To amend section 125.04 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.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

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 MAY PURCHASE SUPPLIES OR SERVICES FROM ANOTHER PARTY 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 THE SAME 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 CERTIFY TO THE DEPARTMENT SUFFICIENT INFORMATION REGARDING THE PURCHASE, AS THE DEPARTMENT DETERMINES, TO VERIFY THAT THE POLITICAL SUBDIVISION SATISFIES THE CONDITIONS FOR MAKING A PURCHASE UNDER THIS DIVISION.

(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) 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.