SJR5
An Amendment To The Arkansas Constitution To Authorize A County, City, Town, Or Other Municipal Corporation To Fund And Administer A Water System Customer Assistance Program.
Last Action (May 1, 2023): Sine Die adjournment
Sponsors
AI-Generated Summary
Senate Joint Resolution 5 proposes an amendment to the Arkansas Constitution to expressly authorize counties, cities, towns, and other municipal corporations to fund and administer water system customer assistance programs. Currently, the state constitution restricts political subdivisions from lending credit to or appropriating money for private entities or individuals, with specific exceptions for economic development. This bill adds a specific exemption to those restrictions, allowing municipalities to provide financial assistance to utility customers for water charges and related fees collected by the utility. The proposal requires voter approval at the next general election. If passed, the amendment would take effect on January 1, 2025. It also provides a framework for the General Assembly to amend certain portions of this section by a three-fourths vote.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries are low-income or financially vulnerable residents who rely on municipal water systems and may struggle to pay their utility bills. Additionally, local government entities benefit by gaining explicit constitutional authority to create support programs without facing potential legal challenges regarding the lending of public credit to individuals.
Who Might Suffer?
Taxpayers within the jurisdiction of municipalities that choose to fund these programs could be negatively impacted, as the costs associated with the assistance programs would likely be sourced from municipal budgets, public funds, or potential rate adjustments. Additionally, if the program is not carefully managed, other utility ratepayers might see indirect impacts if the administrative and assistance costs are not offset by other revenue streams.
Get Notified
Receive an email when this bill's status changes.