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(122nd General Assembly)(Substitute House Bill Number 204)
AN ACT
To amend sections 125.02, 125.04, 125.09, 125.56, 731.14, 731.141, and 735.05
of the Revised
Code to
allow certain
political subdivisions to purchase supplies and services outside
of a Department of Administrative Services purchase
contract and
without complying with competitive selection procedures if the
purchase can be made at a lower price than is available through
such a contract, to increase the competitive bidding
threshold for certain
municipal contracts from $10,000 to $15,000, to eliminate the requirement
that state printing contracts be executed
within Ohio, and to prohibit non-Ohio businesses from bidding on state
printing contracts in Ohio if they are located in a state that excludes Ohio
businesses from bidding on state printing contracts in that state.
Be it enacted by the General Assembly of the State of Ohio:
SECTION 1 . That sections 125.02, 125.04, 125.09, 125.56, 731.14, 731.141, and
735.05 of the
Revised Code be amended
to read as follows:
Sec. 125.02. Except as to the adjutant general, the
capital square review and advisory board, the department of rehabilitation and
correction as specified in
division (C)(D) of section 125.04 of the Revised Code, the
general
assembly, the bureau of workers' compensation, and institutions
administered by boards of trustees, the department of
administrative services may purchase supplies and services for
the use of state agencies. So far as possible, the department of administrative
services shall make all purchases from the department of
rehabilitation and correction in the exercise of the functions of
the department of rehabilitation and correction in the management
of state institutions. The department of administrative services shall prescribe
uniform rules governing forms of specifications, advertisements
for proposals, the opening of bids, the making of awards and
contracts, and the purchase of supplies and performance of work. Nothing in this section precludes the bureau from entering
into a contract with the department of administrative services
for the department to purchase supplies, or
services for the use of the bureau. Sec. 125.04. (A) Except as provided in division (C)(D) of
this section, the department of administrative services shall
determine what supplies and services are purchased by or for
state agencies. Whenever the department of administrative
services makes any change or addition to the lists of supplies
and services that it determines to purchase for state agencies,
it shall provide a list to the agencies of the changes or
additions and indicate when the department will be prepared to
furnish each item listed. Except for the requirements of
division (B) of section 125.11 of the Revised Code, sections
125.04 to 125.08 and 125.09 to 125.15 of the Revised Code do not
apply to or affect the educational institutions of the state. The department
shall not include the bureau of workers'
compensation in the lists of supplies, equipment, and services
purchased and furnished by the department. Nothing in this division precludes the bureau from entering
into a contract with the department for the department to perform
services relative to supplies, equipment, and services contained
in this division for the bureau. (B) As used in this division, "political subdivision"
means any county, township, municipal corporation, school
district, conservancy district, township park district, park
district created under Chapter 1545. of the Revised Code,
regional transit authority, regional airport authority, regional water and
sewer district, or port authority. "Political subdivision" also includes any
other political subdivision described in the Revised Code that has been
approved by the department to participate in the department's contracts under
this division. The Subject to division (C) of this section, the
department of administrative services may permit a
political subdivision to participate in contracts into which the
department has entered for the purchase of supplies and services. Any
political subdivision
desiring to participate in such purchase contracts shall file
with the department a certified copy of an ordinance or
resolution of the legislative authority or governing board of the
political subdivision. The resolution or ordinance shall request
that the political subdivision be authorized to participate in
such contracts and shall agree that the political subdivision
will be bound by such terms and conditions as the department
prescribes and that it will directly pay the vendor under each
purchase contract. The department may charge a political
subdivision a reasonable fee to cover the administrative costs
the department incurs as a result of the subdivision's
participation in the purchase contract. Purchases made by a
political subdivision under this division are exempt from any
competitive selection procedures otherwise required by law. No
political subdivision shall make any purchase under this division
when bids have been received for such purchase by the
subdivision, unless such purchase can be made upon the same
terms, conditions, and specifications at a lower price under this
division.
The department shall include in its annual report an
estimate of the cost it incurs by permitting political
subdivisions to participate in contracts pursuant to this
division. The department may require political subdivisions
participating in contracts pursuant to this division to file a
report with the department, as often as it finds necessary,
stating how many such contracts the political subdivisions
participate in within a specified period of time, and any other
information the department requires. (C) A political subdivision as defined in division (B) of this
section may purchase supplies or services
from another party, including another political subdivision, instead of
through participation in contracts
described in division (B) of
this section if the political subdivision can purchase those
supplies or services from the other party upon equivalent terms,
conditions, and specifications but at a lower price than it can
through those contracts. Purchases that a political subdivision
makes under this division are exempt from any competitive
selection procedures otherwise required by law. A political
subdivision that makes any purchase under this division shall
maintain sufficient information regarding the
purchase to verify that the
political subdivision satisfied the conditions for making a
purchase under this division. Nothing in this division restricts any action
taken by a county or township
as authorized by division (A) of section 9.48 of the Revised
Code. (D) This section does not apply to supplies or services
required by the legislative or judicial branches, boards of
elections, the capitol square review and advisory board, the
adjutant general, to supplies or services purchased by a state
agency directly as provided in division (A) or (E) of section
125.05 of
the Revised Code, to purchases of supplies or services for the emergency
management agency as provided in section 125.023 of the Revised Code, or to
purchases of supplies or services for the
department of rehabilitation and correction in its operation of
the program for the employment of prisoners established under
section 5145.16 of the Revised Code that shall be made pursuant
to rules adopted by the director of administrative services and
the director of rehabilitation and correction in accordance with
Chapter 119. of the Revised Code. The rules may provide for the
exemption of the program for the employment of prisoners from the
requirements of division (A) of this section. Sec. 125.09. (A) Pursuant to section 125.07 of the
Revised Code, the department of administrative services may
prescribe such conditions under which competitive sealed bids
will be received and terms of the proposed purchase as it
considers necessary; provided, that all such conditions and terms
shall be reasonable and shall not unreasonably restrict
competition, and bidders may bid upon all or any item of the
supplies or services listed in such notice. Those bidders
claiming the preference for United States and Ohio products
outlined in this chapter shall designate in their bids either
that the product to be supplied is an Ohio product or that under
the rules established by the director of administrative services
they qualify as having a significant Ohio economic presence. (B) The department may require that each bidder provide
sufficient information about the energy efficiency or energy
usage of his the bidder's product or service. (C) The director of administrative services shall, by rule
adopted pursuant to Chapter 119. of the Revised Code, prescribe
criteria and procedures for use by all state agencies in giving
preference to United States and Ohio products as required by
division (B) of section 125.11 of the Revised Code. The rules
shall extend to: (1) Criteria for determining that a product is produced or
mined in the United States rather than in another country or
territory; (2) Criteria for determining that a product is produced or
mined in Ohio; (3) Information to be submitted by bidders as to the
nature of a product and the location where it is produced or
mined; (4) Criteria and procedures to be used by the director to
qualify bidders located in states bordering Ohio who might
otherwise be excluded from being awarded a contract by operation
of this section and section 125.11 of the Revised Code. The
criteria and procedures shall recognize the level and regularity
of interstate commerce between Ohio and the border states and
provide that the non-Ohio businesses may qualify for award of a
contract as long as they are located in a state that imposes no
greater restrictions than are contained in this section and
section 125.11 of the Revised Code upon persons located in Ohio
selling products or services to agencies of that state. The criteria and
procedures shall also provide that a non-Ohio business shall not bid
on a contract for state printing in this state if the business is located in a
state that excludes Ohio businesses from bidding on state printing
contracts in that state. (5) Criteria and procedures to be used to qualify bidders
whose manufactured products, except for mined products, are
produced in other states or in North America, but the bidders
have a significant Ohio economic presence in terms of the number
of employees or capital investment a bidder has in this state.
Bidders with a significant Ohio economic presence shall qualify
for award of a contract on the same basis as if their products
were produced in this state. (6) Criteria and procedures for the director to grant
waivers of the requirements of division (B) of section 125.11 of
the Revised Code on a contract-by-contract basis where compliance
with those requirements would result in the state agency paying
an excessive price for the product or acquiring a
disproportionately inferior product; (7) Such other requirements or procedures reasonably
necessary to implement the system of preferences established
pursuant to division (B) of section 125.11 of the Revised Code. In adopting the rules required under this division, the
director shall, to the maximum extent possible, conform to the
requirements of the federal "Buy America Act," 47 Stat. 1520,
(1933), 41 U.S.C.A. 10a-10d, as amended, and to the regulations
adopted thereunder. Sec. 125.56. (A) Except as provided in division
(B) of this section, all printing under sections 125.43 to 125.76
of the Revised Code, shall be executed within this state pursuant to
section 125.11 of the Revised Code. (B) Division (A) of this section does not apply to
printing contracts requiring special, security paper of a unique nature if
compliance with division (A) will result in an excessive price for
the product or acquiring a disproportionately inferior product. (C) As used in this section, "excessive price" means a price that
exceeds by more than five per cent the lowest price submitted on a
non-Ohio bid. Sec. 731.14. All contracts made by the legislative
authority of a village shall be executed in the name of the
village and signed on its behalf by the mayor and clerk. Except
where the contract is for equipment, services, materials, or
supplies to be purchased under division (D) of section 713.23, or
section 125.04 or 5513.01 of the Revised Code or available from a
qualified nonprofit agency pursuant to sections 4115.31 to
4115.35 of the Revised Code, when any expenditure, other than the
compensation of persons employed therein, exceeds ten fifteen
thousand
dollars, such contracts shall be in writing and made with the
lowest and best bidder after advertising for not less than two
nor more than four consecutive weeks in a newspaper of general
circulation within the village. The bids shall be opened and
shall be publicly read by the clerk of such village or a person
designated by him the clerk at the time, date, and place
specified in the
advertisement to bidders or specifications. The time, date, and
place of bid openings may be extended to a later date by the
legislative authority of the village, provided that written or
oral notice of the change shall be given to all persons who have
received or requested specifications no later than ninety-six
hours prior to the original time and date fixed for the opening.
This section does not apply to those villages that have provided
for the appointment of a village administrator under section
735.271 of the Revised Code. Sec. 731.141. In those villages that have established the
position of village administrator, as provided by section 735.271
of the Revised Code, the village administrator shall make
contracts, purchase supplies and materials, and provide labor for
any work under his the administrator's supervision involving
not more than ten fifteen thousand dollars. When an
expenditure, other than the
compensation of persons employed by the village, exceeds ten
fifteen thousand dollars, such expenditure shall first be authorized
and
directed by ordinance of the legislative authority of the
village. When so authorized and directed, except where the
contract is for equipment, services, materials, or supplies to be
purchased under division (D) of section 713.23, or section 125.04
or 5513.01 of the Revised Code or available from a qualified
nonprofit agency pursuant to sections 4115.31 to 4115.35 of the
Revised Code, the village administrator shall make a written
contract with the lowest and best bidder after advertisement for
not less than two nor more than four consecutive weeks in a
newspaper of general circulation within the village. The bids
shall be opened and shall be publicly read by the village
administrator or a person designated by him the village
administrator at the time, date, and place as specified in the
advertisement to bidders or
specifications. The time, date, and place of bid openings may be
extended to a later date by the village administrator, provided
that written or oral notice of the change shall be given to all
persons who have received or requested specifications no later
than ninety-six hours prior to the original time and date fixed
for the opening. All contracts shall be executed in the name of
the village and signed on its behalf by the village administrator
and the clerk. The legislative authority of a village may provide, by
ordinance, for central purchasing for all offices, departments,
divisions, boards, and commissions of the village, under the
direction of the village administrator who shall make contracts,
purchase supplies or materials, and provide labor for any work of
the village in the manner provided by this section. Sec. 735.05. The director of public service may make any
contract, purchase supplies or material, or provide labor for any
work under the supervision of the department of public service
involving not more than ten fifteen thousand dollars. When an
expenditure within the department, other than the compensation of
persons employed therein, exceeds ten fifteen thousand dollars,
such
expenditure shall first be authorized and directed by ordinance
of the city legislative authority. When so authorized and
directed, except where the contract is for equipment, services,
materials, or supplies to be purchased under division (D) of
section 713.23, or section 125.04 or 5513.01 of the Revised Code
or available from a qualified nonprofit agency pursuant to
sections 4115.31 to 4115.35 of the Revised Code, the director
shall make a written contract with the lowest and best bidder
after advertisement for not less than two nor more than four
consecutive weeks in a newspaper of general circulation within
the city. SECTION 2 . That existing sections 125.02, 125.04, 125.09, 125.56, 731.14,
731.141, and 735.05
of the Revised Code are
hereby repealed.
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