HB1145
To Increase The Purchase Amount Authorized For Additional After-market Equipment For A New Motor Vehicle Purchased By A County Or Municipality.
AI-Generated Summary
This bill, House Bill 1145, proposes amendments to Arkansas law regarding purchases made by counties and municipalities that are exempt from requiring a formal solicitation of bids. Specifically, it aims to increase the authorized purchase amount for additional after-market equipment for new motor vehicles bought by these local government entities. For counties, the bill seeks to raise the allowance for after-market equipment from one thousand two hundred dollars ($1,200) to two thousand dollars ($2,000) over the fleet price. Similarly, for municipalities, the bill proposes to increase the cap for additional options on new motor vehicles from six hundred dollars ($600) to two thousand dollars ($2,000) above the fleet price. The stated purpose is to facilitate the procurement of necessary equipment for these vehicles without the burden of a full bidding process within these new, higher limits. This change is intended to streamline the purchasing process for local governments when acquiring new vehicles.
Potential Impact Analysis
Who Might Benefit?
The primary beneficiaries of this bill would be counties and municipalities in Arkansas. By increasing the thresholds for purchases that do not require a bid, these local government entities would have more flexibility and potentially reduced administrative burden when acquiring new motor vehicles and their associated after-market equipment or options. This could lead to more efficient procurement processes and the ability to customize vehicles according to specific needs more easily within the new limits. Additionally, businesses that supply after-market equipment or options for motor vehicles may see an increase in sales opportunities from these local government purchases.
Who Might Suffer?
The groups or entities most directly and negatively impacted by this bill would likely be potential vendors who would have previously had the opportunity to bid on after-market equipment or options for new motor vehicles purchased by counties and municipalities. By raising the exemption threshold, fewer purchases of these types will be subject to competitive bidding processes. This could potentially reduce opportunities for smaller or new suppliers to compete for these contracts. Furthermore, taxpayers might indirectly experience negative impacts if the relaxed bidding requirements lead to less competitive pricing and higher overall costs for these vehicle purchases, although the bill itself does not explicitly address cost controls.