An Act
ENROLLED 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 .
SUBJECT: Office of Management and E nterprise Services
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 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 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;
ENR. S. B. NO. 1559 Page 2
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 Insurance Plan ;
5. Determine feasibility of an d, if feasible, establish 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 a nd program expenses
provided by the Office of Management 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 ins urance authorized by law. If
requested by the Oklahoma State Regents 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 m embers
thereof, charged with licensing authority, in obtaining insurance
for liability for judgments, based on the licensing authority,
rendered by any court pursuant to federal law;
9. When requested by a public trust 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, official, 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
ENR. S. B. NO. 1559 Page 3
for Higher Education in obtaining insurance for the real property
pursuant to the provisions of this section; and
11. Authorize the Risk Management Administrator to declare an
emergency for the purpose of mitigating damages to any state -owned
property insured under the comprehensive professional risk
management program ad ministered 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 Ma nagement
Administrator to advise for the purchase of property insurance
coverage, but the Administrator shall not direct the purchase of
property insurance from a specific entity.
C. The Director of the Office of Management and Enterprise
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 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 Pur chasing 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 c onjunction 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 con sulting services. The State
Purchasing Director shall ensure open processes for solicitation and
qualification of insurance coverage and services providers. The
State Purchasing Director shall award contracts for insurance
coverage and services to the pr ovider or providers which offer the
best and final terms and conditions. The State Purchasing Director
ENR. S. B. NO. 1559 Page 4
may authorize the Risk Management Administrator to bind for
insurance coverage with providers.
E. F. The school districts of this state may request th e Risk
Management Administrator to 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 property and
casualty insurance, shall provide details of the proposed purchase
to the Risk Management Administrator 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 establish ed 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 age ncies or bonding
for employees of such community action agencies. Any
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 qual ified personnel and suitable
facilities and equipment for operating a Head
Start program or providing transportation
services to the public, and
ENR. S. B. NO. 1559 Page 5
(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 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 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 from 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 t he limits on liability
established by The Governmental 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, o fficer, employee or member thereof
including, but not limited to, any immunities under 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.
ENR. S. B. NO. 1559 Page 6
Passed the Senate the 1 4th day of March, 2024.
Presiding Officer of the Senate
Passed the House of Representatives the 16th day of April, 2024.
Presiding Officer of the House
of Representatives
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 of the Secretary of State this _______ ___
day of _________________ _, 20 _______, at _______ o'clock _______ M.
By: _________________________________