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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 680 By: Rosino
AS INTRODUCED
An Act relating to state government; amending 74 O.S.
2021, Section 85.7, as amended b y Section 1, Chapter
188, O.S.L. 2022 (74 O.S. Supp. 2022, Section 85.7) ,
which relates to acquisitions; modifying exception to
competitive bidding requirements; updating statutory
reference; and declaring an emergency .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.7, as
amended by Section 1, Chapter 188, O.S.L. 2022 (74 O.S. Supp. 2022,
Section 85.7), is amended to read as follows:
Section 85.7. A. 1. Except as otherwise provided by the
Oklahoma Central Purchasing Act, or associated rules:
a. every state agency shall initiate all acquisitions by
the submission of a requisition to t he Purchasing
Division, and
b. no state agency shall make an acquisition for an
amount exceeding Fifty Thousand Dollars ($50,000.00)
or the limit determined by the State Purchasin g
Director pursuant to rules authorized by Section 85.5
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of this title, not to exceed Two Hundred Fifty
Thousand Dollars ($250,000.00), without submission of
a requisition to the Purchasing Division for issuance
of a solicitation for the acquisition on beha lf of the
agency. Any exemption from competitive bid
requirements of the Okl ahoma Central Purchasing Act
further exempts the acquisition from requisition
requirements of the act.
2. The State Purchasing Director may request additional
information necessary to adequately revi ew a requisition to ensure
compliance with this act the Oklahoma Central Purchasing Act and
associated rules. If the State Purchasing Di rector determines that
an acquisition is not necessary, excessive or not justified, the
State Purchasing Director shall deny the requi sition.
3. The provisions of this act the Oklahoma Central Purchasing
Act shall not preclude a state agency from :
a. accepting gifts or donations in any mann er authorized
by law, or
b. making an acquisition for itself without submitting a
requisition under this section when authorized in
writing by the State Pu rchasing Director.
4. Any acquisition a state agency ma kes shall be made pursuant
to this act the Oklahoma Central Purchasing Act and associated
rules. No agency shall use s plit purchasing for the purpose of
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evading the requirement of competitive bidding or other requi rement
of this act the Oklahoma Central Purchasing A ct or associated rules.
Violation of this provisio n shall be cause for discipline of a state
employee up to and including termination.
5. The State Purchasing Director may waive or increase the
limit authorized for a state agency acquisit ion made pursuant to its
own competitive procedures. To perfect an otherwise valid
acquisition inadvertently exceeding th e limit due to administrative
error by a state agency or unforeseeable circumstances, the state
agency shall request a limited waiver or increase upon the discovery
of the error or circumstance to the State Purchasing Director. The
State Purchasing Direct or shall report requests for waivers o r
increases, stating the amount and whether the request was granted or
denied, upon request by t he Governor, President Pro Tempore of the
Senate or Speaker of the House of Representatives.
6. Competitive bidding requi rements of this section shall not
be required for the following:
a. contracts for master custodian banks or trust
companies, investmen t managers, investment
consultants, and actuaries for the state ret irement
systems, and Oklahoma Employees Insurance and B enefits
Board, pension fund management consultants of the
Oklahoma State Pension Commission and the
Commissioners of the Land Office, examiners, experts,
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or consultants for the Insurance Department whose job
duties are tied to Market Conduct Exams, Financi al
Exams, and Insurance Business Transfers, financial
institutions to act as depositories and managers of
the Oklahoma College Savings Plan accounts a nd other
professional services as defined in Sectio n 803 of
Title 18 of the Oklahoma Statutes. W hen requested by
the Oklahoma Employees Insuran ce and Benefits Board or
the governing board of a state retirement system
authorized to hire investment managers , the Purchasing
Division shall assist in the proce ss of selecting
investment managers,
b. a state agency making such an acquisition shall notif y
the State Purchasing Director within fifteen (15) days
following completion of the acquisition. A list of
the exempt contracts shall be provided, upon request,
to a member of the Appropriations and Budget C ommittee
of the House of Representatives or App ropriations
Committee of the Senate,
c. purchases of postage by state agencies made pursuant
to Sections 90.1 through 90.4 of this title,
d. a sole source acquisit ion made in compliance with
Section 85.44D.1 of this title,
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e. an acquisition for des ign, development, communication
or implementation of the state employees flexible
benefits plan; provided, procedures us ed for the
acquisition are consistent with competit ive bid
requirements of this act the Oklahoma Central
Purchasing Act and associated rules,
f. any acquisition of a servic e which the Office of
Management and Enterprise Services has approved as
qualifying for a fixed and uniform rate, subject to
the following:
(1) the Purchasing Division shall establi sh criteria
and guidelines for those services which may
qualify for a fixed and uniform rate,
(2) fixed and uniform rate contracts authorized by
this subsection shall be limited to contracts for
those services furnished to persons directly
benefiting from such services and shall not be
used by a state agency to employ consultants or
to make other acquisitions,
(3) any state agency desiring to have a service
qualified for a fixed and uniform rate shall make
a request for service qualification to the State
Purchasing Director and submit documentation to
support the request. The Sta te Purchasing
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Director shall approve or deny the request. If
approved, the state ag ency shall establish a
fixed and uniform rate for t he service. No
contracts shall be entered int o by the state
agency until the rate has been approved by the
state agency in a public hearing. The proposed
rate shall be clearly and separately identified
in the agenda of the state agency for the hearing
and shall be openly and separately discussed
during such hearing. The state agency shall
notify the State Purchasing Direc tor of its
pending consideration of the proposed rate at
least thirty (30) days befo re the state agency is
to meet on the proposed rate and deliver a copy
of the agenda items concer ning the proposed rate
with supporting documentation. The State
Purchasing Director shall communicate any
observation, reservation, criticism or
recommendation to the agency, either in person at
the time of the hearing or in writing delivered
to the state agency before or at the time of the
hearing. The State Purchasing Directo r shall
specifically note in the written communications
whether the Director has det ermined the rate to
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be excessive. Any written comm unication
presented in the absence of the Stat e Purchasing
Director shall be presented orally during the
public hearing. Whether made in person or in
writing, any comment made by the State Purchasing
Director shall be made a part of the minutes of
the hearing in full,
(4) within two (2) weeks after t he convening of the
Legislature, the administrative officer of the
state agency shall furnish to the Speaker of the
House of Representatives, the President Pro
Tempore of the Senate and to any member of the
House or Senate, if requested by the member, a
complete list of all of the types of services
paid for by uniform fixed rates , the amount of
the rate last approved by the agency for the
service and the number of contracts then in
existence for each type of ser vice. Any rate
which has been determined to b e excessive by the
State Purchasing Director shall be specifically
identified in the list by the state agency, and
(5) at any time, the State Purchasing Direct or may
review, suspend or terminate a contract ente red
into pursuant to the provisions of this pa ragraph
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if the Director determines the contract is not
necessary, is excess ive or is not justified,
g. an acquisition for a client of the State Department of
Rehabilitation Services and acquisitions of the
business enterprise program ; provided, the agency
develops and maintains standards for such an
acquisition. The agency may elect to utilize the
Purchasing Division for an acquisition. The standards
shall foster economy, provide a short response time,
include appropriate safeguards, require written
records, ensure appropriate competition for economical
and efficient purchasing and shall be approved by the
State Purchasing Director,
h. structured settlement agreements entered into by the
Attorney General’s office in order to settle any
lawsuit involving the state, the Legislature, any
state agency or any em ployee or official of the state
if:
(1) prior to entering int o any contract for the
services of an entity to administer a structured
settlement agreement, the Attorney General
receives proposals from at least three entities
engaged in providing such servic es, and
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(2) the selection of a particular entity is made on
the basis of the response to the request which is
the most economical and provides the most
competent service which furthers the best
interests of the state,
i. an acquisition by a state agency pu rsuant to a
contract the State Purchasing Director enters int o on
behalf of a state agency or awards and designates for
use by state agencies, or
j. an acquisition by the Committee for Sustaining
Oklahoma’s Energy Resources pursuant to a contract
with a local supplier for the purpose of holding a
special event or an ex hibition throughout the state.
7. Notwithstanding any other provision of law, an acquisition
may be exempted from requirements of this section by the State
Purchasing Director when in the State Purchasing Director’s
discretion unusual, time-sensitive or unique circumstances exist
which make such exemption in the best and immediate interest of the
state. As used in this subsection, “State Purchasing Director ”
shall not mean a designee. Any such acquisitions shall be described
in detail and publicly posted as a data feed. The description shall
include the name of the supplier, cost of the acquisit ion, reason
for exemption and, as applicable, detailed comparison of the
acquisition with comparable items, any identified cost savings
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resulting from the acquisi tion and a description of benefits to the
state. The State Purchasing Director shall take no action under the
provisions of this subsection prior to such public posting.
B. Competitively bid ac quisitions shall be awarded to the
lowest and best, or best v alue, bidder or bidders.
C. Bids for an amount requiring submission of requisitions to
the Purchasing Division shall be evaluated by the Purchasing
Division and the state agency receiving the ac quisition. At a
minimum, cost and technical expertise shall be considered in
determining the lowest and best, or best value, bid. Further, the
state agency shall present its evaluation and recommendation to the
State Purchasing Director. A documented ev aluation report
containing the evaluations of the Purchasing Division or the state
agency shall be completed prior to the contract award and such
report shall be a matter of public record.
D. Except as otherwise specifically provided by law, the
acquisition of food items or food products by a state agency from a
public trust created pursuant to Sections 176 through 180.56 of
Title 60 of the Oklahoma Statute s shall comply with competitive
bidding requirements of this section.
E. Cooperative contracts shall not be utilized unless the
purchasing cooperative and its af filiated suppliers have complied
with competitive bid requirements of this act the Oklahoma Central
Purchasing Act and associated rules.
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F. Notwithstanding any provision of this act the Oklahoma
Central Purchasing A ct, in all cases where federal granted funds are
involved, the federal laws, rules and regulations thereto shall
govern to the extent necessary to inure to the benefit of such funds
to this state.
G. A court order requi ring an acquisition by a state agency,
whether or not such state agency is subject to this act the Oklahoma
Central Purchasing Act, shall not invalidate competitive bidding
procedures required by this section if such court order does not
specify a specific supplier. Any such acquisition sha ll comply with
competitive bid procedures.
SECTION 2. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage an d approval.
59-1-748 KR 1/18/2023 12:23:33 PM