Public buildings and public works; Public Competitive Bidding Act of 1974; quotes; felonies; disclosures; effective date.

An Act
ENROLLED HOUSE
BILL NO. 3418 By: Strom, West (Josh), Archer,
Crosswhite Hader,
Dobrinski, Stinson, Fugate,
Woolley, Kendrix, Kelley,
McCane, Chapman, Wolfley,
and Menz of the House

and

Daniels of the Senate

An Act relating to public buildings and public works;
amending 60 O.S. 2021, Section 176, as last amended
by Section 4, Chapter 197, O.S.L. 2025 (60 O.S. Supp.
2025, Section 176), which relates to trusts for
benefit of state, county or municipality and
contracts; making certain contracts no longer subject
to Public Competitive Bidding Act; amending 61 O.S.
2021, Sections 102, as amended by Section 13, Chapter
238, O.S.L. 2022, 103, as last amended by Section 1,
Chapter 361, O.S.L. 2025, 106, as amended by Section
18, Chapter 238, O.S.L. 2022, 110, as amended by
Section 21, Chapter 238, O.S.L. 2022, 111, 112, as
amended by Section 22, Chapter 238, O.S.L. 2022, 114,
as amended by Section 729, Chapter 486, O.S.L. 2025,
116, as amended by Section 543, Chapter 486, O.S.L.
2025, 117, 119, 119.1, as amended by Section 25,
Chapter 238, O.S.L. 2022, 120, 121, as amended by
Section 26, Chapter 238, O.S.L. 2022, 131, 137, and
138 (61 O.S. Supp. 2025, Sections 102, 103, 106, 110,
112, 114, 116, 119.1, and 121), which relate to the
Public Competitive Bidding Act of 1974; modifying
terms; establishing procedure for public construction
contracts equal to or greater than Twenty-five
Thousand Dollars and less than Fifty Thousand Dollars
for school district; requiring bidding documents for
construction-management trade contracts and
ENR. H. B. NO. 3418 Page 2
subcontracts to be available for set period;
authorizing electronic bids with live video feed of
bid opening to not have a public bid opening;
clarifying awarding public agency and not divisions
may extend contract award period; extending
applicability of the Public Competitive Bidding Act
to quotes; clarifying persons who are conflicted out
of contracts; establishing felony offenses related to
insider information related to public bids; requiring
change orders or cumulative change orders which
exceed certain limits to re-solicit quotes;
permitting suit by unsuccessful quoter; establishing
that persons who knowingly violate act shall be
guilty of a misdemeanor; directing public agencies to
use lowest responsible qualified vendor for personal
property greater than Ten Thousand Dollars; providing
procedure for public agencies that solicit bids or
quotes pursuant to authorized sole-source or sole-
brand bidding procedures; prohibiting public agencies
from writing bid or quote specifications for the
purpose of restricting bids or quotes; requiring
contractors and vendors to provide certain
information to awarding public agency; amending 70
O.S. 2021, Section 5-135, which relates to system of
accounting for school districts; requiring compliance
with Section 40 of Title 61; providing for
codification; and providing an effective date.

SUBJECT: Public buildings and public works

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION 1. AMENDATORY 60 O.S. 2021, Section 176, as last
amended by Section 4, Chapter 197, O.S.L. 2025 (60 O.S. Supp. 2025,
Section 176), is amended to read as follows:

Section 176. A. Express trusts may be created to issue
obligations, enter into financing arrangements including, but not
limited to, lease-leaseback, sale-leaseback, interest rate swaps,
and other similar transactions and to provide funds for the
ENR. H. B. NO. 3418 Page 3
furtherance and accomplishment of any authorized and proper public
function or purpose of the state or of any county or municipality or
any and all combinations thereof, in real or personal property, or
either or both, or in any estate or interest in either or both, with
the state, or any county or municipality or any and all combinations
thereof, as the beneficiary thereof by:

1. The express approval of the Legislature and the Governor if
the State of Oklahoma is the beneficiary;

2. The express approval of two-thirds (2/3) of the membership
of the governing body of the beneficiary if a county is a
beneficiary;

3. The express approval of two-thirds (2/3) of the membership
of the governing body of the beneficiary if a municipality is a
beneficiary; or

4. The express approval of two-thirds (2/3) of the membership
of the governing body of each beneficiary in the event a trust has
more than one beneficiary; provided, that no funds of a beneficiary
derived from sources other than the trust property, or the operation
thereof, shall be charged with or expended for the execution of the
trust, except by express action of the legislative authority of the
beneficiary prior to the charging or expending of the funds. The
officers or any other governmental agencies or authorities having
the custody, management, or control of any property, real or
personal or mixed, of the beneficiary of the trust, or of a proposed
trust, which property shall be needful for the execution of the
trust purposes, are authorized and empowered to lease the property
for those purposes, after the acceptance of the beneficial interest
therein by the beneficiary as hereinafter provided.

B. Any trust created pursuant to the provisions of this
section, in whole or in part, may engage in activities outside of
the geographic boundaries of its beneficiary, so long as the
activity provides a benefit to a large class of the public within
the beneficiary’s geographic area or lessens the burdens of
government of the beneficiary and which does not solely provide a
benefit by generating administrative fees.

C. A municipality may convey title to real property which is
used for an airport to the trustees of an industrial development
authority trust whose beneficiary is the municipality. The
industrial development authority trust must already have the
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custody, management, or control of the real property. The
conveyance must be approved by a majority of the governing body of
the municipality. A conveyance pursuant to this section may be made
only for the sole purpose of allowing the authority to sell the
property for fair market value when the property is to be used for
industrial development purposes. Conveyances made pursuant to this
subsection shall be made subject to any existing reversionary
interest or other restrictions burdening the property and subject to
any reversionary interest or other restriction considered prudent by
the municipality.

D. The trustees of a public trust having the State of Oklahoma
as beneficiary shall make and adopt bylaws for the due and orderly
administration and regulation of the affairs of the public trust.
All bylaws of a public trust having the State of Oklahoma as
beneficiary shall be submitted in writing to the Governor of the
State of Oklahoma. The Governor must approve the proposed bylaws
before they take effect.

E. No public trust in which the State of Oklahoma is the
beneficiary may be amended without a two-thirds (2/3) vote of
approval of the trustees of the trust; provided, that any amendment
is subject to the approval of the Governor of the State of Oklahoma.
Any amendments shall be sent to the Governor within fifteen (15)
days of their adoption.

F. No trust in which a county or municipality is the
beneficiary shall hereafter create an indebtedness or obligation
until the indebtedness or obligation has been approved by a two-
thirds (2/3) vote of the governing body of the beneficiary. In the
event a trust has more than one beneficiary, as authorized by this
section, the trust shall not incur an indebtedness or obligation
until the indebtedness or obligation has been approved by a two-
thirds (2/3) vote of the governing body of two-thirds (2/3) of the
beneficiaries of the trust. Provided, however, a municipality with
a governing body consisting of fewer than seven (7) members shall be
required to approve the creation of an indebtedness or obligation
under this subsection by a three-fifths (3/5) vote of the governing
body.

G. All bonds described in subsection F of this section, after
December 1, 1976, except bonds sold to the federal government or any
agency thereof or to any agency of the State of Oklahoma, shall be
awarded to the lowest and best bidder based upon open competitive
public offering, advertised at least once a week for two (2)
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successive weeks in a newspaper of general circulation in the county
where the principal office of the trust is located prior to the date
on which bids are received and opened; provided, competitive bidding
may be waived on bond issues with the approval of three-fourths
(3/4) of the trustees, unless the trust has fewer than four
trustees, in which case a two-thirds (2/3) approval shall be
required, and a three-fourths (3/4) vote of the governing body of
the beneficiary, unless the beneficiary is a county in which case a
two-thirds (2/3) vote of the members of the governing body shall be
required, or three-fourths (3/4) vote of the governing bodies of
each of the beneficiaries of the trust, unless one of the
beneficiaries is a county in which case a two-thirds (2/3) vote of
the members of the governing body of such county shall be required.
No bonds shall be sold for less than par value, except upon approval
of three-fourths (3/4) of the trustees, unless the beneficiary is a
county in which case a two-thirds (2/3) vote of the members of the
governing body shall be required. In no event shall bonds be sold
for less than sixty-five percent (65%) of par value; provided,
however, in no event shall the original purchaser from the issuer of
any bonds issued by any public trust for any purpose receive
directly or indirectly any fees, compensation, or other remuneration
in excess of four percent (4%) of the price paid for the bonds by
the purchaser of the bonds from the original purchaser; and further
provided, that the average coupon rate thereon shall in no event
exceed fourteen percent (14%) per annum. No public trust shall sell
bonds for less than ninety-six percent (96%) of par value until the
public trust has received from the underwriter or financial advisor
or, in the absence of an underwriter or financial advisor, the
initial purchaser of the bonds, an estimated alternative financing
structure or structures showing the estimated total interest and
principal cost of each alternative. At least one alternative
financing structure shall include bonds sold to the public at par.
Any estimates shall be considered a public record of the public
trust. Bonds, notes, or other evidences of indebtedness issued by
any public trust shall be eligible for purchase by any state banking
association or corporation subject to such limitations as to
investment quality as may be imposed by regulations, rules, or
rulings of the Bank Commissioner.

H. Public trusts created pursuant to this section shall file
annually, with their respective beneficiaries, copies of financial
documents and reports sufficient to demonstrate the fiscal activity
of such trust including, but not limited to, budgets, financial
reports, bond indentures, and audits. Amendments to the adopted
ENR. H. B. NO. 3418 Page 6
budget shall be approved by the trustees of the public trust and
recorded as such in the official minutes of such trust.

I. Public construction contracts as provided in the Public
Competitive Bidding Act of 1974 shall be subject to the Public
Competitive Bidding Act of 1974 and the Fair Pay for Construction
Act, where applicable. The provisions of this subsection shall not
apply to contracts of industrial and cultural trusts.

J. Any public trust created pursuant to the provisions of this
section shall have the power to acquire lands by use of eminent
domain in the same manner and according to the procedures provided
for in Sections 51 through 66 of Title 66 of the Oklahoma Statutes.
Any exercise of the power of eminent domain by a public trust
pursuant to the provisions of this section shall be limited to the
furtherance of public purpose projects involving revenue-producing
utility projects of which the public trust retains ownership;
provided, for public trusts in which the State of Oklahoma is the
beneficiary the exercise of the power of eminent domain may also be
used for public purpose projects involving air transportation.
Revenue-producing utility projects shall be limited to projects for
the transportation, delivery, treatment, or furnishing of water for
domestic purposes or for power including, but not limited to, the
construction of lakes, pipelines, and water treatment plants or for
projects for rail transportation. Any public trust formed pursuant
to this section which has a county as its beneficiary shall have the
power to acquire, by use of eminent domain, any lands located either
inside the county, or contiguous to the county pursuant to the
limitations imposed pursuant to this section.

K. J. If a roadway owned and maintained by a public trust whose
beneficiary is the State of Oklahoma, which roadway is not within
the corporate limits of any municipality and has been used by the
public for any length of time, and the trust has not dedicated the
roadway for public use by written easement, plat, or similar writing
recorded in the land records of the county clerk of the county in
which the roadway is located, the trust may at any time, by
resolution of its board of trustees, close, reopen, or re-close the
roadway to public use. Such closure shall not leave any property
not owned by the trust without contiguous access to a roadway,
whether a public right-of-way or a roadway owned by the trust. If a
roadway is closed pursuant to this subsection and the right to
reopen the roadway is foreclosed by the district court of the county
where the roadway is located, pursuant to the procedures provided in
Sections 42-111 through 42-115 of Title 11 of the Oklahoma Statutes,
ENR. H. B. NO. 3418 Page 7
then the closure of such roadway shall be permanent and not subject
to being reopened.

L. K. Provisions of this section shall not apply to entities
created under Sections 1324.1 through 1324.26 of Title 82 of the
Oklahoma Statutes.

M. L. Any trust created under Section 176 et seq. of this
title, in whole or in part, to operate, administer, or oversee any
county jail facility shall consist of not fewer than five members
and include a county commissioner and the county sheriff, or their
designees, and one member appointed by each of the county
commissioners. The appointed members shall not be elected
officials.

SECTION 2. AMENDATORY 61 O.S. 2021, Section 102, as
amended by Section 13, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2025,
Section 102), is amended to read as follows:

Section 102. As used in the Public Competitive Bidding Act of
1974:

1. "Awarding public agency" means the public agency which
solicits and receives sealed bids or quotes on a particular public
construction contract;

2. "Bidding documents" means the bid notice, instruction to
bidders, plans and specifications, bidding form, bidding
instructions, general conditions, special conditions and all other
written instruments prepared by or on behalf of an awarding public
agency for use by prospective bidders on a public construction
contract;

3. "Chief administrative officer" means an individual
responsible for directing the administration of a public agency.
The term does not mean one or all of the individuals that make
policy for a public agency;

4. "Construction management trade contract or subcontract"
means any public construction contract exceeding Fifty Thousand
Dollars ($50,000.00) in amount that is awarded as a trade contract
in an agency construction management contract or awarded as a
subcontract in an at-risk construction management contract;

ENR. H. B. NO. 3418 Page 8
5. "Public agency" means the State of Oklahoma, and any county,
city, town, school district or other political subdivision of the
state, any public trust, any public entity specifically created by
the Constitution or statutes of the State of Oklahoma or as a result
of statutory authorization therefor, and any department, agency,
board, bureau, commission, committee or authority of any of the
foregoing public entities;

6. "Public construction contract" or "contract" means any
contract, exceeding One Hundred Thousand Dollars ($100,000.00) in
amount, or any construction management trade contracts or
subcontracts exceeding Fifty Thousand Dollars ($50,000.00) in
amount, awarded by any public agency for the purpose of making any
public improvements or constructing any public building or making
repairs to or performing maintenance on the same except where the
improvements, construction of any building or repairs to the same
are improvements or buildings leased to a person or other legal
entity exclusively for private and not for public use and no public
tax revenues shall be expended on or for the contract unless the
public tax revenues used for the project are authorized by a
majority of the voters of the applicable public agency voting at an
election held for that purpose and the public tax revenues do not
exceed twenty-five percent (25%) of the total project cost. The
amount of public tax dollars committed to the project will not
exceed a fixed amount established by resolution of the governing
body prior to or concurrent with approval of the project;

7. "Public improvement" means any beneficial or valuable change
or addition, betterment, enhancement or amelioration of or upon any
real property, or interest therein, belonging to a public agency,
intended to enhance its value, beauty or utility or to adapt it to
new or further purposes. The term does not include the direct
purchase of materials, equipment or supplies by a public agency, or
any personal property, including property as defined in paragraphs 1
and 4 of subsection B of Section 430.1 of Title 62 of the Oklahoma
Statutes;

8. "Purchasing cooperative" means an association of public
entities working together to provide leverage in achieving best
value and/or the best terms in contracts awarded through a
competitive bidding process; and

9. "Retainage" means the difference between the amount earned
by the contractor on a public construction contract, with the work
ENR. H. B. NO. 3418 Page 9
being accepted by the public agency, and the amount paid on said
contract by the public agency.

SECTION 3. AMENDATORY 61 O.S. 2021, Section 103, as last
amended by Section 1, Chapter 361, O.S.L. 2025 (61 O.S. Supp. 2025,
Section 103), is amended to read as follows:

Section 103. A. Unless otherwise provided by law, all public
construction contracts exceeding One Hundred Thousand Dollars
($100,000.00) or construction management trade contracts or
subcontracts exceeding Fifty Thousand Dollars ($50,000.00) shall be
let and awarded to the lowest responsible bidder, by open
competitive bidding after solicitation for sealed bids, in
accordance with the provisions of the Public Competitive Bidding Act
of 1974. No work shall be commenced until a written contract is
executed and all required bonds and insurance have been provided by
the contractor to the awarding public agency.

B. Notwithstanding subsection A of this section, in awarding
public construction contracts exceeding One Hundred Thousand Dollars
($100,000.00) or construction management trade contracts or
subcontracts exceeding Fifty Thousand Dollars ($50,000.00),
counties, cities and towns, other local units of government and any
public trust with a county or a municipality as its sole beneficiary
shall provide for a local bid preference of not more than five
percent (5%). Provided, however, the local bidder or contractor
must agree to perform the contract for the same price and terms as
the bid proposed by the nonlocal bidder or contractor. Provided
further, no local bid preference shall be granted unless the local
bidding entity is the second lowest qualified bid on the contract.
The bid specifications shall clearly state that the bid is subject
to a local bidder preference law. For purposes of this section,
"local bid" means the bidding person is authorized to transact
business in this state and maintains a bona fide establishment for
transacting such business within this state. This provision does
not apply to any construction contract for which federal funds are
available for expenditure when its provisions may be in conflict
with federal law or regulation.

C. Except Unless otherwise provided by law, except as provided
in subsection E of this section, other construction contracts for
the purpose of making any public improvements or constructing any
public building or making repairs to the same for between Ten
Thousand Dollars ($10,000.00) and One Hundred Thousand Dollars
($100,000.00) or construction management trade contracts or
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subcontracts for Fifty Thousand Dollars ($50,000.00) or less shall
be let and awarded to the lowest responsible bidder by receipt of
written bids or awarded on the basis of competitive quotes to the
lowest responsible qualified contractor. Work may be commenced in
accordance with the purchasing policies of the public agency.

D. Except Unless otherwise provided by law, except as provided
in subsection E of this section, other construction contracts for
less than Ten Thousand Dollars ($10,000.00) may be negotiated with a
qualified contractor. Work may be commenced in accordance with the
purchasing policies of the public agency.

E. The provisions of this subsection shall apply to public
construction for minor maintenance or minor repair work to public
school district property districts only. Other construction
Construction contracts for less than Twenty-five Thousand Dollars
($25,000.00) may be negotiated with a qualified contractor. Public
construction contracts for equal to or greater than Twenty-five
Thousand Dollars ($25,000.00) and less than Fifty Thousand Dollars
($50,000.00) shall be let and awarded to the lowest responsible
bidder by receipt of written bids or awarded on the basis of
competitive quotes to the lowest responsible qualified contractor.
Construction contracts equal to or greater than Fifty Thousand
Dollars ($50,000.00) but less than One Hundred Thousand Dollars
($100,000.00) shall be let and awarded to the lowest responsible
bidder by receipt of written bids. No work shall be commenced on
any construction contract until a written contract is executed and
proof of insurance has been provided by the contractor to the
awarding public agency school district.

F. The Construction and Properties Division of the Office of
Management and Enterprise Services may award contracts using best
value competitive proposals. As used in this subsection, "best
value" means an optional contract award system which can evaluate
and rank submitted competitive performance proposals to identify the
proposal with the greatest value to the state. The Office of
Management and Enterprise Services, pursuant to the Administrative
Procedures Act, shall promulgate rules necessary to implement the
provisions of this subsection.

G. 1. A public agency shall not let or award a public
construction contract exceeding One Hundred Thousand Dollars
($100,000.00) or a construction management trade contract or
subcontract exceeding Fifty Thousand Dollars ($50,000.00) to any
contractor affiliated with a purchasing cooperative unless the
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purchasing cooperative and the contractor have complied with all of
the provisions of the Public Competitive Bidding Act of 1974,
including, but not limited to, open competitive bidding after
solicitation for sealed bids. A public agency shall not let or
award a public construction contract exceeding Ten Thousand Dollars
($10,000.00) up to One Hundred Thousand Dollars ($100,000.00) to any
contractor affiliated with a purchasing cooperative unless the
purchasing cooperative and the contractor have complied with all of
the provisions of the Public Competitive Bidding Act of 1974,
including submission of a written bid upon notice of competitive
bidding.

2. A purchasing cooperative and its affiliated contractors
shall not be allowed to bid on any public construction contract
exceeding One Hundred Thousand Dollars ($100,000.00) or any
construction management trade contract or subcontract exceeding
Fifty Thousand Dollars ($50,000.00) unless the purchasing
cooperative and its affiliated contractors have complied with all of
the provisions of the Public Competitive Bidding Act of 1974,
including, but not limited to, open competitive bidding after
solicitation for sealed bids. A purchasing cooperative and its
affiliated contractors shall not be allowed to bid on any public
construction contract exceeding Five Thousand Dollars ($5,000.00)
unless the purchasing cooperative and its affiliated contractors
have complied with all of the provisions of the Public Competitive
Bidding Act of 1974, including submission of a written bid upon
notice of open competitive bidding.

3. Local governmental units, or local governmental units
cooperating under the terms of any interlocal cooperative agreement
authorized by state law, may create a purchasing cooperative or
contract with a purchasing cooperative to provide leverage in
achieving best value or the best terms in contracts. To encourage
intergovernmental collaboration, any purchasing cooperative or
interlocal cooperative entity may utilize any single legal newspaper
of this state to serve as sufficient compliance for bid notice
requirements of competitive bidding or solicitation of bids. If the
purchasing cooperative or interlocal cooperative entity is engaging
in a project exclusive to a county or group of counties of this
state, and not open to all governmental units or public trusts that
wish to participate statewide, the bid notice shall be published in
a legal newspaper located within the county or group of counties.
Any local governmental unit or public trust that enters into
membership or contracts with a purchasing cooperative or interlocal
cooperative entity may enter into purchases or contracts under the
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terms negotiated by the purchasing cooperative or interlocal
cooperative entity. If the purchasing cooperative or interlocal
cooperative entity complies with the requirements of this section of
law, all local governmental units shall be deemed in compliance with
the requirements set forth for bid notices and publication.

SECTION 4. AMENDATORY 61 O.S. 2021, Section 106, as
amended by Section 18, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2025,
Section 106), is amended to read as follows:

Section 106. Complete bidding documents regarding a proposed
public construction contract or construction-management trade
contract or subcontract shall be available to the public at least
twenty (20) days prior to the date set for opening bids. The
awarding public agency, or its agent, may require a reasonable
deposit for each set of bidding documents; provided, that such
deposit shall not exceed the actual cost of duplicating or printing.
The public agency, or its agent, may retain all or part of said
deposit if so stated in the notice for bids.

SECTION 5. AMENDATORY 61 O.S. 2021, Section 110, as
amended by Section 21, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2025,
Section 110), is amended to read as follows:

Section 110. Bids whether submitted in paper or electronic
format shall be opened only at the time and place listed in the
bidding documents. Paper bids shall be opened in the presence of an
administrative officer of the awarding public agency and be read
aloud at the time of opening. Such bid opening shall be open to the
public and to all bidders. Electronic bids shall not be viewable
prior to the time listed for bid opening in the bidding documents.
Electronic bids may be opened in a public bid opening in the same
way as for paper bids. A public bid opening is not required for
electronic bids if the awarding public agency electronically
publishes the bids provides a live video feed of the bid opening on
its website at time of bid opening.

SECTION 6. AMENDATORY 61 O.S. 2021, Section 111, is
amended to read as follows:

Section 111. The awarding of a contract to the lowest
responsible bidder or bidders shall be made within thirty (30) days
after the opening of bids unless the governing body of the awarding
public agency, by formal recorded action and for good cause shown,
provides for a reasonable extension of that period, which extension
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period shall not in any event exceed fifteen (15) days where only
state or local funds are involved, or not to exceed ninety (90) days
on any award of contract for the construction of a public
improvement where funds are utilized which are furnished by an
agency of the United States Government. Upon mutual written
agreement between the lowest responsible bidder or bidders and the
awarding public agency, the Division or awarding public agency may
extend the contract award period no more than one hundred twenty
(120) days from the bid opening date.

SECTION 7. AMENDATORY 61 O.S. 2021, Section 112, as
amended by Section 22, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2025,
Section 112), is amended to read as follows:

Section 112. All bids or quotes, both successful and
unsuccessful, and all contracts and required bonds shall be placed
on file and maintained by the awarding public agency for a period of
five (5) years from the date of opening of bids or quotes or for a
period of three (3) years from the date of completion of the
contract, whichever is longer, and shall be open to public
inspection and shall be matters of public record.

SECTION 8. AMENDATORY 61 O.S. 2021, Section 114, as
amended by Section 729, Chapter 486, O.S.L. 2025 (61 O.S. Supp.
2025, Section 114), is amended to read as follows:

Section 114. The chief administrative officer and members of
the governing body of the awarding public agency authorizing or
awarding or supervising the execution of a public construction
contract The officials and employees of the awarding public agency
who authorize or award or supervise the execution of a public
construction contract, and their relatives within the third degree
of consanguinity or affinity, are forbidden to be interested
directly or indirectly through stock ownership, partnership interest
or otherwise in any such contract. Contracts entered into in
violation of this section shall be void. Persons willfully
violating this section shall be guilty of a Class D3 felony offense
punishable by imprisonment as provided for in subsections B through
F of Section 20P of Title 21 of the Oklahoma Statutes and shall be
subject to removal from office.

SECTION 9. AMENDATORY 61 O.S. 2021, Section 116, as
amended by Section 543, Chapter 486, O.S.L. 2025 (61 O.S. Supp.
2025, Section 116), is amended to read as follows:

ENR. H. B. NO. 3418 Page 14
Section 116. A. Any disclosure by an employee of a public
agency of the terms of a bid submitted in response to a bid notice
issued by a public agency in advance of the time set for opening of
all bids so submitted shall be unlawful. It shall also be unlawful
for any person to solicit, possess or receive information which is
to be contained in a bid notice of a public agency, for use in
preparing a bid, in advance of the date on which said bid notice is
to be made equally and uniformly known to all prospective bidders
and the public, and it shall further be unlawful for any employee of
a public agency to withhold or impede the distribution of said
information after notice of the bid has been given, unless the
solicitation of bids has been withdrawn or the particular
information in question has been deleted or replaced through
alteration of the bid notice and said withdrawal or alteration has
been made equally and uniformly known. Any violation of this
subsection shall be 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 and shall render the
proceedings void and require solicitation and award anew It shall be
a felony for any official or employee of a public agency to disclose
the terms of a bid submitted in response to a bid notice issued by a
public agency in advance of the time set for opening of all bids so
submitted, and the proceedings shall be rendered void.

B. The estimate of the actual cost of the project made by the
public agency, construction manager or consultant for the agency It
shall be a felony for any official or employee of a public agency to
provide, or for any other person to solicit or possess or receive,
information which is to be contained in a bid notice of a public
agency in advance of the date on which said bid notice is to be made
equally and uniformly known to all prospective bidders and the
public, and the proceedings shall be rendered void. The estimate of
the actual cost of the project shall not be considered confidential
and shall be available to the public in accordance with the Oklahoma
Open Records Act.

C. It shall be a felony for any official or employee of a
public agency to withhold or impede the distribution of information
contained in a bid notice of a public agency after notice of the bid
has been given, unless the solicitation of bids has been withdrawn
or the particular information in question has been deleted or
replaced through alteration of the bid notice and said withdrawal or
alteration has been made equally and uniformly known.

ENR. H. B. NO. 3418 Page 15
D. Notwithstanding the provisions of subsection A of this
section, a public agency may conduct preliminary procurement
activities for the purpose of developing accurate specifications,
determining appropriate materials, and estimating project costs.
Such activities may include, but are not limited to, market
research, requests for information, vendor outreach, product
demonstrations, site visits, and pre-bid industry engagement.

SECTION 10. AMENDATORY 61 O.S. 2021, Section 117, is
amended to read as follows:

Section 117. If an award is made to other than the lowest
bidder or quoter, the awarding public agency shall accompany its
action with a publicized statement setting forth the reason for its
action. Such statement shall be placed on file, open to public
inspection and be a matter of public record.

SECTION 11. AMENDATORY 61 O.S. 2021, Section 119, is
amended to read as follows:

Section 119. By majority action of the governing board of the
awarding public agency or the chief administrating officer of an
awarding public agency without a governing board, the awarding
public agency shall have the right to reject any or all bids or
quotes and solicit bidders or quoters again as herein provided if,
in the opinion of the governing body of the public agency, the best
interests of the people of the State of Oklahoma would be best
served by so doing.

SECTION 12. AMENDATORY 61 O.S. 2021, Section 119.1, as
amended by Section 25, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2025,
Section 119.1), is amended to read as follows:

Section 119.1. A. If no timely bid or quote is received after
bid notices have been published or quotes have been solicited on any
proposed public construction contract which does not exceed One
Hundred Thousand Dollars ($100,000.00) or on any proposed
construction management trade contract or subcontract which does not
exceed Fifty Thousand Dollars ($50,000.00):

1. The governing body of a county, city, town or school
district may direct its employees or agents to negotiate the
contract with a prospective contractor; or

ENR. H. B. NO. 3418 Page 16
2. The state agency, as defined in Section 202 of this title,
shall request the Office of Management and Enterprise Services to
negotiate a contract on its behalf.

B. The amount of a public construction contract which may be
awarded by the governing body pursuant to this section shall not
exceed One Hundred Thousand Dollars ($100,000.00), nor shall the
amount of a construction management trade contract or subcontract
awarded by the governing body pursuant to this section exceed Fifty
Thousand Dollars ($50,000.00), and the work to be performed shall be
as specified in the initial bidding documents or quote solicitation.
The contract shall be executed within six (6) months after the date
initially set for opening of bids or receipt of quotes. The
contract and contract procedure shall conform to all other
applicable provisions of the Public Competitive Bidding Act of 1974.

SECTION 13. AMENDATORY 61 O.S. 2021, Section 120, is
amended to read as follows:

Section 120. No public construction contract shall be
assignable by the successful bidder contractor without written
consent of the governing body of the awarding public agency,
evidenced by resolution. In no event shall such a contract be
assigned to a bidder who was declared by the awarding public agency
not to be a responsible bidder in the consideration of bids received
for the particular contract.

SECTION 14. AMENDATORY 61 O.S. 2021, Section 121, as
amended by Section 26, Chapter 238, O.S.L. 2022 (61 O.S. Supp. 2025,
Section 121), is amended to read as follows:

Section 121. A. Change orders or addenda to public
construction contracts of One Million Dollars ($1,000,000.00) or
less shall not exceed a fifteen percent (15%) cumulative increase in
the original contract amount.

B. Change orders or addenda to public construction contracts of
over One Million Dollars ($1,000,000.00) shall not exceed the
greater of One Hundred Fifty Thousand Dollars ($150,000.00) or a ten
percent (10%) cumulative increase in the original contract amount.

C. Change orders or cumulative change orders which exceed the
limits of subsection A or B of this section shall require a
readvertising for bids or re-solicitation of quotes on the
incomplete portions of the contract.
ENR. H. B. NO. 3418 Page 17

D. If the awarding public agency does not have a governing
body, the chief administrative officer of the awarding public agency
shall approve change orders. The Director of the Office of
Management and Enterprise Services, or the Director's designee,
shall sign and execute all contracts and change orders, as they
relate to state agencies.

E. If the awarding public agency has a governing body, all
change orders shall be formally approved by the governing body of
the awarding public agency and the reasons for approval recorded in
the permanent records of the governing body. The governing body of
a municipality or technology center may delegate approval of change
orders up to Forty Thousand Dollars ($40,000.00) or ten percent
(10%) of any contract, whichever is less, to the chief
administrative officer of the municipality or technology center or
their designee, with any approved change orders reported to the
governing body at the next regularly scheduled meeting.

F. The Oklahoma Veterans Commission, as the governing body of
the Oklahoma Department of Veterans Affairs, is authorized to
delegate to the Director of the agency the authority to approve
change orders on a construction contract provided that the
individual change order does not exceed Forty Thousand Dollars
($40,000.00) in expenditure, and complies with the limits
established by this section. Change orders approved by the Director
pursuant to a delegation of authority shall be presented to the
Commission during the next regular meeting and the reasons for the
orders recorded in permanent records.

G. The governing body of the Oklahoma Tourism and Recreation
Department is authorized, upon approval of a majority of all of the
members of the Oklahoma Tourism and Recreation Commission, to
delegate to the Director of the agency the authority to approve
change orders on a construction contract provided that the
individual change order does not exceed Twenty-five Thousand Dollars
($25,000.00) in expenditure and complies with the limits established
by this section. The Director of the Office shall sign and execute
all contracts and change orders.

H. The Transportation Commission may, by rule, authorize the
Director of the Department of Transportation to approve change
orders in an amount of not to exceed Five Hundred Thousand Dollars
($500,000.00). Change orders approved by the Director shall be
presented to the Transportation Commission during the next regular
ENR. H. B. NO. 3418 Page 18
meeting and the reasons therefor recorded in the permanent records.
The Oklahoma Turnpike Authority may authorize the Director of the
Authority to approve change orders in an amount not to exceed Two
Hundred Fifty Thousand Dollars ($250,000.00). Change orders
approved by the Director of the Authority shall be presented to the
Authority during the next regular meeting and the reasons for the
orders recorded in permanent records.

I. All change orders for the Department of Transportation or
the Authority shall contain a unit price and total for each of the
following items:

1. All materials with cost per item;

2. Itemization of all labor with number of hours per operation
and cost per hour;

3. Itemization of all equipment with the type of equipment,
number of each type, cost per hour for each type, and number of
hours of actual operation for each type;

4. Itemization of insurance cost, bond cost, Social Security,
taxes, workers' compensation, employee fringe benefits and overhead
cost; and

5. Profit for the contractor.

J. 1. If a construction contract contains unit pricing, and
the change order pertains to changes the unit price, the change
order will not be subject to subsection A or B of this section.

2. When the unit price change does not exceed Twenty Thousand
Dollars ($20,000.00), the unit price change order computation may be
based on an acceptable unit price basis in lieu of cost itemization
as required in paragraphs 1, 2, 3, 4 and 5 of subsection I of this
section.

3. When the unit price change exceeds Twenty Thousand Dollars
($20,000.00), any unit price for a new item established at or below
the average eighteen-month-price history for the new item may be
used in lieu of cost itemization as required in paragraphs 1, 2, 3,
4 and 5 of subsection I of this section.

K. Alternates or add items bid with the original bid or quoted
with the original quote and contained in the awarded contract as
ENR. H. B. NO. 3418 Page 19
options of the awarding public agency shall not be construed as
change orders under the provisions of the Public Competitive Bidding
Act of 1974.

L. Where construction management at-risk is the project
delivery method, the limits established by subsections A and B of
this section shall be based upon the total cost of the project
rather than the cost of the individual trade contracts.

SECTION 15. AMENDATORY 61 O.S. 2021, Section 122, is
amended to read as follows:

Section 122. A. Any person who knowingly violates any
provision of this act not otherwise provided shall, upon conviction,
be guilty of a misdemeanor.

B. Any taxpayer of the State of Oklahoma, or any bona fide
unsuccessful bidder or quoter on a particular public construction
contract, within ten (10) days after any such contract has been
executed, is empowered to bring suit in the district court of the
county where the work, or the major part of it, is to be done to
enjoin the performance of such contract if entered into in violation
of the provisions of this act.

SECTION 16. AMENDATORY 61 O.S. 2021, Section 131, is
amended to read as follows:

Section 131. No contract shall be split into partial contracts
for the purpose of avoiding the requirements of this act. All such
partial contracts shall be void. Any person who knowingly violates
the provisions of this section shall, upon conviction, be guilty of
a misdemeanor punishable by imprisonment in the county jail for not
more than one (1) year, or by a fine of not more than One Thousand
Dollars ($1,000.00), or by both such fine and imprisonment.

SECTION 17. AMENDATORY 61 O.S. 2021, Section 137, is
amended to read as follows:

Section 137. Any contract which has been bid or quoted under
the provisions of the Public Competitive Bidding Act, Section 101 et
seq. of Title 61 of the Oklahoma Statutes, and on which no work has
been performed and no formal claim or litigation has been pending
within the last twenty-four (24) months shall be terminated by the
public agency which awarded the contract. After termination, the
public agency shall determine the amount of any final payment due to
ENR. H. B. NO. 3418 Page 20
the contractor and shall make such payment to the contractor at the
contractor's last-known address, or if the public agency is unable
to locate the contractor, the amount due shall be held in a separate
account by the State Treasurer in the name of the contractor.
Termination of the contract and payment to the contractor or deposit
of the funds due to the contractor as determined by the public
agency shall release the public agency from any further liability to
the contractor or surety company. Any such funds held by the State
Treasurer for the contractor which are not claimed by the contractor
within thirty-six (36) months from the date of deposit with the
State Treasurer shall be deposited in the General Revenue Fund and
the state shall have no further liability on the project to the
contractor or surety company.

SECTION 18. AMENDATORY 61 O.S. 2021, Section 138, is
amended to read as follows:

Section 138. Any competitive bid submitted pursuant to the
Public Competitive Bidding Act of 1974 to a school district, county
or municipality for furnishing of goods or services shall be
accompanied by the sworn noncollusion statement contained in Section
85.22 of this title Title 74 of the Oklahoma Statutes, modified in
wording to refer to the school district, county or municipality
instead of the state.

SECTION 19. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 140 of Title 61, unless there is
created a duplication in numbering, reads as follows:

A. Unless otherwise specifically provided by law, public
agencies shall purchase or lease-purchase or lease all personal
property, including materials and equipment and supplies, estimated
to cost Twenty-Five Thousand ($25,000.00) Dollars or more from the
lowest responsible qualified vendor after soliciting and receiving
written quotes.

B. Unless otherwise provided by law, public agencies are not
required to obtain bids or quotes for professional services as
defined in Section 803 of Title 18 of the Oklahoma Statutes.

C. If a public agency solicits bids or quotes pursuant to
authorized sole-source or sole-brand bidding procedures, such public
agency shall consider any bid or quote for a lower cost that
substitutes an item or service with one that is substantially
ENR. H. B. NO. 3418 Page 21
equivalent in quality and performance or that meets the required bid
or quote specifications.

D. Public agencies shall not write bid or quote specifications
for the purpose of restricting bids or quotes.

E. 1. Each contractor and vendor shall provide to the awarding
public agency a written statement under oath disclosing the names of
all individuals with more than ten percent (10%) ownership interest
in the bidding or quoting company. The statement also shall include
the names of all individuals with more than ten percent (10%)
ownership interest in any entities with any ownership interest in
the bidding or quoting company as well as the names of all
individuals with more than ten percent (10%) ownership interest in
any of those entities as far back in the chain of ownership as
necessary to reveal the names of all individuals with any ownership
interest whatsoever;

2. Each contractor or vendor shall provide to the awarding
public agency a written statement under oath disclosing the names of
its subcontractors and trade contractors;

3. Each subcontractor and trade contractor that is an entity
shall provide a written statement under oath disclosing the names of
all individuals with more than ten percent (10%) ownership interest
in the entity as well as the names of all individuals with more than
ten percent (10%) ownership interest in any entity with any
ownership interest in such entity as far back in the chain of
ownership as necessary to reveal the names of all individuals with
more than ten percent (10%) ownership interest whatsoever;

4. If any contractor or subcontractor or trade contractor or
vendor does not provide such statement, such contract or subcontract
or trade contract shall be void; and

5. The purpose of this subsection is to prohibit individuals
from hiding ownership or employment interests behind entities or
trade names.

F. Nothing in this section shall prohibit a public agency from
prescribing stricter requirements for itself.

SECTION 20. AMENDATORY 70 O.S. 2021, Section 5-135, is
amended to read as follows:

ENR. H. B. NO. 3418 Page 22
Section 5-135. A. The board of education of each school
district shall use the following system of initiating, recording and
paying for all purchases, salaries, wages or contractual obligations
due from any of the funds under the control of such board of
education. However, a school district board of education may use
the procedures outlined in Section 304.1 of Title 62 of the Oklahoma
Statutes for the payment of salaries and wages only if the board so
votes. The provisions contained herein shall not apply to the
sinking fund and school activity fund.

B. The encumbrance clerk and treasurer of the school district
shall each enter the authorized amounts in the various appropriation
accounts of the funds to which this system is applied. The
authorized amounts of appropriations shall be the general fund and
building fund appropriations approved by the county excise board and
such additional amounts as may be applied in the manner provided by
law, the amount received for deposit in a special cash fund where
such special cash fund is authorized by law or required by the
person or agency providing such funds, or the amount of the net
proceeds realized from the sale of bonds of the school district and
any other income due such fund.

C. It shall be the duty and responsibility of the board of
education of the school district to prescribe and administer
adequate business procedures and controls governing the purchase or
confirmation of purchase and delivery of goods or services. The
procedures shall include delivery of an acceptable invoice by
document, facsimile, electronic or other standard form that includes
the information required by the district. Such procedures shall
include the designation of authorized persons to purchase goods or
services for the district and the method of determining the school
employee receiving delivery of each purchase. The provisions of
this subsection shall be in addition to the provisions of Section
140 of Title 61 of the Oklahoma Statutes.

D. Prior to the issuance of a purchase order, the encumbrance
clerk must first determine that the encumbrance will not exceed the
balance of the appropriation to be charged. The encumbrance clerk
shall charge the appropriate appropriation accounts and credit the
affected encumbrances outstanding accounts with the encumbrances.
Encumbrances must be submitted to the board of education in the
order of their issuance on a monthly basis, subject to a monthly
business cycle cut-off date determined by the board of education.
Approved encumbrances shall be listed in the minutes by the minute
clerk.
ENR. H. B. NO. 3418 Page 23

E. Before any purchase is completed, a purchase order or
encumbrance must be issued. No bill shall be paid unless it is
supported by an itemized invoice clearly describing the items
purchased, the quantity of each item, its unit price, its total cost
and proof of receipt of such goods or services. The bill and/or
invoice shall be filed in the encumbrance clerk's official records.
If a district has the ability to electronically utilize evaluated
receipt settlement (ERS), the district may remit to vendors on that
basis if the requirements of this subsection are fulfilled. In the
event a district is establishing electronic data interchange,
electronic entries will suffice in lieu of paper documents. In
order for a district to be authorized to utilize an evaluated
receipt settlement system:

1. The ERS must result in payment by the district from vendor
receipts that have been matched to the purchase order date;

2. The ERS may only be used when there is an agreement between
the district and the vendor for use of an ERS; and

3. The ERS must be included in the district's journal
ledger/accounts payable/purchase order software.

F. The encumbrance clerk shall debit the encumbrances
outstanding account and credit the accounts payable account for the
amount of the approved bill. The board of education shall determine
the extent such costs may fluctuate without additional board action.
Minor adjustments not requiring additional board approval shall be
referenced to the original encumbrance.

G. An approved bill may be paid by issuing a warrant or check
against the designated fund only after ascertaining that proper
accounting of the purchase has been made and that the files contain
the required information to justify the expenditure of public funds,
except as otherwise provided in subsection I of this section. The
warrants or checks so issued shall be recorded in an orderly
numerical system established by the district. The encumbrance clerk
shall charge the warrant or checks against the accounts payable
account and credit it to the warrants or checks issued account.
Provided, if payment is to be made immediately and the board of
education deems it advisable, the postings to the accounts payable
account may be omitted and the payment of the approved bill may be
credited directly to the warrants or checks issued account. The
warrant or check shall show on its face the name of the school
ENR. H. B. NO. 3418 Page 24
district, the date of issue, the payee, the amount, the expenditure
classification code, and such other information as may be necessary
or desirable. The president and clerk of the board of education
shall each sign the warrant or check, or approved facsimile thereby
denoting to the public that the warrant or check is for the purpose
and within the amount of the appropriation charged.

H. The treasurer shall register the warrant or check in the
warrant or check register, charging the appropriation account and
crediting the warrants or checks outstanding account of the
designated fund. Provided, no warrant or check shall be registered
in excess of the appropriation account's balance. All warrants or
checks shall be registered in the order of their issuance. Voided
warrants or checks shall be registered and filed with the treasurer.
The treasurer shall sign each warrant or check through individual
signature or approved facsimile showing its registration date and
shall state whether it is payable or nonpayable. When a warrant or
check is paid, the treasurer shall maintain evidence the warrant or
check has been processed and paid. Nothing in this subsection shall
prohibit any governing board from using automated recordkeeping
procedures, provided the information required in this subsection can
be accessed.

I. Any board of education of a school district of this state
may make a payment which would otherwise be made by warrant or
check, by disbursement through an Automated Clearing House, bank
account debit system, wire transfer through the Federal Reserve
System, or any other automated payment system operated by a
financial institution insured by the Federal Deposit Insurance
Corporation. The internal controls over such payment system shall
be reviewed and approved by the independent auditor of the district
during the annual audit. The provisions of Sections 601 through 606
of Title 62 of the Oklahoma Statutes shall apply to instruments or
payment authorized by this subsection.

J. School districts complying with the provisions of this act
shall use only those forms and accounting systems approved by the
State Board of Education. Such forms and systems shall be
considered in substantial compliance with this act if they are
sufficient to convey the meaning and sequence of transactions
contained herein. Provided, nothing contained herein shall be
construed to limit or prevent the use of additional or subsidiary
accounts, forms, or files which may be deemed necessary or advisable
by the board of education of the district or the State Board of
Education.
ENR. H. B. NO. 3418 Page 25

K. Any school district desiring to utilize the services of a
data processing center to furnish any or all of the records herein
required may do so if the center and its system complies with this
act and the rules and regulations of the State Board of Education.
Such center shall furnish an honesty bond in an amount to be set by
the board of education but not less than Ten Thousand Dollars
($10,000.00).

L. The State Board of Education shall notify the board of
education of the school district of the tentative amount the
district is to receive from state and federal aid funds or
allocations, and the board of education of the school district may
include such tentative estimate as an item of probable income in the
preparation of the school district's Estimate of Needs and Financial
Statement; provided, no such federal aid estimate shall be used in
any way to reduce the State Foundation Aid or Incentive Aid for such
school district or sustain a protest for the reduction of a tax
levy.

SECTION 21. This act shall become effective November 1, 2027.

ENR. H. B. NO. 3418 Page 26
Passed the House of Representatives the 4th day of May, 2026.

Presiding Officer of the House
of Representatives

Passed the Senate the 28th day of April, 2026.

Presiding Officer of the Senate

OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.

_________________________________
Governor of the State of Oklahoma

OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________