SB179
To Establish The Strengthen Arkansas Homes Act; And To Create The Strengthen Arkansas Homes Program Premium Tax Fund.
Last Action (Feb. 3, 2025): Sine Die adjournment
Sponsors
AI-Generated Summary
Senate Bill 179 establishes the 'Strengthen Arkansas Homes Act' and creates the 'Strengthen Arkansas Homes Program Premium Tax Fund' to provide financial grants for property owners to mitigate losses from catastrophic wind and hail events. The bill redirects a portion of existing insurance premium taxes paid by foreign, domestic, and health maintenance organizations to this newly created special revenue fund. The program will be administered by the Arkansas Insurance Commissioner and focuses on upgrading or constructing owner-occupied, single-family homes to meet 'FORTIFIED' construction standards. To qualify for grants, homeowners must meet specific requirements, including maintaining wind and flood insurance and utilizing certified evaluators and contractors. The legislation mandates that funds from the program can only be used for eligible mitigation projects and prohibits their use for any other purpose. Additionally, the bill provides confidentiality protections for documents submitted in support of grant applications, exempting them from the state's Freedom of Information Act.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are owners of owner-occupied, single-family primary residences who are eligible for grants to upgrade their properties to meet FORTIFIED disaster-resistant construction standards. Additionally, the construction industry in Arkansas, specifically contractors certified by the Insurance Institute for Business & Home Safety, will benefit from an increase in demand for retrofitting and construction services. Nonprofit organizations that may be involved in facilitating these loss mitigation projects also stand to benefit through potential partnerships and funding opportunities.
Who Might Suffer?
The primary negative impact falls on the general state budget, as the bill redirects up to $12 million in insurance premium tax revenues away from the general revenue fund and into the specific program fund. This represents a reduction in funds available for general state government operations. Additionally, property owners who do not meet the specific eligibility criteria—such as owners of mobile homes, manufactured homes, condominiums, or non-homesteaded properties—will not be eligible to receive these grants, despite their taxes potentially contributing to the insurance industry revenues that fund the program.
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