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STATE OF OKLAHOMA
2nd Session of the 60th Legislature (2026)
SENATE BILL 1714 By: Jett
AS INTRODUCED
An Act relating to state agencies; amending 74 O.S.
2021, Section 1604; requiring the establishment or
enhancement of an internal employee suggestion
program; stating purpose; providing for financial
rewards; stating limitation for certain payments;
creating the Statewide Cost Savings Incentive Fund;
stating purpose; authorizing the Office of Management
and Enterprise Services to promulgate rules; creating
the Incentive Awards for State Employees Committee;
providing for codification; providing an effective
date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 1604, is
amended to read as follows:
Section 1604. A. Each state agency may shall develop a State
Employee Suggestion Program. The purpose of the program shall be to
promote efficiency and effectiveness of state governmental
operations by providing economic incentives to employees who make
suggestions which result in direct cost savings.
B. Each state agency shall prioritize and implement viable
cost-saving suggestions and shall justify, in writing, any rejection
of cost-saving suggestions. Rejected suggestions shall be forwarded
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to the Office of Management and Enterprise Services for statewide
review and potential cross-agency adoption.
B. C. A state agency which implements a suggestion made by an
employee which results in direct cost savings to the agency of Five
Thousand Dollars ($5,000.00) or more may financially reward the
employee. The amount of any such award shall not exceed twenty
percent (20%) twenty-five percent (25%) of the cost savings to the
agency and shall be a minimum of ten percent (10%) of the cost
savings to the agency unless it conflicts with individual or team
award limits. No award to an individual shall exceed Twenty
Thousand Dollars ($20,000.00). No award to a team of two or more
employees shall exceed Fifty Thousand Dollars ($50,000.00). No
state employee shall be eligible to receive more than one award
payment in any single fiscal year. Each agency shall be responsible
for implementing a State Employee Suggestion Program as it deems
appropriate in accordance with the provisions of this section.
D. Each state agency shall authorize non-cash recognition and
rewards including, but not limited to, certificates, additional
leave, and professional development opportunities for suggestions
that improve efficiency without quantifiable dollar savings
including, but not limited to, those identifying fraud or abuse
leading to recoveries.
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E. Each state agency shall authorize suggestions targeting
other entities to be jointly reviewed, with shared credit and awards
distributed proportionally based on realized savings.
C. F. Suggestions pertaining to the following areas shall not
be eligible for awards: grievances; classification and pay; matters
already recommended for study, review or summary; matters which are
the result of assigned or contracted audits, budget and fiscal
preparations studies, surveys, reviews or research; and matters
requiring the enactment of legislation. A suggester who applies for
patent rights to his or her suggestion shall not be eligible for an
award.
Suggestions made by any state employee pursuant to the State
Employee Suggestion Program shall be afforded the same protections
as provided by a confidential whistleblower program pursuant to
Section 34.301 of Title 62 of the Oklahoma Statutes or any other
public employee whistleblower act that may be created by law.
D. G. The Office of Management and Enterprise Services shall
promulgate rules and establish policies as necessary to implement
the State Employee Suggestion Program.
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1605 of Title 74, unless there
is created a duplication in numbering, reads as follows:
Each state agency shall annually submit a report to the
Governor, the President Pro Tempore of the Senate, the Speaker of
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the House of Representatives, the Secretary of State, and the
Director of the Office of Management and Enterprise Services
detailing all cost-saving suggestions received and evaluated,
implemented measures and verified savings, recommendations for
reductions in other agencies, and a plan for achieving at least
three percent (3%) budgetary efficiencies in the upcoming fiscal
year through voluntary reductions or reallocations.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1606 of Title 74, unless there
is created a duplication in numbering, reads as follows:
There is hereby created in the State Treasury a revolving fund
for the Office of Management and Enterprise Services to be
designated the “Statewide Cost Savings Incentive Fund”. The fund
shall be a continuing fund, not subject to fiscal year limitations,
and shall consist of all monies received by the Office of Management
and Enterprise Services from a twenty percent (20%) portion of
realized statewide savings pursuant to Section 1604 of Title 74 of
the Oklahoma Statutes. All monies accruing to the credit of the
fund shall be budgeted and expended by the Office of Management and
Enterprise Services for the purpose of providing bonus pools for
agencies achieving aggregate reductions; agencies meeting or
exceeding reduction targets shall receive supplemental
appropriations or flexibility in carrying forward savings for
employee bonuses or operational improvements. Expenditures from the
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fund shall be made upon warrants issued by the State Treasurer
against claims filed as prescribed by law with the Director of the
Office of Management and Enterprise Services for approval and
payment.
SECTION 4. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1607 of Title 74, unless there
is created a duplication in numbering, reads as follows:
There is hereby created the Incentive Awards for State Employees
Committee. The Committee shall be responsible for annually
recognizing top agency performers and individual employees for cost-
saving contributions. The Committee shall annually publicly report
the total statewide savings achieved through the State Employee
Suggestion Program pursuant to Section 1604 of Title 74 of the
Oklahoma Statutes. The Committee shall consist of one member to be
appointed by the Governor, one member of the Senate to be appointed
by the President Pro Tempore of the Senate, and one member of the
House of Representatives to be appointed by the Speaker of the House
of Representatives. All members of the Committee must be current
state employees. All members of the Committee shall serve at the
pleasure of the appointing authority. All actions of the Committee
shall require a quorum which shall be defined as a majority of the
members appointed. Staff for the Committee shall be provided by the
Governor, Senate, and House of Representatives from their existing
staff.
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SECTION 5. This act shall become effective July 1, 2026.
SECTION 6. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
60-2-3112 CJD 1/14/2026 11:13:05 AM