OK
Oklahoma Senate Bill SB1069

Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB1069 Compare Versions

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28+ENGROSSED HOUSE AMENDME NT
29+ TO
30+ENGROSSED SENATE BILL NO . 1069 By: Montgomery of the Senate
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32+ and
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34+ Sneed of the House
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5-An Act
6-ENROLLED SENATE
7-BILL NO. 1069 By: Montgomery of the Senate
839
9- and
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11- Sneed and Deck of the House
40+[ investment of funds - effective date ]
1241
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15-An Act relating to insurance; amending 36 O.S. 2021,
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46+AMENDMENT NO. 1. Strike the title, enacting clause, and entire bill
47+and insert:
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52+"An Act relating to insurance; amending 36 O.S. 2021,
1653 Section 1901, as amended by Section 2, Chapter 119,
1754 O.S.L. 2022 (36 O.S. Supp. 2022, Section 1901), which
1855 relates to rehabilitat ion and liquidation; updating
1956 statutory language; adding and modif ying definitions;
2057 allowing certain persons and entities to exercise
2158 certain contractual rights; establishing provisions
2259 relating to agreement and contract terminations;
2360 establishing requirem ents for insurance receivers;
2461 exempting certain persons or entitie s from
2562 provisions; providing for applicability of certain
2663 provisions; providing for codification; and providing
2764 an effective date.
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31-SUBJECT: Insurance
32-
3368 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKL AHOMA:
34-
3569 SECTION 1. AMENDATORY 36 O.S. 20 21, Section 1901, as
3670 amended by Section 2, Chapter 119, O.S.L. 2022 (36 O.S. Supp. 2022,
3771 Section 1901), is amended to read as follows:
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3998 Section 1901. For the purpose of Article 19 of the Oklahoma
4099 Insurance Code:
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42100 1. "Impairment" or "insolvency." The "insolvency" means the
43101 capital of a stock insurer, or limited stock life, accident and
44102 health insurer, the net assets of a Lloyds association, or the
45103 surplus of a mutual or reciprocal insurer, shal l be deemed to be
46104 impaired and the insurer shall be deemed to be insolvent, when such
47105 insurer shall not be possessed of assets at least equal to all
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50106 liabilities and required reserves together with its total issued and
51107 outstanding capital stock if a stock i nsurer, the net assets if a
52108 Lloyds association, or the minimum su rplus if a mutual or reciprocal
53109 insurer required by this code Code to be maintained for the kind or
54110 kinds of insurance it is then authorized to transact;
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56111 2. "Insurer" means any person, firm, corporation, health
57112 maintenance organizations, association or ag gregation of persons
58113 doing an insurance business and subject to the insurance supervisory
59114 authority of, or to liquidation, rehabilitation, reorganization or
60115 conservation by the Insurance Comm issioner or the equivalent
61116 insurance supervisory official of anot her state;
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63117 3. "Delinquency proceeding" means any proceeding commenced
64118 against an insurer pursuant to this article for the purpose of
65119 liquidating, rehabilitating, reorganizing or conserving s uch
66120 insurer;
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68147 4. "State" means any state of the United States and also the
69148 District of Columbia, Alaska, Hawaii, and Puerto Rico;
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71149 5. "Foreign country" means territory not in any state;
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73150 6. "Domiciliary state" means the state in which an insurer is
74151 incorporated or organized, or in the case of an insurer incorporated
75152 or organized in a foreign country, the state in which such insurer,
76153 having become authorized to do business in such state, has at the
77154 commencement of delinquency proceedings, the largest amount of its
78155 assets held in trust and assets held on deposit for the be nefit of
79156 its policyholders or policyholders and creditors in the United
80157 States, and any such insurer is deemed to be domiciled in such
81158 state;
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83159 7. "Ancillary state" means any state other than a domiciliary
84160 state;
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86161 8. "Reciprocal state" means any state other than this state
87162 that has enacted a law that sets forth a scheme for the
88163 administration of an insurer in receivership by the state 's
89164 Insurance Commissioner insurance commissioner or comparable
90165 insurance regulatory official;
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94166 9. "General assets" means all property, real, personal or
95167 otherwise, not specifically mortgaged, pledged, deposited or
96168 otherwise encumbered for the security or benefit of specified
97169 persons or a limited class or classes of persons, and as to such
98170 specifically encumbered property the term includes all such property
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99197 or its proceeds in excess of the amount necessary to discharge the
100198 sum or sums secured thereby. Assets held in trust and assets held
101199 on deposit for the security o r benefit of all policyholders or all
102200 policyholders and creditors in the United States shall be deemed
103201 general assets;
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105202 10. "Preferred claim" means any claim with respect to which the
106203 law of the state or of the United States accords priority of
107204 payments from the general assets of the insurer;
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109205 11. "Special deposit claim " means any claim secured by a
110206 deposit made pursuant to statute for the security or benefit of a
111207 limited class or classes of persons, but not including any general
112208 assets;
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114209 12. "Secured claim" means any claim secured by mortgage, trust
115210 deed, pledge, deposi t as security, escrow, or otherwise, but not
116211 including special deposit claim or claims against general assets.
117212 The term also includes claims which more than four (4) months prior
118213 to the commencement of delinquency proceedings in the state of the
119214 insurer's domicile have become liens upon specific assets by reason
120215 of judicial process; and
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122216 13. "Receiver" means receiver, liquidator, rehabilitator, or
123217 conservator as the context may require ; and
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125218 14. "Qualified financial contract " means a commodity contract,
126219 forward contract, repurchase agreement, securities contract, swap
127220 agreement, and any similar agreement the Commissioner determines by
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128247 rule, regulation, resolution, or order to be a qualified fi nancial
129248 contract.
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131249 SECTION 2. NEW LAW A new section of law to be codified
132250 in the Oklahoma Statutes as Section 1926.1 of Title 36, unless there
133251 is created a duplication in numbering, reads as follows:
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135252 A. As used in this section:
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139253 1. "Actual direct compensatory damages " means normal and
140254 reasonable costs of cover or other reasonable measures of damages
141255 utilized in the derivatives, securities, or other market for the
142256 contract and agreement claims. Provided, actual direct compensatory
143257 damages shall not include punitive or exemplary damages , damages for
144258 lost profit or lost opportunity, or damages for pain and suffering;
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146259 2. "Business day" means a day other than a Saturday, Sunday, or
147260 any day on which either the New York Stock Exchange or t he Federal
148261 Reserve Bank of New York is closed;
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150262 3. "Contractual right" means any right set forth in a rule or
151263 bylaw of a derivatives clearing organization, a multilateral
152264 clearing organization, a national securities exchange, a national
153265 securities association, a securities clearing agency, a contract
154266 market designated under the federal Commodity Exchange Act, a
155267 derivatives transaction execution facility registered under the
156268 federal Commodity Exchange Act, or a board of trade or in a
157269 resolution of the govern ing board thereof and any right, whether or
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158296 not evidenced in writing, arising under statutory or common law, or
159297 under law merchant, or by reason of normal business practice; and
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161298 4. "Walkaway clause" means a provision in a netting agreement
162299 or a qualified financial contract which, after calculation of a
163300 value of a party's position or an amount due to or from one of the
164301 parties in accordance with its terms upon termination, liquidation,
165302 or acceleration of the netting agreement or qualified financial
166303 contract, either does not create a payment obligation of a pa rty or
167304 extinguishes a payment obligation of a party in whole or in part
168305 solely because of the party 's status as a non-defaulting party.
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170306 B. Notwithstanding any other provision of the Oklahoma
171307 Insurance Code, including any other provision permitting the
172308 modification of contracts, no person or entity shall be stayed or
173309 prohibited from exercising:
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175310 1. A contractual right to cause termination, liquidation,
176311 acceleration, or closeout of obligations under or in connection with
177312 any netting agreement or qualified fi nancial contract with an
178313 insurer because of:
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182314 a. the insolvency, financial condition, or default of the
183315 insurer at any time, provided the right is enforceable
184316 under applicable law other than the provision s of this
185317 act, or
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187318 b. the commencement of a formal delinquency pro ceeding
188319 under the provisions of this section;
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190346 2. Any right under a pledge, security, collateral,
191347 reimbursement, guarantee agreement or arrangement, any other similar
192348 security agreement or ar rangement, or other credit enhancement
193349 relating to one or more ne tting agreements or qualified financial
194350 contracts;
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196351 3. Subject to any provision of Section 1928 of Title 36 of the
197352 Oklahoma Statutes, any right to set off or net out any termination
198353 value, payment amount, or other transfer obligation arising under or
199354 in connection with one or more qualified financial contracts where
200355 the counterparty or its guarantor is organized under the laws of the
201356 United States or a state or a foreign jurisdiction approved by the
202357 Securities Valuation Office (SVO) of the National Associat ion of
203358 Insurance Commissioners (NAIC) as eligible for netting; or
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205359 4. If a counterparty to a master netting agreement or a
206360 qualified financial contract with an insurer subject to a proceeding
207361 under this section terminates, liquidates, closes out, or
208362 accelerates the agreement or contract, damages shall be measured as
209363 of the date or dates of termination, liquidation, closeout, or
210364 acceleration. The amount of a claim for damages shall be actual
211365 direct compensatory damages calculated in ac cordance with subsecti on
212366 G of this section.
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214367 C. 1. Upon termination of a netting agreement or qualified
215368 financial contract, the net or settlement amount, if any, owed by a
216369 non-defaulting party to an insurer again st which an application or
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217396 petition has been filed under this sec tion shall be transferred to
218397 or on the order of the receiver for the insurer, even if the insurer
219398 is the defaulting party, notwithstanding any walkaway clause in the
220399 netting agreement or qual ified financial contract.
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222400 2. Any limited two-way payment or first method provision in a
223401 netting agreement or qualified financial contract with an insurer
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226402 which has defaulted shall be deemed to be a full two -way payment or
227403 second method provision as agains t the defaulting insurer. Any such
228404 property or amount shall, exc ept to the extent it is subject to one
229405 or more secondary liens or encumbrances or rights of netting or
230406 setoff, be a general asset of the insurer.
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232407 D. In making any transfer of a netting agree ment or qualified
233408 financial contract of an insurer subject to a p roceeding under this
234409 section, the receiver shall either:
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236410 1. Transfer to one party, other than an insurer subject to a
237411 proceeding under this section, all netting agreements and qualified
238412 financial contracts between a counterparty or a ny affiliate of the
239413 counterparty and the insurer which is the subject of the proceeding,
240414 including:
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242415 a. all rights and obligations of each party under each
243416 netting agreement and qualified financial contract,
244417 and
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246418 b. all property, including any guarantees or other credit
247419 enhancement, securing any claims of each party under
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248446 each netting agreement and qualified financial
249447 contract; or
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251448 2. Transfer none of the netting agreements, qualified financial
252449 contracts, rights, obl igations, or property referred to in paragr aph
253450 1 of this subsection, with respect to the counterparty and any
254451 affiliate of the counterparty.
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256452 E. If a receiver for an insurer makes a transfer of one or more
257453 netting agreements or qualified financial contract s, then the
258454 receiver shall use its best eff orts to notify any per son who is
259455 party to the netting agreements or qualified financial contracts of
260456 the transfer by twelve o 'clock p.m. on the business day following
261457 the transfer.
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263458 F. Notwithstanding any other pr ovision of the Oklahoma
264459 Insurance Code, a receiver shall not avoi d a transfer of money or
265460 other property arising under or in connection with a netting
266461 agreement, qualified financial contract, or any pledge, security,
267462 collateral or guarantee agreement, or a ny other similar security
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270463 arrangement or credit support document relating to a netting
271464 agreement or qualified financial contract which is made before the
272465 commencement of a formal delinquency proceeding under this Code.
273466 Provided, however, a transfer may be avoided under Section 1926 of
274467 Title 36 of the Oklahoma Statutes if the transfer was made with
275468 actual intent to hinder, delay, or defraud the insurer, a receiver
276469 appointed for the insurer, or existing or future creditors.
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278496 G. 1. In exercising the rights o f disaffirmance or repudiation
279497 of a receiver with respect to any netting agreement or qualified
280498 financial contract to which an insurer is a party, the receiver for
281499 the insurer shall either:
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283500 a. disaffirm or repudiate all netting agreements and
284501 qualified financial contracts between a counterparty
285502 or any affiliate of the c ounterparty and the insurer
286503 which is the subject of the proceeding, or
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288504 b. disaffirm or repudiate none of the netting agreements
289505 and qualified financial contracts referred to in
290506 subparagraph a of this paragraph with respect to the
291507 person or any affiliate of the person or entity.
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293508 2. Notwithstanding any other provision of this Code, any claim
294509 of a counterparty against the estate arising from the receiver 's
295510 disaffirmance or repudiation of a netti ng agreement or qualified
296511 financial contract which has not been p reviously affirmed in the
297512 liquidation or immediately preceding a conservation or
298513 rehabilitation case shall be determined and shall be allowed or
299514 disallowed as if the claim had arisen before t he date of the filing
300515 of the petition for l iquidation or, if a co nservation or
301516 rehabilitation proceeding is converted to a liquidation proceeding,
302517 as if the claim had arisen before the date of the filing of the
303518 petition for conservation or rehabilitation. The amount of the
304519 claim shall be the actua l direct compensatory damages determined as
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305546 of the date of the disaffirmance or repudiation of the netting
306547 agreement or qualified financial contract.
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308548 H. The provisions of this section shall not apply to persons o r
309549 entities who are affiliates of the insure r which is the subject of
310550 the proceeding.
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314551 I. All rights of counterparties under this Code shall apply to
315552 netting agreements and qualified financial contracts entered into on
316553 behalf of the general account or separ ate accounts if the assets of
317554 each separate account are available only to counterparties to
318555 netting agreements and qualified financial contracts entered into on
319556 behalf of the separate account.
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321-SECTION 3. This act shall become effective Nov ember 1, 2023.
557+SECTION 3. This act shall become effective Nov ember 1, 2023."
558+Passed the House of Representatives the 26th day of April, 2023.
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325-Passed the Senate the 25th day of May, 2023.
561+
562+
563+
564+Presiding Officer of the House of
565+ Representatives
566+
567+
568+Passed the Senate the ____ day of _______ ___, 2023.
569+
570+
326571
327572
328573
329574 Presiding Officer of the Senate
330575
331576
332-Passed the House of Representatives the 26th day of April, 2023.
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602+ENGROSSED SENATE
603+BILL NO. 1069 By: Montgomery of the Senate
604+
605+ and
606+
607+ Sneed of the House
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609+
610+
611+
612+[ investment of funds - effective date ]
613+
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615+
616+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
617+SECTION 4. AMENDATORY 36 O.S. 2021, Section 1601, is
618+amended to read as follows:
619+Section 1601. Except as to Sections 1624 and 1625 and
620+subdivision subsection A of Section 1606 hereof, this article
621+applies to domestic insurers , CompSource Mutual Insurance Company,
622+the Multiple Injury Trust Fund, and the Self-insurance Guaranty F und
623+only. This article shall apply to domest ic title insurers except as
624+provided in Article 50 (Title Insurers ).
625+SECTION 5. AMENDATORY 85A O.S. 2021, Section 28, is
626+amended to read as follows:
627+Section 28. A. There are established within the Office of the
628+State Treasurer two separate funds:
629+1. The “Multiple Injury Trust Fund ”; and
630+2. The “Self-insurance Guaranty Fund ”.
631+B. Except as provided in Section 97 of this title, no mo ney
632+shall be appropriated from these funds for any purpose exce pt for
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659+the use and benefit, or at t he direction, of the Okla homa Workers’
660+Compensation Commission.
661+C. Except as provided in Section 96 of this title, al l funds
662+established under this section s hall be administered, disbursed, and
663+invested under the directi on of the Commission and the State
664+Treasurer. Funds shall be invested by the State Treasurer pursuant
665+to Section 1601 et seq. of Title 36 of the Oklahoma Statutes.
666+D. All incomes derived thro ugh investment of the Multiple
667+Injury Trust Fund shall be credi ted as investment income to the fund
668+that participated in th e investment.
669+E. No monies deposited to these funds shall be subject to any
670+deduction, tax, levy, or any other type of assessment.
671+F. If the balance in the Multiple Injury Trust Fund becomes
672+insufficient to fully compensate those employees to whom it is
673+obligated, payment shall be suspended until such time as the
674+Multiple Injury Trust Fund is capable of meeting its obligations,
675+paying all arrearages, and restoring normal benefit payments.
676+G. On the effective maturity dates of each investment, the
677+investment shall be transferred to the State Treasurer for deposit
678+into the Multiple Injury Trust Fund created in this section.
679+H. Unless provided otherwise in the Administrative Workers ’
680+Compensation Act, all fines and penalties assessed under the
681+Administrative Workers’ Compensation Act shall be deposited into the
682+Workers’ Compensation Commission Revolving Fund. Any monies
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709+remaining in the Workers’ Compensation Fund on June 30, 2015, shall
710+be transferred to the Workers’ Compensation Commission Revolving
711+Fund.
712+SECTION 6. AMENDATORY 85A O.S. 2021, Section 31, is
713+amended to read as follows:
714+Section 31. A. The Multiple Injury Trust Fund shall be derived
715+from the following additi onal sources:
716+1. As soon as practi cable after January 1 of each year, the
717+commissioners of the Workers ’ Compensation Commission shall
718+establish an assessment r ate applicable to each mutua l or
719+interinsurance association, stock company, or other insurance
720+carrier writing workers ’ compensation insurance in this state , each
721+employer carrying its own risk, and each group self -insurance
722+association, for amounts for pu rposes of computing the asse ssment
723+authorized by this section necessary to pay the annual obliga tions
724+of the Multiple Injury Trust Fund determined on or bef ore December
725+31 of each year by the Multiple Injury Trust Fund (MITF) Director,
726+provided for in subs ection Q of this section, to be outstanding for
727+the next calendar year. The rate shall be equal for all parties
728+required to pay the assessment. The Board of Directors for
729+CompSource Mutual Insurance Company shall have the power to
730+disapprove the rate est ablished by the MITF Directo r until the
731+Multiple Injury Trust Fund repays in full the amount due on any loan
732+from CompSource Mutual Insurance Company or its predecessor
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759+CompSource Oklahoma. If the MITF Director and CompSource Mutual
760+Insurance Company have not agreed on the assessmen t rate within
761+thirty (30) days, the Workers ’ Compensation Commission shall set an
762+assessment rate suffi cient to cover all forese eable obligations of
763+the Multiple Injury Trust Fund, including interest and prin cipal
764+owed by the fund on any loan;
765+2. The assessments shall be paid to the Oklahoma Tax
766+Commission. Insurance car riers, self-insurers, and group sel f-
767+insurance associations shall pay the assessment in four equal
768+installments not later than the fifteenth day of the month following
769+the close of each qu arter of the calendar year of the assessment.
770+Assessments shall be determined based upon gross direct written
771+premiums, normal premiums, or actual paid losses of the paying
772+party, as applicable, during the ca lendar quarter for w hich the
773+assessment is due. Assessments are expressly conditioned and
774+contingent upon preserva tion of the rebate equal to two -thirds (2/3)
775+of the amount of the assessment actually paid pursuant to Sections
776+6101 and 6102 of Title 68 of the Oklahoma Statute s. Uninsured
777+employers shall pay the assessment not later than the fifteenth day
778+of the month following the close of each quarter of the calendar
779+year of the assessment. For purposes of this section, “uninsured
780+employer” means an employer required by law to carry workers’
781+compensation insurance but who has failed or neglected to do so.
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808+a. The assessment authorized in this section s hall be
809+determined using a rate equal to the proportion that
810+the sum of the outstanding obligations of the Multiple
811+Injury Trust Fund as determined pursua nt to paragraph
812+1 of this subsection bears to the combined gross
813+direct written premiums of all such i nsurers; all
814+actual paid losses of all individual self -insureds;
815+and the normal premium of all group self -insurance
816+associations, for the year period from January 1 to
817+December 31 preceding the assessment.
818+b. For purposes of this subsection:
819+(1) “actual paid losses” means all medical and
820+indemnity payments, including temporary
821+disability, permanent disability, and death
822+benefits, and excluding loss adjustme nt expenses
823+and reserves, and
824+(2) “normal premium” means a standard premium less
825+any discounts;
826+3. By April 15 of each year, t he Insurance Commissioner, the
827+MITF Director and each individual and group self -insured shall
828+provide the Workers’ Compensation Commission with such information
829+as the Commission may determine is necessary to effectuate the
830+purposes of this section;
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857+4. Each mutual or interinsurance association, stock company, or
858+other insurance carrie r writing workers’ compensation insurance in
859+this state, and each employer carrying its own risk, including each
860+group self-insurance association, sha ll be notified by the Wor kers’
861+Compensation Commission in writing of the rate for the assessment on
862+or before May 1 of each year in which a rate is determ ined. The
863+rate determined by the Commission shall be in effect for four
864+calendar quarters beginning J uly 1 following determina tion by the
865+Commission. The Commission may amend its previously determined rate
866+on or after July 1, 2019. Parties affected by t he amended rate
867+shall be notified by the Commission in writing as i s reasonable;
868+5. a. No mutual or interinsurance association, stock
869+company, or other insurance carrier writing workers’
870+compensation insuranc e in this state may be assessed
871+in any year an amoun t greater than seven percent (7%)
872+of the gross direct written p remiums of that insurer.
873+The authorization for a maximum seven-percent
874+assessment shall exist until fiscal year 2027 , then
875+revert back to six percent (6%) thereafter.
876+b. No employer carrying i ts own risk may be assessed in
877+any year an amount greater than seven percent (7%) of
878+the total actual paid losses of that individual self-
879+insured. The authorization for a maximum seven -
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906+percent assessment shall exist until fiscal year 2027,
907+then revert back to six percent (6%) thereafter.
908+c. No group self-insurance association may be asses sed in
909+any year an amount greater than seven percent (7%) of
910+the normal premium of that group self -insurance
911+association. The authorization for a maximum seven -
912+percent assessment shall exist until fiscal year 2027,
913+then revert back to six percent (6%) thereafter;
914+6. The Oklahoma Tax Commissi on shall assess and collect from
915+any uninsured employer a temporary assessment at the rate of five
916+percent (5%) of the total compensa tion for permanent total
917+disability awards, permanent partial disability awards and death
918+benefits paid out during each qua rter of the calendar year by
919+employers. The assessment shall be paid in four equ al installments
920+not later than the fifteenth day of the month following the close of
921+the calendar year of the assessments. For the purpose of this
922+paragraph, “uninsured employer” means an employer required by law to
923+secure its workers’ compensation obligations but who has failed or
924+neglected to do so;
925+7. For injuries occurring on or after July 1, 2019, the
926+Oklahoma Tax Commission shall assess and coll ect from claimants a
927+temporary assessment as follows:
928+a. if an award has been made by the Workers ’ Compensation
929+Court of Existing Claims or the Workers ’ Compensation
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956+Commission for permanent partial disability o r
957+permanent total disability, or if a Comprom ise
958+Settlement or Joint P etition has been approved, the
959+employer or insurance carrier shall pay to such
960+employee the amount of the award less the assessment.
961+The assessment shall be paid to the Oklahoma Tax
962+Commission no later than the fifteenth day of th e
963+month following the clo se of each quarter of the
964+calendar year in which compensation is paid or became
965+payable, and
966+b. in making and entering awards for com pensation for
967+permanent total disability or permanent partial
968+disability, three percent (3%) of th e total award or
969+settlement shall be paid to the Tax Commission no
970+later than the fifteenth day of the mon th following
971+the close of each quarter of the calend ar year in
972+which compensation is paid or became payab le. The
973+total amount of the deduction so det ermined and fixed
974+shall have the same force and effect as an award for
975+compensation, and all provisions re lating to the
976+collection of awards shall apply to su ch judgments;
977+and
978+8. If the revenue in any one (1) y ear is insufficient to make
979+all necessary payments for obligations of the Multiple Injury Trust
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1006+Fund and for the allocations provided for in subsection J of this
1007+section, the unpaid portion shall be paid as soon thereafter as
1008+funds become available.
1009+B. The Multiple Injury Trust Fund is hereby author ized to
1010+receive and expend monies appropriated by the Legislature.
1011+C. It shall be the duty of the Tax Com mission to collect the
1012+payments provided for in this act. The Tax Commission is hereby
1013+authorized to bring an action for the recovery of any delinque nt or
1014+unpaid payments required in this section.
1015+D. Any mutual or inter insurance association, stock compan y, or
1016+other insurance company, which is subject to r egulation by the
1017+Insurance Commissioner, failing to m ake payments required in this
1018+act promptly and correctly, and failing to report payment of the
1019+same to the Insurance Commissioner within ten (10) days of payment
1020+shall be subject to administrative penalt ies as allowed by law,
1021+including but not limited to a fine in the amount of Five Hundred
1022+Dollars ($500.00) or an amount equ al to one percent (1%) of the
1023+unpaid amount, whichever is greater, to be paid to the Insurance
1024+Commissioner.
1025+E. Any employer carryin g its own risk, or group self-insurance
1026+association failing to make payments required in this act promptly
1027+and correctly, and failing to report payment of the same to th e
1028+Commission within ten (10) days o f payment shall be subject to
1029+administrative penalti es as allowed by law, including but not
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1056+limited to a fine in the amount of Five Hundred Dollars ($ 500.00) or
1057+an amount equal to one percent (1%) of the unpaid amount, wh ichever
1058+is greater, to be paid to t he Commission.
1059+F. 1. On or before the first day of April of each year, the
1060+State Treasurer shall advise the Commission, the MITF Director and
1061+the Tax Commission of the amoun t of money held as of March 1 of that
1062+year by the State Treasurer to the credit o f the Multiple Injury
1063+Trust Fund. On or before the first day of November of each year,
1064+the State Treasurer shall advise the Commission, the MITF Dire ctor
1065+and the Tax Commissi on of the amount of money held as of October 1
1066+of that year by the State Treasure r to the credit of the Multiple
1067+Injury Trust Fund.
1068+2. Until such time as the Multiple Injury Trust Fund fully
1069+satisfies any loan obligation payable t o CompSource Mutual Insur ance
1070+Company or its predecessor CompSource Okl ahoma, the State Treasurer
1071+shall:
1072+a. advise the Chief Executive Officer of CompSource
1073+Mutual Insurance Company on or before the first day of
1074+April of the money held as of March 1 of tha t year by
1075+the State Treasurer to the credit of the Multiple
1076+Injury Trust Fund, and
1077+b. advise the Chief Exe cutive Officer of CompSource
1078+Mutual Insurance Compan y on or before the first day of
1079+November of the money held as of October 1 of that
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1106+year by the State Treasurer to the credi t of the
1107+Multiple Injury Trust Fund.
1108+G. Eighty percent (80%) of all sums held by the State Treasurer
1109+to the credit of the Multiple I njury Trust Fund may by order of the
1110+MITF Director be invested in or loaned on the pledge of any o f the
1111+securities in which a state bank may invest the monies deposited
1112+therein by the State Treasurer; or may be deposited in state or
1113+national banks or trust companies upon insured time deposit bearing
1114+interest at a rate no less than currently being paid upon insured
1115+savings accounts in the institutions ; or may be invested pursuant to
1116+Section 1601 et seq. of Title 36 of the Oklahoma Statutes . As used
1117+in this section, “insured” means insurance as provided by an agency
1118+of the federal government. All such securities or evidence of
1119+indebtedness shall b e placed in the hands of the State Treasurer,
1120+who shall be the custodian thereof, who shall collect the principal
1121+and interest when due, and pay the sa me into the Multiple Inju ry
1122+Trust Fund. The State Treasur er shall pay by vouchers dr awn on the
1123+Multiple Injury Trust Fund for the making of such investments, when
1124+signed by the MITF Director, upon delivery of such sec urities or
1125+evidence of indebtedness to the State Treasurer. Th e MITF Director
1126+may sell any of such securities, the proceed s thereof to be paid
1127+over to the State Treasurer for the Multiple Injury Trust Fund.
1128+H. The refund provisions of Sections 227 throug h 229 of Title
1129+68 of the Oklahoma Stat utes shall be applicable to any payments made
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1156+to the Multiple Injury Trust Fund. Ref unds shall be paid f rom and
1157+out of the Multiple Injury Trust Fund.
1158+I. Beginning July 1, 2019, One Million Dollars ($1,000,000.00)
1159+of the funds in the Multiple Injury Trust Fund shall be transferr ed
1160+annually on July 1 to the Ok lahoma Department of Labor Re volving
1161+Fund exclusively for the operation and administration of the
1162+Oklahoma Occupational Health and Safety Standards Act and for ot her
1163+necessary expenses of the Departm ent of Labor.
1164+J. Except for the monies provided for in subsection I of this
1165+section, the Tax Commission s hall pay, monthly, to the State
1166+Treasurer to the credit of the Multiple Injury Trust Fund all monies
1167+collected pursuant to the provisions of this section. The State
1168+Treasurer shall pay out of the Multiple Injury Trust Fund only upon
1169+the order and directio n of the Workers’ Compensation Commission
1170+acting under the provisions hereof.
1171+K. The Commission shall promulgate rules as the Commission
1172+deems necessary to effectuate the prov isions of this section.
1173+L. The Insurance Commissioner shall promulgate rules relating
1174+to insurers as defined in Title 36 of the Oklahoma Statutes, as the
1175+Insurance Commissioner deems necessary to effectuate the provisions
1176+of this section.
1177+M. The MITF Director shall have authority to fulfill all
1178+payment obligations of the Multiple In jury Trust Fund.
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1205+N. The Multiple Injury Trust Fund may enter into an agreement
1206+with any reinsurer licensed to se ll reinsurance by the Insurance
1207+Commissioner pursuant to a comp etitive process administer ed by the
1208+Director of Central Purc hasing in the Office of Management and
1209+Enterprise Services.
1210+O. Any dividend, rebate, or other distribution, payable by
1211+CompSource Mutual Insurance Company or any other workers’
1212+compensation insurance carrier, to a state agency policyholder shall
1213+be paid to the State Treasure r, and shall be credited as follows:
1214+1. In the event of failure of the Multiple Injury Trust Fund to
1215+meet all lawful obligations, the monies shall be credited to the
1216+Multiple Injury Trust Fund and sh all be used by the Multiple Injury
1217+Trust Fund to meet al l lawful obligations of the Multiple Injury
1218+Trust Fund; and
1219+2. Otherwise, all future dividends made by any worke rs’
1220+compensation insurance carrier, on behalf of state agencies , shall
1221+be deposited to the credit of the General Revenue Fu nd of the State
1222+Treasury.
1223+P. The Workers’ Compensation Commission shall be charged with
1224+the administration and protection of the Mul tiple Injury Trust Fund.
1225+Q. The person serving as the Administ rator of the Multiple
1226+Injury Trust Fund on the date of passa ge and approval of t his act
1227+shall serve as the initial MITF Director, provided such person is
1228+serving as the Administrator of the Mul tiple Injury Trust Fund on
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1255+the effective date of this act. The MITF Director shall be
1256+appointed by and serve at the pleasu re of the Governor.
1257+R. Any party interested shall have a right to bring a
1258+proceeding in the Supreme Court to review an award of the Workers’
1259+Compensation Commission affecting such Multiple Injury Trust Fund,
1260+in the same manner as is provided by law with r eference to other
1261+awards by the Commission.
1262+S. The State Treasurer shall allocate to the Commission out of
1263+the Multiple Injury Trust Fund sufficient funds for administration
1264+expenses thereof in a mounts to be fixed and approved by the Director
1265+for the Multiple Injury Trust Fu nd, unless rejected by the Workers’
1266+Compensation Commission.
1267+T. On or after July 1, 2019, accrued and unpaid com pensation
1268+from the Multiple Injury Trust Fund shall bear simple interest only
1269+at the percentage rate applicable under Secti on 727.1 of Title 12 of
1270+the Oklahoma Statutes from the day an award is made by the Workers ’
1271+Compensation Court of Existing Claims or the Workers’ Compensation
1272+Commission.
1273+SECTION 7. This act shall become effective November 1, 2023.
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1300+Passed the Senate the 23rd day of March, 2023.
1301+
1302+
1303+
1304+ Presiding Officer of the Senate
1305+
1306+
1307+Passed the House of Representatives the ____ day of __ ________,
1308+2023.
3331309
3341310
3351311
3361312 Presiding Officer of the House
3371313 of Representatives
3381314
339-OFFICE OF THE GOVERNOR
340-Received by the Office of the Governor this _______ _____________
341-day of _________________ __, 20_______, at _______ o'clock _______ M.
342-By: _______________________________ __
343-Approved by the Governor of the State of Oklahoma this _____ ____
344-day of _________________ __, 20_______, at _______ o'clock _______ M.
3451315
346- _________________________________
347- Governor of the State of Oklahoma
348-
349-
350-OFFICE OF THE SECRETARY OF STATE
351-Received by the Office of the Secretary of State this _______ ___
352-day of __________________, 20 _______, at _______ o'clock _______ M.
353-By: _______________________________ __