4-35-202. Authority and procedure to convert to a water authority.

4-35-202. Authority and procedure to convert to a water authority. (a) Whenever a qualified corporation desires to convert to and become reconstituted as a water authority under and pursuant to this chapter, the qualified corporation shall present to and file with the Arkansas Natural Resources Commission: (1) A resolution adopted by the board of directors of the qualified corporation and, if the qualified corporation has members, the members of the qualified corporation, which evidences the desire of the qualified corporation to convert to and become reconstituted as a water authority and which shall additionally certify that the qualified corporation: (A) Was initially formed as a nonprofit corporation; (B) Does not have the ability to directly access the tax-exempt capital markets other than through a conduit issuer; and (C) Desires to realize interest rate savings as a result of its conversion to and reconstitution as a water authority pursuant to this chapter; (2) Articles of conversion and reconstitution which shall be signed by a majority of the water authority's proposed initial board of directors and which shall state and include the following information: (A) The name of the water authority, which shall include the words “public water authority”, it being understood that the water authority may adopt a fictitious operational name upon written request to and approval by the commission and the Secretary of State; (B) The location of the water authority's principal office; (C) The number of directors of the water authority, which number shall be at least five (5) and shall be subject to change as provided in this chapter or in the water authority's bylaws; (D) The names and addresses of the proposed initial board of directors of the water authority; (E) The name and address of the agent for service of process of the water authority; (F) The proposed geographic service area over which the water authority will have jurisdiction; and (G) Any other matters that the proposed initial board of directors of the water authority may deem necessary and appropriate; (3) A copy of the water authority's proposed bylaws along with any other information which the proposed initial board of directors of the water authority may deem necessary and appropriate; (4) A statement and certification from the Secretary of State that the proposed name of the water authority is not identical to that of any other water authority in the state or so nearly similar as to lead to confusion and uncertainty; (5) The filing and review fee that the commission may designate and determine from time to time; and (6) Any other information and documents which the commission may designate and require. (b) In the event the qualified corporation has members: (1)(A) Membership approval is required for the qualified corporation to convert into and become reconstituted as a water authority. (B) Approval shall be obtained in the manner determined prior to conversion under the qualified corporation's articles, bylaws, or applicable statutes; and (2) After conversion, the water authority shall have no members.