AR SB289

Amends the definition of "public utility" under Arkansas Code § 14-200-101(a) to clarify that it includes water and utility companies, while excluding certain consolidated utility districts and water or light commissions.

Modifies the franchise fee cap for public utilities in municipalities from "four and one-quarter percent" to explicitly state "twenty-five-hundredths percent (4.25%)" of revenue collected from customers in the city or town for rates and fees charged.

Clarifies that franchise fees may only exceed the cap if agreed to by the affected utility or approved by municipal voters.

Amends Arkansas Code § 25-20-319(b) to exempt public bodies created under that subchapter from being classified as "public utilities" and prohibits participating public agencies from requiring such public bodies to pay franchise fees under other law.

Approved February 28, 2019.