Oklahoma Senate Bill SB1454

Oklahoma 2026 Regular Session

• Introduced: 2/2/26
• Refer: 2/3/26

Caption

State government; prohibiting state agencies from charging for certain cost. Effective date. Emergency.

Summary

SB1454 creates a new section of Oklahoma law that limits how state agencies may bill one another for shared services. It defines “state agency” broadly to include boards, commissions, departments, authorities, bureaus, offices, and other entities subject to the Administrative Procedures Act, and defines “cost of labor” as a lump sum or hourly charge for an employee’s expertise, time, and skill in performing a duty. Under the bill, when one state agency performs a service for or on behalf of another state agency, the agency providing the service generally may not charge the receiving agency for labor costs associated with that service. The bill includes a specific exception for services performed by employees of the Office of the State Auditor and Inspector, who are not subject to the prohibition. The act is set to take effect July 1, 2026, but also contains an emergency clause making it effective immediately upon passage and approval.

Impact

The bill would amend state government fiscal practices by restricting interagency billing for labor, likely reducing or eliminating certain internal charges between agencies and shifting how shared services are funded within state government. It would be codified as Section 85.80 of Title 74 of the Oklahoma Statutes and would apply broadly to state agencies, with the express carve-out for the State Auditor and Inspector’s office.

Sentiment

There is limited recorded public debate in the available materials, and no committee transcripts or votes are provided. Based on the bill’s referral to the Retirement and Government Resources Committee and then the Appropriations Committee, the measure appears to be treated as a government operations and budgeting issue rather than a controversial policy change. The absence of recorded opposition or amendment history suggests the bill was at least procedurally acceptable at the time of the available record.

Contention

The main policy question is whether state agencies should be allowed to recover labor costs when providing services to other agencies. Supporters would likely view the bill as a way to reduce internal government charges, improve transparency, and prevent agencies from passing labor expenses around the state budget. Potential concerns could come from agencies that rely on interagency billing to recoup staffing costs or from offices that may need the flexibility to charge for specialized work. The only explicit statutory exception is for the Office of the State Auditor and Inspector, indicating that office’s services are treated differently from other agencies.