The bill amends the Water Authority Act to redefine the term "qualified corporation." It replaces the previous definition of "nonprofit corporation" with "qualified corporation," which now includes not only nonprofit entities involved in the sale and distribution of potable water but also various governmental entities such as municipal authorities and improvement districts. This change aims to broaden the scope of organizations that can operate as water authorities, thereby enhancing their ability to access tax-exempt capital markets and provide lower water rates to consumers.

Additionally, the bill outlines the process for a qualified corporation to convert into a water authority, detailing the necessary resolutions, articles of conversion, and certifications required for this transition. It also introduces a provision allowing a qualified corporation to maintain its corporate existence even after filing for conversion, ensuring continuity while reconstituting as a water authority. Overall, these amendments are designed to facilitate the formation and operation of water authorities in Arkansas, promoting efficient water service delivery to the public.

Statutes affected:
HB 1547: 4-35-101, 4-35-103(7), 4-35-202(a), 4-35-203(b)