Ark. Code Ann. § 23-61-802 — AR Code / Title 23 / Chapter 61 / Subchapter 8 / Section 23-61-802
Definitions
Status: in_force

As used in this subchapter: (1) "Federal act" means the federal healthcare laws established by Pub. L. No. 111-148, as amended by Pub. L. No. 111-152, and any amendments to or regulations or guidance issued under those statutes existing on April 23, 2013; (2) (A) "Health benefit plan" means a policy, contract, certificate, or agreement offered or issued by a health insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of healthcare services. (B) "Health benefit plan" does not include: (i) Coverage only for accident or disability income insurance, or both; (ii) Coverage issued as a supplement to liability insurance; (iii) Liability insurance, including without limitation general liability insurance and automobile liability insurance; (iv) Workers' compensation or similar insurance; (v) Automobile medical payment insurance; (vi) Credit-only insurance; (vii) Coverage for on-site medical clinics; or (viii) Other similar insurance coverage, specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits. (C) "Health benefit plan" does not include the following benefits if they are provided under a separate policy, certificate, or contract of insurance or are otherwise not an integral part of the plan: (i) Limited scope dental or vision benefits; (ii) Benefits for long-term care, nursing home care, home health care, community-based care, or a combination of these; or (iii) Other similar limited benefits specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013. (D) "Health benefit plan" does not include the following benefits if the benefits are provided under a separate policy, certificate, or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid with respect to an event without regard to whether benefits are provided with respect to such an event under any group health plan maintained by the same plan sponsor: (i) Coverage only for a specified disease or illness; or (ii) Hospital indemnity or other fixed indemnity insurance. (E) "Health benefit plan" does not include the following if offered as a separate policy, certificate, or contract of insurance: (i) Medicare supplemental health insurance as defined under section 1882(g)(1) of the Social Security Act, Pub. L. No. 74-271, as existing on April 23, 2013; (ii) Coverage supplemental to the coverage provided to military personnel and their dependents under Chapter 55 of Title 10 of the United States Code and the Civilian Health and Medical Program of the Uniformed Services, 32 C.F.R. Part 199 ; or (iii) Similar supplemental coverage provided to coverage under a group health plan; (3) "Health insurance" means insurance that is primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease or amounts paid for the purpose of affecting any structure of the body, including transportation that is essential to obtaining health insurance, but excluding: (A) Coverage only for accident or disability income insurance, or any combination thereof; (B) Coverage issued as a supplement to liability insurance; (C) Liability insurance, including general liability insurance and automobile liability insurance; (D) Workers' compensation or similar insurance; (E) Automobile medical payment insurance; (F) Credit-only insurance; (G) Coverage for on-site medical clinics; (H) Coverage only for limited scope vision benefits; (I) Benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof; (J) Coverage for specified disease or critical illness; (K) Hospital indemnity or other fixed indemnity insurance; (L) Medicare supplement policies; (M) Medicare, Medicaid, or the Federal Employees Health Benefits Program; (N) Coverage only for medical and surgical outpatient benefits; (O) Excess or stop-loss insurance; and (P) Other similar insurance coverage: (i) Under which benefits for health insurance are secondary or incidental to other insurance benefits; or (ii) Specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits; (4) "Health insurer" means an entity that provides health insurance or a health benefit plan in the State of Arkansas, including without limitation an insurance company, medical services plan, hospital plan, hospital medical service corporation, health maintenance organization, fraternal benefits society, or any other entity providing a plan of health insurance or health benefits subject to state insurance regulation; (5) "Qualified employer" means a small employer that elects to make its full-time employees eligible for one (1) or more qualified health plans offered through the small business health options program, and at the option of the employer, some or all of its part-time employees, provided that the employer: (A) Has its principal place of business in this state and elects to provide coverage through the small business health options program to all of its eligible employees, wherever employed; or (B) Elects to provide coverage through the small business health options program to all of its eligible employees who are principally employed in this state; (6) "Qualified health plan" means a health benefit plan that has in effect a certification that the plan meets the criteria for certification described in section 1311(c) of the federal act; and (7) (A) "Small employer" means an employer that employed an average of not more than fifty (50) employees during the preceding calendar year. (B) For purposes of this subdivision (7): (i) All persons treated as a single employer under subsection (b), subsection (c), subsection (m), or subsection (o) of section 414 of the Internal Revenue Code of 1986 as existing on April 23, 2013, shall be treated as a single employer; (ii) An employer and any predecessor employer shall be treated as a single employer; (iii) All employees shall be counted, including part-time employees and employees who are not eligible for coverage through the employer; (iv) If an employer was not in existence throughout the preceding calendar year, the determination of whether that employer is a small employer shall be based on the average number of employees that is reasonably expected that the employer will employ on business days in the current calendar year; and (v) An employer that makes enrollment in qualified health plans available to its employees through the small business health options program and would cease to be a small employer because of an increase in the number of its employees shall continue to be treated as a small employer for purposes of this subchapter as long as it continuously makes enrollment through the small business health options program available to its employees. Added by Act 2013, No. 1500,§ 1, eff. 4/23/2013.

As used in this subchapter:

(1) "Federal act" means the federal healthcare laws established by Pub. L. No. 111-148, as amended by Pub. L. No. 111-152, and any amendments to or regulations or guidance issued under those statutes existing on April 23, 2013;

(2) (A) "Health benefit plan" means a policy, contract, certificate, or agreement offered or issued by a health insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of healthcare services. (B) "Health benefit plan" does not include: (i) Coverage only for accident or disability income insurance, or both; (ii) Coverage issued as a supplement to liability insurance; (iii) Liability insurance, including without limitation general liability insurance and automobile liability insurance; (iv) Workers' compensation or similar insurance; (v) Automobile medical payment insurance; (vi) Credit-only insurance; (vii) Coverage for on-site medical clinics; or (viii) Other similar insurance coverage, specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits. (C) "Health benefit plan" does not include the following benefits if they are provided under a separate policy, certificate, or contract of insurance or are otherwise not an integral part of the plan: (i) Limited scope dental or vision benefits; (ii) Benefits for long-term care, nursing home care, home health care, community-based care, or a combination of these; or (iii) Other similar limited benefits specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013. (D) "Health benefit plan" does not include the following benefits if the benefits are provided under a separate policy, certificate, or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid with respect to an event without regard to whether benefits are provided with respect to such an event under any group health plan maintained by the same plan sponsor: (i) Coverage only for a specified disease or illness; or (ii) Hospital indemnity or other fixed indemnity insurance. (E) "Health benefit plan" does not include the following if offered as a separate policy, certificate, or contract of insurance: (i) Medicare supplemental health insurance as defined under section 1882(g)(1) of the Social Security Act, Pub. L. No. 74-271, as existing on April 23, 2013; (ii) Coverage supplemental to the coverage provided to military personnel and their dependents under Chapter 55 of Title 10 of the United States Code and the Civilian Health and Medical Program of the Uniformed Services, 32 C.F.R. Part 199 ; or (iii) Similar supplemental coverage provided to coverage under a group health plan;

(A) "Health benefit plan" means a policy, contract, certificate, or agreement offered or issued by a health insurer to provide, deliver, arrange for, pay for, or reimburse any of the costs of healthcare services.

(B) "Health benefit plan" does not include: (i) Coverage only for accident or disability income insurance, or both; (ii) Coverage issued as a supplement to liability insurance; (iii) Liability insurance, including without limitation general liability insurance and automobile liability insurance; (iv) Workers' compensation or similar insurance; (v) Automobile medical payment insurance; (vi) Credit-only insurance; (vii) Coverage for on-site medical clinics; or (viii) Other similar insurance coverage, specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits.

(i) Coverage only for accident or disability income insurance, or both;

(ii) Coverage issued as a supplement to liability insurance;

(iii) Liability insurance, including without limitation general liability insurance and automobile liability insurance;

(iv) Workers' compensation or similar insurance;

(v) Automobile medical payment insurance;

(vi) Credit-only insurance;

(vii) Coverage for on-site medical clinics; or

(viii) Other similar insurance coverage, specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits.

(C) "Health benefit plan" does not include the following benefits if they are provided under a separate policy, certificate, or contract of insurance or are otherwise not an integral part of the plan: (i) Limited scope dental or vision benefits; (ii) Benefits for long-term care, nursing home care, home health care, community-based care, or a combination of these; or (iii) Other similar limited benefits specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013.

(i) Limited scope dental or vision benefits;

(ii) Benefits for long-term care, nursing home care, home health care, community-based care, or a combination of these; or

(iii) Other similar limited benefits specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013.

(D) "Health benefit plan" does not include the following benefits if the benefits are provided under a separate policy, certificate, or contract of insurance, there is no coordination between the provision of the benefits and any exclusion of benefits under any group health plan maintained by the same plan sponsor, and the benefits are paid with respect to an event without regard to whether benefits are provided with respect to such an event under any group health plan maintained by the same plan sponsor: (i) Coverage only for a specified disease or illness; or (ii) Hospital indemnity or other fixed indemnity insurance.

(i) Coverage only for a specified disease or illness; or

(ii) Hospital indemnity or other fixed indemnity insurance.

(E) "Health benefit plan" does not include the following if offered as a separate policy, certificate, or contract of insurance: (i) Medicare supplemental health insurance as defined under section 1882(g)(1) of the Social Security Act, Pub. L. No. 74-271, as existing on April 23, 2013; (ii) Coverage supplemental to the coverage provided to military personnel and their dependents under Chapter 55 of Title 10 of the United States Code and the Civilian Health and Medical Program of the Uniformed Services, 32 C.F.R. Part 199 ; or (iii) Similar supplemental coverage provided to coverage under a group health plan;

(i) Medicare supplemental health insurance as defined under section 1882(g)(1) of the Social Security Act, Pub. L. No. 74-271, as existing on April 23, 2013;

(ii) Coverage supplemental to the coverage provided to military personnel and their dependents under Chapter 55 of Title 10 of the United States Code and the Civilian Health and Medical Program of the Uniformed Services, 32 C.F.R. Part 199 ; or

(iii) Similar supplemental coverage provided to coverage under a group health plan;

(3) "Health insurance" means insurance that is primarily for the diagnosis, cure, mitigation, treatment, or prevention of disease or amounts paid for the purpose of affecting any structure of the body, including transportation that is essential to obtaining health insurance, but excluding: (A) Coverage only for accident or disability income insurance, or any combination thereof; (B) Coverage issued as a supplement to liability insurance; (C) Liability insurance, including general liability insurance and automobile liability insurance; (D) Workers' compensation or similar insurance; (E) Automobile medical payment insurance; (F) Credit-only insurance; (G) Coverage for on-site medical clinics; (H) Coverage only for limited scope vision benefits; (I) Benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof; (J) Coverage for specified disease or critical illness; (K) Hospital indemnity or other fixed indemnity insurance; (L) Medicare supplement policies; (M) Medicare, Medicaid, or the Federal Employees Health Benefits Program; (N) Coverage only for medical and surgical outpatient benefits; (O) Excess or stop-loss insurance; and (P) Other similar insurance coverage: (i) Under which benefits for health insurance are secondary or incidental to other insurance benefits; or (ii) Specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits;

(A) Coverage only for accident or disability income insurance, or any combination thereof;

(B) Coverage issued as a supplement to liability insurance;

(C) Liability insurance, including general liability insurance and automobile liability insurance;

(D) Workers' compensation or similar insurance;

(E) Automobile medical payment insurance;

(F) Credit-only insurance;

(G) Coverage for on-site medical clinics;

(H) Coverage only for limited scope vision benefits;

(I) Benefits for long-term care, nursing home care, home health care, community-based care, or any combination thereof;

(J) Coverage for specified disease or critical illness;

(K) Hospital indemnity or other fixed indemnity insurance;

(L) Medicare supplement policies;

(M) Medicare, Medicaid, or the Federal Employees Health Benefits Program;

(N) Coverage only for medical and surgical outpatient benefits;

(O) Excess or stop-loss insurance; and

(P) Other similar insurance coverage: (i) Under which benefits for health insurance are secondary or incidental to other insurance benefits; or (ii) Specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits;

(i) Under which benefits for health insurance are secondary or incidental to other insurance benefits; or

(ii) Specified in federal regulations issued under the Health Insurance Portability and Accountability Act of 1996, Pub. L. No. 104-191, and existing on April 23, 2013, under which benefits for healthcare services are secondary or incidental to other insurance benefits;

(4) "Health insurer" means an entity that provides health insurance or a health benefit plan in the State of Arkansas, including without limitation an insurance company, medical services plan, hospital plan, hospital medical service corporation, health maintenance organization, fraternal benefits society, or any other entity providing a plan of health insurance or health benefits subject to state insurance regulation;

(5) "Qualified employer" means a small employer that elects to make its full-time employees eligible for one (1) or more qualified health plans offered through the small business health options program, and at the option of the employer, some or all of its part-time employees, provided that the employer: (A) Has its principal place of business in this state and elects to provide coverage through the small business health options program to all of its eligible employees, wherever employed; or (B) Elects to provide coverage through the small business health options program to all of its eligible employees who are principally employed in this state;

(A) Has its principal place of business in this state and elects to provide coverage through the small business health options program to all of its eligible employees, wherever employed; or

(B) Elects to provide coverage through the small business health options program to all of its eligible employees who are principally employed in this state;

(6) "Qualified health plan" means a health benefit plan that has in effect a certification that the plan meets the criteria for certification described in section 1311(c) of the federal act; and

(7) (A) "Small employer" means an employer that employed an average of not more than fifty (50) employees during the preceding calendar year. (B) For purposes of this subdivision (7): (i) All persons treated as a single employer under subsection (b), subsection (c), subsection (m), or subsection (o) of section 414 of the Internal Revenue Code of 1986 as existing on April 23, 2013, shall be treated as a single employer; (ii) An employer and any predecessor employer shall be treated as a single employer; (iii) All employees shall be counted, including part-time employees and employees who are not eligible for coverage through the employer; (iv) If an employer was not in existence throughout the preceding calendar year, the determination of whether that employer is a small employer shall be based on the average number of employees that is reasonably expected that the employer will employ on business days in the current calendar year; and (v) An employer that makes enrollment in qualified health plans available to its employees through the small business health options program and would cease to be a small employer because of an increase in the number of its employees shall continue to be treated as a small employer for purposes of this subchapter as long as it continuously makes enrollment through the small business health options program available to its employees.

(A) "Small employer" means an employer that employed an average of not more than fifty (50) employees during the preceding calendar year.

(B) For purposes of this subdivision (7): (i) All persons treated as a single employer under subsection (b), subsection (c), subsection (m), or subsection (o) of section 414 of the Internal Revenue Code of 1986 as existing on April 23, 2013, shall be treated as a single employer; (ii) An employer and any predecessor employer shall be treated as a single employer; (iii) All employees shall be counted, including part-time employees and employees who are not eligible for coverage through the employer; (iv) If an employer was not in existence throughout the preceding calendar year, the determination of whether that employer is a small employer shall be based on the average number of employees that is reasonably expected that the employer will employ on business days in the current calendar year; and (v) An employer that makes enrollment in qualified health plans available to its employees through the small business health options program and would cease to be a small employer because of an increase in the number of its employees shall continue to be treated as a small employer for purposes of this subchapter as long as it continuously makes enrollment through the small business health options program available to its employees.

(i) All persons treated as a single employer under subsection (b), subsection (c), subsection (m), or subsection (o) of section 414 of the Internal Revenue Code of 1986 as existing on April 23, 2013, shall be treated as a single employer;

(ii) An employer and any predecessor employer shall be treated as a single employer;

(iii) All employees shall be counted, including part-time employees and employees who are not eligible for coverage through the employer;

(iv) If an employer was not in existence throughout the preceding calendar year, the determination of whether that employer is a small employer shall be based on the average number of employees that is reasonably expected that the employer will employ on business days in the current calendar year; and

(v) An employer that makes enrollment in qualified health plans available to its employees through the small business health options program and would cease to be a small employer because of an increase in the number of its employees shall continue to be treated as a small employer for purposes of this subchapter as long as it continuously makes enrollment through the small business health options program available to its employees.

Added by Act 2013, No. 1500,§ 1, eff. 4/23/2013.
Ark. Code Ann. § 23-39-505 — AR Code / Title 23 / Chapter 39 / Subchapter 5 / Section 23-39-505
Qualifications for licensure - Issuance
Status: in_force

(a) (1) A person desiring to obtain a license as a loan officer, transitional loan officer, mortgage banker, mortgage broker, or mortgage servicer shall make written application for licensure to the Securities Commissioner in the form prescribed by the commissioner. (2) The commissioner may approve by rule or order a limited license with limitations, qualifications, or conditions. (3) The application may require that the information be submitted in an electronic format. (4) In addition to any other information required under this subchapter or rules adopted by the commissioner, the application shall contain information the commissioner deems necessary and shall include the following: (A) For a license as a mortgage banker, mortgage broker, or mortgage servicer: (i) The applicant's name, address, and federal employer identification number; (ii) The applicant's form of business and place of organization, including without limitation: (a) A copy of the applicant's organizational and governance documents; and (b) If the applicant is a foreign entity, a copy of the certificate of authority from the Secretary of State; (iii) The applicant's proposed method of doing business, including whether the applicant is proposing to be licensed as a mortgage broker, mortgage banker, or mortgage servicer; (iv) The applicant's proposed locations for doing business; (v) The qualifications, business history, and financial condition of the applicant; and (vi) A disclosure of a beneficial interest in an affiliated industry business held by the applicant or by a principal, officer, director, or employee of the applicant; and (B) For a license as a loan officer, transitional loan officer, or managing principal of an applicant: (i) The applicant's name, address, and Social Security number; and (ii) The qualifications, business history, and financial condition of the individual or managing principal of an applicant, including: (a) A description of an injunction or administrative order, including a denial to engage in a regulated activity by any state or federal authority that had jurisdiction over the applicant; (b) Disclosure of a conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the mortgage industry, the securities industry, the insurance industry, or any other activity pertaining to financial services; (c) Disclosure of a felony conviction; and (d) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check. (b) In addition to meeting the requirements imposed by the commissioner under subsection (a) of this section, each individual applicant for licensure as a loan officer shall: (1) Be at least eighteen (18) years of age; (2) (A) Have received a high school diploma or a high school equivalency diploma approved by the Adult Education Section. (B) Subdivision (b)(2)(A) of this section does not apply to an individual who is licensed as a loan officer on July 1, 2007; (3) Have satisfactorily completed any educational and testing requirements as the commissioner may by rule or order impose; and (4) Furnish to the commissioner or through an automated licensing system, information concerning the applicant's identity and background, including: (A) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check; and (B) Personal history and experience in a form prescribed by the automated licensing system and the commissioner, including the submission of authorization for the automated licensing system and the commissioner to obtain: (i) An independent credit report from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., as it existed on January 1, 2011; and (ii) Information related to any administrative, civil, or criminal proceeding by a governmental jurisdiction. (c) Each applicant for licensure as a mortgage broker, mortgage banker, or mortgage servicer shall comply with the following requirements at the time of application and at all times thereafter: (1) If the applicant is a sole proprietor, the applicant shall have at least three (3) years of experience in mortgage lending or other experience or competency requirements as the commissioner may adopt by rule or order; (2) If the applicant is a general or limited partnership, at least one (1) of its general partners shall have the experience as described in subdivision (c)(1) of this section; (3) If the applicant is a corporation, at least one (1) of its principal officers shall have the experience as described in subdivision (c)(1) of this section; and (4) If the applicant is a limited liability company, at least one (1) of its managers shall have the experience as described under subdivision (c)(1) of this section. (d) Each applicant for a license as a mortgage broker, mortgage banker, or mortgage servicer shall identify in its application one (1) person meeting the requirements of subsection (c) of this section to serve as the applicant's managing principal. (e) Each applicant for initial licensure shall pay a filing fee of: (1) Seven hundred fifty dollars ($750) for the principal place of business of a mortgage broker, mortgage banker, or mortgage servicer; (2) One hundred dollars ($100) for each branch office of a mortgage broker, mortgage banker, or mortgage servicer; and (3) Fifty dollars ($50.00) for each loan officer. (f) (1) Each mortgage broker, mortgage banker, and mortgage servicer shall post a surety bond in an amount: (A) Based upon loan activity during the previous year; (B) Not less than one hundred thousand dollars ($100,000); and (C) As prescribed by rule or order of the commissioner. (2) The surety bond shall be in a form satisfactory to the commissioner. (3) Every bond shall provide for suit on the bond by any person who has a cause of action under this subchapter. (4) The aggregate liability of the surety shall not exceed the principal sum of the bond. (5) A surety bond shall cover claims for at least five (5) years after the licensee ceases to provide mortgage services in this state or longer if required by the commissioner. (g) An applicant filing for licensure as a mortgage banker or mortgage servicer shall file with the commissioner as part of his or her application audited financial statements that reflect that the applicant has a net worth of at least twenty-five thousand dollars ($25,000) and are: (1) Prepared by an independent certified public accountant; (2) Prepared according to: (A) Generally accepted accounting principles as promulgated by the Financial Accounting Standards Board; or (B) International financial reporting standards promulgated by the International Financial Reporting Standards Foundation and the International Accounting Standards Board; (3) Accompanied by an opinion acceptable to the commissioner; and (4) Dated within fifteen (15) months preceding the date on which the application is filed. (h) [Repealed.] (i) Each principal place of business and each branch office of a mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall obtain a separate license. (j) Except as set forth in § 23-39-503(d) , each license issued by the commissioner under this subchapter expires at the close of business on December 31 of the calendar year unless the license is: (1) Previously surrendered by the licensee and the surrender is accepted by the commissioner; (2) Abandoned by the licensee as provided in § 23-39-506 ; (3) Suspended or revoked by the commissioner; or (4) Terminated if the temporary authority granted to a transitional loan officer has expired due to: (A) The end of a one hundred twenty (120) day period; or (B) The individual's having received a loan officer license under this subchapter. (k) Licenses issued under this subchapter are not transferable. (l) (1) Control of a licensee shall not be acquired through a stock or equity purchase, transfer of interest, or other device without the prior written consent of the commissioner. (2) A person seeking to acquire control of a licensee, at least thirty (30) days before the proposed change of control, shall: (A) Pay the commissioner a fee of one hundred dollars ($100); (B) Submit to the commissioner: (i) The information required under subdivision (a)(4)(D) of this section; (ii) The proposed transaction documents; and (iii) Any other information deemed relevant by the commissioner; and (C) Submit financial statements according to subsection (g) of this section, if a licensee holds a mortgage banker or mortgage servicer license. (D) [Repealed.] (3) The commissioner may refuse to give written consent if he or she finds that any of the grounds for denial, revocation, or suspension of a license under § 23-39-514 are applicable to the person seeking to acquire control of a license. (4) (A) Failure to notify the commissioner at least thirty (30) days before the proposed change of control shall result in a late fee of one hundred dollars ($100). (B) All or part of the late fee may be waived by the commissioner for good cause. (m) (1) An application filed with the commissioner may be withdrawn upon written request of the applicant delivered to the commissioner at any time before the granting of the license. (2) However, if a notice of intent to deny the application has been sent to the applicant, the applicant shall not withdraw the application except upon the written direction of the commissioner. (n) (1) Unless a proceeding has been commenced to suspend or revoke the license, a license may be surrendered by a licensee by filing a written request to surrender the license in a form acceptable to the commissioner. (2) The surrender of the license becomes effective upon acceptance by the commissioner. (3) Notwithstanding a surrender or termination of a license and acceptance of the surrender or termination by the commissioner, if a licensee or any person acting on behalf of the licensee has knowingly violated any provision of this subchapter or any rule or order promulgated or issued under this subchapter: (A) A proceeding may be commenced at any time within one (1) year following the effective date of the surrender or termination of the license; and (B) An order may be entered revoking the license as of a date before the acceptance of the surrender or termination of the license. (o) To issue a loan officer license, the commissioner shall find that: (1) The applicant has: (A) Never had a loan officer license revoked in a governmental jurisdiction; (B) [Repealed.] (C) Demonstrated sufficient financial responsibility, character, and general fitness to command the confidence of the community and to warrant a determination that the loan officer will operate honestly, fairly, and efficiently within the purposes of this subchapter; and (D) Complied with the prelicensing education and testing requirements of subdivision (b)(3) of this section; and (2) The applicant's employer has met the surety bond requirement of subdivision (f)(1) of this section. Amended by Act 2021, No. 531,§ 7, eff. 7/28/2021. Amended by Act 2021, No. 531,§ 6, eff. 7/28/2021. Amended by Act 2021, No. 531,§ 5, eff. 7/28/2021. Amended by Act 2019, No. 200,§ 17, eff. 7/24/2019. Amended by Act 2019, No. 200,§ 16, eff. 7/24/2019. Amended by Act 2019, No. 200,§ 15, eff. 7/24/2019. Amended by Act 2019, No. 200,§ 14, eff. 7/24/2019. Amended by Act 2019, No. 200,§ 13, eff. 7/24/2019. Amended by Act 2019, No. 200,§ 12, eff. 7/24/2019. Amended by Act 2019, No. 200,§ 11, eff. 7/24/2019. Amended by Act 2019, No. 910,§ 2348, eff. 7/1/2019. Amended by Act 2017, No. 669,§ 3, eff. 8/1/2017. Amended by Act 2017, No. 669,§ 2, eff. 8/1/2017. Amended by Act 2017, No. 669,§ 1, eff. 8/1/2017. Amended by Act 2015, No. 1115,§ 29, eff. 7/22/2015. Acts 2003, No. 554, § 1; 2005, No. 1679, § 1; 2007, No. 748, § 4; 2009, No. 164, § 10; 2009, No. 731, §§ 7 - 17; 2011, No. 894, §§ 5 - 8.

(a) (1) A person desiring to obtain a license as a loan officer, transitional loan officer, mortgage banker, mortgage broker, or mortgage servicer shall make written application for licensure to the Securities Commissioner in the form prescribed by the commissioner. (2) The commissioner may approve by rule or order a limited license with limitations, qualifications, or conditions. (3) The application may require that the information be submitted in an electronic format. (4) In addition to any other information required under this subchapter or rules adopted by the commissioner, the application shall contain information the commissioner deems necessary and shall include the following: (A) For a license as a mortgage banker, mortgage broker, or mortgage servicer: (i) The applicant's name, address, and federal employer identification number; (ii) The applicant's form of business and place of organization, including without limitation: (a) A copy of the applicant's organizational and governance documents; and (b) If the applicant is a foreign entity, a copy of the certificate of authority from the Secretary of State; (iii) The applicant's proposed method of doing business, including whether the applicant is proposing to be licensed as a mortgage broker, mortgage banker, or mortgage servicer; (iv) The applicant's proposed locations for doing business; (v) The qualifications, business history, and financial condition of the applicant; and (vi) A disclosure of a beneficial interest in an affiliated industry business held by the applicant or by a principal, officer, director, or employee of the applicant; and (B) For a license as a loan officer, transitional loan officer, or managing principal of an applicant: (i) The applicant's name, address, and Social Security number; and (ii) The qualifications, business history, and financial condition of the individual or managing principal of an applicant, including: (a) A description of an injunction or administrative order, including a denial to engage in a regulated activity by any state or federal authority that had jurisdiction over the applicant; (b) Disclosure of a conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the mortgage industry, the securities industry, the insurance industry, or any other activity pertaining to financial services; (c) Disclosure of a felony conviction; and (d) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check.

(1) A person desiring to obtain a license as a loan officer, transitional loan officer, mortgage banker, mortgage broker, or mortgage servicer shall make written application for licensure to the Securities Commissioner in the form prescribed by the commissioner.

(2) The commissioner may approve by rule or order a limited license with limitations, qualifications, or conditions.

(3) The application may require that the information be submitted in an electronic format.

(4) In addition to any other information required under this subchapter or rules adopted by the commissioner, the application shall contain information the commissioner deems necessary and shall include the following: (A) For a license as a mortgage banker, mortgage broker, or mortgage servicer: (i) The applicant's name, address, and federal employer identification number; (ii) The applicant's form of business and place of organization, including without limitation: (a) A copy of the applicant's organizational and governance documents; and (b) If the applicant is a foreign entity, a copy of the certificate of authority from the Secretary of State; (iii) The applicant's proposed method of doing business, including whether the applicant is proposing to be licensed as a mortgage broker, mortgage banker, or mortgage servicer; (iv) The applicant's proposed locations for doing business; (v) The qualifications, business history, and financial condition of the applicant; and (vi) A disclosure of a beneficial interest in an affiliated industry business held by the applicant or by a principal, officer, director, or employee of the applicant; and (B) For a license as a loan officer, transitional loan officer, or managing principal of an applicant: (i) The applicant's name, address, and Social Security number; and (ii) The qualifications, business history, and financial condition of the individual or managing principal of an applicant, including: (a) A description of an injunction or administrative order, including a denial to engage in a regulated activity by any state or federal authority that had jurisdiction over the applicant; (b) Disclosure of a conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the mortgage industry, the securities industry, the insurance industry, or any other activity pertaining to financial services; (c) Disclosure of a felony conviction; and (d) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check.

(A) For a license as a mortgage banker, mortgage broker, or mortgage servicer: (i) The applicant's name, address, and federal employer identification number; (ii) The applicant's form of business and place of organization, including without limitation: (a) A copy of the applicant's organizational and governance documents; and (b) If the applicant is a foreign entity, a copy of the certificate of authority from the Secretary of State; (iii) The applicant's proposed method of doing business, including whether the applicant is proposing to be licensed as a mortgage broker, mortgage banker, or mortgage servicer; (iv) The applicant's proposed locations for doing business; (v) The qualifications, business history, and financial condition of the applicant; and (vi) A disclosure of a beneficial interest in an affiliated industry business held by the applicant or by a principal, officer, director, or employee of the applicant; and

(i) The applicant's name, address, and federal employer identification number;

(ii) The applicant's form of business and place of organization, including without limitation: (a) A copy of the applicant's organizational and governance documents; and (b) If the applicant is a foreign entity, a copy of the certificate of authority from the Secretary of State;

(a) A copy of the applicant's organizational and governance documents; and

(b) If the applicant is a foreign entity, a copy of the certificate of authority from the Secretary of State;

(iii) The applicant's proposed method of doing business, including whether the applicant is proposing to be licensed as a mortgage broker, mortgage banker, or mortgage servicer;

(iv) The applicant's proposed locations for doing business;

(v) The qualifications, business history, and financial condition of the applicant; and

(vi) A disclosure of a beneficial interest in an affiliated industry business held by the applicant or by a principal, officer, director, or employee of the applicant; and

(B) For a license as a loan officer, transitional loan officer, or managing principal of an applicant: (i) The applicant's name, address, and Social Security number; and (ii) The qualifications, business history, and financial condition of the individual or managing principal of an applicant, including: (a) A description of an injunction or administrative order, including a denial to engage in a regulated activity by any state or federal authority that had jurisdiction over the applicant; (b) Disclosure of a conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the mortgage industry, the securities industry, the insurance industry, or any other activity pertaining to financial services; (c) Disclosure of a felony conviction; and (d) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check.

(i) The applicant's name, address, and Social Security number; and

(ii) The qualifications, business history, and financial condition of the individual or managing principal of an applicant, including: (a) A description of an injunction or administrative order, including a denial to engage in a regulated activity by any state or federal authority that had jurisdiction over the applicant; (b) Disclosure of a conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the mortgage industry, the securities industry, the insurance industry, or any other activity pertaining to financial services; (c) Disclosure of a felony conviction; and (d) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check.

(a) A description of an injunction or administrative order, including a denial to engage in a regulated activity by any state or federal authority that had jurisdiction over the applicant;

(b) Disclosure of a conviction of a misdemeanor involving fraudulent dealings or moral turpitude or relating to any aspect of the mortgage industry, the securities industry, the insurance industry, or any other activity pertaining to financial services;

(c) Disclosure of a felony conviction; and

(d) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check.

(b) In addition to meeting the requirements imposed by the commissioner under subsection (a) of this section, each individual applicant for licensure as a loan officer shall: (1) Be at least eighteen (18) years of age; (2) (A) Have received a high school diploma or a high school equivalency diploma approved by the Adult Education Section. (B) Subdivision (b)(2)(A) of this section does not apply to an individual who is licensed as a loan officer on July 1, 2007; (3) Have satisfactorily completed any educational and testing requirements as the commissioner may by rule or order impose; and (4) Furnish to the commissioner or through an automated licensing system, information concerning the applicant's identity and background, including: (A) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check; and (B) Personal history and experience in a form prescribed by the automated licensing system and the commissioner, including the submission of authorization for the automated licensing system and the commissioner to obtain: (i) An independent credit report from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., as it existed on January 1, 2011; and (ii) Information related to any administrative, civil, or criminal proceeding by a governmental jurisdiction.

(1) Be at least eighteen (18) years of age;

(2) (A) Have received a high school diploma or a high school equivalency diploma approved by the Adult Education Section. (B) Subdivision (b)(2)(A) of this section does not apply to an individual who is licensed as a loan officer on July 1, 2007;

(A) Have received a high school diploma or a high school equivalency diploma approved by the Adult Education Section.

(B) Subdivision (b)(2)(A) of this section does not apply to an individual who is licensed as a loan officer on July 1, 2007;

(3) Have satisfactorily completed any educational and testing requirements as the commissioner may by rule or order impose; and

(4) Furnish to the commissioner or through an automated licensing system, information concerning the applicant's identity and background, including: (A) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check; and (B) Personal history and experience in a form prescribed by the automated licensing system and the commissioner, including the submission of authorization for the automated licensing system and the commissioner to obtain: (i) An independent credit report from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., as it existed on January 1, 2011; and (ii) Information related to any administrative, civil, or criminal proceeding by a governmental jurisdiction.

(A) Fingerprints for submission to the Federal Bureau of Investigation and any governmental agency or entity authorized to receive fingerprints for a state, national, and international criminal background check; and

(B) Personal history and experience in a form prescribed by the automated licensing system and the commissioner, including the submission of authorization for the automated licensing system and the commissioner to obtain: (i) An independent credit report from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., as it existed on January 1, 2011; and (ii) Information related to any administrative, civil, or criminal proceeding by a governmental jurisdiction.

(i) An independent credit report from a consumer reporting agency described in section 603(p) of the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq., as it existed on January 1, 2011; and

(ii) Information related to any administrative, civil, or criminal proceeding by a governmental jurisdiction.

(c) Each applicant for licensure as a mortgage broker, mortgage banker, or mortgage servicer shall comply with the following requirements at the time of application and at all times thereafter: (1) If the applicant is a sole proprietor, the applicant shall have at least three (3) years of experience in mortgage lending or other experience or competency requirements as the commissioner may adopt by rule or order; (2) If the applicant is a general or limited partnership, at least one (1) of its general partners shall have the experience as described in subdivision (c)(1) of this section; (3) If the applicant is a corporation, at least one (1) of its principal officers shall have the experience as described in subdivision (c)(1) of this section; and (4) If the applicant is a limited liability company, at least one (1) of its managers shall have the experience as described under subdivision (c)(1) of this section.

(1) If the applicant is a sole proprietor, the applicant shall have at least three (3) years of experience in mortgage lending or other experience or competency requirements as the commissioner may adopt by rule or order;

(2) If the applicant is a general or limited partnership, at least one (1) of its general partners shall have the experience as described in subdivision (c)(1) of this section;

(3) If the applicant is a corporation, at least one (1) of its principal officers shall have the experience as described in subdivision (c)(1) of this section; and

(4) If the applicant is a limited liability company, at least one (1) of its managers shall have the experience as described under subdivision (c)(1) of this section.

(d) Each applicant for a license as a mortgage broker, mortgage banker, or mortgage servicer shall identify in its application one (1) person meeting the requirements of subsection (c) of this section to serve as the applicant's managing principal.

(e) Each applicant for initial licensure shall pay a filing fee of: (1) Seven hundred fifty dollars ($750) for the principal place of business of a mortgage broker, mortgage banker, or mortgage servicer; (2) One hundred dollars ($100) for each branch office of a mortgage broker, mortgage banker, or mortgage servicer; and (3) Fifty dollars ($50.00) for each loan officer.

(1) Seven hundred fifty dollars ($750) for the principal place of business of a mortgage broker, mortgage banker, or mortgage servicer;

(2) One hundred dollars ($100) for each branch office of a mortgage broker, mortgage banker, or mortgage servicer; and

(3) Fifty dollars ($50.00) for each loan officer.

(f) (1) Each mortgage broker, mortgage banker, and mortgage servicer shall post a surety bond in an amount: (A) Based upon loan activity during the previous year; (B) Not less than one hundred thousand dollars ($100,000); and (C) As prescribed by rule or order of the commissioner. (2) The surety bond shall be in a form satisfactory to the commissioner. (3) Every bond shall provide for suit on the bond by any person who has a cause of action under this subchapter. (4) The aggregate liability of the surety shall not exceed the principal sum of the bond. (5) A surety bond shall cover claims for at least five (5) years after the licensee ceases to provide mortgage services in this state or longer if required by the commissioner.

(1) Each mortgage broker, mortgage banker, and mortgage servicer shall post a surety bond in an amount: (A) Based upon loan activity during the previous year; (B) Not less than one hundred thousand dollars ($100,000); and (C) As prescribed by rule or order of the commissioner.

(A) Based upon loan activity during the previous year;

(B) Not less than one hundred thousand dollars ($100,000); and

(C) As prescribed by rule or order of the commissioner.

(2) The surety bond shall be in a form satisfactory to the commissioner.

(3) Every bond shall provide for suit on the bond by any person who has a cause of action under this subchapter.

(4) The aggregate liability of the surety shall not exceed the principal sum of the bond.

(5) A surety bond shall cover claims for at least five (5) years after the licensee ceases to provide mortgage services in this state or longer if required by the commissioner.

(g) An applicant filing for licensure as a mortgage banker or mortgage servicer shall file with the commissioner as part of his or her application audited financial statements that reflect that the applicant has a net worth of at least twenty-five thousand dollars ($25,000) and are: (1) Prepared by an independent certified public accountant; (2) Prepared according to: (A) Generally accepted accounting principles as promulgated by the Financial Accounting Standards Board; or (B) International financial reporting standards promulgated by the International Financial Reporting Standards Foundation and the International Accounting Standards Board; (3) Accompanied by an opinion acceptable to the commissioner; and (4) Dated within fifteen (15) months preceding the date on which the application is filed.

(1) Prepared by an independent certified public accountant;

(2) Prepared according to: (A) Generally accepted accounting principles as promulgated by the Financial Accounting Standards Board; or (B) International financial reporting standards promulgated by the International Financial Reporting Standards Foundation and the International Accounting Standards Board;

(A) Generally accepted accounting principles as promulgated by the Financial Accounting Standards Board; or

(B) International financial reporting standards promulgated by the International Financial Reporting Standards Foundation and the International Accounting Standards Board;

(3) Accompanied by an opinion acceptable to the commissioner; and

(4) Dated within fifteen (15) months preceding the date on which the application is filed.

(h) [Repealed.]

(i) Each principal place of business and each branch office of a mortgage broker, mortgage banker, or mortgage servicer licensed under this subchapter shall obtain a separate license.

(j) Except as set forth in § 23-39-503(d) , each license issued by the commissioner under this subchapter expires at the close of business on December 31 of the calendar year unless the license is: (1) Previously surrendered by the licensee and the surrender is accepted by the commissioner; (2) Abandoned by the licensee as provided in § 23-39-506 ; (3) Suspended or revoked by the commissioner; or (4) Terminated if the temporary authority granted to a transitional loan officer has expired due to: (A) The end of a one hundred twenty (120) day period; or (B) The individual's having received a loan officer license under this subchapter.

(1) Previously surrendered by the licensee and the surrender is accepted by the commissioner;

(2) Abandoned by the licensee as provided in § 23-39-506 ;

(3) Suspended or revoked by the commissioner; or

(4) Terminated if the temporary authority granted to a transitional loan officer has expired due to: (A) The end of a one hundred twenty (120) day period; or (B) The individual's having received a loan officer license under this subchapter.

(A) The end of a one hundred twenty (120) day period; or

(B) The individual's having received a loan officer license under this subchapter.

(k) Licenses issued under this subchapter are not transferable.

(l) (1) Control of a licensee shall not be acquired through a stock or equity purchase, transfer of interest, or other device without the prior written consent of the commissioner. (2) A person seeking to acquire control of a licensee, at least thirty (30) days before the proposed change of control, shall: (A) Pay the commissioner a fee of one hundred dollars ($100); (B) Submit to the commissioner: (i) The information required under subdivision (a)(4)(D) of this section; (ii) The proposed transaction documents; and (iii) Any other information deemed relevant by the commissioner; and (C) Submit financial statements according to subsection (g) of this section, if a licensee holds a mortgage banker or mortgage servicer license. (D) [Repealed.] (3) The commissioner may refuse to give written consent if he or she finds that any of the grounds for denial, revocation, or suspension of a license under § 23-39-514 are applicable to the person seeking to acquire control of a license. (4) (A) Failure to notify the commissioner at least thirty (30) days before the proposed change of control shall result in a late fee of one hundred dollars ($100). (B) All or part of the late fee may be waived by the commissioner for good cause.

(1) Control of a licensee shall not be acquired through a stock or equity purchase, transfer of interest, or other device without the prior written consent of the commissioner.

(2) A person seeking to acquire control of a licensee, at least thirty (30) days before the proposed change of control, shall: (A) Pay the commissioner a fee of one hundred dollars ($100); (B) Submit to the commissioner: (i) The information required under subdivision (a)(4)(D) of this section; (ii) The proposed transaction documents; and (iii) Any other information deemed relevant by the commissioner; and (C) Submit financial statements according to subsection (g) of this section, if a licensee holds a mortgage banker or mortgage servicer license. (D) [Repealed.]

(A) Pay the commissioner a fee of one hundred dollars ($100);

(B) Submit to the commissioner: (i) The information required under subdivision (a)(4)(D) of this section; (ii) The proposed transaction documents; and (iii) Any other information deemed relevant by the commissioner; and

(i) The information required under subdivision (a)(4)(D) of this section;

(ii) The proposed transaction documents; and

(iii) Any other information deemed relevant by the commissioner; and

(C) Submit financial statements according to subsection (g) of this section, if a licensee holds a mortgage banker or mortgage servicer license.

(D) [Repealed.]

(3) The commissioner may refuse to give written consent if he or she finds that any of the grounds for denial, revocation, or suspension of a license under § 23-39-514 are applicable to the person seeking to acquire control of a license.

(4) (A) Failure to notify the commissioner at least thirty (30) days before the proposed change of control shall result in a late fee of one hundred dollars ($100). (B) All or part of the late fee may be waived by the commissioner for good cause.

(A) Failure to notify the commissioner at least thirty (30) days before the proposed change of control shall result in a late fee of one hundred dollars ($100).

(B) All or part of the late fee may be waived by the commissioner for good cause.

(m) (1) An application filed with the commissioner may be withdrawn upon written request of the applicant delivered to the commissioner at any time before the granting of the license. (2) However, if a notice of intent to deny the application has been sent to the applicant, the applicant shall not withdraw the application except upon the written direction of the commissioner.

(1) An application filed with the commissioner may be withdrawn upon written request of the applicant delivered to the commissioner at any time before the granting of the license.

(2) However, if a notice of intent to deny the application has been sent to the applicant, the applicant shall not withdraw the application except upon the written direction of the commissioner.

(n) (1) Unless a proceeding has been commenced to suspend or revoke the license, a license may be surrendered by a licensee by filing a written request to surrender the license in a form acceptable to the commissioner. (2) The surrender of the license becomes effective upon acceptance by the commissioner. (3) Notwithstanding a surrender or termination of a license and acceptance of the surrender or termination by the commissioner, if a licensee or any person acting on behalf of the licensee has knowingly violated any provision of this subchapter or any rule or order promulgated or issued under this subchapter: (A) A proceeding may be commenced at any time within one (1) year following the effective date of the surrender or termination of the license; and (B) An order may be entered revoking the license as of a date before the acceptance of the surrender or termination of the license.

(1) Unless a proceeding has been commenced to suspend or revoke the license, a license may be surrendered by a licensee by filing a written request to surrender the license in a form acceptable to the commissioner.

(2) The surrender of the license becomes effective upon acceptance by the commissioner.

(3) Notwithstanding a surrender or termination of a license and acceptance of the surrender or termination by the commissioner, if a licensee or any person acting on behalf of the licensee has knowingly violated any provision of this subchapter or any rule or order promulgated or issued under this subchapter: (A) A proceeding may be commenced at any time within one (1) year following the effective date of the surrender or termination of the license; and (B) An order may be entered revoking the license as of a date before the acceptance of the surrender or termination of the license.

(A) A proceeding may be commenced at any time within one (1) year following the effective date of the surrender or termination of the license; and

(B) An order may be entered revoking the license as of a date before the acceptance of the surrender or termination of the license.

(o) To issue a loan officer license, the commissioner shall find that: (1) The applicant has: (A) Never had a loan officer license revoked in a governmental jurisdiction; (B) [Repealed.] (C) Demonstrated sufficient financial responsibility, character, and general fitness to command the confidence of the community and to warrant a determination that the loan officer will operate honestly, fairly, and efficiently within the purposes of this subchapter; and (D) Complied with the prelicensing education and testing requirements of subdivision (b)(3) of this section; and (2) The applicant's employer has met the surety bond requirement of subdivision (f)(1) of this section.

(1) The applicant has: (A) Never had a loan officer license revoked in a governmental jurisdiction; (B) [Repealed.] (C) Demonstrated sufficient financial responsibility, character, and general fitness to command the confidence of the community and to warrant a determination that the loan officer will operate honestly, fairly, and efficiently within the purposes of this subchapter; and (D) Complied with the prelicensing education and testing requirements of subdivision (b)(3) of this section; and

(A) Never had a loan officer license revoked in a governmental jurisdiction;

(B) [Repealed.]

(C) Demonstrated sufficient financial responsibility, character, and general fitness to command the confidence of the community and to warrant a determination that the loan officer will operate honestly, fairly, and efficiently within the purposes of this subchapter; and

(D) Complied with the prelicensing education and testing requirements of subdivision (b)(3) of this section; and

(2) The applicant's employer has met the surety bond requirement of subdivision (f)(1) of this section.

Amended by Act 2021, No. 531,§ 7, eff. 7/28/2021.

Amended by Act 2021, No. 531,§ 6, eff. 7/28/2021.

Amended by Act 2021, No. 531,§ 5, eff. 7/28/2021.

Amended by Act 2019, No. 200,§ 17, eff. 7/24/2019.

Amended by Act 2019, No. 200,§ 16, eff. 7/24/2019.

Amended by Act 2019, No. 200,§ 15, eff. 7/24/2019.

Amended by Act 2019, No. 200,§ 14, eff. 7/24/2019.

Amended by Act 2019, No. 200,§ 13, eff. 7/24/2019.

Amended by Act 2019, No. 200,§ 12, eff. 7/24/2019.

Amended by Act 2019, No. 200,§ 11, eff. 7/24/2019.

Amended by Act 2019, No. 910,§ 2348, eff. 7/1/2019.

Amended by Act 2017, No. 669,§ 3, eff. 8/1/2017.

Amended by Act 2017, No. 669,§ 2, eff. 8/1/2017.

Amended by Act 2017, No. 669,§ 1, eff. 8/1/2017.

Amended by Act 2015, No. 1115,§ 29, eff. 7/22/2015.

Acts 2003, No. 554, § 1; 2005, No. 1679, § 1; 2007, No. 748, § 4; 2009, No. 164, § 10; 2009, No. 731, §§ 7 - 17; 2011, No. 894, §§ 5 - 8.
Ark. Code Ann. § 23-4-1208 — AR Code / Title 23 / Chapter 4 / Subchapter 12 / Section 23-4-1208
Term - Formula rate review
Status: in_force

(a) (1) The term of any formula rate review approved by the Arkansas Public Service Commission shall not exceed five (5) years from the date of the commission's final order on the application by the public utility for a general change in rates and charges. (2) (A) (i) Upon a determination that it is in the public interest, a public utility may request and the commission may extend the term of the formula rate review mechanism by a period of no more than five (5) years beyond the initial term. (ii) Except as provided in subdivision (a)(2)(A)(iii) of this section, as part of granting any extension of the initial term of a formula rate mechanism, the public utility may propose and the commission may make the following adjustments, consistent with this subchapter and other applicable statutory provisions for a public utility or any other party to a proceeding subject to the commission's jurisdiction that may be proposed, and the commission may approve: (a) Reasonable and necessary revisions to the formula rate plan mechanism proposed by the parties that are necessary to ensure that the mechanism is consistent with the public interest but that do not materially change the provisions of the formula rate plan mechanism; and (b) An increase or decrease to the utility's authorized return on equity by no more than ten (10) basis points based upon consideration of § 23-4-410(c) -(e), including making any required findings. (iii) For an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (a) An electric utility may request, and the commission shall approve, an extension of the term of the formula rate review mechanism by a period of five (5) years beyond the initial five-year term, provided the request is made on or before March 15, 2021; and (b) Any requests for an extension of the initial term of a formula rate plan mechanism made after March 15, 2021, shall be subject to subdivision (a)(2)(A)(i) of this section. (B) As part of any extension of the initial term of a formula rate review, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), the commission shall adjust the cost allocation of any adjustment with respect to the total change in the formula rate review mechanism revenue level under § 23-4-1207(d) to each applicable rate schedule consistent with § 23-4-422(b)(2) and § 23-4-422(d)(2) using the public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism, and the public utility shall file with the commission the resulting rate schedules as part of any formula rate review compliance filing. (C) As part of any extension of the initial term of a formula rate review mechanism, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), the commission shall approve changes to the rate design within an individual customer class under § 23-4-1205(c)(3)(B) and subject to § 23-4-422(b)(1) using the public utility's most recent cost of service that was submitted under the terms of the public utility formula rate review mechanism, and the public utility shall file with the commission the resulting rate schedules as part of any formula rate review compliance filing. (3) During the five-year term of an extension of any formula rate review mechanism with an initial five-year term approved before March 15, 2021, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (A) (i) If the commission as part of its order in the public utility's most recent application for a general change in rates and charges under § 23-4-401 et seq. adjusted the cost allocation to each applicable rate schedule under the then-applicable provisions of § 23-4-422 , then the commission shall: (a) Use a public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism; (b) Adjust the revenues recoverable from each class of customers to implement the unadjusted cost allocation in an equal annual adjustment over the five-year term of an extension; and (c) This subdivision (a)(3)(A) shall be used to adjust the amounts under § 23-4-1207(d)(1) . (ii) The commission shall not make any other adjustments to the amounts under § 23-4-1207(d) ; (B) For a public utility's class of customers with the highest level of consumption per customer that has rates with a demand component, any decrease in the costs allocated to that class of customers under subdivision (a)(3)(A) of this section shall serve to lower the maximum amount of the revenue increase for that class under § 23-4-1207(d)(2) ; (C) For a public utility's classes of customers other than the class of customers with the highest level of consumption per customer that has rates with a demand component, any increase in the costs allocated to those classes of customers as well as any amounts that lower the maximum revenue increase for any class of customers under subdivision (a)(3)(B) of this section shall be included in the adjustment of customer rates for those classes of customers subject to § 23-4-1207(d)(2) ; (D) For a public utility's nonresidential classes of customers that have rates with a demand component other than the class of customers with the highest level of consumption per customer that has rates with a demand component, the public utility may establish and the commission shall approve a maximum level of consumption or demand to be eligible for service as part of those classes that is lower than the minimum level of consumption or demand to be eligible for the class of customers with the highest level of consumption per customer that has rates with a demand component; and (E) If the commission as part of its order in the public utility's most recent application for a general change in rates and charges under § 23-4-401 et seq. adjusted the rate design for the class of customers with the highest level of consumption per customer that has rates with a demand component under the then-applicable provisions of § 23-4-422 , then: (i) The commission shall approve changes to the rate design within an individual customer class under § 23-4-1205(c)(3)(B) subject to § 23-4-422(b)(1) using the utility's most recent cost of service that was submitted under the terms of its formula rate review mechanism; (ii) The commission shall modify the rate design changes required under § 23-4-422(b)(1) , § 23-4-1205(c)(3)(B), and this subdivision (a)(3), as described in this subdivision (a)(3)(E); and (iii) The commission shall adjust the rate design to the class of customers with the highest level of consumption per customer, which has rates with a demand component in an equal annual adjustment over the first three (3) years of the five-year term of an extension, and the public utility shall file the resulting rate schedules annually as part of any formula rate review compliance filing until the adjustment in this subdivision (a)(3)(E)(iii) is fully implemented. (4) During the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term and that was approved and in effect by the commission before March 15, 2021, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (A) The debt-to-equity ratio, for the purpose of setting rates, shall be fixed at a public utility's actual debt-to-equity ratio reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term; (B) If the commission imputes a level of short-term debt for ratemaking purposes, the amount, stated as a percentage, shall not exceed the amount included in the capital structure reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term; (C) The target return rate in effect during the five-year term of the formula rate review mechanism shall be set equal to an amount that is ten (10) basis points lower than the target return rate in effect during the initial five-year term of the formula rate review mechanism; (D) All other capital structure components, for the purpose of setting rates as well as all other components of a public utility's books and records, including the balance sheet and income statement accounts, shall be determined consistent with § 23-4-1206(g) ; and (E) If the commission imputes any amount for any liabilities that are reflected in the capital structure for ratemaking purposes, it shall not include any amount stated as a percentage that exceeds the amount stated as a percentage included in the capital structure reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term. (5) During the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term and that was approved and in effect by the commission before March 15, 2021, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), to the extent practicable, the public utility shall do the following with respect to providing support for its annual formula rate review evaluation reports during the five-year term of the extension: (A) (i) The public utility shall support the purpose for and level of its projected year investments or expenses with those projections based primarily upon historical averages and making specific adjustments to those amounts instead of basing those projections primarily on the public utility's corporate budget. (ii) The public utility shall use its four-year average historical plant balances for enumerated blanket funding projects associated with capital investment that are mandated by law or regulation, customer-driven, or necessary to maintain the reliability of the electric grid as the baseline for the investments going forward, and to complete this, the public utility may categorize investments according to the public utility's primary objective, including mandated work, preapproved projects, storm work, and reliability work instead of using the public utility's corporate budget to determine the amount included in the projected year. (iii) For any projects that fall outside the recurring enumerated categories that are based on the historical averaging, the public utility shall separately identify, to the extent practicable, each project and support the project as a specific adjustment to the projected year amounts, similar to the presentation of an adjustment made during an application for a general change or modification in rates and charges, and to complete this, the public utility may determine that projects should be grouped together when the projects contain a combination of proposed investments associated with both baseline reliability and load stability projects, such as pole line and circuit inspection programs, and other reliability efforts that the public utility plans to undertake in the projected year; (B) The public utility shall use the four-year historical averages described in subdivision (a)(5)(A)(ii) of this section, except that: (i) The public utility shall adjust the historical averages upward or downward for specific capital projects and anticipated cost increases or decreases that the utility reasonably expects are likely to occur within the projected year and for which the utility provides additional support consistent with other filing support thresholds that the commission applied to the utility's formula rate review mechanism during its initial five-year term; and (ii) Expenses related to capital investments that the utility has already explained shall not require separate support, including depreciation and property taxes; (C) (i) The support for the projected year, described in subdivisions (a)(5)(A) and (B) of this section, shall be applied to the transmission and generation functional areas to the extent deemed practicable by the public utility. (ii) If not practicable, the public utility shall use reasonable efforts to establish a similar framework to present capital investment; (D) The public utility shall use reasonable efforts to develop a similar methodology as described in subdivision (a)(4) of this section and this subdivision (a)(5) for projected year expenses; and (E) Not less than forty-five (45) days before the public utility's annual evaluation report filing: (i) The public utility shall make available to the other eligible parties in the formula rate review proceeding information regarding the public utility's construction projects and purchases that closed to plant during the historical year; and (ii) To the extent reasonably practicable, the public utility shall provide an overview of its planned distribution projects describing the public utility's projected year planned distribution unadjusted investment and expenses. (6) Subdivisions (a)(4) and (5) of this section are subject to the applicable accounting and tax requirements, including the normalization rules of the Internal Revenue Service as in effect on January 1, 2021, and generally acceptable accounting principles. (7) The rate review mechanism shall continue until all historical years have been netted under § 23-4-1206(e)(1) and rates have been adjusted under § 23-4-1207(c) . (b) (1) A formula rate review shall continue until a final order is issued on an application for a general change in rates and charges filed by a public utility or an application for a change in general rates and charges filed by the public utility as ordered by the commission. The rate review mechanism shall continue until all historical years have been netted under § 23-4-1206(e)(1) and rates have been adjusted under § 23-4-1207(c) . (2) (A) A public utility may file an application for a change in rates and charges under § 23-4-401 et seq. at any time during an: (i) Initial term of the formula rate review mechanism; or (ii) Extension of the term of a formula rate review mechanism. (B) If the public utility, during the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term that was approved and in effect by the commission before March 15, 2021, for an electric utility whose largest class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), does not file an application for a change in general rates and charges under § 23-4-401 et seq. under subdivision (b)(2)(A) of this section before the final year of an extension term, the electric utility shall do so during the final year of the extension of the term of a formula rate review mechanism. (3) In any application for a change in general rates and charges filed during or at the conclusion of the initial term or any extension of the term of a formula rate review mechanism that uses a test period based upon a projected year: (A) A public utility's prior designation of a formula rate review test period based upon a projected year under § 23-4-1205(a)(2) shall not affect the public utility's right to designate a test period to justify new rates under § 23-4-406 ; (B) A public utility's formula rate review test period based upon a projected year under § 23-4-1205(a)(2) may include, at the public utility's discretion, all or part of the same historical periods or projected periods as those included in a test period to justify new rates under § 23-4-406 ; and (C) An application described in this subdivision (b)(3) shall not limit subdivision (b)(1) of this section. Amended by Act 2023, No. 299,§ 1, eff. 8/1/2023. Amended by Act 2021, No. 894,§ 5, eff. 4/25/2021. Amended by Act 2021, No. 404,§ 1, eff. 3/22/2021. Superseded by Act 2021, No. 894and repealed by Act 2023, No. 180,§ 1, eff. 8/1/2023 Added by Act 2015, No. 725,§ 3, eff. 3/27/2015.

(a) (1) The term of any formula rate review approved by the Arkansas Public Service Commission shall not exceed five (5) years from the date of the commission's final order on the application by the public utility for a general change in rates and charges. (2) (A) (i) Upon a determination that it is in the public interest, a public utility may request and the commission may extend the term of the formula rate review mechanism by a period of no more than five (5) years beyond the initial term. (ii) Except as provided in subdivision (a)(2)(A)(iii) of this section, as part of granting any extension of the initial term of a formula rate mechanism, the public utility may propose and the commission may make the following adjustments, consistent with this subchapter and other applicable statutory provisions for a public utility or any other party to a proceeding subject to the commission's jurisdiction that may be proposed, and the commission may approve: (a) Reasonable and necessary revisions to the formula rate plan mechanism proposed by the parties that are necessary to ensure that the mechanism is consistent with the public interest but that do not materially change the provisions of the formula rate plan mechanism; and (b) An increase or decrease to the utility's authorized return on equity by no more than ten (10) basis points based upon consideration of § 23-4-410(c) -(e), including making any required findings. (iii) For an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (a) An electric utility may request, and the commission shall approve, an extension of the term of the formula rate review mechanism by a period of five (5) years beyond the initial five-year term, provided the request is made on or before March 15, 2021; and (b) Any requests for an extension of the initial term of a formula rate plan mechanism made after March 15, 2021, shall be subject to subdivision (a)(2)(A)(i) of this section. (B) As part of any extension of the initial term of a formula rate review, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), the commission shall adjust the cost allocation of any adjustment with respect to the total change in the formula rate review mechanism revenue level under § 23-4-1207(d) to each applicable rate schedule consistent with § 23-4-422(b)(2) and § 23-4-422(d)(2) using the public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism, and the public utility shall file with the commission the resulting rate schedules as part of any formula rate review compliance filing. (C) As part of any extension of the initial term of a formula rate review mechanism, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), the commission shall approve changes to the rate design within an individual customer class under § 23-4-1205(c)(3)(B) and subject to § 23-4-422(b)(1) using the public utility's most recent cost of service that was submitted under the terms of the public utility formula rate review mechanism, and the public utility shall file with the commission the resulting rate schedules as part of any formula rate review compliance filing. (3) During the five-year term of an extension of any formula rate review mechanism with an initial five-year term approved before March 15, 2021, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (A) (i) If the commission as part of its order in the public utility's most recent application for a general change in rates and charges under § 23-4-401 et seq. adjusted the cost allocation to each applicable rate schedule under the then-applicable provisions of § 23-4-422 , then the commission shall: (a) Use a public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism; (b) Adjust the revenues recoverable from each class of customers to implement the unadjusted cost allocation in an equal annual adjustment over the five-year term of an extension; and (c) This subdivision (a)(3)(A) shall be used to adjust the amounts under § 23-4-1207(d)(1) . (ii) The commission shall not make any other adjustments to the amounts under § 23-4-1207(d) ; (B) For a public utility's class of customers with the highest level of consumption per customer that has rates with a demand component, any decrease in the costs allocated to that class of customers under subdivision (a)(3)(A) of this section shall serve to lower the maximum amount of the revenue increase for that class under § 23-4-1207(d)(2) ; (C) For a public utility's classes of customers other than the class of customers with the highest level of consumption per customer that has rates with a demand component, any increase in the costs allocated to those classes of customers as well as any amounts that lower the maximum revenue increase for any class of customers under subdivision (a)(3)(B) of this section shall be included in the adjustment of customer rates for those classes of customers subject to § 23-4-1207(d)(2) ; (D) For a public utility's nonresidential classes of customers that have rates with a demand component other than the class of customers with the highest level of consumption per customer that has rates with a demand component, the public utility may establish and the commission shall approve a maximum level of consumption or demand to be eligible for service as part of those classes that is lower than the minimum level of consumption or demand to be eligible for the class of customers with the highest level of consumption per customer that has rates with a demand component; and (E) If the commission as part of its order in the public utility's most recent application for a general change in rates and charges under § 23-4-401 et seq. adjusted the rate design for the class of customers with the highest level of consumption per customer that has rates with a demand component under the then-applicable provisions of § 23-4-422 , then: (i) The commission shall approve changes to the rate design within an individual customer class under § 23-4-1205(c)(3)(B) subject to § 23-4-422(b)(1) using the utility's most recent cost of service that was submitted under the terms of its formula rate review mechanism; (ii) The commission shall modify the rate design changes required under § 23-4-422(b)(1) , § 23-4-1205(c)(3)(B), and this subdivision (a)(3), as described in this subdivision (a)(3)(E); and (iii) The commission shall adjust the rate design to the class of customers with the highest level of consumption per customer, which has rates with a demand component in an equal annual adjustment over the first three (3) years of the five-year term of an extension, and the public utility shall file the resulting rate schedules annually as part of any formula rate review compliance filing until the adjustment in this subdivision (a)(3)(E)(iii) is fully implemented. (4) During the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term and that was approved and in effect by the commission before March 15, 2021, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (A) The debt-to-equity ratio, for the purpose of setting rates, shall be fixed at a public utility's actual debt-to-equity ratio reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term; (B) If the commission imputes a level of short-term debt for ratemaking purposes, the amount, stated as a percentage, shall not exceed the amount included in the capital structure reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term; (C) The target return rate in effect during the five-year term of the formula rate review mechanism shall be set equal to an amount that is ten (10) basis points lower than the target return rate in effect during the initial five-year term of the formula rate review mechanism; (D) All other capital structure components, for the purpose of setting rates as well as all other components of a public utility's books and records, including the balance sheet and income statement accounts, shall be determined consistent with § 23-4-1206(g) ; and (E) If the commission imputes any amount for any liabilities that are reflected in the capital structure for ratemaking purposes, it shall not include any amount stated as a percentage that exceeds the amount stated as a percentage included in the capital structure reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term. (5) During the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term and that was approved and in effect by the commission before March 15, 2021, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), to the extent practicable, the public utility shall do the following with respect to providing support for its annual formula rate review evaluation reports during the five-year term of the extension: (A) (i) The public utility shall support the purpose for and level of its projected year investments or expenses with those projections based primarily upon historical averages and making specific adjustments to those amounts instead of basing those projections primarily on the public utility's corporate budget. (ii) The public utility shall use its four-year average historical plant balances for enumerated blanket funding projects associated with capital investment that are mandated by law or regulation, customer-driven, or necessary to maintain the reliability of the electric grid as the baseline for the investments going forward, and to complete this, the public utility may categorize investments according to the public utility's primary objective, including mandated work, preapproved projects, storm work, and reliability work instead of using the public utility's corporate budget to determine the amount included in the projected year. (iii) For any projects that fall outside the recurring enumerated categories that are based on the historical averaging, the public utility shall separately identify, to the extent practicable, each project and support the project as a specific adjustment to the projected year amounts, similar to the presentation of an adjustment made during an application for a general change or modification in rates and charges, and to complete this, the public utility may determine that projects should be grouped together when the projects contain a combination of proposed investments associated with both baseline reliability and load stability projects, such as pole line and circuit inspection programs, and other reliability efforts that the public utility plans to undertake in the projected year; (B) The public utility shall use the four-year historical averages described in subdivision (a)(5)(A)(ii) of this section, except that: (i) The public utility shall adjust the historical averages upward or downward for specific capital projects and anticipated cost increases or decreases that the utility reasonably expects are likely to occur within the projected year and for which the utility provides additional support consistent with other filing support thresholds that the commission applied to the utility's formula rate review mechanism during its initial five-year term; and (ii) Expenses related to capital investments that the utility has already explained shall not require separate support, including depreciation and property taxes; (C) (i) The support for the projected year, described in subdivisions (a)(5)(A) and (B) of this section, shall be applied to the transmission and generation functional areas to the extent deemed practicable by the public utility. (ii) If not practicable, the public utility shall use reasonable efforts to establish a similar framework to present capital investment; (D) The public utility shall use reasonable efforts to develop a similar methodology as described in subdivision (a)(4) of this section and this subdivision (a)(5) for projected year expenses; and (E) Not less than forty-five (45) days before the public utility's annual evaluation report filing: (i) The public utility shall make available to the other eligible parties in the formula rate review proceeding information regarding the public utility's construction projects and purchases that closed to plant during the historical year; and (ii) To the extent reasonably practicable, the public utility shall provide an overview of its planned distribution projects describing the public utility's projected year planned distribution unadjusted investment and expenses. (6) Subdivisions (a)(4) and (5) of this section are subject to the applicable accounting and tax requirements, including the normalization rules of the Internal Revenue Service as in effect on January 1, 2021, and generally acceptable accounting principles. (7) The rate review mechanism shall continue until all historical years have been netted under § 23-4-1206(e)(1) and rates have been adjusted under § 23-4-1207(c) .

(1) The term of any formula rate review approved by the Arkansas Public Service Commission shall not exceed five (5) years from the date of the commission's final order on the application by the public utility for a general change in rates and charges.

(2) (A) (i) Upon a determination that it is in the public interest, a public utility may request and the commission may extend the term of the formula rate review mechanism by a period of no more than five (5) years beyond the initial term. (ii) Except as provided in subdivision (a)(2)(A)(iii) of this section, as part of granting any extension of the initial term of a formula rate mechanism, the public utility may propose and the commission may make the following adjustments, consistent with this subchapter and other applicable statutory provisions for a public utility or any other party to a proceeding subject to the commission's jurisdiction that may be proposed, and the commission may approve: (a) Reasonable and necessary revisions to the formula rate plan mechanism proposed by the parties that are necessary to ensure that the mechanism is consistent with the public interest but that do not materially change the provisions of the formula rate plan mechanism; and (b) An increase or decrease to the utility's authorized return on equity by no more than ten (10) basis points based upon consideration of § 23-4-410(c) -(e), including making any required findings. (iii) For an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (a) An electric utility may request, and the commission shall approve, an extension of the term of the formula rate review mechanism by a period of five (5) years beyond the initial five-year term, provided the request is made on or before March 15, 2021; and (b) Any requests for an extension of the initial term of a formula rate plan mechanism made after March 15, 2021, shall be subject to subdivision (a)(2)(A)(i) of this section. (B) As part of any extension of the initial term of a formula rate review, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), the commission shall adjust the cost allocation of any adjustment with respect to the total change in the formula rate review mechanism revenue level under § 23-4-1207(d) to each applicable rate schedule consistent with § 23-4-422(b)(2) and § 23-4-422(d)(2) using the public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism, and the public utility shall file with the commission the resulting rate schedules as part of any formula rate review compliance filing. (C) As part of any extension of the initial term of a formula rate review mechanism, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), the commission shall approve changes to the rate design within an individual customer class under § 23-4-1205(c)(3)(B) and subject to § 23-4-422(b)(1) using the public utility's most recent cost of service that was submitted under the terms of the public utility formula rate review mechanism, and the public utility shall file with the commission the resulting rate schedules as part of any formula rate review compliance filing.

(A) (i) Upon a determination that it is in the public interest, a public utility may request and the commission may extend the term of the formula rate review mechanism by a period of no more than five (5) years beyond the initial term. (ii) Except as provided in subdivision (a)(2)(A)(iii) of this section, as part of granting any extension of the initial term of a formula rate mechanism, the public utility may propose and the commission may make the following adjustments, consistent with this subchapter and other applicable statutory provisions for a public utility or any other party to a proceeding subject to the commission's jurisdiction that may be proposed, and the commission may approve: (a) Reasonable and necessary revisions to the formula rate plan mechanism proposed by the parties that are necessary to ensure that the mechanism is consistent with the public interest but that do not materially change the provisions of the formula rate plan mechanism; and (b) An increase or decrease to the utility's authorized return on equity by no more than ten (10) basis points based upon consideration of § 23-4-410(c) -(e), including making any required findings. (iii) For an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (a) An electric utility may request, and the commission shall approve, an extension of the term of the formula rate review mechanism by a period of five (5) years beyond the initial five-year term, provided the request is made on or before March 15, 2021; and (b) Any requests for an extension of the initial term of a formula rate plan mechanism made after March 15, 2021, shall be subject to subdivision (a)(2)(A)(i) of this section.

(i) Upon a determination that it is in the public interest, a public utility may request and the commission may extend the term of the formula rate review mechanism by a period of no more than five (5) years beyond the initial term.

(ii) Except as provided in subdivision (a)(2)(A)(iii) of this section, as part of granting any extension of the initial term of a formula rate mechanism, the public utility may propose and the commission may make the following adjustments, consistent with this subchapter and other applicable statutory provisions for a public utility or any other party to a proceeding subject to the commission's jurisdiction that may be proposed, and the commission may approve: (a) Reasonable and necessary revisions to the formula rate plan mechanism proposed by the parties that are necessary to ensure that the mechanism is consistent with the public interest but that do not materially change the provisions of the formula rate plan mechanism; and (b) An increase or decrease to the utility's authorized return on equity by no more than ten (10) basis points based upon consideration of § 23-4-410(c) -(e), including making any required findings.

(a) Reasonable and necessary revisions to the formula rate plan mechanism proposed by the parties that are necessary to ensure that the mechanism is consistent with the public interest but that do not materially change the provisions of the formula rate plan mechanism; and

(b) An increase or decrease to the utility's authorized return on equity by no more than ten (10) basis points based upon consideration of § 23-4-410(c) -(e), including making any required findings.

(iii) For an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (a) An electric utility may request, and the commission shall approve, an extension of the term of the formula rate review mechanism by a period of five (5) years beyond the initial five-year term, provided the request is made on or before March 15, 2021; and (b) Any requests for an extension of the initial term of a formula rate plan mechanism made after March 15, 2021, shall be subject to subdivision (a)(2)(A)(i) of this section.

(a) An electric utility may request, and the commission shall approve, an extension of the term of the formula rate review mechanism by a period of five (5) years beyond the initial five-year term, provided the request is made on or before March 15, 2021; and

(b) Any requests for an extension of the initial term of a formula rate plan mechanism made after March 15, 2021, shall be subject to subdivision (a)(2)(A)(i) of this section.

(B) As part of any extension of the initial term of a formula rate review, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), the commission shall adjust the cost allocation of any adjustment with respect to the total change in the formula rate review mechanism revenue level under § 23-4-1207(d) to each applicable rate schedule consistent with § 23-4-422(b)(2) and § 23-4-422(d)(2) using the public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism, and the public utility shall file with the commission the resulting rate schedules as part of any formula rate review compliance filing.

(C) As part of any extension of the initial term of a formula rate review mechanism, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), the commission shall approve changes to the rate design within an individual customer class under § 23-4-1205(c)(3)(B) and subject to § 23-4-422(b)(1) using the public utility's most recent cost of service that was submitted under the terms of the public utility formula rate review mechanism, and the public utility shall file with the commission the resulting rate schedules as part of any formula rate review compliance filing.

(3) During the five-year term of an extension of any formula rate review mechanism with an initial five-year term approved before March 15, 2021, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (A) (i) If the commission as part of its order in the public utility's most recent application for a general change in rates and charges under § 23-4-401 et seq. adjusted the cost allocation to each applicable rate schedule under the then-applicable provisions of § 23-4-422 , then the commission shall: (a) Use a public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism; (b) Adjust the revenues recoverable from each class of customers to implement the unadjusted cost allocation in an equal annual adjustment over the five-year term of an extension; and (c) This subdivision (a)(3)(A) shall be used to adjust the amounts under § 23-4-1207(d)(1) . (ii) The commission shall not make any other adjustments to the amounts under § 23-4-1207(d) ; (B) For a public utility's class of customers with the highest level of consumption per customer that has rates with a demand component, any decrease in the costs allocated to that class of customers under subdivision (a)(3)(A) of this section shall serve to lower the maximum amount of the revenue increase for that class under § 23-4-1207(d)(2) ; (C) For a public utility's classes of customers other than the class of customers with the highest level of consumption per customer that has rates with a demand component, any increase in the costs allocated to those classes of customers as well as any amounts that lower the maximum revenue increase for any class of customers under subdivision (a)(3)(B) of this section shall be included in the adjustment of customer rates for those classes of customers subject to § 23-4-1207(d)(2) ; (D) For a public utility's nonresidential classes of customers that have rates with a demand component other than the class of customers with the highest level of consumption per customer that has rates with a demand component, the public utility may establish and the commission shall approve a maximum level of consumption or demand to be eligible for service as part of those classes that is lower than the minimum level of consumption or demand to be eligible for the class of customers with the highest level of consumption per customer that has rates with a demand component; and (E) If the commission as part of its order in the public utility's most recent application for a general change in rates and charges under § 23-4-401 et seq. adjusted the rate design for the class of customers with the highest level of consumption per customer that has rates with a demand component under the then-applicable provisions of § 23-4-422 , then: (i) The commission shall approve changes to the rate design within an individual customer class under § 23-4-1205(c)(3)(B) subject to § 23-4-422(b)(1) using the utility's most recent cost of service that was submitted under the terms of its formula rate review mechanism; (ii) The commission shall modify the rate design changes required under § 23-4-422(b)(1) , § 23-4-1205(c)(3)(B), and this subdivision (a)(3), as described in this subdivision (a)(3)(E); and (iii) The commission shall adjust the rate design to the class of customers with the highest level of consumption per customer, which has rates with a demand component in an equal annual adjustment over the first three (3) years of the five-year term of an extension, and the public utility shall file the resulting rate schedules annually as part of any formula rate review compliance filing until the adjustment in this subdivision (a)(3)(E)(iii) is fully implemented.

(A) (i) If the commission as part of its order in the public utility's most recent application for a general change in rates and charges under § 23-4-401 et seq. adjusted the cost allocation to each applicable rate schedule under the then-applicable provisions of § 23-4-422 , then the commission shall: (a) Use a public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism; (b) Adjust the revenues recoverable from each class of customers to implement the unadjusted cost allocation in an equal annual adjustment over the five-year term of an extension; and (c) This subdivision (a)(3)(A) shall be used to adjust the amounts under § 23-4-1207(d)(1) . (ii) The commission shall not make any other adjustments to the amounts under § 23-4-1207(d) ;

(i) If the commission as part of its order in the public utility's most recent application for a general change in rates and charges under § 23-4-401 et seq. adjusted the cost allocation to each applicable rate schedule under the then-applicable provisions of § 23-4-422 , then the commission shall: (a) Use a public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism; (b) Adjust the revenues recoverable from each class of customers to implement the unadjusted cost allocation in an equal annual adjustment over the five-year term of an extension; and (c) This subdivision (a)(3)(A) shall be used to adjust the amounts under § 23-4-1207(d)(1) .

(a) Use a public utility's most recent cost of service that was submitted under the terms of the public utility's formula rate review mechanism;

(b) Adjust the revenues recoverable from each class of customers to implement the unadjusted cost allocation in an equal annual adjustment over the five-year term of an extension; and

(c) This subdivision (a)(3)(A) shall be used to adjust the amounts under § 23-4-1207(d)(1) .

(ii) The commission shall not make any other adjustments to the amounts under § 23-4-1207(d) ;

(B) For a public utility's class of customers with the highest level of consumption per customer that has rates with a demand component, any decrease in the costs allocated to that class of customers under subdivision (a)(3)(A) of this section shall serve to lower the maximum amount of the revenue increase for that class under § 23-4-1207(d)(2) ;

(C) For a public utility's classes of customers other than the class of customers with the highest level of consumption per customer that has rates with a demand component, any increase in the costs allocated to those classes of customers as well as any amounts that lower the maximum revenue increase for any class of customers under subdivision (a)(3)(B) of this section shall be included in the adjustment of customer rates for those classes of customers subject to § 23-4-1207(d)(2) ;

(D) For a public utility's nonresidential classes of customers that have rates with a demand component other than the class of customers with the highest level of consumption per customer that has rates with a demand component, the public utility may establish and the commission shall approve a maximum level of consumption or demand to be eligible for service as part of those classes that is lower than the minimum level of consumption or demand to be eligible for the class of customers with the highest level of consumption per customer that has rates with a demand component; and

(E) If the commission as part of its order in the public utility's most recent application for a general change in rates and charges under § 23-4-401 et seq. adjusted the rate design for the class of customers with the highest level of consumption per customer that has rates with a demand component under the then-applicable provisions of § 23-4-422 , then: (i) The commission shall approve changes to the rate design within an individual customer class under § 23-4-1205(c)(3)(B) subject to § 23-4-422(b)(1) using the utility's most recent cost of service that was submitted under the terms of its formula rate review mechanism; (ii) The commission shall modify the rate design changes required under § 23-4-422(b)(1) , § 23-4-1205(c)(3)(B), and this subdivision (a)(3), as described in this subdivision (a)(3)(E); and (iii) The commission shall adjust the rate design to the class of customers with the highest level of consumption per customer, which has rates with a demand component in an equal annual adjustment over the first three (3) years of the five-year term of an extension, and the public utility shall file the resulting rate schedules annually as part of any formula rate review compliance filing until the adjustment in this subdivision (a)(3)(E)(iii) is fully implemented.

(i) The commission shall approve changes to the rate design within an individual customer class under § 23-4-1205(c)(3)(B) subject to § 23-4-422(b)(1) using the utility's most recent cost of service that was submitted under the terms of its formula rate review mechanism;

(ii) The commission shall modify the rate design changes required under § 23-4-422(b)(1) , § 23-4-1205(c)(3)(B), and this subdivision (a)(3), as described in this subdivision (a)(3)(E); and

(iii) The commission shall adjust the rate design to the class of customers with the highest level of consumption per customer, which has rates with a demand component in an equal annual adjustment over the first three (3) years of the five-year term of an extension, and the public utility shall file the resulting rate schedules annually as part of any formula rate review compliance filing until the adjustment in this subdivision (a)(3)(E)(iii) is fully implemented.

(4) During the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term and that was approved and in effect by the commission before March 15, 2021, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh): (A) The debt-to-equity ratio, for the purpose of setting rates, shall be fixed at a public utility's actual debt-to-equity ratio reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term; (B) If the commission imputes a level of short-term debt for ratemaking purposes, the amount, stated as a percentage, shall not exceed the amount included in the capital structure reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term; (C) The target return rate in effect during the five-year term of the formula rate review mechanism shall be set equal to an amount that is ten (10) basis points lower than the target return rate in effect during the initial five-year term of the formula rate review mechanism; (D) All other capital structure components, for the purpose of setting rates as well as all other components of a public utility's books and records, including the balance sheet and income statement accounts, shall be determined consistent with § 23-4-1206(g) ; and (E) If the commission imputes any amount for any liabilities that are reflected in the capital structure for ratemaking purposes, it shall not include any amount stated as a percentage that exceeds the amount stated as a percentage included in the capital structure reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term.

(A) The debt-to-equity ratio, for the purpose of setting rates, shall be fixed at a public utility's actual debt-to-equity ratio reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term;

(B) If the commission imputes a level of short-term debt for ratemaking purposes, the amount, stated as a percentage, shall not exceed the amount included in the capital structure reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term;

(C) The target return rate in effect during the five-year term of the formula rate review mechanism shall be set equal to an amount that is ten (10) basis points lower than the target return rate in effect during the initial five-year term of the formula rate review mechanism;

(D) All other capital structure components, for the purpose of setting rates as well as all other components of a public utility's books and records, including the balance sheet and income statement accounts, shall be determined consistent with § 23-4-1206(g) ; and

(E) If the commission imputes any amount for any liabilities that are reflected in the capital structure for ratemaking purposes, it shall not include any amount stated as a percentage that exceeds the amount stated as a percentage included in the capital structure reflected in the commission order issued on December 11, 2020, addressing the annual formula rate review filing during the final year of the initial five-year term.

(5) During the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term and that was approved and in effect by the commission before March 15, 2021, for an electric utility if the electric utility's class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), to the extent practicable, the public utility shall do the following with respect to providing support for its annual formula rate review evaluation reports during the five-year term of the extension: (A) (i) The public utility shall support the purpose for and level of its projected year investments or expenses with those projections based primarily upon historical averages and making specific adjustments to those amounts instead of basing those projections primarily on the public utility's corporate budget. (ii) The public utility shall use its four-year average historical plant balances for enumerated blanket funding projects associated with capital investment that are mandated by law or regulation, customer-driven, or necessary to maintain the reliability of the electric grid as the baseline for the investments going forward, and to complete this, the public utility may categorize investments according to the public utility's primary objective, including mandated work, preapproved projects, storm work, and reliability work instead of using the public utility's corporate budget to determine the amount included in the projected year. (iii) For any projects that fall outside the recurring enumerated categories that are based on the historical averaging, the public utility shall separately identify, to the extent practicable, each project and support the project as a specific adjustment to the projected year amounts, similar to the presentation of an adjustment made during an application for a general change or modification in rates and charges, and to complete this, the public utility may determine that projects should be grouped together when the projects contain a combination of proposed investments associated with both baseline reliability and load stability projects, such as pole line and circuit inspection programs, and other reliability efforts that the public utility plans to undertake in the projected year; (B) The public utility shall use the four-year historical averages described in subdivision (a)(5)(A)(ii) of this section, except that: (i) The public utility shall adjust the historical averages upward or downward for specific capital projects and anticipated cost increases or decreases that the utility reasonably expects are likely to occur within the projected year and for which the utility provides additional support consistent with other filing support thresholds that the commission applied to the utility's formula rate review mechanism during its initial five-year term; and (ii) Expenses related to capital investments that the utility has already explained shall not require separate support, including depreciation and property taxes; (C) (i) The support for the projected year, described in subdivisions (a)(5)(A) and (B) of this section, shall be applied to the transmission and generation functional areas to the extent deemed practicable by the public utility. (ii) If not practicable, the public utility shall use reasonable efforts to establish a similar framework to present capital investment; (D) The public utility shall use reasonable efforts to develop a similar methodology as described in subdivision (a)(4) of this section and this subdivision (a)(5) for projected year expenses; and (E) Not less than forty-five (45) days before the public utility's annual evaluation report filing: (i) The public utility shall make available to the other eligible parties in the formula rate review proceeding information regarding the public utility's construction projects and purchases that closed to plant during the historical year; and (ii) To the extent reasonably practicable, the public utility shall provide an overview of its planned distribution projects describing the public utility's projected year planned distribution unadjusted investment and expenses.

(A) (i) The public utility shall support the purpose for and level of its projected year investments or expenses with those projections based primarily upon historical averages and making specific adjustments to those amounts instead of basing those projections primarily on the public utility's corporate budget. (ii) The public utility shall use its four-year average historical plant balances for enumerated blanket funding projects associated with capital investment that are mandated by law or regulation, customer-driven, or necessary to maintain the reliability of the electric grid as the baseline for the investments going forward, and to complete this, the public utility may categorize investments according to the public utility's primary objective, including mandated work, preapproved projects, storm work, and reliability work instead of using the public utility's corporate budget to determine the amount included in the projected year. (iii) For any projects that fall outside the recurring enumerated categories that are based on the historical averaging, the public utility shall separately identify, to the extent practicable, each project and support the project as a specific adjustment to the projected year amounts, similar to the presentation of an adjustment made during an application for a general change or modification in rates and charges, and to complete this, the public utility may determine that projects should be grouped together when the projects contain a combination of proposed investments associated with both baseline reliability and load stability projects, such as pole line and circuit inspection programs, and other reliability efforts that the public utility plans to undertake in the projected year;

(i) The public utility shall support the purpose for and level of its projected year investments or expenses with those projections based primarily upon historical averages and making specific adjustments to those amounts instead of basing those projections primarily on the public utility's corporate budget.

(ii) The public utility shall use its four-year average historical plant balances for enumerated blanket funding projects associated with capital investment that are mandated by law or regulation, customer-driven, or necessary to maintain the reliability of the electric grid as the baseline for the investments going forward, and to complete this, the public utility may categorize investments according to the public utility's primary objective, including mandated work, preapproved projects, storm work, and reliability work instead of using the public utility's corporate budget to determine the amount included in the projected year.

(iii) For any projects that fall outside the recurring enumerated categories that are based on the historical averaging, the public utility shall separately identify, to the extent practicable, each project and support the project as a specific adjustment to the projected year amounts, similar to the presentation of an adjustment made during an application for a general change or modification in rates and charges, and to complete this, the public utility may determine that projects should be grouped together when the projects contain a combination of proposed investments associated with both baseline reliability and load stability projects, such as pole line and circuit inspection programs, and other reliability efforts that the public utility plans to undertake in the projected year;

(B) The public utility shall use the four-year historical averages described in subdivision (a)(5)(A)(ii) of this section, except that: (i) The public utility shall adjust the historical averages upward or downward for specific capital projects and anticipated cost increases or decreases that the utility reasonably expects are likely to occur within the projected year and for which the utility provides additional support consistent with other filing support thresholds that the commission applied to the utility's formula rate review mechanism during its initial five-year term; and (ii) Expenses related to capital investments that the utility has already explained shall not require separate support, including depreciation and property taxes;

(i) The public utility shall adjust the historical averages upward or downward for specific capital projects and anticipated cost increases or decreases that the utility reasonably expects are likely to occur within the projected year and for which the utility provides additional support consistent with other filing support thresholds that the commission applied to the utility's formula rate review mechanism during its initial five-year term; and

(ii) Expenses related to capital investments that the utility has already explained shall not require separate support, including depreciation and property taxes;

(C) (i) The support for the projected year, described in subdivisions (a)(5)(A) and (B) of this section, shall be applied to the transmission and generation functional areas to the extent deemed practicable by the public utility. (ii) If not practicable, the public utility shall use reasonable efforts to establish a similar framework to present capital investment;

(i) The support for the projected year, described in subdivisions (a)(5)(A) and (B) of this section, shall be applied to the transmission and generation functional areas to the extent deemed practicable by the public utility.

(ii) If not practicable, the public utility shall use reasonable efforts to establish a similar framework to present capital investment;

(D) The public utility shall use reasonable efforts to develop a similar methodology as described in subdivision (a)(4) of this section and this subdivision (a)(5) for projected year expenses; and

(E) Not less than forty-five (45) days before the public utility's annual evaluation report filing: (i) The public utility shall make available to the other eligible parties in the formula rate review proceeding information regarding the public utility's construction projects and purchases that closed to plant during the historical year; and (ii) To the extent reasonably practicable, the public utility shall provide an overview of its planned distribution projects describing the public utility's projected year planned distribution unadjusted investment and expenses.

(i) The public utility shall make available to the other eligible parties in the formula rate review proceeding information regarding the public utility's construction projects and purchases that closed to plant during the historical year; and

(ii) To the extent reasonably practicable, the public utility shall provide an overview of its planned distribution projects describing the public utility's projected year planned distribution unadjusted investment and expenses.

(6) Subdivisions (a)(4) and (5) of this section are subject to the applicable accounting and tax requirements, including the normalization rules of the Internal Revenue Service as in effect on January 1, 2021, and generally acceptable accounting principles.

(7) The rate review mechanism shall continue until all historical years have been netted under § 23-4-1206(e)(1) and rates have been adjusted under § 23-4-1207(c) .

(b) (1) A formula rate review shall continue until a final order is issued on an application for a general change in rates and charges filed by a public utility or an application for a change in general rates and charges filed by the public utility as ordered by the commission. The rate review mechanism shall continue until all historical years have been netted under § 23-4-1206(e)(1) and rates have been adjusted under § 23-4-1207(c) . (2) (A) A public utility may file an application for a change in rates and charges under § 23-4-401 et seq. at any time during an: (i) Initial term of the formula rate review mechanism; or (ii) Extension of the term of a formula rate review mechanism. (B) If the public utility, during the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term that was approved and in effect by the commission before March 15, 2021, for an electric utility whose largest class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), does not file an application for a change in general rates and charges under § 23-4-401 et seq. under subdivision (b)(2)(A) of this section before the final year of an extension term, the electric utility shall do so during the final year of the extension of the term of a formula rate review mechanism. (3) In any application for a change in general rates and charges filed during or at the conclusion of the initial term or any extension of the term of a formula rate review mechanism that uses a test period based upon a projected year: (A) A public utility's prior designation of a formula rate review test period based upon a projected year under § 23-4-1205(a)(2) shall not affect the public utility's right to designate a test period to justify new rates under § 23-4-406 ; (B) A public utility's formula rate review test period based upon a projected year under § 23-4-1205(a)(2) may include, at the public utility's discretion, all or part of the same historical periods or projected periods as those included in a test period to justify new rates under § 23-4-406 ; and (C) An application described in this subdivision (b)(3) shall not limit subdivision (b)(1) of this section.

(1) A formula rate review shall continue until a final order is issued on an application for a general change in rates and charges filed by a public utility or an application for a change in general rates and charges filed by the public utility as ordered by the commission. The rate review mechanism shall continue until all historical years have been netted under § 23-4-1206(e)(1) and rates have been adjusted under § 23-4-1207(c) .

(2) (A) A public utility may file an application for a change in rates and charges under § 23-4-401 et seq. at any time during an: (i) Initial term of the formula rate review mechanism; or (ii) Extension of the term of a formula rate review mechanism. (B) If the public utility, during the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term that was approved and in effect by the commission before March 15, 2021, for an electric utility whose largest class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), does not file an application for a change in general rates and charges under § 23-4-401 et seq. under subdivision (b)(2)(A) of this section before the final year of an extension term, the electric utility shall do so during the final year of the extension of the term of a formula rate review mechanism.

(A) A public utility may file an application for a change in rates and charges under § 23-4-401 et seq. at any time during an: (i) Initial term of the formula rate review mechanism; or (ii) Extension of the term of a formula rate review mechanism.

(i) Initial term of the formula rate review mechanism; or

(ii) Extension of the term of a formula rate review mechanism.

(B) If the public utility, during the five-year term of an extension, for an electric public utility with a formula rate review mechanism that uses a test period based on a projected year with an initial five-year term that was approved and in effect by the commission before March 15, 2021, for an electric utility whose largest class of customers with the highest level of consumption per customer that has rates that include a demand component, and any successors to such a class, as they existed on January 1, 2021, has an annual usage for the class as a whole in excess of five million megawatt hours (5,000,000 MWh), does not file an application for a change in general rates and charges under § 23-4-401 et seq. under subdivision (b)(2)(A) of this section before the final year of an extension term, the electric utility shall do so during the final year of the extension of the term of a formula rate review mechanism.

(3) In any application for a change in general rates and charges filed during or at the conclusion of the initial term or any extension of the term of a formula rate review mechanism that uses a test period based upon a projected year: (A) A public utility's prior designation of a formula rate review test period based upon a projected year under § 23-4-1205(a)(2) shall not affect the public utility's right to designate a test period to justify new rates under § 23-4-406 ; (B) A public utility's formula rate review test period based upon a projected year under § 23-4-1205(a)(2) may include, at the public utility's discretion, all or part of the same historical periods or projected periods as those included in a test period to justify new rates under § 23-4-406 ; and (C) An application described in this subdivision (b)(3) shall not limit subdivision (b)(1) of this section.

(A) A public utility's prior designation of a formula rate review test period based upon a projected year under § 23-4-1205(a)(2) shall not affect the public utility's right to designate a test period to justify new rates under § 23-4-406 ;

(B) A public utility's formula rate review test period based upon a projected year under § 23-4-1205(a)(2) may include, at the public utility's discretion, all or part of the same historical periods or projected periods as those included in a test period to justify new rates under § 23-4-406 ; and

(C) An application described in this subdivision (b)(3) shall not limit subdivision (b)(1) of this section.

Amended by Act 2023, No. 299,§ 1, eff. 8/1/2023.

Amended by Act 2021, No. 894,§ 5, eff. 4/25/2021.

Amended by Act 2021, No. 404,§ 1, eff. 3/22/2021. Superseded by Act 2021, No. 894and repealed by Act 2023, No. 180,§ 1, eff. 8/1/2023

Added by Act 2015, No. 725,§ 3, eff. 3/27/2015.
Ark. Code Ann. § 23-96-102 — AR Code / Title 23 / Chapter 96 / Section 23-96-102
Purpose
Status: in_force

(a) The purpose of this chapter is to protect, subject to certain limitations, the persons specified in § 23-96-107(a) against failure in the performance of contractual obligations under life and health and annuity policies, plans, or contracts specified in § 23-96-107(b) because of the impairment or insolvency of the member insurer that issued the policies, plans, or contracts. (b) To provide this protection, an association of member insurers is created to pay benefits and to continue coverages as limited in this chapter, and members of the association are subject to assessment to provide funds to carry out the purpose of this chapter. Amended by Act 2019, No. 520,§ 2, eff. 7/24/2019. Acts 1989, No. 444, § 2; 1997, No. 950, § 1; 2001, No. 1603, § 47.

(a) The purpose of this chapter is to protect, subject to certain limitations, the persons specified in § 23-96-107(a) against failure in the performance of contractual obligations under life and health and annuity policies, plans, or contracts specified in § 23-96-107(b) because of the impairment or insolvency of the member insurer that issued the policies, plans, or contracts.

(b) To provide this protection, an association of member insurers is created to pay benefits and to continue coverages as limited in this chapter, and members of the association are subject to assessment to provide funds to carry out the purpose of this chapter.

Amended by Act 2019, No. 520,§ 2, eff. 7/24/2019.

Acts 1989, No. 444, § 2; 1997, No. 950, § 1; 2001, No. 1603, § 47.
Ark. Code Ann. § 23-64-216 — AR Code / Title 23 / Chapter 64 / Subchapter 2 / Section 23-64-216
Suspension or revocation - Definition
Status: in_force

(a) The Insurance Commissioner may suspend for up to thirty-six (36) months, may revoke or refuse to continue, or may place in probationary status any license issued by him or her if after notice to the licensee and after hearing, unless a hearing is exempted under subdivision (a)(2)(I)(iii) of this section, he or she finds any one (1) or more of the following causes exist: (1) In the case of an insurance producer or broker licensed as an insurance producer, for any of the causes under § 23-64-512 ; or (2) In the case of an adjuster or insurance consultant licensed under this subchapter: (A) Providing incorrect, misleading, incomplete, or materially untrue information in the license application; (B) Violating any insurance laws or violating any regulation, subpoena, or order of the Insurance Commissioner or of another state's insurance commissioner; (C) Obtaining or attempting to obtain a license through misrepresentation or fraud; (D) Improperly withholding, misappropriating, or converting any moneys or properties received in the course of doing insurance business; (E) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance; (F) Having been convicted of a felony; (G) Having admitted or been found to have committed any insurance unfair trade practice or fraud; (H) Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere; (I) (i) Having an insurance producer, insurance consultant, or adjuster license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory. (ii) A license of a nonresident insurance producer, adjuster, or insurance consultant whose home state license ceases to be active shall be summarily suspended by the Insurance Commissioner under § 23-64-508(b)(2) . (iii) (a) If summarily suspending the license of a nonresident insurance producer, adjuster, or insurance consultant under subdivision (a)(2)(I)(ii) of this section, the Insurance Commissioner shall provide notice in writing to the address provided to the State Insurance Department by the licensee. (b) The notice required under subdivision (a)(2)(I)(iii) (a) of this section shall inform the licensee that a hearing may be requested within thirty (30) days of receipt of the notice of suspension; (J) Forging another's name to an application for insurance or to any document related to an insurance transaction; (K) Improperly using notes or any other reference material to complete an examination for an insurance license; (L) Knowingly accepting insurance business from an individual who is not licensed; (M) Failing to comply with an administrative or court order imposing a child support obligation; or (N) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax. (b) For purposes of this section, licenses also include permits, registrations, or certificates of authority. (c) The license of a firm, limited liability company, or corporation may be suspended, revoked, or refused also for any of such causes as relate to any individual designated in the license to exercise its powers. (d) (1) If the Insurance Commissioner finds that one (1) or more grounds exist for the suspension or revocation of any license, the Insurance Commissioner in his or her discretion may impose upon the licensee an administrative penalty in the amount of up to one thousand dollars ($1,000) per violation or, if the Insurance Commissioner has found willful misconduct or willful violation on the part of the licensee, up to five thousand dollars ($5,000) per violation. (2) The administrative penalty may be augmented, in the Insurance Commissioner's discretion, by an amount equal to any commissions received by or accruing to the credit of the licensee for any transaction related to the proceeding against the licensee. (3) The Insurance Commissioner may also order restitution of actual losses to affected persons. (e) (1) If the Insurance Commissioner determines that the public health, safety, or welfare imperatively requires emergency action and incorporates a finding to that effect in his or her order, pending an administrative hearing, the Insurance Commissioner may: (A) Issue a summary suspension of any license issued by him or her; or (B) Issue an emergency cease and desist order. (2) A hearing held under this subsection shall be promptly instituted. (f) (1) If upon notice and hearing the Insurance Commissioner finds that the licensee has violated a provision of the insurance laws of this state or any rule or order of the Insurance Commissioner and that the licensee previously has been found to have violated provisions of the insurance laws of this state or any rule or order of the Insurance Commissioner, by an order of the Insurance Commissioner after hearing or by an order entered with the consent and agreement of the parties, the Insurance Commissioner may take judicial notice of the previous orders against the licensee and, within the Insurance Commissioner's discretion, may enhance or increase the penalties ordered in the current proceeding as to the licensee, and the Insurance Commissioner shall incorporate a finding to that effect in his or her order. (2) Statutory or regulatory violations for which an order has been entered as to the licensee by the State Insurance Department or equivalent regulatory body in any other jurisdiction may be taken into consideration and included in assessing the enhanced or increased penalties provided in subdivision (f)(1) of this section. (g) The penalties recited in this section may be imposed by the Insurance Commissioner for violations of the Arkansas Insurance Code or other applicable laws, or rules or orders of the Insurance Commissioner, committed by any resident agent whose license is on inactive or retired status. (h) For purposes of this section, "probationary status" means the suspended imposition of insurance license sanctions that the Insurance Commissioner may impose by law or by informed consent on a licensee subject to this chapter, upon disclosed terms and for a specified period, contingent upon the compliance and good conduct of the licensee during that period, and that would result in imposition of insurance license sanctions upon the licensee's failure to successfully complete the specified period. Amended by Act 2021, No. 397,§ 2, eff. 7/28/2021. Amended by Act 2019, No. 315,§ 2650, eff. 7/24/2019. Acts 1959, No. 148, § 178; 1973, No. 66, § 6; 1983, No. 522, § 22; A.S.A. 1947, § 66-2835; Acts 1987, No. 622, § 19; 1993, No. 901, § 26; 1997, No. 1004, § 1; 2001, No. 580, § 19; 2003, No. 1203, §§ 3, 4; 2011, No. 760, § 6.

(a) The Insurance Commissioner may suspend for up to thirty-six (36) months, may revoke or refuse to continue, or may place in probationary status any license issued by him or her if after notice to the licensee and after hearing, unless a hearing is exempted under subdivision (a)(2)(I)(iii) of this section, he or she finds any one (1) or more of the following causes exist: (1) In the case of an insurance producer or broker licensed as an insurance producer, for any of the causes under § 23-64-512 ; or (2) In the case of an adjuster or insurance consultant licensed under this subchapter: (A) Providing incorrect, misleading, incomplete, or materially untrue information in the license application; (B) Violating any insurance laws or violating any regulation, subpoena, or order of the Insurance Commissioner or of another state's insurance commissioner; (C) Obtaining or attempting to obtain a license through misrepresentation or fraud; (D) Improperly withholding, misappropriating, or converting any moneys or properties received in the course of doing insurance business; (E) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance; (F) Having been convicted of a felony; (G) Having admitted or been found to have committed any insurance unfair trade practice or fraud; (H) Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere; (I) (i) Having an insurance producer, insurance consultant, or adjuster license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory. (ii) A license of a nonresident insurance producer, adjuster, or insurance consultant whose home state license ceases to be active shall be summarily suspended by the Insurance Commissioner under § 23-64-508(b)(2) . (iii) (a) If summarily suspending the license of a nonresident insurance producer, adjuster, or insurance consultant under subdivision (a)(2)(I)(ii) of this section, the Insurance Commissioner shall provide notice in writing to the address provided to the State Insurance Department by the licensee. (b) The notice required under subdivision (a)(2)(I)(iii) (a) of this section shall inform the licensee that a hearing may be requested within thirty (30) days of receipt of the notice of suspension; (J) Forging another's name to an application for insurance or to any document related to an insurance transaction; (K) Improperly using notes or any other reference material to complete an examination for an insurance license; (L) Knowingly accepting insurance business from an individual who is not licensed; (M) Failing to comply with an administrative or court order imposing a child support obligation; or (N) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.

(1) In the case of an insurance producer or broker licensed as an insurance producer, for any of the causes under § 23-64-512 ; or

(2) In the case of an adjuster or insurance consultant licensed under this subchapter: (A) Providing incorrect, misleading, incomplete, or materially untrue information in the license application; (B) Violating any insurance laws or violating any regulation, subpoena, or order of the Insurance Commissioner or of another state's insurance commissioner; (C) Obtaining or attempting to obtain a license through misrepresentation or fraud; (D) Improperly withholding, misappropriating, or converting any moneys or properties received in the course of doing insurance business; (E) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance; (F) Having been convicted of a felony; (G) Having admitted or been found to have committed any insurance unfair trade practice or fraud; (H) Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere; (I) (i) Having an insurance producer, insurance consultant, or adjuster license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory. (ii) A license of a nonresident insurance producer, adjuster, or insurance consultant whose home state license ceases to be active shall be summarily suspended by the Insurance Commissioner under § 23-64-508(b)(2) . (iii) (a) If summarily suspending the license of a nonresident insurance producer, adjuster, or insurance consultant under subdivision (a)(2)(I)(ii) of this section, the Insurance Commissioner shall provide notice in writing to the address provided to the State Insurance Department by the licensee. (b) The notice required under subdivision (a)(2)(I)(iii) (a) of this section shall inform the licensee that a hearing may be requested within thirty (30) days of receipt of the notice of suspension; (J) Forging another's name to an application for insurance or to any document related to an insurance transaction; (K) Improperly using notes or any other reference material to complete an examination for an insurance license; (L) Knowingly accepting insurance business from an individual who is not licensed; (M) Failing to comply with an administrative or court order imposing a child support obligation; or (N) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.

(A) Providing incorrect, misleading, incomplete, or materially untrue information in the license application;

(B) Violating any insurance laws or violating any regulation, subpoena, or order of the Insurance Commissioner or of another state's insurance commissioner;

(C) Obtaining or attempting to obtain a license through misrepresentation or fraud;

(D) Improperly withholding, misappropriating, or converting any moneys or properties received in the course of doing insurance business;

(E) Intentionally misrepresenting the terms of an actual or proposed insurance contract or application for insurance;

(F) Having been convicted of a felony;

(G) Having admitted or been found to have committed any insurance unfair trade practice or fraud;

(H) Using fraudulent, coercive, or dishonest practices, or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this state or elsewhere;

(I) (i) Having an insurance producer, insurance consultant, or adjuster license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory. (ii) A license of a nonresident insurance producer, adjuster, or insurance consultant whose home state license ceases to be active shall be summarily suspended by the Insurance Commissioner under § 23-64-508(b)(2) . (iii) (a) If summarily suspending the license of a nonresident insurance producer, adjuster, or insurance consultant under subdivision (a)(2)(I)(ii) of this section, the Insurance Commissioner shall provide notice in writing to the address provided to the State Insurance Department by the licensee. (b) The notice required under subdivision (a)(2)(I)(iii) (a) of this section shall inform the licensee that a hearing may be requested within thirty (30) days of receipt of the notice of suspension;

(i) Having an insurance producer, insurance consultant, or adjuster license, or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory.

(ii) A license of a nonresident insurance producer, adjuster, or insurance consultant whose home state license ceases to be active shall be summarily suspended by the Insurance Commissioner under § 23-64-508(b)(2) .

(iii) (a) If summarily suspending the license of a nonresident insurance producer, adjuster, or insurance consultant under subdivision (a)(2)(I)(ii) of this section, the Insurance Commissioner shall provide notice in writing to the address provided to the State Insurance Department by the licensee. (b) The notice required under subdivision (a)(2)(I)(iii) (a) of this section shall inform the licensee that a hearing may be requested within thirty (30) days of receipt of the notice of suspension;

(a) If summarily suspending the license of a nonresident insurance producer, adjuster, or insurance consultant under subdivision (a)(2)(I)(ii) of this section, the Insurance Commissioner shall provide notice in writing to the address provided to the State Insurance Department by the licensee.

(b) The notice required under subdivision (a)(2)(I)(iii) (a) of this section shall inform the licensee that a hearing may be requested within thirty (30) days of receipt of the notice of suspension;

(J) Forging another's name to an application for insurance or to any document related to an insurance transaction;

(K) Improperly using notes or any other reference material to complete an examination for an insurance license;

(L) Knowingly accepting insurance business from an individual who is not licensed;

(M) Failing to comply with an administrative or court order imposing a child support obligation; or

(N) Failing to pay state income tax or comply with any administrative or court order directing payment of state income tax.

(b) For purposes of this section, licenses also include permits, registrations, or certificates of authority.

(c) The license of a firm, limited liability company, or corporation may be suspended, revoked, or refused also for any of such causes as relate to any individual designated in the license to exercise its powers.

(d) (1) If the Insurance Commissioner finds that one (1) or more grounds exist for the suspension or revocation of any license, the Insurance Commissioner in his or her discretion may impose upon the licensee an administrative penalty in the amount of up to one thousand dollars ($1,000) per violation or, if the Insurance Commissioner has found willful misconduct or willful violation on the part of the licensee, up to five thousand dollars ($5,000) per violation. (2) The administrative penalty may be augmented, in the Insurance Commissioner's discretion, by an amount equal to any commissions received by or accruing to the credit of the licensee for any transaction related to the proceeding against the licensee. (3) The Insurance Commissioner may also order restitution of actual losses to affected persons.

(1) If the Insurance Commissioner finds that one (1) or more grounds exist for the suspension or revocation of any license, the Insurance Commissioner in his or her discretion may impose upon the licensee an administrative penalty in the amount of up to one thousand dollars ($1,000) per violation or, if the Insurance Commissioner has found willful misconduct or willful violation on the part of the licensee, up to five thousand dollars ($5,000) per violation.

(2) The administrative penalty may be augmented, in the Insurance Commissioner's discretion, by an amount equal to any commissions received by or accruing to the credit of the licensee for any transaction related to the proceeding against the licensee.

(3) The Insurance Commissioner may also order restitution of actual losses to affected persons.

(e) (1) If the Insurance Commissioner determines that the public health, safety, or welfare imperatively requires emergency action and incorporates a finding to that effect in his or her order, pending an administrative hearing, the Insurance Commissioner may: (A) Issue a summary suspension of any license issued by him or her; or (B) Issue an emergency cease and desist order. (2) A hearing held under this subsection shall be promptly instituted.

(1) If the Insurance Commissioner determines that the public health, safety, or welfare imperatively requires emergency action and incorporates a finding to that effect in his or her order, pending an administrative hearing, the Insurance Commissioner may: (A) Issue a summary suspension of any license issued by him or her; or (B) Issue an emergency cease and desist order.

(A) Issue a summary suspension of any license issued by him or her; or

(B) Issue an emergency cease and desist order.

(2) A hearing held under this subsection shall be promptly instituted.

(f) (1) If upon notice and hearing the Insurance Commissioner finds that the licensee has violated a provision of the insurance laws of this state or any rule or order of the Insurance Commissioner and that the licensee previously has been found to have violated provisions of the insurance laws of this state or any rule or order of the Insurance Commissioner, by an order of the Insurance Commissioner after hearing or by an order entered with the consent and agreement of the parties, the Insurance Commissioner may take judicial notice of the previous orders against the licensee and, within the Insurance Commissioner's discretion, may enhance or increase the penalties ordered in the current proceeding as to the licensee, and the Insurance Commissioner shall incorporate a finding to that effect in his or her order. (2) Statutory or regulatory violations for which an order has been entered as to the licensee by the State Insurance Department or equivalent regulatory body in any other jurisdiction may be taken into consideration and included in assessing the enhanced or increased penalties provided in subdivision (f)(1) of this section.

(1) If upon notice and hearing the Insurance Commissioner finds that the licensee has violated a provision of the insurance laws of this state or any rule or order of the Insurance Commissioner and that the licensee previously has been found to have violated provisions of the insurance laws of this state or any rule or order of the Insurance Commissioner, by an order of the Insurance Commissioner after hearing or by an order entered with the consent and agreement of the parties, the Insurance Commissioner may take judicial notice of the previous orders against the licensee and, within the Insurance Commissioner's discretion, may enhance or increase the penalties ordered in the current proceeding as to the licensee, and the Insurance Commissioner shall incorporate a finding to that effect in his or her order.

(2) Statutory or regulatory violations for which an order has been entered as to the licensee by the State Insurance Department or equivalent regulatory body in any other jurisdiction may be taken into consideration and included in assessing the enhanced or increased penalties provided in subdivision (f)(1) of this section.

(g) The penalties recited in this section may be imposed by the Insurance Commissioner for violations of the Arkansas Insurance Code or other applicable laws, or rules or orders of the Insurance Commissioner, committed by any resident agent whose license is on inactive or retired status.

(h) For purposes of this section, "probationary status" means the suspended imposition of insurance license sanctions that the Insurance Commissioner may impose by law or by informed consent on a licensee subject to this chapter, upon disclosed terms and for a specified period, contingent upon the compliance and good conduct of the licensee during that period, and that would result in imposition of insurance license sanctions upon the licensee's failure to successfully complete the specified period.

Amended by Act 2021, No. 397,§ 2, eff. 7/28/2021.

Amended by Act 2019, No. 315,§ 2650, eff. 7/24/2019.

Acts 1959, No. 148, § 178; 1973, No. 66, § 6; 1983, No. 522, § 22; A.S.A. 1947, § 66-2835; Acts 1987, No. 622, § 19; 1993, No. 901, § 26; 1997, No. 1004, § 1; 2001, No. 580, § 19; 2003, No. 1203, §§ 3, 4; 2011, No. 760, § 6.
Ark. Code Ann. § 23-3-205 — AR Code / Title 23 / Chapter 3 / Subchapter 2 / Section 23-3-205
Issuance of certificate of public convenience and necessity - Terms and conditions - Definitions
Status: in_force

(a) As used in this section: (1) "Consolidated utility district" means a consolidated utility district as defined in § 14-217-103 that owns or operates an electric system as defined in § 14-217-103 ; and (2) "Municipality" means a municipality as defined in § 14-202-102 that: (A) Owns or operates a municipal electric utility as defined in § 25-20-402 ; or (B) Is an owner of an electric project as defined in § 25-20-402 . (b) (1) After conducting a hearing to assess the merits of an application for a certificate of public convenience and necessity under this subchapter, the Arkansas Public Service Commission may grant or deny all or part of the application upon any terms or conditions the commission finds appropriate to serve the purposes of this subchapter. (2) The right to a hearing under this section may be waived by the applicant. (c) (1) Except as provided under subdivision (c)(2) of this section, the commission shall not issue a certificate of public convenience and necessity to any person or corporation that: (A) Is not a public utility; (B) Primarily transmits electricity; and (C) Has not been directed or designated to construct an electric transmission facility from a regional transmission organization. (2) After the commission conducts a hearing under subdivision (b)(1) of this section for a person or corporation that primarily transmits electricity and has not been directed to construct an electric transmission facility from a regional transmission organization, the commission may grant or deny all or part of the application upon any terms or conditions the commission finds appropriate for the purposes of this subchapter subject to the following considerations: (A) The commission shall only authorize the person or corporation to contract with a municipality or a consolidated utility district that is not located within the service territory of another public utility; (B) The commission shall not authorize the person or corporation to serve any customers outside of the boundaries of a municipality or consolidated utility district; (C) The commission shall not authorize the person or corporation to serve any customers that are otherwise served by, or located within, the service territory of another public utility; and (D) The commission shall not grant a certificate of public convenience and necessity under this subchapter to a person or corporation if doing so would result in an unreasonable impact on any other public utility or on the customers of any other electric utility in this state that is inconsistent with the public interest as determined by the commission. Amended by Act 2019, No. 543,§ 1, eff. 7/24/2019. Amended by Act 2015, No. 842,§ 1, eff. 3/31/2015. Acts 1935, No. 324, § 43; Pope's Dig., § 2106; A.S.A. 1947, § 73-242; Acts 1991, No. 812, § 1.

(a) As used in this section: (1) "Consolidated utility district" means a consolidated utility district as defined in § 14-217-103 that owns or operates an electric system as defined in § 14-217-103 ; and (2) "Municipality" means a municipality as defined in § 14-202-102 that: (A) Owns or operates a municipal electric utility as defined in § 25-20-402 ; or (B) Is an owner of an electric project as defined in § 25-20-402 .

(1) "Consolidated utility district" means a consolidated utility district as defined in § 14-217-103 that owns or operates an electric system as defined in § 14-217-103 ; and

(2) "Municipality" means a municipality as defined in § 14-202-102 that: (A) Owns or operates a municipal electric utility as defined in § 25-20-402 ; or (B) Is an owner of an electric project as defined in § 25-20-402 .

(A) Owns or operates a municipal electric utility as defined in § 25-20-402 ; or

(B) Is an owner of an electric project as defined in § 25-20-402 .

(b) (1) After conducting a hearing to assess the merits of an application for a certificate of public convenience and necessity under this subchapter, the Arkansas Public Service Commission may grant or deny all or part of the application upon any terms or conditions the commission finds appropriate to serve the purposes of this subchapter. (2) The right to a hearing under this section may be waived by the applicant.

(1) After conducting a hearing to assess the merits of an application for a certificate of public convenience and necessity under this subchapter, the Arkansas Public Service Commission may grant or deny all or part of the application upon any terms or conditions the commission finds appropriate to serve the purposes of this subchapter.

(2) The right to a hearing under this section may be waived by the applicant.

(c) (1) Except as provided under subdivision (c)(2) of this section, the commission shall not issue a certificate of public convenience and necessity to any person or corporation that: (A) Is not a public utility; (B) Primarily transmits electricity; and (C) Has not been directed or designated to construct an electric transmission facility from a regional transmission organization. (2) After the commission conducts a hearing under subdivision (b)(1) of this section for a person or corporation that primarily transmits electricity and has not been directed to construct an electric transmission facility from a regional transmission organization, the commission may grant or deny all or part of the application upon any terms or conditions the commission finds appropriate for the purposes of this subchapter subject to the following considerations: (A) The commission shall only authorize the person or corporation to contract with a municipality or a consolidated utility district that is not located within the service territory of another public utility; (B) The commission shall not authorize the person or corporation to serve any customers outside of the boundaries of a municipality or consolidated utility district; (C) The commission shall not authorize the person or corporation to serve any customers that are otherwise served by, or located within, the service territory of another public utility; and (D) The commission shall not grant a certificate of public convenience and necessity under this subchapter to a person or corporation if doing so would result in an unreasonable impact on any other public utility or on the customers of any other electric utility in this state that is inconsistent with the public interest as determined by the commission.

(1) Except as provided under subdivision (c)(2) of this section, the commission shall not issue a certificate of public convenience and necessity to any person or corporation that: (A) Is not a public utility; (B) Primarily transmits electricity; and (C) Has not been directed or designated to construct an electric transmission facility from a regional transmission organization.

(A) Is not a public utility;

(B) Primarily transmits electricity; and

(C) Has not been directed or designated to construct an electric transmission facility from a regional transmission organization.

(2) After the commission conducts a hearing under subdivision (b)(1) of this section for a person or corporation that primarily transmits electricity and has not been directed to construct an electric transmission facility from a regional transmission organization, the commission may grant or deny all or part of the application upon any terms or conditions the commission finds appropriate for the purposes of this subchapter subject to the following considerations: (A) The commission shall only authorize the person or corporation to contract with a municipality or a consolidated utility district that is not located within the service territory of another public utility; (B) The commission shall not authorize the person or corporation to serve any customers outside of the boundaries of a municipality or consolidated utility district; (C) The commission shall not authorize the person or corporation to serve any customers that are otherwise served by, or located within, the service territory of another public utility; and (D) The commission shall not grant a certificate of public convenience and necessity under this subchapter to a person or corporation if doing so would result in an unreasonable impact on any other public utility or on the customers of any other electric utility in this state that is inconsistent with the public interest as determined by the commission.

(A) The commission shall only authorize the person or corporation to contract with a municipality or a consolidated utility district that is not located within the service territory of another public utility;

(B) The commission shall not authorize the person or corporation to serve any customers outside of the boundaries of a municipality or consolidated utility district;

(C) The commission shall not authorize the person or corporation to serve any customers that are otherwise served by, or located within, the service territory of another public utility; and

(D) The commission shall not grant a certificate of public convenience and necessity under this subchapter to a person or corporation if doing so would result in an unreasonable impact on any other public utility or on the customers of any other electric utility in this state that is inconsistent with the public interest as determined by the commission.

Amended by Act 2019, No. 543,§ 1, eff. 7/24/2019.

Amended by Act 2015, No. 842,§ 1, eff. 3/31/2015.

Acts 1935, No. 324, § 43; Pope's Dig., § 2106; A.S.A. 1947, § 73-242; Acts 1991, No. 812, § 1.
Ark. Code Ann. § 23-2-430 — AR Code / Title 23 / Chapter 2 / Subchapter 4 / Section 23-2-430
Effect of repeal of section 23-2-404
Status: in_force

The repeal of § 23-2-404 by Acts 1997, No. 1311, shall not be construed as depriving or expanding the current authority of the Attorney General to represent and bring complaints on behalf of customers of utilities in Arkansas. Acts 1997, No. 1311, § 2.

The repeal of § 23-2-404 by Acts 1997, No. 1311, shall not be construed as depriving or expanding the current authority of the Attorney General to represent and bring complaints on behalf of customers of utilities in Arkansas.

Acts 1997, No. 1311, § 2.
Ark. Code Ann. § 23-47-704 — AR Code / Title 23 / Chapter 47 / Subchapter 7 / Section 23-47-704
Segregation of fiduciary and general assets - Separate books and records
Status: in_force

State banks exercising any or all of the powers enumerated in this subchapter shall segregate all assets held in its trust department from the general assets of the bank and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authority of this subchapter. Acts 1997, No. 89, § 1.

State banks exercising any or all of the powers enumerated in this subchapter shall segregate all assets held in its trust department from the general assets of the bank and shall keep a separate set of books and records showing in proper detail all transactions engaged in under authority of this subchapter.

Acts 1997, No. 89, § 1.
Ark. Code Ann. § 23-69-207 — AR Code / Title 23 / Chapter 69 / Subchapter 2 / Section 23-69-207
Equity securities held in an investment account
Status: in_force

(a) The provisions of § 23-69-205 shall not apply to any purchase and sale, or sale and purchase, and the provisions of § 23-69-206 shall not apply to any sale, of an equity security of a domestic stock insurance company not then or theretofore held by him or her in an investment account, by a dealer in the ordinary course of his or her business and incident to the establishment or maintenance by him or her of a primary or secondary market, otherwise than on an exchange as defined in the Securities Exchange Act of 1934 for such a security. (b) The Insurance Commissioner may, by such rules as he or she deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market. Amended by Act 2019, No. 315,§ 2689, eff. 7/24/2019. Acts 1965, No. 107, § 4; A.S.A. 1947, § 66-4261.

(a) The provisions of § 23-69-205 shall not apply to any purchase and sale, or sale and purchase, and the provisions of § 23-69-206 shall not apply to any sale, of an equity security of a domestic stock insurance company not then or theretofore held by him or her in an investment account, by a dealer in the ordinary course of his or her business and incident to the establishment or maintenance by him or her of a primary or secondary market, otherwise than on an exchange as defined in the Securities Exchange Act of 1934 for such a security.

(b) The Insurance Commissioner may, by such rules as he or she deems necessary or appropriate in the public interest, define and prescribe terms and conditions with respect to securities held in an investment account and transactions made in the ordinary course of business and incident to the establishment or maintenance of a primary or secondary market.

Amended by Act 2019, No. 315,§ 2689, eff. 7/24/2019.

Acts 1965, No. 107, § 4; A.S.A. 1947, § 66-4261.
Ark. Code Ann. § 23-79-2002 — AR Code / Title 23 / Chapter 79 / Subchapter 20 / Section 23-79-2002
Definitions
Status: in_force

As used in this subchapter: (1) (A) "Health benefit plan" means an individual, blanket, or group plan, policy, or contract for healthcare services issued or delivered by a healthcare payor in this state. (B) "Health benefit plan" does not include workers' compensation plans, Medicaid, or a plan that provides only dental benefits or eye and vision care benefits; (2) (A) "Healthcare payor" means an entity or individual that contracts, pays, or arranges for payment, in whole or in part, for the delivery of healthcare services or products that are covered by a health benefit plan administered, issued, or delivered by the entity or individual. (B) "Healthcare payor" includes a health insurance company, a health maintenance organization, a hospital and medical services corporation, and an entity that provides or administers a self-funded health benefit plan, including a governmental plan; (3) "Identification card" means a card or other technology that functions like a card issued by a healthcare payor to a subscriber or member and containing information related to the member's identity and health benefit plan; (4) "Member" means an individual enrolled or subscribed for healthcare services or products that are covered by a health benefit plan; and (5) "Short-term, limited duration insurance" means a health benefit plan that has an expiration date specified in the contract that is less than twelve (12) months after the original effective date of the contract and, taking into account renewals or extensions, has a duration of no longer than thirty-six (36) months. Amended by Act 2023, No. 500,§ 2, eff. 8/1/2023. Added by Act 2019, No. 706,§ 1, eff. 4/4/2019.

As used in this subchapter:

(1) (A) "Health benefit plan" means an individual, blanket, or group plan, policy, or contract for healthcare services issued or delivered by a healthcare payor in this state. (B) "Health benefit plan" does not include workers' compensation plans, Medicaid, or a plan that provides only dental benefits or eye and vision care benefits;

(A) "Health benefit plan" means an individual, blanket, or group plan, policy, or contract for healthcare services issued or delivered by a healthcare payor in this state.

(B) "Health benefit plan" does not include workers' compensation plans, Medicaid, or a plan that provides only dental benefits or eye and vision care benefits;

(2) (A) "Healthcare payor" means an entity or individual that contracts, pays, or arranges for payment, in whole or in part, for the delivery of healthcare services or products that are covered by a health benefit plan administered, issued, or delivered by the entity or individual. (B) "Healthcare payor" includes a health insurance company, a health maintenance organization, a hospital and medical services corporation, and an entity that provides or administers a self-funded health benefit plan, including a governmental plan;

(A) "Healthcare payor" means an entity or individual that contracts, pays, or arranges for payment, in whole or in part, for the delivery of healthcare services or products that are covered by a health benefit plan administered, issued, or delivered by the entity or individual.

(B) "Healthcare payor" includes a health insurance company, a health maintenance organization, a hospital and medical services corporation, and an entity that provides or administers a self-funded health benefit plan, including a governmental plan;

(3) "Identification card" means a card or other technology that functions like a card issued by a healthcare payor to a subscriber or member and containing information related to the member's identity and health benefit plan;

(4) "Member" means an individual enrolled or subscribed for healthcare services or products that are covered by a health benefit plan; and

(5) "Short-term, limited duration insurance" means a health benefit plan that has an expiration date specified in the contract that is less than twelve (12) months after the original effective date of the contract and, taking into account renewals or extensions, has a duration of no longer than thirty-six (36) months.

Amended by Act 2023, No. 500,§ 2, eff. 8/1/2023.

Added by Act 2019, No. 706,§ 1, eff. 4/4/2019.
Ark. Code Ann. § 23-35-306 — AR Code / Title 23 / Chapter 35 / Subchapter 3 / Section 23-35-306
Credit committee - Loan officers
Status: in_force

(a) (1) The credit committee of the credit union shall be responsible for general supervision of all loans to members. (2) The credit committee shall not be composed of any person who is a member of the board of directors of the credit union or of the supervisory committee. (3) It shall be the duty of the credit committee to review all applications for loans, to ascertain whether the loans would be for a provident and productive purpose and would benefit the applicant, to determine whether the security offered is sufficient, and to determine whether the terms of the application are proper. (4) The credit committee shall meet as often as may be required, after due notice has been given to each member thereof, but not less than once a month. The credit committee shall keep a record of all meetings and shall make a report to the members at the annual meeting. (b) (1) The credit committee may appoint one (1) or more loan officers to act under the supervision of the credit committee, and these loan officers may make loans without the necessity for a meeting of, or approval by, any members of the credit committee. (2) No more than one (1) member of the credit committee may serve in the position of loan officer. (3) No individual shall have authority to disburse funds of the credit union for any loan which has been approved by him or her in his or her capacity as loan officer. (4) Each loan officer shall, within ten (10) days of the filing of each loan application received by him or her from another member or by referral from another officer, furnish to the credit committee a full report of the application. (c) All applications for loans not approved by a loan officer shall be considered and acted upon by the credit committee. Acts 1971, No. 132, § 15; 1975, No. 530, § 12; 1985, No. 936, § 7; A.S.A. 1947, § 67-915.

(a) (1) The credit committee of the credit union shall be responsible for general supervision of all loans to members. (2) The credit committee shall not be composed of any person who is a member of the board of directors of the credit union or of the supervisory committee. (3) It shall be the duty of the credit committee to review all applications for loans, to ascertain whether the loans would be for a provident and productive purpose and would benefit the applicant, to determine whether the security offered is sufficient, and to determine whether the terms of the application are proper. (4) The credit committee shall meet as often as may be required, after due notice has been given to each member thereof, but not less than once a month. The credit committee shall keep a record of all meetings and shall make a report to the members at the annual meeting.

(1) The credit committee of the credit union shall be responsible for general supervision of all loans to members.

(2) The credit committee shall not be composed of any person who is a member of the board of directors of the credit union or of the supervisory committee.

(3) It shall be the duty of the credit committee to review all applications for loans, to ascertain whether the loans would be for a provident and productive purpose and would benefit the applicant, to determine whether the security offered is sufficient, and to determine whether the terms of the application are proper.

(4) The credit committee shall meet as often as may be required, after due notice has been given to each member thereof, but not less than once a month. The credit committee shall keep a record of all meetings and shall make a report to the members at the annual meeting.

(b) (1) The credit committee may appoint one (1) or more loan officers to act under the supervision of the credit committee, and these loan officers may make loans without the necessity for a meeting of, or approval by, any members of the credit committee. (2) No more than one (1) member of the credit committee may serve in the position of loan officer. (3) No individual shall have authority to disburse funds of the credit union for any loan which has been approved by him or her in his or her capacity as loan officer. (4) Each loan officer shall, within ten (10) days of the filing of each loan application received by him or her from another member or by referral from another officer, furnish to the credit committee a full report of the application.

(1) The credit committee may appoint one (1) or more loan officers to act under the supervision of the credit committee, and these loan officers may make loans without the necessity for a meeting of, or approval by, any members of the credit committee.

(2) No more than one (1) member of the credit committee may serve in the position of loan officer.

(3) No individual shall have authority to disburse funds of the credit union for any loan which has been approved by him or her in his or her capacity as loan officer.

(4) Each loan officer shall, within ten (10) days of the filing of each loan application received by him or her from another member or by referral from another officer, furnish to the credit committee a full report of the application.

(c) All applications for loans not approved by a loan officer shall be considered and acted upon by the credit committee.

Acts 1971, No. 132, § 15; 1975, No. 530, § 12; 1985, No. 936, § 7; A.S.A. 1947, § 67-915.
Ark. Code Ann. § 23-10-440 — AR Code / Title 23 / Chapter 10 / Subchapter 4 / Section 23-10-440
Forwarding perishable freight - Penalty for failure
Status: in_force

(a) (1) Whenever freight of a character similar to that described in § 23-10-438 is tendered to a railroad company in carload lots or less, and the correct shipping instruction is given, the railroad agent must immediately receive the freight for shipment and issue bills of lading for it. (2) When such shipments have been received by any railroad company, they shall be started on the first suitable train within twelve (12) hours and shall be carried forward at a rate of not less than two hundred (200) miles per day of twenty-four (24) hours. (b) Any railroad company failing to comply with this section shall forfeit to the shipper double the damages he or she may sustain by reason of the failure. (c) In cases of wrecks, washouts, strikes, and other calamities over which railroad companies have no control, this section shall not apply, but the burden shall be on the railroad company to prove the existence of any such facts to justify such a failure. Acts 1909, No. 233, § 3, p. 698; C. & M. Dig., § 933; Pope's Dig., § 1137; A.S.A. 1947, § 73-1333.

(a) (1) Whenever freight of a character similar to that described in § 23-10-438 is tendered to a railroad company in carload lots or less, and the correct shipping instruction is given, the railroad agent must immediately receive the freight for shipment and issue bills of lading for it. (2) When such shipments have been received by any railroad company, they shall be started on the first suitable train within twelve (12) hours and shall be carried forward at a rate of not less than two hundred (200) miles per day of twenty-four (24) hours.

(1) Whenever freight of a character similar to that described in § 23-10-438 is tendered to a railroad company in carload lots or less, and the correct shipping instruction is given, the railroad agent must immediately receive the freight for shipment and issue bills of lading for it.

(2) When such shipments have been received by any railroad company, they shall be started on the first suitable train within twelve (12) hours and shall be carried forward at a rate of not less than two hundred (200) miles per day of twenty-four (24) hours.

(b) Any railroad company failing to comply with this section shall forfeit to the shipper double the damages he or she may sustain by reason of the failure.

(c) In cases of wrecks, washouts, strikes, and other calamities over which railroad companies have no control, this section shall not apply, but the burden shall be on the railroad company to prove the existence of any such facts to justify such a failure.

Acts 1909, No. 233, § 3, p. 698; C. & M. Dig., § 933; Pope's Dig., § 1137; A.S.A. 1947, § 73-1333.
Ark. Code Ann. § 23-4-709 — AR Code / Title 23 / Chapter 4 / Subchapter 7 / Section 23-4-709
Ratemaking procedure
Status: in_force

(a) It shall be the duty of the Arkansas Department of Transportation to: (1) Examine and revise the rate sheet and tariff charges for freight or express matter for each railroad in this state; (2) Determine whether or not, and in what manner, if any, the charges and rates are more than just and reasonable compensation for the services rendered; and (3) Determine whether or not and in what manner, if any, such charges and rates are in violation of any of the provisions of this act. (b) The department: (1) Will make reasonable and just rates of freight, express, and passenger tariffs to be observed by all persons and corporations operating any railroad or engaged in transporting persons or property as express or freight in this state; (2) Shall make rules as to charges at any and all points for the necessary hauling and delivering of express and freight; and (3) Will regulate rates and charges for such services on all railroads as, in their judgment, justice to the public and the person or corporation requires and by rule make the rates and charges conform to the requirements of this act. (c) The department, in making such rules and regulations, shall first give the person or corporation to be affected notice to appear and show cause, if it can, why no change should be made in the rates then in force and shall take into consideration the character and nature of the service to be performed, the entire earnings of any railroad or express company, the expense of operating the railroad or express company, and the income and value thereof. (d) When any tariff of charges is corrected and approved, the department shall append a certificate of its approval to the tariff of charges and give notice thereof to any officer or agent of the railroad or express company to be affected thereby. The tariff of charges shall be kept posted for at least five (5) days before the tariff and charges shall go into effect. (e) The department shall not alter or change any tariff of charges so approved by it except upon ten (10) days' notice in writing to the person or corporation operating the express company or railroad to be affected by the change, giving the person or corporation an opportunity to be heard. The notice is to be given by delivering a copy thereof to any officer or agent of the person or corporation. Amended by Act 2019, No. 315,§ 2396, eff. 7/24/2019. Amended by Act 2017, No. 707,§ 137, eff. 8/1/2017. Acts 1899, No. 53, § 9, p. 82; C. & M. Dig., § 1627; Pope's Dig., § 1949; A.S.A. 1947, § 73-1513.

(a) It shall be the duty of the Arkansas Department of Transportation to: (1) Examine and revise the rate sheet and tariff charges for freight or express matter for each railroad in this state; (2) Determine whether or not, and in what manner, if any, the charges and rates are more than just and reasonable compensation for the services rendered; and (3) Determine whether or not and in what manner, if any, such charges and rates are in violation of any of the provisions of this act.

(1) Examine and revise the rate sheet and tariff charges for freight or express matter for each railroad in this state;

(2) Determine whether or not, and in what manner, if any, the charges and rates are more than just and reasonable compensation for the services rendered; and

(3) Determine whether or not and in what manner, if any, such charges and rates are in violation of any of the provisions of this act.

(b) The department: (1) Will make reasonable and just rates of freight, express, and passenger tariffs to be observed by all persons and corporations operating any railroad or engaged in transporting persons or property as express or freight in this state; (2) Shall make rules as to charges at any and all points for the necessary hauling and delivering of express and freight; and (3) Will regulate rates and charges for such services on all railroads as, in their judgment, justice to the public and the person or corporation requires and by rule make the rates and charges conform to the requirements of this act.

(1) Will make reasonable and just rates of freight, express, and passenger tariffs to be observed by all persons and corporations operating any railroad or engaged in transporting persons or property as express or freight in this state;

(2) Shall make rules as to charges at any and all points for the necessary hauling and delivering of express and freight; and

(3) Will regulate rates and charges for such services on all railroads as, in their judgment, justice to the public and the person or corporation requires and by rule make the rates and charges conform to the requirements of this act.

(c) The department, in making such rules and regulations, shall first give the person or corporation to be affected notice to appear and show cause, if it can, why no change should be made in the rates then in force and shall take into consideration the character and nature of the service to be performed, the entire earnings of any railroad or express company, the expense of operating the railroad or express company, and the income and value thereof.

(d) When any tariff of charges is corrected and approved, the department shall append a certificate of its approval to the tariff of charges and give notice thereof to any officer or agent of the railroad or express company to be affected thereby. The tariff of charges shall be kept posted for at least five (5) days before the tariff and charges shall go into effect.

(e) The department shall not alter or change any tariff of charges so approved by it except upon ten (10) days' notice in writing to the person or corporation operating the express company or railroad to be affected by the change, giving the person or corporation an opportunity to be heard. The notice is to be given by delivering a copy thereof to any officer or agent of the person or corporation.

Amended by Act 2019, No. 315,§ 2396, eff. 7/24/2019.

Amended by Act 2017, No. 707,§ 137, eff. 8/1/2017.

Acts 1899, No. 53, § 9, p. 82; C. & M. Dig., § 1627; Pope's Dig., § 1949; A.S.A. 1947, § 73-1513.