2017 Legislative Session Summary · 2017-12-27 · 2017 Legislative Session Summary Act Description...

2017 Legislative Session Summary

Act Description

170 An act to clarify how a municipality may accept competitive bids; Allows cities to accept bids electronically (e-Procurement system)

470 To clarify the law regarding the sale, lease, purchasing, and disposal of real and personal property of municipalities

609 To amend the Arkansas Procurement Law; to amend the definitions used under Arkansas Procurement Law; To exempt certain commodities and services under the Arkansas Procurement Law

627 An act concerning procurement procedures for municipal sewage systems; allows municipalities to conduct design build bids

696 To expand the ability of the State to negotiate contracts; To define collusion under Arkansas Procurement Law; and to require the review of a contract before it is ratified or affirmed

710 An act to prohibit public entities from contracting with and investing in companies that boycott Israel

725 An act to amend the award procedure for public improvement contracts; Raises the bid requirement threshold to thirty-five thousand dollars ($35,000) for construction work under A.C.A. § 22-9-202

882 An act to clarify the resolution of protested solicitation and awards under Arkansas Procurement Law

1004 An act to amend the Arkansas Procurement Law to reflect the impact of inflation on the cost of goods and services and to encourage more participation by small businesses; Raises the small procurement limit to $20,000 and the competitive sealed bidding limit to $75,000

1080 To amend the Minority Business Economic Development Act; Adds women-owned businesses and changes the spending goals for minority business spend

1124 To raise the price threshold for the purchase of commodities that school districts must procure by soliciting bids

2017 Legislative Session Summary

Act Description

170 Allows cities to accept bids electronically (e-Procurement system)

470 To clarify the law regarding the sale, lease, purchasing, and disposal of real and personal property of municipalities

609 To amend the Arkansas Procurement Law; to amend the definitions used under Arkansas Procurement Law; To exempt certain commodities and services under the Arkansas Procurement Law

627 An act concerning procurement procedures for municipal sewage systems; allows municipalities to conduct design build bids

696 To expand the ability of the State to negotiate contracts; To define collusion under Arkansas Procurement Law; and to require the review of a contract before it is ratified or affirmed

710 An act to prohibit public entities from contracting with and investing in companies that boycott Israel

Stricken language would be deleted from and underlined language would be added to present law.

Act 170 of the Regular Session

*KLC023* 01-18-2017 13:32:26 KLC023

State of Arkansas 1

91st General Assembly A Bill 2

Regular Session, 2017 HOUSE BILL 1220 3

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By: Representative J. Williams 5

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For An Act To Be Entitled 7

AN ACT TO CLARIFY HOW A MUNICIPALITY MAY ACCEPT 8

COMPETITIVE BIDS; AND FOR OTHER PURPOSES. 9

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Subtitle 12

AN ACT TO CLARIFY HOW A MUNICIPALITY MAY 13

ACCEPT COMPETITIVE BIDS. 14

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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 17

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SECTION 1. Arkansas Code § 14-47-138(a), concerning competitive 19

bidding in a city manager form of government, is amended to read as follows: 20

(a)(1) Before making any a purchase of or contract for any supplies, 21

materials, or equipment, and before obligating the city under any a contract 22

for the performance of services or for the construction of municipal 23

improvements, where in which the anticipated cost to the city of the 24

transaction exceeds the maximum amount established by the board of directors 25

under the authority of § 14-47-120, opportunity for competitive bidding shall 26

be given under such rules and regulations as the board may prescribe by 27

ordinance, and the contract shall be consummated only on a bid approved by 28

the city manager and by the board. 29

(2) Competitive bids may be accepted in the form of a written 30

bid or by electronic media. 31

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SECTION 2. Arkansas Code § 14-58-303(b)(2), concerning purchases and 33

contracts, is amended to add an additional subdivision to read as follows: 34

(C) Cities of the first class, cities of the second class, 35

and incorporated towns may accept competitive bids in the following forms: 36

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(i) Written; or 1

(ii) Electronic media. 2

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APPROVED: 02/15/2017 5

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*KLC020* 02-10-2017 08:15:46 KLC020

State of Arkansas 1


Regular Session, 2017 SENATE BILL 336 3

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By: Senator Irvin 5

By: Representative Baltz 6

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AN ACT TO CLARIFY THE LAW REGARDING THE SALE, LEASE, 9

PURCHASING, AND DISPOSAL OF REAL AND PERSONAL 10

PROPERTY OF MUNICIPALITIES; AND FOR OTHER PURPOSES. 11

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Subtitle 14

TO CLARIFY THE LAW REGARDING THE SALE, 15

LEASE, PURCHASING, AND DISPOSAL OF REAL 16

AND PERSONAL PROPERTY OF MUNICIPALITIES. 17

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SECTION 1. Arkansas Code § 14-54-302 is amended to read as follows: 22

14-54-302. Purchase, lease, and sale, and disposal authorized. 23

(a)(1) Municipal corporations are empowered and authorized to A 24

municipality may: 25

(1) sell Sell, convey, lease, rent, or let, or dispose any real 26

estate or personal property owned or controlled by the municipal 27

corporations. This power and authorization shall extend and apply to all such 28

real estate and personal property, including that which municipality, 29

including real estate or personal property that is held by the municipal 30

corporation municipality for public or governmental uses and purposes.; 31

(2) Municipal corporations are empowered and authorized to buy 32

Buy any real estate or personal property.; and 33

(b)(1)(3)(A) Municipal corporations are also empowered and authorized 34

to donate Donate real estate or personal property, or any part thereof of the 35

real estate or personal property, to the federal government or any agency 36

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thereof of the federal government, for any one (1) or more of the following 1

purposes, that is, having the real estate, or personal property, or both, 2

activated, reactivated, improved, or enlarged by the donee. 3

(2)(A)(B) The municipal corporation municipality may donate the 4

fee simple title and absolute interest, without any reservations or 5

restrictions, in and to all real estate, or personal property, or both, or 6

any part of the real estate or personal property, to the federal government, 7

if this real estate or personal property was previously conveyed or otherwise 8

transferred by the federal government to the municipal corporation 9

municipality without cost to the municipal corporation municipality. 10

(B)(C) All other donation instruments shall contain 11

provisions by which the title to the property donated shall revert to the 12

municipal corporation municipality when the donated property is no longer 13

used by the donee for the purposes for which it was donated. 14

(c)(b) The execution of all contracts and conveyances and lease 15

contracts shall be performed by the mayor and city clerk or recorder, when 16

authorized by a resolution in writing and approved by a majority vote of the 17

city council governing body of the municipality present and participating. 18

(c) The mayor or his or her authorized representative may sell or 19

exchange any municipal real estate or personal property with a value of 20

twenty thousand dollars ($20,000) or less, unless the governing body of the 21

municipality shall by ordinance establish a lesser amount. 22

(d) Municipal real estate or personal property to be disposed of as 23

one (1) unit shall not be sold without competitive bidding if the amount 24

exceeds twenty thousand dollars ($20,000) or the maximum provided by 25

resolution, unless the mayor certifies in writing to the governing body of 26

the municipality that in his or her opinion the fair market value of the item 27

or lot is less than the amount established by ordinance. 28

(e)(1) If personal property of the municipality becomes obsolete or is 29

no longer used by a municipality, the personal property may be: 30

(A) Sold at public or internet auction; 31

(B) Sent to the Department of Finance and Administration's 32

Marketing and Redistribution Section; 33

(C) Transferred to another governmental entity within the 34

state; or 35

(D) Donated under this section. 36

SB336

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(2) If an item of personal property is not disposed of under 1

subdivision (e)(1) of this section, the item may be disposed of in the 2

landfill used by the municipality if the mayor or his or her authorized 3

representative certifies in writing and the governing body of the 4

municipality approves that: 5

(A) The item has been rendered worthless by damage or 6

prolonged use; or 7

(B) The item has: 8

(i) Only residual value; and 9

(ii) Been through public auction and not sold. 10

(f)(1) A record shall be maintained of all items of personal property 11

disposed of under this section and reported to the governing body of the 12

municipality. 13

(2) The municipal fixed asset listing shall be amended to 14

reflect all disposal of real estate and personal property made under this 15

section. 16

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SECTION 2. Arkansas Code § 14-58-306 is repealed. 18

14-58-306. Disposal of municipal supplies, etc. 19

(a) In a city of the first class, city of the second class, or 20

incorporated town, the mayor or his or her authorized representative may sell 21

or exchange any municipal supplies, materials, or equipment with a value of 22

twenty thousand dollars ($20,000) or less, unless the municipal governing 23

body shall, by ordinance, establish a lesser amount. 24

(b) No item or lot of supplies, material, or equipment that is to be 25

disposed of as one (1) unit shall be sold without competitive bidding if the 26

amount exceeds twenty thousand dollars ($20,000) or the maximum provided by 27

ordinance, unless the mayor shall certify in writing to the governing body 28

that, in his or her opinion, the fair market value of the item or lot is less 29

than the amount established by ordinance as indicated. 30

(c)(1) If an item of personal property belonging to a municipality 31

becomes obsolete or is no longer used by a municipality, it may be: 32

(A) Sold at public or Internet auction; 33

(B) Sent to the Marketing and Redistribution Section of 34

the Office of State Procurement of the Department of Finance and 35

Administration; or 36

SB336

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(C) Transferred to another governmental entity within the 1

state. 2

(2) If an item is not disposed of under subdivision (c)(1) of 3

this section, the item may be disposed of in the landfill used by the 4

municipality if the mayor or his or her authorized representative certifies 5

in writing and the governing body of the municipality approves that it has: 6

(A) Been rendered worthless by damage or prolonged use; or 7

(B)(i) Only residual value; and 8

(ii) Been through public auction and not sold. 9

(d)(1) A record shall be maintained of all items disposed of and 10

reported to the governing body. 11

(2) The municipal fixed asset listing shall be amended to 12

reflect all disposal of property made under this section. 13

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APPROVED: 03/13/2017 16

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*JLL170* 02-20-2017 16:33:32 JLL170

State of Arkansas As Engrossed: S3/1/17 1



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By: Senators Hester, J. Hendren 5

By: Representative Wardlaw 6

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AN ACT TO AMEND THE ARKANSAS PROCUREMENT LAW; TO 9

AMEND THE DEFINITIONS USED UNDER THE ARKANSAS 10

PROCUREMENT LAW; TO EXEMPT CERTAIN COMMODITIES AND 11

SERVICES UNDER THE ARKANSAS PROCUREMENT LAW; AND FOR 12

OTHER PURPOSES. 13

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Subtitle 16

TO EXEMPT CERTAIN COMMODITIES AND 17

SERVICES UNDER THE ARKANSAS PROCUREMENT 18

LAW. 19

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SECTION 1. Arkansas Code § 19-11-203(14), concerning the definition of 24

"exempt commodities and services" under the Arkansas Procurement Law, is 25

amended to add an additional subdivision to read as follows: 26

(EE) Commodities and services purchased by an academic 27

medical center using revenue derived from and used for patient care and 28

hospital enterprises; 29

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SECTION 2. Arkansas Code § 19-11-203(23), concerning the definitions 31

used under the Arkansas Procurement Law, is amended to read as follows: 32

(23)(A) “Public funds” means all state-appropriated and cash 33

funds of state agencies, as defined by applicable law or official ruling. 34

(B) Without necessarily being limited thereto, “public 35

funds” does not include grants,: 36

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As Engrossed: S3/1/17 SB380

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(i) Grants, donations, research derived from self-1

supporting enterprises which that are not operated as a primary function of 2

the agency, no part of which funds are deposited into the State Treasury; and 3

(ii) Revenue derived from patient care and self-4

supporting hospital enterprises of an academic medical center; 5

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/s/Hester 7

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APPROVED: 03/23/2017 10

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*KLC176* 02-20-2017 08:40:25 KLC176

State of Arkansas As Engrossed: H3/7/17 1



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By: Representatives Bragg, Davis, Della Rosa, Penzo 5

By: Senators L. Eads, J. Hutchinson 6

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AN ACT CONCERNING PROCUREMENT PROCEDURES FOR 9

MUNICIPAL SEWAGE SYSTEMS; AND FOR OTHER PURPOSES. 10

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Subtitle 13

CONCERNING PROCUREMENT PROCEDURES FOR 14

MUNICIPAL SEWAGE SYSTEMS. 15

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SECTION 1. Arkansas Code Title 14, Chapter 235, Subchapter 2, is 20

amended to add an additional section to read as follows: 21

14-235-226. Public improvements — Award procedure — Definitions. 22

(a) As used in this section: 23

(1) “Design-build” means a project delivery method in which the 24

municipal sewage system acquires both design and construction services in the 25

same contract from a single legal entity, referred to as the “design-26

builder", through a two-step procurement process in which the: 27

(A) First step is based on qualifications; and 28

(B) Second step is based on best value to the municipal 29

sewage system as defined by: 30

(i) Lowest capital cost; 31

(ii) Lowest life-cycle cost; or 32

(iii) A combination of lowest capital cost and 33

lowest life-cycle cost; 34

(2) “Design-builder” means an individual, partnership, joint 35

venture, corporation, or other legal entity licensed in this state that 36

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As Engrossed: H3/7/17 HB1645

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furnishes the necessary design services and construction itself or through 1

subcontracts; and 2

(3)(A) “General contractor construction management” means a 3

project delivery method acquired through a qualifications-based selection 4

process in which the municipal sewage system acquires from a construction 5

entity a series of preconstruction phase services, including without 6

limitation design review, scheduling, cost control, value engineering, 7

constructability and biddability evaluation, and preparation and coordination 8

of bid packages. 9

(B)(i) After the completion of the preconstruction phase 10

services, the construction entity serves as the general contractor. 11

(ii) The general contractor under subdivision 12

(a)(3)(B)(i) of this section shall hold all trade contracts and purchase 13

orders and shall bond and guarantee the project after providing a maximum 14

guaranteed price, unless the general contractor and municipal sewage system 15

are unable to mutually agree on a maximum guaranteed price for the project 16

construction and which shall require the project construction to be 17

competitively bid as provided by law. 18

(b)(1) In addition to other applicable law on a municipal sewage 19

system’s procurement authority, a municipal sewage system created and 20

operating under this subchapter that employs or contracts with a licensed 21

professional engineer to assist in project-scope development and to oversee 22

construction observation for the benefit of the owner may use design-build 23

construction for projects that exceed two million dollars ($2,000,000). 24

(2) In addition to other applicable law on a municipal sewage 25

system’s procurement authority, a municipal sewage system created and 26

operating under this subchapter may use general contractor construction 27

management as a project delivery method for projects of any amount for 28

building, altering, repairing, improving, maintaining, or demolishing any 29

structure associated with the municipal sewage system. 30

(3) The design-builder shall contract directly with 31

subcontractors and shall be responsible for the bonding of the project. 32

(4) A project using design-build construction or general 33

contractor construction management shall comply with state and federal law. 34

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APPROVED: 03/24/2017 2

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*JLL157* 02-24-2017 08:41:57 JLL157

State of Arkansas As Engrossed: S3/13/17 H3/17/17 1



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By: Senator Hester 5


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PROMOTE EFFICIENCY IN STATE PROCUREMENT BY EXPANDING 10

THE ABILITY OF THE STATE TO NEGOTIATE CONTRACTS; TO 11

DEFINE "COLLUSION" UNDER ARKANSAS PROCUREMENT LAW; TO 12

REQUIRE REVIEW OF A CONTRACT BEFORE IT IS RATIFIED OR 13

AFFIRMED; AND FOR OTHER PURPOSES. 14

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Subtitle 17

TO EXPAND THE ABILITY OF THE STATE TO 18

NEGOTIATE CONTRACTS; TO DEFINE 19

"COLLUSION" UNDER ARKANSAS PROCUREMENT 20

LAW; AND TO REQUIRE REVIEW OF A CONTRACT 21

BEFORE IT IS RATIFIED OR AFFIRMED. 22

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SECTION 1. Arkansas Code § 19-11-229(h)(2), concerning competitive 27

sealed bidding, is amended to read as follows: 28

(2)(A) In the event all bids exceed available funds as certified 29

by the appropriate fiscal officer in situations in which time or economic 30

considerations preclude resolicitation of work of a reduced scope, the Except 31

with respect to a contract being procured for a construction project, the 32

director or the head of a procurement agency may negotiate an adjustment of 33

the a lower bid price, including changes in the bid requirements, with the 34

lowest responsive and responsible bidder, in order to bring the bid within 35

the amount of available funds if: 36

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(i) All bids received from responsive and 1

responsible bidders exceed available funding as certified by the appropriate 2

fiscal officer of the procurement agency; or 3

(ii) It appears that additional savings to the state 4

may result from negotiation. 5

(B)(i)(a) If negotiations with the lowest responsive and 6

responsible bidder conducted under subdivision (h)(2)(A) of this section fail 7

to result in a lower bid price, the state may negotiate for a lower bid price 8

with the next lowest responsive and responsible bidder. 9

(b) If negotiations with the next lowest 10

responsive and responsible bidder under subdivision (h)(2)(B)(i)(a) of this 11

section fail to result in a lower bid price, the state may negotiate for a 12

lower bid price with the next lowest responsive and responsible bidder until 13

an acceptable lower bid price is negotiated or the state determines that 14

negotiations are no longer in the best interest of the state. 15

(ii) A bid price resulting from negotiations 16

conducted under this section shall not be higher than: 17

(a) The bid price originally submitted by the 18

lowest responsive and responsible bidder; or 19

(b) A price previously offered in negotiations 20

by a responsive and responsible bidder. 21

(iii) Negotiations conducted under this section do 22

not preclude the use of other methods of source selection or procurement 23

authority provided under this subchapter. 24

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SECTION 2. Arkansas Code § 19-11-230(e), concerning competitive sealed 26

proposals, is amended to read as follows: 27

(e)(1) As provided in the request for proposals and under regulations 28

rule, discussions may be conducted with responsible offerors who submit 29

proposals determined to be reasonably susceptible of being selected for award 30

for the purpose of clarification: 31

(A) Clarifying solicitation requirements to assure full 32

understanding of, and responsiveness to, the solicitation requirements.; or 33

(B) Negotiating a contract that is more advantageous to 34

the state. 35

(2)(A) Offerors If discussions conducted after the deadline for 36


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the receipt of proposals necessitate material revisions of proposals, each 1

offeror determined to be responsible and reasonably susceptible of being 2

awarded a contract shall be accorded fair and equal treatment with respect to 3

any provided an opportunity for discussion and revision of proposals, and 4

such revisions may be permitted after submissions and prior to award to 5

revise its proposal for the purpose of obtaining submitting a best and final 6

offers offer. 7

(B) An offeror may be permitted to revise its original 8

proposal as a result of discussions only after the original submission 9

deadline and before award for the purpose of providing a best and final 10

offer. 11

(3) In conducting discussions, there shall be no disclosure of 12

any information derived from proposals a proposal submitted by a competing 13

offerors offeror shall not be disclosed until after a notice of anticipation 14

to award is announced. 15

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SECTION 3. Arkansas Code § 19-11-240 is amended to read as follows: 17

19-11-240. Reporting of suspected collusion — Definition. 18

(a) As used in this section, "collusion" means cooperation in the 19

restraint of free and open competition in a public procurement, including 20

without limitation: 21

(1) Price fixing; 22

(2) Bid rigging; 23

(3) Customer or market allocation; 24

(4) Misrepresenting the independence of the relationship between 25

colluding parties; and 26

(5) Exerting improper influence on public officials to obtain 27

advantage in a public procurement, including without limitation: 28

(A) Offering bribes or kickbacks; 29

(B) Extortion; and 30

(C) Fraudulent misrepresentation. 31

(b) Notification to the Attorney General. When for any reason 32

collusion is suspected among any bidders or offerors, a written notice of the 33

relevant facts shall be transmitted to the Attorney General. 34

(b) (c)(1) Retention of All Documents. All documents involved in any 35

a procurement in which collusion is suspected shall be retained until the 36


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Attorney General gives notice that they may be destroyed. 1

(2) All retained documents shall be made available to the 2

Attorney General or a designee upon request and proper receipt therefor of 3

the request. 4

(d) Collusion is cause for: 5

(1) Debarment from consideration for award of a contract under § 6

19-11-245; and 7

(2) Suspension from consideration for award of a contract if 8

there is probable cause for suspecting collusion as determined by the 9

Attorney General or the State Procurement Director. 10

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SECTION 4. Arkansas Code § 19-11-247, concerning remedies for unlawful 12

solicitation or award, is amended to add an additional subsection to read as 13

follows: 14

(d) Before a contract is ratified and affirmed under subdivision 15

(c)(1)(A) of this section, a contract shall be presented to the Legislative 16

Council or, if the General Assembly is in session, to the Joint Budget 17

Committee, for review if the contract is required to be submitted for review 18

under § 19-11-1006. 19

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/s/Hester 21

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*SRC160* 02-28-2017 14:41:21 SRC160

State of Arkansas As Engrossed: S3/8/17 1



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By: Representative Dotson 6

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AN ACT TO PROHIBIT PUBLIC ENTITIES FROM CONTRACTING 9

WITH AND INVESTING IN COMPANIES THAT BOYCOTT ISRAEL; 10

AND FOR OTHER PURPOSES. 11

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Subtitle 14

TO PROHIBIT PUBLIC ENTITIES FROM 15

CONTRACTING WITH AND INVESTING IN 16

COMPANIES THAT BOYCOTT ISRAEL. 17

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SECTION 1. Arkansas Code Title 25, Chapter 1, is amended to add an 22

additional subchapter to read as follows: 23

Subchapter 5 — Prohibited Contracts and Investments 24

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25-1-501. Legislative findings. 26

The General Assembly finds that: 27

(1) Boycotts and related tactics have become a tool of economic 28

warfare that threaten the sovereignty and security of key allies and trade 29

partners of the United States; 30

(2) The State of Israel is the most prominent target of such 31

boycott activity, which began with but has not been limited to the Arab 32

League Boycott adopted in 1945, even before Israel’s declaration of 33

independence as the reestablished national state of the Jewish people; 34

(3) Companies that refuse to deal with United States trade 35

partners such as Israel, or entities that do business with or in such 36

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countries, make discriminatory decisions on the basis of national origin that 1

impair those companies’ commercial soundness; 2

(4) It is the public policy of the United States, as enshrined 3

in several federal acts, to oppose boycotts against Israel, and Congress has 4

concluded as a matter of national trade policy that cooperation with Israel 5

materially benefits United States companies and improves American 6

competitiveness; 7

(5) Israel in particular is known for its dynamic and innovative 8

approach in many business sectors, and therefore a company’s decision to 9

discriminate against Israel, Israeli entities, or entities that do business 10

with or in Israel, is an unsound business practice, making the company an 11

unduly risky contracting partner or vehicle for investment; and 12

(6) Arkansas seeks to act to implement Congress’s announced 13

policy of “examining a company’s promotion or compliance with unsanctioned 14

boycotts, divestment from, or sanctions against Israel as part of its 15

consideration in awarding grants and contracts and supports the divestment of 16

state assets from companies that support or promote actions to boycott, 17

divest from, or sanction Israel". 18

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25-1-502. Definitions. 20

As used in this subchapter: 21

(1)(A)(i) “Boycott Israel” and “boycott of Israel” means 22

engaging in refusals to deal, terminating business activities, or other 23

actions that are intended to limit commercial relations with Israel, or 24

persons or entities doing business in Israel or in Israeli-controlled 25

territories, in a discriminatory manner. 26

(ii) “Boycott” does not include those boycotts to 27

which 50 App. U.S.C. § 2407(c) applies. 28

(B) A company’s statement that it is participating in 29

boycotts of Israel, or that it has taken the boycott action at the request, 30

in compliance with, or in furtherance of calls for a boycott of Israel, can 31

be considered by the Arkansas Development Finance Authority as a type of 32

evidence, among others, that a company is participating in a boycott of 33

Israel; 34

(2) “Company” means a sole proprietorship, organization, 35

association, corporation, partnership, joint venture, limited partnership, 36


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limited liability partnership, limited liability company, or other entity or 1

business association, including all wholly owned subsidiaries, majority-owned 2

subsidiaries, parent companies, or affiliates of those entities or business 3

associations; 4

(3) “Direct holdings” in reference to a company means all 5

publicly traded securities of that company that are held directly by the 6

public entity in an actively managed account or fund in which the public 7

entity owns all shares or interests; 8

(4) “Indirect holdings” in reference to a company means all 9

securities of that company that are held in an account or fund, such as a 10

mutual fund, managed by one (1) or more persons not employed by the public 11

entity, in which the public entity owns shares or interests together with 12

other investors not subject to the provisions of this act or that are held in 13

an index fund; 14

(5) “Public entity” means the State of Arkansas, or a political 15

subdivision of the state, including all boards, commissions, agencies, 16

institutions, authorities, and bodies politic and corporate of the state, 17

created by or in accordance with state law or regulations, and does include 18

colleges, universities, a statewide public employee retirement system, and 19

institutions in Arkansas as well as units of local and municipal government; 20

(6) “Restricted companies” means companies that boycott Israel; 21

and 22

(7) “Retirement system” means a public retirement system in 23

Arkansas. 24

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25-1-503. Prohibition on contracting with entities that boycott 26

Israel. 27

(a) Except as provided under subsection (b) of this section, a public 28

entity shall not: 29

(1) Enter into a contract with a company to acquire or dispose 30

of services, supplies, information technology, or construction unless the 31

contract includes a written certification that the person or company is not 32

currently engaged in, and agrees for the duration of the contract not to 33

engage in, a boycott of Israel; or 34

(2) Engage in boycotts of Israel. 35

(b) This section does not apply to: 36


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(1) A company that fails to meet the requirements under 1

subdivision (a)(1) of this section but offers to provide the goods or 2

services for at least twenty percent (20%) less than the lowest certifying 3

business; or 4

(2) Contracts with a total potential value of less than one 5

thousand dollars ($1,000). 6

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25-1-504. Prohibition on direct investments in companies that boycott 8

Israel. 9

(a)(1) A public entity through its asset managers shall identify all 10

companies that boycott Israel and assemble those identified companies into a 11

list of restricted companies to be distributed to each retirement system. 12

(2) For each company newly identified and added to the list of 13

restricted companies, the public entity through its asset managers shall send 14

a written notice informing the company of its status and that it may become 15

subject to divestment by the public entity. 16

(3) If, following the engagement by the public entity through 17

its assets managers with a restricted company, that company ceases activity 18

that designates it as a restricted company and submits a written 19

certification to the public entity that it shall not reengage in such 20

activity for the duration of any investment by the public entity, the company 21

shall be removed from the restricted companies list. 22

(4) The public entity shall keep and maintain the list of 23

restricted companies and all written certifications from restricted and 24

previously restricted companies. 25

(b)(1) The public entity shall adhere to the following procedures for 26

companies on the list of restricted companies: 27

(A) Each public entity shall identify the companies on the 28

list of restricted companies that the public entity owns direct holdings and 29

indirect holdings; 30

(B) The public entity shall instruct its investment 31

advisors to sell, redeem, divest, or withdraw all direct holdings of 32

restricted companies from the public entity’s assets under management in an 33

orderly and fiduciarily responsible manner within three (3) months after the 34

appearance of the company on the list of restricted companies; and 35

(C) Upon request from the Arkansas Development Finance 36


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Authority, each public entity shall provide the Arkansas Development Finance 1

Authority with information regarding investments sold, redeemed, divested, or 2

withdrawn in compliance under this section. 3

(2) The public entity shall not acquire securities of restricted 4

companies as part of direct holdings. 5

(c)(1) Subsection (b) of this section does not apply to the public 6

entity’s indirect holdings or private market funds. 7

(2) The public entity shall submit letters to the managers of 8

those investment funds identifying restricted companies and requesting that 9

those investment funds consider removing the investments in the restricted 10

companies from the funds. 11

(d) The costs associated with the divestment activities of the public 12

entity shall be borne by the respective public entity. 13

(e) With respect to actions taken in compliance with this section, 14

including all good-faith determinations regarding companies as required under 15

this section, any statewide retirement system and the Arkansas Development 16

Finance Authority are exempt from any conflicting statutory or common law 17

obligations, including any fiduciary duties and any obligations with respect 18

to choice of asset managers, investment funds, or investments for the 19

statewide retirement systems’ portfolios. 20

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/s/Hester 22

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APPROVED: 03/27/2017 25

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*KLC054* 02-08-2017 10:57:13 KLC054

State of Arkansas 1



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By: Representative Holcomb 5

By: Senator Caldwell 6

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AN ACT TO AMEND THE AWARD PROCEDURE FOR PUBLIC 9

IMPROVEMENT CONTRACTS; AND FOR OTHER PURPOSES. 10

11

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Subtitle 13

TO AMEND THE AWARD PROCEDURE FOR PUBLIC 14

IMPROVEMENT CONTRACTS. 15

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SECTION 1. Arkansas Code § 22-9-202(b)(2)(C), concerning statutory 20

construction, is amended to read as follows: 21

(C) Construction work from one (1) or more separate 22

contractors under separate contract or invoice so that the work is not 23

included in calculating the bid requirement threshold of twenty thousand 24

dollars ($20,000) thirty-five thousand dollars ($35,000). 25

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SECTION 2. Arkansas Code § 22-9-202(c), concerning statutory 27

construction, is amended to read as follows: 28

(c) This section and §§ 22-9-203 and 22-9-204 do not amend or repeal 29

any law that requires the publication of notice in those instances in which 30

the estimated amount of the cost of the proposed improvements within the 31

scope of the contract is less than twenty thousand dollars ($20,000) more 32

than thirty-five thousand dollars ($35,000). 33

34

SECTION 3. The introductory language of Arkansas Code § 22-9-203(a), 35

concerning the award procedure for public improvements, is amended to read as 36

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follows: 1

(a) Except as provided under § 14-58-105, a contract providing for the 2

making of major repairs or alterations, for the erection of buildings or 3

other structures, or for making other permanent improvements shall not be 4

entered into by the state or an agency of the state or by a county, 5

municipality, school district, or other local taxing unit with any contractor 6

in instances in which all estimated costs of the work shall exceed the sum of 7

twenty thousand dollars ($20,000) thirty-five thousand dollars ($35,000) 8

unless: 9

10

SECTION 4. Arkansas Code § 22-9-203(c)(2)(A), concerning award 11

procedures and requirements, is amended to read as follows: 12

(2)(A)(i) Every bid submitted on public construction 13

contracts for any political subdivision of the state shall be is void unless 14

accompanied by a cashier's check drawn upon a bank or trust company doing 15

business in this state or by a corporate bid bond. 16

(ii) Every bid submitted on public construction 17

contracts for the state or any agency or department of the state shall be is 18

void unless accompanied by a cashier's check drawn upon a bank or trust 19

company doing business in this state or by a corporate bid bond, except for 20

projects under twenty thousand dollars ($20,000) thirty-five thousand dollars 21

($35,000). 22

(iii) No A bid bond shall be is not required for 23

public construction contracts for the state or any agency or department of 24

the state under or equal to twenty thousand dollars ($20,000) thirty-five 25

thousand dollars ($35,000). 26

27

SECTION 5. Arkansas Code § 22-9-209(a), concerning the renovation of 28

historic sites, is amended to read as follows: 29

(a) A contract for the altering, repairing, or renovation of a 30

recognized historic site or structure owned by the State of Arkansas state or 31

with title vested in the name of a state agency or of another taxing 32

authority in which the estimated cost of the work equals or exceeds the sum 33

of twenty thousand dollars ($20,000) thirty-five thousand dollars ($35,000) 34

shall not be entered into between the state agency or taxing authority and 35

any contractor unless the state agency or taxing authority has first 36

HB1595

3 02-08-2017 10:57:13 KLC054

published notice of intention to receive bids for improvements one (1) time 1

each week for not less than two (2) consecutive weeks in a newspaper of 2

general circulation published in the county in which the proposed 3

improvements are to be made or in a trade journal reaching the construction 4

industry. 5

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APPROVED: 03/28/2017 8

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*JLL158* 02-24-2017 08:42:46 JLL158

State of Arkansas 1



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AN ACT TO CLARIFY THE RESOLUTION OF PROTESTED 9

SOLICITATIONS AND AWARDS UNDER THE ARKANSAS 10

PROCUREMENT LAW; TO CLARIFY THAT THE ARKANSAS STATE 11

CLAIMS COMMISSION HAS EXCLUSIVE JURISDICTION OVER ALL 12

CLAIMS AGAINST THE STATE IN CONNECTION WITH THE 13

SOLICITATION OR AWARD OF A CONTRACT; TO CLARIFY THAT 14

ADMINISTRATIVE DECISIONS REGARDING A PROTEST ARE NOT 15

ORDERS SUBJECT TO THE ARKANSAS ADMINISTRATIVE 16

PROCEDURE ACT; AND FOR OTHER PURPOSES. 17

18

19

Subtitle 20

TO CLARIFY THE RESOLUTION OF PROTESTED 21

SOLICITATIONS AND AWARDS UNDER THE 22

ARKANSAS PROCUREMENT LAW. 23

24

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SECTION 1. Arkansas Code § 19-11-244(b) and (c), concerning the 28

resolution of protested solicitations and awards, are amended to read as 29

follows: 30

(b)(1)(A) Prior to the commencement of an action in court or any other 31

action provided by law concerning the controversy, the The director, the head 32

of a procurement agency, or a designee of either officer may settle and 33

resolve a protest concerning the solicitation or award of a contract before 34

rendering an administrative protest determination. 35

(B)(i) A meeting in an attempt to settle or resolve a 36

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protest is not a public meeting. 1

(ii) However, a final settlement or resolution of a 2

protest made under this section shall not be kept secret, sealed, or withheld 3

from public disclosure. 4

(2) This The authority to settle or resolve a protest under this 5

section shall be exercised in accordance with laws governing the Arkansas 6

State Claims Commission, which has exclusive jurisdiction over all claims 7

against the state in connection with the solicitation or award of a contract, 8

and the regulations rules promulgated by the director. 9

(c)(1) If the a protest is not settled or resolved by mutual agreement 10

under subsection (b) of this section, and after reasonable notice to the 11

protestor involved and reasonable opportunity for the protestor to respond to 12

the protest issues according to the regulations promulgated by the director, 13

the head of a procurement agency, the director, or a designee of either 14

officer shall promptly issue a decision an administrative protest 15

determination in writing. 16

(2) The decision administrative protest determination shall 17

state the reasons for the action taken. 18

19

SECTION 2. Arkansas Code § 19-11-244(e), concerning the resolution of 20

protested solicitations and awards, is amended to read as follows: 21

(e) A decision An administrative protest determination under 22

subsection (c) of this section shall be final is: 23

(1) Final and conclusive; and 24

(2) Not an order as defined in the Arkansas Administrative 25

Procedure Act, § 25-15-201 et seq. 26

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APPROVED: 04/04/2017 29

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*JLL261* 03-06-2017 12:57:40 JLL261

State of Arkansas As Engrossed: H3/23/17 1



4

By: Representative G. Hodges 5


7



AMEND PROVISIONS OF PROCUREMENT LAW TO REFLECT THE 10

IMPACT OF INFLATION ON THE COST OF GOODS AND SERVICES 11

AND TO ENCOURAGE MORE PARTICIPATION BY SMALL 12

BUSINESSES; AND FOR OTHER PURPOSES. 13

14

15

Subtitle 16

TO AMEND PROVISIONS OF PROCUREMENT LAW TO 17

REFLECT THE IMPACT OF INFLATION ON THE 18

COST OF GOODS AND SERVICES AND TO 19

ENCOURAGE MORE PARTICIPATION BY SMALL 20

BUSINESSES. 21

22

23


25

SECTION 1. Arkansas Code § 19-11-204(13), concerning the definitions 26

relating to source selection and contract formation under the Arkansas 27

Procurement Law, is amended to read as follows: 28

(13)(A)(i) “Small procurements” means any a procurement not 29

exceeding a purchase price of ten thousand dollars ($10,000) twenty thousand 30

dollars ($20,000). 31

(ii) Small purchases procurements may be procured 32

without seeking competitive bids or competitive sealed bids. 33

(ii) (iii) However, competition should be used to 34

the maximum extent practicable. 35

(B) Items under state contract are excluded. 36

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1

SECTION 2. Arkansas Code § 19-11-222(a), concerning the State 2

Procurement Director's exclusive jurisdiction over procurement, is amended to 3

read as follows: 4

(a) The State Procurement Director shall have exclusive jurisdiction 5

over the procurement of: 6

(1) Items subject to Arkansas Constitution, Amendment 54; 7

(2) Wholesale gasoline, oil, and related products; 8

(3) Tires; 9

(4)(A) Passenger motor vehicles and trucks, except highway 10

construction and highway maintenance equipment or any specialized type of 11

equipment used in highway construction, except as otherwise provided in this 12

subchapter. 13

(B) The director may issue a request for qualifications 14

for the procurement of passenger motor vehicles and trucks to compile a 15

qualified vendor list that includes vendors in multiple areas of the state; 16

(5) Paper products; 17

(6) New and used school buses for state agencies; 18

(7) A purchasing card program and travel card program to include 19

implementation and administration; and 20

(8) An electronic commerce procurement solution to include 21

planning and administration consistent with the established financial systems 22

of the state. 23

24

SECTION 3. Arkansas Code § 19-11-229(b)(1), concerning competitive 25

sealed bidding under the Arkansas Procurement Law, is amended to read as 26

follows: 27

(b)(1) Contracts exceeding an estimated purchase price of fifty 28

thousand dollars ($50,000) seventy-five thousand dollars ($75,000) shall be 29

awarded by competitive sealed bidding unless a determination is made in 30

writing by the agency procurement official or the State Procurement Director 31

that this method is not practicable and advantageous and specifically states 32

the reasons that this method is not practicable and advantageous. 33

34

SECTION 4. Arkansas Code § 19-11-234(b)(1), concerning competitive 35

bidding under the Arkansas Procurement Law, is amended to read as follows: 36


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(b)(1) Contracts in which the purchase price exceeds ten thousand 1

dollars ($10,000) twenty thousand dollars ($20,000) and is less than or equal 2

to fifty thousand dollars ($50,000) seventy-five thousand dollars ($75,000) 3

may be awarded by use of competitive bidding procedures. 4

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/s/G. Hodges 6

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APPROVED: 04/06/2017 9

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*JLL289* 03-06-2017 16:51:33 JLL289

State of Arkansas As Engrossed: H3/14/17 H3/23/17 S3/29/17 1



4

By: Representatives M. Gray, V. Flowers, M. Hodges, Vaught, Davis 5

By: Senators Irvin, D. Wallace, Elliott 6

7


AN ACT TO AMEND THE MINORITY BUSINESS ECONOMIC 9

DEVELOPMENT ACT; TO REPEAL CERTAIN CONTRACTING GOALS; 10

AND FOR OTHER PURPOSES. 11

12

13

Subtitle 14

TO AMEND THE MINORITY BUSINESS ECONOMIC 15

DEVELOPMENT ACT; AND TO REPEAL CERTAIN 16

CONTRACTING GOALS. 17

18

19


21

SECTION 1. Arkansas Code Title 15, Chapter 4, Subchapter 3, is amended 22

to read as follows: 23

Subchapter 3 — Minority and Women-Owned Business Economic Development Act 24

25

15-4-301. Title. 26

This subchapter shall be known and may be cited as the “Minority and 27

Women-Owned Business Economic Development Act”. 28

29

15-4-302. Purpose — Goals — Notice. 30

(a) The General Assembly finds that it is the policy of the State of 31

Arkansas to support equal opportunity as well as economic development in 32

every sector. 33

(b) The General Assembly recognizes that it is the purpose of this 34

subchapter to support to the fullest all possible participation of firms 35

owned and controlled by minority persons and women in state-funded and state-36

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2 03-06-2017 16:51:33 JLL289

directed public construction programs and in the purchase of goods and 1

services for the state. 2

(c) All state agencies shall attempt to ensure that ten percent (10%) 3

the following percentages of the total amount expended in state-funded and 4

state-directed public construction programs and in the purchase of goods and 5

services for the state each fiscal year is are paid to minority business 6

enterprises and women-owned business enterprises: 7

(1)(A) For minority business enterprises, ten percent (10%). 8

(B) The ten-percent goal under subdivision (c)(1)(A) of 9

this section shall be allocated as follows: 10

(i) Two percent (2%) for service-disabled veteran-11

owned minority business enterprises; and 12

(ii) Eight percent (8%) for all other minority 13

business enterprises; and 14

(2) For women-owned business enterprises, five percent (5%). 15

(d) To facilitate notification of potential respondents to procurement 16

solicitations, a state agency shall publish all state contract solicitations 17

on the website for the Office of State Procurement of the Department of 18

Finance and Administration. 19

20

15-4-303. Definitions. 21

As used in this subchapter: 22

(1)(A) “Exempt” means goods and services classified as exempt 23

for the purpose of administering this subchapter. 24

(B) The classification shall be determined by the Office 25

of State Procurement of the Department of Finance and Administration and the 26

Division of Minority and Women-owned Business Enterprise of the Arkansas 27

Economic Development Commission and submitted to the Arkansas Economic 28

Development Council for its review and consideration for the purposes of this 29

subchapter; 30

(2) “Minority” means a lawful permanent resident of this state 31

who is: 32

(A) African American; 33

(B) Hispanic American; 34

(C) American Indian; 35

(D) Asian American; or 36


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(E) Pacific Islander American; or 1

(F) A service-disabled veteran as designated by the United 2

States Department of Veterans Affairs; 3

(3) “Minority business enterprise” means a business that is at 4

least fifty-one percent (51%) owned by one (1) or more minority persons as 5

defined in this section; 6

(4) “Minority and women-owned business officer” means the 7

individual within each state agency with the responsibility for carrying out 8

the intended purposes of this subchapter; 9

(5)(A) “Nonexempt” means goods and services classified as 10

nonexempt for the purpose of administering this subchapter. 11

(B) The classification shall be determined by the office 12

and the division and submitted to the council for its review and 13

consideration for the purposes of this subchapter; 14

(6) “Procurement” means buying, purchasing, renting, leasing, or 15

otherwise acquiring any goods or services; 16

(7) “State agency” means a department, an office, a board, a 17

commission, or an institution of this state, including a state-supported 18

institution of higher education; and 19

(8) “State contract” means a state agreement, regardless of what 20

it may be called, for the purchase of commodities and services and for the 21

disposal of surplus commodities and services not otherwise exempt; and 22

(9) "Women-owned business enterprise" means a business that is 23

at least fifty-one percent (51%) owned by one (1) or more women who are 24

lawful permanent residents of this state. 25

26

15-4-304. Creation. 27

The Division of Minority and Women-owned Business Enterprise of the 28

Arkansas Economic Development Commission: 29

(1) Is established and confirmed within the Arkansas Economic 30

Development Commission under the jurisdiction of the Arkansas Economic 31

Development Council; 32

(2) Shall be operated as a division within the commission; and 33

(3) Shall perform the functions and duties as provided in this 34

subchapter. 35

36


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15-4-305. Administrator. 1

The head of the Division of Minority and Women-owned Business 2

Enterprise of the Arkansas Economic Development Commission is the 3

Administrator of the Division of Minority and Women-owned Business Enterprise 4

of the Arkansas Economic Development Commission and shall be appointed by the 5

Governor. 6

7

15-4-306. Duties. 8

The Division of Minority and Women-owned Business Enterprise of the 9

Arkansas Economic Development Commission shall: 10

(1) Provide technical, managerial, and counseling services and 11

assistance to minority business enterprises and women-owned business 12

enterprises; 13

(2) With the participation of other state departments and state 14

agencies as appropriate: 15

(A) Develop comprehensive plans and specific program goals 16

for a minority business enterprise and women-owned business enterprise 17

program; 18

(B) Establish regular performance monitoring and reporting 19

systems to assure that goals are being achieved; and 20

(C) Evaluate the impact of federal and state support in 21

achieving the objectives established by the Arkansas Economic Development 22

Commission; 23

(3) Implement state policy in support of minority business 24

enterprise and development and women-owned business enterprise and 25

development and coordinate the plans, programs, and operations of state 26

government that affect or may contribute to the establishment, preservation, 27

and strengthening of minority business enterprises and women-owned business 28

enterprises; 29

(4) Coordinate, make application for, and administer federal 30

funding grants from the United States Minority Business Development Agency of 31

the United States Department of Commerce, the United States Small Business 32

Administration, the United States Department of Veterans Affairs, and other 33

federal agencies where when applicable; 34

(5) Promote the mobilization of activities and resources of 35

state agencies and local governments, business and trade associations, 36


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universities, foundations, professional organizations, and volunteer and 1

other groups toward the growth of minority business enterprises and women-2

owned business enterprises, and facilitate the coordination of the efforts of 3

these groups with those of other state departments and state agencies; 4

(6) Establish a center for the development, collection, and 5

dissemination of information that will be helpful to persons and 6

organizations throughout the state in undertaking or promoting the 7

establishment and successful operation of minority business enterprises and 8

women-owned business enterprises; 9

(7) Conduct coordinated reviews of all proposed state training 10

and technical assistance activities in direct support of the minority 11

business enterprise and women-owned business enterprise program to ensure 12

consistency with program goals and to preclude duplication of effort of other 13

state agencies with overlapping jurisdictions; 14

(8) Recommend appropriate legislative or executive actions to 15

enhance minority business enterprise and women-owned business enterprise 16

opportunities in this state; 17

(9) Assist minority business enterprises and women-owned 18

business enterprises in obtaining governmental or commercial financing for 19

business expansion, establishment of new businesses, or industrial 20

development projects; 21

(10) Provide services to promote the organization of local 22

development corporations for rural development and assist minority business 23

enterprise and women-owned business enterprise persons in agrarian endeavors; 24

(11) Assist minority business enterprises and women-owned 25

business enterprises to promote reciprocal foreign trade and investment; 26

(12) Assist minority and women-owned business persons in 27

business contract procurement from governmental and private commercial 28

sources; and 29

(13) Provide a program effort to ensure participation of 30

veterans and women in Arkansas minority business enterprise activities and 31

women-owned business enterprise activities. 32

33

15-4-307. Minority and Women-owned Business Advisory Council. 34

(a) The Division of Minority and Women-owned Business Enterprise of 35

the Arkansas Economic Development Commission shall be represented by a 36


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statewide Minority and Women-owned Business Advisory Council and shall report 1

to that council. 2

(b)(1) The council shall consist of seven (7) nine (9) members. 3

(2) The council shall: 4

(A) Monitor progress, make recommendations, and develop 5

strategic plans for performance improvement; and 6

(B) Report to the Governor, the Speaker of the House of 7

Representatives, and the President Pro Tempore of the Senate. 8

(c)(1) The Governor shall appoint three (3) members of the council 9

with the advice and consent of the Senate. 10

(2) The President Pro Tempore of the Senate shall appoint two 11

(2) members of the council. 12

(3) The Speaker of the House of Representatives shall appoint 13

two (2) members of the council. 14

(4) The Executive Director of the Arkansas Economic Development 15

Commission shall appoint two (2) members of the council. 16

(4)(5) Appointments shall reflect and be representative of the 17

minority and women-owned business community communities, resource 18

organizations, entrepreneurs, corporations, and other minority and women-19

owned business advocates. 20

(d) Except as otherwise provided by law, members of the council shall 21

serve without compensation. 22

(e) The term of office of the council shall be: 23

(1) Be at the pleasure of the appointing officer; and 24

(2) Not exceed five (5) years. 25

(f) There is established a formal relationship between the council and 26

the Administrator of the Division of Minority and Women-owned Business 27

Enterprise of the Arkansas Economic Development Commission. 28

(g)(1) The administrator and the small disadvantaged business officer 29

shall be the liaison to the council and shall be responsible for submitting 30

to the council any reports and documents under the provisions of this 31

section. 32

(2) Their duties in relation to this section shall be considered 33

official duty in the conduct of state business. 34

(h) The council's duties and responsibilities shall be to: 35

(1) Review reports and interpret each state agency's achievement 36


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of its goals under § 15-4-302(c); 1

(2) Advise the Governor when a state agency has not reached its 2

goals under § 15-4-302(c); 3

(3) Make annual reports to the Governor, including without 4

limitation: 5

(A) A summary of the state's performance in relation to 6

the goals stated in § 15-4-302(c); and 7

(B) Any recommendations for modifications to the 8

division's or other state agency's plans for improving statewide performance 9

in relation to the goals stated in § 15-4-302(c); 10

(4) Recommend to the state agency, the division, and the Office 11

of State Procurement of the Department of Finance and Administration 12

corrective actions to strengthen minority and women-owned business 13

opportunities in the state; and 14

(5) Conduct public hearings when necessary to obtain public 15

input and support for the purpose of carrying out the provisions of this 16

subchapter. 17

(i) Each state agency, through its minority and women-owned business 18

officer, shall submit to the division, the council, and the office the state 19

agency's plan to reach its goals for the coming fiscal year and shall: 20

(1) Be submitted to the division by June 30 of each year; 21

(2) Contain the name of the state agency submitting the plan; 22

(3) Contain a policy statement signed by the state agency head 23

expressing a commitment to use strengthen minority business enterprises and 24

women-owned business enterprises in all aspects of contracting to the maximum 25

extent feasible; 26

(4) Identify the name of the minority and women-owned business 27

officer in the state agency who is responsible for developing and 28

administering the compliance plan; 29

(5) Establish a timetable for the state agency to reach its 30

goals under the plan and the manner in which the state agency intends to 31

reach its goals; and 32

(6) Contain any other procedures the division deems necessary to 33

comply with the goals and the compliance plan. 34

35

15-4-308. Administration. 36


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the Arkansas Economic Development Commission and the Office of State 2

Procurement of the Department of Finance and Administration shall serve as 3

the principal coordinators of the initiative to ensure the successful 4

implementation of this subchapter. 5

(b) The division and the office shall provide assistance to minority 6

business enterprises and women-owned business enterprises seeking state 7

contract opportunities with various state agencies. 8

(c) The division and the office shall maintain a directory of all 9

minority and women-owned business officers for each state agency. 10

(d) The division and the office shall provide management and technical 11

assistance to any state agency that experiences difficulty in complying with 12

the provisions of this subchapter. 13

(e) The division and the office shall maintain a current directory of 14

minority business enterprises and women-owned business enterprises and shall 15

make the directory available to each state agency and minority and women-16

owned business officer. 17

(f) The division shall serve as a central clearinghouse for 18

information on state contracts, including a record of all pending state 19

contracts upon which minority business enterprises and women-owned business 20

enterprises may participate. 21

22

15-4-309. Exempt contracts. 23

Upon the approval of the Minority and Women-owned Business Advisory 24

Council, the Division of Minority and Women-owned Business Enterprise of the 25

Arkansas Economic Development Commission and the Office of State Procurement 26

of the Department of Finance and Administration shall determine the 27

classifications of state contracts to be exempted from the goals established 28

by this subchapter whenever there exists an insufficient number of minority 29

business enterprises or women-owned business enterprises to ensure adequate 30

competition. 31

32

15-4-310. Minority and women-owned business officer. 33

(a) Each state agency shall designate an individual as its minority 34

and women-owned business officer. 35

(b) The minority and women-owned business officer shall be the person 36


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within the state agency with whom the Division of Minority and Women-owned 1

Business Enterprise of the Arkansas Economic Development Commission and the 2

Minority and Women-owned Business Advisory Council shall work in their 3

efforts to accomplish the goals of this subchapter. 4

(c) Upon the appointment of the minority and women-owned business 5

officer in each state agency, the state agency shall notify the division and 6

the Office of State Procurement of the Department of Finance and 7

Administration. 8

9

15-4-311. Annual minority and women-owned purchasing plan. 10

(a) Prior to June 30 each year, each state agency shall submit to the 11

Division of Minority and Women-owned Business Enterprise of the Arkansas 12

Economic Development Commission and the Office of State Procurement of the 13

Department of Finance and Administration a minority and women-owned 14

purchasing plan that shall outline the state agency's plan to reach its goals 15

for the coming fiscal year. 16

(b) The minority and women-owned purchasing plan shall include without 17

limitation: 18

(1) The name of the state agency; 19

(2) A policy statement signed by the state agency head 20

expressing a commitment to use minority business enterprises and women-owned 21

business enterprises in all aspects of contracting to the maximum extent 22

feasible; 23

(3) The name of the minority and women-owned business officer in 24

the state agency who is responsible for developing and administering the 25

compliance purchasing plan; 26

(4) The time table for the state agency to reach its goals under 27

the purchasing plan and the manner in which the state agency intends to reach 28

its goals, including without limitation the manner in which the state agency 29

intends to include minority business enterprises and women-owned business 30

enterprises in reaching its goals; and 31

(5) Any other procedures the state agency deems necessary to 32

comply with the goals and the compliance purchasing plan. 33

(c) The minority and women-owned business officer shall determine the 34

category to which a purchase shall be assigned for purposes of the minority 35

and women-owned purchasing plan required under this section. 36


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15-4-312. State agencies to submit reports. 2

The Minority Business Advisory Council shall require each state agency 3

to produce within Within fifteen (15) days of the close of each three-month 4

six-month period, each state agency shall submit a report to the Minority and 5

Women-owned Business Advisory Council summing up total procurement for all 6

state contracts, except exempt state contracts of the state agency, and the 7

dollar value and the percentage of the state contracts of the state agency 8

awarded to minority business enterprises and women-owned business 9

enterprises. 10

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15-4-313. Accelerated payments. 12

To ensure that minority business enterprises and women-owned business 13

enterprises are not financially hindered due to delays in payment by state 14

agencies entering into state contracts with minority business enterprises and 15

women-owned business enterprises under this subchapter, state agencies shall 16

accelerate payment to minority vendors and women-owned vendors to preclude 17

accounts receivable problems of minority business enterprises and women-owned 18

business enterprises caused by the State of Arkansas. 19

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15-4-314. Minority business enterprises and women-owned business 21

enterprises certification process. 22


the Arkansas Economic Development Commission shall promulgate rules to create 24

a certification process for minority business enterprises and women-owned 25

business enterprises. 26

(b) The certification process shall include without limitation: 27

(1) Criteria for certification that shall include without 28

limitation: 29

(A) A determination that the business is structured as a 30

minority business enterprise or a women-owned business enterprise; 31

(B) Verification of minority or woman ownership and 32

control of the business; and 33

(C) Annual updates indicating continuing minority or woman 34

ownership and control; 35

(2) A formal application process; 36


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(3) An education program to assist minority business enterprises 1

and women-owned business enterprises in achieving certification; and 2

(4) An outreach to ensure the broadest possible participation of 3

minority business enterprises and women-owned business enterprises and 4

persons proposing new minority business enterprises or women-owned business 5

enterprises. 6

(c) The Office of State Procurement of the Department of Finance and 7

Administration shall cooperate with the division to the fullest extent 8

possible in sharing information concerning certification and registration of 9

minority business enterprises and women-owned business enterprises carrying 10

out the purposes of this section. 11

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SECTION 2. Arkansas Code Title 15, Chapter 4, Subchapter 3, is amended 13

to add an additional section to read as follows: 14

15-4-315. Small procurements. 15

To assist the state in ensuring that the percentages of the total 16

amount expended in state-funded and state-directed public construction 17

programs and procurement of commodities and services for the state each 18

fiscal year under § 15-4-302 are paid to minority business enterprises and 19

women-owned business enterprises under this subchapter, a procurement that 20

does not exceed two (2) times the amount stated in § 19-11-204(13) may be 21

procured without seeking competitive bids or competitive sealed bids if the 22

procurement is with a certified minority business enterprise or certified 23

women-owned business enterprise 24

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SECTION 3. Arkansas Code § 19-11-106 is repealed. 26

19-11-106. Contracting goals for service-disabled veterans — 27

Definitions. 28

(a) As used in this section: 29

(1) “Service-disabled veteran” means any individual who: 30

(A) Is at least thirty-percent (30%) disabled as a result 31

of military service and is designated as such by the United States Department 32

of Veterans Affairs; and 33

(B) Has been a resident of the State of Arkansas for at 34

least two (2) years; and 35

(2) “Business of a service-disabled veteran” means a business 36


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that: 1

(A) Not less than fifty-one percent (51%) of which is 2

owned by one (1) or more service-disabled veterans; 3

(B) The management and daily business operations of which 4

are controlled by one (1) or more service-disabled veterans; and 5

(C) Has been certified as a business of a service-disabled 6

veteran by the Division of Minority Business Enterprise of the Arkansas 7

Economic Development Commission under the Minority Business Economic 8

Development Act, § 15-4-301 et seq. 9

(b)(1) All state agencies shall attempt to ensure that five percent 10

(5%) of the total amount expended in state-funded and state-directed public 11

construction programs and in the purchase of goods and services for the state 12

each fiscal year is paid to businesses of service-disabled veterans. 13

(2) This subsection shall not be construed as establishing a 14

preference in contracting with businesses of service-disabled veterans. 15

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/s/M. Gray 17

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APPROVED: 04/07/2017 20

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*PIL245* 02-09-2017 16:31:21 PIL245

State of Arkansas 1



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By: Senator A. Clark 5

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AN ACT TO RAISE THE PRICE THRESHOLD FOR THE PURCHASE 8

OF COMMODITIES THAT SCHOOL DISTRICTS MUST PROCURE BY 9

SOLICITING BIDS; TO PROVIDE FOR ANNUAL ADJUSTMENTS IN 10

THE PURCHASE PRICE THRESHOLD BASED ON INFLATION; AND 11

FOR OTHER PURPOSES. 12

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Subtitle 15

TO RAISE THE PRICE THRESHOLD FOR THE 16

PURCHASE OF COMMODITIES THAT SCHOOL 17

DISTRICTS MUST PROCURE BY SOLICITING 18

BIDS; AND TO PROVIDE FOR ANNUAL 19

ADJUSTMENTS IN THE PURCHASE PRICE 20

THRESHOLD BASED ON INFLATION. 21

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SECTION 1. Arkansas Code § 6-21-304(a)(1), concerning the procurement 26

of commodities by a school district, is amended to read as follows: 27

(a)(1)(A) All purchases of commodities by any school district, except 28

those specifically exempted by § 6-21-305, shall be made as follows: 29

(A)(i)(i)(a) In each instance in which the estimated 30

purchase price shall equal or exceed ten thousand dollars ($10,000) twenty 31

thousand dollars ($20,000), the commodity shall be procured by soliciting 32

bids, provided that the purchasing official may reject all bids and may 33

purchase the commodity by negotiating a contract. 34

(ii)(b) If the purchasing official, after 35

rejecting all bids, determines that the purchase should be made by 36

bahsoon

Highlight

SB329

2 02-09-2017 16:31:21 PIL245

negotiation, then each responsible bidder who submitted a bid shall be 1

notified of the determination and shall be given a reasonable opportunity to 2

negotiate; 3

(B)(ii) Open market purchases may be made when the 4

purchase price is less than ten thousand dollars ($10,000) twenty thousand 5

dollars ($20,000); and 6

(C)(iii) No purchasing official shall parcel or 7

split any item or items with the intent or purpose to enable the purchase to 8

be made under a less restrictive procedure. 9

(B) Annually on July 1, the Commissioner of Education 10

shall adjust the purchase price amounts under subdivision (a)(1)(A) of this 11

section by the percentage change in the Consumer Price Index for All Urban 12

Consumers or its successor. 13

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APPROVED: 04/07/2017 16

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