The bill amends the Service Warranty Act under 15 O.S. 2021, Section 141.14, to modify the administrative fee structure for service warranty associations and insurers. The new provisions establish a tiered fee system that will gradually decrease the percentage of the gross provider fee assessed over the next few years. Specifically, starting January 1, 2026, the fee will be set at 1.75% of the gross provider fee, reducing to 1% on January 1, 2027, and then to a flat annual fee of $3,700 starting January 1, 2028. Additionally, the bill clarifies that the administrative fee will not be subject to certain provisions of the Oklahoma Statutes.

The bill also includes several amendments that adjust the effective dates for the implementation of these fees. The original effective date of January 1, 2026, has been pushed back to January 1, 2027, for certain provisions, while other amendments specify the new fee amounts and their effective dates. Overall, the bill aims to streamline the fee structure for service warranty providers while ensuring compliance with reporting requirements to the Insurance Commissioner.

Statutes affected:
Introduced: 15-141.14
Amended And Engrossed: 15-141.14