OK
Oklahoma Senate Bill SB66

Oklahoma 2022 Regular Session

Oklahoma Senate Bill SB66 Compare Versions

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28+ENGROSSED HOUSE AMENDME NTS
29+ TO
30+ENGROSSED SENATE BILL NO . 66 By: Haste of the Senate
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32+ and
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34+ Sims of the House
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236
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4-An Act
5-ENROLLED SENATE
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39+
40+An Act relating to insurance premium taxes; amending
41+36 O.S. 2011, Section 1115, as last amended by
42+Section 1, Chapter 271, O.S.L. 2017 ( 36 O.S. Supp.
43+2020, Section 1115), which relates to surplus lines
44+coverage; creating exemption for certain policies;
45+and providing an effective date
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50+AMENDMENT NO. 1. Page 1, Lines 7 through 9 1/2, strike the title to
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53+"[ insurance premium taxes – creating exemption for
54+certain policies – effective date ]"
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56+AMENDMENT NO. 2. Page 1, Line 12, strike the enacting clause
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83+Passed the House of Representatives the 12th day of April, 2021.
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89+Presiding Officer of the House of
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93+Passed the Senate the ____ day of __________, 2021.
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99+Presiding Officer of the Senate
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101+ENGR. S. B. NO. 66 Page 1 1
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126+ENGROSSED SENATE
6127 BILL NO. 66 By: Haste of the Senate
7128
8129 and
9130
10131 Sims of the House
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17138 An Act relating to insurance premium taxes; amending
18139 36 O.S. 2011, Section 1115, as la st amended by
19140 Section 1, Chapter 271, O.S.L. 2017 (36 O.S. Supp.
20141 2020, Section 1115), which relates to surplus lines
21142 coverage; creating exemption for certain policies;
22-and providing an effective date .
143+and providing an effective date
23144
24145
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27-SUBJECT: Insurance premium tax
28-
29148 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA :
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31149 SECTION 1. AMENDATORY 36 O.S. 2011, Section 1115, as
32150 last amended by Section 1, Chapter 271, O.S.L. 2017 (36 O.S. Supp.
33151 2020, Section 1115), is amended to read as follows:
34-
35152 Section 1115. A. Where Oklahoma is the home state of t he
36153 insured, every person licensed pursuant to Section 1106 of this
37154 title shall collect and pay as provided in this section a sum for
38155 premium tax based on the total gross premiums charged in connection
39156 with any broker-procured surplus lines insurance, less any return
40157 premiums, for surplus lines insurance sold to the Oklahoma home -
41158 state insureds by the surplus lines broker or licensee.
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43159 B. Where Oklahoma is the home state of the insured and the
44160 insurance covers properties, risks or exposures located or to be
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45187 performed both in and out of Oklahoma, the sum payable to the
46188 Oklahoma Insurance Commissioner shall be computed based on an amount
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48-ENR. S. B. NO. 66 Page 2
49189 equal to six percent (6%) of the total gross premiums whether the
50190 properties, risks or exposures are located or to be perform ed inside
51191 or outside Oklahoma. Any such unearned gross premium credited by
52192 the state to the surplus lines broker or licensee shall be returned
53193 to the policyholder by the broker or licensee. The surplus lines
54194 licensee or broker is prohibited from rebating , for any reason, any
55195 part of the tax.
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57196 C. Where Oklahoma is the home state of the insured, gross
58197 premiums charged for independently procured insurance, less any
59198 return premiums, are subject to a premium tax at the rate of six
60199 percent (6%) payable to the O klahoma Insurance Commissioner, whether
61200 the properties, risks or exposures are located or to be performed
62201 inside or outside Oklahoma.
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64202 D. The Insurance Commissioner is authorized, in the exercise of
65203 his or her sole discretion and judgment, to participate i n the
66204 Nonadmitted Insurance Multi -State Agreement or any other multistate
67205 agreement or compact with the same function and purpose for the
68206 function of collecting and disbursing to reciprocal states any funds
69207 collected pursuant to the Unauthorized Insurers a nd Surplus Lines
70208 Insurance Act applicable to other properties, risks or exposures
71209 located or to be performed outside of Oklahoma. Until such time as
72210 the Insurance Commissioner may, while not being required to, join
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73237 such multistate agreement or compact, pr emium taxes relating to
74238 Oklahoma home-state insureds shall continue to be paid and accounted
75239 for by nonadmitted insurers through their surplus lines licensees
76240 and brokers as provided in subsections A through C of this section.
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78241 E. When the surplus lines co verage of an Oklahoma home -state
79242 insured covers properties, risks or exposures located only in
80243 Oklahoma, the surplus lines licensee or broker or self -procuring
81244 insured shall pay the surplus lines premium tax payable on such
82245 Oklahoma-only risks solely to th e Oklahoma Insurance Commissioner.
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84246 F. Should the Insurance Commissioner exercise his or her sole
85247 discretion and judgment and decide to join the Nonadmitted Insurance
86248 Multi-State Agreement or any other multistate agreement or compact
87249 with the same function and purpose, the Insurance Commissioner is
88250 authorized in such event to establish a uniform, statewide rate of
89251 taxation applicable to lines of nonadmitted insurance. This rate
90252 shall encompass all existing rates of taxation, fees and assessments
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92-ENR. S. B. NO. 66 Page 3
93253 imposed by this state, pursuant to subsections A through C of this
94254 section and the Insurance Commissioner shall document the method by
95255 which the statewide rate is calculated. The Insurance Commissioner
96256 is authorized to receive any monies obtained as premium tax rec eived
97257 through any multistate agreement he or she may in the future in his
98258 or her discretion choose to join and then disburse such funds as
99259 provided by the Insurance Code and other applicable Oklahoma law.
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101286 G. Should the Insurance Commissioner exercise his or her sole
102287 discretion and decide to join the Nonadmitted Insurance Multi -State
103288 Agreement or any other multistate agreement or compact with the same
104289 function and purpose, the Insurance Commissioner is authorized in
105290 such circumstances to utilize or adopt an y allocation schedule
106291 included in the Nonadmitted Insurance Multi -State Agreement or any
107292 other multistate agreement or compact the Insurance Commissioner may
108293 enter in the exercise of his or her sole discretion and judgment
109294 which schedule has the function a nd purpose of allocating risk and
110295 computing the tax due on the portion of premium attributable to each
111296 risk classification and to each state where properties, risks or
112297 exposures are located.
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114298 H. Policies sold to federally recognized Indian tribes shall be
115299 reported as provided in Section 1107 of this title; however, these
116300 policies shall be exempt from the surplus line premium tax to the
117301 extent that the Insurance Commissioner can identify that coverage is
118302 for risks which are wholly owned by a tribe and locate d within
119303 Indian Country, as defined in Section 1151 of Title 18 of the United
120304 States Code.
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122305 I. The surplus line premium tax on insurance on motor transit
123306 operations conducted between this and other states shall be paid on
124307 the total premium charged on all s urplus line insurance less:
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126334 1. The portion of the premium charged for operations in other
127335 states taxing the premium of an insured where Oklahoma is the home
128336 state; or
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130337 2. The premium for operations outside of this state of an
131338 insured maintaining its headq uarters office outside of this state
132339 and branch office in this state.
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136340 J. Flood insurance policies where Oklahoma is the home state of
137341 the insured and the insurance covers properties, risks , or exposures
138342 located in Oklahoma shall be exempt from the surplus line premium
139343 tax.
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141344 K. Policies sold to any city or town in this state,
142345 incorporated pursuant to law, or to any school district, as defined
143346 in Section 1-108 of Title 70 of the Oklahoma Statutes, shall be
144347 exempt from the surplus lines premium tax.
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146348 SECTION 2. This act shall become effective November 1, 2021.
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150-Passed the Senate the 19th day of May, 2021.
375+Passed the Senate the 1st day of March, 2021.
151376
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154379 Presiding Officer of the Senate
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156381
157-Passed the House of Representatives the 25th day of May, 2021.
382+Passed the House of Representatives the ____ day of __________,
383+2021.
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161387 Presiding Officer of the Ho use
162388 of Representatives
163389
164-OFFICE OF THE GOVERNOR
165-Received by the Office of the Governor this _______ _____________
166-day of _________________ __, 20_______, at _______ o'clock _______ M.
167-By: _______________________________ __
168-Approved by the Governor of the State of Oklahoma this _____ ____
169-day of ___________________, 20_______, at _______ o'clock _______ M.
170390
171- _________________________________
172- Governor of the State of Oklahoma
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174-
175-OFFICE OF THE SECRETARY OF STATE
176-Received by the Office of the Secretary of State this _______ ___
177-day of __________________, 20 _______, at _______ o'clock _______ M.
178-By: _______________________________ __