AR
Arkansas Senate Bill SB179

Arkansas 2025 Regular Session

Arkansas Senate Bill SB179 Compare Versions

Only one version of the bill is available at this time.
OldNewDifferences
11 Stricken language would be deleted from and underlined language would be added to present law.
22 *ANS142* 02/03/2025 8:12:24 AM ANS142
33 State of Arkansas 1
44 95th General Assembly A Bill 2
55 Regular Session, 2025 SENATE BILL 179 3
66 4
77 By: Senator J. Boyd 5
88 By: Representative L. Johnson 6
99 7
1010 For An Act To Be Entitled 8
1111 AN ACT TO ESTABLISH THE STRENGTHEN ARKANSAS HOMES 9
1212 ACT; TO CREATE THE STRENGTHEN ARKANSAS HOMES PROGRAM 10
1313 PREMIUM TAX FUND; AND FOR OTHER PURPOSES. 11
1414 12
1515 13
1616 Subtitle 14
1717 TO ESTABLISH THE STRENGTHEN ARKANSAS 15
1818 HOMES ACT; AND TO CREATE THE STRENGTHEN 16
1919 ARKANSAS HOMES PROGRAM PREMIUM TAX FUND. 17
2020 18
2121 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
2222 20
2323 SECTION 1. Arkansas Code § 19 -6-301, concerning special revenues 21
2424 enumerated, is amended to add an additional subdivision to read as follows: 22
2525 (276) Those insurance premium taxes as specified in § 26 -57-610. 23
2626 24
2727 SECTION 2. Arkansas Code Title 19, Chapter 6, Subchapter 8, is amended 25
2828 to add an additional section to read as follows: 26
2929 19-6-845. Strengthen Arkansas Homes Program Premium Tax Fund. 27
3030 (a) There is created on the books of the Treasurer of State, the 28
3131 Auditor of State, and the Chief Fiscal Officer of the State a special revenue 29
3232 fund to be known as the "Strengthen Arkansas Homes Program Premium Tax Fund". 30
3333 (b) The fund shall consist of those special revenues as specified in § 31
3434 19-6-301(276), there to be used for the Strengthen Arkansas Homes Program as 32
3535 set out in § 23-88-601 et seq. 33
3636 (c)(1) The fund shall be administered by and disbursed at the 34
3737 direction of the Insurance Commissioner. 35
3838 (2) Moneys shall not be appropriated from the fund for any 36 SB179
3939
4040 2 02/03/2025 8:12:24 AM ANS142
4141 purpose except for the Strengthen Arkansas Homes Program. 1
4242 (d) All moneys deposited into the fund shall not be subject to a 2
4343 deduction, tax, levy, or other type of assessment. 3
4444 (e) Moneys remaining in the fund at the end of each fiscal year shall 4
4545 carry forward and be made available for the purposes stated in this section 5
4646 in the next fiscal year. 6
4747 7
4848 SECTION 3. Arkansas Code § 23 -75-119(a), concerning the premium tax on 8
4949 hospital and medical services corporations, is amended to read as follows: 9
5050 (a)(1) The officers of every foreign or alien corporation, and the 10
5151 officers of every domestic corporation, transacting business under this 11
5252 chapter shall, at the time of making its annual statement, file with the 12
5353 Insurance Commissioner a sworn statement of its net direct written premiums 13
5454 for the year ending December 31 next preceding from subscribers residing in 14
5555 this state and shall pay into the State Treasury a premium tax of two and 15
5656 one-half percent (2.5%) on its net direct written premiums in compliance with 16
5757 the provisions of § 26 -57-601 et seq. as a tax for the privilege of 17
5858 transacting business in this state. 18
5959 (2) The total premium tax levied under subdivision (a)(1) of 19
6060 this section shall be levied in two (2) parts as follows: 20
6161 (A) After the distribution of the amount stated under 21
6262 subdivision (a)(1) of this section, twelve million dollars ($12,000,000), or 22
6363 as much as remains available for a total of twelve million dollars 23
6464 ($12,000,000), shall be deposited into the Strengthen Arkansas Homes Program 24
6565 Premium Tax Fund to be used for the purposes stated under § 23 -88-610; and 25
6666 (B) The remainder of revenues shall be deposited into the 26
6767 State Treasury as general revenues. 27
6868 28
6969 SECTION 4. Arkansas Code § 23 -76-131(c), concerning the distribution 29
7070 of the tax revenue generated by the tax on premiums paid to health 30
7171 maintenance organizations, is amended to read as follows: 31
7272 (c)(1) The premium tax levied under this section shall be levied in 32
7373 two (2) parts as follows: 33
7474 (A) After the distribution of the amount computed under 34
7575 subdivision (a)(1)(B) of this section, twelve million dollars ($12,000,000), 35
7676 or as much as remains available for a total of twelve million dollars 36 SB179
7777
7878 3 02/03/2025 8:12:24 AM ANS142
7979 ($12,000,000), shall be deposited into the Strengthen Arkansas Homes Program 1
8080 Premium Tax Fund to be used for the purposes stated under § 23 -88-610; and 2
8181 (B) The remainder of revenues shall be deposited into the 3
8282 State Treasury as general revenues. 4
8383 (2) The commissioner shall deposit all taxes collected under 5
8484 this section into the State Treasury as general revenues as follows: 6
8585 (A) After the distribution of the amount stated under 7
8686 subdivision (a)(1)(B) of this section, twelve million dollars ($12,000,000), 8
8787 or as much as remains available for a total of twelve million dollars 9
8888 ($12,000,000), shall be deposited into the fund to be used for the purposes 10
8989 stated under § 23-88-610; and 11
9090 (B) The remainder of revenues shall be deposited into the 12
9191 State Treasury as general revenues . 13
9292 14
9393 SECTION 5. Arkansas Code Title 23, Chapter 88, is amended to add an 15
9494 additional subchapter to read as follows: 16
9595 17
9696 Subchapter 6 — Strengthen Arkansas Homes Act 18
9797 19
9898 23-88-601. Title. 20
9999 This subchapter shall be known and may be cited as the "Strengthen 21
100100 Arkansas Homes Act". 22
101101 23
102102 23-88-602. Definitions. 24
103103 As used in this subchapter: 25
104104 (1) "Certificate of compliance" means a certificate of 26
105105 compliance with the most recent version of an applicable FORTIFIED Home 27
106106 construction standard from the Insurance Institute for Business & Home Safety 28
107107 or a successor entity; 29
108108 (2) "Construct" means to build, equip, install, or otherwise 30
109109 develop insurable property; 31
110110 (3) "Cost to upgrade a single -family dwelling" means the cost 32
111111 required to upgrade a single -family dwelling to meet or exceed the 33
112112 construction standards required for the dwelling to comply with the most 34
113113 recent version of an applicable FORTIFIED Home construction standards 35
114114 published by the Insurance Institute for Business & Home Safety or a 36 SB179
115115
116116 4 02/03/2025 8:12:24 AM ANS142
117117 successor entity; 1
118118 (4)(A) "Insurable dwelling" means a single -family dwelling that 2
119119 is a detached structure and is located on, or affixed to, residential real 3
120120 estate. 4
121121 (B) "Insurable dwelling" does not include manufactured 5
122122 homes, mobile homes, or condominiums; 6
123123 (5) "Non-FORTIFIED dwelling" means a dwelling that does not 7
124124 comply with the most recent version of an applicable FORTIFIED Home 8
125125 construction standards published by the Insurance Institute for Business & 9
126126 Home Safety or a successor entity; and 10
127127 (6)(A) "Retrofitting" is the process of modifying an existing 11
128128 building or structure after it has been constructed and occupied. 12
129129 (B) "Retrofitting" includes retrofit. 13
130130 14
131131 23-88-603. Strengthen Arkansas Homes Program. 15
132132 (a) There is established within the State Insurance Department the 16
133133 Strengthen Arkansas Homes Program. 17
134134 (b) The program is created for the purpose of providing financial 18
135135 grants to real property owners and nonprofit organizations to assist and 19
136136 promote the mitigation of losses to insurable dwellings due to catastrophic 20
137137 wind events, including hail, according to FORTIFIED Home construction 21
138138 standards published by the Insurance Institute for Business & Home Safety or 22
139139 a successor entity. 23
140140 (c) This subchapter does not create an entitlement for a property 24
141141 owner or obligate the state to fund the inspection, construction, or 25
142142 retrofitting of residential property in this state. 26
143143 (d) The department may apply for financial grants to construct or 27
144144 retrofit insurable dwellings to resist loss due to a tornado, other 28
145145 catastrophic windstorm events, or hail and deposit the funds into the 29
146146 Strengthen Arkansas Homes Program Premium Tax Fund. 30
147147 (e)(1) The department may make grants or funding available to a 31
148148 nonprofit entity for a project to construct or retrofit an insurable dwelling 32
149149 to resist loss due to a tornado, other catastrophic windstorm events, or hail 33
150150 if the grant or funding to a nonprofit entity is allowable under grant or 34
151151 funding rules, requirements, guidelines, or criteria. 35
152152 (2) A nonprofit entity under subdivision (e)(1) of this section 36 SB179
153153
154154 5 02/03/2025 8:12:24 AM ANS142
155155 shall: 1
156156 (A) Agree to administer the grants or funding as the 2
157157 program would be required to administer grants or funding; and 3
158158 (B) Provide documentation to the department in a timely 4
159159 manner as requested by the department. 5
160160 (f)(1) Loss mitigation projects shall be based upon the securing of 6
161161 required local permits and applicable inspections in keeping with local 7
162162 building codes and the Insurance Institute for Business & Home Safety's 8
163163 FORTIFIED Home construction standards as adopted by rule by the Insurance 9
164164 Commissioner. 10
165165 (2) A loss mitigation project is subject to random reinspection 11
166166 of all projects under the program. 12
167167 13
168168 23-88-604. Eligibility. 14
169169 (a)(1) The owner of an insurable dwelling is eligible to apply for a 15
170170 grant under the Strengthen Arkansas Homes Program if the owner of an 16
171171 insurable dwelling meets the eligibility requirements as stated by the State 17
172172 Insurance Department for each grant type, either FORTIFIED Roof or FORTIFIED 18
173173 Silver. 19
174174 (2) The eligibility requirements under subdivision (a)(1) of 20
175175 this section shall include without limitation: 21
176176 (A) That the residential property owner shall own an 22
177177 insurable dwelling that has been granted a homestead exemption; 23
178178 (B) That the owner of the insurable dwelling shall claim 24
179179 his or her primary residence in a county where grants are being approved; 25
180180 (C) That an insurable dwelling to be constructed or 26
181181 retrofitted shall be an owner -occupied single-family primary residence; 27
182182 (D)(i) That the insurable dwelling shall be in good repair 28
183183 unless damaged by a tornado, other catastrophic windstorm events, or hail, 29
184184 and the insurable dwelling owner is eligible to receive a grant under the 30
185185 Strengthen Arkansas Homes Act. 31
186186 (ii) The home repair shall not be part of an 32
187187 insurance claim; 33
188188 (E)(i) That an evaluator certified by the Insurance 34
189189 Institute for Business & Home Safety shall: 35
190190 (a) Prequalify the insurable dwelling as 36 SB179
191191
192192 6 02/03/2025 8:12:24 AM ANS142
193193 suitable for construction or retrofitting under the Strengthen Arkansas Homes 1
194194 Program; and 2
195195 (b) Identify improvements required to achieve 3
196196 an Insurance Institute for Business & Home Safety FORTIFIED Roof, FORTIFIED 4
197197 Silver, or successor designation, or a similar standard approved by rule by 5
198198 the Insurance Commissioner. 6
199199 (ii) An insurable dwelling owner shall: 7
200200 (a) Select the evaluator under subdivision 8
201201 (a)(2)(E)(i) of this section from a list provided by the department under the 9
202202 Strengthen Arkansas Homes Program; and 10
203203 (b) Pay the evaluator's fee out -of-pocket; and 11
204204 (F) That the insurable dwelling owner shall: 12
205205 (i) Obtain bids from at least three (3) contractors 13
206206 certified by the Insurance Institute for Business & Home Safety and approved 14
207207 under the Strengthen Arkansas Homes Program unless three (3) contractors 15
208208 certified by the Insurance Institute for Business & Home Safety are not 16
209209 available to provide bids in a geographic area where grants are offered, then 17
210210 a bid equivalent to the number of available contractors certified by the 18
211211 Insurance Institute for Business & Home Safety is acceptable; 19
212212 (ii) Construct or retrofit the insurable dwelling to 20
213213 the Insurance Institute for Business & Home Safety FORTIFIED Roof or 21
214214 FORTIFIED Silver designation, or successor designation, or a similar standard 22
215215 approved by rule by the commissioner, which shall include a hail supplement; 23
216216 (iii)(a) Provide proof of an in -force policy 24
217217 providing wind insurance on the insurable dwelling. 25
218218 (b) If the insurable dwelling owner does not 26
219219 have wind insurance at the time of the grant application, he or she shall 27
220220 provide proof of wind insurance coverage within thirty (30) days from the 28
221221 time the insurable dwelling receives certification from the Insurance 29
222222 Institute for Business & Home Safety; and 30
223223 (iv)(a) If the insurable dwelling is in a Special 31
224224 Flood Hazard Area, provide proof of an in -force flood insurance policy. 32
225225 (b) The flood insurance policy under 33
226226 subdivision (a)(2)(F)(iv)(a) of this section may be from the National Flood 34
227227 Insurance Program or a private carrier. 35
228228 (b) An applicant for a Strengthen Arkansas Homes Program grant under 36 SB179
229229
230230 7 02/03/2025 8:12:24 AM ANS142
231231 this subchapter shall file an application with the department in the form and 1
232232 manner prescribed by the commissioner. 2
233233 (c) Documents, materials, and other information submitted to the 3
234234 department by the owner of an insurable dwelling or an insurance company in 4
235235 support of a Strengthen Arkansas Homes Program grant application shall be 5
236236 confidential and not subject to the Freedom of Information Act of 1967, § 25 -6
237237 19-101 et seq. 7
238238 (d) Documents, materials, and other information submitted to the 8
239239 department by the owner of an insurable dwelling or an insurance company 9
240240 shall not be: 10
241241 (1) Subject to a public records request under the Freedom of 11
242242 Information Act of 1967, § 25 -19-101 et seq.; 12
243243 (2) Subject to subpoena; 13
244244 (3) Subject to discovery; or 14
245245 (4) Admissible in evidence in a private civil action. 15
246246 (e) The owner of insurable dwelling shall use Strengthen Arkansas 16
247247 Homes Program grant funds to retrofit an insurable dwelling to resist loss 17
248248 due to a tornado, other catastrophic windstorm events, or hail. 18
249249 (f)(1) A loss mitigation project shall be completed within three (3) 19
250250 months of the date the applicant receives notice of the Strengthen Arkansas 20
251251 Homes Program grant approval. 21
252252 (2) Failure to complete the project in the time allotted under 22
253253 subdivision (f)(1) of this section may result in forfeiture of the Strengthen 23
254254 Arkansas Homes Program grant. 24
255255 (g)(1) Strengthen Arkansas Homes Program grant funds shall only be 25
256256 paid once a certificate has been issued for the Insurance Institute for 26
257257 Business & Home Safety FORTIFIED Roof or FORTIFIED Silver designation, or 27
258258 successor designation, as approved by the commissioner. 28
259259 (2) The Strengthen Arkansas Homes Program grant funds shall be 29
260260 paid by the commissioner, on behalf of the owner of the insurable dwelling, 30
261261 directly to the contractor who performed the loss mitigation work. 31
262262 (h)(1) The department shall accept Strengthen Arkansas Homes Program 32
263263 grant applications on a first -come, first-served basis. 33
264264 (2) An application submitted under subdivision (h)(1) of this 34
265265 section shall be given priority if the applicant: 35
266266 (A) Lives in a location that, based on historical data, 36 SB179
267267
268268 8 02/03/2025 8:12:24 AM ANS142
269269 has a higher susceptibility to tornadoes, other catastrophic windstorm 1
270270 events, or hail; or 2
271271 (B) Meets any other criteria the commissioner determines 3
272272 is appropriate to meet the purpose of the Strengthen Arkansas Homes Program. 4
273273 (i) An entity providing funds to the Strengthen Arkansas Homes Program 5
274274 shall be permitted to establish additional rules and guidelines under which 6
275275 those funds may be used if the rules and guidelines do not violate any state 7
276276 or federal law or department rules. 8
277277 (j) The department may conduct a random audit of funds, records, and 9
278278 properties to detect fraud or for any other reason. 10
279279 11
280280 23-88-605. Contractor requirements. 12
281281 (a) Under the Strengthen Arkansas Homes Program, the owner of an 13
282282 insurable dwelling shall hire a contractor certified by the Insurance 14
283283 Institute for Business & Home Safety who can perform work that satisfies the 15
284284 standards under this subchapter and the rules adopted by the Insurance 16
285285 Commissioner. 17
286286 (b) The State Insurance Department shall not endorse or otherwise 18
287287 provide preferential treatment to a contractor. 19
288288 (c)(1) The owner of an insurable dwelling is responsible for an amount 20
289289 owed to a contractor that exceeds awarded program grant funds. 21
290290 (2) The amount owed to a contractor that exceeds the awarded 22
291291 program grant funds shall be disclosed to the owner, reflected on the bid 23
292292 sheet, and approved by the owner before work begins. 24
293293 (3) A contractor shall not bill the owner for additional 25
294294 expenses after retrofit work is completed. 26
295295 (d) To be eligible to work on a project funded by the program as a 27
296296 contractor, a contractor shall: 28
297297 (1) Meet the program requirements under subsection (e) of this 29
298298 section; and 30
299299 (2) Maintain a current copy of all applicable certificates, 31
300300 licenses, and proof of insurance coverages with the program office. 32
301301 (e) The program requirements for a contractor to participate in the 33
302302 program include without limitation: 34
303303 (1) That the contractor holds a valid and active contractor's 35
304304 license or registration in Arkansas and is free from all disciplinary action 36 SB179
305305
306306 9 02/03/2025 8:12:24 AM ANS142
307307 by the applicable licensing board; 1
308308 (2) That the contractor is registered to do business in Arkansas 2
309309 with the Secretary of State; 3
310310 (3) That the contractor has an in -force general liability policy 4
311311 with at least five hundred thousand dollars ($500,000) in liability coverage; 5
312312 (4) That the contractor has workers' compensation and employer's 6
313313 liability insurance as required by Arkansas law; 7
314314 (5)(A) That the contractor holds an active Insurance Institute 8
315315 for Business & Home Safety FORTIFIED Roof contractor certification or 9
316316 FORTIFIED professional certification. 10
317317 (B) The contractor is responsible for paying all fees 11
318318 associated with certification and training; 12
319319 (6) That the contractor has successfully registered as a 13
320320 supplier or payee with the Department of Finance and Administration; 14
321321 (7) That the contractor shall maintain accurate contact 15
322322 information with the State Insurance Department and notify the State 16
323323 Insurance Department within ten (10) days of any changes in his or her 17
324324 contact information; 18
325325 (8) That the contractor agrees to follow the program's 19
326326 procedures and rules as promulgated by the commissioner; 20
327327 (9) That the contractor shall not have a financial interest in a 21
328328 project funded by the program for which the contractor performs work other 22
329329 than receiving payment on behalf of the owner of an insurable dwelling from 23
330330 the program; 24
331331 (10) That the contractor shall report to the program any 25
332332 potential conflict of interest before work commences; and 26
333333 (11) That the contractor shall not be the evaluator for a 27
334334 project funded under the program. 28
335335 29
336336 23-88-606. Evaluator requirements. 30
337337 (a) To be eligible to work on a project funded by the Strengthen 31
338338 Arkansas Homes Program as an evaluator, an evaluator shall: 32
339339 (1) Meet the program requirements under subsection (b) of this 33
340340 section; and 34
341341 (2) Maintain a current copy of all applicable certificates, 35
342342 licenses, and proof of insurance coverage with the program office. 36 SB179
343343
344344 10 02/03/2025 8:12:24 AM ANS142
345345 (b) The program requirements for a contractor to participate in the 1
346346 program include: 2
347347 (1)(A) That the evaluator is in good standing with the Insurance 3
348348 Institute for Business & Home Safety and maintains an active Insurance 4
349349 Institute for Business & Home Safety certification as a FORTIFIED Home 5
350350 evaluator, or other certification under a successor entity of the Insurance 6
351351 Institute for Business & Home Safety. 7
352352 (B) The evaluator shall pay all fees associated with 8
353353 certification and training; 9
354354 (2) If applicable, that the evaluator is registered to do 10
355355 business in Arkansas with the Secretary of State; 11
356356 (3) That the evaluator agrees to follow the program's procedures 12
357357 and rules as promulgated by the Insurance Commissioner; 13
358358 (4) That the evaluator shall maintain accurate contact 14
359359 information with the State Insurance Department and notify the department 15
360360 within ten (10) days of any changes in his or her contact information; 16
361361 (5) That the evaluator shall not have a financial interest in 17
362362 any project that the evaluator inspects for designation purposes for the 18
363363 program; 19
364364 (6) That the evaluator shall not be a contractor or supplier of 20
365365 any materials, products, or systems installed in a project the evaluator 21
366366 inspects for designation purposes for the program; 22
367367 (7) That the evaluator shall not be the sales agent for a 23
368368 project being designated for the program; and 24
369369 (8) That the evaluator agrees to inform the department of a 25
370370 potential conflict of interest. 26
371371 27
372372 23-88-607. Premium discount. 28
373373 (a) An insurance company that writes property insurance for wind or 29
374374 hail coverage of any property located in this state that has been certified 30
375375 compliant with the most recent version of any applicable FORTIFIED Home 31
376376 construction standards published by the Insurance Institute for Business & 32
377377 Home Safety or a successor entity: 33
378378 (1) Shall provide a premium discount or rate reduction on the 34
379379 coverage if the discount or reduction is actuarially justified; or 35
380380 (2) May provide: 36 SB179
381381
382382 11 02/03/2025 8:12:24 AM ANS142
383383 (A) A premium discount or rate reduction on the coverage 1
384384 according to any standard discount amounts, targets, or benchmarks 2
385385 established under subsection (e) of this section; and 3
386386 (B) Any other adjustment on the coverage. 4
387387 (b) A premium discount, rate reduction, or other adjustment provided 5
388388 under subsection (a) of this section shall be subject to the rate filing and 6
389389 other applicable regulatory requirements, including without limitation § 23 -7
390390 67-201 et seq. 8
391391 (c) An insurance company that offers a premium discount, rate 9
392392 reduction, or other adjustment under subdivision (a)(1) of this section shall 10
393393 provide the discount, reduction, or adjustment on the coverage of an 11
394394 insurable dwelling located in this state if the insurance company receives a 12
395395 copy of the certificate of compliance for the real property. 13
396396 (d) An insurance company shall receive a copy of the certificate of 14
397397 compliance in order to provide a premium discount, rate reduction, or other 15
398398 adjustment under subdivision (a)(1) of this section. 16
399399 (e)(1) The Insurance Commissioner may promulgate rules that establish 17
400400 standard discount amounts, targets, or benchmarks for the coverage of any 18
401401 real property located in this state that has been certified compliant with 19
402402 the most recent version of any applicable FORTIFIED Home construction 20
403403 standards published by the Insurance Institute for Business & Home Safety or 21
404404 a successor entity. 22
405405 (2) Any standard discount amounts, targets, or benchmarks 23
406406 promulgated by the commissioner shall be: 24
407407 (A) Optional; and 25
408408 (B) Primarily for the benefit of insurance companies that 26
409409 are unable to obtain actuarially valid data to provide a premium discount or 27
410410 rate reduction under subdivision (a)(1) of this section due to inadequate 28
411411 resources or experience. 29
412412 30
413413 23-88-608. Policy endorsement for roof loss or repairs. 31
414414 An insurance company writing property insurance for personal risks that 32
415415 provides coverage of a single -family dwelling located in this state that is a 33
416416 non-FORTIFIED dwelling shall offer an optional rider, endorsement, or 34
417417 supplemental policy provision that provides the insured a right to receive 35
418418 claim payments for the cost to upgrade a single -family dwelling for a claim 36 SB179
419419
420420 12 02/03/2025 8:12:24 AM ANS142
421421 that: 1
422422 (1) Is covered under the insurance policy or contract; and 2
423423 (2) Requires replacement of the covered insured dwelling’s roof 3
424424 as defined by the insurance policy or contract. 4
425425 5
426426 23-88-609. Insurer requirements. 6
427427 A property insurer subject to §§ 23 -88-607 and 23-88-608 shall: 7
428428 (1) Make any filings required under §§ 23 -88-607 and 23-88-608; 8
429429 (2) Comply with any other regulatory requirements required under 9
430430 § 23-67-201 et seq.; and 10
431431 (3) Comply with any other laws that are necessary to ensure 11
432432 that: 12
433433 (A) Any premium discount or rate reduction required under 13
434434 § 23-88-607 is offered on an insurance policy or contract issued or renewed 14
435435 on and after July 1, 2026; and 15
436436 (B) The optional rider, endorsement, or supplemental 16
437437 policy provision required under § 23 -88-608 is offered on an insurance policy 17
438438 or contract issued or renewed on and after July 1, 2026. 18
439439 19
440440 23-88-610. Use of insurance premium taxes. 20
441441 (a) Insurance premium taxes shall be used to fund the Strengthen 21
442442 Arkansas Homes Program as follows: 22
443443 (1) Ten million dollars ($10,000,000) to fund the grant program; 23
444444 and 24
445445 (2) Two million dollars ($2,000,000) to defray the 25
446446 administrative costs to implement and administer the program. 26
447447 (b) Disbursements shall be made on forms prescribed by the Insurance 27
448448 Commissioner. 28
449449 (c) Any excess or surplus insurance premium taxes that are not 29
450450 expended or allocated for expenditure under this subchapter within each 30
451451 twelve-month period shall be remitted to general revenues. 31
452452 32
453453 23-88-611. Rules. 33
454454 (a) The Insurance Commissioner shall promulgate rules to implement and 34
455455 administer this subchapter. 35
456456 (b) The rules promulgated under subsection (a) of this section shall 36 SB179
457457
458458 13 02/03/2025 8:12:24 AM ANS142
459459 include eligibility requirements necessary for the proper administration of 1
460460 this subchapter and eligibility requirements under any instructions or 2
461461 requirements on grants or funds received by the commissioner for the 3
462462 Strengthen Arkansas Homes Program. 4
463463 5
464464 SECTION 6. Arkansas Code § 26 -57-603(d), concerning insurance premium 6
465465 tax reports, is amended to read as follows: 7
466466 (d)(1) Each authorized, unauthorized, or formerly authorized domestic, 8
467467 foreign, and alien insurer shall pay to the Treasurer of State through the 9
468468 commissioner, as a tax imposed for the privilege of transacting business in 10
469469 this state, a tax upon the net premiums and net considerations, except as 11
470470 provided in § 26-57-605. 12
471471 (2)(A) The tax shall be computed thereon at a rate of two and 13
472472 one-half percent (2½%). 14
473473 (B) For entities subject to § 26 -57-604(a), the premium 15
474474 tax levied under this section shall be levied in two (2) parts as follows: 16
475475 (i) Twelve million dollars ($12,000,000) shall be 17
476476 deposited into the Strengthen Arkansas Homes Program Premium Tax Fund; and 18
477477 (ii) The remainder of revenues shall be deposited 19
478478 into the State Treasury as general revenues . 20
479479 (3) The premiums written shall be reported at such times and in 21
480480 such form and context as prescribed by the commissioner, and the taxes shall 22
481481 be paid on a quarterly estimate basis as prescribed by the commissioner and 23
482482 shall be reconciled annually at the time of filing the annual report required 24
483483 in subsections (a)-(c) of this section. 25
484484 26
485485 SECTION 7. Arkansas Code § 26 -57-610(b)(3), concerning the disposition 27
486486 of insurance premium tax revenues, is amended to read as follows: 28
487487 (3)(A) The taxes collected under subdivision (b)(3)(B) of this 29
488488 section and §§ 26-57-604 and 26-57-605 shall be classified as general 30
489489 revenues, and the net amount of taxes collected under §§ 26 -57-604 and 26-57-31
490490 605 shall be credited to the various State Treasury funds participating in 32
491491 general revenues in the respective proportions to each as provided by and to 33
492492 be used for the respective purposes set forth in the Revenue Stabilization 34
493493 Law, § 19-5-101 et seq.; and 35
494494 (B) The revenues from the part of the premium tax 36 SB179
495495
496496 14 02/03/2025 8:12:24 AM ANS142
497497 identified in § 26-57-603(d)(2)(B)(i) shall be deposited in the Strengthen 1
498498 Arkansas Homes Program Premium Tax Fund. 2
499499 3
500500 SECTION 8. EFFECTIVE DATE. This act is effective on and after January 4
501501 1, 2026. 5
502502 6
503503 7
504504 8
505505 9
506506 10
507507 11
508508 12
509509 13
510510 14
511511 15
512512 16
513513 17
514514 18
515515 19
516516 20
517517 21
518518 22
519519 23
520520 24
521521 25
522522 26
523523 27
524524 28
525525 29
526526 30
527527 31
528528 32
529529 33
530530 34
531531 35
532532 36