ArkansasSB4202025 Regular SessionSenate

TO EXPAND ELIGIBILITY FOR WATER DEVELOPMENT STATE PROGRAMS; TO AMEND THE WATER AUTHORITY ACT; AND TO AMEND THE USES OF THE CONSTRUCTION ASSISTANCE REVOLVING LOAN FUND.

Sponsored By: Howard M. Beaty, Jr. (Republican), Bart Hester (Republican)

Enacted

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 2 benefits, 0 costs, 0 mixed.

More Environmental Projects Qualify for Financing

Arkansas expands the Construction Assistance Revolving Loan Fund to cover more environmental projects and public or private owners, including prospective owners. Federal agencies remain excluded. Eligible projects include water and wastewater systems, solid and hazardous waste facilities, recycling, polluted-runoff management, wetlands management, and other environmental projects. Financing or refinancing can cover planning, design, acquisition, construction, expansion, equipment, rehabilitation, or consolidation of projects or project parts. The Arkansas Natural Resources Commission can deposit loans, bonds, notes, and other debt from local governments and eligible project owners into the fund. Financing must follow the Clean Water Act as it existed on January 1, 2025. The law sets no loan amounts or terms, provides no new appropriation, and does not guarantee financing.

More Providers Can Become Water Authorities

More Arkansas water and wastewater providers can form or become public water authorities, opening access to tax-exempt borrowing. Eligible groups include nonprofits, government and municipal entities, municipal authorities, investor-owned utilities, improvement districts, and rural development authorities. They must provide or develop qualifying water services or wastewater projects. A converting public facilities board needs an approving ordinance from the county or municipality that formed it. Authorities need at least five directors, “public water authority” in their names, and Secretary of State name certification. Approved fictitious names are allowed. Conversion filings must include governing-body approval and details about directors, the office, service agent, service area, and bylaws. A filing and review fee remains required; the commission sets the amount. Assets and debts transfer to the authority unless the filed papers expressly keep the old entity alive and retain specified assets and debts. Converting governments are exempt from other government property-transfer procedures. A commission certificate of existence confirms compliance with formation and conversion requirements. The law aims to support favorable water rates but does not set or guarantee lower household bills.

Sponsors & Cosponsors

Sponsors

  • Howard M. Beaty, Jr.

    Republican • House

  • Bart Hester

    Republican • Senate

Cosponsors

  • Lee Johnson

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 117 • No: 7

House vote • 4/14/2025

House Vote - Monday, April 14, 2025 3:30:59 PM

Yes: 92 • No: 1

Senate vote • 3/19/2025

Senate Vote - Wednesday, March 19, 2025 3:07:34 PM

Yes: 25 • No: 6

Actions Timeline

  1. Notification that SB420 is now Act 736

    4/18/2025Senate
  2. DELIVERED TO GOVERNOR.

    4/15/2025Senate
  3. Reported correctly enrolled and ordered delivered to the Governor.

    4/15/2025Senate
  4. ORDERED ENROLLED

    4/14/2025Senate
  5. Returned from the House as passed.

    4/14/2025Senate
  6. Returned to the Senate as passed.

    4/14/2025House
  7. Read the third time and passed and ordered transmitted to the Senate.

    4/14/2025House
  8. Returned by the Committee Do Pass

    4/9/2025House
  9. Read the first time, rules suspended, read the second time and referred to the Committee on INSURANCE & COMMERCE- HOUSE

    3/19/2025House
  10. RECEIVED FROM THE SENATE

    3/19/2025House
  11. Ordered immediately transmitted to the House.

    3/19/2025Senate
  12. Read the third time and passed.

    3/19/2025Senate
  13. Returned by the Committee, with the recommendation that it Do Pass

    3/18/2025Senate
  14. Re-referred to INSURANCE & COMMERCE - SENATE

    3/17/2025Senate
  15. REPORTED CORRECTLY ENGROSSED

    3/17/2025Senate
  16. Amendment # 1 read the first time, rules suspended, read the second time and adopted, ordered engrossed.

    3/17/2025Senate
  17. Withdrawn from Committee and placed on 2nd reading for purpose of amendment # 1

    3/17/2025Senate
  18. Read first time, rules suspended, read second time, referred to INSURANCE & COMMERCE - SENATE

    3/11/2025Senate
  19. Filed

    3/11/2025Senate

Bill Text

  • SB420 - Introduced

    3/11/2025

  • Act Version

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