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SENATE FLOOR VERSION
February 16, 2023
SENATE BILL NO. 763 By: Stanley
An Act relating to veteran-owned businesses; amending
74 O.S. 2021, Sections 85.44E, 3001, as amended by
Section 1, Chapter 252, O.S.L. 2022, 3003, as amended
by Section 3, Chapter 252, O.S.L. 2022, 3004.1, as
amended by Section 5, Chapter 252, O.S.L. 2022,
3004.2, as amended by Section 6, Chapter 252, O.S.L.
2022, 3006, as amended by Section 8, Chapter 252,
O.S.L. 2022, 3007, as amended by Section 9, Chapter
252, O.S.L. 2022, and 3008, as amended by Section 10,
Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
Sections 3001, 3003, 3004.1, 3004.2, 3006, 3007, and
3008), which relate to veteran businesses, State Use
Advisory Council, definitions, cont ract management
fees, the State Use Advisory Council Revolving Fund,
contracts with certain agencies, procurement of
certain goods and services, and annual pricing
review; modifying certain definitions; removing
certain requirement; changing composition of cou ncil;
expanding organization eligible or contracts or
awards; expanding source of proceeds from certain
source; expanding facilitation of certain products
and services on certain schedule; allowing c ertain
businesses to be considered; adding exemption for
certain agency; expandi ng suppliers of goods and
services; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.44E, is
amended to read as follows:
Section 85.44E. A. Disabled Veteran Businesses.
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As used in this section:
1. “Service-disabled veteran” means any individual that is
disabled as certified by the appropriate federal agency responsible
for the administration of veterans ’ affairs “Veteran” shall have the
same meaning as defined in Section 2 of T itle 72 of the Oklahoma
Statutes; and
2. “Service-disabled veteran “Veteran-owned business” means a
business:
a. not less than fifty-one percent (51%) of which is
owned by one or more service-disabled veterans or, in
the case of any publicly owned business, not less than
fifty-one percent (51%) of the stock of wh ich is owned
by one or more service-disabled veterans, and
b. the management and daily busines s operations of which
are controlled by one or more service-disabled
veterans.
B. In awarding contracts for the performance of any job or
service, all agencies, departments, institutions and other entities
of this state and of each political subdivision o f this state shall
give a three-percentage point bon us preference to service-disabled
veteran businesses doing business as Oklahoma firms, corporations or
individuals, or which maintain Oklahoma offices or places of
business.
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C. In implementing the provis ions of subsection B of this
section, the following shall apply:
1. The Director of the Office of Management and Enterprise
Services shall have the goal of three percent (3%) of all such
contracts described in subsection B of this section to be awarded to
such veterans; and
2. If an insufficient number of such veterans doing business in
this state submit a bid or proposal for a contract by an agency,
department, institution or other entity of the state or a political
subdivision, such goal shall not be re quired and the provisions of
paragraph 1 of this sub section shall not apply.
D. The Director of the Office of Management and Enterprise
Services may promulgate r ules in order to implement the provisions
of this section.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 3001, as
amended by Section 1, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 3001), is amended to read as follows:
Section 3001. A. There is hereby created in the Office of
Management and Enterprise Services an advisory council to be known
as the “State Use Advisory Council”. The Council shall consist of
seven (7) eight (8) members:
1. A private citizen conversant with the employment needs of
people with significant disabilities who shall be appointed by and
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serve at the pleasure of the Governor to act as an advocate for the
employment needs of people with significant disabilities;
2. The Director of the Office of Manag ement and Enterprise
Services or designee;
3. The Director of the Department of Rehabilitation Services,
or designee;
4. One member who shall be a state use provider who shall be
appointed by the President Pro Tempore of the Senate;
5. An individual or a parent or guardian of an individual with
significant disabilities who participates in vocati onal programming
through a qualified nonprofit agency for individuals with
disabilities, to be appointed by the Speaker of the House of
Representatives;
6. The Director of Human Services, or designee; and
7. A person employed by the Office of Management and Enterprise
Services Central Purchasing Division as a contracting officer,
appointed by the State Purchasing Director ; and
8. An Oklahoma Department of Vetera ns Affairs OKVetWorks
Program administrator, or designee.
B. The private citizens on the Council shall serve for a period
of two (2) years and may be reappointed by the appointing authority.
Any private citizen appointed pursuant to this sect ion to fill a
vacancy occurring prior to the expiration of the term for which the
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predecessor was appointed shall be appointed only for the rema inder
of the term.
The State Use Advisory Council shall meet a minimum of twice a
year for the purpose of exchanging ideas to market and improve the
State Use Program.
SECTION 3. AMENDATORY 74 O.S. 2021, Section 3003, as
amended by Section 3, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 3003), is amended to read as follows:
Section 3003. As used in Section 3001 et seq. of this title:
1. “Blind person” means a person having a visual acuity not to
exceed 20/200 in the bet ter eye, with correcting lenses, or visual
acuity greater than 20/200 but with limitation in th e field of
vision such that the widest diameter of visual field subtends an
angle no greater than twenty (20) degrees;
2. “Council” means the State Use Advisory Council;
3. “Qualified nonprofit agency for the employment of people
with significant disabil ities” means a nonprofit agency employing
persons with significant disabilities who constitute at least
seventy-five percent (75%) of the direct labor hours engaged in
direct production, manufacturing, processing and/or assembling of
products or services offered by the agency for procurement by this
state or who meet the definition of blind person as provided for in
paragraph 1 of this section, or which is certified as a sheltered
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workshop by the Wage and Hour Division of the United States
Department of Labor;
4. “Person with significant disabilities” means an individual
with a physical or mental disability constituting a substantial
handicap to employment and preventing the person from engaging in
normal competitive employment and /or includes any blind person;
5. “Qualified organization” means a blind person or qualified
nonprofit agency for the employment of people with significant
disabilities or veteran-owned business contracting to supply goods
or services;
6. “Manufactured” means goods made by manual labor;
7. “Produced” means to have brought into existence or created
from raw materials;
8. “Processed” means the action of taking something through an
established and mostly routine set of procedures or steps to
substantially convert a potential product from one form to another.
This action involves a sequence of multiple steps each requiring a
distinct decision-making process to evolve a potential product to
the next step;
9. “Assemble” means to put or fit together or put together the
parts of a potential product;
10. “Central nonprofit agency (CNA)” means a qualified 501(c)3
nonprofit entity meeting the qualifications in the Request for
Procurement (RFP) issued by the Office of Management and Enterprise
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Services selected to administer and oversee the State Use Program;
and
11. “Procurement schedule” means a designated schedule of
products and services currently approved by the Office of Management
and Enterprise Services Central Purchasing Division as suitable to
procure from qualified organizations particip ating in the State Use
Program; and
12. “Veteran-owned business” means any disabled veteran-owned
business as defined in Section 63.22 of Title 72 of the Okl ahoma
Statutes.
SECTION 4. AMENDATORY 74 O.S. 2021, Section 3004.1, as
amended by Section 5, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 3004.1), is amende d to read as follows:
Section 3004.1. The State Purchasing Director may enter or
award contracts for products or services to a q ualified organization
or veteran-owned business as defined in Section 3003 of this title
and assess a contract management fee or levy. The contract
management fee or levy shall be deposited in the State Use Advisory
Council Revolving Fund, as created in Section 3004.2 of this title,
for the salary, administrative costs, annual trainings, professional
association memberships, qualified agency operational improvement
grants, periodic economic advantage study, Annual Report
development, and other expenses incurred by the Central Purchasing
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Division of the Office of Management and Enterprise Services for
promoting goods and services provided by qualified organizations.
SECTION 5. AMENDATORY 74 O.S. 2021, Section 3004.2, as
amended by Section 6, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 3004.2), is amended to read as follows:
Section 3004.2. There is hereby created in the State Treasury a
revolving fund for the Office of M anagement and Enterprise Services
to be designated the “State Use Advisory Council Revolving Fund”.
The fund shall be a continuing fund, not subject to fiscal year
limitations, and shall consist of all proceeds from the management
fee or levy on contracts for purchases of products or services of
people with significant disabilities or veteran-owned businesses, as
provided in Section 3004.1 of this title. The fund shall be
invested in any of the types of instruments in which the State
Treasurer is authorized by law to invest. Interest earned shall be
retained by the fund. All monies accruing to the credit of the fund
are hereby appropriated and may be budgeted and expended by the
Office of Management and Enterprise Services for the salary and
other administrative expenses of the buyer and clerical and
technical support in the Central Purchasing Division of the Office
of Management and Enterprise Services responsible for contracts for
the products and services of people with significant disabilities,
veteran-owned businesses, and expenses the Office incurs to support
State Use operations including services of the Centralized Non-
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Profit Agency (CNA). Expenditures from the fund shall be made upon
warrants issued by the State Treasurer against claims filed as
prescribed by law with the Director of the Office of Management and
Enterprise Services for approval and payment.
SECTION 6. AMENDATORY 74 O.S. 2021, Section 3006, as
amended by Section 8, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 202 2,
Section 3006), is amended to read as follows:
Section 3006. The State Purchasing Director may contract with a
central nonprofit agency to facilitate:
1. Management of the day-to-day operations of the program;
2. The facilitation, promotion, and the distribution of orders
of the state for products or services on the procurement schedule
among qualified nonprofit agencies for people with significant
disabilities and veteran-owned businesses;
3. Scheduling and conducting annual training sessions;
4. Publishing the approved State Use Procurement Schedule;
5. Promotion of the State Use Program through development and
distribution of program marketing material, promotion of program
through continued contact with current and future customers; and
6. All other duties assigned by the RFP through the Office of
Management and Enterprise Services.
SECTION 7. AMENDATORY 74 O.S. 2 021, Section 3007, as
amended by Section 9, Chapter 2 52, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 3007), is amended to read as follows:
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Section 3007. A. Whenever this state or any of its agencies
intends to procure any product or service included in the
procurement schedule, that entity shall secure the product or
service from a qualified nonprofit agency providing employment to
people with significant disabilities or a veteran-owned business at
the fair market price determin ed by the Office of Management and
Enterprise Services Centra l Purchasing Division, if the product or
service is available within the period required by the entity and
meets the specifications of the entity.
B. An agency of this state shall not evade the intent and
meaning of this section by slight variations from standards adopted
by the Office of Management and Enterprise Services Central
Purchasing Division.
C. Provided, the requirements of this section shall not apply
to the Oklahoma Department of Veterans Affairs for any purchase made
from a veteran-owned business as defined in Section 63.22 of Title
72 of the Oklahoma Statutes or procurement of janitorial services by
the Oklahoma State Bureau of Investigation. The Bur eau shall
conduct background investigations and national criminal history
record checks on companies and individu als with which it contracts
to provide janitorial services.
D. Any municipality or county agency of this state is
authorized to purchase products and services from any qualified
organization as defined in Section 3003 of this title. The
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qualified organization shall be able to meet the needs and
specifications for the products or services required by the
purchasing body at the fair market price. Procurements made
pursuant to the provisions of this sec tion shall not be subject to
competitive bid requirements.
SECTION 8. AMENDATORY 74 O.S. 2021, Section 3008, as
amended by Section 10, Chapt er 252, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 3008), is amend ed to read as follows:
Section 3008. A. Nothing in Section 3001 et seq. of this title
pursuant to purchases of products and services from people with
significant disabilities or a veteran-owned business shall be
construed to prohibit any department or agency of the state from
manufacturing or supplying its own products or services for its own
use. Procurements made pursuant to Section 3001 et seq. of this
title shall not be subject to the competitive bid requirements of
the Oklahoma Central Purchasing Act, Section 85.1 et seq. of this
title.
B. The Office of Management and Enterprise Services Central
Purchasing Division shall require an annual qualified organization
pricing review for all products and services approved and designated
on the procurement schedule. The method of the pricing review shall
be defined in the promulgated rules.
C. When the fair market price for a product or servi ce approved
by the Office of Management and Enterprise Services Central
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Purchasing Division exceeds a current market price for the same
product or service and such lower market price has been verified by
the agency through compliance with the fair market a nalysis process
approved by the Office of Management and Enterprise Services Central
Purchasing Division, the State Use contracting officer may grant a
temporary exception to a requesting agency so that the agency may
purchase the product or service from t he supplier offering the lower
market price.
SECTION 9. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT
February 16, 2023 - DO PASS