Stricken language would be deleted from and underlined language would be added to present law.
*CRH143* 2/28/2023 11:31:22 AM CRH143
State of Arkansas 1
94th General Assembly A Bill 2
Regular Session, 2023 HOUSE BILL 1515 3
4
By: Representative Maddox 5
6
For An Act To Be Entitled 7
AN ACT TO AMEND THE LAW CONCER NING RETAIL WATER 8
PROVIDERS AND RELATE D SERVICE; AND FOR O THER 9
PURPOSES. 10
11
12
Subtitle 13
TO AMEND THE LAW CONCERNING RETAIL WATER 14
PROVIDERS AND RELATED SERVICE. 15
16
17
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 18
19
SECTION 1. Arkansas Code § 14 -234-802(c), concerning the schedule that 20
a provider is required to use to obtain a rate study and the rate changes 21
following a rate study, is amended to read as follows: 22
(c)(1) A provider shall obtain a rate study on the fo llowing schedule: 23
(A) By July 1, 2024 2025, and every five (5) years 24
thereafter for a provider that serves five hundred (500) or fewer customers; 25
(B) By July 1, 2025 2026, and every five (5) years 26
thereafter for a provider that serves five hundred one (501) to one thousand 27
(1,000) customers; and 28
(C) By July 1, 2026 2027, and every five (5) years 29
thereafter for a provider that serves more than one thousand (1,000) 30
customers. 31
(2)(A) Rates and other revenue dedicated to the support of the 32
provider's water system shall adequately address costs for: 33
(i) Operation and maintenance; 34
(ii) Debt service; 35
(iii) Required reserves; 36 HB1515
2 2/28/2023 11:31:22 AM CRH143
(iv) Depreciation; 1
(v) Future capital expenses; 2
(vi) An Preparation of an annual audit or agreed -upon 3
procedures and compilation report as required by law; and 4
(vii) Other expenses as necessary. 5
(B)(i) The rates recommended in the rate study that is 6
obtained and chosen by the provider shall be implemented by the provider in 7
the manner provided und er the applicable law for modifying rates. 8
(ii) Except as provided in subdivision (c)(2)(B)(iii) 9
of this section, an increase in rates recommended in the rate study shall be 10
implemented within one (1) year of the receipt of the rate study. 11
(iii) If recommended rates increase the provider's 12
rates by fifty percent (50%) or more from the fiscal year before the rate 13
study was completed, the provider may phase in the rate increase over a two -14
year period. 15
(iv) If through the rate study it is recommen ded 16
that a series of rate increases be implemented over a period of time that 17
exceeds the periods of time required in subdivision (c)(2)(B)(ii) and (iii) 18
of this section, the provider may implement the series of rate increases 19
without regard to the limitat ions of subdivisions (c)(2)(B)(ii) and (iii) of 20
this section, provided that the series of rate increases conform with the 21
recommendations of the rate study. 22
23
SECTION 2. Arkansas Code § 14 -234-802(e), concerning the deposit of 24
gross revenues required by a provider, is amended to read as follows: 25
(e)(1) A Each provider shall deposit a minimum of five percent (5%) 26
per annum of gross revenues in a dedicated refurbishment and replacement 27
account within beginning no later than twelve (12) months of following the 28
implementation of the rate or rates required or recommended as a result of 29
the provider's first rate study , unless a different amount is determined by a 30
under the rate study. 31
(2) The provider may spend any amount of the provider's cash 32
savings referenced in subdivision (e)(1) of this section at any time for 33
refurbishment and replacement of the provider's water system facilities and 34
other real property. 35
36 HB1515
3 2/28/2023 11:31:22 AM CRH143
SECTION 3. Arkansas Code § 14 -234-802(h), concerning the requirement 1
for a provider to obtain a rate study or amend a rate study before beginning 2
a major development project, is repealed. 3
(h)(1) A provider that plans to undertake a major development project 4
shall obtain a rate study or amend the provider's existing rate study before 5
beginning the major development project to include consideration of the 6
financial impact of the major development project on the fiscal 7
sustainability of the provider. 8
(2) As used in this subsection, “major development project” 9
means a project that exceeds twenty percent (20%) of gross revenues of the 10
provider for the immediately preceding fiscal year. 11
12
SECTION 4. Arkansas Code § 14 -234-805(a)(1)(B), concerning the 13
training required for members of a provider board, is amended to read as 14
follows: 15
(B) A member of a provider board as of January 1, 2021, 16
shall receive the training required under this section by the later of the 17
member's first anniversary of service or December 31, 2022 2023. 18
19
SECTION 5. Arkansas Code § 14 -234-807 is amended to read as follows : 20
14-234-807. Applicability. 21
This subchapter does not apply to: 22
(1) A water system regulated by the Arkansas Public Service 23
Commission as a public utility under § 23 -1-101; 24
(2) A municipal utility system owned or operated by a 25
municipality that provides electric service to retail customers in addition 26
to water service, including an electric system: 27
(A) Managed or operated by a nonprofit corporation under § 28
14-199-701 et seq.; or 29
(B) Owned or operated by a municipality or by a 30
consolidated utility district under the General Consolidated Public Utility 31
System Improvement District Law, § 14 -217-101 et seq.; 32
(3) A privately owned provider that supplies the majority of its 33
retail water service to nonresidential customers; or 34
(4) A water system operated jointly between two (2) 35
municipalities in which each municipality is located in a different state ; or 36 HB1515
4 2/28/2023 11:31:22 AM CRH143
(5) A provider during the time that the provider is subject to a 1
federal court decree or judgment for remediation efforts for the purpos e of 2
compliance with federal law . 3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36