Oklahoma 2025 Regular Session

Oklahoma Senate Bill SB1014 Compare Versions

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Version 2 (New)

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3		-	SB1014 HFLR Page 1
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	3	+	ENGR. S. B. NO. 1014 Page 1 1
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29		-	HOUSE OF REPRESENTATIVES - FLOOR VERSION
30		-
31		-	STATE OF OKLAHOMA
32		-
33		-	1st Session of the 60th Legislature (2025)
34	27
35	28		ENGROSSED SENATE
36	29		BILL NO. 1014 By: Stewart of the Senate
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38	31		and
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40	33		West (Kevin) of the House
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45	38		An Act relating to public buildings and public works;
46	39		amending 61 O.S. 2021, Section 103, as amended by
47	40		Section 23, Chapter 228, O.S.L. 2022 (61 O.S. Supp.
48	41		2024, Section 103), which relates to the Public
49	42		Competitive Bidding Act of 1974; requiring local bid
50	43		preference for certain public construction contracts;
51	44		and providing an effective date .
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57	50		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
58	51		SECTION 1. AMENDATORY 61 O.S. 2021, Section 103, as
59	52		amended by Section 23, Chapter 228, O.S.L. 2022 (61 O.S. Supp. 2024,
60	53		Section 103), is amended to read as follows:
61	54		Section 103. A. Unless otherwise provided by law, all public
62	55		construction contracts exceeding One Hundred Thousand Dollars
63	56		($100,000.00) or construction management trade contracts or
64	57		subcontracts exceeding Fifty Thousand Dollars ($50,000.00) shall be
65	58		let and awarded to the lowest responsible bidder, by open
66	59		competitive bidding after solicitation for sealed bids, in
	60	+	accordance with the provisions of the Public Competitive Bidding Act
	61	+	of 1974. No work shall be commenced until a written contract is
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68		-	SB1014 HFLR Page 2
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	63	+	ENGR. S. B. NO. 1014 Page 2 1
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94		-	accordance with the provisions of the Public Competitive Bidding Act
95		-	of 1974. No work shall be commenced until a written contract is
96	88		executed and all required bonds and insurance have been provided by
97	89		the contractor to the awarding public agency.
98	90		B. Notwithstanding subsection A of this section, in awarding
99	91		public construction contracts exceeding One Hundred Thousand Dollars
100	92		($100,000.00) or constr uction management trade contracts or
101	93		subcontracts exceeding Fifty Thous and Dollars ($50,000.00),
102	94		counties, cities, other local units of government and any public
103	95		trust with a county or a municipality as its sole beneficiary may
104	96		shall provide for a local bid preference of not more than five
105	97		percent (5%) of the bid price if the awarding public agency
106	98		determines that there is an economic benefit to the local area or
107	99		economy. Provided, however, the local bidder or contractor must
108	100		agree to perform the contract for the same price and terms as the
109	101		bid proposed by the nonlocal bidder or contractor. Any bid
110	102		preference granted hereunder must be in accordance with an
111	103		established policy adopted by the governing body of the awarding
112	104		public agency to clearly demonstrate the economic benefit to the
113	105		local area or economy. Provided, further, no local bid preference
114	106		shall be granted unless the local bidding entity is the second
115	107		lowest qualified bid on the contract. The bid specifications shall
116	108		clearly state that the bid is subject to a local bidder preference
117	109		law. For purposes of this sectio n, “local bid” means the bidding
	110	+	person is authorized to transact business in this state and
	111	+	maintains a bona fide establishment for transacting such business
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119		-	SB1014 HFLR Page 3
120		-	BOLD FACE denotes Committee Amendments. 1
	113	+	ENGR. S. B. NO. 1014 Page 3 1
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145		-	person is authorized to transact business in this state and
146		-	maintains a bona fide establishment for transacting such b usiness
147	138		within this state. This provision does not apply to any
148	139		construction contract for which federal funds are available for
149	140		expenditure when its provisions may be in conflict with federal law
150	141		or regulation.
151	142		C. Except as provided in subsection E of this section, other
152	143		construction contracts for the purpose of making any public
153	144		improvements or constructin g any public building or making repairs
154	145		to the same for One Hundred Thousand Dollars ($100,000.00) or less
155	146		shall be let and awarded to the lowest responsible bidder by receipt
156	147		of written bids or awarded on the basis of competitive quotes to the
157	148		lowest responsible qualified contractor. Work may be commenced in
158	149		accordance with the purchasing policies of the public agency.
159	150		D. Except as provided in subsection E of this section, other
160	151		construction contracts for less than Ten Thousand Dollars
161	152		($10,000.00) may be negotiated with a qualified contractor. Work
162	153		may be commenced in accordance with the purchasing policies of the
163	154		public agency.
164	155		E. The provisions of this subsection shall apply to public
165	156		construction for minor maintenance or minor repair work to public
166	157		school district property. Other construction contracts for less
167	158		than Twenty-five Thousand Dollars ($25,000.00) may be negotiated
168	159		with a qualified contractor. Construction contracts eq ual to or
	160	+	greater than Fifty Thousand Dollars ($50,000.00) but less tha n One
	161	+	Hundred Thousand Dollars ($100,000.00) shall be let and awarded to
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170		-	SB1014 HFLR Page 4
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	163	+	ENGR. S. B. NO. 1014 Page 4 1
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196		-	greater than Fifty Thousand Dollars ($50,000.00) but less tha n One
197		-	Hundred Thousand Dollars ($100,000.00) shall be let and awarded to
198	188		the lowest responsible bidder by receipt of written bids. No work
199	189		shall be commenced on any construction contract until a written
200	190		contract is executed and proof of insurance has been provided by the
201	191		contractor to the awarding public agency.
202	192		F. The Construction and Properties Division of the Office of
203	193		Management and Enterprise Services may award contracts using bes t
204	194		value competitive proposals. As used in this subsection, “best
205	195		value” means an optional contract award system which can evaluate
206	196		and rank submitted competitive performance proposals to identify the
207	197		proposal with the greatest value to the state. The Office of
208	198		Management and Enterprise Services, pursuant to the Administrati ve
209	199		Procedures Act, shall promulgate rules necessary to implement the
210	200		provisions of this subsection.
211	201		G. 1. A public agency shall not let or award a public
212	202		construction contract exceedi ng One Hundred Thousand Dollars
213	203		($100,000.00) or a construction managem ent trade contract or
214	204		subcontract exceeding Fifty Thousand Dollars ($50,000.00) to any
215	205		contractor affiliated with a purchasing cooperative unless the
216	206		purchasing cooperative and the contractor have complied with all of
217	207		the provisions of the Public Competiti ve Bidding Act of 1974,
218	208		including, but not limited to, open competitive bidding after
219	209		solicitation for sealed bids. A public agency shall not let or
	210	+	award a public construction contrac t exceeding Ten Thousand Dollars
	211	+	($10,000.00) up to One Hundred Thousan d Dollars ($100,000.00) to any
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221		-	SB1014 HFLR Page 5
222		-	BOLD FACE denotes Committee Amendments. 1
	213	+	ENGR. S. B. NO. 1014 Page 5 1
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247		-	award a public construction contract exceeding Ten Thousand Dollars
248		-	($10,000.00) up to One Hundred Thousan d Dollars ($100,000.00) to any
249	238		contractor affiliated with a purchasing cooperative unless the
250	239		purchasing cooperative and the contractor have complied with all of
251	240		the provisions of the Public Competitive Bidding Act of 1974,
252	241		including submission of a writte n bid upon notice of competitive
253	242		bidding.
254	243		2. A purchasing cooperative and its affiliated contractors
255	244		shall not be allowed to bid on any public construction contract
256	245		exceeding One Hundred Thousand Dollars ($100,000.00) or any
257	246		construction management trade contract or subcontract exceeding
258	247		Fifty Thousand Dollars ($50,000.00) unless the purchasing
259	248		cooperative and its affiliated contractors have complied with all of
260	249		the provisions of the Public Competitive Bidding Act of 1974,
261	250		including, but not limited to, open competitive bidding after
262	251		solicitation for sealed bids. A purchasing cooperative and its
263	252		affiliated contractors shall not be allowed to bid on any public
264	253		construction contract excee ding Five Thousand Dollars ($5,000.00)
265	254		unless the purchasing cooperativ e and its affiliated contractors
266	255		have complied with all of the provisions of the Public Competitive
267	256		Bidding Act of 1974, including submission of a written bid upon
268	257		notice of open competitive bidding.
269	258		3. Local governmental units, or local governmental unit s
270	259		cooperating under the terms of any interlocal cooperative agreement
	260	+	authorized by state law, may create a purchasing cooperative or
	261	+	contract with a purchasing cooperative to provide l everage in
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272		-	SB1014 HFLR Page 6
273		-	BOLD FACE denotes Committee Amendments. 1
	263	+	ENGR. S. B. NO. 1014 Page 6 1
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298		-	authorized by state law, may create a purchasing cooperative or
299		-	contract with a purchasing cooperative to provide leverage in
300	288		achieving best value or the best terms in contracts. To enc ourage
301	289		intergovernmental collaboration, any purchasing cooperative or
302	290		interlocal cooperative entity may utilize any single legal newspaper
303	291		of this state to serve as sufficient compliance for bid notice
304	292		requirements of competitive bidding or solicitation of bids. If the
305	293		purchasing cooperative or interlocal cooperative entity is engaging
306	294		in a project exclusive to a county or group of counties of this
307	295		state, and not open to all governmenta l units or public trusts that
308	296		wish to participate statewide, the bid no tice shall be published in
309	297		a legal newspaper located within the county or group of counties.
310	298		Any local governmental unit or public trust that enters into
311	299		membership or contracts with a purchasing cooperative or interlocal
312	300		cooperative entity may enter into purchases or contracts under the
313	301		terms negotiated by the purchasing cooperative or interlocal
314	302		cooperative entity. If the purchasing cooperative or interlocal
315	303		cooperative entity compli es with the requirements of this section of
316	304		law, all local governmental units shall be deemed in compliance with
317	305		the requirements set forth for bid notices and publication.
318	306		SECTION 2. This act shall become effective November 1, 2025.
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320		-	COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT, dated 04/17/2025 – DO
321		-	PASS.
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	333	+	Passed the Senate the 25th day of March, 2025.
	334	+
	335	+
	336	+
	337	+	Presiding Officer of the Senate
	338	+
	339	+
	340	+	Passed the House of Representatives the ____ day of __________,
	341	+	2025.
	342	+
	343	+
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	345	+	Presiding Officer of the House
	346	+	of Representatives
	347	+