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Bill > HB1821

AR HB1821

AR HB1821
To Create A More Sustainable System Of Property Insurance For Public Schools, Institutions Of Higher Education, And State-owned Property; And To Declare An Emergency.

summary

Introduced
03/18/2025
In Committee
04/03/2025
Crossed Over
04/01/2025
Passed
04/09/2025
Dead
Signed/Enacted/Adopted
04/14/2025

Introduced Session

95th General Assembly (2025 Regular)

Bill Summary

AN ACT TO CREATE A MORE SUSTAINABLE SYSTEM OF PROPERTY INSURANCE FOR PUBLIC SCHOOLS, STATE- SUPPORTED INSTITUTIONS OF HIGHER EDUCATION, AND STATE-OWNED PROPERTY; TO CREATE THE OFFICE OF PROPERTY RISK WITHIN THE DEPARTMENT OF TRANSFORMATION AND SHARED SERVICES; TO AMEND THE PUBLIC ELEMENTARY AND SECONDARY SCHOOL INSURANCE ACT; TO REVISE THE EMPLOYEE BENEFITS DIVISION OVERSIGHT SUBCOMMITTEE; TO AMEND THE ARKANSAS MULTI-AGENCY INSURANCE TRUST FUND ACT; TO COMBINE PUBLIC ELEMENTARY AND SECONDARY SCHOOLS WITH STATE-SUPPORTED INSTITUTIONS OF HIGHER EDUCATION AND STATE-OWNED PROPERTY UNDER A SINGLE PROGRAM TO ENSURE PROPER VALUATION FOR PROPERTY INSURANCE PURPOSES; TO CREATE THE STATE CAPTIVE INSURANCE PROGRAM ACT; TO PROHIBIT THE USE OF PUBLIC ADJUSTING IN PROPERTY INSURANCE CLAIMS; TO ALLOW FOR THE CREATION OF A CAPTIVE INSURANCE COMPANY BY THE STATE OF ARKANSAS; TO DECLARE AN EMERGENCY; AND FOR OTHER PURPOSES.

AI Summary

This bill creates a comprehensive State Captive Insurance Program to provide a more sustainable system of property insurance for public schools, state-supported institutions of higher education, and state-owned properties. The legislation establishes a captive insurance company within the Department of Transformation and Shared Services to centralize and streamline property insurance coverage for these entities. Key provisions include mandatory participation for public schools and state agencies receiving state appropriations, a prohibition on using public insurance adjusters, and the creation of a dedicated Trust Fund to manage the program's finances. The bill aims to address rising insurance costs and market instability by consolidating insurance programs, implementing strict oversight, and creating a more actuarially sound approach to managing property risks. The program will be governed by a complex set of rules requiring annual reporting to the Legislative Council, maintaining a specific reserve balance, and ensuring transparency in its operations. An emergency clause highlights the urgent need to address escalating insurance costs and provide more predictable coverage for public institutions. The program is set to begin operations by December 1, 2025, with a phased transition of existing insurance programs into the new system.

Committee Categories

Business and Industry

Sponsors (48)

Ben Gilmore (R)*,  Jeff Wardlaw (R)*,  Brandon Achor (R),  Fred Allen (D),  Howard Beaty (R),  Mary Bentley (R),  Justin Boyd (R),  Matt Brown (R),  Josh Bryant (R),  Joey Carr (R),  Fran Cavenaugh (R),  Bruce Cozart (R),  Cindy Crawford (R),  Carol Dalby (R),  Breanne Davis (R),  Jonathan Dismang (R),  Les Eaves (R),  Jon Eubanks (R),  Brian Evans (R),  Zack Gramlich (R),  R.J. Hawk (R),  Bart Hester (R),  Ricky Hill (R),  Mike Holcomb (R),  Missy Irvin (R),  Lane Jean (R),  Blake Johnson (R),  John Maddox (R),  Ron McNair (R),  Jon Milligan (R),  Jeremiah Moore (R),  Stetson Painter (R),  Shad Pearce (R),  Jim Petty (R),  Chad Puryear (R),  Terry Rice (R),  Jay Richardson (D),  Marcus Richmond (R),  Matthew Shepherd (R),  Trey Steimel (R),  Matt Stone (R),  DeAnn Vaught (R),  Steven Walker (R),  Les Warren (R),  David Whitaker (D),  Carlton Wing (R),  Jeremy Wooldridge (R),  Jim Wooten (R), 

Last Action

Notification that HB1821 is now Act 560 (on 04/14/2025)

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