1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 435 By: Montgomery
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6 AS INTRODUCED
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7 An Act relating to the Service Warranty Act; amending
7 15 O.S. 2021, Section 141.14, which relates to
8 penalties, reports, and administrative fees;
8 modifying administrative fee amount; conforming
9 language; amending 36 O.S. 2021, Section 307.3, which
9 relates to the State Insurance Commissioner Revolving
10 Fund; exempting certain fee from provisions of State
10 Insurance Commissioner Revolving Fund; and providing
11 an effective date.
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14 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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15 SECTION 1. AMENDATORY 15 O.S. 2021, Section 141.14, is
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16 amended to read as follows:
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17 Section 141.14. A. In addition to the license fees provided in
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18 the Service Warranty Act for service warranty associations each
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19 service warranty association and insurer shall annually, on or
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20 before the first day of May, file with the Insurance Commissioner
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21 its annual financial statement showing all gross written provider
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22 fees or assessments received by it in connection with the issuance
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23 of service warranties in this state during the preceding calendar
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24 year and other relevant financial information as deemed necessary by
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 1 the Commissioner. The financial statements required by this
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2 subsection must be:
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3 1. Audited and prepared in accordance with statutory accounting
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4 principles if the applicant complies with the requirements of
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5 subsection A of Section 141.6 of this title; or
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6 2. Verified under oath of at least two of its principal
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7 officers and prepared in accordance with generally accepted
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8 accounting principles if the applicant utilizes an insurance policy
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9 which satisfies the requirements of subsection B of Section 141.6 of
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10 this title.
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11 B. The Commissioner may levy a fine of up to One Hundred
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12 Dollars ($100.00) a day for each day an association neglects to file
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13 its financial statement in the form and within the time provided by
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14 the Service Warranty Act.
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15 C. In addition to the annual financial statements required to
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16 be filed by subsection A of this section, the Commissioner may
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17 require of licensees, under oath and in the form prescribed by it,
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18 quarterly statements or special reports which the Commissioner deems
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19 necessary for the proper supervision of licensees under the Service
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20 Warranty Act.
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21 D. Provider fees and assessments received by associations and
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22 insurers for service warranties shall not be subject to the premium
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23 tax provided in Section 624 of Title 36 of the Oklahoma Statutes,
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24 but shall be subject to an administrative fee of equal to two
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 1 percent (2%) of the gross provider fee received on the sale of all
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2 service warranties issued in this state during the preceding
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3 calendar quarter. The fees shall be paid quarterly to the Insurance
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4 Commissioner. However, licensed associations, licensed insurers and
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5 entities with applications for licensure as a service warranty
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6 association pending with the Department that have contractual
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7 liability insurance in place as of March 31, 2009, from an insurer
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8 which satisfies the requirements of subsections B and C of Section
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9 141.6 of this title and which covers one hundred percent (100%) of
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10 the claims exposure of the association or insurer on all contracts
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11 written may elect to shall pay an annual administrative fee of Three
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12 Thousand Dollars ($3,000.00) in lieu of the two-percent
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13 administrative fee Four Thousand Two Hundred Dollars ($4,200.00).
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14 The administrative fee set forth in this section shall not be
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15 subject to the provisions of Section 307.3 of Title 36 of the
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16 Oklahoma Statutes.
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17 SECTION 2. AMENDATORY 36 O.S. 2021, Section 307.3, is
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18 amended to read as follows:
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19 Section 307.3. A. Effective July 1, 2009, there is hereby
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20 created in the State Treasury a revolving fund for the Insurance
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21 Commissioner called the State Insurance Commissioner Revolving Fund.
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22 The revolving fund shall be used to fund the operations of the
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23 Office of the Insurance Commissioner.
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 1 1. Notwithstanding any other law to the contrary, the revolving
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2 fund shall consist of and consolidate all funds that are or have
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3 been paid or collected by the Insurance Commissioner pursuant to the
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4 laws of this state and the rules of the Insurance Department except
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5 that the revolving fund shall not include:
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6 a. premium taxes,
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7 b. monies transferred to the Attorney General’s Insurance
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8 Fraud Unit Revolving Fund pursuant to Section 362 of
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9 this title,
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10 c. funds paid to and collected pursuant to the Oklahoma
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11 Certified Real Estate Appraisers Act, Sections 858-700
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12 through 858-732 of Title 59 of the Oklahoma Statutes,
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13 d. health carrier access payments paid to and collected
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14 by the Insurance Commissioner and deposited into the
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15 Health Carrier Access Payment Revolving Fund,
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16 e. recoveries obtained as a result of insurance-related
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17 crimes, and other fines, late fees, and penalties
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18 assessed and collected, and
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19 f. monies collected for or received from the Workers’
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20 Compensation Commission, and
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21 g. administrative fees paid pursuant to subsection D of
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22 Section 141.14 of Title 15 of the Oklahoma Statutes.
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23 2. The revolving fund shall be a continuing fund, not subject
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24 to fiscal year limitations. Expenditures from the revolving fund
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 1 shall be made pursuant to the laws of this state and the statutes
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2 relating to the Insurance Department. Warrants for expenditures
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3 from the revolving fund shall be drawn by the State Treasurer, based
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4 on claims signed by an authorized employee or employees of the
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5 Insurance Department and filed with the Director of the Office of
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6 Management and Enterprise Services.
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7 B. All funds collected by the Insurance Commissioner shall be
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8 paid into the State Treasury weekly.
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9 C. After the effective date of this act, the State Treasury is
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10 authorized and directed to deduct from the funds paid or collected
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11 by the Insurance Commissioner a sum equal to seventy-six and one-
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12 half percent (76.5%) of the payment and place the same to the credit
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13 of the General Revenue Fund of the state. The State Treasurer shall
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14 place to the credit of the State Insurance Commissioner Revolving
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15 Fund the remainder of the funds so paid and collected by the
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16 Insurance Commissioner.
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17 SECTION 3. This act shall become effective January 1, 2024.
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19 59-1-628 RD 1/17/2023 9:26:54 AM
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Statutes affected:
Amended And Engrossed: 63-2871