ENGR. S. A. TO 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 SENATE AMENDMENT TO 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, Section 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. AUTHOR: Add the following House Coauthor: Wolfley AMENDMENT NO. 1. Page 1, strike the title, enacting clause and entire bill and insert “An Act relating to the Oklahoma Central Purchasing Act; amending 74 O.S. 2021, Section 85. 7, as amended by Section 1, Chapter 188, O.S.L. 2022 (74 O.S. Supp. 2022, Section 85.7), which relates to acquisition initiation; adding exemption for certain contracts from competitive bidding requirements; amending 74 O.S. 2021, Section 85.12 , which relates to excluded acquisitions of the Oklahoma Central P urchasing Act; prohibiting certain actions; allowing for certain purchases to be exempted; authorizing audit by the State Purchasing Director for c ertain purchases; updating statutory references; updating statutory language; repealing 74 O.S. 2021, Section s 2213, 2221, 2239, and 2244, which relate to the Oklahoma ENGR. S. A. TO 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 Tourism, Parks and Recreation Enhancement 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 85.7, as amended by Section 1, Chapter 188, O.S.L. 2022 (74 O. S. Supp. 2022, Section 85.7), is amended to read as follows: Section 85.7. A. 1. Except as otherwise provided by the Oklahoma Central Purchasing Act, or associated rules: a. every state agency shall initiate all acquisitions by the submission of a requi sition to the Purchasing Division, and b. no state agency shall make an acquisition for an amount exceeding Fifty Thousand Dollars ($50,000.00) or the limit determined by the Sta te Purchasing Director pursuant to rules authorized by Section 85.5 of this title, not to exceed Two Hundred Fifty Thousand Dollars ($250,000.00), without submission of a requisition to the Purchasing Division for issuance of a solicitation for the acquisi tion on behalf of the agency. Any exemption from competitive bid requirements of the Oklahoma Central Purchasing Act further exempts the acquisition from requisition requirements of the act. ENGR. S. A. TO 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 2. The State Purchasing Director may request additional information necessary to adequately review a requisition to ensure compliance with this act the Oklahoma Central Purchasing Act and associated rules. If the State Purchasing Director determines that an acquisition is not necessary, excessive or not justified, the State Purchasing Director shall deny the requisition. 3. The provisions of this act the Oklahoma Central Purchasing Act shall not preclude a state ag ency from: a. accepting gifts or donations in any manner authorized by law, or b. making an acquisition for itself without submitting a requisition under this section when authoriz ed in writing by the State Pu rchasing Director. 4. Any acquisition a state agency makes shall be made pursuant to this act the Oklahoma Central Purchasi ng Act and associated rules. No agency shall use split purchasing for the purpose of evading the requirement of competitive bidding or oth er requirement of this act the Oklahoma Central Purchasing Act or associated rules. Violation of this provision shal l be cause for discipline of a state employee up to and including termination. 5. The State Purchasing Director may waive or increase the limit authorized for a state agency acquisition made pursuant to its own competitive proc edures. To perfect an other wise valid acquisition inadvertently exceeding the limit due to administrative ENGR. S. A. TO 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 error by a state agency or unforeseeable circumstances, the st ate agency shall request a limited waiver or increase upon the discovery of the error or circumstance to the State Purchasing Director. The State Purchasing Director shall report requests for waivers o r increases, stating the amount and whether the reques t was granted or denied, upon request by the Governor, Presiden t Pro Tempore of the Senate or Speaker of the House of Representatives. 6. Competitive bidding requirements of this section shall not be required for the following: a. contracts for master cus todian banks or trust companies, investment managers, investmen t consultants, and actua ries for the state retiremen t systems, and Oklahoma Employees Insurance and Benefits Board, pension fund management consultants of the Oklahoma State Pension Commission and the Commissioners of the Land Office, examiners, experts, or consultants for the Insurance Department whose job duties are tied to Market Conduct Exams, Financial Exams, and Insurance Business Transfers, financial institutions to act as depositories an d managers of the Oklahoma College Savings Plan accounts and other professional service s as defined in Section 803 of Title 18 of the Oklahoma Statutes. When requested by the Oklahoma Employees Insuran ce and Benefits Board or ENGR. S. A. TO 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 the governing board of a stat e retirement system authorized to hire investment managers, the Purchasing Division shall assist in the process of selecting investment managers, b. a state agency making such an acquisition shall notif y the State Purchasing Director within fifteen (15) da ys following completion of the acquisition. A list of the exempt contracts shall be pr ovided, upon request, to a member of the Appropriations and Budget Committee of the House of Representatives or App ropriations Committee of the Senate, c. purchases of postage by state agencies made pursuant to Sections 90.1 through 90.4 of this title, d. a sole source acquisition ma de in compliance with Section 85.44D.1 of this title, e. an acquisition for des ign, development, communication or implementation of the state employees flexible benefits plan; provided, procedures used for the acquisition are consistent with competitive bi d requirements of this act the Oklahoma Central Purchasing Act and associated rules, f. any acquisition of a service which the Office of Management and Enterprise Services has a pproved as ENGR. S. A. TO 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 qualifying for a fixe d and uniform rate, subject to the following: (1) the Purchasing Division shall establish criteria and guidelines for those services which may qualify for a fixed and uniform rate, (2) fixed and uniform rate contracts author ized by this subsection shall be limited to contracts for those services furnis hed to persons directly benefiting from such services and shall not be used by a state agency to employ c onsultants or to make other acquisitions, (3) any state agency desiring to have a service qualified for a fixed and uniform rate shall make a request for service qualification to the State Purchasing Director and submit documentation to support the request. The State Purchasing Director shall approve or deny the request. If approved, the state agency shall establish a fixed and uniform rate for the ser vice. No contracts shall be entered into by the state agency until the rate has been approved by the state agency in a public hearing. The proposed rate shall be clearly and s eparately identified in the agenda of the state agency for the hearing ENGR. S. A. TO 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 and shall be openly and separately discussed during such hearing. The state agency shall notify the State Purcha sing Director of its pending consideration of the proposed rate at least thirty (30) days before the sta te agency is to meet on the proposed rate and d eliver a copy of the agenda items concerning the proposed rate with supporting documentation. The State Purchasing Director shall communicate any observation, reservation, crit icism or recommendation to the a gency, either in person at the time of the hear ing or in writing delivered to the state agency before or at the time of the hearing. The State Purchasi ng Director shall specifically note in the written communications whether the Director has determined th e rate to be excessive. Any written communicat ion presented in the absenc e of the State Purchasing Director shall be presented orally during the public hearing. Whether made in person or in writing, any comment made by the State Purchasing Director shall be made a part of the minutes of the hearing in full, ENGR. S. A. TO 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 (4) within two (2) weeks after the convening of the Legislature, the administrative officer of th e state agency shall furnish to the Speaker of the House of Representati ves, the President Pro Tempore of the Senate and to any member of the House or Senate, if requested by the member, a complete list of all of the types of services paid for by uniform f ixed rates, the amount of the rate last approved by the agency for the service and the number of contrac ts then in existence for each type of service. Any rate which has been determined to be excessive by the State Purchasing Director shall be specificall y identified in the list by the state agency, and (5) at any time, the State Purchasing Director may review, suspend or terminate a contract entered into pursuant to the provisio ns of this paragraph if the Director determines the contract is not necessary, is excessive or is not justified, g. an acquisition for a client of the State Department of Rehabilitation Services; provided, the agency develops and maintains standards for su ch an acquisition. The agency may elect to utilize the Purchasing Division for an acquisition. The standards shall foster ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 9 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 economy, provide a short r esponse time, include appropriate safeguards, require written records, ensure appropriate competition for economical and efficient purchasing and shall be approved by the State Purchasing Director, h. structured settlement agreements entered into by the Attorney General’s office in order to settle any lawsuit involving the state, the Legislature, any state agency or any employee or official of the state if: (1) prior to entering into an y contract for the services of an entity to administer a structured settlement agreement, the Attorney G eneral receives proposals from at least three e ntities engaged in providing such services, and (2) the selection of a particular entity is made on the basis of the response to the request which is the most economical and pro vides the most competent service which furthers the best interests of the state , i. an acquisition by a st ate agency pursuant to a contract the State Purchasing Director enters into on behalf of a state agency or awards and designates for use by state agencies, ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 10 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 j. an acquisition by the C ommittee for Sustaining Oklahoma’s Energy Resources pursuant to a contract with a local supplier for the purpose of holding a special event or an exhibi tion throughout the state, and k. contracts for the study, analysis, and planning, as reasonably necessary, to aid in determining the feasibility of leasing, selling, or pri vately managing or developing the property or facilities under control of the Oklahoma Tourism and Recreation Commission. The Commission shall be exempt from the competitive bidding requirements of the Oklahoma Central Purchasing Act for the purpose of solicit ing, negotiating, and effectuating such a contract or contracts; provided, that the State Purchasing Director shall review and audit all uses of the exemptions provided in this subparagraph biannually. 7. Notwithstanding any other provisio n of law, an acquisition may be exempted from requirements of this section by the State Purchasing Director when in the State Purchasing Director’s discretion unusual, time-sensitive or unique circumst ances exist which make such exemption in the best and i mmediate interest of the state. As used in this subsection, “State Purchasing Director ” shall not mean a designee. Any such acquisitions shall be described ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 11 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 in detail and publicly posted as a data fee d. The description shall include the name of the suppl ier, cost of the acquisition, reason for exemption and, as applicable, detailed comparison of the acquisition with comparable items, any identified cost savings resulting from the acquisition and a des cription of benefits to the state. The State Purchasin g Director shall take no action under the provisions of this subsection prior to such public p osting. B. Competitively bid ac quisitions shall be awarded to the lowest and best, or best value, bidder o r bidders. C. Bids for an amount requiring submission of requisitions to the Purchasing Division shall be evaluated by the Purchasing Division and the state agency receiving the ac quisition. At a minimum, cost and technical expertise shall be considered in determining the lowest and best, or best value, bid. Further, the state agency shall present its evaluation and recommendation to the State Purchasing Director. A documented ev aluation report containing the evaluations of the Purchasing Division or th e state agency shall be completed prior to the contract award and such report shall be a matter of public record. D. Except as otherwise specificall y provided by law, the acquisition of food items or food products by a state agency from a public trust created pursuant to Sections 176 through 180.56 of Title 60 of the Oklahoma Statutes shall comply with competitive bidding requirements of this section. ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 12 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. Cooperative contracts shall not be utilized unless the purchasing cooperative and its affiliated suppl iers have complied with competitive bid requirements of this act the Oklahoma Central Purchasing Act and associated rules. F. Notwithstanding any provision of this act the Oklahoma Central Purchasing Act, in all cases where federal granted funds are involved, the federal laws, rules and regulations thereto shall govern to the extent necessary to inure to the benefit of such funds to this state. G. A court order requiring an acquisition by a state agency, whether or not such state agency is subject to this act the Oklahoma Central Purchasing Act, shall not invalidate competitive bidding procedures required by this section if such court order does not specify a specific supplier. Any such acquisition sha ll comply with competitive bid procedures. SECTION 2. AMENDATORY 74 O.S. 2021, Section 85.12, is amended to read as follows: Section 85.12. A. The provisions of this section s hall not be construed to affect any law relating to fiscal or ac counting procedure except as they may be directly in conflict herewith ; and all claims, warrants, and bonds shall be examined, inspected, and approved as now provided by law. B. Except as otherwise provided by this section, the acquisitions specified in t his subsection shall be made in ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 13 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 compliance with Section 85.39 of this title and purchasing card program requirements but are not subject to other provisions of t he Oklahoma Central Purchasing Act: 1. Food and other products produce d by state institutions and agencies; 2. The printing or duplication of publications or forms of whatsoever kind or chara cter by state agencies if the work is performed upon their own equipment by their own employee s. Pursuant to this paragraph, the stat e agency may only use eq uipment owned or leased by the agency and may only utilize that equipm ent for printing services re quired by the agency in performing duties imposed upon the agen cy or functions authorized to b e performed by the agency. Any use of t he equipment by the agen cy pursuant to an agreement or contract with any other entity resultin g in delivery of intermediate or finished products to the entity purchasing or using the products shall be subject to the provisions of this act the Oklahoma Central Purchasing Act and associated rules; 3. Department of Transportation and Transportation C ommission contractual services or right-of-way acquisitions, contracts awarded pursuant to bids let by the Transportation Commission for the maintenance or construction of streets, roads, highways , bridges, underpasses or any other transportation facilitie s under the control of the Department of Transportation, equipment or material acquisitions accruing to the Department of Transportation required ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 14 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 in Federal-Aid federal aid contracts and acquisiti ons for public- service-type announcements initiated by the Department of Transportation, but not acq uisitions for advertising, public relations or employment services; 4. Utility services regul ated by a state or federal regulatory commission, municipal or dinance or an Indian Tribal Council; 5. Acquisitions by the University Hospitals Authority. The Authority shall develop standards for the acquisition of products and services and may elect to utilize the Purchasing Division. The standards shall foster e conomy and short response time and sha ll include appropriate safeguards and record-keeping requirements to ensure appropriate competition and economical and efficient purchasing; 6. Custom harvesting by the Department of Corrections for the Department or its institutions; 7. Subject to prior approval of the State Purchasing Director, acquisitions from private prison suppliers which are subject to the contracting procedures of Section 561 of Tit le 57 of the Oklahoma Statutes; 8. Acquisitions by the Oklaho ma Municipal Power Authority; 9. Acquisitions by the Grand River Dam Au thority; 10. Acquisitions by rural water, sewer, gas or solid waste management districts created pursuant to the Rural Wa ter, Sewer, Gas and Solid Waste Management Districts Act; ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 15 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 11. Acquisitions by the Oklahoma Ordnance Works Authority, the Northeast Oklahoma Public Facilities Aut hority or the Midwestern Oklahoma Development Authority; 12. Expenditure of monies appropriat ed to the State Board of Education for Local and State Support ed Financial Support local and state-supported financial support of Public Schools public schools, except monies allocated therefrom for the Administrative and Support Functions of the State Dep artment of Education; 13. Expenditure of monies appropriated to the State Department of Rehabilitation Services for educational progr ams or educational materials for the Oklahoma School for the Blind and the Oklahoma School for the Deaf; 14. Contracts entered into by the Oklahoma Department of Career and Technology Education for the development, revision or updating of vocational curriculum materials, and cont racts entered into by the Oklahoma Department of Career and Technology Edu cation for training and supportive services that address the needs of new or expanding industries; 15. Contracts entered into by the Oklahoma Center for the Advancement of Science a nd Technology for professional services; 16. Contracts entered into by th e Oklahoma Department o f Commerce pursuant to the provisions of Section 5066.4 of thi s title; 17. Acquisitions made by the Oklahoma Historical Society from monies used to administer the White Hair Memorial; ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 16 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 18. Purchases of pharmaceuticals available thro ugh a multistate or multigovernmental contract if such pharmaceuticals are or have been on state contract within the last fiscal year, and the terms of such contract are more favorab le to the state or agency than the terms of a state contract for the same products, as determined by the State Purchasing Director. The state entity designate d by law, as specified in Section 1010.3 of Title 56 of the Oklahoma Sta tutes, shall participate in the purchase of pharmaceuticals available through such contracts; 19. Contracts for managed h ealth care services entered into by the state entity designate d by law or the Department of Human Services, as specified in paragraph 1 of subsection A of Sect ion 1010.3 of Title 56 of the Oklahoma Statutes; 20. Acquisitions by a st ate agency through a Ge neral Services Administration contract or other federal contra ct if the acquisitions are not on current statewide contract or the term s of the federal contract are more favorable to the agency than the terms of a statewide contract f or the same products; 21. Acquisitions of clothing for clients of the Department of Human Services and acquisitions of food for group homes operated by the Department of Human Servi ces; 22. Acquisitions by the Oklahoma Energy Resources Board; ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 17 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 23. Acquisitions of clothing for juveniles in the custody of the Office of Juvenile Affairs and acquisitions of food for group homes operated by the Office of Juvenile Affairs; 24. State contracts for flexible benefits plans pursuant to the Oklahoma State Employees Benefits Act, Section 1361 et seq. of this title; 25. Acquisitions by the Oklahoma Department of Securities to investigate, initiate, or pursue administrat ive, civil or criminal proceedings involving potential violations of the acts under the Department’s jurisdiction and acquisitions by the Oklahoma Department of Securities for its inve stor education progr am; 26. Acquisitions for resale in and through cant eens operated pursuant to Section 537 of Title 57 of the Oklahoma Statutes and canteens established at an institution or facility operated by the Office of Juvenile Affairs; 27. Acquisitions by the Oklah oma Boll Weevil Eradication Organization for employm ent and personnel services, and for acquiring sprayers, blowers, traps and attractants related to the eradication of boll weevils in this state or as part of a national or regional boll weevil eradication program; 28. Contracts entered into by the Oklahom a Indigent Defense System for expert services pursuant to the provisions of subsection D of Section 1355.4 of Title 2 2 of the Oklahoma Statutes; ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 18 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 29. Acquisitions by the Oklahoma Corre ctional Industries a nd the Agri-Services programs of the Department of C orrections of raw materials, component parts and other products, any equipment excluding vehicles, and any services e xcluding computer consultant services used to produce goods or serv ices for resale and for the production of agricultural products; 30. Contracts entered into by the Department of Human Services for provision of supported living services to members of the plaintiff class in Homeward Bound, Inc., et al. v. The Hissom Memorial Center, et al., Case Number 85-C-437-E, United States District Court for the Northern District of Oklahoma; 31. Contracts negotiated by the Office of Juvenile Affairs with designated Youth Services Agencies and the Oklahoma Association of Youth Services, or another Okla homa nonprofit corporation whose membership consists solely of Youth Services Agencies and of whom at least a majority of Youth Services Agencies are members, pursuant t o the provisions of Section 2 -7-306 of Title 10A of the Oklahoma Statutes and contracts entered into by the Department of Human Services pursuant to Section 1-9-110 of Title 10A of the Oklahoma Statutes with designated Youth Services Agencies; 32. Contracts for annuities for structured settlements provided for in Section 158 of Title 51 of the Oklahoma Statutes; 33. Subject to subsection E of this section, purchases made from funds received by local offices administered by the Department ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 19 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of Human Services or administered by the Office of Juvenile Affairs for fund-raising activities and donations for the benefit of clients and potential clients at the local offices where such purchases may not otherwise be paid for from appropriated funds; 34. Acquisitions by the Oklahoma Historical Society for restoration of historical s ites and museums alt hough the agency may elect to utilize the Purchasing Division for an acquisition with supplier and bid selection being the prerogative of the agency, based on the supplier’s documented qualifications and experience; and 35. Acquisitions of clothing and fo od for patients in the care of the J.D. McCarty Cent er for Children with Developmental Disabilities. C. Pursuant to the terms of a contract the State Purchasing Director enters into or awards, a state agency, common school, municipality, rural fire protection district, county offic er or any program contract, purchase, acquisition or expenditure that is not subject to the provisions of the Oklahoma Central Purchasing Act, may, unless acting pursuant to a contract with the state that specifies otherwise, make use of statewide contract s and the services of the Purchasing Division and the State Purchasing Director. Any political subdivision or rural fire protection district may designate the State Purchasing Director as its agent ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 20 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 for any acquisition from a statewide contract or otherwis e available to the state. D. The State Purchasing Director may make periodic audits of shall review and audit all the purchasing procedures of acq uisitions listed in subsection B of this section to ensure tha t the procedures are being followed. Nothing in this section shall be construed t o authorize bid splitting as prohibited by the Oklahoma Central Purchasing Act. E. With respect to the Departme nt of Human Services or the Office of Juvenile Affairs, as app licable, monies received by fundraising activities or donations from the local office , vending operations administered by employees of the agency and all other nonrestricted cash and cash -equivalent items received by employees of the agency shall be deposi ted in the agency special account established for this purpose. The deposits shall b e made at local banking institutions approved by the State Treasurer. F. With respect to the Oklahoma Tourism and Recreation Department, no exemption provided in this sec tion shall be construed for the use of leasing or contracting for state -owned restaurants in Oklahoma state parks. The Department shall not be required to purchase furniture, fixtures, equipment, and soft goods associated with decor of the state parks, lodges, golf courses, and tourism information centers from Oklahoma prisons or reformatories . ENGR. S. A. TO ENGR. H. B. NO. 1774 Page 21 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Additionally, the Department shall not be required to make purchases pursuant to a statewide contract for m aterials, supplies, and services necessary for the effici ent and economical operation of revenue-generating, Department-operated facilities, including those made to maintain or improve guest perception of quality and service; provided, that the State Purchasing Director shall review and audit all uses of the exemptions provided in this subsection biannually. SECTION 3. REPEALER 74 O.S. 2021, Sections 2213, 2221, 2239, and 2244, are hereby repealed. SECTION 4. This act shall become effective January 1, 2024. ” Passed the Senate the 27th day of April, 2023. Presiding Officer of the Senate Passed the House of Representa tives the ____ day of __________, 2023. Presiding Officer of the House of Representatives 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 5. 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 , and 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 Pur chasing 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 e xplore 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 6. 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 s ection. SECTION 7. 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 8. 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 t he 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, we bsites 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 9. 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 ($2,5 00.00) 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 10. 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