Bill > HB1701

This bill establishes new oversight regulations for wastewater and sewer service providers in Arkansas, focusing on improving their financial sustainability and operational efficiency. The legislation requires providers to obtain rate studies at specified intervals based on their customer base size, with the first studies due between 2028 and 2030, depending on the provider's scale. Providers must develop rates that cover operational costs, debt service, reserves, depreciation, future capital expenses, and other necessary expenditures. The bill mandates that providers deposit at least 5% of their gross revenues into a dedicated refurbishment and replacement account and requires board members to complete eight hours of specialized training within one year of appointment. Providers found to be in fiscal distress must submit improvement plans to the Arkansas Natural Resources Commission and the Division of Environmental Quality, and may face restrictions on receiving state financial assistance until they address their deficiencies. The bill aims to ensure the long-term viability of wastewater and sewer systems by promoting financial planning, infrastructure maintenance, and professional development, drawing inspiration from previous water provider reform efforts. Certain types of providers, such as those regulated by the Public Service Commission or municipal utility systems, are exempt from these new requirements.

Government Affairs

https://arkleg.state.ar.us/Bills/Detail?id=hb1701&ddBienniumSession=2025%2F2025R