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Committee backs water-system oversight bill requiring trainings, audits and advisory representation
Summary
Senate Bill 386, sponsored by Sen. Clark, would require eight hours of training for most water-board members, water-specific audits every five years, rate-setting at or above cost, and advisory representation when more than 20% of a municipal system’s customers are outside city limits; the committee passed the bill after testimony from municipal and operator groups.
The City, County & Local Affairs Committee on Thursday voted to advance Senate Bill 386, a multi-part bill that sponsors and stakeholders say aims to strengthen oversight and long-term financial stability for local water systems across Arkansas.
Sponsor Senator Clark framed the bill as the product of a multi-year task force and said it responds to a large deferred-maintenance shortfall uncovered by engineers and stakeholders. "We had close to $10,000,000,000 deficit in water structure in Arkansas," Clark said while summarizing the task force findings, and he described the bill as a foundation rather than a cure-all for the state's water needs.
Key provisions explained to the committee include an eight-hour education requirement for a majority of governing-board members, a water-specific audit every five years (which Clark said is available at no charge in some cases), and a requirement that systems set rates at or above cost so they can plan for long-term maintenance and replacements. Clark told members, "You need that audit. You need to know what it costs to provide water in your area, and not set rates below cost." He said those measures would help identify systems that can remain locally managed and those that will need outside assistance.
The bill also addresses customers outside municipal limits: Clark said municipalities that choose to supply water outside their boundaries must include any future-annexation terms in initial agreements, and if more than 20% of a system’s customers live outside the city limits the bill would require creation of a water advisory board with at least two members representing those outside areas.
Supporters, including Jack Critcher of the Arkansas Municipal League and a letter read by John Wilkerson from the Arkansas Water and Wastewater Managers Association, told the committee the bill reflects long stakeholder engagement and would promote best practices, training and resource sharing. Critcher told members he and others had worked with Clark on the bill’s development and urged a yes vote.
Senator Clark moved that the bill do pass; the committee approved the motion by voice vote. The chair congratulated Senator Clark and the bill will move forward in the legislative process. The committee hearing did not include a roll-call tally or an implementation timetable in the record; specific funding mechanisms and effective dates were not specified in the discussion.
