Bill Summary – FastDemocracy

1                              STATE OF OKLAHOMA
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 2                  1st Session of the 59th Legislature (2023)
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 3   SENATE BILL 703                       By: Murdock
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 6                                 AS INTRODUCED
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 7            An Act relating to the Administrative Workers’
 7            Compensation Act; amending 85A O.S. 2021, Section
 8            122, which relates to costs of administering act;
 8            modifying requirements for payments from Multiple
 9            Injury Trust Fund; updating statutory reference;
 9            providing an effective date; and declaring an
10            emergency.
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12   BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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13       SECTION 1.      AMENDATORY     85A O.S. 2021, Section 122, is
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14   amended to read as follows:
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15       Section 122.   A.   The Workers’ Compensation Commission Revolving
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16   Fund established by Section 28.1 of this title shall be used for the
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17   costs of administering this act the Administrative Workers’
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18   Compensation Act and for other purposes as authorized by law.
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19       B.   For the purpose of providing funds for the Workers’
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20   Compensation Commission Revolving Fund, for the Workers’
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21   Compensation Administrative Fund created in Section 401.1 of this
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22   title, for the Multiple Injury Trust Fund created in Section 28 of
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23   this title, and to fund other provisions within this title, the
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24   following tax rates shall apply:
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     Req. No. 602                                                 Page 1
 1         1.   Each mutual or interinsurance association, stock company,
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 2   CompSource Mutual Insurance Company or other insurance carrier
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 3   writing workers’ compensation insurance in this state shall pay to
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 4   the Oklahoma Tax Commission an assessment at a rate of one percent
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 5   (1%) of all gross direct premiums written during each quarter of the
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 6   calendar year for workers’ compensation insurance on risks located
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 7   in this state after deducting from such gross direct premiums,
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 8   return premiums, unabsorbed portions of any deposit premiums, policy
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 9   dividends, safety refunds, savings and other similar returns paid or
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10   credited to policyholders.     Such payments to the Tax Commission
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11   shall be made not later than the fifteenth day of the month
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12   following the close of each quarter of the calendar year in which
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13   such gross direct premium is collected or collectible.
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14   Contributions made by insurance carriers and CompSource Mutual
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15   Insurance Company, under the provisions of this section, shall be
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16   considered for the purpose of computing workers’ compensation rates;
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17   and
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18         2.   When an employer is authorized to become a self-insurer, the
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19   Commission shall so notify the Tax Commission, giving the effective
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20   date of such authorization.    The Tax Commission shall then assess
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21   and collect from the employers carrying their own risk an assessment
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22   at the rate of two percent (2%) of the total compensation for
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23   permanent total disability awards, permanent partial disability
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24   awards and death benefits paid out during each quarter of the
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     Req. No. 602                                                  Page 2
 1   calendar year by the employers.   Such assessment shall be payable by
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 2   the employers and collected by the Tax Commission according to the
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 3   provisions of this section regarding payment and collection of the
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 4   assessment created in paragraph 1 of this subsection.
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 5       C.   It shall be the duty of the Tax Commission to collect the
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 6   payments provided for in this title.   The Tax Commission is hereby
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 7   authorized to bring an action for the recovery of any delinquent or
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 8   unpaid payments required in this section.   The Tax Commission may
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 9   also enforce payments by proceeding in accordance with the
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10   provisions of Section 98 of this title.
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11       D.   The Tax Commission shall pay monthly to the State Treasurer
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12   to the credit of the Multiple Injury Trust Fund all monies collected
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13   under the provisions of this section less the annual amounts which
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14   shall be apportioned by the Oklahoma Tax Commission as follows;
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15   provided, however, if the Fund in any one month is insufficient to
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16   make the required payments, the unpaid portion shall be paid as soon
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17   as funds become available:
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18       1.   Five Million Dollars ($5,000,000.00) shall be payable each
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19   fiscal year in equal monthly installments to the credit of the
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20   Workers’ Compensation Commission Revolving Fund established in
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21   Section 28.1 of this title for the fiscal year ending June 30, 2016,
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22   Three Million Dollars ($3,000,000.00) for the fiscal year ending
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23   June 30, 2017, and Four Million Dollars ($4,000,000.00) for the
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     Req. No. 602                                                 Page 3
 1   fiscal year ending June 30, 2020, and for all subsequent years to be
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 2   used to implement the provisions of this title; and
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 3      2.   Four Million Dollars ($4,000,000.00) shall be payable in
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 4   equal monthly installments to the credit of the Workers’
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 5   Compensation Administrative Fund established in Section 401.1 of
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 6   this title for the fiscal year ending June 30, 2016, Three Million
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 7   Five Hundred Thousand Dollars ($3,500,000.00) for the fiscal year
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 8   ending June 30, 2017, Three Million Five Hundred Thousand Dollars
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 9   ($3,500,000.00) for the fiscal year ending June 30, 2018, Three
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10   Million Dollars ($3,000,000.00) for the fiscal year ending June 30,
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11   2019, One Million Seven Hundred Fifty Thousand Dollars
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12   ($1,750,000.00) for the fiscal year ending June 30, 2020, One
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13   Million Seven Hundred Fifty Thousand Dollars ($1,750,000.00) for the
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14   fiscal year ending June 30, 2022, and for all subsequent years
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15   during the existence of the Court of Existing Claims.
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16      Monies deposited in the Workers’ Compensation Administrative
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17   Fund shall be used by the Workers’ Compensation Court of Existing
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18   Claims to implement provisions provided for in this title.
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19      E.   The refund provisions of Sections 227 through 229 of Title
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20   68 of the Oklahoma Statutes shall be applicable to any payments made
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21   pursuant to this section.
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22      SECTION 2.   This act shall become effective July 1, 2023.
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23      SECTION 3.   It being immediately necessary for the preservation
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24   of the public peace, health or safety, an emergency is hereby
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     Req. No. 602                                                 Page 4
 1   declared to exist, by reason whereof this act shall take effect and
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 2   be in full force from and after its passage and approval.
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     Req. No. 602                                                Page 5