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Committee approves wastewater bill requiring five‑year rate studies and fiscal reserve rules
Summary
House bill 1701, presented as the wastewater counterpart to an earlier water utilities law, was amended and passed by the committee; it requires wastewater providers to perform a rate analysis every five years and to build reserves for system failures.
The committee passed House Bill 1701, a measure described by the sponsor as the wastewater counterpart to an earlier Water Act that requires periodic rate studies and reserve practices.
Senator K. Gary Stubblefield presented HB1701 and introduced Heath Ward, executive director of Springdale Water Utilities and legislative chair for the Arkansas Water and Wastewater Managers Association, who answered technical questions. The sponsor said the amendment cleaned up language from the Department of Energy (as presented in committee) and that the bill mirrors provisions first enacted for water providers in 2021 and amended in 2023.
On the record, committee members and witnesses said the bill requires wastewater providers—which are not state‑funded entities but local or utility providers—to perform a rate analysis every five years and to implement rates that support system operation and capital needs. Witnesses noted the law requires placing a portion of revenue into a restricted account for system failures and includes training for board members, consistent with the water statute's approach.
No opposition was recorded in committee. After adoption of the amendment, the committee passed HB1701 by voice vote and recorded the bill as passed in committee.
Supporters said the law is intended to reduce the likelihood that wastewater systems must seek state assistance when they lack funds for major repairs and to improve the financial independence and resilience of local wastewater utilities.
