An Act
ENROLLED HOUSE
BILL NO. 3089 By: Tedford, Hefner, and
Rosecrants of the House
and
Pemberton of the Senate
An Act relating to insurance; establishing the
Strengthen Oklahoma Homes Act; establishing the
Strengthen Oklahoma Homes (SOH) Program within the
Department of Insurance for certain period of time ;
clarifying applicability of program; directing
Department to make certain e fforts to obtain funds;
describing qualifying entities for program grants;
permitting Insurance Commissioner to promulgate rules
and requirements; providing list of requirements;
directing for electronic filing of applications;
clarifying confidentiality of grant applications;
directing use of grants for residential properties;
providing time limit; requiring certificate before
payment of grant funds; directing who shall pay grant
funds; directing that applications are first -come,
first-served; permitting entities providing funds to
program to establish certain additional rules and
guidelines; permitting Insurance Department to
conduct inspections; directing residential property
owners to hire contractors with certain
certification; prohibiting the Insurance Department
from making endorsements; clarifying responsibility
for owed amounts beyond grant; providing requirements
for contractor eligibility; providing requirements
for evaluator eligibility; creating the Strengthen
Oklahoma Homes Revolving Fund; directing for deposit
of certain monies; permitting Insurance Commissioner
to transfer certain funds; providing for
codification; and providing an effective date.
SUBJECT: Insurance
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: ENR. H. B. NO. 3089 Page 2
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 971 of Title 36, unless there is
created a duplication in numb ering, reads as follows:
This act shall be known and may be cited as the "Strengthen
Oklahoma Homes Act".
SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 972 of Title 36, unless there is
created a duplication in numbering, reads as follows:
A. There is hereby established within the Department of
Insurance the Strengthen Oklahoma Homes (SOH) Program, to continue
until November 1, 2027 .
B. This act does not create an entitlement for property owners
or obligate the state in any way to fund the inspection,
construction, or retrofitting of residential property in this state.
Implementation of the SOH Program is subject to the receipt of
federal grants or funds or from other sources of grants or funds.
The Department shall use its best efforts to obtain grants or funds
from the federal government or other funding sources to supplement
the financial resources of t he SOH Program that may be pro vided by
the state.
C. The SOH Program shall apply for financial grants to
construct or retrofit insurable property a s defined in Section 963
of Title 36 of the Oklahoma Statutes to resist loss due t o a tornado
or other catastrophic wind storm events or hail as prescribed in
subsection B of Section 962 of Tit le 36 of the Oklahoma Statutes.
D. The SOH Program may also make grants or funding availabl e to
nonprofit entities for projects to construct or retrofit insurable
properties to resist loss due to tor nado or other catastrophic
windstorm events or hail if such grant s or funding to nonprofit
entities are allowable under grant o r funding rules, requirements,
guidelines, or criteria. However, a nonprofit entity shall agree to
administer the grants or fund s as the SOH Program would be required
to administer grants or fu nds, and the entity shall provide
documentation to the Department in a timely manner as requested by
the Department.
E. All mitigation shall be based upon the securing of all
required local permits and applicable inspections in keeping with
local building codes and the Insurance Institute for Business and ENR. H. B. NO. 3089 Page 3
Home Safety (IBHS) Fortified Homes Program. Mitigation projects are
subject to random reinspection of all projects.
F. The Insurance Commissioner may promulgate rules and
eligibility requirements necessary for the proper administration of
this act and pursuant to any instructions or requirements on grants
or funds received by the Department for the SOH Program.
SECTION 3. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 973 of Title 36, unless there is
created a duplication in numbering, reads as follows:
A. To be eligible for a grant, residential property owners
applying for a grant must be able to meet the eligibility
requirements as set forth by the Insurance Department for each grant
type. These requirements shall include, but not be limited to, the
following:
1. The residential property owner shall have or be constructing
insurable property, as defined in Section 963 of Title 36 of the
Oklahoma Statutes, that has been granted a homestead exemption, or,
if new build, provides other documentation approved by the Insurance
Commissioner;
2. The residential property owner shall claim their primary
residence in a county where grants are being approved;
3. The home to be mitigated shall be an owner-occupied, single-
family, primary residence and cannot be a condominium or mobile
home;
4. The home shall be in good repair unless damaged by a tornado
or other catastrophic windstorm event or hail. SOH Program grant
funds cannot be used for main tenance or repairs but may be used in
conjunction with repairs or reconstruction necessitated by damages
from a tornado or other catastrophic windstorm event or hail;
5. A Certified IBHS Evaluator shall pre qualify the insurable
property as mitigable and identify all improvements required to
achieve IBHS FORTIFIED Roof™ (Roof), FORTIFIED Silver™ (Silver),
FORTIFIED Gold™ (Gold), or successor designation, or similar
standard approved by the Insurance Commissioner. The residential
property owner shall select t he evaluator from a list provided by
the SOH Program and shall pay the evaluator 's fee;
ENR. H. B. NO. 3089 Page 4
6. The residential property owner shall obtain bids from at
least three IBHS Certified Contractors approved by the SOH Program;
7. The residential property owner shal l construct or retrofit
the home to the Insurance IBHS Roof or Silver, Gold, or successor
designation or similar standard approved by the Commissioner, which
shall include the hail supplement;
8. The residential property owner shall provide proof of an in-
force policy providing wind insurance on the home; and
9. If the insurable property is in a special flood hazard area,
the residential property owner shall provide proof of an in-force
flood insurance policy. The flood policy may be from the National
Flood Insurance Program (NFIP) or a private carrier.
B. Grant applications shall be filed electronically with the
Department in the for m and manner prescribed by the Commissioner,
along with any applicable transaction fees .
C. Documents, materials, and other information submitted to the
Department by property owners or insurance compan ies in support of a
grant application shall be confi dential by law and privileged, shall
not be subject to open records request s, shall not be subject to
subpoena, and shall not be subject to discovery or admissible in
evidence in any private civil ac tion.
D. Grants to residential property owners shall be used to
construct or retrofit an insurable property as defined in Section
963 of Title 36 of the Oklahoma Statutes to resist loss due to a
tornado or other catastrophic windst orm event or hail as prescribed
in subsection B of Section 962 of Title 36 of t he Oklahoma Statutes.
E. Retrofit projects within six (6) months of the date the
residential property owner receives notice of the grant approval.
New builds shall be completed within the timeframe approved by the
Commissioner. Failure to complete the pr oject timely may result in
forfeiture of the grant.
F. Grant funds shall only be paid once a certificate has been
issued for the fortified standard approved by the Commissioner.
Grant funds shall be paid by the Department or another designated
agency, on behalf of the residential property owner, directly to the
contractor who performed the mitigation work.
ENR. H. B. NO. 3089 Page 5
G. Applications will be accepted on a first-come, first-served
basis within each income tier established by the Commiss ioner, with
priority given to lower-income applicants, applicants who live in
locations that, based on historical data, hav e a higher
susceptibility to catastrophic weather events, and applicants
meeting any other criteria the Commission er determines is
appropriate to meet the purpose of the program.
H. Any entity providing funds to the SOH Program shall be
permitted to establish additional rules and guidelines under which
those funds may be used, as long as such rules and g uidelines do not
violate any state or federal law.
I. The Department may conduct random inspections of funds,
records, and/or properties to detect any fraud.
SECTION 4. NEW LAW A new secti on of law to be codified
in the Oklahoma Statutes as Section 974 of Title 36, unless there is
created a duplication in numbering, reads as follows:
A. Under the Strengthen Oklahoma Homes (SOH) Program, a
residential property owner shall hire an IBHS certified contractor
who is capable of performing work that satisfies the standards
prescribed by this act and the rules adopted thereto.
B. The Insurance Department shall not endorse or otherwise
provide preferential treatment to any contractor.
C. A residential property owner is responsible for any amount
owed to a contractor that exceeds awarded grant monies.
D. To be eligible to work on a project fun ded by the SOH
Program as a contractor, a contractor shall meet all program
requirements, including, but not limited to, those listed in this
subsection, and maintain a current copy of all applicable
certificates, licenses, and proof of insurance coverages with the
program office:
1. If required under Oklahoma law, the contractor shall hold a
valid and active contractor's license or registration in Oklahoma
and be free from all disciplinary action by the applicable licensing
board;
2. If applicable, the c ontractor shall be registered to do
business in Oklahoma with the Se cretary of State; ENR. H. B. NO. 3089 Page 6
3. The contractor shall have an in-force general liability
policy with Five Hundred Thousand Dollars ( $500,000.00) in liability
coverage;
4. The contractor shall have workers' compensation and
employer's liability insurance in accordanc e with and to the extent
required by Oklahoma law;
5. The contractor shall hold an active IBHS FORTIFIED Ro of™
Contractor Certification or FORTIFIED Professional Certification.
The contractor is responsible for payi ng all fees associated with
certification and training;
6. The contractor must su ccessfully register as a supplier or
payee with the Office of Management and Enterprise Services;
7. The contractor shall maintain accurate cont act information
with the SOH Program;
8. The contractor shall agr ee to follow the SOH Program's
procedures and rules as prescribed by the Insurance Commissioner;
9. The contractor shall not have a financial interest in any
project funded by the SOH Program for which they perform work other
than receiving payment on behalf of the homeowner from the SOH
Program and shall report to the SOH Pr ogram any potential conflicts
of interest before work com mences; and
10. The contractor shall not be the evaluator for any project
funded by the SOH Program.
SECTION 5. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 975 of Title 36, unless there is
created a duplication in numbering, reads as follows:
To be eligible to work on a project funded by the Strengthen
Oklahoma Homes (SOH) Program as an evaluat or, the evaluator shall
meet all program requirements, including, but not limited to, those
listed in this section, and maintain a current copy of all
applicable certificates and lice nses with the SOH Pro gram office:
1. The evaluator must be in good standing with IBHS and
maintain an active IBHS certification as a FORTIFIED Home Evaluator. ENR. H. B. NO. 3089 Page 7
The evaluator is responsible for paying all fees associated with
certification and training;
2. If applicable, the evaluator shall be registered to do
business in Oklahoma with the Sec retary of State;
3. The evaluator shall ag ree to follow the SOH Progr am's
procedures and rules as prescribed by the Commissioner;
4. The evaluator shall maintain accurate contact information
with the SOH Program;
5. The evaluator shall not have any fina ncial interest in any
project which they inspect for designation purposes for the SOH
Program;
6. The evaluator shall not be a contractor or supplier of any
materials or products or systems installed in any ho me they inspect
for designation purposes f or the SOH Program;
7. The evaluator shall not be the sales agent for any home
being designated for the SOH Program; and
8. The evaluator shall inform the SOH Program of any pote ntial
conflicts of interest.
SECTION 6. NEW LAW A ne w section of law to be codified
in the Oklahoma Statutes as Secti on 976 of Title 36, unless there is
created a duplication in numbering, reads as follows:
A. There is hereby created in the State Treasury a revolving
fund for the Insurance Department, to be designated the "Strengthen
Oklahoma Homes Revolving Fund". The fund shall be a continuing
fund, not subject to fiscal year limitation s, and shall consist of
any monies deposited to the fund from the receipt of fede ral grants
or funds or from other sources of grants or funds. All monies
accruing to the credit of the fund are hereby appropriated and may
be budgeted and expended by the Department for the pur pose of
assisting the Strengthen Oklahoma Homes (SOH) Program in performing
all acts that relate to the function and purpose of the SOH Program.
Warrants for expenditures from the revolving fund shall be drawn by
the State Treasurer, based on claims signed b y an authorized
employee or employees of the In surance Department, and filed with
the Director of the Office of Management an d Enterprise Services.
ENR. H. B. NO. 3089 Page 8
B. Monies collected pursuant to this act shall be deposited in
the Strengthen Oklahoma Homes Revolvin g Fund. Monies shall not
lapse, unless otherwise specified under federal funding or fed eral
grant, or a grant or funds from anothe r source, or be transferred to
the State Insurance Commissioner Revolving Fund or other state funds
and shall not be redistributed.
C. Notwithstanding any other provi sion of law, the Insurance
Commissioner may transfer from the State Insurance Commissione r
Revolving Fund to the Strengthen Oklahoma Homes Revolving Fund up to
fifty percent (50%), but in an amount not to exceed Ten Million
Dollars ($10,000,000.00), of the balance remaining in the State
Insurance Commissioner Revolving Fund at the end of each fiscal year
beginning with the fiscal year ending on June 30, 2024.
SECTION 7. This act shall become effective November 1, 2024.
ENR. H. B. NO. 3089 Page 9
Passed the House of Represen tatives the 6th day of May, 2024.
Presiding Officer of the House
of Representatives
Passed the Senate the 25th day of April, 2024.
Presiding Officer of the Senate
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this _______ _____________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _____ ____
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office o f the Secretary of State this __________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________