Oklahoma 2024 Regular Session

Oklahoma House Bill HB1798 Compare Versions

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3-ENGR. S. A. TO ENGR. H. B. NO. 1798 Page 1 1
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3033 ENGROSSED HOUSE
31-BILL NO. 1798 By: Osburn of the House
34+BILL NO. 1798 By: Osburn, Menz, and Deck of
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3539 Thompson (Roger) of the
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4245 [ state government - Oklahoma Personnel Act - pay
4346 structures - studies of compensation - adjustment
4447 percentage cap - effective date ]
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49-AUTHOR: Add the following House Coauthors: Menz and Deck
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51-AUTHOR: Add the following Senate Coauthor: Floyd
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53-AMENDMENT NO. 1. Page 1, strike the enacting clause
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55-Passed the Senate the 24th day of April, 2023.
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59- Presiding Officer of the Sen ate
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62-Passed the House of Representatives the ____ day of __________,
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95-ENGROSSED HOUSE
96-BILL NO. 1798 By: Osburn of the House
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107-[ state government - Oklahoma Personnel Act - pay
108-structures - studies of compensation - adjustment
109-percentage cap - effective date ]
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11453 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLA HOMA:
11554 SECTION 1. AMENDATORY 74 O.S. 2021, Section 840 -2.15A,
11655 is amended to read as follows:
11756 Section 840-2.15A There is hereby established the "State
11857 Employee Compensation Program " within the executive branch. The
11958 State Employee Compensation Program will attract, retain and reward
12059 quality employees with competi tive total compensation based on
12160 relevant labor markets. The Office of Management and Enterprise
12261 Services will be responsible for coordinat ing the implementation of
12362 the compensation program. The compensation program will establish
12463 pay structures with a goal of compensating which compensate state
12564 employees at a level of at least a ninety percent (90%) of
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15292 compensation for comparable private se ctor positions. This shall be
15393 done by a gradual in crease over the following fiscal years :
15494 1. Eighty-five percent (85%) for the f iscal year beginning July
15595 1, 2024;
15696 2. Eighty-seven percent (87%) for the fiscal year beginning
15797 July 1, 2025; and
15898 3. Ninety percent (90%) for the fiscal year beginning July 1,
15999 2026.
160100 Upon reaching the ninety -percent threshold, the Office of
161101 Management and Enterprise Services s hall maintain the compensation
162102 levels at such a percentage based upon the fiscal year 2023 Market-
163103 Based Pay Study and subsequent pay studies funded and performed
164104 every four (4) years therea fter. These studies shall be funded to
165105 examine the overall compens ation for all positions covered by the
166106 Office of Management and Enterprise Services under the Civil Service
167107 and Human Capital Management Act. The studies shall include an
168108 analysis of the overall state workforce and recommendations for any
169109 increase or decrease in specific areas of the workforce. The
170110 studies shall be completed, and the findings submitted to t he
171111 Offices of the Governor, the Speaker of the Oklahoma House of
172112 Representatives, and th e President Pro Tempore of the Oklahoma State
173113 Senate, by December 31 of each required year.
174114 The compensation program will reinforce a productive work
175115 climate and culture of accountability and make the State of Oklahoma
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202143 an employer of choice. Pay structures will be implemented with
203144 fairness and equity throughout the e xecutive branch. Pay delivery
204145 mechanisms will be based on a combination of establishing and
205146 maintaining relativity to market, achievement of performance
206147 objectives, recognition of differences in job content, acquisition
207148 and application of further skill an d education. The Legislature
208149 will be accountable for the funding of the pay structures
209150 established pursuant to the compensation program.
210151 SECTION 2. AMENDATORY 74 O.S. 2021, Section 840 -2.17, as
211152 amended by Section 1, Chapter 244, O.S.L. 2022 (74 O.S. Supp. 2022,
212153 Section 840-2.17), is amended to read as follows:
213154 Section 840-2.17 A. Unless otherwise provided by the Oklahoma
214155 Constitution, statutory authority to set o r fix compensation, pay or
215156 salary of state officers a nd employees shall not be construed to
216157 authorize any agency, board, commission, department, institution,
217158 bureau, executive officer or other entity of the executive br anch of
218159 state government to award, gr ant, give, authorize, or promise any
219160 officer or employee of the State of Oklahoma a raise that is
220161 inconsistent with the compensation schedules established by the
221162 Office of Management and Enterprise Services for all stat e officers
222163 and employees in the execu tive branch pursuant to Section 840-4.6 of
223164 this title, including, but not limited to, a cost-of-living raise or
224165 any other type of raise that would be given to state e mployees on an
225166 across-the-board basis, except as here in provided. Such raises are
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252194 prohibited unless authorized by the Legislature and b y rules
253195 promulgated by the Director of the Office of Management and
254196 Enterprise Services. This prohibition applies to al l officers and
255197 employees in the executive branch of state government, excludin g
256198 institutions under the administrative authority of the Oklahoma
257199 State Regents for Higher Education.
258200 B. However, nothing in this section shall be construed to
259201 prohibit the following actions if the action is made in good faith
260202 and not for the purpose of c ircumventing subsection A of this
261203 section, and if the appointing auth ority certifies that the action
262204 can be implemented for the current fiscal year and the subsequent
263205 fiscal year without the need for additional funding to increase the
264206 personal services bud get of the agency, and if the Office of
265207 Management and Enterprise Ser vices certifies that the action is
266208 consistent with the compensation schedules established pursuan t to
267209 the provisions of Section 840-4.6 of this title:
268210 1. Salary advancements on promotio n to a job family level or
269211 class with a higher salary band;
270212 2. Salary adjustments resulting from a pay band change for a
271213 job family level or class adopted by the Office of Mana gement and
272214 Enterprise Services;
273215 3. Increases in longevity payments pursuant to Section 840 -2.18
274216 of this title;
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301244 4. Payment of overtime, special entrance rates , pay
302245 differentials;
303246 5. Payment of wages, salaries, or rates of pay established and
304247 mandated by law;
305248 6. Market adjustments for job family levels tie d to market
306249 competitiveness;
307250 7. Intra-agency lateral transfers, prov ided that the adjustment
308251 does not exceed five percent (5%) and the adjustment is based on the
309252 needs of the agency;
310253 8. Skill-based adjustments. Such adjustments, which are
311254 implemented before November 1, 2006, other than lump -sum payments,
312255 shall become permanent after twenty-four (24) months from the date
313256 such salary adjustment is implemented and may not later be removed
314257 from an employee's base salary if a furlough or reduction-in-force
315258 is implemented by the appoin ting authority granting such salary
316259 adjustment. Skill-based pay adjustments, wh ich are implemented on
317260 or after November 1, 2006, and which are paid to an employee, shall
318261 be paid as long as the employee remains employed in the pos ition and
319262 performs the skills for whic h the differential is due, but shall not
320263 be included as a part of th e employee's base salary;
321264 9. Equity-based adjustments;
322265 10. Performance-based adjustments for em ployees who received at
323266 least a "meets standards" rating on their most current performanc e
324267 rating;
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351295 11. Career progression increases as an employee advances
352296 through job family levels; or
353297 12. Salary adjustments not to exceed five percent (5%) for
354298 probationary employees achieving permanent status following the
355299 initial probationary period and permanent employees successfully
356300 completing trial periods after i ntra-agency lateral transfer or
357301 promotion to a different job family level or following car eer
358302 progression to a different job family level.
359303 C. The pay movement mechanisms described in paragraphs 6
360304 through 11 in of subsection B of this section shall be implemented
361305 pursuant to rules promulgated by the Director of the Office of
362306 Management and Enterprise Services.
363307 D. Appointing authorities may implement the pay movement
364308 mechanisms in paragraphs 6 through 12 in of subsection B of this
365309 section subject to the availabili ty of funds within the agency's
366310 budget for the current fiscal year and subsequent fiscal ye ar
367311 without the need for additional funding to increase the personal
368312 services budget of the agency . Failure by the appointing authority
369313 to follow the provisions of t his subsection may cause the withdrawal
370314 of the use of the pay movement mechanisms provided in paragraphs 6,
371315 7, 9, 10 and 11 of subsection B of this section within the agency
372316 during the next appropriations cycle.
373317 E. The provisions in of subsection B of this section shall not
374318 apply to chief executive officers of any agency, board, commission,
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401346 department or program except for paragraphs 3 and 5 of subsection B
402347 of this section.
403348 F. The Office of Management and Enterprise Services shall file
404349 a quarterly report with the Offices of the Governor, Speaker of the
405350 Oklahoma House of Representatives, and President Pro Tempore of the
406351 Oklahoma State Senate listing, by agency, all increases in wages,
407352 salaries or rates of pay and any changes to ti tle or classification
408353 of each employee.
409354 SECTION 3. This act shall become effective November 1, 2023.
410-Passed the House of Representatives the 20th day of March, 2023.
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355+COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS
356+April 12, 2023 - DO PASS