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 potentially lower water rates for consumers.

Additionally, the bill outlines the process for a qualified corporation to convert into a water authority, detailing the necessary documentation and resolutions required for this transition. It specifies that the articles of conversion can include a provision allowing the corporation to maintain its existence post-conversion, which was not previously permitted. Overall, these amendments are designed to facilitate the formation and operation of water authorities in Arkansas, ensuring they can effectively serve the public's water needs.

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