Ark. Code Ann. § 21-2-701: Purpose

It is found and determined that:

(1) The State of Arkansas and the counties, municipalities, and school districts of the State of Arkansas are expending large sums of money each year for premiums on blanket bonds for officers and employees;

(2) Considerable savings might be effected by the establishment of a self-insured fidelity bond program for any fraudulent or dishonest act committed by any state officials and employees, county officials and employees, municipal officials and employees, and school district officials and employees;

(3) This subchapter is designed to establish a governmental bonding board to develop a self-insured fidelity bond program for participating governmental entities; and

(4) This subchapter is designed to provide that self-insured fidelity bonds would be in lieu of the various fidelity blanket bonds that are presently required under this chapter for various officials and employees and to thereby effectuate substantial savings in the cost of fidelity blanket bonds for those officials and employees.