Okla. Stat. tit. 68, § 68-1703: Surety bond conditioned upon compliance with tax laws -

Waiver.

Notwithstanding the provisions of Sections 1103 and 1731 of

Title 69 of the Oklahoma Statutes, every nonresident contractor,

including those in the position of subcontractor, subject to the

provisions of this article, before actually commencing work or

undertaking to perform any services or duties under any such

contract in excess of One Hundred Thousand Dollars ($100,000.00),

shall file with the Oklahoma Tax Commission a surety bond with a

surety authorized to do business in this state, in the penal sum of

not less than three times the tax liability incurred or to be

incurred under any such contract, payable to the State of Oklahoma,

or, in lieu of such surety bonds, cash or negotiable bonds or other

obligations of the United States of America, the State of Oklahoma

or its subdivisions, conditioned upon compliance with the tax laws

of Oklahoma, both state and local, the Oklahoma Employment Security

Act, the Oklahoma Workers’ Compensation Act, and the provisions and

requirements of this article; provided:

1. If such contractor receives another contract to perform

services or duties in this state or if, in the judgment of the Tax

Commission the amount of tax liability incurred or to be incurred

under such contract is increased from the amount used to compute the

amount of the original bond, the amount of such bond shall be

increased to meet the requirements set forth in this subsection;

2. The amount of such tax liability may be reduced by the

amount of the tax liability incurred or to be incurred by

nonresident contractors in the position of subcontractors, who

actually post bonds on their subcontracts, listed in the notice to

the Oklahoma Tax Commission by a prime contractor, as required by

the preceding section; and

3. If the Tax Commission, after making an investigation at the

request of a nonresident contractor, finds that such nonresident

contractor has and will continue to have property within Oklahoma,

and has regularly engaged in business in this state and will

continue to do so, and the Tax Commission, for said reason,

determines in writing that such nonresident contractor’s financial

responsibility is sufficient to cover its tax liability and the

other obligations covered by this article, such nonresident

contractor shall not be required to make and file the surety bond

required in this section nor to give the notices required by this

article, and the Tax Commission shall notify the nonresident

contractor of its findings.