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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
SENATE BILL 1069 By: Montgomery
AS INTRODUCED
An Act relating to investment of funds; amending 36
O.S. 2021, Section 1601, which relates to
investments; expanding application of article to
include certain funds and compan y; amending 85A O.S.
2021, Sections 28 and 31, which relate to the
Multiple Injury Trust Fund and the Self -insurance
Guaranty Fund; providing for investment of f unds; and
providing an effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 1601, is
amended to read as follows:
Section 1601. Except as to Sections 1624 and 1625 and
subdivision subsection A of Section 1606 hereof, this article
applies to domestic insurers , Compsource Mutual Insurance Company,
the Multiple Injury Trust Fund, and the Self -insurance Guaranty F und
only. This article shall apply to domest ic title insurers except as
provided in Article 50 (Ti tle Insurers).
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SECTION 2. AMENDATORY 85A O.S. 2021, Section 28, is
amended to read as follows:
Section 28. A. There are established within the Office of the
State Treasurer two separate funds:
1. The “Multiple Injury Trust Fund ”; and
2. The “Self-insurance Guaranty Fund ”.
B. Except as provided in Section 97 of this title, no money
shall be appropriated from these funds for any purpose exce pt for
the use and benefit, or at t he direction, of the Oklahoma Workers ’
Compensation Commission.
C. Except as provided in Section 96 of this title, al l funds
established under this section shall be administered, disbursed, and
invested under the directi on of the Commission and the State
Treasurer. Funds shall be invested by the S tate Treasurer pursuant
to Section 1601 et seq. of Title 36 of the Oklahoma Statutes.
D. All incomes derived through investment of the Multiple
Injury Trust Fund shall be credi ted as investment income to the fund
that participated in the investment.
E. No monies deposited to these funds shall be subject to any
deduction, tax, levy, or any other type of assessment.
F. If the balance in the Multiple Injury Trust Fund becomes
insufficient to fully compensate those employees to whom it is
obligated, payment shall be s uspended until such time as the
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Multiple Injury Trust Fund is capable of meeting its obligations,
paying all arrearages, and restoring normal benefit payments.
G. On the effective maturity dates of each investment, the
investment shall be transferred to t he State Treasurer for deposit
into the Multiple Injury Trust Fund created in this section.
H. Unless provided otherwise in the Administrative Workers ’
Compensation Act, all fines and penalties assessed under the
Administrative Workers ’ Compensation Act shall be deposited into the
Workers’ Compensation Commission Revolving Fund. Any monies
remaining in the Workers ’ Compensation Fund on June 30, 2015, shall
be transferred to the Workers’ Compensation Commission Revolving
Fund.
SECTION 3. AMENDATORY 85A O.S. 2021, Section 31, is
amended to read as follows:
Section 31. A. The Multiple Injury Trust Fund shall be derived
from the following additi onal sources:
1. As soon as practi cable after January 1 of each year, the
commissioners of the Workers’ Compensation Commission shall
establish an assessment r ate applicable to each mutua l or
interinsurance association, stock company, or other insurance
carrier writing workers ’ compensation insurance in this state, each
employer carrying its own risk, and each group self -insurance
association, for amounts for pu rposes of computing the asse ssment
authorized by this section necessary to pay the annual obliga tions
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of the Multiple Injury Trust Fund determined on or before December
31 of each year by the Multiple Injury Trust Fund (MITF) Director,
provided for in subs ection Q of this section, to be outstanding for
the next calendar year. The rate shall be equal for all parties
required to pay the assessment. The Board of Directors for
CompSource Mutual Insurance Company shall have the power to
disapprove the rate est ablished by the MITF Directo r until the
Multiple Injury Trust Fund repays in full the amount due on any loan
from CompSource Mutual Insurance Company or its predecessor
CompSource Oklahoma. If the MITF Director and CompSource Mutual
Insurance Company have not agreed on the assessmen t rate within
thirty (30) days, the Workers ’ Compensation Commission shall set an
assessment rate suffi cient to cover all foreseeable obligations of
the Multiple Injury Trust Fund, including interest and prin cipal
owed by the fund on any loan;
2. The assessments shall be paid to the Oklahoma Tax
Commission. Insurance car riers, self-insurers, and group sel f-
insurance associations shall pay the assessment in f our equal
installments not later than the fifteenth day of the month following
the close of each qu arter of the calendar year of the assessment.
Assessments shall be determined based upon gross direct written
premiums, normal premiums , or actual paid losses of the paying
party, as applicable, during the ca lendar quarter for w hich the
assessment is due. Assessments are expressly conditioned and
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contingent upon preserva tion of the rebate equal to two -thirds (2/3)
of the amount of the assessment actually pai d pursuant to Sections
6101 and 6102 of Title 68 of the Oklahoma Statute s. Uninsured
employers shall pay the assessment not later than the fifteenth day
of the month following the close of each quarter of the calendar
year of the assessment. For purposes of this section, “uninsured
employer” means an employer required by law to carry workers’
compensation insurance but who has failed or neglected to do so.
a. The assessment authorized in this section s hall be
determined using a rate equal to the proportio n that
the sum of the outstanding obligations of the Multiple
Injury Trust Fund as determined pursua nt to paragraph
1 of this subsection bears to the combined gross
direct written premiums of all such i nsurers; all
actual paid losses of all individual self -insureds;
and the normal premium of all group self -insurance
associations, for the year period from January 1 to
December 31 preceding the assessment.
b. For purposes of this subsection:
(1) “actual paid losses” means all medical and
indemnity payments, i ncluding temporary
disability, permanent disability, and death
benefits, and excluding loss adjustme nt expenses
and reserves, and
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(2) “normal premium” means a standard premium less
any discounts;
3. By April 15 of each year, the Insurance Commissioner, th e
MITF Director and each individual and group self -insured shall
provide the Workers’ Compensation Commission with such information
as the Commission may determine is necessary to effectuate the
purposes of this section;
4. Each mutual or interinsurance a ssociation, stock company, or
other insurance carrie r writing workers’ compensation insurance in
this state, and each employer carrying its own risk, including each
group self-insurance association, sha ll be notified by the Workers ’
Compensation Commission in writing of the rate for the assessment on
or before May 1 of each year in which a rate is determ ined. The
rate determined by the Commission shall be in effect for four
calendar quarters beginning J uly 1 following determination by the
Commission. The Commission may amend its previously determined rate
on or after July 1, 2019. Parties affected by t he amended rate
shall be notified by the Commission in writing as i s reasonable;
5. a. No mutual or interinsurance association, stock
company, or other insurance carrier writing workers’
compensation insuranc e in this state may be assessed
in any year an amount greater than seven percent (7%)
of the gross direct written p remiums of that insurer.
The authorization for a maximum seven-percent
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assessment shall exist until fiscal year 2027 , then
revert back to six percent (6%) thereafter.
b. No employer carrying its own risk may be assessed in
any year an amount greater than seven percent (7%) of
the total actual paid losses of that individual self-
insured. The authorization for a maximum seven -
percent assessment shall exist until fiscal year 2027,
then revert back to six percent (6%) thereafter.
c. No group self-insurance association may be asses sed in
any year an amount greater than seven percent (7%) of
the normal premium of that group self -insurance
association. The authorization for a maximum seven -
percent assessment shall exist until fiscal year 2027,
then revert back to six percent (6%) thereafter;
6. The Oklahoma Tax Commission shall assess and collect f rom
any uninsured employer a temporary assessment at the rate of five
percent (5%) of the total compensation for permanent total
disability awards, permanent partial disability awards and death
benefits paid out during each quarter of the calendar year by
employers. The assessment shall be paid in four equ al installments
not later than the fifteenth day of the month following the close of
the calendar year of the assessments. For the purpose of this
paragraph, “uninsured employer” means an employer requir ed by law to
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secure its workers’ compensation obligations but who has failed or
neglected to do so;
7. For injuries occur ring on or after July 1, 2019, the
Oklahoma Tax Commission shall assess and coll ect from claimants a
temporary assessment as follows:
a. if an award has been made by the Workers ’ Compensation
Court of Existing Claims or the Workers ’ Compensation
Commission for permanent partial disability o r
permanent total disability, or if a Comprom ise
Settlement or Joint Petition has been approved, th e
employer or insurance carrier shall pay to such
employee the amount of the award less the assessment.
The assessment shall be paid to the Oklahoma Tax
Commission no later than the fifteenth day of th e
month following the close of each quarter of the
calendar year in which compensation is paid or became
payable, and
b. in making and entering awards for compensation for
permanent total disability or permanent partial
disability, three percent (3%) of th e total award or
settlement shall be paid to the Tax C ommission no
later than the fifteenth day of the mon th following
the close of each quarter of the calendar year in
which compensation is paid or became payab le. The
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total amount of the deduction so det ermined and fixed
shall have the same force and effect as an award for
compensation, and all provisions re lating to the
collection of awards shall apply to such judgments;
and
8. If the revenue in any one (1) y ear is insufficient to make
all necessary payments for obligations of the Multiple Injury Trust
Fund and for the allocations provided for in subsection J of this
section, the unpaid portion shall be paid as soon therea fter as
funds become available.
B. The Multiple Injury Trust Fund is hereby author ized to
receive and expend monies appropriated by the Legislature.
C. It shall be the duty of the Tax Com mission to collect the
payments provided for in this act. The Ta x Commission is hereby
authorized to bring an action for the recovery of any delinque nt or
unpaid payments required in this section.
D. Any mutual or interinsurance association, stock compan y, or
other insurance company, which is subject to regulation by the
Insurance Commissioner, failing to m ake payments required in this
act promptly and correctly, and failing to report payment of the
same to the Insurance Commissioner within ten (10) days of payment
shall be subject to administrative penalties as allow ed by law,
including but not limited to a fine in the amount of Five Hundred
Dollars ($500.00) or an amount equal to one percent (1%) of the
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unpaid amount, whichever is greater, to be paid to the Insurance
Commissioner.
E. Any employer carrying its own r isk, or group self-insurance
association failing to make payments required in this act promptly
and correctly, and failing to report payment of the same to the
Commission within ten (10) days o f payment shall be subject to
administrative penalties as allow ed by law, including but not
limited to a fine in the amount of Five Hundred Dollars ($ 500.00) or
an amount equal to one percent (1%) of the unpaid amount, whichever
is greater, to be paid to t he Commission.
F. 1. On or before the first day of April of each year, the
State Treasurer shall advise the Commission, the MITF Director and
the Tax Commission of the amount of money held as of March 1 of that
year by the State Treasurer to the credit o f the Multiple Injury
Trust Fund. On or before the first day of November of each year,
the State Treasurer shall advise the Commission, the MITF Dire ctor
and the Tax Commission of the amount of money hel d as of October 1
of that year by the State Treasure r to the credit of the Multiple
Injury Trust Fund.
2. Until such time as the Multiple Injury Trust Fund fully
satisfies any loan obligation payable t o CompSource Mutual Insurance
Company or its predecess or CompSource Oklahoma, the State Treasurer
shall:
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a. advise the Chief Executive Officer of CompSource
Mutual Insurance Company on or before the first day of
April of the money held as of March 1 of tha t year by
the State Treasurer to the credit of the Mul tiple
Injury Trust Fund, and
b. advise the Chief Exe cutive Officer of CompSource
Mutual Insurance Company on or before the first day of
November of the money held as of October 1 of that
year by the State Treasurer to the credit of the
Multiple Injury Trus t Fund.
G. Eighty percent (80%) of all sums held by the State Treasurer
to the credit of the Multiple Injury Trust Fund may by order of the
MITF Director be invested in or loaned on the pledge of any o f the
securities in which a state bank may invest the monies deposited
therein by the State Treasurer; or may be deposited in state or
national banks or trust compa nies upon insured time deposit bearing
interest at a rate no less than currently being paid upon insured
savings accounts in the institutions ; or may be invested pursuant to
Section 1601 et seq. of Title 36 of the Oklahoma Statutes . As used
in this section, “insured” means insurance as provided by an agency
of the federal government. All such securities or evidence of
indebtedness shall b e placed in the hands of the State Treasurer,
who shall be the custodian thereof, who shall collect the principal
and interest when due, and pay the sa me into the Multiple Inju ry
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Trust Fund. The State Treasur er shall pay by vouchers drawn on the
Multiple Injury Trust Fund for the making of such investments, when
signed by the MITF Director, upon delivery of such securi ties or
evidence of indebtedness to the State Treasurer. Th e MITF Director
may sell any of such securities, the proceeds thereof to be paid
over to the State Treasurer for the Multiple Injury Trust Fund.
H. The refund provisions of Sections 227 through 2 29 of Title
68 of the Oklahoma Stat utes shall be applicable to any payments made
to the Multiple Injury Trust Fund. Refunds shall be paid f rom and
out of the Multiple Injury Trust Fund.
I. Beginning July 1, 2019, One Million Dollars ($1,000,000.00)
of the funds in the Multiple Injury Tru st Fund shall be transferr ed
annually on July 1 to the Ok lahoma Department of Labor Revolving
Fund exclusively for the operation and administration of the
Oklahoma Occupational Health and Safety Standards Act and for other
necessary expenses of the Departm ent of Labor.
J. Except for the monies provided for in subsection I of this
section, the Tax Commission s hall pay, monthly, to the State
Treasurer to the credit of the Multiple Injury Trust Fund all monies
collected pursuant to the provisions of this sec tion. The State
Treasurer shall pay out of the Multiple Injury Trust Fund only upon
the order and directio n of the Workers’ Compensation Commission
acting under the provisions hereof.
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K. The Commission shall promulgate ru les as the Commission
deems necessary to effectuate the prov isions of this section.
L. The Insurance Commissioner shall promulgate rules re lating
to insurers as defined in Title 36 of the Oklahoma Statutes, as the
Insurance Commissioner deems necessary to effectuate the provisions
of this section.
M. The MITF Director shall have authority to fulfill all
payment obligations of the Multiple In jury Trust Fund.
N. The Multiple Injury Trust Fund may enter into an agreement
with any reinsurer licensed to sell reinsurance by the Insurance
Commissioner pursuant to a comp etitive process administer ed by the
Director of Central Purchasing in the Office of Management and
Enterprise Services.
O. Any dividend, rebate, or other distribution, payable by
CompSource Mutual Insurance Company or any o ther workers’
compensation insurance carrier, to a state agency policyholder shall
be paid to the State Treasure r, and shall be credited as follows:
1. In the event of failure of the Multiple Injury Trust Fund to
meet all lawful obligations, the monies s hall be credited to the
Multiple Injury Trust Fund and sh all be used by the Multiple Injury
Trust Fund to meet al l lawful obligations of the Multiple Injury
Trust Fund; and
2. Otherwise, all future dividends made by any workers ’
compensation insurance ca rrier, on behalf of state agencies , shall
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be deposited to the credit of the General Revenue Fund of the State
Treasury.
P. The Workers’ Compensation Commission shall be charged with
the administration and protection of the Multip le Injury Trust Fund.
Q. The person serving as the Administ rator of the Multiple
Injury Trust Fund on the date of passage and approval of t his act
shall serve as the initial MITF Director, provided such person is
serving as the Administrator of the Multip le Injury Trust Fund on
the effective date of this act. The MITF Director shall be
appointed by and serve at the pleasure of the Governor.
R. Any party interested shall have a right to bring a
proceeding in the Supreme Court to review an award of the Wor kers’
Compensation Commission affecting such Multiple Injury Trust Fund,
in the same manner as is provided by law with reference to other
awards by the Commission.
S. The State Treasurer shall allocate to the Commission out of
the Multiple Injury Trust Fu nd sufficient funds fo r administration
expenses thereof in a mounts to be fixed and approved by the Director
for the Multiple Injury Trust Fu nd, unless rejected by the Workers’
Compensation Commission.
T. On or after July 1, 2019, accrued and unpaid compen sation
from the Multiple Injury Trust Fund shall bear simple interest only
at the percentage rate applicable under Section 727.1 of Title 12 of
the Oklahoma Statutes from the day an award is made by the Workers ’
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Compensation Court of Existing Claims or the Workers’ Compensation
Commission.
SECTION 4. This act shall become effective November 1, 2023.
59-1-498 QD 1/19/2023 1:34:15 PM