To Establish The Strengthen Arkansas Homes Act; And To Create The Strengthen Arkansas Homes Program Premium Tax Fund.
SB179 establishes the Strengthen Arkansas Homes Act and creates a dedicated Strengthen Arkansas Homes Program Premium Tax Fund. The bill directs certain insurance premium tax revenues into that fund and uses the money to finance grants for homeowners and nonprofit organizations to retrofit or construct residential property to better withstand catastrophic wind events, including tornadoes, hail, and other windstorms. The program is housed in the State Insurance Department and administered by the Insurance Commissioner, who is also tasked with adopting rules to implement the program.
The grant program is built around the FORTIFIED Home construction standards developed by the Insurance Institute for Business & Home Safety (or a successor entity). Eligible projects include roof upgrades and other retrofits for owner-occupied single-family dwellings that meet program requirements, with payments made directly to contractors after certification is issued. The bill also requires participating insurers to offer premium discounts or rate reductions for compliant properties when actuarially justified, and to offer an optional policy endorsement for non-FORTIFIED homes that would help pay the cost of upgrading a roof after a covered loss. The bill is effective January 1, 2026.
SB179 would amend multiple sections of Arkansas insurance and revenue law to divert up to $12 million in premium tax revenue annually into a new special revenue fund, with $10 million designated for grants and $2 million for administration. It also changes premium tax distribution rules for hospital and medical services corporations, health maintenance organizations, and other insurers so that the specified amount is deposited into the new fund before remaining revenues go to general revenues. In addition, the bill creates new statutory requirements for insurers to provide discounts or policy options related to fortified construction, and it authorizes the Insurance Commissioner to regulate eligibility, contractor standards, evaluator standards, audits, and program rules.
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate or formal support/opposition in the available context. Based on the bill text alone, the measure appears designed as a consumer protection and disaster-mitigation initiative, with a policy focus on reducing wind and hail losses and encouraging stronger home construction. The structure of the bill suggests a generally pro-insurance-resilience approach, but the absence of discussion records means the level of support or concern cannot be determined from the provided materials.
The main points of potential contention are the diversion of premium tax revenue from general revenues to a dedicated program fund, the requirement that insurers offer discounts or policy endorsements tied to fortified construction, and the administrative burden placed on the Insurance Department, insurers, contractors, and homeowners. Potential concerns may also include whether the premium discounts are actuarially justified, whether the program favors certain homeowners over others, and the confidentiality provisions that exempt application materials from FOIA, subpoena, discovery, and admissibility in private civil actions. Because no transcripts or votes were provided, it is not possible to identify which legislators, stakeholders, or industry groups raised these concerns.