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HOUSE OF REPRESENTATIVES - FLOOR VERSION
STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
ENGROSSED SENATE
BILL NO. 1559 By: Pugh of the Senate
and
Moore of the House
An Act relating to the Office of Management and
Enterprise Services; amending 74 O.S. 2021, Section
85.58A, which relates to the state risk management
program; excluding certain institutions of higher
education from certain definition; prohibiting risk
management administrator from directing certain
insurance purchase; updating statutory references;
and providing an effective 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. Th e Office of Management and Enterprise
Services (OMES) shall establish 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 sh all:
1. Identify and evaluate risks of loss and exposures to los s to
officers, employees and properties;
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2. Minimize risks through loss -prevention and loss-control
programs;
3. Transfer risks, if economically advantageous to the state,
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 Insu rance Plan;
5. Determine feasibility of and, if feasible, establ ish self-
insurance programs, considering whether a program may be self -
supporting to remain financially and actuarially sound;
6. Provide a system to allocate insurance and program costs to
determine payment for insurance coverage and program expenses
provided by the Office of Management and En terprise Services;
7. When requested by a state retirement system or the State and
Education Employees Group Insurance Oklahoma Employees Insurance an d
Benefits Board, assist in obtaining insurance authorized by law . If
requested by the Oklahoma State Re gents for Higher Education, 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 with licensing authority, in obtaining in surance
for liability for judgments, based on the licensing authority,
rendered by any court pursuant to federal law;
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9. When requested by a public tr ust established pursuant to
Title 60 of the Oklahoma Statutes of which the State of Oklahoma is
the beneficiary, obtain, provide or assist the public trust in
obtaining insurance authorized by law or trust indenture covering
any board member, trustee, offi cial, officer, employee or volunteer
for errors and omissions or liability risks arising from the
performance of official duties pursuant to law or trust indenture;
10. When requested by the Oklahoma State Regents for Higher
Education, for the purpose of insuring real property required
pursuant to Section 4018 of Title 70 of the Oklahoma Statutes, of
which the Oklahoma State Regents for Higher Education is the
beneficiary, obtain, provide or assist the Oklahoma State Regents
for Higher Education in obtaini ng insurance for the real property
pursuant to the provisions of this section; and
11. Authorize the Ris k Management Administrator to declare an
emergency for the purpose of mitigating damages to any state -owned
property insured under the comprehensive pr ofessional 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 advise for the purchase of property insuran ce
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coverage, but the Administrator shall not direct the purchase of
property insurance from a specific entity.
C. The Director of the Office of Manage ment and Enterprise
Services may hire or contract for the service s of a Risk Management
Administrator to supervise the Comprehensive Professional Risk
Management Program comprehensive professional risk management
program established pursuant to this sectio n. If appointed by the
Director as a state employee, the Risk Management Administrator
shall be in the unclassified service.
C. D. The Risk Management Administrator shall evaluate
insurance coverage needs and in force for state agencies, 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 Administrator all information which the Risk Management
Administrator deems necessary to perform this duty.
D. E. The Risk Management Administrator 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 limite d
to, insurance brokerage and consulting services. The State
Purchasing Director shall ensure open proce sses for solicitation and
qualification of insurance coverage and services providers. The
State Purchasing Director shall award contracts for insuranc e
coverage and services to the provider or providers which offer the
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best and final terms and conditions. The State Purchasing Director
may authorize the Risk Management Administrator to bind for
insurance coverage with providers.
E. F. The school districts of this state may request the Risk
Management Administrator t o advise for the purchase of insurance
coverage for the school districts.
F. G. A state agency, whether or not subject to the Oklahoma
Central Purchasing Act, that contemplates purchase of p roperty and
casualty insurance, shall provide details of the proposed purchase
to the Risk Management Adm inistrator for approval or disapproval
prior to the purchase.
G. H. The Director of the Office of Management and Enterprise
Services shall promulgate rules to effect the provisions of the
comprehensive professional risk management program.
H. I. 1. a. Any community action agency established pursuant 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
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liability insurance coverage obtained or provided
shall include expenses for administrative and legal
services obtained or provided by the Risk Management
Administrator.
b. The Risk Management Administrator shall determine
criteria for participation in the risk management
program by such community action agencies. In
addition, the Risk Management Administrator may
require each such community 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 community
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 pursuant to the provision s of this
section.
3. Requests for the insurance coverage provid ed pursuant to the
provisions of this su bsection shall be submitted in writing to the
Risk Management Administrator by the community action agencies.
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I. J. The Risk Management Administrator may provide or obtain
for any state agency, public trust with the state as a beneficiary
and a director, officer, employee or member thereof, insurance for
liability for loss, including judgments, awards, settlements, costs
and legal expenses, resulting fr om violations of rights or
privileges secured by the Constitution or laws of the United States
of America which occur while a director, officer, employee or member
is acting within the scope of service to the State of Oklahoma. The
insurance shall be for coverage in excess of the limits on liability
established by The Governmental Tort Claims Act but shall n ot 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 u nder the Eleventh
Amendment to the Constitution of the United States, state sovereign
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.
COMMITTEE REPORT BY: COMMITTEE ON GENERAL GOVERNMENT, dated
03/26/2024 - DO PASS.