Req. No. 3574 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) COMMITTEE SUBSTITUTE FOR SENATE BILL 1849 By: Thompson (Kristen) and Paxton COMMITTEE SUBSTITUTE An Act relating to cooperative purchasing agreements; amending 61 O.S. 2021, Secti on 139, which relates to the authority to enter coop erative purchasing agreements; establishing monetary limit for certain agreement; removing construction services from inclusion in certain agreement; directing certain services be excluded from certain agreement; updating statutory reference; amending 70 O.S. 2021, Section 5-117b, which relates to interlocal cooperative agreements between boards of education; subjecting agreements to certain monetary limitation; and providing an effective date . BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 61 O.S. 2021, Section 139, is amended to read as follows: Section 139. A. In addition to any authority to enter an agreement pursuant to the Interlocal Cooperation Act, any school district, including a technology school district, may either participate in, sponsor, conduct or administer a cooperative purchasing agreement for the acquisition of any commodities or services with one or more public agencies in accordance with an Req. No. 3574 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 agreement entered into between the participants. Such cooperative purchasing may include, but is not limited to, joint or multiparty contracts between public agencies and open -ended state public procurement contracts. No school district, including a technology school district, shall enter into an agreement under the provisions of this section that exceeds One Million Dollars ($1,000,000.00). B. Any local public procurement unit may eithe r participate in, sponsor, conduct, or administer a cooperative or piggybacking purchasing agreement for the acquisition of any commodities or services, including construction excluding any services that require labor, with one (1) or more public procurement units or external procurement units in accordance with an agreement entered into between the participants. Such cooperative purchasing may include, but is not limited to, jo int or multiparty contracts between public procurement units and open-ended state public procurement unit contracts which are made available to local public procurement units. Purchases made in accordance with this subsection by a local public procurement unit shall be required to satisfy any p rocurement regulation, including The the Oklahoma Central Purchasing Act, the Public Competitive Bidding Act of 1974, the Oklahoma State Finance Act, related administrative rules and federal regulations that may apply due to the federal source of the f unding for the anticipated purchase. Req. No. 3574 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 C. For purposes of this section, the following defi nitions apply: 1. “Local public procurement unit ” shall mean, inter alia, any county, city, town, state agency, and any other subdivision of the state or public unit or agency thereof; 2. “External procurement unit” shall mean any buying organization in the United States not lo cated in this state wh ich, if located in this state, would qualify as a public pr ocurement unit; and 3. “Cooperative or piggybacking purchasin g agreement” shall mean an agreement between a local public procurement unit and another local public procurement unit or an external procurement unit to authorize the use of a contract procured by one of the parties to the agreement to benefit the other party to the agreement. This term shall also mean an agreement that p rovides access to a product or service that is lower in price than a comparable product or service that is available through the usage of a statewide, multistate or multigovernmental cont ract issued by the state Purchasing Division . D. Nothing in this section shall supersede the obligation of a state agency to adhere to rules regarding statewide contracts issued by the state Purchasing Division. Neither shall any provision of this section be construed to waive the obligation of a s tate agency Req. No. 3574 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 to utilize a mandatory purchasing contract as designated by the State Purchasing Director. SECTION 2. AMENDATORY 70 O.S. 2021, Section 5 -117b, is amended to read as follows: Section 5-117b. A. The boards of educatio n of any two or more school districts may ent er into an interlocal cooperative agreement for the purpose of jointly and comparatively performing any of the services, duties, functions, activities, obligations , or responsibilities which are authorized or req uired by law to be performed by school distr icts of this state. Two or more school districts may enter into an interlocal cooperative agreement for the purpose of forming buying po ols and purchasing cooperatives . As used in this section, “interlocal cooperative agreement” means an agreement which is entered into by the boards of education of two or more school districts pursuant to the provisions of this section. This section shall not prohibit school distr icts from entering into cooperative agreements a uthorized under Section 5-117 of this title or interfere with existing cooperative agreeme nts between school districts. If the boards of education o f any two or more school districts enter into an interlocal cooperative agreement the following conditions may apply: 1. An interlocal cooperative agr eement shall establish a board of directors which shall be responsible for administering the joint or cooperative undertaking. The agreement shall specify the Req. No. 3574 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 organization, terms, and composition of, and manner of appointment to, the board of directors an d shall make provision for restructuring or terminating the board upon partial or complete termination of the agreement. The board of di rectors shall be selected by the board of education of each contracting sc hool district and may include but not be limi ted to a board member, administrator, or teacher from each contracting school district. Vacancies in the membership of the board of directors shall be filled within thirty (30) days from the date of the vacancy in the manner specified in the agreement; 2. An interlocal cooperative agreement which is optional to school districts and shall be effective only a fter it is approved by the State Board of Education and the board of directors may be designated as a loca l education agency for some or all state and federal application, reporting , and auditing procedures. An interlocal cooperative board of directors that has been designated as a local education agency shall comply with state and federal law and the regulations of the State Board o f Education; 3. An interlocal cooperative agreement shall be subj ect to change or termination by a recommendation of the Sta te Board of Education; 4. The duration of an interlocal cooperative agreement for joint or cooperative ac tion in performing any of the services, duties, functions, activities, oblig ations, or responsibilities, Req. No. 3574 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 other than the provision of special education services, which are authorized or required by law of school districts in this state, shall be for a term of not less than one (1) year. Notice of int ent of a school district to withdraw from the cooper ative agreement must shall be given no later than Mar ch 15 for the ensuing school year; 5. An interlocal cooperative agreement shall specify the method or methods to be employed for disposing of property upon partial or complete termination of the agreement; 6. Within the limitations provided by law, an interlocal cooperative agreement may be changed or modified by majority consent of the interlocal cooperative board of directors; 7. Except as otherwise specifically provided in this section, any powers, privileges, or authority exercised or capable of bein g exercised by any school district of this state, or by any board of education thereof, may be jointly exe rcised pursuant to the provisions of an inter local cooperative agreement. Federal grant money, applied for on behalf of a school district, may be disbursed directly to a an interlocal cooperative with the consent of the school districts comprising the inte rlocal cooperative. No powers, privileges, or authority with respect to the levy and collection of taxes or the application for or receipt of State Aid formula money, or the issuance of bonds sh all be created or effectuated for joint exercise pursuant to the provisions of an interlocal cooperative agreement; and Req. No. 3574 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 8. Payments from the general fund of each school district which enters into any interlocal cooperative agree ment for the purpose of financing the joint or cooperative undertaking provided for by t he agreement shall be op erating expenses. B. An interlocal cooperative agreement entered into pursuant to the provisions of this section shall be su bject to the monetary limitation provided for in Section 139 of Title 61 of the Oklahoma Statutes. C. Nothing contained in this section shall be const rued to abrogate, interfere with, impair, qualify , or affect in any manner the exercise and enjoyment of all the powers, privileges , and authority conferred upon school districts and boards of education by law, except that boards of edu cation and school di stricts are required to comply with the provisions o f this section when entering into an interlocal coope rative agreement that meets the definition of an interlocal cooperative agreement. SECTION 3. This act shall become effective November 1, 2024. 59-2-3574 EB 2/27/2024 12:24:15 PM