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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1559 By: Pugh
AS INTRODUCED
An Act relating to the Office of Management and
Enterprise Services; amending 74 O.S. 2021, Section
85.58A, which relates to the state ris k management
program; excluding certain ins titutions of higher
education from certain definition; p rohibiting risk
management administrator from directing certain
insurance purchase; updating statutory references;
and providing an effect ive date.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.58A, is
amended to read as follows:
Section 85.58A. A. The Office of Management and Enterprise
Services (OMES) shall establi sh for all state agencies, whether or
not subject to the Oklahoma Central Purchasing Act, and other
entities as provided by law a comprehensive professional risk
management program which shall:
1. Identify and evaluate risks of loss an d exposures to loss to
officers, employees and properties;
2. Minimize risks through loss-prevention and loss-control
programs;
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3. Transfer risks, if economically advantageous to the s tate,
by acquiring commercial insurance, contractual pass through pass-
through of liability, or by other means;
4. Consolidate and administer risk management plans and
programs including self -insurance programs, except State Employees
Group Insurance the Oklahoma Employees Insurance Plan;
5. Determine feasibility of and, if feasibl e, establish self-
insurance programs, considering whether a program may be self -
supporting to remain financially and a ctuarially sound;
6. Provide a system to allocate insurance and program costs to
determine payment for insura nce coverage and program expenses
provided by the Office of Manag ement and Enterprise Services;
7. When requested by a state retirement system or the State and
Education Employees Group Insurance Oklahoma Employees Insurance and
Benefits Board, assist in obtaining insurance authorized by law. If
requested by the Oklahoma S tate Regents for Higher Educa tion, assist
trust funds for which the State Regents serve as trustees in
obtaining insurance authorized by law;
8. Assist state agencies and officers, employees, and members
thereof, charged wit h licensing authority, in obtaining insurance
for liability for judg ments, based on the licensing authority,
rendered by any court pursuant to federal law;
9. When requested by a public trust establ ished pursuant to
Title 60 of the Oklahoma Statutes of wh ich the State of Oklahoma is
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the beneficiary, obtain, provid e or assist the public trust in
obtaining insurance authorized by law or trust indenture covering
any board member, trustee, official, officer, employee or volunteer
for errors and omissions or li ability risks arising from the
performance of official duties pursua nt to law or trust indenture;
10. When requested by the Oklahoma State Regents for Higher
Education, for the purpose of insuring r eal property required
pursuant to Section 4018 of Title 7 0 of the Oklahoma Statutes, of
which the Oklahoma State Rege nts for Higher Education is the
beneficiary, obtain, provide or assist the Oklahoma State Regents
for Higher Education in obtaining insurance for the real property
pursuant to the provisions of th is section; and
11. Authorize the Risk Management Administrator to declare an
emergency for the purpose of mitigating damages to any state -owned
property insured und er the comprehensive professional risk
management program administered by OMES.
B. For the purposes of this section , “state agency” shall not
be construed to include colleges and universities under the
authority of the Oklahoma State Regents for Higher Education.
Colleges and universities may request the Risk Management
Administrator to advis e for the purchase of property insurance
coverage, but the Administrator shall not direct the purchase of
property insurance from a specific entity.
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C. The Director of the Office of Management and E nterprise
Services may hire or contract for the services of a Risk Management
Administrator to supervise the Comprehensive Professional Risk
Management Program comprehensive professional risk management
program established pursuant to this section. If appointed by the
Director as a state employee, the Risk Mana gement Administrator
shall be in the unclassified service.
C. D. The Risk Management Administrator shall evaluate
insurance coverage needs and in force for state age ncies, whether or
not subject to the Oklahoma Central Purchasing Act, and other
entities as provided by law. All entities shall submit to the Risk
Management Administra tor all information which t he Risk Management
Administrator deems necessary to perform this duty.
D. E. The Risk Management Administr ator in conjunction with the
State Purchasing Director under the authority of the Director of the
Office of Management and Enterprise Services may negotiate insurance
coverage and insurance -related services including, but not limited
to, insurance brokerage and consulting services. The State
Purchasing Director shall ensure open processes for solicitation and
qualification of insurance coverage and servi ces providers. The
State Purchasing Director shall award contracts for in surance
coverage and services to the provider or providers which offer th e
best and final terms and conditions. The State Purchasing Director
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may authorize the Risk Management Administrator to bind for
insurance coverage with providers.
E. F. The school districts of thi s state may request the Risk
Management Administrator to advise for the purchase of insurance
coverage for the school districts.
F. G. A state agency, whether or not subje ct to the Oklahoma
Central Purchasing Act, that contemplates purchase of property and
casualty insurance, shall provide details of the propos ed purchase
to the Risk Management Admi nistrator for approval or disapproval
prior to the purchase.
G. H. The Director of the Office of Management and Enterprise
Services shall promulgate rules to e ffect the provisions of the
comprehensive professional ri sk management program.
H. I. 1. a. Any community action agency established purs uant to
Sections 5035 through 5040 5040.1 of this title may
participate in the comprehensive professional risk
management program established pursuant to this
section for risks incurred as a result of operating a
Head Start program or providing transportation
services to the public. The Risk Management
Administrator shall obtain or provide for insurance
coverage for such community action agencies or bonding
for employees of such community action agencies. Any
liability insurance coverage obtained or provi ded
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shall include expenses for administra tive and legal
services obtained or provided by the Risk Management
Administrator.
b. The Risk Management Administrator shall determine
criteria for participation in the risk managem ent
program by such community action agencies. In
addition, the Risk Management Administrator may
require each such com munity action agency to:
(1) provide adequate qualified personnel and suitable
facilities and equipment for operating a Head
Start program or providing transportation
services to the public, and
(2) comply with such standards as are necessary for
the protection of the clients it serves.
2. To receive coverage pursuant to this section, a commun ity
action agency shall make payments for any insurance coverage and
shall otherwise comply with the provisions of this section and rules
promulgated by the Office pu rsuant to the provisions of this
section.
3. Requests for the insurance coverage provided pursuant to the
provisions of this subsection shall be submitted in writing to the
Risk Management Administrator by the community action agencies.
I. J. The Risk Management Administrator may provide or obtain
for any state agency, public trust with the s tate as a beneficiary
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and a director, officer, employee or member thereof, insurance for
liability for loss, including judgments, awards, settlements, costs
and legal expenses, resulting from violations of rights or
privileges secured by the Constitution o r laws of the United States
of America which occur while a director, officer, e mployee or member
is acting within the sc ope of service to the State of Ok lahoma. The
insurance shall be for coverage in excess of the limits on liability
established by The Go vernmental Tort Claims Act but shall not limit
or waive any immunities now or hereafter available to the State of
Oklahoma or any state agency, any public trust with the state as a
beneficiary, or any director, officer, employee or member thereof
including, but not limited to, any immunities under the Eleventh
Amendment to the Consti tution of the United States, state sovere ign
immunity, and any absolute or qualified immunity held by any
director, officer, employee or member.
SECTION 2. This act shall become effective November 1, 2024.
59-2-2350 RD 1/4/2024 4:41:40 PM