Arkansas Code Title 14. Local Government § 14-234-804. Municipal providers--Provision of water to nonresident customers--Advisory committee

(a)(1) If a municipal provider is unable or unwilling to provide service to a nonresident property owner residing in the provider's service area, the Arkansas Natural Resources Commission may require the municipal provider to release the nonresident property owner to a willing provider.

(2) If required by the willing provider, a nonresident property owner may be required to pay the costs of necessary extensions to connect to the willing provider.

(3) A municipal provider shall not release a service area of the municipal provider if the release would invalidate or encumber the issuance or retirement of a bond, promissory note, or certificate of indebtedness related to the service area.

(b)(1) A municipal provider that is willing to provide service to areas outside the municipal boundaries and within its service area shall do so through an application made by the affected property owner or through an agreement executed by the municipal provider and the affected property owner.

(2) If the municipal provider has a prerequisite that the affected property owner annex into the municipal boundaries before providing service, the prerequisite shall be clearly defined in an application or agreement.

(3) Failure to clearly define any annexation requirement within the application or agreement prohibits the municipal provider from requiring annexation in exchange for service for those areas without agreement from the affected property owner.

(c)(1) If a municipal provider services customers outside the municipal boundaries of the municipal provider and the number of those customers outside the municipal boundaries and in unincorporated areas equals or exceeds twenty percent (20%) of the total customer base of the municipal provider, a nonvoting advisory committee to the municipal provider board shall be created by the governing body of the municipality in which the municipal provider is located.

(2) The makeup and duties of an advisory committee created under subdivision (c)(1) of this section shall be determined by the governing body of the municipality that creates the advisory committee.

(3) Two (2) nonresident customers from the area served outside the municipal boundaries and in unincorporated areas shall serve on the advisory committee.

(1) Is prohibited from providing water to potential customers within the municipal provider's service area by the political subdivision under which the municipal provider is organized;

(2) Practices business irresponsibly in relation to consumer rights; or

(3) Is not following best management practices in providing water service.

(1) A municipal provider has made the decision not to extend service outside the municipal boundaries of the municipal provider;

(2) An engineering, capacity, physical feasibility, or fiscal feasibility issue exists as determined by a professional engineer or certified public accountant; or

(3) A consumer does not submit an application or enter into an agreement under subsection (b) of this section.