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SENATE FLOOR VERSION
April 6, 2023
ENGROSSED HOUSE
BILL NO. 2026 By: Wolfley of the House
and
Pemberton of the Senate
An Act relating to public finance; amending 62 O.S.
2021, Section 34.70, which relates to payroll
deductions; requiring issuance of certain report; and
providing an effective date .
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O. S. 2021, Section 34.70, is
amended to read as follows:
Section 34.70 A. 1. Upon the request of a state employee, a
state agency shall make voluntary payroll deductions for the
employee to any credit union, bank, or savings association having an
office in this state.
2. If the governing body of any county, municipality, or school
district provides for voluntary payroll deductions to a credit union
serving the employees of the county, municipality, or school
district, it shall provide voluntary payroll de ductions to any
credit union, bank, or savings association having an off ice in this
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state which has a minimum participation of twenty percent (20%) of
the employees of the county, municipality, or school district.
B. Upon the request of a state employee a nd pursuant to
procedures established by the Director of the Office of M anagement
and Enterprise Services, a state agency shall make payroll
deductions for:
1. The payment of any insurance premiums due a private
insurance organization with a minimum parti cipation of five hundred
(500) state employees for life, accident, and h ealth insurance which
is supplemental to that provided for by the state;
2. The payment of any insurance premiums, other than the
premiums due pursuant to paragraph 1 of this subsecti on, due a
private insurance organization or service company with a minim um
participation of five hundred (500) state employees for legal
services;
3. Premiums or payments for retirement plans with a minimum
participation of five hundred (500) state employ ees for retirement
plans which are supplemental to that provided for by the state;
4. Salary adjustment agreements included in a flexible benefits
plan as authorized by the State Employees Flexible Benefits Act;
5. Membership dues utilized for benefits, goods or services
provided by the Oklahoma Public Employees Association to the
organization's membership or any other statewide association limited
to state employee membership with a minimum membership of two
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thousand (2,000) dues -paying members. For pur poses of this
paragraph, state agencies shall accept online or electroni cally
submitted forms from the Oklahoma Public Employees Association and
other state employee associations. The Office of Management and
Enterprise Services shall develop and implemen t a verification
process for online or electronically submitted forms wh ich may
include the use of electronic signature technology or other process
as determined appropriate . In addition, the Office of Management
and Enterprise Services shall provide an association representing
state employees with a reconciliation report once a month containing
information related to the name, warrant number and warrant date of
those employees that have opt ed into the association 's membership;
6. Contributions to any fou ndation organized pursuant to 26
U.S.C., Section 501(c)(3) of the Oklaho ma Public Employees
Association or any other statewide association limited to state
employee membership with a minimum membership of two thousand
(2,000) dues-paying members;
7. Payments to a college savings account administered under the
Oklahoma College Savings Plan Act pursuant to Section 3970.1 et seq.
of Title 70 of the Oklahoma Statutes;
8. Subscriptions to the Oklahoma Today magazine published by
the State of Oklahoma through t he Oklahoma Tourism and Recreation
Department; and
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9. The payment of an y insurance premiums due a private
insurance organization, which is regulated by the State Insurance
Commission, for an Oklahoma Long -Term Care Partnership Program
approved policy purs uant to the Oklahoma Long -Term Care Partnership
Act.
C. The administrative costs of processing payroll deductions or
administering salary adjustment agreements for insurance premiums as
provided for in subsection B of this section shall be a charge of
two percent (2%) of the gross annual premiums for insurance plans.
The administrative costs of processing payroll deductions or
administering salary adjustment agreements for payments for
retirement plans as provided for in subsection B of this section
shall be one percent (1%) of the gross annual payments for
retirement plans. These charges shall be collected monthly from the
private insurance or retirement plan organization by the Office of
Management and Enterprise Services and shall be deposited to the
credit of the General Revenue Fund. Provided that these costs shall
not be collected from state employees or state agencies unless
otherwise directed in the Oklahoma State Finance Act.
D. Any statewide association granted a payroll deduction prior
to January 1, 2008, shall be exempt from the minimum state employee
membership requirement.
E. Approval of a payroll deduction or salary adjustment
agreement for any insurance organization, line of coverage or policy
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shall not be construed as an assumption of li ability, for the term
of policy or the performance of the insurance orga nization, by this
state, or any of its agencies or any officer or employee thereof.
Contracts for such insurance shall be in all respects subject to the
insurance laws of this state, and shall be enforceable solely
pursuant to such laws.
F. The Oklahoma Employment Security Commission is authorized to
deduct from the wages or salary of its employees the employees '
contribution to the Oklahoma Employment Security Commission
Retirement Plan.
G. Payroll deductions shall be made for premium payments for
group insurance for retired members or beneficiaries of any state-
supported retirement system upon proper authorization given by the
member or beneficiary to the board from which the member or
beneficiary is currently receiving retirement benefits.
H. Upon request of instructional personnel employed at either
the Oklahoma School for the Blind or the Oklahoma School for the
Deaf and pursuant to procedures established by the Director of the
Office of Management and Enterprise Services, the Commission for
Rehabilitation Services shall make payroll deductions for membership
dues in any statewide educational employee organization or
association.
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I. Upon the request of a state employee of the Dep artment of
Corrections, the Department shall make voluntary payroll dedu ctions
for the employee to the Correctional Peace Officer Foundation.
SECTION 2. This act shall become effective November 1, 2023.
COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT
April 6, 2023 - DO PASS