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STATE OF OKLAHOMA
1st Session of the 58th Legislature (2021)
SENATE BILL 604 By: Rader
AS INTRODUCED
An Act relating to the Self-insurance Guaranty Fund;
amending Section 98, Chapter 208, O.S.L. 2013, as
last amended by Section 1, Chapter 164, O.S.L. 2019
(85A O.S. Supp. 2020, Section 98), which relates to
funds to be transferred to Self -insurance Guaranty
Fund; removing certain Tax Commission notifi cation
requirement; and providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY Section 98, Chapter 208, O.S.L.
2013, as last amended by Section 1, Chapter 164, O.S.L. 2019 (85A
O.S. Supp. 2020, Section 98), i s amended to read as follows:
Section 98. The Self-insurance Guaranty Fund shall be derived
from the following sources:
1. Any unexpended funds , including interest thereon, held by
the State Treasurer in the Workers ’ Compensation Self-insurance
Guaranty Fund transferred to the Self -insurance Guaranty Fun d as
provided in Section 124 of this title;
2. In the event the net fund balance falls below Seven Hundred
Fifty Thousand Dollars ($750,000.00) , the Workers’ Compensation
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Commission shall make an assessme nt against each private self -
insurer and group self -insurance association based on an assessment
rate to be determined by the commissioners, not exceeding two
percent (2%) per annum of actual pai d losses of the self -insurer
during the preceding calendar ye ar, payable to the Tax Commission
for deposit to the fund. The assessment against private self -
insurers shall be determined using a rate equal to the proportion
that the deficiency in the fund a ttributable to private self -
insurers bears to the actual paid losses of all private self -
insurers for the year p eriod of January 1 through December 31
preceding the assessment. The assessment against group self -
insurance associations shall be determined u sing a rate equal to the
proportion that the deficiency in ex cess of the surplus of the Group
Self-Insurance Association Guaranty Fund at the date of the transfer
attributable to group self -insurance associations bears to the
actual paid losses of all grou p self-insurance associations
cumulatively for any calendar y ear preceding the assessment. Each
self-insurer shall provide the Workers ’ Compensation Commission with
such information as the Commission may determine is necessary to
effectuate the purposes o f this paragraph. For purposes of t his
paragraph, “actual paid losses” means all medical and indemnity
payments, including temporary disability, permanent disability, and
death benefits, and excluding loss adjustment expenses and reserves.
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a. The assessment shall be paid within thirty (30)
calendar days after the d ate the commissioners notify
the self-insurer of the assessment.
b. A private employer or group self -insurance association
which ceases to be a self -insurer shall remain liable
for any and all assessments of the self -insurer as
provided in this paragraph b ased on actual paid losses
for the calendar year pe riod preceding the assessment.
c. Failure of a self-insurer to pay, or timely pay, an
assessment required by this paragraph, or to report
payment of the same to the Commission with in ten (10)
days of payment, shall be grounds for revocation by
the Commission of the self-insurer’s permit to self-
insure in this state, after notice and hearing. A
former self-insurer failing to make payments required
by this paragraph promptly and corr ectly, or failing
to report payment of the same to the Commission within
ten (10) days of payment, shall be subject to
administrative penalties as allowed by law , including,
but not limited to, a fine in the amount of Fiv e
Hundred Dollars ($500.00) or an am ount equal to one
percent (1%) of the unpaid amount, whichever is
greater, to be paid and deposited to the credit of the
Workers’ Compensation Commission Revolving Fund
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created in Section 28.1 of this title. It shall be
the duty of the Tax Commission to c ollect the
assessment provided for in this paragraph. The Tax
Commission is authorized to bring an action for
recovery of any delinquent or unpaid assessments, and
may enforce payment of the assessment by proceeding in
accordance with Section 79 of this t itle.
d. An impaired self-insurer shall be exempt from
assessments beginnin g on the date of the Commission ’s
designation until the Commission determines the self -
insurer is no longer impaired .
e. The Tax Commission shall determine the fund balance as
of March 1 and September 1 of each year, and when
otherwise requested by the Wor kers’ Compensation
Commission, and shall advise the Workers ’ Compensation
Commission in writing within thirty (30) days of each
such determination;
3. Any interest accruing on moni es paid into the fund; a nd
4. Monies transferred pursuant to Section 99 of this title.
SECTION 2. This act shall become effective November 1, 2021.
58-1-1143 QD 1/20/2021 10:31:15 PM