The proposed legislation 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. Key provisions include the restructuring of existing property insurance programs, the prohibition of public adjusting in claims, and the requirement for independent property reappraisals. The bill also emphasizes accountability and transparency, particularly in the management of cybersecurity risks insurance, and mandates that school districts must be insured under the new program to qualify for state financial participation in academic facilities programs.

Additionally, the bill amends various sections of Arkansas law, including renaming the "Employee Benefits Division" to "State Insurance Programs" and creating the "State Insurance Programs Oversight Subcommittee" to oversee decisions related to the new insurance programs. It establishes a captive insurance company to manage risks for state entities and introduces the "State Captive Insurance Program Trust Fund" for financial management. The legislation also sets a reserve balance requirement for the program, outlines claims management procedures, and includes an emergency clause to address the urgent need for reform in the property insurance sector. Overall, the bill aims to enhance the stability and effectiveness of property insurance coverage for public entities in Arkansas.

Statutes affected:
HB 1821: 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