The bill establishes the Political Subdivision Liability Insurance Guaranty Program, aimed at providing insurance against excessive liability judgments faced by political subdivisions in Oklahoma. It creates the Political Subdivision Insurance Fund Board, which will oversee the program and consists of seven members appointed by the Governor, the President Pro Tempore of the Senate, and the Speaker of the House of Representatives. The Board is responsible for setting rules and guidelines for the program, including contributions and claims procedures, and is required to hold quarterly meetings.

Additionally, the bill creates the Political Subdivision Liability Insurance Guaranty Fund, which will be used to insure participating political subdivisions against excessive liability judgments. The fund's resources, including any interest earned, are not subject to appropriation and will cover the operational costs of the Board, attorney fees, and other related expenses. Expenditures from the fund will be managed through warrants issued by the State Treasurer and will be audited like other state funds. The act is set to take effect on November 1, 2026.