Senate Bill 2941

AN ACT TO PROVIDE THAT THE DEPARTMENT OF FINANCE AND ADMINISTRATION SHALL BE THE PURCHASING AGENT FOR ALL PUBLIC SCHOOL DISTRICTS IN THE STATE; TO PROVIDE THAT ALL PUBLIC SCHOOL DISTRICTS SHALL PURCHASE PERISHABLES, COMMODITIES, EQUIPMENT, SUPPLIES AND SCHOOL BUSES THROUGH THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO ESTABLISH AN OFFICE OF SCHOOL PURCHASING OF THE DEPARTMENT OF FINANCE AND ADMINISTRATION; TO PROVIDE THAT THE SAVINGS RESULTING FROM THE CONSOLIDATION OF ALL PURCHASING FUNCTIONS TO A CENTRAL DEPARTMENT SHALL BE CERTIFIED TO THE LEGISLATIVE BUDGET OFFICE AND SHALL BE APPROPRIATED BY THE LEGISLATURE FOR THE SUPPORT OF THE VARIOUS STATE FUNDED SCHOLARSHIP PROGRAMS AT THE STATE INSTITUTIONS OF HIGHER LEARNING; TO AMEND SECTIONS 31-7-12, 37-39-1, 37-39-5, 37-39-15, 37-39-17, 37-39-21, 37-39-23, 37-39-25, 37-41-101 AND 37-41-103, MISSISSIPPI CODE OF 1972, IN CONFORMITY THERETO; AND FOR RELATED PURPOSES.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. (1) The Department of Finance and Administration shall be the purchasing agent for all public school districts in the State of Mississippi. The purchases of all perishables, commodities, supplies, equipment and school buses for the use of public school districts shall be made by the Department of Finance and Administration. The Department of Finance and Administration may establish an Office of School Purchasing and employ a competent person as Director of the Office of School Purchasing who shall be a member of the state service and shall receive a salary as determined by the Executive Director of the Department of Finance and Administration with the approval of the State Personnel Board. It shall be the duty of each local school board to make or cause to be made a list of perishables, commodities, supplies, equipment and school buses, including quality specifications when applicable, regularly used in the schools under its supervision, and to maintain such a list in the Office of School Purchasing of the Department of Finance and Administration. Such list shall be used by the Office of School Purchasing in obtaining competitive bids for perishables, commodities, supplies, equipment and school buses to be purchased for each school district, and shall be available to any interested person. Purchases made by school districts from the petty cash fund of One Hundred Dollars ($100.00) shall be exempt from Office of School Purchasing disbursement and competitive bid.

(2) The Executive Director of the State Department of Finance and Administration shall, on an annual basis, determine the savings in state and local funds which has accrued as a result of the consolidation of the purchasing function of school districts to a central state agency, and shall include this amount in its annual budget request as a separate line item which shall be appropriated by the Legislature for the support of the various scholarship programs at the state institutions of higher learning.

SECTION 2. 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 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 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, without obtaining or advertising for competitive bids. Governing authorities that do not exercise the option to purchase such commodities from the state contract vendor or from another source offering the identical commodity 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 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 on the state contract are the lowest and best prices available from any source offering that commodity 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 involved, 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 from the requirement that the lowest and best price be approved by order placed on its minutes.

(5) All school districts shall purchase perishables, commodities, supplies, equipment and school buses from vendors with which the Office of School Purchasing of the Department of Finance and Administration has contracted through competitive bidding procedures pursuant to Section 31-7-13 for purchases of the same perishables, commodities, supplies, equipment and school buses. * * *

SECTION 3. Section 37-39-1, Mississippi Code of 1972, is amended as follows:

37-39-1. The following words and phrases, when used in this chapter, shall, for the purpose of this chapter, have the meanings respectively ascribed to them in this section:

(a) "Perishables" shall mean items which have a variable market price on which vendors are unable to submit a long-range price such as fruits and vegetables;

(b) "Purchasing agent" shall mean the Office of School Purchasing of the Department of Finance and Administration * * *;

(c) "School boards" shall mean the local governing boards of all school districts in the state, whether they act jointly or separately;

(d) "Services" shall mean maintenance, operational and scholastic services utilized within and for the school district or school districts.

SECTION 4. Section 37-39-5, Mississippi Code of 1972, is amended as follows:

37-39-5. It shall be the duty of each school board to make or cause to be made, a list of supplies, equipment, perishables, commodities and school buses, including quality specifications when applicable, regularly used in the schools under its supervision, and to maintain such a list in the Office of School Purchasing of the Department of Finance and Administration. Such list shall be used by the Office of School Purchasing in obtaining competitive bids for supplies, equipment, perishables, commodities and school buses to be purchased, and shall be available to any interested persons.

SECTION 5. Section 37-39-15, Mississippi Code of 1972, is amended as follows:

37-39-15. * * * In connection with the purchase of necessary supplies, equipment, perishables, commodities and school buses for the conduct of regular school operations, school boards shall * * * designate as their purchasing agent or agents the Office of School Purchasing of the Department of Finance and Administration to make such purchases * * * subject to competitive bid requirements in Sections 31-7-1 et seq., Mississippi Code of 1972.

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SECTION 6. Section 37-39-17, Mississippi Code of 1972, is amended as follows:

37-39-17. Purchases of items regularly used in connection with school operation * * * made from the petty cash fund in small quantities of One Hundred Dollars ($100.00) or less may be made without the necessity of requiring competitive bids or quotations, but shall be purchased by contract whenever feasible. School boards shall have the authority, however, to award such small purchases to different points in the school district or county, * * * when the best interests of the district or county warrant such action. * * *

SECTION 7. Section 37-39-21, Mississippi Code of 1972, is amended as follows:

37-39-21. The purchasing agent of the Office of School Purchasing of the Department of Finance and Administration, before entering upon his official duties in such capacity, shall furnish a good and sufficient surety bond in the penal sum of Fifty Thousand Dollars ($50,000.00), with sufficient surety. Such bonds shall be payable, conditioned and approved in the manner provided by law, and shall be filed and recorded in the Office of the Clerk of the Chancery Court of Hinds County, Mississippi. The premium on said bond shall be paid out of the Mississippi Adequate Education Funds.

SECTION 8. Section 37-39-23, Mississippi Code of 1972, is amended as follows:

37-39-23. * * * It is the purpose of Section 37-39-1 et seq. to enable the school systems to achieve economies of scale through increased purchasing power to the end that the education tax revenues be utilized efficiently.

SECTION 9. Section 37-39-25, Mississippi Code of 1972, is amended as follows:

37-39-25. (1) * * * The school board shall appoint the Office of School Purchasing of the Department of Finance and Administration as purchasing agent who shall be responsible * * * for all purchases of competitively priced services, materials and supplies. * * * The purchasing agent shall serve all of the school districts acting jointly. There shall not be a separate purchasing agent for the separate school districts * * *.

(2) The Office of School Purchasing of the Department of Finance and Administration shall arrange for purchase, storage and distribution of supplies, materials, perishables, commodities, equipment and school buses purchased for school districts. The costs involved in purchase, transportation, storage, administration and any other activity regarding * * * purchases by the Office of School Purchasing shall be shared among the school districts on a pro rata basis.

SECTION 10. Section 37-41-101, Mississippi Code of 1972, is amended as follows:

37-41-101. (1) The Office of School Purchasing of the Department of Finance and Administration is hereby authorized, empowered and directed to advertise for and receive sealed bids and proposals for sale of school bus bodies and school buses sold as complete units to the school boards of school districts in this state. The Office of School Purchasing shall approve persons, firms, corporations or associations authorized to sell school bus bodies and school buses sold as complete units, and shall establish prices relative thereto based upon the lowest and best bids, which school districts may not exceed in purchasing such equipment. In determining the lowest and best bids received for such equipment, there shall be included as part of the total cost thereof any transportation or freight charges which will be incurred. The Office of School Purchasing may permit all such bidders to sell said equipment provided that the bidders agree to sell the equipment at prices established based upon the lowest and best bid and in compliance with rules and regulations relative thereto promulgated by the state board. Persons, firms, corporations or associations permitted to sell school bus bodies and school buses sold as complete units shall be limited to those actually submitting bids for consideration by the Office of School Purchasing. The Office of School Purchasing shall reserve the right to reject any and all bids submitted.

(2) The Office of School Purchasing of the Department of Finance and Administration may purchase school bus bodies and school buses sold as complete units without additional advertisement for bids, provided that the prices for such equipment do not exceed the maximum allowable prices established under the provisions of subsection (1) of this section, and that said purchases are in compliance with the conditions specified therein. All such purchases shall be subject to the approval of the Office of School Purchasing which shall verify compliance with the applicable specifications, rules and regulations * * *.

(3) In addition to the method of purchasing authorized under this section, the Office of School Purchasing of the Department of Finance and Administration is hereby authorized to advertise for and accept the lowest and best bid received for the purchase of school bus chassis and/or pupil transportation service vehicles. Provided, however, that the Office of School Purchasing may purchase school bus chassis and/or pupil transportation service vehicles from any motor vehicle dealer domiciled within the county of such school district, whose bid does not exceed a sum equal to three percent (3%) greater than the price or cost which the dealer pays the manufacturer, as evidenced by the factory invoice for such vehicles. In the event said county does not have an authorized motor vehicle dealer, said Office of School Purchasing may, in like manner, receive and accept bids from motor vehicle dealers in any adjoining county. No purchase of school bus chassis or service vehicles under the provisions of this subsection shall be valid unless the purchase is made according to statutory bidding and licensing requirements. All purchases under provisions of this subsection shall be subject to the approval of the Office of School Purchasing, which shall verify compliance with the applicable specifications, rules and regulations. * * *

(4) * * * The Office of School Purchasing of the Department of Finance and Administration is hereby authorized to purchase used school buses and used pupil transportation service vehicles, provided that said vehicles meet applicable specifications and the purchase price does not exceed their fair market value. Said fair market value shall be determined by an appraisal by three (3) experienced and impartial citizens, the selection of whom shall be mutually agreed upon by the parties thereto. Said appraisers may be subject to approval by the Office of School Purchasing. Maximum regard for pupil safety and adequate protection of health shall be primary requirements which shall be observed by the Office of School Purchasing in purchasing used school buses. The Office of School Purchasing may inspect or have inspected any used school bus prior to purchase to determine whether said bus meets requirements of law and regulations of the Office of School Purchasing.

(5) In the event the school board shall have determined that school buses or pupil transportation service vehicles are no longer needed for the transportation of pupils in such school district, such equipment may be sold to another school district without the necessity of advertising for bids. The school district proposing to sell the buses or service vehicles and the school district proposing to purchase such equipment shall agree upon a fair and reasonable price therefor. The agreement shall be spread upon the minutes of the boards of the respective school districts and shall be subject to the prior approval of the Office of School Purchasing, which shall verify compliance with applicable specifications, rules and regulations * * *.

SECTION 11. Section 37-41-103, Mississippi Code of 1972, is amended as follows:

37-41-103. For the further purpose of carrying out the provisions of Sections 37-41-81 through 37-41-101, the Office of School Purchasing of the Department of Finance and Administration is further authorized and empowered to adopt and promulgate reasonable rules and regulations not inconsistent with the law for such purpose. Said Office of School Purchasing shall have, in addition, all power and authority conferred upon it by the provisions of Sections 37-41-1 through 37-41-53 or any other statute.

SECTION 12. This act shall take effect and be in force from and after July 1, 2007.