1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 SENATE BILL 1559 By: Pugh
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6 AS INTRODUCED
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7 An Act relating to the Office of Management and
7 Enterprise Services; amending 74 O.S. 2021, Section
8 85.58A, which relates to the state risk management
8 program; excluding certain institutions of higher
9 education from certain definition; prohibiting risk
9 management administrator from directing certain
10 insurance purchase; updating statutory references;
10 and providing an effective date.
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13 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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14 SECTION 1. AMENDATORY 74 O.S. 2021, Section 85.58A, is
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15 amended to read as follows:
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16 Section 85.58A. A. The Office of Management and Enterprise
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17 Services (OMES) shall establish for all state agencies, whether or
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18 not subject to the Oklahoma Central Purchasing Act, and other
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19 entities as provided by law a comprehensive professional risk
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20 management program which shall:
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21 1. Identify and evaluate risks of loss and exposures to loss to
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22 officers, employees and properties;
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23 2. Minimize risks through loss-prevention and loss-control
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24 programs;
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 1 3. Transfer risks, if economically advantageous to the state,
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2 by acquiring commercial insurance, contractual pass through pass-
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3 through of liability, or by other means;
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4 4. Consolidate and administer risk management plans and
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5 programs including self-insurance programs, except State Employees
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6 Group Insurance the Oklahoma Employees Insurance Plan;
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7 5. Determine feasibility of and, if feasible, establish self-
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8 insurance programs, considering whether a program may be self-
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9 supporting to remain financially and actuarially sound;
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10 6. Provide a system to allocate insurance and program costs to
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11 determine payment for insurance coverage and program expenses
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12 provided by the Office of Management and Enterprise Services;
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13 7. When requested by a state retirement system or the State and
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14 Education Employees Group Insurance Oklahoma Employees Insurance and
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15 Benefits Board, assist in obtaining insurance authorized by law. If
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16 requested by the Oklahoma State Regents for Higher Education, assist
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17 trust funds for which the State Regents serve as trustees in
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18 obtaining insurance authorized by law;
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19 8. Assist state agencies and officers, employees, and members
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20 thereof, charged with licensing authority, in obtaining insurance
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21 for liability for judgments, based on the licensing authority,
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22 rendered by any court pursuant to federal law;
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23 9. When requested by a public trust established pursuant to
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24 Title 60 of the Oklahoma Statutes of which the State of Oklahoma is
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 1 the beneficiary, obtain, provide or assist the public trust in
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2 obtaining insurance authorized by law or trust indenture covering
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3 any board member, trustee, official, officer, employee or volunteer
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4 for errors and omissions or liability risks arising from the
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5 performance of official duties pursuant to law or trust indenture;
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6 10. When requested by the Oklahoma State Regents for Higher
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7 Education, for the purpose of insuring real property required
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8 pursuant to Section 4018 of Title 70 of the Oklahoma Statutes, of
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9 which the Oklahoma State Regents for Higher Education is the
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10 beneficiary, obtain, provide or assist the Oklahoma State Regents
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11 for Higher Education in obtaining insurance for the real property
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12 pursuant to the provisions of this section; and
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13 11. Authorize the Risk Management Administrator to declare an
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14 emergency for the purpose of mitigating damages to any state-owned
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15 property insured under the comprehensive professional risk
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16 management program administered by OMES.
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17 B. For the purposes of this section, “state agency” shall not
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18 be construed to include colleges and universities under the
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19 authority of the Oklahoma State Regents for Higher Education.
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20 Colleges and universities may request the Risk Management
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21 Administrator to advise for the purchase of property insurance
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22 coverage, but the Administrator shall not direct the purchase of
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23 property insurance from a specific entity.
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 1 C. The Director of the Office of Management and Enterprise
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2 Services may hire or contract for the services of a Risk Management
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3 Administrator to supervise the Comprehensive Professional Risk
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4 Management Program comprehensive professional risk management
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5 program established pursuant to this section. If appointed by the
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6 Director as a state employee, the Risk Management Administrator
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7 shall be in the unclassified service.
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8 C. D. The Risk Management Administrator shall evaluate
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9 insurance coverage needs and in force for state agencies, whether or
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10 not subject to the Oklahoma Central Purchasing Act, and other
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11 entities as provided by law. All entities shall submit to the Risk
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12 Management Administrator all information which the Risk Management
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13 Administrator deems necessary to perform this duty.
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14 D. E. The Risk Management Administrator in conjunction with the
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15 State Purchasing Director under the authority of the Director of the
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16 Office of Management and Enterprise Services may negotiate insurance
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17 coverage and insurance-related services including, but not limited
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18 to, insurance brokerage and consulting services. The State
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19 Purchasing Director shall ensure open processes for solicitation and
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20 qualification of insurance coverage and services providers. The
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21 State Purchasing Director shall award contracts for insurance
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22 coverage and services to the provider or providers which offer the
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23 best and final terms and conditions. The State Purchasing Director
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 1 may authorize the Risk Management Administrator to bind for
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2 insurance coverage with providers.
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3 E. F. The school districts of this state may request the Risk
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4 Management Administrator to advise for the purchase of insurance
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5 coverage for the school districts.
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6 F. G. A state agency, whether or not subject to the Oklahoma
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7 Central Purchasing Act, that contemplates purchase of property and
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8 casualty insurance, shall provide details of the proposed purchase
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9 to the Risk Management Administrator for approval or disapproval
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10 prior to the purchase.
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11 G. H. The Director of the Office of Management and Enterprise
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12 Services shall promulgate rules to effect the provisions of the
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13 comprehensive professional risk management program.
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14 H. I. 1. a. Any community action agency established pursuant to
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15 Sections 5035 through 5040 5040.1 of this title may
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16 participate in the comprehensive professional risk
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17 management program established pursuant to this
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18 section for risks incurred as a result of operating a
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19 Head Start program or providing transportation
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20 services to the public. The Risk Management
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21 Administrator shall obtain or provide for insurance
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22 coverage for such community action agencies or bonding
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23 for employees of such community action agencies. Any
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24 liability insurance coverage obtained or provided
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 1 shall include expenses for administrative and legal
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2 services obtained or provided by the Risk Management
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3 Administrator.
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4 b. The Risk Management Administrator shall determine
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5 criteria for participation in the risk management
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6 program by such community action agencies. In
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7 addition, the Risk Management Administrator may
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8 require each such community action agency to:
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9 (1) provide adequate qualified personnel and suitable
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10 facilities and equipment for operating a Head
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11 Start program or providing transportation
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12 services to the public, and
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13 (2) comply with such standards as are necessary for
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14 the protection of the clients it serves.
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15 2. To receive coverage pursuant to this section, a community
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16 action agency shall make payments for any insurance coverage and
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17 shall otherwise comply with the provisions of this section and rules
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18 promulgated by the Office pursuant to the provisions of this
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19 section.
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20 3. Requests for the insurance coverage provided pursuant to the
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21 provisions of this subsection shall be submitted in writing to the
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22 Risk Management Administrator by the community action agencies.
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23 I. J. The Risk Management Administrator may provide or obtain
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24 for any state agency, public trust with the state as a beneficiary
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 1 and a director, officer, employee or member thereof, insurance for
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2 liability for loss, including judgments, awards, settlements, costs
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3 and legal expenses, resulting from violations of rights or
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4 privileges secured by the Constitution or laws of the United States
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5 of America which occur while a director, officer, employee or member
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6 is acting within the scope of service to the State of Oklahoma. The
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7 insurance shall be for coverage in excess of the limits on liability
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8 established by The Governmental Tort Claims Act but shall not limit
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9 or waive any immunities now or hereafter available to the State of
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10 Oklahoma or any state agency, any public trust with the state as a
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11 beneficiary, or any director, officer, employee or member thereof
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12 including, but not limited to, any immunities under the Eleventh
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13 Amendment to the Constitution of the United States, state sovereign
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14 immunity, and any absolute or qualified immunity held by any
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15 director, officer, employee or member.
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16 SECTION 2. This act shall become effective November 1, 2024.
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18 59-2-2350 RD 1/4/2024 4:41:40 PM
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