Req. No. 8591 Page 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 STATE OF OKLAHOMA 2nd Session of the 58th Legislature (2022) HOUSE BILL 3298 By: Humphrey AS INTRODUCED An Act relating to public finance; amending 62 O.S. 2021, Section 34.301, which relates to the Civil Service and Human Capital Moderniz ation Act; requiring Human Capital Management Division investigate certain state agencies; and providing an effective date. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 62 O.S. 2021, Secti on 34.301, is amended to read as follows: Section 34.301 A. This act shall be known and may be cited as the "Civil Service and Human Capital Modernization Act ". B. The Human Capital Management D ivision of the Office of Management and Enterprise Services shall: 1. Establish and maintain a State Employee Dispute Resolution Program, which may include mediation, to provide dispute resolution services for state agencies and state employees. Actions agreed to through the State Employee D ispute Resolution Pro gram shall be consistent with applicable laws and rules and shall not alter, Req. No. 8591 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 reduce or modify any existing right or authority as provided by statute or rule; 2. Establish rules pursuant to the Adm inistrative Procedures Act as may be necessary to perform t he duties and functions of this act, including creating an Office of Veterans Placement to offer counseling, assessment and assistance to veterans seeking state employment; 3. Receive and only act on complaints by state employees arising from disciplinary action; 4. Use administrative law judges as independent contractors to exercise the provisions of this act; 5. Submit quarterly reports on workload statistics to the Governor, the Speaker of the Oklahoma House of Representatives and the President Pro Te mpore of the Oklahoma State Senate containing the following information: a. the number of cases, complaints and requests for hearings filed, disposed of and pending with the Division for each month of the quarter, and b. a numerical breakdown of the method s of disposition of such cases, complaints and requests for hearing. Quarterly reports shall be submitted within thirty (30) days following the last day of the month of the appropriate quarter; and 6. Create a confidential whistleblow er program and serve as the chief administrator of such program whereby a state employee may Req. No. 8591 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 confidentially report claims of agency or employee mismanagement as well as misuse of state funds or property. C. Complaints shall be filed with the Human Capital Management Division within five (5) business days of the date of when such action occurred and hearings shall take place within twenty -five (25) business days of the action. D. Employees filing a complaint with the H uman Capital Management Division shall prove that there was no reasonable basis for the disciplinary action by the state agency. The review of the merits of the complaint shall be limited to the employee disciplinary file directly at issue. Complaints re lating to punitive transfers or writte n reprimands shall be administrated through mediation. Mediation may also be available for other disciplinary actions. E. Claimants shall be permitted to secure and utilize representation during the adverse action pr ocess. F. The presiding officer of an y proceeding before t he Human Capital Management Division may require payment of reasonable attorney fees and costs to the prevailing party if the position of the nonprevailing party was without reasonable basis or was frivolous. G. For purposes of this s ection, "disciplinary actions" means termination, suspension without pay, involuntary demotion, punitive transfers or written reprimand. Req. No. 8591 Page 4 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 H. Nothing in this section shall apply to: 1. Persons employed by the Governor, Lieutenant Governor, Oklahoma House of Representatives, Ok lahoma State Senate, Legislative Service Bureau, or the Legislative Office of Fiscal Transparency; 2. Elected officials; 3. Political appointees; 4. District attorneys, assistant district attorn eys or other employees of the district attorney's office; 5. The state judiciary or persons employed by the state judiciary; or 6. Not more than five percent (5%) of an agency 's employees designated as executive management as determined by the agency director. I. Except as provided by subse ction H of this secti on, effective January 1, 2022, all state employee positions shall be administered by the Human Capital Management Division of the Office of Management and Ent erprise Services, without reference to prior classified or unclassified statu s. J. Under the administration and oversig ht of the Human Capital Management Division as set forth in subsection I of this section, state agencies shall continue to be responsibl e for developing and conducting policies and procedures for human resource ac tivities, including, but not limited to, re cruitment, retention, promotion, Req. No. 8591 Page 5 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 market-based pay analysis, training and development. In addition, state agencies shall develop procedu res for screening, hiring and disciplinary actions of state employees subject to guidance and approval by the Division. K. The Human Capital Management Division shall investigate and take remedial action for any state agency that has at least twenty- five percent (25%) or more cases filed than the average amount of cases filed for all other state agenc ies. SECTION 2. This act shall become effective November 1, 2022. 58-2-8591 LRB 01/05/22