SB420

Senate Bill 420 expands the eligibility criteria for organizations to convert into 'water authorities' under Arkansas law, allowing a broader range of entities—including governmental entities, municipal authorities, and investor-owned utilities—to access tax-exempt capital markets. By broadening the definition of a 'qualified corporation,' the bill aims to facilitate the conversion process for various water and wastewater providers. It streamlines the procedural requirements for these conversions and clarifies the transfer of assets and liabilities when an entity reconstitutes itself. Additionally, the bill amends the scope of the Construction Assistance Revolving Loan Fund, allowing for the inclusion of a wider array of environmental projects and indebtedness instruments. It also broadens the definition of an 'owner' eligible to participate in this revolving loan fund. Ultimately, the legislation seeks to lower water rates by providing more entities access to more favorable financing options for water and wastewater infrastructure.