1| HOUSE OF REPRESENTATIVES - FLOOR VERSION |
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2| STATE OF OKLAHOMA |
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3| 2nd Session of the 59th Legislature (2024) |
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4|COMMITTEE SUBSTITUTE |
|FOR ENGROSSED |
5|SENATE BILL NO. 1520 By: Pemberton and Stephens of |
| the Senate |
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| and |
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| Hays and Hilbert of the |
8| House |
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9| |
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10| |
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11| COMMITTEE SUBSTITUTE |
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12| An Act relating to the public retirement systems; |
| amending 62 O.S. 2021, Section 3103, as amended by |
13| Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp. |
| 2023, Section 3103), which relates to the Oklahoma |
14| Pension Legislation Actuarial Analysis Act; modifying |
| term; amending 70 O.S. 2021, Section 17-116.10, which |
15| relates to postretirement employment; modifying |
| earnings limitation for certain retirees returning to |
16| work in a public school; modifying postretirement |
| earning limitation for certain time period; providing |
17| effective dates; providing for contingent effective |
| dates based on outcome of approval of the emergency |
18| clause; and declaring an emergency. |
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19| |
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20| |
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21|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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22| SECTION 1. AMENDATORY 62 O.S. 2021, Section 3103, as |
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23|amended by Section 1, Chapter 306, O.S.L. 2022 (62 O.S. Supp. 2023, |
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24|Section 3103), is amended to read as follows: |
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1| Section 3103. As used in the Oklahoma Pension Legislation |
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2|Actuarial Analysis Act: |
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3| 1. "Amendment" means any amendment, including a substitute |
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4|bill, made to a retirement bill by any committee of the House or |
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5|Senate, any conference committee of the House or Senate or by the |
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6|House or Senate; |
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7| 2. "RB number" means that number preceded by the letters "RB" |
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8|assigned to a retirement bill by the respective staffs of the |
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9|Oklahoma State Senate and the Oklahoma House of Representatives when |
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10|the respective staff office prepares a retirement bill for a member |
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11|of the Legislature; |
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12| 3. "Legislative Actuary" means the firm or entity that enters |
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13|into a contract with the Legislative Service Bureau pursuant to |
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14|Section 452.15 of Title 74 of the Oklahoma Statutes to provide the |
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15|actuarial services and other duties provided for in the Oklahoma |
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16|Pension Legislation Actuarial Analysis Act; |
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17| 4. "Nonfiscal amendment" means an amendment to a retirement |
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18|bill having a fiscal impact, which amendment does not change any |
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19|factor of an actuarial investigation specified in subsection A of |
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20|Section 3109 of this title; |
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21| 5. "Nonfiscal retirement bill" means a retirement bill: |
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22| a. which does not affect the cost or funding factors of |
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23| a retirement system, |
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24| |
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1| b. which affects such factors only in a manner which |
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2| does not: |
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3| (1) grant a benefit increase under the retirement |
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4| system affected by the bill, |
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5| (2) create an actuarial accrued liability for or |
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6| increase the actuarial accrued liability of the |
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7| retirement system affected by the bill, or |
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8| (3) increase the normal cost of the retirement |
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9| system affected by the bill, |
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10| c. which authorizes the purchase by an active member of |
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11| the retirement system, at the actuarial cost for the |
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12| purchase as computed pursuant to the statute in effect |
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13| on the effective date of the measure allowing such |
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14| purchase, of years of service for purposes of reaching |
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15| a normal retirement date in the applicable retirement |
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16| system, but which cannot be used in order to compute |
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17| the number of years of service for purposes of |
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18| computing the retirement benefit for the member, |
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19| d. which provides for the computation of a |
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20| service-connected disability retirement benefit for |
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21| members of the Oklahoma Law Enforcement Retirement |
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22| System pursuant to Section 2-305 of Title 47 of the |
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23| Oklahoma Statutes if the members were unable to |
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24| |
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1| complete twenty (20) years of service as a result of |
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2| the disability, |
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3| e. which requires membership in the defined benefit plan |
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4| authorized by Section 901 et seq. of Title 74 of the |
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5| Oklahoma Statutes for persons whose first elected or |
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6| appointed service occurs on or after November 1, 2018, |
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7| if such persons had any prior service in the Oklahoma |
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8| Public Employees Retirement System prior to November |
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9| 1, 2015, |
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10| f. which provides for a one-time increase in retirement |
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11| benefits if the increase in retirement benefits is not |
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12| a permanent increase in the gross annual retirement |
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13| benefit payable to a member or beneficiary, occurs |
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14| only once pursuant to a single statutory authorization |
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15| and does not exceed: |
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16| (1) the lesser of two percent (2%) of the gross |
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17| annual retirement benefit of the member or One |
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18| Thousand Dollars ($1,000.00) and requires that |
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19| the benefit may only be provided if the funded |
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20| ratio of the affected retirement system would not |
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21| be less than sixty percent (60%) but not greater |
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22| than eighty percent (80%) after the benefit |
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23| increase is paid, |
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24| |
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1| (2) the lesser of two percent (2%) of the gross |
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2| annual retirement benefit of the member or One |
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3| Thousand Two Hundred Dollars ($1,200.00) and |
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4| requires that the benefit may only be provided if |
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5| the funded ratio of the affected retirement |
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6| system would be greater than eighty percent (80%) |
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7| but not greater than one hundred percent (100%) |
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8| after the benefit increase is paid, |
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9| (3) the lesser of two percent (2%) of the gross |
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10| annual retirement benefit of the member or One |
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11| Thousand Four Hundred Dollars ($1,400.00) and |
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12| requires that the benefit may only be provided if |
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13| the funded ratio of the affected retirement |
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14| system would be greater than one hundred percent |
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15| (100%) after the benefit increase is paid, or |
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16| (4) the greater of two percent (2%) of the gross |
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17| annual retirement benefit of the volunteer |
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18| firefighter or One Hundred Dollars ($100.00) for |
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19| persons who retired from the Oklahoma |
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20| Firefighters Pension and Retirement System as |
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21| volunteer firefighters and who did not retire |
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22| from the Oklahoma Firefighters Pension and |
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23| Retirement System as a paid firefighter. |
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24| |
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1| As used in this subparagraph, "funded ratio" means the |
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2| figure derived by dividing the actuarial value of |
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3| assets of the applicable retirement system by the |
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4| actuarial accrued liability of the applicable |
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5| retirement system, |
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6| g. which modifies the disability pension standard for |
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7| police officers who are members of the Oklahoma Police |
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8| Pension and Retirement System as provided by Section 3 |
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9| of this act 50-115 of Title 11 of the Oklahoma |
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10| Statutes, |
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11| h. which provides a cost-of-living benefit increase |
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12| pursuant to the provisions of: |
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13| (1) Section 49-143.7 of Title 11 of the Oklahoma |
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14| Statutes, |
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15| (2) Section 50-136.9 of Title 11 of the Oklahoma |
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16| Statutes, |
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17| (3) Section 1104K of Title 20 of the Oklahoma |
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18| Statutes, |
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19| (4) Section 2-305.12 of Title 47 of the Oklahoma |
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20| Statutes, |
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21| (5) Section 17-116.22 of Title 70 of the Oklahoma |
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22| Statutes, |
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23| (6) Section 930.11 of Title 74 of the Oklahoma |
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24| Statutes, or |
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1| i. which modifies the computation of the line-of-duty |
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2| disability benefit pursuant to the provisions of this |
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3| act Sections 50-101 and 50-115 of Title 11 of the |
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4| Oklahoma Statutes, or |
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5| j. which provides a restriction on provisions limiting |
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6| postretirement earnings pursuant to the provisions of |
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7| this act. |
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8|A nonfiscal retirement bill shall include any retirement bill that |
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9|has as its sole purpose the appropriation or distribution or |
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10|redistribution of monies in some manner to a retirement system for |
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11|purposes of reducing the unfunded liability of such system or the |
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12|earmarking of a portion of the revenue from a tax to a retirement |
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13|system or increasing the percentage of the revenue earmarked from a |
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14|tax to a retirement system; |
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15| 6. "Reduction-in-cost amendment" means an amendment to a |
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16|retirement bill having a fiscal impact which reduces the cost of the |
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17|bill as such cost is determined by the actuarial investigation for |
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18|the bill prepared pursuant to Section 3109 of this title; |
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19| 7. "Retirement bill" means any bill or joint resolution |
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20|introduced or any bill or joint resolution amended by a member of |
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21|the Oklahoma Legislature which creates or amends any law directly |
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22|affecting a retirement system. A retirement bill shall not mean a |
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23|bill or resolution that impacts the revenue of any state tax in |
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24| |
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1|which a portion of the revenue generated from such tax is earmarked |
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2|for the benefit of a retirement system; |
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3| 8. "Retirement bill having a fiscal impact" means any |
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4|retirement bill creating or establishing a retirement system and any |
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5|other retirement bill other than a nonfiscal retirement bill; and |
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6| 9. "Retirement system" means the Teachers' Retirement System of |
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7|Oklahoma, the Oklahoma Public Employees Retirement System, the |
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8|Uniform Retirement System for Justices and Judges, the Oklahoma |
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9|Firefighters Pension and Retirement System, the Oklahoma Police |
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10|Pension and Retirement System, the Oklahoma Law Enforcement |
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11|Retirement System, or a retirement system established after January |
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12|1, 2006. |
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13| SECTION 2. AMENDATORY 70 O.S. 2021, Section 17-116.10, |
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14|is amended to read as follows: |
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15| Section 17-116.10. A. Subject to the requirements of Section |
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16|6-101.2 of this title and any other applicable requirements of law, |
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17|a member of the Teachers' Retirement System of Oklahoma may enter |
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18|into postretirement employment with a public school of Oklahoma and |
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19|still receive monthly retirement benefits subject to the following |
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20|limitations: |
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21| 1. A retired member is not eligible to be employed by the |
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22|public schools of Oklahoma, in any capacity, for sixty (60) calendar |
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23|days between the retiree's last day of preretirement public |
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24|education employment and any postretirement public education |
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1|employment. For purposes of this section, the term "last day of |
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2|preretirement employment" shall mean the last day the employee is |
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3|required to be physically present on the job to complete the terms |
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4|of the employment contract or agreement. An employee on paid leave |
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5|is still considered to be employed for purposes of this section. |
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6|Employment under any conditions during this time, volunteer services |
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7|for the purpose of obtaining a paid position at a later date, or |
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8|payment at a later time for services performed during this time |
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9|period shall cause the forfeiture of all retirement benefits |
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10|received during the period; |
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11| 2. Unless otherwise provided in this paragraph or in paragraph |
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12|3 of this subsection, earnings from the public schools may not |
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13|exceed one-half (1/2) of the member's final average salary used in |
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14|computing retirement benefits, or the Earnings Limitation earnings |
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15|limitation for employees allowed by the Social Security |
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16|Administration, whichever is less. For Until July 1, 2027, for |
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17|retired members having attained the age of fifty-five (55) years but |
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18|less than fifty-nine and one-half (59 1/2) years, the limit on |
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19|allowed earnings from the public schools of Oklahoma for employment |
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20|for the performance of duties ordinarily performed by classified or |
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21|nonclassified personnel shall be the lesser of Thirty Thousand |
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22|Dollars ($30,000.00) or one-half (1/2) of the member's final average |
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23|salary used in computing retirement benefits unless the earnings |
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24|limitation allowed by the Social Security Administration would be |
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1|greater than Thirty Thousand Dollars ($30,000.00). Until July 1, |
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2|2027, for retired members having attained the age of fifty-nine and |
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3|one-half (59 1/2) years or older, there shall be no limit on allowed |
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4|earnings from the public schools of Oklahoma for the performance of |
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5|duties ordinarily performed by classified or nonclassified |
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6|personnel. Effective July 1, 2027, for retired members under the |
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7|age of sixty-two (62) years, the limit on allowed earnings from the |
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8|public schools of Oklahoma for employment for the performance of |
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9|duties ordinarily performed by classified or nonclassified personnel |
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10|shall be the lesser of Fifteen Thousand Dollars ($15,000.00) or |
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11|one-half (1/2) of the member's final average salary used in |
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12|computing retirement benefits unless the earnings limitation allowed |
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13|by the Social Security Administration would be greater than Fifteen |
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14|Thousand Dollars ($15,000.00). For Effective July 1, 2027, for |
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15|retired members sixty-two (62) years of age or older the limit on |
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16|allowed earnings from the public schools of Oklahoma for the |
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17|performance of duties ordinarily performed by classified or |
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18|nonclassified personnel shall be the lesser of Thirty Thousand |
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19|Dollars ($30,000.00) or one-half (1/2) of the member's final average |
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20|salary used in computing retirement benefits. |
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21| For purposes of this paragraph, the following shall apply: |
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22| a. earnings shall mean "regular annual compensation" as |
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23| defined in paragraph (25) of Section 17-101 of this |
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24| title, and shall include any payment by a public |
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1| school for services rendered by a retired member who |
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2| is employed for any purpose whatsoever. Supplemental |
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3| retirement payments paid by a former public school |
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4| employer pursuant to subsection 9 of Section 17-105 of |
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5| this title or other state law shall not be considered |
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6| as earnings, |
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7| b. the Earnings Limitation earnings limitation for |
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8| employees allowed by the Social Security |
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9| Administration to workers between the age of sixty-two |
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10| (62) years and sixty-five (65) years shall apply to |
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11| retired members below the age of sixty-two (62) years, |
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12| c. the limit on allowed earnings from the public schools |
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13| shall be automatically adjusted effective the first |
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14| day of January of each year to reflect the current |
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15| Earnings Limitation earnings limitation for employees |
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16| as determined from time to time by the Social Security |
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17| Administration, |
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18| d. the earnings limit for the calendar year in which a |
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19| member retires shall be one-twelfth (1/12) of the |
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20| annual limit multiplied by the number of months the |
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21| member is eligible to work and receive payments from |
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22| the public schools of Oklahoma, |
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23| e. earnings in excess of the maximum limit on allowed |
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24| earnings from public schools of Oklahoma shall result |
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1| in a loss of future retirement benefits for the year |
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2| the postretirement employment was performed of One |
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3| Dollar ($1.00) for each One Dollar ($1.00) earned over |
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4| the maximum allowed earnings amount, and |
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5| f. for those members age seventy (70) years and over, the |
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6| earnings in excess of the maximum limit allowed |
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7| earnings from public schools of Oklahoma shall be |
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8| one-half (1/2) the member's final average salary used |
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9| in computing retirement benefits. However, any |
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10| retired member receiving benefits from the Retirement |
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11| System who reached age seventy (70) years prior to |
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12| July 1, 1991, shall not be restricted by the earnings |
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13| limits pursuant to this subparagraph until January 1, |
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14| 1994. To qualify for the provisions of this |
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15| subparagraph, the member must be employed less than |
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16| one-half (1/2) the time compared to other full-time |
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17| employees in similar positions; |
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18| 3. Notwithstanding paragraph 2 of this subsection, a retired |
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19|classified or nonclassified member who has been retired for |
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20|thirty-six (36) or more months and who is employed by a public |
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21|school to perform duties ordinarily performed by classified or |
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22|nonclassified personnel shall be able to receive annualized earnings |
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23|from the public school with no reduction in retirement benefits |
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24|regardless of the amount of annualized earnings. For a period of |
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1|three (3) years beginning July 1, 2017, members who have retired as |
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2|of July 1, 2017, as active classroom teachers, who have been retired |
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3|and receiving a benefit for at least one (1) year, and who have not |
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4|been employed by any public school during that one-year period, |
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5|shall be eligible to be reemployed as an active classroom teacher in |
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6|common or career tech school districts, with no limitations on |
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7|earnings. For a period of three (3) years beginning July 1, 2021, |
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8|members who have retired as of July 1, 2020, who have been retired |
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9|and receiving a benefit for at least one (1) year, and who have not |
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10|been employed by any public school during that one-year period, |
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11|shall be eligible to be reemployed as an active classroom teacher in |
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12|common or career tech school districts, with no limitations on |
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13|earnings. The one-year period starts with the retiree's last day of |
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14|preretirement public education employment. Members returning under |
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15|this section shall not be subject to any earning limitations |
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16|earnings limitation following the end of the three-year periods |
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17|described in this paragraph. Members returning under this section |
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18|shall only be employed pursuant to a temporary contract; and |
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19| 4. A member shall be considered to be employed by a school |
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20|district to perform the duties ordinarily performed by classified or |
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21|nonclassified personnel if the member is hired by the school |
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22|district in the member's individual capacity to perform the duties |
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23|or if the member performs the duties through employment with a |
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24|proprietorship, partnership, corporation, limited liability company |
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1|or partnership, or any other business structure that has agreed or |
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2|contracted to provide the services to the school district. |
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3| B. A public school district that employs a retired member shall |
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4|be required to make contributions to the System for the retired |
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5|member in an amount as required in Section 17-108.1 and in paragraph |
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6|3 of subsection B of Section 17-116.2 of this title. |
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7| C. For purposes of this section, postretirement employment of |
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8|less than one thousand (1,000) hours per year with the Governor, the |
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9|State Senate, the House of Representatives or the Legislative |
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10|Service Bureau shall not be considered as postretirement employment |
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11|with a public school of Oklahoma. |
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12| D. The Board of Trustees of the Teachers' Retirement System of |
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13|Oklahoma shall promulgate such rules as are necessary to implement |
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14|the provisions of this section. |
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15| E. A member who has entered into postretirement employment with |
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16|a participating employer of the Teachers' Retirement System of |
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17|Oklahoma must fully comply with all the provisions of the rules |
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18|promulgated by the Board of Trustees pursuant to this section in |
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19|order to continue receiving his or her monthly retirement benefit. |
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20| SECTION 3. If the Emergency Clause is not approved pursuant to |
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21|the requirements of the Oklahoma Constitution as part of this |
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22|measure, the effective date of Section 1 of this act shall be |
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23|October 1, 2024. |
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24| |
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1| SECTION 4. If the Emergency Clause is not approved pursuant to |
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2|the requirements of the Oklahoma Constitution as part of this |
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3|measure, the effective date of Section 2 of this act shall be |
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4|November 1, 2024. |
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5| SECTION 5. Except as otherwise provided by Section 3 of this |
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6|act, Section 1 of this act shall become effective immediately upon |
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7|signature by the Governor or as otherwise provided by Section 58 of |
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8|Article V of the Oklahoma Constitution. |
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9| SECTION 6. Except as otherwise provided by Section 4 of this |
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10|act, Section 2 of this act shall become effective July 1, 2024. |
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11| SECTION 7. It being immediately necessary for the preservation |
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12|of the public peace, health or safety, an emergency is hereby |
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13|declared to exist, by reason whereof this act shall take effect and |
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14|be in full force from and after its passage and approval. |
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15| |
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16|COMMITTEE REPORT BY: COMMITTEE ON RULES, dated 04/15/2024 - DO PASS, |
|As Amended and Coauthored. |
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