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 accurate property valuations. Key provisions include a deadline of December 1, 2025, for transferring property insurance programs to the new system, independent reappraisals of properties, and a prohibition on public adjusting in property insurance claims to stabilize premiums and improve market options.

Additionally, the bill amends various sections of Arkansas law to enhance accountability and safety in public school facilities through improved insurance practices and reporting standards. It requires school districts to report their cybersecurity risks insurance program to the State Insurance Department and submit evidence of insurance coverage as part of their facilities master plan. The bill also establishes the "State Insurance Programs Oversight Subcommittee" to oversee decisions related to the new insurance programs and introduces a captive insurance company funded by a "State Captive Insurance Program Trust Fund." Overall, the legislation aims to improve the management and funding of insurance for public entities while ensuring compliance with existing laws and regulations.

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