ENGR. H. B. NO. 3420 Page 1 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
ENGROSSED HOUSE
BILL NO. 3420 By: Osburn of the House
and
Pugh of the Senate
An Act relating to state employees; amending 62 O.S.
2021, Section 34.301, which relates 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, 840-2.10a, 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 Human Capital Management 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; amending 74 O.S. 2021,
Section 5003.5, which relates to the Department of
Commerce; modifying powers and duties of the
Department; removing obsolete provisions; authorizing
delegation of authority to issue final order;
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, 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,
ENGR. H. B. NO. 3420 Page 2 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 Division and the Civil Service
Division of the Office of Management and Enterprise Services shall:
1. Establish and maintain a State Employee Disput e Resolution
Program, which may include mediation, to provide dispute resolution
services for state a gencies and state employe es. Actions agreed to
through the State Employee Dispute Resolution Program shall be
consistent with applicable laws and rules an d shall not alter,
reduce or modify any existing right or authority as provided by
statute or rule;
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 t o offer
ENGR. H. B. NO. 3420 Page 3 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
counseling, assessment and assistance to veterans seeking stat e
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 methods of disposition of
such cases, complaints and requests for hearing.
Quarterly reports shall be submitted within thirty (30) days
following the last day of the month of the appropriate quarter; and
6. Create a confide ntial whistleblower prog ram 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
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
ENGR. H. B. NO. 3420 Page 4 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Office of the Attorney General s hall have the authority to
investigate and determine whether to prosecute such whistleblower
claims. The Attorney General shall a lso 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 st ate agency.
The review of the merits of the complaint shall be limite d 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
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.
ENGR. H. B. NO. 3420 Page 5 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
F. The presiding officer of any proceeding before the Human
Capital Management Civil Service Division may require paymen t 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, in voluntary 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 appointees;
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
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;
ENGR. H. B. NO. 3420 Page 6 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 employ ment status is otherwise
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 Division of the Office
of Management and Enterprise Services, without reference to prior
classified or unclassified status.
J. Under the administratio n and oversight of the Human Capital
Management Division as set forth in subsection I of this se ction,
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 develop procedures for screening, hiring and
disciplinary actions of state em ployees subject to guidance and
approval by the Division.
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
ENGR. H. B. NO. 3420 Page 7 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
representation of the Civil Service Divi sion when its decisions are
appealed to higher courts. Attorneys employed by the Office of
Management and Enterprise Services to represent the Civ il Service
Division shall represent the Civil Service Division notwithstanding
its representation of the Offi ce of Management and Enterpr ise
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 d epartments 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 shal l be exempt from the
requirements set forth in Section 20i of Title 74 of the Oklahoma
Statutes when carrying out the duties and functions of this act.
SECTION 2. AMENDATORY 74 O.S. 2021, Section 840-1.3, is
amended to read as fol lows:
Section 840-1.3 As used in the Oklahoma Personnel Act this act,
unless otherwise provided in S ections 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 government;
2. "Employee" or "state employee" means an elected or appointed
officer or employee of an agency unless otherwise indicated;
ENGR. H. B. NO. 3420 Page 8 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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, consiste nt
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 distin ct job families
so that each job family will contain th ose 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 o f Personnel
Administration;
7. "Copy" means the duplication of an original document or
recording. The copy may be provided in an electronic format
generated from technology having e lectrical, digital, magnetic,
wireless, optical, electromagnetic, or simi lar capabilities;
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 o f similar jobs on a
ENGR. H. B. NO. 3420 Page 9 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
register of eligibles established b y 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 spec ific type of
occupation in which the differences between roles are
related to the depth and breadth of experience at
various levels within the job family and which are
sufficiently similar in duties an d requirements of the
work to warrant similar treatment as to title, typical
functions, knowledge, skills and abilities required,
and education and experience requirements;
11. "Job family level" means a role in a job family having
distinguishable charact eristics 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 lim ited to,
the basic purpose, typical functions performed,
various levels within the job family, and the
knowledge, skills, abilit ies, education, and
experience required for each level, and
b. identifies the pay band assigned for each level;
ENGR. H. B. NO. 3420 Page 10 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
13. "Promotional examination" means any employment test
designated by the Office of Mana gement and Enterprise Services to
determine further the qualifications of a permanent classified
employee of a state agency for employment in a different job for
which the employee po ssesses the minimum qualifications of
education, experience, or licensure within 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 em ployed with the state;
15. "Intra-agency transfer" means moving an emplo yee from one
position to another position with the same agency either with or
without reclassification;
16. 4. "Job-related organization" means a membership
association which collect s annual dues, conducts annual meetings and
provides job-related education for its members and which includes
state employees, incl uding any associatio n for which payroll
deductions for membership dues are authorized pursuant to paragraph
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 prior to the
lateral transfer;
ENGR. H. B. NO. 3420 Page 11 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 Commission 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 req uire written
examinations for placement on registers of el igibles;
21. "Permanent classified employee" means a classified service
employee who has acquired permanent status in accordance with the
Oklahoma Personnel Act, and rules adopted pursuant thereto, and who
has the right to appeal involuntary demotion, sus pension without
pay, and discharge to the Commission;
22. "Presiding official" means a person serving the Oklahoma
Merit Protection Commission in the capacity of administrative
hearing officer, med iator, 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 flexibility to vary penalties if justified b y
aggravating or mitigating conditions;
ENGR. H. B. NO. 3420 Page 12 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 ch ange in the employee's assigned job
code;
25. "Regular and consistent" means, in connection with the work
assignments of an employee, the usual and normal work assignments of
the employee, excluding incidental, casual, or occasional tasks and
activities the employee 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 considered
regular and consistent;
26. "Regular unclassified service employee " means an
unclassified service employee who is not on a temporary or oth er
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 subor dinates;
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 System of Personnel
Administration;
ENGR. H. B. NO. 3420 Page 13 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 Enterp rise
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 Un ited States and has been a
resident of Oklahoma for at least one (1) year prior to the date of
the examination; and
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 Enterprise 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 this act.
ENGR. H. B. NO. 3420 Page 14 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 Director of the Office of Management and Enterprise
Services may employ at torneys, accountants 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 Sys tem
of Personnel Administration, unless otherwise exempted by Section
840-5.5 of this title.
SECTION 4. AMENDATORY 74 O.S. 2021, Section 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
Statutes, it shall mean the Office of Manage ment 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 eff icient 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 Director is directed to
establish an agency se rvice function to assist agencies with human
ENGR. H. B. NO. 3420 Page 15 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 thos e established by the 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 President Pro Tempore of
the Senate, and the Speaker of the House of Representatives no later
than December 1 of each year. Such analysis shall include all forms
of compensation incl uding fringe benefits. Information solicited by
the Office of Management and Enterprise Services from public and
private sector employers 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 Open Records Act;
6. Develop a program for t he 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 the recruitment program
ENGR. H. B. NO. 3420 Page 16 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
established by this section, the Director 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 substantially limit the
pool of available ap plicants. Applicants 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 family levels from expedited recruitment at a ny
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 indi viduals 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 necessary;
9. 7. Develop, in cooperation with appointing authorities,
employee training programs, management trai ning programs, a
certified public manager program, a recruiting program, and a system
ENGR. H. B. NO. 3420 Page 17 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 performance appraisals, and assist appointing authorities in the
setting of productivity goals. The Director may establish 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 sponsored by the Office
of Management and Enterpr ise 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 pay
incentives and salary adjustments consistent with the Oklahoma
Personnel Act this act and reduction-in-force;
11. Assist the Oklahoma Merit Protection Commission and the
Executive Director in effectuating their duties, enforcement of the
rules of the Merit System of Personnel Administration, 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;
ENGR. H. B. NO. 3420 Page 18 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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. Each 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 bill agencies for the training of personnel
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
ENGR. H. B. NO. 3420 Page 19 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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
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 within 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
ENGR. H. B. NO. 3420 Page 20 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
agencies in fully integrating quality management concepts an d models
into their business practices for the purpose of improving the
overall efficiency and effectiveness 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 Commi ssion
or the Executive Director of the Oklahoma M erit Protection
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 b y the President Pro
Tempore of the Senate. Two members of the Commission shall 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 appo intments made to
the Commission, one member appoi nted by the President Pro Tempore,
ENGR. H. B. NO. 3420 Page 21 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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, one 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 t erm of one (1) year. At
the expiration of the init ial 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 reimburse ment
for expenses incurred in the performance of their duties as provided
in the State Travel Reimbursement Act.
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 s hall hold regular meetings not
less than once a mon th and such additional meetings as called by the
chairman as may be required for the proper discharge of its duties
Human Capital Management 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 Services.
C. Upon request of the Directo r of the Office of Management and
Enterprise Services, the pe rsonnel of the Commission shall deliver
ENGR. H. B. NO. 3420 Page 22 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 the 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
decisions of the Commission until duly modified or abrogated by the
appropriate body or until otherwise 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.
ENGR. H. B. NO. 3420 Page 23 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 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 perform ed which are
not appropriately charged to state agencies on a pro rata basis.
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
ENGR. H. B. NO. 3420 Page 24 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 employed 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 thereon.
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 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
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 from 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 person to recover
the agreed pay for such services, or the reasonable value thereof if
ENGR. H. B. NO. 3420 Page 25 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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 or 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
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
ENGR. H. B. NO. 3420 Page 26 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 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
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.
ENGR. H. B. NO. 3420 Page 27 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 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 service, 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 the 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
through 404 of Title 72 of the Oklahoma Statutes shall not
constitute favoritism as herein prohibited.
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 public
employees by public officials shall not be considered of ficial
ENGR. H. B. NO. 3420 Page 28 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 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
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 840-2.10a,
is amended to read as follows:
ENGR. H. B. NO. 3420 Page 29 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 leav e shall 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 this
section which, at a minimum, shall specify the types of events which
shall qualify state e mployees for debriefing and counseling
services.
SECTION 10. 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
ENGR. H. B. NO. 3420 Page 30 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 11. 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
ENGR. H. B. NO. 3420 Page 31 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 Services 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 transac tions
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 sectio n 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 direction 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 files a classification griev ance
shall be conducted during such periods in accordance with the
provisions of Section 840-4.3 of this title.
ENGR. H. B. NO. 3420 Page 32 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 age ncy to ensure that the duties
and responsibilities assigned to an employee are consistent with the
current classification of the employee.
SECTION 12. 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 the 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 R egents for
Higher Education, employees of publ ic school districts and elected
officials, employed after July 1, 2007 , shall receive a minimum
ENGR. H. B. NO. 3420 Page 33 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 13. AMENDATORY 74 O.S. 2021, Section 840-2.17,
is amended to read as follows:
Section 840-2.17 A. Unless otherwise provide d 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 ent ity of the executive 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 Enterpris e 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
ENGR. H. B. NO. 3420 Page 34 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 executive 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 funding 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;
ENGR. H. B. NO. 3420 Page 35 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 remove d
from an employee's base salary if a furlough o r reduction-in-force
is implemented by the appointing authority granting such salary
adjustment. Skill-based pay adjustments, which are implemented on
or after November 1, 2006, and which are paid to an empl oyee, 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
ENGR. H. B. NO. 3420 Page 36 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%) for
probationary career employee s 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 jo b family level or following
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 Legisl ature shall not be
implemented without approval of the Legislature.
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 Enterprise Services for the career ser vice.
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 movement 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.
ENGR. H. B. NO. 3420 Page 37 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 offic ers of any agency, board, commission,
department or program except 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 Senate 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 14. 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 administrative 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 longevity 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 Section 3-3-103 of Title 27A of the
ENGR. H. B. NO. 3420 Page 38 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 reimbursement 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 employed
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 to the following schedule:
Years of Service Annual Longevity Payment
At least 2 years but
less than 4 years $250.00
ENGR. H. B. NO. 3420 Page 39 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 annual 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
ENGR. H. B. NO. 3420 Page 40 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 employee
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 applicab le. 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 count ed 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 em ployed in a job classification which is
ENGR. H. B. NO. 3420 Page 41 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 agency 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 amount
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 paid 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 form ula 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.
ENGR. H. B. NO. 3420 Page 42 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 would 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 section, 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 accrued 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 no 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) calen dar
days shall not mark a break in service; howeve r, they shall:
ENGR. H. B. NO. 3420 Page 43 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 ex cept as provided in
subsection H of this section for employees 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 Education 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 a s 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 s tate 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 prorated 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.
ENGR. H. B. NO. 3420 Page 44 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 enti tled to retroactive longevity
payments as a result of amendments 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 Department 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 transferred to the Oklahoma Conservation
Commission pursuant to the provisions of this section.
SECTION 15. AMENDATORY 74 O.S. 2021, Section 840-2.19,
is amended to read as follows:
Section 840-2.19 A. The Director of th e Office of Management
and Enterprise Services sha ll not approve any payroll claim for
ENGR. H. B. NO. 3420 Page 45 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 agen cy 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 section, "payroll
claim" shall also include longevity 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 this act:
1. Audit findings shall be promptly transmitted to the
appointing authority of the agen cy 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
ENGR. H. B. NO. 3420 Page 46 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 a ctual 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 excepti on 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 re garding 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
ENGR. H. B. NO. 3420 Page 47 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 overpaymen t 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 shal l 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 e xception
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 th at 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,
ENGR. H. B. NO. 3420 Page 48 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
ENGR. H. B. NO. 3420 Page 49 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 repay ment 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:
ENGR. H. B. NO. 3420 Page 50 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 afte r
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 de termine 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 16. 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.
ENGR. H. B. NO. 3420 Page 51 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 Office 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 shall 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 hours 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 than 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 appointing 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 compensatio n
at the employee's regular rate of pay for the amount of excess leave
ENGR. H. B. NO. 3420 Page 52 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, th e following accrual 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 Gove rnor 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
ENGR. H. B. NO. 3420 Page 53 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 l eave 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 reinstated 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 Offic e of Management and Enterprise Services is
authorized to provide pursuant to the Administrative Procedures Act.
ENGR. H. B. NO. 3420 Page 54 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 m iss
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 pursuan t 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.
ENGR. H. B. NO. 3420 Page 55 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 leave 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 17. AMENDATORY 74 O.S. 2021, Section 840-2.21,
is amended to read a s 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
ENGR. H. B. NO. 3420 Page 56 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
ENGR. H. B. NO. 3420 Page 57 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
ENGR. H. B. NO. 3420 Page 58 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 s ervice
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 provi ded 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
ENGR. H. B. NO. 3420 Page 59 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. Furth er, nothing 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 18. 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 cause d or is
likely to cause the emplo yee to take leave without pay or termina te
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 cal endar year; or
ENGR. H. B. NO. 3420 Page 60 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 in jury as a result of
the disaster,
b. the spouse, relative, or household m ember 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 destr oyed 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 fin ancial
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;
ENGR. H. B. NO. 3420 Page 61 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" means a permanent classified an employee or
a regular unclassified employee with one (1) year or more con tinuous
service 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 le ave as
provided in paragraph 4 of subsection A of this sect ion 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 progr am, employees who are afforded
protections under the Civil Service and Human Ca pital 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 re ceive 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 abi ded by state 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.
ENGR. H. B. NO. 3420 Page 62 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 leave to another
employee provided th e donation 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 subsection, 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 e mployment. 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 r each in the 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 a pproval 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 expe cted
duration of the illness, injury, impai rment, or physical or mental
condition for which the leave is donate d.
ENGR. H. B. NO. 3420 Page 63 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 employees
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 donated leave
remaining will be divide d among 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 v oluntarily. No employee
shall be coerced, threatened, intimidated, or financially induced
into donating annual or sick leave for purposes of the leave sharing
program.
ENGR. H. B. NO. 3420 Page 64 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 Division of the Office of
Management and Enterprise Services shall designate an employee to
serve as the shared leave liaison. If a qualifying employee is
unable to obtain the necessary number of do nated 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 requ irements of this
section;
2. To inform all state 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 effo rts within 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 Last Resort Bank;
and
ENGR. H. B. NO. 3420 Page 65 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 l eave from
employees within his or her emplo ying 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 Division of the Offi ce of Management and
Enterprise Services.
1. The Leave of Last Resort Bank shall be funded by voluntary
donations of annual and sick leave from 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 deposited 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 19. AMENDATORY 74 O.S. 2021, Section 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 i s a
ENGR. H. B. NO. 3420 Page 66 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 organiz ational leave 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 20. AMENDATORY 74 O .S. 2021, Section 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, th e appointing 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 Personne l Act and Merit
rules. The reduction-in-force implementation plan shall be pro vided
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 approv ed by the
cabinet secretary for the agency conducting the r eduction-in-force.
If there is no incumbent cabinet secretary for the agency, the
cabinet-secretary-notice-approval requirement sh all not be
applicable. If the appointing auth ority is governed by an elected
official, the cabinet-secretary-notice-approval requirement shall
ENGR. H. B. NO. 3420 Page 67 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 each
office affected by the proposed plan for five (5 ) days. The
appointing authority shall provid e a copy of the noti ce to the
Administrator. A reduction-in-force shall not be used as a
disciplinary action.
B. The reduction-in-force implementation plan and subsequent
personnel transactions directly relat ed to the reduction-in-force in
executive branch agencies shall be in compliance with rul es adopted
by the Administrator. Th e reduction-in-force implementation plan,
including the description of and reasons 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 office 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 aut hority to determine the
specific position or positions to b e 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 cl assified affected
employees in affected job family levels, except those affected
employees on probationary status after reinstatement from permanent
classified status without a break in service, prior to the
ENGR. H. B. NO. 3420 Page 68 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 displacemen t of any permanent clas sified affected
employee in an affec ted job family level;
4. Provide for retention of permanent classified affected
employees in affected job family levels and those affected employees
on probationary status afte r reinstatement from permanent classified
status without a break in service bas ed upon consideration of years
of service;
5. Provide for exercise of displacement opportunities by
permanent classified affected employees and those affected employees
on probationary status afte r reinstatement from pe rmanent classified
status without a break in service 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 emplo yment 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 Enterpr ise
Services shall review the fiscal compon ents of the reduction-in-
ENGR. H. B. NO. 3420 Page 69 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 plan 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 numb er of affected employee s
likely to participate in the educa tion voucher 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 pur suant to a
reorganization, the fisca l components 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 s ervice.
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 upo n reasonable, written, articulated
criteria as certified by the appointing 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 p rotect from displacemen t
action up to twenty percent (20%) of projected post-reduction-in-
force employees in affecte d positions within displacement limits;
ENGR. H. B. NO. 3420 Page 70 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 sha ll be
rounded to the next higher who le number. The appointing authority
must explain why aff ected employees are being protected.
2. If the affected employee has not held within the last five
(5) years a position in the job family level or predecessor cla ss 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 wr iting the displacement opportunity.
3. An affected permane nt classified 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 re cent annual service rat ing. If an
affected employee has no t been rated 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 r ecent 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
ENGR. H. B. NO. 3420 Page 71 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 Services, acknowledging that the
employee had an oppo rtunity to receive severance
benefits and affirmatively elected to exercis e a
displacement privilege and to forego such benefits.
An affected employee who signs t he agreement required
by this subparagraph waives any privilege which might
otherwise have been available to the affected 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 privilege in, or
accepting severance benefits from, more than one
agency during employment wi th the State of Oklahoma or
from the agency which the affected employee ex ercised
a displacement privilege in any future reduction-in-
force.
F. An affected employ ee who does not agree pursuant to Se ction
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 t he reduction-in-
ENGR. H. B. NO. 3420 Page 72 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 any severance benefits that would h ave
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 re instatement from per manent
classified status without a break in service who wer e removed from a
job family level by taking a position in another job family level
through displacement or separated after foregoin g severance benefits
shall be recalled by the agency to the job fa mily level from which
they were removed in inverse order of removal before the agency may
appoint other persons to t he job family level, from the employment
register, by internal action or f rom Priority Reemployment
Consideration Roster s as provided by thi s section. Upon declin ation
of an offer of reappointment t o the job family level from which the
employee was removed or eighteen (18) months 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 permane nt 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 Go vernment Reduction-in-Force
and Severance Benefits Act, who apply and meet all requirements for
state jobs in the classified service sha ll be placed on Priority
Reemployment Consideration Rosters for a maximum of eighteen (18)
months after the date of sepa ration. Before any vacant position is
ENGR. H. B. NO. 3420 Page 73 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 in itial appointment from the
employment register, individuals on the Priority Reemployment
Consideration Rosters shall be given prior ity consideration for
reemployment by any stat e agency within eigh teen (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 same 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, whichever is
first, this priority co nsideration 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 pla n
and any within the displacement limits es tablished by the appointing
authority of the agency who have been separated shall be eligible
for priority reemployment 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 for Priority Reemployment
Consideration after t heir separation in accordance with subsection H
of this section, may apply and, if qualified and eligible, shall be
accorded Priority Reempl oyment Consideration no t to exceed twelve
(12) months before the scheduled 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 a ny
within the displacement limits establish ed by the appointing
ENGR. H. B. NO. 3420 Page 74 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 shall be eligible for Priority Reemployment
Consideration beginning with 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 reduction shall be made pursuant to redu ction-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 stat e employees
whenever it is deemed ne cessary 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 involunt ary leave
without pay. Rules govern ing leave, longevity pay and participation
in the State Employees Group Health, Dental, Disability, and Life
Insurance program shal l not be affected by mandatory furloughs.
Furlough, as provided f or in this section or b y rules adopted by the
ENGR. H. B. NO. 3420 Page 75 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 of Management and Enterprise Services, shall
not be appealable under the provisions of the Oklahoma Personnel Act
this act.
3. Notwithstanding existing laws or provis ions to the contrary ,
members of state boards and co mmissions shall not receive per diem
expenses during periods of mandatory furlough. The Conting ency
Review Board shall additionally call upon elected officials, membe rs
of the judiciary, and other public officers whose salary or
emoluments cannot be alter ed 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 Contingen cy 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 Representativ es on a quarterly ba sis 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 m ay 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
ENGR. H. B. NO. 3420 Page 76 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 participate on a task force shall
assign appropriate administrative personnel necessary to faci litate
the necessary assistance required for the efficient implementati on
of the approved reduction-in-force.
SECTION 21. AMENDATORY 74 O.S. 2021, Section 840-2.27D,
is amended to read as follows:
Section 840-2.27D A. Agencies shall provide severance 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 severed from the state
service. Severance benefits shall b e given to the following
categories of affected emp loyees: 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 and Section 840-5.1A
of this title, state agencies may pro vide severance benefits
provided by this subsection to regular unclassified employe es with
one (1) year or more continuous state service who are separated from
the state service for budgetary reasons; however, state agencies
ENGR. H. B. NO. 3420 Page 77 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 separa ted 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 leave or other benefits an affected employee is
eligible to receive upon separation from the state service, shall
receive severance benefits consisting of 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 the cost of the
premium at the time of the reduction-in-force. The
appointing authority of the agency can ask t he
Director of the Office of Management and Enterprise
Services to waive the severance benefit provision in
this subparagraph or to reduce the length of coverage
or subsequent severance benefit payment upon
demonstration of the agency's inability to fund t he
full benefit,
b. a longevity payment, as prescribed by Section 840 -2.18
of this title, in the amount which would otherwise be
ENGR. H. B. NO. 3420 Page 78 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 affected
employee's next anniversary date. For the purposes of
this subparagraph, the Uni versity Hospitals Authority
shall calculate longevity for affected employees who
were members of the University Hospitals Author ity
Model Personnel System pursuant to Section 3211 of
Title 63 of the Oklahoma Statutes for all state
service as would otherwis e be determined by Section
840-2.18 of this title, and
c. outplacement assistance and employment counseling
prior to and after t he 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;
2. In addition to the severance benefits provid ed by paragraph
1 of this subsection, agencies may shall give affected employees,
except as otherwise provided by paragraph 3 of this subsection,
severance benefit packages based on any combination of the following
options,; provided that all affected empl oyees who receive severance
benefits in the reduction-in-force shall be are accorded uniform
treatment pursuant to the Stat e Government Reduction-in-Force and
Severance Benefits Act :
ENGR. H. B. NO. 3420 Page 79 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 b y the whole
number fifty-two (52), for each year of service,
b. a maximum lump-sum payment of Five Thousand 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 purs uant 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 exer cising 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 Enterprise
Services, provided tha t the agency offers to match empl oyee
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 affected employee to the fund
subject to a maximum affected employee c ontribution 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
ENGR. H. B. NO. 3420 Page 80 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 exceed the contribution
of the affected employee,
b. the affected employee may pay the cost for the voucher
program directly, subject to 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 whic h would otherwise have been
used to make payments to the displaced affected
employee pursuant to an election 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 o r
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 vo ucher 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 tuition and fees
ENGR. H. B. NO. 3420 Page 81 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 Office of Management and
Enterprise Services shall distribute to the affec ted
employee and the agency any monies remaining in the
affected employee's acc ount 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 thereund er 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 Okl ahoma as required by Section 840 -2.27E of this
title.
B. Each affected employee who is separated from state service
as a result of a reduction-in-force after July 1, 1998, besides
being eligible for the eight een (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 healthcare
reimbursement account options, under this severance benefit, shall
also be eligible to elec t additional continuation coverage for a ny
life insurance, in twenty-thousand-dollar units, on self or five-
ENGR. H. B. NO. 3420 Page 82 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 rate is then in effect.
This additional eighteen -month continuation period of coverage shall
be administered by the Oklahoma State Employees Benefits Council
following the initial eighteen-month period of continuation which
shall be administered by the COBRA office at the State and Education
Employees Group Insurance Board.
C. Part-time affected employees 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) hours 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 grant affected employees in a
reduction-in-force severance benefits except as provided in this
section.
ENGR. H. B. NO. 3420 Page 83 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 22. 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 shall be subject to the Civil
Service and Human Capital Modernization Act. For transfers not
deemed punitive, a partial pa yment by the State of Oklahoma shall be
paid to a certified car rier for the cost of moving any employee
permanently transferred at the request of a state agency. A minimum
cost shall be Two Thousand Five Hundred Dollars ($2,500.00) up to a
maximum of twenty percent (20 %) of the employee's current salary.
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
ENGR. H. B. NO. 3420 Page 84 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
3. The action was taken clearly for disciplinary reasons and to
deny the employee the right of appeal.
SECTION 23. AMENDATORY 74 O.S. 2021, Section 840-5.3, is
amended to read as follows:
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 public 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 Ok lahoma National Guard, 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 Ent erprise Services may categorize such
employees as unclassified solely for the purpose of entering and
ENGR. H. B. NO. 3420 Page 85 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
maintaining employment data in the state Personnel Managemen t
Information System established pursuant to Section 840-2.13 of this
title.
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 24. 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 empl oyees 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 pursuant to this section shall not lose any
rights or benefits of being a state employee and shall reta in their
classification status.
ENGR. H. B. NO. 3420 Page 86 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 25. AMENDATORY 74 O.S. 2021, Section 5003.5, is
amended to read as follows:
Section 5003.5 A. The Director of the Department of Commerce
shall be appointed by the Governor with t he advice and consent of
the Senate. The Director shall serve at the pleasure of the
Governor and shall continue to s erve until a successor is duly
appointed and qualified. The salary of the Director shall be set by
law.
B. The Director shall be qualifi ed for such position by
character, personality, ability, education, traini ng and successful
administrative experience in the public or private sector.
C. The Director shall employ such persons as are necessary to
implement the powers and duties of the Dep artment. Because many of
the powers and duties of the Department involve working closely with
the private sector, certain employee positions of the Depar tment
must shall be governed, classified employed and compensated in a
manner that compares equally to similar positions in the private
sector. Therefore, in the annual business plan, the Director shall
list, describe and justify all such positions and th eir compensation
and shall designate and place them in uncla ssified status, and shall
be exempt from the provisions of the Oklahoma Personnel Act Civil
Service and Human Capita l Modernization Act. All other employees
and positions shall be classified and subject to the provisions of
the Merit System of Personnel Administration as provided in the
ENGR. H. B. NO. 3420 Page 87 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 Personnel Act Civil Service and Human Capital Modernization
Act. Provided, nothing in this section shall be construed to limit
the authority of the Le gislature to specify the status of positions
otherwise by law. Neither shall the Director have the authority to
circumvent, disregard or otherwise disobey specific provisions of
law regarding positions in the Department.
D. The Director shall serve on th e board of:
1. The Oklahoma Industrial Finan ce Authority;
2. The Oklahoma Scienc e and Technology Research and Development
Board;
3. The Oklahoma Development Finance Authority;
4. The Executive Bond Oversight Commission; and
5. The Oklahoma Ordnance Wo rks Authority.
E. The Director may serve as administrator of any interlocal
agreement or compact to pursue economic development and to assign
any employees of the Department or employe e personnel to carry out
duties or obligations pursuant to any interloc al agreement or
compact for economic developm ent.
F. The Director, at his or her discretion, may approve payment
for affiliations or memberships of the Department or, if necessary,
associate memberships for individual emplo yees in international,
national, or state economic development councils, prof essional
organizations, or government al associations.
ENGR. H. B. NO. 3420 Page 88 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 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:
A. The Civil Service Director of the Office of Management and
Enterprise Services may delegate the authority to issue a final
agency order adverse to a party to an agency admin istrative law
judge if:
1. The administrative law judge has a ge neral knowledge of the
Civil Service and Human Capital Modernization 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 Enterprise Services,
d. is separate and apart from the legal division or
office of general counsel of the Office of Management
and Enterprise Servi ces,
ENGR. H. B. NO. 3420 Page 89 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. 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
for the Office of Manageme nt and Enterprise 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 regarding the
party receiving the final agency order; and
3. The Civil Service Direct or in delegating 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 ther e is a request for rehearing,
reopening, or reconsideration pursuan t to Section 317 of Title 75 of
ENGR. H. B. NO. 3420 Page 90 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 Oklahoma Statutes or a filing for judicial review pursuant to
Section 318 of Title 75 of the Oklahoma Statutes.
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 shal l take effect and
be in full force from and after its passage an d approval.
ENGR. H. B. NO. 3420 Page 91 1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Passed the House of Representatives the 23rd day of March, 2022.
Presiding Officer of the House
of Representatives
Passed the Senate the ___ day of __________, 2022.
Presiding Officer of the Senate