Read the full stored bill text
An Act
ENROLLED SENATE
BILL NO. 1135 By: Hall and Haste of the
Senate
and
Caldwell (Trey) and Kane of
the House
An Act relating to health insurance; amending 36 O.S.
2021, Section 624, as amended by Section 22, Chapter
395, O.S.L. 2022 (36 O.S. Supp. 2024, Section 624),
which relates to premium taxes; clarifying
applicability of certain exclusion; amending 36 O.S.
2021, Section 625.2, which relates to premium tax
credit; creating certain exclusion; updating
statutory language; updating statutory references;
and declaring an emergency.
SUBJECT: Oklahoma Health Care Authority premium tax
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 36 O.S. 2021, Section 624, as
amended by Section 22, Chapter 395, O.S.L. 2022 (36 O.S. Supp. 2024,
Section 624), is amended to read as follows:
Section 624. A. Every insurance company, copartnership,
insurance association, interinsurance exchange, person, insurer,
nonprofit hospital service and medical indemnity corporation, or
health maintenance organization doing business in this state in the
execution or exchange of contracts of insurance, indemnity or health
maintenance services, or as an insurance company of any nature or
character whatsoever, hereinafter referred to in this article as an
insurance company or company, shall annually, on or before the first
day of March, report under oath of the president or secretary or
other chief officer of such company to the Insurance Commissioner
the total amount of direct written premiums, membership,
ENR. S. B. NO. 1135 Page 2
application, policy and/or registration fees charged during the
preceding calendar year, or since the last return of such direct
written premiums, membership, application, policy and/or
registration fees was made by such company, from insurance of every
kind upon persons or on the lives of persons resident in this state,
or upon real and personal property located within this state, and/or
upon any other risks insured within this state,; provided, that with
respect to the tax payable annually, considerations received for
annuity contracts and payments received by a health maintenance
organization from the Secretary of Health and Human Services
pursuant to a contract issued under the provisions of 42 U.S.C.,
Section 1395mm(g) shall no longer be deemed to be premiums for
insurance and shall no longer be subject to the tax imposed by this
section. Every such company shall, at the same time, pay to the
Insurance Commissioner:
1. An annual license fee as prescribed by Section 321 of this
title; and
2. An annual tax on all of the direct written premiums after
all returned premiums are deducted, and on all membership,
application, policy and/or registration fees, installment and/or
finance fees or charges collected thereby, for the privileges of
having written, continued and/or serviced insurance on lives,
property and/or other risks in this state and of having made and
serviced investments therein during the then expiring license year
except premiums or fees paid by any county, city, town or school
district funds or by their duly constituted authorities performing a
public service organized pursuant to Sections 1001 through 1008 of
Title 74 of the Oklahoma Statutes, or Sections 176 through 180.4 of
Title 60 of the Oklahoma Statutes. Provided, no deduction shall be
made from premiums for dividends paid to policyholders. Except as
set forth in this paragraph, the rate of taxation for all entities
subject to the tax shall be two and twenty-five one-hundredths
percent (2.25%). If any insurance company or other entity liable
for the taxes levied pursuant to the provisions of this section
fails to remit such taxes in a timely manner, it shall remain liable
therefor together with interest thereon at an annual rate equal to
the average United States Treasury Bill rate of the preceding
calendar year as certified by the State Treasurer on the first
regular business day in January of each year, plus four percentage
points.
ENR. S. B. NO. 1135 Page 3
a. The rate of taxation for all life insurance policies
insuring the life of an employee or director for the
benefit of the employer or a trust sponsored by the
employer, which is purchased by the employer or trust
sponsored by the employer for the benefit of its
employees, shall be computed for each policy at the
rate of:
(1) two and twenty-five one-hundredths percent
(2.25%) of policy year premium up to One Hundred
Thousand Dollars ($100,000.00), and
(2) one-tenth of one percent (1/10 of 1%) of policy
year premium exceeding One Hundred Thousand
Dollars ($100,000.00).
b. Premiums on which taxes are paid under division (2) of
subparagraph a of this paragraph are not subject to
Section 628 of this title. The Commissioner shall
promulgate rules regarding the sale of life insurance
policies subject to division (2) of subparagraph a of
this paragraph.
c. Proceeds from the premium tax collected under this
paragraph from contracted entities under the Ensuring
Access to Medicaid Act shall be deposited in the
Medicaid Health Improvement Revolving Fund created in
Section 23 of this act Section 1010.8A of Title 56 of
the Oklahoma Statutes. The provisions of this
subparagraph shall not be construed to affect or
modify Notwithstanding any other provision of law to
the contrary, the premium taxes to be deposited in the
Medicaid Health Improvement Revolving Fund for the
calendar year ending December 31, 2024, and for each
calendar year thereafter, shall not be subject to the
apportionments provided in Section 312.1 of this
title.
B. For all insurance companies or other entities taxed pursuant
to this section, the annual license fee and tax and all required
membership, application, policy, registration, and agent appointment
ENR. S. B. NO. 1135 Page 4
fees shall be in lieu of all other state taxes or fees, except those
taxes and fees provided for in the Oklahoma Insurance Code, and the
taxes and fees of any subdivision or municipality of the state,
except ad valorem taxes and the tax required to be paid pursuant to
Section 50001 of Title 68 of the Oklahoma Statutes. Provided, such
license fee, tax and membership, application, policy, registration,
and appointment fees shall be in lieu of any and all ad valorem
taxes levied on intangible personal property. Any company, except
health maintenance organizations, failing to make such returns and
payments promptly and correctly shall forfeit and pay to the
Insurance Commissioner, in addition to the amount of the taxes and
fees and interest, the sum of Five Hundred Dollars ($500.00) or an
amount equal to one percent (1%) of the unpaid amount, whichever is
greater; and the company so failing or neglecting for sixty (60)
days shall thereafter be debarred from transacting any business of
insurance in this state until the taxes, fees and penalties are
fully paid, and the Insurance Commissioner shall revoke the license
or certificate of authority granted to the agent or agents of that
company to transact business in this state. Provided, that when any
such insurance company, copartnership, insurance association,
interinsurance exchange, person, insurer, or nonprofit hospital
service and indemnity corporation, applies for the first time for a
license to do business in Oklahoma this state, it shall, at the time
of making such application, pay a license fee as prescribed by
Section 1425 1435.23 of this title, and, on or before the first day
of March, following, pay the premium tax, membership, application,
policy, registration, and agent appointment fees, as hereinbefore
provided. Such license fee, tax and membership, application,
policy, registration, and appointment fees shall be in lieu of all
other state taxes or fees, except those taxes and fees provided for
in the Oklahoma Insurance Code, and the taxes and fees of any
subdivision or municipality of the state, except ad valorem taxes
and the tax required to be paid pursuant to Section 50001 of Title
68 of the Oklahoma Statutes.
C. Any health maintenance organization failing to file premium
tax returns and payments promptly and correctly shall forfeit and
pay to the Insurance Commissioner, in addition to the amount of the
taxes, the sum of Five Hundred Dollars ($500.00) or an amount equal
to one percent (1%) of the unpaid amount, whichever is greater. Any
health maintenance organization failing or neglecting to pay the tax
and penalty shall be debarred from operating in this state and the
ENR. S. B. NO. 1135 Page 5
Insurance Commissioner shall revoke the license of the health
maintenance organization, until such taxes and penalties are fully
paid.
SECTION 2. AMENDATORY 36 O.S. 2021, Section 625.2, is
amended to read as follows:
Section 625.2. A. The Except as provided by subsection B of
this section, the tax credits set forth in Section 1 of this act
Section 625.1 of this title shall apply to insurers who take action
after November 1, 1987, to:
1. Establish new regional home offices; or
2. Expand existing regional home offices, and hire new
employees.
B. The tax credits set forth in Section 625.1 of this title
shall not be available to a contracted entity as defined in Section
4002.2 of Title 56 of the Oklahoma Statutes.
C. An insurer in either category of the requirements of
paragraph subsection A of this section must also meet the hiring
minimum requirements for the applicable tax credit bracket in
Section 1 of this act Section 625.1 of this title.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof this act shall take effect and
be in full force from and after its passage and approval.
ENR. S. B. NO. 1135 Page 6
Passed the Senate the 20th day of May, 2025.
Presiding Officer of the Senate
Passed the House of Representatives the 22nd day of May, 2025.
Presiding Officer of the House
of Representatives
OFFICE OF THE GOVERNOR
Received by the Office of the Governor this ____________________
day of ___________________, 20_______, at _______ o'clock _______ M.
By: _________________________________
Approved by the Governor of the State of Oklahoma this _________
day of ___________________, 20_______, at _______ o'clock _______ M.
_________________________________
Governor of the State of Oklahoma
OFFICE OF THE SECRETARY OF STATE
Received by the Office of the Secretary of State this __________
day of __________________, 20 _______, at _______ o'clock _______ M.
By: _________________________________