STATE OF OKLAHOMA

1st Session of the 53rd Legislature (2011)

SENATE BILL 618	By:	Johnson (Constance)

AS INTRODUCED

An Act relating to the Oklahoma Privatization of State Functions Act; requiring certain contracts to contain certain provisions; specifying requirements; directing the Department of Central Services to develop and implement certain system; stating purpose; requiring contractors to submit certain plans to certain state agency; providing for promulgation of rules; providing for codification; and providing an effective date.

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 590.1 of Title 74, unless there is created a duplication in numbering, reads as follows:
A.  Any contract entered into pursuant to the Oklahoma Privatization of State Functions Act shall contain a provision requiring any contractor that contracts to provide a service that was previously provided by a state agency to, at minimum, subcontract with minority contractors at a rate equal to such minority group’s representation in the general population of the state, according to the latest census, and to comply with the Oklahoma Open Records Act.  The contract shall require the contractor and its subcontractors, with regard to the privatized service or activity, to:
1.  Keep and maintain as public any records that ordinarily and necessarily would be required by the state agency in order to perform the service or activity;
2.  Provide the public with access to such records under the same terms and conditions as the state agency would be required to provide the records;
3.  Ensure that records that are confidential and exempt are not disclosed except as authorized by law; and
4.  Meet all requirements for retaining records and transfer to the state agency, at no cost, all public records in possession of the contractor upon termination of the contract and destroy any duplicate public records that are confidential and exempt.
B.  All records stored electronically must be provided to the state agency in a format that is compatible with the information technology systems of the state agency.
SECTION 2.     NEW LAW     A new section of law to be codified in the Oklahoma Statutes as Section 590.2 of Title 74, unless there is created a duplication in numbering, reads as follows:
A.  The Department of Central Services shall develop and implement the Oklahoma Electronic Subcontracting Reporting System.  The purpose of the system is to track and report the expenditure of monies by a contractor on subcontractors pursuant to a contract with a state agency to privatize a service provided by the state agency.
B.  Any contractor that enters into a contract valued at Six Hundred Fifty Thousand Dollars ($650,000.00) or more that privatizes a service that the state agency provides shall submit a subcontract plan to the state agency.  The subcontract plan shall specify the subcontractors the contractor will use to fulfill the contract with the state agency and shall specify the amount of money the subcontractors will be paid.  The subcontract plan shall contain such other information as required by the state agency.  The information contained in the subcontract report shall be loaded into the Oklahoma Electronic Subcontracting Reporting System for the purpose of tracking the expenditure of monies by contractors to subcontractors to ensure that the contractor does not deviate from the subcontract report.  If the contractor deviates from the subcontract report, such information may be used as evaluation criteria for any future contracts with the state.
C.  The Department of Central Services shall promulgate rules for the development and use of the Oklahoma Electronic Subcontracting Reporting System.
SECTION 3.  This act shall become effective November 1, 2011.

53-1-1157	JT	1/19/2011 3:37:28 PM