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H. B. No. 579 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Representatives Foley, Ramos, Murray, Boyd, Heard, Goyal, Hagan, R., Fende, Yuko, Budish, Ashford, O'Brien, Letson, Milkovich, Phillips
A BILL
To amend sections 125.09, 125.11, 125.112, and 125.56
of the Revised Code to specify new criteria for
the Buy Ohio Law.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 125.09, 125.11, 125.112, and 125.56
of the Revised Code be amended to read as follows:
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 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) Criteria and procedures to be used by an entity when the
entity must demonstrate that the entity will create or retain jobs
in Ohio as a result of being awarded a contract under division (B)
of section 125.11 of the Revised Code.
(8) 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. 125.11. (A) Subject to division (B) of this section,
contracts awarded pursuant to a reverse auction under section
125.072 of the Revised Code or pursuant to competitive sealed
bidding, including contracts awarded under section 125.081 of the
Revised Code, shall be awarded to the lowest responsive and
responsible bidder on each item in accordance with section 9.312
of the Revised Code. When the contract is for meat products as
defined in section 918.01 of the Revised Code or poultry products
as defined in section 918.21 of the Revised Code, only those bids
received from vendors offering products from establishments on the
current list of meat and poultry vendors established and
maintained by the director of administrative services under
section 125.17 of the Revised Code shall be eligible for
acceptance. The department of administrative services may accept
or reject any or all bids in whole or by items, except that when
the contract is for services or products available from a
qualified nonprofit agency pursuant to sections 125.60 to 125.6012
or 4115.31 to 4115.35 of the Revised Code, the contract shall be
awarded to that agency.
(B) Prior to awarding a contract under division (A) of this
section, the department of administrative services or the state
agency responsible for evaluating a contract for the purchase of
products shall evaluate the bids received according to the
criteria and procedures established pursuant to divisions (C)(1)
and (2) of section 125.09 of the Revised Code for determining if a
product is produced or mined in the United States and if a product
is produced or mined in this state. The department or other state
agency shall first remove bids that offer products that have not
been or that will not be produced or mined in the United States.
From among the remaining bids, the department or other state
agency shall select the lowest responsive and responsible bid, in
accordance with section 9.312 of the Revised Code, from among the
bids that offer products that have been produced or mined in this
state where sufficient competition can be generated within this
state to ensure that compliance with these requirements will not
result in an excessive price for the product or acquiring a
disproportionately inferior product.
For purposes of this
division, "excessive price" means a price that exceeds by more
than five per cent the lowest price bid, except that a price that
exceeds the lowest price bid by more than five per cent but not
more than ten per cent shall not be considered an excessive price
if the entity submitting the bid has demonstrated that the entity
will create or retain jobs in Ohio as a result of being awarded
the contract. For purposes of this division, "lowest price bid"
means the lowest price submitted on a responsive and responsible
bid from among the bids that do not offer products that have been
produced or mined in this state.
(C) Division (B) of this section applies to contracts for
which competitive bidding is waived by the controlling board.
(D) Division (B) of this section does not apply to the
purchase by the division of liquor control of spirituous liquor.
(E) The director of administrative services shall publish in
the form of a model act for use by counties, townships, municipal
corporations, or any other political subdivision described in
division (B) of section 125.04 of the Revised Code, a system of
preferences for products mined and produced in this state and in
the United States and for Ohio-based contractors. The model act
shall reflect substantial equivalence to the system of preferences
in purchasing and public improvement contracting procedures under
which the state operates pursuant to this chapter and section
153.012 of the Revised Code. To the maximum extent possible,
consistent with the Ohio system of preferences in purchasing and
public improvement contracting procedures, the model act shall
incorporate all of the requirements of the federal "Buy America
Act," 47 Stat. 1520 (1933), 41 U.S.C. 10a to 10d, as amended, and
the rules adopted under that act.
Before and during the development and promulgation of the
model act, the director shall consult with appropriate statewide
organizations representing counties, townships, and municipal
corporations so as to identify the special requirements and
concerns these political subdivisions have in their purchasing and
public improvement contracting procedures. The director shall
promulgate the model act by rule adopted pursuant to Chapter 119.
of the Revised Code and shall revise the act as necessary to
reflect changes in this chapter or section 153.012 of the Revised
Code.
The director shall make available copies of the model act,
supporting information, and technical assistance to any township,
county, or municipal corporation wishing to incorporate the
provisions of the act into its purchasing or public improvement
contracting procedure.
(F) An entity that has been awarded a contract under division
(B) of this section in part by demonstrating that the entity will
create or retain jobs in Ohio as a result of being awarded the
contract, and that has within a reasonable time following
completion of the contract failed to fulfill the obligation to
create or retain jobs, is liable to the state for an amount equal
to the difference between the entity's bid price and the lowest
price submitted on a responsive and responsible bid from among the
bids that did not offer products that have been produced or mined
in this state.
Sec. 125.112. (A) As used in this section:
(1) "Agency" means a department created under section 121.02
of the Revised Code.
(2) "Entity" means, whether for profit or nonprofit, a
corporation, association, partnership, limited liability company,
sole proprietorship, or other business entity. "Entity" does not
include an individual who receives state assistance that is not
related to the individual's business.
(3)(a) "State award" means a contract awarded by the state
costing over twenty-five thousand dollars.
(b) "State award" does not include compensation received as
an employee of the state or any state financial assistance and
expenditure received from the general assembly or any legislative
agency, any court or judicial agency, the secretary of state,
auditor of state, treasurer of state, or attorney general and
their respective offices.
(B) The department of administrative services shall establish
and maintain a single searchable web site, accessible by the
public at no cost, that includes all of the following information
for each state award:
(1) The name of the entity receiving the award;
(2) The amount of the award;
(3) Information on the award, the agency or other
instrumentality of the state that is providing the award, and the
commodity code;
(4) Any other relevant information determined by the
department of administrative services.
(C) The department of administrative services may consult
with other state agencies in the development, establishment,
operation, and support of the web site required by division (B) of
this section. State awards shall be posted on the web site within
thirty days after being made. The department of administrative
services shall provide an opportunity for public comment as to the
utility of the web site required by division (B) of this section
and any suggested improvements.
(D) The web site required by division (B) of this section
shall be fully operational not later than one year after the
effective date of this section December 30, 2008, and shall
include information on state awards made in fiscal year 2008 and
thereafter. It shall also provide an electronic link to the daily
journals of the senate and house of representatives.
(E) The director of administrative services shall submit to
the general assembly an annual report regarding the implementation
of the web site established pursuant to division (B) of this
section. The report shall include data regarding the usage of the
web site and any public comments on the utility of the site,
including recommendations for improving data quality and
collection. The director shall post each report on the web site.
(F) Each agency awarding a grant to an entity in fiscal year
2008 and thereafter shall establish and maintain a separate web
site listing the name of the entity receiving each grant, the
grant amount, information on each grant, and any other relevant
information determined by the department of administrative
services. Each agency shall provide the link to such a web site to
the department of administrative services within a reasonable time
after the effective date of this section December 30, 2008, and
shall thereafter update its web site within thirty days of
awarding a new grant. Not later than one year after the effective
date of this section December 30, 2008, the department of
administrative services shall establish and maintain a separate
web site, accessible to the public at no cost, which contains the
links to the agency web sites required by this division.
(G) The attorney general shall monitor the compliance of an
entity with the terms and conditions, including performance
metrics, if any, of a state award for economic development
received by that entity. As necessary, the agency that makes and
administers the state award for economic development shall assist
the attorney general with that monitoring. The attorney general
shall submit to the general assembly pursuant to section 101.68 of
the Revised Code an annual report regarding the level of
compliance of such entities with the terms and conditions,
including any performance metrics, of their state awards for
economic development. When the attorney general determines
appropriate and to the extent that an entity that receives or has
received a state award for economic development does not comply
with a performance metric that is specified in the terms and
conditions of the award, the attorney general shall pursue against
and from that entity such remedies and recoveries as are available
under law. For purposes of this division, "state award for
economic development" means state financial assistance and
expenditure in any of the following forms: grants, subgrants,
loans, awards, cooperative agreements, or other similar and
related forms of financial assistance and contracts, subcontracts,
purchase orders, task orders, delivery orders, or other similar
and related transactions. "State award for economic development"
includes a contract awarded under division (B) of section 125.11
of the Revised Code to an entity that has demonstrated that the
entity will create or retain jobs in Ohio. "State award for
economic development" does not include compensation received as an
employee of the state or any state financial assistance and
expenditure received from the general assembly or any legislative
agency, any court or judicial agency, the secretary of state,
auditor of state, treasurer of state, or attorney general and
their respective offices.
(H) Nothing in this section shall be construed as requiring
the disclosure of information that is not a public record under
section 149.43 of the Revised Code.
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 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 has the meaning defined in division (B) of
section 125.11 of the Revised Code.
Section 2. That existing sections 125.09, 125.11, 125.112,
and 125.56 of the Revised Code are hereby repealed.
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