Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB763 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	SENATE FLOOR VERSION - SB763 SFLR Page 1
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29		-	SENATE FLOOR VERSION
30		-	February 16, 2023
	53	+	STATE OF OKLAHOMA
31	54
	55	+	1st Session of the 59th Legislature (2023)
32	56
33		-	SENATE BILL ~~NO.~~ 763 By: Stanley
	57	+	SENATE BILL 763 By: Stanley
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	63	+	AS INTRODUCED
38	64
39	65		An Act relating to veteran-owned businesses; amending
40	66		74 O.S. 2021, Sections 85.44E, 3001, as amended by
41	67		Section 1, Chapter 252, O.S.L. 2022, 3003, as amended
42	68		by Section 3, Chapter 252, O.S.L. 2022, 3004.1, as
43	69		amended by Section 5, Chapter 252, O.S.L. 2022,
44	70		3004.2, as amended by Section 6, Chapter 252, O.S.L.
45	71		2022, 3006, as amended by Section 8, Chapter 252,
46	72		O.S.L. 2022, 3007, as amended by Section 9, Chapter
47		-	252, O.S.L. 2022, ~~and~~ 3008, as amended by Section 10,
	73	+	252, O.S.L. 2022, 3008, as amended by Section 10,
48	74		Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
49	75		Sections 3001, 3003, 3004.1, 3004.2, 3006, 3007, and
50	76		3008), which relate to veteran businesses, State Use
51	77		Advisory Council, definitions, co ntract management
52	78		fees, the State Use Advisory Council Revolving Fund,
53	79		contracts with certain agencies, procurement of
54	80		certain goods and services, and annual pricing
55	81		review; modifying certain definitions; removing
56	82		certain requirement; changing composition of council;
57	83		expanding organization eligible or contracts or
58	84		awards; expanding source of proceeds from certain
59	85		source; expanding facilitation of certain products
60	86		and services on certain schedule; allowing c ertain
61	87		businesses to be considered; adding exemptio n for
62	88		certain agency; expanding suppliers of go ods and
63	89		services; and providing an effective date.
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69	93		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
70	94		SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.44E, is
71	95		amended to read as follows:
72	96		Section 85.44E. A. Disabled Veteran Businesses.
73	97
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100	148		As used in this section:
101	149		1. “Service-disabled veteran” means any individual that is
102	150		disabled as certified by the appropriate federal agency responsible
103	151		for the administration of veterans ’ affairs “Veteran” shall have the
104	152		same meaning as defined in Section 2 of T itle 72 of the Oklahoma
105	153		Statutes; and
106	154		2. “Service-disabled veteran “Veteran-owned business” means a
107	155		business:
108	156		a. not less than fifty-one percent (51%) of which is
109	157		owned by one or more service-disabled veterans or, in
110	158		the case of any publicly owned business, not less than
111	159		fifty-one percent (51%) of the stock of wh ich is owned
112	160		by one or more service-disabled veterans, and
113	161		b. the management and daily busines s operations of which
114	162		are controlled by one or more service-disabled
115	163		veterans.
116	164		B. In awarding contracts for the performance of any job or
117	165		service, all agencies, departments, institutions and other entities
118	166		of this state and of each political subdivision o f this state shall
119	167		give a three-percentage point bon us preference to service-disabled
120	168		veteran businesses doing business as Oklahoma firms, corporations or
121	169		individuals, or which maintain Oklahoma offices or places of
122	170		business.
123	171
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150	222		C. In implementing the provis ions of subsection B of this
151	223		section, the following shall apply:
152	224		1. The Director of the Office of Management and Enterprise
153	225		Services shall have the goal of three percent (3%) of all such
154	226		contracts described in subsection B of this section to be awarded to
155	227		such veterans; and
156	228		2. If an insufficient number of such veterans doing business in
157	229		this state submit a bid or proposal for a contract by an agency,
158	230		department, institution or other entity of the state or a political
159	231		subdivision, such goal shall not be re quired and the provisions of
160	232		paragraph 1 of this sub section shall not apply.
161	233		D. The Director of the Office of Management and Enterprise
162	234		Services may promulgate r ules in order to implement the provisions
163	235		of this section.
164	236		SECTION 2. AMENDATORY 74 O.S. 2021, Section 3001, as
165	237		amended by Section 1, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
166	238		Section 3001), is amended to read as follows:
167	239		Section 3001. A. There is hereby created in the Office of
168	240		Management and Enterprise Services an advisory council to be known
169	241		as the “State Use Advisory Council”. The Council shall consist of
170	242		seven (7) eight (8) members:
171	243		1. A private citizen conversant with the employment needs of
172	244		people with significant disabilities who shall be appointed by and
173	245
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200	296		serve at the pleasure of the Gov ernor to act as an advocate for the
201	297		employment needs of people with significant disabilities;
202	298		2. The Director of the Office of Manag ement and Enterprise
203	299		Services or designee;
204	300		3. The Director of the Department of Rehabilitation Services,
205	301		or designee;
206	302		4. One member who shall be a state use provider who shall be
207	303		appointed by the President Pro Tempore of the Senate;
208	304		5. An individual or a parent or guardian of an individual with
209	305		significant disabilities who participates in vocati onal programming
210	306		through a qualified nonprofit agency for individuals with
211	307		disabilities, to be appointed by the Speaker of the House of
212	308		Representatives;
213	309		6. The Director of Human Services, or designee; and
214	310		7. A person employed by the Office of Management and Enterprise
215	311		Services Central Purchasing Division as a contracting officer,
216	312		appointed by the State Purchasing Director ; and
217	313		8. An Oklahoma Department of Vetera ns Affairs OKVetWorks
218	314		Program administrator, or designee.
219	315		B. The private citizens on the Council shall serve for a period
220	316		of two (2) years and may be reappointed by the appointing authority.
221	317		Any private citizen appointed pursuant to this sect ion to fill a
222	318		vacancy occurring prior to the expiration of the term for which the
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250	370		predecessor was appointed shall be appointed only for the remainder
251	371		of the term.
252	372		The State Use Advisory Council shall meet a minimum of twice a
253	373		year for the purpose of exchanging ideas to market and improve the
254	374		State Use Program.
255	375		SECTION 3. AMENDATORY 74 O.S. 2021, Section 3003, as
256	376		amended by Section 3, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
257	377		Section 3003), is amended to read as follows:
258	378		Section 3003. As used in Section 3001 et seq. of this title:
259	379		1. “Blind person” means a person having a visual acuity not to
260	380		exceed 20/200 in the better eye, with correcting lenses, or visual
261	381		acuity greater than 20/200 but with limitation in th e field of
262	382		vision such that the widest diameter of visual field subtends an
263	383		angle no greater than twenty (20) degrees;
264	384		2. “Council” means the State Use Advisory Council;
265	385		3. “Qualified nonprofit agency for the employment of people
266	386		with significant disabil ities” means a nonprofit agency employing
267	387		persons with significant disabilities who constitute at least
268	388		seventy-five percent (75%) of the direct labor hours engaged in
269	389		direct production, manufacturing, processing and/or assembling of
270	390		products or services offered by the agency for procurement by this
271	391		state or who meet the definition of blind person as provided for in
272	392		paragraph 1 of this section, or which is certified as a sheltered
273	393
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300	444		workshop by the Wage and Hour Division of the United States
301	445		Department of Labor;
302	446		4. “Person with significant disabilities” means an individual
303	447		with a physical or mental disability constituting a substantial
304	448		handicap to employment and preventing the person from engaging in
305	449		normal competitive employment and /or includes any blind person;
306	450		5. “Qualified organization” means a blind person or qualified
307	451		nonprofit agency for the employment of people with significant
308	452		disabilities or veteran-owned business contracting to supply goods
309	453		or services;
310	454		6. “Manufactured” means goods made by manual labor;
311	455		7. “Produced” means to have brought into existence or created
312	456		from raw materials;
313	457		8. “Processed” means the action of taking something through an
314	458		established and mostly routine set of procedures or steps to
315	459		substantially convert a potential product from one form to another.
316	460		This action involves a sequence of multiple steps each requiring a
317	461		distinct decision-making process to evolve a potential pr oduct to
318	462		the next step;
319	463		9. “Assemble” means to put or fit together or put together the
320	464		parts of a potential product;
321	465		10. “Central nonprofit agency (CNA)” means a qualified 501(c)3
322	466		nonprofit entity meeting the qualifications in the Request for
323	467		Procurement (RFP) issued by the Office of Management and Enterprise
324	468
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351	519		Services selected to administer and oversee the State Use Program;
352	520		and
353	521		11. “Procurement schedule” means a designated schedule of
354	522		products and services currently approved by the Office of Management
355	523		and Enterprise Services Central Purchasing Division as suitable to
356	524		procure from qualified organizations particip ating in the State Use
357	525		Program; and
358	526		12. “Veteran-owned business” means any disabled veteran-owned
359	527		business as defined in Section 63.22 of Title 72 of the Oklahoma
360	528		Statutes.
361	529		SECTION 4. AMENDATORY 74 O.S. 2021, Section 3004.1, as
362	530		amended by Section 5, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
363	531		Section 3004.1), is amende d to read as follows:
364	532		Section 3004.1. The State Purchasing Director may enter or
365	533		award contracts for products or services to a q ualified organization
366	534		or veteran-owned business as defined in Section 3003 of this title
367	535		and assess a contract management fee or levy. The contract
368	536		management fee or levy shall be deposited in the State Use Advisory
369	537		Council Revolving Fund, as created in Section 3004.2 of this title,
370	538		for the salary, administrative costs, annual trainings, professional
371	539		association memberships, qualified agency operational improvement
372	540		grants, periodic economic advantage study, Annual Report
373	541		development, and other expenses incurred by the Central Purchasing
374	542
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401	593		Division of the Office of Management and Enterprise Services for
402	594		promoting goods and services provided by qualified organizations.
403	595		SECTION 5. AMENDATORY 74 O.S. 2021, Section 3004.2, as
404	596		amended by Section 6, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
405	597		Section 3004.2), is amended to read as follows:
406	598		Section 3004.2. There is hereby created in the State Treasury a
407	599		revolving fund for the Office of M anagement and Enterprise Services
408	600		to be designated the “State Use Advisory Council Revolving Fund”.
409	601		The fund shall be a continuing fund, not subject to fiscal year
410	602		limitations, and shall consist of all proceeds from the management
411	603		fee or levy on contracts for purchases of products or services of
412	604		people with significant disabilities or veteran-owned businesses, as
413	605		provided in Section 3004.1 of this title. The fund shall be
414	606		invested in any of the types of instruments in which the State
415	607		Treasurer is authorized by law to invest. Interest earned shall be
416	608		retained by the fund. All monies accruing to the credit of the fund
417	609		are hereby appropriated and may be budgeted and expended by the
418	610		Office of Management and Enterprise Services for the salary and
419	611		other administrative expenses of the buyer and clerical and
420	612		technical support in the Central Purchasing Division of the Office
421	613		of Management and Enterprise Services responsible for contracts for
422	614		the products and services of people with significant disabilities,
423	615		veteran-owned businesses, and expenses the Office incurs to support
424	616		State Use operations including services of the Centralized Non-
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452	668		Profit Agency (CNA). Expenditures from the fund shall be made upon
453	669		warrants issued by the State Treasurer against claims filed as
454	670		prescribed by law with the Director of the Office of Management and
455	671		Enterprise Services for approval and payment.
456	672		SECTION 6. AMENDATORY 74 O.S. 2021, Section 3006, as
457	673		amended by Section 8, Chapter 252, O.S.L. 2022 (74 O.S. Supp. 2022,
458	674		Section 3006), is amended to read as follows:
459	675		Section 3006. The State Purchasing Director may contract with a
460	676		central nonprofit agency to facilitate:
461	677		1. Management of the day-to-day operations of the program;
462	678		2. The facilitation, promotion, and the distribution of orders
463	679		of the state for products or services on the procurement schedule
464	680		among qualified nonprofit agencies for people with significant
465	681		disabilities and veteran-owned businesses;
466	682		3. Scheduling and conducting annual training sessions;
467	683		4. Publishing the approved State Use Procurement Schedule;
468	684		5. Promotion of the State Use Program through development and
469	685		distribution of program marketing material, promotion of program
470	686		through continued contact with current and future customers; and
471	687		6. All other duties assigned by the RFP through the Office of
472	688		Management and Enterprise Services.
473	689		SECTION 7. AMENDATORY 74 O.S. 2 021, Section 3007, as
474	690		amended by Section 9, Chapter 2 52, O.S.L. 2022 (74 O.S. Supp. 2022,
475	691		Section 3007), is amend ed to read as follows:
476	692
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503	743		Section 3007. A. Whenever this state or any of its agencies
504	744		intends to procure any product or service included in the
505	745		procurement schedule, that entity shall secure the product or
506	746		service from a qualified nonprofit agency providing employment to
507	747		people with significant disabilities or a veteran-owned business at
508	748		the fair market price determin ed by the Office of Management and
509	749		Enterprise Services Centra l Purchasing Division, if the product or
510	750		service is available within the period required by the entity and
511	751		meets the specifications of the entity.
512	752		B. An agency of this state shall not evade the intent and
513	753		meaning of this section by slight variations from standards adopted
514	754		by the Office of Management and Enterprise Services Central
515	755		Purchasing Division.
516	756		C. Provided, the requirements of this section shall not apply
517	757		to the Oklahoma Department of Veterans Affairs for any purchase made
518	758		from a veteran-owned business as defined in Section 63.22 of Title
519	759		72 of the Oklahoma Statutes or procurement of janitorial services by
520	760		the Oklahoma State Bureau of Investigation. The Bur eau shall
521	761		conduct background investigations and national criminal history
522	762		record checks on companies and individu als with which it contracts
523	763		to provide janitorial services.
524	764		D. Any municipality or county agency of this state is
525	765		authorized to purchase products and services from any qualified
526	766		organization as defined in Section 3003 of this title. The
527	767
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554	818		qualified organization shall be able to meet the needs and
555	819		specifications for the products or services required by the
556	820		purchasing body at the fair market price. Procurements made
557	821		pursuant to the provisions of this sec tion shall not be subject to
558	822		competitive bid requirements.
559	823		SECTION 8. AMENDATORY 74 O.S. 2021, Section 3008, as
560	824		amended by Section 10, Chapt er 252, O.S.L. 2022 (74 O.S. Supp. 2022,
561	825		Section 3008), is amend ed to read as follows:
562	826		Section 3008. A. Nothing in Section 3001 et seq. of this title
563	827		pursuant to purchases of products and services from people with
564	828		significant disabilities or a veteran-owned business shall be
565	829		construed to prohibit any department or agency of the state from
566	830		manufacturing or supplying its own products or services for its own
567	831		use. Procurements made pursuant to Section 3001 et seq. of this
568	832		title shall not be subject to the competitive bid requirements of
569	833		the Oklahoma Central Purchasing Act, Section 85.1 et seq. of this
570	834		title.
571	835		B. The Office of Management and Enterprise Services Central
572	836		Purchasing Division shall require an annua l qualified organization
573	837		pricing review for all products and services approved and designated
574	838		on the procurement schedule. The method of the pricing review shall
575	839		be defined in the promulgated rules.
576	840		C. When the fair market price for a product or service approved
577	841		by the Office of Management and Enterprise Services Central
578	842
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605	893		Purchasing Division exceeds a current market price for the same
606	894		product or service and such lower market price has been verified by
607	895		the agency through compliance with the fair market ana lysis process
608	896		approved by the Office of Management and Enterprise Services Central
609	897		Purchasing Division, the State Use contracting officer may grant a
610	898		temporary exception to a requesting agency so that the agency may
611	899		purchase the product or service from the supplier offering the lower
612	900		market price.
613	901		SECTION 9. This act shall become effective November 1, 2023.
614		-	~~COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT~~
615		-	~~February 16,~~ 2023 ~~- DO PASS~~
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