Oklahoma 2023 Regular Session

Oklahoma House Bill HB1774 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	An Act
2		-	ENROLLED HOUSE
3		-	BILL NO. 1774 By: Williams and Wolfley of the
4		-	House
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	28	+	ENGROSSED SENATE AMENDMENT
	29	+	TO
	30	+	ENGROSSED HOUSE
	31	+	BILL NO. 1774 By: Williams of the House
5	32
6	33		and
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8	35		Bullard of the Senate
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13		-	An Act relating to the Oklahoma Central Purchasing
	40	+	An Act relating to state government; amending 74 O.S.
	41	+	2021, Section 85.3A, as amended by Section 53,
	42	+	Chapter 228, O.S.L. 2022 (74 O.S . Supp. 2022, Section
	43	+	85.3A), which relates to the Oklahoma Central
	44	+	Purchasing Act; adding exemption; amending 74 O.S.
	45	+	2021, Sections 2213, 2221, 2239 and 2244 which relate
	46	+	to the Oklahoma Tourism, Parks a nd Recreation
	47	+	Enhancement Act; modifying exemptions from the
	48	+	Oklahoma Central Purchasing Act; and providing an
	49	+	effective date.
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	54	+	AUTHOR: Add the following House Coauthor: Wolfley
	55	+
	56	+	AMENDMENT NO. 1. Page 1, strike the title, enacting clause and
	57	+	entire bill and insert
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	60	+	“An Act relating to the Oklahoma Central Purchasing
14	61		Act; amending 74 O.S. 2021, Section 85. 7, as amended
15	62		by Section 1, Chapter 188, O.S.L. 2022 (74 O.S. Supp.
16	63		2022, Section 85.7), which relates to acquisition
17	64		initiation; adding exemption for certain contracts
18	65		from competitive bidding requirements; amending 74
19	66		O.S. 2021, Section 85.12 , which relates to excluded
20	67		acquisitions of the Oklahoma Central P urchasing Act;
21	68		prohibiting certain actions; allowing for certain
22	69		purchases to be exempted; authorizing audit by the
23	70		State Purchasing Director for c ertain purchases;
24	71		updating statutory references; updating statutory
25	72		language; repealing 74 O.S. 2021, Section s 2213,
26	73		2221, 2239, and 2244, which relate to the Oklahoma
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27	100		Tourism, Parks and Recreation Enhancement Act; and
28	101		providing an effective date.
29	102
30	103
31		-	~~SUBJECT: Oklahoma Central Purchasing Act~~
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32	105
33	106		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
34		-
35	107		SECTION 1. AMENDATORY 74 O.S . 2021, Section 85.7, as
36	108		amended by Section 1, Chapter 188, O.S.L. 2022 (74 O. S. Supp. 2022,
37	109		Section 85.7), is amended to read as follows:
38		-
39	110		Section 85.7. A. 1. Except as otherwise provided by the
40	111		Oklahoma Central Purchasing Act, or associated rules:
41		-
42	112		a. every state agency shall initiate all acquisitions by
43	113		the submission of a requi sition to the Purchasing
44	114		Division, and
45		-	ENR. H. B. NO. 1774 Page 2
46	115		b. no state agency shall make an acquisition for an
47	116		amount exceeding Fifty Thousand Dollars ($50,000.00)
48	117		or the limit determined by the Sta te Purchasing
49	118		Director pursuant to rules authorized by Section 85.5
50	119		of this title, not to exceed Two Hundred Fifty
51	120		Thousand Dollars ($250,000.00), without submission of
52	121		a requisition to the Purchasing Division for issuance
53	122		of a solicitation for the acquisi tion on behalf of the
54	123		agency. Any exemption from competitive bid
55	124		requirements of the Oklahoma Central Purchasing Act
56	125		further exempts the acquisition from requisition
57	126		requirements of the act.
58	127
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59	153		2. The State Purchasing Director may request additional
60	154		information necessary to adequately review a requisition to ensure
61	155		compliance with this act the Oklahoma Central Purchasing Act and
62	156		associated rules. If the State Purchasing Director determines that
63	157		an acquisition is not necessary, excessive or not justified, the
64	158		State Purchasing Director shall deny the requisition.
65		-
66	159		3. The provisions of this act the Oklahoma Central Purchasing
67	160		Act shall not preclude a state ag ency from:
68		-
69	161		a. accepting gifts or donations in any manner authorized
70	162		by law, or
71		-
72	163		b. making an acquisition for itself without submitting a
73	164		requisition under this section when authoriz ed in
74	165		writing by the State Pu rchasing Director.
75		-
76	166		4. Any acquisition a state agency makes shall be made pursuant
77	167		to this act the Oklahoma Central Purchasi ng Act and associated
78	168		rules. No agency shall use split purchasing for the purpose of
79	169		evading the requirement of competitive bidding or oth er requirement
80	170		of this act the Oklahoma Central Purchasing Act or associated rules.
81	171		Violation of this provision shal l be cause for discipline of a state
82	172		employee up to and including termination.
83		-
84	173		5. The State Purchasing Director may waive or increase the
85	174		limit authorized for a state agency acquisition made pursuant to its
86	175		own competitive proc edures. To perfect an other wise valid
87	176		acquisition inadvertently exceeding the limit due to administrative
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88	203		error by a state agency or unforeseeable circumstances, the st ate
89	204		agency shall request a limited waiver or increase upon the discovery
90		-	of the error or circumstance to the State Purchasing Director. The ~~ENR. H. B. NO. 1774 Page 3~~
	205	+	of the error or circumstance to the State Purchasing Director. The
91	206		State Purchasing Director shall report requests for waivers o r
92	207		increases, stating the amount and whether the reques t was granted or
93	208		denied, upon request by the Governor, Presiden t Pro Tempore of the
94	209		Senate or Speaker of the House of Representatives.
95		-
96	210		6. Competitive bidding requirements of this section shall not
97	211		be required for the following:
98		-
99	212		a. contracts for master cus todian banks or trust
100	213		companies, investment managers, investmen t
101	214		consultants, and actua ries for the state retiremen t
102	215		systems, and Oklahoma Employees Insurance and Benefits
103	216		Board, pension fund management consultants of the
104	217		Oklahoma State Pension Commission and the
105	218		Commissioners of the Land Office, examiners, experts,
106	219		or consultants for the Insurance Department whose job
107	220		duties are tied to Market Conduct Exams, Financial
108	221		Exams, and Insurance Business Transfers, financial
109	222		institutions to act as depositories an d managers of
110	223		the Oklahoma College Savings Plan accounts and other
111	224		professional service s as defined in Section 803 of
112	225		Title 18 of the Oklahoma Statutes. When requested by
113	226		the Oklahoma Employees Insuran ce and Benefits Board or
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114	253		the governing board of a stat e retirement system
115	254		authorized to hire investment managers, the Purchasing
116	255		Division shall assist in the process of selecting
117	256		investment managers,
118		-
119	257		b. a state agency making such an acquisition shall notif y
120	258		the State Purchasing Director within fifteen (15) da ys
121	259		following completion of the acquisition. A list of
122	260		the exempt contracts shall be pr ovided, upon request,
123	261		to a member of the Appropriations and Budget Committee
124	262		of the House of Representatives or App ropriations
125	263		Committee of the Senate,
126		-
127	264		c. purchases of postage by state agencies made pursuant
128	265		to Sections 90.1 through 90.4 of this title,
129		-
130	266		d. a sole source acquisition ma de in compliance with
131	267		Section 85.44D.1 of this title,
132		-
133	268		e. an acquisition for des ign, development, communication
134	269		or implementation of the state employees flexible
135		-	benefits plan; provided, procedures used for the ~~ENR. H. B. NO. 1774 Page 4~~
	270	+	benefits plan; provided, procedures used for the
136	271		acquisition are consistent with competitive bi d
137	272		requirements of this act the Oklahoma Central
138	273		Purchasing Act and associated rules,
139		-
140	274		f. any acquisition of a service which the Office of
141	275		Management and Enterprise Services has a pproved as
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142	302		qualifying for a fixe d and uniform rate, subject to
143	303		the following:
144		-
145	304		(1) the Purchasing Division shall establish criteria
146	305		and guidelines for those services which may
147	306		qualify for a fixed and uniform rate,
148		-
149	307		(2) fixed and uniform rate contracts author ized by
150	308		this subsection shall be limited to contracts for
151	309		those services furnis hed to persons directly
152	310		benefiting from such services and shall not be
153	311		used by a state agency to employ c onsultants or
154	312		to make other acquisitions,
155		-
156	313		(3) any state agency desiring to have a service
157	314		qualified for a fixed and uniform rate shall make
158	315		a request for service qualification to the State
159	316		Purchasing Director and submit documentation to
160	317		support the request. The State Purchasing
161	318		Director shall approve or deny the request. If
162	319		approved, the state agency shall establish a
163	320		fixed and uniform rate for the ser vice. No
164	321		contracts shall be entered into by the state
165	322		agency until the rate has been approved by the
166	323		state agency in a public hearing. The proposed
167	324		rate shall be clearly and s eparately identified
168	325		in the agenda of the state agency for the hearing
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169	352		and shall be openly and separately discussed
170	353		during such hearing. The state agency shall
171	354		notify the State Purcha sing Director of its
172	355		pending consideration of the proposed rate at
173	356		least thirty (30) days before the sta te agency is
174	357		to meet on the proposed rate and d eliver a copy
175	358		of the agenda items concerning the proposed rate
176	359		with supporting documentation. The State
177	360		Purchasing Director shall communicate any
178	361		observation, reservation, crit icism or
179	362		recommendation to the a gency, either in person at
180		-	the time of the hear ing or in writing delivered ~~ENR. H. B. NO. 1774 Page 5~~
	363	+	the time of the hear ing or in writing delivered
181	364		to the state agency before or at the time of the
182	365		hearing. The State Purchasi ng Director shall
183	366		specifically note in the written communications
184	367		whether the Director has determined th e rate to
185	368		be excessive. Any written communicat ion
186	369		presented in the absenc e of the State Purchasing
187	370		Director shall be presented orally during the
188	371		public hearing. Whether made in person or in
189	372		writing, any comment made by the State Purchasing
190	373		Director shall be made a part of the minutes of
191	374		the hearing in full,
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192	400
193	401		(4) within two (2) weeks after the convening of the
194	402		Legislature, the administrative officer of th e
195	403		state agency shall furnish to the Speaker of the
196	404		House of Representati ves, the President Pro
197	405		Tempore of the Senate and to any member of the
198	406		House or Senate, if requested by the member, a
199	407		complete list of all of the types of services
200	408		paid for by uniform f ixed rates, the amount of
201	409		the rate last approved by the agency for the
202	410		service and the number of contrac ts then in
203	411		existence for each type of service. Any rate
204	412		which has been determined to be excessive by the
205	413		State Purchasing Director shall be specificall y
206	414		identified in the list by the state agency, and
207		-
208	415		(5) at any time, the State Purchasing Director may
209	416		review, suspend or terminate a contract entered
210	417		into pursuant to the provisio ns of this paragraph
211	418		if the Director determines the contract is not
212	419		necessary, is excessive or is not justified,
213		-
214	420		g. an acquisition for a client of the State Department of
215	421		Rehabilitation Services; provided, the agency develops
216	422		and maintains standards for su ch an acquisition. The
217	423		agency may elect to utilize the Purchasing Division
218	424		for an acquisition. The standards shall foster
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219	451		economy, provide a short r esponse time, include
220	452		appropriate safeguards, require written records,
221	453		ensure appropriate competition for economical and
222	454		efficient purchasing and shall be approved by the
223	455		State Purchasing Director,
224		-	ENR. H. B. NO. 1774 Page 6
225	456		h. structured settlement agreements entered into by the
226	457		Attorney General’s office in order to settle any
227	458		lawsuit involving the state, the Legislature, any
228	459		state agency or any employee or official of the state
229	460		if:
230		-
231	461		(1) prior to entering into an y contract for the
232	462		services of an entity to administer a structured
233	463		settlement agreement, the Attorney G eneral
234	464		receives proposals from at least three e ntities
235	465		engaged in providing such services, and
236		-
237	466		(2) the selection of a particular entity is made on
238	467		the basis of the response to the request which is
239	468		the most economical and pro vides the most
240	469		competent service which furthers the best
241	470		interests of the state ,
242		-
243	471		i. an acquisition by a st ate agency pursuant to a
244	472		contract the State Purchasing Director enters into on
245	473		behalf of a state agency or awards and designates for
246	474		use by state agencies,
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247	500
248	501		j. an acquisition by the C ommittee for Sustaining
249	502		Oklahoma’s Energy Resources pursuant to a contract
250	503		with a local supplier for the purpose of holding a
251	504		special event or an exhibi tion throughout the state,
252	505		and
253		-
254	506		k. contracts for the study, analysis, and planning, as
255	507		reasonably necessary, to aid in determining the
256	508		feasibility of leasing, selling, or pri vately managing
257	509		or developing the property or facilities under control
258	510		of the Oklahoma Tourism and Recreation Commission.
259	511		The Commission shall be exempt from the competitive
260	512		bidding requirements of the Oklahoma Central
261	513		Purchasing Act for the purpose of solicit ing,
262	514		negotiating, and effectuating such a contract or
263	515		contracts; provided, that the State Purchasing
264	516		Director shall review and audit all uses of the
265	517		exemptions provided in this subparagraph biannually.
266		-
267	518		7. Notwithstanding any other provisio n of law, an acquisition
268	519		may be exempted from requirements of this section by the State
269		-	Purchasing Director when in the State Purchasing Director’s ~~ENR. H. B. NO. 1774 Page 7~~
	520	+	Purchasing Director when in the State Purchasing Director’s
270	521		discretion unusual, time-sensitive or unique circumst ances exist
271	522		which make such exemption in the best and i mmediate interest of the
272	523		state. As used in this subsection, “State Purchasing Director ”
273	524		shall not mean a designee. Any such acquisitions shall be described
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274	551		in detail and publicly posted as a data fee d. The description shall
275	552		include the name of the suppl ier, cost of the acquisition, reason
276	553		for exemption and, as applicable, detailed comparison of the
277	554		acquisition with comparable items, any identified cost savings
278	555		resulting from the acquisition and a des cription of benefits to the
279	556		state. The State Purchasin g Director shall take no action under the
280	557		provisions of this subsection prior to such public p osting.
281		-
282	558		B. Competitively bid ac quisitions shall be awarded to the
283	559		lowest and best, or best value, bidder o r bidders.
284		-
285	560		C. Bids for an amount requiring submission of requisitions to
286	561		the Purchasing Division shall be evaluated by the Purchasing
287	562		Division and the state agency receiving the ac quisition. At a
288	563		minimum, cost and technical expertise shall be considered in
289	564		determining the lowest and best, or best value, bid. Further, the
290	565		state agency shall present its evaluation and recommendation to the
291	566		State Purchasing Director. A documented ev aluation report
292	567		containing the evaluations of the Purchasing Division or th e state
293	568		agency shall be completed prior to the contract award and such
294	569		report shall be a matter of public record.
295		-
296	570		D. Except as otherwise specificall y provided by law, the
297	571		acquisition of food items or food products by a state agency from a
298	572		public trust created pursuant to Sections 176 through 180.56 of
299	573		Title 60 of the Oklahoma Statutes shall comply with competitive
300	574		bidding requirements of this section.
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302	601		E. Cooperative contracts shall not be utilized unless the
303	602		purchasing cooperative and its affiliated suppl iers have complied
304	603		with competitive bid requirements of this act the Oklahoma Central
305	604		Purchasing Act and associated rules.
306		-
307	605		F. Notwithstanding any provision of this act the Oklahoma
308	606		Central Purchasing Act, in all cases where federal granted funds are
309	607		involved, the federal laws, rules and regulations thereto shall
310	608		govern to the extent necessary to inure to the benefit of such funds
311	609		to this state.
312		-
313	610		G. A court order requiring an acquisition by a state agency,
314		-	whether or not such state agency is subject to this act the Oklahoma ~~ENR. H. B. NO. 1774 Page 8~~
	611	+	whether or not such state agency is subject to this act the Oklahoma
315	612		Central Purchasing Act, shall not invalidate competitive bidding
316	613		procedures required by this section if such court order does not
317	614		specify a specific supplier. Any such acquisition sha ll comply with
318	615		competitive bid procedures.
319		-
320	616		SECTION 2. AMENDATORY 74 O.S. 2021, Section 85.12, is
321	617		amended to read as follows:
322		-
323	618		Section 85.12. A. The provisions of this section s hall not be
324	619		construed to affect any law relating to fiscal or ac counting
325	620		procedure except as they may be directly in conflict herewith ; and
326	621		all claims, warrants, and bonds shall be examined, inspected, and
327	622		approved as now provided by law.
328		-
329	623		B. Except as otherwise provided by this section, the
330	624		acquisitions specified in t his subsection shall be made in
	625	+
	626	+	ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 13 1
	627	+	2
	628	+	3
	629	+	4
	630	+	5
	631	+	6
	632	+	7
	633	+	8
	634	+	9
	635	+	10
	636	+	11
	637	+	12
	638	+	13
	639	+	14
	640	+	15
	641	+	16
	642	+	17
	643	+	18
	644	+	19
	645	+	20
	646	+	21
	647	+	22
	648	+	23
	649	+	24
	650	+
331	651		compliance with Section 85.39 of this title and purchasing card
332	652		program requirements but are not subject to other provisions of t he
333	653		Oklahoma Central Purchasing Act:
334		-
335	654		1. Food and other products produce d by state institutions and
336	655		agencies;
337		-
338	656		2. The printing or duplication of publications or forms of
339	657		whatsoever kind or chara cter by state agencies if the work is
340	658		performed upon their own equipment by their own employee s. Pursuant
341	659		to this paragraph, the stat e agency may only use eq uipment owned or
342	660		leased by the agency and may only utilize that equipm ent for
343	661		printing services re quired by the agency in performing duties
344	662		imposed upon the agen cy or functions authorized to b e performed by
345	663		the agency. Any use of t he equipment by the agen cy pursuant to an
346	664		agreement or contract with any other entity resultin g in delivery of
347	665		intermediate or finished products to the entity purchasing or using
348	666		the products shall be subject to the provisions of this act the
349	667		Oklahoma Central Purchasing Act and associated rules;
350		-
351	668		3. Department of Transportation and Transportation C ommission
352	669		contractual services or right-of-way acquisitions, contracts awarded
353	670		pursuant to bids let by the Transportation Commission for the
354	671		maintenance or construction of streets, roads, highways , bridges,
355	672		underpasses or any other transportation facilitie s under the control
356	673		of the Department of Transportation, equipment or material
357	674		acquisitions accruing to the Department of Transportation required
	675	+
	676	+	ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 14 1
	677	+	2
	678	+	3
	679	+	4
	680	+	5
	681	+	6
	682	+	7
	683	+	8
	684	+	9
	685	+	10
	686	+	11
	687	+	12
	688	+	13
	689	+	14
	690	+	15
	691	+	16
	692	+	17
	693	+	18
	694	+	19
	695	+	20
	696	+	21
	697	+	22
	698	+	23
	699	+	24
	700	+
358	701		in Federal-Aid federal aid contracts and acquisiti ons for public-
359		-	service-type announcements initiated by the Department of ~~ENR. H. B. NO. 1774 Page 9~~
	702	+	service-type announcements initiated by the Department of
360	703		Transportation, but not acq uisitions for advertising, public
361	704		relations or employment services;
362		-
363	705		4. Utility services regul ated by a state or federal regulatory
364	706		commission, municipal or dinance or an Indian Tribal Council;
365		-
366	707		5. Acquisitions by the University Hospitals Authority. The
367	708		Authority shall develop standards for the acquisition of products
368	709		and services and may elect to utilize the Purchasing Division. The
369	710		standards shall foster e conomy and short response time and sha ll
370	711		include appropriate safeguards and record-keeping requirements to
371	712		ensure appropriate competition and economical and efficient
372	713		purchasing;
373		-
374	714		6. Custom harvesting by the Department of Corrections for the
375	715		Department or its institutions;
376		-
377	716		7. Subject to prior approval of the State Purchasing Director,
378	717		acquisitions from private prison suppliers which are subject to the
379	718		contracting procedures of Section 561 of Tit le 57 of the Oklahoma
380	719		Statutes;
381		-
382	720		8. Acquisitions by the Oklaho ma Municipal Power Authority;
383		-
384	721		9. Acquisitions by the Grand River Dam Au thority;
385		-
386	722		10. Acquisitions by rural water, sewer, gas or solid waste
387	723		management districts created pursuant to the Rural Wa ter, Sewer, Gas
388	724		and Solid Waste Management Districts Act;
389	725
	726	+	ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 15 1
	727	+	2
	728	+	3
	729	+	4
	730	+	5
	731	+	6
	732	+	7
	733	+	8
	734	+	9
	735	+	10
	736	+	11
	737	+	12
	738	+	13
	739	+	14
	740	+	15
	741	+	16
	742	+	17
	743	+	18
	744	+	19
	745	+	20
	746	+	21
	747	+	22
	748	+	23
	749	+	24
	750	+
390	751		11. Acquisitions by the Oklahoma Ordnance Works Authority, the
391	752		Northeast Oklahoma Public Facilities Aut hority or the Midwestern
392	753		Oklahoma Development Authority;
393		-
394	754		12. Expenditure of monies appropriat ed to the State Board of
395	755		Education for Local and State Support ed Financial Support local and
396	756		state-supported financial support of Public Schools public schools,
397	757		except monies allocated therefrom for the Administrative and Support
398	758		Functions of the State Dep artment of Education;
399		-
400	759		13. Expenditure of monies appropriated to the State Department
401	760		of Rehabilitation Services for educational progr ams or educational
402	761		materials for the Oklahoma School for the Blind and the Oklahoma
403	762		School for the Deaf;
404		-	ENR. H. B. NO. 1774 Page 10
405	763		14. Contracts entered into by the Oklahoma Department of Career
406	764		and Technology Education for the development, revision or updating
407	765		of vocational curriculum materials, and cont racts entered into by
408	766		the Oklahoma Department of Career and Technology Edu cation for
409	767		training and supportive services that address the needs of new or
410	768		expanding industries;
411		-
412	769		15. Contracts entered into by the Oklahoma Center for the
413	770		Advancement of Science a nd Technology for professional services;
414		-
415	771		16. Contracts entered into by th e Oklahoma Department o f
416	772		Commerce pursuant to the provisions of Section 5066.4 of thi s title;
417		-
418	773		17. Acquisitions made by the Oklahoma Historical Society from
419	774		monies used to administer the White Hair Memorial;
	775	+
	776	+	ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 16 1
	777	+	2
	778	+	3
	779	+	4
	780	+	5
	781	+	6
	782	+	7
	783	+	8
	784	+	9
	785	+	10
	786	+	11
	787	+	12
	788	+	13
	789	+	14
	790	+	15
	791	+	16
	792	+	17
	793	+	18
	794	+	19
	795	+	20
	796	+	21
	797	+	22
	798	+	23
	799	+	24
420	800
421	801		18. Purchases of pharmaceuticals available thro ugh a multistate
422	802		or multigovernmental contract if such pharmaceuticals are or have
423	803		been on state contract within the last fiscal year, and the terms of
424	804		such contract are more favorab le to the state or agency than the
425	805		terms of a state contract for the same products, as determined by
426	806		the State Purchasing Director. The state entity designate d by law,
427	807		as specified in Section 1010.3 of Title 56 of the Oklahoma Sta tutes,
428	808		shall participate in the purchase of pharmaceuticals available
429	809		through such contracts;
430		-
431	810		19. Contracts for managed h ealth care services entered into by
432	811		the state entity designate d by law or the Department of Human
433	812		Services, as specified in paragraph 1 of subsection A of Sect ion
434	813		1010.3 of Title 56 of the Oklahoma Statutes;
435		-
436	814		20. Acquisitions by a st ate agency through a Ge neral Services
437	815		Administration contract or other federal contra ct if the
438	816		acquisitions are not on current statewide contract or the term s of
439	817		the federal contract are more favorable to the agency than the terms
440	818		of a statewide contract f or the same products;
441		-
442	819		21. Acquisitions of clothing for clients of the Department of
443	820		Human Services and acquisitions of food for group homes operated by
444	821		the Department of Human Servi ces;
	822	+	22. Acquisitions by the Oklahoma Energy Resources Board;
445	823
446		-	22. Acquisitions by the Oklahoma Energy Resources Board;
447		-	ENR. H. B. NO. 1774 Page 11
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	825	+	2
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	839	+	16
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	843	+	20
	844	+	21
	845	+	22
	846	+	23
	847	+	24
	848	+
448	849		23. Acquisitions of clothing for juveniles in the custody of
449	850		the Office of Juvenile Affairs and acquisitions of food for group
450	851		homes operated by the Office of Juvenile Affairs;
451		-
452	852		24. State contracts for flexible benefits plans pursuant to the
453	853		Oklahoma State Employees Benefits Act, Section 1361 et seq. of this
454	854		title;
455		-
456	855		25. Acquisitions by the Oklahoma Department of Securities to
457	856		investigate, initiate, or pursue administrat ive, civil or criminal
458	857		proceedings involving potential violations of the acts under the
459	858		Department’s jurisdiction and acquisitions by the Oklahoma
460	859		Department of Securities for its inve stor education progr am;
461		-
462	860		26. Acquisitions for resale in and through cant eens operated
463	861		pursuant to Section 537 of Title 57 of the Oklahoma Statutes and
464	862		canteens established at an institution or facility operated by the
465	863		Office of Juvenile Affairs;
466		-
467	864		27. Acquisitions by the Oklah oma Boll Weevil Eradication
468	865		Organization for employm ent and personnel services, and for
469	866		acquiring sprayers, blowers, traps and attractants related to the
470	867		eradication of boll weevils in this state or as part of a national
471	868		or regional boll weevil eradication program;
472		-
473	869		28. Contracts entered into by the Oklahom a Indigent Defense
474	870		System for expert services pursuant to the provisions of subsection
475	871		D of Section 1355.4 of Title 2 2 of the Oklahoma Statutes;
	872	+
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	874	+	2
	875	+	3
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	879	+	7
	880	+	8
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	882	+	10
	883	+	11
	884	+	12
	885	+	13
	886	+	14
	887	+	15
	888	+	16
	889	+	17
	890	+	18
	891	+	19
	892	+	20
	893	+	21
	894	+	22
	895	+	23
	896	+	24
476	897
477	898		29. Acquisitions by the Oklahoma Corre ctional Industries a nd
478	899		the Agri-Services programs of the Department of C orrections of raw
479	900		materials, component parts and other products, any equipment
480	901		excluding vehicles, and any services e xcluding computer consultant
481	902		services used to produce goods or serv ices for resale and for the
482	903		production of agricultural products;
483		-
484	904		30. Contracts entered into by the Department of Human Services
485	905		for provision of supported living services to members of the
486	906		plaintiff class in Homeward Bound, Inc., et al. v. The Hissom
487	907		Memorial Center, et al., Case Number 85-C-437-E, United States
488	908		District Court for the Northern District of Oklahoma;
489		-
490	909		31. Contracts negotiated by the Office of Juvenile Affairs with
491	910		designated Youth Services Agencies and the Oklahoma Association of
492		-	Youth Services, or another ~~Oklahoma~~ nonprofit corporation whose ~~ENR. H. B. NO. 1774 Page 12~~
	911	+	Youth Services, or another Okla homa nonprofit corporation whose
493	912		membership consists solely of Youth Services Agencies and of whom at
494	913		least a majority of Youth Services Agencies are members, pursuant t o
495	914		the provisions of Section 2 -7-306 of Title 10A of the Oklahoma
496	915		Statutes and contracts entered into by the Department of Human
497	916		Services pursuant to Section 1-9-110 of Title 10A of the Oklahoma
498	917		Statutes with designated Youth Services Agencies;
499		-
500	918		32. Contracts for annuities for structured settlements provided
501	919		for in Section 158 of Title 51 of the Oklahoma Statutes;
502		-
503	920		33. Subject to subsection E of this section, purchases made
504	921		from funds received by local offices administered by the Department
	922	+
	923	+	ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 19 1
	924	+	2
	925	+	3
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	927	+	5
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	930	+	8
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	932	+	10
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	934	+	12
	935	+	13
	936	+	14
	937	+	15
	938	+	16
	939	+	17
	940	+	18
	941	+	19
	942	+	20
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	944	+	22
	945	+	23
	946	+	24
	947	+
505	948		of Human Services or administered by the Office of Juvenile Affairs
506	949		for fund-raising activities and donations for the benefit of clients
507	950		and potential clients at the local offices where such purchases may
508	951		not otherwise be paid for from appropriated funds;
509		-
510	952		34. Acquisitions by the Oklahoma Historical Society for
511	953		restoration of historical s ites and museums alt hough the agency may
512	954		elect to utilize the Purchasing Division for an acquisition with
513	955		supplier and bid selection being the prerogative of the agency,
514	956		based on the supplier’s documented qualifications and experience;
515	957		and
516		-
517	958		35. Acquisitions of clothing and fo od for patients in the care
518	959		of the J.D. McCarty Cent er for Children with Developmental
519	960		Disabilities.
520		-
521	961		C. Pursuant to the terms of a contract the State Purchasing
522	962		Director enters into or awards, a state agency, common school,
523	963		municipality, rural fire protection district, county offic er or any
524	964		program contract, purchase, acquisition or expenditure that is not
525	965		subject to the provisions of the Oklahoma Central Purchasing Act,
526	966		may, unless acting pursuant to a contract with the state that
527	967		specifies otherwise, make use of statewide contract s and the
528	968		services of the Purchasing Division and the State Purchasing
529	969		Director. Any political subdivision or rural fire protection
530	970		district may designate the State Purchasing Director as its agent
	971	+
	972	+	ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 20 1
	973	+	2
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	980	+	9
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	983	+	12
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	989	+	18
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	993	+	22
	994	+	23
	995	+	24
	996	+
531	997		for any acquisition from a statewide contract or otherwis e available
532	998		to the state.
533		-
534	999		D. The State Purchasing Director may make periodic audits of
535	1000		shall review and audit all the purchasing procedures of acq uisitions
536	1001		listed in subsection B of this section to ensure tha t the procedures
537		-	are being followed. Nothing in this section shall be construed t o ~~ENR. H. B. NO. 1774 Page 13~~
	1002	+	are being followed. Nothing in this section shall be construed t o
538	1003		authorize bid splitting as prohibited by the Oklahoma Central
539	1004		Purchasing Act.
540		-
541	1005		E. With respect to the Departme nt of Human Services or the
542	1006		Office of Juvenile Affairs, as app licable, monies received by
543	1007		fundraising activities or donations from the local office , vending
544	1008		operations administered by employees of the agency and all other
545	1009		nonrestricted cash and cash -equivalent items received by employees
546	1010		of the agency shall be deposi ted in the agency special account
547	1011		established for this purpose. The deposits shall b e made at local
548	1012		banking institutions approved by the State Treasurer.
549		-
550	1013		F. With respect to the Oklahoma Tourism and Recreation
551	1014		Department, no exemption provided in this sec tion shall be construed
552	1015		for the use of leasing or contracting for state -owned restaurants in
553	1016		Oklahoma state parks. The Department shall not be required to
554	1017		purchase furniture, fixtures, equipment, and soft goods associated
555	1018		with decor of the state parks, lodges, golf courses, and tourism
556	1019		information centers from Oklahoma prisons or reformatories .
557	1020
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	1022	+	2
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	1045	+
558	1046		Additionally, the Department shall not be required to make
559	1047		purchases pursuant to a statewide contract for m aterials, supplies,
560	1048		and services necessary for the effici ent and economical operation of
561	1049		revenue-generating, Department-operated facilities, including those
562	1050		made to maintain or improve guest perception of quality and service;
563	1051		provided, that the State Purchasing Director shall review and audit
564	1052		all uses of the exemptions provided in this subsection biannually.
565		-
566	1053		SECTION 3. REPEALER 74 O.S. 2021, Sections 2213, 2221,
567	1054		2239, and 2244, are hereby repealed.
	1055	+	SECTION 4. This act shall become effective January 1, 2024. ”
568	1056
569		-	SECTION 4. This act shall become effective January 1, 2024. ENR. H. B. NO. 1774 Page 14
570	1057
571		-	Passed the House of Representa tives the 23rd day of May, 2023.
	1058	+	Passed the Senate the 27th day of April, 2023.
	1059	+
	1060	+
	1061	+
	1062	+	Presiding Officer of the Senate
	1063	+
	1064	+
	1065	+	Passed the House of Representa tives the ____ day of __________,
	1066	+	2023.
	1067	+
	1068	+
	1069	+
	1070	+	Presiding Officer of the House
	1071	+	of Representatives
	1072	+
	1073	+	ENGR. H. B. NO. 1774 Page 1 1
	1074	+	2
	1075	+	3
	1076	+	4
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	1083	+	11
	1084	+	12
	1085	+	13
	1086	+	14
	1087	+	15
	1088	+	16
	1089	+	17
	1090	+	18
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	1095	+	23
	1096	+	24
	1097	+
	1098	+	ENGROSSED HOUSE
	1099	+	BILL NO. 1774 By: Williams of the House
	1100	+
	1101	+	and
	1102	+
	1103	+	Bullard of the Senate
	1104	+
	1105	+
	1106	+
	1107	+
	1108	+
	1109	+
	1110	+
	1111	+
	1112	+	An Act relating to state government; amending 74 O.S.
	1113	+	2021, Section 85.3A, as amended by Section 53,
	1114	+	Chapter 228, O.S.L. 2022 (74 O.S. Supp. 2022, Se ction
	1115	+	85.3A), which relates to the Oklahoma Central
	1116	+	Purchasing Act; adding exemption; amending 74 O.S.
	1117	+	2021, Sections 2213, 2221, 2239 and 2244 which relate
	1118	+	to the Oklahoma Tourism, Parks a nd Recreation
	1119	+	Enhancement Act; modifying exemptions from the
	1120	+	Oklahoma Central Purchasing Act; and providing an
	1121	+	effective date.
	1122	+
	1123	+
	1124	+
	1125	+
	1126	+
	1127	+
	1128	+	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
	1129	+	SECTION 5. AMENDATORY 74 O.S. 2021, Section 85.3A, as
	1130	+	amended by Section 53, Chapter 228, O.S.L. 2022 ( 74 O.S. Supp. 2022,
	1131	+	Section 85.3A), is amended to read as follows:
	1132	+	Section 85.3A A. Compliance with the provisions of the
	1133	+	Oklahoma Central Purchas ing Act shall not be required of:
	1134	+	1. County government;
	1135	+
	1136	+	ENGR. H. B. NO. 1774 Page 2 1
	1137	+	2
	1138	+	3
	1139	+	4
	1140	+	5
	1141	+	6
	1142	+	7
	1143	+	8
	1144	+	9
	1145	+	10
	1146	+	11
	1147	+	12
	1148	+	13
	1149	+	14
	1150	+	15
	1151	+	16
	1152	+	17
	1153	+	18
	1154	+	19
	1155	+	20
	1156	+	21
	1157	+	22
	1158	+	23
	1159	+	24
	1160	+
	1161	+	2. The Oklahoma State Regents for Higher Education , the
	1162	+	institutions, centers or other constituent agencies of The Oklahoma
	1163	+	State System of Higher Education;
	1164	+	3. The telecommunications network know n as OneNet;
	1165	+	4. The Department of Publ ic Safety gun range;
	1166	+	5. The State Treasurer for the following purcha ses:
	1167	+	a. services including, but not lim ited to, legal services
	1168	+	to assist in the administration of the Uniform
	1169	+	Unclaimed Property Act, as provided i n Section 668 of
	1170	+	Title 60 of the Oklahom a Statutes, and
	1171	+	b. software, hardware and associated services to ass ist
	1172	+	in the administration of funds and securities held by
	1173	+	the state, as provided in Section 71.2 of Title 62 of
	1174	+	the Oklahoma Statutes;
	1175	+	6. Statutorily allowed interagency agreements betwee n state
	1176	+	agencies;
	1177	+	7. The Oklahoma Department of Veterans Affairs, i n accordance
	1178	+	with Section 63.22 of Title 72 of the Oklahoma Statutes;
	1179	+	8. The Oklahoma Military Department for the purchases of
	1180	+	heraldry items including, but limited to, medals, badges and other
	1181	+	military accoutrements;
	1182	+	9. A transaction, wholly funded by monies other than state-
	1183	+	derived funds, in which a state agency function s only as a pass-
	1184	+	through conduit to fund an acquisition that is required by the
	1185	+
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	1211	+	funding source for the benefit of a nother entity or individuals and
	1212	+	the state agency does not retain owne rship of any part of the
	1213	+	acquisition as a result of the transaction ; or
	1214	+	10. The Secretary of Sta te when selecting a vendor for
	1215	+	publication of the Oklahoma Statutes in accordance with Se ction 13
	1216	+	of Title 75 of the Oklahoma Statutes; or
	1217	+	11. The Oklahoma Tourism and Recreation Commission for the
	1218	+	purpose of soliciting, negotiating , and effectuating contracts
	1219	+	pursuant to Sections 2213, 2221, 2239 and 2244 of this title.
	1220	+	B. The State Purchasing Director may form an adviso ry committee
	1221	+	consisting of representatives from entities exempted from the
	1222	+	provisions of the Oklahoma Central Pur chasing Act. The purpose of
	1223	+	the committee shall be to allow committee members to provide in put
	1224	+	into the development of shared state purchasing contracts,
	1225	+	collaboratively participate in the integration of their purchasing
	1226	+	platforms or electronic purchasing catalogs, analyze solutions that
	1227	+	may be used by state government to meet the purchasing nee ds of the
	1228	+	entities, explore joint purchases of gene ral use items that result
	1229	+	in mutual procurement of quality goods and services at the lowest
	1230	+	reasonable cost and e xplore flexibility, administrative relief and
	1231	+	transformation changes through utilization of procurement
	1232	+	technology.
	1233	+	C. At the invitation of th e State Purchasing Director entities
	1234	+	exempted from the provisions of the Oklahoma Central Purchasing Act
	1235	+
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	1261	+	shall participate in the advisory committee referenced in subsection
	1262	+	B of this section.
	1263	+	D. The State Purchasing Director may invite representatives of
	1264	+	political subdivisions, and local common education entities to
	1265	+	participate as members of the advisory committee.
	1266	+	SECTION 6. AMENDATORY 74 O.S. 2021, Section 2213, is
	1267	+	amended to read as follows:
	1268	+	Section 2213. A. The Oklahoma Tourism and Recreation Commission
	1269	+	may contract for the study, analysis, and planning as reasonably
	1270	+	necessary to aid in determining the feasibility of leasing, selling
	1271	+	or privately managing or developing the prop erty or facilities under
	1272	+	the control of the Commi ssion. The Commission shall be exempt from
	1273	+	the competitive bidding requirements of the Oklahoma Central
	1274	+	Purchasing Act for the purpose of soliciting, negotiating, and
	1275	+	effectuating such a contract or contrac ts pursuant to Section 85.3A
	1276	+	of this title.
	1277	+	B. The State Purchasing Director shall review and audit all
	1278	+	uses of the exemptions provided in subsection A of this s ection.
	1279	+	SECTION 7. AMENDATORY 74 O.S. 2021, Section 2221 , is
	1280	+	amended to read as follo ws:
	1281	+	Section 2221. A. The Oklahoma Tourism and Recreation
	1282	+	Commission, through the Department, is authorized to promote state -
	1283	+	owned, leased, or operated facilities. The Department may utilize
	1284	+	specific promotion programs such a s the provision of compliment ary
	1285	+
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	1311	+	rooms, package-rate plans, group rates, guest incentive sales
	1312	+	programs, entertainment of prospective guests, employee -information
	1313	+	programs, golf promotional programs as well as other sales and
	1314	+	promotion programs considered acceptable in the hospitality
	1315	+	industry, in the travel industry, or the regional magazine industry
	1316	+	are approved as necessary advertising and promotion expenses.
	1317	+	B. In order to best carry out the duties and responsibilities
	1318	+	of the Department and to serve th e people of the state in the
	1319	+	promotion of tourism and tourism economic development, the
	1320	+	Department may enter into partnerships for promotional programs and
	1321	+	projects with a private person, firm, corporation, organization or
	1322	+	association. The Department may enter into contracts or agree ments
	1323	+	under terms to be mutually agreed upon to carry out the promotional
	1324	+	programs and projects, excluding the advertising contract by the
	1325	+	Department which utilizes the Tourism Promotion Tax or acquisition
	1326	+	of land or buildings. The contracts or agreements may be negotiated
	1327	+	and shall not be subject to the provisions of the be exempt from the
	1328	+	Oklahoma Central Purchasing Act or and the Public Competitive
	1329	+	Bidding Act of 1974.
	1330	+	C. All contracts or agreements entered into as partnerships for
	1331	+	promotional projects or programs by the Departme nt shall be approved
	1332	+	by the Commission.
	1333	+	D. The State Purchasing Director shall review and audit all
	1334	+	uses of the exemptions provided in this section.
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	1361	+	SECTION 8. AMENDATORY 74 O.S. 2021, Section 2239, i s
	1362	+	amended to read as follows:
	1363	+	Section 2239. A. The following purchases b y the Oklahoma
	1364	+	Tourism and Recreation Department shall be exempt from The the
	1365	+	Oklahoma Central Purchasing Act:
	1366	+	1. Merchandise for resale purchased for and sold over the
	1367	+	Internet, in publications or through Department re tail outlets, such
	1368	+	as lodges, gift shops, golf course pro shops, restaurants and other
	1369	+	purchases made for t he production of such merchandise;
	1370	+	2. Materials, supplies and services necessary for the efficient
	1371	+	and economical operation of revenue -generating, Department-operated
	1372	+	facilities and programs including those made to maintain or improve
	1373	+	guest perception of quality and service; and
	1374	+	3. The services of writer s, artists, photographers, designers,
	1375	+	programmers, prepress houses, printers, shippers and other
	1376	+	professionals and firms involved in t he artistic production of
	1377	+	department publications, television shows, we bsites or other
	1378	+	revenue-generating or public -facing media, pursuant to internal
	1379	+	purchasing procedures approved by the State Purchasing Director.
	1380	+	B. The State Purchasing Director shall review and audit all
	1381	+	uses of the exemptions provided in subsection A of this section;
	1382	+	provided, no exemption shall be construed for the use of leasing or
	1383	+	contracting for state owned restaurants in Oklahoma State Parks .
	1384	+
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	1410	+	SECTION 9. AMENDATORY 74 O.S. 2021, Section 2244, is
	1411	+	amended to read as follows:
	1412	+	Section 2244. A. The Department shall be exempt from any
	1413	+	provision of Sections 85.1 through 85.45k of this title requiring
	1414	+	purchases to be made purs uant to a statewide contract for in dividual
	1415	+	purchases of less than Two Thousand Five Hundred Dollars ($2,5 00.00)
	1416	+	when the following conditions are met:
	1417	+	1. The Department documents a cost savings to the state
	1418	+	resulting from the purchase of the item(s) from a vendor not on the
	1419	+	statewide contract;
	1420	+	2. The exempted purchase is made in the county where the
	1421	+	purchasing facility, as identified in subsection B of this section,
	1422	+	is located or in an adjacent county; and
	1423	+	3. The exempted purchase is approved by the Exe cutive Director
	1424	+	or a designee prior to the purchase.
	1425	+	B. The Commission shall promulgate rules, procedures , and forms
	1426	+	necessary to adequately document the dollar savings resulting fro m
	1427	+	the application of this section.
	1428	+	C. The exemption provided for in this section shall apply to
	1429	+	individual department entities identified by the annual budget
	1430	+	submitted to the Office of Management and Enterprise Services.
	1431	+	D. The Department shall not be r equired to purchase furniture,
	1432	+	fixtures and equipment, and soft goods ass ociated with the decor of
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	1459	+	the state parks, lodges, golf, and tourism information center
	1460	+	facilities from Oklahoma prisons or reformatories.
	1461	+	E. B. The State Purchasing Director shall review and audit all
	1462	+	uses of the exemptions provided in this section. Nothing in this
	1463	+	section shall be const rued to authorize bid splitting as prohibited
	1464	+	by The the Oklahoma Central Purchasing Act.
	1465	+	SECTION 10. This act shall become effective November 1, 2023.
	1466	+	Passed the House of Representatives the 13th day of March, 2023.
572	1467
573	1468
574	1469
575	1470
576	1471		Presiding Officer of the House
577		-
578	1472		of Representatives
579	1473
580		-	Passed the Senate the 27th day of April, 2023.
	1474	+
	1475	+
	1476	+	Passed the Senate the ___ day of __________, 2023.
581	1477
582	1478
583	1479
584	1480
585	1481		Presiding Officer of the Senate
586	1482
587	1483
588		-	OFFICE OF THE GOVERNOR
589		-	Received by the Office of the Governor this ____________________
590		-	day of ___________________, 20_______, at _______ o'clock _______ M.
591		-	By: _________________________________
592		-	Approved by the Governor of the State of Oklahoma this _____ ____
593		-	day of ___________________, 20_______, at _______ o'clock _______ M.
594	1484
595		-
596		-	_________________________________
597		-	Governor of the State of Oklahoma
598		-
599		-	OFFICE OF THE SECRETARY OF STATE
600		-	Received by the Office of the Secretary of State this __________
601		-	day of ___________________, 20_______, at _______ o'clock _______ M.
602		-	By: _________________________________