Oklahoma 2023 Regular Session

Oklahoma House Bill HB1775 Latest Draft

Bill / Introduced Version Filed 01/18/2023

                             
 
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STATE OF OKLAHOMA 
 
1st Session of the 59th Legislature (202 3) 
 
HOUSE BILL 1775 	By: Williams 
 
 
 
 
 
AS INTRODUCED 
 
An Act relating to state government; creating the 
Department of Central Services; making Division a 
separate and distinct agency; directing Department 
and Director to continue to exercise statutory 
powers, duties, and responsibilities; providing for 
succession to contractual rights and 
responsibilities; requiring Director to adopt and 
enforce certain rules and authorizing further 
rulemaking authority; authorizing execution of 
certain agreement; requiring consent of employees 
prior to transfer; providing certain protections 
relating to salary, leave, time earned, and benefits; 
requiring transfer of personnel to be coordinated 
with Office of Management and Enterprise Services; 
requiring payment of certain expenses; abolishing 
certain division within the Office of Management and 
Enterprise Services upon completion of transfer; 
directing certain coordination; providing for certain 
transfers; amending 74 O.S. 2021, Sections 61.2, 
85.3, 85.5, and 62 O.S. 2021, Section 34 .3.1, which 
relate to Department of Central Services; modifying 
references to Department and Direc tor; providing for 
codification; and providing an effective date. 
 
 
 
 
 
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: 
SECTION 1.     NEW LAW     A new section of law to be codified 
in the Oklahoma Statutes as Section 61.10 of Title 74, unless there 
is created a duplication in numbering, reads as follows:   
 
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A.  1.  There is hereby created the Department of Central 
Services. The Governor shall appoint a Director of Department of 
Central Services, by and with the advice and consent of t he Senate, 
who shall hold office at the pleasure of the Governor and shall 
continue to serve until his or her successor is duly appointed and 
is qualified. The salary of the Director of the Department of 
Central Services shall be set by the Legislature. 
2.  The Director of the Department of Central Services , with the 
approval of the Governor, shall employ and make the a ppointment of 
such experts and assistants as may be necessary in the performance 
of the Director's duties as required by law. No appointments to 
positions shall be made in excess of the positions authorized by act 
of the Legislature for the Office of Manag ement and Enterprise 
Services. 
3.  Beginning on the effective date of this act, the Department 
of Central Services shall cease to be part of or a division of the 
Office of Management and Enterprise and shall be deemed to be a 
separate and distinct agency, to be known as the Department of 
Central Services. The Department of Central Services and the 
Director of the Department of Central Services shall continue to 
exercise their statutory powers, duties, and contractual 
responsibilities.  All records, property, equipment, assets, monies, 
financial interests, liabilities, matters pendi ng, and funds of the 
Department of Central Services as a Division of the Office of   
 
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Management and Enterprise Services shall be transferred to the 
Department of Central Services. 
4.  The Department shall succeed to any contractual rights or 
responsibilities incurred by the Department of Central Services 
Division of the Office of Management and Enterprise Services . 
5.  Rules promulgated by the Department of Central Services 
Division of the Office of Management and Enterprise Services that 
are in effect on the effective date of this act shall be i mmediately 
adopted and enforced by the Department and the Director of the 
Department and shall maintain the authority to further promulgate 
and enforce rules. 
6.  The Department and the Office of Management and Enterprise 
Services may enter into an agreement for t he transfer of personnel 
from the Office of Management and Enterprise Services to the 
Department.  No employee shall be transferred to the Department 
except on the freely given written consent of the employee.  All 
employees who are transferred to the Department shall not be 
required to accept a lesser grade or salary than present ly received.  
All employees shall retain leave, sick, and annual time earned, and 
any retirement and longevity benefits which have accrued during 
their tenure with the Office of Management and Enterprise Services.  
The transfer of personnel between the state agencies shall be 
coordinated with the Office of Management and Enterprise Services. 
   
 
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7.  The expenses incurred by the Department as a result of the 
transfer required by this subsection shall b e paid by the Office of 
Management and Enterprise Services. 
8.  The Department of Central Services Division within the 
Office of Management and Enterprise Services shall be abolished by 
the Office of Management and Enterprise Services after the transfer 
has been completed. 
9.  The Office of Management and En terprise Services shall 
coordinate the transfer of records, property, equipment, assets, 
funds, allotments, purchase orders, liabilities, outstanding 
financial obligations, or encumbrances provided for in this 
subsection. 
SECTION 2.     AMENDATORY     74 O.S. 20 21, Section 61.2, is 
amended to read as follows: 
Section 61.2 Whenever the terms "Board of Affairs", "State 
Board of Public Affairs", "Board" when used in reference to the 
Board of Public Affairs, or "Office of Public Affairs ", or 
"Department of Central S ervices" appear in the Oklahoma Statutes 
they shall mean the Office of Management and Enterprise Services.  
Whenever the term "Director of Public Affairs " appears in the 
Oklahoma Statutes it shall mean the Director of the Office of 
Management and Enterpris e Services.  Whenever the term "Director of 
Central Services" appears in the Oklahoma Statutes it shall mean the   
 
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Director of the Office of Management and Enterprise Services or 
designee. 
SECTION 3.     AMENDATORY     74 O.S. 2021, Section 85.3, is 
amended to read as follows: 
Section 85.3 A.  There is hereby created and established in the 
Office of Management and Enterprise Services Department of Central 
Services a Purchasing Division, the administrative he ad of which 
shall be the State Pu rchasing Director. 
B.  The Director of the Office of Management an d Enterprise 
Services Department of Central Services shall hire the State 
Purchasing Director.  The State Purchasing Director shall: 
1.  Have a thorough knowledge of office practices and b uying 
procedures in volume purchasing; and 
2.  Be a graduate of an a ccredited college or university with at 
least five (5) years ' experience in commercial or governmental 
purchasing, or, in lieu of such education, have at least ten (10) 
years' experience in commercial or governmental purchasing. 
C.  The State Purchasing Di rector, with the approval of the 
Director of the Office of Management and Enterprise Services 
Department of Central Services , may employ such personnel as may be 
necessary to exercise author ity and perform duties under the 
Oklahoma Central Purchasing Act. 
D.  All activities of any state agency, department, or 
institution relating to purchasing shall be under the direction of   
 
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the Purchasing Division unless otherwise provided by the Oklahoma 
Central Purchasing Act. 
E.  The Purchasing Division shall provide qu alified personnel to 
assist the purchasing activities of state agencies, departments, and 
institutions, as required by the Oklahoma Central Purchasing Act. 
F.  Each state agency, department, and institution shall 
designate personnel to coordinate its purch asing functions with the 
Purchasing Division. 
G.  The Purchasing Division may, if the needs of a state agency, 
department, or institution are such as to so require, employ, and 
establish a buyer within a state agency.  The state agency shall pay 
all expenses incurred for any buyer required to be placed within its 
agency. 
H.  Except as provided in Section 34.36 of Title 62 of the 
Oklahoma Statutes, no state agency subject to the Oklahoma Centr al 
Purchasing Act shall have or maintain a purchasing section with out 
the prior approval in writing of the Purchasing Division unless 
otherwise provided in the Oklahoma Central Purchasing Act nor shall 
such purchasing section perform purchasing functions f or another 
state agency. 
I.  The Purchasing Division shall make ac quisitions from 
industries operated by the Department of Corrections pursuant to the 
provisions of Section 549.1 of Title 57 of the Oklahoma Statutes. 
J.  None of the personnel authorized by this section shall:   
 
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1.  Sell to or otherwise provide acquisitions to any state 
agency subject to the Oklahoma Central Purchasing Act; 
2.  Be employees, partners, associates, officers, or 
stockholders in or with any business entity that sells to or 
otherwise provides acquisitions to any state agency subject to the 
Oklahoma Central Purchasing Act; 
3.  Be employed in any of the positions authorized by this 
section if a spouse or child owns any stock in any business entity 
which sells to or otherwise provides acquisitions to any agency 
subject to the Oklahoma Central Purchas ing Act; 
4.  Be employed in any of the positions authorized by this 
section if a relative within the third degree of consanguinity or 
affinity sells to or otherwise provides acquisitions to any state 
agency subject to the Oklahoma Central Purchasing Act or is 
interested in any business entity which does so, except that such 
relative, excluding a spouse or child, may own Twenty -five Thousand 
Dollars ($25,000.00) worth or less, or one percent ( 1%) or less, 
whichever amount is the lesser amount, of the stock o f a corporation 
or any business entity which sells to or otherwise provides 
acquisitions to any state agency subject to the Oklahoma Central 
Purchasing Act; or 
5.  Violate applicable rules o f the Ethics Commission 
promulgated pursuant to Article XXIX of th e Oklahoma Constitution 
that relate to accepting gifts from a vendor or a vendor 's agent.   
 
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SECTION 4.     AMENDATORY     74 O.S. 2021, Section 85.5, is 
amended to read as follows: 
Section 85.5 A.  Except as otherwise provided in this section, 
the State Purchasing Director, under the supervision of the Director 
of the Office of Management and Enterprise Services Department of 
Central Services, shall have sole and excl usive authority and 
responsibility for all acquisitions by state agencies.  In order to 
carry out the powers and duties of the Chief Information Officer and 
the Information Services Division , the Chief Information Officer 
shall have sole and exclusive auth ority and responsibility for all 
acquisitions of information and telecommunications technology, 
equipment, software, products and related peripherals and services 
by state agencies.  Public construction contracts are awarded 
pursuant to Title 61 of the Okl ahoma Statutes and are not subject to 
the Oklahoma Central Purchasing Act. 
B.  Every state agency shall determine its own quantitative 
needs for acquisitions and the general class or nature of the 
acquisitions.  The State Purchasing Director, after consult ation 
with the requisitioning state agency, shall have authority to 
determine the particular brand, model or other specific 
classification of each acquisition and to draft or invoke pursuant 
to the Oklahoma Central Purchasing Act specifications establishin g 
the requirements for all necessary contracts or purchase orders.   
 
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C.  The Director of the Office of Management and Enterprise 
Services Department of Central Services shall have authority an d 
responsibility to promulgate rules in connection with provisions of 
the Oklahoma Central Purchasing Act for: 
1.  The time, manner, authentication and form of making 
requisitions for acquisitions; 
2.  Inspection, analysis and testing of acquisitions or sa mples 
bidders submit prior to contract award; 
3.  The form and manner of s ubmission for bids or proposals a 
bidder submits and the manner of accepting and opening bids or 
proposals; 
4.  The conditions under which the Office of Management and 
Enterprise Services Department of Central Services shall require 
written contracts for a cquisitions, the conditions under which 
acquisitions may be made on an open account basis, and the 
conditions and manner of negotiating such contracts; 
5.  Obtaining acquisitions pro duced by state institutions; 
6.  Conditions under which any of the rules h erein authorized 
may be waived; 
7.  The amounts of and deposits on any bond or other surety 
required to be submitted with a bid or contract for the furnishing 
of acquisitions and the conditions under which such bond or other 
surety shall be required;   
 
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8.  The manner and conditions of delivery, which shall incl ude 
the designation of the common carrier of property to be used to 
transport acquisitions whenever a common carrier is used, an d the 
acceptance, or rejection, including check of quantities, of any 
acquisitions; 
9. The form of any estimate, order or other information 
required in connection with an acquisition; 
10.  State agency acquisitions not exceeding the acquisition 
threshold amount requiring competitive bid to ensure 
competitiveness, fairness, comp liance with the Oklahoma Central 
Purchasing Act and Se ction 3001 et seq. of this title, which relates 
to the State Use Committee.  The rules shall include separate 
provisions based on acquisition amounts as follows: 
a. state agencies shall make acquisition s not exceeding 
Twenty-five Thousand Dollars ($25,000. 00), provided 
the acquisition process is fair and reasonable and is 
conducted pursuant to rules authorized pursuant to 
this section, and 
b. state agencies with certified procurement officers and 
internal purchasing procedures found compliant by the 
State Purchasing Director may make acquisitions in 
excess of the fair and reasonable acquisition 
threshold amount provided for in this section and not 
exceeding Two Hundred Fifty Thousand Dollars   
 
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($250,000.00), pursuant to rules authorized by this 
section; 
11.  Training by the State Purchasing Director of state agency 
procurement officers; 
12.  Review and audit by the State Purchasing Dir ector of state 
agency acquisitions; 
13.  The conditions for increasing acq uisition limits for state 
agencies which have had a pr ior reduction in acquisition limit by 
the Director of the Office of Management and Enterprise Services 
Department of Central Ser vices; 
14.  Use of a state purchase card to make acquisitions; 
15.  Any other matter or practice which relates to the 
responsibilities of the State Purchasing Director; 
16.  Conditions for determination and authorization of 
acquisition threshold amounts of state agencies; 
17.  The form and manner of verification by suppliers tha t the 
supplier is eligible to do business in the State of Oklahoma and has 
obtained all necessary permits and licenses, pursuant to applicable 
provisions of law; and 
18.  Payment procedure rules for state agencies to adhere to 
regarding statewide contracts . 
D.  The State Purchasing Director shall provide training for 
state agency procureme nt officials, and other procurement staff, and 
is authorized to require retraining of such procur ement personnel   
 
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found not to be in compliance with provisions of the Oklah oma 
Central Purchasing Act or associated rules.  The training may 
include any matters related to state procurement practices.  State 
agency purchasing officials that demonstrate prof iciency shall be 
certified as "certified procurement officers " by the State 
Purchasing Director and shall be authorized to make acquisitions 
pursuant to provisions of the Oklahoma Central Purchasing Act and 
associated rules.  The State Purchasing Director may assess a fee to 
state agencies for the training that does not exceed e ach state 
agency's pro rata share of the costs the State Purchasing Director 
incurs to provide the training. 
E.  The State Purchasing Director shall review state agency 
acquisitions for the purposes of: 
1.  Ensuring state agency compliance with provisions of the 
Oklahoma Central Purchasing Act; 
2.  Ensuring state agency compliance with rul es promulgated by 
the Office of Management and Enterprise Services Department of 
Central Services pursuant to the Oklahoma Central Purchasing Act; 
3.  Ensuring state agenc y compliance with provisions of Section 
3001 et seq. of this title pertaining to the State Use Committee; 
4.  Reporting any acquisition by any state agency found not to 
be in compliance with those sections or rules to the Director of the 
Office of Management and Enterprise Services Department of Central 
Services;   
 
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5.  A determination by the State Purchasing Director to reduce a 
state agency's acquisition authority amount when the state agency is 
found not to be in compliance with the Oklahoma Central Purchas ing 
Act or associated rules or requirements of the State Purchasing 
Director pursuant to this section; and 
6.  A determination by the State Purchas ing Director to increase 
a state agency's acquisition authority amount after the agency cures 
deficiencies in connection with a prior reduction in the authority 
amount by the State Purchasing Director. 
F.  Based on written findings and when recommended by the State 
Purchasing Director, the Director of the Office of Management and 
Enterprise Services Department of Central Services may: 
1.  Transmit written findings by the State Purchasing Director 
to the State Auditor and Inspector for further investigation, 
indicating purchasing procedur es that do not conform to the Oklahoma 
Central Purchasing Act or associated ru les; or 
2.  Transmit to the Attorney General or the State Auditor and 
Inspector for further investigation a report made by the State 
Purchasing Director that the Director of the Office of Management 
and Enterprise Services Department of Central Services reasonably 
believes indicates that an action that constitutes a criminal 
violation pursuant to the Oklahoma Central Purchasing Act or other 
laws has been taken by any state agency, sta te agency official, 
bidder or supplier.   
 
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G.  1.  Pursuant to the requiremen ts of the Oklahoma Central 
Purchasing Act, the State Purchasing Director shall have authority 
to enter into any statewide, multistate or multigovernmental 
contract.  The state entity designated by law, as spec ified in 
Section 1010.3 of Title 56 of the Okla homa Statutes, shall 
participate in the purchase of pharmaceuticals available through 
such multistate or multigovernmental contracts entered into by the 
State Purchasing Director. 
2. Whenever it appears advan tageous to the state or to any 
state agency to purchase or otherwise acquire any acquisition which 
may be offered for sale by the United States government or any 
agency thereof, the State Purchasing Director may execute a contrac t 
for the acquisition with the federal government or federal agency 
and may also utilize contracts awarded by other governmental 
agencies including, but not limited to, agencies of the United 
States of America. 
3.  The State Purchasing Director may designa te, for use by 
state agencies, contracts described in this subsection and contracts 
awarded on behalf of one or more state agencies. 
4.  Prior to exercising the authority to cancel a contract, the 
State Purchasing Director may authorize renegotiation of an existing 
contract with an incumbent supplier for the purposes of obtainin g 
more favorable terms for the state.   
 
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5.  The State Purchasing Director shall have the authority to 
designate certain contracts for state agencies as statewide 
contracts and mandator y statewide contracts.  In order to carry out 
the powers and duties of the Chief Information Officer and 
Information Services Division, the Chief Information Officer shall 
have the authority to designate certain information technology and 
telecommunication contracts as statewide con tracts and mandatory 
statewide contracts and ma y negotiate consolidation contracts, 
enterprise agreements and high technology system contracts in lieu 
of or in conjunction with competitive bidding procedures to reduce 
acquisition cost. 
6.  The State Purcha sing Director may publish such 
specifications relating to materials, supplies, equipment and 
services to be acquired for the state as may best promote 
competition and apprise potential suppliers of the type of product 
desired. 
H. 1.  The State Purchasing Director may develop and test new 
contracting policies, procedures and innovations that hold potential 
for making state procurement more effective and efficient and 
identify, and make recommendations to the Legislature of, any 
appropriate changes in law.  Such development and testing, proof of 
concept, pilot project or other similar test shall not be considered 
an acquisition subject to the Oklahoma Central Purchasing Act.   
 
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2.  The State Purchasing Director is authorized to explore and 
investigate cost savin gs in energy, resource usage and maintenance 
contracts and to identify and negotiate contract solutions 
including, but not limited to, pilot projects to achieve cost 
savings for this state. 
I.  The State Purchasing Director shall endeavor to satisfy 
state agencies in terms of cost, quality and timeline ss of the 
delivery of acquisitions by using bidders who have a record of 
successful past performance, promoting competition, minimizing 
administrative operating costs and conducting business with 
integrity, fairness and openness. 
J.  The State Purchasing D irector shall undertake the following: 
1.  The use of electronic commerce pursuant to the Oklahoma 
Online Bidding Act for solicitation, notification and other 
purchasing processes; 
2.  Monitoring rules promulg ated pursuant to the Oklahoma 
Central Purchasing Act to ensure that the rules satisfy the 
interests of the state, are clear and succinct and encourage 
efficiency in purchasing processes; 
3.  A program to identify suppliers ' performance records; 
4.  Development of criteria for the use of sealed bid 
contracting procedures, negotiated contracting procedures, selection 
of types of contracts, postaward administration of purchase orders   
 
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and contracts, addendums, termination of contracts and contract 
pricing; 
5.  Continual improvement in the quality of the per formance of 
the Purchasing Division through training programs, management 
seminars, development of benchmarks and key management indicators, 
and development of standard provisions, c lauses and forms; 
6.  The State Purchasing Director shall prescribe standa rdized 
contract forms and all other forms or certifications requisite or 
deemed necessary by the State Purchasing Director to effectuate the 
provisions of the Oklahoma Central Purcha sing Act and associated 
rules; 
7.  Development of programs to improve cust omer relations 
through training, improved communications and appointment of 
technical representatives; 
8.  Provide for public two -way communication between procurement 
officers and potential bidders who have q uestions regarding a 
request for proposal or in vitation to bid; and 
9.  Determine whether and to what extent information included in 
a bid or similar offer is confidential and reject all requests to 
disclose the information so de signated. 
K.  The State Purchasing Director may utilize and authorize 
state agencies to utilize reverse auctions to obtain acquisitions. 
L.  Prior to the award of a contract to a supplier, the State 
Purchasing Director shall verify, pursuant to applicable provisions   
 
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of law, that the supplier is eligible to do business in this st ate 
by confirming registration with the Secretary of State and franchise 
tax payment status pursuant to Sections 1203 and 1204 of Title 68 of 
the Oklahoma Statutes.  The provisions o f this subsection shall be 
applicable only if the contract amount is Two H undred Fifty Thousand 
Dollars ($250,000.00) or greater. 
M.  On an annual basis, the State Purchasing Director shall 
transmit to the Governor, Speaker of the House of Representatives 
and President Pro Tempore o f the Senate a report documenting the 
savings realized by each agency through the application of best 
spend practices including the collection and tracking of spend data, 
strategic sourcing programs and implementation of managed and 
mandatory statewide con tracts and include in the report information 
regarding emergency acquisitions. 
N.  The acquisition threshold amount applicable to an 
acquisition made pursuant to this act or associated rules shall not 
apply to state agency purcha ses; provided, the State Pu rchasing 
Director determines the agency has sub ject matter experts on staff 
having the specialized expertise to purchase goods or services, the 
agency possesses the necessary legal and procurement staff to 
procure and monitor the contracts and provided the Director of the 
Office of Management and Enter prise Services Department of Central 
Services shall certify that the proposed purchase does not conflict 
with consolidated statewide spend initiatives.   
 
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1.  Nothing in this subsection shall give an agency authority to 
issue statewide, multis tate or multigovernmental contracts. 
2.  Agencies making purchases pursuant to this subsection shall: 
a. be responsible for contracts awarded pursuant to this 
subsection, which includes, but may not be limited to, 
contract management, protest costs, all co sts 
connected with or incurred as a result of the 
contract, including legal representation, 
b. comply with rules and policies of the Office of 
Management and Enterprise Services Department of 
Central Services, and 
c. report contracts issued pursuant to this subsection to 
the Office of Management and Enterprise Services, 
Central Purchasing Division Department of Central 
Services, on a quarterly basis. 
3.  Purchases made in accordance with this subsect ion shall be 
made pursuant to rules authorized by this section. 
O.  The State Purchasing Director, with approval by the Director 
of the Office of Management and Enterprise Services Department of 
Central Services, is authorized to make use of any state 
laboratories for the tests and analyses authorized in this section 
wherever practicable and to use private laboratories or the 
laboratories of another gove rnment agency if it is impracticable to 
use state laboratories.  The State Purchasing Director is further   
 
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authorized to cooperate in test and analysis programs or agreements 
with other states or the United States government and to accept 
federal funds and funds donated by private endowments or foundations 
for the purpose of participation in such testing progr ams. 
SECTION 5.     AMENDATORY     62 O.S. 2021, Section 34.3.1, is 
amended to read as follows: 
Section 34.3.1 A.  The Department of Central Services, Office 
of Personnel Management, Oklahoma Stat e Employees Benefits Council 
and the State and Education Employees Group Insurance Board are 
consolidated into the Office of Management and Enterprise Services.  
The Director of the Office of Management and Enterprise Services 
shall assume all executive -level responsibilities for each agency 
and shall function as and possess the powers of the agency director 
for each consolidated agency as enumerated by existing statute.  For 
the purposes of this section the term "consolidated agencies " shall 
mean the Department of Central Services, Office of Personnel 
Management, Oklahoma State Employees Benefits Council and the State 
and Education Employees Group Insurance Board.  Any funds 
appropriated to, in the possession of or allocated to any of the 
consolidated agencies shall be deemed to be funds of the Office of 
Management and Enterprise Services. 
B.  Upon request of the Direct or of the Office of Management and 
Enterprise Services, the personnel of the consolidated agencies 
shall deliver to the Office of Management and Enterprise Services   
 
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all books, papers, records and property of the consolidated 
agencies. 
C.  All functions, po wers, duties and obligations previously 
assigned to each of the consolidated agencies are hereby transferred 
to the Office of Management and Enterprise Services. 
D.  All rules, regulations, acts, orders, determinations and 
decisions of the consolidated age ncies pertaining to the functions 
and powers herein transferred and assigned to the Office of 
Management and Enterprise Services, in force at the time of such 
transfer, assignment, assumption or devolution shall continue in 
force and effect as rules, regul ations, acts, orders, determinations 
and decisions of the consolidated agencies until duly modified or 
abrogated by the appropriate body or u ntil otherwise provided by 
law. 
SECTION 6.  This act shall become effective November 1, 2023. 
 
59-1-5012 LRB 01/11/23