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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
HOUSE BILL 3964 By: Munson
AS INTRODUCED
An Act relating to state government employees;
amending 74 O.S. 2021, Section 840-2.23, as amended
by Section 18, Chapter 243, O.S.L. 2022 (74 O.S.
Supp. 2025, Section 840-2.23), which relates to state
employee leave; including stillborn deaths in
bereavement time; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 840-2.23, as
amended by Section 18, Chapter 243, O.S.L. 2022 (74 O.S. Supp. 2025,
Section 840-2.23), is amended to read as follows:
Section 840-2.23. A. There is hereby created the state leave
sharing program. The purpose of the state leave sharing program is
to permit state employees to donate annual or sick leave to a fellow
state employee who has exhausted, or will exhaust, all types of paid
leave and:
1. Who is eligible for and requires family leave pursuant to
the provisions of the Family and Medical Leave Act, 29 U.S.C., 2601
et seq.;
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2. Who is suffering from or has a relative or household member
suffering from an extraordinary or severe illness, injury,
impairment, or physical or mental condition which has caused or is
likely to cause the employee to take leave without pay or terminate
employment; or
3. Immediately after the death of a relative or household
member; provided that the total leave received for this purpose
shall not exceed five (5) days in any calendar year.
B. As used in this section:
1. "Relative of the employee" shall be limited to the spouse,
child, stepchild, stillborn, grandchild, grandparent, stepparent, or
parent of the employee;
2. "Household members" means those persons who reside in the
same home, who have reciprocal duties to and do provide financial
support for one another. This term shall include foster children
and legal wards even if they do not live in the household. The term
does not include persons sharing the same general house, when the
living style is primarily that of a dormitory or commune;
3. "Severe" or "extraordinary" means extreme or life-
threatening;
4. "State employee" means an employee with one (1) year or more
continuous service with the state. For the purposes of the state
leave sharing program, employees who are afforded protections under
the Civil Service and Human Capital Modernization Act and
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administrative rules and exempted employees are eligible to
participate; and
5. "Terminal" means likely to result in death within two (2)
calendar years.
C. An employee may be eligible to receive shared leave pursuant
to the following conditions:
1. The chief administrative officer of the employee determines
that the employee meets the criteria described in this section; and
2. The employee has abided by state policies regarding the use
of leave.
D. An employee may not donate annual or sick leave to an
eligible employee without the permission of the chief administrative
officer of the donating employee's agency.
E. An employee may donate annual or sick leave to another
employee provided the donation does not cause the annual leave
balance of the employee to fall below eighty (80) hours and provided
the donation does not cause the sick leave balance of the employee
to fall below eighty (80) hours.
F. Except as otherwise provided for in this subsection, the
chief administrative officer of the employee shall determine the
amount of donated leave an employee may receive and may authorize an
employee to use up to a maximum of two hundred sixty-one (261) days
of donated leave during total state employment. If the employee is
suffering from an illness which has been certified in writing by a
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licensed physician or health care practitioner as being terminal and
the employee who either has reached or shall reach in the near
future the maximum amount as set out in this subsection, the chief
administrative officer of the employee may approve additional
donated leave upon written request of the employee.
G. The chief administrative officer of the employee shall
require the employee to submit, prior to approval or disapproval of
shared leave pursuant to paragraph 1 of subsection A of this
section, a medical certificate from a licensed physician or health
care practitioner verifying the need for the leave and expected
duration of the illness, injury, impairment, or physical or mental
condition for which the leave is donated.
H. Donated annual or sick leave shall be transferable between
employees in different state entities. State entities shall allow
employees to receive donated annual or sick leave from employees
within their employing entity and different state entities;
provided, that the employee shall first exhaust all available leave
options within the state entity of the employee.
I. Donated annual or sick leave is transferable between
employees on an hour-to-hour basis irrespective of the hourly wage
of the donating or receiving employee.
J. Any donated leave may only be used by the recipient for the
purposes specified in this section.
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K. All forms of paid leave available for use by the recipient
must be used prior to using donated leave.
L. Any donated leave not used by the recipient during each
occurrence as determined by the chief administrative officer of the
employee shall be returned to the donor. The donated leave
remaining will be divided among the donors on a prorated basis based
on the original donated value and returned at its original donor
value and reinstated to the original leave balance of each donor.
M. All donated leave must be given voluntarily. No employee
shall be coerced, threatened, intimidated, or financially induced
into donating annual or sick leave for purposes of the leave sharing
program.
N. Except as provided by subsection P of this section,
employees may not donate annual or sick leave that the donor would
not be able to otherwise take.
O. The Human Capital Management Division of the Office of
Management and Enterprise Services shall designate an employee to
serve as the shared leave liaison. If a qualifying employee is
unable to obtain the necessary number of donated leave hours from
his or her employing entity, he or she may contact the shared leave
liaison. The shared leave liaison shall have the following
responsibilities:
1. To inform all state agencies of the requirements of this
section;
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2. To inform all state employees of the rights afforded under
this section;
3. To ensure an employee requesting shared leave from other
state entities meets the criteria set forth in this section;
4. To coordinate outreach efforts within the employing agency
and to other state entities to obtain all necessary hours of shared
leave for the employee;
5. To ensure an employee has exhausted all sources of shared
leave both within his or her employing entity and other state
entities before requesting leave from the Leave of Last Resort Bank;
and
6. To coordinate leave requested from the Leave of Last Resort
Bank.
P. There is hereby created a Leave of Last Resort Bank. In the
event a qualifying employee is unable to secure shared leave from
employees within his or her employing entity or within a different
entity, an employee may request leave from the Leave of Last Resort
Bank. The Leave of Last Resort Bank shall be administered by the
Human Capital Management Division of the Office of Management and
Enterprise Services.
1. The Leave of Last Resort Bank shall be funded by voluntary
donations of annual and sick leave from employees retiring from or
leaving state service.
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2. Upon retirement or the final day of state service, an
employee shall elect, in writing, whether any of his or her annual
or sick leave shall be deposited into the Leave of Last Resort Bank.
Q. The Office of Management and Enterprise Services shall
promulgate rules and regulations as necessary to carry out the
provisions of this section.
SECTION 2. This act shall become effective November 1, 2026.
60-2-15249 TKR 01/12/26