Oklahoma § 74-85.45 - Oklahoma Minority Business Enterprise Assistance Act

§ 74-85.45. Oklahoma Minority Business Enterprise Assistance Act

Sections 2 through 10 of this act shall be known and may be

cited as the "Oklahoma Minority Business Enterprise Assistance Act".

Added by Laws 1987, c. 191, § 2, operative July 1, 1987.

§74-85.45a. Legislative intent.

It is recognized by this state that the preservation and

expansion of the American economic system of private enterprise is

through free competition, but it is also recognized that the

security and well-being brought about by such competition cannot be

realized unless the actual and potential capacity of minority

business enterprises is encouraged and developed. Therefore, it is

the intent of the Legislature that the state ensure that minority

business enterprises are not underrepresented in the area of

procurement of state contracts for construction, services, equipment

and goods. It is further the intent that this state provide for the

aggressive solicitation of minority business enterprises, provide a

feasibility study on a Small Business Surety Bond Guaranty Program,

provide other programs targeted for assisting minority business

enterprises in qualifying for state bids, and establish a percentage

preference bid program for minority business enterprises who desire

to participate in such program.

Added by Laws 1987, c. 191, § 3, operative July 1, 1987.

§74-85.45b. Definitions.

For purposes of the Oklahoma Minority Business Enterprise

Assistance Act:

1. "Minority" means a person who is a lawful resident of the

State of Oklahoma and who is:

a.

Black (a person having origins in any of the black

racial groups of Africa),

Oklahoma Statutes - Title 74. State Government

b.

Hispanic (a person of Mexican, Puerto Rican, Cuban,

Central or South American descent),

c.

Asian American (a person having origins in any of the

original peoples of the Far East, Southeast Asia, the

Indian subcontinent, or the Pacific Islands), or

d.

American Indian and Alaskan Native (a person having

origins in any of the original peoples of North

America);

2. "Minority business enterprise" means a small business

concern, as defined pursuant to Section 3 of the Small Business Act

and implementing regulations, which is owned and controlled by one

or more minorities and is authorized to do and is doing business

under the laws of this state, paying all taxes duly assessed, and

domiciled within this state. "Owned and controlled" means a

business:

a.

which is at least fifty-one percent (51%) owned by one

or more minorities or, in the case of a publicly owned

business, at least fifty-one percent (51%) of all

classes or types of the stock is owned by one or more

minorities, and

b.

whose management and daily business operations are

controlled by one or more such individuals;

3. "Office" means the Office of Management and Enterprise

Services; and

4. "Person" means an individual, sole proprietorship,

partnership, association, or corporation.

Added by Laws 1987, c. 191, § 4, operative July 1, 1987. Amended by

Laws 2012, c. 304, § 758.

§74-85.45c. Bid-preference program.

A. For competitive bids submitted to the state pursuant to the

Oklahoma Central Purchasing Act or pursuant to the Public

Competitive Bidding Act of 1974 by certified minority businesses,

the State Purchasing Director shall prepare and implement a bidpreference program. The program shall require that a percentage be

added to the price of the lowest bid and if the certified minority

business enterprise submits a bid that falls between the lowest bid

plus the percentage, it shall receive the contract.

Provided however, in no instance shall the minority business

enterprise be entitled to both a minority bid preference under this

act and the preference for state-produced goods pursuant to Section

85.32 of this title.

B. The minority business enterprise preference program shall be

implemented on the following schedule:

1. For the 1988-1989 fiscal year, the State Purchasing Director

shall certify the percent of funds expended on state contracts which

have been awarded to minority business enterprises certified

Oklahoma Statutes - Title 74. State Government

pursuant to Section 7 of this act. If the State Purchasing Director

certifies that a minimum of ten percent (10%) of the funds expended

on state contracts were expended on contracts awarded to minority

business enterprises certified pursuant to Section 7 of this act

then the minority percentage bid preference shall be zero. If the

percentage of such funds expended on minority business enterprises

is less than ten percent (10%) then a five percent (5%) bid

preference shall go into effect; and

2. For each following fiscal year, the State Purchasing

Director shall certify the percent of funds expended on state

contracts which have been awarded to minority business enterprises.

When the State Purchasing Director certifies that a minimum of ten

percent (10%) of the funds expended on state contracts are expended

on contracts awarded to minority business enterprises then the

percentage bid preference shall remain at that preference level for

a period of one (1) year. After that one-year period, unless the

minority bid preference level is zero, the State Purchasing Director

shall reduce by one percent (1%) each year the bid preference level

unless the required percent of funds expended on state contracts

awarded to minority business enterprises decreases below the ten

percent (10%) minimum. At that time, the State Purchasing Director

shall increase the percentage bid preference one percent (1%) each

year to a maximum of five percent (5%) to attain the minimum ten

percent (10%) goal of the program. Each year the State Purchasing

Director may increase or decrease the bid percentage level in

compliance with this section to maintain the minimum ten percent

(10%) goal of the program.

C. The Department of Transportation is exempted from the

provisions of the Minority Business Enterprise Assistance Act.

Added by Laws 1987, c. 191, § 5, operative July 1, 1987.

§74-85.45d. Inability to award contract under preference program.

In the event that the State Purchasing Director is unable to

award a contract pursuant to the provisions of Section 5 of this

act, the award may be placed pursuant to the normal competitive bid

and award provisions.

Added by Laws 1987, c. 191, § 6, operative July 1, 1987.

§74-85.45e. Certification as minority business enterprise.

A. Any minority business enterprise that desires to participate

in the minority bid preference program and to bid upon any state

contract within the purview of the State Purchasing Director of the

Office of Management and Enterprise Services or any other state

contract to be let by any state agency not subject to The Oklahoma

Central Purchasing Act shall first apply to the State Purchasing

Director of the Office of Management and Enterprise Services for

certification.

Oklahoma Statutes - Title 74. State Government

B. The State Purchasing Director of the Office of Management

and Enterprise Services shall certify a business which meets the

eligibility requirement of this section to qualify as a minority

business enterprise. To qualify as a minority business enterprise,

the business shall:

1. Be a minority business enterprise;

2. Submit any documentary evidence required by the rules and

regulations of the Office of Management and Enterprise Services to

support its status as a minority business enterprise;

3. Sign an affidavit stating that it is a minority business

enterprise;

4. Be qualified to bid pursuant to the provisions of The

Oklahoma Central Purchasing Act; and

5. Present:

a. an application including the entire business history of

the operation,

b. birth certificates for all minority principals,

c. if Native American, tribal registration

card/certificate,

d. current resumes on all principals, key managers and

other key personnel,

e. a current financial statement,

f. proof of investment by principals,

g. loan agreements,

h. lease/rental agreement for space, equipment,

i. evidence of latest bond,

j. if the applicant is a sole proprietor, he shall also

include: a copy of a bank signature card,

k. if the applicant is a partnership a copy of the

partnership agreement shall also be included, and

l. if the applicant is a corporation it shall also

include: articles of organization, corporation bylaws,

copies of all stock certificates, minutes of the first

corporate organizational meeting, bank resolution on

all company accounts, and a copy of the latest U.S.

corporate tax return.

C. The State Purchasing Director of the Office of Management

and Enterprise Services shall prepare and maintain a list of

certified minority business enterprises.

D. The State Purchasing Director of the Office of Management

and Enterprise Services may deny certification to any minority

business enterprise in accordance with the provisions of this act

and the rules and regulations of the Office of Management and

Enterprise Services. Any person adversely affected by an order of

the State Purchasing Director of the Office of Management and

Enterprise Services denying certification as a minority business

Oklahoma Statutes - Title 74. State Government

enterprise may appeal as provided in the Administrative Procedures

Act.

Added by Laws 1987, c. 191, § 7, operative July 1, 1987. Amended by

Laws 2012, c. 304, § 759.

§74-85.45f. Report on contracts awarded to minority business.

On or before July 15 of each year, the State Purchasing Director

shall submit a report to the Governor, the Speaker of the House of

Representatives and the President Pro Tempore of the Senate on the

status of the percentile of state funds expended on contracts

awarded to minority business in the preceding fiscal year and

provide any report, statistic or information concerning the

compliance of the Office of Management and Enterprise Services with

the Oklahoma Minority Business Enterprise Assistance Act.

Added by Laws 1987, c. 191, § 8, operative July 1, 1987. Amended by

Laws 1998, c. 364, § 27, emerg. eff. June 8, 1998; Laws 2012, c.

304, § 760.

§74-85.45g. Assignment of contracts.

If a minority business enterprise is awarded a contract by this

state pursuant to the Oklahoma Minority Business Enterprise

Assistance Act, said business shall not assign the rights of the

contract to any other business without prior written approval of the

State Purchasing Director of the Office of Management and Enterprise

Services verifying that such business is also a minority business

enterprise certified as such by the Office of Management and

Enterprise Services. Any such assignment made without the prior

written approval of the State Purchasing Director of the Office of

Management and Enterprise Services shall be deemed unlawful pursuant

to paragraph 5 of subsection A of Section 85.45h of this title.

Such unlawful assignment shall be voidable by the Office of

Management and Enterprise Services.

Added by Laws 1987, c. 191, § 9, operative July 1, 1987. Amended by

Laws 2012, c. 304, § 761.

§74-85.45h. Prohibited acts - Penalty.

A. It shall be unlawful for a person to:

1. Knowingly and with intent to defraud, fraudulently obtain,

retain, attempt to obtain or retain, or aid another in fraudulently

obtaining or retaining or attempting to obtain or retain,

certification as a minority business enterprise for the purposes of

this act.

2. Knowingly and willfully make a false statement with the

intent to defraud, whether by affidavit, report, or other

representation, to a state official or employee for the purpose of

influencing the certification or denial of certification of any

entity as a minority business enterprise.

Oklahoma Statutes - Title 74. State Government

3. Knowingly and willfully obstruct, impede, or attempt to

obstruct or impede any state official or employee who is

investigating the qualifications of a business entity which has

requested certification as a minority business enterprise.

4. Knowingly and willfully with intent to defraud, fraudulently

obtain, attempt to obtain, or aid another person in fraudulently

obtaining or attempting to obtain, public monies to which the person

is not entitled under this act.

5. Knowingly and willfully assign any contract awarded pursuant

to the Oklahoma Minority Business Enterprise Assistance Act to any

other business enterprise without prior written approval of the

State Purchasing Director pursuant to Section 85.45g of this title.

B. Any person convicted of violating any provision of the

Oklahoma Minority Business Enterprise Assistance Act shall be guilty

of a Class D1 felony offense, punishable by imprisonment as provided

for in subsections B through F of Section 20N of Title 21 of the

Oklahoma Statutes, or a fine of not more than Ten Thousand Dollars

($10,000.00), or by both such imprisonment and fine.

C. If a contractor, subcontractor, supplier, subsidiary,

principal or affiliate thereof, has been found to have violated this

act and that violation occurred within three (3) years of another

violation of this act, the Office of Management and Enterprise

Services shall prohibit that contractor, subcontractor, supplier,

subsidiary, or affiliate thereof, from entering into a state project

or state contract and from further bidding to a state entity, and

from being a subcontractor to a contractor for a state entity and

from being a supplier to a state entity.

Added by Laws 1987, c. 191, § 10, operative July 1, 1987. Amended

by Laws 1997, c. 133, § 585, eff. July 1, 1999; Laws 1999, 1st Ex.

Sess., c. 5, § 425, eff. July 1, 1999; Laws 2012, c. 304, § 762;

Laws 2025, c. 486, § 581, eff. Jan. 1, 2026.

NOTE: Laws 1998, 1st Ex. Sess., c. 2, § 23 amended the effective

date of Laws 1997, c. 133, § 585 from July 1, 1998, to July 1, 1999.

§74-85.45i. Studies to determine disparity in minority business.

No later than December 31, 1994, each municipality with a

population of three hundred thousand (300,000) or more according to

the latest Federal Decennial Census shall conduct a study to

determine the disparity, if any, in minority business contracts

awarded by such municipality, and to determine the feasibility of

the establishment of a percentage preference bid program that

provides for a minimum of five percent (5%) of the funds expended on

municipal contracts to be awarded to minority business enterprises

as certified by the Oklahoma State Purchasing Director under the

Oklahoma Minority Business Enterprise Assistance Act, Sections 85.45

through 85.45h of Title 74 of the Oklahoma Statutes.

Added by Laws 1994, c. 322, § 32, emerg. eff. June 8, 1994.

Oklahoma Statutes - Title 74. State Government

§74-85.45j. Renumbered as § 85.44D.1 of this title by Laws 2020, c.

98, § 30, eff. Nov. 1, 2020.

§74-85.45j.1.

2020.

Repealed by Laws 2020, c. 98, § 52, eff. Nov. 1,

§74-85.45j.11. Oklahoma Supplier Diversity Initiative.

A. There is hereby created the "Oklahoma Supplier Diversity

Initiative", which shall be a state-sponsored supplier diversity

program to provide a resource for state agencies and private

businesses to utilize diverse firms in procurement opportunities to

encourage growth in the economy of the state. The program shall

provide convenience for qualified and certified small business

enterprises and minority business enterprises in contracting

projects in underserved areas.

B. The program shall allow diverse business enterprises to

register with the Office of Management and Enterprise Services and

allow registered vendors to be automatically notified of

opportunities to do business with the state for specific

commodities. The program shall provide for simplified vendor

registration processes.

C. The program shall authorize the Oklahoma Department of

Commerce to develop a diversity certification program to qualify and

certify diverse business enterprises for the state.

D. To qualify for the program, businesses shall have less than

five hundred total employees, an annual revenue equal to or less

than Twenty-five Million Dollars ($25,000,000.00) and be certified

as one of the following:

1. An Oklahoma Department of Transportation Disadvantaged

Business Enterprise;

2. Any of the following entities certified by the United States

Small Business Administration:

a.

Woman-Owned Small Business,

b.

Minority-Business Enterprise,

c.

Small Disadvantaged Business,

d.

Service-disabled Veteran-Owned Small Business,

e.

HUBZone Small Business Concern, and

f.

8(a) Business Development Program;

3. A Native American-owned Business; or

4. A Veteran-owned Business.

E. The Central Purchasing Division of the Office of Management

and Enterprise Services shall:

1. Amend the vendor registration process to require diversity

certification check off and size standard information; and

2. Create a search tool for all state agencies and public or

private entities to utilize to obtain contact information for

Oklahoma Statutes - Title 74. State Government

diverse firms for the purpose of promoting procurement opportunities

within the state.

F. On or before September 1 of each year, the State Purchasing

Director shall submit a report to the Governor, the Speaker of the

House of Representatives and the President Pro Tempore of the Senate

on the status of the percentile of state funds expended on contracts

awarded to a certified Oklahoma Department of Transportation

Disadvantaged Business Enterprise and all of the entities certified

by the United States Small Business Administration mentioned in

subsection D of this section in the preceding fiscal year. The

report may include related economic impacts when applicable. The

report, statistics or other information concerning the participation

in the program shall be retained by the Office of Management and

Enterprise Services.

G. The Oklahoma Department of Commerce shall promulgate rules

to create and administer the Oklahoma Supplier Diversity Initiative.

Added by Laws 2021, c. 476, § 1, eff. Nov. 1, 2021.

§74-85.45k. State Travel Office.

A. There is hereby created the State Travel Office within the

Purchasing Division of the Office of Management and Enterprise

Services.

B. All state agencies and departments of this state may make

arrangements for all air travel on scheduled commercial airlines for

state employees required to travel in the course of their official

duties and for all other persons traveling at state expense through

the State Travel Office, except when the state agency determines

that:

1. The air travel services can be secured at a cost less than

that which can be secured by the State Travel Office; or

2. The air travel originates from a location outside the state

and it would be impractical to arrange for the air travel through

the State Travel Office; or

3. The air travel is necessitated by an emergency and time does

not permit utilization of the State Travel Office's services; or

4. The air travel is part of a package arrangement made by the

organization scheduling the meeting or conference.

C. All claims made for reimbursement shall contain a statement

showing the reason for the exemption.

D. The State Travel Office shall promulgate rules and contract

specifications to which the contract travel agencies shall be

subject. The rules and specifications shall be drawn with the

intent of obtaining the lowest available fares for scheduled

commercial air travel.

E. At the end of each month the contract travel agencies shall

furnish a statement, if requested, in a form approved by the State

Travel Office, showing certain details of all travel arrangements

Oklahoma Statutes - Title 74. State Government

handled to each state agency for which the contract travel agencies

have furnished their services and shall also furnish copies of the

statements to the State Travel Office.

Added by Laws 1985, c. 271, § 1, eff. Nov. 1, 1985. Amended by Laws

1986, c. 203, § 1, eff. Nov. 1, 1986; Laws 1993, c. 204, § 1, eff.

Sept. 1, 1993; Laws 1998, c. 371, § 12, eff. Nov. 1, 1998.

Renumbered from § 79 of this title by Laws 1998, c. 371, § 15, eff.

Nov. 1, 1998. Amended by Laws 2012, c. 106, § 4; Laws 2013, c. 15,

§ 101, emerg. eff. April 8, 2013; Laws 2019, c. 30, § 1, eff. Nov.

1, 2019.

NOTE: Laws 2012, c. 304, § 764 repealed by Laws 2013, c. 15, § 102,

emerg. eff. April 8, 2013.

§74-85.45l. Trip Optimizer system – Purpose and application Exceptions.

A. Each state agency, board, commission or other entity

organized within the executive department of state government shall

use the Trip Optimizer system of the Office of Management and

Enterprise Services in computing the optimum method and cost for

travel by state employees using a motor vehicle where the travel

will exceed one hundred (100) miles per day and the employee is not

driving a state-owned or -leased dedicated vehicle. For purposes of

this section, "dedicated vehicle" means a vehicle that has been

assigned to the employee.

B. The provisions of this section shall be used to determine

the most cost-effective method of travel by motor vehicles, whether

such vehicles are owned by the agency, leased by the agency or by

the employee, and shall be applicable for purposes of determining

the maximum authorized amount of any travel reimbursement for

employees of such agencies related to vehicle usage.

C. A nonappropriated state agency, that employs persons who use

personal vehicles as part of their regular duties and who are

reimbursed for travel expenses by the agency shall not be required

to utilize the Trip Optimizer system with regard to the travel

expenses of such employees. As used in this section,

"nonappropriated state agency" means an entity within the executive

branch of government that does not receive any of its funding

through the annual legislative appropriations process.

D. The maximum authorized amount of travel reimbursement

related to vehicle usage shall be the lowest cost option as

determined by the Trip Optimizer system. All travel claims

submitted for reimbursement shall include the results of the Trip

Optimizer system indicating the lowest cost option for travel by the

state employee.

E. State employees may be exempt from the reimbursement

requirements of the Trip Optimizer system, provided the state

employees utilize a personally owned vehicle and seek reimbursement

Oklahoma Statutes - Title 74. State Government

according to the schedule referenced in subsection F of this

section.

F. The Office of Management and Enterprise Services shall

publish a schedule of reimbursement rates for state employee travel.

The schedule may apply to exemptions claimed under subsection E of

this section. The schedule may categorize reimbursement rates by

type of vehicle and shall not exceed standard mileage reimbursement

rates as established by the Internal Revenue Service.

G. In providing a calculation of rates, the Trip Optimizer

system shall account for the distance that an employee must travel

to pick up a rental or state fleet vehicle.

H. In providing a calculation of rates, the Trip Optimizer

system shall account for the long-term rate discounts offered

through the state's purchasing contract for vehicle rentals.

Added by Laws 2009, c. 152, § 1, eff. July 1, 2009. Amended by Laws

2011, c. 158, § 1, eff. Nov. 1, 2011; Laws 2012, c. 316, § 6, eff.

Nov. 1, 2012; Laws 2013, c. 15, § 103, emerg. eff. April 8, 2013;

Laws 2016, c. 112, § 1, eff. Nov. 1, 2016.

NOTE: Laws 2012, c. 304, § 765 repealed by Laws 2013, c. 15, § 104,

emerg. eff. April 8, 2013.

§74-85.45o. Short title.

Sections 1 through 5 of this act shall be known and may be cited

as the "Oklahoma Online Bidding Act".

Added by Laws 2003, c. 60, § 1, eff. July 1, 2003.

§74-85.45p. Intent of act.

The intent of the Oklahoma Online Bidding Act is:

1. To provide increased economy in state government procurement

activities and to maximize to the fullest extent practicable the

purchasing value of state monies while ensuring that procurements

are the most advantageous to state agencies;

2. To foster effective broad-based competition for state

procurement within the free enterprise system;

3. To modernize state statutes governing state government

procurement and permit the continued development of explicit and

thoroughly considered procurement policies and practices;

4. To ensure the fair and equitable treatment of all persons

who deal with state government procurement processes and to promote

increased public confidence in state government procurement

procedures; and

5. To provide an ongoing funding source for new and innovative

electronic procurement practices that would otherwise not be

possible due to previous funding practices and guidelines.

Added by Laws 2003, c. 60, § 2, eff. July 1, 2003.

§74-85.45q.

Definitions.

Oklahoma Statutes - Title 74. State Government

As used in the Oklahoma Online Bidding Act:

1. "Construction" shall be defined as provided by Section 202

of Title 61 of the Oklahoma Statutes for online bids subject to the

Public Facilities Act;

2. "Procurement" means buying, purchasing, renting, leasing, or

otherwise acquiring any goods, services, construction, or

information services. The term also means all functions that

pertain to the obtaining of any goods, services, construction, or

information services including, but not limited to, the description

of requirements, selection, and solicitation of sources,

negotiation, preparation and award of contracts, and all phases of

contract administration;

3. "State agencies" or "agencies" shall be defined as state

agency is defined in Section 85.2 of this title for online bids

subject to the Oklahoma Central Purchasing Act or as defined by

Section 202 of Title 61 of the Oklahoma Statutes for online bids

subject to the Public Facilities Act;

4. "Online bidding" means an electronic procurement process in

which state agencies receive bids over the Internet in a real-time,

competitive bidding event; and

5. "Solicitation" shall be defined as provided in Section 85.2

of this title.

Added by Laws 2003, c. 60, § 3, eff. July 1, 2003. Amended by Laws

2020, c. 98, § 25, eff. Nov. 1, 2020.

§74-85.45r. Requirements of online bidding process – Limitations on

application of act – Disclosure – Remedies.

A. When a state agency determines that online bidding is more

advantageous than other procurement methods provided by the laws of

this state, the agency may use online bidding to obtain bids as

authorized by the Oklahoma Central Purchasing Act or the Public

Facilities Act for purchases or acquisitions as defined in Section

85.2 of this title.

B. The online bidding process shall provide:

1. A designated opening and closing date and time. At the

opening date and time, state agencies shall begin accepting online

bids. Online bids shall be accepted until the designated closing

date and time, except as provided by paragraph 6 of this subsection;

2. The posting of all online bids electronically and updating

of bids on a real-time basis by state agencies;

3. The authorization for state agencies to require bidders to

register before the opening date and time and, as part of that

registration, require bidders to agree to any terms, conditions or

other requirements;

4. The authorization for state agencies to also require

potential bidders to prequalify as bidders and to restrict

Oklahoma Statutes - Title 74. State Government

solicitations to prequalified online bidders for bids submitted

pursuant to the Public Facilities Act;

5. The retention of the authority of state agencies to

determine the criteria that will be used as the basis for making

awards; and

6. The authorization for the State Purchasing Director, under

the Oklahoma Central Purchasing Act or the State Facilities Director

under the Public Facilities Act, in the event the state agency

determines that a significant error or event occurred that affected

the electronic receipt of any online bid by the agency, to determine

it is in the best interest of the state to allow the agency to

accept an electronic bid after the specified official closing date

and time.

C. The provisions of the Oklahoma Online Bidding Act shall not

apply to bid or proposal sealing or opening provisions found in any

state law other than the Oklahoma Central Purchasing Act or the

Public Facilities Act.

D. All bids submitted through the online bidding process

pursuant to the Oklahoma Online Bidding Act are subject to the same

public disclosure laws that govern bids received pursuant to sealed

bid procurement procedures pursuant to the Oklahoma Central

Purchasing Act or the Public Facilities Act.

E. All remedies available to state agencies and suppliers

through the sealed bid process pursuant to the Oklahoma Central

Purchasing Act or the Public Facilities Act are also available to

state agencies and online bidders in an online bidding process.

Added by Laws 2003, c. 60, § 4, eff. July 1, 2003. Amended by Laws

2012, c. 304, § 766; Laws 2020, c. 98, § 26, eff. Nov. 1, 2020.

§74-85.45s. Rules.

The Director of the Office of Management and Enterprise Services

shall promulgate rules to implement the Oklahoma Online Bidding Act.

Added by Laws 2003, c. 60, § 5, eff. July 1, 2003. Amended by Laws

2012, c. 304, § 767.