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STATE OF OKLAHOMA
1st Session of the 59th Legislature (2023)
HOUSE BILL 1405 By: Culver
AS INTRODUCED
An Act relating to civil procedure; amending 12 O.S.
2021, Section 83, which relates to conserving monies
obtained for or on behalf of pe rsons under eighteen
years of age in court proceed ings; increasing
monetary minimum; providing for conserving monies
obtained for or on behalf of persons under eighteen
years of age when sum is under a certain amount;
modifying when withdrawals of monies can be made;
providing when a settlement agreement is binding on
the minor without court approval; providing that a
person acting in good faith on behalf of a minor is
not liable to the minor for the monies paid in
settlement; providing that person or entity against
whom a minor has a claim that settles t he claim with
a minor in good faith not be liable to the minor for
any claims arising from the settlement of the claim ;
requiring an adult acting on behalf of a person who
is less than eighteen years of age to complete an
affidavit or verified stateme nt; providing affidavit
form; requiring any federally insured banking, credit
union or savings and loan institution receiving the
monies for deposit shall co mplete a receipt of
deposit; providing receipt of deposit form; repealing
12 O.S. 2021, Sections 86 and 86.1, which relate to
the Oklahoma Statutory Thresholds for Settlements
Involving Minors Act of 2022 ; and providing an
effective date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 12 O .S. 2021, Section 83, is
amended to read as follows:
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Section 83. A. Monies recovered in any court proceeding by a
next friend of kin or guardian ad litem for or on behalf of a person
who is less than eighteen (18) years of age in excess of One
Thousand Dollars ($1,000.00) Twenty-five Thousand Dollars
($25,000.00) over sums sufficient for paying costs and expenses
including medical bills and attorney 's fees shall be deposited, by
order of the court, in one or mo re federally insured banking, credit
union or savings and loan institutions, a trust established for the
person approved by the court, or invested by a bank or trust company
having trust powers under federal or state law, approved by the
court; provided, that the court may approve a structured settle ment,
by the terms of which the proceeds of a settlement may be invested
by the plaintiff or the defendant in an annuity to be paid to or for
the benefit of the minor by an insurance company licensed in this
state. If authorized by the court at the reques t of the next friend
of kin or guardian ad litem, all or a portion of the recovered
monies may be deposited in an account pursuant to the Oklahoma
College Savings Plan Act with the minor designated as beneficiar y of
the account.
B. Monies recovered in any court p roceeding or settlement
without the filing of an action in excess of One Thousand Dollars
($1,000.00), and less than Twenty -five Thousand Dollars
($25,000.00), over the sum sufficient for paying costs an d expenses
including medical bills and attorney fees, by a next of kin or
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guardian ad litem for or on behalf of a person who is less than
eighteen (18) years of age shall be deposited in one or more
federally insured banking, credit union or savings and lo an
institutions, or a structured settlement, by the t erms of which the
proceeds of a settlement may be invested by the plaintiff or the
defendant in an annuity to be paid to or for the sole benefit of the
minor by an insurance company licensed in this stat e. All or a
portion of the recovered monies may be d eposited in an account
pursuant to the Oklahoma College Savings Plan Act with the minor
designated as the sole beneficiary of the account.
The adult acting on behalf of the person who is less than
eighteen (18) years of age shall complete an affidavit or v erified
statement in conformity with this section. The adult entering into
the settlement agreement on behalf of the minor, shall retain a copy
of the affidavit or verified statement for the minor until the minor
reaches the age of majority. If the minor is represented by
counsel, the attorney shall also retain in the attorney file a copy
of the affidavit or verified statement until one (1) year after the
minor attains eighteen (18) years of age. If the minor is not
represented by counsel, the insurance company paying monies shall
retain in the claim file a copy of the affidavit or verified
statement until one (1) year after the minor attains eighteen (18)
years of age.
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Any federally insured banking, c redit union or savings and loan
institution receiving the monies for deposit shall complete a
receipt of deposit signed by an officer of the bank, credit union,
or savings and loan in conformity with subsection J of this section.
C. Until the person becom es eighteen (18) years of age,
withdrawals of monies from the account or accounts shall be solely
pursuant to order of the court made in the case in which recovery
was had or by filing an action if no case ha d previously been filed.
C. D. When an application for the order is made by a person who
is not represented by an attorney, the judge of the court shall
prepare the order.
D. E. This section shall not apply if a legal guardian has been
appointed for the minor prior to any award of monies pursuant to
subsection A of this section. If a legal guardian is appointed
after any award of monies pursuant to subsection A of this section,
the legal guardian may petition the district court in the county
where the federally insured funds are held for an order dire cting
the bank, credit union or savings and loan to t ransfer the funds to
the legal guardian. The district court may make the granting of the
request to transfer funds subject to reasonable safeguards.
F. If a settlement agreement is entered into in comp liance with
subsection B of this section, the signat ure of the person entering
into the settlement agreement on behalf of the minor is binding on
the minor without the need for further court approval or review , and
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has the same force and effect as if the m inor were a competent adult
entering into the settlem ent agreement.
G. A person acting in good faith on behalf of a minor pursuant
to subsection B of this section is not liable to the minor for the
monies paid in the settlement or for any other claim aris ing out of
the settlement.
H. Any person or entity a gainst whom a minor has a claim that
settles the claim with a minor in good faith pursuant to subsection
B shall not be liable to the minor for any claims arising from the
settlement of the claim.
I. The adult acting on behalf of the person who is less th an
eighteen (18) years of age shall complete an affidavit or verified
statement in substantial conformity to the applicable prov isions
below:
"I, [Name of Affiant], being of lawful age and aft er being duly
sworn upon oath, state as follows:
1. I am the parent or legal guardian of [Name of minor child]
("XX"), a minor child.
2. XX's date of birth is MM -DD-YYYY.
3. [Briefly state when, where and how the incident in question
occurred.]
4. [Briefly state how minor was injured in the incident,
describe his or her injuries, medical care received, if any, and how
they are doing today.]
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5. As a result of the injuries sustained by XX in the incident
in question, I, individually and on behalf of XX, a minor, ag reed to
settle the claims of XX against [Name of tort feasor(s)], with their
insurer, [Name of Third-Party Liability Insurance Carrie r(s)], in
the amount of $XXXX; and with my UM/UIM insurer, [Name of First -
Party Liability Insurance Carrier(s)], in the amou nt of $XXXX, [add
additional tortfeasor or first part y coverages where applicable] for
a total settlement in the amount of $XXXX.
6. I understand that all medical expenses, liens and
subrogation claims must be paid from the settlement: [List all
outstanding medical expenses, liens and subrogation providers and
the amounts.]
7. I understand that I (or another parent or legal guardian )
may be reimbursed from the settlement for medical expenses that I or
we have paid for the care or treatment of XX as a resu lt of injuries
incurred by XX due to the subject inci dent as follows: [List all
relevant medical expenses of XX, paid for by a pare nt or legal
guardian, for which reimbursement is sought from the settlement.]
A. ;
B. ; and
C. .
8. I understand that $XXXX with be paid from the settlement to
[Name of Firm/Attorney] for attorney fees and costs in securing the
settlement pursuant to my co ntract with [Name of Firm/Attorney].
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9. I understand that pursuant to subsection B of Section 83 of
Title 12 of the Oklahom a Statutes, the net of XX's settlement in the
amount of $XXXX must be deposited in one or more federally insured
banking, credit union or savings and loan institutions, a savings
account that accrues interest, a trust established for XX, or
invested by a bank or trust company having trust powers under
federal or state law; into a structured settlement, by the terms of
which the proceeds of a settlement may be invested in an annuity to
be paid to or for the benefit of XX by an insurance company licensed
in this state. All or a portion of the recovered monies may be
deposited in an account pursuant to the Oklahoma College Savings
Plan Act with XX designated as a beneficiary of the accou nt.
10. I understand that such funds may not be withdrawn, removed,
paid out, or transferred to anyone until XX is 18 years of age,
except pursuant to court order or upon the minor 's death. When the
minor XX reaches the age of eighteen (18) years, the funds may be
withdrawn, removed, paid out or transferred by the minor withou t a
court order.
11. I understand that I must deposi t the funds, secure a
Receipt of Deposit from the bank, and return the Receipt of Deposit
to my attorney or the representative [Name of Insurance Carrier]
within XX days of receiving the funds. I must also advise the minor
of the settlement and the locati on of the settlement funds as soon
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as the minor has the ability to unde rstand its existence and at the
time the minor reaches eighteen (18) years of age.
12. I understand that should I not settle this m atter on behalf
of the minor, I have the right to ask for a jury trial in this
matter, and that a jury may have awarded more , less, or the same
amount, but by settling XX's claims, I am giving up this right to a
jury trial.
13. I understand that should I not settle this matter, or
pursue a jury trial on beh alf of XX, XX would alternatively have a
right to bring a cause of acti on against [Name of Tortfeasor(s)]
within the one (1) year between XX 's 18th and 19th birthdays;
however, by settling this matter at this time on XX's behalf, I am
waiving his or her right to bring a cause of action at that time,
and relatedly their opportunity to obtain a verdict through jury
trial.
14. I understand that by settling XX 's claims, whether for
already known or later -discovered additional injuries from the
subject incident and/or if XX requires future medical care, I will
not be able to open this claim or bring any future cause of action
against [Name of Tortfeasor(s)] or their insurer(s), [Name of
Insurance Carrier], and request additional sums of money.
15. I believe this is a fair and reasonable settlement of XX 's
claim: that to the best of my knowledge the minor will be fully
compensated by the settlement, or there is no practical way to
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obtain additional amounts from the other party(ies) entering into
the settlement agreement.
16. I believe this settlement is in the best interests of XX.
17. I understand that this settlement is full and final; I have
not been coerced, pressured, or threatened into entering this
settlement in any way.
FURTHER AFFIANT SAYETH NOT.
______________________________
[Name of Affiant]
[Address of Affiant]
[Phone Number of Affiant]
I state under penalty of perjury under the laws of Oklahoma that the
foregoing is true and correct.
______________ ____________________________________________
Date S ignature of Parent or Legal Guardian of XX
Approved as to form and content by:
[Attorney Name]
J. Any federally insured banking, credit union or savings and
loan institution receiving the monies for deposit shall complete a
receipt of deposit referenced herein in conformity with the
following:
RECEIPT OF DEPOSIT
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The undersigned, an Officer of [Name of Bank], does hereby
acknowledge receipt of the Affidavit of [Name of Affiant ], and that
$XXXXX was deposited for the benefit of the minor, XX.
It is understood that the funds so deposited, pursuant to provisions
under Sections 83 and 86 of title 12 of the Oklahoma Statutes , may
not be withdrawn, removed, paid out, or transferred b y anyone until
XX is eighteen (18) years of age, except pursuant to court order or
upon the minor's death.
When XX reaches the age of eighteen (18) years of age, the funds may
be withdrawn, removed, paid out, or transferred by XX without court
order."
BY: _____________________________
Signature
_____________________________
Printed Name
_____________________________
Title
Subscribed and sworn to before me this ________ day of ______ _____,
20 .
_____________________________
Notary Public
My Commission Expires:
__________________________
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SECTION 2. REPEALER 12 O.S. 2021, Sections 86 and 86.1,
are hereby repealed.
SECTION 3. This act shall become eff ective November 1, 2023.
59-1-5409 JL 01/13/23