Oklahoma Administrative Code › Title 1 - EXECUTIVE ORDERS › Section 1:2015-28

Current through Vol. 41, No. 20, July 1, 2024
Today I signed House Bill 2238, which clarifies funding for the
			 Workers' Compensation system of Oklahoma and remedies the lack of clear
			 legislative intent regarding a refund of payments to the Multiple Injury Trust
			 Fund.
Prior to 2011, the Multiple Injury Trust Fund was funded by
			 assessments of insurance carriers writing workers' compensation insurance in
			 Oklahoma. The assessment was determined by a statutory framework contained
			 within 85 O.S. §
							173. The law,
			 prior to 2011, also contained a rebate procedure for these assessed insurance
			 carriers. 68 O.S. §
							6101 provided
			 that "parties required to pay an assessment pursuant to Section
			 173 of Title
			 85 of the Oklahoma Statutes shall be entitled to receive a rebate equal to
			 two-thirds (2/3) of the amount of the assessment actually paid, subject to
			 application to and approval of the same by the Oklahoma Tax Commission."
			 (emphasis added). Thus, to receive a rebate, an insurance company had to
			 qualify as an entity that was subject to assessment in 85 O.S. §
							173.
In 2011, Senate Bill 878, a redrafting of workers' compensation
			 law, specifically repealed 85 O.S. §
							173. The
			 assessment determination was modified and then codified at 85 O.S. §
							403.
			 This modification resulted in the loss of a statutory basis to pay a rebate to
			 an insurance company, since no company could claim that it was subject to
			 assessment pursuant to 85 O.S. §
							173 (a
			 repealed statute). However, Senate Bill 878 expressed no clear intent whether
			 the repeal of 85 O.S. §
							173 was
			 intended to repeal the rebate contained within 68 O.S. §
							6101. The
			 Oklahoma Tax Commission continued to pay the 68 O.S. §
							6101 rebate to
			 an insurance company if it could demonstrate that it had been assessed pursuant
			 to the new statute, 85 O.S. §
							403.
In 2013, Senate Bill 1062 specifically repealed 85 O.S. §
							403.
			 The assessment determination was again modified and then codified at 85A
			 O.S.§ 31. However, Senate Bill 1062 did not express a clear intent as to
			 whether the repeal of 85 O.S. §
							403
			 was intended to repeal the rebate contained within 68 O.S. §
							6101. The
			 Oklahoma Tax Commission continued to pay the 68 O.S. §
							6101 rebate to
			 an insurance company if it could demonstrate that it had been assessed pursuant
			 to the new statute, 85A O.S.§ 31.
Today with the signing of House Bill 2238, the intent of the
			 Legislature is made clear as to the rebate provisions contained within 68 O.S.
			 §
							6101. Based on
			 increased funding included in the budget, language in Section 3 of the bill
			 which removes billing restrictions, and discussions of legislative intent
			 during budget negotiations with this office, I recognize and concur with the
			 Legislature that the Oklahoma Tax Commission should no longer process the
			 rebate of the Multiple Injury Trust Fund assessments pursuant to 68 O.S. §
							6101. It
			 appears that previous legislative intent may well have been for the rebate to
			 have been paid between 2011 and this date. However, that is no longer the
			 case.
I hereby direct that as a result of House Bill 2238, future
			 rebate claims pursuant to 68 O.S. §
							6101 shall not
			 be accepted by the Oklahoma Tax Commission.
This Executive Order shall be distributed to the Director of the
			 Oklahoma Tax Commission and the Director of the Multiple Injury Trust Fund, who
			 shall cause the provisions of this Order to be implemented as herein
			 directed.
IN WITNESS WHEREOF, I have set my hand and caused the Great Seal
			 of the State of Oklahoma to be affixed at Oklahoma City, Oklahoma, this
			 1st day of June, 2015.
BY THE GOVERNOR OF THE STATE OF OKLAHOMA
Mary Fallin
ATTEST:
Chris Benge
Secretary of State