The bill amends Arkansas law regarding sewer collection and treatment providers by establishing a new subchapter focused on the oversight of wastewater and sewer retail providers. It outlines the responsibilities of the Arkansas Natural Resources Commission and the Division of Environmental Quality in overseeing these providers, emphasizing the need for adequate rates to support capital improvements and operational needs. The bill mandates that providers conduct rate studies at specified intervals based on the number of customers served, and it requires that rates be adjusted accordingly to ensure financial sustainability. Additionally, it introduces measures for identifying providers in fiscal distress, including the requirement for improvement plans and restrictions on state financial assistance until such plans are approved.

Furthermore, the bill includes provisions for workforce recruitment and training for provider board members, ensuring they receive necessary education to effectively manage their responsibilities. It specifies that a majority of board members must complete training within a year of their election or appointment, with exceptions for long-serving members. The Arkansas Natural Resources Commission is tasked with developing rules to implement these changes, which are to be filed by January 1, 2026. The bill also clarifies that certain entities, such as municipal utilities and privately owned providers serving primarily nonresidential customers, are exempt from these new regulations.