Oklahoma 2025 Regular Session

Oklahoma House Bill HB2288 Compare Versions

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11 RBH No. 13294
2-ENGR. H. B. NO. 2288 Page 1 1
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27-ENGROSSED HOUSE
28-BILL NO. 2288 By: Hilbert, Hays, Boles,
29-Pittman, and Archer of the
30-House
28+HOUSE OF REPRESENTATIVES - FLOOR VERSION
29+
30+STATE OF OKLAHOMA
31+
32+1st Session of the 60th Legislature (2025)
33+
34+COMMITTEE SUBSTITUTE
35+FOR
36+HOUSE BILL NO. 2288 By: Hilbert, Hays, Boles, and
37+Pittman of the House
3138
3239 and
3340
3441 Frix of the Senate
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47+
48+COMMITTEE SUBSTITUTE
4049
4150 An Act relating to the Teachers' Retirement System of
4251 Oklahoma; amending 62 O.S. 2021, Section 3103, as
4352 last amended by Section 127, Chapter 452, O.S.L. 2024
4453 (62 O.S. Supp. 2024, Section 3103), which relates to
4554 the Oklahoma Pension Actuarial Analysis Act;
4655 modifying definitions; amending 70 O.S. 2021, Section
4756 17-116.10, as amended by Section 9, Chapter 300,
4857 O.S.L. 2024 (70 O.S. Supp. 2024, Section 17 -116.10),
4958 which relates to postretirement employment; modifying
5059 provisions related to earning limitations; providing
5160 that a retired member may receive earnings without a
5261 reduction in retirement benefits; providing effective
5362 dates; providing for contingent effective dates based
5463 on outcome of approval of the em ergency clause; and
5564 declaring an emergency.
5665
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61-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
62-SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as
63-last amended by Section 127, Chapter 452, O.S.L. 2024 (62 O.S. Supp.
64-2024, Section 3103), is amended to read as follows:
65-Section 3103. As used in the Oklahoma Pension Legislation
66-Actuarial Analysis Act: RBH No. 13294
67-ENGR. H. B. NO. 2288 Page 2 1
70+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: RBH No. 13294
71+HB2288 HFLR Page 2
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97+SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as
98+last amended by Section 127, Chapter 452, O.S.L. 2024 (62 O.S. Supp .
99+2024, Section 3103), is amended to read as follows:
100+Section 3103. As used in the Oklahoma Pension Legislation
101+Actuarial Analysis Act:
92102 1. "Amendment" means any amendment including a substitute bill,
93103 made to a retirement bill by any committee of the Hous e or Senate,
94104 any conference committee of the House or Senate or by the House or
95105 Senate;
96106 2. "RB number" means that number preceded by the letters "RB"
97107 assigned to a retirement bill by the respective staffs of the
98108 Oklahoma State Senate and the Oklahoma Hous e of Representatives when
99109 the respective staff office prepares a retirement bill for a member
100110 of the Legislature;
101111 3. "Legislative Actuary" means the firm or entity that enters
102112 into a contract with the Legislative Service Bureau pursuant to
103113 Section 452.15 of Title 74 of the Oklahoma Statutes to provide the
104114 actuarial services and other duties provided for in the Oklahoma
105115 Pension Legislation Actuarial Analysis Act;
106116 4. "Nonfiscal amendment" means an amendment to a retirement
107117 bill having a fiscal impact, which amendment does not change any
108118 factor of an actuarial investigation specified in subsection A of
109119 Section 3109 of this title;
110-5. "Nonfiscal retirement bill" means a retirement bill:
111-a. which does not affect the cost or funding factors of a
112-retirement system,
113-b. which affects such factors only in a manner which does
114-not: RBH No. 13294
115-ENGR. H. B. NO. 2288 Page 3 1
120+5. "Nonfiscal retirement bill" means a retirement bill: RBH No. 13294
121+HB2288 HFLR Page 3
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147+a. which does not affect the cost or funding factors of a
148+retirement system,
149+b. which affects such factors only in a manner which does
150+not:
140151 (1) grant a benefit increase under the retirement
141152 system affected by the bill,
142153 (2) create an actuarial accrued liability for or
143154 increase the actuarial accrued liability of the
144155 retirement system affected by the bill, or
145156 (3) increase the normal cost of the retirement system
146157 affected by the bill,
147158 c. which authorizes the purchase by an active member of
148159 the retirement system, at the actuarial cost for the
149160 purchase as computed pursuant to the statu te in effect
150161 on the effective date of the measure allowing such
151162 purchase, of years of service for purposes of reaching
152163 a normal retirement date in the applicable retirement
153164 system, but which cannot be used in order to compute
154165 the number of years of service for purposes of
155166 computing the retirement benefit for the member,
156167 d. which provides for the computation of a service -
157168 connected disability retirement benefit for members of
158169 the Oklahoma Law Enforcement Retirement System
159-pursuant to Section 2 -305 of Title 47 of the Oklahoma
160-Statutes if the members were unab le to complete twenty
161-(20) years of service as a result of the disability,
162-e. which requires membership in the defined benefit plan
163-authorized by Section 901 et seq. of Title 74 of the RBH No. 13294
164-ENGR. H. B. NO. 2288 Page 4 1
170+pursuant to Section 2 -305 of Title 47 of the Oklahoma RBH No. 13294
171+HB2288 HFLR Page 4
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197+Statutes if the members were unable to complete twenty
198+(20) years of service as a result of the disability,
199+e. which requires membership in the defined benefit plan
200+authorized by Section 901 et seq. of Title 74 of the
189201 Oklahoma Statutes for persons whose first elected or
190202 appointed service occurs on or after November 1, 2018,
191203 if such persons had any prior service in the Oklahoma
192204 Public Employees Retirement System prior to November
193205 1, 2015,
194206 f. which provides for a one -time increase in retireme nt
195207 benefits if the increase in retirement benefits is not
196208 a permanent increase in the gross annual retirement
197209 benefit payable to a member or beneficiary, occurs
198210 only once pursuant to a single statutory authorization
199211 and does not exceed:
200212 (1) the lesser of two percent (2%) of the gross
201213 annual retirement benefit of the member or One
202214 Thousand Dollars ($1,000.00) and requires that
203215 the benefit may only be provided if the funded
204216 ratio of the affected retirement system would not
205217 be less than sixty percent (60%) but not greater
206218 than eighty percent (80%) after the benefit
207-increase is paid,
208-(2) the lesser of two percent (2%) of the gross
209-annual retirement benefit of the member or One
210-Thousand Two Hundred Do llars ($1,200.00) and
211-requires that the benefit may only be provided if
212-the funded ratio of the affected retirement RBH No. 13294
213-ENGR. H. B. NO. 2288 Page 5 1
219+increase is paid, RBH No. 13294
220+HB2288 HFLR Page 5
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246+(2) the lesser of two percent (2%) of the gross
247+annual retirement benefit of the member or One
248+Thousand Two Hundred Dollars ($1,200.00) and
249+requires that the benefit may only be pro vided if
250+the funded ratio of the affected retirement
238251 system would be greater than eighty percent (80%)
239252 but not greater than one hundred percent (100%)
240253 after the benefit increase is paid,
241254 (3) the lesser of two percent (2%) of the gross
242255 annual retirement ben efit of the member or One
243256 Thousand Four Hundred Dollars ($1,400.00) and
244257 requires that the benefit may only be provided if
245258 the funded ratio of the affected retirement
246259 system would be greater than one hundred percent
247260 (100%) after the benefit increase is paid , or
248261 (4) the greater of two percent (2%) of the gross
249262 annual retirement benefit of the volunteer
250263 firefighter or One Hundred Dollars ($100.00) for
251264 persons who retired from the Oklahoma
252265 Firefighters Pension and Retirement System as
253266 volunteer firefighters and who did not retire
254267 from the Oklahoma Firefighters Pension and
255-Retirement System as a paid firefighter.
256-As used in this subparagraph, "funded ratio" means the
257-figure derived by dividing the act uarial value of
258-assets of the applicable retirement system by the
259-actuarial accrued liability of the applicable
260-retirement system, RBH No. 13294
261-ENGR. H. B. NO. 2288 Page 6 1
268+Retirement System as a paid firefighter. RBH No. 13294
269+HB2288 HFLR Page 6
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295+As used in this subparagraph, "funded ratio" means the
296+figure derived by dividing the actuarial value of
297+assets of the applicable retirement system by t he
298+actuarial accrued liability of the applicable
299+retirement system,
286300 g. which modifies the disability pension standard for
287301 police officers who are members of the Oklahoma Police
288302 Pension and Retirement System as provided by Section
289303 50-115 of Title 11 of the Oklahoma Statutes,
290304 h. which provides a cost -of-living benefit increase
291305 pursuant to the provisions of:
292306 (1) Section 49-143.7 of Title 11 of the Oklahoma
293307 Statutes,
294308 (2) Section 50-136.9 of Title 11 of the Oklahoma
295309 Statutes,
296310 (3) Section 1104K of Title 20 of the Oklahoma
297311 Statutes,
298312 (4) Section 2-305.12 of Title 47 of the Oklahoma
299313 Statutes,
300314 (5) Section 17-116.22 of Title 70 of the Oklahoma
301315 Statutes, or
302316 (6) Section 930.11 of Title 74 of the Oklahoma
303-Statutes,
304-i. which provides for the reinstatement of retirement
305-benefits for members of the Oklahoma Law Enforcement
306-Retirement System pursuant to Section 2 -305 of Title
307-47 of the Oklahoma Statutes for those who were hired
308-on or after November 1, 2012, or May 24, 2013, RBH No. 13294
309-ENGR. H. B. NO. 2288 Page 7 1
317+Statutes, RBH No. 13294
318+HB2288 HFLR Page 7
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344+i. which provides for the reinstatement of retirement
345+benefits for members of the Oklahoma Law Enforcement
346+Retirement System pursuant to Section 2 -305 of Title
347+47 of the Oklahoma Statutes for those who were hired
348+on or after November 1, 2012, or May 24, 2013,
334349 j. which authorizes the purchase of military service
335350 credit as provided in Section 50 -128 of Title 11,
336351 Section 1102.2 of Title 20, Section 2 -307.4 of Title
337352 47, and Section 913.8 of Title 74 of the Oklahoma
338353 Statutes,
339354 k. which restores benefits pursuant to Sections 49 -100.1,
340355 49-101, 49-101.2, 49-106.1, 49-108, 49-117.1, and 49-
341356 135 of Title 11 of the Oklahoma Statutes,
342357 l. which modifies the computation of the line -of-duty
343358 disability benefit pursuant to the provisions of this
344359 act Sections 50-101 and 50-115 of Title 11 of the
345360 Oklahoma Statutes; and
346361 m. which modifies postretirement earning limitations
347362 pursuant to the provisions of this act .
348363 A nonfiscal retirement bill shall include any retirement bill that
349364 has as its sole purpose the appropriation or distribution or
350365 redistribution of monies in some manner to a retir ement system for
351366 purposes of reducing the unfunded liability of such system or the
352-earmarking of a portion of the revenue from a tax to a retirement
353-system or increasing the percentage of the r evenue earmarked from a
354-tax to a retirement system;
355-6. "Reduction-in-cost amendment" means an amendment to a
356-retirement bill having a fiscal impact which reduces the cost of the RBH No. 13294
357-ENGR. H. B. NO. 2288 Page 8 1
367+earmarking of a portion of the revenue from a tax to a retirement RBH No. 13294
368+HB2288 HFLR Page 8
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394+system or increasing the percentage of the revenue earmarked from a
395+tax to a retirement system;
396+6. "Reduction-in-cost amendment" means an amendment to a
397+retirement bill having a fiscal impact which reduces the cost of the
382398 bill as such cost is determined by the actuarial investigation for
383399 the bill prepared pursuant to Section 3109 of this title;
384400 7. "Retirement bill" means any bill or joint resolution
385401 introduced or any bill or joint resolution amended by a member of
386402 the Oklahoma Legislature which creates or amends any law directly
387403 affecting a retirement system. A retirement bill shall not mean a
388404 bill or resolution that impacts the revenue of any state tax in
389405 which a portion of the revenue generated from such tax is earmarked
390406 for the benefit of a retirement system;
391407 8. "Retirement bill having a fiscal impact" means any
392408 retirement bill creating or establishing a r etirement system and any
393409 other retirement bill other than a nonfiscal retirement bill; and
394410 9. "Retirement system" means the Teachers' Retirement System of
395411 Oklahoma, the Oklahoma Public Employees Retirement System, the
396412 Uniform Retirement System for Justice s and Judges, the Oklahoma
397413 Firefighters Pension and Retirement System, the Oklahoma Police
398414 Pension and Retirement System, the Oklahoma Law Enforcement
399415 Retirement System, or a retirement system established after January
400-1, 2006.
401-SECTION 2. AMENDATORY 70 O.S. 2021, Section 17 -116.10,
402-as amended by Section 9, Chapter 300, O.S.L. 2024 (70 O.S. Supp.
403-2024, Section 17-116.10), is amended to read as follows:
404-Section 17-116.10. A. Subject to the requirements of Section
405-6-101.2 of this title and any other applicable requirements of law, RBH No. 13294
406-ENGR. H. B. NO. 2288 Page 9 1
416+1, 2006. RBH No. 13294
417+HB2288 HFLR Page 9
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443+SECTION 2. AMENDATORY 70 O.S. 2021, Section 17 -116.10,
444+as amended by Section 9, Chapter 300, O.S.L. 2024 (70 O.S. Supp.
445+2024, Section 17-116.10), is amended to read as follows:
446+Section 17-116.10. A. Subject to the requirements of Section
447+6-101.2 of this title and any other applicable requirements of law,
431448 a member may enter into postretirement employment with a public
432449 school of Oklahoma and still receive monthly retirement benefits
433450 subject to the following limitations:
434451 1. A retired member is not eligible to be employed by the
435452 public schools of Oklahoma, in any capacity, for sixty (60) calendar
436453 days between the retiree's last day of preretirement public
437454 education employment and any postretirement public education
438455 employment. For purposes of this section, the term "last day of
439456 preretirement employment" shall mean the last day the employee is
440457 required to be physically present on the job to complete the terms
441458 of the employment contract or agreement or the member's effective
442459 retirement date, whichever is later. An employee on paid leave is
443460 still considered to be employed for purposes of this section.
444461 Employment under any conditions during this time, volunteer services
445462 for the purpose of obtaining a paid position at a later date, or
446463 payment at a later time for se rvices performed during this time
447464 period shall cause the forfeiture of all retirement benefits
448-received during the period;
449-2. For thirty-six (36) months following a member's effective
450-retirement date, the retired member shall be subject to earnings
451-limitations on allowable earnings. Earnings limits are determined
452-annually based on a calendar year. For retired members under the
453-age of sixty-two (62) years, allowed earnings from the public
454-schools of Oklahoma for employment for the performance of duties RBH No. 13294
455-ENGR. H. B. NO. 2288 Page 10 1
465+received during the period; RBH No. 13294
466+HB2288 HFLR Page 10
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492+2. For thirty-six (36) months following a member's effective
493+retirement date, the retired member shall be subject to earnings
494+limitations on allowable earnings. Earnings limits are determined
495+annually based on a calendar year. For retired members under the
496+age of sixty-two (62) years, allowed earnings from the public
497+schools of Oklahoma for employment for the performance of duties
480498 ordinarily performed by classified or nonclassified optional
481499 personnel shall be limited to one -half (1/2) of the member's final
482500 average salary used in computing retirement benefits or the earnings
483501 limit allowed by the Social Security Administration for those under
484502 Social Security's normal retirement age, whichever is less. For
485503 retired members sixty -two (62) years of age or older, allowed
486504 earnings from the public schools of Oklahoma for the performance of
487505 duties ordinarily performed by classified or nonclassi fied personnel
488506 shall be limited to Thirty Thousand Dollars ($30,000.00) or one -half
489507 (1/2) of the member's final average salary used in computing
490508 retirement benefits, whichever is less. For purposes of this
491509 paragraph, the following shall apply:
492510 a. earnings shall mean regular annual compensation as
493511 defined in paragraph 23 of Section 17 -101 of this
494512 title, and shall include any payment by a public
495513 school for services rendered by a retired member who
496514 is employed for any purpose whatsoever. Supplemental
497-retirement payments paid by a former public school
498-employer pursuant to subsection N of Section 17 -105 of
499-this title or other state law shall not be considered
500-as earnings,
501-b. the earnings limit for t he calendar year in which a
502-member retires shall be one -twelfth (1/12) of the
503-annual limit multiplied by the numb er of months the RBH No. 13294
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515+retirement payments paid by a former public school RBH No. 13294
516+HB2288 HFLR Page 11
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542+employer pursuant to subsection N of Section 17 -105 of
543+this title or other state law shall not be considered
544+as earnings,
545+b. the earnings limit for the calendar year in which a
546+member retires shall be one -twelfth (1/12) of the
547+annual limit multiplied by the number of months the
529548 member is eligible to work and receive payments from
530549 the public schools of Oklahoma, and
531550 c. earnings in excess of the maximum limit on allowed
532551 earnings from public schools of Oklahoma shall result
533552 in a loss of retirement benefits of One Dollar ($1.00)
534553 for each One Dollar ($1.00) earned over the maximum
535554 allowed earnings amount;
536555 3. Notwithstanding paragraph 2 of this subsection, for a period
537556 of three (3) years beginning July 1, 2017, members who have retired
538557 as of July 1, 2017, as active classroom teachers, who have been
539558 retired and receiving a benefit for at least one (1) year, and who
540559 have not been employed by any public school during that one -year
541560 period, shall be eligible to be reemployed as an active classroom
542561 teacher in common or career tech school districts, with no
543562 limitations on earnings. For a period of three (3) years beginning
544563 July 1, 2021, members who have retired as of July 1, 2020, who have
545564 been retired and receiving a benefit f or at least one (1) year, and
546-who have not been em ployed by any public school during that one -year
547-period, shall be eligible to be reemployed as an active classroom
548-teacher in common or career tech school districts, with no
549-limitations on earnings. The one -year period starts with the
550-retiree's last day of preretirement public education employment.
551-Members returning under this section shall not be subject to any
552-earnings limitations following t he end of the three-year periods RBH No. 13294
553-ENGR. H. B. NO. 2288 Page 12 1
565+who have not been employed by any public school during that one -year RBH No. 13294
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592+period, shall be eligible to be reemployed as an active classroom
593+teacher in common or career tech school districts, with no
594+limitations on earnings. The on e-year period starts with the
595+retiree's last day of preretirement public education employment.
596+Members returning under this section shall not be subject to any
597+earnings limitations following the end of the three -year periods
578598 described in this paragraph. Members returning under this section
579599 shall only be employed pursuant to a temporary contract A retired
580600 classified or nonclassified member who is employed by a public
581601 school to perform duties ordinarily performed by classified or
582602 nonclassified personnel sha ll be able to receive annualized earnings
583603 from the public school with no reduction in retirement benefits
584604 regardless of the amount of annualized earnings ; and
585605 4. 3. A member shall be considered to be employed by a school
586606 district to perform the duties ord inarily performed by classified or
587607 nonclassified optional personnel if the member is hired by the
588608 school district in the member's individual capacity to perform the
589609 duties or if the member performs the duties through employment with
590610 a proprietorship, partn ership, corporation, limited liability
591611 company or partnership, or any other business structure that has
592612 agreed or contracted to provide the services to the school district.
593613 B. A public school district that employs a retired member shall
594-be required to make contributions to the System for the retired
595-member in an amount as required in Section 17 -108.1 and in paragraph
596-3 of subsection B of Section 17 -116.2 of this title.
597-C. For purposes of this section, postretirement employment of
598-less than one thousand (1,000) hours per year with the Governor, the
599-Oklahoma State Senate, the Oklahoma House of Representatives or the
600-Legislative Service Bureau shall not be considered as postretirement
601-employment with a public school of Oklahoma. RBH No. 13294
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614+be required to make contributions to the System for the retired RBH No. 13294
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641+member in an amount as required in Section 17 -108.1 and in paragraph
642+3 of subsection B of Section 17 -116.2 of this title.
643+C. For purposes of this section, postretirement employment of
644+less than one thousand (1 ,000) hours per year with the Governor, the
645+Oklahoma State Senate, the Oklahoma House of Representatives or the
646+Legislative Service Bureau shall not be considered as postretirement
647+employment with a public school of Oklahoma.
627648 D. The Board of Trustees of t he Teachers' Retirement System of
628649 Oklahoma shall promulgate such rules as are necessary to implement
629650 the provisions of this section.
630651 E. A member who has entered into postretirement employment with
631652 a participating employer of the Teachers' Retirement Syste m of
632653 Oklahoma must fully comply with all the provisions of the rules
633654 promulgated by the Board of Trustees pursuant to this section in
634655 order to continue receiving the member's monthly retirement benefit.
635656 SECTION 3. If the emergency clause i s not approved pursuant to
636657 the requirements of the Oklahoma Constitution as part of this
637658 measure, the effective date of Section 1 of this act shall be
638659 October 1, 2025.
639660 SECTION 4. If the emergency clause is not approved pursuant to
640661 the requirements of the Oklahoma Constitution as part of this
641662 measure, the effective date of Section 2 of this act shall be
642-November 1, 2025.
643-SECTION 5. Except as otherwise provided by Section 3 of this
644-act, Section 1 of this act shall become effective immediately upon
645-signature by the Governor o r as otherwise provided by Section 58 of
646-Article V of the Oklahoma Constitution.
647-SECTION 6. Except as otherwise provided by Se ction 4 of this
648-act, Section 2 of this act shall become effective July 1, 2025.
649-SECTION 7. It being immediately necessary for the preservation
650-of the public peace, health or safety, an emergency is hereby RBH No. 13294
651-ENGR. H. B. NO. 2288 Page 14 1
663+November 1, 2025. RBH No. 13294
664+HB2288 HFLR Page 14
665+BOLD FACE denotes Committee Amendments. 1
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690+SECTION 5. Except as otherwise provided by Section 3 of this
691+act, Section 1 of this act shall become effe ctive immediately upon
692+signature by the Governor or as otherwise provided by Section 58 of
693+Article V of the Oklahoma Constitution.
694+SECTION 6. Except as otherwise provided by Section 4 of this
695+act, Section 2 of this act shall become effecti ve July 1, 2025.
696+SECTION 7. It being immediately necessary for the preservation
697+of the public peace, health or safety, an emergency is hereby
676698 declared to exist, by reason whereof this act shall take effect and
677699 be in full force from and aft er its passage and approval.
678-Passed the House of R epresentatives the 13th day of March, 2025.
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683- Presiding Officer of the House
684- of Representatives
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688-Passed the Senate the ____ day of __________, 2025.
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701+COMMITTEE REPORT BY: COMMITTEE ON GOVERNMENT OVERSIGHT, dated
702+03/10/2025 - DO PASS, As Amended and Coauthored.
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