All Roll Calls
Yes: 118 • No: 3
ArkansasSB4812025 Regular SessionSenate
TO CREATE A MORE SUSTAINABLE SYSTEM OF PROPERTY INSURANCE FOR PUBLIC SCHOOLS, STATE-SUPPORTED INSTITUTIONS OF HIGHER EDUCATION, AND STATE-OWNED PROPERTY; AND TO DECLARE AN EMERGENCY.
Sponsored By: Ben Gilmore (Republican), Jeff Wardlaw (Republican)
Enacted
Personalized for You
How does this bill affect your finances?
Personalize government policy and PRIA will tell you what this bill means for your household, plus every other piece of legislation we track. PRIA reads each provision against your financial profile to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
11 provisions identified: 2 benefits, 5 costs, 4 mixed.
School and agency premiums track reserves
The program's optimal reserve target is $50 million–$75 million beginning December 1, 2025. Beginning December 1, 2026, annual reserve requirements follow actuarial estimates of insured risks. If lawmakers do not provide needed funds by March 1 after review, next-year premiums must rise, benefits fall, or both. Premiums may fall when projected reserves exceed $75 million, with Legislative Council or Joint Budget Committee approval. Premiums reflect insured risks and are due under each entity's contract; unpaid premiums accrue 5% annual interest. After 30 days of nonpayment, coverage may be cancelled with 30 days' notice.
Public money supports the state insurer
The law creates a trust fund for money from the state insurer and other legally approved sources. Its money can pay only program claims, expenses, and supporting staff costs. The fund is exempt from deductions, taxes, levies, and other assessments. Arkansas and local governments can also use public money to buy shares in the insurer. The law requires no share purchase and sets no investment amount.
State insurer gets insurance tax exemptions
The state-owned insurer is exempt from the specified premium tax and surplus lines broker tax provisions. These exemptions apply to the insurer, not household tax returns. The law states no tax savings amount and does not require savings to lower schools' or agencies' premiums.
Schools face insurance and upkeep requirements
Districts must insure their buildings and business property through the State Captive to receive Partnership or Catastrophic facilities funding. Districts without that coverage cannot receive this state aid. The Department of Transformation and Shared Services now helps approve facility plans and receives insurance proof and reports. It must set rules for repairs, preventive upkeep, major system replacement schedules, and insurance amounts and types. District plans must include required records and schedules, including depreciation schedules for roofs and heating and cooling systems.
Schools lose prior insurance safeguards
The law removes the three-appraiser process for school property-loss disputes and related department duties and real estate broker contracting authority. Loss payments remain payable from the Public School Insurance Trust Fund as the applicable contract provides. It removes the department's duty to ensure bond-related coverage and the program's requirement to include existing bond-contract terms. The school facilities commission now consults the Department of Transformation and Shared Services rather than the Insurance Commissioner. Its insurance rules no longer must require a minimum A.M. Best financial-strength rating.
Public entities face coverage and claim limits
After Legislative Council or Joint Budget Committee review, the secretary may cancel or not renew coverage for uninsurable property. The secretary may also refuse coverage for property that fails program guidelines after that review. Insured entities must provide requested information about these coverage decisions. They cannot use public insurance adjusters or public adjusting services. Claims under the State Captive must be filed within one year after the loss.
State agency insurance trust rules change
The Multi-Agency Insurance Trust Fund's premium-spending authority is narrowed to motor vehicle insurance and reinsurance. Agencies participating in the State Master Property Policy on June 30, 2003 leave the required participant list. Agencies participating in the trust's Cyber Liability Insurance Program on June 30, 2025 join that list. These rules govern state agencies and do not require household payments.
School insurance fund provisions are narrowed
The law removes transfers from the former school property insurance fund from the Public School Insurance Trust Fund's listed sources. Transfers from the former school vehicle insurance reserve fund remain listed. It also removes the statutory cancellation of an initial $1.5 million loan between those former funds. The law gives no repayment terms and does not establish whether repayment is due. It creates no household loan obligation.
Public property insurance moves between programs
Transfers to the Department of Transformation and Shared Services begin July 1, 2025; property programs must transfer by December 1, 2025. Related authority and resources must fully transfer by December 1, 2026. Existing officials continue until completion or November 30, 2025, whichever comes first; extensions by rule cover only claims adjustment and payment. The secretary sets filing dates for older unreported claims, which remain payable under applicable prior plans. The Arkansas School Boards Association remains responsible for earlier unreported claims under its plan; the captive excludes those legacy claims. Claims arising on or after the secretary's rule-set date must go to the captive.
State insurer covers schools and agencies
The law creates a State Captive Insurance Program, using a state-owned insurer for public property. The Treasurer may form the insurer with State Board of Finance approval. Schools and agencies owning state-supported property and receiving state facility appropriations must participate. Covered schools include districts, education cooperatives, public charter schools, and state-supported colleges. A new Office of Property Risk runs the program, and state entities must coordinate coverage requirements.
Schools get optional cyber insurance with limits
The State Insurance Department's multischool program now covers cybersecurity risks instead of property risks. Districts, education cooperatives, and public charter schools must choose to join to obtain coverage. The department sets premiums, buys insurance, and adopts program rules. It may deny coverage when property fails its coverage guidelines. Affected districts must provide requested information about denial, nonrenewal, or cancellation.
Sponsors & Cosponsors
Sponsors
Ben Gilmore
Republican • Senate
Jeff Wardlaw
Republican • House
Cosponsors
Brandon Achor
Republican • House
Breanne Davis
Republican • Senate
Blake Johnson
Republican • Senate
Howard M. Beaty, Jr.
Republican • House
Mary Bentley
Republican • House
Frances Cavenaugh
Republican • House
Bruce Cozart
Republican • House
Cindy Crawford
Republican • House
David Whitaker
Democratic • House
Carol Dalby
Republican • House
Les D. Eaves
Republican • House
Jon S. Eubanks
Republican • House
Brian S. Evans
Republican • House
Fred Allen
Democratic • House
Zack Gramlich
Republican • House
RJ Hawk
Republican • House
Bart Hester
Republican • Senate
Ricky Hill
Republican • Senate
Mike Holcomb
Republican • House
Missy Irvin
Republican • Senate
Justin Boyd
Republican • Senate
Joshua Bryant
Republican • Senate
Jonathan Dismang
Republican • Senate
Jeremiah Moore
Republican • House
Jim Petty
Republican • Senate
Jay Richardson
Democratic • House
Lane Jean
Republican • House
Joey L. Carr
Republican • House
Matt Brown
Republican • House
Matthew J. Shepherd
Republican • House
John Maddox
Republican • House
Ron McNair
Republican • House
Jon Milligan
Republican • House
Stetson Painter
Republican • House
Shad Pearce
Republican • House
Chad Puryear
Republican • House
Terry Rice
Republican • Senate
Marcus E. Richmond
Republican • House
Trey Steimel
Republican • House
Matt Stone
Republican • Senate
DeAnn Vaught
Republican • House
Steven Walker
Republican • House
Les Warren
Republican • House
Carlton Wing
Republican • House
Jeremy Wooldridge
Republican • House
Jim Wooten
Republican • House
Roll Call Votes
House vote • 4/14/2025
House Vote - Monday, April 14, 2025 4:47:34 PM
Yes: 90 • No: 3 • Other: 5
Senate vote • 4/2/2025
Senate Vote - Wednesday, April 2, 2025 3:01:49 PM
Yes: 28 • No: 0 • Other: 5
Actions Timeline
Notification that SB481 is now Act 779
4/18/2025SenateDELIVERED TO GOVERNOR.
4/15/2025SenateReported correctly enrolled and ordered delivered to the Governor.
4/15/2025SenateORDERED ENROLLED
4/14/2025SenateReturned from the House as passed.
4/14/2025SenateReturned to the Senate as passed.
4/14/2025HouseEMERGENCY CLAUSE ADOPTED
4/14/2025HouseRead the third time and passed and ordered transmitted to the Senate.
4/14/2025HouseReturned by the Committee Do Pass
4/9/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE
4/2/2025HouseRECEIVED FROM THE SENATE
4/2/2025HouseOrdered immediately transmitted to the House.
4/2/2025SenateEMERGENCY CLAUSE ADOPTED
4/2/2025SenateRead the third time and passed.
4/2/2025SenateReturned by the Committee, with the recommendation that it Do Pass
4/1/2025SenateRead first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE
3/17/2025SenateFiled
3/17/2025Senate
Bill Text
SB481 - Introduced
3/17/2025
Act Version
Related Bills
HB1265, AN ACT FOR THE UNIVERSITY OF ARKANSAS AT LITTLE ROCK APPROPRIATION FOR THE 2025-2026 FISCAL YEAR.
HB1237, TO PROHIBIT MEDICAL PROFESSIONALS FROM SOLICITING INJURED INDIVIDUALS; AND TO SET PENALTIES FOR A VIOLATION OF THE PROHIBITION OF SOLICITATION OF INJURED INDIVIDUALS.
HB1686, TO AMEND THE LAW CONCERNING LICENSES TO CARRY CONCEALED HANDGUNS.
SB440, TO AMEND THE LAW CONCERNING EMBALMERS AND FUNERAL DIRECTORS; TO REGULATE THE USE OF ALKALINE HYDROLYSIS; AND TO REGULATE ALKALINE HYDROLYSIS FACILITIES.
HB1695, TO CLARIFY THE FORECLOSURE PROCESS FOR PROPERTY SUBJECT TO A MUNICIPAL LIEN; TO ALLOW A MUNICIPALITY TO PETITION TO SET ASIDE THE SALE OF PROPERTY TO CERTAIN PERSONS; AND TO PROVIDE FOR THE PRIORITY OF UNRECORDED MUNICIPAL LIENS.
HR1012, TO AMEND THE RULES OF THE HOUSE OF REPRESENTATIVES OF THE NINETY-FIFTH GENERAL ASSEMBLY; TO REQUIRE THAT A MEMBER OF THE HOUSE OF REPRESENTATIVES BE SELECTED AS A DESIGNATED SURVIVOR.