The proposed bill seeks to create a more sustainable property insurance system for public schools, state-supported institutions of higher education, and state-owned properties in Arkansas by establishing the Office of Property Risk within the Department of Transformation and Shared Services and introducing the State Captive Insurance Program. This program will consolidate existing property insurance programs into a single framework, requiring cooperation among state entities to ensure effective coverage and proper property valuation. Key provisions include the transfer of property insurance programs from the Department of Commerce to the Department of Transformation and Shared Services by December 1, 2025, and the prohibition of public adjusting in property insurance claims to stabilize premiums and improve market options.

Additionally, the bill amends various sections of Arkansas law to enhance insurance requirements and reporting obligations for public school districts and related entities, including the submission of comprehensive reports on cybersecurity risks insurance programs. It establishes the "State Insurance Programs Oversight Subcommittee" to oversee decisions related to the State and Public School Life and Health Insurance Program and the State Captive Insurance Program. The bill also introduces a captive insurance company managed by the Secretary of the Department of Transformation and Shared Services, funded through a newly created trust fund for claims and operational expenses. Overall, the legislation aims to streamline insurance processes, improve financial accountability, and ensure long-term stability for public entities in Arkansas.

Statutes affected:
SB 481: 6-20-1503, 6-20-1505, 6-20-1506, 6-20-1508, 6-20-1513, 6-21-114(d), 6-21-806, 6-21-803, 6-21-804, 6-21-808, 10-3-320, 19-5-1134, 6-20-1501, 6-21-701, 6-20-1510, 19-5-908, 6-21-710, 19-5-981, 23-63-1614, 23-65-315, 19-3-706, 25-35-102, 25-35-103(b), 25-35-104(a), 25-35-105(b), 25-35-107, 25-35-108
Act 779: 6-20-1503, 6-20-1505, 6-20-1506, 6-20-1508, 6-20-1513, 6-21-114(d), 6-21-806, 6-21-803, 6-21-804, 6-21-808, 10-3-320, 19-5-1134, 6-20-1501, 6-21-701, 6-20-1510, 19-5-908, 6-21-710, 19-5-981, 23-63-1614, 23-65-315, 19-3-706, 25-35-102, 25-35-103(b), 25-35-104(a), 25-35-105(b), 25-35-107, 25-35-108