditions; provided, h owever, a change in price shall not be
effective prior to the expiration of fifteen (15) thirty (30) days
from the date on which such change is made by the Committee
approved. Approved fair market prices shall be reflected on State
Use contracts and procurement schedules 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:
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 services on the procurement schedule
among qualified nonprofit agencies for people with severe
significant 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 Office of
Management and Enterprise Services.
SECTION 9. AMENDATORY 74 O.S. 2021, Section 3007, is
amended to read as follows:
ENR. S. B. NO. 1567 Page 9
Section 3007. A. Whenever the State of Oklahoma this state or
any of its agencies intends to procure any product 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 significant disabilities at the
fair market price determin ed by the Committee Office of Management
and Enterprise Services Central P urchasing 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 Services Central
Purchasing Division.
C. Provided, the requirements of this section shall not apply
to the procurement of j anitorial services by the Oklahoma State
Bureau of Investigation. The Bureau shall conduct background
investigations and national criminal history record checks on
companies and individu als with which it contracts to provide
janitorial services.
D. When the fair market price for a product 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. Th e
temporary exception shall automatically 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 specifications for the products
or services required by the purchasing body at the fai r market
price. Procurements made pursuant to the provisions of this sec tion
shall not be subject to competitive bid requirements.
SECTION 10. AMENDATORY 74 O.S. 2021, Section 3008, is
amended to read as follows:
ENR. S. B. NO. 1567 Page 10
Section 3008. A. Nothing in Sections Section 3001 et seq. of
this title pursuant to purchases of products and services from
people with severe significant 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 Section 3001 et seq. of this
title shall not be subject t o the competitive bid requirements of
the Oklahoma Central Purchasing Act, Section 85.1 et seq. of this
title.
B. The Office of Management and Enterprise Services Central
Purchasing Division shall require an annual 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 Enterprise 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 analysis process
approved by the Office of Management and Enterprise Services Central
Purchasing Division, the State Use contracting officer may 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 11. AMENDATORY 74 O.S. 2021, Section 3009, is
amended to read as follows:
Section 3009. A. The State Use Committee Office of Management
and Enterprise Services Central Purchasing Division shall prescribe
rules to carry out the purposes of the provisions of Sections 3 001
through 3009 of this title.
B. The rules shall include r equirements for:
1. Publishing a catalog listing goods and services and jo bs
that workshops qualified agencies employing people with significant
disabilities can provide the state, annually; and
ENR. S. B. NO. 1567 Page 11
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 Okl ahoma 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. Meetings shall be called by the Committee Chair; and
5. Establishing guidelines by which a vendor ma y 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. The Committee shall file an Annual Report On an annual
basis, the Office of Management and Enterprise Ser vices shall,
within sixty (60) days after the close of the legislative fiscal
year with, transmit a strategic plan for the State Use Program 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.
ENR. S. B. NO. 1567 Page 12
Passed the Senate the 9th day of May, 2022.
Presiding Officer of the Senate
Passed the House of Representatives the 27th day of April, 2022.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of _________________ __, 20_______, at _______ o'clock _______ M.
By: _______________________________ __
Approved by the Governor of the State of Oklahoma this _____ ____
day of _________________ __, 20_______, at _______ o 'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this _______ ___
day of __________________, 20 _______, at _______ o'clock _______ M .
By: _______________________________ __