Ark. Code Ann. § 23-111-104 — AR Code / Title 23 / Chapter 111 / Subchapter 1 / Section 23-111-104
Disposition of funds
Status: in_force

(a) All franchise or license fees, excise or privilege taxes, penalties, fines, costs, and other amounts received by the Arkansas Racing Commission under the provisions of this chapter shall be general revenues and shall be deposited into the State Treasury to the credit of the State Apportionment Fund. (b) The Treasurer of State shall allocate and transfer the money to the various State Treasury funds participating in general revenues in the respective proportions to each as provided by, and to be used for the respective purposes set forth in, the Revenue Stabilization Law, § 19-5-101 et seq. (c) (1) However, any increase in the amount designated by the commission for licensing fees after January 1, 2017, shall be returned to and deposited into a cash fund of the Racing Division. (2) With the approval of the commission, funds deposited into the cash fund under subdivision (c)(1) of this section shall be used to pay for drug testing or other expenses related to the regulation of dog racing in Arkansas. Amended by Act 2017, No. 425,§ 3, eff. 8/1/2017. Acts 1957, No. 191, § 27; A.S.A. 1947, § 84-2842.

(a) All franchise or license fees, excise or privilege taxes, penalties, fines, costs, and other amounts received by the Arkansas Racing Commission under the provisions of this chapter shall be general revenues and shall be deposited into the State Treasury to the credit of the State Apportionment Fund.

(b) The Treasurer of State shall allocate and transfer the money to the various State Treasury funds participating in general revenues in the respective proportions to each as provided by, and to be used for the respective purposes set forth in, the Revenue Stabilization Law, § 19-5-101 et seq.

(c) (1) However, any increase in the amount designated by the commission for licensing fees after January 1, 2017, shall be returned to and deposited into a cash fund of the Racing Division. (2) With the approval of the commission, funds deposited into the cash fund under subdivision (c)(1) of this section shall be used to pay for drug testing or other expenses related to the regulation of dog racing in Arkansas.

(1) However, any increase in the amount designated by the commission for licensing fees after January 1, 2017, shall be returned to and deposited into a cash fund of the Racing Division.

(2) With the approval of the commission, funds deposited into the cash fund under subdivision (c)(1) of this section shall be used to pay for drug testing or other expenses related to the regulation of dog racing in Arkansas.

Amended by Act 2017, No. 425,§ 3, eff. 8/1/2017.

Acts 1957, No. 191, § 27; A.S.A. 1947, § 84-2842.
Ark. Code Ann. § 23-17-403 — AR Code / Title 23 / Chapter 17 / Subchapter 4 / Section 23-17-403
Definitions
Status: in_force

As used in this subchapter: (1) "Access line" means a communications facility extending from a customer's premises to a serving central office comprising a subscriber line and, if necessary, a trunk facility; (2) "Access minute", unless otherwise defined by the Arkansas Public Service Commission, means the measurement of usage to provision communications between: (A) A customer premises and an interexchange carrier's point of interconnection with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination and termination of interexchange long distance traffic; and (B) A customer premises and another LEC's point of termination with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination and termination of interexchange long distance traffic; (3) (A) "Affiliate" means any entity that, directly or indirectly, owns or controls, is owned or controlled by, or that is under common ownership or control with another entity. (B) For the purpose of this definition, "owns or controls" means holding at least a majority of the outstanding voting power; (4) "AICCLP member" means an ILEC that is eligible to be a member of the AICCLP after December 31, 2003, and that has not terminated its membership under § 23-17-416(f)(2) ; (5) (A) "AICCLP rate adjustment" means the local service rate adjustment, determined by the AICCLP administrator, that may be charged by each AICCLP member to its customers to recover a portion of its carrier common line net revenue requirement. (B) (i) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of the residential local exchange rate and extended area service additive is higher than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of fifty cents (50¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line. (ii) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of its residential local exchange rate and extended area service additive is lower than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of seventy-five cents (75¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line. (iii) If the amount due to an AICCLP member under § 23-17-416(h) is limited due to the annual one million three hundred thousand dollar ($1,300,000) cap under § 23-17-416(e)(8)(B)(i) and if the member's AICCLP rate adjustment and the amount due to the AICCLP member under § 23-17-416(h) do not allow the member to recover its common line net revenue requirement, the member may charge an additional amount for local rates to recover its carrier common line net revenue requirement; (6) "Annual unseparated unlimited loop requirement" means a financial algorithm calculated annually by NECA and USAC that includes all the loop investment, expenses, and other loop costs of providing service within the study area of an eligible telecommunications carrier; (7) "Arkansas Intrastate Carrier Common Line Pool" or "AICCLP" means the unincorporated organization of the providers of Arkansas telecommunications services, authorized by the commission and by state law, whose purpose is to manage billing, collection, and distribution of the carrier common line revenue requirements; (8) "Arkansas intrastate telecommunications services revenues" means the revenues of all carriers that are not ILECs, that are derived from end-users for telecommunications within Arkansas and telecommunications services provided within Arkansas, including messages that are switched or otherwise temporarily transported outside of Arkansas in the process of delivering the message within Arkansas; (9) "Average schedule company" means a company that uses a proxy established from a formula using the average costs of a group of companies rather than using the company's specific costs in reporting to NECA; (10) "Basic local exchange service" means the service provided to the premises of residential or business customers composed of the following: (A) Voice-grade access to the public switched network, with ability to place and receive calls; (B) Touch-tone service availability; (C) Flat-rate residential local service and business local service; (D) Access to emergency services (911/E911) where provided by local authorities; (E) Access to basic operator services; (F) A standard white-page directory listing; (G) Access to basic local directory assistance; (H) Access to long distance toll service providers; and (I) The minimum service quality as established and required by the commission on February 4, 1997; (11) "Carrier common line net revenue requirement" means the monthly variable funding requirement of an AICCLP member, which is calculated as the sum of the member's intrastate carrier common line revenue requirement, the member's terminating carrier common line expense based on its per-minute terminations on other ILECs, the member's Arkansas Calling Plan Fund and Extension of Telecommunications Facilities Fund expense, and the member's share of AICCLP administrative fees, minus the sum of the carrier common line revenue, based on per-minute terminations received from other ILECs, carrier common line revenue received from underlying carriers for originating and terminating access minutes, the AICCLP rate adjustment, and the fixed ILEC retail billed minutes of use expense based on the data development period determination of average monthly retail billed minutes of use expense of the member; (12) "Commercial mobile service" means cellular, personal communications systems and any service regulated pursuant to Part 20 of the rules and regulations of the Federal Communications Commission, 47 C.F.R. Part 20, or any successor provisions; (13) "Commission" means the Arkansas Public Service Commission; (14) "Competing local exchange carrier" or "CLEC" means a local exchange carrier that is not an incumbent local exchange carrier; (15) "Data development period" means the time period in which the AICCLP members and initial exiting ILECs shall obtain relevant data necessary to: (A) Calculate the fixed amounts of retail billed minutes-of-use expense and to test and obtain reliability of the billing and reporting systems to be used by the AICCLP; and (B) Calculate the fixed carrier common line revenue shortfall for members required to exit the pool on December 31, 2003; (16) "Electing company" means a local exchange carrier that elects to be regulated pursuant to §§ 23-17-406 - 23-17-408 ; (17) "Eligible telecommunications carrier" or "ETC" means the local exchange carrier determined in accordance with § 23-17-405 ; (18) "Embedded investment" means the amount of investment in a telephone plant that has already been made by an incumbent local exchange carrier as of February 4, 1997; (19) "Exiting ILEC" means an ILEC that terminates its membership in the AICCLP under § 23-17-416(f) ; (20) "Extended area service" means an unlimited local service provided to the customer at a fixed rate that: (A) Is mandated by the commission at the election of customers within a local exchange area; (B) Provides one-way or two-way calling between basic local exchange service customers within the local exchange area of one (1) or more incumbent local exchange carriers; and (C) Is not included as part of basic local exchange service; (21) "Facilities" means any of the physical elements of the telephone plant that are needed to provide or support telecommunications services, including switching systems, cables, fiber optic and microwave radio transmission systems, measuring equipment, billing equipment, operating systems, billing systems, ordering systems, and all other equipment and systems that a telecommunications service provider uses to provide or support telecommunications services; (22) "FCC" means the Federal Communications Commission; (23) "Federal act" means the Communications Act of 1934, as amended; (24) "Fixed carrier common line revenue shortfall" means the total annual funding requirement of an ILEC that must exit the AICCLP under § 23-17-416(f)(1) , which is calculated as the sum of an ILEC's intrastate carrier common line revenue requirement, the ILEC's terminating carrier common line expense based on its per-minute terminations on other ILECs, and the ILEC Arkansas Calling Plan Fund and Extension of Telecommunications Facilities Fund expense, minus the sum of the carrier common line revenue, based on per-minute terminations received from other ILECs, carrier common line revenue received from underlying carriers for originating and terminating access minutes, and the fixed ILEC retail billed minutes of use expense based on the data development period determination of average monthly retail billed minutes of use expense of the ILEC; (25) "Fixed ILEC retail billed minutes of use expense" means the fixed determination of the average retail billed minutes-of-use expense paid to the AICCLP by the ILEC based upon the ILEC's three-month average retail billed minutes-of-use expense during its applicable data development period, as determined under § 23-17-416(h) , exclusive of any retail billed minutes-of-use expense associated with retail billed minutes of uses provided by a toll reseller of an underlying carrier that is an ILEC; (26) "Government entity" includes without limitation all Arkansas state agencies, commissions, boards, authorities, and all Arkansas public educational entities, including school districts, and political subdivisions, including incorporated and unincorporated cities and towns and all institutions, agencies or instrumentalities of municipalities, consolidated utility districts, and county governments; (27) "ILEC Arkansas Calling Plan Fund and Extension of Telecommunications Facilities Fund expense" means the charge assessed against an ILEC in proportion to the AICCLP credits that were eliminated by former § 23-17-404(e)(4)(D)(iv) (b) ; (28) "ILEC intrastate carrier common line revenue requirement" means the fixed annual payment that each ILEC was entitled to receive from the AICCLP, before any offsets or adjustments, as provided in the Arkansas Intrastate Carrier Common Line Pool tariff, as it existed before January 1, 2004; (29) "Incumbent local exchange carrier" or "ILEC" means, with respect to a local exchange area, a local exchange carrier, including successors and assigns, that is certified by the commission and was providing basic local exchange service on February 8, 1996; (30) "Interconnected VoIP service" has the meaning defined by 47 C.F.R. 9.3 , as it existed on January 1, 2013; (31) "Interstate access charge pools" means the system, currently administered by the National Exchange Carrier Association, Inc., wherein participating local exchange carriers pool billed interstate access revenues; (32) "Local exchange area" means the geographic area, approved by the commission, encompassing the area within which a local exchange carrier is authorized to provide basic local exchange services and switched-access services; (33) "Local exchange carrier" or "LEC" means a telecommunications provider of basic local exchange service and switched-access service. The term does not include commercial mobile service providers; (34) "Local switching support" means funding to assist high-cost companies in recovering the costs of switching intrastate calls; (35) "National Exchange Carrier Association, Inc.," or "NECA" means a corporation by that name or its successor that performs various administrative functions and procedural duties prescribed to it by the FCC and others; (36) "Network element" means a facility or equipment used in the provision of a telecommunications service. The term also includes features, functions, and capabilities that are provided by means of the facility or equipment, including subscriber numbers, databases, signaling systems, and information sufficient for billing and collection or used in the transmission, routing, or other provision of a telecommunications service; (37) "Resale" means the purchase of services by one (1) local exchange carrier from another local exchange carrier for the purpose of reselling those services directly or indirectly to an end-user customer; (38) "Rural telephone company" means a local exchange carrier defined as a rural telephone company in the federal act as of February 4, 1997; (39) "Special intrastate ILEC revenue" means the revenue a toll reseller pays to an ILEC when the ILEC provides toll services to the toll reseller; (40) "Study area" means a geographic area designated by the FCC and used by NECA or USAC for calculation of cost per loop within the geographic area's boundaries for federal high-cost loop support; (41) "Switched-access service" means the provision of communications between a customer premise and an interexchange carrier's point of interconnection with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination or termination of interexchange long distance traffic; (42) "Telecommunications provider" means any person, firm, partnership, corporation, association, or other entity that offers telecommunications services to the public for compensation; (43) "Telecommunications Providers Rules" or "TPRs" means those rules applicable to telecommunications providers that have been adopted by the commission; (44) (A) "Telecommunications services" means the offering to the public for compensation the transmission of voice, data, or other electronic information at any frequency over any part of the electromagnetic spectrum, notwithstanding any other use of the associated facilities. (B) The term does not include radio and television broadcast or distribution services, or the provision or publishing of yellow pages, regardless of the entity providing the services, or services to the extent that the services are used in connection with the operation of an electric utility system owned by a government entity; (45) (A) "Tier one company" means any incumbent local exchange carrier that, together with its Arkansas affiliates that are also incumbent local exchange carriers, provides basic local exchange services to greater than one hundred fifty thousand (150,000) access lines in the State of Arkansas on February 4, 1997. (B) Changes in designation of an incumbent local exchange carrier, or portions thereof, as a tier one company or non-tier one company may be effected by prior approval from the commission pursuant to § 23-17-411(i) ; (46) "Toll reseller" means a carrier that resells intrastate telecommunications services that are provided to the carrier by an underlying carrier; (47) (A) "Total customer access base" means the total of all eligible telecommunications carrier customer access lines within Arkansas of an entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with another entity. (B) For the purposes of subdivision (47)(A) of this section, "own" means to own an equity interest or the equivalent thereof of more than ten percent (10%); (48) "Underlying carrier" means a facilities-based CLEC or an interexchange carrier, other than an ILEC, that originates and terminates intrastate interexchange calls on the public switched network directly or through resale to a toll reseller or an ILEC that provides the toll services used by a toll reseller; (49) "Universal service" means those telecommunications services that are defined and listed in the definition of basic local exchange service until changed by the commission pursuant to § 23-17-404(e)(2)(A) ; (50) "Universal Service Administration Company" or "USAC" means a corporation under that name or its successor that performs various administrative and procedural duties prescribed to it by the FCC and others; (51) "Wire center" means the location of one (1) or more local switching systems, a point at which end user's loops within a defined geographic area converge; (52) "Wireless ETC" means a wireless eligible telecommunications carrier that is a commercial mobile service provider; and (53) "Wireline ETC" means a wireline eligible telecommunications carrier that is a local exchange carrier. Amended by Act 2021, No. 67,§ 1, eff. 2/4/2021. Amended by Act 2019, No. 198,§ 2, eff. 2/26/2019. Amended by Act 2013, No. 442,§ 5, eff. 3/19/2013. Amended by Act 2013, No. 442,§ 4, eff. 3/19/2013. Amended by Act 2013, No. 442,§ 3, eff. 3/19/2013. Amended by Act 2013, No. 442,§ 2, eff. 3/19/2013. Acts 1997, No. 77, § 3; 2003, No. 1764, § 1; 2003, No. 1788, §§ 1-6; 2007, No. 385, §§ 2, 3.

As used in this subchapter:

(1) "Access line" means a communications facility extending from a customer's premises to a serving central office comprising a subscriber line and, if necessary, a trunk facility;

(2) "Access minute", unless otherwise defined by the Arkansas Public Service Commission, means the measurement of usage to provision communications between: (A) A customer premises and an interexchange carrier's point of interconnection with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination and termination of interexchange long distance traffic; and (B) A customer premises and another LEC's point of termination with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination and termination of interexchange long distance traffic;

(A) A customer premises and an interexchange carrier's point of interconnection with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination and termination of interexchange long distance traffic; and

(B) A customer premises and another LEC's point of termination with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination and termination of interexchange long distance traffic;

(3) (A) "Affiliate" means any entity that, directly or indirectly, owns or controls, is owned or controlled by, or that is under common ownership or control with another entity. (B) For the purpose of this definition, "owns or controls" means holding at least a majority of the outstanding voting power;

(A) "Affiliate" means any entity that, directly or indirectly, owns or controls, is owned or controlled by, or that is under common ownership or control with another entity.

(B) For the purpose of this definition, "owns or controls" means holding at least a majority of the outstanding voting power;

(4) "AICCLP member" means an ILEC that is eligible to be a member of the AICCLP after December 31, 2003, and that has not terminated its membership under § 23-17-416(f)(2) ;

(5) (A) "AICCLP rate adjustment" means the local service rate adjustment, determined by the AICCLP administrator, that may be charged by each AICCLP member to its customers to recover a portion of its carrier common line net revenue requirement. (B) (i) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of the residential local exchange rate and extended area service additive is higher than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of fifty cents (50¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line. (ii) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of its residential local exchange rate and extended area service additive is lower than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of seventy-five cents (75¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line. (iii) If the amount due to an AICCLP member under § 23-17-416(h) is limited due to the annual one million three hundred thousand dollar ($1,300,000) cap under § 23-17-416(e)(8)(B)(i) and if the member's AICCLP rate adjustment and the amount due to the AICCLP member under § 23-17-416(h) do not allow the member to recover its common line net revenue requirement, the member may charge an additional amount for local rates to recover its carrier common line net revenue requirement;

(A) "AICCLP rate adjustment" means the local service rate adjustment, determined by the AICCLP administrator, that may be charged by each AICCLP member to its customers to recover a portion of its carrier common line net revenue requirement.

(B) (i) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of the residential local exchange rate and extended area service additive is higher than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of fifty cents (50¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line. (ii) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of its residential local exchange rate and extended area service additive is lower than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of seventy-five cents (75¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line. (iii) If the amount due to an AICCLP member under § 23-17-416(h) is limited due to the annual one million three hundred thousand dollar ($1,300,000) cap under § 23-17-416(e)(8)(B)(i) and if the member's AICCLP rate adjustment and the amount due to the AICCLP member under § 23-17-416(h) do not allow the member to recover its common line net revenue requirement, the member may charge an additional amount for local rates to recover its carrier common line net revenue requirement;

(i) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of the residential local exchange rate and extended area service additive is higher than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of fifty cents (50¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line.

(ii) For any AICCLP member that is eligible to be a member of the AICCLP as of January 1, 2004, for whom the sum of its residential local exchange rate and extended area service additive is lower than the average residential local exchange rate for all members eligible to be members as of January 1, 2004, the monthly AICCLP rate adjustment shall be the lesser of seventy-five cents (75¢) or an amount that yields the total monthly carrier common line net revenue requirement per access line.

(iii) If the amount due to an AICCLP member under § 23-17-416(h) is limited due to the annual one million three hundred thousand dollar ($1,300,000) cap under § 23-17-416(e)(8)(B)(i) and if the member's AICCLP rate adjustment and the amount due to the AICCLP member under § 23-17-416(h) do not allow the member to recover its common line net revenue requirement, the member may charge an additional amount for local rates to recover its carrier common line net revenue requirement;

(6) "Annual unseparated unlimited loop requirement" means a financial algorithm calculated annually by NECA and USAC that includes all the loop investment, expenses, and other loop costs of providing service within the study area of an eligible telecommunications carrier;

(7) "Arkansas Intrastate Carrier Common Line Pool" or "AICCLP" means the unincorporated organization of the providers of Arkansas telecommunications services, authorized by the commission and by state law, whose purpose is to manage billing, collection, and distribution of the carrier common line revenue requirements;

(8) "Arkansas intrastate telecommunications services revenues" means the revenues of all carriers that are not ILECs, that are derived from end-users for telecommunications within Arkansas and telecommunications services provided within Arkansas, including messages that are switched or otherwise temporarily transported outside of Arkansas in the process of delivering the message within Arkansas;

(9) "Average schedule company" means a company that uses a proxy established from a formula using the average costs of a group of companies rather than using the company's specific costs in reporting to NECA;

(10) "Basic local exchange service" means the service provided to the premises of residential or business customers composed of the following: (A) Voice-grade access to the public switched network, with ability to place and receive calls; (B) Touch-tone service availability; (C) Flat-rate residential local service and business local service; (D) Access to emergency services (911/E911) where provided by local authorities; (E) Access to basic operator services; (F) A standard white-page directory listing; (G) Access to basic local directory assistance; (H) Access to long distance toll service providers; and (I) The minimum service quality as established and required by the commission on February 4, 1997;

(A) Voice-grade access to the public switched network, with ability to place and receive calls;

(B) Touch-tone service availability;

(C) Flat-rate residential local service and business local service;

(D) Access to emergency services (911/E911) where provided by local authorities;

(E) Access to basic operator services;

(F) A standard white-page directory listing;

(G) Access to basic local directory assistance;

(H) Access to long distance toll service providers; and

(I) The minimum service quality as established and required by the commission on February 4, 1997;

(11) "Carrier common line net revenue requirement" means the monthly variable funding requirement of an AICCLP member, which is calculated as the sum of the member's intrastate carrier common line revenue requirement, the member's terminating carrier common line expense based on its per-minute terminations on other ILECs, the member's Arkansas Calling Plan Fund and Extension of Telecommunications Facilities Fund expense, and the member's share of AICCLP administrative fees, minus the sum of the carrier common line revenue, based on per-minute terminations received from other ILECs, carrier common line revenue received from underlying carriers for originating and terminating access minutes, the AICCLP rate adjustment, and the fixed ILEC retail billed minutes of use expense based on the data development period determination of average monthly retail billed minutes of use expense of the member;

(12) "Commercial mobile service" means cellular, personal communications systems and any service regulated pursuant to Part 20 of the rules and regulations of the Federal Communications Commission, 47 C.F.R. Part 20, or any successor provisions;

(13) "Commission" means the Arkansas Public Service Commission;

(14) "Competing local exchange carrier" or "CLEC" means a local exchange carrier that is not an incumbent local exchange carrier;

(15) "Data development period" means the time period in which the AICCLP members and initial exiting ILECs shall obtain relevant data necessary to: (A) Calculate the fixed amounts of retail billed minutes-of-use expense and to test and obtain reliability of the billing and reporting systems to be used by the AICCLP; and (B) Calculate the fixed carrier common line revenue shortfall for members required to exit the pool on December 31, 2003;

(A) Calculate the fixed amounts of retail billed minutes-of-use expense and to test and obtain reliability of the billing and reporting systems to be used by the AICCLP; and

(B) Calculate the fixed carrier common line revenue shortfall for members required to exit the pool on December 31, 2003;

(16) "Electing company" means a local exchange carrier that elects to be regulated pursuant to §§ 23-17-406 - 23-17-408 ;

(17) "Eligible telecommunications carrier" or "ETC" means the local exchange carrier determined in accordance with § 23-17-405 ;

(18) "Embedded investment" means the amount of investment in a telephone plant that has already been made by an incumbent local exchange carrier as of February 4, 1997;

(19) "Exiting ILEC" means an ILEC that terminates its membership in the AICCLP under § 23-17-416(f) ;

(20) "Extended area service" means an unlimited local service provided to the customer at a fixed rate that: (A) Is mandated by the commission at the election of customers within a local exchange area; (B) Provides one-way or two-way calling between basic local exchange service customers within the local exchange area of one (1) or more incumbent local exchange carriers; and (C) Is not included as part of basic local exchange service;

(A) Is mandated by the commission at the election of customers within a local exchange area;

(B) Provides one-way or two-way calling between basic local exchange service customers within the local exchange area of one (1) or more incumbent local exchange carriers; and

(C) Is not included as part of basic local exchange service;

(21) "Facilities" means any of the physical elements of the telephone plant that are needed to provide or support telecommunications services, including switching systems, cables, fiber optic and microwave radio transmission systems, measuring equipment, billing equipment, operating systems, billing systems, ordering systems, and all other equipment and systems that a telecommunications service provider uses to provide or support telecommunications services;

(22) "FCC" means the Federal Communications Commission;

(23) "Federal act" means the Communications Act of 1934, as amended;

(24) "Fixed carrier common line revenue shortfall" means the total annual funding requirement of an ILEC that must exit the AICCLP under § 23-17-416(f)(1) , which is calculated as the sum of an ILEC's intrastate carrier common line revenue requirement, the ILEC's terminating carrier common line expense based on its per-minute terminations on other ILECs, and the ILEC Arkansas Calling Plan Fund and Extension of Telecommunications Facilities Fund expense, minus the sum of the carrier common line revenue, based on per-minute terminations received from other ILECs, carrier common line revenue received from underlying carriers for originating and terminating access minutes, and the fixed ILEC retail billed minutes of use expense based on the data development period determination of average monthly retail billed minutes of use expense of the ILEC;

(25) "Fixed ILEC retail billed minutes of use expense" means the fixed determination of the average retail billed minutes-of-use expense paid to the AICCLP by the ILEC based upon the ILEC's three-month average retail billed minutes-of-use expense during its applicable data development period, as determined under § 23-17-416(h) , exclusive of any retail billed minutes-of-use expense associated with retail billed minutes of uses provided by a toll reseller of an underlying carrier that is an ILEC;

(26) "Government entity" includes without limitation all Arkansas state agencies, commissions, boards, authorities, and all Arkansas public educational entities, including school districts, and political subdivisions, including incorporated and unincorporated cities and towns and all institutions, agencies or instrumentalities of municipalities, consolidated utility districts, and county governments;

(27) "ILEC Arkansas Calling Plan Fund and Extension of Telecommunications Facilities Fund expense" means the charge assessed against an ILEC in proportion to the AICCLP credits that were eliminated by former § 23-17-404(e)(4)(D)(iv) (b) ;

(28) "ILEC intrastate carrier common line revenue requirement" means the fixed annual payment that each ILEC was entitled to receive from the AICCLP, before any offsets or adjustments, as provided in the Arkansas Intrastate Carrier Common Line Pool tariff, as it existed before January 1, 2004;

(29) "Incumbent local exchange carrier" or "ILEC" means, with respect to a local exchange area, a local exchange carrier, including successors and assigns, that is certified by the commission and was providing basic local exchange service on February 8, 1996;

(30) "Interconnected VoIP service" has the meaning defined by 47 C.F.R. 9.3 , as it existed on January 1, 2013;

(31) "Interstate access charge pools" means the system, currently administered by the National Exchange Carrier Association, Inc., wherein participating local exchange carriers pool billed interstate access revenues;

(32) "Local exchange area" means the geographic area, approved by the commission, encompassing the area within which a local exchange carrier is authorized to provide basic local exchange services and switched-access services;

(33) "Local exchange carrier" or "LEC" means a telecommunications provider of basic local exchange service and switched-access service. The term does not include commercial mobile service providers;

(34) "Local switching support" means funding to assist high-cost companies in recovering the costs of switching intrastate calls;

(35) "National Exchange Carrier Association, Inc.," or "NECA" means a corporation by that name or its successor that performs various administrative functions and procedural duties prescribed to it by the FCC and others;

(36) "Network element" means a facility or equipment used in the provision of a telecommunications service. The term also includes features, functions, and capabilities that are provided by means of the facility or equipment, including subscriber numbers, databases, signaling systems, and information sufficient for billing and collection or used in the transmission, routing, or other provision of a telecommunications service;

(37) "Resale" means the purchase of services by one (1) local exchange carrier from another local exchange carrier for the purpose of reselling those services directly or indirectly to an end-user customer;

(38) "Rural telephone company" means a local exchange carrier defined as a rural telephone company in the federal act as of February 4, 1997;

(39) "Special intrastate ILEC revenue" means the revenue a toll reseller pays to an ILEC when the ILEC provides toll services to the toll reseller;

(40) "Study area" means a geographic area designated by the FCC and used by NECA or USAC for calculation of cost per loop within the geographic area's boundaries for federal high-cost loop support;

(41) "Switched-access service" means the provision of communications between a customer premise and an interexchange carrier's point of interconnection with a local exchange carrier's network for the completion of end-user calls to the public switched network for the origination or termination of interexchange long distance traffic;

(42) "Telecommunications provider" means any person, firm, partnership, corporation, association, or other entity that offers telecommunications services to the public for compensation;

(43) "Telecommunications Providers Rules" or "TPRs" means those rules applicable to telecommunications providers that have been adopted by the commission;

(44) (A) "Telecommunications services" means the offering to the public for compensation the transmission of voice, data, or other electronic information at any frequency over any part of the electromagnetic spectrum, notwithstanding any other use of the associated facilities. (B) The term does not include radio and television broadcast or distribution services, or the provision or publishing of yellow pages, regardless of the entity providing the services, or services to the extent that the services are used in connection with the operation of an electric utility system owned by a government entity;

(A) "Telecommunications services" means the offering to the public for compensation the transmission of voice, data, or other electronic information at any frequency over any part of the electromagnetic spectrum, notwithstanding any other use of the associated facilities.

(B) The term does not include radio and television broadcast or distribution services, or the provision or publishing of yellow pages, regardless of the entity providing the services, or services to the extent that the services are used in connection with the operation of an electric utility system owned by a government entity;

(45) (A) "Tier one company" means any incumbent local exchange carrier that, together with its Arkansas affiliates that are also incumbent local exchange carriers, provides basic local exchange services to greater than one hundred fifty thousand (150,000) access lines in the State of Arkansas on February 4, 1997. (B) Changes in designation of an incumbent local exchange carrier, or portions thereof, as a tier one company or non-tier one company may be effected by prior approval from the commission pursuant to § 23-17-411(i) ;

(A) "Tier one company" means any incumbent local exchange carrier that, together with its Arkansas affiliates that are also incumbent local exchange carriers, provides basic local exchange services to greater than one hundred fifty thousand (150,000) access lines in the State of Arkansas on February 4, 1997.

(B) Changes in designation of an incumbent local exchange carrier, or portions thereof, as a tier one company or non-tier one company may be effected by prior approval from the commission pursuant to § 23-17-411(i) ;

(46) "Toll reseller" means a carrier that resells intrastate telecommunications services that are provided to the carrier by an underlying carrier;

(47) (A) "Total customer access base" means the total of all eligible telecommunications carrier customer access lines within Arkansas of an entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with another entity. (B) For the purposes of subdivision (47)(A) of this section, "own" means to own an equity interest or the equivalent thereof of more than ten percent (10%);

(A) "Total customer access base" means the total of all eligible telecommunications carrier customer access lines within Arkansas of an entity that directly or indirectly owns or controls, is owned or controlled by, or is under common ownership or control with another entity.

(B) For the purposes of subdivision (47)(A) of this section, "own" means to own an equity interest or the equivalent thereof of more than ten percent (10%);

(48) "Underlying carrier" means a facilities-based CLEC or an interexchange carrier, other than an ILEC, that originates and terminates intrastate interexchange calls on the public switched network directly or through resale to a toll reseller or an ILEC that provides the toll services used by a toll reseller;

(49) "Universal service" means those telecommunications services that are defined and listed in the definition of basic local exchange service until changed by the commission pursuant to § 23-17-404(e)(2)(A) ;

(50) "Universal Service Administration Company" or "USAC" means a corporation under that name or its successor that performs various administrative and procedural duties prescribed to it by the FCC and others;

(51) "Wire center" means the location of one (1) or more local switching systems, a point at which end user's loops within a defined geographic area converge;

(52) "Wireless ETC" means a wireless eligible telecommunications carrier that is a commercial mobile service provider; and

(53) "Wireline ETC" means a wireline eligible telecommunications carrier that is a local exchange carrier.

Amended by Act 2021, No. 67,§ 1, eff. 2/4/2021.

Amended by Act 2019, No. 198,§ 2, eff. 2/26/2019.

Amended by Act 2013, No. 442,§ 5, eff. 3/19/2013.

Amended by Act 2013, No. 442,§ 4, eff. 3/19/2013.

Amended by Act 2013, No. 442,§ 3, eff. 3/19/2013.

Amended by Act 2013, No. 442,§ 2, eff. 3/19/2013.

Acts 1997, No. 77, § 3; 2003, No. 1764, § 1; 2003, No. 1788, §§ 1-6; 2007, No. 385, §§ 2, 3.
Ark. Code Ann. § 23-99-801 — AR Code / Title 23 / Chapter 99 / Subchapter 8 / Section 23-99-801
Application and intent
Status: in_force

(a) The state's any willing provider laws shall not be construed: (1) To require all physicians or a percentage of physicians in the state or a locale to participate in the provision of services for a health maintenance organization; or (2) To take away the authority of health maintenance organizations that provide coverage of physician services to set the terms and conditions for participation by physicians, though health maintenance organizations shall apply the terms and conditions in a nondiscriminatory manner. (b) (1) The state's any willing provider laws shall apply to: (A) All health insurers, regardless of whether they are providing insurance, including prepaid coverage, or administering or contracting to provide provider networks; and (B) All multiple-employer welfare arrangements and multiple-employer trusts. (2) This subsection shall apply only to the extent permitted by the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001 et seq. (c) (1) The state's any willing provider laws shall be construed to include within their provider definitions all those providers of the same class or classes who are: (A) Practicing or operating within a border city in an adjoining state; and (B) Licensed or authorized to practice or operate by the adjoining state, regardless of whether the provider is licensed or otherwise authorized to operate in Arkansas. (2) As used in this section, "border city" means a city in a state adjoining Arkansas which adjoins the Arkansas state line and is not separated from an Arkansas city only by a navigable river. (d) (1) As clarification, nothing in the state's any willing provider laws shall be construed to cover or regulate healthcare provider networks offered by noninsurers. (2) If an employer sponsoring a self-insured health benefit plan contracts directly with providers or contracts for a healthcare provider network through a noninsurer, then the any willing provider law does not apply. (3) If a health insurer subcontracts with a noninsurer whose healthcare network does not meet the requirements of the any willing provider law, then the noninsurer may create a separate healthcare provider network that meets the requirements of the any willing provider law. (4) If the noninsurer chooses not to create the separate healthcare provider network, then the responsibility for compliance with the any willing provider law is the obligation of the health insurer to the extent permitted by the federal Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001 et seq. (e) Notwithstanding the provisions of subsection (d) of this section, the Patient Protection Act of 1995, § 23-99-201 et seq., and this subchapter apply to a health benefit plan provided by the State of Arkansas to state employees and public school personnel under § 21-5-401 et seq., whether self-funded or insured. Acts 2005, No. 491, § 4; 2009, No. 702, § 1.

(a) The state's any willing provider laws shall not be construed: (1) To require all physicians or a percentage of physicians in the state or a locale to participate in the provision of services for a health maintenance organization; or (2) To take away the authority of health maintenance organizations that provide coverage of physician services to set the terms and conditions for participation by physicians, though health maintenance organizations shall apply the terms and conditions in a nondiscriminatory manner.

(1) To require all physicians or a percentage of physicians in the state or a locale to participate in the provision of services for a health maintenance organization; or

(2) To take away the authority of health maintenance organizations that provide coverage of physician services to set the terms and conditions for participation by physicians, though health maintenance organizations shall apply the terms and conditions in a nondiscriminatory manner.

(b) (1) The state's any willing provider laws shall apply to: (A) All health insurers, regardless of whether they are providing insurance, including prepaid coverage, or administering or contracting to provide provider networks; and (B) All multiple-employer welfare arrangements and multiple-employer trusts. (2) This subsection shall apply only to the extent permitted by the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001 et seq.

(1) The state's any willing provider laws shall apply to: (A) All health insurers, regardless of whether they are providing insurance, including prepaid coverage, or administering or contracting to provide provider networks; and (B) All multiple-employer welfare arrangements and multiple-employer trusts.

(A) All health insurers, regardless of whether they are providing insurance, including prepaid coverage, or administering or contracting to provide provider networks; and

(B) All multiple-employer welfare arrangements and multiple-employer trusts.

(2) This subsection shall apply only to the extent permitted by the Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001 et seq.

(c) (1) The state's any willing provider laws shall be construed to include within their provider definitions all those providers of the same class or classes who are: (A) Practicing or operating within a border city in an adjoining state; and (B) Licensed or authorized to practice or operate by the adjoining state, regardless of whether the provider is licensed or otherwise authorized to operate in Arkansas. (2) As used in this section, "border city" means a city in a state adjoining Arkansas which adjoins the Arkansas state line and is not separated from an Arkansas city only by a navigable river.

(1) The state's any willing provider laws shall be construed to include within their provider definitions all those providers of the same class or classes who are: (A) Practicing or operating within a border city in an adjoining state; and (B) Licensed or authorized to practice or operate by the adjoining state, regardless of whether the provider is licensed or otherwise authorized to operate in Arkansas.

(A) Practicing or operating within a border city in an adjoining state; and

(B) Licensed or authorized to practice or operate by the adjoining state, regardless of whether the provider is licensed or otherwise authorized to operate in Arkansas.

(2) As used in this section, "border city" means a city in a state adjoining Arkansas which adjoins the Arkansas state line and is not separated from an Arkansas city only by a navigable river.

(d) (1) As clarification, nothing in the state's any willing provider laws shall be construed to cover or regulate healthcare provider networks offered by noninsurers. (2) If an employer sponsoring a self-insured health benefit plan contracts directly with providers or contracts for a healthcare provider network through a noninsurer, then the any willing provider law does not apply. (3) If a health insurer subcontracts with a noninsurer whose healthcare network does not meet the requirements of the any willing provider law, then the noninsurer may create a separate healthcare provider network that meets the requirements of the any willing provider law. (4) If the noninsurer chooses not to create the separate healthcare provider network, then the responsibility for compliance with the any willing provider law is the obligation of the health insurer to the extent permitted by the federal Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001 et seq.

(1) As clarification, nothing in the state's any willing provider laws shall be construed to cover or regulate healthcare provider networks offered by noninsurers.

(2) If an employer sponsoring a self-insured health benefit plan contracts directly with providers or contracts for a healthcare provider network through a noninsurer, then the any willing provider law does not apply.

(3) If a health insurer subcontracts with a noninsurer whose healthcare network does not meet the requirements of the any willing provider law, then the noninsurer may create a separate healthcare provider network that meets the requirements of the any willing provider law.

(4) If the noninsurer chooses not to create the separate healthcare provider network, then the responsibility for compliance with the any willing provider law is the obligation of the health insurer to the extent permitted by the federal Employee Retirement Income Security Act of 1974, as amended, 29 U.S.C. § 1001 et seq.

(e) Notwithstanding the provisions of subsection (d) of this section, the Patient Protection Act of 1995, § 23-99-201 et seq., and this subchapter apply to a health benefit plan provided by the State of Arkansas to state employees and public school personnel under § 21-5-401 et seq., whether self-funded or insured.

Acts 2005, No. 491, § 4; 2009, No. 702, § 1.
Ark. Code Ann. § 23-69-118 — AR Code / Title 23 / Chapter 69 / Subchapter 1 / Section 23-69-118
Membership - Mutual insurers
Status: in_force

(a) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of membership, and the policy shall so specify. (b) Any person, government, or governmental agency, state or political subdivision thereof, public or private corporation, board, association, firm, estate, trustee, or fiduciary may be a member of a domestic, foreign, or alien mutual insurer. Any officer, stockholder, trustee, or legal representative of a corporation, board, association, or estate may be recognized as acting for or on its behalf for the purpose of the membership and shall not be personally liable upon any contract of insurance for acting in a representative capacity. (c) Any domestic corporation may participate as a member of a mutual insurer as an incidental purpose for which the corporation is organized and as such granted as the rights and powers expressly conferred by its articles of incorporation. Acts 1959, No. 148, § 468; A.S.A. 1947, § 66-4216.

(a) Each policyholder of a domestic mutual insurer, other than of a reinsurance contract, is a member of the insurer with all rights and obligations of membership, and the policy shall so specify.

(b) Any person, government, or governmental agency, state or political subdivision thereof, public or private corporation, board, association, firm, estate, trustee, or fiduciary may be a member of a domestic, foreign, or alien mutual insurer. Any officer, stockholder, trustee, or legal representative of a corporation, board, association, or estate may be recognized as acting for or on its behalf for the purpose of the membership and shall not be personally liable upon any contract of insurance for acting in a representative capacity.

(c) Any domestic corporation may participate as a member of a mutual insurer as an incidental purpose for which the corporation is organized and as such granted as the rights and powers expressly conferred by its articles of incorporation.

Acts 1959, No. 148, § 468; A.S.A. 1947, § 66-4216.
Ark. Code Ann. § 23-76-107 — AR Code / Title 23 / Chapter 76 / Section 23-76-107
Establishment
Status: in_force

(a) (1) Any person that meets the requirements of § 23-76-102(9) may apply to the Insurance Commissioner for and obtain a certificate of authority to establish and operate a health maintenance organization. (2) No person shall establish or operate a health maintenance organization in this state, nor sell or offer to sell, nor solicit offers to purchase or receive advance or periodic consideration in conjunction with a health maintenance organization without obtaining a certificate of authority under this chapter. (3) The corporation must have the express authority to operate a health maintenance organization contained in its articles of incorporation. Incorporation shall not be required of any entity that has been issued a certificate of authority prior to March 30, 1987. (b) (1) Every health maintenance organization, as of July 9, 1975, shall submit an application for a certificate of authority under subsection (c) of this section within sixty (60) days of July 9, 1975. (2) Each applicant may continue to operate until the commissioner acts upon the application. (3) In the event that an application is denied under § 23-76-108 , the applicant shall henceforth be treated as a health maintenance organization whose certificate of authority has been revoked. (c) Each application for a certificate of authority shall be verified by an officer or authorized representative of the applicant, shall be in a form prescribed by the commissioner, and shall set forth or be accompanied by the following: (1) A copy of the basic organizational document, if any, of the applicant, such as the articles of incorporation, articles of association, partnership agreement, trust agreement, or other applicable documents, and all amendments thereto; (2) A copy of the bylaws, rules, or similar document, if any, regulating the conduct of the internal affairs of the applicant; (3) A list of the names, addresses, and official positions of the persons who are to be responsible for the conduct of the affairs of the applicant, including all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the principal officers in the case of a corporation, and the partners or members in the case of a partnership or association; (4) A copy of any contract made or to be made between any providers or persons listed in subdivision (c)(3) of this section and the applicant; (5) A statement generally describing the health maintenance organization, its healthcare plans, facilities, and personnel; (6) A copy of the form of evidence of coverage to be issued to the enrollees; (7) A copy of the form of the group contract, if any, that is to be issued to employers, unions, trustees, or other organizations; (8) (A) Financial statements showing the applicant's assets, liabilities, and sources of financial support. (B) If the applicant's financial affairs are audited by independent certified public accountants, a copy of the applicant's most recent regular certified financial statement shall be deemed to satisfy this requirement unless the commissioner directs that additional or more recent financial information is required for the proper administration of this chapter; (9) A financial feasibility plan that includes: (A) Detailed enrollment projections; (B) The methodology for determining premium rates to be charged during the first twelve (12) months of operation certified by an actuary or other qualified person; (C) A projection of balance sheets; (D) Cash flow statements showing any capital expenditures, purchase and sale of investments and deposits with the state, and income and expense statements anticipated from the start of operations until the health maintenance organization has had net income for at least one (1) year; and (E) A statement as to the source of working capital as well as any other sources of funds; (10) (A) On and after January 1, 2003, a power of attorney executed by the applicant, if not domiciled in this state, and filed, along with a proper fee specified by the commissioner, with the commissioner's office to register an Arkansas resident to serve as the true and lawful attorney of the applicant in and for this state upon whom may be served all lawful process in any legal action or proceeding against the health maintenance organization on a cause of action arising in this state. (B) In the event no registered agent has been chosen, the commissioner may be served until the appointment of an Arkansas-registered agent for service of process has been entered upon the records of the commissioner; (11) A statement or map reasonably describing the geographic areas to be served; (12) A description of the complaint procedures to be utilized as required under § 23-76-116 ; (13) A description of the procedures and programs to be implemented to meet the quality of healthcare requirements in § 23-76-108 ; (14) A description of the mechanism by which enrollees will be afforded an opportunity to participate in matters of policy and operation under § 23-76-110(b) ; (15) A list of the names and addresses of all providers with which the health maintenance organization has agreements; and (16) Such other information as the commissioner may require to make the determinations required in § 23-76-108 . (d) (1) A health maintenance organization shall file a notice describing any major modification of the operation set out in the information required by subsection (c) of this section unless otherwise provided for in this chapter. The notice shall be filed with the commissioner prior to the modification. If the commissioner does not disapprove within sixty (60) days of filing, the modification shall be deemed approved. (2) The commissioner shall promulgate rules exempting from the filing requirements of subdivision (c)(1) of this section those items the commissioner deems unnecessary. Amended by Act 2019, No. 315,§ 2700, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2699, eff. 7/24/2019. Amended by Act 2013, No. 1433,§ 2, eff. 8/16/2013. Acts 1975, No. 454, § 3; A.S.A. 1947, § 66-5203; Acts 1987, No. 456, § 22; 1993, No. 901, § 35; 2001, No. 1605, § 3.

(a) (1) Any person that meets the requirements of § 23-76-102(9) may apply to the Insurance Commissioner for and obtain a certificate of authority to establish and operate a health maintenance organization. (2) No person shall establish or operate a health maintenance organization in this state, nor sell or offer to sell, nor solicit offers to purchase or receive advance or periodic consideration in conjunction with a health maintenance organization without obtaining a certificate of authority under this chapter. (3) The corporation must have the express authority to operate a health maintenance organization contained in its articles of incorporation. Incorporation shall not be required of any entity that has been issued a certificate of authority prior to March 30, 1987.

(1) Any person that meets the requirements of § 23-76-102(9) may apply to the Insurance Commissioner for and obtain a certificate of authority to establish and operate a health maintenance organization.

(2) No person shall establish or operate a health maintenance organization in this state, nor sell or offer to sell, nor solicit offers to purchase or receive advance or periodic consideration in conjunction with a health maintenance organization without obtaining a certificate of authority under this chapter.

(3) The corporation must have the express authority to operate a health maintenance organization contained in its articles of incorporation. Incorporation shall not be required of any entity that has been issued a certificate of authority prior to March 30, 1987.

(b) (1) Every health maintenance organization, as of July 9, 1975, shall submit an application for a certificate of authority under subsection (c) of this section within sixty (60) days of July 9, 1975. (2) Each applicant may continue to operate until the commissioner acts upon the application. (3) In the event that an application is denied under § 23-76-108 , the applicant shall henceforth be treated as a health maintenance organization whose certificate of authority has been revoked.

(1) Every health maintenance organization, as of July 9, 1975, shall submit an application for a certificate of authority under subsection (c) of this section within sixty (60) days of July 9, 1975.

(2) Each applicant may continue to operate until the commissioner acts upon the application.

(3) In the event that an application is denied under § 23-76-108 , the applicant shall henceforth be treated as a health maintenance organization whose certificate of authority has been revoked.

(c) Each application for a certificate of authority shall be verified by an officer or authorized representative of the applicant, shall be in a form prescribed by the commissioner, and shall set forth or be accompanied by the following: (1) A copy of the basic organizational document, if any, of the applicant, such as the articles of incorporation, articles of association, partnership agreement, trust agreement, or other applicable documents, and all amendments thereto; (2) A copy of the bylaws, rules, or similar document, if any, regulating the conduct of the internal affairs of the applicant; (3) A list of the names, addresses, and official positions of the persons who are to be responsible for the conduct of the affairs of the applicant, including all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the principal officers in the case of a corporation, and the partners or members in the case of a partnership or association; (4) A copy of any contract made or to be made between any providers or persons listed in subdivision (c)(3) of this section and the applicant; (5) A statement generally describing the health maintenance organization, its healthcare plans, facilities, and personnel; (6) A copy of the form of evidence of coverage to be issued to the enrollees; (7) A copy of the form of the group contract, if any, that is to be issued to employers, unions, trustees, or other organizations; (8) (A) Financial statements showing the applicant's assets, liabilities, and sources of financial support. (B) If the applicant's financial affairs are audited by independent certified public accountants, a copy of the applicant's most recent regular certified financial statement shall be deemed to satisfy this requirement unless the commissioner directs that additional or more recent financial information is required for the proper administration of this chapter; (9) A financial feasibility plan that includes: (A) Detailed enrollment projections; (B) The methodology for determining premium rates to be charged during the first twelve (12) months of operation certified by an actuary or other qualified person; (C) A projection of balance sheets; (D) Cash flow statements showing any capital expenditures, purchase and sale of investments and deposits with the state, and income and expense statements anticipated from the start of operations until the health maintenance organization has had net income for at least one (1) year; and (E) A statement as to the source of working capital as well as any other sources of funds; (10) (A) On and after January 1, 2003, a power of attorney executed by the applicant, if not domiciled in this state, and filed, along with a proper fee specified by the commissioner, with the commissioner's office to register an Arkansas resident to serve as the true and lawful attorney of the applicant in and for this state upon whom may be served all lawful process in any legal action or proceeding against the health maintenance organization on a cause of action arising in this state. (B) In the event no registered agent has been chosen, the commissioner may be served until the appointment of an Arkansas-registered agent for service of process has been entered upon the records of the commissioner; (11) A statement or map reasonably describing the geographic areas to be served; (12) A description of the complaint procedures to be utilized as required under § 23-76-116 ; (13) A description of the procedures and programs to be implemented to meet the quality of healthcare requirements in § 23-76-108 ; (14) A description of the mechanism by which enrollees will be afforded an opportunity to participate in matters of policy and operation under § 23-76-110(b) ; (15) A list of the names and addresses of all providers with which the health maintenance organization has agreements; and (16) Such other information as the commissioner may require to make the determinations required in § 23-76-108 .

(1) A copy of the basic organizational document, if any, of the applicant, such as the articles of incorporation, articles of association, partnership agreement, trust agreement, or other applicable documents, and all amendments thereto;

(2) A copy of the bylaws, rules, or similar document, if any, regulating the conduct of the internal affairs of the applicant;

(3) A list of the names, addresses, and official positions of the persons who are to be responsible for the conduct of the affairs of the applicant, including all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the principal officers in the case of a corporation, and the partners or members in the case of a partnership or association;

(4) A copy of any contract made or to be made between any providers or persons listed in subdivision (c)(3) of this section and the applicant;

(5) A statement generally describing the health maintenance organization, its healthcare plans, facilities, and personnel;

(6) A copy of the form of evidence of coverage to be issued to the enrollees;

(7) A copy of the form of the group contract, if any, that is to be issued to employers, unions, trustees, or other organizations;

(8) (A) Financial statements showing the applicant's assets, liabilities, and sources of financial support. (B) If the applicant's financial affairs are audited by independent certified public accountants, a copy of the applicant's most recent regular certified financial statement shall be deemed to satisfy this requirement unless the commissioner directs that additional or more recent financial information is required for the proper administration of this chapter;

(A) Financial statements showing the applicant's assets, liabilities, and sources of financial support.

(B) If the applicant's financial affairs are audited by independent certified public accountants, a copy of the applicant's most recent regular certified financial statement shall be deemed to satisfy this requirement unless the commissioner directs that additional or more recent financial information is required for the proper administration of this chapter;

(9) A financial feasibility plan that includes: (A) Detailed enrollment projections; (B) The methodology for determining premium rates to be charged during the first twelve (12) months of operation certified by an actuary or other qualified person; (C) A projection of balance sheets; (D) Cash flow statements showing any capital expenditures, purchase and sale of investments and deposits with the state, and income and expense statements anticipated from the start of operations until the health maintenance organization has had net income for at least one (1) year; and (E) A statement as to the source of working capital as well as any other sources of funds;

(A) Detailed enrollment projections;

(B) The methodology for determining premium rates to be charged during the first twelve (12) months of operation certified by an actuary or other qualified person;

(C) A projection of balance sheets;

(D) Cash flow statements showing any capital expenditures, purchase and sale of investments and deposits with the state, and income and expense statements anticipated from the start of operations until the health maintenance organization has had net income for at least one (1) year; and

(E) A statement as to the source of working capital as well as any other sources of funds;

(10) (A) On and after January 1, 2003, a power of attorney executed by the applicant, if not domiciled in this state, and filed, along with a proper fee specified by the commissioner, with the commissioner's office to register an Arkansas resident to serve as the true and lawful attorney of the applicant in and for this state upon whom may be served all lawful process in any legal action or proceeding against the health maintenance organization on a cause of action arising in this state. (B) In the event no registered agent has been chosen, the commissioner may be served until the appointment of an Arkansas-registered agent for service of process has been entered upon the records of the commissioner;

(A) On and after January 1, 2003, a power of attorney executed by the applicant, if not domiciled in this state, and filed, along with a proper fee specified by the commissioner, with the commissioner's office to register an Arkansas resident to serve as the true and lawful attorney of the applicant in and for this state upon whom may be served all lawful process in any legal action or proceeding against the health maintenance organization on a cause of action arising in this state.

(B) In the event no registered agent has been chosen, the commissioner may be served until the appointment of an Arkansas-registered agent for service of process has been entered upon the records of the commissioner;

(11) A statement or map reasonably describing the geographic areas to be served;

(12) A description of the complaint procedures to be utilized as required under § 23-76-116 ;

(13) A description of the procedures and programs to be implemented to meet the quality of healthcare requirements in § 23-76-108 ;

(14) A description of the mechanism by which enrollees will be afforded an opportunity to participate in matters of policy and operation under § 23-76-110(b) ;

(15) A list of the names and addresses of all providers with which the health maintenance organization has agreements; and

(16) Such other information as the commissioner may require to make the determinations required in § 23-76-108 .

(d) (1) A health maintenance organization shall file a notice describing any major modification of the operation set out in the information required by subsection (c) of this section unless otherwise provided for in this chapter. The notice shall be filed with the commissioner prior to the modification. If the commissioner does not disapprove within sixty (60) days of filing, the modification shall be deemed approved. (2) The commissioner shall promulgate rules exempting from the filing requirements of subdivision (c)(1) of this section those items the commissioner deems unnecessary.

(1) A health maintenance organization shall file a notice describing any major modification of the operation set out in the information required by subsection (c) of this section unless otherwise provided for in this chapter. The notice shall be filed with the commissioner prior to the modification. If the commissioner does not disapprove within sixty (60) days of filing, the modification shall be deemed approved.

(2) The commissioner shall promulgate rules exempting from the filing requirements of subdivision (c)(1) of this section those items the commissioner deems unnecessary.

Amended by Act 2019, No. 315,§ 2700, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2699, eff. 7/24/2019.

Amended by Act 2013, No. 1433,§ 2, eff. 8/16/2013.

Acts 1975, No. 454, § 3; A.S.A. 1947, § 66-5203; Acts 1987, No. 456, § 22; 1993, No. 901, § 35; 2001, No. 1605, § 3.
Ark. Code Ann. § 23-61-905 — AR Code / Title 23 / Chapter 61 / Subchapter 9 / Section 23-61-905
Arkansas Healthcare Transparency Initiative Board - Membership - Duties
Status: in_force

(a) (1) There is created the Arkansas Healthcare Transparency Initiative Board, which shall be composed of the following members: (A) A representative of the Department of Human Services; (B) A representative of the Department of Health; (C) A representative of the Office of Health Information Technology or its successor entity as provided by state law; (D) The Arkansas Surgeon General; (E) Nine (9) members appointed by the Governor as follows: (i) Two (2) representatives from the health insurance industry, one (1) of whom shall be a multistate representative and one (1) of whom shall be a domestic representative; (ii) Two (2) representatives from the healthcare provider community; (iii) A representative from a self-insured employer; (iv) A representative from an employer of fewer than one hundred (100) full-time employees that provides healthcare coverage to employees through a fully insured product; (v) A representative from a healthcare consumer organization; (vi) A representative from the academic research community with expertise in healthcare claims data analysis; and (vii) A representative with expertise in health data privacy and security; and (F) A representative from the Arkansas Biosciences Institute who shall serve as an ex-offico, nonvoting member. (2) A Governor-appointed member of the board in subdivision (a)(1)(E) of this section shall serve for a term of three (3) years. (3) The board shall appoint one (1) member as Chair of the Arkansas Healthcare Transparency Initiative Board and determine the qualifications, duties, and the term of office of the chair. (4) Seven (7) members present constitute a quorum. (5) The board shall hold its first meeting no later than July 1, 2015. (b) The State Insurance Department shall: (1) Have the authority to: (A) Collect, validate, analyze, and present health data, including claims data; (B) Assess penalties for noncompliance with this subchapter; and (C) Establish and convene additional subcommittees to carry out the purposes of this subchapter; (2) Designate the Arkansas Center for Health Improvement as the Administrator of the Arkansas Healthcare Transparency Initiative, which shall be responsible for development and implementation of a sustainability plan subject to data use and disclosure requirements of this subchapter and any rules promulgated under this subchapter; (3) With the assistance of the Administrator of the Arkansas Healthcare Transparency Initiative, establish and convene the following subcommittees: (A) The Data Oversight Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) Three (3) Governor-appointed board members; and (b) One (1) individual healthcare consumer; and (ii) Review and make recommendations to the State Insurance Department regarding: (a) Data requests for consistency with the intent and purpose of this subchapter, including whether the data request contains the minimum required information; and (b) Reports and publications generated from data requests to ensure compliance with this subchapter; and (B) The Scientific Advisory Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) The Governor-appointed member of the board from the academic research community; and (b) Two (2) nonmembers of the board who are academic researchers; and (ii) Serve as peer review for academic researchers and provide advice regarding data requests for academic proposals and the scientific rigor of analytic work; and (4) Adopt any rules necessary to implement this subchapter under the Arkansas Administrative Procedure Act, § 25-15-201 et seq. (c) In consultation with the board, the State Insurance Department shall exercise its powers and duties under this subchapter to: (1) Establish policies and procedures necessary for the administration and oversight of the Arkansas Healthcare Transparency Initiative, including procedures for the collection, processing, storage, analysis, use, and release of data; (2) Identify and explore the key healthcare issues, questions, and problems that may be improved through more transparent information, including without limitation data required to be disclosed to patients related to provider relationships or affiliations with payers and providers, financial interests in healthcare businesses, and payments or items of any value given to providers from pharmaceutical or medical device manufacturers or agents thereof; and (3) Provide a biennial report to the General Assembly on the operations of the Arkansas Healthcare Transparency Initiative. Amended by Act 2017, No. 979,§ 4, eff. 8/1/2017. Added by Act 2015, No. 1233,§ 1, eff. 4/7/2015.

(a) (1) There is created the Arkansas Healthcare Transparency Initiative Board, which shall be composed of the following members: (A) A representative of the Department of Human Services; (B) A representative of the Department of Health; (C) A representative of the Office of Health Information Technology or its successor entity as provided by state law; (D) The Arkansas Surgeon General; (E) Nine (9) members appointed by the Governor as follows: (i) Two (2) representatives from the health insurance industry, one (1) of whom shall be a multistate representative and one (1) of whom shall be a domestic representative; (ii) Two (2) representatives from the healthcare provider community; (iii) A representative from a self-insured employer; (iv) A representative from an employer of fewer than one hundred (100) full-time employees that provides healthcare coverage to employees through a fully insured product; (v) A representative from a healthcare consumer organization; (vi) A representative from the academic research community with expertise in healthcare claims data analysis; and (vii) A representative with expertise in health data privacy and security; and (F) A representative from the Arkansas Biosciences Institute who shall serve as an ex-offico, nonvoting member. (2) A Governor-appointed member of the board in subdivision (a)(1)(E) of this section shall serve for a term of three (3) years. (3) The board shall appoint one (1) member as Chair of the Arkansas Healthcare Transparency Initiative Board and determine the qualifications, duties, and the term of office of the chair. (4) Seven (7) members present constitute a quorum. (5) The board shall hold its first meeting no later than July 1, 2015.

(1) There is created the Arkansas Healthcare Transparency Initiative Board, which shall be composed of the following members: (A) A representative of the Department of Human Services; (B) A representative of the Department of Health; (C) A representative of the Office of Health Information Technology or its successor entity as provided by state law; (D) The Arkansas Surgeon General; (E) Nine (9) members appointed by the Governor as follows: (i) Two (2) representatives from the health insurance industry, one (1) of whom shall be a multistate representative and one (1) of whom shall be a domestic representative; (ii) Two (2) representatives from the healthcare provider community; (iii) A representative from a self-insured employer; (iv) A representative from an employer of fewer than one hundred (100) full-time employees that provides healthcare coverage to employees through a fully insured product; (v) A representative from a healthcare consumer organization; (vi) A representative from the academic research community with expertise in healthcare claims data analysis; and (vii) A representative with expertise in health data privacy and security; and (F) A representative from the Arkansas Biosciences Institute who shall serve as an ex-offico, nonvoting member.

(A) A representative of the Department of Human Services;

(B) A representative of the Department of Health;

(C) A representative of the Office of Health Information Technology or its successor entity as provided by state law;

(D) The Arkansas Surgeon General;

(E) Nine (9) members appointed by the Governor as follows: (i) Two (2) representatives from the health insurance industry, one (1) of whom shall be a multistate representative and one (1) of whom shall be a domestic representative; (ii) Two (2) representatives from the healthcare provider community; (iii) A representative from a self-insured employer; (iv) A representative from an employer of fewer than one hundred (100) full-time employees that provides healthcare coverage to employees through a fully insured product; (v) A representative from a healthcare consumer organization; (vi) A representative from the academic research community with expertise in healthcare claims data analysis; and (vii) A representative with expertise in health data privacy and security; and

(i) Two (2) representatives from the health insurance industry, one (1) of whom shall be a multistate representative and one (1) of whom shall be a domestic representative;

(ii) Two (2) representatives from the healthcare provider community;

(iii) A representative from a self-insured employer;

(iv) A representative from an employer of fewer than one hundred (100) full-time employees that provides healthcare coverage to employees through a fully insured product;

(v) A representative from a healthcare consumer organization;

(vi) A representative from the academic research community with expertise in healthcare claims data analysis; and

(vii) A representative with expertise in health data privacy and security; and

(F) A representative from the Arkansas Biosciences Institute who shall serve as an ex-offico, nonvoting member.

(2) A Governor-appointed member of the board in subdivision (a)(1)(E) of this section shall serve for a term of three (3) years.

(3) The board shall appoint one (1) member as Chair of the Arkansas Healthcare Transparency Initiative Board and determine the qualifications, duties, and the term of office of the chair.

(4) Seven (7) members present constitute a quorum.

(5) The board shall hold its first meeting no later than July 1, 2015.

(b) The State Insurance Department shall: (1) Have the authority to: (A) Collect, validate, analyze, and present health data, including claims data; (B) Assess penalties for noncompliance with this subchapter; and (C) Establish and convene additional subcommittees to carry out the purposes of this subchapter; (2) Designate the Arkansas Center for Health Improvement as the Administrator of the Arkansas Healthcare Transparency Initiative, which shall be responsible for development and implementation of a sustainability plan subject to data use and disclosure requirements of this subchapter and any rules promulgated under this subchapter; (3) With the assistance of the Administrator of the Arkansas Healthcare Transparency Initiative, establish and convene the following subcommittees: (A) The Data Oversight Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) Three (3) Governor-appointed board members; and (b) One (1) individual healthcare consumer; and (ii) Review and make recommendations to the State Insurance Department regarding: (a) Data requests for consistency with the intent and purpose of this subchapter, including whether the data request contains the minimum required information; and (b) Reports and publications generated from data requests to ensure compliance with this subchapter; and (B) The Scientific Advisory Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) The Governor-appointed member of the board from the academic research community; and (b) Two (2) nonmembers of the board who are academic researchers; and (ii) Serve as peer review for academic researchers and provide advice regarding data requests for academic proposals and the scientific rigor of analytic work; and (4) Adopt any rules necessary to implement this subchapter under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

(1) Have the authority to: (A) Collect, validate, analyze, and present health data, including claims data; (B) Assess penalties for noncompliance with this subchapter; and (C) Establish and convene additional subcommittees to carry out the purposes of this subchapter;

(A) Collect, validate, analyze, and present health data, including claims data;

(B) Assess penalties for noncompliance with this subchapter; and

(C) Establish and convene additional subcommittees to carry out the purposes of this subchapter;

(2) Designate the Arkansas Center for Health Improvement as the Administrator of the Arkansas Healthcare Transparency Initiative, which shall be responsible for development and implementation of a sustainability plan subject to data use and disclosure requirements of this subchapter and any rules promulgated under this subchapter;

(3) With the assistance of the Administrator of the Arkansas Healthcare Transparency Initiative, establish and convene the following subcommittees: (A) The Data Oversight Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) Three (3) Governor-appointed board members; and (b) One (1) individual healthcare consumer; and (ii) Review and make recommendations to the State Insurance Department regarding: (a) Data requests for consistency with the intent and purpose of this subchapter, including whether the data request contains the minimum required information; and (b) Reports and publications generated from data requests to ensure compliance with this subchapter; and (B) The Scientific Advisory Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) The Governor-appointed member of the board from the academic research community; and (b) Two (2) nonmembers of the board who are academic researchers; and (ii) Serve as peer review for academic researchers and provide advice regarding data requests for academic proposals and the scientific rigor of analytic work; and

(A) The Data Oversight Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) Three (3) Governor-appointed board members; and (b) One (1) individual healthcare consumer; and (ii) Review and make recommendations to the State Insurance Department regarding: (a) Data requests for consistency with the intent and purpose of this subchapter, including whether the data request contains the minimum required information; and (b) Reports and publications generated from data requests to ensure compliance with this subchapter; and

(i) Consist of: (a) Three (3) Governor-appointed board members; and (b) One (1) individual healthcare consumer; and

(a) Three (3) Governor-appointed board members; and

(b) One (1) individual healthcare consumer; and

(ii) Review and make recommendations to the State Insurance Department regarding: (a) Data requests for consistency with the intent and purpose of this subchapter, including whether the data request contains the minimum required information; and (b) Reports and publications generated from data requests to ensure compliance with this subchapter; and

(a) Data requests for consistency with the intent and purpose of this subchapter, including whether the data request contains the minimum required information; and

(b) Reports and publications generated from data requests to ensure compliance with this subchapter; and

(B) The Scientific Advisory Subcommittee of the Arkansas Healthcare Transparency Initiative, which shall: (i) Consist of: (a) The Governor-appointed member of the board from the academic research community; and (b) Two (2) nonmembers of the board who are academic researchers; and (ii) Serve as peer review for academic researchers and provide advice regarding data requests for academic proposals and the scientific rigor of analytic work; and

(i) Consist of: (a) The Governor-appointed member of the board from the academic research community; and (b) Two (2) nonmembers of the board who are academic researchers; and

(a) The Governor-appointed member of the board from the academic research community; and

(b) Two (2) nonmembers of the board who are academic researchers; and

(ii) Serve as peer review for academic researchers and provide advice regarding data requests for academic proposals and the scientific rigor of analytic work; and

(4) Adopt any rules necessary to implement this subchapter under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

(c) In consultation with the board, the State Insurance Department shall exercise its powers and duties under this subchapter to: (1) Establish policies and procedures necessary for the administration and oversight of the Arkansas Healthcare Transparency Initiative, including procedures for the collection, processing, storage, analysis, use, and release of data; (2) Identify and explore the key healthcare issues, questions, and problems that may be improved through more transparent information, including without limitation data required to be disclosed to patients related to provider relationships or affiliations with payers and providers, financial interests in healthcare businesses, and payments or items of any value given to providers from pharmaceutical or medical device manufacturers or agents thereof; and (3) Provide a biennial report to the General Assembly on the operations of the Arkansas Healthcare Transparency Initiative.

(1) Establish policies and procedures necessary for the administration and oversight of the Arkansas Healthcare Transparency Initiative, including procedures for the collection, processing, storage, analysis, use, and release of data;

(2) Identify and explore the key healthcare issues, questions, and problems that may be improved through more transparent information, including without limitation data required to be disclosed to patients related to provider relationships or affiliations with payers and providers, financial interests in healthcare businesses, and payments or items of any value given to providers from pharmaceutical or medical device manufacturers or agents thereof; and

(3) Provide a biennial report to the General Assembly on the operations of the Arkansas Healthcare Transparency Initiative.

Amended by Act 2017, No. 979,§ 4, eff. 8/1/2017.

Added by Act 2015, No. 1233,§ 1, eff. 4/7/2015.
Ark. Code Ann. § 23-112-302 — AR Code / Title 23 / Chapter 112 / Subchapter 3 / Section 23-112-302
Application for license
Status: in_force

(a) Applications for licenses required to be obtained under the provisions of this chapter shall: (1) Be verified by the oath or affirmation of the applicants; (2) Be on forms prescribed by the Arkansas Motor Vehicle Commission and furnished to the applicants; and (3) Contain such information as the commission deems necessary to enable it to fully determine the qualifications and eligibility of the several applicants to receive the licenses applied for. (b) The commission shall require that there be set forth in each application: (1) Information relating to: (A) The applicant's business integrity; (B) Whether the applicant has an established place of business in the State of Arkansas and is primarily engaged in the pursuit, avocation, or business for which licenses are applied for; and (C) Whether the applicant has the proper facilities and is able to properly conduct the business for which licenses are applied for; and (2) Other pertinent information consistent with the safeguarding of the public interest and public welfare. (c) (1) (A) In addition to the provisions of subsections (a) and (b) of this section, applications for licenses as: (i) New motor vehicle dealers, must also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of fifty thousand dollars ($50,000) on a bond form approved by the commission; and (ii) New motorcycle dealers, new all-terrain vehicle dealers, new low speed vehicle dealers, and motor vehicle lessors, shall also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission. (B) In each instance that a branch license is applied for, each application shall be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission. (C) Motor vehicle dealers shall also provide proof of liability insurance coverage on all vehicles to be offered for sale in an amount equal to or greater than the amount required by the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq. (2) The bond shall be in effect upon the applicant's being licensed and shall be conditioned upon the applicant's complying with the provisions of this chapter. (3) The bond shall be an indemnity for any loss sustained by any person by reason of the acts of the person bonded when those acts constitute grounds for the suspension or revocation of his or her license. (4) The bond shall be executed in the name of the State of Arkansas for the benefit of any aggrieved party. (5) The aggregate liability of the surety for all claimants, regardless of the number of years this bond is in force or has been in effect, shall not exceed the amount of the bond. (6) The proceeds of the bond shall be paid upon receipt by the commission of a final judgment from an Arkansas court of competent jurisdiction against the principal and in favor of an aggrieved party. (d) (1) In addition to the provisions of subsections (a)-(c) of this section, applications for licenses as motor vehicle dealers in new motor vehicles must also be accompanied by the filing with the commission of a bona fide contract or franchise then in effect between the applicant and a manufacturer or distributor of the new motor vehicles proposed to be dealt in. (2) However, if the contract or franchise has already been filed with the commission in connection with a previous application made by the applicant, the applicant, in lieu of again filing the contract or franchise, shall identify the contract or franchise by appropriate reference and file all revisions and additions, if any, which have been made to the contract or franchise. (e) The applicant for a license as a new motor vehicle dealer shall furnish satisfactory evidence that the applicant: (1) Maintains adequate space in the building or structure wherein the applicant's established business is conducted for the display of new motor vehicles or will have the facilities within a reasonable time after receiving a license; (2) Has or will have adequate facilities in the building or structure to perform repair and service work on motor vehicles and adequate space for storage of new parts and accessories for the motor vehicles; and (3) Will perform repair and warranty services on a motor vehicle at the licensed location. (f) (1) Every licensed dealer shall maintain for three (3) years after the date of purchase records of each vehicle transaction to which the dealer was a party. (2) Dealers shall maintain copies of all documents executed in connection with any transaction, which may include bills of sale, titles, odometer statements, invoices, affidavits of alteration, and reassignments, and shall be open to inspection by the Executive Director of the Arkansas Motor Vehicle Commission or a commission representative acting in an official capacity during reasonable business hours and upon execution of a subpoena. (g) (1) The licensee applying for a branch license shall not utilize any portion of a franchise name or product nameplates. (2) A licensee applying for a branch license shall remain in the relevant market area, as defined in the franchise or selling agreement approved by the franchiser and franchisee and on file in the commission office or as defined in this chapter pertaining to relevant market area, whichever is greater. Amended by Act 2013, No. 561,§ 4, eff. 8/16/2013. Acts 1975, No. 388, § 5; 1985, No. 1032, § 3; 1985, No. 1058, § 3; A.S.A. 1947, § 75-2305; Acts 1995, No. 568, § 5; 1999, No. 1042, § 3; 2001, No. 1053, § 3; 2009, No. 756, § 7.

(a) Applications for licenses required to be obtained under the provisions of this chapter shall: (1) Be verified by the oath or affirmation of the applicants; (2) Be on forms prescribed by the Arkansas Motor Vehicle Commission and furnished to the applicants; and (3) Contain such information as the commission deems necessary to enable it to fully determine the qualifications and eligibility of the several applicants to receive the licenses applied for.

(1) Be verified by the oath or affirmation of the applicants;

(2) Be on forms prescribed by the Arkansas Motor Vehicle Commission and furnished to the applicants; and

(3) Contain such information as the commission deems necessary to enable it to fully determine the qualifications and eligibility of the several applicants to receive the licenses applied for.

(b) The commission shall require that there be set forth in each application: (1) Information relating to: (A) The applicant's business integrity; (B) Whether the applicant has an established place of business in the State of Arkansas and is primarily engaged in the pursuit, avocation, or business for which licenses are applied for; and (C) Whether the applicant has the proper facilities and is able to properly conduct the business for which licenses are applied for; and (2) Other pertinent information consistent with the safeguarding of the public interest and public welfare.

(1) Information relating to: (A) The applicant's business integrity; (B) Whether the applicant has an established place of business in the State of Arkansas and is primarily engaged in the pursuit, avocation, or business for which licenses are applied for; and (C) Whether the applicant has the proper facilities and is able to properly conduct the business for which licenses are applied for; and

(A) The applicant's business integrity;

(B) Whether the applicant has an established place of business in the State of Arkansas and is primarily engaged in the pursuit, avocation, or business for which licenses are applied for; and

(C) Whether the applicant has the proper facilities and is able to properly conduct the business for which licenses are applied for; and

(2) Other pertinent information consistent with the safeguarding of the public interest and public welfare.

(c) (1) (A) In addition to the provisions of subsections (a) and (b) of this section, applications for licenses as: (i) New motor vehicle dealers, must also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of fifty thousand dollars ($50,000) on a bond form approved by the commission; and (ii) New motorcycle dealers, new all-terrain vehicle dealers, new low speed vehicle dealers, and motor vehicle lessors, shall also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission. (B) In each instance that a branch license is applied for, each application shall be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission. (C) Motor vehicle dealers shall also provide proof of liability insurance coverage on all vehicles to be offered for sale in an amount equal to or greater than the amount required by the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq. (2) The bond shall be in effect upon the applicant's being licensed and shall be conditioned upon the applicant's complying with the provisions of this chapter. (3) The bond shall be an indemnity for any loss sustained by any person by reason of the acts of the person bonded when those acts constitute grounds for the suspension or revocation of his or her license. (4) The bond shall be executed in the name of the State of Arkansas for the benefit of any aggrieved party. (5) The aggregate liability of the surety for all claimants, regardless of the number of years this bond is in force or has been in effect, shall not exceed the amount of the bond. (6) The proceeds of the bond shall be paid upon receipt by the commission of a final judgment from an Arkansas court of competent jurisdiction against the principal and in favor of an aggrieved party.

(1) (A) In addition to the provisions of subsections (a) and (b) of this section, applications for licenses as: (i) New motor vehicle dealers, must also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of fifty thousand dollars ($50,000) on a bond form approved by the commission; and (ii) New motorcycle dealers, new all-terrain vehicle dealers, new low speed vehicle dealers, and motor vehicle lessors, shall also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission. (B) In each instance that a branch license is applied for, each application shall be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission. (C) Motor vehicle dealers shall also provide proof of liability insurance coverage on all vehicles to be offered for sale in an amount equal to or greater than the amount required by the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq.

(A) In addition to the provisions of subsections (a) and (b) of this section, applications for licenses as: (i) New motor vehicle dealers, must also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of fifty thousand dollars ($50,000) on a bond form approved by the commission; and (ii) New motorcycle dealers, new all-terrain vehicle dealers, new low speed vehicle dealers, and motor vehicle lessors, shall also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission.

(i) New motor vehicle dealers, must also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of fifty thousand dollars ($50,000) on a bond form approved by the commission; and

(ii) New motorcycle dealers, new all-terrain vehicle dealers, new low speed vehicle dealers, and motor vehicle lessors, shall also be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission.

(B) In each instance that a branch license is applied for, each application shall be accompanied by the filing with the commission of a corporate surety bond in the penal sum of twenty-five thousand dollars ($25,000) on a bond form approved by the commission.

(C) Motor vehicle dealers shall also provide proof of liability insurance coverage on all vehicles to be offered for sale in an amount equal to or greater than the amount required by the Motor Vehicle Safety Responsibility Act, § 27-19-101 et seq.

(2) The bond shall be in effect upon the applicant's being licensed and shall be conditioned upon the applicant's complying with the provisions of this chapter.

(3) The bond shall be an indemnity for any loss sustained by any person by reason of the acts of the person bonded when those acts constitute grounds for the suspension or revocation of his or her license.

(4) The bond shall be executed in the name of the State of Arkansas for the benefit of any aggrieved party.

(5) The aggregate liability of the surety for all claimants, regardless of the number of years this bond is in force or has been in effect, shall not exceed the amount of the bond.

(6) The proceeds of the bond shall be paid upon receipt by the commission of a final judgment from an Arkansas court of competent jurisdiction against the principal and in favor of an aggrieved party.

(d) (1) In addition to the provisions of subsections (a)-(c) of this section, applications for licenses as motor vehicle dealers in new motor vehicles must also be accompanied by the filing with the commission of a bona fide contract or franchise then in effect between the applicant and a manufacturer or distributor of the new motor vehicles proposed to be dealt in. (2) However, if the contract or franchise has already been filed with the commission in connection with a previous application made by the applicant, the applicant, in lieu of again filing the contract or franchise, shall identify the contract or franchise by appropriate reference and file all revisions and additions, if any, which have been made to the contract or franchise.

(1) In addition to the provisions of subsections (a)-(c) of this section, applications for licenses as motor vehicle dealers in new motor vehicles must also be accompanied by the filing with the commission of a bona fide contract or franchise then in effect between the applicant and a manufacturer or distributor of the new motor vehicles proposed to be dealt in.

(2) However, if the contract or franchise has already been filed with the commission in connection with a previous application made by the applicant, the applicant, in lieu of again filing the contract or franchise, shall identify the contract or franchise by appropriate reference and file all revisions and additions, if any, which have been made to the contract or franchise.

(e) The applicant for a license as a new motor vehicle dealer shall furnish satisfactory evidence that the applicant: (1) Maintains adequate space in the building or structure wherein the applicant's established business is conducted for the display of new motor vehicles or will have the facilities within a reasonable time after receiving a license; (2) Has or will have adequate facilities in the building or structure to perform repair and service work on motor vehicles and adequate space for storage of new parts and accessories for the motor vehicles; and (3) Will perform repair and warranty services on a motor vehicle at the licensed location.

(1) Maintains adequate space in the building or structure wherein the applicant's established business is conducted for the display of new motor vehicles or will have the facilities within a reasonable time after receiving a license;

(2) Has or will have adequate facilities in the building or structure to perform repair and service work on motor vehicles and adequate space for storage of new parts and accessories for the motor vehicles; and

(3) Will perform repair and warranty services on a motor vehicle at the licensed location.

(f) (1) Every licensed dealer shall maintain for three (3) years after the date of purchase records of each vehicle transaction to which the dealer was a party. (2) Dealers shall maintain copies of all documents executed in connection with any transaction, which may include bills of sale, titles, odometer statements, invoices, affidavits of alteration, and reassignments, and shall be open to inspection by the Executive Director of the Arkansas Motor Vehicle Commission or a commission representative acting in an official capacity during reasonable business hours and upon execution of a subpoena.

(1) Every licensed dealer shall maintain for three (3) years after the date of purchase records of each vehicle transaction to which the dealer was a party.

(2) Dealers shall maintain copies of all documents executed in connection with any transaction, which may include bills of sale, titles, odometer statements, invoices, affidavits of alteration, and reassignments, and shall be open to inspection by the Executive Director of the Arkansas Motor Vehicle Commission or a commission representative acting in an official capacity during reasonable business hours and upon execution of a subpoena.

(g) (1) The licensee applying for a branch license shall not utilize any portion of a franchise name or product nameplates. (2) A licensee applying for a branch license shall remain in the relevant market area, as defined in the franchise or selling agreement approved by the franchiser and franchisee and on file in the commission office or as defined in this chapter pertaining to relevant market area, whichever is greater.

(1) The licensee applying for a branch license shall not utilize any portion of a franchise name or product nameplates.

(2) A licensee applying for a branch license shall remain in the relevant market area, as defined in the franchise or selling agreement approved by the franchiser and franchisee and on file in the commission office or as defined in this chapter pertaining to relevant market area, whichever is greater.

Amended by Act 2013, No. 561,§ 4, eff. 8/16/2013.

Acts 1975, No. 388, § 5; 1985, No. 1032, § 3; 1985, No. 1058, § 3; A.S.A. 1947, § 75-2305; Acts 1995, No. 568, § 5; 1999, No. 1042, § 3; 2001, No. 1053, § 3; 2009, No. 756, § 7.
Ark. Code Ann. § 23-67-213 — AR Code / Title 23 / Chapter 67 / Subchapter 2 / Section 23-67-213
Disapproval of rates
Status: in_force

(a) Basis of Disapproval. (1) The Insurance Commissioner may disapprove a rate without a hearing if the insurer fails to file the information required pursuant to this chapter. (2) The commissioner may disapprove a rate without a hearing if he or she finds that the rate is excessive, inadequate, or unfairly discriminatory under § 23-67-208(b) , § 23-67-208(c) , or § 23-67-208(d) . (b) Disapproval Procedures. (1) If the commissioner disapproves a rate without a hearing, he or she shall send a notice to the insurer or rating organization stating wherein the filing is deficient in terms of the criteria in § 23-67-209 . An insurer or rating organization aggrieved by any order or decision of the commissioner made without a hearing, within thirty (30) days after notice to the insurer or organization, may make written request to the commissioner for a hearing thereon. The commissioner shall hear the party or parties within twenty (20) days after receipt of the request and shall give not less than ten (10) days' written notice of the time and place of the hearing. The hearing shall be concluded within fifteen (15) days from its commencement, except that the commissioner, for good cause shown and with notice to the interested parties, may grant additional time, not to exceed thirty (30) days. Within fifteen (15) days after the hearing, the commissioner shall affirm, reverse, or modify his or her previous action, specifying his or her reasons therefor. Pending the hearing and decision thereon, the commissioner may suspend or postpone the effective date of his or her previous action. (2) For rates in effect pursuant to §§ 23-67-211 and 23-67-212 , if the commissioner finds after a hearing that a rate is not in compliance with §§ 23-67-208 - 23-67-210 , the commissioner shall issue an order specifying in what respects it so fails and stating when, within a reasonable period thereafter, the rates shall be deemed no longer effective. (c) Consent to Excessive Rate. Upon written consent of the insured stating his or her reasons therefor, a rate in excess of that provided by an otherwise applicable filing may be used on a specific risk. The "consent-to-rate" shall be on a form signed by the insured that includes a statement that the insured consents to a rate in excess of the filed rate. This form shall remain on file with the producing agent or broker. Acts 1987, No. 959, § 8; 1999, No. 458, § 2.

(a) Basis of Disapproval. (1) The Insurance Commissioner may disapprove a rate without a hearing if the insurer fails to file the information required pursuant to this chapter. (2) The commissioner may disapprove a rate without a hearing if he or she finds that the rate is excessive, inadequate, or unfairly discriminatory under § 23-67-208(b) , § 23-67-208(c) , or § 23-67-208(d) .

(1) The Insurance Commissioner may disapprove a rate without a hearing if the insurer fails to file the information required pursuant to this chapter.

(2) The commissioner may disapprove a rate without a hearing if he or she finds that the rate is excessive, inadequate, or unfairly discriminatory under § 23-67-208(b) , § 23-67-208(c) , or § 23-67-208(d) .

(b) Disapproval Procedures. (1) If the commissioner disapproves a rate without a hearing, he or she shall send a notice to the insurer or rating organization stating wherein the filing is deficient in terms of the criteria in § 23-67-209 . An insurer or rating organization aggrieved by any order or decision of the commissioner made without a hearing, within thirty (30) days after notice to the insurer or organization, may make written request to the commissioner for a hearing thereon. The commissioner shall hear the party or parties within twenty (20) days after receipt of the request and shall give not less than ten (10) days' written notice of the time and place of the hearing. The hearing shall be concluded within fifteen (15) days from its commencement, except that the commissioner, for good cause shown and with notice to the interested parties, may grant additional time, not to exceed thirty (30) days. Within fifteen (15) days after the hearing, the commissioner shall affirm, reverse, or modify his or her previous action, specifying his or her reasons therefor. Pending the hearing and decision thereon, the commissioner may suspend or postpone the effective date of his or her previous action. (2) For rates in effect pursuant to §§ 23-67-211 and 23-67-212 , if the commissioner finds after a hearing that a rate is not in compliance with §§ 23-67-208 - 23-67-210 , the commissioner shall issue an order specifying in what respects it so fails and stating when, within a reasonable period thereafter, the rates shall be deemed no longer effective.

(1) If the commissioner disapproves a rate without a hearing, he or she shall send a notice to the insurer or rating organization stating wherein the filing is deficient in terms of the criteria in § 23-67-209 . An insurer or rating organization aggrieved by any order or decision of the commissioner made without a hearing, within thirty (30) days after notice to the insurer or organization, may make written request to the commissioner for a hearing thereon. The commissioner shall hear the party or parties within twenty (20) days after receipt of the request and shall give not less than ten (10) days' written notice of the time and place of the hearing. The hearing shall be concluded within fifteen (15) days from its commencement, except that the commissioner, for good cause shown and with notice to the interested parties, may grant additional time, not to exceed thirty (30) days. Within fifteen (15) days after the hearing, the commissioner shall affirm, reverse, or modify his or her previous action, specifying his or her reasons therefor. Pending the hearing and decision thereon, the commissioner may suspend or postpone the effective date of his or her previous action.

(2) For rates in effect pursuant to §§ 23-67-211 and 23-67-212 , if the commissioner finds after a hearing that a rate is not in compliance with §§ 23-67-208 - 23-67-210 , the commissioner shall issue an order specifying in what respects it so fails and stating when, within a reasonable period thereafter, the rates shall be deemed no longer effective.

(c) Consent to Excessive Rate. Upon written consent of the insured stating his or her reasons therefor, a rate in excess of that provided by an otherwise applicable filing may be used on a specific risk. The "consent-to-rate" shall be on a form signed by the insured that includes a statement that the insured consents to a rate in excess of the filed rate. This form shall remain on file with the producing agent or broker.

Acts 1987, No. 959, § 8; 1999, No. 458, § 2.
Ark. Code Ann. § 23-4-907 — AR Code / Title 23 / Chapter 4 / Subchapter 9 / Section 23-4-907
Commission's jurisdiction not affected
Status: in_force

Sections 23-4-902 , 23-4-903 , 23-4-905 , and 23-4-906 apply only to rates and charges and shall have no effect on the Arkansas Public Service Commission's jurisdiction over a co-op as otherwise provided by law. Acts 1987, No. 821, § 6.

Sections 23-4-902 , 23-4-903 , 23-4-905 , and 23-4-906 apply only to rates and charges and shall have no effect on the Arkansas Public Service Commission's jurisdiction over a co-op as otherwise provided by law.

Acts 1987, No. 821, § 6.
Ark. Code Ann. § 23-63-1806 — AR Code / Title 23 / Chapter 63 / Subchapter 18 / Section 23-63-1806
Rules
Status: in_force

The Insurance Commissioner shall adopt rules by January 1, 2006, to ensure compliance with this subchapter. Amended by Act 2019, No. 315,§ 2646, eff. 7/24/2019. Acts 2005, No. 422, § 1.

The Insurance Commissioner shall adopt rules by January 1, 2006, to ensure compliance with this subchapter.

Amended by Act 2019, No. 315,§ 2646, eff. 7/24/2019.

Acts 2005, No. 422, § 1.
Ark. Code Ann. § 23-76-108 — AR Code / Title 23 / Chapter 76 / Section 23-76-108
Issuance of certificate of authority
Status: in_force

(a) Upon receipt of an application for issuance of a certificate of authority, the Insurance Commissioner shall determine whether the applicant furnishes or proposes to furnish adequate and accessible healthcare services for its healthcare plans subject to the requirements or rules of the State Insurance Department. (b) The commissioner shall issue a certificate of authority to any person filing an application pursuant to § 23-76-107 within sixty (60) days of receipt of the application if the commissioner is satisfied that: (1) The persons responsible for the conduct of the affairs of the applicant are competent, trustworthy, and possess good reputations; (2) The health maintenance organization's proposed plan of operation meets the requirements of subsection (a) of this section; (3) The healthcare plan will allow the health maintenance organization effectively to provide or arrange for the provision of basic healthcare services through insurance or otherwise on a prepaid basis, subject to reasonable requirements for copayments; (4) The health maintenance organization is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees; (5) The healthcare plan's arrangements for healthcare services and the schedule of charges for use therewith are financially sound and reasonable; (6) Any agreements with insurers, hospitals, medical service corporations, governmental entities, or any other organizations for insuring the payment of the cost of healthcare services or the provision for automatic applicability of alternative coverage in the event of discontinuance of the healthcare plan are reasonable and adequate; (7) Agreements with providers for the provision of healthcare services are reasonable and adequate; (8) The enrollees will be afforded an opportunity to participate in matters of policy and operation pursuant to § 23-76-110 ; (9) Nothing in the proposed method of operation, as shown by the information submitted pursuant to § 23-76-107 or by independent investigation, is contrary to the public interest; and (10) [Repealed.] (11) The applicant has paid-in capital in an amount not less than one hundred thousand dollars ($100,000) and additional working capital or surplus funds in an amount deemed by the commissioner to be adequate in relation to the proposed plan of operation. (c) A certificate of authority shall be denied by the commissioner only after compliance with the requirements of § 23-76-126 . Amended by Act 2023, No. 469,§ 9, eff. 8/1/2023. Amended by Act 2013, No. 1433,§ 3, eff. 8/16/2013. Acts 1975, No. 454, § 4; 1979, No. 942, § 16; A.S.A. 1947, § 66-5204; Acts 1987, No. 456, § 23.

(a) Upon receipt of an application for issuance of a certificate of authority, the Insurance Commissioner shall determine whether the applicant furnishes or proposes to furnish adequate and accessible healthcare services for its healthcare plans subject to the requirements or rules of the State Insurance Department.

(b) The commissioner shall issue a certificate of authority to any person filing an application pursuant to § 23-76-107 within sixty (60) days of receipt of the application if the commissioner is satisfied that: (1) The persons responsible for the conduct of the affairs of the applicant are competent, trustworthy, and possess good reputations; (2) The health maintenance organization's proposed plan of operation meets the requirements of subsection (a) of this section; (3) The healthcare plan will allow the health maintenance organization effectively to provide or arrange for the provision of basic healthcare services through insurance or otherwise on a prepaid basis, subject to reasonable requirements for copayments; (4) The health maintenance organization is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees; (5) The healthcare plan's arrangements for healthcare services and the schedule of charges for use therewith are financially sound and reasonable; (6) Any agreements with insurers, hospitals, medical service corporations, governmental entities, or any other organizations for insuring the payment of the cost of healthcare services or the provision for automatic applicability of alternative coverage in the event of discontinuance of the healthcare plan are reasonable and adequate; (7) Agreements with providers for the provision of healthcare services are reasonable and adequate; (8) The enrollees will be afforded an opportunity to participate in matters of policy and operation pursuant to § 23-76-110 ; (9) Nothing in the proposed method of operation, as shown by the information submitted pursuant to § 23-76-107 or by independent investigation, is contrary to the public interest; and (10) [Repealed.] (11) The applicant has paid-in capital in an amount not less than one hundred thousand dollars ($100,000) and additional working capital or surplus funds in an amount deemed by the commissioner to be adequate in relation to the proposed plan of operation.

(1) The persons responsible for the conduct of the affairs of the applicant are competent, trustworthy, and possess good reputations;

(2) The health maintenance organization's proposed plan of operation meets the requirements of subsection (a) of this section;

(3) The healthcare plan will allow the health maintenance organization effectively to provide or arrange for the provision of basic healthcare services through insurance or otherwise on a prepaid basis, subject to reasonable requirements for copayments;

(4) The health maintenance organization is financially responsible and may reasonably be expected to meet its obligations to enrollees and prospective enrollees;

(5) The healthcare plan's arrangements for healthcare services and the schedule of charges for use therewith are financially sound and reasonable;

(6) Any agreements with insurers, hospitals, medical service corporations, governmental entities, or any other organizations for insuring the payment of the cost of healthcare services or the provision for automatic applicability of alternative coverage in the event of discontinuance of the healthcare plan are reasonable and adequate;

(7) Agreements with providers for the provision of healthcare services are reasonable and adequate;

(8) The enrollees will be afforded an opportunity to participate in matters of policy and operation pursuant to § 23-76-110 ;

(9) Nothing in the proposed method of operation, as shown by the information submitted pursuant to § 23-76-107 or by independent investigation, is contrary to the public interest; and

(10) [Repealed.]

(11) The applicant has paid-in capital in an amount not less than one hundred thousand dollars ($100,000) and additional working capital or surplus funds in an amount deemed by the commissioner to be adequate in relation to the proposed plan of operation.

(c) A certificate of authority shall be denied by the commissioner only after compliance with the requirements of § 23-76-126 .

Amended by Act 2023, No. 469,§ 9, eff. 8/1/2023.

Amended by Act 2013, No. 1433,§ 3, eff. 8/16/2013.

Acts 1975, No. 454, § 4; 1979, No. 942, § 16; A.S.A. 1947, § 66-5204; Acts 1987, No. 456, § 23.
Ark. Code Ann. § 23-18-403 — AR Code / Title 23 / Chapter 18 / Subchapter 4 / Section 23-18-403
Application for permit to use power - Compensation
Status: in_force

(a) When a person or corporation is ready to proceed with the construction of his or her or its dam, he or she or it shall present to the Arkansas Public Service Commission his or her or its application for a permit to use the power. (b) Upon a hearing of the application, the commission may grant to the person or corporation a permit to erect the dam and use the power, and the commission shall fix a minimum and maximum compensation per horsepower to be received by the corporation for the use of the power so generated. Acts 1927, No. 121, § 4; Pope's Dig., § 14476; A.S.A. 1947, § 73-2004.

(a) When a person or corporation is ready to proceed with the construction of his or her or its dam, he or she or it shall present to the Arkansas Public Service Commission his or her or its application for a permit to use the power.

(b) Upon a hearing of the application, the commission may grant to the person or corporation a permit to erect the dam and use the power, and the commission shall fix a minimum and maximum compensation per horsepower to be received by the corporation for the use of the power so generated.

Acts 1927, No. 121, § 4; Pope's Dig., § 14476; A.S.A. 1947, § 73-2004.
Ark. Code Ann. § 23-55-806 — AR Code / Title 23 / Chapter 55 / Section 23-55-806
Criminal penalties
Status: in_force

(a) A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this chapter, that intentionally makes a false entry or omits a material entry in such a record, or violates any rule promulgated or order issued hereunder is guilty of a Class B felony. (b) A person that knowingly engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives more than $500 in compensation within a 30-day period from this activity is guilty of a Class B felony. (c) A person that knowingly engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives no more than $500 in compensation within a 30-day period from this activity is guilty of a Class A misdemeanor. Acts 2007, No. 1595, § 1.

(a) A person that intentionally makes a false statement, misrepresentation, or false certification in a record filed or required to be maintained under this chapter, that intentionally makes a false entry or omits a material entry in such a record, or violates any rule promulgated or order issued hereunder is guilty of a Class B felony.

(b) A person that knowingly engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives more than $500 in compensation within a 30-day period from this activity is guilty of a Class B felony.

(c) A person that knowingly engages in an activity for which a license is required under this chapter without being licensed under this chapter and who receives no more than $500 in compensation within a 30-day period from this activity is guilty of a Class A misdemeanor.

Acts 2007, No. 1595, § 1.
Ark. Code Ann. § 23-99-1702 — AR Code / Title 23 / Chapter 99 / Subchapter 17 / Section 23-99-1702
Definitions
Status: in_force

As used in this subchapter: (1) "Air ambulance" means an aircraft, fixed or rotary wing, utilized for on-scene responses or transports licensed by the Department of Health; (2) "Air ambulance services" means those services authorized and licensed by the department to provide care and air transportation by air ambulance of subscribers; (3) (A) "Ambulance" means a vehicle used for transporting any person by stretcher or gurney upon the streets or highways of Arkansas, excluding vehicles intended solely for personal use by immediate family members. (B) "Ambulance" does not include nonemergency transportation vehicles that may accommodate an individual in an upright position or Fowler's position while in a wheelchair without the aid of emergency medical services personnel; (4) "Ambulance provider" means an entity that provides transportation and emergency medical services to a patient; (5) "Ambulance services" means services authorized and licensed by the department to provide care and transportation of patients upon the streets and highways of Arkansas; (6) "Contracting entity" means: (A) A healthcare insurer or a subcontractor, affiliate, or other entity that contracts directly or indirectly with an ambulance provider for the delivery of ambulance services to subscribers; or (B) A transportation benefit manager or a subcontractor, affiliate, or other entity that contracts directly or indirectly with an ambulance provider for the delivery of ambulance services to subscribers; (7) "Emergency medical services" means: (A) The transportation and medical care provided to the ill or injured before arrival at a medical facility by licensed emergency medical services personnel or other healthcare provider; (B) Continuation of the initial emergency care within a medical facility subject to the approval of the medical staff and governing board of that medical facility; and (C) Integrated medical care in emergency and nonurgent settings with the oversight of a physician; (8) (A) "Emergency medical services personnel" means individuals licensed by the department at any level established by the rules adopted by the State Board of Health under the Emergency Medical Services Act, § 20-13-201 et seq., and authorized to perform the services stated in the rules. (B) "Emergency medical services personnel" includes without limitation: (i) Emergency medical technicians; (ii) Advanced emergency medical technicians; (iii) Paramedics; (iv) Emergency medical services instructors; and (v) Emergency medical services instructor trainers; (9) (A) "Health benefit plan" means a plan, policy, contract, certificate, agreement, or other evidence of coverage for healthcare services offered, issued, renewed, or extended in this state by a healthcare insurer, including emergency medical services. (B) "Health benefit plan" includes nonfederal governmental plans as defined in 29 U.S.C. § 1002(32) , as it existed on January 1, 2023. (C) "Health benefit plan" does not include: (i) A disability income plan; (ii) A credit insurance plan; (iii) Insurance coverage issued as a supplement to liability insurance; (iv) A medical payment under automobile or homeowners insurance plans; (v) A health benefit plan provided under Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., or the Public Employee Workers' Compensation Act, § 21-5-601 et seq.; (vi) A plan that provides only indemnity for hospital confinement; (vii) An accident-only plan; (viii) A specified disease plan; (ix) A long-term-care-only plan; (x) A dental-only plan; (xi) A vision-only plan; (xii) Medicaid; or (xiii) Any state or local governmental employee plan; (10) (A) "Healthcare insurer" means an entity that is subject to state insurance regulation and provides coverage for health benefits in this state. (B) "Healthcare insurer" includes: (i) An insurance company; (ii) A health maintenance organization; (iii) A hospital and medical service corporation; (iv) A risk-based provider organization; and (v) A sponsor of a nonfederal self-funded governmental plan. (C) "Healthcare insurer" does not include: (i) Medicaid; or (ii) Any entity that administers any state or local governmental employee plan; (11) "Medicaid" means the state and federal medical assistance program established by Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq.; (12) "Medical facility" means a hospital, medical clinic, physician's office, nursing home, or other healthcare facility; (13) (A) "Prior authorization" means the process by which a transportation benefit manager determines the medical necessity of otherwise covered ambulance services before ambulance services are rendered, including without limitation preadmission review, pretreatment review, utilization review, case management, and fail first protocol. (B) "Prior authorization" may include the requirement that a subscriber, healthcare provider, or ambulance provider notify the health insurer or transportation benefit manager of the subscriber's intent to receive ambulance services before ambulance services are provided; (14) (A) "Subscriber" means an individual eligible to receive coverage of ambulance services by a healthcare insurer under a health benefit plan. (B) "Subscriber" includes a subscriber's legally authorized representative; and (15) (A) "Transportation benefit manager" means an individual or entity that assumes responsibility for all administrative tasks associated with the ambulance services offered by a healthcare insurer, including without limitation utilization management, determination of appropriate mode of transport, direction of missions, and invoice processing, and performs prior authorization for at least one (1) of the following: (i) A healthcare insurer; (ii) A preferred provider organization or health maintenance organization; or (iii) Any other individual or entity that provides, offers to provide, or administers hospital, outpatient, medical, or other health benefits to a person treated by a healthcare provider in this state under a policy, health benefit plan, or contract. (B) A healthcare insurer is a transportation benefit manager if the healthcare insurer performs prior authorization. (C) "Transportation benefit manager" does not include an insurer of automobile, homeowners, or casualty and commercial liability insurance or the insurer's employees, agents, or contractors. Added by Act 2023, No. 578,§ 1, eff. 8/1/2023.

As used in this subchapter:

(1) "Air ambulance" means an aircraft, fixed or rotary wing, utilized for on-scene responses or transports licensed by the Department of Health;

(2) "Air ambulance services" means those services authorized and licensed by the department to provide care and air transportation by air ambulance of subscribers;

(3) (A) "Ambulance" means a vehicle used for transporting any person by stretcher or gurney upon the streets or highways of Arkansas, excluding vehicles intended solely for personal use by immediate family members. (B) "Ambulance" does not include nonemergency transportation vehicles that may accommodate an individual in an upright position or Fowler's position while in a wheelchair without the aid of emergency medical services personnel;

(A) "Ambulance" means a vehicle used for transporting any person by stretcher or gurney upon the streets or highways of Arkansas, excluding vehicles intended solely for personal use by immediate family members.

(B) "Ambulance" does not include nonemergency transportation vehicles that may accommodate an individual in an upright position or Fowler's position while in a wheelchair without the aid of emergency medical services personnel;

(4) "Ambulance provider" means an entity that provides transportation and emergency medical services to a patient;

(5) "Ambulance services" means services authorized and licensed by the department to provide care and transportation of patients upon the streets and highways of Arkansas;

(6) "Contracting entity" means: (A) A healthcare insurer or a subcontractor, affiliate, or other entity that contracts directly or indirectly with an ambulance provider for the delivery of ambulance services to subscribers; or (B) A transportation benefit manager or a subcontractor, affiliate, or other entity that contracts directly or indirectly with an ambulance provider for the delivery of ambulance services to subscribers;

(A) A healthcare insurer or a subcontractor, affiliate, or other entity that contracts directly or indirectly with an ambulance provider for the delivery of ambulance services to subscribers; or

(B) A transportation benefit manager or a subcontractor, affiliate, or other entity that contracts directly or indirectly with an ambulance provider for the delivery of ambulance services to subscribers;

(7) "Emergency medical services" means: (A) The transportation and medical care provided to the ill or injured before arrival at a medical facility by licensed emergency medical services personnel or other healthcare provider; (B) Continuation of the initial emergency care within a medical facility subject to the approval of the medical staff and governing board of that medical facility; and (C) Integrated medical care in emergency and nonurgent settings with the oversight of a physician;

(A) The transportation and medical care provided to the ill or injured before arrival at a medical facility by licensed emergency medical services personnel or other healthcare provider;

(B) Continuation of the initial emergency care within a medical facility subject to the approval of the medical staff and governing board of that medical facility; and

(C) Integrated medical care in emergency and nonurgent settings with the oversight of a physician;

(8) (A) "Emergency medical services personnel" means individuals licensed by the department at any level established by the rules adopted by the State Board of Health under the Emergency Medical Services Act, § 20-13-201 et seq., and authorized to perform the services stated in the rules. (B) "Emergency medical services personnel" includes without limitation: (i) Emergency medical technicians; (ii) Advanced emergency medical technicians; (iii) Paramedics; (iv) Emergency medical services instructors; and (v) Emergency medical services instructor trainers;

(A) "Emergency medical services personnel" means individuals licensed by the department at any level established by the rules adopted by the State Board of Health under the Emergency Medical Services Act, § 20-13-201 et seq., and authorized to perform the services stated in the rules.

(B) "Emergency medical services personnel" includes without limitation: (i) Emergency medical technicians; (ii) Advanced emergency medical technicians; (iii) Paramedics; (iv) Emergency medical services instructors; and (v) Emergency medical services instructor trainers;

(i) Emergency medical technicians;

(ii) Advanced emergency medical technicians;

(iii) Paramedics;

(iv) Emergency medical services instructors; and

(v) Emergency medical services instructor trainers;

(9) (A) "Health benefit plan" means a plan, policy, contract, certificate, agreement, or other evidence of coverage for healthcare services offered, issued, renewed, or extended in this state by a healthcare insurer, including emergency medical services. (B) "Health benefit plan" includes nonfederal governmental plans as defined in 29 U.S.C. § 1002(32) , as it existed on January 1, 2023. (C) "Health benefit plan" does not include: (i) A disability income plan; (ii) A credit insurance plan; (iii) Insurance coverage issued as a supplement to liability insurance; (iv) A medical payment under automobile or homeowners insurance plans; (v) A health benefit plan provided under Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., or the Public Employee Workers' Compensation Act, § 21-5-601 et seq.; (vi) A plan that provides only indemnity for hospital confinement; (vii) An accident-only plan; (viii) A specified disease plan; (ix) A long-term-care-only plan; (x) A dental-only plan; (xi) A vision-only plan; (xii) Medicaid; or (xiii) Any state or local governmental employee plan;

(A) "Health benefit plan" means a plan, policy, contract, certificate, agreement, or other evidence of coverage for healthcare services offered, issued, renewed, or extended in this state by a healthcare insurer, including emergency medical services.

(B) "Health benefit plan" includes nonfederal governmental plans as defined in 29 U.S.C. § 1002(32) , as it existed on January 1, 2023.

(C) "Health benefit plan" does not include: (i) A disability income plan; (ii) A credit insurance plan; (iii) Insurance coverage issued as a supplement to liability insurance; (iv) A medical payment under automobile or homeowners insurance plans; (v) A health benefit plan provided under Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., or the Public Employee Workers' Compensation Act, § 21-5-601 et seq.; (vi) A plan that provides only indemnity for hospital confinement; (vii) An accident-only plan; (viii) A specified disease plan; (ix) A long-term-care-only plan; (x) A dental-only plan; (xi) A vision-only plan; (xii) Medicaid; or (xiii) Any state or local governmental employee plan;

(i) A disability income plan;

(ii) A credit insurance plan;

(iii) Insurance coverage issued as a supplement to liability insurance;

(iv) A medical payment under automobile or homeowners insurance plans;

(v) A health benefit plan provided under Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., or the Public Employee Workers' Compensation Act, § 21-5-601 et seq.;

(vi) A plan that provides only indemnity for hospital confinement;

(vii) An accident-only plan;

(viii) A specified disease plan;

(ix) A long-term-care-only plan;

(x) A dental-only plan;

(xi) A vision-only plan;

(xii) Medicaid; or

(xiii) Any state or local governmental employee plan;

(10) (A) "Healthcare insurer" means an entity that is subject to state insurance regulation and provides coverage for health benefits in this state. (B) "Healthcare insurer" includes: (i) An insurance company; (ii) A health maintenance organization; (iii) A hospital and medical service corporation; (iv) A risk-based provider organization; and (v) A sponsor of a nonfederal self-funded governmental plan. (C) "Healthcare insurer" does not include: (i) Medicaid; or (ii) Any entity that administers any state or local governmental employee plan;

(A) "Healthcare insurer" means an entity that is subject to state insurance regulation and provides coverage for health benefits in this state.

(B) "Healthcare insurer" includes: (i) An insurance company; (ii) A health maintenance organization; (iii) A hospital and medical service corporation; (iv) A risk-based provider organization; and (v) A sponsor of a nonfederal self-funded governmental plan.

(i) An insurance company;

(ii) A health maintenance organization;

(iii) A hospital and medical service corporation;

(iv) A risk-based provider organization; and

(v) A sponsor of a nonfederal self-funded governmental plan.

(C) "Healthcare insurer" does not include: (i) Medicaid; or (ii) Any entity that administers any state or local governmental employee plan;

(i) Medicaid; or

(ii) Any entity that administers any state or local governmental employee plan;

(11) "Medicaid" means the state and federal medical assistance program established by Title XIX of the Social Security Act, 42 U.S.C. § 1396 et seq.;

(12) "Medical facility" means a hospital, medical clinic, physician's office, nursing home, or other healthcare facility;

(13) (A) "Prior authorization" means the process by which a transportation benefit manager determines the medical necessity of otherwise covered ambulance services before ambulance services are rendered, including without limitation preadmission review, pretreatment review, utilization review, case management, and fail first protocol. (B) "Prior authorization" may include the requirement that a subscriber, healthcare provider, or ambulance provider notify the health insurer or transportation benefit manager of the subscriber's intent to receive ambulance services before ambulance services are provided;

(A) "Prior authorization" means the process by which a transportation benefit manager determines the medical necessity of otherwise covered ambulance services before ambulance services are rendered, including without limitation preadmission review, pretreatment review, utilization review, case management, and fail first protocol.

(B) "Prior authorization" may include the requirement that a subscriber, healthcare provider, or ambulance provider notify the health insurer or transportation benefit manager of the subscriber's intent to receive ambulance services before ambulance services are provided;

(14) (A) "Subscriber" means an individual eligible to receive coverage of ambulance services by a healthcare insurer under a health benefit plan. (B) "Subscriber" includes a subscriber's legally authorized representative; and

(A) "Subscriber" means an individual eligible to receive coverage of ambulance services by a healthcare insurer under a health benefit plan.

(B) "Subscriber" includes a subscriber's legally authorized representative; and

(15) (A) "Transportation benefit manager" means an individual or entity that assumes responsibility for all administrative tasks associated with the ambulance services offered by a healthcare insurer, including without limitation utilization management, determination of appropriate mode of transport, direction of missions, and invoice processing, and performs prior authorization for at least one (1) of the following: (i) A healthcare insurer; (ii) A preferred provider organization or health maintenance organization; or (iii) Any other individual or entity that provides, offers to provide, or administers hospital, outpatient, medical, or other health benefits to a person treated by a healthcare provider in this state under a policy, health benefit plan, or contract. (B) A healthcare insurer is a transportation benefit manager if the healthcare insurer performs prior authorization. (C) "Transportation benefit manager" does not include an insurer of automobile, homeowners, or casualty and commercial liability insurance or the insurer's employees, agents, or contractors.

(A) "Transportation benefit manager" means an individual or entity that assumes responsibility for all administrative tasks associated with the ambulance services offered by a healthcare insurer, including without limitation utilization management, determination of appropriate mode of transport, direction of missions, and invoice processing, and performs prior authorization for at least one (1) of the following: (i) A healthcare insurer; (ii) A preferred provider organization or health maintenance organization; or (iii) Any other individual or entity that provides, offers to provide, or administers hospital, outpatient, medical, or other health benefits to a person treated by a healthcare provider in this state under a policy, health benefit plan, or contract.

(i) A healthcare insurer;

(ii) A preferred provider organization or health maintenance organization; or

(iii) Any other individual or entity that provides, offers to provide, or administers hospital, outpatient, medical, or other health benefits to a person treated by a healthcare provider in this state under a policy, health benefit plan, or contract.

(B) A healthcare insurer is a transportation benefit manager if the healthcare insurer performs prior authorization.

(C) "Transportation benefit manager" does not include an insurer of automobile, homeowners, or casualty and commercial liability insurance or the insurer's employees, agents, or contractors.

Added by Act 2023, No. 578,§ 1, eff. 8/1/2023.
Ark. Code Ann. § 23-42-106 — AR Code / Title 23 / Chapter 42 / Subchapter 1 / Section 23-42-106
Civil liability - Definitions
Status: in_force

(a) (1) A person is liable to a buyer of a security if the person offers or sells the security: (A) In violation of § 23-42-212(b) , § 23-42-301 , or § 23-42-501(1) or (2) , a rule or order of the Securities Commissioner under § 23-42-502 which requires the affirmative approval of sales literature before it is used, or any condition imposed under § 23-42-403(d) , § 23-42-404(g) , or § 23-42-404(i) ; or (B) By means of an untrue statement of a material fact or a failure to state a material fact necessary in order to make the statement made, in the light of circumstances under which it is made, not misleading, the buyer not knowing of the untruth or omission, and the seller not sustaining the burden of proof that the seller did not know, and in the exercise of reasonable care could not have known, of the untruth or omission. (2) In a successful action under subdivision (a)(1) of this section, the buyer may recover costs and reasonable attorney's fees plus: (A) Upon tender of the security, the consideration paid for the security and interest at six percent (6%) per year from the date of payment, less the amount of any income received from owning the security; or (B) (i) Damages if the buyer no longer owns the security. (ii) Damages are the amount that would be recoverable upon a tender of the security less the value of the security when the buyer disposed of the security plus interest at six percent (6%) per year from the date of disposition of the security. (b) (1) A person is liable to a seller of a security if the person buys the security: (A) In violation of § 23-42-301 , § 23-42-307 , § 23-42-507 , or § 23-42-508 ; or (B) By means of an untrue statement of a material fact or a failure to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading, the seller not knowing of the untruth or omission, and the buyer not sustaining the burden of proof that the buyer did not know, and in the exercise of reasonable care could not have known, of the untruth or omission. (2) (A) In a successful action under subdivision (b)(1) of this section, the seller may recover costs and reasonable attorney's fees plus: (i) Upon tender of the consideration the seller received in a transaction under subdivision (b)(1) of this section: (a) The security; or (b) The security plus any income or other distributions in cash or other property received directly or indirectly by the purchaser; or (ii) (a) Damages together with interest at six percent (6%) per year from the date of purchase. (b) Damages may include out-of-pocket losses or losses for the benefit of the bargain. (B) A tender made under subdivision (b)(2)(A)(i) of this section only requires notice in writing of the present ability to pay the amount tendered and willingness to take the security for the amount specified. (c) (1) A person that directly or indirectly receives consideration for providing investment advice to another party: (A) In violation of § 23-42-301 is liable to the other party for: (i) The consideration paid for the advice; (ii) Interest at the rate of six percent (6%) per year from the date of payment; (iii) Costs; and (iv) Reasonable attorney's fees; or (B) By employing a device, scheme, or artifice to defraud the other party or by engaging in an act, practice, or course of business that operates or would operate as a fraud or deceit upon the other party is liable to the other party for: (i) The consideration paid for the advice plus interest at the rate of six percent (6%) per year from the date of payment; (ii) Damages caused by the fraudulent or deceitful conduct less the amount of any income received as a result of the fraudulent or deceitful conduct; (iii) Costs; and (iv) Reasonable attorney's fees. (2) Subdivision (c)(1) of this section does not apply to a broker-dealer or its agents if: (A) The investment advice provided is solely incidental to transacting business as a broker-dealer; and (B) Special compensation is not paid for the investment advice. (d) (1) A secondary offender has joint and several liability with a right of contribution for the actions of a primary offender unless the secondary offender satisfies the burden of proving that the secondary offender did not know, and in the exercise of reasonable care could not have known, of the existence of the actions of the primary offender that give rise to liability under this section. (2) As used in subdivision (d)(1) of this section: (A) "Primary offender" means a person that is liable under subsection (a), subsection (b), or subsection (c) of this section; and (B) "Secondary offender" means: (i) A person that controls a primary offender; (ii) A partner, officer, or director of a primary offender and any other person occupying a similar status or performing a similar function with respect to the primary offender; (iii) An employee of a primary offender who materially aids in the actions of a primary offender that give rise to liability under this section; and (iv) A broker-dealer, agent, investment adviser, or investment adviser representative that materially aids in the actions of a primary offender that give rise to liability under this section. (e) A tender required by this section may be made at any time before entry of judgment. (f) Every cause of action under this section survives the death of a person who might have been a plaintiff or defendant. (g) A person may not sue under this section unless the action is instituted within three (3) years after the violation occurred. (h) A buyer shall not sue under this section: (1) If the buyer received a written offer, before suit and at a time when the buyer owned the security, to refund the consideration paid together with interest at six percent (6%) per year from the date of payment less the amount of any income received on the security, and the buyer failed to accept the offer within thirty (30) days of its receipt; or (2) If the buyer received such an offer before suit and at a time when the buyer did not own the security unless the buyer rejected the offer in writing within thirty (30) days of its receipt. (i) A person who has made or engaged in the performance of a contract in violation of this chapter or any rule or order of the commissioner, or who has acquired any purported right under the contract with knowledge of the facts by reason of which its making or performance was in violation may not sue on the contract. Amended by Act 2017, No. 668,§ 11, eff. 8/1/2017. Amended by Act 2017, No. 668,§ 10, eff. 8/1/2017. Amended by Act 2017, No. 668,§ 9, eff. 8/1/2017. Amended by Act 2017, No. 668,§ 8, eff. 8/1/2017. Amended by Act 2017, No. 668,§ 7, eff. 8/1/2017. Amended by Act 2013, No. 460,§ 4, eff. 8/16/2013. Acts 1959, No. 254, § 22; 1971, No. 131, § 6; 1973, No. 47, § 17; 1977, No. 493, §§ 14, 16; A.S.A. 1947, § 67-1256; Acts 1995, No. 845, § 2; 1997, No. 173, § 2; 1999, No. 1225, § 1.

(a) (1) A person is liable to a buyer of a security if the person offers or sells the security: (A) In violation of § 23-42-212(b) , § 23-42-301 , or § 23-42-501(1) or (2) , a rule or order of the Securities Commissioner under § 23-42-502 which requires the affirmative approval of sales literature before it is used, or any condition imposed under § 23-42-403(d) , § 23-42-404(g) , or § 23-42-404(i) ; or (B) By means of an untrue statement of a material fact or a failure to state a material fact necessary in order to make the statement made, in the light of circumstances under which it is made, not misleading, the buyer not knowing of the untruth or omission, and the seller not sustaining the burden of proof that the seller did not know, and in the exercise of reasonable care could not have known, of the untruth or omission. (2) In a successful action under subdivision (a)(1) of this section, the buyer may recover costs and reasonable attorney's fees plus: (A) Upon tender of the security, the consideration paid for the security and interest at six percent (6%) per year from the date of payment, less the amount of any income received from owning the security; or (B) (i) Damages if the buyer no longer owns the security. (ii) Damages are the amount that would be recoverable upon a tender of the security less the value of the security when the buyer disposed of the security plus interest at six percent (6%) per year from the date of disposition of the security.

(1) A person is liable to a buyer of a security if the person offers or sells the security: (A) In violation of § 23-42-212(b) , § 23-42-301 , or § 23-42-501(1) or (2) , a rule or order of the Securities Commissioner under § 23-42-502 which requires the affirmative approval of sales literature before it is used, or any condition imposed under § 23-42-403(d) , § 23-42-404(g) , or § 23-42-404(i) ; or (B) By means of an untrue statement of a material fact or a failure to state a material fact necessary in order to make the statement made, in the light of circumstances under which it is made, not misleading, the buyer not knowing of the untruth or omission, and the seller not sustaining the burden of proof that the seller did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.

(A) In violation of § 23-42-212(b) , § 23-42-301 , or § 23-42-501(1) or (2) , a rule or order of the Securities Commissioner under § 23-42-502 which requires the affirmative approval of sales literature before it is used, or any condition imposed under § 23-42-403(d) , § 23-42-404(g) , or § 23-42-404(i) ; or

(B) By means of an untrue statement of a material fact or a failure to state a material fact necessary in order to make the statement made, in the light of circumstances under which it is made, not misleading, the buyer not knowing of the untruth or omission, and the seller not sustaining the burden of proof that the seller did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.

(2) In a successful action under subdivision (a)(1) of this section, the buyer may recover costs and reasonable attorney's fees plus: (A) Upon tender of the security, the consideration paid for the security and interest at six percent (6%) per year from the date of payment, less the amount of any income received from owning the security; or (B) (i) Damages if the buyer no longer owns the security. (ii) Damages are the amount that would be recoverable upon a tender of the security less the value of the security when the buyer disposed of the security plus interest at six percent (6%) per year from the date of disposition of the security.

(A) Upon tender of the security, the consideration paid for the security and interest at six percent (6%) per year from the date of payment, less the amount of any income received from owning the security; or

(B) (i) Damages if the buyer no longer owns the security. (ii) Damages are the amount that would be recoverable upon a tender of the security less the value of the security when the buyer disposed of the security plus interest at six percent (6%) per year from the date of disposition of the security.

(i) Damages if the buyer no longer owns the security.

(ii) Damages are the amount that would be recoverable upon a tender of the security less the value of the security when the buyer disposed of the security plus interest at six percent (6%) per year from the date of disposition of the security.

(b) (1) A person is liable to a seller of a security if the person buys the security: (A) In violation of § 23-42-301 , § 23-42-307 , § 23-42-507 , or § 23-42-508 ; or (B) By means of an untrue statement of a material fact or a failure to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading, the seller not knowing of the untruth or omission, and the buyer not sustaining the burden of proof that the buyer did not know, and in the exercise of reasonable care could not have known, of the untruth or omission. (2) (A) In a successful action under subdivision (b)(1) of this section, the seller may recover costs and reasonable attorney's fees plus: (i) Upon tender of the consideration the seller received in a transaction under subdivision (b)(1) of this section: (a) The security; or (b) The security plus any income or other distributions in cash or other property received directly or indirectly by the purchaser; or (ii) (a) Damages together with interest at six percent (6%) per year from the date of purchase. (b) Damages may include out-of-pocket losses or losses for the benefit of the bargain. (B) A tender made under subdivision (b)(2)(A)(i) of this section only requires notice in writing of the present ability to pay the amount tendered and willingness to take the security for the amount specified.

(1) A person is liable to a seller of a security if the person buys the security: (A) In violation of § 23-42-301 , § 23-42-307 , § 23-42-507 , or § 23-42-508 ; or (B) By means of an untrue statement of a material fact or a failure to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading, the seller not knowing of the untruth or omission, and the buyer not sustaining the burden of proof that the buyer did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.

(A) In violation of § 23-42-301 , § 23-42-307 , § 23-42-507 , or § 23-42-508 ; or

(B) By means of an untrue statement of a material fact or a failure to state a material fact necessary in order to make the statement made, in light of the circumstances under which it is made, not misleading, the seller not knowing of the untruth or omission, and the buyer not sustaining the burden of proof that the buyer did not know, and in the exercise of reasonable care could not have known, of the untruth or omission.

(2) (A) In a successful action under subdivision (b)(1) of this section, the seller may recover costs and reasonable attorney's fees plus: (i) Upon tender of the consideration the seller received in a transaction under subdivision (b)(1) of this section: (a) The security; or (b) The security plus any income or other distributions in cash or other property received directly or indirectly by the purchaser; or (ii) (a) Damages together with interest at six percent (6%) per year from the date of purchase. (b) Damages may include out-of-pocket losses or losses for the benefit of the bargain. (B) A tender made under subdivision (b)(2)(A)(i) of this section only requires notice in writing of the present ability to pay the amount tendered and willingness to take the security for the amount specified.

(A) In a successful action under subdivision (b)(1) of this section, the seller may recover costs and reasonable attorney's fees plus: (i) Upon tender of the consideration the seller received in a transaction under subdivision (b)(1) of this section: (a) The security; or (b) The security plus any income or other distributions in cash or other property received directly or indirectly by the purchaser; or (ii) (a) Damages together with interest at six percent (6%) per year from the date of purchase. (b) Damages may include out-of-pocket losses or losses for the benefit of the bargain.

(i) Upon tender of the consideration the seller received in a transaction under subdivision (b)(1) of this section: (a) The security; or (b) The security plus any income or other distributions in cash or other property received directly or indirectly by the purchaser; or

(a) The security; or

(b) The security plus any income or other distributions in cash or other property received directly or indirectly by the purchaser; or

(ii) (a) Damages together with interest at six percent (6%) per year from the date of purchase. (b) Damages may include out-of-pocket losses or losses for the benefit of the bargain.

(a) Damages together with interest at six percent (6%) per year from the date of purchase.

(b) Damages may include out-of-pocket losses or losses for the benefit of the bargain.

(B) A tender made under subdivision (b)(2)(A)(i) of this section only requires notice in writing of the present ability to pay the amount tendered and willingness to take the security for the amount specified.

(c) (1) A person that directly or indirectly receives consideration for providing investment advice to another party: (A) In violation of § 23-42-301 is liable to the other party for: (i) The consideration paid for the advice; (ii) Interest at the rate of six percent (6%) per year from the date of payment; (iii) Costs; and (iv) Reasonable attorney's fees; or (B) By employing a device, scheme, or artifice to defraud the other party or by engaging in an act, practice, or course of business that operates or would operate as a fraud or deceit upon the other party is liable to the other party for: (i) The consideration paid for the advice plus interest at the rate of six percent (6%) per year from the date of payment; (ii) Damages caused by the fraudulent or deceitful conduct less the amount of any income received as a result of the fraudulent or deceitful conduct; (iii) Costs; and (iv) Reasonable attorney's fees. (2) Subdivision (c)(1) of this section does not apply to a broker-dealer or its agents if: (A) The investment advice provided is solely incidental to transacting business as a broker-dealer; and (B) Special compensation is not paid for the investment advice.

(1) A person that directly or indirectly receives consideration for providing investment advice to another party: (A) In violation of § 23-42-301 is liable to the other party for: (i) The consideration paid for the advice; (ii) Interest at the rate of six percent (6%) per year from the date of payment; (iii) Costs; and (iv) Reasonable attorney's fees; or (B) By employing a device, scheme, or artifice to defraud the other party or by engaging in an act, practice, or course of business that operates or would operate as a fraud or deceit upon the other party is liable to the other party for: (i) The consideration paid for the advice plus interest at the rate of six percent (6%) per year from the date of payment; (ii) Damages caused by the fraudulent or deceitful conduct less the amount of any income received as a result of the fraudulent or deceitful conduct; (iii) Costs; and (iv) Reasonable attorney's fees.

(A) In violation of § 23-42-301 is liable to the other party for: (i) The consideration paid for the advice; (ii) Interest at the rate of six percent (6%) per year from the date of payment; (iii) Costs; and (iv) Reasonable attorney's fees; or

(i) The consideration paid for the advice;

(ii) Interest at the rate of six percent (6%) per year from the date of payment;

(iii) Costs; and

(iv) Reasonable attorney's fees; or

(B) By employing a device, scheme, or artifice to defraud the other party or by engaging in an act, practice, or course of business that operates or would operate as a fraud or deceit upon the other party is liable to the other party for: (i) The consideration paid for the advice plus interest at the rate of six percent (6%) per year from the date of payment; (ii) Damages caused by the fraudulent or deceitful conduct less the amount of any income received as a result of the fraudulent or deceitful conduct; (iii) Costs; and (iv) Reasonable attorney's fees.

(i) The consideration paid for the advice plus interest at the rate of six percent (6%) per year from the date of payment;

(ii) Damages caused by the fraudulent or deceitful conduct less the amount of any income received as a result of the fraudulent or deceitful conduct;

(iii) Costs; and

(iv) Reasonable attorney's fees.

(2) Subdivision (c)(1) of this section does not apply to a broker-dealer or its agents if: (A) The investment advice provided is solely incidental to transacting business as a broker-dealer; and (B) Special compensation is not paid for the investment advice.

(A) The investment advice provided is solely incidental to transacting business as a broker-dealer; and

(B) Special compensation is not paid for the investment advice.

(d) (1) A secondary offender has joint and several liability with a right of contribution for the actions of a primary offender unless the secondary offender satisfies the burden of proving that the secondary offender did not know, and in the exercise of reasonable care could not have known, of the existence of the actions of the primary offender that give rise to liability under this section. (2) As used in subdivision (d)(1) of this section: (A) "Primary offender" means a person that is liable under subsection (a), subsection (b), or subsection (c) of this section; and (B) "Secondary offender" means: (i) A person that controls a primary offender; (ii) A partner, officer, or director of a primary offender and any other person occupying a similar status or performing a similar function with respect to the primary offender; (iii) An employee of a primary offender who materially aids in the actions of a primary offender that give rise to liability under this section; and (iv) A broker-dealer, agent, investment adviser, or investment adviser representative that materially aids in the actions of a primary offender that give rise to liability under this section.

(1) A secondary offender has joint and several liability with a right of contribution for the actions of a primary offender unless the secondary offender satisfies the burden of proving that the secondary offender did not know, and in the exercise of reasonable care could not have known, of the existence of the actions of the primary offender that give rise to liability under this section.

(2) As used in subdivision (d)(1) of this section: (A) "Primary offender" means a person that is liable under subsection (a), subsection (b), or subsection (c) of this section; and (B) "Secondary offender" means: (i) A person that controls a primary offender; (ii) A partner, officer, or director of a primary offender and any other person occupying a similar status or performing a similar function with respect to the primary offender; (iii) An employee of a primary offender who materially aids in the actions of a primary offender that give rise to liability under this section; and (iv) A broker-dealer, agent, investment adviser, or investment adviser representative that materially aids in the actions of a primary offender that give rise to liability under this section.

(A) "Primary offender" means a person that is liable under subsection (a), subsection (b), or subsection (c) of this section; and

(B) "Secondary offender" means: (i) A person that controls a primary offender; (ii) A partner, officer, or director of a primary offender and any other person occupying a similar status or performing a similar function with respect to the primary offender; (iii) An employee of a primary offender who materially aids in the actions of a primary offender that give rise to liability under this section; and (iv) A broker-dealer, agent, investment adviser, or investment adviser representative that materially aids in the actions of a primary offender that give rise to liability under this section.

(i) A person that controls a primary offender;

(ii) A partner, officer, or director of a primary offender and any other person occupying a similar status or performing a similar function with respect to the primary offender;

(iii) An employee of a primary offender who materially aids in the actions of a primary offender that give rise to liability under this section; and

(iv) A broker-dealer, agent, investment adviser, or investment adviser representative that materially aids in the actions of a primary offender that give rise to liability under this section.

(e) A tender required by this section may be made at any time before entry of judgment.

(f) Every cause of action under this section survives the death of a person who might have been a plaintiff or defendant.

(g) A person may not sue under this section unless the action is instituted within three (3) years after the violation occurred.

(h) A buyer shall not sue under this section: (1) If the buyer received a written offer, before suit and at a time when the buyer owned the security, to refund the consideration paid together with interest at six percent (6%) per year from the date of payment less the amount of any income received on the security, and the buyer failed to accept the offer within thirty (30) days of its receipt; or (2) If the buyer received such an offer before suit and at a time when the buyer did not own the security unless the buyer rejected the offer in writing within thirty (30) days of its receipt.

(1) If the buyer received a written offer, before suit and at a time when the buyer owned the security, to refund the consideration paid together with interest at six percent (6%) per year from the date of payment less the amount of any income received on the security, and the buyer failed to accept the offer within thirty (30) days of its receipt; or

(2) If the buyer received such an offer before suit and at a time when the buyer did not own the security unless the buyer rejected the offer in writing within thirty (30) days of its receipt.

(i) A person who has made or engaged in the performance of a contract in violation of this chapter or any rule or order of the commissioner, or who has acquired any purported right under the contract with knowledge of the facts by reason of which its making or performance was in violation may not sue on the contract.

Amended by Act 2017, No. 668,§ 11, eff. 8/1/2017.

Amended by Act 2017, No. 668,§ 10, eff. 8/1/2017.

Amended by Act 2017, No. 668,§ 9, eff. 8/1/2017.

Amended by Act 2017, No. 668,§ 8, eff. 8/1/2017.

Amended by Act 2017, No. 668,§ 7, eff. 8/1/2017.

Amended by Act 2013, No. 460,§ 4, eff. 8/16/2013.

Acts 1959, No. 254, § 22; 1971, No. 131, § 6; 1973, No. 47, § 17; 1977, No. 493, §§ 14, 16; A.S.A. 1947, § 67-1256; Acts 1995, No. 845, § 2; 1997, No. 173, § 2; 1999, No. 1225, § 1.
Ark. Code Ann. § 23-51-119 — AR Code / Title 23 / Chapter 51 / Section 23-51-119
Requirements for a private trust company
Status: in_force

(a) Application. (1) A private trust company requesting an exemption from the provisions of this chapter pursuant to § 23-51-118 shall file an application with the Bank Commissioner containing the following: (A) A non-refundable application fee on an amount not less than three thousand dollars ($3,000) nor more than five thousand dollars ($5,000), as set by rules issued by the commissioner; (B) A detailed statement under oath showing the private trust company's assets and liabilities as of the end of the month previous to the filing of the application; (C) A statement under oath of the reason for requesting the exemption; (D) A statement under oath that the private trust company is not currently transacting business with the public and that the company will not conduct business with the public without the prior written permission of the commissioner; (E) The current street mailing address and telephone number of the physical location in this state at which the private trust company will maintain its books and records, together with a statement under oath that the address given is true and correct and is not a United States Postal Service post office box or a private mail box, postal box, or mail drop; and (F) Listing of the specific provisions of the chapter for which the request for exemption is made. (2) The commissioner shall not approve a private trust company exemption unless the application is completed as required in subdivision (a)(1) of this section. (b) Requirements. To maintain status as an exempt private trust company under this chapter, the private trust company shall comply with the following: (1) An exempt private trust company shall not transact business with the public; (2) An exempt private trust company shall file an annual certification that it is maintaining the conditions and limitations of its exempt status. This annual certification shall be filed on a form provided by the commissioner and be accompanied by a fee set by regulations issued by the commissioner. The annual certification shall be filed on or before June 30 of each year. No annual certification shall be valid unless it bears an acknowledgment stamped by the State Bank Department. The department shall have thirty (30) days from the date of receipt to return a copy of the acknowledged annual certification to the private trust company. The burden shall be on the exempt private trust company to notify the department of any failure to return an acknowledged copy of any annual certification within the thirty-day period. The commissioner may examine or investigate the private state trust company periodically as necessary to verify the certification; (3) An exempt private trust company shall comply with the principal office provisions of § 23-51-172 and with the address and telephone requirements of subdivision (a)(1)(E) of this section; (4) The exempt private trust company shall pay all applicable corporate franchise taxes. (c) Change of Control. Control of an exempt private trust company may not be transferred or sold with exempt status. In any change of control, the acquiring control person must comply with the provisions of this chapter and the exempt status of the private trust company shall automatically terminate upon the effective date of the transfer. A separate application for exempt status must be filed if the acquiring person wishes to obtain or continue an exemption pursuant to this section. (d) Authority to Revoke. The commissioner shall have authority to revoke the exempt status of a private trust company in the following circumstances: (1) The exempt private trust company makes a false statement under oath on any document required to be filed by the chapter or by any regulation promulgated by the commissioner; (2) The exempt private trust company fails to submit to an examination as required by § 23-51-184 ; (3) The exempt private trust company withholds requested information from the commissioner; or (4) The exempt private trust company violates any provision of this section applicable to exempt private trust companies. (e) Notification of Revocation of Exemption. If the commissioner determines from examination or other credible evidence that an exempt private trust company has violated any of the requirements of this section, the commissioner may by personal delivery or registered or certified mail, return receipt requested, notify the exempt private trust company in writing that the private trust company's exempt status has been revoked. The notification must state grounds for the revocation with reasonable certainty. The notice must state its effective date, which may not be sooner than five (5) calendar days after the date the notification is mailed or delivered. The revocation takes effect for the private trust company if the private trust company does not request a hearing in writing before the effective date. After taking effect the revocation is final and nonappealable as to that private trust company, and the private trust company shall be subject to all of the requirements and provisions of the chapter applicable to non-exempt state trust companies. (f) Compliance Period. A private trust company shall have five (5) calendar days after the revocation is effective to comply with the provisions of this chapter from which it was formerly exempt. If, however, the commissioner determines, at the time of revocation, that the private trust company has been engaging in or attempting to engage in acts intended or designed to deceive or defraud the public, the commissioner may shorten or eliminate, in the commissioner's sole discretion, the five (5) calendar days compliance period. (g) Remedies for Failure to Comply. If the private trust company does not comply with all of the provisions of this chapter, including such capitalization requirements as have been determined by the commissioner as necessary to assure the safety and soundness of the private trust company, within the prescribed time period, the commissioner may: (1) Institute any action or remedy prescribed by this chapter, or any applicable rule; or (2) Refer the private trust company to the Attorney General for institution of a quo warranto proceeding to revoke the charter. Amended by Act 2019, No. 315,§ 2577, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2576, eff. 7/24/2019. Acts 1997, No. 940, § 19.

(a) Application. (1) A private trust company requesting an exemption from the provisions of this chapter pursuant to § 23-51-118 shall file an application with the Bank Commissioner containing the following: (A) A non-refundable application fee on an amount not less than three thousand dollars ($3,000) nor more than five thousand dollars ($5,000), as set by rules issued by the commissioner; (B) A detailed statement under oath showing the private trust company's assets and liabilities as of the end of the month previous to the filing of the application; (C) A statement under oath of the reason for requesting the exemption; (D) A statement under oath that the private trust company is not currently transacting business with the public and that the company will not conduct business with the public without the prior written permission of the commissioner; (E) The current street mailing address and telephone number of the physical location in this state at which the private trust company will maintain its books and records, together with a statement under oath that the address given is true and correct and is not a United States Postal Service post office box or a private mail box, postal box, or mail drop; and (F) Listing of the specific provisions of the chapter for which the request for exemption is made. (2) The commissioner shall not approve a private trust company exemption unless the application is completed as required in subdivision (a)(1) of this section.

(1) A private trust company requesting an exemption from the provisions of this chapter pursuant to § 23-51-118 shall file an application with the Bank Commissioner containing the following: (A) A non-refundable application fee on an amount not less than three thousand dollars ($3,000) nor more than five thousand dollars ($5,000), as set by rules issued by the commissioner; (B) A detailed statement under oath showing the private trust company's assets and liabilities as of the end of the month previous to the filing of the application; (C) A statement under oath of the reason for requesting the exemption; (D) A statement under oath that the private trust company is not currently transacting business with the public and that the company will not conduct business with the public without the prior written permission of the commissioner; (E) The current street mailing address and telephone number of the physical location in this state at which the private trust company will maintain its books and records, together with a statement under oath that the address given is true and correct and is not a United States Postal Service post office box or a private mail box, postal box, or mail drop; and (F) Listing of the specific provisions of the chapter for which the request for exemption is made.

(A) A non-refundable application fee on an amount not less than three thousand dollars ($3,000) nor more than five thousand dollars ($5,000), as set by rules issued by the commissioner;

(B) A detailed statement under oath showing the private trust company's assets and liabilities as of the end of the month previous to the filing of the application;

(C) A statement under oath of the reason for requesting the exemption;

(D) A statement under oath that the private trust company is not currently transacting business with the public and that the company will not conduct business with the public without the prior written permission of the commissioner;

(E) The current street mailing address and telephone number of the physical location in this state at which the private trust company will maintain its books and records, together with a statement under oath that the address given is true and correct and is not a United States Postal Service post office box or a private mail box, postal box, or mail drop; and

(F) Listing of the specific provisions of the chapter for which the request for exemption is made.

(2) The commissioner shall not approve a private trust company exemption unless the application is completed as required in subdivision (a)(1) of this section.

(b) Requirements. To maintain status as an exempt private trust company under this chapter, the private trust company shall comply with the following: (1) An exempt private trust company shall not transact business with the public; (2) An exempt private trust company shall file an annual certification that it is maintaining the conditions and limitations of its exempt status. This annual certification shall be filed on a form provided by the commissioner and be accompanied by a fee set by regulations issued by the commissioner. The annual certification shall be filed on or before June 30 of each year. No annual certification shall be valid unless it bears an acknowledgment stamped by the State Bank Department. The department shall have thirty (30) days from the date of receipt to return a copy of the acknowledged annual certification to the private trust company. The burden shall be on the exempt private trust company to notify the department of any failure to return an acknowledged copy of any annual certification within the thirty-day period. The commissioner may examine or investigate the private state trust company periodically as necessary to verify the certification; (3) An exempt private trust company shall comply with the principal office provisions of § 23-51-172 and with the address and telephone requirements of subdivision (a)(1)(E) of this section; (4) The exempt private trust company shall pay all applicable corporate franchise taxes.

(1) An exempt private trust company shall not transact business with the public;

(2) An exempt private trust company shall file an annual certification that it is maintaining the conditions and limitations of its exempt status. This annual certification shall be filed on a form provided by the commissioner and be accompanied by a fee set by regulations issued by the commissioner. The annual certification shall be filed on or before June 30 of each year. No annual certification shall be valid unless it bears an acknowledgment stamped by the State Bank Department. The department shall have thirty (30) days from the date of receipt to return a copy of the acknowledged annual certification to the private trust company. The burden shall be on the exempt private trust company to notify the department of any failure to return an acknowledged copy of any annual certification within the thirty-day period. The commissioner may examine or investigate the private state trust company periodically as necessary to verify the certification;

(3) An exempt private trust company shall comply with the principal office provisions of § 23-51-172 and with the address and telephone requirements of subdivision (a)(1)(E) of this section;

(4) The exempt private trust company shall pay all applicable corporate franchise taxes.

(c) Change of Control. Control of an exempt private trust company may not be transferred or sold with exempt status. In any change of control, the acquiring control person must comply with the provisions of this chapter and the exempt status of the private trust company shall automatically terminate upon the effective date of the transfer. A separate application for exempt status must be filed if the acquiring person wishes to obtain or continue an exemption pursuant to this section.

(d) Authority to Revoke. The commissioner shall have authority to revoke the exempt status of a private trust company in the following circumstances: (1) The exempt private trust company makes a false statement under oath on any document required to be filed by the chapter or by any regulation promulgated by the commissioner; (2) The exempt private trust company fails to submit to an examination as required by § 23-51-184 ; (3) The exempt private trust company withholds requested information from the commissioner; or (4) The exempt private trust company violates any provision of this section applicable to exempt private trust companies.

(1) The exempt private trust company makes a false statement under oath on any document required to be filed by the chapter or by any regulation promulgated by the commissioner;

(2) The exempt private trust company fails to submit to an examination as required by § 23-51-184 ;

(3) The exempt private trust company withholds requested information from the commissioner; or

(4) The exempt private trust company violates any provision of this section applicable to exempt private trust companies.

(e) Notification of Revocation of Exemption. If the commissioner determines from examination or other credible evidence that an exempt private trust company has violated any of the requirements of this section, the commissioner may by personal delivery or registered or certified mail, return receipt requested, notify the exempt private trust company in writing that the private trust company's exempt status has been revoked. The notification must state grounds for the revocation with reasonable certainty. The notice must state its effective date, which may not be sooner than five (5) calendar days after the date the notification is mailed or delivered. The revocation takes effect for the private trust company if the private trust company does not request a hearing in writing before the effective date. After taking effect the revocation is final and nonappealable as to that private trust company, and the private trust company shall be subject to all of the requirements and provisions of the chapter applicable to non-exempt state trust companies.

(f) Compliance Period. A private trust company shall have five (5) calendar days after the revocation is effective to comply with the provisions of this chapter from which it was formerly exempt. If, however, the commissioner determines, at the time of revocation, that the private trust company has been engaging in or attempting to engage in acts intended or designed to deceive or defraud the public, the commissioner may shorten or eliminate, in the commissioner's sole discretion, the five (5) calendar days compliance period.

(g) Remedies for Failure to Comply. If the private trust company does not comply with all of the provisions of this chapter, including such capitalization requirements as have been determined by the commissioner as necessary to assure the safety and soundness of the private trust company, within the prescribed time period, the commissioner may: (1) Institute any action or remedy prescribed by this chapter, or any applicable rule; or (2) Refer the private trust company to the Attorney General for institution of a quo warranto proceeding to revoke the charter.

(1) Institute any action or remedy prescribed by this chapter, or any applicable rule; or

(2) Refer the private trust company to the Attorney General for institution of a quo warranto proceeding to revoke the charter.

Amended by Act 2019, No. 315,§ 2577, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2576, eff. 7/24/2019.

Acts 1997, No. 940, § 19.