Stricken language would be deleted from and underlined language would be added to present law.
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State of Arkansas 1
95th General Assembly A Bill 2
Regular Session, 2025 HOUSE BILL 1547 3
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By: Representative L. Johnson 5
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For An Act To Be Entitled 8
AN ACT TO AMEND THE WATER AUTHORITY ACT; TO AMEND THE 9
DEFINITION OF "QUALIFIED CORPORATION" UNDER THE WATER 10
AUTHORITY ACT; AND FOR OTHER PURPOSES. 11
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Subtitle 14
TO AMEND THE WATER AUTHORITY ACT; AND TO 15
AMEND THE DEFINITION OF "QUALIFIED 16
CORPORATION" UNDER THE WATER AUTHORITY 17
ACT. 18
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
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SECTION 1. Arkansas Code § 4 -35-101 is amended to read as follows: 22
4-35-101. Legislative intent. 23
It is the intent of the General Assembly to provide a means by which a 24
nonprofit corporation qualified corporation involved in the sale, 25
transmission, and distribution of potable water to members of the general 26
public and commercial, industrial, and other users may form or convert its 27
entity status from that of a body corporate to that of a public body politic 28
and governmental entity, thereby allowing the entity the opportunity to 29
access the tax-exempt capital markets and assuring the State of Arkansas and 30
the customers of the entity of the lowest water rates possible. 31
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SECTION 2. Arkansas Code § 4 -35-103(7), concerning the definition of 33
"qualified corporation" under the Water Authority Act, is amended to read as 34
follows: 35
(7)(A) "Qualified corporation" means any: 36 HB1547
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(i) nonprofit A nonprofit corporation originally 1
formed pursuant to under the Arkansas Nonprofit Corporation Act of 1993, § 4 -2
33-101 et seq., the Arkansas Nonprofit Corporation Act, § 4 -28-201 et seq., 3
or a predecessor statute, which among other things provides, distributes, 4
transmits, treats, pumps, or stores raw or potable water to or for the 5
benefit of members of the general public and commercial, industrial, and 6
other users or which that proposes to accomplish, develop, or construct any 7
of the foregoing; or 8
(ii) Any other governmental entity, municipal 9
entity, municipal authority, governmental authority, improvement district, or 10
rural development authority which provides, distributes, transmits, treats, 11
pumps, or stores raw or potable water to or for the benefit of members of the 12
general public and commercial, industrial, and other users that proposes to 13
accomplish, develop, or construct any of the foregoing . 14
(B) A qualified "Qualified corporation" includes a 15
nonprofit corporation an entity described under subdivision (7)(A)(i) and 16
subdivision (7)(A)(ii) of this section that constructs, expands, operates, or 17
maintains a wastewater project or wastewater treatment plant; 18
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SECTION 3. Arkansas Code § 4 -35-202(a), concerning the conversion to a 20
public water authority, is amended to read as follows: 21
(a) Whenever a qualified corporation desires to convert to and become 22
reconstituted as a water authority under and pursuant to this chapter, the 23
qualified corporation shall present to and file with the Arkansas Natural 24
Resources Commission: 25
(1) A resolution adopted by the board of directors of the 26
qualified corporation and, if the qualified corporation has members, the 27
members of the qualified corporation, which evidences the desire of the 28
qualified corporation to convert to and become reconstituted as a water 29
authority and which shall additionally certify that the qualified 30
corporation: 31
(A) Was initially formed as a nonprofit qualified 32
corporation; and 33
(B) Does not have the ability to directly access the tax -34
exempt capital markets other than through a conduit issuer; and 35
(C) Desires to realize interest rate savings as a result 36 HB1547
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of its conversion to and reconstitution as a water authority pursuant to 1
under this chapter; 2
(2) Articles of conversion and reconstitution which that shall 3
be signed by a majority of the water authority's proposed initial board of 4
directors and which shall state and include the following information: 5
(A) The name of the water authority, which shall include 6
the words “public water authority”, it being understood that the water 7
authority may adopt a fictitious operational name upon written request to and 8
approval by the commission and the Secretary of State; 9
(B) The location of the water authority's principal 10
office; 11
(C) The number of directors of the water authority, which 12
number shall be at least five (5) and shall be subject to change as provided 13
in this chapter or in the water authority's bylaws; 14
(D) The names and addresses of the proposed initial board 15
of directors of the water authority; 16
(E) The name and address of the agent for service of 17
process of the water authority; 18
(F) The proposed geographic service area over which the 19
water authority will have jurisdiction; and 20
(G) Any other matters that the proposed initial board of 21
directors of the water authority may deem necessary and appropriate; 22
(3) A copy of the water authority's proposed bylaws along with 23
any other information which the proposed initial board of directors of the 24
water authority may deem necessary and appropriate; 25
(4) A statement and certification from the Secretary of State 26
that the proposed name of the water authority is not identical to that of any 27
other water authority in the state or so nearly similar as to lead to 28
confusion and uncertainty; 29
(5) The filing and review fee that the commission may designate 30
and determine from time to time; and 31
(6) Any other information and documents which the commission may 32
designate and require. 33
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SECTION 4. Arkansas Code § 4 -35-203(b)(2), concerning the filing of 35
articles of constitution or articles of conversion and reconstitution with 36 HB1547
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the Secretary of State, is amended to read as follows: 1
(2)(A) Filing Except as provided in subdivision (2)(B) of this 2
section, filing a copy of the articles of constitution or articles of 3
conversion and reconstitution, as accepted and approved by the commission, 4
with the Secretary of State shall serve to terminate and dissolve the 5
previous corporate existence of the qualified corporation, effective as of 6
the date of the issuance of the certificate of existence. 7
(B) A qualified corporation may file a copy of the 8
articles of constitution or articles of conversion and reconstitution with 9
the Secretary of State that expressly states that the qualified corporation 10
shall continue its corporate or governmental existence. 11
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