Judges: DUSTIN McDANIEL, Attorney General
Filed Date: 9/10/2008
Status: Precedential
Modified Date: 7/5/2016
The Honorable Marilyn Edwards State Representative 2330 North Juneway Terrace Fayetteville, Arkansas 72703-2915
Dear Representative Edwards:
I am writing in response to your request for an opinion on several questions concerning the election of regional water district board members. Specifically, you state the following background information and pose the following seven questions:
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Act 863 of 2007 amended A.C.A. §14-116-301 (as to a water district comprised of less than four counties) stating that any board member must reside in the service area of the customers of the district which is the area within the boundaries of the water district to which the customers of the district currently provide retail water services or other services that have purchased water from the district.The Beaver Water District was created in 1959 and is composed of Washington and Benton counties. Four cities, Fayetteville, Springdale, Bentonville, and Rogers purchase water directly from the district. All, or some, of these cities sell water to other smaller cities. Some other water authority entities in the counties also purchase water from the Benton-Washington Water Authority (commonly known as Two Ton) [a separate entity from the Beaver Water District] which in turn sells water to some smaller cities and/or other water entities.
1) Does this act apply to water districts that were created and operating prior to said Act, specifically, Beaver Water District?
2) What does "retail" mean in the context of said Act?
3) Would "retail" include only the four major cities as set out above, or would it include other smaller cities that purchase water from these four cities?
4) Would "retail" include smaller cities or other water entities that purchase water from Two Ton?
5) What is meant by the term "other service" and how does this clause affect the answer to any of the above questions?
6) Can this Act lawfully restrict the Board membership in such a manner? (Previously anyone residing in the district could hold a position on the board).
7) What is meant by the term "service area" as far as eligibility to vote in an election for a Board seat is concerned? (Can all the voters in the entire district vote? From what source are the County Clerks and/or the County Election Commission to look to determine "service areas?" Can they require the Beaver Water District to provide this information to them?)
Petitions to file for any vacant positions are due by September 5th for the November elections and it is imperative that the County Clerks and/or the County Election Commission be able to determine who may run for these positions.
Question 1 — Does this act apply to water districts that were createdand operating prior to said Act, specifically, Beaver WaterDistrict?
In my opinion the answer to this question is "yes." Nothing in the Act indicates that its applicability is restricted to regional water districts created after the Act's effective date.
Some background on the applicable law and 2007 amendment will be helpful prior to addressing your first question. As you note,
In order to take advantage of this federal policy our legislature adopted
Act 114 of 1957 , which appears as [A.C.A. §§14-116-101 through-801]. This statute provides for the creation of regional water distribution districts as nonprofit public *Page 4 corporations. Such a district is authorized to contract with the Corps of Engineers for the acquisition of water rights in federal impoundments and to make contracts with consumers, including municipalities, for the sale of such water. . . .Pursuant to the above statute the Beaver Water District was organized by an order of the Benton circuit court on July 17, 1959.
Id. at 108-09. See also, Acts
The relevant part of the 1957 Act for purposes of your first question is now codified at §
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14-116-301 . Members generally — Original appointments.(a) If a water district is composed of all or a portion of four (4) or more counties:
(1) The board of directors shall be composed of three (3) qualified electors who are residents of the district from each of the counties in which lands are embraced in the district. Furthermore, if the circuit court creating a water distribution district finds that a larger number of board members than that provided for above is necessary to afford adequate representation for the various parts of the district, the court may establish a board consisting of a greater number of members than that provided for above. In this case the representation on the board of directors shall be apportioned to the various parts of the district in a manner the circuit court deems just and equitable.
(2) When the circuit court has established the district, it shall within a reasonable time thereafter appoint the three (3) or more directors of the water district. Upon the expiration of the terms of the directors so appointed, subsequent directors shall be elected as set out in this subchapter by the qualified electors residing in the water district in each county in which there is area included in the district.
(b) If a water district is composed of all or a portion of less than four (4) counties:
(1) The board of directors shall be composed of three (3) qualified voters residing in the service area of the customers of the district, which is the area within the boundaries of the water district to which the customers of the district currently provide retail water or other services that they have purchased from the district. However, if the district embraces lands in more than one (1) county but less than four (4) counties, then the board of directors shall be composed of three (3) qualified electors who are residents of the service area of the customers of the district from each of the counties in which lands are embraced in the district. Furthermore, if the court creating a water distribution district finds that a larger number of board members than that provided for above is necessary to afford adequate representation for the various parts of the district, the court may establish a board consisting of a greater number of members than that provided for above. In this case the representation on the board of directors shall be apportioned to the various parts of the district in a manner the court deems just and equitable, and each director shall be a qualified voter residing in the part of the service area of the customers of the district that he or she represents.
(2) When the circuit court has established the district, it shall appoint, within a reasonable time thereafter, the three (3) or more directors of the water district. Upon the expiration of the terms of the directors so appointed, subsequent directors shall be elected as set out in this subchapter by the qualified electors residing in the service area of the customers of the water district in each *Page 6 county in which lands are embraced in the district or, if the district has been apportioned by the court, by qualified voters residing in the part of the service area of the customers of the district that the director will represent.
Emphasis added.
The 2007 amendment by Act 863, among other things, added subsection (b) above, relating to districts comprised of less than four counties. It requires board members to reside in the "service area" of the "customers" of the district. If the district is comprised of two or three counties, subsection (b) also apparently requires three board members from each county (with residence in the service areas), to be on the board. Under former law, the board composition of all districts, regardless of the number of counties covered, was governed by what is now subsection (a)(1), which simply required the three board members to be residents of the district — with each county represented if the district covered land in more than one county.1 Because the Beaver Water District is comprised of only two counties, Washington and Benton, subsection (b), as amended in 2007, is thus the pertinent subsection and the majority of your questions inquire about the new language used in that subsection.
Your first question, however, is whether
In analyzing this question, the rules of statutory construction must be applied. It has been stated that "[t]he basic rule of statutory construction, to which all other interpretive guides must yield, is to give effect to the intent of the General Assembly." Pugh v. St. PaulFire Marine Ins. Co.,
In this regard, the plain language of the
Section
In this regard, Act 863 amends another statute in the subchapter, A.C.A. §
In addition, in my opinion, application of Act 863 to districts created before its passage does not transgress the presumption against retroactive application of legislative acts. As I stated in Op. Att'y Gen.
A well-established principle of statutory interpretation that has been consistently applied by the Arkansas Supreme Court is the principle that all legislation is presumed to apply prospectively unless the legislature expressly declares, or necessarily implies by the language used, an intent to give the legislation retroactive effect. See, e.g., City of Cave Springs v. City of Rogers,
343 Ark. 652 ,37 S.W.3d 607 (2001); City of Dover v. Barton,337 Ark. 186 ,987 S.W.2d 705 (1999).
Id. at 10.
As my predecessor stated in Op. Att'y Gen.
It has also been stated, however, that ". . . a statute is not rendered retroactive merely because the facts upon which its subsequent action depends are drawn from a time antecedent to its effective date." Sutherland Stat. Const. § 41.01 at 338 (5th ed.) In addition, one of my predecessors has stated that "The Arkansas courts have allowed statutes to operate retroactively, even when they have had the effect of increasing a burden upon the affected party, if the operative event occurred after the effective date of the act." Op. Att'y Gen.
In this instance, the plain language of Act 863 applies to regional water districts created prior to its passage. The Act does not have retroactive effect because it changes the way board members are electedin the future. The operative event (a future election), occurs after the passage of the Act. Cf. also, Town of Lisbon v. Lisbon VillageDistrict,
In my opinion, therefore, the answer to your first question is "yes," Act 863 applies to districts created and operating prior to the passage of the Act, including the Beaver Water District.
Question 2 — What does "retail" mean in the context of said Act?
This question has reference to the language of A.C.A. §
The board of directors shall be composed of three (3) qualified voters residing in the service area of the customers of the district, which is the area within the boundaries of the water district to which the customers of the district currently provide retail water or other services that they have purchased from the district. However, if the district embraces lands in more than one (1) county but less than four (4) counties, then the board of directors shall be composed of three (3) qualified electors who are residents of the service area of the customers of the district from each of the counties in which lands are embraced in the district.
(Emphasis added).
The operative words and phrases in the subsection above are the "service area" of the customers of the district, defined as the "area within the boundaries of the water district to which the customers of the district currently provide retail water or other services that they have purchased from the district." (Emphasis added). Board members of districts covering less than four counties must be elected from these "service areas." The "customers" of the district apparently refers to the municipalities or other entities purchasing water from the regional district. See Hink, supra (referring to a district's ability to make contracts with consumers, including municipalities, for the sale of such water). The applicable area is therefore the "service area" of these municipalities or other customers, which is the area in which the customers provide "retail" water or other services. The word "retail" is not defined in the Act.
As I recently stated in Op. Att'y Gen.
As I stated in Op. Att'y Gen.
The court has sometimes resorted to dictionary definitions in order to determine the meaning of a word or phrase, see Arkansas Tobacco Control Board v. Santa Fe Natural Tobacco Company,
360 Ark. 32 ,39 ,199 S.W.3d 656 (2004), or to "legal" dictionary definitions, Harold Ives Trucking Company v. Pickens,355 Ark. 407 ,411 139 S.W.3d 471(2003). The court has stated, however, that it is not limited, in construing the meaning of a word or phrase to dictionary definitions. See, e.g., Bill Fitts Auto Sales, Inc. v. Daniels,325 Ark. 51 ,55 ,922 S.W.2d 718 (1996). The court has sometimes looked to definitions adopted in other states, Harold Ives Trucking Company v. Pickens, supra; or to the history of a statute and the record of the court's interpretation of it. Lawhon Farm Services v. Brown,335 Ark. 272 ,279 ,984 S.W.2d 1(1998).
Id. at 6.
In this regard, the commonly accepted definition of "retail" is "the sale of goods to ultimate consumers, usually in small quantities (opposed to wholesale)." Random House Webster's UnabridgedDictionary (2nd ed. 2001), at 1642. See also Black's Law Dictionary (8th ed. 2004), at 1341 (defining "retail" as "[t]he sale of goods or commodities to ultimate consumers, as opposed to the sale for further distribution or processing"); Wiseman v. ArkansasWholesale Grocers' Association,
Although I cannot provide a controlling definition of a term undefined by the General Assembly, the foregoing should be of assistance in understanding the meaning of the word "retail."
Question 3 — Would "retail" include only the four major cities as setout above, or would it include other smaller cities that purchase waterfrom these four cities?
In my opinion the service area described in A.C.A. §
The answer to this question may depend on the proper construction of the word "customers" and other language in the subsection, in addition to the word "retail." Again, board members in regional water districts comprised of less than four counties are elected from the "service areas" of the "customers" of the district. That service area is defined as the area in which the "customers" provide retail water or other services that they have purchased from the district. A.C.A. §
It appears that this language includes only the area in which the cities purchasing water from the district provide "retail" water or "other services." I am not a finder of fact in the issuance of Attorney General opinions. Based upon the information that you have provided, however, the four major cities you describe clearly appear to be "customers" of the district. A "customer" is generally defined as "a person who purchases goods or services from another; buyer; patron." Random House Webster's New Collegiate Dictionary, supra at 494. The other smaller cities that purchase water from the four major cities do not appear to be "customers" of the Beaver Water District. Under the facts you describe, they instead purchase their water from one of the four major cities. In addition, the service area described in A.C.A. §
Question 4 — Would "retail" include smaller cities or other waterentities that purchase water from Two Ton?
Again, I am not a fact-finder in the issuance of Attorney General opinions. The resolutions of your questions may require resort to the particular facts. It is my understanding, however, that "Two-Ton" (the Benton-Washington Regional Public Water Authority), purchases water from the Beaver Water District, but does not itself provide any retail water services.2 See www.bwrpwa.com ("Our Customers") (noting that "Two Ton's" customers are "all municipal type utilities that sell water to residential, commercial and industrial customers" and that the Authority "does not sell water to residential customers"). As a consequence, for purposes of applying the definition of "service area" referred to in A.C.A. §
Question 5 — What is meant by the term "other service" and how doesthis clause affect the answer to any of the above questions?
This issue is unclear under the language of the Act. The words "other services" could have a very important impact upon the answers to the questions above, depending upon how the words are construed. I have answered the questions above with the assumption that the definition of "service area" is restricted to the area of "retail" provision of water or "other services." In that regard, my answers above are based upon the assumption that the word "retail" modifies both the words "water" and "other services" — i.e., that any services provided must be "retail" for purposes of defining the applicable service area. If this assumption is incorrect, and the words "other services" are not restricted to retail services, then the applicable service area under the statute might include areas where the District's customers provide "wholesale" services, thus possibly including the smaller cities supplied by the four major cities and the cities supplied by Two-Ton. In my opinion, however, the word "retail" modifies both the word "water" and the words "other services."
In determining what meaning to ascribe the term "other services" as used in A.C.A. §
Another construction aid is the principle of interpretation known as "noscitur a sociis." This doctrine translates literally to "it is known from its associates." Practically applied, it means that a word can be defined by the accompanying words. See generally McKinney v.Robbins,
Although I cannot state conclusively what exact "other services" were contemplated by the General Assembly in adopting
Question 6 — Can this Act lawfully restrict the Board membership insuch a manner? (Previously anyone residing in the district could hold aposition on the board).
It is axiomatic that the legislature has absolute power to legislate in all fields unless it is expressly or by necessary implication denied that power by the Arkansas or United States Constitution. See, e.g.,Erxleben v. Horton Printing Co.,
I am unaware of any facial constitutional challenges that might be brought against
With regard to any "as applied" constitutional challenges, I cannot analyze that question in the absence of all relevant facts. Although your sixth question inquires about the restriction as to "Board membership" (presumably referring to the required residence of board members), the amendments made by
Question 7 — What is meant by the term "service area" as far aseligibility to vote in an election for a Board seat is concerned? (Canall the voters in the entire district vote? From what source are theCounty Clerks and/or the County Election Commission to look to determine"service areas?" Can they require the Beaver Water District to providethis information to them?)
In response to the first part of this question, the term "service area" is explained in the Act as meaning ". . . the area within the boundaries of the water district to which the customers of the district currently provide retail water or other services that they have purchased from the district." A.C.A. §
Deputy Attorney General Elana C. Wills prepared the foregoing opinion, which I hereby approve.
Sincerely,
DUSTIN McDANIEL, Attorney General
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