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 and requires cooperation among state entities to ensure effective coverage and accurate property valuations. Key provisions include a deadline of December 1, 2026, for transferring property insurance programs to the new framework, independent reappraisals of properties, and a prohibition on public adjusting in claims to stabilize insurance premiums.

Additionally, the bill amends various sections of Arkansas law to enhance accountability and financial management of public school facilities. It grants the State Insurance Department authority to require comprehensive reports on cybersecurity risks insurance programs and mandates that school districts submit evidence of insurance coverage as part of their facilities master plans. The bill also 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. Furthermore, it introduces provisions for a captive insurance company managed by the Secretary of the Department, creating a trust fund for claims and operational expenses, while exempting these companies from certain regulations. Overall, the bill aims to improve the insurance framework for public entities in Arkansas and ensure proper governance and financial management.

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
Act 560: 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