Oklahoma 2023 Regular Session

Oklahoma Senate Bill SB546 Compare Versions

Version 1 (Old)

Version 2 (New)

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29		-	SENATE FLOOR VERSION
30		-	February 14, 2023
	28	+	STATE OF OKLAHOMA
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	30	+	1st Session of the 59th L egislature (2023)
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33	32		COMMITTEE SUBSTITUTE
34	33		FOR
35		-	SENATE BILL ~~NO.~~ 546 By: Montgomery of the Senate
	34	+	SENATE BILL 546 By: Montgomery of the Senate
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37	36		and
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39	38		Sneed of the House
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	44	+	COMMITTEE SUBSTITUTE
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45	46		An Act relating to the Cemetery Merchandi se Trust
46	47		Act; amending 36 O.S. 2021, Sect ions 7125, 7127,
47	48		7128, 7131, and 7133, which relate to permit
48	49		application, surety bond, annual reporting, and
49	50		violations; requiring certain application s and fees
50	51		to be submitted and paid electr onically; adding
51	52		certain report to documents required for issu ance of
52	53		permit; requiring renewal fee prior to reinstatement
53	54		of certain permit; modifying renewal procedure s for
54	55		expired permits; requiring certain report from
55	56		expired permit holders; conforming language;
56	57		requiring certain updates to permit holder
57	58		information by certain date; requiring certain permit
58	59		holder to respond to certain inquiries by certain
59	60		date; requiring surety to provide notice to Insurance
60	61		Commissioner by certain date; requiring annual report
61	62		to be filed electronically; removing minimum amount
62	63		for certain civil penalty assessed for certain
63	64		violation; conforming language; updating statutory
64	65		language; and providing an effective date .
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69	70		BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
70	71		SECTION 1. AMENDATORY 36 O.S. 2021, Section 7125, is
71	72		amended to read as follows:
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99	99		Section 7125. A. Each organization desiring to acc ept money or
100	100		anything of value for prepaid cemetery merchandise shall file an
101	101		application for a permit with the Insura nce Commissioner, and shall
102	102		at the time of filing the appl ication pay one initial filing fee of
103	103		Two Hundred Dollars ($200.00), along with any transaction or other
104	104		applicable fees. All applications shall be filed and the fee shall
105	105		be paid electronically in a form and manner prescr ibed by the
106	106		Commissioner. The Commissioner shal l issue a permit upon the
107	107		receipt of the application, the annual report in accordance wit h
108	108		Section 7128 of this title, and payment of the filing fee fees, and
109	109		upon making a finding that the applicant has complied with the
110	110		Cemetery Merchandise Trust Act and the rules as may be established
111	111		pursuant to the Cemetery Merchandise Trust Act by th e Commissioner.
112	112		All applications shall be signed by the organization requesting the
113	113		permit, and shall contain a statement that the applicant will comply
114	114		with all the requirements as established pursuant t o the Cemetery
115	115		Merchandise Trust Act. All permits shall expire on March 15 of t he
116	116		year following the year the permit is first issued, unless renewed .
117	117		Permits shall be renew ed for a period not to exceed the succeeding
118	118		March 15 upon the payment of a renewa l fee of Two Hundred Dollars
119	119		($200.00). Late application for renewal of a permi t shall require a
120	120		fee of double the renewal fee. No application for renewal of a
121	121		permit shall be accepted after April 15 of each year. L ate
122	122		applicants shall be required to re apply as if they were a new
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150	149		applicant, and pay an a pplication fee equal to an am ount that is
151	150		double the renewal fee in addition to any fines that may have been
152	151		imposed with respect to an expired permit The renewal application
153	152		shall be filed and the fee shall be paid electronically in a form
154	153		and manner prescribed by t he Commissioner. A permit that expires
155	154		for failure to submit a renewal application may be reinstated within
156	155		ninety (90) days after the expiration date by electronically
157	156		submitting a fee in an amount that is double the renewal fee in a
158	157		form and manner prescribed by the Commissioner an d any other
159	158		transaction or fees deemed necessary by the Co mmissioner. The
160	159		Insurance Commissioner shall require a permit holder whose permit
161	160		has been expired for more than nine ty (90) days to reapply as if a
162	161		new applicant and pay an application fee equal t o an amount that is
163	162		double the renewal fee, in addition to any fines imposed. All
164	163		applications received more than ninety (90 ) days following the
165	164		expiration of a permit shall include a detailed report of services
166	165		provided in this state during the period of the permit expiration.
167	166		B. The Commissioner may cancel a permit or refuse to issue a
168	167		permit or refuse to issue a renewal of a permit for failure to
169	168		comply with any provisions of the Cemetery Merchandise Trust Act or
170	169		any rules promulgated thereto by the Commissioner, after reasonable
171	170		notice to the permittee and o pportunity for hearing bef ore the
172	171		Commissioner in accordance with Article II of the Administrative
173	172		Procedures Act.
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201	199		C. No organization shall be entitled to a new permit after
202	200		cancellation, or refusa l by the Commissioner to renew a permit, but
203	201		shall thereafter be issued a new permit upon satisfactory proof of
204	202		compliance with the Cemete ry Merchandise Trust Act and rules
205	203		promulgated by the Commissioner.
206	204		D. Any person or org anization aggrieved by the ac tions of the
207	205		Commissioner may appeal therefrom t o the Oklahoma Insurance
208	206		Department as provided by the Administrative Procedures Act.
209	207		E. Each permit holder shall electronically submit, in a form
210	208		and manner prescribed by the Commissioner, any change of legal
211	209		business name, “doing business as” or assumed name, address, or
212	210		contact email address, and any necessary fees within thirty (30)
213	211		days after the change occurred. Any submission of a change under
214	212		this subsection that is received more than thirty (30) days after
215	213		the change occurred shall be accompanied by a fee of Fifty Dollars
216	214		($50.00).
217	215		F. Upon receipt of any inqui ry from the Insurance Com missioner,
218	216		a permit holder shall furnish the Commissioner with an adequate
219	217		response to the inquiry within twenty (20) days from the date of
220	218		receipt of the inquiry.
221	219		SECTION 2. AMENDATORY 36 O.S. 2021, Section 7127, is
222	220		amended to read as follows:
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250	247		Section 7127. A. As an alternative to the trust requirements
251	248		of Section 7126 of this title, an organ ization may purchase a surety
252	249		bond in an amount not less t han the minimum funding requ irement.
253	250		B. The surety bond shall be made payable t o the State of
254	251		Oklahoma for the benefit of the Insurance Commissioner and all
255	252		purchasers of prepaid cemetery merchandi se. The bond shall be
256	253		approved by the Commissioner.
257	254		C. The Commissioner may establis h by rule the requirements an d
258	255		guidelines for the su rety bonds required pursuant to this sec tion.
259	256		D. A surety bond maintained under the provis ions of this
260	257		section or Section 7124 of this title may be cancelled canceled or
261	258		terminated by the surety only by providing notice to the
262	259		Commissioner, no later than ninety (90) thirty (30) days before the
263	260		effective date of the cancellation or termination. Notwiths tanding
264	261		the cancellation, termination, or expiration of a bond maintained
265	262		under this section or Section 7124 of t his title, the surety shall
266	263		remain liable for obligations arising during the term of the bon d
267	264		and prior to the termination, cancellation or exp iration.
268	265		SECTION 3. AMENDATORY 3 6 O.S. 2021, Section 7128, is
269	266		amended to read as follow s:
270	267		Section 7128. Each organization shall electronically file an
271	268		annual report with the Insu rance Commissioner on or before March 15
272	269		of each year in a the manner and form as the Commissioner may
273	270		require, showing the nam e of the financial institut ion holding the
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301	297		cemetery merchandise trust fund and the amount of the trust fund
302	298		under each contract o n the preceding December 31, and also showing
303	299		the method of determination of t he wholesale costs made pursuant to
304	300		Section 7126 of this title. The total r equired deposits to the
305	301		cemetery merchandise trust fund during the year shall also be
306	302		reported. Each cemetery is responsible for maintaining satisfactor y
307	303		books and records, which will adequately justify all information
308	304		contained in the annual report requi red by this section. Any
309	305		organization which has discontinued the sale of prepaid cemetery
310	306		merchandise, but which still has funds deposited in a cemetery
311	307		merchandise trust fund or surety, shall not be required to obtain a
312	308		renewal of its permit, but it shal l continue to make annual reports
313	309		to the Commissioner until al l the funds have been disbursed pursuant
314	310		to the Cemetery Merchandise Trust Act. A filing f ee of Two Hundred
315	311		Dollars ($200.00), and any transaction or other applicable fees,
316	312		shall accompany each report. If any officer of any organization
317	313		fails or refuses to file an annual report, or fails or refuses to
318	314		cause it to be filed within thi rty (30) days after the org anization
319	315		has been notified by the Commissioner that the rep ort is due and has
320	316		not been received, the officer shall be guilty of a mis demeanor and
321	317		shall be punished as prescribed in Section 7134 of this title.
322	318		SECTION 4. AMENDATORY 36 O.S. 2021, Section 7131, is
323	319		amended to read as follows:
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351	346		Section 7131. A. The Insurance Commissioner, may, after notice
352	347		and an opportunity for hearing, initiate an action t o recover
353	348		payments required to be redeposited to th e cemetery merchandise
354	349		trust pursuant to the Cemetery Merchandise Trust Act or to recover
355	350		other monies received or disbursed in violation of the Cemetery
356	351		Merchandise Trust Act.
357	352		B. The Commissioner may, af ter an opportunity for hearing,
358	353		censure a permittee or may suspend or revoke a permit for violation
359	354		of any provision of the Cemetery Merch andise Trust Act or any rules
360	355		promulgated by the Commissioner. In addition to, or in lieu of, any
361	356		censure, suspension or revocation, a permittee may be subject to a
362	357		civil penalty of not less than One Hundred Dollars ($100.00) nor
363	358		more than One Thousand Dollars ($1,000.00) per occurrence or
364	359		violation.
365	360		SECTION 5. AMENDATORY 36 O.S. 2021, Section 7 133, is
366	361		amended to read as follows:
367	362		Section 7133. Whenever any officer of an y organization refuses
368	363		to submit the books, records, papers a nd instruments of an
369	364		organization to the examination and inspection of the as sistants or
370	365		examiners of the Insurance Commissioner, or refuses or neglects to
371	366		establish or maintain a cemetery mercha ndise trust fund in
372	367		accordance with the requirements of the C emetery Merchandise Trust
373	368		Act within ninety (90) days after a written demand to establish or
374	369		maintain a cemetery merch andise trust fund is made by the
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402	396		Commissioner, or in any manner obstructs or interferes with the
403	397		examination of its cemetery merchandise t rust fund, or refuses to be
404	398		examined on oath concerning any of the affairs of its cemetery
405	399		merchandise trust fund, the Commissioner may make application for
406	400		receivership in the manner of a domest ic insurer pursuant to
407	401		Sections 1901 through 1920 of Title 36 of the Oklahoma Statutes , in
408	402		addition to the penalties and other enf orcement provisions of the
409	403		Cemetery Merchandise Trust Act.
410	404		SECTION 6. This act shall become effective Novembe r 1, 2023.
411		-	~~COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE~~
412		-	~~February~~ 14, 2023 ~~- DO PASS AS AMENDED BY CS~~
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