Bill Text: MS SB2922 | 2012 | Regular Session | Introduced
Bill Title: Public purchasing; DFA shall adopt regulations governing the purchasing of services by state agencies.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2012-03-06 - Died In Committee [SB2922 Detail]
Download: Mississippi-2012-SB2922-Introduced.html
MISSISSIPPI LEGISLATURE
2012 Regular Session
To: Accountability, Efficiency, Transparency
By: Senator(s) Collins
Senate Bill 2922
AN ACT TO AMEND SECTIONS 31-7-9 AND 31-7-11, MISSISSIPPI CODE OF 1972, TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO ADOPT PURCHASING REGULATIONS GOVERNING THE PURCHASE BY ANY AGENCY OF ANY SERVICE, SUBJECT TO THE APPROVAL BY THE PUBLIC PROCUREMENT REVIEW BOARD; TO AMEND SECTION 31-7-12, MISSISSIPPI CODE OF 1972, TO REQUIRE AGENCIES TO PURCHASE SERVICES AT THE STATE CONTRACT PRICE FROM THE APPROVED SOURCE, UNLESS APPROVAL IS GRANTED BY THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO AMEND SECTION 31-7-23, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT ANY REBATES, REFUNDS, COUPONS, MERIT POINTS, GRATUITIES OR ANY ARTICLE OF VALUE RECEIVED BY ANY AGENCY SHALL INURE TO THE BENEFIT OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION AND SHALL BE DEPOSITED INTO A SPECIAL FUND; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 31-7-9, Mississippi Code of 1972, is amended as follows:
31-7-9. (1) (a) The Office of Purchasing, Travel and Fleet Management within the Department of Finance and Administration shall adopt purchasing regulations governing the purchase by any agency of any commodity or service and establishing standards and specifications for any commodity or service and the maximum fair prices of any commodity or service, subject to the approval of the Public Procurement Review Board. It shall have the power to amend, add to or eliminate purchasing regulations. The adoption of, amendment, addition to or elimination of purchasing regulations shall be based upon a determination by the Office of Purchasing, Travel and Fleet Management with the approval of the Public Procurement Review Board, that such action is reasonable and practicable and advantageous to promote efficiency and economy in the purchase of commodities by the agencies of the state. Upon the adoption of any purchasing regulation, or an amendment, addition or elimination therein, copies of same shall be furnished to the State Auditor and to all agencies affected thereby. Thereafter, and except as otherwise may be provided in subsection (2) of this section, no agency of the state shall purchase any commodity or service covered by existing purchasing regulations unless the commodity or service is in conformity with the standards and specifications provided in the purchasing regulations and unless the price thereof does not exceed the maximum fair price established by the purchasing regulations. The * * * Office of Purchasing, Travel and Fleet Management shall furnish to any county or municipality, or other local public agency of the state requesting same, copies of purchasing regulations adopted by the Office of Purchasing, Travel and Fleet Management and any amendments, changes or eliminations * * * that may be made from time to time.
(b) The Office of Purchasing, Travel and Fleet Management may adopt purchasing regulations governing the use of credit cards, procurement cards and purchasing club membership cards to be used by state agencies, governing authorities of counties and municipalities and the Chickasawhay Natural Gas District. Use of the cards shall be in strict compliance with the regulations promulgated by the office. Any amounts due on the cards shall incur interest charges as set forth in Section 31-7-305 and shall not be considered debt.
(2) The Office of Purchasing, Travel and Fleet Management shall adopt, subject to the approval of the Public Procurement Review Board, purchasing regulations governing the purchase of unmarked vehicles to be used by the Bureau of Narcotics and Department of Public Safety in official investigations pursuant to Section 25-1-87. Such regulations shall ensure that purchases of such vehicles shall be at a fair price and shall take into consideration the peculiar needs of the Bureau of Narcotics and Department of Public Safety in undercover operations.
(3) The Office of Purchasing, Travel and Fleet Management shall adopt, subject to the approval of the Public Procurement Review Board, regulations governing the certification process for certified purchasing offices. Such regulations shall require entities desiring to be classified as certified purchasing offices to submit applications and applicable documents on an annual basis, at which time the Office of Purchasing, Travel and Fleet Management may provide the governing entity with a certification valid for one (1) year from the date of issuance.
SECTION 2. Section 31-7-11, Mississippi Code of 1972, is amended as follows:
31-7-11. Each agency of the state shall furnish information relative to its purchase of commodities and services, and as to its method of purchasing the commodities and services, to the Department of Finance and Administration annually and at such other times as the Department of Finance and Administration may request.
The Department of Finance and Administration shall have supervision over the purchasing and purchasing practices of each state agency and may by regulation or order correct any practice that appears contrary to the provisions of this chapter or to the best interests of the state. If it shall appear that any agency is not practicing economy in its purchasing or is permitting favoritism or any improper purchasing practice, the Department of Finance and Administration shall require that the agency immediately cease such improper activity, with full and complete authority in the Department of Finance and Administration to carry into effect its directions in such regard.
All purchases, trade-ins, sales or transfer of personal property made by any officer, board, agency, department or branch of the state government except the Legislature shall be subject to the approval of the Department of Finance and Administration. Such transaction shall be made in accordance with rules and regulations of the Department of Finance and Administration relating to the purchase of state-owned motor vehicles and all other personal property. The title of such property shall remain in the name of the state.
SECTION 3. Section 31-7-12, Mississippi Code of 1972, is amended as follows:
31-7-12. (1) Except in regard to purchases of unmarked vehicles made in accordance with purchasing regulations adopted by the Department of Finance and Administration pursuant to Section 31-7-9(2), all agencies shall purchase commodities or services at the state contract price from the approved source, unless approval is granted by the Department of Finance and Administration to solicit purchases outside the terms of the contracts. However, prices accepted by an agency shall be less than the prices set by the state contract. Prices accepted by an agency shall be obtained in compliance with paragraph (a), (b) or (c) of Section 31-7-13. It shall be the responsibility of the Department of Finance and Administration to ascertain that the resulting prices shall provide a cost effective alternative to the established state contract.
(2) Governing authorities may purchase commodities or services approved by the Department of Finance and Administration from the state contract vendor, or from any source offering the identical commodity, at a price not exceeding the state contract price established by the Department of Finance and Administration for such commodity or service, without obtaining or advertising for competitive bids. Governing authorities that do not exercise the option to purchase such commodities or services from the state contract vendor or from another source offering the identical commodity or service at a price not exceeding the state contract price established by the Department of Finance and Administration shall make such purchases pursuant to the provisions of Section 31-7-13 without regard to state contract prices established by the Department of Finance and Administration, unless such purchases are authorized to be made under subsection (5) of this section.
(3) Nothing in this section shall prohibit governing authorities from purchasing, pursuant to subsection (2) of this section, commodities or services approved by the Department of Finance and Administration at a price not exceeding the state contract price established by the Department of Finance and Administration.
(4) The Department of Finance and Administration shall ensure that the prices of all commodities and services on the state contract are the lowest and best prices available from any source offering that commodity or service at the same level of quality or service, utilizing the reasonable standards established therefor by the Department of Finance and Administration. If the Department of Finance and Administration does not list an approved price for the particular item or service involved, the purchase shall be made according to statutory bidding and licensing requirements. To encourage prudent purchasing practices, the Department of Finance and Administration shall be authorized and empowered to exempt certain commodities or services from the requirement that the lowest and best price be approved by order placed on its minutes.
(5) Any school district may purchase commodities or services from vendors with which any levying authority of the school district, as defined in Section 37-57-1, has contracted through competitive bidding procedures pursuant to Section 31-7-13 for purchases of the same commodities or services. Purchases authorized by this subsection may be made by a school district without obtaining or advertising for competitive bids, and such purchases shall be made at the same prices and under the same conditions as purchases of the same commodities or services are to be made by the levying authority of the school district under the contract with the vendor.
SECTION 4. Section 31-7-23, Mississippi Code of 1972, is amended as follows:
31-7-23. (1) Any rebates, refunds, coupons, merit points, gratuities or any article of value tendered or received by any * * * governing authority from any vendor of material, supplies, equipment or other articles shall inure to the benefit of the * * * governing authority making the purchase. The * * * governing authority may, in accordance with its best interest, either take delivery of the article of value tendered and use the same or convert it to cash by selling it for its fair and reasonable value, making use of the proceeds from such sale for the exclusive benefit of the * * * governing authority.
(2) Any rebates, refunds, coupons, merit points, gratuities or any article of value tendered or received by any agency from any vendor of material, supplies, equipment or other articles shall inure to the benefit of the Department of Finance and Administration and shall be deposited into a special fund hereby created in the State Treasury to be designated the "Department of Finance and Administration Special Fund." Unexpended funds remaining in the special fund at the end of the fiscal year shall not lapse into the State General Fund, but shall remain in the fund and any interest earned or investment earnings shall remain in the fund. The Department of Finance and Administration may, in accordance with its best interest, either take delivery of any article of value tendered and use the same or convert it to cash by selling it for its fair and reasonable value, making use of the proceeds from such sale for its exclusive benefit.
SECTION 5. This act shall take effect and be in force from and after July 1, 2012.
