§ 23-111-405 — Investigation by Arkansas Racing Commission

(a) (1) (A) The Arkansas Racing Commission is authorized to conduct a thorough investigation of the personal background of each officer, each director, and each principal stockholder of an applicant for, or holder of, a franchise for conducting dog racing in this state. (B) In the event a corporation, partnership, or association qualifies as a principal stockholder of an applicant for, or holder of, a franchise for conducting dog racing in this state, then the commission is authorized to conduct a thorough investigation of the personal background of each officer, director, and stockholder of the corporation or the personal background of each member of the partnership or association. (2) In investigating the personal background of an officer, director, or principal stockholder of an applicant for, or holder of, a dog racing franchise, or the officers, directors, and stockholders of a corporation qualifying as a principal stockholder or the members of any partnership or association qualifying as a principal stockholder, the commission may take into consideration: (A) Present and past business associations of a person and corporate stockholdings of the person; (B) Any connection the person has or may have had with any gambling operations or other unlawful operations in this state or any other state; (C) Any criminal convictions of the person; and (D) Such other matters as the commission shall deem helpful in determining whether the ownership by the person, corporation, partnership, or association qualifying as a principal stockholder of a substantial amount of stock in the corporate applicant for, or holder of, a franchise to conduct dog racing in this state would or would not be detrimental to the public interest of this state. (b) The commission may refuse to grant a franchise or temporary franchise or it may suspend or revoke an existing franchise if after investigation and hearing it determines that an officer, director, or principal stockholder of the applicant for, or holder of, a franchise is of undesirable personal background. (c) The commission may refuse to grant a franchise or temporary franchise or it may suspend or revoke an existing franchise if after investigation and hearing it determines that an officer, director, or stockholder of a corporation qualifying as a principal stockholder under § 23-111-402 or a member of any partnership or association qualifying as a principal stockholder under the provisions of § 23-111-402 is of undesirable personal background. (d) (1) Before the commission refuses to grant any franchise or temporary franchise or suspends or revokes an existing franchise on the basis of the personal background of any officer, director, or principal stockholder of the applicant for, or holder of, a franchise, the commission shall: (A) Set a date and time for a hearing on the matter; (B) Notify the applicant or franchise holder of: (i) The specific findings of the commission upon the basis of which it proposed to refuse, suspend, or revoke the franchise; and (ii) The date and time of the hearing; and (C) At least ten (10) days prior to the hearing, publish notice of the hearing in a newspaper of general circulation in the county in which dog racing is held or proposed to be held under the franchise. (2) Notice shall be given to the applicant or franchise holder by registered mail addressed to the applicant or franchise holder at its principal office as shown in the application or in other records of the commission at least ten (10) days prior to the date of the hearing. (3) At the hearing the applicant for, or holder of, a franchise and other interested persons shall be permitted to appear and present evidence relevant to the issue or finding upon which the commission proposes to deny, suspend, or revoke a franchise. (4) All proceedings before the commission pursuant to this section and the right of appeal therefrom shall be conducted in accordance with, and taken in the manner provided in, and in every way subject to, the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

Legislative History

Acts 1968 (2nd Ex. Sess.), No. 8, §§ 3, 5; A.S.A. 1947, §§ 84-2823.3, 84-2823.5.