Ark. Code Ann. § 23-63-841 — AR Code / Title 23 / Chapter 63 / Subchapter 8 / Section 23-63-841
Derivative transactions - Definitions
Status: in_force

(a) As used in this section: (1) "Cap" means an agreement obligating the seller to make payments to the buyer with each payment based on the amount by which a reference price or level or the performance or value of one (1) or more underlying interests exceeds a predetermined number, sometimes called the strike rate or strike price; (2) "Collar" means an agreement to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor; (3) (A) "Counterparty exposure amount" means the net amount of credit risk attributable to an over-the-counter derivative instrument. The amount of credit risk equals: (i) The market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or (ii) Zero (0) if the liquidation of the derivative instrument would not result in a final cash payment to the insurer. (B) If over-the-counter derivative instruments are entered into under a written master agreement which provides for netting of payments owed by the respective parties and the domiciliary jurisdiction of the counterparty is either within the United States or if not within the United States, within a foreign jurisdiction listed in the National Association of Insurance Commissioners' publication prepared by its Securities Valuation Office as it existed on January 1, 2005, entitled the "Purposes and Procedures Manual" as eligible for netting, the net amount of credit risk shall be the greater of zero (0) or the net sum of: (i) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment to the insurer; and (ii) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment by the insurer to the business entity. (C) For open transactions, market value shall be determined at the end of the most recent quarter of the insurer's fiscal year and shall be reduced by the market value of acceptable collateral held by the insurer or placed in escrow by one (1) or both parties; (4) "Covered" means that an insurer: (A) Owns or can immediately acquire through the exercise of options, warrants, or conversion rights already owned the underlying interest in order to fulfill or secure its obligations under a call option, cap, or floor it has written; or (B) Has set aside under a custodial or escrow agreement, cash or cash equivalents with a market value equal to the amount required to fulfill its obligations under a put option it has written in an income generation transaction; (5) (A) "Derivative instrument" means an agreement, option, instrument, or a series or combination thereof: (i) To make or take delivery or assume or relinquish a specified amount of one (1) or more underlying interests or to make a cash settlement in lieu thereof; or (ii) That has a price, performance, value, or cash flow based primarily upon the actual or expected price, level, performance, value, or cash flow of one (1) or more underlying interests. (B) "Derivative instrument" includes options, warrants used in a hedging transaction and not attached to another financial instrument, caps, floors, collars, swaps, forwards, futures, and any other agreements, options, or instruments substantially similar thereto or any series or combination thereof and any agreements, options, or instruments permitted under regulations adopted by the Insurance Commissioner. (C) "Derivative instrument" does not include an investment authorized by any other provision of this subchapter; (6) "Derivative transaction" means a transaction involving the use of one (1) or more derivative instruments; (7) "Direct" or "directly", when used in connection with an obligation, means that the designated obligor is primarily liable on the instrument representing the obligation; (8) "Floor" means an agreement obligating the seller to make payments to the buyer in which each payment is based on the amount by which a predetermined number, sometimes called the floor rate or price, exceeds a reference price, level, performance, or value of one (1) or more underlying interests; (9) "Forward" means an agreement other than a future to make or take delivery or effect a cash settlement based on the actual or expected price, level, performance, or value of one (1) or more underlying interests; (10) "Future" means an agreement traded on a qualified exchange or qualified foreign exchange to make or take delivery or effect a cash settlement based on the actual or expected price, level, performance, or value of one (1) or more underlying interests; (11) "Hedging transaction" means a derivative transaction which is entered into and maintained to reduce: (A) The risk of a change in the value, yield, price, cash flow, or quantity of assets or liabilities that the insurer has acquired or incurred or anticipates acquiring or incurring; or (B) The currency exchange rate risk or the degree of exposure of assets or liabilities that an insurer has acquired or incurred or anticipates acquiring or incurring; (12) "Income" means, with respect to a security, any interest, accrual of discount, dividends, or other distributions, such as rights, tax or assessment credits, warrants, and distributions in kind; (13) "Income generation transaction" means a derivative transaction involving the writing of covered call options, covered put options, covered caps, or covered floors that is intended to generate income or enhance return; (14) "Option" means an agreement giving the buyer the right to buy or receive, that is, a "call option", sell or deliver, that is, a "put option", enter into, extend, or terminate or effect a cash settlement based on the actual or expected price, level, performance, or value of one (1) or more underlying interests; (15) "Over-the-counter derivative instrument" means a derivative instrument entered into with a business entity other than through a qualified exchange, qualified foreign exchange, or cleared through a qualified clearinghouse; (16) "Potential exposure" means the amount determined in accordance with the National Association of Insurance Commissioners' Annual Statement Instructions in effect on January 1, 2005; (17) (A) "Replication transaction" means a derivative transaction that is intended to replicate the performance of one (1) or more assets that an insurer is authorized to acquire under Arkansas law. (B) A derivative transaction entered into as a hedging transaction is not considered a replication transaction; (18) "Swap" means an agreement to exchange or to net payments at one (1) or more times based on the actual or expected price, level, performance, or value of one (1) or more underlying interests; (19) "Underlying interest" means the assets, liabilities, other interests, or a combination thereof, underlying a derivative instrument, such as any one (1) or more securities, currencies, rates, indices, commodities, or derivative instruments; and (20) (A) "Warrant" means an instrument that gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times outlined in the warrant agreement. (B) Warrants may be issued alone or in connection with the sale of other securities, for example, as part of a merger or recapitalization agreement or to facilitate divestiture of the securities of another business entity. (b) (1) An insurer may use derivative instruments under this section to engage in: (A) Hedging transactions; and (B) Certain income generation transactions if the commissioner does not object to the proposed derivative transaction plan submitted by the insurer. (2) An insurer shall be able to demonstrate to the commissioner the intended hedging characteristics and the ongoing effectiveness of the derivative transaction or combination of the transactions through cash flow testing or other appropriate analyses. (3) (A) Before engaging in derivative transactions, an insurer shall establish written guidelines that shall be used for effecting and maintaining the transactions. (B) The guidelines shall: (i) Address investment or, if applicable, underwriting objectives and risk constraints, such as credit risk limits; (ii) Address permissible transactions and the relationship of those transactions to its operations, such as a precise identification of the risks being hedged by a derivative transaction; and (iii) Require compliance with internal control procedures. (4) An insurer shall have a system for determining whether a derivative instrument used for hedging has been effective. (5) An insurer shall have a credit risk management system for over-the-counter derivative transactions that measures credit risk exposure using the counterparty exposure amount. (6) An insurer's board of directors shall approve the guidelines required by this subsection and determine whether the insurer has adequate professional personnel, technical expertise, and systems to implement investment practices involving derivatives. (c) An insurer may enter into hedging transactions under this section if as a result of and after giving effect to the transaction: (1) The aggregate statement value of options, caps, floors, and warrants not attached to another financial instrument purchased and used in hedging transactions does not exceed seven and one-half percent (7.5%) of its admitted assets; (2) The aggregate statement value of options, caps, and floors written in hedging transactions does not exceed three percent (3%) of its admitted assets; and (3) The aggregate potential exposure of collars, swaps, forwards, and futures used in hedging transactions does not exceed six and one-half percent (6.5%) of its admitted assets. (d) An insurer may enter only into the following types of income generation transactions if as a result of and after giving effect to the transactions the aggregate statement value of the fixed income assets that are subject to call or, for life and health insurers, that generate the cash flows for payments under the caps or floors, plus the face value of fixed income securities underlying a derivative instrument subject to call, plus the amount of the purchase obligations under the puts, does not exceed ten percent (10%) of its admitted assets: (1) Sales of covered call options on noncallable fixed income securities, callable fixed income securities if the option expires by its terms prior to the end of the noncallable period, or derivative instruments based on fixed income securities; (2) Sales of covered call options on equity securities if the insurer holds in its portfolio or can immediately acquire, through the exercise of options, warrants, or conversion rights already owned, the equity securities subject to call during the complete term of the call option sold; (3) Sales of covered puts on investments that the insurer is permitted to acquire under Arkansas law if the insurer has escrowed or entered into a custodian agreement segregating cash or cash equivalents with a market value equal to the amount of its purchase obligations under the put during the complete term of the put option sold; or (4) Sales of covered caps or floors if the insurer is a life and health insurer and holds in its portfolio the investments generating the cash flow to make the required payments under the caps or floors during the complete term that the cap or floor is outstanding. (e) An insurer shall include all counterparty exposure amounts in determining compliance with the limitations of § 23-63-805 . (f) The commissioner may approve additional transactions involving the use of derivative instruments in excess of the limits of subsection (c) of this section or for other risk management purposes, but replication transactions are not permitted for other risk management purposes. Acts 2005, No. 506, § 28; 2009, No. 726, § 21.

(a) As used in this section: (1) "Cap" means an agreement obligating the seller to make payments to the buyer with each payment based on the amount by which a reference price or level or the performance or value of one (1) or more underlying interests exceeds a predetermined number, sometimes called the strike rate or strike price; (2) "Collar" means an agreement to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor; (3) (A) "Counterparty exposure amount" means the net amount of credit risk attributable to an over-the-counter derivative instrument. The amount of credit risk equals: (i) The market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or (ii) Zero (0) if the liquidation of the derivative instrument would not result in a final cash payment to the insurer. (B) If over-the-counter derivative instruments are entered into under a written master agreement which provides for netting of payments owed by the respective parties and the domiciliary jurisdiction of the counterparty is either within the United States or if not within the United States, within a foreign jurisdiction listed in the National Association of Insurance Commissioners' publication prepared by its Securities Valuation Office as it existed on January 1, 2005, entitled the "Purposes and Procedures Manual" as eligible for netting, the net amount of credit risk shall be the greater of zero (0) or the net sum of: (i) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment to the insurer; and (ii) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment by the insurer to the business entity. (C) For open transactions, market value shall be determined at the end of the most recent quarter of the insurer's fiscal year and shall be reduced by the market value of acceptable collateral held by the insurer or placed in escrow by one (1) or both parties; (4) "Covered" means that an insurer: (A) Owns or can immediately acquire through the exercise of options, warrants, or conversion rights already owned the underlying interest in order to fulfill or secure its obligations under a call option, cap, or floor it has written; or (B) Has set aside under a custodial or escrow agreement, cash or cash equivalents with a market value equal to the amount required to fulfill its obligations under a put option it has written in an income generation transaction; (5) (A) "Derivative instrument" means an agreement, option, instrument, or a series or combination thereof: (i) To make or take delivery or assume or relinquish a specified amount of one (1) or more underlying interests or to make a cash settlement in lieu thereof; or (ii) That has a price, performance, value, or cash flow based primarily upon the actual or expected price, level, performance, value, or cash flow of one (1) or more underlying interests. (B) "Derivative instrument" includes options, warrants used in a hedging transaction and not attached to another financial instrument, caps, floors, collars, swaps, forwards, futures, and any other agreements, options, or instruments substantially similar thereto or any series or combination thereof and any agreements, options, or instruments permitted under regulations adopted by the Insurance Commissioner. (C) "Derivative instrument" does not include an investment authorized by any other provision of this subchapter; (6) "Derivative transaction" means a transaction involving the use of one (1) or more derivative instruments; (7) "Direct" or "directly", when used in connection with an obligation, means that the designated obligor is primarily liable on the instrument representing the obligation; (8) "Floor" means an agreement obligating the seller to make payments to the buyer in which each payment is based on the amount by which a predetermined number, sometimes called the floor rate or price, exceeds a reference price, level, performance, or value of one (1) or more underlying interests; (9) "Forward" means an agreement other than a future to make or take delivery or effect a cash settlement based on the actual or expected price, level, performance, or value of one (1) or more underlying interests; (10) "Future" means an agreement traded on a qualified exchange or qualified foreign exchange to make or take delivery or effect a cash settlement based on the actual or expected price, level, performance, or value of one (1) or more underlying interests; (11) "Hedging transaction" means a derivative transaction which is entered into and maintained to reduce: (A) The risk of a change in the value, yield, price, cash flow, or quantity of assets or liabilities that the insurer has acquired or incurred or anticipates acquiring or incurring; or (B) The currency exchange rate risk or the degree of exposure of assets or liabilities that an insurer has acquired or incurred or anticipates acquiring or incurring; (12) "Income" means, with respect to a security, any interest, accrual of discount, dividends, or other distributions, such as rights, tax or assessment credits, warrants, and distributions in kind; (13) "Income generation transaction" means a derivative transaction involving the writing of covered call options, covered put options, covered caps, or covered floors that is intended to generate income or enhance return; (14) "Option" means an agreement giving the buyer the right to buy or receive, that is, a "call option", sell or deliver, that is, a "put option", enter into, extend, or terminate or effect a cash settlement based on the actual or expected price, level, performance, or value of one (1) or more underlying interests; (15) "Over-the-counter derivative instrument" means a derivative instrument entered into with a business entity other than through a qualified exchange, qualified foreign exchange, or cleared through a qualified clearinghouse; (16) "Potential exposure" means the amount determined in accordance with the National Association of Insurance Commissioners' Annual Statement Instructions in effect on January 1, 2005; (17) (A) "Replication transaction" means a derivative transaction that is intended to replicate the performance of one (1) or more assets that an insurer is authorized to acquire under Arkansas law. (B) A derivative transaction entered into as a hedging transaction is not considered a replication transaction; (18) "Swap" means an agreement to exchange or to net payments at one (1) or more times based on the actual or expected price, level, performance, or value of one (1) or more underlying interests; (19) "Underlying interest" means the assets, liabilities, other interests, or a combination thereof, underlying a derivative instrument, such as any one (1) or more securities, currencies, rates, indices, commodities, or derivative instruments; and (20) (A) "Warrant" means an instrument that gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times outlined in the warrant agreement. (B) Warrants may be issued alone or in connection with the sale of other securities, for example, as part of a merger or recapitalization agreement or to facilitate divestiture of the securities of another business entity.

(1) "Cap" means an agreement obligating the seller to make payments to the buyer with each payment based on the amount by which a reference price or level or the performance or value of one (1) or more underlying interests exceeds a predetermined number, sometimes called the strike rate or strike price;

(2) "Collar" means an agreement to receive payments as the buyer of an option, cap, or floor and to make payments as the seller of a different option, cap, or floor;

(3) (A) "Counterparty exposure amount" means the net amount of credit risk attributable to an over-the-counter derivative instrument. The amount of credit risk equals: (i) The market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or (ii) Zero (0) if the liquidation of the derivative instrument would not result in a final cash payment to the insurer. (B) If over-the-counter derivative instruments are entered into under a written master agreement which provides for netting of payments owed by the respective parties and the domiciliary jurisdiction of the counterparty is either within the United States or if not within the United States, within a foreign jurisdiction listed in the National Association of Insurance Commissioners' publication prepared by its Securities Valuation Office as it existed on January 1, 2005, entitled the "Purposes and Procedures Manual" as eligible for netting, the net amount of credit risk shall be the greater of zero (0) or the net sum of: (i) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment to the insurer; and (ii) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment by the insurer to the business entity. (C) For open transactions, market value shall be determined at the end of the most recent quarter of the insurer's fiscal year and shall be reduced by the market value of acceptable collateral held by the insurer or placed in escrow by one (1) or both parties;

(A) "Counterparty exposure amount" means the net amount of credit risk attributable to an over-the-counter derivative instrument. The amount of credit risk equals: (i) The market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or (ii) Zero (0) if the liquidation of the derivative instrument would not result in a final cash payment to the insurer.

(i) The market value of the over-the-counter derivative instrument if the liquidation of the derivative instrument would result in a final cash payment to the insurer; or

(ii) Zero (0) if the liquidation of the derivative instrument would not result in a final cash payment to the insurer.

(B) If over-the-counter derivative instruments are entered into under a written master agreement which provides for netting of payments owed by the respective parties and the domiciliary jurisdiction of the counterparty is either within the United States or if not within the United States, within a foreign jurisdiction listed in the National Association of Insurance Commissioners' publication prepared by its Securities Valuation Office as it existed on January 1, 2005, entitled the "Purposes and Procedures Manual" as eligible for netting, the net amount of credit risk shall be the greater of zero (0) or the net sum of: (i) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment to the insurer; and (ii) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment by the insurer to the business entity.

(i) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment to the insurer; and

(ii) The market value of the over-the-counter derivative instruments entered into under the agreement, the liquidation of which would result in a final cash payment by the insurer to the business entity.

(C) For open transactions, market value shall be determined at the end of the most recent quarter of the insurer's fiscal year and shall be reduced by the market value of acceptable collateral held by the insurer or placed in escrow by one (1) or both parties;

(4) "Covered" means that an insurer: (A) Owns or can immediately acquire through the exercise of options, warrants, or conversion rights already owned the underlying interest in order to fulfill or secure its obligations under a call option, cap, or floor it has written; or (B) Has set aside under a custodial or escrow agreement, cash or cash equivalents with a market value equal to the amount required to fulfill its obligations under a put option it has written in an income generation transaction;

(A) Owns or can immediately acquire through the exercise of options, warrants, or conversion rights already owned the underlying interest in order to fulfill or secure its obligations under a call option, cap, or floor it has written; or

(B) Has set aside under a custodial or escrow agreement, cash or cash equivalents with a market value equal to the amount required to fulfill its obligations under a put option it has written in an income generation transaction;

(5) (A) "Derivative instrument" means an agreement, option, instrument, or a series or combination thereof: (i) To make or take delivery or assume or relinquish a specified amount of one (1) or more underlying interests or to make a cash settlement in lieu thereof; or (ii) That has a price, performance, value, or cash flow based primarily upon the actual or expected price, level, performance, value, or cash flow of one (1) or more underlying interests. (B) "Derivative instrument" includes options, warrants used in a hedging transaction and not attached to another financial instrument, caps, floors, collars, swaps, forwards, futures, and any other agreements, options, or instruments substantially similar thereto or any series or combination thereof and any agreements, options, or instruments permitted under regulations adopted by the Insurance Commissioner. (C) "Derivative instrument" does not include an investment authorized by any other provision of this subchapter;

(A) "Derivative instrument" means an agreement, option, instrument, or a series or combination thereof: (i) To make or take delivery or assume or relinquish a specified amount of one (1) or more underlying interests or to make a cash settlement in lieu thereof; or (ii) That has a price, performance, value, or cash flow based primarily upon the actual or expected price, level, performance, value, or cash flow of one (1) or more underlying interests.

(i) To make or take delivery or assume or relinquish a specified amount of one (1) or more underlying interests or to make a cash settlement in lieu thereof; or

(ii) That has a price, performance, value, or cash flow based primarily upon the actual or expected price, level, performance, value, or cash flow of one (1) or more underlying interests.

(B) "Derivative instrument" includes options, warrants used in a hedging transaction and not attached to another financial instrument, caps, floors, collars, swaps, forwards, futures, and any other agreements, options, or instruments substantially similar thereto or any series or combination thereof and any agreements, options, or instruments permitted under regulations adopted by the Insurance Commissioner.

(C) "Derivative instrument" does not include an investment authorized by any other provision of this subchapter;

(6) "Derivative transaction" means a transaction involving the use of one (1) or more derivative instruments;

(7) "Direct" or "directly", when used in connection with an obligation, means that the designated obligor is primarily liable on the instrument representing the obligation;

(8) "Floor" means an agreement obligating the seller to make payments to the buyer in which each payment is based on the amount by which a predetermined number, sometimes called the floor rate or price, exceeds a reference price, level, performance, or value of one (1) or more underlying interests;

(9) "Forward" means an agreement other than a future to make or take delivery or effect a cash settlement based on the actual or expected price, level, performance, or value of one (1) or more underlying interests;

(10) "Future" means an agreement traded on a qualified exchange or qualified foreign exchange to make or take delivery or effect a cash settlement based on the actual or expected price, level, performance, or value of one (1) or more underlying interests;

(11) "Hedging transaction" means a derivative transaction which is entered into and maintained to reduce: (A) The risk of a change in the value, yield, price, cash flow, or quantity of assets or liabilities that the insurer has acquired or incurred or anticipates acquiring or incurring; or (B) The currency exchange rate risk or the degree of exposure of assets or liabilities that an insurer has acquired or incurred or anticipates acquiring or incurring;

(A) The risk of a change in the value, yield, price, cash flow, or quantity of assets or liabilities that the insurer has acquired or incurred or anticipates acquiring or incurring; or

(B) The currency exchange rate risk or the degree of exposure of assets or liabilities that an insurer has acquired or incurred or anticipates acquiring or incurring;

(12) "Income" means, with respect to a security, any interest, accrual of discount, dividends, or other distributions, such as rights, tax or assessment credits, warrants, and distributions in kind;

(13) "Income generation transaction" means a derivative transaction involving the writing of covered call options, covered put options, covered caps, or covered floors that is intended to generate income or enhance return;

(14) "Option" means an agreement giving the buyer the right to buy or receive, that is, a "call option", sell or deliver, that is, a "put option", enter into, extend, or terminate or effect a cash settlement based on the actual or expected price, level, performance, or value of one (1) or more underlying interests;

(15) "Over-the-counter derivative instrument" means a derivative instrument entered into with a business entity other than through a qualified exchange, qualified foreign exchange, or cleared through a qualified clearinghouse;

(16) "Potential exposure" means the amount determined in accordance with the National Association of Insurance Commissioners' Annual Statement Instructions in effect on January 1, 2005;

(17) (A) "Replication transaction" means a derivative transaction that is intended to replicate the performance of one (1) or more assets that an insurer is authorized to acquire under Arkansas law. (B) A derivative transaction entered into as a hedging transaction is not considered a replication transaction;

(A) "Replication transaction" means a derivative transaction that is intended to replicate the performance of one (1) or more assets that an insurer is authorized to acquire under Arkansas law.

(B) A derivative transaction entered into as a hedging transaction is not considered a replication transaction;

(18) "Swap" means an agreement to exchange or to net payments at one (1) or more times based on the actual or expected price, level, performance, or value of one (1) or more underlying interests;

(19) "Underlying interest" means the assets, liabilities, other interests, or a combination thereof, underlying a derivative instrument, such as any one (1) or more securities, currencies, rates, indices, commodities, or derivative instruments; and

(20) (A) "Warrant" means an instrument that gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times outlined in the warrant agreement. (B) Warrants may be issued alone or in connection with the sale of other securities, for example, as part of a merger or recapitalization agreement or to facilitate divestiture of the securities of another business entity.

(A) "Warrant" means an instrument that gives the holder the right to purchase an underlying financial instrument at a given price and time or at a series of prices and times outlined in the warrant agreement.

(B) Warrants may be issued alone or in connection with the sale of other securities, for example, as part of a merger or recapitalization agreement or to facilitate divestiture of the securities of another business entity.

(b) (1) An insurer may use derivative instruments under this section to engage in: (A) Hedging transactions; and (B) Certain income generation transactions if the commissioner does not object to the proposed derivative transaction plan submitted by the insurer. (2) An insurer shall be able to demonstrate to the commissioner the intended hedging characteristics and the ongoing effectiveness of the derivative transaction or combination of the transactions through cash flow testing or other appropriate analyses. (3) (A) Before engaging in derivative transactions, an insurer shall establish written guidelines that shall be used for effecting and maintaining the transactions. (B) The guidelines shall: (i) Address investment or, if applicable, underwriting objectives and risk constraints, such as credit risk limits; (ii) Address permissible transactions and the relationship of those transactions to its operations, such as a precise identification of the risks being hedged by a derivative transaction; and (iii) Require compliance with internal control procedures. (4) An insurer shall have a system for determining whether a derivative instrument used for hedging has been effective. (5) An insurer shall have a credit risk management system for over-the-counter derivative transactions that measures credit risk exposure using the counterparty exposure amount. (6) An insurer's board of directors shall approve the guidelines required by this subsection and determine whether the insurer has adequate professional personnel, technical expertise, and systems to implement investment practices involving derivatives.

(1) An insurer may use derivative instruments under this section to engage in: (A) Hedging transactions; and (B) Certain income generation transactions if the commissioner does not object to the proposed derivative transaction plan submitted by the insurer.

(A) Hedging transactions; and

(B) Certain income generation transactions if the commissioner does not object to the proposed derivative transaction plan submitted by the insurer.

(2) An insurer shall be able to demonstrate to the commissioner the intended hedging characteristics and the ongoing effectiveness of the derivative transaction or combination of the transactions through cash flow testing or other appropriate analyses.

(3) (A) Before engaging in derivative transactions, an insurer shall establish written guidelines that shall be used for effecting and maintaining the transactions. (B) The guidelines shall: (i) Address investment or, if applicable, underwriting objectives and risk constraints, such as credit risk limits; (ii) Address permissible transactions and the relationship of those transactions to its operations, such as a precise identification of the risks being hedged by a derivative transaction; and (iii) Require compliance with internal control procedures.

(A) Before engaging in derivative transactions, an insurer shall establish written guidelines that shall be used for effecting and maintaining the transactions.

(B) The guidelines shall: (i) Address investment or, if applicable, underwriting objectives and risk constraints, such as credit risk limits; (ii) Address permissible transactions and the relationship of those transactions to its operations, such as a precise identification of the risks being hedged by a derivative transaction; and (iii) Require compliance with internal control procedures.

(i) Address investment or, if applicable, underwriting objectives and risk constraints, such as credit risk limits;

(ii) Address permissible transactions and the relationship of those transactions to its operations, such as a precise identification of the risks being hedged by a derivative transaction; and

(iii) Require compliance with internal control procedures.

(4) An insurer shall have a system for determining whether a derivative instrument used for hedging has been effective.

(5) An insurer shall have a credit risk management system for over-the-counter derivative transactions that measures credit risk exposure using the counterparty exposure amount.

(6) An insurer's board of directors shall approve the guidelines required by this subsection and determine whether the insurer has adequate professional personnel, technical expertise, and systems to implement investment practices involving derivatives.

(c) An insurer may enter into hedging transactions under this section if as a result of and after giving effect to the transaction: (1) The aggregate statement value of options, caps, floors, and warrants not attached to another financial instrument purchased and used in hedging transactions does not exceed seven and one-half percent (7.5%) of its admitted assets; (2) The aggregate statement value of options, caps, and floors written in hedging transactions does not exceed three percent (3%) of its admitted assets; and (3) The aggregate potential exposure of collars, swaps, forwards, and futures used in hedging transactions does not exceed six and one-half percent (6.5%) of its admitted assets.

(1) The aggregate statement value of options, caps, floors, and warrants not attached to another financial instrument purchased and used in hedging transactions does not exceed seven and one-half percent (7.5%) of its admitted assets;

(2) The aggregate statement value of options, caps, and floors written in hedging transactions does not exceed three percent (3%) of its admitted assets; and

(3) The aggregate potential exposure of collars, swaps, forwards, and futures used in hedging transactions does not exceed six and one-half percent (6.5%) of its admitted assets.

(d) An insurer may enter only into the following types of income generation transactions if as a result of and after giving effect to the transactions the aggregate statement value of the fixed income assets that are subject to call or, for life and health insurers, that generate the cash flows for payments under the caps or floors, plus the face value of fixed income securities underlying a derivative instrument subject to call, plus the amount of the purchase obligations under the puts, does not exceed ten percent (10%) of its admitted assets: (1) Sales of covered call options on noncallable fixed income securities, callable fixed income securities if the option expires by its terms prior to the end of the noncallable period, or derivative instruments based on fixed income securities; (2) Sales of covered call options on equity securities if the insurer holds in its portfolio or can immediately acquire, through the exercise of options, warrants, or conversion rights already owned, the equity securities subject to call during the complete term of the call option sold; (3) Sales of covered puts on investments that the insurer is permitted to acquire under Arkansas law if the insurer has escrowed or entered into a custodian agreement segregating cash or cash equivalents with a market value equal to the amount of its purchase obligations under the put during the complete term of the put option sold; or (4) Sales of covered caps or floors if the insurer is a life and health insurer and holds in its portfolio the investments generating the cash flow to make the required payments under the caps or floors during the complete term that the cap or floor is outstanding.

(1) Sales of covered call options on noncallable fixed income securities, callable fixed income securities if the option expires by its terms prior to the end of the noncallable period, or derivative instruments based on fixed income securities;

(2) Sales of covered call options on equity securities if the insurer holds in its portfolio or can immediately acquire, through the exercise of options, warrants, or conversion rights already owned, the equity securities subject to call during the complete term of the call option sold;

(3) Sales of covered puts on investments that the insurer is permitted to acquire under Arkansas law if the insurer has escrowed or entered into a custodian agreement segregating cash or cash equivalents with a market value equal to the amount of its purchase obligations under the put during the complete term of the put option sold; or

(4) Sales of covered caps or floors if the insurer is a life and health insurer and holds in its portfolio the investments generating the cash flow to make the required payments under the caps or floors during the complete term that the cap or floor is outstanding.

(e) An insurer shall include all counterparty exposure amounts in determining compliance with the limitations of § 23-63-805 .

(f) The commissioner may approve additional transactions involving the use of derivative instruments in excess of the limits of subsection (c) of this section or for other risk management purposes, but replication transactions are not permitted for other risk management purposes.

Acts 2005, No. 506, § 28; 2009, No. 726, § 21.
Ark. Code Ann. § 23-40-125 — AR Code / Title 23 / Chapter 40 / Section 23-40-125
Prepaid Funeral Contracts Recovery Program Fund - Created
Status: in_force

(a) There is established within the State Insurance Department Prepaid Trust Fund an account to be known as the "Prepaid Funeral Contracts Recovery Program Fund". (b) No money is to be appropriated from this fund for any purpose except for expenses and payment of claims of the Prepaid Funeral Contracts Recovery Program at the direction of the Insurance Commissioner. (c) The fund shall be invested under the direction of the commissioner and the Treasurer of State, with advice from the Chief Fiscal Officer of the State as needed from time to time. (d) (1) All income derived through investment of the fund, including, but not limited to, fees, interest, and dividends shall be credited as investment income to the fund and deposited therein. (2) All income derived from fund transfers, subrogation awards, grants, orders or judgments of restitution, refunds, voluntary reimbursements or restitution, and gifts shall be credited as investment income to the fund and deposited therein. (e) Further, all moneys deposited into the fund shall not be subject to any deduction, tax, levy, or any other type of assessment except as may be provided in this subchapter. (f) (1) The fund shall be administered by the commissioner. (2) The purpose of the fund is to reimburse purchasers of preneed funeral contracts who have suffered financial loss as a result of the impairment, insolvency, business interruption, or improper inactivity of a prepaid funeral organization licensed in this state under this chapter. (g) (1) From the fee for each preneed funeral contract as required by § 23-40-119(d)(1)(A) and from any funds transferred to the fund pursuant to § 23-40-119(f)(1) , the commissioner shall administer the program. (2) The commissioner may suspend fees or unused funds transfers or deposits into the fund at any time and for any period for which the commissioner determines that a sufficient amount is available to meet likely disbursements and to maintain an adequate reserve in compliance with a rule of the commissioner. (h) The commissioner shall adopt procedures governing management of the fund, the presentation and processing of applications for reimbursement, and subrogation or assignment of the rights of any reimbursed applicant. (i) (1) The commissioner may expend moneys in the fund for the following purposes: (A) To make reimbursements on approved applications; and (B) To pay related expenses involved in operating the program as permitted under state law. (2) Reimbursements from the fund shall be made only to the extent to which such losses are not bonded or otherwise covered, protected, or reimbursed, and only after the applicant has complied with all applicable rules of the fund. (j) (1) The commissioner, or his or her representatives, shall investigate all applications made and may reject or allow the claims, in whole or in part, to the extent that moneys are available in the fund. (2) The commissioner may approve one (1) application that includes more than one (1) reparation claim for the benefit of purchasers of prepaid contracts of a licensee ordered liquidated under § 23-40-123 , as part of a plan to arrange for another licensee to assume the obligations of the licensee being liquidated, if: (A) The commissioner finds that the plan is reasonable and is in the best interests of the contract beneficiaries; and (B) The plan is approved by a court. (k) (1) In the event reimbursement is made to an applicant under this section, the commissioner, on behalf of the state, shall be subrogated in the reimbursed amount and may bring any action the commissioner deems advisable for the program against any person, including a prepaid licensee. (2) The commissioner may enforce any claims that the program, on behalf of the state, may have for restitution or otherwise and may employ and compensate consultants, agents, legal counsel, accountants, and any other persons that the commissioner deems appropriate. Payments shall be made from the fund for such services. (l) (1) The fund is subject to examination and regulation by the commissioner. (2) (A) The commissioner, or his or her representatives, shall prepare each year, not later than one hundred twenty (120) days after the program's fiscal year, a financial report in a form approved by the commissioner and a report of program activities during the preceding fiscal year. (B) Upon request of a licensed prepaid funeral organization in this state, the commissioner shall provide the member prepaid funeral organization with a copy of the report. (m) There shall be no liability on the part of and no cause of action of any nature shall arise against the commissioner or his or her representatives, agents, or employees for any act or omission by them in the performance of their powers and duties under this chapter, or in its administration, dispensation, handling, or collection of funds for the program. Amended by Act 2023, No. 345,§ 7, eff. 8/1/2023. Amended by Act 2019, No. 315,§ 2510, eff. 7/24/2019. Acts 2001, No. 1043, § 7; 2003, No. 987, § 6[5]; 2003, No. 1473, § 50.

(a) There is established within the State Insurance Department Prepaid Trust Fund an account to be known as the "Prepaid Funeral Contracts Recovery Program Fund".

(b) No money is to be appropriated from this fund for any purpose except for expenses and payment of claims of the Prepaid Funeral Contracts Recovery Program at the direction of the Insurance Commissioner.

(c) The fund shall be invested under the direction of the commissioner and the Treasurer of State, with advice from the Chief Fiscal Officer of the State as needed from time to time.

(d) (1) All income derived through investment of the fund, including, but not limited to, fees, interest, and dividends shall be credited as investment income to the fund and deposited therein. (2) All income derived from fund transfers, subrogation awards, grants, orders or judgments of restitution, refunds, voluntary reimbursements or restitution, and gifts shall be credited as investment income to the fund and deposited therein.

(1) All income derived through investment of the fund, including, but not limited to, fees, interest, and dividends shall be credited as investment income to the fund and deposited therein.

(2) All income derived from fund transfers, subrogation awards, grants, orders or judgments of restitution, refunds, voluntary reimbursements or restitution, and gifts shall be credited as investment income to the fund and deposited therein.

(e) Further, all moneys deposited into the fund shall not be subject to any deduction, tax, levy, or any other type of assessment except as may be provided in this subchapter.

(f) (1) The fund shall be administered by the commissioner. (2) The purpose of the fund is to reimburse purchasers of preneed funeral contracts who have suffered financial loss as a result of the impairment, insolvency, business interruption, or improper inactivity of a prepaid funeral organization licensed in this state under this chapter.

(1) The fund shall be administered by the commissioner.

(2) The purpose of the fund is to reimburse purchasers of preneed funeral contracts who have suffered financial loss as a result of the impairment, insolvency, business interruption, or improper inactivity of a prepaid funeral organization licensed in this state under this chapter.

(g) (1) From the fee for each preneed funeral contract as required by § 23-40-119(d)(1)(A) and from any funds transferred to the fund pursuant to § 23-40-119(f)(1) , the commissioner shall administer the program. (2) The commissioner may suspend fees or unused funds transfers or deposits into the fund at any time and for any period for which the commissioner determines that a sufficient amount is available to meet likely disbursements and to maintain an adequate reserve in compliance with a rule of the commissioner.

(1) From the fee for each preneed funeral contract as required by § 23-40-119(d)(1)(A) and from any funds transferred to the fund pursuant to § 23-40-119(f)(1) , the commissioner shall administer the program.

(2) The commissioner may suspend fees or unused funds transfers or deposits into the fund at any time and for any period for which the commissioner determines that a sufficient amount is available to meet likely disbursements and to maintain an adequate reserve in compliance with a rule of the commissioner.

(h) The commissioner shall adopt procedures governing management of the fund, the presentation and processing of applications for reimbursement, and subrogation or assignment of the rights of any reimbursed applicant.

(i) (1) The commissioner may expend moneys in the fund for the following purposes: (A) To make reimbursements on approved applications; and (B) To pay related expenses involved in operating the program as permitted under state law. (2) Reimbursements from the fund shall be made only to the extent to which such losses are not bonded or otherwise covered, protected, or reimbursed, and only after the applicant has complied with all applicable rules of the fund.

(1) The commissioner may expend moneys in the fund for the following purposes: (A) To make reimbursements on approved applications; and (B) To pay related expenses involved in operating the program as permitted under state law.

(A) To make reimbursements on approved applications; and

(B) To pay related expenses involved in operating the program as permitted under state law.

(2) Reimbursements from the fund shall be made only to the extent to which such losses are not bonded or otherwise covered, protected, or reimbursed, and only after the applicant has complied with all applicable rules of the fund.

(j) (1) The commissioner, or his or her representatives, shall investigate all applications made and may reject or allow the claims, in whole or in part, to the extent that moneys are available in the fund. (2) The commissioner may approve one (1) application that includes more than one (1) reparation claim for the benefit of purchasers of prepaid contracts of a licensee ordered liquidated under § 23-40-123 , as part of a plan to arrange for another licensee to assume the obligations of the licensee being liquidated, if: (A) The commissioner finds that the plan is reasonable and is in the best interests of the contract beneficiaries; and (B) The plan is approved by a court.

(1) The commissioner, or his or her representatives, shall investigate all applications made and may reject or allow the claims, in whole or in part, to the extent that moneys are available in the fund.

(2) The commissioner may approve one (1) application that includes more than one (1) reparation claim for the benefit of purchasers of prepaid contracts of a licensee ordered liquidated under § 23-40-123 , as part of a plan to arrange for another licensee to assume the obligations of the licensee being liquidated, if: (A) The commissioner finds that the plan is reasonable and is in the best interests of the contract beneficiaries; and (B) The plan is approved by a court.

(A) The commissioner finds that the plan is reasonable and is in the best interests of the contract beneficiaries; and

(B) The plan is approved by a court.

(k) (1) In the event reimbursement is made to an applicant under this section, the commissioner, on behalf of the state, shall be subrogated in the reimbursed amount and may bring any action the commissioner deems advisable for the program against any person, including a prepaid licensee. (2) The commissioner may enforce any claims that the program, on behalf of the state, may have for restitution or otherwise and may employ and compensate consultants, agents, legal counsel, accountants, and any other persons that the commissioner deems appropriate. Payments shall be made from the fund for such services.

(1) In the event reimbursement is made to an applicant under this section, the commissioner, on behalf of the state, shall be subrogated in the reimbursed amount and may bring any action the commissioner deems advisable for the program against any person, including a prepaid licensee.

(2) The commissioner may enforce any claims that the program, on behalf of the state, may have for restitution or otherwise and may employ and compensate consultants, agents, legal counsel, accountants, and any other persons that the commissioner deems appropriate. Payments shall be made from the fund for such services.

(l) (1) The fund is subject to examination and regulation by the commissioner. (2) (A) The commissioner, or his or her representatives, shall prepare each year, not later than one hundred twenty (120) days after the program's fiscal year, a financial report in a form approved by the commissioner and a report of program activities during the preceding fiscal year. (B) Upon request of a licensed prepaid funeral organization in this state, the commissioner shall provide the member prepaid funeral organization with a copy of the report.

(1) The fund is subject to examination and regulation by the commissioner.

(2) (A) The commissioner, or his or her representatives, shall prepare each year, not later than one hundred twenty (120) days after the program's fiscal year, a financial report in a form approved by the commissioner and a report of program activities during the preceding fiscal year. (B) Upon request of a licensed prepaid funeral organization in this state, the commissioner shall provide the member prepaid funeral organization with a copy of the report.

(A) The commissioner, or his or her representatives, shall prepare each year, not later than one hundred twenty (120) days after the program's fiscal year, a financial report in a form approved by the commissioner and a report of program activities during the preceding fiscal year.

(B) Upon request of a licensed prepaid funeral organization in this state, the commissioner shall provide the member prepaid funeral organization with a copy of the report.

(m) There shall be no liability on the part of and no cause of action of any nature shall arise against the commissioner or his or her representatives, agents, or employees for any act or omission by them in the performance of their powers and duties under this chapter, or in its administration, dispensation, handling, or collection of funds for the program.

Amended by Act 2023, No. 345,§ 7, eff. 8/1/2023.

Amended by Act 2019, No. 315,§ 2510, eff. 7/24/2019.

Acts 2001, No. 1043, § 7; 2003, No. 987, § 6[5]; 2003, No. 1473, § 50.
Ark. Code Ann. § 23-71-106 — AR Code / Title 23 / Chapter 71 / Section 23-71-106
Use of "stipulated premium" prohibited - Exception
Status: in_force

No insurer shall use the term "stipulated premium" in its insurance applications or contracts, or print or use that term in its policies or literature, unless lawfully authorized to transact insurance in this state on the stipulated premium plan. Acts 1959, No. 148, § 542; A.S.A. 1947, § 66-4403.

No insurer shall use the term "stipulated premium" in its insurance applications or contracts, or print or use that term in its policies or literature, unless lawfully authorized to transact insurance in this state on the stipulated premium plan.

Acts 1959, No. 148, § 542; A.S.A. 1947, § 66-4403.
Ark. Code Ann. § 23-18-901 — AR Code / Title 23 / Chapter 18 / Subchapter 9 / Section 23-18-901
Short title - Purpose
Status: in_force

(a) This subchapter shall be known and may be cited as the "Arkansas Electric Utility and Gas Utility Storm Recovery Securitization Act". (b) (1) The purpose of this subchapter is to enable Arkansas electric utilities and gas utilities, if authorized by a financing order issued by the Arkansas Public Service Commission, to use securitization financing for storm recovery costs, which may lower the financing costs or mitigate the impact on rates in comparison with traditional utility financing or other traditional utility recovery methods thereby benefitting customers. (2) The storm recovery bonds will not be public debt of the State of Arkansas. (3) The proceeds of the storm recovery bonds shall be used for the purposes of recovering storm recovery costs solely as stated in a financing order issued by the commission to encourage and facilitate the rebuilding of utility infrastructure damaged by storms and the extraordinary natural gas, fuel, or purchased power costs occasioned by storms. (4) Securitization financings for storm recovery costs are recognized to be a valid public purpose. (5) Federal tax laws and revenue procedures expressly require that certain state legislation be enacted in order for the transactions to receive certain federal tax benefits. (6) (A) The General Assembly finds a public need to promote the securitization financings by providing clear and exclusive methods to create, transfer, and encumber interests in storm recovery property as defined in this subchapter. (B) This need can be met by providing in this subchapter the methods and by establishing that any conflict between the rules governing sales, assignments, or transfers of, or security interests or other encumbrances of any nature upon intangible personal property under other Arkansas laws and the methods provided in this subchapter, including without limitation with regard to creation, perfection, priority, or enforcement, shall be resolved in favor of the rules and methods established in this subchapter with regard to storm recovery property. (c) (1) The intent of this subchapter is to provide benefits to Arkansas customers by allowing an Arkansas electric utility or gas utility, if authorized by a financing order, to achieve certain tax and credit benefits of financing storm recovery costs on a similar basis with utilities in other states. (2) This subchapter addresses certain property, security interests, and other matters to ensure that the financial, state income tax, state franchise tax, and federal income tax benefits of financing storm recovery costs through securitization are available in Arkansas. (3) Financing orders issued under this subchapter shall not be considered as or deemed to be single issue ratemaking. (4) The beneficial income tax and credit characteristics that may be achieved include the following: (A) Treating the storm recovery bonds as debt of the utility for state and federal income tax purposes; (B) Treating the storm recovery charges as gross income to the utility recognized under the utility's usual method of accounting for income taxes, rather than recognizing gross income upon the receipt of the financing order or the receipt of cash in exchange for the sale of the storm recovery property or the issuance of the storm recovery bonds; (C) Avoiding the recognition of debt on the utility's balance sheet for certain credit and regulatory purposes by reason of the storm recovery bonds; (D) Treating the sale, assignment, or transfer of the storm recovery property by the utility as a true sale for state law and bankruptcy purposes; and (E) Avoiding any adverse impact of the financing on the utility's credit rating. Amended by Act 2021, No. 641,§ 1, eff. 4/12/2021. Acts 2009, No. 729, § 1.

(a) This subchapter shall be known and may be cited as the "Arkansas Electric Utility and Gas Utility Storm Recovery Securitization Act".

(b) (1) The purpose of this subchapter is to enable Arkansas electric utilities and gas utilities, if authorized by a financing order issued by the Arkansas Public Service Commission, to use securitization financing for storm recovery costs, which may lower the financing costs or mitigate the impact on rates in comparison with traditional utility financing or other traditional utility recovery methods thereby benefitting customers. (2) The storm recovery bonds will not be public debt of the State of Arkansas. (3) The proceeds of the storm recovery bonds shall be used for the purposes of recovering storm recovery costs solely as stated in a financing order issued by the commission to encourage and facilitate the rebuilding of utility infrastructure damaged by storms and the extraordinary natural gas, fuel, or purchased power costs occasioned by storms. (4) Securitization financings for storm recovery costs are recognized to be a valid public purpose. (5) Federal tax laws and revenue procedures expressly require that certain state legislation be enacted in order for the transactions to receive certain federal tax benefits. (6) (A) The General Assembly finds a public need to promote the securitization financings by providing clear and exclusive methods to create, transfer, and encumber interests in storm recovery property as defined in this subchapter. (B) This need can be met by providing in this subchapter the methods and by establishing that any conflict between the rules governing sales, assignments, or transfers of, or security interests or other encumbrances of any nature upon intangible personal property under other Arkansas laws and the methods provided in this subchapter, including without limitation with regard to creation, perfection, priority, or enforcement, shall be resolved in favor of the rules and methods established in this subchapter with regard to storm recovery property.

(1) The purpose of this subchapter is to enable Arkansas electric utilities and gas utilities, if authorized by a financing order issued by the Arkansas Public Service Commission, to use securitization financing for storm recovery costs, which may lower the financing costs or mitigate the impact on rates in comparison with traditional utility financing or other traditional utility recovery methods thereby benefitting customers.

(2) The storm recovery bonds will not be public debt of the State of Arkansas.

(3) The proceeds of the storm recovery bonds shall be used for the purposes of recovering storm recovery costs solely as stated in a financing order issued by the commission to encourage and facilitate the rebuilding of utility infrastructure damaged by storms and the extraordinary natural gas, fuel, or purchased power costs occasioned by storms.

(4) Securitization financings for storm recovery costs are recognized to be a valid public purpose.

(5) Federal tax laws and revenue procedures expressly require that certain state legislation be enacted in order for the transactions to receive certain federal tax benefits.

(6) (A) The General Assembly finds a public need to promote the securitization financings by providing clear and exclusive methods to create, transfer, and encumber interests in storm recovery property as defined in this subchapter. (B) This need can be met by providing in this subchapter the methods and by establishing that any conflict between the rules governing sales, assignments, or transfers of, or security interests or other encumbrances of any nature upon intangible personal property under other Arkansas laws and the methods provided in this subchapter, including without limitation with regard to creation, perfection, priority, or enforcement, shall be resolved in favor of the rules and methods established in this subchapter with regard to storm recovery property.

(A) The General Assembly finds a public need to promote the securitization financings by providing clear and exclusive methods to create, transfer, and encumber interests in storm recovery property as defined in this subchapter.

(B) This need can be met by providing in this subchapter the methods and by establishing that any conflict between the rules governing sales, assignments, or transfers of, or security interests or other encumbrances of any nature upon intangible personal property under other Arkansas laws and the methods provided in this subchapter, including without limitation with regard to creation, perfection, priority, or enforcement, shall be resolved in favor of the rules and methods established in this subchapter with regard to storm recovery property.

(c) (1) The intent of this subchapter is to provide benefits to Arkansas customers by allowing an Arkansas electric utility or gas utility, if authorized by a financing order, to achieve certain tax and credit benefits of financing storm recovery costs on a similar basis with utilities in other states. (2) This subchapter addresses certain property, security interests, and other matters to ensure that the financial, state income tax, state franchise tax, and federal income tax benefits of financing storm recovery costs through securitization are available in Arkansas. (3) Financing orders issued under this subchapter shall not be considered as or deemed to be single issue ratemaking. (4) The beneficial income tax and credit characteristics that may be achieved include the following: (A) Treating the storm recovery bonds as debt of the utility for state and federal income tax purposes; (B) Treating the storm recovery charges as gross income to the utility recognized under the utility's usual method of accounting for income taxes, rather than recognizing gross income upon the receipt of the financing order or the receipt of cash in exchange for the sale of the storm recovery property or the issuance of the storm recovery bonds; (C) Avoiding the recognition of debt on the utility's balance sheet for certain credit and regulatory purposes by reason of the storm recovery bonds; (D) Treating the sale, assignment, or transfer of the storm recovery property by the utility as a true sale for state law and bankruptcy purposes; and (E) Avoiding any adverse impact of the financing on the utility's credit rating.

(1) The intent of this subchapter is to provide benefits to Arkansas customers by allowing an Arkansas electric utility or gas utility, if authorized by a financing order, to achieve certain tax and credit benefits of financing storm recovery costs on a similar basis with utilities in other states.

(2) This subchapter addresses certain property, security interests, and other matters to ensure that the financial, state income tax, state franchise tax, and federal income tax benefits of financing storm recovery costs through securitization are available in Arkansas.

(3) Financing orders issued under this subchapter shall not be considered as or deemed to be single issue ratemaking.

(4) The beneficial income tax and credit characteristics that may be achieved include the following: (A) Treating the storm recovery bonds as debt of the utility for state and federal income tax purposes; (B) Treating the storm recovery charges as gross income to the utility recognized under the utility's usual method of accounting for income taxes, rather than recognizing gross income upon the receipt of the financing order or the receipt of cash in exchange for the sale of the storm recovery property or the issuance of the storm recovery bonds; (C) Avoiding the recognition of debt on the utility's balance sheet for certain credit and regulatory purposes by reason of the storm recovery bonds; (D) Treating the sale, assignment, or transfer of the storm recovery property by the utility as a true sale for state law and bankruptcy purposes; and (E) Avoiding any adverse impact of the financing on the utility's credit rating.

(A) Treating the storm recovery bonds as debt of the utility for state and federal income tax purposes;

(B) Treating the storm recovery charges as gross income to the utility recognized under the utility's usual method of accounting for income taxes, rather than recognizing gross income upon the receipt of the financing order or the receipt of cash in exchange for the sale of the storm recovery property or the issuance of the storm recovery bonds;

(C) Avoiding the recognition of debt on the utility's balance sheet for certain credit and regulatory purposes by reason of the storm recovery bonds;

(D) Treating the sale, assignment, or transfer of the storm recovery property by the utility as a true sale for state law and bankruptcy purposes; and

(E) Avoiding any adverse impact of the financing on the utility's credit rating.

Amended by Act 2021, No. 641,§ 1, eff. 4/12/2021.

Acts 2009, No. 729, § 1.
Ark. Code Ann. § 23-13-228 — AR Code / Title 23 / Chapter 13 / Subchapter 2 / Section 23-13-228
Transportation of persons or property in interstate commerce on public highways unlawful without adequate surety
Status: in_force

It is declared unlawful for any motor carrier to use any of the public highways of this state for the transportation of persons or property in interstate commerce unless there is in force with respect to the motor carrier adequate surety for the protection of the public. Acts 1955, No. 397, § 25; 1977, No. 468, § 1; A.S.A. 1947, § 73-1778; Acts 1993, No. 1027, § 1; 2007, No. 232, § 3.

It is declared unlawful for any motor carrier to use any of the public highways of this state for the transportation of persons or property in interstate commerce unless there is in force with respect to the motor carrier adequate surety for the protection of the public.

Acts 1955, No. 397, § 25; 1977, No. 468, § 1; A.S.A. 1947, § 73-1778; Acts 1993, No. 1027, § 1; 2007, No. 232, § 3.
Ark. Code Ann. § 23-79-1905 — AR Code / Title 23 / Chapter 79 / Subchapter 19 / Section 23-79-1905
Off-label use and coverage of drug treatment to treat pediatric acute-onset neuropsychiatric syndrome and pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection - Legislative findings - Definitions
Status: in_force

(a) The General Assembly finds that: (1) Pediatric acute-onset neuropsychiatric syndrome, also known as "PANS", is a clinically defined disorder characterized by the sudden onset of obsessive-compulsive symptoms or eating restrictions, accompanied by two (2) or more symptoms of acute behavioral deterioration or motor and sensory changes, or both; (2) Pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, also known as "PANDAS", is a term used to describe a subset of symptoms affecting children and adolescents within the broader PANS classification; (3) Other states may require coverage for off-label use of drug treatments to treat pediatric acute-onset neuropsychiatric syndrome and pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection; and (4) Arkansas does not require coverage for off-label use of drug treatments to treat patients who are diagnosed with pediatric acute-onset neuropsychiatric syndrome and pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections. (b) As used in this section: (1) (A) "Health benefit plan" means an individual, blanket, or any group plan, policy, or contract for healthcare services issued, renewed, or extended in this state by a healthcare insurer, health maintenance organization, hospital medical service corporation, or self-insured governmental or church plan in this state. (B) "Health benefit plan" includes: (i) A plan offered by a risk-based provider organization as established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq.; (ii) Indemnity and managed care plans; and (iii) Plans providing health benefits to state and public school employees under § 21-5-401 et seq. (C) "Health benefit plan" does not include: (i) A plan that provides only dental benefits or eye and vision care benefits; (ii) A disability income plan; (iii) A credit insurance plan; (iv) Insurance coverage issued as a supplement to liability insurance; (v) Medical payments under an automobile or homeowners insurance plan; (vi) A health benefit plan provided under Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., and the Public Employee Workers' Compensation Act, § 21-5-601 et seq.; (vii) A plan that provides only indemnity for hospital confinement; (viii) An accident-only plan; or (ix) A specified disease plan; and (2) (A) "Healthcare insurer" means any insurance company, hospital and medical service corporation, or health maintenance organization that issues or delivers health benefit plans in this state and is subject to any of the following laws: (i) The insurance laws of this state; (ii) Section 23-75-101 et seq., pertaining to hospital and medical service corporations; (iii) Section 23-76-101 et seq., pertaining to health maintenance organizations; or (iv) A risk-based provider organization established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq. (B) "Healthcare insurer" does not include an entity that provides only dental benefits or eye and vision care benefits. (c) (1) Except as provided in subsection (f) of this section, a health benefit plan that is offered, issued, or renewed in this state, including a plan offered by a risk-based provider organization established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq., shall provide coverage for off-label use of intravenous immunoglobulin, also known as "IVIG", to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, on or after January 1, 2022, under a patient-specific treatment plan consistent with established protocols and rules to be developed by the Insurance Commissioner, in consultation with the Childhood Post-infectious Autoimmune Encephalopathy Center of Excellence. (2) Rules to implement this subsection have to be promulgated by August 31, 2023. (d) The coverage for use of drug treatment to treat pediatric acute-onset neuropsychiatric syndrome and pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection under this section: (1) May be subject to policy deductions or copayment requirements of a healthcare insurer or a health benefit plan; and (2) Does not diminish or limit benefits otherwise allowable under a health benefit plan. (e) The Insurance Commissioner shall develop and promulgate rules for the implementation and administration of this section. (f) (1) (A) A health benefit plan that is offered, issued, or renewed in this state shall provide coverage for the use of intravenous immunoglobulin to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, on or after January 1, 2024, if the pediatric patient's primary care physician, in consultation with an Arkansas-licensed pediatric psychiatrist and an Arkansas-licensed physician who practices in at least one (1) pediatric subspecialty, including a neurologist, rheumatologist, or infectious disease physician who has treated the pediatric patient determines and agrees that the treatment is necessary and follows a patient-specific treatment plan. (B) A primary care physician may continue to consult with the Childhood Post-infectious Autoimmune Encephalopathy Center of Excellence. (C) The appeal process for a denial of coverage or adverse determination under this subdivision (f)(1): (i) Shall align with the normal appeal process of any other type of denial under the health benefit plan; and (ii) Applies to all health benefit plans. (2) Upon approval by the United States Food and Drug Administration of the use of intravenous immunoglobulin to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, the Insurance Commissioner, with consultation and upon approval of the Arkansas State Medical Board and the Arkansas State Board of Pharmacy, shall adopt by rule a written statewide protocol that provides clarification that the consultation required under subdivision (f)(1) of this section and the patient-specific treatment plan required under subsection (c) of this section are no longer required for coverage under a health benefit plan. (g) A primary care physician who prescribes intravenous immunoglobulin to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, shall report the data to the Childhood Post-infectious Autoimmune Encephalopathy Center of Excellence. Amended by Act 2023, No. 876,§ 3, eff. 4/13/2023. Added by Act 2021, No. 1054,§ 1, eff. 7/28/2021.

(a) The General Assembly finds that: (1) Pediatric acute-onset neuropsychiatric syndrome, also known as "PANS", is a clinically defined disorder characterized by the sudden onset of obsessive-compulsive symptoms or eating restrictions, accompanied by two (2) or more symptoms of acute behavioral deterioration or motor and sensory changes, or both; (2) Pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, also known as "PANDAS", is a term used to describe a subset of symptoms affecting children and adolescents within the broader PANS classification; (3) Other states may require coverage for off-label use of drug treatments to treat pediatric acute-onset neuropsychiatric syndrome and pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection; and (4) Arkansas does not require coverage for off-label use of drug treatments to treat patients who are diagnosed with pediatric acute-onset neuropsychiatric syndrome and pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections.

(1) Pediatric acute-onset neuropsychiatric syndrome, also known as "PANS", is a clinically defined disorder characterized by the sudden onset of obsessive-compulsive symptoms or eating restrictions, accompanied by two (2) or more symptoms of acute behavioral deterioration or motor and sensory changes, or both;

(2) Pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, also known as "PANDAS", is a term used to describe a subset of symptoms affecting children and adolescents within the broader PANS classification;

(3) Other states may require coverage for off-label use of drug treatments to treat pediatric acute-onset neuropsychiatric syndrome and pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection; and

(4) Arkansas does not require coverage for off-label use of drug treatments to treat patients who are diagnosed with pediatric acute-onset neuropsychiatric syndrome and pediatric autoimmune neuropsychiatric disorders associated with streptococcal infections.

(b) As used in this section: (1) (A) "Health benefit plan" means an individual, blanket, or any group plan, policy, or contract for healthcare services issued, renewed, or extended in this state by a healthcare insurer, health maintenance organization, hospital medical service corporation, or self-insured governmental or church plan in this state. (B) "Health benefit plan" includes: (i) A plan offered by a risk-based provider organization as established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq.; (ii) Indemnity and managed care plans; and (iii) Plans providing health benefits to state and public school employees under § 21-5-401 et seq. (C) "Health benefit plan" does not include: (i) A plan that provides only dental benefits or eye and vision care benefits; (ii) A disability income plan; (iii) A credit insurance plan; (iv) Insurance coverage issued as a supplement to liability insurance; (v) Medical payments under an automobile or homeowners insurance plan; (vi) A health benefit plan provided under Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., and the Public Employee Workers' Compensation Act, § 21-5-601 et seq.; (vii) A plan that provides only indemnity for hospital confinement; (viii) An accident-only plan; or (ix) A specified disease plan; and (2) (A) "Healthcare insurer" means any insurance company, hospital and medical service corporation, or health maintenance organization that issues or delivers health benefit plans in this state and is subject to any of the following laws: (i) The insurance laws of this state; (ii) Section 23-75-101 et seq., pertaining to hospital and medical service corporations; (iii) Section 23-76-101 et seq., pertaining to health maintenance organizations; or (iv) A risk-based provider organization established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq. (B) "Healthcare insurer" does not include an entity that provides only dental benefits or eye and vision care benefits.

(1) (A) "Health benefit plan" means an individual, blanket, or any group plan, policy, or contract for healthcare services issued, renewed, or extended in this state by a healthcare insurer, health maintenance organization, hospital medical service corporation, or self-insured governmental or church plan in this state. (B) "Health benefit plan" includes: (i) A plan offered by a risk-based provider organization as established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq.; (ii) Indemnity and managed care plans; and (iii) Plans providing health benefits to state and public school employees under § 21-5-401 et seq. (C) "Health benefit plan" does not include: (i) A plan that provides only dental benefits or eye and vision care benefits; (ii) A disability income plan; (iii) A credit insurance plan; (iv) Insurance coverage issued as a supplement to liability insurance; (v) Medical payments under an automobile or homeowners insurance plan; (vi) A health benefit plan provided under Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., and the Public Employee Workers' Compensation Act, § 21-5-601 et seq.; (vii) A plan that provides only indemnity for hospital confinement; (viii) An accident-only plan; or (ix) A specified disease plan; and

(A) "Health benefit plan" means an individual, blanket, or any group plan, policy, or contract for healthcare services issued, renewed, or extended in this state by a healthcare insurer, health maintenance organization, hospital medical service corporation, or self-insured governmental or church plan in this state.

(B) "Health benefit plan" includes: (i) A plan offered by a risk-based provider organization as established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq.; (ii) Indemnity and managed care plans; and (iii) Plans providing health benefits to state and public school employees under § 21-5-401 et seq.

(i) A plan offered by a risk-based provider organization as established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq.;

(ii) Indemnity and managed care plans; and

(iii) Plans providing health benefits to state and public school employees under § 21-5-401 et seq.

(C) "Health benefit plan" does not include: (i) A plan that provides only dental benefits or eye and vision care benefits; (ii) A disability income plan; (iii) A credit insurance plan; (iv) Insurance coverage issued as a supplement to liability insurance; (v) Medical payments under an automobile or homeowners insurance plan; (vi) A health benefit plan provided under Arkansas Constitution, Article 5, § 32, the Workers' Compensation Law, § 11-9-101 et seq., and the Public Employee Workers' Compensation Act, § 21-5-601 et seq.; (vii) A plan that provides only indemnity for hospital confinement; (viii) An accident-only plan; or (ix) A specified disease plan; and

(i) A plan that provides only dental benefits or eye and vision care benefits;

(ii) A disability income plan;

(iii) A credit insurance plan;

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

(v) Medical payments under an automobile or homeowners insurance plan;

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

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

(viii) An accident-only plan; or

(ix) A specified disease plan; and

(2) (A) "Healthcare insurer" means any insurance company, hospital and medical service corporation, or health maintenance organization that issues or delivers health benefit plans in this state and is subject to any of the following laws: (i) The insurance laws of this state; (ii) Section 23-75-101 et seq., pertaining to hospital and medical service corporations; (iii) Section 23-76-101 et seq., pertaining to health maintenance organizations; or (iv) A risk-based provider organization established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq. (B) "Healthcare insurer" does not include an entity that provides only dental benefits or eye and vision care benefits.

(A) "Healthcare insurer" means any insurance company, hospital and medical service corporation, or health maintenance organization that issues or delivers health benefit plans in this state and is subject to any of the following laws: (i) The insurance laws of this state; (ii) Section 23-75-101 et seq., pertaining to hospital and medical service corporations; (iii) Section 23-76-101 et seq., pertaining to health maintenance organizations; or (iv) A risk-based provider organization established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq.

(i) The insurance laws of this state;

(ii) Section 23-75-101 et seq., pertaining to hospital and medical service corporations;

(iii) Section 23-76-101 et seq., pertaining to health maintenance organizations; or

(iv) A risk-based provider organization established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq.

(B) "Healthcare insurer" does not include an entity that provides only dental benefits or eye and vision care benefits.

(c) (1) Except as provided in subsection (f) of this section, a health benefit plan that is offered, issued, or renewed in this state, including a plan offered by a risk-based provider organization established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq., shall provide coverage for off-label use of intravenous immunoglobulin, also known as "IVIG", to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, on or after January 1, 2022, under a patient-specific treatment plan consistent with established protocols and rules to be developed by the Insurance Commissioner, in consultation with the Childhood Post-infectious Autoimmune Encephalopathy Center of Excellence. (2) Rules to implement this subsection have to be promulgated by August 31, 2023.

(1) Except as provided in subsection (f) of this section, a health benefit plan that is offered, issued, or renewed in this state, including a plan offered by a risk-based provider organization established under the Medicaid Provider-Led Organized Care Act, § 20-77-2701 et seq., shall provide coverage for off-label use of intravenous immunoglobulin, also known as "IVIG", to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, on or after January 1, 2022, under a patient-specific treatment plan consistent with established protocols and rules to be developed by the Insurance Commissioner, in consultation with the Childhood Post-infectious Autoimmune Encephalopathy Center of Excellence.

(2) Rules to implement this subsection have to be promulgated by August 31, 2023.

(d) The coverage for use of drug treatment to treat pediatric acute-onset neuropsychiatric syndrome and pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection under this section: (1) May be subject to policy deductions or copayment requirements of a healthcare insurer or a health benefit plan; and (2) Does not diminish or limit benefits otherwise allowable under a health benefit plan.

(1) May be subject to policy deductions or copayment requirements of a healthcare insurer or a health benefit plan; and

(2) Does not diminish or limit benefits otherwise allowable under a health benefit plan.

(e) The Insurance Commissioner shall develop and promulgate rules for the implementation and administration of this section.

(f) (1) (A) A health benefit plan that is offered, issued, or renewed in this state shall provide coverage for the use of intravenous immunoglobulin to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, on or after January 1, 2024, if the pediatric patient's primary care physician, in consultation with an Arkansas-licensed pediatric psychiatrist and an Arkansas-licensed physician who practices in at least one (1) pediatric subspecialty, including a neurologist, rheumatologist, or infectious disease physician who has treated the pediatric patient determines and agrees that the treatment is necessary and follows a patient-specific treatment plan. (B) A primary care physician may continue to consult with the Childhood Post-infectious Autoimmune Encephalopathy Center of Excellence. (C) The appeal process for a denial of coverage or adverse determination under this subdivision (f)(1): (i) Shall align with the normal appeal process of any other type of denial under the health benefit plan; and (ii) Applies to all health benefit plans. (2) Upon approval by the United States Food and Drug Administration of the use of intravenous immunoglobulin to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, the Insurance Commissioner, with consultation and upon approval of the Arkansas State Medical Board and the Arkansas State Board of Pharmacy, shall adopt by rule a written statewide protocol that provides clarification that the consultation required under subdivision (f)(1) of this section and the patient-specific treatment plan required under subsection (c) of this section are no longer required for coverage under a health benefit plan.

(1) (A) A health benefit plan that is offered, issued, or renewed in this state shall provide coverage for the use of intravenous immunoglobulin to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, on or after January 1, 2024, if the pediatric patient's primary care physician, in consultation with an Arkansas-licensed pediatric psychiatrist and an Arkansas-licensed physician who practices in at least one (1) pediatric subspecialty, including a neurologist, rheumatologist, or infectious disease physician who has treated the pediatric patient determines and agrees that the treatment is necessary and follows a patient-specific treatment plan. (B) A primary care physician may continue to consult with the Childhood Post-infectious Autoimmune Encephalopathy Center of Excellence. (C) The appeal process for a denial of coverage or adverse determination under this subdivision (f)(1): (i) Shall align with the normal appeal process of any other type of denial under the health benefit plan; and (ii) Applies to all health benefit plans.

(A) A health benefit plan that is offered, issued, or renewed in this state shall provide coverage for the use of intravenous immunoglobulin to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, on or after January 1, 2024, if the pediatric patient's primary care physician, in consultation with an Arkansas-licensed pediatric psychiatrist and an Arkansas-licensed physician who practices in at least one (1) pediatric subspecialty, including a neurologist, rheumatologist, or infectious disease physician who has treated the pediatric patient determines and agrees that the treatment is necessary and follows a patient-specific treatment plan.

(B) A primary care physician may continue to consult with the Childhood Post-infectious Autoimmune Encephalopathy Center of Excellence.

(C) The appeal process for a denial of coverage or adverse determination under this subdivision (f)(1): (i) Shall align with the normal appeal process of any other type of denial under the health benefit plan; and (ii) Applies to all health benefit plans.

(i) Shall align with the normal appeal process of any other type of denial under the health benefit plan; and

(ii) Applies to all health benefit plans.

(2) Upon approval by the United States Food and Drug Administration of the use of intravenous immunoglobulin to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, the Insurance Commissioner, with consultation and upon approval of the Arkansas State Medical Board and the Arkansas State Board of Pharmacy, shall adopt by rule a written statewide protocol that provides clarification that the consultation required under subdivision (f)(1) of this section and the patient-specific treatment plan required under subsection (c) of this section are no longer required for coverage under a health benefit plan.

(g) A primary care physician who prescribes intravenous immunoglobulin to treat individuals diagnosed with pediatric acute-onset neuropsychiatric syndrome or pediatric autoimmune neuropsychiatric disorders associated with streptococcal infection, or both, shall report the data to the Childhood Post-infectious Autoimmune Encephalopathy Center of Excellence.

Amended by Act 2023, No. 876,§ 3, eff. 4/13/2023.

Added by Act 2021, No. 1054,§ 1, eff. 7/28/2021.
Ark. Code Ann. § 23-51-156 — AR Code / Title 23 / Chapter 51 / Section 23-51-156
Required vote of shareholders
Status: in_force

A state trust company may go into voluntary liquidation and be closed, and may surrender its charter and franchise as a corporation of this state by the affirmative votes of its shareholders owning a majority of its voting stock. Acts 1997, No. 940, § 56.

A state trust company may go into voluntary liquidation and be closed, and may surrender its charter and franchise as a corporation of this state by the affirmative votes of its shareholders owning a majority of its voting stock.

Acts 1997, No. 940, § 56.
Ark. Code Ann. § 23-39-402 — AR Code / Title 23 / Chapter 39 / Subchapter 4 / Section 23-39-402
Nonexclusive remedy
Status: in_force

Nothing in this subchapter limits the rights or remedies which are otherwise available to a consumer under any other law. Acts 1993, No. 140, § 5.

Nothing in this subchapter limits the rights or remedies which are otherwise available to a consumer under any other law.

Acts 1993, No. 140, § 5.
Ark. Code Ann. § 23-113-201 — AR Code / Title 23 / Chapter 113 / Subchapter 2 / Section 23-113-201
Wagering on electronic games of skill conducted by franchise holders - Limitations
Status: in_force

(a) (1) In addition to pari-mutuel wagering on horse racing and greyhound racing authorized by the Arkansas Horse Racing Law, § 23-110-101 et seq., and the Arkansas Greyhound Racing Law, § 23-111-101 et seq., respectively, any franchise holder may conduct wagering on electronic games of skill in accordance with this chapter at any time or times during the calendar year at locations on the grounds of the franchise holder's racetrack park site where the franchise holder is authorized by the Arkansas Racing Commission to conduct pari-mutuel wagering on horse racing or greyhound racing pursuant to the Arkansas Horse Racing Law, § 23-110-101 et seq., or the Arkansas Greyhound Racing Law, § 23-111-101 et seq., as the case may be. (2) (A) (i) The franchise holder may not conduct wagering on electronic games of skill under this chapter unless the question of the wagering on electronic games of skill under this chapter has been submitted to the electors of the city, town, or county in which the franchise holder's racetrack park site is located and where the wagering on electronic games of skill is to be conducted, at any special or general election, and a majority of the electors voting on the question have approved at the election wagering on electronic games of skill under this chapter. (ii) If the racetrack park is located within the corporate limits of a city or town, the question shall be submitted to the electors of either the city, town, or county in which the racetrack park is located, as requested by the franchise holder, and if the racetrack park is not located within the corporate limits of a city or town, then the question shall be submitted to the electors of the county in which the racetrack park is located. (B) (i) The governing body of the city, town, or county, as the case may be, shall by ordinance submit the question to the electors if requested by the franchise holder. (ii) If the franchise holder makes a request for an election, the franchise holder shall present to the governing body evidence of anticipated benefits to economic development, job creation, tourism, and agribusiness which may result, directly or indirectly, from the authorization of wagering on electronic games of skill at the franchise holder's racetrack park site under this chapter, if approved by the local voters at the election. (iii) The franchise holder may make requests on one (1) or more occasions, and elections so requested from time to time by the franchise holder may be held during any one (1) or more calendar years as requested from time to time by the franchise holder, but not more than one (1) special election shall be held for such purposes by the same city, town, or county during any particular calendar year. (iv) The cost incurred by the city, town, or county involved in conducting each special election pursuant to the franchise holder's request shall be paid by the franchise holder. The election shall be held and conducted under the general election laws of the state, except as otherwise provided in this section. (C) The ordinance shall set forth the ballot question substantially as follows: Click here to view form. (D) Notice of the election shall be given by the clerk of the city, town, or county involved by one (1) publication in a newspaper having general circulation within the city, town, or county involved not less than ten (10) calendar days before the election. No other publication or posting of a notice by any other public official shall be required. (E) The election shall be held at the next special election date under § 7-11-205 . (F) (i) Within thirty (30) calendar days after completion of the tabulation of the votes, the mayor of the city or town or the county judge of the county, as the case may be, shall proclaim the results of the election by issuing a proclamation and publishing it one (1) time in a newspaper having general circulation within the city, town, or county involved. (ii) The results of the election as stated in the proclamation shall be conclusive unless a suit contesting the proclamation is filed in the circuit court in the county where the election took place within twenty (20) calendar days after the date of publication of the proclamation. (G) If the wagering on electronic games of skill is approved at any election as provided in this section, that approval shall be final and shall continue in effect thereafter as long as wagering on electronic games of skill at the location involved is authorized by the other provisions of this chapter, other than this section. (b) (1) In order to conduct wagering on electronic games of skill during a calendar year, the franchise holder must have been licensed by the Arkansas Racing Commission to conduct a live racing meet within the calendar year or the immediately preceding calendar year of either: (A) Horse racing under the Arkansas Horse Racing Law, § 23-110-101 et seq.; or (B) Greyhound racing under the Arkansas Greyhound Racing Law, § 23-111-101 et seq. (2) However, the commission may waive the requirement of subdivision (b)(1) of this section if the license was not issued because of events such as fire, storm, accident or other casualty, epidemic, shortages of horses or greyhounds, war, sabotage, acts of a public enemy, civil disturbances, strikes, labor disputes, work stoppages, or similar events. (c) (1) Wagering on electronic games of skill conducted by a franchise holder in accordance with this chapter shall be lawful, notwithstanding any laws or parts of laws of the State of Arkansas to the contrary. (2) However, this chapter is not intended to authorize a lottery or the sale of lottery tickets prohibited by Arkansas Constitution, Article 19, § 14. (d) (1) In order to constitute an electronic game of skill under this chapter, the game must not be completely controlled by chance alone. (2) A game is not completely controlled by chance alone if the betting public may attain through the exercise of skill or judgment a better measure of success in playing the game than could be mathematically expected on the basis of pure luck, that is, on the basis of pure random chance alone. (e) For each electronic game of skill, the commission shall provide by appropriate rule the specifications for establishing that patrons, in the aggregate, exercising some degree of skill or judgment, over the expected lifetime of the electronic game of skill, will obtain a payout of at least eighty-three percent (83%) of the aggregate amounts wagered on the electronic game of skill. (f) (1) Prior to conducting wagering on an electronic game of skill, the franchise holder shall present to the commission: (A) A complete description of the game and the electronic device or machine to be utilized in the play of the game, the proposed rules of play, and such further information as the commission determines is necessary or appropriate in order to effectively carry out its regulatory functions in accordance with this chapter; and (B) Evidence of anticipated economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, which may result, directly or indirectly, from the authorization of wagering on the electronic game of skill. (2) (A) Within sixty (60) calendar days after the submission of the information required by subdivision (f)(1) of this section, the commission shall make a finding as to whether: (i) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and (ii) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill. (B) The finding shall further either approve the proposed rules of play or recommend modifications as the commission determines are necessary in the public interest in carrying out its regulatory functions in accordance with this chapter. (3) The franchise holder may commence conducting wagering on the electronic game of skill subject to the other provisions of this chapter and other applicable rules of the commission adopted pursuant to this chapter if: (A) The finding concludes that: (i) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill; and (ii) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and (B) The commission approves the rules of play or, if applicable, the franchise holder incorporates the changes recommended by the commission into the final rules of play. (4) If the finding concludes that the game and electronic device or machine does not constitute an electronic game of skill authorized by this chapter, recommends changes in the proposed rules of play, or concludes that neither direct nor indirect economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, will result from the authorization of wagering on the electronic game of skill, the commission shall provide the franchise holder with the opportunity for a hearing by the commission before the finding is made final by the commission. (g) Wagers on electronic games of skill may be made only by individuals physically present at the location on the grounds of the franchise holder's authorized racetrack park site as set forth in subsection (a) of this section where electronic games of skill are located and being operated in accordance with this chapter. (h) No individual under twenty-one (21) years of age shall be intentionally allowed to place wagers on electronic games of skill, and the commission shall provide by rule or regulation appropriate supervisory procedures for franchise holders to follow in order to safeguard against individuals under twenty-one (21) years of age placing wagers on electronic games of skill. Amended by Act 2021, No. 610,§ 25, eff. 1/1/2022. Amended by Act 2019, No. 315,§ 2836, eff. 7/24/2019. Acts 2005, No. 1151, § 1.

(a) (1) In addition to pari-mutuel wagering on horse racing and greyhound racing authorized by the Arkansas Horse Racing Law, § 23-110-101 et seq., and the Arkansas Greyhound Racing Law, § 23-111-101 et seq., respectively, any franchise holder may conduct wagering on electronic games of skill in accordance with this chapter at any time or times during the calendar year at locations on the grounds of the franchise holder's racetrack park site where the franchise holder is authorized by the Arkansas Racing Commission to conduct pari-mutuel wagering on horse racing or greyhound racing pursuant to the Arkansas Horse Racing Law, § 23-110-101 et seq., or the Arkansas Greyhound Racing Law, § 23-111-101 et seq., as the case may be. (2) (A) (i) The franchise holder may not conduct wagering on electronic games of skill under this chapter unless the question of the wagering on electronic games of skill under this chapter has been submitted to the electors of the city, town, or county in which the franchise holder's racetrack park site is located and where the wagering on electronic games of skill is to be conducted, at any special or general election, and a majority of the electors voting on the question have approved at the election wagering on electronic games of skill under this chapter. (ii) If the racetrack park is located within the corporate limits of a city or town, the question shall be submitted to the electors of either the city, town, or county in which the racetrack park is located, as requested by the franchise holder, and if the racetrack park is not located within the corporate limits of a city or town, then the question shall be submitted to the electors of the county in which the racetrack park is located. (B) (i) The governing body of the city, town, or county, as the case may be, shall by ordinance submit the question to the electors if requested by the franchise holder. (ii) If the franchise holder makes a request for an election, the franchise holder shall present to the governing body evidence of anticipated benefits to economic development, job creation, tourism, and agribusiness which may result, directly or indirectly, from the authorization of wagering on electronic games of skill at the franchise holder's racetrack park site under this chapter, if approved by the local voters at the election. (iii) The franchise holder may make requests on one (1) or more occasions, and elections so requested from time to time by the franchise holder may be held during any one (1) or more calendar years as requested from time to time by the franchise holder, but not more than one (1) special election shall be held for such purposes by the same city, town, or county during any particular calendar year. (iv) The cost incurred by the city, town, or county involved in conducting each special election pursuant to the franchise holder's request shall be paid by the franchise holder. The election shall be held and conducted under the general election laws of the state, except as otherwise provided in this section. (C) The ordinance shall set forth the ballot question substantially as follows: Click here to view form. (D) Notice of the election shall be given by the clerk of the city, town, or county involved by one (1) publication in a newspaper having general circulation within the city, town, or county involved not less than ten (10) calendar days before the election. No other publication or posting of a notice by any other public official shall be required. (E) The election shall be held at the next special election date under § 7-11-205 . (F) (i) Within thirty (30) calendar days after completion of the tabulation of the votes, the mayor of the city or town or the county judge of the county, as the case may be, shall proclaim the results of the election by issuing a proclamation and publishing it one (1) time in a newspaper having general circulation within the city, town, or county involved. (ii) The results of the election as stated in the proclamation shall be conclusive unless a suit contesting the proclamation is filed in the circuit court in the county where the election took place within twenty (20) calendar days after the date of publication of the proclamation. (G) If the wagering on electronic games of skill is approved at any election as provided in this section, that approval shall be final and shall continue in effect thereafter as long as wagering on electronic games of skill at the location involved is authorized by the other provisions of this chapter, other than this section.

(1) In addition to pari-mutuel wagering on horse racing and greyhound racing authorized by the Arkansas Horse Racing Law, § 23-110-101 et seq., and the Arkansas Greyhound Racing Law, § 23-111-101 et seq., respectively, any franchise holder may conduct wagering on electronic games of skill in accordance with this chapter at any time or times during the calendar year at locations on the grounds of the franchise holder's racetrack park site where the franchise holder is authorized by the Arkansas Racing Commission to conduct pari-mutuel wagering on horse racing or greyhound racing pursuant to the Arkansas Horse Racing Law, § 23-110-101 et seq., or the Arkansas Greyhound Racing Law, § 23-111-101 et seq., as the case may be.

(2) (A) (i) The franchise holder may not conduct wagering on electronic games of skill under this chapter unless the question of the wagering on electronic games of skill under this chapter has been submitted to the electors of the city, town, or county in which the franchise holder's racetrack park site is located and where the wagering on electronic games of skill is to be conducted, at any special or general election, and a majority of the electors voting on the question have approved at the election wagering on electronic games of skill under this chapter. (ii) If the racetrack park is located within the corporate limits of a city or town, the question shall be submitted to the electors of either the city, town, or county in which the racetrack park is located, as requested by the franchise holder, and if the racetrack park is not located within the corporate limits of a city or town, then the question shall be submitted to the electors of the county in which the racetrack park is located. (B) (i) The governing body of the city, town, or county, as the case may be, shall by ordinance submit the question to the electors if requested by the franchise holder. (ii) If the franchise holder makes a request for an election, the franchise holder shall present to the governing body evidence of anticipated benefits to economic development, job creation, tourism, and agribusiness which may result, directly or indirectly, from the authorization of wagering on electronic games of skill at the franchise holder's racetrack park site under this chapter, if approved by the local voters at the election. (iii) The franchise holder may make requests on one (1) or more occasions, and elections so requested from time to time by the franchise holder may be held during any one (1) or more calendar years as requested from time to time by the franchise holder, but not more than one (1) special election shall be held for such purposes by the same city, town, or county during any particular calendar year. (iv) The cost incurred by the city, town, or county involved in conducting each special election pursuant to the franchise holder's request shall be paid by the franchise holder. The election shall be held and conducted under the general election laws of the state, except as otherwise provided in this section. (C) The ordinance shall set forth the ballot question substantially as follows: Click here to view form. (D) Notice of the election shall be given by the clerk of the city, town, or county involved by one (1) publication in a newspaper having general circulation within the city, town, or county involved not less than ten (10) calendar days before the election. No other publication or posting of a notice by any other public official shall be required. (E) The election shall be held at the next special election date under § 7-11-205 . (F) (i) Within thirty (30) calendar days after completion of the tabulation of the votes, the mayor of the city or town or the county judge of the county, as the case may be, shall proclaim the results of the election by issuing a proclamation and publishing it one (1) time in a newspaper having general circulation within the city, town, or county involved. (ii) The results of the election as stated in the proclamation shall be conclusive unless a suit contesting the proclamation is filed in the circuit court in the county where the election took place within twenty (20) calendar days after the date of publication of the proclamation. (G) If the wagering on electronic games of skill is approved at any election as provided in this section, that approval shall be final and shall continue in effect thereafter as long as wagering on electronic games of skill at the location involved is authorized by the other provisions of this chapter, other than this section.

(A) (i) The franchise holder may not conduct wagering on electronic games of skill under this chapter unless the question of the wagering on electronic games of skill under this chapter has been submitted to the electors of the city, town, or county in which the franchise holder's racetrack park site is located and where the wagering on electronic games of skill is to be conducted, at any special or general election, and a majority of the electors voting on the question have approved at the election wagering on electronic games of skill under this chapter. (ii) If the racetrack park is located within the corporate limits of a city or town, the question shall be submitted to the electors of either the city, town, or county in which the racetrack park is located, as requested by the franchise holder, and if the racetrack park is not located within the corporate limits of a city or town, then the question shall be submitted to the electors of the county in which the racetrack park is located.

(i) The franchise holder may not conduct wagering on electronic games of skill under this chapter unless the question of the wagering on electronic games of skill under this chapter has been submitted to the electors of the city, town, or county in which the franchise holder's racetrack park site is located and where the wagering on electronic games of skill is to be conducted, at any special or general election, and a majority of the electors voting on the question have approved at the election wagering on electronic games of skill under this chapter.

(ii) If the racetrack park is located within the corporate limits of a city or town, the question shall be submitted to the electors of either the city, town, or county in which the racetrack park is located, as requested by the franchise holder, and if the racetrack park is not located within the corporate limits of a city or town, then the question shall be submitted to the electors of the county in which the racetrack park is located.

(B) (i) The governing body of the city, town, or county, as the case may be, shall by ordinance submit the question to the electors if requested by the franchise holder. (ii) If the franchise holder makes a request for an election, the franchise holder shall present to the governing body evidence of anticipated benefits to economic development, job creation, tourism, and agribusiness which may result, directly or indirectly, from the authorization of wagering on electronic games of skill at the franchise holder's racetrack park site under this chapter, if approved by the local voters at the election. (iii) The franchise holder may make requests on one (1) or more occasions, and elections so requested from time to time by the franchise holder may be held during any one (1) or more calendar years as requested from time to time by the franchise holder, but not more than one (1) special election shall be held for such purposes by the same city, town, or county during any particular calendar year. (iv) The cost incurred by the city, town, or county involved in conducting each special election pursuant to the franchise holder's request shall be paid by the franchise holder. The election shall be held and conducted under the general election laws of the state, except as otherwise provided in this section.

(i) The governing body of the city, town, or county, as the case may be, shall by ordinance submit the question to the electors if requested by the franchise holder.

(ii) If the franchise holder makes a request for an election, the franchise holder shall present to the governing body evidence of anticipated benefits to economic development, job creation, tourism, and agribusiness which may result, directly or indirectly, from the authorization of wagering on electronic games of skill at the franchise holder's racetrack park site under this chapter, if approved by the local voters at the election.

(iii) The franchise holder may make requests on one (1) or more occasions, and elections so requested from time to time by the franchise holder may be held during any one (1) or more calendar years as requested from time to time by the franchise holder, but not more than one (1) special election shall be held for such purposes by the same city, town, or county during any particular calendar year.

(iv) The cost incurred by the city, town, or county involved in conducting each special election pursuant to the franchise holder's request shall be paid by the franchise holder. The election shall be held and conducted under the general election laws of the state, except as otherwise provided in this section.

(C) The ordinance shall set forth the ballot question substantially as follows: Click here to view form.

Click here to view form.

(D) Notice of the election shall be given by the clerk of the city, town, or county involved by one (1) publication in a newspaper having general circulation within the city, town, or county involved not less than ten (10) calendar days before the election. No other publication or posting of a notice by any other public official shall be required.

(E) The election shall be held at the next special election date under § 7-11-205 .

(F) (i) Within thirty (30) calendar days after completion of the tabulation of the votes, the mayor of the city or town or the county judge of the county, as the case may be, shall proclaim the results of the election by issuing a proclamation and publishing it one (1) time in a newspaper having general circulation within the city, town, or county involved. (ii) The results of the election as stated in the proclamation shall be conclusive unless a suit contesting the proclamation is filed in the circuit court in the county where the election took place within twenty (20) calendar days after the date of publication of the proclamation.

(i) Within thirty (30) calendar days after completion of the tabulation of the votes, the mayor of the city or town or the county judge of the county, as the case may be, shall proclaim the results of the election by issuing a proclamation and publishing it one (1) time in a newspaper having general circulation within the city, town, or county involved.

(ii) The results of the election as stated in the proclamation shall be conclusive unless a suit contesting the proclamation is filed in the circuit court in the county where the election took place within twenty (20) calendar days after the date of publication of the proclamation.

(G) If the wagering on electronic games of skill is approved at any election as provided in this section, that approval shall be final and shall continue in effect thereafter as long as wagering on electronic games of skill at the location involved is authorized by the other provisions of this chapter, other than this section.

(b) (1) In order to conduct wagering on electronic games of skill during a calendar year, the franchise holder must have been licensed by the Arkansas Racing Commission to conduct a live racing meet within the calendar year or the immediately preceding calendar year of either: (A) Horse racing under the Arkansas Horse Racing Law, § 23-110-101 et seq.; or (B) Greyhound racing under the Arkansas Greyhound Racing Law, § 23-111-101 et seq. (2) However, the commission may waive the requirement of subdivision (b)(1) of this section if the license was not issued because of events such as fire, storm, accident or other casualty, epidemic, shortages of horses or greyhounds, war, sabotage, acts of a public enemy, civil disturbances, strikes, labor disputes, work stoppages, or similar events.

(1) In order to conduct wagering on electronic games of skill during a calendar year, the franchise holder must have been licensed by the Arkansas Racing Commission to conduct a live racing meet within the calendar year or the immediately preceding calendar year of either: (A) Horse racing under the Arkansas Horse Racing Law, § 23-110-101 et seq.; or (B) Greyhound racing under the Arkansas Greyhound Racing Law, § 23-111-101 et seq.

(A) Horse racing under the Arkansas Horse Racing Law, § 23-110-101 et seq.; or

(B) Greyhound racing under the Arkansas Greyhound Racing Law, § 23-111-101 et seq.

(2) However, the commission may waive the requirement of subdivision (b)(1) of this section if the license was not issued because of events such as fire, storm, accident or other casualty, epidemic, shortages of horses or greyhounds, war, sabotage, acts of a public enemy, civil disturbances, strikes, labor disputes, work stoppages, or similar events.

(c) (1) Wagering on electronic games of skill conducted by a franchise holder in accordance with this chapter shall be lawful, notwithstanding any laws or parts of laws of the State of Arkansas to the contrary. (2) However, this chapter is not intended to authorize a lottery or the sale of lottery tickets prohibited by Arkansas Constitution, Article 19, § 14.

(1) Wagering on electronic games of skill conducted by a franchise holder in accordance with this chapter shall be lawful, notwithstanding any laws or parts of laws of the State of Arkansas to the contrary.

(2) However, this chapter is not intended to authorize a lottery or the sale of lottery tickets prohibited by Arkansas Constitution, Article 19, § 14.

(d) (1) In order to constitute an electronic game of skill under this chapter, the game must not be completely controlled by chance alone. (2) A game is not completely controlled by chance alone if the betting public may attain through the exercise of skill or judgment a better measure of success in playing the game than could be mathematically expected on the basis of pure luck, that is, on the basis of pure random chance alone.

(1) In order to constitute an electronic game of skill under this chapter, the game must not be completely controlled by chance alone.

(2) A game is not completely controlled by chance alone if the betting public may attain through the exercise of skill or judgment a better measure of success in playing the game than could be mathematically expected on the basis of pure luck, that is, on the basis of pure random chance alone.

(e) For each electronic game of skill, the commission shall provide by appropriate rule the specifications for establishing that patrons, in the aggregate, exercising some degree of skill or judgment, over the expected lifetime of the electronic game of skill, will obtain a payout of at least eighty-three percent (83%) of the aggregate amounts wagered on the electronic game of skill.

(f) (1) Prior to conducting wagering on an electronic game of skill, the franchise holder shall present to the commission: (A) A complete description of the game and the electronic device or machine to be utilized in the play of the game, the proposed rules of play, and such further information as the commission determines is necessary or appropriate in order to effectively carry out its regulatory functions in accordance with this chapter; and (B) Evidence of anticipated economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, which may result, directly or indirectly, from the authorization of wagering on the electronic game of skill. (2) (A) Within sixty (60) calendar days after the submission of the information required by subdivision (f)(1) of this section, the commission shall make a finding as to whether: (i) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and (ii) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill. (B) The finding shall further either approve the proposed rules of play or recommend modifications as the commission determines are necessary in the public interest in carrying out its regulatory functions in accordance with this chapter. (3) The franchise holder may commence conducting wagering on the electronic game of skill subject to the other provisions of this chapter and other applicable rules of the commission adopted pursuant to this chapter if: (A) The finding concludes that: (i) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill; and (ii) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and (B) The commission approves the rules of play or, if applicable, the franchise holder incorporates the changes recommended by the commission into the final rules of play. (4) If the finding concludes that the game and electronic device or machine does not constitute an electronic game of skill authorized by this chapter, recommends changes in the proposed rules of play, or concludes that neither direct nor indirect economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, will result from the authorization of wagering on the electronic game of skill, the commission shall provide the franchise holder with the opportunity for a hearing by the commission before the finding is made final by the commission.

(1) Prior to conducting wagering on an electronic game of skill, the franchise holder shall present to the commission: (A) A complete description of the game and the electronic device or machine to be utilized in the play of the game, the proposed rules of play, and such further information as the commission determines is necessary or appropriate in order to effectively carry out its regulatory functions in accordance with this chapter; and (B) Evidence of anticipated economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, which may result, directly or indirectly, from the authorization of wagering on the electronic game of skill.

(A) A complete description of the game and the electronic device or machine to be utilized in the play of the game, the proposed rules of play, and such further information as the commission determines is necessary or appropriate in order to effectively carry out its regulatory functions in accordance with this chapter; and

(B) Evidence of anticipated economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, which may result, directly or indirectly, from the authorization of wagering on the electronic game of skill.

(2) (A) Within sixty (60) calendar days after the submission of the information required by subdivision (f)(1) of this section, the commission shall make a finding as to whether: (i) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and (ii) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill. (B) The finding shall further either approve the proposed rules of play or recommend modifications as the commission determines are necessary in the public interest in carrying out its regulatory functions in accordance with this chapter.

(A) Within sixty (60) calendar days after the submission of the information required by subdivision (f)(1) of this section, the commission shall make a finding as to whether: (i) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and (ii) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill.

(i) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and

(ii) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill.

(B) The finding shall further either approve the proposed rules of play or recommend modifications as the commission determines are necessary in the public interest in carrying out its regulatory functions in accordance with this chapter.

(3) The franchise holder may commence conducting wagering on the electronic game of skill subject to the other provisions of this chapter and other applicable rules of the commission adopted pursuant to this chapter if: (A) The finding concludes that: (i) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill; and (ii) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and (B) The commission approves the rules of play or, if applicable, the franchise holder incorporates the changes recommended by the commission into the final rules of play.

(A) The finding concludes that: (i) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill; and (ii) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and

(i) Economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, may result, directly or indirectly, from the authorization of wagering on the electronic game of skill; and

(ii) The game and electronic device or machine constitutes an electronic game of skill authorized by this chapter; and

(B) The commission approves the rules of play or, if applicable, the franchise holder incorporates the changes recommended by the commission into the final rules of play.

(4) If the finding concludes that the game and electronic device or machine does not constitute an electronic game of skill authorized by this chapter, recommends changes in the proposed rules of play, or concludes that neither direct nor indirect economic benefits to the horse racing or greyhound racing industries in Arkansas, including Arkansas horse or greyhound farms and breeding operations and related agribusinesses, will result from the authorization of wagering on the electronic game of skill, the commission shall provide the franchise holder with the opportunity for a hearing by the commission before the finding is made final by the commission.

(g) Wagers on electronic games of skill may be made only by individuals physically present at the location on the grounds of the franchise holder's authorized racetrack park site as set forth in subsection (a) of this section where electronic games of skill are located and being operated in accordance with this chapter.

(h) No individual under twenty-one (21) years of age shall be intentionally allowed to place wagers on electronic games of skill, and the commission shall provide by rule or regulation appropriate supervisory procedures for franchise holders to follow in order to safeguard against individuals under twenty-one (21) years of age placing wagers on electronic games of skill.

Amended by Act 2021, No. 610,§ 25, eff. 1/1/2022.

Amended by Act 2019, No. 315,§ 2836, eff. 7/24/2019.

Acts 2005, No. 1151, § 1.

113_201_1-1 - Attachment
Ark. Code Ann. § 23-13-265 — AR Code / Title 23 / Chapter 13 / Subchapter 2 / Section 23-13-265
Exempt motor carrier to possess annual receipt
Status: in_force

(a) (1) It is declared unlawful for any motor carrier of property who is exempt from certain provisions of this subchapter pursuant to § 23-13-206(a)(6) to use any of the public highways of this state for the transportation of property for hire in intrastate commerce without possessing a copy of an annual receipt from the State Highway Commission permitting those operations. (2) Copies of the annual receipt shall be made and maintained in the cab of the power unit of each motor vehicle operated over the highways of this state while transporting property for hire intrastate. (3) (A) Every application for a permit for the transportation of property by a carrier shall be in writing on a form to be specified by the commission. (B) The application shall contain and be accompanied by the following: (i) The name and trade name, if any, and address or location of the principal office or place of business of the applicant; (ii) A statement giving full information concerning the ownership, reasonable value, and physical condition of vehicles and other property to be used by the applicant in the intrastate operations; (iii) A full and complete financial statement giving detailed information concerning the financial condition of the applicant; (iv) Proof of public liability insurance in the amounts set out in all rules made and promulgated by the commission; (v) In the event the motor carrier did not hold a valid certificate or permit authorizing intrastate transportation by motor vehicle in this state on December 31, 1994, remittance of a processing fee in the amount of twenty-five dollars ($25.00); (vi) Remittance of an insurance filing fee in the amount of five dollars ($5.00) for each motor vehicle, truck, or truck-tractor, to be operated in the State of Arkansas in intrastate operations; (vii) (a) Remittance of a copy of the motor carrier's latest United States Department of Transportation safety rating or, in the event the carrier has not been given a safety rating, a signed notarized statement indicating the company's intention to comply with all United States Department of Transportation safety regulations. (b) At any time as may be practical, a physical inspection of the equipment may be made by the Arkansas Highway Police Division of the Arkansas Department of Transportation; (viii) At the option of the applicant, the motor carrier may request that any and all laws, regulations, or other provisions relating to uniform cargo liability rules, uniform bills of lading and receipts for property being transported, uniform cargo credit rules, or antitrust immunity for joint line rates or routes, classification, and mileage guides, apply to the carrier; and (ix) Any other information that may be required by the commission. (b) (1) Every motor carrier of property complying to the satisfaction of the commission with the provisions of subsection (a) of this section shall be issued a receipt for the current year indicating the name of the motor carrier's company, the principal place of business of the carrier, and the number of motor vehicles to be operated in Arkansas. (2) (A) Copies of the receipt shall be made by the motor carrier and shall be maintained in the power unit of each motor vehicle operated over the highways of Arkansas while transporting property for hire intrastate. (B) The receipt shall be presented by the driver of the motor vehicle for inspection by any authorized government personnel. (C) Failure to carry the receipt and maintain adequate proof of public liability insurance shall subject the motor carrier to the civil and criminal penalties and fines as are authorized by this subchapter. (c) (1) Every motor carrier of property which held a valid certificate or permit authorizing intrastate transportation by motor vehicle in the state on December 31, 1994, shall continue to be authorized to transport property for hire in the state and shall be issued an annual receipt after complying with the provisions of subdivisions (a)(3)(B)(iv), (vi), (viii), and (ix) of this section. Provided, neither the previously held certificate, the previously held permit, nor any annual receipt issued pursuant to this section shall have any asset value. (2) Every motor carrier of property initially complying with all the provisions of subsection (a) of this section to the satisfaction of the commission and issued an annual receipt shall thereafter be issued an annual receipt upon complying with subdivisions (a)(3)(B)(iv), (vi), (viii), and (ix) of this section. (d) The annual fee required by subdivision (a)(3)(B)(vi) of this section shall not be required for each motor vehicle if the motor carrier of property otherwise remits the proper annual registration fees to the commission pursuant to § 23-13-235 , or the motor carrier of property otherwise remits the proper annual registration fees for the benefit of the State of Arkansas to the motor carrier's base state. (e) Notwithstanding any other provision of this section to the contrary, the commission shall have the authority to periodically review the motor carrier's fitness and shall have the authority to suspend or revoke the annual receipt or other credential granting the right of the motor carrier to operate intrastate if the motor carrier is determined by the commission to be unfit or unsafe, or fails to maintain adequate public liability insurance. (f) The commission shall have the authority to make and promulgate rules for the implementation of this section. (g) All fees received by the commission pursuant to subsection (a) of this section shall be deposited with the Treasurer of State and classified as general revenues for distribution and usage as provided by the laws of this state; provided, one and one-half percent (1.5%) of all the funds so deposited shall be classified as special revenues and transferred by the Treasurer of State on the last business day of each month in which they are deposited to the State Highway and Transportation Department Fund to be utilized by the Arkansas Department of Transportation for the purpose of administering this subchapter. Amended by Act 2019, No. 315,§ 2450, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2449, eff. 7/24/2019. Acts 1995, No. 746, § 3.

(a) (1) It is declared unlawful for any motor carrier of property who is exempt from certain provisions of this subchapter pursuant to § 23-13-206(a)(6) to use any of the public highways of this state for the transportation of property for hire in intrastate commerce without possessing a copy of an annual receipt from the State Highway Commission permitting those operations. (2) Copies of the annual receipt shall be made and maintained in the cab of the power unit of each motor vehicle operated over the highways of this state while transporting property for hire intrastate. (3) (A) Every application for a permit for the transportation of property by a carrier shall be in writing on a form to be specified by the commission. (B) The application shall contain and be accompanied by the following: (i) The name and trade name, if any, and address or location of the principal office or place of business of the applicant; (ii) A statement giving full information concerning the ownership, reasonable value, and physical condition of vehicles and other property to be used by the applicant in the intrastate operations; (iii) A full and complete financial statement giving detailed information concerning the financial condition of the applicant; (iv) Proof of public liability insurance in the amounts set out in all rules made and promulgated by the commission; (v) In the event the motor carrier did not hold a valid certificate or permit authorizing intrastate transportation by motor vehicle in this state on December 31, 1994, remittance of a processing fee in the amount of twenty-five dollars ($25.00); (vi) Remittance of an insurance filing fee in the amount of five dollars ($5.00) for each motor vehicle, truck, or truck-tractor, to be operated in the State of Arkansas in intrastate operations; (vii) (a) Remittance of a copy of the motor carrier's latest United States Department of Transportation safety rating or, in the event the carrier has not been given a safety rating, a signed notarized statement indicating the company's intention to comply with all United States Department of Transportation safety regulations. (b) At any time as may be practical, a physical inspection of the equipment may be made by the Arkansas Highway Police Division of the Arkansas Department of Transportation; (viii) At the option of the applicant, the motor carrier may request that any and all laws, regulations, or other provisions relating to uniform cargo liability rules, uniform bills of lading and receipts for property being transported, uniform cargo credit rules, or antitrust immunity for joint line rates or routes, classification, and mileage guides, apply to the carrier; and (ix) Any other information that may be required by the commission.

(1) It is declared unlawful for any motor carrier of property who is exempt from certain provisions of this subchapter pursuant to § 23-13-206(a)(6) to use any of the public highways of this state for the transportation of property for hire in intrastate commerce without possessing a copy of an annual receipt from the State Highway Commission permitting those operations.

(2) Copies of the annual receipt shall be made and maintained in the cab of the power unit of each motor vehicle operated over the highways of this state while transporting property for hire intrastate.

(3) (A) Every application for a permit for the transportation of property by a carrier shall be in writing on a form to be specified by the commission. (B) The application shall contain and be accompanied by the following: (i) The name and trade name, if any, and address or location of the principal office or place of business of the applicant; (ii) A statement giving full information concerning the ownership, reasonable value, and physical condition of vehicles and other property to be used by the applicant in the intrastate operations; (iii) A full and complete financial statement giving detailed information concerning the financial condition of the applicant; (iv) Proof of public liability insurance in the amounts set out in all rules made and promulgated by the commission; (v) In the event the motor carrier did not hold a valid certificate or permit authorizing intrastate transportation by motor vehicle in this state on December 31, 1994, remittance of a processing fee in the amount of twenty-five dollars ($25.00); (vi) Remittance of an insurance filing fee in the amount of five dollars ($5.00) for each motor vehicle, truck, or truck-tractor, to be operated in the State of Arkansas in intrastate operations; (vii) (a) Remittance of a copy of the motor carrier's latest United States Department of Transportation safety rating or, in the event the carrier has not been given a safety rating, a signed notarized statement indicating the company's intention to comply with all United States Department of Transportation safety regulations. (b) At any time as may be practical, a physical inspection of the equipment may be made by the Arkansas Highway Police Division of the Arkansas Department of Transportation; (viii) At the option of the applicant, the motor carrier may request that any and all laws, regulations, or other provisions relating to uniform cargo liability rules, uniform bills of lading and receipts for property being transported, uniform cargo credit rules, or antitrust immunity for joint line rates or routes, classification, and mileage guides, apply to the carrier; and (ix) Any other information that may be required by the commission.

(A) Every application for a permit for the transportation of property by a carrier shall be in writing on a form to be specified by the commission.

(B) The application shall contain and be accompanied by the following: (i) The name and trade name, if any, and address or location of the principal office or place of business of the applicant; (ii) A statement giving full information concerning the ownership, reasonable value, and physical condition of vehicles and other property to be used by the applicant in the intrastate operations; (iii) A full and complete financial statement giving detailed information concerning the financial condition of the applicant; (iv) Proof of public liability insurance in the amounts set out in all rules made and promulgated by the commission; (v) In the event the motor carrier did not hold a valid certificate or permit authorizing intrastate transportation by motor vehicle in this state on December 31, 1994, remittance of a processing fee in the amount of twenty-five dollars ($25.00); (vi) Remittance of an insurance filing fee in the amount of five dollars ($5.00) for each motor vehicle, truck, or truck-tractor, to be operated in the State of Arkansas in intrastate operations; (vii) (a) Remittance of a copy of the motor carrier's latest United States Department of Transportation safety rating or, in the event the carrier has not been given a safety rating, a signed notarized statement indicating the company's intention to comply with all United States Department of Transportation safety regulations. (b) At any time as may be practical, a physical inspection of the equipment may be made by the Arkansas Highway Police Division of the Arkansas Department of Transportation; (viii) At the option of the applicant, the motor carrier may request that any and all laws, regulations, or other provisions relating to uniform cargo liability rules, uniform bills of lading and receipts for property being transported, uniform cargo credit rules, or antitrust immunity for joint line rates or routes, classification, and mileage guides, apply to the carrier; and (ix) Any other information that may be required by the commission.

(i) The name and trade name, if any, and address or location of the principal office or place of business of the applicant;

(ii) A statement giving full information concerning the ownership, reasonable value, and physical condition of vehicles and other property to be used by the applicant in the intrastate operations;

(iii) A full and complete financial statement giving detailed information concerning the financial condition of the applicant;

(iv) Proof of public liability insurance in the amounts set out in all rules made and promulgated by the commission;

(v) In the event the motor carrier did not hold a valid certificate or permit authorizing intrastate transportation by motor vehicle in this state on December 31, 1994, remittance of a processing fee in the amount of twenty-five dollars ($25.00);

(vi) Remittance of an insurance filing fee in the amount of five dollars ($5.00) for each motor vehicle, truck, or truck-tractor, to be operated in the State of Arkansas in intrastate operations;

(vii) (a) Remittance of a copy of the motor carrier's latest United States Department of Transportation safety rating or, in the event the carrier has not been given a safety rating, a signed notarized statement indicating the company's intention to comply with all United States Department of Transportation safety regulations. (b) At any time as may be practical, a physical inspection of the equipment may be made by the Arkansas Highway Police Division of the Arkansas Department of Transportation;

(a) Remittance of a copy of the motor carrier's latest United States Department of Transportation safety rating or, in the event the carrier has not been given a safety rating, a signed notarized statement indicating the company's intention to comply with all United States Department of Transportation safety regulations.

(b) At any time as may be practical, a physical inspection of the equipment may be made by the Arkansas Highway Police Division of the Arkansas Department of Transportation;

(viii) At the option of the applicant, the motor carrier may request that any and all laws, regulations, or other provisions relating to uniform cargo liability rules, uniform bills of lading and receipts for property being transported, uniform cargo credit rules, or antitrust immunity for joint line rates or routes, classification, and mileage guides, apply to the carrier; and

(ix) Any other information that may be required by the commission.

(b) (1) Every motor carrier of property complying to the satisfaction of the commission with the provisions of subsection (a) of this section shall be issued a receipt for the current year indicating the name of the motor carrier's company, the principal place of business of the carrier, and the number of motor vehicles to be operated in Arkansas. (2) (A) Copies of the receipt shall be made by the motor carrier and shall be maintained in the power unit of each motor vehicle operated over the highways of Arkansas while transporting property for hire intrastate. (B) The receipt shall be presented by the driver of the motor vehicle for inspection by any authorized government personnel. (C) Failure to carry the receipt and maintain adequate proof of public liability insurance shall subject the motor carrier to the civil and criminal penalties and fines as are authorized by this subchapter.

(1) Every motor carrier of property complying to the satisfaction of the commission with the provisions of subsection (a) of this section shall be issued a receipt for the current year indicating the name of the motor carrier's company, the principal place of business of the carrier, and the number of motor vehicles to be operated in Arkansas.

(2) (A) Copies of the receipt shall be made by the motor carrier and shall be maintained in the power unit of each motor vehicle operated over the highways of Arkansas while transporting property for hire intrastate. (B) The receipt shall be presented by the driver of the motor vehicle for inspection by any authorized government personnel. (C) Failure to carry the receipt and maintain adequate proof of public liability insurance shall subject the motor carrier to the civil and criminal penalties and fines as are authorized by this subchapter.

(A) Copies of the receipt shall be made by the motor carrier and shall be maintained in the power unit of each motor vehicle operated over the highways of Arkansas while transporting property for hire intrastate.

(B) The receipt shall be presented by the driver of the motor vehicle for inspection by any authorized government personnel.

(C) Failure to carry the receipt and maintain adequate proof of public liability insurance shall subject the motor carrier to the civil and criminal penalties and fines as are authorized by this subchapter.

(c) (1) Every motor carrier of property which held a valid certificate or permit authorizing intrastate transportation by motor vehicle in the state on December 31, 1994, shall continue to be authorized to transport property for hire in the state and shall be issued an annual receipt after complying with the provisions of subdivisions (a)(3)(B)(iv), (vi), (viii), and (ix) of this section. Provided, neither the previously held certificate, the previously held permit, nor any annual receipt issued pursuant to this section shall have any asset value. (2) Every motor carrier of property initially complying with all the provisions of subsection (a) of this section to the satisfaction of the commission and issued an annual receipt shall thereafter be issued an annual receipt upon complying with subdivisions (a)(3)(B)(iv), (vi), (viii), and (ix) of this section.

(1) Every motor carrier of property which held a valid certificate or permit authorizing intrastate transportation by motor vehicle in the state on December 31, 1994, shall continue to be authorized to transport property for hire in the state and shall be issued an annual receipt after complying with the provisions of subdivisions (a)(3)(B)(iv), (vi), (viii), and (ix) of this section. Provided, neither the previously held certificate, the previously held permit, nor any annual receipt issued pursuant to this section shall have any asset value.

(2) Every motor carrier of property initially complying with all the provisions of subsection (a) of this section to the satisfaction of the commission and issued an annual receipt shall thereafter be issued an annual receipt upon complying with subdivisions (a)(3)(B)(iv), (vi), (viii), and (ix) of this section.

(d) The annual fee required by subdivision (a)(3)(B)(vi) of this section shall not be required for each motor vehicle if the motor carrier of property otherwise remits the proper annual registration fees to the commission pursuant to § 23-13-235 , or the motor carrier of property otherwise remits the proper annual registration fees for the benefit of the State of Arkansas to the motor carrier's base state.

(e) Notwithstanding any other provision of this section to the contrary, the commission shall have the authority to periodically review the motor carrier's fitness and shall have the authority to suspend or revoke the annual receipt or other credential granting the right of the motor carrier to operate intrastate if the motor carrier is determined by the commission to be unfit or unsafe, or fails to maintain adequate public liability insurance.

(f) The commission shall have the authority to make and promulgate rules for the implementation of this section.

(g) All fees received by the commission pursuant to subsection (a) of this section shall be deposited with the Treasurer of State and classified as general revenues for distribution and usage as provided by the laws of this state; provided, one and one-half percent (1.5%) of all the funds so deposited shall be classified as special revenues and transferred by the Treasurer of State on the last business day of each month in which they are deposited to the State Highway and Transportation Department Fund to be utilized by the Arkansas Department of Transportation for the purpose of administering this subchapter.

Amended by Act 2019, No. 315,§ 2450, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2449, eff. 7/24/2019.

Acts 1995, No. 746, § 3.
Ark. Code Ann. § 23-73-122 — AR Code / Title 23 / Chapter 73 / Section 23-73-122
Merger
Status: in_force

(a) Two (2) or more farmers' mutual aid associations or companies may merge as provided in this section. To effect a merger, it shall be necessary: (1) That the board of directors of each of the associations shall propose a plan of merger and pass a resolution to the effect that the merger is advisable and containing the proposed name of the association, as merged, its principal office, and the names of its first board of directors and officers; (2) That an annual or special meeting of the policyholders of each of the associations shall be held, a notice of which meeting shall be mailed to each of the policyholders thereof at least thirty (30) days prior to the holding thereof, and which notice shall embody the resolution adopted by the board of directors, as provided in subdivision (a)(1) of this section; (3) That a majority of the policyholders of each of the associations present or represented at these meetings shall, by resolution, approve and ratify the action of the directors, as provided for in subdivision (a)(1) of this section; and (4) That the plan of merger, proceeding, and resolutions be filed with and approved by the Insurance Commissioner. (b) When full copies of these proceedings have been filed with the commissioner, which copies shall be certified by the president and secretary of the respective associations and duly verified by these officers, and approved of by him or her, the merger of these companies shall be deemed to be complete, and the company so continuing the business shall be deemed to have fully assumed all of the obligations, liabilities, and risks and to be the owner of all the assets of the associations so merging. (c) If this merger is made under any new name, the filings of these proceedings and the approval of same by the commissioner shall be sufficient to constitute the merged company an association, with all the powers and privileges, and subject to all the limitations, of a farmers' mutual aid association or company under the laws of the state. Acts 1997, No. 774, § 1.

(a) Two (2) or more farmers' mutual aid associations or companies may merge as provided in this section. To effect a merger, it shall be necessary: (1) That the board of directors of each of the associations shall propose a plan of merger and pass a resolution to the effect that the merger is advisable and containing the proposed name of the association, as merged, its principal office, and the names of its first board of directors and officers; (2) That an annual or special meeting of the policyholders of each of the associations shall be held, a notice of which meeting shall be mailed to each of the policyholders thereof at least thirty (30) days prior to the holding thereof, and which notice shall embody the resolution adopted by the board of directors, as provided in subdivision (a)(1) of this section; (3) That a majority of the policyholders of each of the associations present or represented at these meetings shall, by resolution, approve and ratify the action of the directors, as provided for in subdivision (a)(1) of this section; and (4) That the plan of merger, proceeding, and resolutions be filed with and approved by the Insurance Commissioner.

(1) That the board of directors of each of the associations shall propose a plan of merger and pass a resolution to the effect that the merger is advisable and containing the proposed name of the association, as merged, its principal office, and the names of its first board of directors and officers;

(2) That an annual or special meeting of the policyholders of each of the associations shall be held, a notice of which meeting shall be mailed to each of the policyholders thereof at least thirty (30) days prior to the holding thereof, and which notice shall embody the resolution adopted by the board of directors, as provided in subdivision (a)(1) of this section;

(3) That a majority of the policyholders of each of the associations present or represented at these meetings shall, by resolution, approve and ratify the action of the directors, as provided for in subdivision (a)(1) of this section; and

(4) That the plan of merger, proceeding, and resolutions be filed with and approved by the Insurance Commissioner.

(b) When full copies of these proceedings have been filed with the commissioner, which copies shall be certified by the president and secretary of the respective associations and duly verified by these officers, and approved of by him or her, the merger of these companies shall be deemed to be complete, and the company so continuing the business shall be deemed to have fully assumed all of the obligations, liabilities, and risks and to be the owner of all the assets of the associations so merging.

(c) If this merger is made under any new name, the filings of these proceedings and the approval of same by the commissioner shall be sufficient to constitute the merged company an association, with all the powers and privileges, and subject to all the limitations, of a farmers' mutual aid association or company under the laws of the state.

Acts 1997, No. 774, § 1.
Ark. Code Ann. § 23-66-609 — AR Code / Title 23 / Chapter 66 / Subchapter 6 / Section 23-66-609
Prohibited activities
Status: in_force

No person, depository institution, or affiliate of a depository institution who lends money or extends credit may: (1) Use an advertisement or other insurance promotional material that would cause a reasonable person to mistakenly believe that the United States Government or the state is responsible for the insurance sales activity of or stands behind the credit of the person, depository institution, or its affiliate; (2) Use an advertisement or other insurance promotional material that would cause a reasonable person to mistakenly believe that the United States Government or the state guarantees any return on an insurance product or is a source of payment on any insurance obligation of or sold by the person, depository institution, or its affiliate; (3) Solicit or sell insurance unless it maintains separate books and records relating to the insurance transactions, including all files relating to and reflecting consumer complaints; or (4) (A) Pay or receive any commission, brokerage fee, or other compensation as a producer unless the person holds a valid producer's license for the applicable class of insurance. (B) However, an unlicensed person may make a referral to a licensed producer provided that the person does not: (i) Sell, solicit, or negotiate insurance; (ii) Discuss specific insurance policy terms and conditions; or (iii) Make recommendations or offer advice concerning insurance policies or coverages. (C) (i) The unlicensed person may be compensated for the referral. (ii) However, in the case of a referral of a customer, the unlicensed person may be compensated only if the compensation is a fixed dollar amount for each referral that does not depend on whether the customer purchases the insurance product from the licensed producer. (D) Any person who accepts deposits from the public in an area where such transactions are routinely conducted in the depository institution may receive for each customer referral no more than a one-time, nominal fee of a fixed dollar amount for each referral that does not depend on whether the referral results in a transaction. Acts 2003, No. 1747, § 13.

No person, depository institution, or affiliate of a depository institution who lends money or extends credit may:

(1) Use an advertisement or other insurance promotional material that would cause a reasonable person to mistakenly believe that the United States Government or the state is responsible for the insurance sales activity of or stands behind the credit of the person, depository institution, or its affiliate;

(2) Use an advertisement or other insurance promotional material that would cause a reasonable person to mistakenly believe that the United States Government or the state guarantees any return on an insurance product or is a source of payment on any insurance obligation of or sold by the person, depository institution, or its affiliate;

(3) Solicit or sell insurance unless it maintains separate books and records relating to the insurance transactions, including all files relating to and reflecting consumer complaints; or

(4) (A) Pay or receive any commission, brokerage fee, or other compensation as a producer unless the person holds a valid producer's license for the applicable class of insurance. (B) However, an unlicensed person may make a referral to a licensed producer provided that the person does not: (i) Sell, solicit, or negotiate insurance; (ii) Discuss specific insurance policy terms and conditions; or (iii) Make recommendations or offer advice concerning insurance policies or coverages. (C) (i) The unlicensed person may be compensated for the referral. (ii) However, in the case of a referral of a customer, the unlicensed person may be compensated only if the compensation is a fixed dollar amount for each referral that does not depend on whether the customer purchases the insurance product from the licensed producer. (D) Any person who accepts deposits from the public in an area where such transactions are routinely conducted in the depository institution may receive for each customer referral no more than a one-time, nominal fee of a fixed dollar amount for each referral that does not depend on whether the referral results in a transaction.

(A) Pay or receive any commission, brokerage fee, or other compensation as a producer unless the person holds a valid producer's license for the applicable class of insurance.

(B) However, an unlicensed person may make a referral to a licensed producer provided that the person does not: (i) Sell, solicit, or negotiate insurance; (ii) Discuss specific insurance policy terms and conditions; or (iii) Make recommendations or offer advice concerning insurance policies or coverages.

(i) Sell, solicit, or negotiate insurance;

(ii) Discuss specific insurance policy terms and conditions; or

(iii) Make recommendations or offer advice concerning insurance policies or coverages.

(C) (i) The unlicensed person may be compensated for the referral. (ii) However, in the case of a referral of a customer, the unlicensed person may be compensated only if the compensation is a fixed dollar amount for each referral that does not depend on whether the customer purchases the insurance product from the licensed producer.

(i) The unlicensed person may be compensated for the referral.

(ii) However, in the case of a referral of a customer, the unlicensed person may be compensated only if the compensation is a fixed dollar amount for each referral that does not depend on whether the customer purchases the insurance product from the licensed producer.

(D) Any person who accepts deposits from the public in an area where such transactions are routinely conducted in the depository institution may receive for each customer referral no more than a one-time, nominal fee of a fixed dollar amount for each referral that does not depend on whether the referral results in a transaction.

Acts 2003, No. 1747, § 13.
Ark. Code Ann. § 23-55-601 — AR Code / Title 23 / Chapter 55 / Section 23-55-601
Authority to conduct examinations and investigations
Status: in_force

(a) The Securities Commissioner or the commissioner's designee may conduct an annual examination of a licensee or of any of its authorized delegates upon 45 days' notice in a record to the licensee. (b) The commissioner may examine a licensee or its authorized delegate, at any time, without notice, if the commissioner has reason to believe that the licensee or authorized delegate is engaging in an unsafe or unsound practice or has violated or is violating this chapter or a rule adopted or an order issued under this chapter. (c) (1) The licensee, applicant, or person subject to licensing under this chapter shall pay a fee for each examination, not to exceed one hundred fifty dollars ($150) per examiner for each day or for part of a day during which the examiner is conducting the examination. (2) In addition to the fee prescribed under subdivision (c)(1) of this section, the licensee, applicant, or person subject to licensing under this chapter may be required to pay the actual hotel and traveling expenses of each examiner traveling to and from the office of the commissioner while the examiner is conducting the examination. (d) Information obtained during an examination under this chapter may be disclosed only as provided in § 23-55-607 . (e) The commissioner may: (1) Make any investigations within or outside of this state that he or she deems necessary to determine whether a person has violated or is about to violate this chapter or any rule or order under this chapter, or to aid in the enforcement of this chapter; (2) Require or permit a person to file a sworn, written statement or submit any other form of evidence concerning the matter to be investigated; and (3) Publish information concerning a violation of this chapter or a rule or order issued under this chapter. (f) For the purpose of an investigation or proceeding under this chapter, the commissioner or the commissioner's designee may: (1) Administer oaths and affirmations; (2) Subpoena and compel the attendance of witnesses; (3) Take evidence; and (4) Require the production of books, papers, correspondence, memoranda, agreements, or other documents or records that the commissioner deems relevant or material to the inquiry. (g) (1) In case of contumacy by or the refusal to obey a subpoena issued to a person, the Pulaski County Circuit Court upon application by the commissioner may order the person to appear before the commissioner or the commissioner's designee to testify or produce documentary or other evidence concerning the matter under investigation or in question. (2) Failure to obey the order of the court may be punished by the court as a contempt of court. (h) (1) A person shall not refuse to appear, testify, or produce evidence before the commissioner or the commissioner's designee on the ground that the testimony or evidence may tend to incriminate the person or subject the person to a penalty or forfeiture. (2) (A) After claiming a privilege against self-incrimination, an individual shall not be prosecuted or subjected to a penalty or forfeiture for or on account of a transaction, matter, or thing concerning which the individual is compelled to testify or produce evidence, documentary or otherwise. (B) However, an individual is not exempt from prosecution and punishment for perjury or contempt committed while testifying or producing evidence, documentary or otherwise. (i) (1) To aid an examination or investigation under this chapter, the commissioner or the commissioner's designee may at any time examine: (A) The business of a licensee, an authorized delegate of a licensee, or any other person engaged in the business of providing money services, whether the person acts or claims to act under or without the authority of this chapter; and (B) Wherever located, the books, accounts, records, papers, documents, files, and other information used in the business of a licensee, an authorized delegate of a licensee, or any other person engaged in the business of providing money services, whether the person acts or claims to act under or without the authority of this chapter. (2) The commissioner or the commissioner's designee shall have free access to the offices and places of business, books, accounts, papers, documents, other information, records, files, safes, and vaults to conduct the examination or investigation under this section. (3) The commissioner or the commissioner's designee may request through a record the books, accounts, papers, documents, other information, records, and files to be provided to the commissioner on 7 business-days' notice. Amended by Act 2023, No. 442,§ 6, eff. 8/1/2023. Amended by Act 2021, No. 532,§ 16, eff. 7/28/2021. Acts 2007, No. 1595, § 1; 2009, No. 486, § 13; 2011, No. 733, § 10.

(a) The Securities Commissioner or the commissioner's designee may conduct an annual examination of a licensee or of any of its authorized delegates upon 45 days' notice in a record to the licensee.

(b) The commissioner may examine a licensee or its authorized delegate, at any time, without notice, if the commissioner has reason to believe that the licensee or authorized delegate is engaging in an unsafe or unsound practice or has violated or is violating this chapter or a rule adopted or an order issued under this chapter.

(c) (1) The licensee, applicant, or person subject to licensing under this chapter shall pay a fee for each examination, not to exceed one hundred fifty dollars ($150) per examiner for each day or for part of a day during which the examiner is conducting the examination. (2) In addition to the fee prescribed under subdivision (c)(1) of this section, the licensee, applicant, or person subject to licensing under this chapter may be required to pay the actual hotel and traveling expenses of each examiner traveling to and from the office of the commissioner while the examiner is conducting the examination.

(1) The licensee, applicant, or person subject to licensing under this chapter shall pay a fee for each examination, not to exceed one hundred fifty dollars ($150) per examiner for each day or for part of a day during which the examiner is conducting the examination.

(2) In addition to the fee prescribed under subdivision (c)(1) of this section, the licensee, applicant, or person subject to licensing under this chapter may be required to pay the actual hotel and traveling expenses of each examiner traveling to and from the office of the commissioner while the examiner is conducting the examination.

(d) Information obtained during an examination under this chapter may be disclosed only as provided in § 23-55-607 .

(e) The commissioner may: (1) Make any investigations within or outside of this state that he or she deems necessary to determine whether a person has violated or is about to violate this chapter or any rule or order under this chapter, or to aid in the enforcement of this chapter; (2) Require or permit a person to file a sworn, written statement or submit any other form of evidence concerning the matter to be investigated; and (3) Publish information concerning a violation of this chapter or a rule or order issued under this chapter.

(1) Make any investigations within or outside of this state that he or she deems necessary to determine whether a person has violated or is about to violate this chapter or any rule or order under this chapter, or to aid in the enforcement of this chapter;

(2) Require or permit a person to file a sworn, written statement or submit any other form of evidence concerning the matter to be investigated; and

(3) Publish information concerning a violation of this chapter or a rule or order issued under this chapter.

(f) For the purpose of an investigation or proceeding under this chapter, the commissioner or the commissioner's designee may: (1) Administer oaths and affirmations; (2) Subpoena and compel the attendance of witnesses; (3) Take evidence; and (4) Require the production of books, papers, correspondence, memoranda, agreements, or other documents or records that the commissioner deems relevant or material to the inquiry.

(1) Administer oaths and affirmations;

(2) Subpoena and compel the attendance of witnesses;

(3) Take evidence; and

(4) Require the production of books, papers, correspondence, memoranda, agreements, or other documents or records that the commissioner deems relevant or material to the inquiry.

(g) (1) In case of contumacy by or the refusal to obey a subpoena issued to a person, the Pulaski County Circuit Court upon application by the commissioner may order the person to appear before the commissioner or the commissioner's designee to testify or produce documentary or other evidence concerning the matter under investigation or in question. (2) Failure to obey the order of the court may be punished by the court as a contempt of court.

(1) In case of contumacy by or the refusal to obey a subpoena issued to a person, the Pulaski County Circuit Court upon application by the commissioner may order the person to appear before the commissioner or the commissioner's designee to testify or produce documentary or other evidence concerning the matter under investigation or in question.

(2) Failure to obey the order of the court may be punished by the court as a contempt of court.

(h) (1) A person shall not refuse to appear, testify, or produce evidence before the commissioner or the commissioner's designee on the ground that the testimony or evidence may tend to incriminate the person or subject the person to a penalty or forfeiture. (2) (A) After claiming a privilege against self-incrimination, an individual shall not be prosecuted or subjected to a penalty or forfeiture for or on account of a transaction, matter, or thing concerning which the individual is compelled to testify or produce evidence, documentary or otherwise. (B) However, an individual is not exempt from prosecution and punishment for perjury or contempt committed while testifying or producing evidence, documentary or otherwise.

(1) A person shall not refuse to appear, testify, or produce evidence before the commissioner or the commissioner's designee on the ground that the testimony or evidence may tend to incriminate the person or subject the person to a penalty or forfeiture.

(2) (A) After claiming a privilege against self-incrimination, an individual shall not be prosecuted or subjected to a penalty or forfeiture for or on account of a transaction, matter, or thing concerning which the individual is compelled to testify or produce evidence, documentary or otherwise. (B) However, an individual is not exempt from prosecution and punishment for perjury or contempt committed while testifying or producing evidence, documentary or otherwise.

(A) After claiming a privilege against self-incrimination, an individual shall not be prosecuted or subjected to a penalty or forfeiture for or on account of a transaction, matter, or thing concerning which the individual is compelled to testify or produce evidence, documentary or otherwise.

(B) However, an individual is not exempt from prosecution and punishment for perjury or contempt committed while testifying or producing evidence, documentary or otherwise.

(i) (1) To aid an examination or investigation under this chapter, the commissioner or the commissioner's designee may at any time examine: (A) The business of a licensee, an authorized delegate of a licensee, or any other person engaged in the business of providing money services, whether the person acts or claims to act under or without the authority of this chapter; and (B) Wherever located, the books, accounts, records, papers, documents, files, and other information used in the business of a licensee, an authorized delegate of a licensee, or any other person engaged in the business of providing money services, whether the person acts or claims to act under or without the authority of this chapter. (2) The commissioner or the commissioner's designee shall have free access to the offices and places of business, books, accounts, papers, documents, other information, records, files, safes, and vaults to conduct the examination or investigation under this section. (3) The commissioner or the commissioner's designee may request through a record the books, accounts, papers, documents, other information, records, and files to be provided to the commissioner on 7 business-days' notice.

(1) To aid an examination or investigation under this chapter, the commissioner or the commissioner's designee may at any time examine: (A) The business of a licensee, an authorized delegate of a licensee, or any other person engaged in the business of providing money services, whether the person acts or claims to act under or without the authority of this chapter; and (B) Wherever located, the books, accounts, records, papers, documents, files, and other information used in the business of a licensee, an authorized delegate of a licensee, or any other person engaged in the business of providing money services, whether the person acts or claims to act under or without the authority of this chapter.

(A) The business of a licensee, an authorized delegate of a licensee, or any other person engaged in the business of providing money services, whether the person acts or claims to act under or without the authority of this chapter; and

(B) Wherever located, the books, accounts, records, papers, documents, files, and other information used in the business of a licensee, an authorized delegate of a licensee, or any other person engaged in the business of providing money services, whether the person acts or claims to act under or without the authority of this chapter.

(2) The commissioner or the commissioner's designee shall have free access to the offices and places of business, books, accounts, papers, documents, other information, records, files, safes, and vaults to conduct the examination or investigation under this section.

(3) The commissioner or the commissioner's designee may request through a record the books, accounts, papers, documents, other information, records, and files to be provided to the commissioner on 7 business-days' notice.

Amended by Act 2023, No. 442,§ 6, eff. 8/1/2023.

Amended by Act 2021, No. 532,§ 16, eff. 7/28/2021.

Acts 2007, No. 1595, § 1; 2009, No. 486, § 13; 2011, No. 733, § 10.
Ark. Code Ann. § 23-93-111 — AR Code / Title 23 / Chapter 93 / Subchapter 1 / Section 23-93-111
Liquid refund reserve requirement
Status: in_force

(a) (1) Each provider shall establish and maintain liquid refund reserves in an amount determined in accordance with this section. (2) (A) The refund reserve shall be equal to or shall exceed the actuarially determined annual refund amount as of the financial reporting date. (B) The actuarially determined annual refund amount shall be calculated upon both the actual experience of the facility and published industry norms. (C) The method which yields the greater sum shall determine the actuarially determined annual refund amount for the purposes of this section and § 23-93-106(a)(8) . (b) The provider may satisfy the liquid reserve requirement by: (1) Holding the reserve amount in an escrow account with a federally insured financial institution or institutions located and doing business in this state; (2) Purchasing a certificate of deposit from an Arkansas lending institution; (3) Investing in bonds, notes, warrants, and other evidences of indebtedness which are direct obligations of the United States of America held in the provider's name and held by the provider within the State of Arkansas; (4) Having the unqualified guaranty of an affiliated organization or individual, as evidenced by a written agreement, whose net worth as reported in its most recent financial statement audited by a certified public accountant and certified by the provider and filed with the State Insurance Department, which is equal to five (5) times the reserve amount or portion of the reserve amount to be satisfied by this method; or (5) Any combination of the foregoing. (c) When requested by the Insurance Commissioner, the provider shall furnish all of the information relating to the amount of the reserve and the method used to maintain the reserve amount. Acts 1987, No. 329, § 8; 1989, No. 203, § 3.

(a) (1) Each provider shall establish and maintain liquid refund reserves in an amount determined in accordance with this section. (2) (A) The refund reserve shall be equal to or shall exceed the actuarially determined annual refund amount as of the financial reporting date. (B) The actuarially determined annual refund amount shall be calculated upon both the actual experience of the facility and published industry norms. (C) The method which yields the greater sum shall determine the actuarially determined annual refund amount for the purposes of this section and § 23-93-106(a)(8) .

(1) Each provider shall establish and maintain liquid refund reserves in an amount determined in accordance with this section.

(2) (A) The refund reserve shall be equal to or shall exceed the actuarially determined annual refund amount as of the financial reporting date. (B) The actuarially determined annual refund amount shall be calculated upon both the actual experience of the facility and published industry norms. (C) The method which yields the greater sum shall determine the actuarially determined annual refund amount for the purposes of this section and § 23-93-106(a)(8) .

(A) The refund reserve shall be equal to or shall exceed the actuarially determined annual refund amount as of the financial reporting date.

(B) The actuarially determined annual refund amount shall be calculated upon both the actual experience of the facility and published industry norms.

(C) The method which yields the greater sum shall determine the actuarially determined annual refund amount for the purposes of this section and § 23-93-106(a)(8) .

(b) The provider may satisfy the liquid reserve requirement by: (1) Holding the reserve amount in an escrow account with a federally insured financial institution or institutions located and doing business in this state; (2) Purchasing a certificate of deposit from an Arkansas lending institution; (3) Investing in bonds, notes, warrants, and other evidences of indebtedness which are direct obligations of the United States of America held in the provider's name and held by the provider within the State of Arkansas; (4) Having the unqualified guaranty of an affiliated organization or individual, as evidenced by a written agreement, whose net worth as reported in its most recent financial statement audited by a certified public accountant and certified by the provider and filed with the State Insurance Department, which is equal to five (5) times the reserve amount or portion of the reserve amount to be satisfied by this method; or (5) Any combination of the foregoing.

(1) Holding the reserve amount in an escrow account with a federally insured financial institution or institutions located and doing business in this state;

(2) Purchasing a certificate of deposit from an Arkansas lending institution;

(3) Investing in bonds, notes, warrants, and other evidences of indebtedness which are direct obligations of the United States of America held in the provider's name and held by the provider within the State of Arkansas;

(4) Having the unqualified guaranty of an affiliated organization or individual, as evidenced by a written agreement, whose net worth as reported in its most recent financial statement audited by a certified public accountant and certified by the provider and filed with the State Insurance Department, which is equal to five (5) times the reserve amount or portion of the reserve amount to be satisfied by this method; or

(5) Any combination of the foregoing.

(c) When requested by the Insurance Commissioner, the provider shall furnish all of the information relating to the amount of the reserve and the method used to maintain the reserve amount.

Acts 1987, No. 329, § 8; 1989, No. 203, § 3.
Ark. Code Ann. § 23-113-401 — AR Code / Title 23 / Chapter 113 / Subchapter 4 / Section 23-113-401
Contribution to purses and promotion of Arkansas thoroughbred and greyhound breeding activities
Status: in_force

(a) An amount equal to fourteen percent (14%) of the net wagering revenues from electronic games of skill shall be set aside by the franchise holder in a separate account and used only for purses for live horse racing or live greyhound racing conducted by the franchise holder, as the case may be. (b) With respect to a franchise holder operating a franchise to conduct horse racing, an amount equal to one percent (1%) of the net wagering revenues from electronic games of skill conducted by the horse racing franchise holder shall be paid by the franchise holder to the Arkansas Racing Commission for deposit into the Arkansas Racing Commission Purse and Awards Fund to be used for purse supplements, breeders' awards, owners' awards, and stallion awards as provided in § 23-110-409 in order to promote and encourage thoroughbred horse breeding activities in Arkansas. (c) With respect to a franchise holder operating a franchise to conduct greyhound racing, an amount equal to one percent (1%) of the net wagering revenues from electronic games of skill conducted by the greyhound racing franchise holder shall be paid by the franchise holder to the commission to be used for breeders' awards as provided in the commission's rules governing greyhound racing in Arkansas in order to promote and encourage greyhound breeding activities in Arkansas. (d) (1) The dedication of net wagering revenues from electronic games of skill to purses and breeding activities as set forth in this section shall not be subject to any contract or agreement between the franchise holder and any organization representing horsemen or greyhound owners or trainers, to the end that any such contractual obligations for the use of moneys for purses shall not apply to the funds dedicated to purses and breeding activities as set forth in this section. (2) The moneys dedicated to purses and breeding activities as set forth in this section are intended to be in addition to any such contractual purse obligations affecting moneys other than the amounts dedicated to purses and breeding activities as set forth in this section, as well as in addition to amounts required to be used for purses and breeding activities under applicable provisions of the Arkansas Horse Racing Law, § 23-110-101 et seq., and the Arkansas Greyhound Racing Law, § 23-111-101 et seq., as the case may be. (e) The commission shall have jurisdiction to check and verify compliance by the franchise holder with the provisions of this section and shall make periodic determinations as to compliance under rules adopted by the commission. Amended by Act 2019, No. 315,§ 2839, eff. 7/24/2019. Amended by Act 2019, No. 315,§ 2838, eff. 7/24/2019. Acts 2005, No. 1151, § 1.

(a) An amount equal to fourteen percent (14%) of the net wagering revenues from electronic games of skill shall be set aside by the franchise holder in a separate account and used only for purses for live horse racing or live greyhound racing conducted by the franchise holder, as the case may be.

(b) With respect to a franchise holder operating a franchise to conduct horse racing, an amount equal to one percent (1%) of the net wagering revenues from electronic games of skill conducted by the horse racing franchise holder shall be paid by the franchise holder to the Arkansas Racing Commission for deposit into the Arkansas Racing Commission Purse and Awards Fund to be used for purse supplements, breeders' awards, owners' awards, and stallion awards as provided in § 23-110-409 in order to promote and encourage thoroughbred horse breeding activities in Arkansas.

(c) With respect to a franchise holder operating a franchise to conduct greyhound racing, an amount equal to one percent (1%) of the net wagering revenues from electronic games of skill conducted by the greyhound racing franchise holder shall be paid by the franchise holder to the commission to be used for breeders' awards as provided in the commission's rules governing greyhound racing in Arkansas in order to promote and encourage greyhound breeding activities in Arkansas.

(d) (1) The dedication of net wagering revenues from electronic games of skill to purses and breeding activities as set forth in this section shall not be subject to any contract or agreement between the franchise holder and any organization representing horsemen or greyhound owners or trainers, to the end that any such contractual obligations for the use of moneys for purses shall not apply to the funds dedicated to purses and breeding activities as set forth in this section. (2) The moneys dedicated to purses and breeding activities as set forth in this section are intended to be in addition to any such contractual purse obligations affecting moneys other than the amounts dedicated to purses and breeding activities as set forth in this section, as well as in addition to amounts required to be used for purses and breeding activities under applicable provisions of the Arkansas Horse Racing Law, § 23-110-101 et seq., and the Arkansas Greyhound Racing Law, § 23-111-101 et seq., as the case may be.

(1) The dedication of net wagering revenues from electronic games of skill to purses and breeding activities as set forth in this section shall not be subject to any contract or agreement between the franchise holder and any organization representing horsemen or greyhound owners or trainers, to the end that any such contractual obligations for the use of moneys for purses shall not apply to the funds dedicated to purses and breeding activities as set forth in this section.

(2) The moneys dedicated to purses and breeding activities as set forth in this section are intended to be in addition to any such contractual purse obligations affecting moneys other than the amounts dedicated to purses and breeding activities as set forth in this section, as well as in addition to amounts required to be used for purses and breeding activities under applicable provisions of the Arkansas Horse Racing Law, § 23-110-101 et seq., and the Arkansas Greyhound Racing Law, § 23-111-101 et seq., as the case may be.

(e) The commission shall have jurisdiction to check and verify compliance by the franchise holder with the provisions of this section and shall make periodic determinations as to compliance under rules adopted by the commission.

Amended by Act 2019, No. 315,§ 2839, eff. 7/24/2019.

Amended by Act 2019, No. 315,§ 2838, eff. 7/24/2019.

Acts 2005, No. 1151, § 1.