All Roll Calls
Yes: 231 • No: 1
ArkansasHB17012025 Regular SessionHouse
TO AMEND THE LAW CONCERNING SEWER COLLECTION AND SEWER TREATMENT PROVIDERS AND RELATED SERVICES.
Sponsored By: Gary Stubblefield (Republican), Justin Gonzales (Republican)
Enacted
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 0 benefits, 1 costs, 4 mixed.
Sewer providers must review customer rates
Covered Arkansas sewer providers must obtain rate studies by July 1, 2028, for 500 or fewer customers; July 1, 2029, for 501–1,000; and July 1, 2030, for more than 1,000. Studies repeat every five years and must address operating costs, debt, reserves, depreciation, future improvements, replacement planning, and annual financial reports. Providers must implement recommended rates under applicable rate-change law, generally putting increases in place within one year. Increases of 50% or more may take two years; a study-recommended series of increases may follow a longer schedule. The commission sets study standards and maintains an approved list of study firms; an unlisted firm must have completed a study within the past five years. Providers must file their latest study annually with Arkansas Legislative Audit alongside their financial reporting. These requirements apply to covered providers, not every sewer system, and set no household-specific bill increase.
New small sewer providers face limits
New Arkansas sewer providers serving fewer than 300 customers face restricted approval. The commission can approve one only when denial threatens public health or the environment, or no viable alternative exists. The provider must be organized through a political subdivision, such as a county, city, or improvement district. It must show financial sustainability and pass the commission's technical, financial, and management review. This preserves a path to needed service while limiting creation of small providers without those safeguards.
Sewer providers must save for repairs
Covered Arkansas sewer providers must save at least 5% of yearly gross revenue in a dedicated repair and replacement account. A rate study can set a different yearly deposit instead. Providers can use the money at any time to refurbish or replace wastewater facilities and other real property. Saving this money supports future repairs, but can also affect customer rates. Providers exempt under the law are not subject to this requirement.
Sewer providers must train and recruit
Covered sewer providers must work with the Association of Arkansas Counties and Arkansas Municipal League on training for local leaders. They must offer suitable pay and incentives and support employee recruitment, education, and licensing. A majority of each provider's board must complete at least eight hours of commission-required training within one year of election or appointment. Members serving on January 1, 2025, must finish by December 31, 2026; members with at least 10 years of service are exempt. A majority's failure to finish required training can trigger financial-distress oversight, and an advisory board helps develop training content.
Troubled sewer providers face financial controls
The Arkansas Natural Resources Commission must identify financially distressed sewer providers each year, notify them, and publish a list. Missing or ignoring rate studies, serious compliance problems tied to inadequate funding, and required training failures can trigger oversight. A distressed provider must submit an improvement plan to the commission and Division of Environmental Quality within 90 days. State operating aid generally requires an approved plan; additional debt, assistance for work outside the plan, and asset transfers require written commission approval. The commission can allow urgent aid to protect public peace, health, or safety; providers can appeal to Pulaski County Circuit Court and leave the list once no longer distressed.
Sponsors & Cosponsors
Sponsors
Gary Stubblefield
Republican • Senate
Justin Gonzales
Republican • House
Cosponsors
Lee Johnson
Republican • House
Roll Call Votes
House vote • 4/15/2025
House Vote - Tuesday, April 15, 2025 3:08:58 PM
Yes: 99 • No: 0
Senate vote • 4/8/2025
Senate Vote - Tuesday, April 8, 2025 9:17:12 PM
Yes: 33 • No: 1
House vote • 3/31/2025
House Vote - Monday, March 31, 2025 2:19:10 PM
Yes: 99 • No: 0
Actions Timeline
Notification that HB1701 is now Act 925
4/21/2025HouseCorrectly enrolled and ordered transmitted to the Governor's Office.
4/16/2025HouseTO BE ENROLLED
4/15/2025HouseSenate amendment # 1 read and concurred in.
4/15/2025HouseReturned by the Committee with the recommendation that it do pass, concur in Senate Amendment No. 1
4/14/2025HouseRe-referred to the Committee on CITY, COUNTY & LOCAL AFFAIRS COMMITTEE- HOUSE
4/9/2025HouseReturned from Senate as passed, as amended # 1
4/9/2025HouseReturned to the House as passed as amended # 1 .
4/8/2025SenateRead the third time and passed.
4/8/2025SenateREPORTED CORRECTLY ENGROSSED
4/7/2025SenateAmendment # 1 read the first time, rules suspended, read the second time and adopted, ordered engrossed.
4/7/2025SenatePlaced on second reading for purpose of amendment.
4/7/2025SenateReturned by the Committee with the recommendation that it Do Pass as amended, Amendment # 1
4/3/2025SenateRead first time, rules suspended, read second time, referred to CITY, COUNTY & LOCAL AFFAIRS COMMITTEE - SENATE
3/31/2025SenateReceived from the House.
3/31/2025SenateRead the third time and passed and ordered transmitted to the Senate.
3/31/2025HouseREPORTED CORRECTLY ENGROSSED
3/20/2025HouseAmendment No. 1 read and adopted and the bill ordered engrossed.
3/20/2025HousePlaced on second reading for the purpose of amendment.
3/20/2025HouseReturned by the Committee with the recommendation that it do pass as amended 1
3/19/2025HouseRead the first time, rules suspended, read the second time and referred to the Committee on CITY, COUNTY & LOCAL AFFAIRS COMMITTEE- HOUSE
3/6/2025HouseFiled
3/6/2025House
Bill Text
HB1701 - Introduced
3/6/2025
Act Version
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