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ENGROSSED HOUSE AMENDME NT
TO
ENGROSSED SENATE BILL NO . 302 By: Thompson (Roger) of the
Senate
and
Osburn of the House
[ payroll systems - conversion - payroll fund -
deadline - implementation sched ule - payment of wages
- exception - codification - effective date -
emergency ]
AMENDMENT NO. 1. Page 1, Line 11, strike the enacting clause
Passed the House of Representatives the 27th day of April, 2023.
Presiding Officer of the House of
Representatives
Passed the Senate the ____ day of __________, 2023.
Presiding Officer of the Senate
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ENGROSSED SENATE
BILL NO. 302 By: Thompson (Roger) of the
Senate
and
Osburn of the House
[ payroll systems - conversion - payroll fund -
deadline - implementation sched ule - payment of wages
- exception - codification - effective date -
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 numbering, reads as follows:
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
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
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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 a nd 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 la ck of timely
access prevents employees from u tilizing 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. Executiv e state agency shall not mean any government
entity organized or created within the legislative or judicial
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departments of state government , or institutions within The Oklahoma
State System for Higher Education .
C. Except for institutions within The Oklah oma State System for
Higher Education, executive state 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 implemented 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 payroll 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
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.
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1. Each executive state agency 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 (40) 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 electronic
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.
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
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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 any 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 ite mized 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 s uch payday 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
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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, hea lth 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.
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Passed the Senate the 8th day of March, 2023.
Presiding Officer of the Senate
Passed the House of Representatives the ____ day of _ _________,
2023.
Presiding Officer of the House
of Representatives