SENATE FLOOR VERSION - SB1456 SFLR Page 1 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 SENATE FLOOR VERSION February 28, 2024 AS AMENDED SENATE BILL NO. 1456 By: Treat of the Senate and Kannady of the House [ Workers’ Compensation Court of Existing Cl aims - divisions - jurisdiction - costs - duty - appointment - rules - authority - appeal - report - funds - effective date - emergency ] BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: SECTION 1. AMENDATORY 20 O.S. 2021, Section 30.14, is amended to read as follows: Section 30.14. A. 1. In addition to the provisions of Sections 30.1 through 30.12 30.19 of Title 20 of the Oklahoma Statutes, and in addition to the four permanent divisions established by Section 30.2 of Title 20 of the Oklahoma Statutes, the Court of Civil Appeals shall consist of as many additional divisions as the Supreme Court may deem advisable to convene for prompt disposition of its docket. Each division shall consist of three Judges, at least two of whom shall con cur in any decision. In the exercise of its powers g ranted by Article VII, Section 6 of the SENATE FLOOR VERSION - SB1456 SFLR Page 2 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Oklahoma Constitution, the Supreme Court shall make temporary assignments of judicial officers, active or retired, and lawyers, having prior to their assignment the qualifications of a district judge, to sit on a division of the Court of Civil Appeals convened under the authority of this act section. Each division of the Court of Civil Appeals shall select its presiding Judge. The S upreme Court may prescribe by ru le where the division shall sit and how that Court shall conduct its business and practice before it. 2. The Court of Civil Appeals shall establish a division to be referred to as the Court of Existing Claims (CEC) Division of the Court of Civil Appeals which shall be vested with jurisdiction over all claims filed pursuant to the Workers ’ Compensation Code or previous statute in effect on the date of an injury that occurred before February 1, 2014. In no event does the CEC Division have jurisdiction over any claim arising on or after the effective d ate of this act. B. Each division of the Court of Ci vil Appeals convened u nder the authority of this act section shall have jurisdiction to determine or otherwise dispose of any case assigned to it by the Supreme Court, and its decisions, when final, shall be neither appealable to the Supreme Court nor be subject to reexaminati on by another division of the Court of Civil Appeals or by the Judges of that Court sitting en banc. The Supreme Court may recall a case from the Court of Civil Appeals; it may review a decision of the SENATE FLOOR VERSION - SB1456 SFLR Page 3 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Court of Civil Appeals when a ma jority of its Justices direct that certiorari be granted. In any case assigned to it by the Supreme Court, the Court of Civil Appeals shall have the power to issue writs of habeas corpus, mandamus, quo warranto, cert iorari, and prohibition. C. The opinions of the Court of Ci vil Appeals shall be written in the form prescribed by the Supreme Court. No opinion of the Court of Civil Appea ls shall be binding or cited as a precedent unless it has been approved by the Supr eme Court for publication in the official reporter. The Supr eme Court shall prescribe by rule which opinion or decision, if any, of the Court of Civil Appeals shall be published in the unofficial reporter. D. The jurisdiction, powers, duties and procedur es of the Court of Civil Appeals shall be as provided by rul es of the Supreme Court unless otherwise provided by statute. E. No judicial officer, except as otherwise author ized by law, temporarily assigned to sit on the Court of Civil Appeals shall be entitled to additional compensation for ju dicial service on that Court. Expenses of judicial officers and lawyers assigned to the Court of Civil Appeals incurred in performing their duties shall be reimbursed pursuant to the State Travel Reimbursement Act, S ection 500.1 et seq. of Title 74 of the Oklahoma Statutes. SENATE FLOOR VERSION - SB1456 SFLR Page 4 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 F. The Supreme Court shall prescribe by rule the scope of review it will afford when a petition for certiorari to the Court of Civil Appeals is filed. SECTION 2. AMENDATORY 85A O.S. 2021, Section 122, as amended by Section 1, Chapt er 19, 1st Extraordinary Session, O.S.L. 2023 (85A O.S. Supp. 2023, Section 122), is amended to read as follows: Section 122. A. The Workers’ Compensation Commission Revolving Fund established by Section 28.1 of this title shall be used for the costs of administering the Administrative Workers’ Compensation Act and for other purposes as authorized by law. B. For the purpose of providing funds for the Workers’ Compensation Commission Revolving F und, for the Workers’ Compensation Court of Existing Claims ( CEC) Division of the Court of Civil Appeals Administrative Fund created in Section 401.1 of this title, for the Multiple Injury Trust Fund created in Section 28 of this title, and to fund other p rovisions within this title, the following tax rates shall a pply: 1. Each mutual or interinsurance association, stock company, CompSource Mutual Insurance Company or other insurance carrier writing workers’ compensation insurance in this state shall pay t o the Oklahoma Tax Commission an assessment at a rate of one percent (1%) of all gross direct premiums written during each quarter of the calendar year for workers’ compensa tion insurance on risks located SENATE FLOOR VERSION - SB1456 SFLR Page 5 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 in this state after deducting from such gross direc t premiums, return premiums, unabsorbed portions of any depo sit premiums, policy dividends, safety refunds, savings and other similar returns paid or credited to policyholde rs. Such payments to the Oklahoma Tax Commission shall be made not later than the fifteenth day of the month following the close of each quarte r of the calendar year in which such gross direct premium is collected or collectible. Contributions made by in surance carriers and CompSource Mutual Insurance Company, under the provisions of t his section, shall be considered for the purpose of computin g workers’ compensation rates; and 2. When an employer is authorized to become a self -insurer, the Commission shall so notify the Oklahoma Tax Commission, giving the effective date of such author ization. The Oklahoma Tax Commission shall then assess and c ollect from the employers carrying their own risk an assessment at the rate of two percent (2%) of the total compensation for permanent total disability awards, permanent partial disability award s and death benefits paid out during each quarter of the calendar year by the employers. Such assessment shall be payable by the employers and collected by the Oklahoma Tax Commission according to the provisions of this section regarding payment and collection of the assessment created in paragraph 1 of this subsection. SENATE FLOOR VERSION - SB1456 SFLR Page 6 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 C. It shall be the duty of the Oklahoma Tax Commission to collect the payments provided for in this title . The Oklahoma Tax Commission is hereby authorized to bring an action for the reco very of any delinquent or unpaid payments required in this s ection. The Oklahoma Tax Commission may also enforce payments by proceeding in accordance with the provisions of Section 98 of this title. D. The Oklahoma Tax Commission shall pay monthly to the State Treasurer to the credit of the Multiple Injury Trust F und all monies collected under the provisions of this section , less the annual amounts which shall be apportione d by the Oklahoma Tax Commission , as follows; provided, however, if the fund in any one month is insufficient to make the required payments, th e unpaid portion shall be paid as soon as funds become available : 1. Five Million Five Hundred Thousand Dollars ($5,500,000.00) shall be payable each fiscal year in equal monthly installments to the credit of the Workers’ Compensation Commission Revolving Fund established in Section 28.1 of this title to be used to implement the provisions of this title; and 2. One Million Seven Hundred Fifty Thousand Dollars ($1,750,000.00) shall be payable in e qual monthly installments to the credit of the Workers' Compensation Court of Existing Claims (CEC) Division of the Court of Civil Appeals Administrative Fund established in Section 401.1 of this title for the fiscal year ending June 30, 2023, and Two Hundred Fifty Thousand Dollars SENATE FLOOR VERSION - SB1456 SFLR Page 7 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 ($250,000.00) payable in equal mon thly installments to such fund for the fiscal year beginning July 1, 2023, and each subsequent fiscal year. Monies deposited in the Workers’ Compensation Court of Existing Claims (CEC) Division o f the Court of Civil Appeals Administrative Fund shall be used by the Workers’ Compensation Court of Existing Claims (CEC) Division to implement provisions provided for in t his title. All unencumbered funds remaining in the Workers' Compensation Administr ation Court of Existing Claims (CEC) Division of the Court of Criminal Appeals Administrative Fund on July 1, 2027, shall be transferred to the State Treasurer to be returne d to the Multiple Injury Trust Fund. E. The refund provisions of Sections 227 thro ugh 229 of Title 68 of the Oklahoma Statutes shall be applic able to any payments made pursuant to this section. SECTION 3. AMENDATORY 85A O.S. 2021, Section 400, is amended to read as follows: Section 400. A. The Workers’ Compensation Court of Existing Claims (CEC) shall be renamed the Workers’ Compensation Court of Existing Claims (CEC) Division of the Court of Civil Appeals as established by Section 30.14 of Title 20 of the Ok lahoma Statutes for the purpose of hea ring disputes relating to claims that arise arose before February 1, 2014. The Court shall consist of the existing judges for the remainder of his or her term. Each judge of SENATE FLOOR VERSION - SB1456 SFLR Page 8 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the Court shall continue to serve as the appointment to a designated position on the Court. The terms of the judges by position number shall expire on the following dates: Position 4 shall expire 7-1-20. Position 5 shall expire 7-1-20. Position 8 shall expire 7-1-20. Position 9 shall expire 7-1-20. B. Effective July 1, 2020 July 1, 2024, the Workers’ Compensation Court of Ex isting Claims CEC Division of the Court of Civil Appeals shall consist of one judge to be appointed by the Governor, with confir mation by the Senate. The judge shall be appointed for a term to expire on July 1, 2022. The Governor shall select the judge from a list of three applicants submitted to the Governor by the Judicial Nominating Commission. If the list is not acceptable to the Governor, the Governor may request from the Judicial Nominating Commission a list of names of three additional applicants. Any present judge of the Court of Existing Claims may apply to the Judicial Nominating Commission for appointment to fill any position authorized by this section who currently serves as a member of the Court of Civil Appeals on a rotational basis as determined by the Chief Justice of t he Supreme Court. Such appointment shall be a n additional duty requirement . C. A judge may be removed for cause by the Court on the Judiciary prior to the expiration of his or her term. SENATE FLOOR VERSION - SB1456 SFLR Page 9 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 D. Each judge shall receive a salary e qual to that paid to a district judge of this state, and shall devote full time to his or her duties and shall not engage i n the private practice of law during the term in office. E. If a vacancy occurs on the Court of Existing Claims, the Governor shall appoint a judge to serve the remainder of the term from a list of three applicants submitted to the Governor b y the Judicial Nominating Commission, with confirmation of the State Senate. If the list is not acceptabl e to the Governor, the Governor may request from the Judicial Nominating Commission a list of the names of three additional applicants. F. 1. Effective January 1, 2020 July 1, 2024, the Governor shall appoint an appointment of the Administrator of the Court of Existing Claims, who shall serve at the pleasure of the Govern or. The Administrator shall be appointed by the Governor with the advice and consent of the Senate. The compen sation for the Administrator shall be set at ninet y percent (90%) of the compensati on of a district court judge shall terminate, with all duties to be assumed by the Administrative Director of th e Courts. 2. The Administrator Director shall employ and supervise the work of employees of the CEC Division of the Court of Civil Appeals and shall have the authority to expend funds and contract on beha lf of the Court CEC Division. The Administrator Director may contract with the Oklahoma Workers’ Compensation Commission to provide SENATE FLOOR VERSION - SB1456 SFLR Page 10 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 support services or personnel needs nec essary to carry out the purposes of the Court CEC Division and shall supervise the work of any such personnel as necessary to maintai n the CEC Division of the Court of Civil Appeals as a Court of Record. G. D. The CEC Division of the Court of Existing Claims Civil Appeals shall contract with the Oklahoma Workers’ Compensation Commission to integrate its case manage ment and records Information Technology System into the s ystem of the Oklahoma Workers’ Compensation Commission with such integration to be compl eted on or before July 1, 2022 July 1, 2024. The CEC Division shall contract with the Oklahoma Workers’ Compensation Commission to pa y for the cost of such integration an d costs associated with the maintenance and upgrades to the system. The Court Commission shall be entitled to any fees generated for the retrieval of such data. H. E. The Court CEC Division shall operate by the rul es adopted by the Workers’ Compensation Court prior to February 1, 2014. I. F. The Court of Civil Appeals is hereby designated and confirmed as a court of record for any and all cases of the Court of Existing Claims Division, with respect to any matter within the limits of its jurisdiction, and within such limits the judges thereof shall possess the powers and prerogatives of the judges of the other courts of record of this state including the power to punish for contempt those persons who disobey a subpoena, or refuse SENATE FLOOR VERSION - SB1456 SFLR Page 11 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 to be sworn or to ans wer as a witness, when lawfully ordere d to do so. J. G. The principal office CEC Division of the Court shall be situated in the City o f Oklahoma City in quarters assigned by the Office of Management and Enterprise Services. The Cou rt of Civil Appeals may hold hearings in any city of thi s state. K. H. All county commissioners , and presiding district judges of this state, or institutions of higher education shall make quarters available for the conducting of hearings by a judge of the Court CEC Division upon request by the Court. L. I. Judges The designated judge of the Workers’ Compensation CEC Division of the Court of Existing Claims Civil Appeals may punish for direct co ntempt pursuant to Sections 565, 565.1 and 566 of Title 21 of the Oklahoma Statutes. M. J. The CEC Division of the Court of Civil Appeals as established by Section 30.14 of Title 20 of the Oklaho ma Statutes shall be vested with jurisdiction over all claims filed pursuant to the Workers’ Compensation Code or previous statute in effect o n the date of an injury that occurred be fore February 1, 2014. In no event does the CEC Division have jurisdictio n over any claim arising on or after the effective d ate of this act. All claims so filed shall be heard by the judge sitting without a jury. The Court CEC Division shall have full power and auth ority to determine all questions in relation to payment of claims for compensation under SENATE FLOOR VERSION - SB1456 SFLR Page 12 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the provisions of the Workers ’ Compensation Code or previous statute in effect on the date of an injury that occurred before February 1, 2014. The Court CEC Division, upon application of either party, shall order a hearing. U pon a hearing, either party may present evidence and be represented by counsel. The decision of the Court designated judge of the CEC Division shall be final as to all questions of fact and law; provided, the decision of the Court judge may be appealed to the a division of the Court en banc of Civil Appeals of which the judge is not a member, or the Supreme Court as provided by the Workers ’ Compensation Code or previous statute in effect on the date of an injury that occurred before February 1, 2014. In the event that an insufficient number of active judges are available to comprise the three-judge en banc panel, retired or former judges of the dis trict court, Workers ’ Compensation Court or Workers’ Compensation Court of Existing Claims may be designated by the Presiding Judge of the Court of Existing Claims as eligible t o serve on such panel. The Governor shall provide to the Court of Existing Claims a list of designated judges eli gible for service on the Court en banc. The decision of the Court judge of the CEC Division shall be issued within thirty (30) days following the submission of the cas e by the parties. The power and jurisdiction of the Court over each case shall be continuing and it may, from time to time, make such modifications or changes with respect to SENATE FLOOR VERSION - SB1456 SFLR Page 13 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 former findings or ord ers relating thereto if, in its opinion, it may be justified. N. K. For an injury occurring before February 1, 2014, all benefits and procedures to obtain benefits shall be determ ined by the workers’ compensation law of this state in effect on the date of the injury. O. L. All accrued rights and penalties incurred pu rsuant to a final order of the Workers ’ Compensation Court or the CEC Division of the Court of Civi l Appeals shall be preserved. No accrued right, penalty incurred, or proceeding begun by virtue of a statute repealed by this act shall be abrogated by the terms of this act. P. M. Annually, on or before the first day of July, commencing with July 2019, the Administrator Administrative Director of the Courts shall prepare and submit electronically a report for the prior calendar year to the Governor, the Chief Justice of the Supreme Court, the President P ro Tempore of the Senate and the Speaker of the House of Representatives which shall include a statement of the number of awards made an d the causes of the accidents leading to the inju ries for which the awards were made, total work load data of the CEC Division of the Court of Civil Appeals, a detailed report of the work load of the judges of the CEC Division of the Court, a detailed statement of the expenses of the office of the Administrator of Workers’ Compensation Court of Existing Claims CEC Division, together with any other matter which SENATE FLOOR VERSION - SB1456 SFLR Page 14 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 the Administrator Director deems proper to report to the Governor including any recommendations h e or she may desire to make. Q. Subject to the availability of funds, t he Judge of the Court of Existing Claims may employ one at-will full- or part-time special workers’ compensation judge with jurisdiction to hear cases as set forth in subsection M of this section and as may be assigned by the Judge. The special workers’ compensation judge shall receive compensation for such services in accordance with the provisions of Section 92.1A of Title 20 of the Oklahoma Statutes. SECTION 4. AMENDATORY 85A O.S. 2021, Section 401, is amended to read as follows: Section 401. There is hereby created in the State Treasury a revolving fund for the Workers’ Compensation Court of Existing Claims (CEC) Division of the Court of Civil Appeals to be designated the “Workers’ Compensation Court of Existing Claims (CEC) Division of the Court of Civil Appeals Revolving Fund”. The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Workers’ Compensation CEC Division of the Court of Existing Claims Civil Appeals from all fees, penalties and fines imposed by the Workers’ Compensation CEC Division of the Court of Existing Claims Civil Appeals or its Administrator the Administrative Director of the Courts. All monies accruing to the credit of said such fund are hereby appropriated and may be budgeted and expended by the Workers’ Compensation CEC SENATE FLOOR VERSION - SB1456 SFLR Page 15 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 Division of the Court of Existing Claims Civil Appeals for the purpose of defraying necessary expens es of the Workers’ Compensation Court of Existing Claims CEC Division in performance of its duties. Expenditures from said such fund shall be made upo n warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and En terprise Services for approval and payment. SECTION 5. AMENDATORY 85A O.S. 2021, Section 401.1, is amended to read as follows: Section 401.1. There is hereby created in the State Treasury a revolving fund for the Workers’ Compensation Court of Existing Claims (CEC) Division of the Court of Civil Appeals to be designated the “Workers’ Compensation Court of Existing Claims (CEC) Division of the Court of Civil Appeals Administrative Fund”. The fund shall be a continuing fund, not su bject to fiscal year limitations, and shall consist of all monies received b y the Workers’ Compensation Court of Existing Claims from revenues apportioned pursuant to Section 122 of Title 85A of t he Oklahoma Statutes. All monies accruing to the credit of said such fund are hereby appropriated and may be budgeted and expended by the Workers’ Compensation CEC Division of the Court of Existing Claims Civil Appeals for the purpose of funding the operations of the Court, for administering the provisions of Titl es 85 and 85A of the Oklahoma Statutes, contracting with the Oklahoma Workers’ Compensation Commission to SENATE FLOOR VERSION - SB1456 SFLR Page 16 (Bold face denotes Committee Amendments) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 provide support services or personnel needs nec essary to carry out the purposes of the CEC Division of the Court of Civil Appeals, and for any other purpose related to the Administrative Workers ’ Compensation Act that the Court deems appropriate. Expenditures from said such fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment. SECTION 6. This act shall become effective July 1, 2024. SECTION 7. It being immediately ne cessary for the preservation of the public peace, health or safety, an emergency is hereby declared to exist, by reason whereof thi s act shall take effect and be in full force from and after its passage and approval. COMMITTEE REPORT BY: COMMITTEE ON APPRO PRIATIONS February 28, 2024 - DO PASS