# Arkansas Act 435 of 2021 - municipal purchasing and Ark. Code Ann. section 14-58-104 > *Archived legal-authority source. The public original was independently acquired and preserved on 2026-08-10.* ## Source metadata - **Publisher or court:** Arkansas General Assembly - **URL:** https://arkleg.state.ar.us/Home/FTPDocument?path=%2FACTS%2F2021R%2FPublic%2FACT435.pdf - **Resolved URL:** https://arkleg.state.ar.us/Home/FTPDocument?path=%2FACTS%2F2021R%2FPublic%2FACT435.pdf - **Archived:** 2026-08-10, from unauthenticated public access - **Wayback snapshot:** save failed 2026-08-10; retry pending - **Source class:** primary public record or court opinion ## Proposition boundary Municipal cooperative-purchase and single-source exceptions; local form line numbers are not statutory subsection citations. An archive-quality official text URL remains to be located. ## Extract ### Page 1 Stricken language would be deleted from and underlined language would be added to present law. Act 435 of the Regular Session *KLL044* 3/2/2021 1:53:20 PM KLL044 State of Arkansas 1 93rd General Assembly A Bill 2 Regular Session, 2021 SENATE BILL 456 3 4 By: Senator G. Stubblefield 5 By: Representative L. Fite 6 7 For An Act To Be Entitled 8 AN ACT TO AMEND THE LAW CONCERNING COMPETITIVE 9 BIDDING AND PURCHASING PROCEDURES FOR COUNTIES AND 10 MUNICIPALITIES; AND FOR OTHER PURPOSES. 11 12 13 Subtitle 14 TO AMEND THE LAW CONCERNING COMPETITIVE 15 BIDDING AND PURCHASING PROCEDURES FOR 16 COUNTIES AND MUNICIPALITIES. 17 18 19 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20 21 SECTION 1. Arkansas Code § 14-22-102 is amended to read as follows: 22 14-22-102. Applicability. 23 (a) It is unlawful for any a county official to make any purchases a 24 purchase with county funds in excess of twenty thousand dollars ($20,000) 25 thirty-five thousand dollars ($35,000), unless the method of purchasing 26 prescribed in under this chapter is followed. 27 (b) This chapter shall does not apply to any purchases a purchase 28 under twenty thousand dollars ($20,000) thirty-five thousand dollars 29 ($35,000) or to the purchase of commodities set forth in under § 14-22-106. 30 (c)(1) Beginning January 1, 2025, and on each January 1 at subsequent 31 five-year intervals, the amounts under subsections (a) and (b) of this 32 section shall be adjusted to reflect the percentage increase in the Consumer 33 Price Index for All Urban Consumers or its successor, as published by the 34 United States Department of Labor for the five (5) years immediately 35 preceding the percentage increase, and rounded to the nearest whole number. 36 ### Page 2 SB456 2 3/2/2021 1:53:20 PM KLL044 (2) Following a percentage increase under subdivision (c)(1) of 1 this section, the Department of Finance and Administration shall provide each 2 county and Arkansas Legislative Audit with the percentage increase and the 3 corresponding updated amounts under this section. 4 5 SECTION 2. Arkansas Code § 14-22-104 is amended to read as follows: 6 14-22-104. Purchases permitted. 7 All purchases of commodities (a) A purchase of a commodity made by any 8 a county purchasing official with county funds, except those specifically 9 exempted by this chapter, shall be made as follows: 10 (1) Formal bidding shall be is required in each instance in 11 which the estimated purchase price shall equal or exceed twenty thousand 12 dollars ($20,000) equals or exceeds thirty-five thousand dollars ($35,000); 13 (2) Open An open market purchases purchase may be made of any 14 commodities where a commodity if the purchase price is less than twenty 15 thousand dollars ($20,000) thirty-five thousand dollars ($35,000); and 16 (3) No A purchasing official shall not parcel or split any items 17 of commodities or estimates with the intent or purpose to change the 18 classification or to enable the purchase to be made under a less restrictive 19 procedure. 20 (b)(1) Beginning January 1, 2025, and on each January 1 at subsequent 21 five-year intervals, the amount under subsection (a) of this section shall be 22 adjusted to reflect the percentage increase in the Consumer Price Index for 23 All Urban Consumers or its successor, as published by the United States 24 Department of Labor for the five (5) years immediately preceding the 25 percentage increase, and rounded to the nearest whole number. 26 (2) Following a percentage increase under subdivision (b)(1) of 27 this section, the Department of Finance and Administration shall provide each 28 county and Arkansas Legislative Audit with the percentage increase and the 29 corresponding updated amounts under this section. 30 31 SECTION 3. Arkansas Code § 14-22-106(17), concerning county commodity 32 purchases exempted from bid solicitation, is amended to read as follows: 33 (17)(A) New motor vehicles purchased from a licensed automobile 34 dealership located in Arkansas for an amount not to exceed the fleet price 35 awarded by the Office of State Procurement and in effect at the time the 36 ### Page 3 SB456 3 3/2/2021 1:53:20 PM KLL044 county submits the purchase order for the same make and model motor vehicle, 1 which may include additional options that were available for bid and 2 purchased under state contract at the state bid option price. 3 (B) The purchase amount for a new motor vehicle may 4 include additional options after-market equipment that was not available 5 under the state contract up to six hundred dollars ($600) one thousand two 6 hundred dollars ($1,200) over the fleet price awarded; 7 8 SECTION 4. Arkansas Code § 14-58-104 is amended to read as follows: 9 14-58-104. Specific purchases and contracts — Commodities. 10 (a) The municipal governing body of a city of the first class, city of 11 the second class, or an incorporated town may purchase the following 12 commodities without soliciting bids: 13 (1) Motor fuels, oil, asphalt, asphalt oil, and natural gas; and 14 (2) New motor vehicles from a motor vehicle dealer licensed 15 under the Arkansas Motor Vehicle Commission Act, § 23-112-101 et seq., if the 16 motor vehicle is purchased for an amount not to exceed the fleet price 17 awarded by the Office of State Procurement and in effect at the time the 18 municipal governing body of a city of the first class, city of the second 19 class, or an incorporated town submits the purchase order for the same make 20 and model motor vehicle. Perishable foodstuffs for immediate use; 21 (2) Unprocessed feed for livestock and poultry; 22 (3) Advanced emergency medical services provided by a nonprofit 23 corporation and proprietary medicines if specifically requested by a 24 professional employee; 25 (4) Books, manuals, periodicals, films, and copyrighted 26 educational aids for use in libraries and other informational material for 27 institutional purposes; 28 (5) Scientific equipment and parts; 29 (6) Replacement parts and labor for repairs of machinery and 30 equipment; 31 (7) Commodities available only from the United States 32 Government; 33 (8)(A) Any commodities needed in instances in which an 34 unforeseen and unavoidable emergency has arisen in which human life, health, 35 or public property is in jeopardy. 36 ### Page 4 SB456 4 3/2/2021 1:53:20 PM KLL044 (B) An emergency purchase under subdivision (8)(A) of this 1 section shall not be approved unless a statement in writing is attached to 2 the purchase order describing the emergency necessitating the purchase of the 3 commodity without competitive bidding; 4 (9) Utility services, purchased at wholesale or the rates for 5 which are subject to regulation by a state agency or a federal regulatory 6 agency; 7 (10) Sand, gravel, soil, lumber, used pipe, or used steel; 8 (11)(A) Used or secondhand motor vehicles, machinery, or 9 equipment. 10 (B) A used or secondhand motor vehicle that has been under 11 lease to a municipality and has fewer than five thousand (5,000) miles of use 12 shall not be purchased except upon competitive bids as provided in this 13 chapter; 14 (12) Machinery, equipment, facilities, or other personal 15 property purchased or acquired for or in connection with the securing and 16 developing of industry under the Municipalities and Counties Industrial 17 Development Revenue Bond Law, § 14-164-201 et seq., or any other provision of 18 law pertaining to the securing and developing of industry; 19 (13) Registered livestock to be used for breeding purposes; 20 (14) Motor fuels, oil, asphalt, asphalt oil, and natural gas; 21 (15) Motor vehicles, equipment, machinery, material, or supplies 22 offered for sale at public auction or through a process requiring sealed 23 bids; 24 (16) All goods and services that are regularly provided to state 25 agencies and municipal government by the Division of Correction's various 26 penal industries; 27 (17)(A) New motor vehicles purchased from a licensed automobile 28 dealership located in Arkansas for an amount not to exceed the fleet price 29 awarded by the Office of State Procurement and in effect at the time the 30 municipality submits the purchase order for the same make and model motor 31 vehicle. 32 (B) The purchase amount for a new motor vehicle may 33 include additional options up to six hundred dollars ($600) over the fleet 34 price awarded; 35 (18) Renewal or extension of the term of an existing contract; 36 ### Page 5 SB456 5 3/2/2021 1:53:20 PM KLL044 (19) Purchase of insurance for municipal employees, including 1 without limitation health insurance, workers' compensation insurance, life 2 insurance, risk management services, or dental insurance; 3 (20) Goods or services if the governing body has approved by 4 resolution the purchase of goods or services through competitive bidding or 5 procurement procedures used by: 6 (A) The United States Government or one (1) of its 7 agencies; 8 (B) Another state; or 9 (C) An association of governments or governmental 10 agencies, including associations of governments or governmental agencies 11 below the state level; and 12 (21)(A) Goods or services available only from a single source. 13 (B) A purchase under this subdivision (21) shall be 14 supported with: 15 (i) Documentation concerning the exclusivity of the 16 single source; and 17 (ii) A written proclamation from the chief executive 18 filed with the clerk or recorder that sets forth the basis for the single 19 source procurement. 20 (b) The municipal governing body of a city of the first class, city of 21 the second class, or an incorporated town may renew or extend the term of an 22 existing contract without soliciting bids. 23 24 SECTION 5. Arkansas Code § 14-58-303(b), concerning municipal 25 purchases and contracts, is amended to read as follows: 26 (b)(1)(A) Except as provided under § 14-58-104, the municipal 27 governing body of any city of the first class shall provide by ordinance the 28 procedure for making all purchases which that do not exceed the sum of twenty 29 thousand dollars ($20,000) thirty-five thousand dollars ($35,000). 30 (B) Except as provided under § 14-58-104, the municipal 31 governing body of any city of the second class or incorporated town may 32 provide by ordinance the procedure for making all purchases. 33 (2)(A)(i) Except as provided under § 14-58-104, in a city of the 34 first class where in which the amount of expenditure for any purpose or 35 contract exceeds the sum of twenty thousand dollars ($20,000) thirty-five 36 ### Page 6 SB456 6 3/2/2021 1:53:20 PM KLL044 thousand dollars ($35,000), the mayor or the mayor's authorized 1 representative shall invite competitive bidding on the purpose or contract by 2 legal advertisement in any local newspaper. 3 (ii) Bids received pursuant to the advertisement 4 shall be opened and read on the date set for receiving the bids in the 5 presence of the mayor or the mayor's authorized representative. 6 (iii) The mayor or the mayor's authorized 7 representative shall have has exclusive power to award the bid to the lowest 8 responsible bidder, but and may reject any and all bids received. 9 (B) The governing body by ordinance resolution may waive 10 the requirements of competitive bidding in exceptional situations where this 11 procedure is deemed not feasible or practical or as provided under § 14-58- 12 104. 13 (C) Cities of the first class, cities of the second class, 14 and incorporated towns may accept competitive bids in the following forms: 15 (i) Written; or 16 (ii) Electronic media. 17 (3)(A) Beginning January 1, 2025, and on each January 1 at 18 subsequent five-year intervals, the amounts under this subdivision shall be 19 adjusted to reflect the percentage increase in the Consumer Price Index for 20 All Urban Consumers or its successor, as published by the United States 21 Department of Labor for the five (5) years immediately preceding the 22 percentage increase, and rounded to the nearest whole number. 23 (B) Following a percentage increase under subdivision 24 (c)(1) of this section, the Department of Finance and Administration shall 25 provide each city of the first class and Arkansas Legislative Audit with the 26 percentage increase and the corresponding updated amounts under this section. 27 28 SECTION 6. Arkansas Code § 14-58-304 is amended to read as follows: 29 14-58-304. Purchase of insurance. 30 The Except as provided under § 14-58-104, the purchase of all types of 31 insurance by cities of the first class, cities of the second class, or 32 incorporated towns shall be is governed by the provisions of § 14-58-303. 33 34 SECTION 7. Arkansas Code § 14-58-305(a), concerning municipal payment 35 of claims, is amended to read as follows: 36 ### Page 7 SB456 7 3/2/2021 1:53:20 PM KLL044 (a) In a city of the first class, city of the second class, or 1 incorporated town, the mayor or his duly authorized representative may 2 approve or disapprove for payment out of funds previously appropriated for 3 that purpose, or disapprove, any bills, debts, or liabilities asserted as 4 legal claims asserted or brought against the city or town. 5 6 SECTION 8. Arkansas Code § 14-58-303 is amended to read as follows: 7 14-58-308. Bonds of officers and employees. 8 (a) All officers and employees of a city of the first class, city of 9 the second class, or incorporated town handling financial matters for the 10 city or town shall furnish a fidelity bond in such amount, on such form, and 11 with such security as may be approved by the municipal governing body. 12 (b) The premiums on these bonds shall be paid by the city or town. 13 14 15 APPROVED: 3/24/21 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 **Wayback failure**: Save Page Now did not return a response during the bounded 2026-08-10 capture pass. Retry pending. ## Notes - Tier: 2 - primary public record or court opinion. - Cited by: [[ALPR Procurement Below the Appropriation Line]], [[Arkansas Municipal County and State Cooperative Procurement Law]], [[Competitive-Bid Exemption (Sole-Source Procurement)]], [[Cooperative Purchasing Vehicle]], [[Sole-Source Procurement Language Avoidance]], [[The Genetec-to-Flock Pre-Flock Transition]], [[Vendor-Imposed Secrecy as Procurement Routine]].