(a) As used in this section, "responsible management entity" means a wastewater treatment system service provider organized and operating under this section.

(b) A nonprofit corporation formed for the purpose of providing responsible management of wastewater treatment systems where municipal sewer service is not available shall operate in accordance with § 14-250-113 and have the powers set forth in § 14-250-111.

(c) Any of the following may enter into an agreement to become a responsible management entity for the purpose of providing responsible management of wastewater treatment systems, including community sewer systems and groups of septic systems in a contiguous development where municipal sewer service is not available:

(1) A political subdivision of the state;

(2) A district or an authority formed under the Joint County and Municipal Solid Waste Disposal Act, § 14-233-101 et seq., or § 8-6-723;

(3) A nonprofit corporation formed for the purpose of providing responsible management of wastewater treatment systems; or

(4) A rural water association.

(d)

(1) Any installation, operation, or maintenance performed on a wastewater treatment system on behalf of a responsible management entity shall be done in compliance with the Arkansas Water and Air Pollution Control Act, § 8-4-101 et seq., and the regulations of the Arkansas Pollution Control and Ecology Commission as administered by the Arkansas Department of Environmental Quality or its successor and the Department of Health or its successor.

(2) A responsible management entity must also ensure that all appropriate operator licenses are current and any continuing education requirements are fulfilled.

(e) (1) A developer constructing a new wastewater treatment system where municipal sewer service is not available may transfer all liabilities for the wastewater treatment system to a responsible management entity if:

(A) Before the construction of a wastewater treatment system begins, the developer secures written approval of the proposed wastewater treatment system from the Department of Health and complies with all applicable permitting requirements, including stormwater, through the Arkansas Department of Environmental Quality pursuant to the Arkansas Water and Air Pollution Control Act, § 8-4-101 et seq., and the regulations of the Arkansas Pollution Control and Ecology Commission;

(B) Covenants are contained in the deed for the wastewater treatment system requiring payment of reasonable fees by the purchaser to the responsible management entity for ongoing operations and maintenance of the system; and

(C) Ownership of the wastewater treatment system is transferred to the responsible management entity upon completion.

(2) Under no circumstances shall the liability for fraud or negligence on the part of the developer be transferred.