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Committee backs bill allowing bankruptcy judge to authorize bonds to repair a failing county water system
Summary
Rep. Rick McClure said HB 16 36 enables a bankruptcy judge to authorize bond issuance to finance repairs for a water system in Hot Spring County placed in receivership; the committee approved the bill to help restore service to about 750 homes and multiple businesses.
Representative Rick McClure (District 29) told the committee that HB 16 36 would permit a bankruptcy judge to authorize a bond issue to finance repairs for a water system in Hot Spring County that had gone bankrupt and been placed in receivership under Central Arkansas Water. McClure said the system serves about 750 residential and roughly 47 business customers and that previous grants and funds had been exhausted.
David Johnson, general counsel at Central Arkansas Water, was introduced and the sponsor said the bond authority provides a mechanism not previously available when systems enter bankruptcy. The committee asked no substantive follow-up questions and approved the bill by voice vote.
The bill will move forward from committee with the committee's recommendation.
