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Oklahoma House Bill HB2953

Oklahoma 2024 Regular Session

Oklahoma House Bill HB2953 Compare Versions

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2828 STATE OF OKLAHOMA
2929
3030 2nd Session of the 59th Legislature (2024)
3131
3232 HOUSE BILL 2953 By: Williams
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3838 AS INTRODUCED
3939
4040 An Act relating to central purchasing; amending 62
4141 O.S. 2021, Section 2309, which relates to the Tobacco
4242 Settlement Endowment Trust ; modifying exemptions to
4343 the Central Purchasing Act; amending 74 O.S. 2021,
4444 Section 85.12, as amended by Section 2, Chapter 339,
4545 O.S.L. 2023 (74 O.S. Supp. 202 3, Section 85.12),
4646 which relates to the Oklahoma Central Purchasing Act;
4747 removing certain exemptions ; amending 74 O.S. 2021,
4848 Section 5013.2, which relates to the Minority
4949 Business Development Program Fund ; modifying
5050 exemption to the Oklahoma Central Purchasing Act ;
5151 amending 74 O.S. 2021, Section 5066.4, which relates
5252 to authority of the Department of Com merce; removing
5353 exemption from the Oklahoma Central Purchasing Act ;
5454 and providing an effective date .
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6060 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
6161 SECTION 1. AMENDATORY 6 2 O.S. 2021, Section 2309, is
6262 amended to read as follows:
6363 Section 2309. A. The Board of Directors of the Tobacco
6464 Settlement Endowment Trust Fund shall be empowered to:
6565 1. Appoint an executive director and other staff necessary to
6666 perform the duties of the Board of Directors;
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9393 2. Make and execute contracts and other instruments necessa ry
9494 or convenient to the exercise of its powers on such terms and for
9595 such period of time as the Board of Directors shall determine; and
9696 3. Promulgate rules in accordance with the Administrative
9797 Procedures Act and not inconsistent with the Tobacco Settleme nt
9898 Endowment Trust Fund Act to implement its duties and
9999 responsibilities as provided by law.
100100 B. Funding for capital expenditures and operating expenses
101101 incurred by the University of Oklahoma Heal th Sciences Center and
102102 the Oklahoma State University College of Osteopathic Medicine, for
103103 educational programs and residency training to maintain or improve
104104 the health of Oklahomans or to enhance the provision of health care
105105 services to Oklahomans, is here by deemed to be an allowable purpose
106106 for which earnings from the trust fund may be expended pursuant to
107107 the provisions of paragraph 3 of subsection E of Section 40 of
108108 Article X of the Oklahoma Constitution. Pursuant to its authority
109109 as set forth in subsec tion G of Section 40 of Article X of the
110110 Oklahoma Constitution, the Legislature hereby authorizes the Board
111111 to expend earnings from the trust fund for such purposes, in
112112 addition to other purposes provided by law.
113113 C. The Board shall develop a multiyear str ategy by January 1,
114114 2002, and annually update it in order to guide the Board's funding
115115 for those programs set forth in Section 40 of Article X of the
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142142 Oklahoma Constitution. The strategy shall be used to maximize the
143143 outcomes of the grants awarded by the B oard of Directors.
144144 D. The Board of Directors shall develop grant programs for
145145 private, nonprofit, and public entities for the purposes set forth
146146 in Section 40 of Article X of the Oklahoma Constitution.
147147 1. The selection and awarding of grants , whether in the form of
148148 professional service contracts or any other fund ing mechanism
149149 developed by the Board of Directors, awarded pursuant to grant
150150 programs developed under this subsection, shall be exempt from the
151151 requirements of The Oklahoma Central Purchasing Act.
152152 2. The Board of Directors shall develop competitive proces ses
153153 for awarding grants under programs developed under this subsection.
154154 Such competitive processes for selection shall not be required for
155155 contracts Contracts awarded directly by the Tobacco Settlement
156156 Endowment Trust Fund for program support services, in cluding, but
157157 not limited to, professional service contracts to evaluate, audit or
158158 provide budgeting, accounting, auditing or legal services for
159159 specific programs or program grantees, contractors or participants ,
160160 shall be subject to the Central Purchasing A ct.
161161 3. The Board of Directors may promulgate rules to assist in the
162162 implementation and administration of grant programs developed under
163163 this subsection.
164164 4. The terms of any request for proposals, request for
165165 applications, invitation for bid, bid notice, or grant proposal or
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192192 any other solicitation issued by the Board of Directors to solicit
193193 or invite applications, proposals, bids or responses to obtain
194194 funding under grant programs developed under this subsectio n shall
195195 be confidential until the date and tim e at which the solicitation is
196196 to be made equally and uniformly known to all prospective applicants
197197 and the public, at which point all such documents and information
198198 shall be uniformly known to all prospective applicants and the
199199 public, at which point all such documents and information shall be
200200 subject to the Oklahoma Open Records Act and Oklahoma Open Meeting
201201 Act. Any application, proposal, bid, or any other document to
202202 obtain funding responsive to any solicit ation of the Board of
203203 Directors under grant pr ograms developed under this subsection shall
204204 be confidential until the date and time of award of the grant or
205205 contract, at which point all such documents and information shall be
206206 subject to the Oklahoma Open Re cords Act and Oklahoma Open Meeting
207207 Act. Any unsolicited application, proposal, bid, or any other
208208 document to obtain funding shall not be considered to be
209209 confidential and shall be subject to the Oklahoma Open Records Act
210210 and Oklahoma Open Meeting Act at all times.
211211 E. The Board of Directors shall en courage grantees to match
212212 grant monies awarded with mo netary commitments and in -kind matches.
213213 F. The Board of Directors shall be required to develop a
214214 performance evaluation component for the Board of Director s'
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241241 activities and those of its grantees so tha t the performance of
242242 grantees can be measured by their attainment of outcomes.
243243 G. The Board of Directors shall contract periodically for
244244 performance evaluations. Copies of the evaluations shall be filed
245245 with the Governor, the Speaker of the House of Repr esentatives, and
246246 the President Pro Tempore of the Sena te.
247247 H. The Board of Directors shall prepare an annual report
248248 detailing the Board of Directors ' activities and reporting its
249249 expenditures and the outcomes a chieved by the expenditures. A copy
250250 of the report shall be submitted to the Governor, the Speaker o f the
251251 House of Representatives, and the President Pro Tempore of the
252252 Senate.
253253 I. All records associated with the expenditure of monies
254254 received by the Board of Directors or its grantees pursuant to the
255255 Tobacco Settlement Endowment Trust Fund Act shall be s ubject to the
256256 Oklahoma Open Records Act.
257257 SECTION 2. AMENDATORY 74 O.S. 2021, Section 85.12, as
258258 amended by Section 2, Chapter 339, O.S .L. 2023 (74 O.S. Supp. 202 3,
259259 Section 85.12), is amended to read as follows:
260260 Section 85.12 A. The provisions of this section s hall not be
261261 construed to affect any law relating to fiscal or ac counting
262262 procedure except as t hey may be directly in conflict herewith; and
263263 all claims, warrants, and bonds shall be examined, inspected, and
264264 approved as now provided by law.
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291291 B. Except as otherwise provided by this section, the
292292 acquisitions specified in t his subsection shall be made i n
293293 compliance with Section 85.39 of this title and purchasing card
294294 program requirements but are not subject to other provisions of t he
295295 Oklahoma Central Purchasing Act:
296296 1. Food and other products produce d by state institutions and
297297 agencies;
298298 2. The printing or duplication of publications or forms of
299299 whatsoever kind or chara cter by state agencies if the work is
300300 performed upon their own equipment by their own employee s. Pursuant
301301 to this paragraph, the stat e agency may only use eq uipment owned or
302302 leased by the agency and may only utilize that equipment for
303303 printing services re quired by the agency in performing duties
304304 imposed upon the agen cy or functions authorized to b e performed by
305305 the agency. Any use of the equipment by the agen cy pursuant to an
306306 agreement or contract with any other entity resulting in delivery of
307307 intermediate or finished products to the entity purchasing or using
308308 the products shall be subject to the provisions of the Oklahoma
309309 Central Purchasing Act and associated rules;
310310 3. Department of Transportation and Transportation C ommission
311311 contractual services or right-of-way acquisitions, contracts awarded
312312 pursuant to bids let by the Transportation Commission for the
313313 maintenance or construction of streets, roads, highways , bridges,
314314 underpasses or any other transportation facilitie s under the control
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341341 of the Department of Transportation, equipment or material
342342 acquisitions accruing to the Department of Transportation required
343343 in federal aid contracts and acquisiti ons for public-service-type
344344 announcements initiated by the Department of Transportation, but not
345345 acquisitions for advertising, public relations or employment
346346 services;
347347 4. Utility services regul ated by a state or federal regulatory
348348 commission, municipal or dinance or an Indian Tribal Council;
349349 5. Acquisitions by the Universit y Hospitals Authority. The
350350 Authority shall develop standards for the acquisition of products
351351 and services and may elect to utilize the Purchasing Division . The
352352 standards shall foster e conomy and short response time and shall
353353 include appropriate safeguard s and record-keeping requirements to
354354 ensure appropriate competition and economical and efficient
355355 purchasing;
356356 6. Custom harvesting by the Department of Corrections for the
357357 Department or its institutions;
358358 7. 6. Subject to prior approval of the State Purchas ing
359359 Director, acquisitions from private prison suppliers which are
360360 subject to the contracting procedures of Section 561 of Tit le 57 of
361361 the Oklahoma Statutes;
362362 8. 7. Acquisitions by the Oklaho ma Municipal Power Authority;
363363 9. 8. Acquisitions by the Grand River Dam Authority;
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390390 10. 9. Acquisitions by rural water, sewer, gas or solid waste
391391 management districts created pursuant to the Rural Wa ter, Sewer, Gas
392392 and Solid Waste Management Districts Act;
393393 11. 10. Acquisitions by the Oklahoma Ordnance Works Authority,
394394 the Northeast Oklahoma Public Facilities Authority or the Midwestern
395395 Oklahoma Development Authority;
396396 12. 11. Expenditure of monies appropriat ed to the State Board
397397 of Education for local and state-supported financial support of
398398 public schools, except monies allocated therefrom for the
399399 Administrative and Support Functions of the State Department of
400400 Education;
401401 13. 12. Expenditure of monies appropriated to the State
402402 Department of Rehabilitation Services for educational progr ams or
403403 educational materials for the Oklahoma School for the Blind and the
404404 Oklahoma School for the Deaf;
405405 14. 13. Contracts entered into by the Oklahoma Department of
406406 Career and Technology Education for the development, revision or
407407 updating of vocational curri culum materials, and cont racts entered
408408 into by the Oklahoma Department of Career and Technology Education
409409 for training and supportive services that address the needs of new
410410 or expanding industries;
411411 15. Contracts entered into by the Oklahoma Center for the
412412 Advancement of Science a nd Technology for professional services;
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439439 16. Contracts entered into by the Oklahoma Department of
440440 Commerce pursuant to the provisions of Section 5066.4 of thi s title;
441441 17. Acquisitions made by the Oklahoma Historical Society from
442442 monies used to administer the White Hair Memorial;
443443 18. Purchases of pharmaceuticals available through a multistate
444444 or multigovernmental contract if such pharmaceuticals are or have
445445 been on state contract within the last fiscal year, and the terms of
446446 such contract are more favorab le to the state or agency than the
447447 terms of a state contract for the same products, as determined by
448448 the State Purchasing Director . The state entity designate d by law,
449449 as specified in Section 1010.3 of Title 56 of the Oklahoma Sta tutes,
450450 shall participate in the purchase of pharmaceuticals available
451451 through such contracts;
452452 19. Contracts for managed health care services entered into by
453453 the state entity designate d by law or the Department of Human
454454 Services, as specified in paragraph 1 of subsection A of Sect ion
455455 1010.3 of Title 56 of the Oklahoma Statutes;
456456 20. 14. Acquisitions by a st ate agency through a General
457457 Services Administration contract or other federal contra ct if the
458458 acquisitions are not on current statewide contract or the term s of
459459 the federal contract are more favorable to the agency than the terms
460460 of a statewide contract f or the same products;
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487487 21. 15. Acquisitions of clothing for clients of the Department
488488 of Human Services and acquisitions of food for group homes operated
489489 by the Department of Human Servi ces;
490490 22. 16. Acquisitions by the Oklahoma Energy Resources Board;
491491 23. 17. Acquisitions of clothing for juveniles in the custody
492492 of the Office of Juvenile Affairs and acquisitions of food for group
493493 homes operated by the Office of Juvenile Affairs;
494494 24. 18. State contracts for flexible benefits plans pursuant to
495495 the Oklahoma State Employees Benefits Act, Section 1361 et seq. of
496496 this title;
497497 25. 19. Acquisitions by the Oklahoma Department of Securities
498498 to investigate, initiate, or pursue administrat ive, civil or
499499 criminal proceedings involving potential violations of the acts
500500 under the Department 's jurisdiction and acquisitions by the Oklahoma
501501 Department of Securities for its inve stor education program;
502502 26. 20. Acquisitions for resale in and through cant eens
503503 operated pursuant to Section 537 of Title 57 of the Oklahoma
504504 Statutes and canteens established at an ins titution or facility
505505 operated by the Office of Juvenile Affairs;
506506 27. 21. Acquisitions by the Oklahoma Boll Weevil Eradication
507507 Organization for employm ent and personnel services, and for
508508 acquiring sprayers, blowers, traps and attractants related to the
509509 eradication of boll weevils in this state or as part of a national
510510 or regional boll weevil eradication program;
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537537 28. 22. Contracts entered into by the Oklah oma Indigent Defense
538538 System for expert services pursuant to the provisions of subsection
539539 D of Section 1355.4 of Title 22 of the Oklahoma Statutes;
540540 29. 23. Acquisitions by the Oklahoma Corre ctional Industries
541541 and the Agri-Services programs of the Departmen t of Corrections of
542542 raw materials, component parts and other products, any equipment
543543 excluding vehicles, and any se rvices excluding computer consultant
544544 services used to produce goods or serv ices for resale and for the
545545 production of agricultural products;
546546 30. 24. Contracts entered into by the Department of Human
547547 Services for provision of supported living services to member s of
548548 the plaintiff class in Homeward Bound, Inc., et al. v. The Hissom
549549 Memorial Center, et al., Case Number 85-C-437-E, United States
550550 District Court for the Northern District of Oklahoma;
551551 31. 25. Contracts negotiated by the Office of Juvenile Affairs
552552 with designated Youth Services Agencies and the Oklahoma Association
553553 of Youth Services, or another Oklahoma nonprofit corporation whose
554554 membership consists solely of Youth Services Agencies and of whom at
555555 least a majority of Youth Services Agencies are members, pu rsuant to
556556 the provisions of Section 2 -7-306 of Title 10A of the Oklahoma
557557 Statutes and contracts entered into by the Department of Hum an
558558 Services pursuant to Section 1-9-110 of Title 10A of the Oklahoma
559559 Statutes with designated Youth Services Agencies;
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586586 32. 26. Contracts for annuities for structured settlements
587587 provided for in Section 158 of Title 51 of the Oklahoma Statutes;
588588 33. 27. Subject to subsection E of this section, purchases made
589589 from funds received by local offices administered by the Department
590590 of Human Services or administered by the Office of Juvenile Affairs
591591 for fund-raising activities and donations for the benefit of clien ts
592592 and potential clients at the local offices where such purchases may
593593 not otherwise be paid for from appropriated funds;
594594 34. 28. Acquisitions by the Oklahoma Historical Society for
595595 restoration of historical s ites and museums although the agency may
596596 elect to utilize the Purchasing Division for an acquisition with
597597 supplier and bid selection being the prerogative of the agency,
598598 based on the supplier's documented qualifications and experience;
599599 and
600600 35. 29. Acquisitions of clothing and food for patients in the
601601 care of the J.D. McCarty Cent er for Children with Developmental
602602 Disabilities.
603603 C. Pursuant to the terms of a contract the State Purchasing
604604 Director enters into or awards, a state agency, common school,
605605 municipality, rural fire protection district, county officer or any
606606 program contract, purchase, acquisition or expenditure that is not
607607 subject to the provisions of the Oklahoma Central Purchas ing Act,
608608 may, unless acting pursuant to a contract with the state that
609609 specifies otherwise, make use of statewide con tracts and the
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636636 services of the Purchasing D ivision and the State Purchasing
637637 Director. Any political subdivision or rural fire protection
638638 district may designate the State Purchasing Director as its agent
639639 for any acquisition from a statewide contract or oth erwise available
640640 to the state.
641641 D. The State Purchasing Director shall review and audit all the
642642 purchasing procedures of acq uisitions listed in subsection B of this
643643 section to ensure that the procedures are being followed . Nothing
644644 in this section shall be construed to authorize bid splitting as
645645 prohibited by the Oklahoma Central Purchasing Act.
646646 E. With respect to the Departme nt of Human Services or the
647647 Office of Juvenile Affairs, as applicable, monies received by
648648 fundraising activities or donations from t he local office, vending
649649 operations administered by employees of the agency and all other
650650 nonrestricted cash and cash-equivalent items received by employees
651651 of the agency shall be dep osited in the agency special account
652652 established for this purpose. The deposits shall be made at local
653653 banking institutions approved by the State Treasurer.
654654 F. With respect to the Oklahoma Tourism and Recreation
655655 Department, no exemption provided in this section shall be construed
656656 for the use of leasing or contracting for stat e-owned restaurants in
657657 Oklahoma state parks. The Department shall not be required to
658658 purchase furniture, fixtures, equipment, and soft goods associated
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685685 with decor of the state parks, lodges, golf courses, and tourism
686686 information centers from Oklahoma prisons or reformatories .
687687 Additionally, the Department shall not be required to make
688688 purchases pursuant to a statewide contract for m aterials, supplies,
689689 and services necessary for the e fficient and economical operation of
690690 revenue-generating, Department-operated facilities, including those
691691 made to maintain or improve guest perception of quality and service;
692692 provided, that the State Purchasing Dire ctor shall review and audit
693693 all uses of the exemptions provided in this subsection biannually.
694694 SECTION 3. AMENDATORY 74 O.S. 2021, Sec tion 5013.2, is
695695 amended to read as follows:
696696 Section 5013.2 A. The Oklahoma Department of Comme rce shall
697697 expend so much as appropriated to the Minority Business Development
698698 Program Fund as may be necessary to acc omplish contractual
699699 responsibilities for jo b creation and enhancement and business
700700 creation and expansion of Oklahoma minority -owned businesses. The
701701 Department may contract with organizations which support minority
702702 businesses for these purposes only after :
703703 1. An applicant organization has submitt ed an approved business
704704 plan;
705705 2. An applicant organization has demonstrated through education
706706 and experience capabilities of offering management tools and
707707 technical assistance to minority -owned businesses;
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734734 3. An applicant organization has demonstrated th at it can
735735 provide financial capacity and responsibility to manage a program to
736736 aid minority-owned businesses in the manner set out herein;
737737 4. A panel of peer reviewers has received applications and
738738 recommended such applications for contracting;
739739 5. The Department has given due consideration to those
740740 applicants that demonstrate an ability to attract matching funding
741741 from other governmental or private or charitable organizations;
742742 6. The Department has given due con sideration to those
743743 applicants that demonst rate an ability to aid minority-owned
744744 businesses located in communities with a population of les s than ten
745745 thousand (10,000); and
746746 7. The Department has developed, adopted and published
747747 additional criteria, upon r eceipt of advice and comment from
748748 qualified peer reviewers.
749749 B. Any contract entered into pursuant to this section shall
750750 require quarterly reports of activities and expenditures upon forms
751751 prescribed by the Department. Said quarterly reports shall be
752752 reviewed by Oklahoma Futures. The Department o r Oklahoma Futures
753753 may disallow expenditures and withhold funds accordingly, if reports
754754 reflect failure to comply with approved applications. All
755755 contractors shall submit annual audits as required by the Departme nt
756756 of Commerce which may be paid from alloc ated, appropriated funds.
757757 The Department may utilize an amount not to exceed twenty percent
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784784 (20%) of appropriated funds for administration of the minority -owned
785785 business program.
786786 C. Contracts entered into by the Oklahoma Department of
787787 Commerce, with approved applicant organizations, for the purpose of
788788 implementing the Minority Business Development P rogram shall be
789789 exempt from the requirements of the Oklahoma Central Purchasing Act.
790790 SECTION 4. AMENDATORY 74 O.S. 2021, Section 5066. 4, is
791791 amended to read as follows:
792792 Section 5066.4 The Oklahoma Department of Commerce shall have
793793 the authority to:
794794 1. Enter into contracts with public and pr ivate agencies,
795795 institutions, organizations and individ uals for the purpose of
796796 providing assistance to and services for Oklahoma manufacturing and
797797 marketing firms as required by this act . Such contracts shall be
798798 exempt from the provisions of Section 85.1 et seq. of Title 74 of
799799 the Oklahoma Statutes ;
800800 2. Solicit the support and contributions of public and private
801801 agencies, organizations, institutions and individuals;
802802 3. Receive and administer fu nds for the purpose of operating
803803 the product development progr am;
804804 4. Advertise and promote the product development p rogram; and
805805 5. Promulgate rules and regul ations to implement the provisions
806806 of this act.
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808808 Req. No. 8454 Page 17 1
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833833 SECTION 5. This act shall beco me effective November 1, 2024.
834834
835835 59-2-8454 LRB 11/08/23