Oklahoma 2024 Regular Session

Oklahoma House Bill HB3623 Compare Versions

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1		-	An Act
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	30	+	April 11, 2024
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3	34		BILL NO. 3623 By: Harris of the House
4	35
5	36		and
6	37
7	38		Weaver of the Senate
8		-
9	39
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13	43		An Act relating to state government; amending 74 O.S.
14	44		2021, Section 85.5, which relates to the powers and
15	45		duties of the State Pu rchasing Director; requiring
16	46		submission of certain affidavit; providing for
17	47		penalties; and providing an effective date.
18	48
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22		-	SUBJECT: State government
23	52
24	53		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
25		-
26	54		SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.5, i s
27	55		amended to read as follows:
28		-
29	56		Section 85.5 A. Except as otherwise provided in this section,
30	57		the State Purchasing Director, under the supervision of the Director
31	58		of the Office of Management and Enterprise Services, shall have sole
32	59		and exclusive authority and responsibility for all acquisitions by
33	60		state agencies. In order to carry out the powers and duties of the
34	61		Chief Information Officer and the Information Services Division, the
35	62		Chief Information Officer shall have sole and exclusive authority
36	63		and responsibility for all acquisitions of information and
37	64		telecommunications technology, equipment, software, products and
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38	92		related peripherals and services by state agencies. Public
39	93		construction contracts are awarded pursuant to Title 61 of the
40	94		Oklahoma Statutes and are not subject to the Oklahoma Central
41	95		Purchasing Act.
42		-
43	96		B. Every state agency shall determine its own quantitative
44	97		needs for acquisitions and the general class or nature of the
45	98		acquisitions. The State Purchasing Director, after consultation
46		-	with the requisitioning state agency, shall have authority to ~~ENR. H. B. NO. 3623 Page 2~~
	99	+	with the requisitioning state agency, shall have authority to
47	100		determine the particular brand, model or other specific
48	101		classification of each acquisition and to draft or invoke pursuant
49	102		to the Oklahoma Central Purchasing Act specifications establishing
50	103		the requirements for all necessary contracts or purchase orders.
51		-
52	104		C. The Director of the Office of Management and Enterprise
53	105		Services shall have authority and responsibility to promulgate rules
54	106		in connection with provisions of the Oklahoma Central Purchasing Act
55	107		for:
56		-
57	108		1. The time, manner, authentication and form of making
58	109		requisitions for acquisitions;
59		-
60	110		2. Inspection, analysis and testing of acquisitions or samples
61	111		bidders submit prior to contract award;
62		-
63	112		3. The form and manner of submission for bids or proposals a
64	113		bidder submits and the manner of accepting and opening bids or
65	114		proposals;
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66	141
67	142		4. The conditions under which the Office of Manag ement and
68	143		Enterprise Services shall require written contracts for
69	144		acquisitions, the conditions under which acquisitions may be made on
70	145		an open account basis, and the conditions and manner of negotiating
71	146		such contracts;
72		-
73	147		5. Obtaining acquisitions produced by state institutions;
74		-
75	148		6. Conditions under which any of the rules herein authorized
76	149		may be waived;
77		-
78	150		7. The amounts of and deposits on any bond or other surety
79	151		required to be submitted with a bid or contract for the furnishing
80	152		of acquisitions and the condit ions under which such bond or other
81	153		surety shall be required;
82		-
83	154		8. The manner and conditions of delivery, which shall include
84	155		the designation of the common carrier of property to be used to
85	156		transport acquisitions whenever a common carrier is used, and the
86	157		acceptance, or rejection, including check of quantities, of any
87	158		acquisitions;
88		-
89	159		9. The form of any estimate, order or other information
90	160		required in connection with an acquisition;
91		-	ENR. H. B. NO. 3623 Page 3
92	161		10. State agency acquisitions not exceeding the acquisition
93	162		threshold amount requiring competitive bid to ensure
94	163		competitiveness, fairness, compliance with the Oklahoma Central
95	164		Purchasing Act and Section 3001 et se q. of this title, which relates
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96	192		to the State Use Committee. The rules shall include separate
97	193		provisions based on acquisition amounts as follows:
98		-
99	194		a. state agencies shall make acquisitions not exceeding
100	195		Twenty-five Thousand Dollars ($25,000.00), provided
101	196		the acquisition process is fair and reasonable and is
102	197		conducted pursuant to rules authorized pursuant to
103	198		this section, and
104		-
105	199		b. state agencies with certified procurement officers and
106	200		internal purchasing procedures found compliant by the
107	201		State Purchasing Direct or may make acquisitions in
108	202		excess of the fair and reasonable acquisition
109	203		threshold amount provided for in this section and not
110	204		exceeding Two Hundred Fifty Thousand Dollars
111	205		($250,000.00), pursuant to rules authorized by this
112	206		section;
113		-
114	207		11. Training by the S tate Purchasing Director of state agency
115	208		procurement officers;
116		-
117	209		12. Review and audit by the State Purchasing Director o f state
118	210		agency acquisitions;
119		-
120	211		13. The conditions for increasing acquisition limits for state
121	212		agencies which have had a prior reduction in acquisition limit by
122	213		the Director of the Office of Management and Enterprise Services;
	214	+	14. Use of a state purchase card to make acquisitions;
123	215
124		-	14. Use of a state purchase card to make acquisitions;
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126	242		15. Any other matter or practice which relates to the
127	243		responsibilities of the State Purchasing Director;
128		-
129	244		16. Conditions for determination and authorization of
130	245		acquisition threshold amounts of state agencies;
131		-
132	246		17. The form and man ner of verification by suppliers that the
133	247		supplier is eligible to do business in the State of Oklahoma and has
134	248		obtained all necessary per mits and licenses, pursuant to applicable
135	249		provisions of law; and
136		-	ENR. H. B. NO. 3623 Page 4
137	250		18. Payment procedure rules for state agencies to adhere to
138	251		regarding statewide contracts.
139		-
140	252		D. The State Purchasing Director shall provide training for
141	253		state agency procurement officials, an d other procurement staff, and
142	254		is authorized to require retraining of such procurement personnel
143	255		found not to be in com pliance with provisions of the Oklahoma
144	256		Central Purchasing Act or associated rules. The training may
145	257		include any matters related to stat e procurement practices. State
146	258		agency purchasing officials that demonstrate proficiency shall be
147	259		certified as "certified procurement officers" by the State
148	260		Purchasing Director and shall be authorized to make acquisitions
149	261		pursuant to provisions of the Okla homa Central Purchasing Act and
150	262		associated rules. The State Purchasing Director may assess a fee to
151	263		state agencies for the training that does not exceed each state
152	264		agency's pro rata share of the costs the State Purchasing Director
153	265		incurs to provide the tr aining.
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155	293		E. The State Purchasing Director shall review state agency
156	294		acquisitions for the purposes of:
157		-
158	295		1. Ensuring state agency compliance with provisions of the
159	296		Oklahoma Central Purchasing Act;
160		-
161	297		2. Ensuring state agency compliance with rules promulgated b y
162	298		the Office of Management and Enterprise Services pursuant to the
163	299		Oklahoma Central Purchasing Act;
164		-
165	300		3. Ensuring state agency compliance with provisions of Section
166	301		3001 et seq. of this title pertaining to the State Use Committee;
167		-
168	302		4. Reporting any acquisit ion by any state agency found not to
169	303		be in compliance with those sections or rules to the Director of the
170	304		Office of Management and Enterprise Services;
171		-
172	305		5. A determination by the State Purchasing Director to reduce a
173	306		state agency's acquisition authority am ount when the state agency is
174	307		found not to be in compliance with the Oklahoma Central Purchasing
175	308		Act or associated rule s or requirements of the State Purchasing
176	309		Director pursuant to this section; and
177		-
178	310		6. A determination by the State Purchasing Director to increase
179	311		a state agency's acquisition authority amount after the agency cures
180	312		deficiencies in connection with a prior reduction in the authority
181		-	amount by the State Purchasing Dire ctor. ENR. H. B. NO. 3623 Page 5
182		-
	313	+	amount by the State Purchasing Director.
183	314		F. Based on written findings and when recommended by the State
184	315		Purchasing Director, the Director of the Office of Management and
185	316		Enterprise Services may:
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186	343
187	344		1. Transmit written findings by t he State Purchasing Director
188	345		to the State Auditor and Inspector for further investigation,
189	346		indicating purchasing procedures that do not c onform to the Oklahoma
190	347		Central Purchasing Act or associated rules; or
191		-
192	348		2. Transmit to the Attorney General or the State Auditor and
193	349		Inspector for further investigation a report made by the State
194	350		Purchasing Director that the Director of the Office of Manage ment
195	351		and Enterprise Services reasonably believes indicates that an action
196	352		that constitutes a criminal violation pursuan t to the Oklahoma
197	353		Central Purchasing Act or other laws has been taken by any state
198	354		agency, state agency official, bidder or supplier.
199		-
200	355		G. 1. Pursuant to the requirements of the Oklahoma Central
201	356		Purchasing Act, the State Purchasing Director shall have authority
202	357		to enter into any statewide, multistate or multigovernmental
203	358		contract. The state entity designated by law, as specified in
204	359		Section 1010.3 of Title 56 of the Oklahoma Statutes, shall
205	360		participate in the purchase of pharmaceuticals available through
206	361		such multistate or multigovernmental contracts entered into by the
207	362		State Purchasing Director.
208		-
209	363		2. Whenever it appears advantageous to the s tate or to any
210	364		state agency to purchase or otherwise acquire any acquisition which
211	365		may be offered for sale by the United States government or any
212	366		agency thereof, the State Purchasing Director may execute a contract
213	367		for the acquisition with the federal gove rnment or federal agency
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214	395		and may also utilize contracts awarded by other governmental
215	396		agencies including, but not limit ed to, agencies of the United
216	397		States of America.
217		-
218	398		3. The State Purchasing Director may designate, for use by
219	399		state agencies, contracts de scribed in this subsection and contracts
220	400		awarded on behalf of one or more state agencies.
221		-
222	401		4. Prior to exercising the authority to cancel a contract, the
223	402		State Purchasing Director may authorize renegotiation of an existing
224	403		contract with an incumbent suppli er for the purposes of obtaining
225	404		more favorable terms for the state.
226		-	ENR. H. B. NO. 3623 Page 6
227	405		5. The State Purchasing Director shall have the a uthority to
228	406		designate certain contracts for state agencies as statewide
229	407		contracts and mandatory statewide contracts. In order to carry o ut
230	408		the powers and duties of the Chief Information Officer and
231	409		Information Services Division, the Chief Information Officer shall
232	410		have the authority to designate certain information technology and
233	411		telecommunication contracts as statewide contracts and manda tory
234	412		statewide contracts and may negotiate consolidation contracts,
235	413		enterprise agreements and high technology system co ntracts in lieu
236	414		of or in conjunction with competitive bidding procedures to reduce
237	415		acquisition cost.
238		-
239	416		6. The State Purchasing Director ma y publish such
240	417		specifications relating to materials, supplies, equipment and
241	418		services to be acquired for the state as may best promote
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242	446		competition and apprise potential suppliers of the type of product
243	447		desired.
244		-
245	448		H. 1. The State Purchasing Director may dev elop and test new
246	449		contracting policies, procedures and innovations that hold potential
247	450		for making state procurement mor e effective and efficient and
248	451		identify, and make recommendations to the Legislature of, any
249	452		appropriate changes in law. Such development and testing, proof of
250	453		concept, pilot project or other similar test shall not be considered
251	454		an acquisition subject to the Oklahoma Central Purchasing Act.
252		-
253	455		2. The State Purchasing Director is authorized to explore and
254	456		investigate cost savings in energy, re source usage and maintenance
255	457		contracts and to identify and negotiate contract solutions
256	458		including, but not limited to, pilot projects to achieve cost
257	459		savings for this state.
258		-
259	460		I. The State Purchasing Director shall endeavor to satisfy
260	461		state agencies in term s of cost, quality and timeliness of the
261	462		delivery of acquisitions by using bidders who have a record of
262	463		successful past performance, promoting competition, minimizing
263	464		administrative operating costs and conducting business with
264	465		integrity, fairness and openn ess.
265		-
266	466		J. The State Purchasing Director shall undertake the following:
267		-
268	467		1. The use of electronic commerce pursuant to th e Oklahoma
269	468		Online Bidding Act for solicitation, notification and other
270	469		purchasing processes;
271		-	ENR. H. B. NO. 3623 Page 7
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272	497		2. Monitoring rules promulgated pursuant to the Oklahoma
273	498		Central Purchasing Act to ensure that the rules satisfy the
274	499		interests of the state, are clear and succinct and encourage
275	500		efficiency in purchasing processes;
276		-
277	501		3. A program to identify suppliers' performance records;
278		-
279	502		4. Development of criteria for the use of sealed bid
280	503		contracting procedures, negotiated contracting procedures, selection
281	504		of types of contracts, postaward administration of purchase orders
282	505		and contracts, addendums, termination of contracts and contract
283	506		pricing;
284		-
285	507		5. Continual improv ement in the quality of the performance of
286	508		the Purchasing Division through training programs, management
287	509		seminars, development of benchmarks and key management indicators,
288	510		and development of standard provisions, clauses and forms;
289		-
290	511		6. The State Purchasing Director shall prescribe standardized
291	512		contract forms and all other forms or certifications requisite or
292	513		deemed necessary by the State Purchasing Director to effectuate the
293	514		provisions of the Oklahoma Central Purchasing Act and associated
294	515		rules;
295		-
296	516		7. Development of programs to improve customer relations
297	517		through training, improved communications and appointment of
298	518		technical representatives;
299	519
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300	546		8. Provide for public two -way communication between procurement
301	547		officers and potential bidders who have questions regardi ng a
302	548		request for proposal or invitation to bid; and
303		-
304	549		9. Determine whether and to what extent information included in
305	550		a bid or similar offer is confidential and reject all requests to
306	551		disclose the information so designated.
307		-
308	552		K. The State Purchasing Director may utilize and authorize
309	553		state agencies to utilize reverse auctions to obtain acquisitions.
310		-
311	554		L. Prior to the award of a contract to a supplier, the State
312	555		Purchasing Director shall verify, pursuant to applicable provisions
313	556		of law, that the supplier is eli gible to do business in this state
314	557		by confirming registration with the Secretary of State and franchise
315	558		tax payment status pursuant to Sections 1203 and 1204 of Title 68 of
316		-	the Oklahoma Statutes. The provisions of this subsection shall be ~~ENR. H. B. NO. 3623 Page 8~~
	559	+	the Oklahoma Statutes. The provisions of this subsection shall be
317	560		applicable only if the contract amount is Two Hundred Fifty Thousand
318	561		Dollars ($250,000.00) or greater.
319		-
320	562		M. On an annual basis, the State Purchasing Director shall
321	563		transmit to the Governor, Speaker of the House of Representatives
322	564		and President Pro Tempore of the Senate a r eport documenting the
323	565		savings realized by each agency through the application of best
324	566		spend practices including the col lection and tracking of spend data,
325	567		strategic sourcing programs and implementation of managed and
326	568		mandatory statewide contracts and inclu de in the report information
327	569		regarding emergency acquisitions.
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328	596
329	597		N. The acquisition threshold amount applicable to an
330	598		acquisition made pursuant to this act or associated rules shall not
331	599		apply to state agency purchases; provided, the State Purchasing
332	600		Director determines the agency has subject matter experts on staff
333	601		having the specialized expertise to purchase goods or servi ces, the
334	602		agency possesses the necessary legal and procurement staff to
335	603		procure and monitor the contracts and provided the Director of the
336	604		Office of Management and Enterprise Services shall certify that the
337	605		proposed purchase does not conflict with consolidated statewide
338	606		spend initiatives.
339		-
340	607		1. Nothing in this subsection shall give an agency authority to
341	608		issue statewide, multistate or multigov ernmental contracts.
342		-
343	609		2. Agencies making purchases pursuant to this subsection shall:
344		-
345	610		a. be responsible for contracts a warded pursuant to this
346	611		subsection, which includes, but may not be limited to,
347	612		contract management, protest costs, all costs
348	613		connected with or incurred as a result of the
349	614		contract, including legal representation,
350		-
351	615		b. comply with rules and policies of the Office of
352	616		Management and Enterprise Services, and
353		-
354	617		c. report contracts issued pursuant to this subsection to
355	618		the Office of Management and En terprise Services,
356	619		Central Purchasing Division, on a quarterly basis.
357	620
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358	647		3. Purchases made in accordance with this subsec tion shall be
359	648		made pursuant to rules authorized by this section.
360		-	ENR. H. B. NO. 3623 Page 9
361	649		O. The State Purchasing Director, with approval by the Director
362	650		of the Office of Management and Enterprise Services, is authorized
363	651		to make use of any state laboratories for the tests and analyses
364	652		authorized in this section wherever practicable and to use private
365	653		laboratories or the laboratories of another government agency if it
366	654		is impracticable to use state laboratories. The State Purchasing
367	655		Director is further authorized to cooperate in te st and analysis
368	656		programs or agreements with other states or the United States
369	657		government and to accept federal funds and funds donated by private
370	658		endowments or foundations for the purpose of participation in such
371	659		testing programs.
372		-
373	660		P. The State Purchasing Director shall require all contractors
374	661		or subcontractors who have entered into a contract with a public
375	662		employer to submit an affidavit t hat the contractor or subcontractor
376	663		is in compliance with the provisions of Section 1313 of Title 25 of
377	664		the Oklahoma Statutes. If the State Purchasing Director determines
378	665		that a contractor or subcontractor has knowingly submitted a false
379	666		affidavit:
380		-
381	667		1. The contractor or subcontractor shall be liable for an
382	668		administrative penalty of Five Thousand Dollars ($5,000.00) for the
383	669		first offense, which shall increase by Two Thousand Dollars
384	670		($2,000.00) for each subsequent offense; and
385	671
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386	698		2. The public employer or the Office of Management and
387	699		Enterprise Services may terminate the contract with the contractor
388	700		or subcontractor.
389		-
390	701		SECTION 2. This act shall become effective November 1, 2024.
391		-	ENR. H. B. NO. 3623 Page 10
392		-	Passed the House of Representatives the 12th day of March, 2024.
393		-
394		-
395		-
396		-
397		-	Presiding Officer of the House
398		-	of Representatives
399		-
400		-
401		-
402		-	Passed the Senate the 17th day of April, 2024.
403		-
404		-
405		-
406		-
407		-	Presiding Officer of the Senate
408		-
409		-	OFFICE OF THE GOVERNOR
410		-	Received by the Office of the Governor this ____________________
411		-	day of ___________________, 20_______, at _______ o'clock _______ M.
412		-	By: _________________________________
413		-	Approved by the Governor of the State of Oklahoma this _____ ____
414		-	day of ___________________, 20__ _____, at _______ o'clock _______ M.
415		-
416		-
417		-	_________________________________
418		-	Governor of the State of Oklahoma
419		-
420		-	OFFICE OF THE SECRETARY OF STATE
421		-	Received by the Office of the Secretary of State this __________
422		-	day of ___________________, 20_______, at ______ _ o'clock _______ M.
423		-	By: _________________________________
424		-
425		-
	702	+	COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT
	703	+	April 11, 2024 - DO PASS