Shown verbatim: the complete text as captured from the official PDF posted by the Arkansas General Assembly, fetched 2026-07-23. Page and line markers are part of the official record; nothing is edited or removed. The official bill page.
Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas A Bill
2 95th General Assembly
3 Regular Session, 2025 HOUSE BILL 1547
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5 By: Representative L. Johnson
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8 For An Act To Be Entitled
9 AN ACT TO AMEND THE WATER AUTHORITY ACT; TO AMEND THE
10 DEFINITION OF "QUALIFIED CORPORATION" UNDER THE WATER
11 AUTHORITY ACT; AND FOR OTHER PURPOSES.
12
13
14 Subtitle
15 TO AMEND THE WATER AUTHORITY ACT; AND TO
16 AMEND THE DEFINITION OF "QUALIFIED
17 CORPORATION" UNDER THE WATER AUTHORITY
18 ACT.
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20 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
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22 SECTION 1. Arkansas Code � 4-35-101 is amended to read as follows:
23 4-35-101. Legislative intent.
24 It is the intent of the General Assembly to provide a means by which a
25 nonprofit corporation qualified corporation involved in the sale,
26 transmission, and distribution of potable water to members of the general
27 public and commercial, industrial, and other users may form or convert its
28 entity status from that of a body corporate to that of a public body politic
29 and governmental entity, thereby allowing the entity the opportunity to
30 access the tax-exempt capital markets and assuring the State of Arkansas and
31 the customers of the entity of the lowest water rates possible.
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33 SECTION 2. Arkansas Code � 4-35-103(7), concerning the definition of
34 "qualified corporation" under the Water Authority Act, is amended to read as
35 follows:
36 (7)(A) "Qualified corporation" means any:
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1 (i) nonprofit A nonprofit corporation originally
2 formed pursuant to under the Arkansas Nonprofit Corporation Act of 1993, � 4-
3 33-101 et seq., the Arkansas Nonprofit Corporation Act, � 4-28-201 et seq.,
4 or a predecessor statute, which among other things provides, distributes,
5 transmits, treats, pumps, or stores raw or potable water to or for the
6 benefit of members of the general public and commercial, industrial, and
7 other users or which that proposes to accomplish, develop, or construct any
8 of the foregoing; or
9 (ii) Any other governmental entity, municipal
10 entity, municipal authority, governmental authority, improvement district, or
11 rural development authority which provides, distributes, transmits, treats,
12 pumps, or stores raw or potable water to or for the benefit of members of the
13 general public and commercial, industrial, and other users that proposes to
14 accomplish, develop, or construct any of the foregoing.
15 (B) A qualified "Qualified corporation" includes a
16 nonprofit corporation an entity described under subdivision (7)(A)(i) and
17 subdivision (7)(A)(ii) of this section that constructs, expands, operates, or
18 maintains a wastewater project or wastewater treatment plant;
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20 SECTION 3. Arkansas Code � 4-35-202(a), concerning the conversion to a
21 public water authority, is amended to read as follows:
22 (a) Whenever a qualified corporation desires to convert to and become
23 reconstituted as a water authority under and pursuant to this chapter, the
24 qualified corporation shall present to and file with the Arkansas Natural
25 Resources Commission:
26 (1) A resolution adopted by the board of directors of the
27 qualified corporation and, if the qualified corporation has members, the
28 members of the qualified corporation, which evidences the desire of the
29 qualified corporation to convert to and become reconstituted as a water
30 authority and which shall additionally certify that the qualified
31 corporation:
32 (A) Was initially formed as a nonprofit qualified
33 corporation; and
34 (B) Does not have the ability to directly access the tax-
35 exempt capital markets other than through a conduit issuer; and
36 (C) Desires to realize interest rate savings as a result
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1 of its conversion to and reconstitution as a water authority pursuant to
2 under this chapter;
3 (2) Articles of conversion and reconstitution which that shall
4 be signed by a majority of the water authority's proposed initial board of
5 directors and which shall state and include the following information:
6 (A) The name of the water authority, which shall include
7 the words "public water authority", it being understood that the water
8 authority may adopt a fictitious operational name upon written request to and
9 approval by the commission and the Secretary of State;
10 (B) The location of the water authority's principal
11 office;
12 (C) The number of directors of the water authority, which
13 number shall be at least five (5) and shall be subject to change as provided
14 in this chapter or in the water authority's bylaws;
15 (D) The names and addresses of the proposed initial board
16 of directors of the water authority;
17 (E) The name and address of the agent for service of
18 process of the water authority;
19 (F) The proposed geographic service area over which the
20 water authority will have jurisdiction; and
21 (G) Any other matters that the proposed initial board of
22 directors of the water authority may deem necessary and appropriate;
23 (3) A copy of the water authority's proposed bylaws along with
24 any other information which the proposed initial board of directors of the
25 water authority may deem necessary and appropriate;
26 (4) A statement and certification from the Secretary of State
27 that the proposed name of the water authority is not identical to that of any
28 other water authority in the state or so nearly similar as to lead to
29 confusion and uncertainty;
30 (5) The filing and review fee that the commission may designate
31 and determine from time to time; and
32 (6) Any other information and documents which the commission may
33 designate and require.
34
35 SECTION 4. Arkansas Code � 4-35-203(b)(2), concerning the filing of
36 articles of constitution or articles of conversion and reconstitution with
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1 the Secretary of State, is amended to read as follows:
2 (2)(A) Filing Except as provided in subdivision (2)(B) of this
3 section, filing a copy of the articles of constitution or articles of
4 conversion and reconstitution, as accepted and approved by the commission,
5 with the Secretary of State shall serve to terminate and dissolve the
6 previous corporate existence of the qualified corporation, effective as of
7 the date of the issuance of the certificate of existence.
8 (B) A qualified corporation may file a copy of the
9 articles of constitution or articles of conversion and reconstitution with
10 the Secretary of State that expressly states that the qualified corporation
11 shall continue its corporate or governmental existence.
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