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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1485 By: Garvin
AS INTRODUCED
An Act relating to long-term care; requiring nursing
facility to maintain certain liability insura nce
coverage; describing policy or contract; providing
for penalties; requiring certain notices under
specified conditions; providing certain protections
against penalties; requiring prescription ,
completion, and certain update of specified forms;
specifying certain limit of lia bility protection;
providing income tax credit for certain liability
insurance premiums; requiring compliance with certain
provisions; specifying amount of credit; proh ibiting
refundability of cre dit; providing for the carry
forward of unused credit; and providing for
codification.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Section 1-1903.1 of Title 63, unless
there is created a duplication in numbering, reads as follows:
A. A nursing facility li censed by the State Department of
Health shall maintain liability insurance coverage of at least One
Million Dollars ($1,000 ,000.00) for each occurrence of negligence.
An insurance policy or contract required under this section shall
cover injury to a patient that occurs while the patient is on the
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premises of the nursing facility or in the care of a nursing
facility.
B. Except as provided by subsection C of this section, failure
by a nursing facility to renew the liability insurance policy or
contract or to maintain the policy o r contract in the required
amount may be grounds for license denial, revocation, or suspension
or other penalties imposed on the facility by the Department.
C. 1. If a nursing facility, for financial reasons or for lack
of availability of an underw riter willing to issue a policy, is
unable to secure the insurance required under subsection A of this
section, or if the policy limits are exha usted, the nursing facility
shall notify the patient, a relative, or guardian of each patient
for whom the nursing fac ility provides care that the liability
coverage is not provided . The nursing facility shall notify the
State Department of Health that coverage was not obtained under this
section. Provided, the nursing facility shall coordinate with the
Insurance Department and State Department of Health in an effort to
obtain coverage.
2. A nursing facili ty that meets the conditions and
requirements of paragraph 1 of this subsection shall no t be subject
to license denial, revocation, or suspension or other penalties
imposed by the Department solely on the bas is of failure by a
nursing facility to renew the liability insurance policy or contract
or to maintain the policy or c ontract in the required amount.
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D. The State Commissioner of Health shall prescribe a standard
form to be signed and dated by an insurance agen t licensed in this
state stating that the nursing facility has an unexpired and va lid
insurance policy or contract of at least One Million Dollars
($1,000,000.00) that meets the requireme nts of this section. This
form shall be completed annuall y in the form and manner prescribed
by the Commissioner.
E. 1. The Commissioner shall prescribe a standard form for the
facility to provide to patients, relatives , or guardians notifying
the patients, relatives , or guardians that the facility does not
carry liability insurance for the reasons allowed in su bsection C of
this section. This form shall be signed and dated by a patient,
relative, or guardian and shall be maintained in the file of the
patient.
2. If the facility is without insurance for reasons provided
for in subsection C of this section for longer than one (1) year ,
the facility shall update the form provided to patients, relatives,
or guardians under this subsection with signatures and dates
annually.
F. In no case shall the inability to obtain coverage under
subsection C of this section serve to indemnify the nursing facility
due to negligence.
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SECTION 2. NEW LAW A new section of law to be codified
in the Oklahoma Statutes as Sect ion 2357.411 of Title 68, unless
there is created a duplication in numbering, reads as follows:
A. For tax years 2025 and subseq uent years, there shall be
allowed a credit against the tax imposed pursuant to Section 2355 of
Title 68 of the Oklahoma Statu tes for nursing facilities in this
state paying liability insurance coverage premiums.
B. The credit authorized by subsection A of this section may be
claimed only if the facili ty maintains compliance with the
provisions of Section 1 of this act for the entire tax year.
C. The credit authorized by subsection A of this section shall
be in the amount of fifty percent ( 50%) of the premiums paid for
liability insurance coverage of at least One Million Dollars
($1,000,000.00) and twenty-five percent (25%) of the prem iums paid
for liability insurance coverage of at least Five Hundred Thousand
Dollars ($500,000.00) but less than One Million Dollars
($1,000,000.00).
D. The credit authorized by subsection A of this section shall
not be used to reduce the tax liabil ity of the qualified employer to
less than zero (0). Credits allowed but not us ed in a tax year may
be carried forward three (3) subsequent tax years.
59-2-3360 DC 12/15/2023 6:47:56 PM