Stricken language would be deleted from and underlined language would be added to present law. *ANS387* 03/18/2025 11:39:54 AM ANS387 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 SENATE BILL 499 3 4 By: Senators Irvin, J. Dismang, Gilmore, Hester, M. McKee, Stone, Hill, J. Petty, Flippo, B. Davis, J. 5 Boyd, K. Hammer, J. English 6 By: Representative J. Moore 7 8 For An Act To Be Entitled 9 AN ACT TO REPEAL CERTAIN REPORTING REQUIREMENTS FOR 10 THE STATE INSURANCE DEPARTMENT AND THE STATE 11 SECURITIES DEPARTMENT; TO REVISE CERTAIN REPORTING 12 REQUIREMENTS FOR THE STATE INSURANCE DEPARTMENT; AND 13 FOR OTHER PURPOSES. 14 15 16 Subtitle 17 TO REPEAL CERTAIN REPORTING REQUIREMENTS 18 FOR THE STATE INSURANCE DEPARTMENT AND 19 THE STATE SECURITIES DEPARTMENT; AND TO 20 REVISE CERTAIN REPORTING REQUIREMENTS 21 FOR THE STATE INSURANCE DEPARTMENT. 22 23 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 24 25 SECTION 1. Arkansas Code § 23 -42-111 is repealed. 26 23-42-111. Quarterly reports. 27 (a) The State Securities Department shall provide to the Legislative 28 Council, or to the Joint Budget Committee if the General Assembly is in 29 session, on a quarterly basis a report of all funds received or any external 30 fund transactions recognized or required through court orders or settlement 31 agreements. 32 (b) The report required under subsection (a) of this section shall 33 include: 34 (1) The case name of the court order or settlement agreement; 35 (2) The amount of funds received or transaction recognized or 36 SB499 2 03/18/2025 11:39:54 AM ANS387 required by the department for each court order or settlement agreement; 1 (3)(A) A plan for disbursement of the received funds. 2 (B) If funds received from a court order or settlement 3 agreement are expended for any purpose, including investor education and 4 enforcement activities, the report shall itemize specific activities subject 5 to the exclusions provided in § 25 -1-403(1)(B); 6 (4) An itemization of the specific investor education and 7 enforcement activities funded for the department; 8 (5) An explanation of whether the funds received or transactions 9 recognized or required from a court order or settlement agreement are 10 directed to a specific entity, and if so, the department shall provide a 11 summary of input regarding the drafting of the court order or settlement 12 agreement; 13 (6) A report of the rationale for disbursing funds to a specific 14 entity if the department receives funds from a court order or settlement 15 agreement that does not require disbursement of funds to a specific entity; 16 and 17 (7) A report of current balances of all unappropriated fund 18 holdings the department received from a court order or settlement agreement. 19 (c) The department shall provide the reports required under this 20 section no later than the fifteenth day of the month immediately following 21 the end of each quarter. 22 23 SECTION 2. Arkansas Code § 23 -61-112(a), concerning the information 24 required in the annual report of the State Insurance Department, is amended 25 to read as follows: 26 (a) As early in the calendar year as reasonably possible, the 27 Insurance Commissioner annually shall prepare and deliver a report to the 28 Secretary of the Department of Commerce showing, with respect to the 29 preceding calendar year: 30 (1) Names of the authorized insurers transacting insurance in 31 this state, with a summary of their financial statements that the 32 commissioner considers proper; 33 (2) Names of admitted insurers that closed during the year or 34 entered liquidation, a concise statement concerning the cause for each 35 proceeding, and the amount of assets and liabilities as ascertainable; 36 SB499 3 03/18/2025 11:39:54 AM ANS387 (3) The total receipts and expenses of the State Insurance 1 Department for the year; and 2 (4) A summary of the department's activities to investigate and 3 combat health insurance fraud, including without limitation information 4 regarding: 5 (A) Referrals received; 6 (B) Investigations initiated; 7 (C) Investigations completed; and 8 (D) Other material necessary or desirable to evaluate the 9 department's efforts to investigate and combat health insurance fraud; and 10 (5) Other pertinent information and matters the commissioner 11 considers proper. 12 13 SECTION 3. Arkansas Code § 23 -61-116 is repealed. 14 23-61-116. Annual report on health insurance fraud. 15 Annually on or before March 1, the Insurance Commissioner shall submit 16 to the Secretary of the Department of Commerce, the President Pro Tempore of 17 the Senate, the Speaker of the House of Representatives, and the Attorney 18 General a report summarizing the State Insurance Department's activities to 19 investigate and combat health insurance fraud, including without limitation 20 information regarding: 21 (1) Referrals received; 22 (2) Investigations initiated; 23 (3) Investigations completed; and 24 (4) Other material necessary or desirable to evaluate the 25 department's efforts under this section. 26 27 SECTION 4. Arkansas Code § 23 -61-610 is repealed. 28 23-61-610. Annual report. 29 The Administrator of the Risk Management Division shall report annually 30 to the Governor and the Legislative Council on his or her findings and 31 recommendations. 32 33 SECTION 5. Arkansas Code § 23 -61-805(a), concerning reports of the 34 assessment and user fee under the Arkansas Health Insurance Marketplace, is 35 amended to read as follows: 36 SB499 4 03/18/2025 11:39:54 AM ANS387 (a)(1) The General Assembly shall establish a reasonable initial 1 assessment or user fee and reasonable increases or decreases in the amount of 2 future assessments or user fees and penalties and interest charges for 3 nonpayment of an assessment or user fee charged to participating health 4 insurers for the efficient operation of the Arkansas Health Insurance 5 Marketplace. 6 (2) Annually by October 1, the State Insurance Department shall 7 report to the Legislative Council in the manner and format that the 8 Legislative Council requires the recommendations of the department for the 9 initial assessment or user fee and increases or decreases in the amount of 10 future assessments or user fees and penalties and interest charges for 11 nonpayment of an assessment or user fee charged to participating health 12 insurers. 13 (3) Annually by December 1, the Legislative Council shall review 14 the recommendations of the department under subdivision (a)(2) of this 15 section and report to the President Pro Tempore of the Senate and the Speaker 16 of the House of Representatives the recommendations of the Legislative 17 Council for the initial assessment or user fee and future increases or 18 decreases in the amount of assessments or user fees and penalties and 19 interest charges for nonpayment of an assessment or user fee charged to 20 participating health insurers. 21 22 SECTION 6. Arkansas Code § 23 -67-313(b) and (c), concerning the report 23 of the Arkansas Workers' Compensation Insurance Plan and servicing carriers, 24 are amended to read as follows: 25 (b) The commissioner shall review the plan operations to ensure 26 compliance with this act. The commissioner shall review and report to the 27 Legislative Council and the Senate Committee on Insurance and Commerce and 28 the House Committee on Insurance and Commerce by September 1 of each year, 29 with the first report to be submitted no later than September 1, 1997, 30 including, but not limited to, the following information: 31 (1) Competitive selection of the administrator and servicing 32 carriers; 33 (2) Plan operating performance and service in accordance with 34 the intent of this act, including performance reviews of the administrator, 35 servicing carriers, and plan rules; 36 SB499 5 03/18/2025 11:39:54 AM ANS387 (3) Proper authority and independence of the Arkansas office to 1 properly perform and secure prompt, fair, and reasonable service as required 2 by this act; and 3 (4) Coverage provided by the plan in other states, including 4 evidence providing that carriers promptly provide coverage for employees of 5 Arkansas employers working in other states as provided in this act. 6 (c) The commissioner is encouraged to hold public hearings as needed 7 to assist in achieving the objectives of this act and to assist with the 8 review and report provided to the Legislative Council and the Senate 9 Committee on Insurance and Commerce and the House Committee on Insurance and 10 Commerce. 11 12 SECTION 7. Arkansas Code § 23-79-1503(c), concerning the rules and 13 reporting requirements under Wendelyn's Craniofacial Law — Craniofacial 14 Coverage, is amended to read as follows: 15 (c) The department shall submit biannual reports a report to the Chair 16 of the House Committee on Insurance and Commerce and the Chair of the Senate 17 Committee on Insurance and Commerce upon receipt of a request from: 18 (1) A cochair of the House Committee on Insurance and Commerce; 19 or 20 (2) A cochair of the Senate Committee on Insurance and Commerce . 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36