ENGR. H. B. NO. 1774 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ENGROSSED HOUSE BILL NO. 1774 By: Williams of the House and Bullard of the Senate An Act relating to state government; amending 74 O.S. 2021, Section 85.3A, as amended by Section 53, Chapter 228, O.S.L. 2022 (74 O.S. Supp. 2022, Se ction 85.3A), which relates to the Oklahoma Central Purchasing Act; adding exemption; amending 74 O.S. 2021, Sections 2213, 2221, 2239 and 2244 which relate to the Oklahoma Tourism, Parks a nd Recreation Enhancement Act; modifying exemptions from the Oklahoma Central Purchasing Act; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.3A, as amended by Section 53, Chapter 228, O.S.L. 2022 ( 74 O.S. Supp. 2022, Section 85.3A), is amended to read as follows: Section 85.3A A. Compliance with the provisions of the Oklahoma Central Purchas ing Act shall not be required of: 1. County government; ENGR. H. B. NO. 1774 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. The Oklahoma State Regents for Higher Education , the institutions, centers or other constituent agencies of The Oklahoma State System of Higher Education; 3. The telecommunications network know n as OneNet; 4. The Department of Publ ic Safety gun range; 5. The State Treasurer for the following purcha ses: a. services including, but not lim ited to, legal services to assist in the administration of the Uniform Unclaimed Property Act, as provided i n Section 668 of Title 60 of the Oklahom a Statutes, and b. software, hardware and associated services to ass ist in the administration of funds and securities held by the state, as provided in Section 71.2 of Title 62 of the Oklahoma Statutes; 6. Statutorily allowed interagency agreements betwee n state agencies; 7. The Oklahoma Department of Veterans Affairs, i n accordance with Section 63.22 of Title 72 of the Oklahoma Statutes; 8. The Oklahoma Military Department for the purchases of heraldry items including, but limited to, medals, badges and other military accoutrements; 9. A transaction, wholly funded by monies other than state- derived funds, in which a state agency function s only as a pass- through conduit to fund an acquisition that is required by the ENGR. H. B. NO. 1774 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 funding source for the benefit of a nother entity or individuals and the state agency does not retain owne rship of any part of the acquisition as a result of the transaction ; or 10. The Secretary of Sta te when selecting a vendor for publication of the Oklahoma Statutes in accordance with Se ction 13 of Title 75 of the Oklahoma Statutes; or 11. The Oklahoma Tourism and Recreation Commission for the purpose of soliciting, negotiating, a nd effectuating contracts pursuant to Sections 2213, 2221, 2239 and 2244 of this title. B. The State Purchasing Director may form an adviso ry committee consisting of representatives from entities exempted from the provisions of the Oklahoma Central Purc hasing Act. The purpose of the committee shall be to allow committee members to provide in put into the development of shared state purchasing contracts, collaboratively participate in the integration of their purchasing platforms or electronic purchasing catalogs, analyze solutions that may be used by state government to meet the purchasing nee ds of the entities, explore joint purchases of gene ral use items that result in mutual procurement of quality goods and services at the lowest reasonable cost and ex plore flexibility, administrative relief and transformation changes through utilization of procurement technology. C. At the invitation of th e State Purchasing Director entities exempted from the provisions of the Oklahoma Central Purchasing Act ENGR. H. B. NO. 1774 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 shall participate in the advisory committee referenced in subsection B of this section. D. The State Purchasing Director may invite representatives of political subdivisions, and local common education entities to participate as members of the advisory committee. SECTION 2. AMENDATORY 74 O.S. 2021, Section 2213, is amended to read as follows: Section 2213. A. The Oklahoma Tourism and Recreation Commission may contract for the study, analysis, and planning as reasonably necessary to aid in determining the feasibility of leasing, selling or privately managing or developing the prop erty or facilities under the control of the Commi ssion. The Commission shall be exempt from the competitive bidding requirements of the Oklahoma Central Purchasing Act for the purpose of soliciting, negotiating, and effectuating such a contract or contrac ts pursuant to Section 85.3A of this title. B. The State Purchasing Director shall review and audit all uses of the exemptions provided in subsection A of this sectio n. SECTION 3. AMENDATORY 74 O.S. 2021, Section 2221 , is amended to read as follo ws: Section 2221. A. The Oklahoma Tourism and Recreation Commission, through the Department, is authorized to promote state - owned, leased, or operated facilities. The Department may utilize specific promotion programs such a s the provision of compliment ary ENGR. H. B. NO. 1774 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 rooms, package-rate plans, group rates, guest incentive sales programs, entertainment of prospective guests, employee -information programs, golf promotional programs as well as other sales and promotion programs considered acceptable in the hospitality industry, in the travel industry, or the regional magazine industry are approved as necessary advertising and promotion expenses. B. In order to best carry out the duties and responsibilities of the Department and to serve th e people of the state in the promotion of tourism and tourism economic development, the Department may enter into partnerships for promotional programs and projects with a private person, firm, corporation, organization or association. The Department may enter into contracts or agree ments under terms to be mutually agreed upon to carry out the promotional programs and projects, excluding the advertising contract by the Department which utilizes the Tourism Promotion Tax or acquisition of land or buildings. The contracts or agreements may be negotiated and shall not be subject to the provisions of the be exempt from the Oklahoma Central Purchasing Act or and the Public Competitive Bidding Act of 1974. C. All contracts or agreements entered into as partnerships for promotional projects or programs by the Departme nt shall be approved by the Commission. D. The State Purchasing Director shall review and audit all uses of the exemptions provided in this section. ENGR. H. B. NO. 1774 Page 6 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 4. AMENDATORY 74 O.S. 2021, Section 2239, i s amended to read as follows: Section 2239. A. The following purchases b y the Oklahoma Tourism and Recreation Department shall be exempt from The the Oklahoma Central Purchasing Act: 1. Merchandise for resale purchased for and sold over the Internet, in publications or through Department re tail outlets, such as lodges, gift shops, golf course pro shops, restaurants and other purchases made for the production of such merchandise; 2. Materials, supplies and services necessary for the efficient and economical operation of revenue -generating, Department-operated facilities and programs including those made to maintain or improve guest perception of quality and service; and 3. The services of writer s, artists, photographers, designers, programmers, prepress houses, printers, shippers and other professionals and firms involved in t he artistic production of department publications, television shows, websites or other revenue-generating or public -facing media, pursuant to internal purchasing procedures approved by the State Purchasing Director. B. The State Purchasing Director shall review and audit all uses of the exemptions provided in subsection A of this section; provided, no exemption shall be construed for the use of leasing or contracting for state owned restaurants in Oklahoma State Parks . ENGR. H. B. NO. 1774 Page 7 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 5. AMENDATORY 74 O.S. 2021, Section 2244, is amended to read as follows: Section 2244. A. The Department shall be exempt from any provision of Sections 85.1 through 85.45k of this title requiring purchases to be made purs uant to a statewide contract for in dividual purchases of less than Two Thousand Five Hundred Dollars ($2,500.00) when the following conditions are met: 1. The Department documents a cost savings to the state resulting from the purchase of the item(s) from a vendor not on the statewide contract; 2. The exempted purchase is made in the county where the purchasing facility, as identified in subsection B of this section, is located or in an adjacent county; and 3. The exempted purchase is approved by the Exe cutive Director or a designee prior to the purchase. B. The Commission shall promulgate rules, procedures, and forms necessary to adequately document the dollar savings resulting fro m the application of this section. C. The exemption provided for in this section shall apply to individual department entities identified by the annual budget submitted to the Office of Management and Enterprise Services. D. The Department shall not be r equired to purchase furniture, fixtures and equipment, and soft goods ass ociated with the decor of ENGR. H. B. NO. 1774 Page 8 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the state parks, lodges, golf, and tourism information center facilities from Oklahoma prisons or reformatories. E. B. The State Purchasing Director shall review and audit all uses of the exemptions provided in this section. Nothing in this section shall be const rued to authorize bid splitting as prohibited by The the Oklahoma Central Purchasing Act. SECTION 6. This act shall become effective November 1, 2023. Passed the House of Representatives the 13th day of March, 2023. Presiding Officer of the House of Representatives Passed the Senate the ___ day of __________, 2023. Presiding Officer of the Senate