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An act relating to state government, the official text

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1                       STATE OF OKLAHOMA

2   2nd Session of the 60th Legislature (2026)

3 HOUSE BILL 3310               By: Eaves

4

5

6                       AS INTRODUCED

7   An Act relating to state government; amending 74 O.S.

    2021, Section 85.5, as amended by Section 1, Chapter

8   102, O.S.L. 2024 (74 O.S. Supp. 2025, Section 85.5),

    which relates to the powers and duties of the State

9   Purchasing Director; adding duties related to

    adherence to state purchasing rules; requiring

10  establishment of standards, evaluating compliance

    with standards, and required reporting; amending 74

11  O.S. 2021, Section 840-2.18, as last amended by

    Section 1, Chapter 18, 1st Extraordinary Session,

12  O.S.L. 2023 (74 O.S. Supp. 2025, Section 840-2.18),

    which relates to longevity payments; making

13  eligibility for payments subject to certain

    provisions; disallowing compensation increases and

14  longevity payment for noncompliance with certain

    standards; providing for codification; and providing

15  an effective date.

16

17

18 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

19  SECTION 1.      AMENDATORY  74 O.S. 2021, Section 85.5, as

20 amended by Section 1, Chapter 102, O.S.L. 2024 (74 O.S. Supp. 2025,

21 Section 85.5), is amended to read as follows:

22  Section 85.5. A. Except as otherwise provided in this section,

23 the State Purchasing Director, under the supervision of the Director

24 of the Office of Management and Enterprise Services, shall have sole

    Req. No. 13845                                         Page 1
1 and exclusive authority and responsibility for all acquisitions by

2 state agencies. In order to carry out the powers and duties of the

3 Chief Information Officer and the Information Services Division, the

4 Chief Information Officer shall have sole and exclusive authority

5 and responsibility for all acquisitions of information and

6 telecommunications technology, equipment, software, products and

7 related peripherals and services by state agencies. Public

8 construction contracts are awarded pursuant to Title 61 of the

9 Oklahoma Statutes and are not subject to the Oklahoma Central

10 Purchasing Act.

11  B. Every state agency shall determine its own quantitative

12 needs for acquisitions and the general class or nature of the

13 acquisitions. The State Purchasing Director, after consultation

14 with the requisitioning state agency, shall have authority to

15 determine the particular brand, model or other specific

16 classification of each acquisition and to draft or invoke pursuant

17 to the Oklahoma Central Purchasing Act specifications establishing

18 the requirements for all necessary contracts or purchase orders.

19  C. The Director of the Office of Management and Enterprise

20 Services shall have authority and responsibility to promulgate rules

21 in connection with provisions of the Oklahoma Central Purchasing Act

22 for:

23  1. The time, manner, authentication and form of making

24 requisitions for acquisitions;

    Req. No. 13845                                                Page 2
1   2. Inspection, analysis and testing of acquisitions or samples

2 bidders submit prior to contract award;

3   3. The form and manner of submission for bids or proposals a

4 bidder submits and the manner of accepting and opening bids or

5 proposals;

6   4. The conditions under which the Office of Management and

7 Enterprise Services shall require written contracts for

8 acquisitions, the conditions under which acquisitions may be made on

9 an open account basis, and the conditions and manner of negotiating

10 such contracts;

11  5. Obtaining acquisitions produced by state institutions;

12  6. Conditions under which any of the rules herein authorized

13 may be waived;

14  7. The amounts of and deposits on any bond or other surety

15 required to be submitted with a bid or contract for the furnishing

16 of acquisitions and the conditions under which such bond or other

17 surety shall be required;

18  8. The manner and conditions of delivery, which shall include

19 the designation of the common carrier of property to be used to

20 transport acquisitions whenever a common carrier is used, and the

21 acceptance, or rejection, including check of quantities, of any

22 acquisitions;

23  9. The form of any estimate, order or other information

24 required in connection with an acquisition;

    Req. No. 13845                                                  Page 3
1   10. State agency acquisitions not exceeding the acquisition

2 threshold amount requiring competitive bid to ensure

3 competitiveness, fairness, compliance with the Oklahoma Central

4 Purchasing Act and Section 3001 et seq. of this title, which relates

5 to the State Use Committee. The rules shall include separate

6 provisions based on acquisition amounts as follows:

7   a. state agencies shall make acquisitions not exceeding

8   Twenty-five Thousand Dollars ($25,000.00), provided

9   the acquisition process is fair and reasonable and is

10  conducted pursuant to rules authorized pursuant to

11  this section, and

12  b. state agencies with certified procurement officers and

13  internal purchasing procedures found compliant by the

14  State Purchasing Director may make acquisitions in

15  excess of the fair and reasonable acquisition

16  threshold amount provided for in this section and not

17  exceeding Two Hundred Fifty Thousand Dollars

18  ($250,000.00), pursuant to rules authorized by this

19  section;

20  11. Training by the State Purchasing Director of state agency

21 procurement officers;

22  12. Review and audit by the State Purchasing Director of state

23 agency acquisitions;

24

    Req. No. 13845                                                 Page 4
1   13. The conditions for increasing acquisition limits for state

2 agencies which have had a prior reduction in acquisition limit by

3 the Director of the Office of Management and Enterprise Services;

4   14. Use of a state purchase card to make acquisitions;

5   15. Any other matter or practice which relates to the

6 responsibilities of the State Purchasing Director;

7   16. Conditions for determination and authorization of

8 acquisition threshold amounts of state agencies;

9   17. The form and manner of verification by suppliers that the

10 supplier is eligible to do business in the State of Oklahoma and has

11 obtained all necessary permits and licenses, pursuant to applicable

12 provisions of law; and

13  18. Payment procedure rules for state agencies to adhere to

14 regarding statewide contracts;

15  19. Payment procedure rules for state agencies to adhere to

16 regarding contract invoice payment timelines, such procedures shall

17 include, but not be limited to, features that facilitate:

18  a. the timely determination of whether invoices are

19  proper invoices as defined in Section 34.73 of Title

20  62 of the Oklahoma Statutes, by state agencies, and

21  b. actual payment of proper invoices as defined in

22  Section 34.73 of Title 62 of the Oklahoma Statutes, by

23  state agencies within sixty (60) days of receipt of

24  such invoices by such state agencies.

    Req. No. 13845                                            Page 5
1   20. A standard of assessment which identifies state agencies

2 out of compliance with the procedures and timelines established

3 pursuant to the provisions of paragraph 19 of this subsection; and

4   21. The creation and maintenance of a report identifying

5 agencies identified as out of compliance pursuant to the provisions

6 of paragraph 20 of this subsection, and provide that such report be

7 made available on the website of the Office of Management and

8 Enterprise Services. Such report shall include, but not be limited

9 to, the month such agency was identified as out of compliance and

10 the month such agency completed actions needed to be identified as

11 in compliance.

12  D. The State Purchasing Director shall provide training for

13 state agency procurement officials, and other procurement staff, and

14 is authorized to require retraining of such procurement personnel

15 found not to be in compliance with provisions of the Oklahoma

16 Central Purchasing Act or associated rules. The training may

17 include any matters related to state procurement practices. State

18 agency purchasing officials that demonstrate proficiency shall be

19 certified as "certified procurement officers" by the State

20 Purchasing Director and shall be authorized to make acquisitions

21 pursuant to provisions of the Oklahoma Central Purchasing Act and

22 associated rules. The State Purchasing Director may assess a fee to

23 state agencies for the training that does not exceed each state

24

    Req. No. 13845                                                  Page 6
1 agency's pro rata share of the costs the State Purchasing Director

2 incurs to provide the training.

3   E. The State Purchasing Director shall review state agency

4 acquisitions for the purposes of:

5   1. Ensuring state agency compliance with provisions of the

6 Oklahoma Central Purchasing Act;

7   2. Ensuring state agency compliance with rules promulgated by

8 the Office of Management and Enterprise Services pursuant to the

9 Oklahoma Central Purchasing Act;

10  3. Ensuring state agency compliance with provisions of Section

11 3001 et seq. of this title pertaining to the State Use Committee;

12  4. Reporting any acquisition by any state agency found not to

13 be in compliance with those sections or rules to the Director of the

14 Office of Management and Enterprise Services;

15  5. A determination by the State Purchasing Director to reduce a

16 state agency's acquisition authority amount when the state agency is

17 found not to be in compliance with the Oklahoma Central Purchasing

18 Act or associated rules or requirements of the State Purchasing

19 Director pursuant to this section; and

20  6. A determination by the State Purchasing Director to increase

21 a state agency's acquisition authority amount after the agency cures

22 deficiencies in connection with a prior reduction in the authority

23 amount by the State Purchasing Director.

24

    Req. No. 13845                                                  Page 7
1   F. 1. Based on written findings and when recommended by the

2 State Purchasing Director, the Director of the Office of Management

3 and Enterprise Services may:

4   1. Transmit

5   a. transmit written findings by the State Purchasing

6   Director to the State Auditor and Inspector for

7   further investigation, indicating purchasing

8   procedures that do not conform to the Oklahoma Central

9   Purchasing Act or associated rules;, or

10  2. Transmit

11  b. transmit to the Attorney General or the State Auditor

12  and Inspector for further investigation a report made

13  by the State Purchasing Director that the Director of

14  the Office of Management and Enterprise Services

15  reasonably believes indicates that an action that

16  constitutes a criminal violation pursuant to the

17  Oklahoma Central Purchasing Act or other laws has been

18  taken by any state agency, state agency official,

19  bidder or supplier.

20  2. Based on the assessment report required pursuant to

21 paragraph 2 of subsection M of this section, the Director of the

22 Office of Management and Enterprise Services shall no later than

23 January 31 annually submit to the Speaker of the Oklahoma House of

24 Representatives and the President Pro Tempore of the Oklahoma State

    Req. No. 13845                                          Page 8
1 Senate, a recommendation for a prospective reduction of not more

2 than two percent (2%) in agency appropriations provided for

3 administrative expenses of agencies assessed an "unsatisfactory"

4 under a standard established by the Director, in such report.

5   G. 1. Pursuant to the requirements of the Oklahoma Central

6 Purchasing Act, the State Purchasing Director shall have authority

7 to enter into any statewide, multistate or multigovernmental

8 contract. The state entity designated by law, as specified in

9 Section 1010.3 of Title 56 of the Oklahoma Statutes, shall

10 participate in the purchase of pharmaceuticals available through

11 such multistate or multigovernmental contracts entered into by the

12 State Purchasing Director.

13  2. Whenever it appears advantageous to the state or to any

14 state agency to purchase or otherwise acquire any acquisition which

15 may be offered for sale by the United States government or any

16 agency thereof, the State Purchasing Director may execute a contract

17 for the acquisition with the federal government or federal agency

18 and may also utilize contracts awarded by other governmental

19 agencies including, but not limited to, agencies of the United

20 States of America.

21  3. The State Purchasing Director may designate, for use by

22 state agencies, contracts described in this subsection and contracts

23 awarded on behalf of one or more state agencies.

24

    Req. No. 13845                                                 Page 9
1   4. Prior to exercising the authority to cancel a contract, the

2 State Purchasing Director may authorize renegotiation of an existing

3 contract with an incumbent supplier for the purposes of obtaining

4 more favorable terms for the state.

5   5. The State Purchasing Director shall have the authority to

6 designate certain contracts for state agencies as statewide

7 contracts and mandatory statewide contracts. In order to carry out

8 the powers and duties of the Chief Information Officer and

9 Information Services Division, the Chief Information Officer shall

10 have the authority to designate certain information technology and

11 telecommunication contracts as statewide contracts and mandatory

12 statewide contracts and may negotiate consolidation contracts,

13 enterprise agreements and high technology system contracts in lieu

14 of or in conjunction with competitive bidding procedures to reduce

15 acquisition cost.

16  6. The State Purchasing Director may publish such

17 specifications relating to materials, supplies, equipment and

18 services to be acquired for the state as may best promote

19 competition and apprise potential suppliers of the type of product

20 desired.

21  H. 1. The State Purchasing Director may develop and test new

22 contracting policies, procedures and innovations that hold potential

23 for making state procurement more effective and efficient and

24 identify, and make recommendations to the Legislature of, any

    Req. No. 13845                                                 Page 10
1 appropriate changes in law. Such development and testing, proof of

2 concept, pilot project or other similar test shall not be considered

3 an acquisition subject to the Oklahoma Central Purchasing Act.

4   2. The State Purchasing Director is authorized to explore and

5 investigate cost savings in energy, resource usage and maintenance

6 contracts and to identify and negotiate contract solutions

7 including, but not limited to, pilot projects to achieve cost

8 savings for this state.

9   I. The State Purchasing Director shall endeavor to satisfy

10 state agencies in terms of cost, quality and timeliness of the

11 delivery of acquisitions by using bidders who have a record of

12 successful past performance, promoting competition, minimizing

13 administrative operating costs and conducting business with

14 integrity, fairness and openness.

15  J. The State Purchasing Director shall undertake the following:

16  1. The use of electronic commerce pursuant to the Oklahoma

17 Online Bidding Act for solicitation, notification and other

18 purchasing processes;

19  2. Monitoring rules promulgated pursuant to the Oklahoma

20 Central Purchasing Act to ensure that the rules satisfy the

21 interests of the state, are clear and succinct and encourage

22 efficiency in purchasing processes;

23  3. A program to identify suppliers' performance records;

24

    Req. No. 13845                                                 Page 11
1   4. Development of criteria for the use of sealed bid

2 contracting procedures, negotiated contracting procedures, selection

3 of types of contracts, postaward administration of purchase orders

4 and contracts, addendums, termination of contracts and contract

5 pricing;

6   5. Continual improvement in the quality of the performance of

7 the Purchasing Division through training programs, management

8 seminars, development of benchmarks and key management indicators,

9 and development of standard provisions, clauses and forms;

10  6. The State Purchasing Director shall prescribe standardized

11 contract forms and all other forms or certifications requisite or

12 deemed necessary by the State Purchasing Director to effectuate the

13 provisions of the Oklahoma Central Purchasing Act and associated

14 rules;

15  7. Development of programs to improve customer relations

16 through training, improved communications and appointment of

17 technical representatives;

18  8. Provide for public two-way communication between procurement

19 officers and potential bidders who have questions regarding a

20 request for proposal or invitation to bid; and

21  9. Determine whether and to what extent information included in

22 a bid or similar offer is confidential and reject all requests to

23 disclose the information so designated.

24

    Req. No. 13845                                                Page 12
1       K. The State Purchasing Director may utilize and authorize

2 state agencies to utilize reverse auctions to obtain acquisitions.

3       L. Prior to the award of a contract to a supplier, the State

4 Purchasing Director shall verify, pursuant to applicable provisions

5 of law, that the supplier is eligible to do business in this state

6 by confirming registration with the Secretary of State and franchise

7 tax payment status pursuant to Sections 1203 and 1204 of Title 68 of

8 the Oklahoma Statutes. The provisions of this subsection shall be

9 applicable only if the contract amount is Two Hundred Fifty Thousand

10 Dollars ($250,000.00) or greater.

11      M. On an annual basis, the State Purchasing Director shall

12 transmit to the Governor, Speaker of the House of Representatives

13 and President Pro Tempore of the Senate a:

14      1. A report documenting the savings realized by each agency

15 through the application of best spend practices including the

16 collection and tracking of spend data, strategic sourcing programs

17 and implementation of managed and mandatory statewide contracts and

18 include in the report information regarding emergency acquisitions;

19 and

20      2. A report documenting state agency compliance with the

21 procedures established and assessment performed pursuant to the

22 provisions of paragraphs 19 and 20 of subsection C of this section.

23 Such report shall provide a list of all state agencies whose

24 compliance has been assessed to be "unsatisfactory" under such

    Req. No. 13845                                                Page 13
1 established procedures and standards established by the Director of

2 the Office of Management and Enterprise Services, in addition such

3 report shall include, but not be limited to, the number of invoices

4 and aggregate value of unpaid invoices determined to be proper

5 invoices as defined in Section 34.73 of Title 62 of the Oklahoma

6 Statutes, according to the assessment conducted pursuant to the

7 provisions of paragraph 20 of subsection C of this section. Such

8 report shall be delivered in written or electronic format no later

9 than January 31 annually.

10  N. The acquisition threshold amount applicable to an

11 acquisition made pursuant to this act or associated rules shall not

12 apply to state agency purchases; provided, the State Purchasing

13 Director determines the agency has subject matter experts on staff

14 having the specialized expertise to purchase goods or services, the

15 agency possesses the necessary legal and procurement staff to

16 procure and monitor the contracts and provided the Director of the

17 Office of Management and Enterprise Services shall certify that the

18 proposed purchase does not conflict with consolidated statewide

19 spend initiatives.

20  1. Nothing in this subsection shall give an agency authority to

21 issue statewide, multistate or multigovernmental contracts.

22  2. Agencies making purchases pursuant to this subsection shall:

23  a. be responsible for contracts awarded pursuant to this

24  subsection, which includes, but may not be limited to,

    Req. No. 13845                                                Page 14
1   contract management, protest costs, all costs

2   connected with or incurred as a result of the

3   contract, including legal representation,

4   b. comply with rules and policies of the Office of

5   Management and Enterprise Services, and

6   c. report contracts issued pursuant to this subsection to

7   the Office of Management and Enterprise Services,

8   Central Purchasing Division, on a quarterly basis.

9   3. Purchases made in accordance with this subsection shall be

10 made pursuant to rules authorized by this section.

11  O. The State Purchasing Director, with approval by the Director

12 of the Office of Management and Enterprise Services, is authorized

13 to make use of any state laboratories for the tests and analyses

14 authorized in this section wherever practicable and to use private

15 laboratories or the laboratories of another government agency if it

16 is impracticable to use state laboratories. The State Purchasing

17 Director is further authorized to cooperate in test and analysis

18 programs or agreements with other states or the United States

19 government and to accept federal funds and funds donated by private

20 endowments or foundations for the purpose of participation in such

21 testing programs.

22  P. The State Purchasing Director shall require all contractors

23 or subcontractors who have entered into a contract with a public

24 employer to submit an affidavit that the contractor or subcontractor

    Req. No. 13845                                                Page 15
1 is in compliance with the provisions of Section 1313 of Title 25 of

2 the Oklahoma Statutes. If the State Purchasing Director determines

3 that a contractor or subcontractor has knowingly submitted a false

4 affidavit:

5   1. The contractor or subcontractor shall be liable for an

6 administrative penalty of Five Thousand Dollars ($5,000.00) for the

7 first offense, which shall increase by Two Thousand Dollars

8 ($2,000.00) for each subsequent offense; and

9   2. The public employer or the Office of Management and

10 Enterprise Services may terminate the contract with the contractor

11 or subcontractor.

12  SECTION 2.        AMENDATORY  74 O.S. 2021, Section 840-2.18, as

13 last amended by Section 1, Chapter 18, 1st Extraordinary Session,

14 O.S.L. 2023 (74 O.S. Supp. 2025, Section 840-2.18), is amended to

15 read as follows:

16  Section 840-2.18. A. A longevity pay plan is hereby adopted.

17 This plan applies to all state employees, excluding members of

18 boards and commissions, institutions under the administrative

19 authority of the Oklahoma State Regents for Higher Education,

20 employees of public school districts, and elected officials. The

21 plan shall also apply to those employees of the Oklahoma School for

22 the Blind and the Oklahoma School for the Deaf who qualify for

23 longevity pay in accordance with subsection G of Section 1419 of

24 Title 10 of the Oklahoma Statutes.

    Req. No. 13845                                                 Page 16
1   B. The Oklahoma Conservation Commission is hereby authorized to

2 establish a longevity pay program for employees of the conservation

3 districts employed under Section 3-3-103 of Title 27A of the

4 Oklahoma Statutes. Such longevity pay program shall be consistent

5 with the longevity pay program for state employees authorized under

6 this title and payments shall be made in a manner consistent with

7 procedures for reimbursement to conservation districts.

8   C. To Except as provided in Section 3 of this act, to be

9 eligible for longevity pay, employees must have been continuously

10 employed in the service of the state for a minimum of two (2) years

11 in full-time status or in part-time status working more than one

12 thousand (1,000) hours a year.

13  For purposes of this section, a break in service of thirty (30)

14 calendar days or less shall not be considered an interruption of

15 continuous service; a break in service of more than thirty (30)

16 calendar days shall mark an end to continuous service. The

17 legislative session employees who have worked for two (2) years or

18 more in part-time status and are eligible for state retirement

19 benefits, but do not receive other longevity payments, shall be

20 eligible and shall be considered to have been continuously employed

21 for purposes of calculating longevity payments, notwithstanding the

22 provisions of subsection E of this section.

23  D. 1. Longevity pay for the first twenty (20) years of service

24 shall be determined pursuant to the following schedule:

    Req. No. 13845                                                 Page 17
1   Years of Service       Annual Longevity Payment

2   At least 2 years but

3   less than 4 years      $250.00

4   At least 4 years but

5   less than 6 years      $426.00

6   At least 6 years but

7   less than 8 years      $626.00

8   At least 8 years but

9   less than 10 years     $850.00

10  At least 10 years but

11  less than 12 years     $1,062.00

12  At least 12 years but

13  less than 14 years     $1,250.00

14  At least 14 years but

15  less than 16 years     $1,500.00

16  At least 16 years but

17  less than 18 years     $1,688.00

18  At least 18 years but

19  less than 20 years     $1,900.00

20  At least 20 years      $2,000.00

21  2. For each additional two (2) years of service after the first

22 twenty (20) years an additional Two Hundred Dollars ($200.00) shall

23 be added to the amount stated above for twenty (20) years of

24 service.

    Req. No. 13845                                               Page 18
1   The total amount of the annual longevity payment made to an

2 employee by any and all state agencies in any year shall not exceed

3 the amount shown on the table corresponding to that employee's years

4 of service with the state, except as otherwise provided by Section

5 840-2.28 of this title. Further, no employee shall receive

6 duplicating longevity payments for the same periods of service with

7 any and all agencies, except as otherwise provided by Section 840-

8 2.28 of this title.

9   E. To determine years of service, cumulative periods of full-

10 time employment or part-time employment working more than one

11 hundred fifty (150) hours per month with the state excluding service

12 as specified in subsection A of this section are applicable. Part-

13 time employment, working one hundred fifty (150) hours per month or

14 less for the state, excluding service as specified in subsection A

15 of this section, shall be counted only if:

16  1. The period of employment was continuous for at least five

17 (5) months; and

18  2. a. The person worked more than two-fifths (2/5) time.

19  Other employment shall not be counted as service for purposes of

20 longevity payments. Further, no period of employment with the

21 state, whether with one or more than one agency, shall be counted as

22 more than full-time service.

23  b. For purposes of the computation required by this

24  section, any service performed by a person during

    Req. No. 13845                                                Page 19
1   which the person received compensation for duties

2   performed for the state shall be counted if payment

3   for such service was made using state fiscal

4   resources. The provisions of this paragraph shall not

5   apply to elected or appointed justices or judges,

6   including special judges, who perform services in the

7   trial or appellate courts. The provisions of this

8   section shall apply to persons who perform services as

9   an administrative law judge within the executive

10  department and employees of the judicial branch.

11  F. Years of service under the administrative authority of the

12 Oklahoma State Regents for Higher Education or the administrative

13 authority of the Oklahoma Department of Career and Technology

14 Education of any employee who is now employed in a job

15 classification which is eligible for longevity pay shall be included

16 in years of service for purposes of determining longevity pay.

17  G. Years of service shall be certified through the current

18 employing agency by the appointing authority on a form approved by

19 the Office of Management and Enterprise Services. The form shall be

20 completed and posted as directed by the Director of the Office of

21 Management and Enterprise Services by the current employing agency

22 when the employee initially enters on duty with the agency and

23 thereafter whenever the employee's anniversary date is changed.

24

    Req. No. 13845                                                 Page 20
1   H. Eligible employees, in full-time status or in part-time

2 status working more than one hundred fifty (150) hours per month,

3 shall receive one (1) lump-sum annual payment, in the amount

4 provided on the preceding schedule, during the month following the

5 anniversary date of the employee's most recent enter-on-duty day

6 with the state. Upon implementation of the statewide information

7 systems project, the lump-sum annual payment may be paid concurrent

8 with the final payroll of the month of the employee's anniversary

9 date. Eligible part-time employees who work one hundred fifty (150)

10 hours per month or less shall receive one (1) lump-sum annual

11 payment, based on the formula in subsection L of this section,

12 during the month following the anniversary date of the employee's

13 most recent enter-on-duty day with the state. To receive longevity

14 pay an employee must be in pay status on or after his or her

15 anniversary date.

16  Eligible employees who would not otherwise receive annual

17 longevity payments because their employment includes regular periods

18 of leave without pay in excess of thirty (30) calendar days shall

19 receive one (1) lump-sum annual payment, based on the formula in

20 subsection L of this section, during:

21  1. The month of August if the employee is in pay status on July

22 1; or

23

24

    Req. No. 13845                                                 Page 21
1     2. During the month following the employee's first return to

2 duty that fiscal year if the employee is not in pay status on July

3 1.

4     Except as otherwise provided by Section 840-2.28 of this title,

5 employees terminated as a result of a reduction-in-force or retiring

6 from state employment shall receive upon said termination or

7 retirement the proportionate share of any longevity payment which

8 may have accrued as of the date of termination or retirement.

9 Provided further that, the proportionate share of any longevity

10 payment which may have accrued as of the date of death of an

11 employee shall be made to the surviving spouse of the employee or if

12 there is no surviving spouse to the estate of the employee.

13    I. Periods of leave without pay taken in accordance with

14 Section 840-2.21 of this title shall be counted as service. Other

15 periods of nonpaid leave status in excess of thirty (30) calendar

16 days shall not mark a break in service; however, they shall:

17    1. Not be used in calculating total months of service for

18 longevity pay purposes; and

19    2. Extend the anniversary date for longevity pay by the total

20 period of time on nonpaid leave status except as provided in

21 subsection H of this section for employees whose conditions of

22 employment include regular periods of leave without pay.

23

24

    Req. No. 13845                                                 Page 22
1   J. Employees currently receiving longevity pay who work for the

2 Oklahoma Department of Career and Technology Education shall not be

3 eligible for the longevity pay plan provided for in this section.

4   K. A break in service with the state in excess of thirty (30)

5 days but which does not exceed two (2) years which was caused by a

6 reduction-in-force shall be treated as if it were a period of

7 nonpaid leave status as provided for in subsection I of this section

8 for the purpose of calculating total months of service for longevity

9 pay. This subsection shall only apply to state employees laid off

10 after June 30, 1982.

11  L. Eligible part-time employees working less than one hundred

12 fifty (150) hours per month and other eligible employees with

13 regular annual periods of leave without pay of more than thirty (30)

14 calendar days will receive a prorated share of the "Annual Longevity

15 Payment" authorized in subsection D of this section. The prorated

16 amount of payment will be based on actual hours worked in the

17 immediately preceding twelve (12) months.

18  M. An employee shall not be entitled to retroactive longevity

19 payments as a result of amendments to this section unless

20 specifically authorized by law.

21  N. The Director of the Office of Management and Enterprise

22 Services is authorized to promulgate such Longevity Pay Plan Rules

23 as he or she finds necessary to carry out the provisions of this

24 section.

    Req. No. 13845                                                Page 23
1   O. As of July 1, 1998, years of service with a city-county

2 health department for employees who left a city-county health

3 department for employment with the Department of Environmental

4 Quality or the Oklahoma Department of Agriculture, Food, and

5 Forestry, between July 1, 1993, and July 1, 1998, and who are now

6 employed in a job classification that is eligible for longevity pay

7 pursuant to this section, shall be included in years of service for

8 purposes of determining longevity pay subsequent to July 1, 1998.

9   P. As of July 1, 2003, years of service with a local

10 conservation district shall be included in years of service for

11 purposes of determining longevity pay for local conservation

12 district employees transferred to the Oklahoma Conservation

13 Commission pursuant to the provisions of this section.

14  SECTION 3.      NEW LAW      A new section of law to be codified

15 in the Oklahoma Statutes as Section 840-2.18A of Title 74, unless

16 there is created a duplication in numbering, reads as follows:

17  The chief executive officer of an agency identified as "out of

18 compliance" pursuant to the provisions of paragraph 20 of subsection

19 C of Section 85.5 of Title 74 of the Oklahoma Statutes shall be

20 disqualified from receiving:

21  1. Any compensation increase during the period such agency

22 under the officer's direction is identified as out of compliance and

23 a period of equal length beyond the point in which such agency was

24 identified as regaining compliance with such provisions; and

    Req. No. 13845                                                Page 24
1   2. Any longevity payment otherwise payable pursuant to Section

2 840-2.18 of Title 74 of the Oklahoma Statutes, to such officer in a

3 calendar year in which such agency under the officer's direction is

4 identified as out of compliance with such provisions.

5   SECTION 4. This act shall become effective November 1, 2026.

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7   60-2-13845      JM  12/19/25

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