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SENATE FLOOR VERSION
April 8, 2025
AS AMENDED
ENGROSSED HOUSE
BILL NO. 1138 By: Ford and Moore of the House
and
Frix of the Senate
An Act relating to law enforcement; amending 62 O.S.
2021, Section 34.301, as last amended by Section 1,
Chapter 134, O.S.L. 2023 (62 O.S. Supp. 2024, Section
34.301), which relates to the Civil Service and Human
Capital Modernization Act; modifying duties of the
Human Capital Management Division and the Civil
Service Division of the Office of Management and
Enterprise Services; requiring establishment of
certain rules; making certain exception; broadening
scope of certain review; authorizing certain hearin g;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 62 O.S. 2021, Section 34.301, as
last amended by Section 1, Chapter 134, O.S.L. 2023 (62 O.S. Supp.
2024, Section 34.301), is amended to read as follows:
Section 34.301. A. This act shall be known and may be cited as
the "Civil Service and Human Capital Modernization Act ".
B. The Human Capital Management Division and the Civil Service
Division of the Office of Management and Enterprise Services sha ll:
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1. Establish and maintain a State Employee Dispute Resolution
Program, which may include mediation, to provide dispute resolution
services for state agencies and state employees. Actions agreed to
through the State Employee Dispute Resolution Program shall be
consistent with applicable laws and rules and shall not alter,
reduce or modify any existing right or authority as provided by
statute or rule;
2. Establish rules pursuant to the Administrative Procedures
Act as may be necessary to perform the d uties and functions of this
act, including creating an Office of Veterans Plac ement to offer
counseling, assessment and assistance to veterans seeking state
employment;
3. Receive and only act on complaints by state employees
arising from disciplinary action;
4. Use administrative law judges as independent contractors or
administrative law judges provided by the Office of the Attorney
General to exercise the provisions of this act;
5. Submit quarterly reports on workload statistics to the
Governor, the Speaker of the Oklahoma House of Representatives and
the President Pro Tempore of the Oklahoma State Senate containing
the following information:
a. the number of cases, complaints and requests for
hearings filed, disposed of and pending with the
Divisions for each month of the quarter, and
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b. a numerical breakdown of the methods of disposition of
such cases, complaints and requests for hearing.
Quarterly reports shall be submitted within thirty (30) days
following the last day of the month of the appropriat e quarter; and
6. Create a confidential whistleblower program and serve as th e
chief administrator of such program whereby a state employee may
confidentially report claims of agency or employee mismanagement as
well as criminal misuse of state funds or property. Mismanagement
includes fraudulent activity or abuse or violation of a well-
established, articulated, clear, and compelling public policy. The
Office of the Attorney General shall have the authority to
investigate and determine whether to prosecu te such whistleblower
claims. The Attorney General shall also have the power to refer
such claims to the appropriate district attorney ; and
7. Receive and act upon complaints from disciplinary action and
grievances filed by state employees employed to perform duties as
outlined in paragraph 6 of subsection E of Section 3311 of Title 70
and Section 2-105 of Title 47 of the Oklahoma Statutes and to
establish rules pursuant to the Administrative Procedures Act as may
be necessary to carry out this objective and the right to be heard .
C. Complaints shall be filed with the Civil Servic e Division
within ten (10) business days of the date of when such action
occurred and hearings shall take place within thirty (30) business
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days from the filing of the complaint , with the exception of actions
filed pursuant to paragraph 7 of subsection B o f this section.
D. Employees filing a complaint with the Civil Service Division
shall prove that there was no reasonable basis for the disciplinary
action by the state agency. The review of the merits of the
complaint shall may be limited to the employee disciplinary file
directly at issue. In the event documents needed are not maintained
in the disciplinary file, or additional witnesses are requested by
the parties, the administrative law judge shall have the discretion
to allow additional documentation or witnesses regarding the
disciplinary action taken. Complaints relating to punitive
transfers shall be administrated through mediation first and shall
only proceed to a heari ng if mediation is unsuccessful. Employees
who were offered a relocation ince ntive as set forth in
administrative rule shall not be deemed as being subject to a
punitive transfer. Complaints relating to written reprimands shall
be administered through mediation exclusively , and state employees
employed to perform duties as outline d in paragraph 6 of subsection
E of Section 3311 of Title 70 and Section 2-105 of Title 47 of the
Oklahoma Statutes shall be permitted to proceed to a hearing if
mediation is unsuccessful. Mediation may also be available for
other disciplinary actions.
E. Claimants shall be permitted to secure and utilize
representation during the adverse action process.
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F. The presiding officer of any proceeding before the Civil
Service Division may require payment of reasonable attorney fees and
costs to the prevailing party if the position of the nonprevailing
party was without reasonable basis or was frivolous.
G. For purposes of this section, "disciplinary actions " means
termination, suspension without pay, involuntary demotion, punitive
transfers or written reprima nd.
H. Nothing in this section shall apply to:
1. Persons employed by the Governor, Lieutenant Governor,
Oklahoma House of Representatives, Oklahoma State Senate,
Legislative Service Bureau, or the Legislative Office of Fiscal
Transparency;
2. Elected officials;
3. Political appointees;
4. District attorneys, assistant district attorneys or other
employees of the district attorney 's office, and the District
Attorneys Council;
5. The state judiciary or persons employed by the state
judiciary;
6. Not more than five percent (5%) of an agency 's employees
designated as executive management as determined by the agency
director and the agency shall designate the status of the employee
as state employee or executive management in the State of Oklahoma 's
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Human Resources Information System, maintained by the Human Capital
Management Division;
7. Temporary employees employed to work less than one thousand
(1,000) hours in any twelve -month period;
8. Seasonal employees employed to work less than one thousand
six hundred (1,600) hours in any twelve -month period;
9. Employees in a trial period; or
10. State employees whose employment status is otherwise
provided by law.
I. Except as provided by subsection H of this section,
effective January 1, 2022, all state e mployee positions shall be
administered by the Human Capital Management Division of the Office
of Management and Enterprise Services, without reference to prior
classified or unclassified status.
J. In collaboration with executive branch agencies, and the ir
human resources personnel, the Human Capital Management
Administrator shall establish and define statewide minimum standards
for human resource business processes, based on industry standards
and statewide best practices, to be followed by all executive branch
agencies. The Human Capital Management Administrator has the
authority to grant exceptions to the statewide minimum standards.
Additionally, the Human Capital Managemen t Administrator shall
establish and maintain a statewide job catalog and pay s tructure for
executive branch jobs and establish policies and procedures for a
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market-based pay system, pay -for-performance system, and dispute
resolution process for issues that do not rise to a disciplinary
action as provided by the Civil Service and Hum an Capital
Modernization Act. The Human Capital Management Administrator shall
promulgate rules necessary to carry out the authority set forth in
this section.
K. The Civil Service Division is authorized to employ attorneys
or contract with private attor neys to serve as legal counsel to the
Civil Service Division. The attorneys shall be authorized to appear
for and represent the Civil Service Division in all litigation that
may arise from the discharge of its duties, including the
representation of the C ivil Service Division when its decisions are
appealed to higher courts. Attorneys employed by the Office of
Management and Enterprise Services to represent the Civil Service
Division shall represent the Civil Service Division notwithstanding
its representation of the Office of Management and Enterprise
Services in the same or related matters pending before the Civil
Service Division or before any court. The Office of Management and
Enterprise Services shall establish internal administrative
procedures to ensure that all departments within the Office of
Management and Enterprise Services are provided independent legal
representation, and such simultaneous representation shall not, of
itself, be deemed to constitute a conflict of interest.
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L. The Civil Service Division shall be exempt from the
requirements set forth in Section 20i of Title 74 of the Oklahoma
Statutes when carrying out the duties and functions of this act.
SECTION 2. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND GOVERNMENT
RESOURCES
April 8, 2025 - DO PASS AS AMENDED