Arkansas 2025 Regular Session

Arkansas House Bill HB1547 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	Stricken language would be deleted from and underlined language would be added to present law.
2	2	ANS127 02/19/2025 3:39:58 PM ANS127
3	3	State of Arkansas 1
4	4	95th General Assembly A Bill 2
5	5	Regular Session, 2025 HOUSE BILL 1547 3
6	6	4
7	7	By: Representative L. Johnson 5
8	8	6
9	9	7
10	10	For An Act To Be Entitled 8
11	11	AN ACT TO AMEND THE WATER AUTHORITY ACT; TO AMEND THE 9
12	12	DEFINITION OF "QUALIFIED CORPORATION" UNDER THE WATER 10
13	13	AUTHORITY ACT; AND FOR OTHER PURPOSES. 11
14	14	12
15	15	13
16	16	Subtitle 14
17	17	TO AMEND THE WATER AUTHORITY ACT; AND TO 15
18	18	AMEND THE DEFINITION OF "QUALIFIED 16
19	19	CORPORATION" UNDER THE WATER AUTHORITY 17
20	20	ACT. 18
21	21	19
22	22	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
23	23	21
24	24	SECTION 1. Arkansas Code § 4 -35-101 is amended to read as follows: 22
25	25	4-35-101. Legislative intent. 23
26	26	It is the intent of the General Assembly to provide a means by which a 24
27	27	nonprofit corporation qualified corporation involved in the sale, 25
28	28	transmission, and distribution of potable water to members of the general 26
29	29	public and commercial, industrial, and other users may form or convert its 27
30	30	entity status from that of a body corporate to that of a public body politic 28
31	31	and governmental entity, thereby allowing the entity the opportunity to 29
32	32	access the tax-exempt capital markets and assuring the State of Arkansas and 30
33	33	the customers of the entity of the lowest water rates possible. 31
34	34	32
35	35	SECTION 2. Arkansas Code § 4 -35-103(7), concerning the definition of 33
36	36	"qualified corporation" under the Water Authority Act, is amended to read as 34
37	37	follows: 35
38	38	(7)(A) "Qualified corporation" means any: 36 HB1547
39	39
40	40	2 02/19/2025 3:39:58 PM ANS127
41	41	(i) nonprofit A nonprofit corporation originally 1
42	42	formed pursuant to under the Arkansas Nonprofit Corporation Act of 1993, § 4 -2
43	43	33-101 et seq., the Arkansas Nonprofit Corporation Act, § 4 -28-201 et seq., 3
44	44	or a predecessor statute, which among other things provides, distributes, 4
45	45	transmits, treats, pumps, or stores raw or potable water to or for the 5
46	46	benefit of members of the general public and commercial, industrial, and 6
47	47	other users or which that proposes to accomplish, develop, or construct any 7
48	48	of the foregoing; or 8
49	49	(ii) Any other governmental entity, municipal 9
50	50	entity, municipal authority, governmental authority, improvement district, or 10
51	51	rural development authority which provides, distributes, transmits, treats, 11
52	52	pumps, or stores raw or potable water to or for the benefit of members of the 12
53	53	general public and commercial, industrial, and other users that proposes to 13
54	54	accomplish, develop, or construct any of the foregoing . 14
55	55	(B) A qualified "Qualified corporation" includes a 15
56	56	nonprofit corporation an entity described under subdivision (7)(A)(i) and 16
57	57	subdivision (7)(A)(ii) of this section that constructs, expands, operates, or 17
58	58	maintains a wastewater project or wastewater treatment plant; 18
59	59	19
60	60	SECTION 3. Arkansas Code § 4 -35-202(a), concerning the conversion to a 20
61	61	public water authority, is amended to read as follows: 21
62	62	(a) Whenever a qualified corporation desires to convert to and become 22
63	63	reconstituted as a water authority under and pursuant to this chapter, the 23
64	64	qualified corporation shall present to and file with the Arkansas Natural 24
65	65	Resources Commission: 25
66	66	(1) A resolution adopted by the board of directors of the 26
67	67	qualified corporation and, if the qualified corporation has members, the 27
68	68	members of the qualified corporation, which evidences the desire of the 28
69	69	qualified corporation to convert to and become reconstituted as a water 29
70	70	authority and which shall additionally certify that the qualified 30
71	71	corporation: 31
72	72	(A) Was initially formed as a nonprofit qualified 32
73	73	corporation; and 33
74	74	(B) Does not have the ability to directly access the tax -34
75	75	exempt capital markets other than through a conduit issuer; and 35
76	76	(C) Desires to realize interest rate savings as a result 36 HB1547
77	77
78	78	3 02/19/2025 3:39:58 PM ANS127
79	79	of its conversion to and reconstitution as a water authority pursuant to 1
80	80	under this chapter; 2
81	81	(2) Articles of conversion and reconstitution which that shall 3
82	82	be signed by a majority of the water authority's proposed initial board of 4
83	83	directors and which shall state and include the following information: 5
84	84	(A) The name of the water authority, which shall include 6
85	85	the words “public water authority”, it being understood that the water 7
86	86	authority may adopt a fictitious operational name upon written request to and 8
87	87	approval by the commission and the Secretary of State; 9
88	88	(B) The location of the water authority's principal 10
89	89	office; 11
90	90	(C) The number of directors of the water authority, which 12
91	91	number shall be at least five (5) and shall be subject to change as provided 13
92	92	in this chapter or in the water authority's bylaws; 14
93	93	(D) The names and addresses of the proposed initial board 15
94	94	of directors of the water authority; 16
95	95	(E) The name and address of the agent for service of 17
96	96	process of the water authority; 18
97	97	(F) The proposed geographic service area over which the 19
98	98	water authority will have jurisdiction; and 20
99	99	(G) Any other matters that the proposed initial board of 21
100	100	directors of the water authority may deem necessary and appropriate; 22
101	101	(3) A copy of the water authority's proposed bylaws along with 23
102	102	any other information which the proposed initial board of directors of the 24
103	103	water authority may deem necessary and appropriate; 25
104	104	(4) A statement and certification from the Secretary of State 26
105	105	that the proposed name of the water authority is not identical to that of any 27
106	106	other water authority in the state or so nearly similar as to lead to 28
107	107	confusion and uncertainty; 29
108	108	(5) The filing and review fee that the commission may designate 30
109	109	and determine from time to time; and 31
110	110	(6) Any other information and documents which the commission may 32
111	111	designate and require. 33
112	112	34
113	113	SECTION 4. Arkansas Code § 4 -35-203(b)(2), concerning the filing of 35
114	114	articles of constitution or articles of conversion and reconstitution with 36 HB1547
115	115
116	116	4 02/19/2025 3:39:58 PM ANS127
117	117	the Secretary of State, is amended to read as follows: 1
118	118	(2)(A) Filing Except as provided in subdivision (2)(B) of this 2
119	119	section, filing a copy of the articles of constitution or articles of 3
120	120	conversion and reconstitution, as accepted and approved by the commission, 4
121	121	with the Secretary of State shall serve to terminate and dissolve the 5
122	122	previous corporate existence of the qualified corporation, effective as of 6
123	123	the date of the issuance of the certificate of existence. 7
124	124	(B) A qualified corporation may file a copy of the 8
125	125	articles of constitution or articles of conversion and reconstitution with 9
126	126	the Secretary of State that expressly states that the qualified corporation 10
127	127	shall continue its corporate or governmental existence. 11
128	128	12
129	129	13
130	130	14
131	131	15
132	132	16
133	133	17
134	134	18
135	135	19
136	136	20
137	137	21
138	138	22
139	139	23
140	140	24
141	141	25
142	142	26
143	143	27
144	144	28
145	145	29
146	146	30
147	147	31
148	148	32
149	149	33
150	150	34
151	151	35
152	152	36