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.
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1 State of Arkansas As Engrossed: S3/17/25
2 95th General Assembly
A Bill
3 Regular Session, 2025 SENATE BILL 420
4
5 By: Senator Hester
6 By: Representatives Beaty Jr., L. Johnson
7
8 For An Act To Be Entitled
9 AN ACT TO EXPAND ELIGIBILITY FOR WATER DEVELOPMENT
10 STATE PROGRAMS; TO AMEND THE WATER AUTHORITY ACT; TO
11 AMEND THE USES OF THE CONSTRUCTION ASSISTANCE
12 REVOLVING LOAN FUND; AND FOR OTHER PURPOSES.
13
14
15 Subtitle
16 TO EXPAND ELIGIBILITY FOR WATER
17 DEVELOPMENT STATE PROGRAMS; TO AMEND THE
18 WATER AUTHORITY ACT; AND TO AMEND THE
19 USES OF THE CONSTRUCTION ASSISTANCE
20 REVOLVING LOAN FUND.
21
22 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
23
24 SECTION 1. Arkansas Code � 4-35-101 is amended to read as follows:
25 4-35-101. Legislative intent.
26 It is the intent of the General Assembly to provide a means by which a
27 nonprofit corporation qualified corporation involved in the sale,
28 transmission, and distribution of potable water to members of the general
29 public and commercial, industrial, and other users may form or convert its
30 entity status from that of a body corporate to that of a public body politic
31 and governmental entity, thereby allowing the entity the opportunity to
32 access the tax-exempt capital markets and assuring the State of Arkansas and
33 the customers of the entity of the lowest water rates possible to be a water
34 authority.
35
36 SECTION 2. Arkansas Code � 4-35-103(7), concerning the definition of
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1 "qualified corporation" within the Water Authority Act, is amended to read as
2 follows:
3 (7)(A) "Qualified corporation" means:
4 (i) any A nonprofit corporation originally formed
5 pursuant to under the Arkansas Nonprofit Corporation Act of 1993, � 4-33-101
6 et seq., the Arkansas Nonprofit Corporation Act, � 4-28-201 et seq., or a
7 predecessor statute, which among other things that provides, distributes,
8 transmits, treats, pumps, or stores raw or potable water to or for the
9 benefit of members of the general public and commercial, industrial, and
10 other users or which that proposes to accomplish, develop, or construct any
11 of the foregoing; or
12 (ii) Any governmental entity, municipal nonprofit
13 entity, municipal authority, governmental authority, investor-owned water or
14 wastewater utility, improvement district, or rural development authority that
15 provides, distributes, transmits, treats, pumps, or stores raw or potable
16 water to or for the benefit of members of the general public and commercial,
17 industrial, and other users that proposes to accomplish, develop, or
18 construct any of the foregoing.
19 (B) A qualified corporation "Qualified corporation"
20 includes a nonprofit corporation an entity described under subdivision
21 (7)(A)(i) and (ii) of this section that constructs, expands, operates, or
22 maintains a wastewater project or wastewater treatment plant;
23
24 SECTION 3. Arkansas Code � 4-35-202(a), concerning the authority and
25 procedure to convert to a water authority under the Water Authority Act, is
26 amended to read as follows:
27 (a) Whenever a qualified corporation desires to convert to and become
28 reconstituted as a water authority under and pursuant to this chapter, the
29 qualified corporation shall present to and file with the Arkansas Natural
30 Resources Commission:
31 (1) A resolution adopted by the board of directors governing
32 body of the qualified corporation and, if the qualified corporation has
33 members, the members of the qualified corporation, which evidences the desire
34 of the qualified corporation to convert to and become reconstituted as a
35 water authority and which shall additionally certify that the qualified
36 corporation:;
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1 (A) Was initially formed as a nonprofit corporation;
2 (B) Does not have the ability to directly access the tax-
3 exempt capital markets other than through a conduit issuer; and
4 (C) Desires to realize interest rate savings as a result
5 of its conversion to and reconstitution as a water authority pursuant to this
6 chapter
7 (2) If the qualified corporation is a public facilities board,
8 an ordinance adopted by the governing body of the county or municipality that
9 formed the public facilities board approving the conversion and
10 reconstitution of the public facilities board into a water authority;
11 (2)(3) Articles of conversion and reconstitution which that
12 shall be signed by a majority of the water authority's proposed initial board
13 of directors and which shall state and include the following information:
14 (A) The name of the water authority, which shall include
15 the words "public water authority", it being understood that the water
16 authority may adopt a fictitious operational name upon written request to and
17 approval by the commission and the Secretary of State;
18 (B) The location of the water authority's principal
19 office;
20 (C) The number of directors of the water authority, which
21 number shall be at least five (5) and shall be subject to change as provided
22 in this chapter or in the water authority's bylaws;
23 (D) The names and addresses of the proposed initial board
24 of directors of the water authority;
25 (E) The name and address of the agent for service of
26 process of the water authority;
27 (F) The proposed geographic service area over which the
28 water authority will have jurisdiction; and
29 (G) Any other matters that the proposed initial board of
30 directors of the water authority may deem necessary and appropriate;
31 (3)(4) A copy of the water authority's proposed bylaws along
32 with any other information which the proposed initial board of directors of
33 the water authority may deem necessary and appropriate;
34 (4)(5) A statement and certification from the Secretary of State
35 that the proposed name of the water authority is not identical to that of any
36 other water authority in the state or so nearly similar as to lead to
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1 confusion and uncertainty;
2 (5)(6) The filing and review fee that the commission may
3 designate and determine from time to time; and
4 (6)(7) Any other information and documents which the commission
5 may designate and require.
6
7 SECTION 4. Arkansas Code � 4-35-203(a)(2), concerning the effect of
8 formation of a water authority and the filing with the Secretary of State
9 under the Water Authority Act, is amended to read as follows:
10 (2)(A) Contemporaneously therewith, with respect to a
11 conversion, the qualified corporation shall cease to exist and all assets and
12 liabilities of every nature, including, without limitation, all real
13 property, personal property, contractual obligations, lending obligations
14 outstanding, rights afforded borrowers of federal and state funds, and other
15 tangible and intangible assets and liabilities of every nature, without need
16 for further action or approval by any third party, shall be vested in and
17 shall accrue to the benefit of the water authority, unless the articles of
18 conversion and reconstitution filed with the Secretary of State expressly
19 state that the qualified corporation shall continue its corporate or
20 governmental existence and that certain specified assets and liabilities of
21 the qualified corporation shall remain with the qualified corporation.
22 (B) A governmental entity that is converted and
23 reconstituted as a water authority under this chapter is not required to
24 comply with other laws or procedures regarding transfer of property by
25 governmental entities.
26
27 SECTION 5. Arkansas Code � 4-35-203(b)(2), concerning the effect of
28 formation of a water authority and the filing with the Secretary of State
29 under the Water Authority Act, is amended to read as follows:
30 (2)(A) Except as provided in subdivision (b)(2)(B) of this
31 section, filing Filing a copy of the articles of constitution or articles of
32 conversion and reconstitution, as accepted and approved by the commission,
33 with the Secretary of State shall serve to terminate and dissolve the
34 previous corporate existence of the qualified corporation, effective as of
35 the date of the issuance of the certificate of existence.
36 (B) A qualified corporation may file a copy of the
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1 articles of constitution or articles of conversion and reconstitution with
2 the Secretary of State that expressly states that the qualified corporation
3 shall continue its corporate or governmental existence.
4
5 SECTION 6. Arkansas Code � 4-35-203, concerning the effect of
6 formation of a water authority and the filing with the Secretary of State
7 under the Water Authority Act, is amended to add an additional subsection to
8 read as follows:
9 (c) Upon receipt of a certificate of existence from the commission
10 under � 4-35-203(a)(1), the water authority shall be deemed to have complied
11 with all requirements of this subchapter relating to the proper formation or
12 conversion and reconstitution of a water authority, including without
13 limitation all requirements of � 4-35-202.
14
15 SECTION 7. Arkansas Code � 15-5-901(a)(3), concerning the
16 establishment and uses of the Construction Assistance Revolving Loan Fund, is
17 amended to read as follows:
18 (3) The commission may deposit loans made to and bonds, notes,
19 and other evidences of indebtedness issued by local governmental entities and
20 other owners of environmental projects in accordance with the Clean Water
21 Act, 33 U.S.C. � 1251 et seq., as existing on January 1, 2025, to finance or
22 refinance the planning, design, acquisition, construction, expansion,
23 equipping, rehabilitation, or consolidation of wastewater systems, water
24 systems, solid and hazardous waste facilities, recycling facilities, nonpoint
25 source management facilities, wetlands conservation and management
26 facilities, and other environmental projects or parts of environmental
27 projects into the Construction Assistance Revolving Loan Fund.
28
29 SECTION 8. Arkansas Code � 15-5-909(8), concerning the definition of
30 "owner" regarding the Construction Assistance Revolving Loan Fund, is amended
31 to read as follows:
32 (8) "Owner" means the owner or prospective owner, whether public
33 or private, of an environmental project, excluding any federal agencies;
34
35 /s/Hester
36
5 03-17-2025 10:10:49 JMB397Every fact on this page links to its source, starting with the official bill record.