HomeMy WebLinkAboutOrdinance 6847113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Ordinance: 6847
File Number: 2025-136
REPEAL ORDINANCE 6800 (ORDINANCE):
AN ORDINANCE TO REPEAL ORDINANCE 6800 AS AMENDED
WHEREAS, Ordinance 6800 has been determined by both the Arkansas Attorney General and the Fayetteville City
Attorney to likely violate A.C.A. § 14-43-608.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals Ordinance 6800 as previously
amended.
PASSED and APPROVED on March 4, 2025
Approved: Attest:
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Molly Rawn, Mayor Kara Paxton, City Clerk Treasurer
This publication was paid for by the City Clerk -Treasurer of the City of Fayetteville, Arkansas.
Amount Paid: $65.36
Page 1
City of Fayetteville, Arkansas 113 West Mountain Street
Fayetteville, AR 72701
(479) 575-8323
Legislation Text
File #: 2025-136
REPEAL ORDINANCE 6800 (ORDINANCE):
AN ORDINANCE TO REPEAL ORDINANCE 6800 AS AMENDED
WHEREAS, Ordinance 6800 has been determined by both the Arkansas Attorney General and the
Fayetteville City Attorney to likely violate A.C.A. § 14-43-608.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
FAYETTEVILLE, ARKANSAS:
Section 1: That the City Council of the City of Fayetteville, Arkansas hereby repeals Ordinance 6800
as previously amended.
Page 1
CivicClerk No.: 2025-
AGENDA REQUEST FORM
FOR: Council Meeting of February 4, 2025
FROM: City Attorney Kit Williams
ORDINANCE OR RESOLUTION TITLE AND SUBJECT:
AN ORDINANCE TO REPEAL ORDINANCE 6800 AS AMENDED
APPROVED FOR AGENDA:
Kit i iams 1 Date
DEPARTMENTAL CORRESPONDENCE
OFFICE OF THE
CITY ATTORNEY
TO: Mayor
City Council
Kara Paxton, City Clerk/Treasurer
Kit Williams
City Attorney
Blake Pennington
Senior Assistant City Attorney
Hannah Hungate
Assistant City Attorney
Stacy Barnes
CC: Keith Macedo, Chief of Staff paralegal
Paul Becker, Chief Financial Officer
Jonathan Curth, Development Services Directo
FROM: Kit Williams, City Attorney --
DATE: January 23, 2025
RE: Ordinance To Repeal Ordinance 6800 Which Was To Enact § 120.03 Limitation
On Rental Applications And Background Check Fees
I just received Opinion No. 2024-093 from Arkansas Attorney General Tim
Griffin (attached). As you can see, the Attorney General completely agreed with my
legal analysis of the application of both state statutes upon your ordinance to limit the
allowed amount charged for rental applications and background check fees. The
Attorney General states Ordinance 6800 "likely does not violate this statute (A.C.A. §
14-54-1409)." He then opines that Ordinance 6800 "likely violates" A.C.A. § 14-43-608.
As I informed you in my memo of December 12, 2024, A.C.A. § 14-43-608
Regulation of Prices "would likely invalidate Ordinance 6800." The Arkansas Attorney
General's Opinion confirms this and so I recommend again that you now pass an
ordinance to repeal Ordinance 6800. I do appreciate that you agreed to amend
Ordinance 6800 to provide time for the Arkansas Attorney General to render his
Opinion and to ensure this questionable Ordinance would no go into effect in possible
violation of state law. I have attached a proposed Ordinance to repeal Ordinance 6800.
We also just learned that a bill has been filed to amend A.C.A. § 14-54-1409 Rent
Control Preemption to expressly include application fees and even deposit fees so in
future that code section would also invalidate and prohibit a city regulating ordinance.
Both the Attorney General and I believe that this statute's current wording would not
have invalidated your regulating ordinance. (Attached is Senate Bill 91.)
TIM GRIFFIN
ATTORNEY GENERAL
Opinion No 2024-093
January 22, 2025
The Honorable Robin Lundstrum
State Representative
Post Office Box 14
Elm Springs, Arkansas 72728
Dear Representative Lundstrum:
I am writing in response to your request for an opinion regarding an ordinance passed by the
Fayetteville City Council on October 15, 2024, which caps the fees landlords may charge
prospective tenants for rental applications and background checks. You state that "the ordinance
limits background fees to an amount not to exceed $40, and if no background check is done, the
maximum rental application fee is limited to $20. If a landlord charges a background check fee
and then does not obtain the background check, the fee must be returned in full to the potential
tenant."
You report that numerous constituents have raised concerns about this ordinance. Against this
background, you ask the following question:
Can a city propose, pass, and enact an ordinance, like the aforementioned, that
limits, restricts, or hinders what private business may charge for its services, goods,
or contracts?
RESPONSE
A city cannot enact an ordinance that regulates what private individuals or businesses may charge
for goods, rentals, or services sold or performed within the city.
323 CENTER STREET, SUITE 200
LITTLE ROCK, ARKANSAS 72201
The Honorable Robin Lundstrum
State Representative
Opinion No. 2024-093
Page 2
DISCUSSION
Because cities only have the power given to them by statute or the Arkansas Constitution,' local
ordinances that conflict with state law are invalid .2 There are two State laws that could potentially
prohibit Fayetteville from enacting Ordinance 6800.
First, A.C.A. § 14-54-1409 prohibits local governments from enacting or enforcing rent control ordinances.3 The ordinance you describe likely does not violate this statute because it caps the fees
associated with an application to rent, rather than "the amount of rent charged" itself.
Second, A.C.A. § 14-43-608 bars municipalities from regulating "prices for goods, rentals, or
services sold or performed within the municipality by individuals or firms."4 The ordinance likely
violates this statute. While there are no appellate court cases construing § he ordinance
it likely
my
opinion that the statute's broad wording, which clearly includes "services," prevents a city from
passing an ordinance to cap the fees a private entity charges to process a rental application or to
conduct a background check.
Senior Assistant Attorney General Kelly Summerside prepared this opinion, which I hereby
approve.
Sincerely,
TIM GRIFFIN
Attorney General
'Protect Fayetteville v. City of Fayetteville, 2019 Ark. 30, 3, 565 S. W.3d 477, 480.
2 Ark. Const. art. 12, § 4 ("No municipal corporation shall be authorized to pass any laws contrary to the general laws
of the state...."); Protect Fayetteville, 2019 Ark. at 3, 565 S.W.3d at 480.
3 See A.C.A. § 14-54-1409(b) ("A local governmental unit shall not enact, maintain, or enforce an ordinance or
resolution that would have the effect of controlling the amount of rent charged for leasing private residential or
commercial property."). An exception exists, however, for local governments "to manage and control residential
property in which the local governmental unit has a property interest." A.C.A. § 14-54-1409(c).
4 A.C.A. § 14-43-608(a). As with A.C.A. § 14-54-1409, there is an exception that allows a municipality to establish
the price for goods, rentals, or services furnished by, or performed by, the municipality. See A.C.A. § 14-43-608(b).
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Stricken language would be deleted from and underlined language would be added to present law.
State of Arkansas
95th General Assembly A Bill
Regular Session, 2025 SENATE BILL 91
By: Senators C. Penzo, J. Bryant
By: Representatives Ray, B. McKenzie
For An Act To Be Entitled
AN ACT TO PROVIDE THAT LOCAL GOVERNMENTAL UNITS SHALL
HAVE NO AUTHORITY TO REGULATE OR CONTROL THE AMOUNT
CHARGED FOR A RENTAL APPLICATION FEE OR RENTAL
DEPOSIT FOR PRIVATE RESIDENTIAL OR COMMERCIAL
PROPERTY; AND FOR OTHER PURPOSES.
Subtitle
TO PROVIDE THAT LOCAL GOVERNMENTAL UNITS
SHALL HAVE NO AUTHORITY TO REGULATE OR
CONTROL THE AMOUNT CHARGED FOR A RENTAL
APPLICATION FEE OR RENTAL DEPOSIT FOR
PRIVATE RESIDENTIAL OR COMMERCIAL
PROPERTY.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
SECTION 1. Arkansas Code § 14-16-601 is amended to read as follows:
14-16-601. Rent, rental application fee, and rental deposit control
preemption — Definition.
(a) As used in this section, "local governmental unit" means a
political subdivision of this state, including but net limited ter without
limitation a county, city, village, or township, if the political subdivision
provides local government services for residents in a geographically limited
area of this state as its primary purpose and has the power to act primarily
on behalf of that area.
(b)(1) A As to leasing private residential or commercial property, a
local governmental unit shall not enact, maintain, or enforce an ordinance or
O1/23/2025 8:48:54 AM LJH008
SB91
1 resolution that would have the effect of controlling the amount e€ rent
2 charged for: leaping private 4 aP:R#ig1
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(A) Rent;
(B) Rental application fees; or
(C) Rental deposits.
(2) The preemption against rent, rental application fees, and
rental deposit control in subdivision (b)(1) of this section applies to all:
(A) Landlords:
(B) Property owners;
(C) Property managers;
(D) Tenants;
(E) Prospective tenants; and
(F) Real estate companies doing business in the
State of Arkansas.
(c) This section does not impair the right of any local governmental
unit to manage and control residential property in which the local
governmental unit has a property interest.
SECTION 2. Arkansas Code § 14-54-1409 is amended to read as follows:
14-54-1409. Rent, rental application fee, and rental deposit control
preemption — Definition.
(a) As used in this section, "local governmental unit" means a
political subdivision of this state, including, bat net limited tee without
limitation a county, city, village, or township, if the political subdivision
provides local government services for residents in a geographically limited
area of this state as its primary purpose and has the power to act primarily
on behalf of that area.
(b)(1) A As to leasing private residential or commercial property, a
local governmental unit shall not enact, maintain, or enforce an ordinance or
resolution that would have the effect of controlling the amount of reRt
charged for: leasing ing private residential er-esal property
(A) Rent;
(B) Rental application fees; or
(C) Rental deposits.
(2) The preemption against rent, rental application fees, and
rental deposit control in subdivision (b)(1) of this section applies to all:
2 01/23/2025 8:48:54 AM LJH008
SB91
1 (A) Landlords;
2 (B) Property owners;
3 (C) Property managers;
4 (D) Tenants;
5 (E) Prospective tenants; and
6 (F) Real estate companies doing business in the
7 State of Arkansas.
8 (c) This section does not impair the right of any local governmental
9 unit to manage and control residential property in which the local
10 governmental unit has a property interest.
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Forth 0.54
N\AlAoa�
Account #: NWCL5004205
Company: CITY OF FAYFTTF,VIT,T,E-CLERKS OFFI
113 W MOI TNTAIN
FAYETTEVILLE, AR 72701
Ad number #: 488038
PO #:
Matter of: ORD 6847
AFFIDAVIT • STATE OFARKANSAS
ECE1v
03/10/2025
C TY OF FAYETTEVILLE
CITY CLERK'S QFFICE
1 Maria Hernandez -Lopez , do solemnly swear that I am the Legal Clerk of the NWA Democrat Gazette, a daily
newspaper printed and published in WASHINGCONIBENTON county, State of ARKANSAS; that I was so related to
this publication at and during the publication of the annexed legal advertisement in the matter of
ORD 6847
Pending in the court, in said County, and at the dates of the several publications of said advertisement stated below, and
that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County,
that said newspaper had been regularly printed and published in said county, and had a bona fide circulation therein for
the period of one month before the date of the first publication of said advertisement; and that said advertisement was
published in the regular daily issues of said newspaper as stated below.
And that there is due or has been paid the NWA Democrat Gazette for publication the sum of $65.36.
(Includes $0.00 Affidavit Charge).
NWA Democrat Gazette 03109125; NWA nwaonline. com 03109125
Legal Clei
State ofARKANSAS, County of Sebastian
Subscribed and sworn to before me on this 1 Oth day of March, 2025
NO ARY PUBLIC
ORDINANCE: 6847
File Number: 2025-136
REPEAL ORDINANCE 5800
(ORDINANCE):
AN ORDINANCE TO REPEAL
ORDINANCE 6800 AS AMENDED
WHEREAS, Ordinance 6800
has been determined by both
the Arkansas Attorney General
and the Fayetteville City Attor-
ney to likely violate A.C.A. § 14-
43-608.
NOW, THEREFORE, BE IT OR-
DAINED BY THE CITY COUNCIL
OF THE CITY OF FAYETTEVILLE,
ARKANSAS:
Section 1: That the City
Council of the City of Fayet-
teville, Arkansas hereby repeals
Ordinance 6800 as previously
amended.
PASSED and APPROVED on
March 4, 2025
Approved:
Molly Rawn, Mayor
Attest:
Kara Paxton,
City Clerk Treasurer
This publication was paid for
by the City Clerk -Treasurer of
the City of Fayetteville,
Arkansas.
Amount Paid: $65.36
March 9, 2025 488038
