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Oklahoma House Bill HB3089

Oklahoma 2024 Regular Session

Oklahoma House Bill HB3089 Compare Versions

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1-An Act
2-ENROLLED HOUSE
3-BILL NO. 3089 By: Tedford, Hefner, and
4-Rosecrants of the House
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3+ENGR. S. A. TO ENGR. H. B. NO. 3089 Page 1 1
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28+ENGROSSED SENATE AMENDMENT
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30+ENGROSSED HOUSE
31+BILL NO. 3089 By: Tedford and Hefner of the
32+House
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34+ and
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36+ Pemberton of the Senate
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42+An Act relating to insurance; establishing the
43+Strengthen Oklahoma Homes Act; establishing the
44+Strengthen Oklahoma Homes (SOH) Program within the
45+Department of Insurance; clarifying applicability of
46+program; *** applications; directing use of grants
47+for residential properties; providing time limit;
48+requiring certificate before payment of grant funds;
49+directing who shall pay grant funds; directing that
50+applications are first -come, first-served; ***
51+clarifying responsibility for owed amounts beyond
52+grant; providing requirements for contractor
53+eligibility; providing requirements for evaluator
54+eligibility; creating the Strengthe n Oklahoma Homes
55+Revolving Fund; *** codification; and providing an
56+effective date.
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62+AUTHOR: Add the following House Coauthor: Rosecrants
63+
64+AMENDMENT NO. 1. Page 2, line 10, after the word “Program” and
65+before the period insert the words “, to continue
66+until November 1, 2027”
67+
68+and amend the title to conform
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97+Passed the Senate the 25th day of April, 2024.
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101+ Presiding Officer of the Senate
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104+Passed the House of Representatives the ____ day of __________,
105+2024.
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109+ Presiding Officer of the House
110+ of Representatives
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137+ENGROSSED HOUSE
138+BILL NO. 3089 By: Tedford and Hefner of the
139+House
5140
6141 and
7142
8143 Pemberton of the Senate
9144
10145
11146
12147 An Act relating to insurance; establishing the
13148 Strengthen Oklahoma Homes Act; establishing the
14149 Strengthen Oklahoma Homes (SOH) Program within the
15-Department of Insurance for certain period of time ;
16-clarifying applicability of program; directing
17-Department to make certain e fforts to obtain funds;
18-describing qualifying entities for program grants;
19-permitting Insurance Commissioner to promulgate rules
20-and requirements; providing list of requirements;
21-directing for electronic filing of applications;
22-clarifying confidentiality of grant applications;
23-directing use of grants for residential properties;
24-providing time limit; requiring certificate before
25-payment of grant funds; directing who shall pay grant
26-funds; directing that applications are first -come,
27-first-served; permitting entities providing funds to
28-program to establish certain additional rules and
29-guidelines; permitting Insurance Department to
30-conduct inspections; directing residential property
31-owners to hire contractors with certain
32-certification; prohibiting the Insurance Department
33-from making endorsements; clarifying responsibility
34-for owed amounts beyond grant; providing requirements
35-for contractor eligibility; providing requirements
36-for evaluator eligibility; creating the Strengthen
37-Oklahoma Homes Revolving Fund; directing for deposit
38-of certain monies; permitting Insurance Commissioner
39-to transfer certain funds; providing for
40-codification; and providing an effective date.
150+Department of Insurance; clarifying applicability of
151+program; directing Department to make certain e fforts
152+to obtain funds; describing qualifying entities for
153+program grants; permitting Insurance Commissioner to
154+promulgate rules and requirements ; providing list of
155+requirements; directing for electronic filing of
156+applications; clarifying confidentiality of grant
157+applications; directing use of grants for residential
158+properties; providing time li mit; requiring
159+certificate before payment of grant fun ds; directing
160+who shall pay grant funds; directing that
161+applications are first -come, first-served; permitting
162+entities providing funds to program to establish
163+certain additional rules and guidelines; permitting
164+Insurance Department to conduct inspections;
165+directing residential property owners to hire
166+contractors with certain certification; prohibiting
167+the Insurance Department from making endorsements;
168+clarifying responsibility for owed amounts beyond
169+grant; providing requirements for contractor
170+eligibility; providing requirements for evaluator
171+eligibility; creating the Strengthen Oklahoma Homes
172+Revolving Fund; directing for deposit of certain
173+monies; permitting Insurance Commissioner to transfer
174+certain funds; providing for codification; and
175+providing an effective date.
41176
42177
43178
44-SUBJECT: Insurance
45179
46-BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: ENR. H. B. NO. 3089 Page 2
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181+BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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47208 SECTION 1. NEW LAW A new section of law to be codified
48209 in the Oklahoma Statutes as Section 971 of Title 36, unless there is
49210 created a duplication in numb ering, reads as follows:
50-
51211 This act shall be known and may be cited as the "Strengthen
52212 Oklahoma Homes Act".
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54213 SECTION 2. NEW LAW A new section of law to be codified
55214 in the Oklahoma Statutes as Section 972 of Title 36, unless there is
56215 created a duplication in numbering, reads as follows:
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58216 A. There is hereby established within the Department of
59-Insurance the Strengthen Oklahoma Homes (SOH) Program, to continue
60-until November 1, 2027 .
61-
217+Insurance the Strengthen Oklahoma Homes (SOH) Program.
62218 B. This act does not create an entitlement for property owners
63219 or obligate the state in any way to fund the inspection,
64220 construction, or retrofitting of residential property in this state.
65221 Implementation of the SOH Program is subject to the receipt of
66222 federal grants or funds or from other sources of grants or funds.
67223 The Department shall use its best efforts to obtain grants or funds
68224 from the federal government or other funding sources to supplement
69225 the financial resources of t he SOH Program that may be provided by
70226 the state.
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72227 C. The SOH Program shall apply for financial grants to
73228 construct or retrofit insurable property as defined in Section 963
74229 of Title 36 of the Oklahoma Statutes to resist loss due t o a tornado
75230 or other catastrophic wind storm events or hail as prescribed in
76231 subsection B of Section 962 of Tit le 36 of the Oklahoma Statutes.
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78258 D. The SOH Program may also make grants or funding availabl e to
79259 nonprofit entities for projects to construct or retrofit insurable
80260 properties to resist loss due to tornado or other catastrophic
81261 windstorm events or hail if such grant s or funding to nonprofit
82262 entities are allowable under grant or funding rules, requirements,
83263 guidelines, or criteria. However, a nonprofit entity shall agree to
84264 administer the grants or funds as the SOH Program would be required
85265 to administer grants or fu nds, and the entity shall provide
86266 documentation to the Department in a timely manner as requested by
87267 the Department.
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89268 E. All mitigation shall be based upon the securing of all
90269 required local permits and applicable inspections in keeping with
91-local building codes and the Insurance Institute for Business and ENR. H. B. NO. 3089 Page 3
270+local building codes and the Insurance Institute for Business and
92271 Home Safety (IBHS) Fortified Homes Program. Mitigation projects are
93272 subject to random reinspection of all projects.
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95273 F. The Insurance Commissioner may promulgate rules and
96274 eligibility requirements necessary for the proper administration of
97275 this act and pursuant to any instructions or requirements on grants
98276 or funds received by the Department for the SOH Program.
99-
100277 SECTION 3. NEW LAW A new section of law to be codified
101278 in the Oklahoma Statutes as Section 973 of Title 36, unless there is
102279 created a duplication in numbering, reads as follows:
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104280 A. To be eligible for a grant, residential property owners
105281 applying for a grant must be able to meet the eligibility
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106308 requirements as set forth by the Insurance Department for each grant
107309 type. These requirements shall include, but not be limited to, the
108310 following:
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110311 1. The residential property owner shall have or be constructing
111312 insurable property, as defined in Section 963 of Title 36 of the
112313 Oklahoma Statutes, that has been granted a homestead exemption, or,
113-if new build, provides other documentation approved by the Insurance
314+if new build, provides other documentation approved by the
114315 Commissioner;
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116316 2. The residential property owner shall claim their primary
117317 residence in a county where grants are being approved;
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119318 3. The home to be mitigated shall be an owner-occupied, single-
120-family, primary residence and cannot be a condominium or mobile
319+family, primary residence, and cannot be a condominium or mobile
121320 home;
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123321 4. The home shall be in good repair unless damaged by a tornado
124322 or other catastrophic windstorm event or hail. SOH Program grant
125323 funds cannot be used for main tenance or repairs but may be used in
126324 conjunction with repairs or reconstruction necessitated by damages
127325 from a tornado or other catastrophic windstorm event or hail;
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129326 5. A Certified IBHS Evaluator shall pre qualify the insurable
130327 property as mitigable and identify all improvements required to
131328 achieve IBHS FORTIFIED Roof™ (Roof), FORTIFIED Silver™ (Silver),
132329 FORTIFIED Gold™ (Gold), or successor designation , or similar
133330 standard approved by the Insurance Commissioner. The residential
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134357 property owner shall select t he evaluator from a list provided by
135358 the SOH Program and shall pay the evaluator 's fee;
136- ENR. H. B. NO. 3089 Page 4
137359 6. The residential property owner shall obtain bids from a t
138360 least three IBHS Certified C ontractors approved by the SOH Program;
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140361 7. The residential property owner shal l construct or retrofit
141362 the home to the Insurance IBHS Roof or Silver, Gold, or successor
142363 designation or similar standard approved by the Commissioner, which
143364 shall include the hail supplement ;
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145365 8. The residential property owner shall provide proof of an in-
146366 force policy providing wind insurance on the home; and
147-
148367 9. If the insurable property is in a special flood hazard area,
149368 the residential property owner shall provide p roof of an in-force
150369 flood insurance policy. The flood policy may be from the National
151370 Flood Insurance Program (NFIP) or a private carrier.
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153371 B. Grant applications shall be filed electronically with the
154372 Department in the form and manner prescribed by the Commissioner,
155373 along with any applicable transaction fees .
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157374 C. Documents, materials, and other information submitted to the
158375 Department by property owners or insurance compan ies in support of a
159376 grant application shall be confidential by law and pri vileged, shall
160377 not be subject to open records request s, shall not be subject to
161378 subpoena, and shall not be subject to discovery or admissible in
162379 evidence in any private civil ac tion.
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164406 D. Grants to residential property owners shall be used to
165407 construct or retrofit an insurable prop erty as defined in Section
166408 963 of Title 36 of the Oklahoma Statutes to resist loss due to a
167409 tornado or other catastrophic windst orm event or hail as prescribed
168410 in subsection B of Section 962 of Title 36 of t he Oklahoma Statutes .
169-
170411 E. Retrofit projects within six (6) months of the date the
171412 residential property owner receives notice of the grant approval.
172413 New builds shall be completed within the timeframe approved by the
173414 Commissioner. Failure to complete the pro ject timely may result in
174415 forfeiture of the grant.
175-
176416 F. Grant funds shall only be paid once a certificate has been
177417 issued for the fortified standard approved by the Commissioner.
178418 Grant funds shall be paid by the Department or another designated
179419 agency, on behalf of the res idential property owner, directly to the
180420 contractor who performed the mitigation work.
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182421 G. Applications will be accepted on a first-come, first-served
183422 basis within each income tier established by the Commiss ioner, with
184423 priority given to lower-income applicants, applicants who live in
185424 locations that, based on historical data, hav e a higher
186425 susceptibility to catastrophic weather events, and applicants
187426 meeting any other criteria the Commission er determines is
188427 appropriate to meet the purpose of the pro gram.
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190428 H. Any entity providing funds to the SOH Program shall be
191429 permitted to establish additional rules and guidelines under which
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192456 those funds may be used, as long as such rules and g uidelines do not
193457 violate any state or federal law.
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195458 I. The Department may cond uct random inspections of funds,
196459 records, and/or properties to detect any fraud.
197-
198460 SECTION 4. NEW LAW A new section of law to be codified
199461 in the Oklahoma Statutes as Section 974 of Title 36, unless there is
200462 created a duplication in nu mbering, reads as follows:
201-
202-A. Under the Strengthen Oklahoma Homes (SOH) Program, a
203-residential property owner shall hire an IBHS certified contractor
204-who is capable of performing work that satisfies the standards
205-prescribed by this act and the rules adopted thereto.
206-
463+A. Under the SOH Program, a residential property owner shall
464+hire an IBHS certified contractor who is capable of performing work
465+that satisfies the standards prescribed by th is act and the rules
466+adopted thereto.
207467 B. The Insurance Department shall not endorse or otherwise
208468 provide preferential treatment to any contractor.
209-
210469 C. A residential property owner is responsible for any amount
211470 owed to a contractor that exceeds awarded grant monies.
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213471 D. To be eligible to work on a project fun ded by the SOH
214472 Program as a contractor, a contractor shall meet all program
215473 requirements, including, but not limited to, those listed in this
216474 subsection, and maintain a current copy of all applicable
217475 certificates, licenses, and proof of insurance coverages with the
218476 program office:
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220477 1. If required under Oklahoma law, the contractor shall hold a
221478 valid and active contractor's license or registration in Oklahoma
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222505 and be free from all disciplinary action by the applicable licensing
223506 board;
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225507 2. If applicable, the c ontractor shall be register ed to do
226-business in Oklahoma with the Se cretary of State; ENR. H. B. NO. 3089 Page 6
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508+business in Oklahoma with the Se cretary of State;
228509 3. The contractor shall have an in-force general liability
229510 policy with Five Hundred Thousand Dollars ( $500,000.00) in liability
230511 coverage;
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232-4. The contractor shall have workers' compensation and
512+4. The contractor shall have worker's compensation and
233513 employer's liability insurance in accordanc e with and to the extent
234514 required by Oklahoma law;
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236515 5. The contractor shall hold an active IBHS FORTIFIED Ro of™
237516 Contractor Certification or FORTIFIED Professional Certification.
238517 The contractor is responsible for payi ng all fees associated with
239518 certification and training;
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241519 6. The contractor must su ccessfully register as a supplier or
242520 payee with the Office of Management and Enterprise Services;
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244521 7. The contractor shall maintain accurate cont act information
245522 with the SOH Program;
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247523 8. The contractor shall agr ee to follow the SOH Program's
248524 procedures and rules as prescribed by the Insurance Commissioner;
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250525 9. The contractor shall not have a financial interest in any
251526 project funded by the SOH Program for which they perform work other
252527 than receiving payment on behalf of the homeowner from the SOH
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253554 Program and shall report to the SOH Program any potential conflicts
254555 of interest before work commences; and
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256556 10. The contractor shall not be the evaluator for any project
257557 funded by the SOH Program.
258-
259558 SECTION 5. NEW LAW A new section of law to be codified
260559 in the Oklahoma Statutes as Section 975 of Title 36, unless there is
261560 created a duplication in numbering, reads as follows:
262-
263-To be eligible to work on a project funded by the Strengthen
264-Oklahoma Homes (SOH) Program as an evaluat or, the evaluator shall
265-meet all program requirements, including, but not limited to, those
266-listed in this section, and maintain a current copy of all
267-applicable certificates and lice nses with the SOH Pro gram office:
268-
561+To be eligible to work on a project funded by the SOH Program as
562+an evaluator, the evaluator shall meet all program requirements,
563+including, but not limited to, those listed below and m aintain a
564+current copy of all applicable certificates and lice nses with the
565+SOH Program office:
269566 1. The evaluator must be in good standing with IBHS and
270-maintain an active IBHS certification as a FORTIFIED Home Evaluator. ENR. H. B. NO. 3089 Page 7
567+maintain an active IBHS certification as a FORTIFIED Home Evaluator.
271568 The evaluator is responsible for paying all fees associated with
272569 certification and training;
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274570 2. If applicable, the evaluator shall be registered to do
275571 business in Oklahoma with the Sec retary of State;
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277572 3. The evaluator shall ag ree to follow the SOH Program's
278573 procedures and rules as prescribed by the Commissioner;
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280574 4. The evaluator shall maintain accurate contact information
281575 with the SOH Program;
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283602 5. The evaluator shall not have any fina ncial interest in any
284603 project which they inspect for designation purposes for the SOH
285604 Program;
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287605 6. The evaluator shall not be a contractor or supplier of any
288-materials or products or systems installed in any ho me they inspect
289-for designation purposes f or the SOH Program;
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606+materials and/or products or systems installed in any ho me they
607+inspect for designation purposes f or the SOH Program;
291608 7. The evaluator shall not be the sales agent for any home
292609 being designated for the SOH Program; and
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294610 8. The evaluator shall inform the SOH Program of any potential
295611 conflicts of interest.
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297612 SECTION 6. NEW LAW A ne w section of law to be codified
298613 in the Oklahoma Statutes as Section 976 of Title 36, unless there is
299614 created a duplication in numbering, reads as follows:
300-
301615 A. There is hereby created in the State Treasury a revolving
302616 fund for the Insurance Department, to be designated the "Strengthen
303617 Oklahoma Homes Revolving Fund". The fund shall be a continuing
304618 fund, not subject to fiscal year limitation s, and shall consist of
305619 any monies deposited to the fund from the receipt of fede ral grants
306620 or funds or from other sources of grants or funds. All monies
307621 accruing to the credit of the fund are hereby appropriated and may
308622 be budgeted and expended by the Department for the pur pose of
309-assisting the Strengthen Oklahoma Homes (SOH) Program in performing
310-all acts that relate to the function and purpose of the SOH Program.
311-Warrants for expenditures from the revolving fund shall be drawn by
312-the State Treasurer, based on claims signed b y an authorized
313-employee or employees of the In surance Department, and filed with
314-the Director of the Office of Management an d Enterprise Services.
315- ENR. H. B. NO. 3089 Page 8
623+assisting the SOH Progra m in performing all acts that relate to the
624+function and purpose of the SOH Program. Warrants for expenditures
625+from the revolving fund shall be drawn by the State Treasurer, based
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652+on claims signed by an authorized employee or employees of the
653+Insurance Department, and filed with the Director of the Office of
654+Management and Enterprise Services.
316655 B. Monies collected pursuant to this act shall be deposited in
317656 the Strengthen Oklahoma Homes Revolvin g Fund. Monies shall not
318657 lapse, unless otherwise specified und er federal funding or fed eral
319658 grant, or a grant or funds from anothe r source, or be transferred to
320659 the State Insurance Commissioner Revolving Fund or other state funds
321660 and shall not be redistributed.
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323661 C. Notwithstanding any other provi sion of law, the Insu rance
324662 Commissioner may transfer from the State Insurance Commissione r
325663 Revolving Fund to the Strengthen Oklahoma Homes Revolving Fund up to
326664 fifty percent (50%), but in an amount not to exceed Ten Million
327665 Dollars ($10,000,000.00), of the balance remaining in the State
328666 Insurance Commissioner Revolving Fund at the end of each fiscal year
329667 beginning with the fiscal year ending on June 30, 2024.
668+SECTION 7. This act shall become effective November 1, 2024.
330669
331-SECTION 7. This act shall become effective November 1, 2024.
332- ENR. H. B. NO. 3089 Page 9
333-Passed the House of Represen tatives the 6th day of May, 2024.
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695+Passed the House of Representatives the 12th day of March, 2024.
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337699
338700 Presiding Officer of the House
339701 of Representatives
340702
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343-Passed the Senate the 25th day of April, 2024.
705+Passed the Senate the ___ day of __________, 2024.
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348710 Presiding Officer of the Senate
349711
350-
351-OFFICE OF THE GOVERNOR
352-Received by the Office of the Governor this _______ _____________
353-day of ___________________, 20_______, at _______ o'clock _______ M.
354-By: _________________________________
355-Approved by the Governor of the State of Oklahoma this _____ ____
356-day of ___________________, 20_______, at _______ o'clock _______ M.
357-
358-
359- _________________________________
360- Governor of the State of Oklahoma
361-
362-OFFICE OF THE SECRETARY OF STATE
363-Received by the Office o f the Secretary of State this __________
364-day of ___________________, 20_______, at _______ o'clock _______ M.
365-By: _________________________________
366-