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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 302 By: Thompson (Roger)
AS INTRODUCED
An Act relating to executive state agency payroll
systems; requiring convers ion to certain type of
payroll system by certain date; requiring the
Director of the Office of Management and Enterprise
Services to make certain de termination; amending 62
O.S. 2021, Section 34.69, which relates to the
creation of payroll fund; clarifying statutory
language; creating revolving fund; provi ding purpose;
providing for reversion of fund balance to the
General Revenue Fund; deleting refer ence; modifying
definitions; providing deadline for system
conversion; deleting certain procedures; directin g
the Office of Management and Enterprise Services to
establish implementation schedule; amending 40 O.S.
2021, Section 165.2, as a mended by Section 2, Chapter
156, O.S.L. 2022 (40 O.S. Supp. 2022, Section 165.2),
which relates to payment of wages on regul ar paydays;
providing exception; providing for codi fication;
providing an effective date; and declaring an
emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be co dified
in the Oklahoma Statutes as Section 34.67a of Title 62, unless there
is created a duplication in numb ering, reads as follows:
No later than July 31, 2028, every executive state agency, as
defined in Section 34.69 of Title 62 of the Oklahoma Statutes , shall
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convert to a payroll system that provides p ayment to employees every
two weeks. The Director of the Office of Management and Enterprise
Services shall determine the order and timeline by which executive
state agencies shall transition to this sche dule.
SECTION 2. AMENDATORY 62 O.S. 2021, Section 34.69, is
amended to read as follows:
Section 34.69. A. There is hereby created in the State
Treasury a Payroll Fund whic h shall be used by the Director of the
Office of Management and Enterprise Services and the State Trea surer
to issue a consolidated payroll for each executive state agency of
the state. Payrolls of executive state agencies shall be charged
against the Payroll Fund created herein. Each executive state
agency shall prepare summary distributions of the amounts of
payrolls to be charged agains t each fund within the State Treasury
and the Director shall transfer monies from each fund in the State
Treasury to the Payroll Fund amounts as shown on payroll
distribution summaries, and shall charge such amounts to the acc ount
affected thereby.
B. There is hereby created in the Sta te Treasury a revolving
fund for the Office of Management and Enterprise Services to be
designated the “Payroll System Transition Revolving Fund ”. The fund
shall be a continuing fund, not subjec t to fiscal year limitations,
and shall consist of all moni es received by the Office of Management
and Enterprise Services from appropriations made by t he Legislature
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and other sources as may be designated by law. All monies accruing
to the credit of the fund are hereby appropriated and may be
budgeted and expended by the Office of Management and Enterprise
Services for the purpose of paying the costs of executive state
agencies transitioning to a payroll system that pays employees every
two weeks. The Office of Management and Enterprise Services shall
be responsible for the scheduling and disbursement of funds needed
to pay the agency transition costs. Any balance remaining in this
fund on July 31, 2028 shall revert to the General Revenue Fund.
Expenditures from the fund shall be made upon warrants issued by th e
State Treasurer against claims filed as prescribed by law with the
Director of the Office of Management and Enterprise Services for
approval and payment.
B. C. As of July 1, 2010, the Office of Management and
Enterprise Services shall make available and each executive state
agency shall make available to all state employees a centralized
web-based system to access their personal employment and
compensation-related information. The provisions of this subsection
as it pertains to executive agencies may be waived by the Director
of the Office of Management and Enterprise Services in the event
that lack of timely access prevents employees from utiliz ing the
centralized system. As used in subsections B, C and D of this
section, “executive state agency ” shall mean any state agency,
authority, board, commission or other entity organized within the
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executive department of state government. Executive sta te agency
shall not mean any government entity orga nized or created within the
legislative or judicial departments of state government , or
institutions within The Oklahoma State System for Higher Education .
C. D. Except for institutions within The Oklahom a State System
for Higher Education, executive stat e agencies converting to a
multi-monthly payroll system that provides payment to employees
every two weeks shall consult with the Office of Management and
Enterprise Services on the timing of the agency ’s conversion. The
system conversion shall be impleme nted no later than July 31, 2028.
1. All state employees hired during the six (6) months prior to
an executive state agency ’s conversion to a multi -monthly payroll
shall be placed on either the biweekly p ayroll system or
supplemental payroll upon the date of hire.
2. In the six (6) months prior to an executive state agency ’s
conversion to multi-monthly payroll, the executive state agency
shall offer either mu lti-monthly or supplemental payroll to any
employee who chooses to participate. The provisions of this
paragraph shall not apply to employees placed on the multi -monthly
payroll pursuant to paragraph 1 of this subsection.
D. Six (6) months prior to an ex ecutive state agency converting
to the multi-monthly payroll system, it shall create employee
payroll conversion banks for the purpose of providing a one -time
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payroll payment to an employee for the gap in payroll payments
created by the conversion to the m ulti-monthly system.
1. Each executive state a gency shall allow its employees to
accumulate funds up to a maximum of eighty (80) hours for the
conversion bank from the following sources:
a. earned compensatory time, if the agency normally
provides its employees compensatory time,
b. earned annual leave,
c. earned sick leave up to a maximum of forty (4 0) hours,
and
d. shared leave as approved by the appointing authority.
2. During the six-month period leading up to an executive state
agency’s conversion to the multi-monthly payroll system, all
executive state agencies shall inform, in writing or by ele ctronic
means, all their employees of their leave and compensatory time
balances on a monthly basis.
E. The Office of Management and Enterprise Services shal l
establish procedures and a full implementation schedule concerning
the conversion.
SECTION 3. AMENDATORY 40 O.S. 2021, Section 165.2, as
amended by Section 2, Chapter 156, O.S.L. 2022 (40 O.S. Supp. 2022,
Section 165.2), is amende d to read as follows:
Section 165.2. Every employer in this state shall pa y all wages
due their employees, other than exempt employees and employees of
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nonprivate foundations qualified purs uant to 26 U.S.C. 509(a)(1) and
26 U.S.C. 170(b)(1)(A)(vi), at leas t twice each calendar month on
regular paydays designated in advance by th e employer. Except as
provided in Section 1 of this act , State state, county and municipal
employees, exempt employees, school district employees, technology
center school district employees and employees of nonprivate
foundations qualified pursuant to 26 U.S.C. 509(a)(1) and 26 U.S.C.
170(b)(1)(A)(vi) shall be paid a minimum of once each calendar
month. The amount due such employees shall be paid in lawful money
of the United States including payment by electronic means, and the
employee shall not be deemed to have waived an y right or rights
mentioned in this section because of any contract to the contrary.
Each employer in this state, in its discretion, may pay al l wages
due to an employee by deposit on the payday at a financial
institution of the employee ’s choice or, if the employee does not
consent or designate a financial institution, to a payroll card
account. With each payment of wages earned by such employee, the
employer shall issue to such employee a brief itemized statement of
any and all deductions therefrom. An interval of not more than
eleven (11) days may elapse between the end of the pay period worked
and the regular payday designated by the employer. The em ployer
shall be allowed three (3) days after such p ayday in which to comply
with this section.
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No such employer shall issue, in pay ment of or as evidence of
indebtedness due an employee any check, cashier’s check, draft, time
check, store order, scrip, or other acknowledgment of indebtedness
unless the same is payable or redeemabl e upon demand without
discount and for face value in la wful money of the United States.
If an employer pays an employee with a check which is subsequently
returned to the employee or an agent thereof by reason of the
refusal of the bank upon which such ch eck was drawn to honor the
same due to insufficient fun ds or a stop payment notice, the
employer shall reimburse the employee for any fees or costs incurred
by the employee due to the refusal to honor the check within
fourteen (14) days of the employer’s notice of the bank’s refusal to
honor the check.
SECTION 4. This act shall become effective July 1, 2023.
SECTION 5. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage and approval.
59-1-754 KR 1/12/2023 4:26:57 PM