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53	53	STATE OF OKLAHOMA
54	54
55	55	1st Session of the 59th Legislature (2023)
56	56
57	57	SENATE BILL 680 By: Rosino
58	58
59	59
60	60
61	61
62	62
63	63	AS INTRODUCED
64	64
65	65	An Act relating to state government; amending 74 O.S.
66	66	2021, Section 85.7, as amended b y Section 1, Chapter
67	67	188, O.S.L. 2022 (74 O.S. Supp. 2022, Section 85.7) ,
68	68	which relates to acquisitions; modifying exception to
69	69	competitive bidding requirements; updating statutory
70	70	reference; and declaring an emergency .
71	71
72	72
73	73
74	74
75	75	BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
76	76	SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.7, as
77	77	amended by Section 1, Chapter 188, O.S.L. 2022 (74 O.S. Supp. 2022,
78	78	Section 85.7), is amended to read as follows:
79	79	Section 85.7. A. 1. Except as otherwise provided by the
80	80	Oklahoma Central Purchasing Act, or associated rules:
81	81	a. every state agency shall initiate all acquisitions by
82	82	the submission of a requisition to t he Purchasing
83	83	Division, and
84	84	b. no state agency shall make an acquisition for an
85	85	amount exceeding Fifty Thousand Dollars ($50,000.00)
86	86	or the limit determined by the State Purchasin g
87	87	Director pursuant to rules authorized by Section 85.5
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139	139	of this title, not to exceed Two Hundred Fifty
140	140	Thousand Dollars ($250,000.00), without submission of
141	141	a requisition to the Purchasing Division for issuance
142	142	of a solicitation for the acquisition on beha lf of the
143	143	agency. Any exemption from competitive bid
144	144	requirements of the Okl ahoma Central Purchasing Act
145	145	further exempts the acquisition from requisition
146	146	requirements of the act.
147	147	2. The State Purchasing Director may request additional
148	148	information necessary to adequately revi ew a requisition to ensure
149	149	compliance with this act the Oklahoma Central Purchasing Act and
150	150	associated rules. If the State Purchasing Di rector determines that
151	151	an acquisition is not necessary, excessive or not justified, the
152	152	State Purchasing Director shall deny the requi sition.
153	153	3. The provisions of this act the Oklahoma Central Purchasing
154	154	Act shall not preclude a state agency from :
155	155	a. accepting gifts or donations in any mann er authorized
156	156	by law, or
157	157	b. making an acquisition for itself without submitting a
158	158	requisition under this section when authorized in
159	159	writing by the State Pu rchasing Director.
160	160	4. Any acquisition a state agency ma kes shall be made pursuant
161	161	to this act the Oklahoma Central Purchasing Act and associated
162	162	rules. No agency shall use s plit purchasing for the purpose of
163	163
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214	214	evading the requirement of competitive bidding or other requi rement
215	215	of this act the Oklahoma Central Purchasing A ct or associated rules.
216	216	Violation of this provisio n shall be cause for discipline of a state
217	217	employee up to and including termination.
218	218	5. The State Purchasing Director may waive or increase the
219	219	limit authorized for a state agency acquisit ion made pursuant to its
220	220	own competitive procedures. To perfect an otherwise valid
221	221	acquisition inadvertently exceeding th e limit due to administrative
222	222	error by a state agency or unforeseeable circumstances, the state
223	223	agency shall request a limited waiver or increase upon the discovery
224	224	of the error or circumstance to the State Purchasing Director. The
225	225	State Purchasing Direct or shall report requests for waivers o r
226	226	increases, stating the amount and whether the request was granted or
227	227	denied, upon request by t he Governor, President Pro Tempore of the
228	228	Senate or Speaker of the House of Representatives.
229	229	6. Competitive bidding requi rements of this section shall not
230	230	be required for the following:
231	231	a. contracts for master custodian banks or trust
232	232	companies, investmen t managers, investment
233	233	consultants, and actuaries for the state ret irement
234	234	systems, and Oklahoma Employees Insurance and B enefits
235	235	Board, pension fund management consultants of the
236	236	Oklahoma State Pension Commission and the
237	237	Commissioners of the Land Office, examiners, experts,
238	238
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289	289	or consultants for the Insurance Department whose job
290	290	duties are tied to Market Conduct Exams, Financi al
291	291	Exams, and Insurance Business Transfers, financial
292	292	institutions to act as depositories and managers of
293	293	the Oklahoma College Savings Plan accounts a nd other
294	294	professional services as defined in Sectio n 803 of
295	295	Title 18 of the Oklahoma Statutes. W hen requested by
296	296	the Oklahoma Employees Insuran ce and Benefits Board or
297	297	the governing board of a state retirement system
298	298	authorized to hire investment managers , the Purchasing
299	299	Division shall assist in the proce ss of selecting
300	300	investment managers,
301	301	b. a state agency making such an acquisition shall notif y
302	302	the State Purchasing Director within fifteen (15) days
303	303	following completion of the acquisition. A list of
304	304	the exempt contracts shall be provided, upon request,
305	305	to a member of the Appropriations and Budget C ommittee
306	306	of the House of Representatives or App ropriations
307	307	Committee of the Senate,
308	308	c. purchases of postage by state agencies made pursuant
309	309	to Sections 90.1 through 90.4 of this title,
310	310	d. a sole source acquisit ion made in compliance with
311	311	Section 85.44D.1 of this title,
312	312
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363	363	e. an acquisition for des ign, development, communication
364	364	or implementation of the state employees flexible
365	365	benefits plan; provided, procedures us ed for the
366	366	acquisition are consistent with competit ive bid
367	367	requirements of this act the Oklahoma Central
368	368	Purchasing Act and associated rules,
369	369	f. any acquisition of a servic e which the Office of
370	370	Management and Enterprise Services has approved as
371	371	qualifying for a fixed and uniform rate, subject to
372	372	the following:
373	373	(1) the Purchasing Division shall establi sh criteria
374	374	and guidelines for those services which may
375	375	qualify for a fixed and uniform rate,
376	376	(2) fixed and uniform rate contracts authorized by
377	377	this subsection shall be limited to contracts for
378	378	those services furnished to persons directly
379	379	benefiting from such services and shall not be
380	380	used by a state agency to employ consultants or
381	381	to make other acquisitions,
382	382	(3) any state agency desiring to have a service
383	383	qualified for a fixed and uniform rate shall make
384	384	a request for service qualification to the State
385	385	Purchasing Director and submit documentation to
386	386	support the request. The Sta te Purchasing
387	387
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438	438	Director shall approve or deny the request. If
439	439	approved, the state ag ency shall establish a
440	440	fixed and uniform rate for t he service. No
441	441	contracts shall be entered int o by the state
442	442	agency until the rate has been approved by the
443	443	state agency in a public hearing. The proposed
444	444	rate shall be clearly and separately identified
445	445	in the agenda of the state agency for the hearing
446	446	and shall be openly and separately discussed
447	447	during such hearing. The state agency shall
448	448	notify the State Purchasing Direc tor of its
449	449	pending consideration of the proposed rate at
450	450	least thirty (30) days befo re the state agency is
451	451	to meet on the proposed rate and deliver a copy
452	452	of the agenda items concer ning the proposed rate
453	453	with supporting documentation. The State
454	454	Purchasing Director shall communicate any
455	455	observation, reservation, criticism or
456	456	recommendation to the agency, either in person at
457	457	the time of the hearing or in writing delivered
458	458	to the state agency before or at the time of the
459	459	hearing. The State Purchasing Directo r shall
460	460	specifically note in the written communications
461	461	whether the Director has det ermined the rate to
462	462
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513	513	be excessive. Any written comm unication
514	514	presented in the absence of the Stat e Purchasing
515	515	Director shall be presented orally during the
516	516	public hearing. Whether made in person or in
517	517	writing, any comment made by the State Purchasing
518	518	Director shall be made a part of the minutes of
519	519	the hearing in full,
520	520	(4) within two (2) weeks after t he convening of the
521	521	Legislature, the administrative officer of the
522	522	state agency shall furnish to the Speaker of the
523	523	House of Representatives, the President Pro
524	524	Tempore of the Senate and to any member of the
525	525	House or Senate, if requested by the member, a
526	526	complete list of all of the types of services
527	527	paid for by uniform fixed rates , the amount of
528	528	the rate last approved by the agency for the
529	529	service and the number of contracts then in
530	530	existence for each type of ser vice. Any rate
531	531	which has been determined to b e excessive by the
532	532	State Purchasing Director shall be specifically
533	533	identified in the list by the state agency, and
534	534	(5) at any time, the State Purchasing Direct or may
535	535	review, suspend or terminate a contract ente red
536	536	into pursuant to the provisions of this pa ragraph
537	537
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588	588	if the Director determines the contract is not
589	589	necessary, is excess ive or is not justified,
590	590	g. an acquisition for a client of the State Department of
591	591	Rehabilitation Services and acquisitions of the
592	592	business enterprise program ; provided, the agency
593	593	develops and maintains standards for such an
594	594	acquisition. The agency may elect to utilize the
595	595	Purchasing Division for an acquisition. The standards
596	596	shall foster economy, provide a short response time,
597	597	include appropriate safeguards, require written
598	598	records, ensure appropriate competition for economical
599	599	and efficient purchasing and shall be approved by the
600	600	State Purchasing Director,
601	601	h. structured settlement agreements entered into by the
602	602	Attorney General’s office in order to settle any
603	603	lawsuit involving the state, the Legislature, any
604	604	state agency or any em ployee or official of the state
605	605	if:
606	606	(1) prior to entering int o any contract for the
607	607	services of an entity to administer a structured
608	608	settlement agreement, the Attorney General
609	609	receives proposals from at least three entities
610	610	engaged in providing such servic es, and
611	611
612	612
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662	662	(2) the selection of a particular entity is made on
663	663	the basis of the response to the request which is
664	664	the most economical and provides the most
665	665	competent service which furthers the best
666	666	interests of the state,
667	667	i. an acquisition by a state agency pu rsuant to a
668	668	contract the State Purchasing Director enters int o on
669	669	behalf of a state agency or awards and designates for
670	670	use by state agencies, or
671	671	j. an acquisition by the Committee for Sustaining
672	672	Oklahoma’s Energy Resources pursuant to a contract
673	673	with a local supplier for the purpose of holding a
674	674	special event or an ex hibition throughout the state.
675	675	7. Notwithstanding any other provision of law, an acquisition
676	676	may be exempted from requirements of this section by the State
677	677	Purchasing Director when in the State Purchasing Director’s
678	678	discretion unusual, time-sensitive or unique circumstances exist
679	679	which make such exemption in the best and immediate interest of the
680	680	state. As used in this subsection, “State Purchasing Director ”
681	681	shall not mean a designee. Any such acquisitions shall be described
682	682	in detail and publicly posted as a data feed. The description shall
683	683	include the name of the supplier, cost of the acquisit ion, reason
684	684	for exemption and, as applicable, detailed comparison of the
685	685	acquisition with comparable items, any identified cost savings
686	686
687	687
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737	737	resulting from the acquisi tion and a description of benefits to the
738	738	state. The State Purchasing Director shall take no action under the
739	739	provisions of this subsection prior to such public posting.
740	740	B. Competitively bid ac quisitions shall be awarded to the
741	741	lowest and best, or best v alue, bidder or bidders.
742	742	C. Bids for an amount requiring submission of requisitions to
743	743	the Purchasing Division shall be evaluated by the Purchasing
744	744	Division and the state agency receiving the ac quisition. At a
745	745	minimum, cost and technical expertise shall be considered in
746	746	determining the lowest and best, or best value, bid. Further, the
747	747	state agency shall present its evaluation and recommendation to the
748	748	State Purchasing Director. A documented ev aluation report
749	749	containing the evaluations of the Purchasing Division or the state
750	750	agency shall be completed prior to the contract award and such
751	751	report shall be a matter of public record.
752	752	D. Except as otherwise specifically provided by law, the
753	753	acquisition of food items or food products by a state agency from a
754	754	public trust created pursuant to Sections 176 through 180.56 of
755	755	Title 60 of the Oklahoma Statute s shall comply with competitive
756	756	bidding requirements of this section.
757	757	E. Cooperative contracts shall not be utilized unless the
758	758	purchasing cooperative and its af filiated suppliers have complied
759	759	with competitive bid requirements of this act the Oklahoma Central
760	760	Purchasing Act and associated rules.
761	761
762	762
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812	812	F. Notwithstanding any provision of this act the Oklahoma
813	813	Central Purchasing A ct, in all cases where federal granted funds are
814	814	involved, the federal laws, rules and regulations thereto shall
815	815	govern to the extent necessary to inure to the benefit of such funds
816	816	to this state.
817	817	G. A court order requi ring an acquisition by a state agency,
818	818	whether or not such state agency is subject to this act the Oklahoma
819	819	Central Purchasing Act, shall not invalidate competitive bidding
820	820	procedures required by this section if such court order does not
821	821	specify a specific supplier. Any such acquisition sha ll comply with
822	822	competitive bid procedures.
823	823	SECTION 2. It being immediately necessary for the preservation
824	824	of the public peace, health or safety, an emergency is hereby
825	825	declared to exist, by reason whereof this act shall take effect and
826	826	be in full force from and after its passage an d approval.
827	827
828	828	59-1-748 KR 1/18/2023 12:23:33 PM

Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB680 Compare Versions