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Committee pulls CAW retiree‑health bill for revision and approves measure letting utility develop leased housing and offer plumbing services
Summary
The committee debated two Central Arkansas Water bills. Lawmakers pulled the retiree-health clarification bill for redrafting to clarify which employees qualify; the committee approved a separate bill that would let CAW develop or lease multifamily housing on property it owns and offer plumbing services, with members warning about oversight and competition with the private sector.
The City, County & Local Affairs Committee considered two bills involving Central Arkansas Water (CAW). Lawmakers agreed to pull one bill for amendment and approved the other after extended questioning about scope, oversight and consumer impact.
SB243: retiree health coverage (pulled) Senator Mark Johnson introduced legislation to reconcile CAW’s long‑standing retiree health‑insurance program with two municipal-retiree statutes enacted in 1995 and 2009. CAW’s general counsel, David Johnson, told the committee the bill would confirm that employees hired before 01/01/2010 retain the retiree-premium contributions they were promised, while employees hired after that date must pay their own premiums if the current policy so provides. CAW said roughly 300 employees work for the utility and that the number of retirees for whom the utility remains obligated will decline over time.
Committee members asked for explicit statutory text to show where the pre‑/post‑2010 boundary is handled and for an estimate of the fiscal impact. Senator Clark and others asked for a clearer statute that makes explicit whether the benefit applies only to employees hired before 01/01/2010 and for quantified cost estimates; the sponsor agreed to pull the bill and work with staff to add full code language before return.
SB282: expanded powers to use stranded assets (passed) Senator Johnson said SB282 would permit consolidated waterworks such as CAW to develop, own and lease multifamily residential facilities on vacant lots the utility already owns and to offer plumbing services to retail customers for a charge (for example, repairing a private service line running from the meter to the house). CAW CEO Tad Bohannon said the authority would allow the utility to convert non‑productive parcels into revenue‑producing assets to help finance infrastructure maintenance and avoid larger rate increases.
Members raised concerns. Senator Clark described worry that a public utility could increasingly compete with private developers and must not lose focus on providing high‑quality water for roughly a half‑million customers. Senator Sullivan questioned geographic equity and whether projects would favor certain districts. Bohannon and sponsor Mark Johnson said CAW’s board (seven members appointed by the cities of Little Rock and North Little Rock) and local planning approvals would limit scope and that the projects are intended only for existing CAW‑owned properties that are difficult to redevelop through private markets.
Final action: After debate, Senator Mark Johnson moved that SB282 "do pass." The committee took a voice vote; the chair counted members and declared the measure passed after confirming five affirmative votes. The transcript records opposing voices but does not include a roll‑call tally by name.
Implications: If implemented, CAW would gain a new tool for monetizing stranded assets and generating revenue beyond rates and bonds, but committee discussion indicates lawmakers want tighter statutory language and oversight mechanisms before broadly empowering utilities to act as property developers.
