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Oklahoma Legislature· SB 2019Coauthored by Representative Kane (principal House author)

An act relating to insurance guaranty fund, the official text

Shown verbatim: the complete text as captured from the official PDF posted by the Oklahoma Legislature, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
1                   STATE OF OKLAHOMA

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2                  2nd Session of the 60th Legislature (2026)

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3 SENATE BILL 2019           By: Logan
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6                            AS INTRODUCED

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7   An Act relating to insurance guaranty fund; creating

7   the Political Subdivision Liability Insurance

8   Guaranty Program; providing purpose; creating the

8   Political Subdivision Insurance Fund Board to

9   administer program; prescribing membership, terms,

9   and appointment procedures; prescribing duties and

10  powers; creating the Political Subdivision Liability

10  Insurance Guaranty Fund; providing purpose; providing

11  for expenditures from fund; requiring interest earned

11  to be retained in the fund; providing for

12  codification; and providing an effective date.

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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16  SECTION 1.      NEW LAW  A new section of law to be codified

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17 in the Oklahoma Statutes as Section 85.59a of Title 74, unless there
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18 is created a duplication in numbering, reads as follows:
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19  A. There is hereby created the Political Subdivision Liability

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20 Insurance Guaranty Program for the purpose of insuring against
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21 excessive liability judgments against political subdivisions.
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22  B. The program shall be administered, supervised, and protected

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23 by the Political Subdivision Insurance Fund Board. The Board shall
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24 consist of seven (7) members to be appointed as follows:
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    Req. No. 3352                                              Page 1
1   1. The Governor shall appoint three members, one of whom shall

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2 be a member of a governing body of a political subdivision;
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3   2. The President Pro Tempore of the Senate shall appoint two

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4 members, one of whom shall be a member of a governing body of a
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5 political subdivision; and
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6   3. The Speaker of the House of Representatives shall appoint

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7 two members, one of whom shall be a member of a governing body of a
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8 political subdivision.
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9   C. In the event of a vacancy, the appointing authority for the

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10 position shall appoint a qualified successor to serve as the
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11 appointee for the unexpired term of the member so replaced. The
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12 term of office for the appointees shall be as follows:
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13  1. The term of office for four positions, two appointed by the

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14 Governor, and one each appointed by the President Pro Tempore of the
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15 Senate and Speaker of the House of Representatives, shall expire on
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16 November 1, 2029;
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17  2. The term of office for three positions, one each appointed

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18 by the Governor, President Pro Tempore of the Senate, and Speaker of
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19 the House of Representatives, shall expire on November 1, 2028; and
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20  3. Thereafter, successor members shall be appointed for a

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21 three-year term. Members may serve successive terms. Any person
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22 appointed to fill a vacancy shall be appointed for the unexpired
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23 portion of the term in the same manner as the original appointment.
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    Req. No. 3352                                              Page 2
1   D. Meetings of the Board shall be held at least quarterly, with

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2 the first meeting to be held no later than March 31, 2027. The
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3 chair and vice chair of the Board shall be elected by the Board from
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4 among its members in the first meeting. The presence of a majority
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5 of the members constitutes a quorum. No action shall be taken by
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6 the Board without the affirmative vote of at least a majority of the
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7 members.
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8   E. The Board shall be required to create the rules and

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9 guidelines for the voluntary Political Subdivision Liability
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10 Insurance Guaranty Program, including required contributions,
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11 qualifying claims, and procedures, as well as any other requirements
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12 to effectuate the provisions of this act.
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13  F. The Board shall create required training programs for

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14 certain members of political subdivisions to mitigate the occurrence
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15 of judgments for which the program is created to insure against.
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16  SECTION 2.     NEW LAW  A new section of law to be codified

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17 in the Oklahoma Statutes as Section 85.59b of Title 74, unless there
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18 is created a duplication in numbering, reads as follows:
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19  A. There is hereby created the Political Subdivision Liability

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20 Insurance Guaranty Fund, which shall be for the purpose of insuring
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21 participating political subdivisions against excessive liability
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22 judgments as provided by the Political Subdivision Insurance Fund
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23 Board. Monies in the fund, including interest, are not subject to
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24 appropriation and shall be expended to insure political subdivisions
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    Req. No. 3352                                            Page 3
1 pursuant to the Political Subdivision Liability Insurance Guaranty
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2 Program, operating costs of the Board, attorney fees, and other
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3 costs reasonably incurred by the Board in the performance of its
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4 duties.
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5   B. Expenditures from the fund shall be made on warrants issued

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6 by the State Treasurer against claims as prescribed by law. The
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7 fund shall be subject to audit in the same manner as state funds and
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8 accounts, the cost for which shall be paid for from the fund.
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9   SECTION 3. This act shall become effective November 1, 2026.

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11  60-2-3352      QD  1/15/2026 10:05:50 AM

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    Req. No. 3352                             Page 4
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