Bill Text For HB1789 - Senate Floor Version

 1|                        SENATE FLOOR VERSION                           |
  |                           March 31, 2021                              |
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 3|ENGROSSED HOUSE                                                        |
  |BILL NO. 1789                        By: Pae of the House              |
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  |                                         Howard of the Senate          |
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 8|       An Act relating to public buildings and public works;           |
  |       amending 61 O.S. 2011, Section 103, as last amended             |
 9|       by Section 2, Chapter 405, O.S.L. 2019 (61 O.S. Supp.           |
  |       2020, Section 103), which relates to competitive                |
10|       bidding; authorizing certain local governmental units           |
  |       to create purchasing cooperative; providing for                 |
11|       notice and publication; providing for compliance of             |
  |       requirements; and providing an effective date.                  |
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14|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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15|    SECTION 1.     AMENDATORY     61 O.S. 2011, Section 103, as last   |
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16|amended by Section 2, Chapter 405, O.S.L. 2019 (61 O.S. Supp. 2020,    |
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17|Section 103), is amended to read as follows:                           |
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18|    Section 103.  A.  Unless otherwise provided by law, all public     |
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19|construction contracts exceeding Fifty Thousand Dollars ($50,000.00)   |
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20|shall be let and awarded to the lowest responsible bidder, by open     |
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21|competitive bidding after solicitation for sealed bids, in             |
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22|accordance with the provisions of the Public Competitive Bidding Act   |
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23|of 1974.  No work shall be commenced until a written contract is       |
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arsid796320 SENATE FLOOR VERSION - HB1789 SFLR                     Page 1
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 1|executed and all required bonds and insurance have been provided by    |
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 2|the contractor to the awarding public agency.                          |
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 3|    B.  Notwithstanding subsection A of this section, in awarding      |
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 4|public construction contracts exceeding Fifty Thousand Dollars         |
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 5|($50,000.00), counties, cities, other local units of government and    |
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 6|any public trust with a county or a municipality as its sole           |
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 7|beneficiary may provide for a local bid preference of not more than    |
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 8|five percent (5%) of the bid price if the awarding public agency       |
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 9|determines that there is an economic benefit to the local area or      |
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10|economy.  Provided, however, the local bidder or contractor must       |
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11|agree to perform the contract for the same price and terms as the      |
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12|bid proposed by the nonlocal bidder or contractor.  Any bid            |
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13|preference granted hereunder must be in accordance with an             |
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14|established policy adopted by the governing body of the awarding       |
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15|public agency to clearly demonstrate the economic benefit to the       |
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16|local area or economy.  Provided, further, no local bid preference     |
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17|shall be granted unless the local bidding entity is the second         |
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18|lowest qualified bid on the contract.  The bid specifications shall    |
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19|clearly state that the bid is subject to a local bidder preference     |
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20|law.  For purposes of this section, "local bid" means the bidding      |
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21|person is authorized to transact business in this state and            |
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22|maintains a bona fide establishment for transacting such business      |
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23|within this state.  This provision does not apply to any               |
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24|construction contract for which federal funds are available for        |
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arsid796320 SENATE FLOOR VERSION - HB1789 SFLR                     Page 2
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 1|expenditure when its provisions may be in conflict with federal law    |
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 2|or regulation.                                                         |
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 3|    C.  Except as provided in subsection E of this section, other      |
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 4|construction contracts for the purpose of making any public            |
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 5|improvements or constructing any public building or making repairs     |
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 6|to the same for Fifty Thousand Dollars ($50,000.00) or less shall be   |
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 7|let and awarded to the lowest responsible bidder by receipt of         |
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 8|written bids or awarded on the basis of competitive quotes to the      |
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 9|lowest responsible qualified contractor.  Work may be commenced in     |
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10|accordance with the purchasing policies of the public agency.          |
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11|    D.  Except as provided in subsection E of this section, other      |
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12|construction contracts for less than Five Thousand Dollars             |
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13|($5,000.00) may be negotiated with a qualified contractor.  Work may   |
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14|be commenced in accordance with the purchasing policies of the         |
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15|public agency.                                                         |
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16|    E.  The provisions of this subsection shall apply to public        |
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17|construction for minor maintenance or minor repair work to public      |
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18|school district property.  Other construction contracts for less       |
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19|than Twenty-five Thousand Dollars ($25,000.00) may be negotiated       |
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20|with a qualified contractor.  Construction contracts equal to or       |
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21|greater than Twenty-five Thousand Dollars ($25,000.00) but less than   |
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22|Fifty Thousand Dollars ($50,000.00) shall be let and awarded to the    |
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23|lowest responsible bidder by receipt of written bids.  No work shall   |
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24|be commenced on any construction contract until a written contract     |
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arsid796320 SENATE FLOOR VERSION - HB1789 SFLR                     Page 3
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 1|is executed and proof of insurance has been provided by the            |
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 2|contractor to the awarding public agency.                              |
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 3|    F.  The Construction and Properties Division of the Office of      |
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 4|Management and Enterprise Services may award contracts using best      |
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 5|value competitive proposals.  As used in this subsection, "best        |
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 6|value" means an optional contract award system which can evaluate      |
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 7|and rank submitted competitive performance proposals to identify the   |
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 8|proposal with the greatest value to the state.  The Office of          |
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 9|Management and Enterprise Services, pursuant to the Administrative     |
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10|Procedures Act, shall promulgate rules necessary to implement the      |
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11|provisions of this subsection.                                         |
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12|    G.  1.  A public agency shall not let or award a public            |
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13|construction contract exceeding Fifty Thousand Dollars ($50,000.00)    |
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14|to any contractor affiliated with a purchasing cooperative unless      |
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15|the purchasing cooperative and the contractor have complied with all   |
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16|of the provisions of the Public Competitive Bidding Act of 1974,       |
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17|including but not limited to open competitive bidding after            |
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18|solicitation for sealed bids.  A public agency shall not let or        |
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19|award a public construction contract exceeding Five Thousand Dollars   |
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20|($5,000.00) up to Fifty Thousand Dollars ($50,000.00) to any           |
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21|contractor affiliated with a purchasing cooperative unless the         |
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22|purchasing cooperative and the contractor have complied with all of    |
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23|the provisions of the Public Competitive Bidding Act of 1974,          |
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arsid796320 SENATE FLOOR VERSION - HB1789 SFLR                     Page 4
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 1|including submission of a written bid upon notice of competitive       |
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 2|bidding.                                                               |
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 3|    2.  A purchasing cooperative and its affiliated contractors        |
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 4|shall not be allowed to bid on any public construction contract        |
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 5|exceeding Fifty Thousand Dollars ($50,000.00) unless the purchasing    |
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 6|cooperative and its affiliated contractors have complied with all of   |
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 7|the provisions of the Public Competitive Bidding Act of 1974,          |
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 8|including but not limited to open competitive bidding after            |
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 9|solicitation for sealed bids.  A purchasing cooperative and its        |
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10|affiliated contractors shall not be allowed to bid on any public       |
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11|construction contract exceeding Two Thousand Five Hundred Dollars      |
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12|($2,500.00) unless the purchasing cooperative and its affiliated       |
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13|contractors have complied with all of the provisions of the Public     |
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14|Competitive Bidding Act of 1974, including submission of a written     |
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15|bid upon notice of open competitive bidding.                           |
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16|    3.  Local governmental units, or local governmental units          |
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17|cooperating under the terms of any interlocal cooperative agreement    |
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18|authorized by state law, may create a purchasing cooperative or        |
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19|contract with a purchasing cooperative to provide leverage in          |
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20|achieving best value or the best terms in contracts.  To encourage     |
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21|intergovernmental collaboration, any purchasing cooperative or         |
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22|interlocal cooperative entity may utilize any single legal newspaper   |
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23|of this state to serve as sufficient compliance for bid notice         |
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24|requirements of competitive bidding or solicitation of bids.  If the   |
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arsid796320 SENATE FLOOR VERSION - HB1789 SFLR                     Page 5
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 1|purchasing cooperative or interlocal cooperative entity is engaging    |
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 2|in a project exclusive to a county or group of counties of this        |
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 3|state, and not open to all governmental units or public trusts that    |
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 4|wish to participate statewide, the bid notice shall be published in    |
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 5|a legal newspaper located within the county or group of counties.      |
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 6|Any local governmental unit or public trust that enters into           |
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 7|membership or contracts with a purchasing cooperative or interlocal    |
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 8|cooperative entity may enter into purchases or contracts under the     |
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 9|terms negotiated by the purchasing cooperative or interlocal           |
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10|cooperative entity.  If the purchasing cooperative or interlocal       |
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11|cooperative entity complies with the requirements of this section of   |
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12|law, all local governmental units shall be deemed in compliance with   |
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13|the requirements set forth for bid notices and publication.            |
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14|    SECTION 2.  This act shall become effective November 1, 2021.      |
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15|COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT                   |
  |March 31, 2021 - DO PASS                                               |
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