006.05.04 Ark. Code R. § 004 - State Vehicle Fleet Management Guide

OFFICE OF INFORMATION SERVICES

STATE VEHICLE FLEET MANAGEMENT GUIDE

Effective date-October 1, 2004

STATE OF ARKANSAS

STATE VEHICLE FLEET MANAGEMENT GUIDE

INTRODUCTION AND AUTHORITY

The purchase, utilization reporting and inventory management with regard to State owned motor vehicles is governed by ACA§ 22-8-101 -210 and ACA§ 19-4-903, 19-4-905 -907, and ACA§ 25-1-110. The Director of the Department of Finance and Administration (DFA Director) is the agent authorized to purchase new and used vehicles for all State agencies, boards, commissions, departments, and institutions of higher education, with a business area code of 0100 or greater. Such purchases shall be made from the Motor Vehicle Acquisition Revolving Fund (MMV Fund) which was established for the purpose of acquiring motor vehicles for the State. The amounts deposited into this fund include a portion of State general revenues as authorized by the Revenue Stabilization Law, amounts received upon the disposal of used vehicles and deposits or transfers of funds from benefiting agencies. The Department of Finance and Administration, Office of Information Services (DFA-OIS) administers this program for the Director. (ACA § 19-5-1002, ACA § 22-8-206 (a-c), ACA § 22-8-207.

ABOUT THE GUIDE

This Guide is published and maintained on the Department of Finance and Administration, Office of Information Services web site at http://www.state.ar.us/dfa/info_svcs/index.html. It is also available in "Hard Copy" by contacting the Office of Information Services. The format of the Guide, to the extent possible, is: law, followed by policy (regulation).

A composite of Arkansas Laws which have a direct impact on State Vehicle Fleet management appears in the form of Arkansas Code. The numbering system used is keyed to the numbering of the Arkansas Code of 1987 Annotated. The title, chapter, subchapter and section of the code references are contained within the number. Thus, in the designation " 19-4-905," the "19" indicates the provision is in Title 19, the "4" indicates chapter 4 and the "9" in 905 means sub-chapter 9, with the "05" indicating the fifth section of the sub-chapter. Following the printed code, or excerpts of the code (excerpts include quotation marks at the beginning and end of the excerpts, preceded by the words "Arkansas law States :") will be policies (regulations) and/or procedures. At the beginning of the code, the code number appears-example: ACA§ 19-4-905. At the beginning of a policy (regulation) (R), the number of the policy (regulation), numbered in sequence, identifies the code it accompanies-example: R1 19-4-905. All appendices are identified in the text of the Guide and linked to the documents electronically to allow for easy access.

Appendices contain such items as:

Index of forms and appendices

Contacts

Forms

Instructions

Frequently asked questions (FAQs)

The purpose of the appendices is to provide up to date material that is subject to frequent change. This will permit the ability to change (update) forms and processes to conform to changes in the State Accounting System without making policy changes. The text of polices (regulations) and procedures appears in bold print and italics. In addition, at the end of each code section, is the history of the code which provides a reference to the original act and any subsequent statutory changes.

VEHICLE REGISTRATION AND IDENTIFICATION

19-4-905 State-owned motor vehicles generally.
(a) All state-owned motor vehicles which are purchased under the authority of the Chief Fiscal Officer of the State shall be licensed in such manner so as to identify each vehicle as state property.
(b) The Chief Fiscal Officer of the State shall provide a special license plate suitable for all state-owned motor vehicles and shall establish procedures for the purpose of supplying information on all state-owned motor vehicles, both those which are purchased and those which are sold, traded in, or otherwise disposed of.
(c) The Chief Fiscal Officer of the State shall make rules and regulations for obtaining the required license plates and for returning the plates when the vehicles are disposed of and shall notify all state agencies of procedures to be followed.
(d) Each agency shall be required to pay the regular license fee for the special state property license plate in the manner prescribed by the department.
(e) In the event the best interests of the state would be served by not displaying a special tag, such as in police work, an exception to the provisions of this section may be obtained only upon the written approval of the Governor.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342.

R 1-19-4 -905 The Office of Motor Vehicle, Special Tags Section

http://www.state.ar.us/dfa/motorvehicle/special_tags/index.html This hyperlink will provide the above mentioned license plates. All State agencies will provide the Department of Finance and Administration an updated list of vehicles owned by the State agency. Inventories will be mailed in January and July of every year. The Office of State Procurement, Marketing and Redistribution Section, is responsible for notifying the Department of Finance and Administration of vehicles sold for all non Executive Branch, Legislative Branch or Judicial Branches of State Government.

R 2-19-4 -905 Written approval for a waiver of Governor's Policy Directive #3, (GPD-3), Paragraph 3 http://www.arkansas.gov/governor/policy_directives/policy_gpd3.html This hyperlink will provide a copy of GPD-Waivers may be obtained by submitting a written request for exemptions to the DFA - Office of Information Services.

MOTOR VEHICLE RESTRICTIONS AND AUTHORIZATIONS

ACA§ 19-4-906 States:

" (a) None of the funds appropriated for the various state agencies, authorities, boards, commissions, departments, and institutions of higher education listed below shall be used to purchase, lease for over thirty (30) days, operate, repair, or provide services for more than the maximum number of passenger motor vehicles as set out in this section, except in an emergency as proclaimed by the Governor. Passenger motor vehicles are defined as those licensed for highway use, including, but not limited to, automobiles, trucks, and vans. Mileage reimbursement for employees' utilization of their personal automobiles shall not be deemed to be included in this restriction.

PLEASE NOTE: Go to

http://170.94.58.9/NXT/gateway.dll?f=templates&fn=default.htm&vid=blr:code to view complete code and list.

(b) The General Assembly recognizes that, in some cases, motor vehicles are donated to educational institutions and agencies primarily for use in automotive repair and maintenance courses and in instructional programs for truck operators and that such vehicles are not normally used for other purposes by the institutions and agencies and should not be included in the maximum number of authorized passenger vehicles prescribed for such institutions and agencies in this section.

Therefore, motor vehicles donated to educational institutions and agencies primarily for use in programs of instruction in automotive maintenance and repair, in operator training, and in related instructional programs shall not be included for the purpose of determining the number of vehicles authorized for any such institutions or agencies. The provisions of this section shall not be applicable to these vehicles.

(c) The Department of Human Services is exempt from the provisions of this section. Authority is granted to the department to purchase vehicles utilizing federal funds and the appropriate state matching funds required."

R 1-19-4 -906 The agencies detailed in ACA § 19-4-906 shall not use agency funds to purchase, lease for over 30 days, operate, repair or otherwise provide service for the maximum number of vehicles set out in such section, except as proclaimed an emergency by the Governor. (ACA § 19-4-906 )

19-4-907. Motor vehicle records.

The Chief Fiscal Officer of the State may direct all state agencies to maintain records with respect to all state-owned motor vehicles and may require that the agencies file reports on the vehicles covering the operating costs thereof.

History. Acts 1973, No. 876, § 16; A.S.A. 1947, § 13-342.

To facilitate the reporting of such information, the following reports shall be filed periodically with DFA-OIS: (ACA §19-4-907, ACA § 22-8-209, ACA § 25-1-110 )

R 1-19-4 -907, Vehicle Usage Reporting

MV-1 The Personal Mileage Reimbursement (MV-1) Form created to assist agencies with the reporting of mileage reimbursement (monthly) for personal auto use on the MV-3 Form. The MV-1 Form is not required to be submitted to DFA-OIS (quarterly).

MV-2 The Individual State Vehicle Report (MV-2) Form is a Monthly report required for each motor vehicle an agency owns or operates. The form provides information on the operation of vehicles. Copies of the forms are submitted to DFA-OIS by June 30th annually each year for the period of April 1st of the preceding calendar year through March 31st of the current calendar year, on all 1982 and newer models. For this purpose only, these forms need not be submitted on emergency/law enforcement vehicles.

This submission is commonly referred to as the Annual Fleet-Wide Submission. Agencies also total the information contained on this form quarterly and enter it on the Quarterly Vehicle Report (MV-3) Form.

MV-3 The Quarterly Vehicle Report (MV-3) Form is used to report overall motor vehicle cost including, mileage reimbursement. The form is required to be completed by each agency with a Business Area Code of 0100 or greater which owns/operates motor vehicles and/or reimburses employees/individuals for personal vehicle use while conducting official State business.

The form shall be submitted no later than the last day of the second month following the reporting period, i.e., the July-September Report is due no later than November 30th. Agencies that do not own/operate motor vehicles and/or reimburse employees/individuals for personal vehicle use will submit this report as a "no activity" report each July and will be exempt from further submissions during the fiscal year, if their status remains unchanged.

MV-4 The State Vehicle Mileage Reimbursement (MV-4) Form is required quarterly from agencies with a Business Area Code of 0100 or greater to report reimbursements made by employees for mileage. Each agency which employs personnel that utilize State owned vehicles in commuting to and from their Official Station, regardless of whether or not reimbursements have been made, shall submit this report quarterly no later than the last day of the second month following the reporting period, i.e., July-September Report is due no later than November 30th. Reimbursement is required only if the one-way mileage between home and office exceeds 10 and the employee is "authorized" rather than officially "required" by the agency to commute. However, all employees who commute must be listed regardless of mileage or commuting status (authorized/required). Agencies with employees who are "officially" required to commute in State owned vehicles will enter a check in the "REQ" column of the MV-4 Form following the names of the applicable employees. Agencies that do not have employees that utilize State owned vehicles in commuting will submit this report as a no activity report each July and will be exempt from further submissions during the fiscal year, if their status remains unchanged. Refer also to ACA§ 19-4-903 for more information regarding personal use of State vehicles.

R 2-19-4 -907 Reimbursable Use of State Vehicle

Reimbursement for the Use of State-Owned or Leased Motor Vehicles for Transportation To and/or From an Employee's Residence - ACA § 19-4-903(b) (2) (A) states " any employee of the State of Arkansas, who utilizes, but whose job does not require the employee to utilize, a State-owned motor vehicle for transportation to or from his permanent residence from or to his official station on a daily basis shall reimburse the fund from which the operating expenses of the motor vehicle are paid at the rate of $0.15 cents per mile for each mile or portion thereof in excess of ten (10) miles each way provided that all State-owned or leased vehicles shall be for official business use only.

The administrative head of each State agency, board, commission, department, and institution shall be responsible for determining which of their employees utilize a State-owned or leased vehicle for transportation to and/or from their permanent residence to their official place of duty that exceed the distance of ten (10) miles each way by the shortest route. A permanent record of such employees shall be established in each agency containing the following:

1. Name of the employees;
2. Address of their permanent residence and official duty station;
3. Number of miles between their permanent residence and their official duty station;
4. Number of miles or portion thereof which exceed ten (10) miles each way or twenty (20) miles per day;
5 . The amount each employee will be required to reimburse the State at the rate of fifteen (15) cents per mile daily;
6. Amount billed to each employee;
7. Amount paid by each employee.

Each agency will establish a system of billing employees for reimbursements required and receipting for payments received from the employees. All reimbursements collected will be deposited promptly, (at least monthly), to the general ledger account from which the operating expense of the particular motor vehicle is paid by the agency."

Each State agency, board, commission, department, and institution shall be responsible for maintaining records prescribed herein and copies of transactions concerning mileage reimbursement for audit purposes.

MOTOR VEHICLE REVOLVING FUND (MMV)

19-5-1002. Motor Vehicle Acquisition Revolving Fund.
(a) There is established on the books of the Treasurer of State, Auditor of State, and the Chief Fiscal Officer of the State a fund to be known as the Motor Vehicle Acquisition Revolving Fund.
(b) This fund shall be used for the purpose of acquiring motor vehicles as authorized by §§ 22-8-201 thru 22-8-209
(c) The fund shall be financed by:
(1) Its proportionate share of moneys made available from the allocation of general revenues as authorized by the Revenue Stabilization Law, § 19-5-101 et seq.;
(2) Moneys made available upon the disposal of used vehicles, which moneys shall be deposited to the credit of the Motor Vehicle Acquisition Revolving Fund rather than being deposited to the owing state agency's fund;
(3) Deposits of moneys from benefiting state agencies; and
(4) Transfers from other Treasury funds and fund accounts of benefiting state agencies.

History. Acts 1973, No. 750, § 7; 1985, No. 888, § 9; A.S.A. 1947, § 13-523.

R 1-19-5 -1002 Acquisition Policies

The DFA Director is the agent authorized to purchase new and used vehicles for all "non-exempt" State agencies, boards, commissions, departments, and institutions of higher education (agencies). Such purchases shall be made from the Motor Vehicle Acquisition Revolving Fund (MMV Fund) which was established for the purpose of acquiring motor vehicles of the state. The amounts deposited into this fund include a portion of State general revenues as authorized by the Revenue Stabilization Law, amounts received upon the disposal of used vehicles and deposits or transfers from benefiting agencies. (ACA § 19-5-1002, ACA § 22-8-206 (a-c), ACA § 22-8-207 )

R 2-19-5 -1002 Disposal of Vehicles

When a vehicle, belonging to a non-exempt agency, is sold by M & R, the funds received for that sale are deposited into the Revolving Account and not the specific agency account.

EXCEPTIONS:

When the vehicle being sold is in the one ton or larger, (12 or 15 passenger vans, semi tractor trucks, etc), the proceeds received from the sale of that vehicle is returned to the agency.)

If a vehicle is purchased or supported by a State or federal grant which requires the proceeds of such sale to revert back to the owning agency, proceeds received from that sale are returned to the agency ONLY after proper documentation is received by M & R from the owning agency.

If a vehicle less than one ton in size is declared a "total loss" as the result of an accident or other form of damage, the proceeds received from the insurance company will be deposited into the owning agency's individual MMV account. The funds received will be used to replace the vehicle totaled in the accident. If the proceeds amount is greater than the cost of the replacement vehicle, the MMV Revolving Fund will absorb the remainder of the proceeds.

22-8-101. Registration of state-owned motor vehicles - Report.
(a)
(1) In order that a complete inventory of all state-owned motor vehicles is maintained, every state agency, including the Arkansas State Highway and Transportation Department, the Arkansas State Game and Fish Commission, the Department of Arkansas State Police, the National Guard, and all constitutional offices shall annually register each motor vehicle owned by the State of Arkansas with the Director of the Department of Finance and Administration in a manner prescribed by the director.
(2) The registration shall include a description of each motor vehicle including the year, make, model, license number, vehicle identification number, and other information which the director might require.
(3) Whenever any state agency sells or disposes of a motor vehicle, a complete record thereof shall be furnished to the director as authorization for the removal of the vehicle from the official state inventory.
(4) Whenever any state agency acquires a new or additional motor vehicle, the information required by this subsection to be placed in the state inventory shall be furnished to the director within ten (10) days after the acquisition of the vehicle by the agency.
(5) The director shall keep the inventory of motor vehicles owned by the State of Arkansas and its agencies current at all times, categorized in accordance with the motor vehicles owned by each of the respective state agencies.
(b)
(1) The director shall make an annual report to the Legislative Council as to the number of motor vehicles owned by the State of Arkansas.
(2) The report shall include a comparison of the current inventory of motor vehicles with an inventory of the preceding year.

History. Acts 1977, No. 455, §§ 1, 2; A.S.A. 1947, §§ 14-524, 14-525.

INVENTORY REPORTING

R 1-22-8 -101 Vehicle Inventory

Each State agency shall maintain records of all State owned motor vehicles within their control and the related operating cost.

R 2-22-8 -101 Inventory Reporting

DFA - OIS maintains an inventory of all State owned and operated motor vehicles. To ensure the accuracy of State agency vehicle inventory data, copies of the Inventory are distributed to each agency semi-annually, in January and July of each year, by DFA -OIS. Agencies are to verify their Inventory by marking any changes, additions, or deletions on the inventory data sheet submitted to the agency, signing the inventory data sheet to certify verification and returning it to DFA-OIS before the last day of the month following the month of inventory generation, August and February, respectively. (ACA § 19-4-907 )

LEASING AND RENTING OF VEHICLES

22-8-102. Leasing and renting of vehicles by state agencies.
(a) For purposes of this section:
(1) "Lease" means obtaining the use of a motor vehicle from any source for a monetary fee, for a period of thirty-one (31) days or more; and
(2) "Rental" means obtaining the use of a motor vehicle from any source for a monetary fee for a period of thirty (30) days or less.
(b)
(1) Before any state agency shall lease any motor vehicle or renew any existing lease for a motor vehicle, the agency shall submit a written request to the State Procurement Director identifying the motor vehicles sought to be leased by the agency and all facts and circumstances the director may request to enable him to determine the economics, need, and feasibility of leasing the motor vehicle.
(2) Upon receipt, the director shall review the request to lease the motor vehicle, and if he or she determines that the lease is in the best interest of the State of Arkansas and that the agency has adequate funds to pay the lease, he or she may approve the request but only if he or she has first received the approval of the Legislative Council.
(3) After receiving the approval of the Legislative Council, the director shall stamp his or her approval on the request and return it to the state agency, which may then proceed to enter into the lease as proposed and approved by the director.
(4) In emergency situations, the director may approve a temporary lease of a motor vehicle, not to exceed thirty (30) days, but only if he or she has sought the advice of the chair of the Legislative Council and scheduled the temporary lease of a motor vehicle for consideration at the next meeting of the Legislative Council.
(c) If the director disapproves a proposed lease of a motor vehicle, he or she shall stamp his or her disapproval on the request and return it to the state agency, and it shall be unlawful for the state agency to proceed to lease the motor vehicle.

History. Acts 1977, No. 455, § 3; A.S.A. 1947, § 14-526; Acts 2001, No. 588, § 1.

R 1-22-8 -102 An approved MV6 form must accompany the written request to rent or lease a vehicle to the Director of the Office of State Procurement. Agencies with Business Area Code of 0100 or greater will proceed only after receiving the approved MV6 form.

22-8-103. Penalty for noncompliance with §§ 22-8-101 and 22-8-102

Any department head or employee of the State of Arkansas failing or refusing to carry out the provisions of §§ 22-8-101 and 22-8-102 shall be deemed guilty of a Class B misdemeanor and upon conviction shall be punished in the manner provided by law.

History. Acts 1977, No. 455, § 4; A.S.A. 1947, § 14-527.

22-8-104. Private use of state or county vehicles - Penalty.
(a) It shall be unlawful for any state or county employee, who is employed by the Arkansas State Highway and Transportation Department or by a county highway department, county judge, or road commissioner to use trucks and automobiles that belong to the state or county for any purpose other than performing actual service for the state or county.
(b) The use of publicly owned cars and trucks for individual use to make pleasure trips on Sundays and other holidays, except when going to and from the place of employment or transporting tools, material, and other supplies to places of necessity, is prohibited.
(c) The provisions of this section shall not be so construed as to prevent judges and road commissioners from making road inspection trips when the judge or road commissioner deems the inspections necessary.
(d) Any person who violates any of the provisions of this section shall be guilty of a misdemeanor and upon conviction shall be fined not less than fifty dollars ($50.00) and not more than one hundred dollars ($100).

History. Acts 1941, No. 318, §§ 1, 2; A.S.A. 1947, §§ 14-501, 14-502.

ACQUISITION CRITERIA AND PROCESS

22-8-201. Title.

This subchapter may be known as the "Automobile and Pickup Truck Acquisition Act for the State of Arkansas".

History. Acts 1983, No. 493, § 1; A.S.A. 1947, § 14-528.

22-8-202. Purpose.

The purpose of this subchapter is to establish procedures for the acquisition, disposal, and reassignment by the Department of Finance and Administration of automobiles and pickup trucks, as defined in § 22-8-203, to be acquired, owned, or otherwise disposed of by certain state agencies, boards, commissions, departments, and institutions of higher education.

History. Acts 1983, No. 493, § 2; A.S.A. 1947, § 14-529.

22-8-203. Definitions.

As used in this subchapter, unless the context otherwise requires:

(1) "Automobile" means a motorized vehicle equipped with pneumatic tires used for the transportation of persons, as commonly known and recognized by the Revenue Division, Department of Finance and Administration, as a pleasure vehicle for licensing purposes as established by § 27-14-601(a)(1);
(2) "Pickup truck" means a motorized vehicle equipped with pneumatic tires which are regularly and commonly rated as having a load capacity not exceeding three-fourths (3/4) ton, as recognized by the Revenue Division, Department of Finance and Administration, for licensing purposes for trucks and trailers, as established in § 27-14-601(a)(3)(A);
(3) "State agency" means a state agency, board, commission, department, or institution of higher education which derives any financial support from the fund accounts enumerated in §§ 19-5-302 - 19-5-304, 19-5-306, 19-5-307, 19-5-1011, 19-6-404, 19-6-411, and 25-4-117;
(4) "State Vehicle Inventory and Control System" means an automated system maintained by the Department of Finance and Administration to record and control the size and composition of the state's vehicle fleet and to accumulate historical data on the costs associated with the vehicle fleet;
(5) "Emergency vehicle" means an automobile or pickup truck used in law enforcement or for protection of the public peace and health of the citizens of Arkansas;
(6) "Vehicle" or "motor vehicle" means an automobile or pickup truck as defined in this section, unless used out of context in implementing the purposes and intent of this subchapter.

History. Acts 1983, No. 493, § 3; A.S.A. 1947, § 14-530.

22-8-204. Applicability.

This subchapter shall not apply to the elected constitutional officers of the state, to the moneys appropriated by the General Assembly for financing the statutory responsibilities of these officers, to the Arkansas State Highway and Transportation Department, nor to any local political subdivision. History. Acts 1983, No. 493, § 4; A.S.A. 1947, § 14-531.

R 1-22-8 -204 Exempted Agencies and Officials

Elected constitutional officers, the Arkansas State Highway and Transportation Department and agencies with Business Area Code of 0100 and greater which derive no financial support from general revenues are exempt from acquisition regulation requirements as required by the Automobile and Pickup Truck Acquisition Act of the State of Arkansas (the priority listing) and are defined as "Exempt" agencies. All other agencies are considered non-exempt agencies. (ACA § 22-8-203, ACA § 22-8-204 )

22-8-205. Allocation of vehicles - Priority listing.
(a) Each state agency requesting the acquisition of an automobile or pickup truck shall:
(1) Have its existing automobiles and pickup trucks included on the state vehicle inventory and control system;
(2) Not exceed the number of motor vehicles as authorized by law for the agency; and
(3) Submit a schedule as required for replacing its automobiles or pickup trucks reflecting each vehicle's historical information, the need for replacement, and the disposition of the existing vehicle.
(b) From the information provided by state agencies requesting the acquisition of automobiles or pickup trucks, the Department of Finance and Administration shall prepare a prioritized ranking for the then-current fiscal year based upon:
(1) Age of the vehicle to be replaced;
(2) Actual and projected mileage of the vehicle to be replaced;
(3) A history of repair costs of the vehicle to be replaced;
(4) Number and average age of each state agency's fleet of vehicles; and
(5) Condition of state agency fleet and cost of maintenance of its vehicles.
(c) The Director of the Department of Finance and Administration, through its Marketing and Redistribution Section, shall have the authority to reassign a vehicle from a state agency to another state agency based upon need, age, condition, utilization, and justification but not to decrease a state agency's actual number of vehicles owned.
(d) The Director of the Department of Finance and Administration shall review the schedule of prioritized ranking for acquiring vehicles, and he shall have the authority to make changes, as he deems necessary, to the priority listing. He shall then forward the priority listing to the Governor for his approval or modification.
(e) Upon securing the Governor's approved priority listing for acquisition of motorized vehicles, the Director of the Department of Finance and Administration shall then proceed to acquire the vehicles, and he shall ensure that the replaced vehicle is transferred to the Marketing and Redistribution Section of the Department of Finance and Administration within thirty (30) days for disposal.

History. Acts 1983, No. 493, § 5; A.S.A. 1947, § 14-532.

VEHICLE REQUEST FORM (MV-5)

R 1-22-8 -205 MV-5 Each non-exempt agency requesting State vehicle replacements or fleet additions shall submit a completed Annual State Vehicle Request ("MV-5") Form which lists all requests to be considered during the fiscal year. The MV-5 Form shall be submitted to DFA-OIS before July 31st of each fiscal year. Submissions received after this date cannot be considered for the priority replacement listing. When requesting a replacement, the agency must have appropriately filed all required vehicles reports.

PLEASE NOTE: This form must be submitted, whether or not vehicles are being requested. If no vehicles are requested, write "NONE" on the form. This form is completed by non-exempt state agencies only. No vehicles, one ton or larger may be purchased using the MV-5 Form.

DFA-OIS uses the MV-5 Forms to prepare a prioritized ranking of requests. To be included in the ranking the agency shall have returned a certified copy of their most recent vehicle inventory and all other required reports to DFA-OIS, not have exceeded the maximum number of vehicles authorized by law for their agency and submitted the MV-5 Form.

A prioritized list of vehicles will be developed based on; the age of the vehicle(s) to be replaced, actual and projected mileage of the vehicle(s) to be replaced, historical repair costs of the vehicle(s) to be replaced, number and average age of each State agency's fleet of vehicles, and the condition of the State agency's fleet (cost of maintenance). The reassignment of vehicles between State agencies based upon need, age, condition, utilization and justification may be included in the priority listing.

The DFA Director shall make any changes deemed necessary to the prioritized list. After receiving the Governor's approval of the list, the DFA Director shall purchase vehicles. This may be accomplished by purchasing new or used vehicles, or by the transferring of vehicles currently held by Office of State Procurement- Marketing and Redistribution Section (M & R). (ACA § 22-8-205 )

R 2-22-8 -205 VEHICLES ACQUIRED BY YEARLY MV-5 PROCESS (Act 493 Prioritized Vehicles) Less than one ton in size.

After the "Act 493" prioritized list has been approved, agencies receiving "Act 493 prioritized" vehicles, except Institutions of Higher Education, will provide the following information to the DFA-Office of Information Services (DFA-OIS):

Asset shell number created by the agency requesting the vehicle, Cost Center, (should be the same as given for the fund transfer & PO Info) Agency Business Area, Functional Area, Fund and Fund Center, and WBS Element and/or Internal Orders, (if required).

Appropriation will be transferred to the requesting agency account using the codes provided above.

Internal Purchase Requisition will be processed by DFA-OIS and the Purchase Order will be processed by the DFA-Office of Administrative Services, Purchasing and Asset Management Section, (DFA-OAS-PAM).

AGENCIES REQUESTING VEHICLES WILL NOT PRINT PURCHASE ORDER FROM AASIS. REQUESTING AGENCY AND VENDOR WILL BE PROVIDED COPIES OF THE DOCUMENTS BY DFA-OAS-PAM.

After confirmation of receipt of vehicle and invoice, DFA-OAS FA will transfer funds to the requesting agency account, and payment will be made to the vendor, on behalf of the agency, by DFA-OAS-FA.

R 3-22-8 -205 Within 30 days of an agency's receipt of the vehicles purchased, the receiving agency will deliver the replaced vehicle to M & R. Substitutions for vehicles scheduled to be delivered to M & R may not be made without prior approval from DFA-OIS. When a vehicle that is due to be turned in to M & R, because it has been replaced by a new vehicle from the "Prioritized List", is retained and another substituted in it's place, the retained vehicle cannot be requested to be replaced from the "List" until the second annual cycle following the substitution.

(ACA § 22-8-205(e) )

EXAMPLE: Vehicles substituted on FY 2003 list cannot be requested as a "replacement" on "the list" until FY 2005.

PURCHASE OF VEHICLES PROCESS

22-8-206. Purchase of automobiles.
(a) The Director of the Department of Finance and Administration shall purchase vehicles for state agencies from moneys as appropriated and made available by the General Assembly.
(b) There is created and established upon the financial records of the Department of Finance and Administration, the Treasurer of State, and the Auditor of State a fund to be known as the "Motor Vehicle Acquisition Revolving Fund", which shall be used for the purpose of acquiring motor vehicles as authorized by this subchapter.
(c)
(1) The fund shall be financed by its proportionate share of moneys made available from:
(A) The allocation of general revenues as authorized by the Revenue Stabilization Law, § 19-5-101 et seq.;
(B) Moneys made available upon the disposal of used vehicles, which moneys shall be deposited to the credit of the Motor Vehicle Acquisition Revolving Fund rather than being deposited to the owning state agency's fund;
(C) Deposits of moneys from benefiting state agencies; and
(D) Transfers from other State Treasury funds and fund accounts of benefiting state agencies.
(2) Upon approval by the Chief Fiscal Officer of the State, the appropriation and funds shall be transferred from the Motor Vehicle Acquisition Revolving Fund to the designated appropriation and fund of the state agency.
(d)
(1) In the event that the director determines that any state agency, as defined by § 22-8-203(3), has sufficient funding from sources other than general revenues which may be used to purchase vehicles requested by the agency, he or she shall transfer, on his or her books and on the books of the Auditor of State and the Treasurer of State, an amount equal to the price of the vehicles from the fund from which the funding is available to the Motor Vehicle Acquisition Revolving Fund.
(2) Upon approval by the Chief Fiscal Officer of the State, the Motor Vehicle Acquisition Revolving Fund appropriation shall be transferred from the Motor Vehicle Acquisition Revolving Fund to the designated appropriation of the state agency.
(3) In the event that the funds are held in depositories other than the State Treasury, the administrative head of the affected state agency shall issue a check drawn against the funds, which shall be deposited in the Motor Vehicle Acquisition Revolving Fund as a nonrevenue receipt.
(e) All deposits and transfers, other than transfers from the General Revenue Fund Account of the State Apportionment Fund, made to the Motor Vehicle Acquisition Revolving Fund shall be classified as a refund to expenditure.
(f) After seeking the advice of the Legislative Council, in order to effectuate the intent and purposes of this subchapter, the Chief Fiscal Officer of the State shall have the authority to transfer appropriations:
(1) From the Property Sale Holding Appropriation to the Motor Vehicle Acquisition Revolving Fund appropriation; and
(2) From the appropriation or budget classification provided by the General Assembly for the purchase of automobiles or pickup trucks to the Motor Vehicle Acquisition Revolving Fund appropriation.
(g) The Department of Human Services is hereby exempt from this section insofar that federal funds and state general revenues necessary to match the federal funds may be transferred to the Motor Vehicle Acquisition Revolving Fund when the Director of the Department of Finance and Administration has determined that the Department of Human Services has sufficient funding which may be used to purchase requested vehicles.

History. Acts 1983, No. 493, §§ 6, 8, 10-12; A.S.A. 1947, §§ 14-533, 14-535, 14-537 -

VEHICLE REQUEST FORM (MV-6)

R 1-22-8 -206 MV-6 Any agency, with a Business Area Code of 0100 or greater, planning to acquire a vehicle, shall request purchase or lease of the vehicle(s) by submitting a State Vehicle Request (MV-6) Form. The completed MV-6 Form shall be accompanied by a MV-2 Form on the vehicle to be replaced. If the MV-6 Form is requesting a fleet addition, the MV-6 Form must be accompanied by MV-2 Forms on all agency vehicles. MV-2 Form(s) submitted shall cover the period since the last MV-2 Form submission until the end of the previous month. If the MV-2 Form was not required during the Fleet-Wide Submission, MV-2 Form(s) covering the preceding 12 months shall be submitted. A MV-6 Form is required for each vehicle requested.

EXCEPTION: If the MV-6 Form is for the purchase of a vehicle, one-ton or larger in size, the original, approved MV-6 Form will be returned to the requesting agency as documentation of approval. The requesting agency shall submit the MV-6 Form to the Office of State Procurement.

R 2-22-8 -206 If the MV-6 Form is for the purchase of a vehicle using agency non-general revenue funds, upon approval of the MV-6 Form, the head of the agency shall request the DFA - Director to transfer an amount equal to the vehicle purchase price from the fund containing the available agency funds to the MMV Fund. The available funds must be held in the Treasury. The head of the agency, or their designated representative, shall issue a letter authorizing DFA to transfer these funds and the transferred funds will be deposited in the MMV Fund. Upon receipt of the funds, the DFA-OIS shall purchase the requested vehicle. (ACA § 22-8-206 (d

PLEASE NOTE: State agencies with Agency Business Codes of 0100 or greater will complete and submit an MV6 form for the purchase or lease of any automobile, pickup truck, or vehicle, regardless of size of the vehicle requested. All acquisitions of vehicle(s) are accomplished by using either an MV6 form or an MV5 Form.

EXCEPTION: Exempt Agencies will have the original MV6 Form returned to them, and the agency will initiate the purchase of the vehicle approved on the MV6 form. The Office of State Procurement should be contacted in regard to the necessary steps to ensure the procurement of the vehicle.

R 3-22-8 -206 Proceeds from the sale or disposal of motor vehicles shall be deposited to the credit of the MMV Fund. Insurance proceeds, resulting from the disposition of wrecked vehicle(s), will be deposited into the MMV Fund and credited to the appropriate agency for use in acquiring a replacement vehicle. (ACA § 22-8-208, ACA § 22-8-206(c) (1) (b) )

R 4-22-8 -206 If the DFA Director determines that an agency has funds available that are not State General Revenues for the purchase of a vehicle or vehicles by the agency, the purchase price of the vehicle may be transferred to the MMV Fund.

The funds must be held in the State Treasury, the affected agency shall issue a letter authorizing DFA to transfer the funds in to the MMV Fund.

22-8-207. Purchase from qualified vendors.

The Director of the Department of Finance and Administration shall have the authority to purchase new or used vehicles from qualified vendors in accordance with the Arkansas Procurement Law, § 19-11-201 et seq.

History. Acts 1983, No. 493, § 9; A.S.A. 1947, § 14-536.

Visit the Office of State Procurement web site http://www.state.ar.us/dfa/purchasing/index.html for information.

22-8-208 Vehicle ownership.

Vehicles acquired or assigned under the provisions of this subchapter shall be the property of the state agency to which the vehicle is assigned, and legal title to the vehicle is to rest with the agency.

History. Acts 1983, No. 493, § 7; A.S.A 1947, § 14-534.

R 1-22-8 -208 The agency receiving the vehicle should confirm receipt of the vehicle and related invoice with the DFA-OAS. After receiving such confirmation, funds will be transferred to the requesting agency account and the payment to the vendor will be processed. Vehicles acquired through the MMV Fund become the property of the agency to which they are assigned.

22-8-209. Rules and regulations.

The Director of the Department of Finance and Administration, through his disbursing officer, is authorized to promulgate such rules and regulations as deemed necessary to implement the provisions and intent of this subchapter.

History. Acts 1983, No. 493, § 13; A.S.A 1947, § 14-540.

ACQUISITION REGULATIONS

Vehicles may be replaced or additions to an agency's fleet may be made only if one of the following guidelines is met. Governor's Policy Directive #3 (GPD-3)http://www.arkansas.gov/governor/policy_directives/policy_gpd3.html

R 1-22-8 -209 Replacement of Existing Vehicles

Vehicles are eligible for replacement if they meet one of the following replacement criteria:

. The vehicle has 75,000 or more miles

. The vehicle is at least 5 years old, or

. The vehicle has a documented need for repairs exceeding 50% of its NADA wholesale (trade-in) value.

The minimum anticipated annual mileage for the replacement automobile is 12,000 miles. The size of vehicles requested, to replace existing vehicles, shall be no larger than the vehicle to be replaced, unless the request is accompanied by adequate justification to up-size based on the same size criteria outlined under additions to fleet.

EXCEPTION: A vehicle may be purchased using federal funds and be exempt from the preceding regulation, ONLY if no State funds will be used in any way to support or maintain this vehicle. (this includes, but is not limited to license fees, gasoline, insurance, etc.)

After a vehicle acquisition is approved, AASIS participating or service bureau agencies to receive vehicles will provide the following information to the (DFA-OIS):

. The asset shell number created by the agency requesting the vehicle,

. Cost Center,(should be the same as given for the fund transfer & PO Info)

. Agency Business Area,

. Functional Area,

. Fund and Fund Center, and

. WBS Element and/or Internal Order, (if required).

If the purchase is not from the prioritized ranking process, the agency shall remit funds to DFA-OIS at this time. Only non-general revenue funds may be used by an agency, other than DFA, to purchase vehicles less than one ton in size. If possible, the funds should be remitted through a fund transfer. No warrants will be accepted from "AASIS participating" agencies. Payment for a vehicle shall not be funded from multiple sources.

EXCEPTION: Checks/warrants will be accepted from "Reporting agencies" ONLY. Institutions of higher education See Page 5 of the "Quick Reference Guide" for procurement of vehicle(s).

After all above applicable items have been received by Department of Finance and Administration - Office of Administrative Services -DFA-OIS, the Fiscal Accounting Section will transfer the appropriation to the agency that will receive the vehicle using the codes provided above.

The Purchase Requisition for all vehicles will be processed by DFA-OIS. The related Purchase Order will be processed by the Department of Finance and Administration - Office of Administrative Services - Purchasing and Asset Management Section. The agency to receive the vehicle will be provided copy(s) of the Purchase Order(s). After approval of the MV-6 Form, requesting state agency will provide, in writing, to DFA-Office of Information Services, the DFA-Office of Administrative Services- Fiscal Accounting Section (DFA-OAS-FA) will transfer appropriation to the agency requesting the vehicle using the codes provided above. This transfer will be completed following receipt of the requesting agency's funds.

Internal Purchase Requisition will be processed by DFA-OIS and the Purchase Order will be processed by the DFA-Office of Administrative Services- Purchasing and Asset Management Section, (DFA-OAS-PAM).

AGENCIES REQUESTING VEHICLES WILL NOT PRINT THE PURCHASE ORDER FROM AASIS. REQUESTING AGENCY AND VENDOR WILL BE PROVIDED COPIES OF THE DOCUMENTS BY DFA-OAS-PAM.

INSTITUTIONS OF HIGHER EDUCATION - ONLY

After approval of the MV6 Form funds will be requested by DFA-Office of Information Services, (DFA-OIS).

PLEASE NOTE: Only non-general revenue funds may be used to purchase vehicles less than one ton in size.

Funds will be held by the DFA-Office of Administrative Services, Fiscal Accounting Section (DFA-OAS-FA). After confirmation of receipt of vehicle and invoice, DFA-OAS-FA will transfer funds into General Ledger Account, and payment will be made to the vendor.

Internal Purchase Requisition will be processed by DFA-OIS and the Purchase Order will be processed by the DFA-Office of Administrative Services, Purchasing and Asset Management Section, (DFA-OAS-PAM).

After confirmation of receipt of vehicle and invoice, DFA-OAS FA will make payment to the vendor on behalf of the requesting agency.

Requesting agency will be provided copy(s) of the Purchase Order(s).

MV-6 FORM REPLACEMENT REQUEST

Complete the form and attach the corresponding MV2 for the vehicle you wish to replace. (MV2 should cover at least a 12-month period.) Be sure and use the appropriate code for the type of vehicle requested. (These codes can be found on the current state contract for vehicles.) http://www.state.ar.us/dfa/purchasing/contracts.html#Veh

If any available options are requested, please list them on the form. Upgrades in vehicle type should be justified either on the form, or by attaching to the form, the proper documentation supporting the upgrade in vehicle type. Be sure and provide the replacement vehicle information in the appropriate space on the MV-6 Form. Vehicle being replaced is due to DFA-Marketing and Redistribution Section no later than 30 days after receipt of the new vehicle.

If the replacement request is approved, the Department of Finance and Administration, Office of Information Services, will notify the requesting agency of the approval. The agency shall at this time provide the Department of Finance and Administration, Office of Information Services, proper funding for the procurement of the vehicle, (if the vehicle is less than one ton in size), color selections, exterior and interior, a contact and phone number for the delivery of the vehicle; and, a delivery address for the vehicle. (Post Office Boxes are not acceptable for delivery addresses. Please provide a physical address for the delivery address.) Any substitutions for vehicles due to M & R must be approved by DFA PRIOR to turning in a vehicle due against a replacement request. When a vehicle, that is due to be turned in to M & R because it has been replaced by a new vehicle from the "Prioritized List", is retained and another substituted in it's place, the retained vehicle cannot be requested to be replaced from the "List" until the second annual cycle following the substitution.

PLEASE NOTE: Substitutions approved against agency funded request are not required to wait.

Appropriations may be transferred from the MMV Fund to the State agency for such purposes upon the approval of the DFA Director. Additionally, the DFA Director shall have the authority to transfer the appropriations from the Property Sale Holding Appropriation or the budget classification provided by the General Assembly for the purchase of automobiles to the MMV Fund, after receiving an opinion from the Legislative Council. All deposits and transfers to the MMV Fund, other than general revenues pursuant to the Revenue Stabilization Law, shall be recorded as a refund to expenditure. (ACA § 22-8-206 (d-f))

Agencies should submit documentation when changing vehicle replacement types. (Example: If an agency has a 1/2 ton pickup truck and the agency requests a 3/4 ton pickup truck, the requesting agency must attach appropriate justification why the larger vehicle is needed. Agencies should be prepared to submit justification for any upgrades.)

The Internal Purchase Requisition and Purchase Order for the above vehicle(s) will be processed by the DFA-Office of Information Services and DFA-Office of Administrative Services.

Vehicles, less than one ton in size, may not be purchased with general revenue funds. Other funding sources shall be used by agencies to purchase vehicles less than one ton in size.

Agencies requesting vehicle(s) shall first complete an MV-6. After approval of the MV6 form, the agency shall either issue a check to the MMV Fund, or designate in writing, the funding source from which the funds will be transferred to allow the procurement of the vehicle.

At this time, the agency requesting the vehicle should provide the Department of Finance and Administration, Office of Information Services, color selections, exterior and interior, a contact and phone number for the delivery of the vehicle; and, a delivery address for the vehicle. (Post Office Boxes are not acceptable for delivery addresses. Please provide a physical address for the delivery address.)

R 2-22-8 -209 ADDITIONS TO FLEET

Fleet additions will be made only if the average miles of agency fleet automobiles are greater than 12,000 miles and there is extensive justification to clearly prove the need for an additional vehicle. In no case can the total number of vehicles exceed the maximum number authorized by ACA § 19-4-906.

An agency may not exceed the maximum number of vehicles authorized. If an agency has reached their maximum number of vehicles authorized, an addition to fleet cannot be processed until the agency's fleet cap has been increased to encompass the addition to fleet. The addition to the fleet cap will be properly processed only after a fleet utilization has been completed and the proper documentation, supporting the addition to fleet has been received.

If the fleet cap is increased, DFA-OIS will then process the MV-6 form for approval/disapproval. If approval is granted, the agency shall at this time provide DFA-OIS proper funding information for the procurement of the vehicle, ( if the vehicle is less than one ton is size), color selections, exterior and interior, a contact and phone number for the delivery of vehicle; and, a delivery address for vehicle. (Post Office Boxes are not acceptable for delivery addresses. Please provide a physical address for the delivery address.)

The maximum allowable size of vehicles requested as fleet additions will be calculated as follows:

. A subcompact will be allowed if 2 or less passengers utilize the vehicle for more than 50% of miles.

. A compact vehicle will be allowed if 3 or 4 passengers utilize the vehicle for more than 50% of miles.

. A mid-sized vehicle will be allowed if 5 or more passengers utilize the vehicle for more than 50% of miles.

. A full-size car requires the Governor's approval.

. The purchase of station wagons may only be purchased for the purpose of carrying heavy or bulky equipment more than 50% of miles and utilize the size criteria outlined above.

. The purchase of light trucks (vans and pickups) requires a minimum load capacity that will carry required equipment and personnel.

. The purchase of a ½ ton pickup truck or greater requires additional justification concerning pickup box size or towing requirements.

. Vans shall be used only when transportation of bulky equipment, 6+ passenger or special-needs passenger transport is required.

. One ton vans will be used only for frequent personnel transport with more than 50% of the miles at full capacity.

All automobiles, pickup trucks, and vans less than one-ton in size, of non-exempt agencies, must be purchased through the MMV Fund by DFA. Additionally, all non - exempt agencies shall follow the following acquisition regulations. (ACA § 19-5-1002, ACA § 22-8-209 )

MV-6 FORM - ADDITION TO FLEET

Complete the form and attach MV2's, (period covered should be the first of April through the end of the previous month in which the form is submitted), for the entire agency fleet. Be sure and use the appropriate code for the type of vehicle requested. (These codes can be found on the current state contract for vehicles.) http://www.state.ar.us/dfa/purchasing/contracts.html#Veh If any available options are requested, please list them on the form. Upgrades in vehicle type should be justified either on the form or by attaching the proper justification to the form.

22-8-210 Motor vehicle renovation
(a) Funds deposited into the Motor Vehicle Acquisition Revolving Fund created by § 19-5-1002(a) and § 22-8-206(b), which may be made available for the purchase of motor vehicles for the Department of Arkansas State Police, may in addition be made available and used for expenses associated with the renovation of state police motor vehicles.
(b) If the Director of the Department of Arkansas State Police determines the cost associated with renovating or repairing state police motor vehicles is economically beneficial, he shall contract with a qualified vendor and, when invoiced, shall submit said invoice to the Chief Fiscal Officer of the State who shall direct payment from moneys set aside in the Motor Vehicle Acquisition Revolving Fund for the Department of Arkansas State Police.

History. Acts 1993, No. 108, § 1.

VEHICLE EFFICIENCY ACT REQUIREMENTS

25-1-110 Cost-effectiveness of state-owned vehicles
(a) Each agency shall ensure that the purchase and continued ownership of state-owned vehicles is cost effective for the agency.
(b)
(1) Each agency shall determine if the purchase or continued ownership of a vehicle is cost effective based upon a comparison between state vehicle ownership and private car mileage reimbursement break-even points, as established pursuant to regulations promulgated by the Department of Finance and Administration.
(2) The comparison shall be based upon the previous year's use of the state-owned vehicle.
(c) On June 1 of every year, each agency shall provide the department a report including:
(1) The number of agency vehicles;
(2) The mileage used on the agency vehicles;
(3) Any private car mileage reimbursements; and
(4) Justification for retention of all vehicles identified as under-utilized.
(d) By September 1 of each year, the department shall provide each agency and the Legislative Council with recommendations concerning the continued ownership of state-owned vehicles by each agency.
(e) The provisions of this section do not apply to institutions of higher education and vocational technical institutes.

History. Acts 2001, No. 1711, § 1.

R 1-25-1 -110 Report due

No later than June 1, of each year, all state agencies (other than institutions of higher education), including, but not limited to, Constitutional and Elected Officials offices, the Game and Fish Commission and the State Highway and Transportation Department owning a vehicle and/or paying personal mileage reimbursement to their employees or board members, is required to report to DFA-OIS concerning this requirement.

On June 1st of each year each agency referenced above, shall provide DFA-OIS with the number of agency vehicles, the mileage driven on the agency vehicles, any private car mileage reimbursements and justification for retention of any vehicles identified as under-utilized. By September 1st of each year DFA shall provide each agency and the Legislative Council with recommendations regarding the continued ownership of State owned vehicles by each agency. To facilitate the reporting of such information, the following information shall be filed annually with the DFA-OIS. (ACA§ 19-4-907, ACA § 25-1-110 )

Signed this ______ day of _____________ 2004 in the City of Little Rock, Pulaski

County, Arkansas.

_______________________________

Richard A. Weiss, Director

Department of Finance and Administration

Notes

006.05.04 Ark. Code R. § 004
9/9/2004

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