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Bi-partisan Sponsorship
Taxes & Budget

HB1821

To Create A More Sustainable System Of Property Insurance For Public Schools, Institutions Of Higher Education, And State-owned Property; And To Declare An Emergency.

Passed

Last Action (April 14, 2025): Notification that HB1821 is now Act 560

Sponsors

AI-Generated Summary

House Bill 1821 seeks to address the state's property insurance crisis for public schools, institutions of higher education, and state-owned property by consolidating these assets under a new 'State Captive Insurance Program.' The bill establishes this program within the Department of Transformation and Shared Services, moving oversight from existing multi-agency trusts. It prohibits the use of public adjusters for insurance claims by public schools and higher education institutions to help stabilize premium costs. The legislation mandates the reappraisal of state-supported higher education properties to ensure accurate valuation and risk assessment. Additionally, it directs various state departments to coordinate the transfer of administrative functions and assets to the new program by late 2025. The bill includes an emergency clause to address immediate insurance instability and long-term systemic risk. It explicitly characterizes state funding infusions as one-time measures rather than permanent solutions. Finally, the bill emphasizes increased transparency, accountability, and actuarial soundness in managing state property insurance.

Potential Impact Analysis

Who Might Benefit?

The primary beneficiaries are the state government and public institutions, including public school districts, public charter schools, education service cooperatives, and state-supported institutions of higher education. By consolidating these entities into a single captive insurance pool, the state intends to achieve greater economies of scale, more accurate asset valuation, and more stable, sustainable insurance premiums, which protects the taxpayer-funded budgets of these institutions.

Who Might Suffer?

The primary group negatively impacted is the industry of public insurance adjusters, as the bill explicitly prohibits their use for claims involving public schools and state institutions. Furthermore, institutions that have historically benefited from lower valuation assessments may experience increased insurance premiums once their properties are independently reappraised and brought to accurate market values under the new program.

Vote Records

Third Reading

April 8, 2025
Yea: 32 Nay: 0 NV: 2 Absent: 1 Passed
View individual votes (35)
Legislator Party Chamber Vote
Jane English Republican Senate Yea
Jonathan Dismang Republican Senate Yea
Greg Leding Democrat Senate Yea
Missy Irvin Republican Senate Yea
Bryan King Republican Senate Absent
Kim Hammer Republican Senate Yea
Stephanie Flowers Democrat Senate Yea
Frederick Love Democrat Senate Yea
Terry Rice Republican Senate Yea
Reginald Murdock Democrat Senate NV
Gary Stubblefield Republican Senate Yea
Jim Dotson Republican Senate Yea
John Payton Republican Senate Yea
Alan Clark Republican Senate Yea
Ronald Caldwell Republican Senate Yea
Bart Hester Republican Senate Yea
Jimmy Hickey Republican Senate Yea
Dan Sullivan Republican Senate Yea
David Wallace Republican Senate Yea
Blake Johnson Republican Senate Yea
Justin Boyd Republican Senate Yea
Clarke Tucker Democrat Senate Yea
Scott Flippo Republican Senate Yea
Clint Penzo Republican Senate Yea
Mark Johnson Republican Senate Yea
Ricky Hill Republican Senate Yea
Jamie Scott Democrat Senate NV
Breanne Davis Republican Senate Yea
Ben Gilmore Republican Senate Yea
Joshua Bryant Republican Senate Yea
Matt McKee Republican Senate Yea
Jim Petty Republican Senate Yea
Steve Crowell Republican Senate Yea
Tyler Dees Republican Senate Yea
Matt Stone Republican Senate Yea

Third Reading

April 1, 2025
Yea: 89 Nay: 5 NV: 6 Absent: 0 Passed
View individual votes (100)
Legislator Party Chamber Vote
Tracy Steele Democrat House Yea
Fred Allen Democrat House Yea
Lane Jean Republican House Yea
Stephen Meeks Republican House Yea
Mark Perry Democrat House Yea
Jon Eubanks Republican House Yea
Matthew Shepherd Republican House Yea
Jeff Wardlaw Republican House Yea
Bruce Cozart Republican House Yea
David Whitaker Democrat House Yea
Mike Holcomb Republican House Yea
Stephen Magie Democrat House Yea
Mark McElroy Republican House Yea
Richard Womack Republican House Yea
Jack Ladyman Republican House Yea
Robin Lundstrum Republican House Yea
Dwight Tosh Republican House Nay
Rick Beck Republican House Yea
Mary Bentley Republican House Yea
Les Eaves Republican House Yea
Justin Gonzales Republican House Yea
Julie Mayberry Republican House Yea
Ken Ferguson Democrat House Yea
Ron Mcnair Republican House Yea
Marcus Richmond Republican House Yea
Deann Vaught Republican House Yea
Karilyn Brown Republican House Yea
Sonia Eubanks Barker Republican House Yea
Frances Cavenaugh Republican House Yea
Jimmie Gazaway Republican House Yea
Roger Lynch Republican House Yea
John Maddox Republican House Yea
Aaron Pilkington Republican House Yea
Johnny Rye Republican House Yea
Les Warren Republican House Yea
Carlton Wing Republican House Yea
Austin Mccollum Republican House NV
Carol Dalby Republican House Yea
Steve Hollowell Republican House Yea
Brian Evans Republican House Yea
Lee Johnson Republican House Yea
Andrew Collins Democrat House Yea
Stan Berry Republican House Yea
Harlan Breaux Republican House Yea
Cameron Cooper Republican House Yea
Nicole Clowney Democrat House Yea
Cindy Crawford Republican House Yea
Denise Garner Democrat House Yea
Tippi McCullough Democrat House Yea
Jay Richardson Democrat House Yea
Jim Wooten Republican House Yea
Denise Ennett Democrat House Yea
Richard McGrew Republican House Yea
Joy Springer Democrat House Yea
Howard Beaty Republican House Yea
Tony Furman Republican House NV
Kendon Underwood Republican House Yea
David Ray Republican House Yea
John Carr Republican House Yea
Rick McClure Republican House NV
Keith Brooks Republican House NV
Ashley Hudson Democrat House Yea
Jon Milligan Republican House Nay
RJ Hawk Republican House NV
Wade Andrews Republican House Yea
Rebecca Burkes Republican House Yea
Hope Duke Republican House Nay
Zack Gramlich Republican House NV
Mindy McAlindon Republican House Yea
Matt Duffield Republican House Yea
Stetson Painter Republican House Yea
Steve Unger Republican House Yea
Wayne Long Republican House Yea
Scott Richardson Republican House Yea
Brandon Achor Republican House Yea
Jeremiah Moore Republican House Yea
Joey Carr Republican House Yea
Matt Brown Republican House Yea
Shad Pearce Republican House Yea
Chad Puryear Republican House Yea
Ryan Rose Republican House Yea
Bart Schulz Republican House Yea
Trey Steimel Republican House Yea
Tara Shephard Democrat House Yea
Jeremy Wooldridge Republican House Yea
Kendra Moore Republican House Yea
Brit McKenzie Republican House Nay
Steven Walker Republican House Nay
Glenn Barnes Democrat House Yea
Lincoln Barnett Democrat House Yea
Alyssa Brown Republican House Yea
Nick Burkes Republican House Yea
Paul Childress Republican House Yea
James Eaton Republican House Yea
Brad Hall Republican House Yea
Dolly Henley Republican House Yea
Jessie McGruder Democrat House Yea
Jason Nazarenko Republican House Yea
Randy Torres Republican House Yea
Diana Gonzales Worthen Democrat House Yea
Read Full Bill on arkleg.state.ar.us