Old	New	Differences
1	1
2	2
3	3
4	4	Req. No. 3355 Page 1 1
5	5	2
6	6	3
7	7	4
8	8	5
9	9	6
10	10	7
11	11	8
12	12	9
13	13	10
14	14	11
15	15	12
16	16	13
17	17	14
18	18	15
19	19	16
20	20	17
21	21	18
22	22	19
23	23	20
24	24	21
25	25	22
26	26	23
27	27	24
28	28	1
29	29	2
30	30	3
31	31	4
32	32	5
33	33	6
34	34	7
35	35	8
36	36	9
37	37	10
38	38	11
39	39	12
40	40	13
41	41	14
42	42	15
43	43	16
44	44	17
45	45	18
46	46	19
47	47	20
48	48	21
49	49	22
50	50	23
51	51	24
52	52
53	53	STATE OF OKLAHOMA
54	54
55	55	2nd Session of the 58th Legislature (2022)
56	56
57	57	SENATE BILL 1692 By: Bergstrom
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to state contracts; creati ng the
66	66	Establishing Public-Private Partnership Office Act;
67	67	providing definitions; establishing Office of Public-
68	68	Private Partnerships; providing for appointment of
69	69	Director by Governor; authoriz ing the office to
70	70	identify and approve proposals; authorizing Director
71	71	to work with state agencies to provide public
72	72	services; directing the Director to p rovide annual
73	73	report to Legislature and post report online;
74	74	allowing for the submission of proposals by
75	75	individuals or state agencies; requiring the office
76	76	to conduct a study on potential projects and publi c
77	77	services; providing factors to consider in study ;
78	78	requiring publication of results of the study online;
79	79	requiring notice of intent by the office to enter
80	80	into a contract; requiring the office to prepare a
81	81	request for proposals; authorizing office to evaluate
82	82	proposals; authorizing Director to n egotiate contract
83	83	with proposer; providing provisions upon failure to
84	84	negotiate contract; providing exemption f rom taxes or
85	85	assessments during contract period; promulgation of
86	86	rules; providing exemption of office fr om the Central
87	87	Purchasing Act; providing for codif ication; and
88	88	providing an effective date.
89	89
90	90
91	91
92	92
93	93	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
94	94	SECTION 1. NEW LAW A new section of law to be codified
95	95	in the Oklahoma Statutes as Section 131.1 of Title 74, unless there
96	96	is created a duplication in numbering, reads as follows:
97	97
98	98
99	99	Req. No. 3355 Page 2 1
100	100	2
101	101	3
102	102	4
103	103	5
104	104	6
105	105	7
106	106	8
107	107	9
108	108	10
109	109	11
110	110	12
111	111	13
112	112	14
113	113	15
114	114	16
115	115	17
116	116	18
117	117	19
118	118	20
119	119	21
120	120	22
121	121	23
122	122	24
123	123	1
124	124	2
125	125	3
126	126	4
127	127	5
128	128	6
129	129	7
130	130	8
131	131	9
132	132	10
133	133	11
134	134	12
135	135	13
136	136	14
137	137	15
138	138	16
139	139	17
140	140	18
141	141	19
142	142	20
143	143	21
144	144	22
145	145	23
146	146	24
147	147
148	148	This act shall be known and may be cited as the “Establishing
149	149	Public-Private Partnership Office Act”.
150	150	SECTION 2. NEW LAW A new section of law to be codified
151	151	in the Oklahoma Statutes as Section 131.2 of Title 74, unless there
152	152	is created a duplication in numbering, reads as follows:
153	153	As used in this act:
154	154	1. “Contract” means any purchase and sal e agreement, lease,
155	155	service agreement, franchise agreement, concession agr eement, or
156	156	other written agreement entered in to under this act with respect to
157	157	the provision of a public service and any project related thereto;
158	158	2. “Director” means the Director of the Office of Public -
159	159	Private Partnerships;
160	160	3. “Improvement” means any construction, reconstruction,
161	161	rehabilitation, renovation, installation, improvement, en largement,
162	162	or extension of property or improvements to property;
163	163	4. “Office” means the Office of Public-Private Partnerships;
164	164	5. “Private sector entity” means any corporation, whether for
165	165	profit or not for profit, limited liability company, partnership,
166	166	limited liability partnership, sole proprietorship, business trust,
167	167	joint venture, or other entity, but shall not mean the state, a
168	168	political subdivision of this state, or a public or g overnmental
169	169	entity, agency, or instrumentality of this state ;
170	170	6. “Project” means real or personal property, or both, and
171	171	improvements thereto or in support thereof including undivided and
172	172
173	173
174	174	Req. No. 3355 Page 3 1
175	175	2
176	176	3
177	177	4
178	178	5
179	179	6
180	180	7
181	181	8
182	182	9
183	183	10
184	184	11
185	185	12
186	186	13
187	187	14
188	188	15
189	189	16
190	190	17
191	191	18
192	192	19
193	193	20
194	194	21
195	195	22
196	196	23
197	197	24
198	198	1
199	199	2
200	200	3
201	201	4
202	202	5
203	203	6
204	204	7
205	205	8
206	206	9
207	207	10
208	208	11
209	209	12
210	210	13
211	211	14
212	212	15
213	213	16
214	214	17
215	215	18
216	216	19
217	217	20
218	218	21
219	219	22
220	220	23
221	221	24
222	222
223	223	other interests therein, used for or in the p rovision of a public
224	224	service;
225	225	7. “Proposer” means a private sector entity, a local or
226	226	regional public entity or agency, or any group or combination
227	227	thereof, submitting qualifica tions or a proposal for a public-
228	228	private partnership contract;
229	229	8. “Public service” means a service provided for a public
230	230	purpose of the responsible state agency and identified in
231	231	procurement documents under this act; and
232	232	9. “Responsible state agency ” means the agency, department,
233	233	commission, authority, or other instrumentality of the state
234	234	responsible for the provision of the public service , which is or is
235	235	proposed to be the subject of a contract.
236	236	SECTION 3. NEW LAW A new section of law to be codified
237	237	in the Oklahoma Statutes as S ection 131.3 of Title 74, unless there
238	238	is created a duplication in numbering, reads as follows:
239	239	A. There shall be established an Office of Public-Private
240	240	Partnerships reporting to the Governor and independent of other
241	241	agencies and departments of this stat e. The Office shall be headed
242	242	by a Director, appointed by the Governor for a term of five (5)
243	243	years, who shall demonstrate knowledge, trainin g, or experience in
244	244	one or more of the following a reas:
245	245	1. Infrastructure development or operation;
246	246	2. Capital markets and finance including municipal finance;
247	247
248	248
249	249	Req. No. 3355 Page 4 1
250	250	2
251	251	3
252	252	4
253	253	5
254	254	6
255	255	7
256	256	8
257	257	9
258	258	10
259	259	11
260	260	12
261	261	13
262	262	14
263	263	15
264	264	16
265	265	17
266	266	18
267	267	19
268	268	20
269	269	21
270	270	22
271	271	23
272	272	24
273	273	1
274	274	2
275	275	3
276	276	4
277	277	5
278	278	6
279	279	7
280	280	8
281	281	9
282	282	10
283	283	11
284	284	12
285	285	13
286	286	14
287	287	15
288	288	16
289	289	17
290	290	18
291	291	19
292	292	20
293	293	21
294	294	22
295	295	23
296	296	24
297	297
298	298	3. Public-sector planning; or
299	299	4. Procurement.
300	300	B. The Office shall have the authority to identify potential
301	301	public-private partnerships, to approve a short -list of qualified
302	302	proposers, to approve requests f or proposals, and to approve
303	303	template contracts before they are sent to proposers. The Office
304	304	shall have the authority to charge fees for se rvices it shall render
305	305	as part of the procedures to establish partner ships in accordance
306	306	with this act and to recei ve money on loan to covers its operation
307	307	expenses and to accomplish the purposes of this act.
308	308	C. The Director and the authorized representat ive of a
309	309	responsible state agency may j ointly take action and execute any
310	310	contract for the provision of a public se rvice or facility in order
311	311	to more efficiently and effectively provide public services
312	312	including by generating add itional resources in suppo rt of those
313	313	public services and related projects.
314	314	D. The Director shall provide to the Legislature and post
315	315	online an annual report within six (6) weeks following th e end of
316	316	each fiscal year that:
317	317	1. Lists those public-private partnerships that:
318	318	a. are expected to be soliciting bids within the next
319	319	fiscal year,
320	320	b. are in progress,
321	321	c. were completed during the pr evious fiscal year, or
322	322
323	323
324	324	Req. No. 3355 Page 5 1
325	325	2
326	326	3
327	327	4
328	328	5
329	329	6
330	330	7
331	331	8
332	332	9
333	333	10
334	334	11
335	335	12
336	336	13
337	337	14
338	338	15
339	339	16
340	340	17
341	341	18
342	342	19
343	343	20
344	344	21
345	345	22
346	346	23
347	347	24
348	348	1
349	349	2
350	350	3
351	351	4
352	352	5
353	353	6
354	354	7
355	355	8
356	356	9
357	357	10
358	358	11
359	359	12
360	360	13
361	361	14
362	362	15
363	363	16
364	364	17
365	365	18
366	366	19
367	367	20
368	368	21
369	369	22
370	370	23
371	371	24
372	372
373	373	d. were removed from consideration during the previous
374	374	fiscal year; and
375	375	2. Summarizes actions taken by the Office to fulfi ll its duties
376	376	pursuant to this section.
377	377	SECTION 4. NEW LAW A ne w section of law to be codified
378	378	in the Oklahoma Statutes as Section 131.4 of Title 74, unless there
379	379	is created a duplication in numbering, reads as follows:
380	380	A. Any proposer or responsible state agency may submit to the
381	381	Office of Public-Private Partnerships one or more proposals for
382	382	partnership projects in connection with any public service. The
383	383	Office shall identify potential projects and public services for
384	384	which a public-private partnership may be appropriate from those
385	385	received from a proposer, a responsible state agency, or those
386	386	identified by the Office itself. The Office shal l select such
387	387	projects based on the partne rship’s potential to improve public
388	388	operational efficiencies, improve environmental performance, promote
389	389	public safety, attract private investment in this state and
390	390	efficiently allocate risk.
391	391	B. After the Office i dentifies a potential partnership for a
392	392	public project or public ser vice, the Office shall cond uct a public-
393	393	sector comparator stud y of the potential partnership. The Office
394	394	shall determine the scope of ea ch public-sector comparator, which
395	395	scope shall depend on the type of prop osed partnership and the
396	396	nature of the public service under consid eration for the
397	397
398	398
399	399	Req. No. 3355 Page 6 1
400	400	2
401	401	3
402	402	4
403	403	5
404	404	6
405	405	7
406	406	8
407	407	9
408	408	10
409	409	11
410	410	12
411	411	13
412	412	14
413	413	15
414	414	16
415	415	17
416	416	18
417	417	19
418	418	20
419	419	21
420	420	22
421	421	23
422	422	24
423	423	1
424	424	2
425	425	3
426	426	4
427	427	5
428	428	6
429	429	7
430	430	8
431	431	9
432	432	10
433	433	11
434	434	12
435	435	13
436	436	14
437	437	15
438	438	16
439	439	17
440	440	18
441	441	19
442	442	20
443	443	21
444	444	22
445	445	23
446	446	24
447	447
448	448	partnership. The following issues shall be considered as components
449	449	of a public-sector comparator:
450	450	1. The definition of the need served by the propose d
451	451	partnership;
452	452	2. The cost required to meet the public need served by the
453	453	public service under traditional procurements or traditional state
454	454	agency operations;
455	455	3. A comparative analysis of rendering the public service by
456	456	allowing the responsible state ag ency to utilize traditional
457	457	methods;
458	458	4. The financial impact the partnership will have on the
459	459	responsible state agency;
460	460	5. The impact a partnership would have on job formation,
461	461	economic growth, and the co mmunity in which the public service is to
462	462	be rendered; and
463	463	6. A competitive neutrality adjustment.
464	464	C. The Office shall use the results of the publi c sector
465	465	comparator analysis to determine which public services and projects
466	466	are appropriate for partner ship. The Office shall publish on its
467	467	website the analysis for each project to provide a public service
468	468	for which a request for qualifications is init iated.
469	469	D. The Office shall publi sh notice of the intent to enter into
470	470	a contract for a partnership for public service or related project
471	471	and shall prepare a request for qualifications for private sector
472	472
473	473
474	474	Req. No. 3355 Page 7 1
475	475	2
476	476	3
477	477	4
478	478	5
479	479	6
480	480	7
481	481	8
482	482	9
483	483	10
484	484	11
485	485	12
486	486	13
487	487	14
488	488	15
489	489	16
490	490	17
491	491	18
492	492	19
493	493	20
494	494	21
495	495	22
496	496	23
497	497	24
498	498	1
499	499	2
500	500	3
501	501	4
502	502	5
503	503	6
504	504	7
505	505	8
506	506	9
507	507	10
508	508	11
509	509	12
510	510	13
511	511	14
512	512	15
513	513	16
514	514	17
515	515	18
516	516	19
517	517	20
518	518	21
519	519	22
520	520	23
521	521	24
522	522
523	523	entities interested in serving as proposers for the p artnership.
524	524	The notice shall notify interested parties of the opportunity to
525	525	submit their qualifications for consideration and shall be published
526	526	at least thirty (30) days prior to the deadl ine for submitting those
527	527	qualifications. The Office also may advertise the information
528	528	contained in the notice in appropriate trade journals and otherwise
529	529	notify parties believed to be interested in providing the public
530	530	service and in any related project.
531	531	E. After inviting qualifications, the Office shall evaluate the
532	532	qualifications submitted and may hold discussions with proposers to
533	533	further explore their qualifications. Following this evaluation,
534	534	the Office may determine a list of qualified proposers based on
535	535	criteria in the invitation, select and rank no more than four
536	536	proposers, and invite only those proposers to submit a proposal.
537	537	F. The Office shall prepare a reques t for proposals and an
538	538	outline of the proposed par tnership contract. Partnership contracts
539	539	may contain the terms and conditions to carry out and eff ect the
540	540	purposes of this act including the duration of the contract, rates,
541	541	or fees for the public services to be provided or methods or
542	542	procedures for the determination of such rates or fees, standards
543	543	for the public services to be pr ovided, responsibilities and
544	544	standards for operation and maintenance of any related project,
545	545	required financial assurances, financial and other data reporting
546	546	requirements, bases and procedures for termination of the contract
547	547
548	548
549	549	Req. No. 3355 Page 8 1
550	550	2
551	551	3
552	552	4
553	553	5
554	554	6
555	555	7
556	556	8
557	557	9
558	558	10
559	559	11
560	560	12
561	561	13
562	562	14
563	563	15
564	564	16
565	565	17
566	566	18
567	567	19
568	568	20
569	569	21
570	570	22
571	571	23
572	572	24
573	573	1
574	574	2
575	575	3
576	576	4
577	577	5
578	578	6
579	579	7
580	580	8
581	581	9
582	582	10
583	583	11
584	584	12
585	585	13
586	586	14
587	587	15
588	588	16
589	589	17
590	590	18
591	591	19
592	592	20
593	593	21
594	594	22
595	595	23
596	596	24
597	597
598	598	and retaking of possession or title to the project, and events of
599	599	default and remedies upon default including mandamus, a suit in
600	600	equity, an action at law, or any combination of those remedial
601	601	actions.
602	602	G. After proposals are received, the Office, using the criteria
603	603	established in the request for proposals, shall evaluate the
604	604	proposals submitted and may hold discussions with prop osers to
605	605	further explore their p roposals, the scope and nature of the public
606	606	service or services they would provide, the various technical
607	607	approaches they may take regarding the p ublic service, and any
608	608	related project, price, and other factors that determined best
609	609	value.
610	610	H. The Director and the authorized representative of the
611	611	responsible state agency shall negotiate the contract with the best
612	612	value proposer ranked most qualified to provide the public service
613	613	at a compensation determined in writing to be fair and reasonable ,
614	614	and to purchase, lease, or otherwise take a legal interest in the
615	615	project.
616	616	1. Upon failure to negotiate a contract with the proposer
617	617	ranked most qualified, th e Director shall inform the proposer in
618	618	writing of the termination of negotiations and may enter, with the
619	619	responsible state agency, into negotiations with the proposer ranked
620	620	next most qualified. If negotiations again fail, the same procedure
621	621	may be followed with each next most qualified proposer selected and
622	622
623	623
624	624	Req. No. 3355 Page 9 1
625	625	2
626	626	3
627	627	4
628	628	5
629	629	6
630	630	7
631	631	8
632	632	9
633	633	10
634	634	11
635	635	12
636	636	13
637	637	14
638	638	15
639	639	16
640	640	17
641	641	18
642	642	19
643	643	20
644	644	21
645	645	22
646	646	23
647	647	24
648	648	1
649	649	2
650	650	3
651	651	4
652	652	5
653	653	6
654	654	7
655	655	8
656	656	9
657	657	10
658	658	11
659	659	12
660	660	13
661	661	14
662	662	15
663	663	16
664	664	17
665	665	18
666	666	19
667	667	20
668	668	21
669	669	22
670	670	23
671	671	24
672	672
673	673	ranked, in order of ranking, unt il a contract is neg otiated and
674	674	executed.
675	675	2. If the Director and the authorized representative of the
676	676	responsible state agency fail to negotiate a contract with any o f
677	677	the ranked proposers, the Director, in consultation with the
678	678	responsible state agency, may terminate the process or select and
679	679	rank additional proposers, bas ed on their qualifications or
680	680	proposals, and negotiations shall continue as with the proposers
681	681	selected and ranked initially unti l a contract is negotiated.
682	682	3. The Director and the authorized representative of the
683	683	responsible state agency may jointly reject any and all submissions
684	684	of qualifications or proposals and may jointly terminate the
685	685	procurement process at any point.
686	686	SECTION 5. NEW LAW A new section of law to be codified
687	687	in the Oklahoma Statutes as Section 131.5 of Title 74, unless there
688	688	is created a duplication in numbering, reads as follows:
689	689	The exercise of the powers granted by this act shall be for the
690	690	benefit of the people in this state and shall b e liberally construed
691	691	to effect the purposes thereof. As the performance of public
692	692	services shall constitute the performance of essential government
693	693	functions, any project or part thereof owned by the s tate and used
694	694	for performing any public service pursuant to a contract entered
695	695	into in this act that would be exempt from taxati on or assessments
696	696	in the absence of such contract shall remain exempt from taxation
697	697
698	698
699	699	Req. No. 3355 Page 10 1
700	700	2
701	701	3
702	702	4
703	703	5
704	704	6
705	705	7
706	706	8
707	707	9
708	708	10
709	709	11
710	710	12
711	711	13
712	712	14
713	713	15
714	714	16
715	715	17
716	716	18
717	717	19
718	718	20
719	719	21
720	720	22
721	721	23
722	722	24
723	723	1
724	724	2
725	725	3
726	726	4
727	727	5
728	728	6
729	729	7
730	730	8
731	731	9
732	732	10
733	733	11
734	734	12
735	735	13
736	736	14
737	737	15
738	738	16
739	739	17
740	740	18
741	741	19
742	742	20
743	743	21
744	744	22
745	745	23
746	746	24
747	747
748	748	and assessments levied by the state and i ts subdivisions to the same
749	749	extent as if not subject to t hat contract. Any transfer or lease
750	750	between a proposer and the state of a project or part thereof, or
751	751	item included or to be included in the project, shall be ex empt from
752	752	the taxes levied if the state is retainin g ownership of the project
753	753	or part thereof that is being transferre d or leased.
754	754	SECTION 6. NEW LAW A new section of law to be codified
755	755	in the Oklahoma Statutes as Section 131.6 of Title 74, unless there
756	756	is created a duplication in numbering, reads as follows:
757	757	The Director of the Office of Public-Private Partnerships, in
758	758	consultation with the responsible state agency, may retain or
759	759	contract for the services of commercial appraisers, engineers,
760	760	investment bankers, financial advisors, accounting experts, and
761	761	other consultants, inde pendent contractors o r providers of
762	762	professional services as are nec essary in the judgement of the
763	763	Director to carry out the powers and duties described in Section 2
764	764	of this act including identification of public services and any
765	765	related projects to be su bject to invitations f or qualifications or
766	766	proposals under this act, the development of those invitations and
767	767	related evaluation of those invitations, and nego tiation of any
768	768	contract under this act.
769	769	SECTION 7. NEW LAW A new section of law to be codified
770	770	in the Oklahoma Statutes as Section 131.7 of Title 74, unless there
771	771	is created a duplication in numbering, reads as follows:
772	772
773	773
774	774	Req. No. 3355 Page 11 1
775	775	2
776	776	3
777	777	4
778	778	5
779	779	6
780	780	7
781	781	8
782	782	9
783	783	10
784	784	11
785	785	12
786	786	13
787	787	14
788	788	15
789	789	16
790	790	17
791	791	18
792	792	19
793	793	20
794	794	21
795	795	22
796	796	23
797	797	24
798	798	1
799	799	2
800	800	3
801	801	4
802	802	5
803	803	6
804	804	7
805	805	8
806	806	9
807	807	10
808	808	11
809	809	12
810	810	13
811	811	14
812	812	15
813	813	16
814	814	17
815	815	18
816	816	19
817	817	20
818	818	21
819	819	22
820	820	23
821	821	24
822	822
823	823	Any contracts the Office of Public-Private Partnerships enters
824	824	into with proposers shall not be subject to the Oklahoma Central
825	825	Purchasing Act.
826	826	SECTION 8. This act shall become effective November 1, 2022.
827	827
828	828	58-2-3355 MR 1/20/2022 5:44:01 PM

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB1692 Compare Versions