Req. No. 8454 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
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
HOUSE BILL 2953 By: Williams
AS INTRODUCED
An Act relating to central purchasing; amending 62
O.S. 2021, Section 2309, which relates to the Tobacco
Settlement Endowment Trust ; modifying exemptions to
the Central Purchasing Act; amending 74 O.S. 2021,
Section 85.12, as amended by Section 2, Chapter 339,
O.S.L. 2023 (74 O.S. Supp. 202 3, Section 85.12),
which relates to the Oklahoma Central Purchasing Act;
removing certain exemptions ; amending 74 O.S. 2021,
Section 5013.2, which relates to the Minority
Business Development Program Fund ; modifying
exemption to the Oklahoma Central Purchasing Act ;
amending 74 O.S. 2021, Section 5066.4, which relates
to authority of the Department of Com merce; removing
exemption 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 6 2 O.S. 2021, Section 2309, is
amended to read as follows:
Section 2309. A. The Board of Directors of the Tobacco
Settlement Endowment Trust Fund shall be empowered to:
1. Appoint an executive director and other staff necessary to
perform the duties of the Board of Directors;
Req. No. 8454 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. Make and execute contracts and other instruments necessa ry
or convenient to the exercise of its powers on such terms and for
such period of time as the Board of Directors shall determine; and
3. Promulgate rules in accordance with the Administrative
Procedures Act and not inconsistent with the Tobacco Settleme nt
Endowment Trust Fund Act to implement its duties and
responsibilities as provided by law.
B. Funding for capital expenditures and operating expenses
incurred by the University of Oklahoma Heal th Sciences Center and
the Oklahoma State University College of Osteopathic Medicine, for
educational programs and residency training to maintain or improve
the health of Oklahomans or to enhance the provision of health care
services to Oklahomans, is here by deemed to be an allowable purpose
for which earnings from the trust fund may be expended pursuant to
the provisions of paragraph 3 of subsection E of Section 40 of
Article X of the Oklahoma Constitution. Pursuant to its authority
as set forth in subsec tion G of Section 40 of Article X of the
Oklahoma Constitution, the Legislature hereby authorizes the Board
to expend earnings from the trust fund for such purposes, in
addition to other purposes provided by law.
C. The Board shall develop a multiyear str ategy by January 1,
2002, and annually update it in order to guide the Board's funding
for those programs set forth in Section 40 of Article X of the
Req. No. 8454 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
Oklahoma Constitution. The strategy shall be used to maximize the
outcomes of the grants awarded by the B oard of Directors.
D. The Board of Directors shall develop grant programs for
private, nonprofit, and public entities for the purposes set forth
in Section 40 of Article X of the Oklahoma Constitution.
1. The selection and awarding of grants , whether in the form of
professional service contracts or any other fund ing mechanism
developed by the Board of Directors, awarded pursuant to grant
programs developed under this subsection, shall be exempt from the
requirements of The Oklahoma Central Purchasing Act.
2. The Board of Directors shall develop competitive proces ses
for awarding grants under programs developed under this subsection.
Such competitive processes for selection shall not be required for
contracts Contracts awarded directly by the Tobacco Settlement
Endowment Trust Fund for program support services, in cluding, but
not limited to, professional service contracts to evaluate, audit or
provide budgeting, accounting, auditing or legal services for
specific programs or program grantees, contractors or participants ,
shall be subject to the Central Purchasing A ct.
3. The Board of Directors may promulgate rules to assist in the
implementation and administration of grant programs developed under
this subsection.
4. The terms of any request for proposals, request for
applications, invitation for bid, bid notice, or grant proposal or
Req. No. 8454 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
any other solicitation issued by the Board of Directors to solicit
or invite applications, proposals, bids or responses to obtain
funding under grant programs developed under this subsectio n shall
be confidential until the date and tim e at which the solicitation is
to be made equally and uniformly known to all prospective applicants
and the public, at which point all such documents and information
shall be uniformly known to all prospective applicants and the
public, at which point all such documents and information shall be
subject to the Oklahoma Open Records Act and Oklahoma Open Meeting
Act. Any application, proposal, bid, or any other document to
obtain funding responsive to any solicit ation of the Board of
Directors under grant pr ograms developed under this subsection shall
be confidential until the date and time of award of the grant or
contract, at which point all such documents and information shall be
subject to the Oklahoma Open Re cords Act and Oklahoma Open Meeting
Act. Any unsolicited application, proposal, bid, or any other
document to obtain funding shall not be considered to be
confidential and shall be subject to the Oklahoma Open Records Act
and Oklahoma Open Meeting Act at all times.
E. The Board of Directors shall en courage grantees to match
grant monies awarded with mo netary commitments and in -kind matches.
F. The Board of Directors shall be required to develop a
performance evaluation component for the Board of Director s'
Req. No. 8454 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
activities and those of its grantees so tha t the performance of
grantees can be measured by their attainment of outcomes.
G. The Board of Directors shall contract periodically for
performance evaluations. Copies of the evaluations shall be filed
with the Governor, the Speaker of the House of Repr esentatives, and
the President Pro Tempore of the Sena te.
H. The Board of Directors shall prepare an annual report
detailing the Board of Directors ' activities and reporting its
expenditures and the outcomes a chieved by the expenditures. A copy
of the report shall be submitted to the Governor, the Speaker o f the
House of Representatives, and the President Pro Tempore of the
Senate.
I. All records associated with the expenditure of monies
received by the Board of Directors or its grantees pursuant to the
Tobacco Settlement Endowment Trust Fund Act shall be s ubject to the
Oklahoma Open Records Act.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 85.12, as
amended by Section 2, Chapter 339, O.S .L. 2023 (74 O.S. Supp. 202 3,
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 t hey may be directly in conflict herewith; and
all claims, warrants, and bonds shall be examined, inspected, and
approved as now provided by law.
Req. No. 8454 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
B. Except as otherwise provided by this section, the
acquisitions specified in t his subsection shall be made i n
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 equipment 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 the equipment by the agen cy pursuant to an
agreement or contract with any other entity resulting in delivery of
intermediate or finished products to the entity purchasing or using
the products shall be subject to the provisions of 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
Req. No. 8454 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
of the Department of Transportation, equipment or material
acquisitions accruing to the Department of Transportation required
in federal aid contracts and acquisiti ons for public-service-type
announcements initiated by the Department of Transportation, but not
acquisitions 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 Universit y 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 shall
include appropriate safeguard s 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. 6. Subject to prior approval of the State Purchas ing
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. 7. Acquisitions by the Oklaho ma Municipal Power Authority;
9. 8. Acquisitions by the Grand River Dam Authority;
Req. No. 8454 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
10. 9. 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;
11. 10. Acquisitions by the Oklahoma Ordnance Works Authority,
the Northeast Oklahoma Public Facilities Authority or the Midwestern
Oklahoma Development Authority;
12. 11. Expenditure of monies appropriat ed to the State Board
of Education for local and state-supported financial support of
public schools, except monies allocated therefrom for the
Administrative and Support Functions of the State Department of
Education;
13. 12. 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. 13. Contracts entered into by the Oklahoma Department of
Career and Technology Education for the development, revision or
updating of vocational curri culum materials, and cont racts entered
into by the Oklahoma Department of Career and Technology Education
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;
Req. No. 8454 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
16. Contracts entered into by the Oklahoma Department of
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;
18. Purchases of pharmaceuticals available through 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 health 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. 14. Acquisitions by a st ate agency through a General
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;
Req. No. 8454 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
21. 15. 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. 16. Acquisitions by the Oklahoma Energy Resources Board;
23. 17. 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. 18. State contracts for flexible benefits plans pursuant to
the Oklahoma State Employees Benefits Act, Section 1361 et seq. of
this title;
25. 19. 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 program;
26. 20. 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 ins titution or facility
operated by the Office of Juvenile Affairs;
27. 21. Acquisitions by the Oklahoma 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;
Req. No. 8454 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
28. 22. Contracts entered into by the Oklah oma Indigent Defense
System for expert services pursuant to the provisions of subsection
D of Section 1355.4 of Title 22 of the Oklahoma Statutes;
29. 23. Acquisitions by the Oklahoma Corre ctional Industries
and the Agri-Services programs of the Departmen t of Corrections of
raw materials, component parts and other products, any equipment
excluding vehicles, and any se rvices excluding computer consultant
services used to produce goods or serv ices for resale and for the
production of agricultural products;
30. 24. Contracts entered into by the Department of Human
Services for provision of supported living services to member s 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. 25. Contracts negotiated by the Office of Juvenile Affairs
with designated Youth Services Agencies and the Oklahoma Association
of Youth Services, or another Oklahoma nonprofit corporation whose
membership consists solely of Youth Services Agencies and of whom at
least a majority of Youth Services Agencies are members, pu rsuant to
the provisions of Section 2 -7-306 of Title 10A of the Oklahoma
Statutes and contracts entered into by the Department of Hum an
Services pursuant to Section 1-9-110 of Title 10A of the Oklahoma
Statutes with designated Youth Services Agencies;
Req. No. 8454 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
32. 26. Contracts for annuities for structured settlements
provided for in Section 158 of Title 51 of the Oklahoma Statutes;
33. 27. Subject to subsection E of this section, purchases made
from funds received by local offices administered by the Department
of Human Services or administered by the Office of Juvenile Affairs
for fund-raising activities and donations for the benefit of clien ts
and potential clients at the local offices where such purchases may
not otherwise be paid for from appropriated funds;
34. 28. Acquisitions by the Oklahoma Historical Society for
restoration of historical s ites and museums although 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. 29. Acquisitions of clothing and food 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 officer or any
program contract, purchase, acquisition or expenditure that is not
subject to the provisions of the Oklahoma Central Purchas ing Act,
may, unless acting pursuant to a contract with the state that
specifies otherwise, make use of statewide con tracts and the
Req. No. 8454 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
services of the Purchasing D ivision and the State Purchasing
Director. Any political subdivision or rural fire protection
district may designate the State Purchasing Director as its agent
for any acquisition from a statewide contract or oth erwise available
to the state.
D. The State Purchasing Director shall review and audit all the
purchasing procedures of acq uisitions listed in subsection B of this
section to ensure that the procedures are being followed . Nothing
in this section shall be construed to 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 applicable, monies received by
fundraising activities or donations from t he 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 dep osited in the agency special account
established for this purpose. The deposits shall be 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 section shall be construed
for the use of leasing or contracting for stat e-owned restaurants in
Oklahoma state parks. The Department shall not be required to
purchase furniture, fixtures, equipment, and soft goods associated
Req. No. 8454 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
with decor of the state parks, lodges, golf courses, and tourism
information centers from Oklahoma prisons or reformatories .
Additionally, the Department shall not be required to make
purchases pursuant to a statewide contract for m aterials, supplies,
and services necessary for the e fficient 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 Dire ctor shall review and audit
all uses of the exemptions provided in this subsection biannually.
SECTION 3. AMENDATORY 74 O.S. 2021, Sec tion 5013.2, is
amended to read as follows:
Section 5013.2 A. The Oklahoma Department of Comme rce shall
expend so much as appropriated to the Minority Business Development
Program Fund as may be necessary to acc omplish contractual
responsibilities for jo b creation and enhancement and business
creation and expansion of Oklahoma minority -owned businesses. The
Department may contract with organizations which support minority
businesses for these purposes only after :
1. An applicant organization has submitt ed an approved business
plan;
2. An applicant organization has demonstrated through education
and experience capabilities of offering management tools and
technical assistance to minority -owned businesses;
Req. No. 8454 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
3. An applicant organization has demonstrated th at it can
provide financial capacity and responsibility to manage a program to
aid minority-owned businesses in the manner set out herein;
4. A panel of peer reviewers has received applications and
recommended such applications for contracting;
5. The Department has given due consideration to those
applicants that demonstrate an ability to attract matching funding
from other governmental or private or charitable organizations;
6. The Department has given due con sideration to those
applicants that demonst rate an ability to aid minority-owned
businesses located in communities with a population of les s than ten
thousand (10,000); and
7. The Department has developed, adopted and published
additional criteria, upon r eceipt of advice and comment from
qualified peer reviewers.
B. Any contract entered into pursuant to this section shall
require quarterly reports of activities and expenditures upon forms
prescribed by the Department. Said quarterly reports shall be
reviewed by Oklahoma Futures. The Department o r Oklahoma Futures
may disallow expenditures and withhold funds accordingly, if reports
reflect failure to comply with approved applications. All
contractors shall submit annual audits as required by the Departme nt
of Commerce which may be paid from alloc ated, appropriated funds.
The Department may utilize an amount not to exceed twenty percent
Req. No. 8454 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
(20%) of appropriated funds for administration of the minority -owned
business program.
C. Contracts entered into by the Oklahoma Department of
Commerce, with approved applicant organizations, for the purpose of
implementing the Minority Business Development P rogram shall be
exempt from the requirements of the Oklahoma Central Purchasing Act.
SECTION 4. AMENDATORY 74 O.S. 2021, Section 5066. 4, is
amended to read as follows:
Section 5066.4 The Oklahoma Department of Commerce shall have
the authority to:
1. Enter into contracts with public and pr ivate agencies,
institutions, organizations and individ uals for the purpose of
providing assistance to and services for Oklahoma manufacturing and
marketing firms as required by this act . Such contracts shall be
exempt from the provisions of Section 85.1 et seq. of Title 74 of
the Oklahoma Statutes ;
2. Solicit the support and contributions of public and private
agencies, organizations, institutions and individuals;
3. Receive and administer fu nds for the purpose of operating
the product development progr am;
4. Advertise and promote the product development p rogram; and
5. Promulgate rules and regul ations to implement the provisions
of this act.
Req. No. 8454 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
SECTION 5. This act shall beco me effective November 1, 2024.
59-2-8454 LRB 11/08/23