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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 302 By: Thompson (Roger)
COMMITTEE SUBSTITUTE
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; deleting reference; modifying definitions;
providing deadline for system conversi on; deleting
certain procedures; directin g the Office of
Management and Enterprise Services to establish
implementation sched ule; amending 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),
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 TH E 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 foll ows:
No later than July 31, 202 5, 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 Managemen t 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. 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 co mpensation-related
information. The provisions of this subsection as it pertains to
executive agencies may be waived by the Director of the Office of
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Management and Enterprise Services in the event that la ck 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 execut ive department of state
government. Executive sta te agency shall not mean any government
entity organized or created within the legislative or judicial
departments of state government , or institutions within The Oklahoma
State System for Higher Education .
C. 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 En terprise
Services on the timing of the agency ’s conversion. The system
conversion shall be impleme nted no later than July 31, 2025.
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 participa te. The provisions of this
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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 shal l create employee
payroll conversion banks for the purpose of providing a one -time
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 employe es 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. D. The Office of Management and Enterprise Services shal l
establish procedures and a full implementation schedule concerning
the conversion.
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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 pay all wages
due their employees, other than exempt employees and employees of
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 the 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 t o 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 e mployee’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
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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.
No such employer shall issue, in payment 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 lawful 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 funds 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 this act shall take effect and
be in full force from and after its passage and approval.
59-1-1930 KR 3/1/2023 5:10:25 PM