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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 436 By: Montgomery
AS INTRODUCED
An Act relating to county purchasing; 19 O.S. 2021,
Section 1505, as amended by Se ction 3, Chapter 94,
O.S.L. 2022 (19 O.S. Supp. 2022, Section 1505), which
relates to procedures for requisitions, purchas e, and
lease-purchase for counties; allowing county
purchasing agents to enter into certain agreements
under certain circumstances; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 19 O.S. 2021, Section 1505, as
amended by Section 3, Chapter 94, O.S.L. 2022 (19 O.S. Supp. 2022,
Section 1505), is amended to read as follows:
Section 1505. The following procedures sha ll be used by
counties for the requisition, purchase, lease -purchase, rental, and
receipt of supplies, materials, road and bridge construction
services, equipment a nd information technology and telecommunication
goods and services for the maintenance, oper ation, and capital
expenditures of county government unless otherwise provi ded for by
law.
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A. The procedure for requisit ioning items for county offices
shall be as follows:
1. The requesting department shall prepare a requis ition form
in triplicate. The requisition shall contain any specifications for
an item as deemed necessa ry by the requesting department . The form
shall be prescribed by the State Auditor and I nspector;
2. The requesting department shall retain a copy of the
requisition and forward t he original requisition and a copy to the
county purchasing agent; and
3. Upon receipt of the requisition, the county purchasing
agent, within two (2) working days , shall begin the bidding and
purchasing process as provided f or in this section. Nothing in this
section shall prohibit the transfer of supplies, materials, or
equipment between county departments upon a writ ten agreement
between county officers.
B. The bid procedure for selecting a vendor for the purchase,
lease-purchase, or rental of supplie s, materials, equipment and
information technology and telecommunication go ods and services used
by a county shall be as follows:
1. The county purchasing agent sh all request written
recommendations from all county officers p ertaining to needed or
commonly used supplies, materials, road and bridge construction
services, equipment and information technology and telecomm unication
goods and services. From such recommendations and available
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requisition, purchase, or inventory rec ords, the county purchasing
agent shall prepare a list of items needed or commonly used by
county officers. The county purchasing agent shall req uest from the
Purchasing Division or from the In formation Services Division in the
case of information technol ogy and telecommunication good s and
services of the Office of Management and Enterprise Services all
contracts quoting the price the state is payi ng for the items. The
county purchasing agent s hall either request the Purchasing Division
or the Information Services Division of the Offi ce of Management and
Enterprise Services, as applicable, to make the purcha se for the
county or the county purchasin g agent shall solicit bids for unit
prices on the items for periods of not to exceed twelve (12) months
in the manner described in paragraph 2 of this subsection. If the
county purchasing agent receives a requisiti on for an item for which
the county purchasing agent does not have a current bid, the cou nty
purchasing agent shall request from the Purchasing Divisio n or the
Information Services Division of the Office of Management and
Enterprise Services, as applicable , all contracts quoting the price
the state is paying for the item . The county purchasin g agent shall
either request the Purchasing Division or the In formation Services
Division of the Office of Management and Enterprise Services, as
applicable, to make t he purchase for the county or the county
purchasing agent shall solicit bids in the manne r described in
paragraph 2 of this subsection. Nothing in this paragraph shall
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prohibit bids from being taken on an item currently on a twelve -
month bid list, at any time deemed necessary by the county
purchasing agent. Whenever the county purchasing age nt deems it
necessary to take a bid on an item currently on a twelve-month bid
list, the reason for the bid shall be entered into the minutes of
the board of county co mmissioners;
2. Bids shall be solicited by mailing or emailing a notice to
all persons or firms who have made a written request of the county
purchasing agent that they be notified of such bid solicitation and
to all other persons or firms who might reaso nably be expected to
submit bids. Notice of solicitation of bids shall also be published
one time in a newspaper of general circulation in the county .
Notices shall be mailed and published at least ten (10) days prior
to the date on which the bids are op ened. Proof of the mailing or
emailing shall be made by the affidavit of the person mail ing or
emailing the request for bids and shall be made a part of the
official records of the county purchasing agent. The notice shall
specify whether the county will consider written bids, electronic
bids, or both; the decision to exclusively consider either written
bids or electronic bids shall be determined pursuant to an
affirmative vote of the board of county commissioners. Whenever any
prospective supplier or ve ndor dealing in or listing for sale any
particular item or article required to be purchas ed or acquired by
sealed bids fails to enter or offer a sealed bid for three
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successive bid solicitations, the name of the supplier or vendor may
be dropped from the m ailing lists of the board of county
commissioners;
3. The sealed bids received from vend ors and the state contract
price received from the applicable Division of the Office of
Management and Enterprise Services shall be given to the county
clerk by the county purchasing agent. The county clerk shall
forward the sealed bids and state contract price, if any, to the
board of county commissioners;
4. The board of county commissioners, in an open meeting, shall
open the sealed bids and compare them to the sta te contract price.
The board of county commissioners shall select the lowest and best
bid based upon, if applicable, the availability of material and
transportation cost to the job site within thirty (30) days of the
meeting. For any special item not inc luded on the list of needed or
commonly used items, the requisitioning official shall rev iew the
bids and submit a written recommendation to the board before final
approval. The board of county commissioners shall keep a written
record of the meeting as r equired by law, and any time the lowes t
bid was not considered to be the lowest and best bid, the reason for
such conclusion shall be recorded. Whenever the board of county
commissioners rejects the written recommendation of the
requisitioning official pe rtaining to a special item, the reason s
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for the rejection shall be entered in their minut es and stated in a
letter to the requisitioning official and c ounty purchasing agent;
5. The county purchasing agent shall notify the successful
bidders and shall mai ntain a copy of the notification . The county
purchasing agent shall prepare and maintain a vendors list
specifying the successful bidders and shall no tify each county
officer of the list. The county purchasing agent may remove any
vendor from such list w ho refuses to provide goods or servic es as
provided by contract if the removal is authori zed by the board of
county commissioners. The county purchasing agent may make
purchases from the successful bidders for a price at or below the
bid price. If a vendor who is the low bidder cannot or wi ll not
sell goods or services as required by a count y bid contract, the
county purchasing agent may make a one -time purchase from the next
lowest or best quote or take quotations as provided in paragraph 6
of this subsection; provided, however, such purcha se does not exceed
Twenty-five Thousand Dollars ($25 ,000.00) as the amount specified in
subparagraph a of paragrap h 3 of subsection A of Section 1501 of
this title; and
6. When bids have been solicited as provided for by law and no
bids have been receive d, the procedure shall be as follows:
a. the county purchasing agent shall determine if
potential vendors are wil ling to commit to a firm
price for a reduced period of time, and, if such is
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the case, the bid procedure de scribed in this
subsection shall be followed,
b. if vendors are not willing to commit to a firm price
for a reduced period, the purchasing agent sha ll
solicit and record at least th ree quotes of current
prices available to the county and authorize the
purchase of goods or services based on the lowest and
best quote as it becomes necessary to a cquire such
goods or services. The quotes shall be recorde d on a
form prescribed by the Sta te Auditor and Inspector and
shall be attached to the purchase order and fi led with
the county clerk’s copy of the purchase order . Any
time the lowest quote was no t considered to be the
lowest and best quote, the reason fo r this conclusion
shall be recorded by the county purchasing agent and
transmitted to the county clerk, or
c. if three quotes are not availab le, a memorandum to the
county clerk from the county pur chasing agent shall
describe the basis upon which a purcha se is
authorized. The memorandum shall state the reasons
why the price for such a purchase is the lowest and
best under the circumstances. The county clerk shall
then attach the memorandum to the county clerk’s copy
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of the purchase order and file both in the office of
the county clerk.
C. After selection of a vendor, the procedure for the purchase,
lease-purchase, or rental of supplies, mate rials, road and bridge
construction services, equipment a nd information technology and
telecommunication goods and services used by a county shall be as
follows:
1. The county purchasing agent shall prepare a purchase order
in quadruplicate and submit it with a copy of the requisition to the
county clerk;
2. The county clerk shall then encumber the amount stated o n
the purchase order and assign a seq uential number to the purchase
order;
3. If there is an unencumbered balan ce in the appropriation
made for that purpose by the county excise board, the county cler k
shall so certify in the following form:
“I hereby certify that the amount of this encumbra nce has been
entered against the designated appropriation accounts and that this
encumbrance is within the authorized available balance of the
appropriation.
Dated this ________ day of ________, 20__.
________________________________
County Clerk/Deputy
of _____________________ County.”
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In instances where it is impossible to asce rtain the exact amount of
the indebtedness sought to be incurred at the time of recording the
encumbrance, an estimated amount may be used. No purchase order
shall be valid unless signed by the county purchasing agent and
certified by the county clerk; an d
4. The county clerk shall file the original purchase order and
return three copies to the county purchasing agent who shall file a
copy, retain a copy for the county road and bri dge inventory officer
if the purchase order is for the purchase of equipmen t, supplies, or
materials for the construction or maintenance of roads and bridges,
and submit the other copy to the receiving officer of the requesting
department.
D. 1. The procedure for the purchase of supplies, materials,
equipment and information te chnology and telecommunication goods and
services at public auction or by sealed bid to b e used by a county
shall be as follows:
a. the county purchasing agent shall prepare a purch ase
order in quadruplicate and submit it with a copy of
the requisition to the county clerk,
b. the county clerk shall then encumber the amount stated
on the purchase order and assign a sequential number
to the purchase order,
c. if there is an unencumbere d balance in the
appropriation made for that purpose by the county
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excise board, the county clerk shall so certify in the
following form:
“I hereby certify that the amount of this encumbrance
has been entered against the desig nated appropriation
accounts and that this encumbrance is within the
authorized available balance of the appropriation.
Dated this ________ day of ________, 20__.
_______________________________ _
County Clerk/Deputy
of _____________________ County.”
In instances where it is impossible to ascertain the
exact amount of the indebtedness sought to be incurred
at the time of recording the encumbrance, an estimated
amount may be used. No purchase order shall be valid
unless signed by the county purchasing agent and
certified by the county cl erk, and
d. the county clerk shall file the original purchase
order and return three copies to the county purchasing
agent who shall file a copy, retain a copy for the
county road and bridge inventory officer if the
purchase order is for the purchase of eq uipment,
supplies, or materials for the construction or
maintenance of roads and bridges, and submit the other
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copy to the receiving officer of the requesting
department.
2. The procedure for the purchase of supplies, materia ls and
equipment at a public a uction when the purchase will be made with
the proceeds from the sale of co unty property at the same public
auction are as follows:
a. the purchasing agent shall ca use such items being sold
to be appraised in the manner determ ined in Section
421.1 of this title,
b. the county purchasing agent shall prepare a purchase
order in quadruplicate and submit it with a copy of
the requisition to the county clerk,
c. the county clerk shall then encumber the amount of the
appraised value and any additional funds oblig ated by
the county on the purchase order and assign a
sequential number to the purchase order,
d. the county clerk shall certify that the amount of the
encumbrance is equal to the appraised value of the
item being sold plus an y additional funds obligated b y
the county. In effect the recording of the
encumbrance is an estimate th at is authorized by law.
No purchase order shall be valid unless signed by the
county purchasing agent and certified by the county
clerk,
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e. the county clerk shall file the origina l purchase
order and return three copies to the county purchasing
agent who shall file a copy, retain a copy for the
county road and bridge inventory officer if the
purchase order is for the purchase of equipment,
supplies or materials for the construction or
maintenance of roads and bridges, and submit the other
copy to the receiving officer of the requesting
department, and
f. a purchase shall not be bid until such time that the
appraised item or items are sold. Any item or items
purchased shall not exce ed the appraised value plus
any additional funds obligated by the county or the
actual selling price of the item or items, whichever
is the lesser amount.
E. The procedure for the receipt of items shall be as follows:
1. A receiving officer for the reque sting department shall be
responsible for receiving all items delivered to that department;
2. Upon the delivery of an item, the receiving officer shall
determine if a purchase order exists for the item being delivered;
3. If no such purchase order has b een provided, the receiving
officer shall refuse delivery of the item;
4. If a purchase order is on file, the receiving officer shall
obtain a delivery ticket, bil l of lading, or other delivery document
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and compare it with th e purchase order. If any item is back-
ordered, the back order and estimated date of delivery shall be
noted in the receiving report;
5. The receiving officer shall complete a receiving report in
quadruplicate which shall state the quantity and quality of goods
delivered. The receiving report form shall be prescribed by the
State Auditor and Inspector . The person delivering the goods shall
acknowledge the delivery by signature, noting the date and time;
6. The receiving officer shall file the original r eceiving
report and submit:
a. a copy of the purchase order and a copy of the
receiving report to the county purchasing agent, and
b. a copy of the receiving report with the delivery
documentation to the county clerk;
7. The county purchasing agent shall file a copy of the
purchase order and a copy of the receiving report;
8. Upon receipt of the orig inal receiving report and the
delivery documentation, the county clerk shall maintain a file unt il
such time as an invoice is received from the vendor;
9. The invoice shall state the name and address of the vendor
and must be sufficiently itemized to cle arly describe each item
purchased, the unit price when applicable, the number or volume of
each item purchased, the total price, the total purchase price, and
the date of the purchase;
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10. Upon receipt of an invoice, the county clerk shall compare
the following documents:
a. requisition,
b. purchase order,
c. invoice with noncollusion affidavit as re quired by
law,
d. receiving report, and
e. delivery document.
The documents shall be availab le for public inspection during
regular business hours; and
11. If the documents conform as to the quantity and quality of
the items, the county clerk shall prepar e a warrant for payment
according to procedures provided for b y law.
F. The following procedures are for the processing of purchase
orders:
1. The purchasing agent shall be allowed up to three (3) days
to process purchase orders to be presented to the bo ard of county
commissioners for consideration and payment . Nothing herein shall
prevent the purchasing agent from processing or the board of county
commissioners from consideration and payment of utilities, travel
claims and payroll claims;
2. The board of county commissioners shall consider the
purchase orders so presented and act upon the pur chase orders, by
allowing in full or in part or by holdi ng for further information or
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disallowing the same . The disposition of purchase orders shall be
indicated by the board of county commissioners, showing the amounts
allowed or disallowed and shall be signed by at least two members of
the board of county co mmissioners. Any claim held over for further
information shall be acted upon by allowing or disallowing sam e at
any future meeting of the board held within seventy -five (75) days
from the date of fil ing of the purchase order. Any purchase order
not acted upon within the seventy-five (75) days from the date of
filing shall be deemed to have been disallowed, but such
disallowance shall not prevent the refiling of the purch ase order at
the proper time; and
3. Whenever any allowance, either in whole or in p art, is made
upon any purchase order presented to the board of county
commissioners and is accepted by the pe rson making the claim, such
allowance shall be a full settleme nt of the entire purchase orde r
and provided that the cashing of warrant shall be con sidered as
acceptance by the claimant.
G. The procedure upon consumption or disposal of supplies,
materials, or equipment shall be as follows:
1. For consumable road or bridge items or materials, a
quarterly report of the road and bridge projects compl eted during
such period shall be prepared and kept on file by the consuming
department. The quarterly report m ay be prepared and kept
electronically by the consuming depart ment. The report shall
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contain a record of the date, the place, and the purpose fo r the use
of the road or bridge items or materials. For purposes of
identifying county bridges, the board of c ounty commissioners shall
number each bridge subject to its ju risdiction; and
2. For disposal of all equipment and information technology and
telecommunication goods which originally cost more than Five Hundred
Dollars ($500.00), resolution of disposal sh all be submitted by the
officer on a form prescribed by the St ate Auditor and Inspector’s
Office to the board of county commissioners . The approval of the
resolution of disposal shall be entered into the minutes of the
board.
H. Inventory forms and repor ts shall be retained for not less
than two (2) years after all audit requirements for the st ate and
federal government have been fulfilled and after any pending
litigation involving the forms and reports has been resolved.
I. The procedures provided for i n this section shall not apply
when a county officer certifies that an emergency exists requ iring
an immediate expenditure of funds . Such an expenditure of funds
shall not exceed Five Thousand Dollars ($5,000.00) . The county
officer shall give the county purchasing agent a written explanation
of the emergency. The county purchasing agent shall attach the
written explanation to the purchase or der. The purchases shall be
paid by attaching a properly itemized invoice, as described in this
section, to a purchase order which has been prepared by the county
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purchasing agent and submitting them to th e county clerk for filing,
encumbering, and consid eration for payment by th e board of county
commissioners.
J. The county purchasing agent may authorize county pu rchasing
officers to make acquisitions through the state purcha se card
program as authorized by the State Purchasing Director in accordance
with Section 85.5 of Title 7 4 of the Oklahoma Statutes and defined
in Section 85.2 of Title 74 of the Oklahoma Statu tes. Purchase
cardholders shall sign a purchase card agreement prior to becoming a
cardholder and attend purchase card procedure training as required
by the State Purchasing Director. Complete descriptions of
purchases made by county government entities shall be published
through the state transparency portal pursua nt to Section 85.33B of
Title 74 of the Oklahoma Statutes, and as warrants requ ired to be
published pursuant to Sections 444 and 445 of this title.
K. Nothing in this section shall prohibit c ounties from
providing material and/or services bids on the twel ve-month bid list
to all road and bridge projects and contracts. All non-road and
bridge related construction contracts shall refer to subsection A of
Section 103 of Title 61 of the Oklahoma Statutes.
L. The county purchasing agent may enter into contracts with
state and federal agencies pursuant to the provisions o f this
section for lease or lease -purchase including but not limited to
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materials, goods, services, or equipment subject to the approval of
the board of county commissioners.
SECTION 2. This act shall become effective November 1, 2023.
59-1-542 KR 1/17/2023 9:26:56 AM