Arkansas 2023 Regular Session

Arkansas House Bill HB1515 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 545 of the Regular Session
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4	3
5	4		State of Arkansas As Engrossed: H3/13/23 1
6	5		94th General Assembly A Bill 2
7	6		Regular Session, 2023 HOUSE BILL 1515 3
8	7		4
9	8		By: Representative Maddox 5
10	9		By: Senator Rice 6
11	10		7
12	11		For An Act To Be Entitled 8
13	12		AN ACT TO AMEND THE LAW CONCERNING RETAI L WATER 9
14	13		PROVIDERS AND RELATE D SERVICE; AND FOR O THER 10
15	14		PURPOSES. 11
16	15		12
17	16		13
18	17		Subtitle 14
19	18		TO AMEND THE LAW CONCERNING RETAIL WATER 15
20	19		PROVIDERS AND RELATED SERVICE. 16
21	20		17
22	21		18
23	22		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
24	23		20
25	24		SECTION 1. Arkansas Code § 14 -234-802(c), concerning the schedule that 21
26	25		a provider is required to use to obtain a rate study and the rate changes 22
27	26		following a rate study, is amended to read as follows: 23
28	27		(c)(1) A provider shall obtain a rate study on the following schedule: 24
29	28		(A) By July 1, 2024, and every five (5) years thereafter 25
30	29		for a provider that serves five hundred (500) or fewer customers; 26
31	30		(B) By July 1, 2025, and every five (5) years thereafter 27
32	31		for a provider that serves five hundred one (501) to one thousand (1,000) 28
33	32		customers; and 29
34	33		(C) By July 1, 2026, and every five (5) years thereafter 30
35	34		for a provider that serves more than one thousand (1,000) customers. 31
36	35		(2)(A) Rates and other revenue dedica ted to the support of the 32
37	36		provider's water system shall adequately address costs for: 33
38	37		(i) Operation and maintenance; 34
39	38		(ii) Debt service; 35
40	39		(iii) Required reserves; 36 As Engrossed: H3/13/23 HB1515
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45	44		(iv) Depreciation; 1
46	45		(v) Future capital expenses; 2
47	46		(vi) An Preparation of an annual audit or agreed -upon 3
48	47		procedures and compilation report as required by law; and 4
49	48		(vii) Other expenses as necessary. 5
50	49		(B)(i) The rates recommended in the rate study that is 6
51	50		obtained and chosen by the provider shall be implemented by the pro vider in 7
52	51		the manner provided under the applicable law for modifying rates. 8
53	52		(ii) Except as provided in subdivision (c)(2)(B)(iii) 9
54	53		of this section, an increase in rates recommended in the rate study shall be 10
55	54		implemented within one (1) year of the receipt of the rate study. 11
56	55		(iii) If recommended rates increase the provider's 12
57	56		rates by fifty percent (50%) or more from the fiscal year before the rate 13
58	57		study was completed, the provider may phase in the rate increase over a two -14
59	58		year period. 15
60	59		(iv) If through the rate study it is recommended 16
61	60		that a series of rate increases be implemented over a period of time that 17
62	61		exceeds the periods of time required in subdivision (c)(2)(B)(ii) and (iii) 18
63	62		of this section, the provider may implement the series of rate increas es 19
64	63		without regard to the limitations of subdivisions (c)(2)(B)(ii) and (iii) of 20
65	64		this section, provided that the series of rate increases conform with the 21
66	65		recommendations of the rate study. 22
67	66		23
68	67		SECTION 2. Arkansas Code § 14 -234-802(e), concerning the deposit of 24
69	68		gross revenues required by a provider, is amended to read as follows: 25
70	69		(e)(1) A Each provider shall deposit a minimum of five percent (5%) 26
71	70		per annum of gross revenues in a dedicated refurbishment and replacement 27
72	71		account within twelve (12) month s of implementation of the rate, unless a 28
73	72		different amount is determined by a rate study . 29
74	73		(2) The provider may spend any amount of the provider's cash 30
75	74		savings referenced in subdivision (e)(1) of this section at any time for 31
76	75		refurbishment and replacement of the provider's water system facilities and 32
77	76		other real property. 33
78	77		(3) If a different amount is determined by a rate study, then 34
79	78		the amount determined by the rate study shall be deposited into a dedicated 35
80	79		refurbishment and replacement account. 36 As Engrossed: H3/13/23 HB1515
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86	85		SECTION 3. Arkansas Code § 14 -234-802(h), concerning the requirement 2
87	86		for a provider to obtain a rate study or amend a rate study before beginning 3
88	87		a major development project, is repealed. 4
89	88		(h)(1) A provider that plans to undertake a major development pro ject 5
90	89		shall obtain a rate study or amend the provider's existing rate study before 6
91	90		beginning the major development project to include consideration of the 7
92	91		financial impact of the major development project on the fiscal 8
93	92		sustainability of the provider. 9
94	93		(2) As used in this subsection, “major development project” 10
95	94		means a project that exceeds twenty percent (20%) of gross revenues of the 11
96	95		provider for the immediately preceding fiscal year. 12
97	96		13
98	97		SECTION 4. Arkansas Code § 14 -234-805(a)(1)(B), concerning the 14
99	98		training required for members of a provider board, is amended to read as 15
100	99		follows: 16
101	100		(B) A member of a provider board as of January 1, 2021, 17
102	101		shall receive the training required under this section by the later of the 18
103	102		member's first anniversary of service or December 31, 2022 2023. 19
104	103		20
105	104		SECTION 5. Arkansas Code § 14 -234-807 is amended to read as follows: 21
106	105		14-234-807. Applicability. 22
107	106		This subchapter does not apply to: 23
108	107		(1) A water system regulated by the Arkansas Public Service 24
109	108		Commission as a public utility under § 23-1-101; 25
110	109		(2) A municipal utility system owned or operated by a 26
111	110		municipality that provides electric service to retail customers in addition 27
112	111		to water service, including an electric system: 28
113	112		(A) Managed or operated by a nonprofit corporation u nder § 29
114	113		14-199-701 et seq.; or 30
115	114		(B) Owned or operated by a municipality or by a 31
116	115		consolidated utility district under the General Consolidated Public Utility 32
117	116		System Improvement District Law, § 14 -217-101 et seq.; 33
118	117		(3) A privately owned provider that supp lies the majority of its 34
119	118		retail water service to nonresidential customers; or 35
120	119		(4) A water system operated jointly between two (2) 36 As Engrossed: H3/13/23 HB1515
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125	124		municipalities in which each municipality is located in a different state ; or 1
126	125		(5) A provider during the time that the pr ovider is subject to a 2
127	126		federal court decree or judgment for remediation efforts related to the 3
128	127		provider's water system, wastewater system, or water and wastewater systems 4
129	128		for the purpose of compliance with federal law . 5
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131	130		/s/Maddox 7
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134		-	~~APPROVED: 4/11/23~~ 10
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