Oklahoma 2024 Regular Session

Oklahoma House Bill HB3930 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. B. NO. 3930 Page 1 1
	3	+	HB3930 HFLR Page 1
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28		-	ENGROSSED HOUSE
29		-	BILL NO. 3930 By: Deck of the House
	30	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
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31		-	~~and~~
	32	+	STATE OF OKLAHOMA
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33		-	Green of the Senate
	34	+	2nd Session of the 59th Legislature (2024)
	35	+
	36	+	COMMITTEE SUBSTITUTE
	37	+	FOR
	38	+	HOUSE BILL NO. 3930 By: Deck
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	44	+	COMMITTEE SUBSTITUTE
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40	46		An Act relating to public buildings and public works;
41	47		amending 61 O.S. 2021, Section 1 03, as amended by
42	48		Section 23, Chapter 228 , O.S.L. 2022 (61 O.S. Supp.
43	49		2023, Section 103), which relates to public
44	50		contracts; modifying provisions related to qualified
45	51		contractors; providing for codifica tion; providing an
46	52		effective date; and declaring an emergency.
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52	58		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
53	59		SECTION 1. AMENDATORY 61 O.S. 2021, Section 103, as
54	60		amended by Section 23, Chapter 228, O.S.L. 2022 ( 61 O.S. Supp. 2023,
55	61		Section 103), is amended to read a s follows:
56	62		Section 103. A. Unless otherwise provided by law, all public
57	63		construction contracts exceeding One Hundred Thousand Dollars
58	64		($100,000.00) or construction management trade contracts or
59	65		subcontracts exceeding Fifty Th ousand Dollars ($50,000.00) s hall be
60	66		let and awarded to the lowest responsible bidder, by open
61	67		competitive bidding after solicitation for sealed bids, in
62		-	accordance with the provisions of the Public Compet itive Bidding Act
63		-	of 1974. No work shall be commen ced until a written contract is
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65		-	ENGR. H. B. NO. 3930 Page 2 1
	69	+	HB3930 HFLR Page 2
	70	+	BOLD FACE denotes Committee Amendments.
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	96	+	accordance with the provisions of the Public Compet itive Bidding Act
	97	+	of 1974. No work shall be commen ced until a written contract is
90	98		executed and all required bonds and insurance have been provided by
91	99		the contractor to the awarding public agency.
92	100		B. Notwithstanding subsection A of this section, in awardi ng
93	101		public construction con tracts exceeding One Hund red Thousand Dollars
94	102		($100,000.00) or construction management trade contracts or
95	103		subcontracts exceeding Fifty Thousand Dollars ($50,000.00),
96	104		counties, cities, other local units of government and any public
97	105		trust with a county or a municipality as its sole beneficiary may
98	106		provide for a local bid preference of not more than five percent
99	107		(5%) of the bid price if the awarding public agency determines that
100	108		there is an economic benefit to the local area or econom y.
101	109		Provided, however, the local bidder or contract or must agree to
102	110		perform the contract for the same price and terms as the bid
103	111		proposed by the nonlocal bidder or contractor. Any bid preference
104	112		granted hereunder must be in accordance with an established policy
105	113		adopted by the governing body of the awardin g public agency to
106	114		clearly demonstrate the economic benefit to the local area or
107	115		economy. Provided, further, no local bid preference shall be
108	116		granted unless the local bidding entity is the second lowest
109	117		qualified bid on the contra ct. The bid specificatio ns shall clearly
110	118		state that the bid is subject to a local bidder preference law. For
111	119		purposes of this section, "local bid" means the bidding person is
112		-	authorized to transact business in this state and mai ntains a bona
113		-	fide establishment for transacting su ch business within this state .
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115		-	ENGR. H. B. NO. 3930 Page 3 1
	121	+	HB3930 HFLR Page 3
	122	+	BOLD FACE denotes Committee Amendments.
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	148	+	authorized to transact business in this state and mai ntains a bona
	149	+	fide establishment for transacting su ch business within this state .
140	150		This provision does not apply to any construction contract for which
141	151		federal funds are available for expenditure when its provisions may
142	152		be in conflict with federal law or r egulation.
143	153		C. Except as provided in subsection E o f this section, other
144	154		construction contracts for the purpose of making any public
145	155		improvements or constructing any public building or making repairs
146	156		to the same for One Hundred Thousand Dollars ($100,000.0 0) or less
147	157		shall be let and awarded to the lowest r esponsible bidder by receipt
148	158		of written bids or awarded on the basis of competitive quotes to the
149	159		lowest responsible qualified contractor. Work may be commenced in
150	160		accordance with the purchasing policies of the public agency.
151	161		D. Except as provided in sub section E of this section, ot her
152	162		construction contracts for less than Ten Thousand Dollars
153	163		($10,000.00) Twenty-five Thousand Dollars ($25,000.00) may be
154	164		negotiated with a qualified contractor. Work may be commenced in
155	165		accordance with the purchasing polici es of the public agency.
156	166		E. The provisions of this subsection shall apply to public
157	167		construction for minor maintenance or minor repair work to public
158	168		school district property. Other construction contract s for less
159	169		than Twenty-five Thousand Dollars ($25,0 00.00) may be negotiated
160	170		with a qualified contractor. Construction contracts equal to or
161	171		greater than Fifty Thousand Dollars ($50,000.00) but less than One
162		-	Hundred Thousand Dollars ($100,000.00) shall be let and awarded to
163		-	the lowest responsible bidder by receipt of written bids. No work
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165		-	ENGR. H. B. NO. 3930 Page 4 1
	173	+	HB3930 HFLR Page 4
	174	+	BOLD FACE denotes Committee Amendments.
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	200	+	Hundred Thousand Dollars ($100,000.00) shall be let and awarded to
	201	+	the lowest responsible bidder by receipt of written bids. No work
190	202		shall be commenced on any construction contract until a written
191	203		contract is executed and proof of insurance has been provided by the
192	204		contractor to the awarding public age ncy.
193	205		F. The Construction and Properties Division o f the Office of
194	206		Management and Enterprise Services may award contracts using best
195	207		value competitive proposals. As used in this subsection, "best
196	208		value" means an optional contract award system which can ev aluate
197	209		and rank submitted competitive performance p roposals to identify the
198	210		proposal with the greatest value to the state. The Office of
199	211		Management and Enterprise Services, pursuant to the Administrative
200	212		Procedures Act, shall promulgate rules necessary to implement the
201	213		provisions of this subsection.
202	214		G. 1. A public agency shall not let or award a public
203	215		construction contract exceeding One Hundred Thousand Dollars
204	216		($100,000.00) or a construction management trade contract or
205	217		subcontract exceeding Fifty Thou sand Dollars ($50,000.00) to any
206	218		contractor affiliated with a purchasing coopera tive unless the
207	219		purchasing cooperative and the contractor have complied with all of
208	220		the provisions of the Public Competitive Bidding Act of 1974,
209	221		including but not limited to o pen competitive bidding af ter
210	222		solicitation for seal ed bids. A public agency sha ll not let or
211	223		award a public construction contract exceeding Ten Thousand Dollars
212		-	($10,000.00) up to One Hundred Thousand Dollars ($100,000.00) to any
213		-	contractor affiliated wit h a purchasing cooperative unless the
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215		-	ENGR. H. B. NO. 3930 Page 5 1
	225	+	HB3930 HFLR Page 5
	226	+	BOLD FACE denotes Committee Amendments.
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	252	+	($10,000.00) up to One Hundred Thousand Dollars ($100,000.00) to any
	253	+	contractor affiliated wit h a purchasing cooperative unless the
240	254		purchasing cooperative and the contractor have complied with all of
241	255		the provisions of the Public Competitive Bidding Act of 1974,
242	256		including submission of a written bid upon notice of competitive
243	257		bidding.
244	258		2. A purchasing cooperative and its aff iliated contractors
245	259		shall not be allowed to bid on any public construction contract
246	260		exceeding One Hundred Thousand Dollars ($100,000.00) or any
247	261		construction management trade contract or subcontract exceeding
248	262		Fifty Thousand Dollars ($50,000.00) unless the p urchasing
249	263		cooperative and its affiliated contractors h ave complied with all of
250	264		the provisions of the Public Competitive Bidding Act of 1974,
251	265		including but not limited to open competitive bidding after
252	266		solicitation for sealed bids. A purchasing cooperative and its
253	267		affiliated contractors shall not be allowed t o bid on any public
254	268		construction contract exceeding Five Thousand Dollars ($5,000.00)
255	269		unless the purchasing cooperative and its affiliated contractors
256	270		have complied with all of the provisions of the Pub lic Competitive
257	271		Bidding Act of 1974, including submiss ion of a written bid upon
258	272		notice of open competitive bidding.
259	273		3. Local governmental units, or local governmental units
260	274		cooperating under the terms of any interlocal cooperativ e agreement
261	275		authorized by state law, may create a p urchasing cooperative or
262		-	contract with a purchasing cooperative to provide leverage in
263		-	achieving best value or the best terms in contracts. To encourage
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265		-	ENGR. H. B. NO. 3930 Page 6 1
	277	+	HB3930 HFLR Page 6
	278	+	BOLD FACE denotes Committee Amendments.
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	304	+	contract with a purchasing cooperative to provide leverage in
	305	+	achieving best value or the best terms in contracts. To encourage
290	306		intergovernmental collaboration, any purchasing coo perative or
291	307		interlocal cooperative entity may utili ze any single legal newspaper
292	308		of this state to serve as sufficient compliance for bid notice
293	309		requirements of competitive bidding or solicitation of bids. If the
294	310		purchasing cooperative or interlocal cooper ative entity is engaging
295	311		in a project exclusive to a county or group of counties of this
296	312		state, and not open to all governmental units or public trusts that
297	313		wish to participate statewide, the bid notice shall be published in
298	314		a legal newspaper located withi n the county or group of c ounties.
299	315		Any local governmental unit or public trust that enters into
300	316		membership or contracts with a purchasing cooperative or interlocal
301	317		cooperative entity may enter into purchases or contracts under the
302	318		terms negotiated by the purchasing cooperative or interlocal
303	319		cooperative entity. If the purchasing coop erative or interlocal
304	320		cooperative entity complies with the requirements of this section of
305	321		law, all local governmental units shall be deemed in compliance with
306	322		the requirements set forth for bid notices and publication.
307	323		SECTION 2. This act shall become effective July 1, 2024.
308	324		SECTION 3. It being immediately necessary for the preservation
309	325		of the public peace, health or safety, an emergency is her eby
310		-	declared to exist, by reason whereof this act shall take effect and
311		-	be in full force from and after its passage and approval.
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313		-	ENGR. H. B. NO. 3930 Page 7 1
	327	+	HB3930 HFLR Page 7
	328	+	BOLD FACE denotes Committee Amendments.
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338		-	Passed the House of R epresentatives the 6th day of March, 2024.
	354	+	declared to exist, by reason whereof this act shall take effect and
	355	+	be in full force from and after its passage and approval.
339	356
340		-
341		-
342		-
343		-	Presiding Officer of the House
344		-	of Representatives
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347		-	Passed the Senate the ____ day of __________, 2024.
348		-
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352		-	Presiding Officer of the Senate
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	357	+	COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT, dated
	358	+	02/27/2024 - DO PASS, As Amended.