HB 1085: Contracts; Service Warranty Act; administrative fees; modifying fee amount; effective date. - Oklahoma

Floor (House) → Floor (Senate) · 4 edits

MODERATE

The bill was amended to transition from a House version to a Senate floor version, incorporating substantive changes to administrative fee structures for service warranty associations and insurers. The most significant change is the introduction of a tiered fee schedule with different percentages and flat fee options for various entities, along with updated effective dates for these new fee structures.

Scope change

The bill's scope remains focused on regulating service warranty associations and insurers in Oklahoma, but the fee structure and applicability dates have been modified to create a more complex, tiered system with multiple effective dates.

FISCAL

Administrative fees changed from a single 2% rate to a tiered system with 1.75% starting January 1, 2026, 1.00% starting January 1, 2027, and a flat fee of $3,700 starting January 1, 2028 for all entities.

ELIGIBILITY

Added an option for certain licensed entities with existing contractual liability insurance to elect a flat annual fee ($3,000-$3,350-$3,700 depending on the year) instead of the percent-based fee.

TIMELINE

Multiple effective dates were established for different fee tiers, with the final flat fee structure taking effect on January 1, 2028.

TECHNICAL

Document formatting changed from House floor version to Senate floor version with updated committee report information and page numbering.

House Committee Substitute → Floor (House) · 4 edits

MODERATE

This bill version was updated from the House Committee Substitute to the Floor version, primarily adding the Senate sponsor (Coleman) and updating page headers to reflect the floor version. The substantive policy content regarding service warranty fees, administrative requirements, and effective dates remains unchanged from the committee version.

TECHNICAL

Added Senate sponsor name (Coleman) to the bill header.

Updated page headers from 'Committee Substitute' to 'House of Representatives - Floor Version' and changed page footers to 'HB1085 HFLR'.

Reformatted section numbering and spacing for floor presentation.

Added committee report date and recommendation (DO PASS, As Amended) in the footer section.

Proposed Committee Substitute (full committee) 1 → House Committee Substitute · 2 edits

MINOR

The bill was amended to change the sponsor from a single legislator to two legislators and update the document title to remove 'Proposed Oversight'. The substantive policy content regarding service warranty fees and administrative requirements remains unchanged from the original committee substitute.

TECHNICAL

Changed the bill sponsor from Mark Tedford to Adams and Tedford, and updated the document title from 'Proposed Oversight Committee Substitute' to 'Committee Substitute'.

Updated the document reference number from Req. No. 13105 to Req. No. 13151 and adjusted page numbering throughout the document.

Engrossed → Proposed Committee Substitute (full committee) 1 · 3 edits

MINOR

This bill was amended to replace the entire text with a committee substitute version that updates administrative fees for service warranty associations and insurers. The substantive policy changes include adjusting fee percentages and fixed annual fee amounts for different years, while maintaining the same effective date of January 1, 2026.

Scope change

The bill's scope remains focused on service warranty associations and insurers, with no changes to applicability criteria or covered entities.

FISCAL

Administrative fee percentages were adjusted from 2% to 1.75% effective January 1, 2026, and to 1% effective January 1, 2027, with corresponding changes to fixed annual fee options.

Fixed annual administrative fee amounts were updated to reflect new percentage calculations, ranging from $3,000 to $3,700 depending on the year and entity type.

TECHNICAL

The bill text was replaced with a full committee substitute version, updating formatting and page references while preserving the core legislative intent.

Introduced → Engrossed · 5 edits · Mar 10, 2025

MODERATE

This bill amends Oklahoma's Service Warranty Act to update administrative fees for service warranty associations and insurers. The changes establish a tiered fee structure that increases over time, starting at 2% in 2025, rising to 1.75% in 2026, 1% in 2027, and finally a flat $3,700 annual fee in 2028. Additionally, the bill clarifies that provider fees are subject to an administrative fee rather than the premium tax, and maintains an option for certain licensed entities to pay a flat annual fee instead of the percentage-based fee.

Scope change

The bill modifies the financial obligations for service warranty associations and insurers operating in Oklahoma, specifically changing how administrative fees are calculated and when they take effect.

FISCAL

Changed administrative fee calculation from a flat $3,700 annual fee to a tiered structure starting at 2% of gross provider fees in 2025, with scheduled reductions to 1.75% in 2026, 1% in 2027, and a final flat fee of $3,700 in 2028.

Clarified that provider fees and assessments are subject to an administrative fee rather than the premium tax, with specific amounts for insurers and eligible entities paying the flat fee option.

TIMELINE

Added specific effective dates for each fee tier, with the act becoming effective January 1, 2026, and subsequent fee changes occurring on January 1 of 2027 and 2028.

REQUIREMENT

Modified the annual financial statement filing requirement to specify statements must be audited per statutory accounting principles or verified under oath by two principal officers depending on compliance status.

ELIGIBILITY

Added eligibility criteria for entities to elect the flat annual fee option, requiring contractual liability insurance covering 100% of claims exposure as of March 31, 2009, or meeting specific insurance requirements.

Contracts; Service Warranty Act; administrative fees; modifying fee amount; effective date.

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