SENATE FLOOR VERSION - SB1849 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 27, 2024 COMMITTEE SUBSTITUTE FOR SENATE BILL NO. 1849 By: Thompson (Kristen) and Paxton [ cooperative purchasing agreements - interlocal cooperative agreements - effective date ] BE IT ENACTED BY THE PEOPLE OF THE S TATE 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 coope rative purchasing agreement for the acquisition of any commodities or services with one or more public agenc ies in accordance with an 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). SENATE FLOOR VERSION - SB1849 SFLR Page 2 (Bold face denotes Committee Amendments) 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. 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 procu rement 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. C. For purposes of this section, the following definitions 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 which, SENATE FLOOR VERSION - SB1849 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 if located in this state, would qualify as a public procurement 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 super sede 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 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 enter into an interlocal cooperative agr eement for the purpose of jointly and comparatively performing any of the services, duties, functions, activities, obligations , or SENATE FLOOR VERSION - SB1849 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 responsibilities which are authorized or req uired by law to be performed by school districts of this state. Two or more scho ol 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 educ ation 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 cooperativ e agreements between school districts. If the boards of education of any two or more school districts enter into an interlocal cooperative agreement the following conditions may apply: 1. An interlocal cooperative agreement shall establish a board of directors which shall be responsible for administering the joint or cooperative undertaking. The agreement shall specify the organization, terms, and composition of, and manner of appointment to, the board of directors and 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 limited to a board member, administrator, or teacher from each contracting school district. Vacancies in the membership of the board of directors shall be SENATE FLOOR VERSION - SB1849 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 after 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 shal l be subject to change or termination by a recommendation of the State 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, 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 intent of a school district to withdraw from the cooperative agreement must shall be given no later than March 15 for the ensuing school year; 5. An interlocal cooperative agreement shall specify the method or methods to be employed for disposing of prop erty upon partial or complete termination of the agreement; SENATE FLOOR VERSION - SB1849 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 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 sectio n, any powers, privileges, or authority exercised or capable of being exercised by any school district of t his state, or by any board of education thereof, may be jointly exe rcised pursuant to the provisions of an interlocal 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 b onds shall be created or effectuated for joint exercise pursuant to the provisions of an interlocal cooperat ive agreement; and 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 subject to the monetary limitation provided for in Section 139 of Title 61 of the Oklahoma Statutes. SENATE FLOOR VERSION - SB1849 SFLR Page 7 (Bold face denotes Committee Amendments) 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. Nothing contained in this section shall be c onstrued to abrogate, interfere with, imp air, 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 districts are required to comply with t he provisions of this section when entering into an interlocal cooperative agreement that meets the definit ion of an interlocal cooperative agreement. SECTION 3. This act shall become effective Nove mber 1, 2024. COMMITTEE REPORT BY: COMMIT TEE ON EDUCATION February 27, 2024 - DO PASS AS AMENDED BY CS