Bill Text For HB2862 - Engrossed

 1|ENGROSSED HOUSE                                                        |
  |BILL NO. 2862                        By: Wallace of the House          |
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  |                                         and                           |
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  |                                         Pemberton of the Senate       |
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 6|                                                                       |
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 7|       An Act relating to competitive bidding; amending 61             |
  |       O.S. 2011, Sections 102, as last amended by Section             |
 8|       1, Chapter 186, O.S.L. 2013, 103, as last amended by            |
  |       Section 2, Chapter 405, O.S.L. 2019, 103.5, Section             |
 9|       1, Chapter 288, O.S.L. 2014, 104, as last amended by            |
  |       Section 1, Chapter 40, O.S.L. 2017, 107, as amended             |
10|       by Section 313, Chapter 304, O.S.L. 2012, 113, as               |
  |       last amended by Section 3, Chapter 299, O.S.L. 2019,            |
11|       119.1 and 130, as last amended by Section 1, Chapter            |
  |       293, O.S.L. 2016 (61 O.S. Supp. 2020, Sections 102,             |
12|       103, 103.7, 104, 107, 113 and 130), which relate to             |
  |       the Public Competitive Bidding Act of 1974; defining            |
13|       term; modifying certain monetary limits for public              |
  |       construction contracts; establishing monetary limits            |
14|       for construction management trade contracts or                  |
  |       subcontracts; and providing an effective date.                  |
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16|                                                                       |
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17|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:                  |
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18|    SECTION 1.     AMENDATORY     61 O.S. 2011, Section 102, as last   |
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19|amended by Section 1, Chapter 186, O.S.L. 2013 (61 O.S. Supp. 2020,    |
  |                                                                       |
20|Section 102), is amended to read as follows:                           |
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21|    Section 102.  As used in the Public Competitive Bidding Act of     |
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22|1974:                                                                  |
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23|                                                                       |
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24|                                                                       |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 1
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 1|    1.  "Administrator" means the State Construction Administrator     |
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 2|of the Construction and Properties Division of the Office of           |
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 3|Management and Enterprise Services;                                    |
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 4|    2.  "Awarding public agency" means the public agency which         |
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 5|solicits and receives sealed bids on a particular public               |
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 6|construction contract;                                                 |
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 7|    3.  "Bidding documents" means the bid notice, instruction to       |
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 8|bidders, plans and specifications, bidding form, bidding               |
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 9|instructions, general conditions, special conditions and all other     |
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10|written instruments prepared by or on behalf of an awarding public     |
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11|agency for use by prospective bidders on a public construction         |
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12|contract;                                                              |
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13|    4.  "Chief administrative officer" means an individual             |
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14|responsible for directing the administration of a public agency.       |
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15|The term does not mean one or all of the individuals that make         |
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16|policy for a public agency;                                            |
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17|    5.  "Construction management trade contract or subcontract"        |
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18|means any public construction contract exceeding Fifty Thousand        |
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19|Dollars ($50,000.00) in amount that is awarded as a trade contract     |
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20|in an agency construction management contract or awarded as a          |
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21|subcontract in an at-risk construction management contract;            |
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22|    6.  "Public agency" means the State of Oklahoma, and any county,   |
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23|city, town, school district or other political subdivision of the      |
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24|state, any public trust, any public entity specifically created by     |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 2
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 1|the statutes of the State of Oklahoma or as a result of statutory      |
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 2|authorization therefor, and any department, agency, board, bureau,     |
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 3|commission, committee or authority of any of the foregoing public      |
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 4|entities;                                                              |
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 5|    6. 7.  "Public construction contract" or "contract" means any      |
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 6|contract, exceeding One Hundred Thousand Dollars ($100,000.00) in      |
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 7|amount, or any construction management trade contracts or              |
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 8|subcontracts exceeding Fifty Thousand Dollars ($50,000.00) in          |
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 9|amount, awarded by any public agency for the purpose of making any     |
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10|public improvements or constructing any public building or making      |
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11|repairs to or performing maintenance on the same except where the      |
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12|improvements, construction of any building or repairs to the same      |
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13|are improvements or buildings leased to a person or other legal        |
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14|entity exclusively for private and not for public use and no public    |
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15|tax revenues shall be expended on or for the contract unless the       |
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16|public tax revenues used for the project are authorized by a           |
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17|majority of the voters of the applicable public agency voting at an    |
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18|election held for that purpose and the public tax revenues do not      |
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19|exceed twenty-five percent (25%) of the total project cost.  The       |
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20|amount of public tax dollars committed to the project will not         |
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21|exceed a fixed amount established by resolution of the governing       |
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22|body prior to or concurrent with approval of the project;              |
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23|    7. 8.  "Public improvement" means any beneficial or valuable       |
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24|change or addition, betterment, enhancement or amelioration of or      |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 3
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 1|upon any real property, or interest therein, belonging to a public     |
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 2|agency, intended to enhance its value, beauty or utility or to adapt   |
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 3|it to new or further purposes.  The term does not include the direct   |
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 4|purchase of materials, equipment or supplies by a public agency, or    |
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 5|any personal property, including property as defined in paragraphs 1   |
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 6|and 4 of subsection B of Section 430.1 of Title 62 of the Oklahoma     |
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 7|Statutes;                                                              |
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 8|    8. 9.  "Purchasing cooperative" means an association of public     |
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 9|entities working together to provide leverage in achieving best        |
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10|value and/or the best terms in contracts awarded through a             |
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11|competitive bidding process; and                                       |
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12|    9. 10.  "Retainage" means the difference between the amount        |
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13|earned by the contractor on a public construction contract, with the   |
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14|work being accepted by the public agency, and the amount paid on       |
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15|said contract by the public agency.                                    |
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16|    SECTION 2.     AMENDATORY     61 O.S. 2011, Section 103, as last   |
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17|amended by Section 2, Chapter 405, O.S.L. 2019 (61 O.S. Supp. 2020,    |
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18|Section 103), is amended to read as follows:                           |
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19|    Section 103.  A.  Unless otherwise provided by law, all public     |
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20|construction contracts exceeding One Hundred Thousand Dollars          |
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21|($100,000.00) or construction management trade contracts or            |
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22|subcontracts exceeding Fifty Thousand Dollars ($50,000.00) shall be    |
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23|let and awarded to the lowest responsible bidder, by open              |
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24|competitive bidding after solicitation for sealed bids, in             |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 4
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 1|accordance with the provisions of the Public Competitive Bidding Act   |
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 2|of 1974.  No work shall be commenced until a written contract is       |
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 3|executed and all required bonds and insurance have been provided by    |
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 4|the contractor to the awarding public agency.                          |
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 5|    B.  Notwithstanding subsection A of this section, in awarding      |
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 6|public construction contracts exceeding One Hundred Thousand Dollars   |
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 7|($100,000.00) or construction management trade contracts or            |
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 8|subcontracts exceeding Fifty Thousand Dollars ($50,000.00),            |
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 9|counties, cities, other local units of government and any public       |
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10|trust with a county or a municipality as its sole beneficiary may      |
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11|provide for a local bid preference of not more than five percent       |
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12|(5%) of the bid price if the awarding public agency determines that    |
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13|there is an economic benefit to the local area or economy.             |
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14|Provided, however, the local bidder or contractor must agree to        |
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15|perform the contract for the same price and terms as the bid           |
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16|proposed by the nonlocal bidder or contractor.  Any bid preference     |
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17|granted hereunder must be in accordance with an established policy     |
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18|adopted by the governing body of the awarding public agency to         |
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19|clearly demonstrate the economic benefit to the local area or          |
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20|economy.  Provided, further, no local bid preference shall be          |
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21|granted unless the local bidding entity is the second lowest           |
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22|qualified bid on the contract.  The bid specifications shall clearly   |
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23|state that the bid is subject to a local bidder preference law.  For   |
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24|purposes of this section, "local bid" means the bidding person is      |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 5
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 1|authorized to transact business in this state and maintains a bona     |
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 2|fide establishment for transacting such business within this state.    |
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 3|This provision does not apply to any construction contract for which   |
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 4|federal funds are available for expenditure when its provisions may    |
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 5|be in conflict with federal law or regulation.                         |
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 6|    C.  Except as provided in subsection E of this section, other      |
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 7|construction contracts for the purpose of making any public            |
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 8|improvements or constructing any public building or making repairs     |
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 9|to the same for Fifty Thousand Dollars ($50,000.00) One Hundred        |
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10|Thousand Dollars ($100,000.00) or less shall be let and awarded to     |
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11|the lowest responsible bidder by receipt of written bids or awarded    |
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12|on the basis of competitive quotes to the lowest responsible           |
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13|qualified contractor.  Work may be commenced in accordance with the    |
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14|purchasing policies of the public agency.                              |
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15|    D.  Except as provided in subsection E of this section, other      |
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16|construction contracts for less than Five Thousand Dollars             |
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17|($5,000.00) Ten Thousand Dollars ($10,000.00) may be negotiated with   |
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18|a qualified contractor.  Work may be commenced in accordance with      |
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19|the purchasing policies of the public agency.                          |
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20|    E.  The provisions of this subsection shall apply to public        |
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21|construction for minor maintenance or minor repair work to public      |
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22|school district property.  Other construction contracts for less       |
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23|than Twenty-five Thousand Dollars ($25,000.00) may be negotiated       |
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24|with a qualified contractor.  Construction contracts equal to or       |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 6
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 1|greater than Twenty-five Thousand Dollars ($25,000.00) Fifty           |
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 2|Thousand Dollars ($50,000.00) but less than Fifty Thousand Dollars     |
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 3|($50,000.00) One Hundred Thousand Dollars ($100,000.00) shall be let   |
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 4|and awarded to the lowest responsible bidder by receipt of written     |
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 5|bids.  No work shall be commenced on any construction contract until   |
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 6|a written contract is executed and proof of insurance has been         |
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 7|provided by the contractor to the awarding public agency.              |
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 8|    F.  The Construction and Properties Division of the Office of      |
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 9|Management and Enterprise Services may award contracts using best      |
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10|value competitive proposals.  As used in this subsection, "best        |
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11|value" means an optional contract award system which can evaluate      |
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12|and rank submitted competitive performance proposals to identify the   |
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13|proposal with the greatest value to the state.  The Office of          |
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14|Management and Enterprise Services, pursuant to the Administrative     |
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15|Procedures Act, shall promulgate rules necessary to implement the      |
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16|provisions of this subsection.                                         |
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17|    G.  1.  A public agency shall not let or award a public            |
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18|construction contract exceeding One Hundred Thousand Dollars           |
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19|($100,000.00) or a construction management trade contract or           |
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20|subcontract exceeding 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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24|including but not limited to open competitive bidding after            |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 7
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 1|solicitation for sealed bids.  A public agency shall not let or        |
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 2|award a public construction contract exceeding Five Thousand Dollars   |
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 3|($5,000.00) Ten Thousand Dollars ($10,000.00) up to Fifty Thousand     |
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 4|Dollars ($50,000.00) One Hundred Thousand Dollars ($100,000.00) to     |
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 5|any contractor affiliated with a purchasing cooperative unless the     |
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 6|purchasing cooperative and the contractor 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 submission of a written bid upon notice of competitive       |
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 9|bidding.                                                               |
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10|    2.  A purchasing cooperative and its affiliated contractors        |
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11|shall not be allowed to bid on any public construction contract        |
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12|exceeding One Hundred Thousand Dollars ($100,000.00) or any            |
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13|construction management trade contract or subcontract exceeding        |
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14|Fifty Thousand Dollars ($50,000.00) unless the purchasing              |
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15|cooperative and its affiliated contractors have complied with all of   |
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16|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 purchasing cooperative and its        |
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19|affiliated contractors shall not be allowed to bid on any public       |
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20|construction contract exceeding Two Thousand Five Hundred Dollars      |
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21|($2,500.00) Five Thousand Dollars ($5,000.00) unless the purchasing    |
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22|cooperative and its affiliated contractors have complied with all of   |
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23|the provisions of the Public Competitive Bidding Act of 1974,          |
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24|                                                                       |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 8
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 1|including submission of a written bid upon notice of open              |
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 2|competitive bidding.                                                   |
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 3|    SECTION 3.     AMENDATORY     61 O.S. 2011, Section 103.5, is      |
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 4|amended to read as follows:                                            |
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 5|    Section 103.5  For purposes of the provisions of the Public        |
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 6|Competitive Bidding Act of 1974, contracts not exceeding Fifty         |
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 7|Thousand Dollars ($50,000.00) One Hundred Thousand Dollars             |
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 8|($100,000.00) entered into solely for right-of-way clearance by the    |
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 9|Transportation Commission and the Oklahoma Transportation Authority    |
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10|for the exclusive purpose of demolition and removal of buildings,      |
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11|foundations, slab floors, stem walls, steps, brush, shrubs,            |
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12|brickbats or stone and all rubbish, scrap iron, fencing, and debris,   |
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13|and the installation of new right-of-way fencing, shall not be         |
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14|considered to be public construction contracts and shall not be        |
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15|required to be open for competitive bidding.                           |
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16|    SECTION 4.     AMENDATORY     Section 1, Chapter 288, O.S.L.       |
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17|2014 (61 O.S. Supp. 2020, Section 103.7), is amended to read as        |
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18|follows:                                                               |
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19|    Section 103.7  For purposes of the provisions of the Public        |
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20|Competitive Bidding Act of 1974, contracts entered into solely for     |
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21|projects and activities by the Oklahoma Department of Wildlife         |
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22|Conservation relating to fish and wildlife conservation shall be let   |
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23|and awarded using the competitive bidding process as set forth in      |
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24|the Public Competitive Bidding Act of 1974.  However, for contracts    |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 9
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 1|of Twenty-five Thousand Dollars ($25,000.00) Fifty Thousand Dollars    |
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 2|($50,000.00) or less the Department may administer the competitive     |
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 3|bidding process and let and award the contract itself rather than      |
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 4|the Construction and Properties Division of the Office of Management   |
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 5|and Enterprise Services.                                               |
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 6|    SECTION 5.     AMENDATORY     61 O.S. 2011, Section 104, as last   |
  |                                                                       |
 7|amended by Section 1, Chapter 40, O.S.L. 2017 (61 O.S. Supp. 2020,     |
  |                                                                       |
 8|Section 104), is amended to read as follows:                           |
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 9|    Section 104.  All proposals to award public construction           |
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10|contracts shall be made equally and uniformly known by the awarding    |
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11|public agency to all prospective bidders and the public in the         |
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12|following manner:                                                      |
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13|    1.  Notice thereof shall be given by publication in a newspaper    |
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14|of general circulation and published in the county where the work,     |
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15|or the major part of it, is to be done, such notice by publication     |
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16|to be published in two consecutive weekly issues of the newspaper,     |
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17|with the first publication thereof to be at least twenty-one (21)      |
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18|days prior to the date set for opening bids; and                       |
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19|    2.  Notice thereof shall be sent to one in-state trade or          |
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20|construction publication for their use and information whenever the    |
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21|estimated cost of the public construction contract exceeds One         |
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22|Hundred Thousand Dollars ($100,000.00) or the cost of the              |
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23|construction management trade contract or subcontract exceeds Fifty    |
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24|Thousand Dollars ($50,000.00); provided, however, this section shall   |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 10
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 1|not be construed to require the publication of the notice in such      |
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 2|trade or construction publication or the requirement to provide the    |
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 3|notice to more than one in-state trade or construction publication     |
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 4|or to any out-of-state trade or construction publications.             |
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 5|    SECTION 6.     AMENDATORY     61 O.S. 2011, Section 107, as        |
  |                                                                       |
 6|amended by Section 313, Chapter 304, O.S.L. 2012 (61 O.S. Supp.        |
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 7|2020, Section 107), is amended to read as follows:                     |
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 8|    Section 107.  A.  A bidder on a public construction contract       |
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 9|exceeding One Hundred Thousand Dollars ($100,000.00) or a              |
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10|construction management trade contract or subcontract exceeding        |
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11|Fifty Thousand Dollars ($50,000.00) shall accompany the bid with:      |
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12|    1.  A certified check, cashier's check or bid bond equal to five   |
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13|percent (5%) of the bid, which shall be deposited with the awarding    |
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14|public agency as a guaranty; or                                        |
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15|    2.  An irrevocable letter of credit containing terms the           |
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16|Construction and Properties Division of the Office of Management and   |
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17|Enterprise Services prescribes, issued by a financial institution      |
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18|insured by the Federal Deposit Insurance Corporation or the Federal    |
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19|Savings and Loan Insurance Corporation for the benefit of the state,   |
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20|on behalf of the awarding public agency, in an amount equal to five    |
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21|percent (5%) of the bid.  The awarding public agency shall deposit     |
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22|the irrevocable letter of credit with the Division.                    |
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23|    B.  The cost of republication of the notice to bidders, actual     |
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24|expenses incurred by reason of the bidder's default and the            |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 11
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 1|difference between the low bid of the defaulting bidder and the        |
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 2|amount of the bid of the bidder to whom the contract is subsequently   |
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 3|awarded, but not to exceed the amount of the certified check,          |
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 4|cashier's check, bid bond or irrevocable letter of credit may, at      |
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 5|the discretion of the awarding public agency, be forfeited to the      |
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 6|awarding public agency in the event the apparently successful bidder   |
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 7|fails to execute the contract or fails to provide the required bonds   |
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 8|or irrevocable letters of credit and insurance to the awarding         |
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 9|public agency.                                                         |
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10|    C.  The public agency shall, upon receipt of notice from the       |
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11|awarding public agency, return a certified or cashier's check, bid     |
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12|bond, or irrevocable letter of credit to the successful bidder on      |
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13|execution and delivery of the contract and required bonds or           |
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14|irrevocable letters of credit and insurance.  Checks of unsuccessful   |
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15|bidders shall be returned to them in accordance with the terms of      |
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16|the bid solicitation.                                                  |
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17|    D.  Nothing contained herein shall be construed so as to prevent   |
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18|the awarding public agency or the courts from exonerating the bidder   |
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19|and other parties to the bid security document from liability upon a   |
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20|timely showing that the bidder committed what the courts have          |
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21|determined under the common law to be an excusable bidding error and   |
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22|for that reason it would not be equitable to enforce the bid           |
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23|security.                                                              |
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24|                                                                       |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 12
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 1|    SECTION 7.     AMENDATORY     61 O.S. 2011, Section 113, as last   |
  |                                                                       |
 2|amended by Section 3, Chapter 299, O.S.L. 2019 (61 O.S. Supp. 2020,    |
  |                                                                       |
 3|Section 113), is amended to read as follows:                           |
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 4|    Section 113.  A.  Except as otherwise provided by law, within      |
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 5|the period of time, not to exceed sixty (60) days, specified in the    |
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 6|bid notice by the awarding public agency, a contract embodying the     |
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 7|terms set forth in the bidding documents shall be executed by the      |
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 8|awarding public agency or, where construction management at-risk is    |
  |                                                                       |
 9|the project delivery method, by the construction manager and the       |
  |                                                                       |
10|successful bidder.  No bidder shall obtain any property right in a     |
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11|contract awarded under the provisions of the Public Competitive        |
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12|Bidding Act of 1974 until the contract has been fully executed by      |
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13|both the bidder and the awarding public agency.                        |
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14|    B.  Except as otherwise provided by law, within the period of      |
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15|time specified in subsection A of this section, the following shall    |
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16|be provided by the contractor to the awarding public agency for        |
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17|public construction contracts exceeding One Hundred Thousand Dollars   |
  |                                                                       |
18|($100,000.00) or construction management trade contracts or            |
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19|subcontracts exceeding Fifty Thousand Dollars ($50,000.00):            |
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20|    1.  A bond or irrevocable letter of credit complying with the      |
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21|provisions of Section 1 of this title;                                 |
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22|    2.  A bond in a sum equal to the contract price, with adequate     |
  |                                                                       |
23|surety, or an irrevocable letter of credit containing terms            |
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24|prescribed by the Construction and Properties Division of the Office   |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 13
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 1|of Management and Enterprise Services issued by a financial            |
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 2|institution insured by the Federal Deposit Insurance Corporation or    |
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 3|the Federal Savings and Loan Insurance Corporation for the benefit     |
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 4|of the state, on behalf of the awarding public agency, in a sum        |
  |                                                                       |
 5|equal to the contract price, to ensure the proper and prompt           |
  |                                                                       |
 6|completion of the work in accordance with the provisions of the        |
  |                                                                       |
 7|contract and bidding documents;                                        |
  |                                                                       |
 8|    3.  A bond in a sum equal to the contract price or an              |
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 9|irrevocable letter of credit containing terms as prescribed by the     |
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10|Division issued by a financial institution insured by the Federal      |
  |                                                                       |
11|Deposit Insurance Corporation or the Federal Savings and Loan          |
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12|Insurance Corporation for the benefit of the state, on behalf of the   |
  |                                                                       |
13|awarding public agency, in a sum equal to the contract price, to       |
  |                                                                       |
14|protect the awarding public agency against defective workmanship and   |
  |                                                                       |
15|materials for a period of one (1) year after acceptance of the         |
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16|project, except when the awarding public agency is the Department of   |
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17|Transportation or the Oklahoma Turnpike Authority, in such case the    |
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18|period shall be for one (1) year after project completion; and         |
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19|    4.  Public liability and workers' compensation insurance during    |
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20|construction in reasonable amounts.  A public agency may require the   |
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21|contractor to name the public agency and its architects or             |
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22|engineers, or both, as an additional assured under the public          |
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23|liability insurance, which requirement, if made, shall be              |
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24|specifically set forth in the bidding documents.                       |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 14
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 1|    C.  A single irrevocable letter of credit may be used to satisfy   |
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 2|paragraphs 1, 2 and 3 of subsection B of this section, provided such   |
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 3|single irrevocable letter of credit meets all applicable               |
  |                                                                       |
 4|requirements of subsection B of this section.                          |
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 5|    If the contractor needs additional time in which to obtain the     |
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 6|bond required pursuant to subsection B of this section, the            |
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 7|contractor may request and the awarding agency may allow the           |
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 8|contractor an additional sixty (60) days in which to obtain the        |
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 9|bond.                                                                  |
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10|    D.  1.  After the award of a contract, but prior to its            |
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11|execution, an awarding public agency, upon discovery of an             |
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12|administrative error in the award process that would void an           |
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13|otherwise valid award, may suspend the time of execution of the        |
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14|contract.  The agency may rescind the award and readvertise for        |
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15|bids, or may direct correction of the error and award the contract     |
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16|to the lowest responsible bidder, whichever shall be in the best       |
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17|interests of the state.                                                |
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18|    2.  If the awarding public agency has a governing body, the        |
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19|agency shall, at the next regularly scheduled public business          |
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20|meeting of the governing body of the agency, upon the record,          |
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21|present to the governing body that an error has been made in the       |
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22|award process and shall state the nature of the error.  The            |
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23|governing body, upon presentation of the facts of the error, may       |
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24|rescind the award and readvertise for bids, or may direct correction   |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 15
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 1|of the error and award the contract to the lowest responsible          |
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 2|bidder, whichever shall be in the best interests of the state.         |
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 3|    E.  No public agency shall require for any public construction     |
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 4|project, nor shall any general contractor submit a project bid based   |
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 5|on acquiring or participating in, any wrap-up, wrap-around, or         |
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 6|controlled insurance program.  For the purposes of this subsection,    |
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 7|"wrap-up, wrap-around, or controlled insurance program" means any      |
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 8|insurance program that has the effect of disabling or rendering        |
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 9|inapplicable any workers' compensation, commercial general             |
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10|liability, builders' risk, completed operations, or excess liability   |
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11|insurance coverage carried by a subcontractor that is engaged or to    |
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12|be engaged on a public construction project unless this is a cost      |
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13|savings to the public or the need exists for a specialized or          |
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14|complex insurance program and shall not apply to contracts less than   |
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15|Seventy-five Million Dollars ($75,000,000.00).                         |
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16|    F.  This act shall not apply to the public construction projects   |
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17|of constitutional agencies which had authorized a wrap-up,             |
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18|wrap-around, or controlled insurance program on or before April 11,    |
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19|2000.                                                                  |
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20|    SECTION 8.     AMENDATORY     61 O.S. 2011, Section 119.1, is      |
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21|amended to read as follows:                                            |
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22|    Section 119.1  A.  If no timely bid is received after bid          |
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23|notices have been published on any proposed public construction        |
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24|contract which does not exceed One Hundred Thousand Dollars            |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 16
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 1|($100,000.00) or on any proposed construction management trade         |
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 2|contract or subcontract which does not exceed Fifty Thousand Dollars   |
  |                                                                       |
 3|($50,000.00):                                                          |
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 4|    1.  The governing body of a county, city, town or school           |
  |                                                                       |
 5|district may direct its employees or agents to negotiate the           |
  |                                                                       |
 6|contract with a prospective contractor; or                             |
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 7|    2.  The state agency, as defined in Section 202 of this title,     |
  |                                                                       |
 8|shall request the State Construction Administrator of the              |
  |                                                                       |
 9|Construction and Properties Division to negotiate a contract on its    |
  |                                                                       |
10|behalf.                                                                |
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11|    B.  The amount of a public construction contract which may be      |
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12|awarded by the governing body pursuant to this section shall not       |
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13|exceed One Hundred Thousand Dollars ($100,000.00), nor shall the       |
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14|amount of a construction management trade contract or subcontract      |
  |                                                                       |
15|awarded by the governing body pursuant to this section exceed Fifty    |
  |                                                                       |
16|Thousand Dollars ($50,000.00), and the work to be performed shall be   |
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17|as specified in the initial bidding documents.  The contract shall     |
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18|be executed within six (6) months after the date initially set for     |
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19|opening of bids.  The contract and contract procedure shall conform    |
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20|to all other applicable provisions of the Public Competitive Bidding   |
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21|Act of 1974.                                                           |
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22|    SECTION 9.     AMENDATORY     61 O.S. 2011, Section 130, as last   |
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23|amended by Section 1, Chapter 293, O.S.L. 2016 (61 O.S. Supp. 2020,    |
  |                                                                       |
24|Section 130), is amended to read as follows:                           |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 17
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 1|    Section 130.  A.  The provisions of the Public Competitive         |
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 2|Bidding Act of 1974 with reference to notice and bids shall not        |
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 3|apply to an emergency if:                                              |
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 4|    1.  The governing body of a public agency declares by a            |
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 5|two-thirds (2/3) majority vote of all of the members of the            |
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 6|governing body that an emergency exists;                               |
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 7|    2.  The Transportation Commission and the Oklahoma Tourism and     |
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 8|Recreation Commission, by majority vote of all the members of each     |
  |                                                                       |
 9|Commission, declare that an emergency exists; or                       |
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10|    3.  The chief administrative officer of a public agency without    |
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11|a governing body declares that an emergency exists.                    |
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12|    B.  The governing body of a public agency may, upon approval of    |
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13|two-thirds (2/3) majority of all of the members of the governing       |
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14|body, delegate to the chief administrative officer of a public         |
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15|agency the authority to declare an emergency whereby the provisions    |
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16|of the Public Competitive Bidding Act of 1974 with reference to        |
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17|notice and bids shall not apply to contracts less than Seventy-five    |
  |                                                                       |
18|Thousand Dollars ($75,000.00) One Hundred Fifty Thousand Dollars       |
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19|($150,000.00) in amount; provided, such authority of the Department    |
  |                                                                       |
20|of Transportation and the Oklahoma Turnpike Authority shall not        |
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21|extend to any contract exceeding Seven Hundred Fifty Thousand          |
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22|Dollars ($750,000.00) in amount and such authority of the Department   |
  |                                                                       |
23|of Corrections shall not extend to any contract exceeding Two          |
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24|Hundred Fifty Thousand Dollars ($250,000.00) in amount for             |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 18
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 1|situations in which the emergency impacts the conditions of            |
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 2|confinement, health and safety of correctional officers and inmates    |
  |                                                                       |
 3|in the custody of the Department of Corrections.                       |
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 4|    C.  Upon approval of a two-thirds (2/3) majority vote, the         |
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 5|Oklahoma Conservation Commission may delegate to the Executive         |
  |                                                                       |
 6|Director the authority to declare an emergency and set a monetary      |
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 7|limit for the declaration.  The provisions of this subsection may      |
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 8|only be used for the purpose of responding to an emergency involving   |
  |                                                                       |
 9|the reclamation of abandoned coal mines or the repair of damaged       |
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10|upstream floodwater retarding structures.                              |
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11|    D.  An emergency declared by the Board of Corrections pursuant     |
  |                                                                       |
12|to subsection C of Section 65 of this title shall exempt the           |
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13|Department of Corrections from the limits which would otherwise be     |
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14|imposed pursuant to subsection B of this section for the contracting   |
  |                                                                       |
15|and construction of new or expanded correctional facilities.           |
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16|    E.  The chief administrative officer of a public agency with a     |
  |                                                                       |
17|governing body shall notify the governing body within ten (10) days    |
  |                                                                       |
18|of the declaration of an emergency if the governing body did not       |
  |                                                                       |
19|approve the emergency.  The notification shall contain a statement     |
  |                                                                       |
20|of the reasons for the action, and shall be recorded in the official   |
  |                                                                       |
21|minutes of the governing body.                                         |
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22|    F.  Emergency as used in this section shall be limited to          |
  |                                                                       |
23|conditions resulting from a sudden unexpected happening or             |
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24|                                                                       |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 19
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 1|unforeseen occurrence or condition whereby the public health or        |
  |                                                                       |
 2|safety is endangered.                                                  |
  |                                                                       |
 3|    G.  The chief administrative officer of a public agency shall      |
  |                                                                       |
 4|report an emergency within ten (10) days of the emergency              |
  |                                                                       |
 5|declaration and include the official minutes of the governing body     |
  |                                                                       |
 6|of the public agency, if applicable, to the State Construction         |
  |                                                                       |
 7|Administrator of the Construction and Properties Division of the       |
  |                                                                       |
 8|Office of Management and Enterprise Services who shall compile an      |
  |                                                                       |
 9|annual report detailing all emergencies declared pursuant to this      |
  |                                                                       |
10|section during the previous calendar year.  The report shall be        |
  |                                                                       |
11|submitted to the Governor, the President Pro Tempore of the Senate,    |
  |                                                                       |
12|and the Speaker of the House of Representatives.                       |
  |                                                                       |
13|    SECTION 10.  This act shall become effective November 1, 2021.     |
  |                                                                       |
14|    Passed the House of Representatives the 2nd day of March, 2021.    |
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15|                                                                       |
  |                                                                       |
16|                                                                       |
  |                                     Presiding Officer of the House    |
17|                                                 of Representatives    |
  |                                                                       |
18|                                                                       |
  |    Passed the Senate the ___ day of __________, 2021.                 |
19|                                                                       |
  |                                                                       |
20|                                                                       |
  |                                                                       |
21|                                    Presiding Officer of the Senate    |
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22|                                                                       |
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23|                                                                       |
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24|                                                                       |
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arsid13788717 ENGR. H. B. NO. 2862                                 Page 20
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