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SENATE FLOOR VERSION
March 4, 2025
AS AMENDED
SENATE BILL NO. 254 By: Dossett
[ paid family and medical leave - third-party actuary
- report - collaboration - timeline for
implementation - actuary study - promulgation of
rules - codification - effective date ]
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 950 of Title 40, unless there is
created a duplication in numbering, rea ds as follows:
A. By January 1, 2027, the Department of Labor shall contract
for the services of a qualified third -party actuary to perform an
actuarial study for a paid family and medical leave insurance
program in this state including, but not limited t o, the startup
costs of the program, costs for the state to administer the program,
outreach and education costs, the premium contributions necessary to
maintain the solvency of the program for a period of five (5) to ten
(10) years, potential trends in cl aim experience over time, and
total annual revenues, expenditures , and reserves. The actuarial
study shall be completed and shared with the public no later than
thirty (30) days after the completion of the study. Through
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utilization of relevant data incl uding, but not limited to, other
state paid family and medical leave insurance programs, short -term
disability claims, family and medical leave data from the federal
government, and a review of the experience, structure, and policy
design of other state pa id family and medical leave programs, the
actuarial study shall consider the following program parameters as
they relate to the premiums necessary to maintain solvency:
1. The purposes for which paid family and medical leave can be
used including, but not limited to, bonding with a new child, caring
for a family member with a serious health condition, recovering from
a serious health condition, addressing medical and nonmedical needs
arising from domestic violence and sexual assault, and addressing
military family and caregiving needs related to a family member’s
deployment;
2. Coverage of all public, private , and nonprofit sector
employees in this state within the scope of the paid family and
medical leave insurance program ’s rights and protections includ ing,
but not limited to, a breakdown of requirement coverage of employees
of this state and employees of public subdivisions within this
state;
3. Coverage of self -employed workers, at the option of the
worker, within the scope of the paid family and medi cal leave
insurance program’s rights and protections;
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4. The eligibility standard for workers to qualify for paid
family and medical leave benefits including, but not limited to,
earnings requirements, minimum hours worked , other such earnings,
and work history metrics;
5. Utilization of an inclusive family definition to afford
workers the right to take paid family and medical leave to care for
immediate members of the family , regardless of legal or biological
relation;
6. Use of a social insurance model for the paid family and
medical leave insurance program wherein workers and employers share
the premium costs of the program including, but not limited to:
a. exempt the smallest employers from contributing to the
program while still including their emplo yees within
the scope of the program,
b. exempt self-employed workers who opt into the program
from contributing the employer portion of premium
costs to the program, and
c. limit premium contributions to wages not exceeding the
contribution and benefit ba se limit established
annually by the federal Social Security Administration
for purposes of the federal Old-Age, Survivors, and
Disability Insurance program limits pursuant to 42
U.S.C., Section 430;
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7. Utilization of a graduated wage replacement rate that
ensures that low-wage workers receive a higher wage replacement
level and can afford to take paid family and medical leave, as
compared to a flat rate of wage replacement;
8. Inclusion of an equitable maximum weekly benefit rate that
adjusts annually based on the statewide average weekly wage and
ensures that workers can afford to take paid family and medical
leave;
9. A maximum leave duration, not below twelve (12) weeks of
leave per year;
10. Inclusion of an unpaid waiting period during which workers
do not receive paid family and medical leave wage replacement
benefits not to exceed the first seven (7) calendar days of one ’s
leave, as compared to the lack of any such waiting period;
11. A right to reinstatement for all employees upon returning
from a period of paid family and medical leave, and its effect on
program usage; and
12. Based on information provided by this state and in
partnership with this state, the estimated administrative costs to
the state for implementing and administering the paid family and
medical leave insurance program including, but not limited to, costs
associated with outreach, education, enforcement, and dat a
collection.
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B. As used in this section, “qualified third-party actuary”
means an actuary who is not employed by thi s state and who meets the
qualification standards for the American Academy of Actuaries for
the scope of the actuary requested in this section.
C. The qualified third -party actuary shall model and compare
the costs including, but not limited to, the premi um rates necessary
to achieve solvency, of at least two different paid family and
medical leave insurance program models based on the policy
parameters provided in subsection A of this section. Beyond the
initial startup years in which benefits are paid o ut, the reserves
accounted for pursuant to subsection A of this section shall be
approximately one hundred thirty -five percent (135%) of the benefits
paid during the previous fiscal year plus an amount equal to one
hundred percent (100%) of the cost of adm inistration of the payment
of those benefits during the previous fiscal year, less the amount
of net assets remaining with the paid family and medical leave
insurance programs at the end of the previous fiscal year.
D. The qualified third -party actuary shall utilize data that is
relevant to this state, such as workforce and demographic data about
the population of this state, as may be required to perform an
actuarial study pursuant to subsection A of this section.
E. The Department, in conjunction with t he qualified third-
party actuary and a public stakeholder working group, shall iden tify
the program parameters for the qualified third-party actuary to use
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for each program that is modeled, with the model components based on
the paid family and medical ins urance programs adopted in other
states.
F. The qualified third -party actuary shall assess a timeline
that benefits the fiscal condition and preferred funding of a paid
family and medical insurance program for the state.
G. The actuarial study as detaile d in this section shall be
completed in accordance with the relevant Actuarial Standards of
Practice promulgated by the Actuarial Standards Board.
H. The Department shall promulgate any rules necessary to
implement and administer the provisions of this se ction.
SECTION 2. This act shall become effective November 1, 2025.
COMMITTEE REPORT BY: COMMITTEE ON ECONOMIC DEVELOPMENT, WORKFORCE
AND TOURISM
March 4, 2025 - DO PASS AS AMENDED