Stricken language would be deleted from and underlined language would be added to present law.
Act 545 of the Regular Session
*CRH143* 03-13-2023 09:49:50 CRH143
State of Arkansas As Engrossed: H3/13/23 1
94th General Assembly A Bill 2
Regular Session, 2023 HOUSE BILL 1515 3
4
By: Representative Maddox 5
By: Senator Rice 6
7
For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW CONCERNING RETAI L WATER 9
PROVIDERS AND RELATE D SERVICE; AND FOR O THER 10
PURPOSES. 11
12
13
Subtitle 14
TO AMEND THE LAW CONCERNING RETAIL WATER 15
PROVIDERS AND RELATED SERVICE. 16
17
18
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 19
20
SECTION 1. Arkansas Code § 14 -234-802(c), concerning the schedule that 21
a provider is required to use to obtain a rate study and the rate changes 22
following a rate study, is amended to read as follows: 23
(c)(1) A provider shall obtain a rate study on the following schedule: 24
(A) By July 1, 2024, and every five (5) years thereafter 25
for a provider that serves five hundred (500) or fewer customers; 26
(B) By July 1, 2025, and every five (5) years thereafter 27
for a provider that serves five hundred one (501) to one thousand (1,000) 28
customers; and 29
(C) By July 1, 2026, and every five (5) years thereafter 30
for a provider that serves more than one thousand (1,000) customers. 31
(2)(A) Rates and other revenue dedica ted 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 As Engrossed: H3/13/23 HB1515
2 03-13-2023 09:49:50 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 pro vider in 7
the manner provided under 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 recommended 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 increas es 19
without regard to the limitations 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 twelve (12) month s of implementation of the rate, unless a 28
different amount is determined by a rate study . 29
(2) The provider may spend any amount of the provider's cash 30
savings referenced in subdivision (e)(1) of this section at any time for 31
refurbishment and replacement of the provider's water system facilities and 32
other real property. 33
(3) If a different amount is determined by a rate study, then 34
the amount determined by the rate study shall be deposited into a dedicated 35
refurbishment and replacement account. 36 As Engrossed: H3/13/23 HB1515
3 03-13-2023 09:49:50 CRH143
1
SECTION 3. Arkansas Code § 14 -234-802(h), concerning the requirement 2
for a provider to obtain a rate study or amend a rate study before beginning 3
a major development project, is repealed. 4
(h)(1) A provider that plans to undertake a major development pro ject 5
shall obtain a rate study or amend the provider's existing rate study before 6
beginning the major development project to include consideration of the 7
financial impact of the major development project on the fiscal 8
sustainability of the provider. 9
(2) As used in this subsection, “major development project” 10
means a project that exceeds twenty percent (20%) of gross revenues of the 11
provider for the immediately preceding fiscal year. 12
13
SECTION 4. Arkansas Code § 14 -234-805(a)(1)(B), concerning the 14
training required for members of a provider board, is amended to read as 15
follows: 16
(B) A member of a provider board as of January 1, 2021, 17
shall receive the training required under this section by the later of the 18
member's first anniversary of service or December 31, 2022 2023. 19
20
SECTION 5. Arkansas Code § 14 -234-807 is amended to read as follows: 21
14-234-807. Applicability. 22
This subchapter does not apply to: 23
(1) A water system regulated by the Arkansas Public Service 24
Commission as a public utility under § 23-1-101; 25
(2) A municipal utility system owned or operated by a 26
municipality that provides electric service to retail customers in addition 27
to water service, including an electric system: 28
(A) Managed or operated by a nonprofit corporation u nder § 29
14-199-701 et seq.; or 30
(B) Owned or operated by a municipality or by a 31
consolidated utility district under the General Consolidated Public Utility 32
System Improvement District Law, § 14 -217-101 et seq.; 33
(3) A privately owned provider that supp lies the majority of its 34
retail water service to nonresidential customers; or 35
(4) A water system operated jointly between two (2) 36 As Engrossed: H3/13/23 HB1515
4 03-13-2023 09:49:50 CRH143
municipalities in which each municipality is located in a different state ; or 1
(5) A provider during the time that the pr ovider is subject to a 2
federal court decree or judgment for remediation efforts related to the 3
provider's water system, wastewater system, or water and wastewater systems 4
for the purpose of compliance with federal law . 5
6
/s/Maddox 7
8
9
APPROVED: 4/11/23 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