AR HB1701

Establishes oversight framework for wastewater and sewer retail providers under the Arkansas Natural Resources Commission and Division of Environmental Quality, modeled after the 2021 retail water provider reforms

Requires mandatory rate studies on a staggered schedule: providers with 500 or fewer customers by July 1, 2028; 501-1,000 customers by July 1, 2029; and over 1,000 customers by July 1, 2030, with updates every five years thereafter

Defines fiscal distress criteria for providers who fail to obtain or implement rate studies, or are found in significant noncompliance, and requires distressed providers to file improvement plans within 90 days and restricts their access to state financial assistance

Mandates providers deposit a minimum of 5% of gross revenues annually into a dedicated refurbishment and replacement account, with rates required to cover operation, maintenance, debt service, depreciation, and future capital expenses

Requires a majority of provider board members to complete 8 hours of training within one year of appointment, with current members having until December 31, 2026, to comply