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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 58th Legislature (2022)
HOUSE BILL 3076 By: Culver
AS INTRODUCED
An Act relating to settlements involving minors;
creating the Oklahoma Statutory Threshold s for
Settlements Involving Mi nors Act of 2022; prescribing
procedures for settling claims involving minors;
clarifying when a person with legal custody may enter
into a settlement agreement on behalf of a minor;
directing attorney representing mi nor to maintain
records; establishing how monies payable under a
settlement agreement must be paid ; creating
exemptions for liability; providing for codification ;
and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 86 of Title 12, unless there is
created a duplication in numbering, reads as follows:
This act shall be known and may be cited as the "Oklahoma
Statutory Thresholds for Settlements Involving Minors Act of 2022".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 86.1 of Title 12, unless there
is created a duplication in numbering, reads as follows:
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A. A person having legal custody of a minor may enter into a
settlement agreement with a p arty against whom the minor has a claim
if:
1. A conservator or guardian a d litem has not been appointed
for the minor;
2. The total amount of the settlement, not including
reimbursement of medical expenses, liens, reasonable attorney fees ,
and costs of suit, is Twenty-five Thousand Dollars ($25,000.00) or
less if paid in cash, check, draft, or if paid by the purchase of a
premium for an annuity;
3. The monies paid under the settlement agreement will be paid
as set forth in subsections C and D of this section; and
4. The person entering into the settlement agreement on behalf
of the minor completes an affidavit or verified statement that
attests that the person has made a reasonable inquiry and that:
a. to the best of the person 's knowledge, the minor will
be fully compensated by the settlement , or
b. there is no practical way to obtain additional amounts
from the party entering into the settlement agreeme nt
with the minor.
B. The attorney representing the person entering into the
settlement agreement on behalf of the minor, if any, shall maintain
the affidavit or verified statement completed under paragraph 4 of
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subsection A of this section in the attorne y file for two (2) years
after the minor attains eighteen (18) years of age.
C. The monies payable under the settlement agreement must be
paid as follows:
1. If the minor or person entering into the settlement
agreement on behalf of the minor is represen ted by an attorney and
the settlement is paid in cash, by check, draft, or by direct
deposit into the attorney trust account maintained pursuant to the
Rules of Professional Conduct applicable to management of client
trust accounts. The attorney shall deposit the monies received on
behalf of the minor directly into a federally insured savings
account that earns interest in the sole name of the minor, and
provide notice of the deposit to the minor and the person entering
into the settlement agreement on behalf of the minor. Notice shall
be delivered by personal service or first-class mail;
2. If the minor or guardian is not represented by an attorney
and the settlement is paid :
a. in cash, or by check or draft, the monies shall be
deposited by the guardian directly into a federally
insured savings account that earns interest, in the
sole name of the minor , or
b. by direct deposit, the minor or guardian shall provide
the person or entity with whom the minor has settled
the claim with the necessary information sufficient to
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complete an electronic transfer of settlement funds
within ten (10) business day s of the settlement into a
federally insured savings account that earns interest,
in the sole name of the minor . The notice of the
deposit to the minor of the electronic transfer of
funds shall be delivered by personal service or first-
class mail to the minor and guardian by the person or
entity against whom the minor has a claim that settles
the claim with the minor;
3. If paid by purchase of an annuit y, by direct payment to the
provider of the annuity with the minor designated as the sole
beneficiary of the annuity; or
4. If the minor is a ward of the state and the settlement is
paid in cash, or by check or draft directly into a trust account, or
subaccount of a trust account, established by the department
responsible for wards of the state, or similar state mechanism for
the purpose of receiving monies payable to the ward under the
settlement agreement and that earns interest for th e benefit of the
ward.
D. The monies in the minor's savings account, trust account, or
trust subaccount established under subsection C of this section may
not be withdrawn, removed, paid out, or transferred to any person,
including the minor, except as follows:
1. Pursuant to court order;
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2. Upon the minor's attainment of eighteen (18) years of age;
or
3. Upon the minor's death.
E. If a settlement agreement is entered into in compliance with
subsection A of this section, the signature of the person entering
into the settlement agreement on behalf of the minor is binding on
the minor without the need for further court approval or revi ew and
has the same force and effect as if the minor were a competent adult
entering into the settlement agreement.
F. A person acting in good faith on behalf of a minor under
this section is not liable to the minor for the monies paid in
settlement or for any other claim arising out of the settlement.
G. Any person or entity against whom a minor has a claim that
settles the claim with a minor i n good faith under this section
shall not be liable to the minor for any claims arising from the
settlement of the claim.
SECTION 3. This act shall become effective November 1, 2022.
COMMITTEE REPORT BY: COMMITTEE ON JUDICIARY - CIVIL, dated
02/09/2022 - DO PASS.