Question Submitted by: The Honorable Ryan Martinez, Oklahoma House of Representatives, District 39

2023 OK AG 4
CourtOklahoma Attorney General Reports
DecidedApril 13, 2023
StatusUnpublished

This text of 2023 OK AG 4 (Question Submitted by: The Honorable Ryan Martinez, Oklahoma House of Representatives, District 39) is published on Counsel Stack Legal Research, covering Oklahoma Attorney General Reports primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Question Submitted by: The Honorable Ryan Martinez, Oklahoma House of Representatives, District 39, 2023 OK AG 4 (Okla. Super. Ct. 2023).

Opinion

OSCN Found Document:Question Submitted by: The Honorable Ryan Martinez, Oklahoma House of Representatives, District 39
  1. Previous Case
  2. Top Of Index
  3. This Point in Index
  4. Citationize
  5. Next Case
  6. Print Only

Question Submitted by: The Honorable Ryan Martinez, Oklahoma House of Representatives, District 39
2023 OK AG 4
Decided: 04/13/2023
Oklahoma Attorney General Opinions


Cite as: 2023 OK AG 4, __ __

¶0 This office has received your request for an official Attorney General Opinion in which you ask, in effect, the following question:
Does the Central Purchasing Act ("Act") require the Office of Management and Enterprise Services ("OMES"), through the State Purchasing Director, to verify that an exempt purchase fits within the scope of an exemption claimed?

I.

SUMMARY

¶1 Yes, as a part of its oversight duties, OMES is required to routinely verify an agency's claim that an acquisition is statutorily exempt from the requirements of the Act. The plain text and legislative history of the Act charges OMES, through the State Purchasing Director ("Purchasing Director"), with the sole and exclusive authority for all state agency acquisitions. For purposes of ensuring agencies are accountable for their acquisitions, the Act provides OMES with authority to conduct agency audits and to submit findings to the State Auditor and Inspector or the Attorney General. Despite the seemingly sweeping coverage of the Act, there are a number of exemptions within the Act and in other titles of Oklahoma law. The Legislature should review the Act and all statutes affording exemptions to agencies and/or acquisitions to resolve existing ambiguities. Notwithstanding these ambiguities, given the entirety of the legislative scheme, the Act requires OMES to routinely verify an agency's claim that an acquisition is statutorily exempt from the requirements of the Act.

II.

BACKGROUND

¶2 The Oklahoma Legislature adopted the Act, 74 O.S.2021, §§ 85.1--85.44E, in response to calls for government reforms about the subjective awarding of contracts and purchases that were diffused between state agency officials. The Act created the position of the Purchasing Director, standardized procedures to govern governmental agencies' acquisitions and set penalties for violations of the Act. It is intended to protect Oklahoma citizens by promoting economy in government and reducing the likelihood of fraud. Indiana Nat'l Bank v. State, 1993 OK 101, ¶ 12, 857 P.2d 53, 60. The Act also "insures [sic] that government officials are accountable to the public and are discharging their duties competently and responsibly." Id.

¶3 In 2011, the Department of Central Services was consolidated into the Office of State Finance, which became OMES one year later.1 Despite the consolidation and name changes, the core of the Act has consistently required that "all activities of any state agency2 . . . relating to purchasing shall be under the direction of the Purchasing Division unless otherwise provided by the Act." 74 O.S.2021, § 85.3(A, D).

¶4 Administrative control of OMES is under a Director who is appointed by the Governor, by and with the consent of the Senate. 62 O.S.2021, § 34.5; 74 O.S.2021, §§ 61.1--61.2. The OMES Director is charged in statute with hiring the Purchasing Director. 74 O.S.2021, § 85.3(B). That Purchasing Director, in turn, has "sole and exclusive authority and responsibility for all acquisitions by state agencies." 74 O.S.2021, § 85.5(A). The Purchasing Director's authority includes requesting additional information deemed necessary to review a proposed agency acquisition. 74 O.S.2021, § 85.7(A)(2). If the Purchasing Director determines that the acquisition is unnecessary, excessive or unjustified, the Purchasing Director must deny the requisition. Id.

¶5 Broadly, the Purchasing Director has a duty to "review state agency acquisitions for the purposes of verifying compliance with the provisions of the Act and rules promulgated by OMES. Id. § 85.5(E). If the Purchasing Director determines that an agency is not in compliance with the Act or associated rules, at a minimum, the following options exist:

1) reduce a state agency's acquisition authority;
2) report any agency noncompliance to the OMES Director;
3) submit these findings to the State Auditor and Inspector for further investigation; or
4) transmit the information to the Attorney General for further investigation upon reasonable belief that an agency acquisition constitutes a criminal violation, such as the Act's bid-splitting prohibitions. 3

74 O.S.2021, §85.5(E), (F).

¶6 As discussed below, there are a number of exemptions within the Act and in other titles of Oklahoma law. First, there are limited and special circumstance exemptions that are expressly left to the discretion of OMES. Then, within the Act are exemptions provided to more than forty agencies and types of acquisitions. Finally, there are additional exemptions outside of the Act, which generally provide that the specific agency's transaction is "not subject to the Central Purchasing Act."

¶7 You asked whether OMES is required to verify an agency's claim that its proposed acquisition is statutorily exempt from requirements of the Act. For the reasons set forth below, this office concludes that OMES, by and through its Director and Purchasing Director, is required to maintain oversight and responsibility for all agency acquisitions, and this includes routinely verifying an agency's claim that an acquisition is statutorily exempt.

III.

DISCUSSION

A. OMES is required to maintain oversight and responsibility for all agency acquisitions, and this includes routinely verifying an agency's claim that an acquisition is statutorily exempt.

1. Within the Act, OMES officials are authorized to grant limited and special circumstance exemptions from the Act's requirements. In granting a limited and special circumstance exemption, OMES is affirming that the acquisition meets the requirements for the statutory exemption.

¶8 Within the Act, certain OMES officials have specific statutory authority to exempt an agency acquisition from the Act's general requirements. Generally, these exemptions can be categorized as limited and based on special circumstances, and include the following:

1) an exemption is in the best and immediate interest of the state due to unusual, time-sensitive, or unique circumstances, as determined by the Purchasing Director.4
2) certain state agencies' contracts are mandatory statewide contracts, as designated by the Purchasing Director; and
3) a determination that the proposed supplier of the goods and services is the only qualified vendor.

74 O.S.2021, § 85.7(A)(7); 74 O.S.2021, § 85.5(G)(5); 74 O.S.2021, § 85.44D.1.

¶9 In the first two special circumstances, OMES has complete discretion to grant the exemption.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Indiana National Bank v. State Department of Human Services
857 P.2d 53 (Supreme Court of Oklahoma, 1993)
Cunningham Lindsey Claims Management, Inc. v. Oklahoma State Insurance Fund
2002 OK CIV APP 7 (Court of Civil Appeals of Oklahoma, 2001)
Wilhoit v. State
2009 OK 83 (Supreme Court of Oklahoma, 2009)
World Publishing Co. v. White
2001 OK 48 (Supreme Court of Oklahoma, 2001)
Oklahoma Education Ass'n v. State Ex Rel. Oklahoma Legislature
2007 OK 30 (Supreme Court of Oklahoma, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
2023 OK AG 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/question-submitted-by-the-honorable-ryan-martinez-oklahoma-house-of-oklaag-2023.