Latest news with #ArkansasLegislativeCouncil
Yahoo
2 days ago
- Politics
- Yahoo
Arkansas lawmakers give initial approval to new state insurance captives rate structure
Arkansas Gov. Sarah Huckabee Sanders tours tornado-damaged Wynne High School on April 2, 2023. (Randall Lee/Arkansas Governor's Office) A legislative committee on Monday granted preliminary permission for officials to move forward with proposed rates for Arkansas' new state property insurance program, the result of nearly two years of work aimed at developing a plan to control rising insurance premiums for schools. Following the recommendation of consultants to create the State Captive Insurance Program, an insurance company owned by the state, lawmakers this year passed Act 560 and Act 779 and approved contracts with vendors to run the self-insurance program. Under the newly approved legislation, the captive will be formed by July 1 and apply to buildings and property owned by a public school, state-supported institution of higher education or the state. During the Arkansas Legislative Council's Executive Subcommittee meeting Monday, Crossett Republican and panel chair Sen. Ben Gilmore recognized everyone who has been involved with forming the captive, which 'has been quite the process.' 'It's important that we acknowledge where we started and where we are now, and this is coming to an end…what we did is something we should acknowledge is very big with the State Captive Insurance Program,' Gilmore said. 'So we are on to the next step with that, and I appreciate your involvement, and we'll continue to work and make this successful.' Insurance premiums have been increasing nationwide due to more frequent natural disasters, additional legal liability from more lawsuits and the growing frequency of cybercrimes, according to Education Week. Arkansas firm recommends plan for controlling schools' increasing insurance rates The issue came into focus for Arkansas in July 2023 when Gov. Sarah Huckabee Sanders announced the state would help school districts cover the cost of rising insurance premiums. State lawmakers approved a request from the Arkansas Insurance Department to transfer $10.8 million from the state's restricted reserve account to offset the cost of increased premiums. The funding was split three ways — $6.3 million for the 170 districts in the Arkansas School Boards Association-managed program, $4.46 million for the 68 districts in the Arkansas Public School Insurance Trust (which is managed by the Insurance Department), and nearly $118,000 for the Bentonville School District, which procured insurance directly through the open market. Kyle Hales, a principal consulting actuary at Perr & Knight, told the committee Monday that the total cost of premiums for the three agencies approximately tripled between 2021 and 2024 insurance renewals. J.R. Bizzell, senior vice president in Stephens Insurance's risk management group, said the intent of the captive is to 'improve efficiencies with purchasing reinsurance or excess property insurance,' which is what the Little Rock-based firm is primarily helping obtain. 'There's going to be a centralized claims and underwriting component, as well as overall it should help stabilize long-term insurance costs for all of the districts, all the agencies and all the participants of this program,' Bizzell said. For the first year of the captive, Stephens recommends a flat rate for all participants. Premiums are calculated by multiplying the rate by building values, Bizzell said. All schools should have a flat rate, he said. If they change their value due to an assessment, or by adding or removing a building, 'they will experience some level of premium change, but it should be modest in nature,' he said. Stephens also recommends that participants carry a maintenance deductible that's below the captive, Bizzell said. The deductible structure would be changed to a minimum of $25,000 per occurrence, per participant, and $50,000 per occurrence if their total insured values (i.e. asset values) are over $100 million. For state agencies, the recommendation is to move to a $250,000 flat deductible for the first year, he said. The rate and deductible structure for year two is continuing to be evaluated, so Stephens made no recommendation 'outside of there is an expectation that deductibles need to continue to be rightsided and that detail will come in the future,' Bizzell said. Stephens has been coordinating with the Legislature as well as the newly created Office of Property Risk, which will be managing the program after July 1, Bizzell said. In the coming weeks, all participants will receive a summary of their expected premium and deductible, he said. The subcommittee authorized Stephens to move forward with its proposed rate and deductible structure and for the Arkansas Legislative Council's co-chairs to approve that direction by emergency action. The new rates and deductibles will be effective for the 2025-2026 academic year, if they receive final approval from the Arkansas State Board of Finance and ALC, Bureau of Legislative Research Director Marty Garrity told the Advocate. They're scheduled to meet on June 12 and June 20, respectively. SUPPORT: YOU MAKE OUR WORK POSSIBLE
Axios
21-05-2025
- Business
- Axios
Arkansas launches community grant program
The Arkansas Economic Development Commission will administer a new Community Assistance Grant Program to help reduce poverty and promote self-sufficiency. Why it matters: The program is designed to fill funding gaps for "projects that fight childhood food insecurity, address unemployment, promote education, offer resources for victims of crime, and provide housing, nutrition or emergency services to promote self-sufficiency," according to a news release Monday announcing the effort. State of play: Gov. Sarah Huckabee Sanders will ask the Arkansas Legislative Council for $15 million to fund it, but it's not yet listed on the council's agenda. Eligible community-based nonprofits will be able to apply for up to $1.5 million per year. Yes, but: Applicants will be required to match grant awards with cash, in-kind labor or in-kind land. What they're saying:"If we're going to help every corner of our state thrive, then the effort is going to come from the bottom up – not just from the top down," Sanders said in the news release.
Yahoo
19-05-2025
- Business
- Yahoo
Arkansas Gov. Sarah Huckabee Sanders initiates Community Assistance Grant Program
Video: Gov. Sanders, Arkansas Office of Skills Development hand out over $20 million in grants LITTLE ROCK, Ark. – Arkansas Gov. Sarah Huckabee Sanders announced on Monday that her office was initiating a program to fill funding gaps in the state. The announcement stated the $15 million program would provide Community Assistance Grants for projects that reduce poverty, promote self-sufficiency and revitalize communities. Sanders' office is working with the Arkansas Economic Development Commission to develop and administer the program. Gov. Sanders vetoes two bills on last day of legislative session The governor's office is seeking the Arkansas Legislative Council's approval of the program's required $15 million. Officials said that under the program, community-based nonprofits and cities will be able to apply for up to $1.5 million grants per fiscal year to support quality of life. Food banks and foster care support were among the examples of programs the grants would support. Applicants will be required to match grant awards with cash, in-kind labor, or in-kind land. Match amount determination is on a case-by-case basis during the application review process. Arkansas Gov. Sarah Huckabee Sanders announces plan to remove sugary foods from SNAP The application period will be from May 19 through July 31, and funding award announcements are expected in early Fall 2025. 'If we're going to help every corner of our state thrive, then the effort is going to come from the bottom up—not just from the top down,' the governor said. 'The goal of the Community Assistance Grant program is to fund programs that are making a real difference in Arkansans' lives.' Arkansas Gov. Sarah Huckabee Sanders signs bill blocking PBM ownership of pharmacies into law Additional information on the program is available at the Arkansas Economic Development Commission's website. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
02-04-2025
- Politics
- Yahoo
Prison appropriation bill stalls in Arkansas Senate
Sen. Jonathan Dismang, R-Searcy, presents Senate Bill 307 to the Arkansas Senate on March 5, 2025. (Antoinette Grajeda/Arkansas Advocate) The Arkansas Senate on Tuesday rejected a $750 million appropriation bill to support construction of a 3,000-bed prison in Franklin County. The bill's failure marked the latest hurdle in constructing a prison in the rural western Arkansas county, which supporters, including the governor, have said is needed to alleviate overcrowding in county jails. Sen. Jonathan Dismang, a Searcy Republican and lead sponsor of Senate Bill 354, assured his colleagues they would be involved throughout the process because the executive branch will have to submit funding requests for different phases of construction that will require approval from the Arkansas Legislative Council before money can be spent. Work is underway on an accountability plan with the Department of Corrections to ensure lawmakers are 'tracking, monitoring and understanding the process and the progress of the prison construction,' Dismang said. 'I understand that the members want to be engaged in this process as it moves it forward regardless of what happens with this appropriation, and you're going to have the ability to do that,' he said. The Franklin County prison has been controversial since state and local officials and community members said they were blindsided when Gov. Sarah Huckabee Sanders in late October announced the state's $2.95 million purchase of 815 acres near Charleston for the project. In the months since, elected officials and local residents have continued to speak out against the prison. Officials last month issued a preliminary cost estimate of $825 million. The Legislature previously set aside $330 million for the proposed penitentiary, adding to another $75 million that had been set aside during former Gov. Asa Hutchinson's administration. Arkansas lawmakers advance $750 million appropriation bill for prison construction Senate President Pro Tempore Sen. Bart Hester, R-Cave Springs, spoke in favor of SB 354 Tuesday. From the Senate floor, he recounted the story of Shawna Cash, who was arrested and released multiple times, including in Washington County where he said she was released in May 2021 because there was no room. Former Washington County Prosecutor Matt Durrett told the Arkansas-Democrat Gazette that COVID-19 pandemic precautions explained Cash's release because it was common to release more inmates than usual to reduce populations and the risk of transmitting the virus. Cash was accused of striking and killing a Pea Ridge police officer Kevin Apple with her vehicle in June 2021. A jury convicted Cash of capital murder and sentenced her to life in prison without parole last year. 'There's many Shawna Cashes in every one of our districts right now,' Hester said. 'They should be in prison, but there is no room…we've got to have room, and I am begging you to not have something horrible happen in your district when we could have made a difference today.' Sen. John Payton, R-Wilburn, who said he supports expanding prison capacity, spoke against the bill Tuesday, echoing his concerns from last month's Joint Budget Committee meeting that there isn't a large enough available workforce to support a large prison in that part of the state. When the governor began pushing for a prison after taking office in 2023, Payton said, there was 'a pretty good dustup' between Sanders and the corrections board, whose members said they could not safely expand bed capacity because of a lack of staff. 'I understand it's an appropriation and it's not funding, but it's a bad business decision,' Payton said. 'And I'm not going to be responsible a year or two years from now when we spend three-quarters of a billion dollars, we've got the most beautiful, up-to-date, modern facility, we came in under budget and nobody to work there.' Dismang said there are 'other pieces to this puzzle,' specifically noting the governor's overhaul of the state employee pay plan, which the Senate advanced Tuesday, 'contemplates significant increases in pay for those working in our prison system.' The argument did not sway Payton, who voted against SB 354 along with fellow Republicans Ron Caldwell, Jimmy Hickey, Ricky Hill, Bryan King, Clint Penzo, Terry Rice and Gary Stubblefield, and Democrats Greg Leding and Clarke Tucker. The bill garnered 19 votes in support, but failed because appropriation bills require 27 votes to advance out of the Senate. Dismang could bring the bill back for consideration because there is no limit to how many times lawmakers can vote on an appropriation bill. There is a deadline for the end of the legislative session, however, which lawmakers anticipate will be April 16. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
11-02-2025
- Business
- Yahoo
Arkansas pharmacy bill heads to governor's desk, pharmacy freedom of choice bill enters legislature
LITTLE ROCK, Ark. – The 95th General Assembly saw activity on pharmacy bills on Monday. A bill to permit non-profit hospitals to maintain a licensed pharmacy is on the governor's desk after a Thursday vote, and a pharmaceutical patient freedom of choice bill was submitted to the legislature the same day. Arkansas Legislative Council makes pharmacy-protecting PBM rule permanent Senate Bill 58 will remove the prohibition on non-profit, tax-exempt or government-funded hospitals from having a retail pharmacy permit. The legislation included a provision that a patient was not required to use a hospital's pharmacy and to inform them this was the case. Meanwhile, House Bill 1442 proposes to support patients and prevent anti-competitive practices for pharmacy patients. Arkansas bill limiting insurance settlements on governor's desk for signature The legislation allows patients freedom of choice in their pharmacy and requires pharmacies to have equal access to drug pricing programs. It also reflects SB58's prohibition removal, by requiring a non-profit hospital patient's pharmacy choice to be recorded. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
