HB3420 HFLR Page 1 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 HOUSE OF REPRESENTATIVES - FLOOR VERSION STATE OF OKLAHOMA 2nd Session of the 58th Legislature (2022) COMMITTEE SUBSTITUTE FOR HOUSE BILL NO. 3420 By: Osburn of the House and Pugh of the Senate COMMITTEE SUBSTITUTE An Act relating to state employees; amending 62 O.S. 2021, Section 34.301, which re lates to the Civil Service and Human Capital Modernization Act; modifying powers and duties; authorizing legal counsel; modifying exemptions ; amending 74 O.S. 2021, Sections 840-1.3, 840-1.6, 840-1.6A, 840-1.7, 840- 1.18, 840-1.20, 840-2.9, 840-2.10, 840-2.10a, 840- 2.13, 840-2.14, 840-2.16, 840-2.17, 840-2.18, 840- 2.19, 840-2.20, 840-2.21, 840-2.23, 840-2.25, 840- 2.27C, 840-2.27D, 840-4.19, 840-5.3 and 840-7.1, which relate to the Oklahoma Personnel Act; modifying definitions; removing definitions; abolishing the Oklahoma Merit Protection Commission; transferring powers, duties, and assets to the Civil Service Division of the Office of Management and Enterprise Services; removing obsolete language; updating references; modifying definition; modifying days of scheduled reduction-in-force; modifying reduction-in- force implementation plan; modifying severance benefit packages; providing ex ception; authorizing Civil Service Director to delegate authority to issue certain final agency orders; repealing 74 O.S. 2021, Sections 840-1.2, 840-1.6B, 840-1.8, 840-1.9, 840- 1.10, 840-1.12, 840-1.13, 840-1.15, 840-1.19, 840- 1.21, 840-2.5, 840-2.6, 840-2.27A, 840-2.27B, 840- 2.27F, 840-2.27G, 840-2.27I, 840-2.29, 840-3.2, 840- 3.4, 840-3.5, 840-3.6, 840-3.7, 840-3.9, 840-3.10, HB3420 HFLR Page 2 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 840-3.11, 840-3.12, 840-3.13, 840-3.14, 840-3.15, 840-3.16, 840-3.17, 840-4.1, 840-4.2, 840-4.3, 840- 4.4, 840-4.6, 840-4.8, 840-4.9, 840-4.10, 840-4.11, 840-4.12, 840-4.13, 840-4.14, 840-4.15, 840-4.16, 840-5.1, 840-5.1A, 840-5.2, 840-5.2A, 840-5.2B, 840- 5.4, 840-5.5, 840-5.6, 840-5.7, 840-5.8, 840-5.9, 840-5.11, 840-5.12, 840-5.13, 840-5.13A, 840-5.15, 840-5.16, 840-5.18, 840-5.19, 840-5.20, 840-5.21, 840-5.23, 840-5.24, 840-5.25, 840-5.26, 840-5.27, 840-6.1, 840-6.2, 840-6.3, 840-6.4, 840-6.5, 840-6.6, 840-6.7, 840-6.8, and 840-6.9, which relate to the Oklahoma Personnel Act; providing for codification; and declaring an emergency. BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 62 O.S. 2021, Section 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 Civil Service Division 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 employe es. Actions agreed to through the State Employee Dispute Resolution Program shall be consistent with applicable laws and rules and shall not alter, reduce or modify any existing right or authority as provided by statute or rule; HB3420 HFLR Page 3 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. Establish rules pursua nt to the Administrative Procedures Act as may be necessary to perform the 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 or administrative law judges provided by the Office of Attorney General to exercise the provisions of this act ; 5. Submit quarterly rep orts on workload statistics to the Governor, the Speaker of the Oklahoma House of Re presentatives and the President Pro Tempore 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 metho ds 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 a ppropriate quarter; and 6. Create a confide ntial whistleblower program and serve as the chief administrator of such program whereby a sta te employee may confidentially report claims of agency o r employee mismanageme nt as HB3420 HFLR Page 4 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 well as criminal misuse of state funds or property. Mismanagement includes fraudulent activity or a buse or violation of a well- established, articulated, clear , and compelling public policy. The Office of the Attorney General s hall have the authority to investigate and determine whether to prosecute such whistleblower claims. The Attorney General shall also have the power to refer such claims to the appro priate district attorn ey. C. Complaints shall be filed with the Human Capital Management Civil Service Division within five (5) ten (10) business days of the date of when such acti on occurred and hearings shall take place within twenty-five (25) thirty (30) business days of from the action filing of the complaint. D. Employees filing a complaint with the Human Capital Management Civil Service Division shall prove that there was no reasonable basis for the disciplinary action by the sta te agency. The review of the merits of the complaint shall be limited to the employee disciplinary file directly at issue. Complaints relating to punitive transfers or written reprimands shall be administrated through mediation first and shall only proceed to a hearing if mediation is unsuccessful. Employees who were offered a relocation incentive as set forth in administrative rule shall not be deemed as being subject to a punitive transfer. Complaints relating to written reprimands shall be administered through mediation HB3420 HFLR Page 5 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 exclusively. Mediation may also be av ailable for other disciplinary actions. E. Claimants shall be permitted to secure and utilize representation during the adverse action process. F. The presiding officer of any proceeding before the Human Capital Management Civil Service Division may require payment of reasonable attorney fees and costs to the prevailing party if the position of the nonprev ailing party was without reasonable basis or was frivolous. G. For purposes of this section, "disciplinary actions" means termination, suspension without pay, involu ntary demotion, punit ive transfers or written reprimand. H. Nothing in this section shall apply to: 1. Persons employed by the Governor, Lieutenant Governor, Oklahoma House of Representatives, Oklahoma State Sena te, Legislative Service Bureau, or the Legislative Office of Fi scal Transparency; 2. Elected officials; 3. Political appointee s; 4. District attorneys, assistant district attorneys or other employees of the district attorney's office; 5. The state judiciary or persons employed by the state judiciary; or HB3420 HFLR Page 6 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. Not more than five percent ( 5%) of an agency's employees designated as executive management as determined by the agency director; 7. Temporary employees employed to work less than one thousand (1,000) hours in any twelve -month period; 8. Seasonal employees emp loyed to work less tha n one thousand six hundred (1,600) hours in any twelve-month period; 9. Employees in a trial period; or 10. State employees whose employment status is oth erwise provided by law. I. Except as provided by subsection H of this sectio n, effective January 1, 2022, all state employee positions shall be administered by the Human Capital Management Civil Service Division of the Office of Management and Enterprise Services, without reference to prior classified or unc lassified status. J. Under the administratio n and oversight of the Human Capital Management Civil Service Division as set forth in subsection I of this section, state agencies shall continue to be responsible for developing and conducting policies and procedures for hu man resource activities, including, but not limited to, recruitment, retention , promotion, market-based pay analysis, training and developmen t. In addition, state agencies shall de velop procedures for screening, hiring and disciplinary actions of state em ployees subject to guidance and approval by the Division. HB3420 HFLR Page 7 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 K. The Civil Service Division is authorized to employ attorneys or contract with private attorneys to serve as legal counsel to the Civil Service Division. The attorneys shall be authorized to appear for and represent the Civil Service Division in all li tigation that may arise from the discharge of its duties, including the representation the Civil Service Division when its decisions are appealed to higher courts. Attorneys employed by the Office of Management and Enterprise Services to represent the Civi l Service Division shall represent the Civil Service Division notwithstanding its representation of the Office of Management and Enterprise Services in the same or related matters pending before the Civil Service Division or before any court. The Office of Management and Enterprise Services shall establish internal administrative procedures to ensure that all departments within the Office of Management and Enterprise Services are provided independent legal representation, and such simultaneous representat ion shall not, of itself, be deemed to constitute a conflict of interest. L. The Civil Service Division shall be exempt from the requirements set forth in Section 20i of Title 74 of the Oklahoma statutes when carrying out the du ties and functions of this act. SECTION 2. AMENDATORY 74 O.S. 2021, Section 840-1.3, is amended to read as follows: HB3420 HFLR Page 8 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 840-1.3 As used in the Oklahoma Per sonnel Act, unless otherwise provided in Section s 840-1.1 through 840-6.9 of this title: 1. "Agency" means any office, department, board, commission or institution of the executive branch of state gov ernment; 2. "Employee" or "state employee" means an elected or appointed officer or employee of an age ncy unless otherwise indicated; 3. "Appointing authority " means the chief administrative officer of an agency; 4. "Classification" means: a. the process of placing an employee into an appropriate job family and level within the job family, consistent with the allocation of the position to which the employee is assigned, o r b. an employee's job family and the level at which work is assigned; 5. "Classification plan" means the orderly arrangement of positions within an agency into separate and distinct job families so that each job family will contain those positions which involve similar or comparable skills, duties and responsibilities; 6. "Classified service" means state employees and positions under the jurisdiction of the Oklahoma Merit System of Pers onnel Administration; HB3420 HFLR Page 9 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 7. "Copy" means the duplication of an original document or recording. The copy may be provided in an electronic format generated from technology having electrical, digital, magnetic, wireless, optical, electromagnetic, or similar ca pabilities; 8. "Entrance examination" means any employment test used by the Office of Management and Enterprise Services to rank the names of applicants who possess the minimum requirements of education, experience, or licensure for a job or group of simi lar jobs on a register of eligibles established by the Office of Mana gement and Enterprise Services; 9. "Job" means a position or job family level in a job family; 10. "Job family" means: a. jobs which require similar core skills and involve similar work, and b. a logical progression of roles in a specific type of occupation in which the differences between roles are related to the depth and breadth of e xperience at various levels within the job family and w hich are sufficiently similar in duties and requ irements of the work to warrant similar treatment as to title, typica l functions, knowledge, skills and abilities required, and education and experience requirements; HB3420 HFLR Page 10 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 11. "Job family level" means a role in a job family having distinguishable characteristi cs such as knowledge, skills, abilities, education, and experience; 12. "Job family descriptor" means a written document that: a. describes a job family , including, but not limited to, the basic purpose, typ ical functions performed, various levels within the job family, and the knowledge, skills, abilities, education, and experience required for each level, and b. identifies the pay band assigned for each level; 13. "Promotional examination " means any employment test designated by the Office of Management and Enterprise Services to determine further the qualifications of a permanent classified employee of a state agency for employment in a different job f or which the employee possesses the minimum qualificati ons of education, experience, or licensure withi n that agency; 14. "Interagency transfer" means an action in which a n employee leaves employment with one agency and enters employment with another agency while continuously employed with the state; 15. "Intra-agency transfer" means moving an employee fr om one position to another position with the same agency either with or without reclassification; 16. "Job-related organization" means a membership asso ciation which collects annual dues, conducts annual meetings and provides HB3420 HFLR Page 11 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 job-related education for its members and which includes state employees, including any associatio n for which payroll deductions for membership dues are authorized pursuant to paragr aph 5 of subsection B of Section 7.10 34.70 of Title 62 of the Oklahoma Statutes; 17. "Lateral transfer" means the reassignment of an employee to another state job with th e same pay band assignment as the job family level in which the employee was classified pr ior to the lateral transfer; 18. "Merit Rules" or "Merit Rules for Employment " or "Merit System of Personnel Administration Rules" means rules adopted by the Director of the Office of Management and Enterprise Services or the Oklahoma Merit Protection Com mission pursuant to the Oklahoma Personnel Act; 19. "Noncompetitive appointment " means the appointment of a person to a noncompetitive job level within a job family; 20. "Noncompetitive job" means an unskilled or semiskilled job designated by the Office of Management and Enterprise Services as noncompetitive. Noncompetitive jobs do not require writ ten examinations for placement on registers of eligibles; 21. "Permanent classified employee" means a classified service employee who has acquired permanent s tatus in accordance with the Oklahoma Personnel Act, and rules adopted pursuant thereto, and who HB3420 HFLR Page 12 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 has the right to appeal involuntary demotion, suspension without pay, and discharge to the Commission; 22. "Presiding official" means a person serving the Okl ahoma Merit Protection Commission in the capac ity of administrative hearing officer, mediator, or other alternative dispute resolution arbitrator or facilitator; 23. 5. "Progressive discipline" means a system designed to ensure the consistency, impartiality and predictability of discipline and the fl exibility to vary penalties if justified by aggravating or mitigating conditions; 24. "Reclassification" means the process of changing a classified employee from one job family to another job family or from one job family level to another job family level in the same job family, resulting in a change in t he employee's assigned job code; 25. "Regular and consistent " means, in connection with the work assignments of an employee, the usual and normal work assignment s of the employee, excluding incidental, ca sual, or occasional tasks and activities the employ ee assumes without direction to do so. Temporary work assignments of less than sixty (60) days in any twelve (12) consecutive months period shall not be consider ed regular and consistent; HB3420 HFLR Page 13 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 26. "Regular unclassified service employee " means an unclassified service employee who is not on a temporary or other time-limited appointment; 27. 6. "Supervisor" means a classified or unclassified an officer or employee who has bee n assigned authority and responsibility for evaluating the performance of subordinates; 28. "Unclassified service" or "exempt service" means employees and positions excluded from coverage of the Oklahoma Merit System of Personnel Administration; 29. "Merit System" means the Oklahoma Merit S ystem of Personnel Administration; 30. 7. "Director" means the appointing authority of the Office of Management and Ent erprise Services; 31. "Executive Director" means the appointing authority of the Oklahoma Merit Prote ction Commission; 32. 8. "Office" means the Office of Management and Enterprise Services; and 33. "Commission" means the Oklahoma Merit Protection Commission; 34. 9. "Veteran" means a person who has been honorably discharged from the Armed Forces of the United St ates and has been a resident of Oklahoma for at least one (1) year prior to the date of the examination; and HB3420 HFLR Page 14 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 35. "Voluntary out" means the voluntary separation of employees from the state service in exchange for benefits offered by an agency in order to reduce or eliminate the adverse impact of an imminent reduction-in-force. SECTION 3. AMENDATORY 74 O.S. 2021, Section 8 40-1.6, is amended to read as follows: Section 840-1.6 A. The internal administrative organization of the Office of Management and En terprise Services shall be determined by the Director of the Office of Management and Enterprise Services in such a manner as to promote the efficient and effective enforcement of the Oklahoma Personnel Act. B. The Director of the Office of Management and Enterprise Services may employ attorneys, accountan ts and other personnel as the Director deems necessary to carry out t he duties imposed upon the Office. C. Employees of the Office shall be subject to the Merit System of Personnel Administration, unless otherwise exempted by Section 840-5.5 of this title. SECTION 4. AMENDATORY 74 O.S. 2021, Secti on 840-1.6A, is amended to read as follows: Section 840-1.6A The Office of Personnel Management Division of the Office of State Finance is hereby was consolidated into and renamed the Office of Management and Enterprise Services. Where the term "Office of Personnel Management" is used within the Oklahoma HB3420 HFLR Page 15 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Statutes, it shall mean the Office of Management and Enterprise Services. The chief administrative officer shall be the Director of the Office of Management and Enterprise Services. In addition to the other duties imposed by law, the Director shall: 1. Be responsible for the development of an efficient and effective system of personnel administration that meets the management needs of the various agencies; 2. Organize the Office to provide both service and regulatory functions that are effective and ef ficient in meeting the management needs of various state agencies. The Dire ctor is directed to establish an agency service function to assist agencies with human resource needs based upon the administrati ve capacity and resources of the various agencies; 3. Prepare, maintain, and revise a classified system of employment designed to ensure the impartial consideration of applicants for employment and to protect state employees from arbitrary dismissal or un fair treatment; 4. Develop and maintain a classifi cation and compensation system for all classified positions in the executive branch of state government including those established by t he Oklahoma Constitution; 5. Conduct an analysis of the rates of pay prevailing in the state in the public and private sectors for comparable jobs and report the findings to the Governor, the Pre sident Pro Tempore of the Senate, and the Speaker of the Hou se of Representatives no later HB3420 HFLR Page 16 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 than December 1 of each year. Such an alysis shall include all forms of compensation incl uding fringe benefits. Information solicited by the Office of Management an d Enterprise Services from public and private sector employe rs for such analysis, including but not limited to salaries, benefits , and compensation policies and procedures, shall be confidential and shall not be subject to disclosure under the Oklahoma Ope n Records Act; 6. Develop a program for the recruitment of qualified persons, including the administration of valid job-related nondiscriminatory selection procedures providing fo r competitive examinations and other job-related assessments. As part of th e recruitment program established by this section, the Direc tor may identify positions or job family levels for expedited recruit ment. Such expedited recruitment jobs may include only those jobs where education, experience or certification requirements su bstantially limit the pool of available applicants. Applica nts who have been certified by the Office of Management and Enterpris e Services as meeting the minimum qualifications fo r such jobs may be referred to agencies with vacancies in such jobs without examination or ranking, and may be eligible for appointment upon referral. However, a referral may not occur until the register for the job has been publicly announced for at least fourteen (14) calendar days. The Director may remove positions or job fam ily levels from expedited recruitment at any HB3420 HFLR Page 17 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 time. The Director shall promulgate rules to implement expedited recruitment; 7. Develop and implement a reasonable and expeditious m ethod for referral of capable candidates for vacancies, probationary periods of employment, and the employment of individuals on other types of appointments as necessary; 8. Assist state agencies in imple menting their duties and obligations pursuant to the Oklahoma Personnel Act and provide standard forms to the agencies if n ecessary; 9. 7. Develop, in cooperation with appointing authori ties, employee training programs, management trai ning programs, a certified public manager program, a recruiting program, and a system of performance appraisals, and assist appointing authori ties in the setting of productivity goals. The Director may esta blish and collect fees for participation in train ing programs. The D irector is authorized to purchase awards for presentation to state employees as part of employee recognition activities sp onsored by the Office of Management and Enterprise Services; 10. 8. Establish rules for leave and pay including, but not limited to, rules for leave, furloughs, performance pay increases, rates for pay differentials, on-call pay, and other types of p ay incentives and salary adjustments consistent with the Oklahoma Personnel Act and reduction-in-force; HB3420 HFLR Page 18 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 11. Assist the Oklahoma Merit Prot ection Commission and the Executive Director in effectuating their duties, enforcement of the rules of the Merit System of Personnel Adminis tration, and implementation of corrective actio n issued by the Commission; 12. 9. Be responsible for the developmen t and maintenance of a uniform occupation code system, grouped by job titles or duties, for all classified and unclassified state positions. The responsibility shall include the establis hment of rules governing the identification, tracking, and reporting of all state positions as provided in Section 840-2.13 of this title; 13. 10. Be responsible for advising state agencies on personnel policy and administration; 14. 11. Establish standards for continuing training, including affirmative action, and certification of personnel professionals in the executive branch of state government, excluding institutions within The Oklahoma State System of Higher Education. Employees appointed to professional personnel positions shall complete an initial training program within one (1) year after assuming the professional personnel position. Thereafter, they shall complete annual training requirements. Ea ch appointing authority shall ensure that all professional personnel employees are notified of, and scheduled to atte nd, required training programs and shall make time available for employees to complete the programs. The Director shall be authorized to b ill agencies for the training of personnel HB3420 HFLR Page 19 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 professionals pursuant to this paragraph to recover reasonable costs associated with the training. Monies receive d for such training shall be deposited in the Human Capital Management Revolving Fund. Expenditure of such funds collected for the training shall be exempt from any expenditure limit on the Office of Management and Enterprise Services established by law; 15. 12. Not less than once during each two-year period, conduct a study identifying the following, by job family descriptors: a. selected job family levels jobs with a turnover rate in excess of ten percent (10%), b. selected job family levels jobs identified by the Director of the Office of Management and Enterprise Services with salaries and benefits that are ten percent (10%) or more below the ma rket for such positions, and c. selected job family levels jobs identified by the Director in which recruitment efforts have yielded a low number of qualified applicants; 16. Issue orders directing agencies to: a. conform and comply with the provisions of the Oklahoma Personnel Act, the Merit Rules of Personnel Administration, and all memoranda or other written communications issued to agencies explaining the Oklahoma Personnel Act, the Rules, and any other HB3420 HFLR Page 20 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 matter relating to the Merit System of Personnel Administration or under the jurisdiction of the Director, and b. take action pursuant to Section 840-6.9 of this title for failure to implement those orders; 17. 13. Establish a workforce planning function w ithin the Office of Management and Enterprise Se rvices to assist state agencies in analyzing the current workforce, d etermining future workforce needs, and i mplementing solutions so that agencies may accomplish their missions; and 18. 14. Establish a quality management function within the Office of Management and Enterprise Services and shall assist state agencies in fully integrating quality management concepts an d models into their business practices for the purpose of improving the overall efficiency and eff ectiveness of state government. SECTION 5. AMENDATORY 74 O.S. 2021, Section 840-1.7, is amended to read as follows: Section 840-1.7 A. There is hereby created the The Oklahoma Merit Protection Commission , to continue until December 31, 2022 is hereby abolished. Whenever the terms "Ethics and Merit Commission", or "Special Counsel of the Ethics and Merit Commission", or the "Oklahoma Merit Protection Commission" appear in the Oklahoma Statutes, they shall mean the Oklahoma Merit Protection Commiss ion or the Executive Director of the Oklahoma M erit Protection HB3420 HFLR Page 21 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Commission as may be appropriate to the context in which they appear. The Oklahoma Merit Protection Commission shall consist of nine (9) members who shall be appointed for a term of three (3) years. The members shall be removable only for cause, as provided by law for the removal of officers not subject to impeachment. Two members of the Commission shall be appointed by the President Pro Tempore of the Senate. Two members of the Commission s hall be appointed by the Speaker of the House o f Representatives. Five members of the Commission shall be appointed by the Governor. No more than four of the appointments made by the Governor shall be from the same political party. Of the initial appoin tments made to the Commission, one member appoi nted by the President Pro Tempore, one member appointed by the Speaker and one member appointed by the Governor shall be for a term of three (3) years; and one member appointed by the President Pro Tempore, on e member appointed by the Speaker and one membe r appointed by the Governor shall be for a term of two (2) years. The remaining three initial appointments by the Governor shall be designated to serve a term of one (1) year. At the expiration of the initia l term, each new appointee shall serve a three-year term. All initial appointments shall be made prior to July 1, 1982. B. Members of the Co mmission shall be entitled to reimbursement for expenses incurred in the performance of their duties as provided in the State Travel Reimbursement Act. HB3420 HFLR Page 22 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. The Commission shall elect a chairman to serve a two-year term and such other officers as deemed nec essary for the performance of their duties. The Commission shall hold regular meetings not less than once a month and such additional meetings as called by the chairman as may be required for the proper discharge of its duties Civil Service Division of the Office of Management and Enterprise Services. B. Any funds appropriated to, in the possession of , or allocated to the Commission shall be deemed to be funds of the Office of Management and Enterprise Serv ices. C. Upon request of the Directo r of the Office of Management and Enterprise Services, the personnel of the Commission shall deliver to the Office of Management and Enterprise Servic es all books, papers, records, and property of the Commission. D. All functions, powers, duties, and obligations previously assigned to Commission are hereby transferred to the Office of Management and Enterprise Services. E. All rules, regulations, act s, orders, determinati ons, and decisions of the Commission pertaining to the functions and powers herein transferred and assigned to the Office of Management and Enterprise Services in force at the time of such transfer, assignment, assumption , or devolution shall continue in f orce and effect as rules, regulations, acts, or ders, determinations, and HB3420 HFLR Page 23 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 decisions of the Commission until duly modified or abrogated by the appropriate body or until otherwi se provided by law. SECTION 6. AMENDATORY 74 O.S. 2021, Section 840-1.18, is amended to read as follows: Section 840-1.18 A. The administrative expen ses and costs of operating the Merit System shall be paid by the various divisions of the state government included within the Merit System , and each such agency shall be authorized to include in its budget estimates its pro rata share of such costs, and s hall remit such shares quarterly from departmental or agency funds to the Office of Management and Enterprise Services who shall deposit su ch shares to the credit of the General Revenue Fund of the State Treasury. B. The Director shall maintain accurate r ecords reflecting the costs of administering its provisions, and at the close of each quarter-year period shall summarize said costs, and s hall bill each department or agency included within the terms of the Oklahoma Personnel Act with a pro rata share of the administrative costs based on the relationship between the quarterly average number of employees in the classified service of such depa rtment or agency, and the quarterly average number of employees in the classified service of the state. C. The Director shall separately categorize and estimate expenditures and budget needs for other services performe d which are not appropriately charged to state agencies on a pro rata basis. HB3420 HFLR Page 24 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 D. Any state agency for which the Director provides payroll services shall pay for such services at a rate established by the Director, which shall be based upon the cost to the Director of providing such services. Each agency shall remit payment for such services quarterly from departmental or agency funds to the Director who shall deposit such payments into the Office of Human Capital Management and Enterprise Services Revolving Fund created in Section 840-1.20 of this title. E. B. No state disbursing or auditing officer shall make or approve or take any part in making or appro ving any payment for personal service to any person holding a position in the state classified service, brought under the Oklahoma Personnel Act law unless the payroll voucher or account of such pay bears the certification of the appointing authority or de signee, that the persons named therein have been appointed and e mployed in accordance with the provisions of the Oklahoma Personnel Act law and the rules promulgated hereunder. The appointing authority or designee may for proper cause withhold certificati on from an entire payroll or from any specific item or items the reon. Any citizen may maintain a suit to restrain a disbursing officer from making any payment in contravention of any provision of the Oklahoma Personnel Act or law or rules promulgated hereu nder. Any sum paid contrary to any provision of the Oklahoma Personnel Act law or any rule promulgated hereunder may be recovered in an ac tion HB3420 HFLR Page 25 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 maintained by any citizen, from any officer who made, approved or authorized such payment or who signed or count ersigned a voucher, payroll, check or warrant for such payment, or f rom the sureties on the official bond of any such officer. All monies recovered in any such action shall be paid into the State Treasury. Any person appointed or employed in contravention of any provision of the Oklahoma Personnel Act law or any rules or orders promulgated hereunder, whose employment is brought within the te rms of the Oklahoma Personnel Act law, who performs service for which he or she is not paid, may maintain an action a gainst the officer or officers who purported to appoint or employ the pe rson to recover the agreed pay for such services, or the reasonable value thereof if no pay was agreed upon. No officer shall be reimbursed by the state at any time for any sum paid t o such person on account of such services. If the appointing authority o r designee wrongfully withholds certification of the payroll vouche r or account of any employee, such employee may maintain an action or proceeding in the courts to compel the appointing authority or designee to certify such payroll voucher or account. SECTION 7. AMENDATORY 74 O.S. 2021, Section 840-1.20, is amended to read as follows: Section 840-1.20 A. There is hereby created in the State Treasury a revolving fund for the Office of Management and HB3420 HFLR Page 26 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Enterprise Services to be designated the "Human Capital Management Revolving Fund". The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of fees received by the Office of Management and Enterprise Services for providing training for a certified public managers program and all other monies received by the Office of Management and Enterprise Services, except for appropriated monies and monies received as payment for administrative expenses under Section 840-1.18 of this title. All monies accruing to the credit o f the fund are hereby appropriated and may be budgeted and expended by the Office of Management and Enterprise Services for defraying the costs incurred in performin g the duties and functions of the Office. Expenditures from the fund shall be made upon wa rrants issued by the State Treasurer ag ainst claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. B. There is hereby created a petty cash fund not to exceed Two Hundred Fifty Dollars ($250.00) for the Office of Manage ment and Enterprise Services. The Director of the Office of Management and Enterprise Services shall prescribe the rules and procedures for the administration of the petty cash fund. C. Any monies in or obligations against the Employee Benefits Revolving Fund and the Benefits Council Administration Revolving Fund shall be transferred to the Human Capital Management Revolving Fund. Funds previously designated for deposit into the Employee HB3420 HFLR Page 27 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Benefits Revolving Fund and the Benefits Council Administration Revolving Fund shall be deposited into the Human Capital Management Revolving Fund. D. The Office of Management and Enterprise S ervices is hereby directed to pay from the fund the costs of transcribing the record of any proceeding before the Office of Manage ment and Enterprise Services, which record may be designated by an indigent respondent, if such respondent first establishes i ndigent condition through execution of an in forma pauperis affidavit upon a form approved by the Office of Management and Enterpr ise Services; provided, that if the indigent respondent has a financial recovery the fund shall be reimbursed from the proceed s. SECTION 8. AMENDATORY 74 O.S. 2021, Section 840 -2.9, is amended to read as follows: Section 840-2.9 A. No person in the state service, whether subject to the provisions of the Merit System or in unclassified service, shall be appointed to or demoted or dismissed from any position in the state serv ice, or in any way favored or discriminated against with respect to employment in the state service because of political or religious opinions or affiliations, race, creed, gender, colo r or national origin or by reason of any physical handicap so long as t he physical handicap does not render the employee unable to do the w ork for which he or she is employed. The hiring of special disabled veterans pursuant to Sections 401 HB3420 HFLR Page 28 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 through 404 of Title 72 of the Oklahoma Statutes shall not constitute favoritism as herein p rohibited. B. No person shall use or promise to use, directl y or indirectly, any official authority or influence, whether possessed or anticipated, to secure or attempt to secur e for any person an appointment or advantage in appointment to a position in the classified service, or an increase in pay or other advanta ge in employment in any such position, for the purpose of influencing the vote or political action of any person, or for any consideration. Letters of inquiry, recommendation and reference for pu blic employees by public officials shall not be considered of ficial authority or influence unless such letter contains a threat, intimidation, or irrelevant, derogatory or false information. C. No person shall make any false statement, certificate, score, rating or report with regard to any test, certification or appointment made under any provision of the Oklahoma Personnel Act to state service or in any manner commit any fraud related to employment in state service preventing the implementation of the provisions of the Oklahoma Personnel Act law and rules made pursuant thereto. D. No employee, examiner or other person shall deny, deceive or obstruct any person in his or her rig ht to examination, eligibility, certification or appointment or furnish to any person any spe cial or secret information for the purpose of effecting the rights or HB3420 HFLR Page 29 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 prospects of any person with respect to employment in the classified state service. E. No person shall, directly or indirectly, give, render, pay, offer, solicit or accept any money, se rvice or other valuable consideration for or a s a result of any appointment, proposed appointment, promotion or proposed promotion to or any advantage in, a position in the classified or unclassified state service. F. Alleged violation of this section sha ll be reported to the Oklahoma Merit Protection Commission Attorney General. SECTION 9. AMENDATORY 74 O.S. 2021, Section 840-2.10, is amended to read as follows: Section 840-2.10 A. There is hereby created a State Employee Assistance Program within the Department of Mental Health and Substance Abuse Services Office of Management and Enterprise Services. All functions, powers, duties, fun ds and obligations of the Office of Management and Enterprise Services in administration of the State Employee Assistance Program shall be transferred to the Department. The program may shall provide assistance to state agencies in their management of employees whose personal problems may have a negative impact on job performance. The program may also provide for assessment, referral, consu ltation, and problem resolution assistance to state employees and their family members seeking corrective help with medical or mental health problems, including alcohol or drug abuse and emotional, marital, familial, HB3420 HFLR Page 30 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 financial or other personal problems. Participation in the State Employee Assistance Program shall be on a voluntary basis. B. The Department Office may enter into contracts which are necessary and proper to carry out the purposes and functions of the State Employee Assistance Program and est ablish standards and criteria which shall be met by entities to be eligible to contract with the Department Office. C. The Commissioner Director of the Department Office is hereby directed to: 1. Promulgate promulgate rules necessary for the administration of the State Employee Assistance Program and the maintenance and release of participant records; and 2. Establish evaluation metho ds to assess the effectiveness of the State Employee Assistance Pro gram. D. Nothing in this act is intended to nullify any agency's existing employee assistance program or to prohibit any state agency from establishing its own employee assistance program; provided, however, such programs established by state agencies sha ll be subject to complianc e with rules promulgated by the Commissioner Director of the Department Office to ensure equitable treatment of employees. E. Records that relate to participation by an individual in the State Employee Assistance Program or an employee assistanc e program established by a state agency shall be maintained separate and apart HB3420 HFLR Page 31 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 from regular personnel records and shall not become part of an employee's personnel file. Suc h records relating to an individual's participation in an employee assistance progr am shall be confidential and neither the records nor the testimony of an Employee Assistance Program professional shall be subject to subpoena unless a participant poses a t hreat to deliberately harm the participant or others. Such determination shall be made by an Employee Assistance Program professional. A participant in an employee assistance program shall have a right of access to his or her own employee assistance prog ram records. F. No provision of this section or the rules promulgated pursuant to this section shall be construed to conflict with an appointing authority's responsibility and authority to maintain discipline or to take disciplinary measures against emplo yees for misconduct or unacceptable performance. Further, participation or nonparticipation in any state employee assistance program shall not excuse an employee from discipline or otherwise affect the terms and conditions of such employee 's employment status or opportunities for advancement with the state. G. The Legislature and the j udicial branch of state government may utilize the services of the State Employee Assistance Program at their discretion. SECTION 10. AMENDATORY 74 O.S. 2021, Section 840-2.10a, is amended to read as follows: HB3420 HFLR Page 32 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 840-2.10a A. State agencies shall provide or contract to provide, through the State Employee Assistance Program, debriefing and counseling services for state employees who are involved in, witness or are otherwise exposed to a violent or traumatic event in the workplace. B. State employees who are affected by such events shall be encouraged to participate in debriefing or counseling services and paid administrative leave sh all be provided. However, employees shall have the option to refuse services offered. C. The Director of the Department of Mental Health and Substance Abuse Services Office of Management and Enterprise Services shall promulgate rules to implement the provisions of th is section which, at a minimum, shall specify the types of events which shall qualify state e mployees for debriefing and counseling services. SECTION 11. AMENDATORY 74 O.S. 2021, Section 840-2.13, is amended to read as follows: Section 840-2.13 A. The Director of the Office of Management and Enterprise Services shall est ablish a Personnel Management Information System to provide various management reports to facilitate decision making within agencies, and to prom ote the efficient utilization of personnel resources by providing a method for tracking, monitoring and reporti ng positions and employee transactions. The System shall include information on both the HB3420 HFLR Page 33 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 classified and unclassified services state service positions within the executive branch of government, but shall not require institutions within The Oklahoma State S ystem of Higher Education to participate. B. The Director of the Office of Management and Enterprise Services shall promulgate rules regarding t he Personnel Management Information System as necessary to implement the provisions of this section. Such rules shall establish a schedule to ensure the orderly implementation of such Personnel Management Information System. C. The Personnel Management I nformation System shall be implemented for all state agencies under the Merit System by July 1, 1993, and for all other executive branch state agencies by July 1, 1994. D. State agencies shall assist the Office of Management and Enterprise Services as nec essary to ensure the orderly completion of implementation as provided for in this section. E. D. Appointing authorities in the legislative or judicial branches of state government may participate in the Personnel Management Information System at their op tion. SECTION 12. AMENDATORY 74 O.S. 2021, Section 840-2.14, is amended to read as foll ows: Section 840-2.14 A. The intent of the Legislature is to increase individual agency skill and accountability in managing the HB3420 HFLR Page 34 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 costs associated with personnel and in applying controls that will enhance the ability of the State of Oklahoma to manage the overall costs of human resources as efficiently as possible, while continuing to maintain fairness to employees. B. The Office of Management and Enterprise Servi ces shall produce an electronic report on an annual basis of all reallocation decisions for career service positions. C. The Office of Management and Enterprise Services shall produce an electronic report on an annual basis of all transactions in the career service and executive state service involving the establishment of new positions. D. As a further control on human resource costs, the Governor may declare a financial emergency or implement a freeze in hiring, by declaring this section to be in effect. CompSource Oklahoma shall not be subject to the provisions of this subsection. During such periods, no audits of classified positions or reallocation of unclassified positions shall be initiated or conducted at the request of an agency except at the dire ction of the Governor. The provisions of the Oklahoma Personnel Act relating to agency - requested audits may be suspended during such periods to the extent that they are in conflict with this section. Provided, an audit at the request of an employee who f iles a classification griev ance shall be conducted during such periods in accordance with the provisions of Section 840-4.3 of this title. HB3420 HFLR Page 35 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. The provisions of this section shall not be construed to suspend the responsibility of any agency to ensure that the duties and responsibilities assigned to an employee are consistent with the current classification of the employee. SECTION 13. AMENDATORY 74 O.S. 2021, Section 840-2.16, is amended to read as follows: Section 840-2.16 Except as otherwise provided by la w, any classified, unclassified or exempt employee of the state, exclu ding members of boards and commissions, institutions under the administrative authority of the Oklahoma State Regents for Higher Education, employees of public school districts and elect ed officials, on July 1 of each year, earning less than the amount established in the Federal Poverty Guidelines for a three-person household, issued each year in the Federal Register by the United States Department of Health and Human Services, shall rece ive the necessary grade or salary adjustment to provide for a minimum annualized salary equal to the amount established in the Federal Poverty Guidelines for a three-person household, issued each year in the Federal Register by t he United States Department of Health and Human Services. Any classified, unclassified or exempt employee of the state, excluding members of boards and commissions, institutions under the administrative authority of the Oklahoma State Regents for Higher Education, employees of publ ic school districts and elected officials, employed after July 1, 2007 , shall receive a minimum HB3420 HFLR Page 36 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 annualized salary equal to the amount established in the Federal Poverty Guidelines for a three-person household, issued each year in the Federal Register by th e United States Department of Health and Human Services. This section shall not apply to those persons employed pursuant to paragraph 8 and paragraph 12 of subsection A of Section 840-5.5 and Section 2241 of this title or those persons employed pursuant to Section 1.6a of Title 53 of the Oklahoma Statutes. SECTION 14. AMENDATORY 74 O.S. 2021, Section 840-2.17, is amended to read as follows: Section 840-2.17 A. Unless otherwise provided by the Oklahoma Constitution, statutory auth ority to set or fix compensation, pay or salary of state officers and employees shall not be construed to authorize any agency, board, commission, department, institution, bureau, executive officer or other entity of the executiv e branch of state government to award, grant, give, authorize, or promise any officer or employee of the State of Oklahoma a raise that is inconsistent with the compensation schedules established by the Office of Management and Enterprise Services for all state officers and employees in the executive branch pursuant to Section 840 -4.6 of this title, including, but not limited to, a cost-of-living raise or any other type of raise that would be given to state employees on an across-the-board basis, except as herein provided. Such rais es are prohibited unless authorized by the Legislature and by Career HB3420 HFLR Page 37 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Service Rules for Employment rules promulgated by the Director. This prohibition applies to all career and executive service officers and employees in the exec utive branch of state gover nment, excluding institutions under the administrative aut hority of the Oklahoma State Regents for Higher Education. B. However, nothing in this section shall be construed to prohibit the following actions if the action is made in good faith and not for the purpose of circumventing subsection A of this section, and if the appointing authority certifies that the action can be implemented for the current fiscal year and the subsequent fiscal year without the need for additional fun ding to increase the personal services budget of the agency, and if the Office of Management and Enterprise Services certifies that the action is consistent with the compensation schedules established pursuant to the provisions of Section 840-4.6 of this title act: 1. Salary advancemen ts on promotion or direct reclassification to a job family level or class with a higher salary band; 2. Salary adjustments resulting from a pay band change for a job family level or class adopted by the Office of Management and Enterprise Services; 3. Increases in longevity payments pursuant to Section 840 -2.18 of this title; 4. Payment of overtime, special entrance rates, pay differentials; HB3420 HFLR Page 38 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 5. Payment of wages, salaries, or rates of pay established and mandated by law; 6. Market adjustments for job family levels jobs tied to market competitiveness; 7. Intra-agency lateral transfers, provided that the adjustment does not exceed five percent (5%) and the adjustment is based on the needs of the agency; 8. Skill-based adjustments. Such adjustments, which are implemented before November 1, 2006, other than lump -sum payments, shall become permanent after twenty-four (24) months from the date such salary adjustment is implemented and may not later be removed from an employee's base salary if a furlough o r reduction-in-force is implemented by the appoin ting authority granting such salary adjustment. Skill-based pay adjustments, which are implemented on or after November 1, 2006, and which are paid to an employee, shall be paid as long as the employee rema ins employed in the position and performs the skills for whic h the differential is due, but shall not be included as a part of the employee's base salary; 9. 8. Equity-based adjustments; 10. 9. Performance-based adjustments for employees who received at least a "meets standards" rating on their most current performance rating; or 11. 10. Career progression increases as an employee advances through job family levels; or HB3420 HFLR Page 39 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 12. Salary adjustments not to exceed five percent (5%) f or probationary career employees achieving permanent status following the initial probationary period a nd permanent career employees successfully completing trial periods after intra-agency lateral transfer or promotion to a different job family level or f ollowing career progression to a different job family level. C. Provided, however, any reclassification salary increase for one of the purposes provided in subsection B of this section that would require additional funding by the Legislature shall not be implemented without approval of the Legisl ature. D. The pay movement mechanisms described in paragraph s 6 through 11 in subsection B of this section shall be implemented pursuant to rules promulgated by the Director of the Office of Management and Enterpr ise Services for the career service. E. Appointing authorities may implement the pay movement mechanisms in paragraphs 6 through 12 in subsection B of this section subject to the availability of funds within the agency's budget for the current fiscal year and subsequent fiscal year without the need for additional funding to increase the personal services budget of the agency. Failure by the appointing authority to follow the provisions of this subsection may cause the withdrawal of the use of the pay move ment mechanisms provided in paragraphs 6, 7, 9, 10 and 11 of subsection B of this section within the ag ency during the next appropriations cycle. HB3420 HFLR Page 40 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 F. The provisions in subsection B of this section shall not apply to chief executive officers of any agency, board, commission, department or program e xcept for paragraphs 3 and 5 of subsection B of this section. G. E. The Office of Management and Enterprise Services shall file a quarterly report with the Offices of the Governor, President Pro Tempore of the Sen ate and Speaker of the House of Representatives listing, by agency, all increases in wages, salaries or rates of pay and any changes to title or classification of each employee. SECTION 15. AMENDATORY 74 O.S. 2021, Section 840 -2.18, is amended to read as follows: Section 840-2.18 A. A longevity pay plan is hereby adopted. This plan applies to all state classified, unclassified, and exempt employees, excluding members of boards and commissions, institutions under the administrativ e authority of the State Regents for Higher Education, employees of public school districts, and elected officials. The plan shall also apply to those employees of the Oklahoma School for the Blind and the Oklahoma School for the Deaf who qualify for long evity pay in accordance with subsection G of Section 1419 of Title 10 of the Oklahoma Statutes. B. The Oklahoma Conservation Commission is hereby authorized to establish a longevity pay program for employees of the conservation districts employed under Se ction 3-3-103 of Title 27A of the HB3420 HFLR Page 41 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Oklahoma Statutes. Such longevity pay program shall be consistent with the longevity pay program for state employees authorized under this title and payments shall be made in a manner consistent with procedures for reimbu rsement to conservation districts. C. To be eligible for longevity pay, employees must have been continuously employed in the classified or unclassified service of the state for a minimum of two (2) years in full-time status or in part-time status working more than one thousand (1,000) hours a year. For purposes of this section, a break in service of thirty ( 30) calendar days or less shall not be considered an interruption of continuous service; a break in service of more than thirty (30) calendar days shall mark an end to continuous service. The legislative session employees who have worked for two (2) years or more in part-time status and are eligible for state retirement benefits, but do not receive other longevity payments, shall be eligible and shall be considered to have been continuously emplo yed for purposes of calculating longevity payments, notwithst anding the provisions of subsection E of this section. D. 1. Longevity pay for the first twenty (20) years of service shall be determined pursuant t o the following schedule: Years of Service Annual Longevity Payment At least 2 years but less than 4 years $250.00 HB3420 HFLR Page 42 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 At least 4 years but less than 6 years $426.00 At least 6 years but less than 8 years $626.00 At least 8 years but less than 10 years $850.00 At least 10 years but less than 12 years $1,062.00 At least 12 years but less than 14 years $1,250.00 At least 14 years but less than 16 years $1,500.00 At least 16 years but less than 18 years $1,688.00 At least 18 years but less than 20 years $1,900.00 At least 20 years $2,000.00 2. For each additional two (2) years of service after the first twenty (20) years an additional Two Hundred Dollars ($200.00) shall be added to the amount stated above for twenty (20) years of service. The total amount of the a nnual longevity payment made to an employee by any and all state agencies in any year shall not exceed the amount shown on the table corresponding to that employee's years HB3420 HFLR Page 43 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 of service with the state, except as otherwise provided by Sections 840-2.27D and Section 840-2.28 of this title. Further, no em ployee shall receive duplicating longevity payments for the s ame periods of service with any and all agencies, except as otherwise provided by Sections 840-2.27D and Section 840-2.28 of this title. E. To determine years of service, cumulativ e periods of full- time employment or part-time employment working more than one hundred fifty (150) hours per month with the state excluding service as specified in subsection A of this section are applicable. Part - time employment, working one hundred fif ty (150) hours per month or less for the state, excluding service as specif ied in subsection A of this section, shall be counted only if: 1. The period of employment was continuous for at least five (5) months; and 2. The person worked more than two-fifths (2/5) time. Other employment shall not be counted as service for purpose s of longevity payments. Further, no period of employment with the state, whether with one or more than one agency, shall be counted as more than full-time service. F. Years of service under the administrative authority of the State Regents for Higher Ed ucation or the administrative authority of the Oklahoma Department of Career and Technology Education of any employee who is now employed in a job cla ssification which is HB3420 HFLR Page 44 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 eligible for longevity pay shall be included in years of service for purposes of determining longevity pay. G. Years of service shall be certified through the current employing agency by the appointing authority on a form approved by the Office of Management and En terprise Services. The form shall be completed and posted as directed by t he Director of the Office of Management and Enterprise Services by the current employing agency when the employee initially enters on duty with the ag ency and thereafter whenever th e employee's anniversary date is changed. H. Eligible employees, in full -time status or in part-time status working more than one hundred fifty (150) hours per month, shall receive one (1) lump-sum annual payment, in the amo unt provided on the preceding s chedule, during the month following the anniversary date of the employee 's most recent enter-on-duty day with the state. Upon implementation of the statewide information systems project, the lump -sum annual payment may be pa id concurrent with the final payroll of the month of the employee's anniversary date. Eligible part-time employees who work one hundred fifty (150) hours per month or less shall receive one (1) lump-sum annual payment, based on the formula in subsection L of this section, during the month following the anniversary date of the employee's most recent enter-on-duty day with the state. To receive longevity pay an employee must be in pay status on or after his or her anniversary date. HB3420 HFLR Page 45 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Eligible employees who wo uld not otherwise receive annua l longevity payments because their employment includes regular periods of leave without pay in excess of thirty (30) calendar days shall receive one (1) lump-sum annual payment, based on the formula in subsection L of this se ction, during: 1. The month of August if the employee is in pay status on July 1; or 2. During the month following the employee's first return to duty that fiscal year if the employee is not in pay status on July 1. Except as otherwise provided by Sections 840-2.27D and Section 840-2.28 of this title, employees terminated as a result of a reduction-in-force or retiring from state employment shall receive upon said termination or retirement the proportionate share of any longevity payment which may have ac crued as of the date of termination or retirement. Provided further that, the proportion ate share of any longevity payment which may have accrued as of the date of death of an employee shall be made to the surviving spouse of the employee or if there is n o surviving spouse to the estate of the employee. I. Periods of leave without pay taken in accordance with Section 840-2.21 of this title shall be counted as service. Other periods of nonpaid leave status in excess of thirty (30) calendar days shall not mark a break in service; however, they shall: HB3420 HFLR Page 46 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 1. Not be used in calculating total months of service for longevity pay purposes; and 2. Extend the anniversary date for longevity pay by the total period of time on nonpaid leave status except as provided in subsection H of this section for emplo yees whose conditions of employment include regula r periods of leave without pay. J. Employees currently receiving longevity pay who work for the judicial branch of state government or who work for the Oklahoma Department of Career and Technology Educatio n shall not be eligible for the longevity pay plan provided for in this section. K. A break in service with the state in excess of thirty (30) days but which does not exceed two (2) years which was caused by a reduction-in-force shall be treated as if it were a period of nonpaid leave status as provided for in subsection I of this section for the purpose of calculating total months of service for longevity pay. This subsection shall only apply to state employees laid off after June 30, 1982. L. Eligible part-time employees working less than one hundred fifty (150) hours per month and other eligible employees with regular annual periods of leave without pay of more than thirty (30) calendar days will receive a prorate d share of the "Annual Longevity Payment" authorized in subsection D of this section. Th e prorated amount of payment will be based on actual hours worked in the immediately preceding twelve (12) months. HB3420 HFLR Page 47 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 M. An employee shall not be entitled to retroactive longevity payments as a result of amen dments to this section unless specifically authori zed by law. N. The Director of the Office of Management and Enterprise Services is authorized to promulgate such Longevity Pay Plan Rules as he or she finds necessary to carry out the provisions of this section. O. As of July 1, 1998, years of service wi th a city-county health department for employees who left a city-county health department for employment with the Department of Environmental Quality or the Oklahoma D epartment of Agriculture, Food, and Forestry, between July 1, 1993, and July 1, 1998, and who are now employed in a job classification that is eligible for longevity pay pursuant to this section, shall be included in years of service for purposes of determining longevity pay subsequent to July 1, 1998. P. As of July 1, 2003, years of service with a local conservation district shall be included in years of service for purposes of determining longevity pay for local conservation district employees transferre d to the Oklahoma Conservation Commission pursuant to the provisions of this section. SECTION 16. AMENDATORY 74 O.S. 2021, Section 840-2.19, is amended to read as follows: Section 840-2.19 A. The Director of the Office of Managem ent and Enterprise Services shall not approve any payroll claim for HB3420 HFLR Page 48 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 payment for any agency unless said cla im contains or is accompanied by the certification by the administrative head of said agency or an authorized employee of said agency that the persons named in said claim have been appointed and employed in accordance with the provisions of the Oklahoma Pe rsonnel Act law and the rules and orders promulgated pursuant to the provisions of the Oklahoma Personnel Act thereunder. For purposes of this sectio n, "payroll claim" shall also include longevi ty payments made pursuant to Section 840-2.18 of this title. B. If, as a result of a payroll audit, the Office of Management and Enterprise Services finds that an agency has made payments of salaries or wages contrary to the provisions of the Oklahoma Personnel Act and the rules promulgated pursuant to the provisio ns of the Oklahoma Personnel Act: 1. Audit findings shall be promptly transmitted to the appointing authority of the agency certifying the pa yroll claim or claims involved; 2. An audit conferen ce with said agency shall be scheduled within fifteen (15) da ys, at which time the audit exceptions will be resolved or become a determination of error unless the parties to the conference agree to a further rev iew; 3. If underpayments or overpayments mad e by said agency are deemed to be the result of administrativ e error, the agency which certified the payroll claim or claims in error shall refund to the HB3420 HFLR Page 49 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 employee the balance of the actual amounts due and owing to the payee or shall seek repayment from the payee of any amount paid in excess of the actual amount due and owing the payee; 4. If an agency neglects or refuses to seek repayment after a determination that an error in payroll amount or amounts has been made, or to properly adjust a then current sa lary or wage, the Director of the Office of Management and En terprise Services shall note an unresolved audit exception stating the agency involved and the person to whom said exception refers; 5. Upon receipt of notification that a procedure to initiate repayment has been instituted by the certifying agency or that a protest has been filed with the Oklahoma Merit Protection Commission, said notice shall be withdrawn or waived by the Director of the Office of Management and Enterprise Services. Implementa tion of procedures provided in this section shall not operate to deny or delay payment of proper salaries or wages to any employee of this state; 6. The provisions of this section regarding collections of any overpayment of salaries or wages by any agency to any state employee or officer shall not include any such overpayment made prior to July 1, 1983; 7. Recovery of overpayments from an employee shall include all overpayments occurring within one (1) year pri or to the determination of error. Disburseme nt of underpayments to an HB3420 HFLR Page 50 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 employee shall include all underpay ments made within a period of two (2) years prior to the determination of error; and 8. If an agency discovers overpayment or underpayment errors through an internal audit, the agency shall reco ver overpayments from the employee or disburse underpayment a mounts in accordance with this section. Prior to initiation of recovery of overpayments from an employee, the agency shall provide the employee with adequate notice and an opportunity to respond . C. The Director of the Office of Management and Enterprise Services shall not approve any payroll claim for payment for any agency for which a notification of an unresolved audit exception pursuant to this section has been filed, unless the person named in the audit exception has been removed from the payroll by the certifying agency, the overpayment has been converted by the agency, or the exception has been withdrawn or waived in writing by the Office of Management and Enterprise Services. D. Any sum on a payroll claim found to have been paid in excess of the actual amount due and owing may be recovered from the payee through the following procedures: 1. Upon the determination that an error in payroll amoun t has been made, the agency which certified t he claim or claims shall notify the payee in writing within t en (10) days from said determination. The notice to the payee shall contain: a. the amounts paid in error, HB3420 HFLR Page 51 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 b. the dates of said payments, c. the options available for repayment, and d. the right of the payee to protest the findings. Said notice shall also provide space for the payee to indicate an election of a repayment option or to protest the findings. Said election shall be required within thirty (30) days after the notification; 2. If the payee is, at the time of said notification, an officer or employee of the agency seeking repayment, options available for repayment shall be by: a. lump-sum cash repayment, b. reduction of the corrected current salary or miscellaneous payroll deduction in a lump sum or in installments over a term not to exceed the t erm in which the erroneous payments were made, c. reduction in accrued annual leave by an amount of time at the then current correct salary level equa l in value to the total of the amount or amou nts to be repaid, or d. any combination thereof; 3. If the payee is, at the time of said notification, an officer or employee of an agency of the state other than the agency seeking repayment, the options provi ded by paragraph 2 of this subsection may be exercised by the payee with the approval of the HB3420 HFLR Page 52 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 then current employing agency. Payment of amounts deducted or charged against annual leave shall be paid to the agency seeking repayment by an appropriate miscell aneous claim for interagency payment. If a payroll deduction is elected pursuant to the provisions of this paragraph and employment is subsequently terminated, any balance remaining shall be deducted from any final payment otherwise due to the employee; 4. If a payee who is, at the time of said not ification, a permanent classified officer or employee of any agency of this state protests the determination of the error or the amount of said determination, the agency seeking repayment shall present, within five (5) days of the return of said protest, t he facts in writing, the notice, and the protest of the payee , to the Oklahoma Merit Protection Commission. The Oklahoma Merit Protection Commission shall treat any such protest as a complaint pursuant to Secti on 840- 1.9 of this title. The Commission and Executive Director, after investigation and hearing, shall m ake a determination which shall be binding on the agency. The salary or wages of any payee exercising the right to the protest shall not be suspended or reduced until a determination has been is sued by the Oklahoma Merit Protection Commission and Executiv e Director; 5. If the payee is no longer an employee of the state but agrees to repay the amount or amounts paid in error, repayment may be accepted: HB3420 HFLR Page 53 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. by lump-sum cash repayment, or b. in installments over a period not to exceed twelve (12) months; 6. 5. If the payee is no longer an employee of the state, and does not respond or cannot be located within ten (10) days after mailing of the determinati on of error, or refuses repayment, the agency seeking repayment shall present the facts in writing to the Attorney General and shall send a copy to the Office of Management and Enterprise Services. The Attorney General shall determine what action may be taken to recover said amount; and 7. 6. Repayments other than by reduction in present salary or reduction in accrued annual leave for a payee currently employed by the agency seeking repayment shall be deposited in the General Revenue Fund unless the fund to which the amount in error was originally charged can be identified and was other than a General Revenue Fund appropriation. Said deposits shall be treated as nonrevenue receipts. SECTION 17. AMENDATORY 74 O.S. 2021, Section 840 -2.20, is amended to read as follows: Section 840-2.20 A. The Director of the Office of Management and Enterprise Services shall promulgate such emergency and permanent rules regarding leave and holiday leave as are necessary to assist the state and its agencies. HB3420 HFLR Page 54 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 The Director of the Off ice of Management and Enterprise Services, in adopting new rules, amendin g rules and repealing rules, shall ensure that the following provisions are incorporated: 1. Eligible employees who enter on duty or who are reinstated after a break in service shal l receive leave benefits in accordance with the schedule outlined below. Leave shall be accrued based upon hours worked, paid leave, and holidays, but excluding overtime, not to exceed the total possible work ho urs for the pay period. Years of service shall be based on cumulative periods of employment calculated in the manner that cumulative service is determined for longevity purposes pursuant to Section 840-2.18 of this title. Employees may accumulate more th an the maximum annual leave accumulation limits shown in the schedule below provided that such excess is used during t he same calendar year in which it accrues or within twelve (12) months of the date on which it accrues, at the discretion of the appointin g authority. If an employee whose job duties include providing fire protection services, law enforcement services or services with the Department of Corrections is unable to use excess leave as provided for in this paragraph because the employee's request for leave is denied by the employee's appointing authority and the denial of leave is due to extraordinary circumstances such that taking leave could pose a threat to public safety, health or welfare, the employee shall receive compensation at the employee's regular rate of pay for the amount of excess leave HB3420 HFLR Page 55 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the employee is unable to use. Such compensation shall be paid at the end of the time period during which the excess leave was required to have been used; 2. From November 1, 2001, the following acc rual rates and accumulation limits apply to eligible employees as follows: ACCRUAL RATES ACCUMULATION LIMITS Cumulative Years of Annual Sick Annual Service Leave Leave Leave Persons employed 0-5 yrs = 15 day/yr 15 days/yr 30 days 5-10 yrs = 18 day/yr 15 days/yr 60 days 10-20 yrs = 20 day/yr 15 days/yr 60 days over 20 yrs = 25 day/yr 15 days/yr 60 days Following an emergency declaration as described in Section 683.8 of Title 63 of the Oklahoma Statutes, the accumulation limits for annual leave shall temporarily increase and shall carryover to the end of the fiscal year following the year in which the emergency declaration ended. All annual leave that accrued or expired during the period of the emergency declarations issued by the Governo r in 2020 and 2021 in response to the novel coronavirus (COVID -19) shall carry over to the end of the fiscal year following the yea r in which the emergency declaration ended regardless of regulatory provisions that establish HB3420 HFLR Page 56 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a maximum amount of annual leav e that may be accumulated by an employee of the State of Oklahoma. Ex pired annual leave governed by this subsection shall be reins tated as of the effective date of this act, and accumulation limits for annual leave shall not apply to amounts accrued or re instated pursuant to this subsection. Eligibility for reinstatement o f annual leave is limited to employees currently employed by the State of Oklahoma on the effective date of this act; 3. Temporary employees and other limited term employees are ineligible to accrue, use, or be paid for sick leave and annual leave. Such employees shall be eligible for paid holiday leave at the discretion of the appointing authority; 4. Except as provided in paragraph 2 of this subsection, employees shall not be entitled to retroactive accumulation of leave as a result of amendments to th is section; 5. The Director of the Office of Manag ement and Enterprise Services and the Executive Director of the Oklahoma Merit Protection Commission shall cooperate to assist agencies in developing policies to prevent violence in state government workpl aces without abridging the rights of state employee s. Such policy policies shall include a paid administrative leave provision as a cooling-off period which the Director of the Office of Man agement and Enterprise Services is authorized to provide pursuant to the Administrative Procedures Act. HB3420 HFLR Page 57 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Such leave shall not be charged to annual or sick leave accumulations; 6. State employees who terminated their employment in the state service on or after October 1, 1992, may be eligible to have sick leave accrued at the time of termination of employment restored if they return to state employment provided that the state employees' enter-on-duty dates for reemployment occur on or before two (2) years after their termination of employment and they are eligible to accrue sick leave before the two (2) years expire; 7. Employees who are volunteer firefighters pursuant to the Oklahoma Volunteer Firefighters Act and who are called to fight a fire shall not have to use any accrued leave or need to make up any time due to the performance of their volunteer firefighter duties; 8. Employees who are reserve municipal police officers pursuant to Section 34-101 of Title 11 of the Oklahoma Statutes and who miss work in performing their duties in cases of emergency shall not have to use any accrued leave or need to make up any time due to the performance of their reserve municipal police officer duties; and 9. Employees who are reserve deputy sheriffs pursuant to Section 547 of Title 19 of the Oklahoma Statutes and who miss work in performing their duties in case of emergency shall not ha ve to use any accrued leave or need to make up any time due to the performance of their reserve deputy sheriff duties. HB3420 HFLR Page 58 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 B. Nothing in the Oklahoma Personnel Act law is intended to prevent or discourage an appointing authority from disciplining or terminating an employee due to abuse of leave benefits or absenteeism. Appointing authorities are encouraged to consider attendance of employees in making decisions regarding promotions, pay increases, and discipline. C. Upon the transfer of a function in state gov ernment to an entity outside state government, employees may, with the agreement of the outside entity, waive any payment for le ave accumulations to which the employee is entitled and authorize t he transfer of the leave accumulations or a portion thereof t o the outside entity. SECTION 18. AMENDATORY 74 O.S. 2021, Section 840-2.21, is amended to read as follows: Section 840-2.21 A. If a state employee, whether in the classified or unclassified service, is absent because of an illne ss or injury arising out of and sustained in the course of his or her employment with the state, and for which workers' compensation benefits have been filed, the employing agency shall place the employee on leave without pay if the employee so requests; p rovided, leave without pay pursuant to this section shall not for any purpose be considered a break in service. B. An employee who sustains an illnes s or injury arising out of and sustained in the course of employment with the State of Oklahoma shall not be required to use either accumulated sick or annual leave HB3420 HFLR Page 59 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 during such period prior to being placed on leave without pay pursuant to this section. C. An employee placed on leave without pay purs uant to the provisions of this section shall continue receivi ng basic plan insurance coverage as defined in Section 1363 of this title and dependent insurance benefit allowance pursuant to paragraph 2 of subsection C of Section 1370 of this title paid by t he agency during the leave without pay. D. An employee on le ave without pay pursuant to the provisions of this section shall have the right to be returned to his or her original position in accordance with rule s promulgated by the Office of Management and Enterprise Services. If it is found necessary for the good of the state to fill the position during the period the employee is on leave without pay the employee filling the position shall vacate the position u pon the return of the employee on leave without pay, subject to layoff, transfer or demotion rights earned under the Oklahoma Personnel Act law and rules of the Office of Management and Enterprise Services. The right to return to the original position sha ll expire one (1) year from the date of the start of leave without pay. The employee may be separated in accordance with the Oklahoma Personnel Act and Office of Management and Enterprise Services Rules if the employee has not returned to the original position of the employee or some other position within HB3420 HFLR Page 60 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the agency within one (1) year from the date of the st art of leave without pay. E. An employee on leave without pay pursuant to the provisions of this section shall provide a medical statement as to his or her ability to perform the duties of the p osition to the appointing authority at least every three (3) months. F. If the employee becomes medically able with reasonable accommodation to perform the duties of his or her original position, the employee shall be returned to such position. If the em ployee is unable to perform the duties of the original positi on with reasonable accommodation, but is medically able with reasonable accommodation to perform the duties of any other position within the agency for which the employee is qualified, and appoin tment to such other position does not constitute a promotion, the employee shall have first preference for any such position which becomes vacant within the agency, notwithstanding any other preference provision s of the Oklahoma Personnel Act or of other laws of the State of Oklahoma. An employee accepting another position pursuant to this subsection shall not forfeit his or her right to be returned to the original position within twelve (12) months after the st art of leave without pay pursuant to the prov isions of subsection D of this section. G. An ill or injured employee shall be eligible to participate in the Disability Insurance Program established pursuant to the HB3420 HFLR Page 61 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 provisions of Section 1331 et seq. of this title in accordance with rules promulgated by the Office of Management and Enterprise Services. H. All benefits, rights, and obligations contained in this section shall continue during the time the employee remains on leave without pay status, for a conti nuous period not to exceed twelve (12) months. However, if a workers' compensation claim based on such illness or injury is denied during the twelve-month period, all benefits, rights and obligations conferred upon an employee pursuant to this section shall cease and be discontinued immediately. I. A classified A state employee who is separated pursuant to subsection D of this section shall be eligible for reinstatement to employment with any state agency for twelve (12) month s after the date of separation whether in the classified or unclassified service in accordance with rules adopted by the Director of the Off ice of Management and Enterprise Services provided the employee is qualified for the position to which reinstated. An unclassified employee who is separated pursuant to subsection D of this section shall be eligible for reinstatement to unclassified emplo yment with any state agency for twelve (12) months after the date of separation in accordance with rules promulgated by the Director of the Office of Management and Enterprise Services provided the employee is qualified for the position to which reinstated . Nothing in this subsection shall be construed to compel or require any agency of the HB3420 HFLR Page 62 BOLD FACE denotes Committee Amendments. 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 to reinstate a former employee who is separated pursuant to subsection D of this section. Further, noth ing in this subsection shall be construed as limiting or r educing a former employee's eligibility for reinstatement pursuant to other general reinstatement or reemployment pr ovisions in rules promulgated by t he Director. SECTION 19. AMENDATORY 74 O.S. 2021, Section 840 -2.23, is amended to read as follows: Section 840-2.23 A. There is hereby created the state leave sharing program. The purpose of the state leave sharing program is to permit state employees to donate annual or sick leave to a fellow state employee who has exhausted, or wi ll exhaust, all types of paid leave and: 1. Who is eligible for and requires family leave pursuant to the provisions of the Family and Medical Leave Act of 1993, 29 U.S.C., 2601 et seq.; or 2. Who is suffering from or has a relative or household member suffering from an extraordinary or severe illness, injury, impairment, or physical or mental condition which has caused or is likely to cause the emplo yee to take leave without pay or terminate employment; or 3. Immediately after the death of a relative or household member,; provided that the total leave received for this purpose shall not exceed five (5) days in any calendar year ; or HB3420 HFLR Page 63 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. Who is affected by a presidentially declared national disaster in Oklahoma after May 1, 1999, for a period of eighteen (18) months after the date of the presidentially declared national disaster if: a. the employee suffered a physical injury as a result of the disaster, b. the spouse, relative, or household member of the employee suffered a physical injury or died as a result of the disaster, or c. the domicile of the employee or the home of a relative of the employee was damaged or destroyed as a result of the disaster. B. As used in this section: 1. "Relative of the employee" shall be limited to the spouse, child, stepchild, grandchild, grandparent, stepparent, or parent of the employee; 2. "Household members" means those persons who reside in the same home, who have reciprocal duties to and do provide financial support for one another. This term shall include foster ch ildren and legal wards even if they do not live in the household. The term does not include persons sharing the same general house, when the living style is primarily that of a dormitory or commune ; 3. "Severe" or "extraordinary" means extreme or life - threatening; HB3420 HFLR Page 64 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 4. "State employee" and "executive employee" means mean a permanent classified an employee or a regular unclassified employee with one (1) year or more continuous servi ce with the state. The term "state employee" does not include classified employees i n probationary status or unclassified employees on temporary or other limited term appointments, except that those employees are eligible to receive shared leave as provid ed in paragraph 4 of subsection A of this section and the leave with pay authorized b y Section 840- 2.23A of this title related to a presidentially declared national disaster For the purposes of the state leave sharing program, employees who are afforded protections under the Civil Service and Human Capital Modernization Act and administrative rules and exempted employees are eligible to participate; and 5. "Terminal" means likely to result in death within two (2) calendar years. C. An employee may be eligible to recei ve shared leave pursuant to the following conditions: 1. The chief administrative officer of the employee determines that the employee meets the criteria described in this section; and 2. The employee has abided by st ate policies regarding the use of leave. D. An employee may not donate annual or sick leave to an eligible employee without the permission of the chief administrative officer of the donating employee's agency. HB3420 HFLR Page 65 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E. An employee may donate annual or sick lea ve to another employee provided the d onation does not cause the annual leave balance of the employee t o fall below eighty (80) hours and provided the donation does not cause the sick leave balance of the employee to fall below eighty (80) hours. F. Except as otherwise provided for in this su bsection, the chief administrative officer of the employee shall determine the amount of donated leave an employee may receive and may authorize an employee to use up to a maximum of two hundred sixty -one (261) days of donated leave during total state empl oyment. If the employee is suffering from an illness which has b een certified in writing by a licensed physician or health care practitioner as being terminal and the employee who either has reached or shall reach in t he near future the maximum amount as set out in this subsection, the chief administrative officer of t he employee may approve additional donated leave upon written request of the employee. G. The chief administrative officer of the employee shall require the employee to submit, prior to appr oval or disapproval of shared leave pursuant to paragraph 1 of su bsection A of this section, a medical certificate from a licensed physician or health care practitioner verifying the need for the leave and expected duration of the illness, injury, impairme nt, or physical or mental condition for which the leave is donate d. HB3420 HFLR Page 66 BOLD FACE denotes Committee Amendments. 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. Donated annual or sick leave shall be transferable between employees in different state entities. State entities shall allow employees to receive donated annual or sick leave from emp loyees within their employing entity and different state entities ; provided, that the employee shall first exhaust all available leave options within the state entity of the employee. I. Donated annual or sick leave is transferable between employees on an hour-to-hour basis irrespective of the hourly wage of the donating or receiving employee. J. Any donated leave may only be used by the recipient for the purposes specified in this section. K. All forms of paid leave available for use by the recipient must be used prior to using donated leave. L. Any donated leave no t used by the recipient during each occurrence as determined by the chief administrative officer of the employee shall be returned to the donor. The dona ted leave remaining will be divided a mong the donors on a prorated basis based on the original donated value and returned at its original donor value and reinstated to the original leave balance of each donor. M. All donated leave must be given voluntaril y. No employee shall be coerced, thr eatened, intimidated, or financially induced into donating annual or sick leave for purposes of the leave sharing program. HB3420 HFLR Page 67 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 N. Except as provided by subsection P of this section, employees may not donate annual or sick leave that the donor would not be able to otherwise take. O. The Human Capital Management Civil Service Division of the Office of Management and Enterprise Services sh all designate an employee to serve as the share d leave liaison. If a qualifying employee is unable to obtain the necessary number of donat ed leave hours from his or her employing entity, he or she may contact the shared leave liaison. The shared leave liaison shall have the following responsibilities : 1. To inform all state agencies of the requirements of this section; 2. To inform all st ate employees of the rights afforded under this section; 3. To ensure an employee requesting shared leave from other state entities meets the criteria set forth in this section; 4. To coordinate outreach efforts withi n the employing agency and to other state entities to obtain all necessary hours of shared leave for the employee; 5. To ensure an employee has exhausted all sources of shared leave both within his or her employing entity and other state entities before requesting leave from the Leave of Las t Resort Bank; and HB3420 HFLR Page 68 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 6. To coordinate leave requested from the Leave of Last Resort Bank. P. There is hereby created a Leave of Last Resort Bank. In the event a qualifying employee is unable to secure shared leave from employees within his or her employin g entity or within a different entity, an employee may req uest leave from the Leave of Last Resort Bank. The Leave of Last Resort Bank shall be administered by the Human Capital Management Civil Service Division of the Office of Management and Enterprise Services. 1. The Leave of Last Resort Bank shall be funde d by voluntary donations of annual and sick leave fro m employees retiring from or leaving state service. 2. Upon retirement or the final day of state service, an employee shall elect, in writing, whether any of his or her annual or sick leave shall be dep osited into the Leave of Last Resort Bank. Q. The Office of Management and Enterprise Services shall promulgate rules and regulations as necessary to carry out the provisions of this section. SECTION 20. AMENDATORY 74 O.S. 2021, S ection 840-2.25, is amended to read as follows: Section 840-2.25 A. A permanent classified employee or a regular unclassified An employee shall be entitled to take leave with pay for not to exceed three (3) days a year to attend meetings of job-related professional organizations of which the employee is a HB3420 HFLR Page 69 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 member upon receiving permission from the appointing authority. Th e denial by an appointing authority or organizational l eave shall be in writing and state the reasons for denying said leave. B. The leave authorized by this section shall not be used for lobbying activities which include the lobbying of legislative or executive branch elected officials within state -owned or leased buildings. SECTION 21. AMENDATORY 74 O.S. 2021, S ection 840-2.27C, is amended to read as follows: Section 840-2.27C A. At least sixty (60) thirty (30) days before the scheduled beginning of reduction-in-force separations or as otherwise provided by law, the a ppointing authority shall post in each office of executive branch agencies affected by the proposed reduction-in-force notice that a reduction-in-force will be conducted in accordance with the Oklahoma Personnel Act and Merit rules. The reduction-in-force implementation plan shall be provided to the Director of the Office of Management and Enterprise Services and any state employee association representing state emp loyees at such time. The notice shall not be posted unless approved by the cabinet secretary for the agency conducting the reduction -in-force. If there is no incumbent cabinet secretary for the agency, t he cabinet-secretary-notice-approval requirement sh all not be applicable. If the appointing authority is governed by an elected official, the cabinet-secretary-notice-approval requirement shall HB3420 HFLR Page 70 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 not be applicable. The approved notice shall be posted in ea ch office affected by the proposed plan for five (5 ) days. The appointing authority shall provide a copy of the notice to the Administrator. A reduction-in-force shall not be used as a disciplinary action. B. The reduction-in-force implementation plan a nd subsequent personnel transactions directly relat ed to the reduction-in-force in executive branch agencies shall be in compliance with rules adopted by the Administrator. The reduction -in-force implementation plan, including the description of and reaso ns for displacement limits and protections from dis placement actions, and severance benefits that will be offered pursuant to Section 840 -2.27D of this title shall be posted in each offic e affected by the plan within five (5) business days after posting of the reduction-in-force notice. The reduction- in-force implementation plan shall: 1. Provide for the appointing authority to determine the specific position or positions to be abolished within specified units, divisions, facilities, agency-wide or any parts thereof; and 2. Provide for retention of affec ted employees based on type of appointment; 3. Require the separation of probationary class ified affected employees in affected job fam ily levels, except those affected employees on probationary status af ter reinstatement from permanent classified status without a break in service, prior to the HB3420 HFLR Page 71 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 separation or displacement of any permanent classif ied affected employee in an affected job fam ily level; 4. Provide for retention of permanent classified affected employees in affected job family levels and those affected employees on probationary status after reinstatement from permanent classified status without a break in service based upon con sideration of years of service; 5. Provide for exercise of displacem ent opportunities by permanent classified affected employees and those affected employees on probationary status after reinstatement from perma nent classified status without a break in se rvice if any displacement opportunities exist; and 6. Provide outplacement assistance and employment counseling from the Oklahoma Employment Security Commission and any other outplacement assistance and employme nt counseling made available by the agency to affected employees regarding the options available pursuant to the State Government Reduction-in-Force and Severance Benefits Act prior to the date that a reduction -in-force is implemented. C. If an agency implements a reduction-in-force then it shall give a veteran's preference over affected nonveterans who have equal retention points to the affected veteran. D. The Director of the Office of Management and Enterprise Services shall review the fiscal component s of the reduction-in- HB3420 HFLR Page 72 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 force implementation p lan and within five (5) business days of receipt reject any plan that does not: 1. Demonstrate that funds are available to cover projected costs; and 2. Contain an estimate of the number of affected employees likely to participate in the education vouche r program established in Section 840-2.27D of this title; and 3. Contain an estimate of the cost savings or reduced expenditures likely to be achieved by the agency. If the reduction-in-force is conducted pursua nt to a reorganization, the fiscal component s of the reduction-in-force implementation plan shall contain reasons for the reorganization, which may include, but not be limited to, increased efficiency, improved service delivery, or enhanced quality of serv ice. E. The appointing authority may limit displacement of affected employees at the time of a reduction-in-force. Displacement limits shall not be subject to the approval of the Administrator. Any limitation shall be based upon reasonable, written, art iculated criteria as certified by the appoin ting authority. If displacement is limited, the appointing authority shall take action to avoid or minimize any adverse impact on minorities or women. 1. The appointing authority may protect from displacement action up to twenty percent (20%) of projecte d post-reduction-in- force employees in affecte d positions within disp lacement limits; HB3420 HFLR Page 73 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 provided, that any fractional numb er resulting from the final mathematical calculation of the number of those positions shall be rounded to the next higher whole number. The appointing authority must explain why aff ected employees are bei ng protected. 2. If the affected employee has not held within the last five (5) years a position in the job family level or predecessor class in which the affected employee is otherwise eligible for a displacement opportunity, the appointing authority may determine that the affected employee does not poss ess the recent relevant experience for the position and deny in writing the displacement opp ortunity. 3. An affected permanent classifi ed employee may exercise a displacement privilege, if one exists, if the affected employee has received an overall ratin g of at least "meets standards", or its equivalent, on the most recent annual service rating . If an affected employee has not been rate d in accordance with the time limits established in Section 840-4.17 of this title, the employee shall be deemed to have received an overall rating of at least "meets standards" or its equivalent on the most rece nt service rating. 4. An affected employee who exercises a displacement privilege pursuant to this section shall : a. be required, as a condition of continued emplo yment by the agency, to sign an agreement, in a form to be prescribed by the Director of the Office of Management HB3420 HFLR Page 74 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 and Enterprise Service s, acknowledging that the employee had an oppo rtunity to receive seve rance benefits and affirmatively elected to exercis e a displacement privilege and to forego such benefits. An affected employee who signs the agreement required by this subparagraph waiv es any privilege which might otherwise have been available to the aff ected employee pursuant to the agreement for the pr ovision of severance benefits, and b. not have the right to exercise any subsequent right to receive severance benefits from the agency for which the affected employee performs servi ces on the date that the employee exercises a displacement privilege. The provisions of this section shall not prohibit any person from exercising a displacement pri vilege in, or accepting severance benefits f rom, more than one agency during employment wi th the State of Oklahom a or from the agency which the affected employee ex ercised a displacement privilege in any future reduction -in- force. F. An affected employee who does not agree pursuant to Section 840-2.27E of this title to accept severance benefit s and who does not have a displacement opportunity or does not accept a displacement opportunity shall be separated by the reduction -in- HB3420 HFLR Page 75 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 force and shall not receive an y severance benefits that would have otherwise been provided pursuant to Section 840-2.27D of this title. G. Permanent classified affected employees and those affe cted employees on probationary status after reinstatement from permanent classified status without a break in service who were removed f rom a job family level by taking a position in another job family lev el through displacement or separated after foregoin g severance benefits shall be recalled by the agency to the job family level from which they were removed in inverse order of removal be fore the agency may appoint other persons to t he job family level, fr om the employment register, by internal action or f rom Priority Reemployment Consideration Rosters as provided by this section. Upon declinati on of an offer of reappointment to the job f amily level from which the employee was removed or eighteen (18) mont hs after the date of removal from the job family le vel, whichever is first, this right to be recalled shall expire. H. The names of permanent classified affected employees and those affected employees on probationary status after re instatement from permanent classified status without a break in service wh o have been separated pursuant to the State Government Reduction -in-Force and Severance Benefits Act, who apply and meet all requirement s for state jobs in the classified service sha ll be placed on Priorit y Reemployment Consideration Rosters for a maximum of eighteen (18) months after the date of separation. Before any vacant position is HB3420 HFLR Page 76 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 filled by any individual eligible for initial appoi ntment from the employment register, individuals on the Priority Reem ployment Consideration Rosters shall be given prior ity consideration for reemployment by any state agency within eighteen (18) months after the date of the reduction-in-force. Upon declination of an offer of reemployment to a job fa mily level having the s ame or higher pay band than the job family level fr om which the employee was removed, or eighteen (18) months after the date of separation, whi chever is first, this priority consideration for reemployment shall expire. If an agency has posted a reduction -in-force plan and implementation schedule, all affected employees in positions covered by the plan and any within the displacement limits estab lished by the appointing authority of the agency who have been separated shall be eligible for priority reemploym ent consideration. I. If an agency or any part the reof is scheduled to be closed or abolished as a result of legislation or a court order, the affected employees, who would be eligible f or Priority Reemployment Consideration after t heir separation in acco rdance with subsection H of this section, may apply and, if qualified and eligible, shall be accorded Priority Reemployment Consideration not t o exceed twelve (12) months before the sched uled date of separation. If an agency has posted a reduction-in-force plan and implementation schedule, all affected employees in positions covered by the plan and any within the displacement limits established by the appointing HB3420 HFLR Page 77 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 authority of the agency sh all be eligible for Priority Reemployment Consideration beginning wit h the date the schedule is posted, not to exceed twelve (12) months before the scheduled date of separation. J. D. When the Legislature is not in session, the Contingency Review Board may, upon the request of the Governor, direct agenc ies, boards and commissions to reduce the number of employees working f or the agency, board or commission whenever it is deemed necessary and proper. Such reducti on shall be made pursuant to reduction -in-force plans as provided in this section. K. E. 1. When the Legislature is not in session, the Contingency Review Board m ay, upon the request of the Governor, direct and require mandatory furloughs for all state e mployees whenever it is deemed necessary and proper. The Contingency Review Board shall specify the effective dates for furloughs and shall note any exceptions to state employees affected by same. All classified, unclassified, exempt or nonmerit employees, including those employees of agencies or offices established by statute or the Constitution, shall be affected by such actions. 2. Mandatory furlough means the involuntary temporary reduction of work hours or the placement of an employee on involuntary leave without pay. Rules governing leave, longevity pay and participation in the State Employe es Group Health, Dental, Disability, and Life Insurance program shal l not be affected by mandatory furloughs. Furlough, as provided for in this section or by r ules adopted by the HB3420 HFLR Page 78 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Director of the Office o f Management and Enterprise Services, shall not be appealable under the provisions of the Oklahoma Personnel Act. 3. Notwithstanding existing laws or provisions to the contrary, members of state boards and commi ssions shall not receive per diem expenses during periods of mandatory furlough. The Contingenc y Review Board shall additionally call upon elected officials, membe rs of the judiciary, and other public officers whose salary or emoluments cannot be altered during current terms of office, to voluntarily donate to the General Revenue Fund any portion of their salary which would otherwise have been affected by a mandator y furlough. L. F. All agencies directed by the Contingency Review Board to terminate or furlough employees, shall report the cumulative cost savings achieved by the reductions-in-force or furloughs to the Governor, President Pro Tempore of the Senate and Speaker of the House of Representatives on a quarterly basis for one (1) year following the effective date of the action. M. G. The appointing authority of an agency which has an approved reduction-in-force plan pursuant to the State Government Reduction-in-Force and Severance Benefits Act may request the Director of the Office of Management and Enterprise Services to appoint an interagen cy advisory task force for the purpose of assisting the agency and its employees with the implementation of HB3420 HFLR Page 79 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the reduction-in-force. The appointing authority of state agencies requested by the Administrator to pa rticipate on a task force shall assign appropriate administrative personnel necessary to facilitate the necessary assistance required for the efficient implementati on of the approved reduction-in-force. SECTION 22. AMENDATORY 74 O. S. 2021, Section 840-2.27D, is amended to read as follows: Section 840-2.27D A. Agencies shall provide severanc e benefits to affected state employees who are separated from the state service as a result of a reduction -in-force due to a reorganization or any other action by an agency which results in affected positions being abolished and affected employees being se vered from the state service. Severance benefits shall b e given to the following categories of affected employees : permanent classified affected employees and affected employees on probationary status after reinstatement from permanent classified status without a break in service; provided, however, affected e mployees of the University Hospitals Authority must have been continuously employed in the state service since on or before January 1, 1995, to receive severance benefits. Pursuant to this section a nd Section 840-5.1A of this title, state agencies may pro vide severance benefits provided by this subsection to regular unclassified employees with one (1) year or more continuous state service who are separated from the state service for budgetary reasons ; however, state agencies HB3420 HFLR Page 80 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 shall offer regular unclassifie d state employees with one (1) year or more continuous state service who are separated from the state service the same severance benefit as the affected employees in a reduction-in-force if the unclassified employees' separation is as a result of the conditions causing the agency to implement a reduction-in-force. Affected employees who qualify for severance benefits pursuant to this section, in addition to the payment of any compensable accrued leav e or other benefits an affected employee is eligible to receive upon separation from the state service, shall receive severance benefits consisting o f the following elements: 1. All agency severance benefits shall provide the following: a. payment equal to the affected employee's current health insurance premiu m for the affected employee only for eighteen (18) months based on t he cost of the premium at the time of the reduction-in-force. The appointing authority of the agency can ask the Director of the Office of Management and Enterprise Services to waive the severance benefit provision in this subparagraph or to reduce the le ngth of coverage or subsequent severance benefit payment upon demonstration of the agency's inability to fund the full benefit, b. a longevity payment, as prescribed by Section 840 -2.18 of this title, in the amount which would otherwise be HB3420 HFLR Page 81 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 paid to the affected employee on the aff ected employee's next anniversary date. For the purposes of this subparagraph, the University Hospitals Au thority shall calculate longevity for affected employees who were members of the University Hospitals Authority Model Personnel System pursuant to Se ction 3211 of Title 63 of the Oklahoma Statutes for all state service as would otherwise be determined by S ection 840-2.18 of this title, and; c. outplacement assistance and employment counseling prior to and after the reduction -in-force from the Oklahoma Employment Security Commission and other state or private entities that the entity may contract with to assist individuals who may be impacted by a reduction-in-force; and 2. In addition to the severance benefits provided by paragraph 1 of this subsection, age ncies may shall give affected employees, except as otherwise provided by paragraph 3 of this subsectio n, severance benefit packages based on any combination of the following options,; provided that all affected employees who receive severance benefits in the reduction-in-force shall be are accorded uniform treatment pursuant to the State Government Reducti on-in-Force and Severance Benefits Act : HB3420 HFLR Page 82 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 a. up to one (1) week of pay, calculated by dividing the affected employee's current annual salary by the whole number fifty-two (52), for each yea r of service, b. a maximum lump-sum payment of Five Th ousand Dollars ($5,000.00), and or c. payment for accumulated sick leave or extended illness benefits at up to one-half (1/2) of the affected employee's hourly rate not otherwise used pursuant to law for conversion to credited retirement credit; and 3. An affected employee may direct payment of all or a portion of the affected employee's severance benefits to the options authorized by this paragraph by exercising an option to receive education vouchers for use in connection with the Reduction-in-Force Education Voucher Action Fund subject to the following requirements and rules of the Director of the Office of Management and Ent erprise Services, provided that the agency offers to match employee severance funds pursuant to this paragraph. In such case: a. the affected employee may purchase One Dollar ($1.00) in voucher credit for e ach One Dollar ($1.00) contributed by the affecte d employee to the fund subject to a maximum affected employee contribution of Three Thousand Dollars ($3,000.00) which may be matched by a maximum agency contribution of Three Thousand Dollars ($3,000.00); p rovided, that the HB3420 HFLR Page 83 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 agency contribution shall not e xceed the contribution of the affected employee, b. the affected employee may pay the cost for the voucher program directly, subject t o the requirements of subparagraph a of this paragraph, or the employing agency of the affected employee may pay the cost of the voucher from funds which would otherwise have been used to make payments to the displaced affected employee pursuant to an elec tion by the affected employee to receive severance benefits, c. no voucher issued pursuant to the provisions of this paragraph shall: (1) be redeemed by the affected employee for cash or anything of value other than the cost of tuition and fees at a public or private educational institution within the State of Oklahoma, or (2) be valid longer than a period of four (4) years from the date upon which the voucher is issued to the affected employee, d. the Director of the Office of Management and Enterprise Services shall pay tuition and fees directly to the educational institution and shall receive any refunds for payment of tuit ion and fees HB3420 HFLR Page 84 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 from the educational institution which shall be credited to the affected employee's account, and e. the Director of the O ffice of Management and Enterprise Services shall distribute to the affec ted employee and the agency any monies remaining in the affected employee's account after the voucher credit has expired. The distribution shall be based on the proportional share of contributions made by the affected employee and the agency Agencies shall also be allowed to provide the severance benefits to separating employees not subject to the Civil Service and Human Capital Modernization Act and rules promulgated thereunder and whose position is not subject to an imminent reduc tion-in-force in exchange for executing a release of all claims against the agency and the State of Oklahoma as required by Section 840 -2.27E of this title. B. Each affected employee who is separated from state servic e as a result of a reduction-in-force after July 1, 1998, besides being eligible for the eighteen ( 18) months of continuation coverages provided by the Public Health Service Act, 42 U.S.C. , Section 30066-1 et seq., i.e., health, dental, vision and healthca re reimbursement account options, under this severance benefit, shall also be eligible to elect add itional continuation coverage for a ny life insurance, in twenty-thousand-dollar units, on self or five- HB3420 HFLR Page 85 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 thousand-dollar units, on dependents, and to continue participation in the dependent care reimbursement account provided that these additional coverages were in effect immediately prior to the effective date of the reduction-in-force, the date of which shall serve as the qualifying event date. Provided, that no coverage elected for continuation through the Public Health Service Act for the full eighteen-month period is allowed to lapse, th en that affected employee may elect to continue those same coverages for an additional eighteen (18) months at whatever ra te is then in effect. This additional eighteen -month continuation period of coverage shall be administered by the Oklahoma State Empl oyees Benefits Council following the initial eighteen-month period of continuation which shall be administered by the COBR A office at the State and Education Employees Group Insurance Board. C. Part-time affected employe es shall receive benefits pursuant to this section on a prorated basis. Part-time employees shall have been compensated for at least one thousand (1,000) ho urs during the twelve (12) months immediately preceding the effective date of the reduction-in-force to be eligible for severance bene fits pursuant to the State Government Reduction-in-Force and Severance Benefits Act. D. No appointing authority shall gra nt affected employees in a reduction-in-force severance benefits except as provided in this section. HB3420 HFLR Page 86 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 23. AMENDATORY 74 O.S. 2021, Section 840 -4.19, is amended to read as follows: Section 840-4.19 A state agency shall have sole and final authority to designate the place or places where its employees shall perform their duties except where the action was for disciplinary reasons. Such punitive transfers shal l be subject to the Civil Service and Human Capital Modernization Act. The Oklahoma Merit Protection Commission shall not have jurisdiction to accept an appeal of an employee resulting from the employing agency transfer of an employee from one county or l ocality to another, changing the assigned duties of an employee, or relieving the employee from performance of duty at a particular place and reassigning to an employee duties to be performed at another place, unless an employee asserts that: 1. The action resulted in a change in job classification or reduction of the base salary of the employee; 2. A violation of the provisions of Section 840 -2.5 or 840-2.9 of this title may have occurred; or 3. The action was taken clearly for disciplinary reasons and to deny the employee the right of appeal. SECTION 24. AMENDATORY 74 O.S. 2021, Section 840-5.3, is amended to read as follows: HB3420 HFLR Page 87 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Section 840-5.3 A. The following offices, positions and personnel shall not be considered s tate employees except as otherwise provided by law: 1. Patient and inmate help in the state charitable, mental and correctional institutions; 2. Persons engaged in publi c work for the state, but employed by contractors when the performance of such contra ct is authorized by the Legislature or other competent autho rity; 3. All employees of all public school districts; and 4. Officers and members of the Oklahoma National G uard, as such. B. 1. Instructional and administrative personnel, except for superintendents, of the State Department of Rehabilitation Services at the Oklahoma School for the Blind and the Oklahoma School for the Deaf pursuant to Section 1419 of Title 10 of the Oklahoma Statutes shall be considered state employees, except they shall not be considered state employees for the purposes of the Oklaho ma Personnel Act, unless otherwise provided by law. However, the Office of Management and Enterprise Services may categorize such employees as unclassified solely for the purpose of entering and maintaining employment data in the state Personnel Managemen t Information System established pursuant to Section 840-2.13 of this title. HB3420 HFLR Page 88 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 2. The superintendents and teachers at the Oklahoma School for the Blind and the Oklahoma School for the Deaf shall be state employees in the unclassified service, subject to the Oklahoma Personnel Act Civil Service and Human Capital Modernization Act. SECTION 25. AMENDATORY 74 O.S. 2021, Section 840 -7.1, is amended to read as follows: Section 840-7.1 A. A state agency may enter into a contract with any federally recognized tribe or Indian Nation for the purpose of leasing one or more of its employees as follows: 1. The Indian Tribe or Nation has purchased real property from the state; and 2. The employee or employees were employed by the agency at the site of the purchased real property. B. The Indian Tribe or Nation shall pay to the agency in a manner specified in the contract an amount equal to the salary, employer retirement contributions and flexible benefit allowance attributed to such leased empl oyee or employees and any other expenses as agreed by the parties in the contract. C. Leased employees pursuan t to this section shall not lose any rights or benefits of being a state employee and shall reta in their classification status. SECTION 26. NEW LAW A new section of law to be codified in the Oklahoma Statutes as Section 311.2 of Title 75, unless there is created a duplication in numbering, read s as follows: HB3420 HFLR Page 89 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 A. The Civil Service Director of the Office of Management and Enterprise Services may de legate the authority to issue a final agency order adverse to a party to an agency administ rative law judge if: 1. The administrative law judge has a ge neral knowledge of the Civil Service and Human Capital Modernization Act, the Oklahoma Personnel Act, and rules promulgated thereto; 2. The administrative law judge: a. is currently licensed to practice law by the Supreme Court of this state, b. has a working knowledge of the Administrati ve Procedures Act and administrative rules of the Office of Management and Enterprise Services, c. is not an owner, stockholder, employee , or officer of, nor has any other business relationship with, any corporation, partnership, or other business or entit y that is subject to regulation by the Office of Management and Enter prise Services, d. is separate and apart from the legal division or office of general counse l of the Office of Management and Enterprise Servi ces, e. is not responsible to or subject to t he supervision or direction of an employee or agent engaged in the performance of investigative or prosecuting functions HB3420 HFLR Page 90 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 for the Office of Management and Enterpr ise Services, and f. has not been engaged in the p erformance of investigative or prosecuting fu nctions for the Office of Management and Enterprise Services regardin g the party receiving the final agency order; and 3. The Civil Service Director in delegati ng the authority to issue final agency orders adver se to a party pursuant to this section specifically designates by written agency policy and procedure the type or category of final agency order which may be issued by the administrative law judge. B. The provisions of this section shall not be construed t o authorize or allow restraints on the auth ority of the Civil Service Director to adopt, reject, review, modify , or correct the findings of fact and conclusions of law or any proposed order issued by the administrative law judge. C. When the administrative law judge issues a final agency order, that order becomes the final order of the Office of Management and Enterprise Services, Civil Service Division without further proceeding unless there is a request for rehearing, reopening, or reconsideration pursuan t to Section 317 of Title 75 of the Oklahoma Statutes or a filing for judicial review pursuant to Section 318 of Title 75 of the Oklahoma Statutes. HB3420 HFLR Page 91 BOLD FACE denotes Committee Amendments. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SECTION 27. REPEALER 74 O.S. 2021, Sections 840-1.2, 840-1.6B, 840-1.8, 840-1.9, 840-1.10, 840-1.12, 840-1.13, 840-1.15, 840-1.19, 840-1.21, 840-2.5, 840-2.6, 840-2.27A, 840-2.27B, 840- 2.27F, 840-2.27G, 840-2.27I, 840-2.29, 840-3.2, 840-3.4, 840-3.5, 840-3.6, 840-3.7, 840-3.9, 840-3.10, 840-3.11, 840-3.12, 840-3.13, 840-3.14, 840-3.15, 840-3.16, 840-3.17, 840-4.1, 840-4.2, 840-4.3, 840-4.4, 840-4.6, 840-4.8, 840-4.9, 840-4.10, 840-4.11, 840-4.12, 840-4.13, 840-4.14, 840-4.15, 840-4.16, 840-5.1, 840-5.1A, 840-5.2, 840-5.2A, 840-5.2B, 840-5.4, 840-5.5, 840-5.6, 840-5.7, 840-5.8, 840-5.9, 840-5.11, 840-5.12, 840-5.13, 840-5.13A, 840-5.15, 840- 5.16, 840-5.18, 840-5.19, 840-5.20, 840-5.21, 840-5.23, 840-5.24, 840-5.25, 840-5.26, 840-5.27, 840-6.1, 840-6.2, 840-6.3, 840-6.4, 840-6.5, 840-6.6, 840-6.7, 840-6.8, and 840-6.9, are hereby repealed. SECTION 28. It being immediat ely necessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof this act shall take effect a nd be in full force from and after its passage an d approval. COMMITTEE REPORT BY: COMMITTEE O N RULES, dated 03/02/2022 - DO PASS, As Amended and Coauthored.