1. A. There is hereby created the "Group Self-Insurance Association Guaranty Fund Board". The Board shall have supervision over the administration and operation of the Group Self-Insurance Association Guaranty Fund.

2. B. The Board shall consist of not less than three (3) nor more than nine (9) members. Each member shall be an administrator of a Group Self-Insurance Association which has been approved by the Workers' Compensation Court as an own-risk carrier or self-insured risk. The Board shall be appointed by the Administrator of the Workers' Compensation Court. The initial members of the Board shall be appointed to terms of office as follows:

   1. 1. One member shall be appointed for one (1) year;
   2. 2. One member shall be appointed for two (2) years; and

   3. 3. One member shall be appointed for three (3) years.

      If more than three members are appointed, the fourth member shall be appointed for four (4) years and each of the others appointed shall be for terms of office in the order of their appointment of one, two, three or four years with the ninth member also serving four (4) years. Thereafter, each person appointed shall serve for four (4) years. Provided, board members serving on the effective date of this act shall continue to serve until expiration of their respective terms. Members may be appointed to successive terms.

3. C. The State Treasurer shall establish the Group Self-Insurance Association Guaranty Fund in the State Treasury.
4. D. The monies paid into the fund, together with the interest thereon, shall constitute the Group Self-Insurance Association Guaranty Fund.
5. E. Until the Group Self-Insurance Association Guaranty Fund contains One Million Dollars ($1,000,000.00), the Oklahoma Tax Commission shall assess and collect from each group self-insurance association carrying their own risk, a tax at the rate of one percent (1%) of the total compensation for permanent partial impairment awards paid out during each quarter of the calendar year by each group self-insurance association. The Oklahoma Tax Commission shall forward to the State Treasurer the proceeds of the tax for deposit in the fund. When the amount in the fund falls below Seven Hundred Fifty Thousand Dollars ($750,000.00), the tax made pursuant to this section shall be assessed until the fund contains One Million Dollars ($1,000,000.00). The State Treasurer shall place monies in the fund in interest-bearing accounts.
6. F. If a group self-insurance association, that is currently approved by the Court as a self-insured or own-risk carrier, is unable to make payment of an award and judgment is rendered against such group self-insurance association and execution is levied and returned unsatisfied in whole or in part, payments for such liabilities shall be made from the Group Self-Insurance Association Guaranty Fund. The Administrator shall proceed to recover such payments from the group self-insurance association, or the group self-insurance association's receiver or trustee in bankruptcy, and may commence an action or proceeding or file a claim therefor. The Attorney General shall appear on behalf of the Administrator in any such action or proceeding. All monies recovered in such action shall be paid into the fund.
7. G. Each group self-insurance association approved as a self-insurer or own-risk carrier shall pay into the fund a sum equal to that assessed against such group self-insurance association as provided for in subsection E of this section. When the award becomes final, the sum shall be payable regardless of whether or not the award made to the claimant is paid.
8. H. In making and entering awards for compensation for permanent partial impairment, the Court shall determine and fix the amounts that shall be paid to the Tax Commission pursuant to the provisions of subsection E of this section. The amount so determined and fixed shall have the same force and effect as an award of the Court for compensation and all provisions relating to the collection of awards of the Court shall apply to such judgments.
9. I. It shall be the duty of the Oklahoma Tax Commission to collect the payments provided for in this section. The Oklahoma Tax Commission is hereby authorized to bring an action for the recovery of any delinquent or unpaid payments required in this section.
10. J. The Oklahoma Tax Commission shall on or before the first day of April of each year find and determine the amount of money held as of March 1 of that year by the State Treasurer for the benefit of the Group Self-Insurance Association Guaranty Fund and shall on or before the first day of October of each year find and determine the amount of money held as of September 1 of that year by the State Treasurer for the benefit of the Group Self-Insurance Association Guaranty Fund. Promptly after making each such determination, the Oklahoma Tax Commission shall advise the Administrator in writing of its findings.
11. K. Eighty percent (80%) of all sums held by the State Treasurer to the credit of the Group Self-Insurance Association Guaranty Fund by order of the Administrator, with the approval of the Group Self-Insurance Association Guaranty Fund Board, may be invested in or loaned on the pledge of any of the securities in which a state bank may invest the moneys deposited therein by the State Treasurer; or may be deposited in state or national banks or trust companies upon insured time deposit bearing interest at a rate no less than currently being paid upon insured savings accounts in the institutions. As used in this section, "insured" means insurance as provided by an agency of the federal government. All such securities or evidence of indebtedness shall be placed in the hands of the State Treasurer, who shall be the custodian thereof, who shall collect the principal and interest when due, and pay the same into the fund. The State Treasurer shall pay by vouchers drawn on the Group Self-Insurance Association Guaranty Fund for the making of such investments, when signed by the Administrator and approved by the Group Self-Insurance Association Guaranty Board, upon delivery or evidence of indebtedness to him or her. The Administrator, upon approval of the Group Self-Insurance Association Guaranty Board, may sell any of such securities, the proceeds thereof to be paid over to the State Treasurer for deposit in the fund.
12. L. The refund provisions of Sections 227 through 229 of Title 68 of the Oklahoma Statutes shall be applicable to any payment of assessments made to the fund when the fund has over One Million Dollars ($1,000,000.00) in it. Refunds shall be paid from the fund.
13. M. The Oklahoma Tax Commission shall pay, monthly, to the State Treasurer to the credit of the Group Self-Insurance Association Guaranty Fund all moneys collected under the provisions of this section. The State Treasurer shall pay out of the Group Self-Insurance Association Guaranty Fund only upon the order and direction of a court of this state acting under the provisions thereof.
14. N. Where an award has been made by the Court or a payment in lieu thereof for compensable injury for a permanent partial impairment, the employer shall pay to the Tax Commission such sum as is due of which ninety-eight percent (98%) of the sum shall be paid into the fund and the remaining two percent (2%) thereof shall be paid to the Oklahoma Tax Commission not later than the fifteenth of the month following the close of the calendar quarter in which the award was made.
15. O. The Board may retain an insurance carrier or approved service organization to process, investigate and pay valid claims. The charge for such service shall be paid from the fund.
16. P. The provisions of this section shall not apply to any group self-insurance association consisting of state entities or of any political subdivisions of the state.
17. Q. No claim or award shall be allowed against the fund unless such claim or award is made within one (1) year of the time provided in subsection F of this section.
18. R. Pursuant to the requirements of Section 65 of this act, the Group Self-Insurance Association Guaranty Fund and Board shall cease to exist once the initial appointments to the Workers' Compensation Self-Insurance Guaranty Fund Board are made as provided in Section 60 of this act.

Added by Laws 2011, SB 878, c. 318, § 59.