1 STATE OF OKLAHOMA
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2 2nd Session of the 59th Legislature (2024)
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3 HOUSE BILL 3089 By: Tedford
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6 AS INTRODUCED
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7 An Act relating to insurance; establishing the
7 Strengthen Oklahoma Homes Act; establishing the
8 Strengthen Oklahoma Homes (SOH) Program within the
8 Department of Insurance; clarifying applicability of
9 program; directing Department to make certain efforts
9 to obtain funds; describing qualifying entities for
10 program grants; permitting Insurance Commissioner to
10 promulgate rules and requirements; providing list of
11 requirements; directing for electronic filing of
11 applications; clarifying confidentiality of grant
12 applications; directing use of grants for residential
12 properties; providing time limit; requiring
13 certificate before payment of grant funds; directing
13 who shall pay grant funds; directing that
14 applications are first-come, first-served; permitting
14 entities providing funds to program to establish
15 certain additional rules and guidelines; permitting
15 Insurance Department to conduct inspections;
16 directing residential property owners to hire
16 contractors with certain certification; prohibiting
17 the Insurance Department from making endorsements;
17 clarifying responsibility for owed amounts beyond
18 grant; providing requirements for contractor
18 eligibility; providing requirements for evaluator
19 eligibility; creating the Strengthen Oklahoma Homes
19 Revolving Fund; directing for deposit of certain
20 monies; permitting Insurance Commissioner to transfer
20 certain funds; providing for codification; and
21 providing an effective date.
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Req. No. 9052 Page 1
 1 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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2 SECTION 1. NEW LAW A new section of law to be codified
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3 in the Oklahoma Statutes as Section 971 of Title 36, unless there is
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4 created a duplication in numbering, reads as follows:
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5 This act shall be known and may be cited as the "Strengthen
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6 Oklahoma Homes Act".
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7 SECTION 2. NEW LAW A new section of law to be codified
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8 in the Oklahoma Statutes as Section 972 of Title 36, unless there is
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9 created a duplication in numbering, reads as follows:
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10 A. There is hereby established within the Department of
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11 Insurance the Strengthen Oklahoma Homes (SOH) Program.
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12 B. This act does not create an entitlement for property owners
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13 or obligate the state in any way to fund the inspection or
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14 retrofitting of residential property in this state. Implementation
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15 of the SOH Program is subject to the receipt of federal grants or
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16 funds or from other sources of grants or funds. The Department
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17 shall use its best efforts to obtain grants or funds from the
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18 federal government or other funding sources to supplement the
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19 financial resources of the SOH Program that may be provided by the
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20 state.
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21 C. The SOH Program shall apply for financial grants to retrofit
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22 insurable property as defined in Section 963 of Title 36 of the
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23 Oklahoma Statutes to resist loss due to a tornado or other
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Req. No. 9052 Page 2
 1 catastrophic windstorm event or hail as prescribed in subsection B
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2 of Section 962 of Title 36 of the Oklahoma Statutes.
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3 D. The SOH Program may also make grants or funding available to
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4 nonprofit entities for projects to retrofit insurable properties to
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5 resist loss due to tornado or other catastrophic windstorm events or
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6 hail if such grants or funding to nonprofit entities are allowable
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7 under grant or funding rules, requirements, guidelines, or criteria.
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8 However, a nonprofit entity shall agree to administer the grants or
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9 funds as the SOH Program would be required to administer grants or
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10 funds, and the entity shall provide documentation to the Department
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11 in a timely manner as requested by the Department.
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12 E. All mitigation shall be based upon the securing of all
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13 required local permits and applicable inspections in keeping with
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14 local building codes and the Insurance Institute for Business and
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15 Home Safety (IBHS) Fortified Homes Program. Mitigation projects are
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16 subject to random reinspection of all projects.
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17 F. The Insurance Commissioner may promulgate rules and
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18 eligibility requirements necessary for the proper administration of
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19 this act and pursuant to any instructions or requirements on grants
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20 or funds received by the Department for the SOH Program.
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21 SECTION 3. NEW LAW A new section of law to be codified
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22 in the Oklahoma Statutes as Section 973 of Title 36, unless there is
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23 created a duplication in numbering, reads as follows:
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 1 A. To be eligible for a grant, residential property owners
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2 applying for a grant must be able to meet the eligibility
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3 requirements as set forth by the Insurance Department for each grant
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4 type. These requirements shall include, but not be limited to, the
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5 following:
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6 1. The residential property owner shall have insurable property
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7 as defined in Section 963 of Title 36 of the Oklahoma Statutes;
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8 2. The residential property owner shall claim their primary
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9 residence in a county where grants are being approved;
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10 3. The home to be mitigated shall be an owner-occupied, single-
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11 family, primary residence, and cannot be a condominium or mobile
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12 home;
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13 4. The home shall be in good repair unless damaged by a tornado
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14 or other catastrophic windstorm event or hail. SOH Program grant
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15 funds cannot be used for maintenance or repairs but may be used in
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16 conjunction with repairs or reconstruction necessitated by damages
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17 from a tornado or other catastrophic windstorm event or hail;
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18 5. A Certified IBHS Evaluator shall prequalify the insurable
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19 property as mitigable and identify all improvements required to
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20 achieve IBHS FORTIFIED Roof™ (Roof), FORTIFIED Silver™ (Silver),
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21 FORTIFIED Gold™ (Gold), or successor designation, or similar
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22 standard approved by the Insurance Commissioner. The residential
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23 property owner shall select the evaluator from a list provided by
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24 the SOH Program and shall pay the evaluator's fee;
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Req. No. 9052 Page 4
 1 6. The residential property owner shall obtain bids from at
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2 least three IBHS Certified Contractors approved by the SOH Program;
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3 7. The residential property owner shall agree to retrofit the
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4 home to the Insurance IBHS Roof or Silver, Gold, or successor
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5 designation or similar standard approved by the Commissioner;
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6 8. The residential property owner shall provide proof of an in-
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7 force policy providing wind insurance on the home; and
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8 9. If the insurable property is in a special flood hazard area,
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9 the residential property owner shall provide proof of an in-force
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10 flood insurance policy. The flood policy may be from the National
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11 Flood Insurance Program (NFIP) or a private carrier.
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12 B. Grant applications shall be filed electronically with the
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13 Department in the form and manner prescribed by the Commissioner,
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14 along with any applicable transaction fees.
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15 C. Documents, materials, and other information submitted to the
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16 Department by property owners or insurance companies in support of a
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17 grant application shall be confidential by law and privileged, shall
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18 not be subject to open records requests, shall not be subject to
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19 subpoena, and shall not be subject to discovery or admissible in
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20 evidence in any private civil action.
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21 D. Grants to residential property owners shall be used to
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22 retrofit an insurable property as defined in Section 963 of Title 36
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23 of the Oklahoma Statutes to resist loss due to a tornado or other
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 1 catastrophic windstorm event or hail as prescribed in subsection B
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2 of Section 962 of Title 36 of the Oklahoma Statutes.
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3 E. Failure to complete retrofit projects within three (3)
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4 months of the date the residential property owner receives notice of
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5 the grant approval may result in forfeiture of the grant.
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6 F. Grant funds shall only be paid once a certificate has been
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7 issued for a Roof, Silver, Gold, or successor designation, or
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8 similar standard approved by the Commissioner. Grant funds shall be
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9 paid by the Department or another designated agency, on behalf of
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10 the residential property owner, directly to the contractor who
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11 performed the mitigation work.
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12 G. Applications will be accepted on a first-come, first-served
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13 basis within each income tier established by the Commissioner, with
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14 priority given to lower-income applicants.
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15 H. Any entity providing funds to the SOH Program shall be
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16 permitted to establish additional rules and guidelines under which
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17 those funds may be used, as long as such rules and guidelines do not
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18 violate any state or federal law.
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19 I. The Department may conduct random inspections of funds,
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20 records, and/or properties to detect any fraud.
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21 SECTION 4. NEW LAW A new section of law to be codified
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22 in the Oklahoma Statutes as Section 974 of Title 36, unless there is
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23 created a duplication in numbering, reads as follows:
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 1 A. To perform retrofitting work on insurable property under the
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2 SOH Program, a residential property owner shall hire an IBHS
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3 certified contractor who is capable of performing work that
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4 satisfies the standards prescribed by this act and the rules adopted
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5 thereto.
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6 B. The Insurance Department shall not endorse or otherwise
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7 provide preferential treatment to any contractor.
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8 C. A residential property owner is responsible for any amount
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9 owed to a contractor that exceeds awarded grant monies.
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10 D. To be eligible to work on a project funded by the SOH
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11 Program as a contractor, a contractor shall meet all program
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12 requirements, including, but not limited to, those listed in this
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13 subsection, and maintain a current copy of all applicable
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14 certificates, licenses, and proof of insurance coverages with the
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15 program office:
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16 1. If required under Oklahoma law, the contractor shall hold a
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17 valid and active contractor's license or registration in Oklahoma
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18 and be free from all disciplinary action by the applicable licensing
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19 board;
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20 2. If applicable, the contractor shall be registered to do
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21 business in Oklahoma with the Secretary of State;
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22 3. The contractor shall have an in-force general liability
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23 policy with Five Hundred Thousand Dollars ($500,000.00) in liability
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24 coverage;
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 1 4. The contractor shall have worker's compensation and
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2 employer's liability insurance in accordance with and to the extent
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3 required by Oklahoma law;
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4 5. The contractor shall hold an active IBHS FORTIFIED Roof™
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5 Contractor Certification or FORTIFIED Professional Certification.
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6 The contractor is responsible for paying all fees associated with
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7 certification and training;
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8 6. The contractor must successfully register as a supplier or
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9 payee with the Office of Management and Enterprise Services;
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10 7. The contractor shall maintain accurate contact information
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11 with the SOH Program;
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12 8. The contractor shall agree to follow the SOH Program's
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13 procedures and rules as prescribed by the Insurance Commissioner;
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14 9. The contractor shall not have a financial interest in any
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15 project funded by the SOH Program for which they perform work other
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16 than receiving payment on behalf of the homeowner from the SOH
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17 Program and shall report to the SOH Program any potential conflicts
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18 of interest before work commences; and
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19 10. The contractor shall not be the evaluator for any project
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20 funded by the SOH Program.
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21 SECTION 5. NEW LAW A new section of law to be codified
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22 in the Oklahoma Statutes as Section 975 of Title 36, unless there is
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23 created a duplication in numbering, reads as follows:
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 1 To be eligible to work on a project funded by the SOH Program as
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2 an evaluator, the evaluator shall meet all program requirements,
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3 including, but not limited to, those listed below and maintain a
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4 current copy of all applicable certificates and licenses with the
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5 SOH Program office:
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6 1. The evaluator must be in good standing with IBHS and
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7 maintain an active IBHS certification as a FORTIFIED Home Evaluator.
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8 The evaluator is responsible for paying all fees associated with
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9 certification and training;
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10 2. If applicable, the evaluator shall be registered to do
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11 business in Oklahoma with the Secretary of State;
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12 3. The evaluator shall agree to follow the SOH Program's
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13 procedures and rules as prescribed by the Commissioner;
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14 4. The evaluator shall maintain accurate contact information
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15 with the SOH Program;
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16 5. The evaluator shall not have any financial interest in any
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17 project which they inspect for designation purposes for the SOH
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18 Program;
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19 6. The evaluator shall not be a contractor or supplier of any
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20 materials and/or products or systems installed in any home they
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21 inspect for designation purposes for the SOH Program;
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22 7. The evaluator shall not be the sales agent for any home
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23 being designated for the SOH Program; and
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 1 8. The evaluator shall inform the SOH Program of any potential
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2 conflicts of interest.
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3 SECTION 6. NEW LAW A new section of law to be codified
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4 in the Oklahoma Statutes as Section 976 of Title 36, unless there is
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5 created a duplication in numbering, reads as follows:
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6 A. There is hereby created in the State Treasury a revolving
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7 fund for the Insurance Department, to be designated the "Strengthen
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8 Oklahoma Homes Revolving Fund". The fund shall be a continuing
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9 fund, not subject to fiscal year limitations, and shall consist of
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10 any monies deposited to the fund from the receipt of federal grants
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11 or funds or from other sources of grants or funds. All monies
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12 accruing to the credit of the fund are hereby appropriated and may
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13 be budgeted and expended by the Department for the purpose of
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14 assisting the SOH Program in performing all acts that relate to the
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15 function and purpose of the SOH Program. Warrants for expenditures
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16 from the revolving fund shall be drawn by the State Treasurer, based
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17 on claims signed by an authorized employee or employees of the
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18 Insurance Department, and filed with the Director of the Office of
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19 Management and Enterprise Services.
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20 B. Monies collected pursuant to this act shall be deposited in
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21 the Strengthen Oklahoma Homes Revolving Fund. Monies shall not
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22 lapse, unless otherwise specified under federal funding or federal
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23 grant, or a grant or funds from another source, or be transferred to
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 1 the State Insurance Commissioner R