(a)

1. (1) Prior to acquiring rural water or wastewater service properties, facilities, and customers pursuant to Arkansas Code § 14-208-102, a municipality shall receive approval from the Arkansas Natural Resources Commission that the action complies with the Arkansas Water Plan.
2. (2) Similarly, a municipality containing an area within its corporate limits that is served by another municipality may elect to purchase the other municipality's customers, distribution or collection properties, and facilities located within the acquiring municipality using the same procedures applicable to municipalities acquiring properties, facilities, and customers from rural systems.

(b) Both systems, the one (1) doing the acquiring and the one (1) being partially or wholly acquired, shall submit a written proposal using the factors in 15 CAR § 22-503(d) to the Director of the Arkansas Natural Resources Commission, addressing:

1. (1) The amount of consideration to be paid to the rural service or municipality whose customers or facilities are being acquired for the proposed acquisition; and
2. (2) Any costs attributable to the negotiation or appraisal.

(d) The commission shall:

1. (1) Approve the application under the plan if it determines the requirements of 15 CAR § 22-503 are satisfied;
2. (2) Deny the application under the Arkansas Water Plan if it determines the requirements of 15 CAR § 22-503 are not satisfied; or
3. (3) Issue a letter to the municipality that the proposed action is exempt from review under the Arkansas Water Plan.