Stricken language would be deleted from and underlined language would be added to present law. *CRH087* 03/04/2025 4:04:52 PM CRH087 State of Arkansas 1 95th General Assembly A Bill 2 Regular Session, 2025 HOUSE BILL 1681 3 4 By: Representatives Vaught, Milligan, Achor, F. Allen, Andrews, Barker, Barnes, Barnett, Beaty Jr., Beck, 5 Bentley, S. Berry, Breaux, Brooks, K. Brown, M. Brown, N. Burkes, R. Burkes, Joey Carr, Cavenaugh, 6 Childress, Clowney, A. Collins, C. Cooper, Cozart, Crawford, Duffield, Eaton, Ennett, Eubanks, Evans, 7 K. Ferguson, Furman, D. Garner, Gazaway, Gonzales, Gonzales Worthen, Gramlich, Hall, Hawk, Henley, 8 Holcomb, Hollowell, Hudson, L. Johnson, Ladyman, Long, Maddox, Magie, McAlindon, McClure, 9 McCullough, M. McElroy, McGrew, McGruder, McNair, S. Meeks, J. Moore, K. Moore, Nazarenko, 10 Painter, Pearce, Puryear, J. Richardson, R. Scott Richardson, Richmond, Rose, Rye, Schulz, T. Shephard, 11 Springer, Steele, Steimel, Torres, Tosh, Underwood, Unger, Walker, Warren, D. Whitaker, Wing, 12 Wooldridge, Wooten 13 By: Senators J. Bryant, Hester 14 15 For An Act To Be Entitled 16 AN ACT REGARDING THE ARKANSAS NATURAL RESOURCES 17 COMMISSION; TO ESTABLISH THE WATER AND SEWER 18 TREATMENT FACILITIES GRANT PROGRAM; TO CREATE THE 19 WATER AND SEWER TREATMENT FACILITIES GRANT PROGRAM 20 FUND; TO TRANSFER FUNDING FROM THE SECURITIES RESERVE 21 FUND; TO DECLARE AN EMERGENCY; AND FOR OTHER 22 PURPOSES. 23 24 25 Subtitle 26 TO ESTABLISH THE WATER AND SEWER 27 TREATMENT FACILITIES GRANT PROGRAM; TO 28 TRANSFER FUNDING FROM THE SECURITIES 29 RESERVE FUND; AND TO DECLARE AN 30 EMERGENCY. 31 32 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 33 34 SECTION 1. Arkansas Code § 19 -5-905(a)(12), concerning the use of the 35 Securities Reserve Fund, are amended to read as follows: 36 HB1681 2 03/04/2025 4:04:52 PM CRH087 (12) After the transfer enumerated in subdivision (a)(10) of 1 this section and contingent upon available moneys in the Securities Reserve 2 Fund, for a transfer by the Chief Fiscal Officer of the State of fifty 3 million dollars ($50,000,000) or as much as remains unobligated each fiscal 4 year to the Water and Sewer Treatment Facilities Grant Program Fund; and 5 (13) After all distributions and transfers under this section, 6 less one hundred thousand dollars ($100,000) under § 19 -3-521(a)(2), for a 7 transfer by the Chief Fiscal Officer of the State on the last business day of 8 the fiscal year of the fund balance to the Catastrophic Reserve Fund. 9 10 SECTION 2. Arkansas Code § 19 -6-301, concerning the enumeration of 11 special revenues, is amended to read as follows: 12 (276) Transfers from the Securities Reserve Fund under § 19 -5-13 905(a)(11) to award grants under the Water and Sewer Treatment Facilities 14 Grant Program established in § 25 -43-203. 15 16 SECTION 3. Arkansas Code Title 19, Chapter 6, Subchapter 8, is amended 17 to add an additional section to read as follows: 18 19-6-845. Water and Sewer Treatment Facilities Grant Program Fund. 19 (a) There is established on the books of the Treasurer of State, the 20 Auditor of State, and the Chief Fiscal Officer of the State a special revenue 21 fund to be known as the "Water and Sewer Treatment Facilities Grant Program 22 Fund". 23 (b) The fund shall consist of: 24 (1) Moneys transferred to the fund under § 19 -5-905; and 25 (2) Any other revenues as authorized by law. 26 (c) The fund shall be used by the Arkansas Natural Resources 27 Commission to award grants under the Water and Sewer Treatment Facilities 28 Grant Program established in § 25 -43-203. 29 30 SECTION 4. Arkansas Code Title 25, Chapter 43, Subchapter 2, is 31 amended to add an additional section to read as follows: 32 25-43-203. Water and Sewer Treatment Facilities Grant Program. 33 (a)(1) There is created within the Arkansas Natural Resources 34 Commission the Water and Sewer Treatment Facilities Grant Program to be 35 administered by the commission. 36 HB1681 3 03/04/2025 4:04:52 PM CRH087 (2) The commission may hire personnel necessary to carry out the 1 duties of administering the program. 2 (b) The commission shall: 3 (1) Create an application form to be submitted by eligible water 4 and sewer treatment facilities seeking a matching grant from the program; 5 (2) Devise an application process that: 6 (A) Defines the eligibility criteria for a matching grant; 7 and 8 (B) Establishes application submission and review 9 processes; 10 (3) Define a process by which grants may be awarded; 11 (4) Execute standard legal grant agreements and other 12 documentation governing the disbursement and use of grants; and 13 (5) Provide a matching grant to eligible water and sewer 14 treatment facilities for infrastructure and improvement projects that are 15 shovel-ready. 16 (c) A recipient of a grant awarded under this section shall: 17 (1) Begin the recipient's project within one (1) year of the 18 award of the grant funds; and 19 (2) Not be eligible for another grant until the awarded grant 20 has been closed out. 21 (d) Funding under the program shall be awarded as follows: 22 (1) Eighty percent (80%) shall be awarded for shovel -ready 23 projects in: 24 (A) Cities of the first class and cities of the second 25 class with a population over one thousand two hundred (1,200); or 26 (B) Rural water and rural wastewater systems serving a 27 population over one thousand two hundred (1,200); and 28 (2) Twenty percent (20%) shall be awarded in: 29 (A) Incorporated towns and cities of the second class with 30 a population of one thousand two hundred (1,200) or less; or 31 (B) Rural water and rural wastewater systems serving a 32 population of one thousand two hundred (1,200) or less. 33 (e) The commission shall promulgate rules to implement this section. 34 (f) The program under this section shall expire ten (10) years from 35 the effective date of this act. 36 HB1681 4 03/04/2025 4:04:52 PM CRH087 1 SECTION 5. EMERGENCY CLAUSE. It is found and determined by the 2 General Assembly of the State of Arkansas that it is in the best interest of 3 the citizens of this state to provide water and sewer grant opportunities for 4 projects to keep Arkansas water systems safe and clean; and that this act is 5 immediately necessary because there is a dire need to protect public health 6 and safety in Arkansas by replacing water and sewer lines that are in 7 disrepair and by providing new access to clean water systems to other 8 citizens. Therefore, an emergency is declared to exist, and this act being 9 immediately necessary for the preservation of the public peace, health, and 10 safety shall become effective on: 11 (1) The date of its approval by the Governor; 12 (2) If the bill is neither approved nor vetoed by the Governor, 13 the expiration of the period of time during which the Governor may veto the 14 bill; or 15 (3) If the bill is vetoed by the Governor and the veto is 16 overridden, the date the last house overrides the veto. 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36