Subchapter 1. General Provisions
§ 23-111-101. Citation
§ 23-111-102. Applicability of provisions
§ 23-111-103. Nonapplicability of provisions
§ 23-111-104. General revenues
§ 23-111-105. Racing passes
Subchapter 2. Arkansas Racing Commission
§ 23-111-201. Definition, jurisdiction, etc.
§ 23-111-202. Requirements for membership
§ 23-111-203. Powers and duties generally
§ 23-111-204. Authority generally
§ 23-111-205. Hearings
Subchapter 3. Franchises Generally
§ 23-111-301. Greyhound racing
§ 23-111-302. Franchise application requirements generally
§ 23-111-303. Approval of majority of qualified electors
§ 23-111-304. Publication of election notice--Ballot language
§ 23-111-305. Grant of franchise to conduct racing
§ 23-111-306. Subsequent referendum elections
§ 23-111-307. Permits granted prior to July 1, 1957
§ 23-111-308. Minors--Employment of residents
Subchapter 4. Officers, Directors, Stockholders, Etc., of Franchises
§ 23-111-401. Legislative intent
§ 23-111-402. Definition
§ 23-111-403. Applicability of provisions
§ 23-111-404. Franchise applications
§ 23-111-405. Background investigations
§ 23-111-406. Elector and residency requirements
§ 23-111-407. Changes in management
§ 23-111-408. Sharing of information
§ 23-111-409. Investigation of management
Subchapter 5. Conduct of Meets
§ 23-111-501. Greyhound racing--Offenses
§ 23-111-502. Racing days and hours generally
§ 23-111-503. Additional days of racing--Authorization
§ 23-111-504. Additional days of racing--Net proceeds generally
§ 23-111-505. Additional days of racing--Indigent patients hospitalization fund
§ 23-111-506. Racing meets--Application--Bond
§ 23-111-507. Repealed by Acts of 2007, Act 856, § 4, eff. April 3, 2007
§ 23-111-508. Wagering
§ 23-111-509. Moneys wagered--Books and records
§ 23-111-510. Admission tax
§ 23-111-511. Audits
§ 23-111-512. Commission access to race meeting grounds, records
§ 23-111-513. Failure to pay tax
§ 23-111-514. Bond requirements
§ 23-111-515. Additional racing days--Distribution of proceeds--Institutions of higher education
§ 23-111-516. Health insurance for employees of franchised dog racing facilities
§ 23-111-517. Disposition of pari-mutuel tax revenue
§ 23-111-518. Legislative intent--Definitions--Payable winnings agreements
Subchapter 1. General Provisions
§ 23-111-101. Citation
This chapter shall be referred to and may be cited as the "Arkansas Greyhound Racing Law".
Credits
Acts of 1957, Act 191, § 1.
§ 23-111-102. Applicability of provisions
Nothing contained in this chapter shall in any way be construed to apply to any other method or manner of racing except the racing of greyhounds as provided in this chapter.
Credits
Acts of 1957, Act 191, § 25.
§ 23-111-103. Nonapplicability of provisions
All other acts and parts of acts inconsistent with any of the provisions of this chapter are expressly declared not to apply to any person, partnership, group, association, trust, or corporation engaged or participating in racing or making or contributing to the pari-mutuel or certificate method of wagering in manner and form as provided for by this chapter at any race meeting held or conducted by any franchise holder having a license for the holding or conducting of the race meetings as provided by this chapter.
Credits
Acts of 1957, Act 191, § 26.
§ 23-111-104. General revenues
(a) All franchise or license fees, excise or privilege taxes, penalties, fines, costs, and other amounts received by the Arkansas Racing Commission under the provisions of this chapter shall be general revenues and shall be deposited into the State Treasury to the credit of the State Apportionment Fund.
(b) The Treasurer of State shall allocate and transfer the money to the various State Treasury funds participating in general revenues in the respective proportions to each as provided by, and to be used for the respective purposes set forth in, the Revenue Stabilization Law, § 19-5-101 et seq.
(c)(1) However, any increase in the amount designated by the commission for licensing fees after January 1, 2017, shall be returned to and deposited into a cash fund of the Racing Division.
(2) With the approval of the commission, funds deposited into the cash fund under subdivision (c)(1) of this section shall be used to pay for drug testing or other expenses related to the regulations of dog racing in Arkansas.
Credits
Acts of 1957, Act 191, § 27; Acts of 2017, Act 425, § 3, eff. Aug. 1, 2017.
§ 23-111-105. Racing passes
(a) The Secretary of the Department of Finance and Administration shall set a maximum number of racing passes to be printed and issued annually, and it shall not be fewer than the number printed in 1990.
(b)(1) Racing passes provided to and accepted by members of the General Assembly and constitutional officers are to be distributed by them to their constituents in order to provide for a statewide distribution of the racing passes and to persons residing outside the State of Arkansas in order to promote tourism and advance the economic interests of the state.
(2) The passes provided to the members of the General Assembly and constitutional officers are not for their personal use but are for redistribution as provided in this section and, therefore, do not constitute gifts or compensation to members of the General Assembly and constitutional officers for the purposes of any law of this state.
(3) This section does not prohibit members of the General Assembly and constitutional officers from redistributing racing passes to other members of the General Assembly or other state constitutional officers.
Credits
Acts of 1991, Act 1117, § 5; Acts of 1993, Act 341, § 5, eff. July 1, 1993; Acts of 1995, Act 7, § 6, eff. July 1, 1995; Acts of 1997, Act 73, § 6, eff. July 1, 1997; Acts of 2001, Act 408, § 1, eff. Feb. 23, 2001; Acts of 2019, Act 910, § 3515, eff. July 1, 2019.
Subchapter 2. Arkansas Racing Commission
§ 23-111-201. Definition, jurisdiction, etc.
(a) All references to "commission" in this chapter mean the Arkansas Racing Commission or its successor having jurisdiction over thoroughbred horse racing in this state.
(b) In addition to all other duties, powers, and responsibilities conferred upon it by other laws of this state, the commission shall exercise duties, powers, and responsibilities over greyhound racing as authorized in this chapter.
Credits
Acts of 1957, Act 191, § 2.
§ 23-111-202. Requirements for membership
No person who is officially connected with, employed by, financially interested in, or related within the third degree of consanguinity or affinity to any officer or stockholder of an applicant for, or any officer or stockholder of a holder of, a franchise applied for or issued under or pursuant to the provisions of this chapter shall be eligible to serve as a member of the Arkansas Racing Commission having authority to administer this chapter.
Credits
Acts of 1957, Act 191, § 3.
§ 23-111-203. Powers and duties generally
(a) Subject to the limitations and conditions as in this chapter or other applicable law provided, the Arkansas Racing Commission shall have sole jurisdiction over the business and the sport of greyhound racing in the state where the racing is permitted for any stake, purse, or reward.
(b) In exercising the jurisdiction as provided in subsection (a) of this section, but without necessarily being limited to the following, it shall be the function, power, and duty of the commission to:
(1) Grant franchises to conduct greyhound races;
(2) Approve dates for each racing meet and issue permits therefor;
(3) Issue licenses to:
(A) An attendant;
(B) A franchise holder's employee;
(C) A greyhound handler;
(D) A kennel employee;
(E) A kennel helper;
(F) A greyhound owner;
(G) A greyhound trainer;
(H) An assistant greyhound trainer;
(I) A veterinarian;
(J) A veterinarian assistant; and
(K) An authorized agent, contractor, vendor, or other person employed or involved with the care of greyhounds or greyhound racing on the grounds of the licensed racetrack;
(4) Establish by rule the license fees, not to exceed one hundred fifty dollars ($150) per applicant, for a license issued under subdivision (b)(3) of this section;
(5) Collect and deposit into the State Treasury all fees for franchises and licenses, all taxes and other imposts, and all other moneys due the State of Arkansas in relation to greyhound racing;
(6) Hear and determine all matters properly coming before the commission and grant rehearings thereon; and
(7)(A) Take other action, not inconsistent with law, as it may deem necessary or desirable to supervise and regulate and to effectively control in the public interest greyhound racing in the State of Arkansas, including without limitation:
(i) Imposing fines in an amount not to exceed one hundred thousand dollars ($100,000) per violation of a rule of the commission;
(ii) Issuing orders;
(iii) Ordering the forfeiture of purse money won by a disqualified greyhound;
(iv) Prescribing conditions under which greyhound racing shall be conducted by a franchise holder;
(v) Promulgating rules;
(vi) Redistributing forfeited purse money; and
(vii) Suspending or revoking licenses.
(B) The commission shall exercise its authority under this subsection in a reasonable manner.
(C) The holder of a franchise or a taxpayer may appeal an action of the commission to the Pulaski County Circuit Court.
(c)(1)(A) The commission may require an applicant to be fingerprinted to determine the applicant's suitability to be issued a license as a greyhound owner or trainer.
(B) If required by the commission, the fingerprints shall be forwarded by the commission to the Department of Arkansas State Police for statewide criminal and noncriminal background checks.
(C) After completion of the statewide criminal and noncriminal background checks, the fingerprints shall be forwarded by the department to the Federal Bureau of Investigation for a national criminal history record check.
(2) The applicant shall sign a release that authorizes the:
(A) Department to forward the applicant's fingerprint card to the Federal Bureau of Investigation for a national criminal history record check; and
(B) Release of the results of the statewide criminal and noncriminal background checks and the national criminal history record check to the commission.
(3)(A) Any information received by the commission from the statewide criminal and noncriminal background check and the national criminal history record check shall be kept confidential and may be used by the commission only for the purpose of determining the applicant's suitability to be licensed by the commission.
(B) The commission may disclose any information under subdivision (c)(3)(A) of this section to the applicant or the applicant's duly authorized representative.
(4) No statewide criminal and noncriminal background checks or national criminal history record check shall be required of applicants for certain classes of licenses that have been exempted from investigation by rules promulgated by the commission.
(5) The commission shall promulgate rules to implement this subsection.
Credits
Acts of 1957, Act 191, § 4; Acts of 2007, Act 856, § 3, eff. April 3, 2007; Acts of 2013, Act 350, §§ 3, 4, eff. March 14, 2013; Acts of 2017, Act 425, § 4, eff. Aug. 1, 2017.
§ 23-111-204. Authority generally
(a) The Arkansas Racing Commission shall have full, complete, and sole power and authority to promulgate rules and orders and prescribe conditions under which greyhound racing shall be conducted by a franchise holder, but the power and authority so granted shall be exercised by the commission in a reasonable manner. The holder of any franchise, or any taxpayer, shall have redress to the Pulaski County Circuit Court for any wrong committed by the commission in the exercise of the power and authority granted pursuant to this section.
(b)(1) The commission shall have no right or power to determine who shall be officers or employees of any franchise holder.
(2) However, the commission may by rule require that all officers and employees, or agents, of the franchise holder who are in charge of, or whose duties relate directly to, the running of races, and the handling of any funds which may be wagered on any race, be approved by the commission.
(3) The commission may compel the discharge of any official, employee, or agent of the franchise holder who fails or refuses to comply with the rules or orders of the commission or who, in the opinion of the commission, is guilty of fraud or dishonesty.
Credits
Acts of 1957, Act 191, § 12; Acts of 2019, Act 315, § 2819, eff. July 24, 2019.
§ 23-111-205. Hearings
(a)(1) In the event any franchise holder or person is aggrieved by any action of the Arkansas Racing Commission, he or she shall be entitled to a hearing by the commission.
(2)(A) The hearing shall be held at such place in the State of Arkansas and at such time as the commission may designate.
(B) Notice shall be served on the party affected by mailing the notice of the time and place that the hearing will be held by registered or certified United States mail to the party affected.
(3) In conducting the hearing, the commission shall not be bound by technical rules of evidence.
(4) Any party affected in the hearing may be represented by counsel and shall have the right to introduce evidence, and the commission may in its discretion likewise be represented by counsel at the hearing. The counsel shall participate in the conduct of the hearing for and on behalf of the commission.
(b)(1) For purposes of conducting a hearing, the commission shall have the power to administer oaths, issue subpoenas, and compel the attendance and testimony of witnesses.
(2) Any person who has been served with a subpoena to appear and testify issued by the commission in the course of an inquiry or hearing conducted under the provisions of this chapter and who shall refuse and neglect to appear or testify relative to the hearing as commanded in the subpoena shall be guilty of a violation and upon conviction shall be fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500).
(3) In connection with any hearing, the commission or the aggrieved may cause the deposition of witnesses within or without the state to be taken in the manner prescribed by existing statutes for the taking of depositions in this state.
(c) All hearings shall be held before at least three (3) members of the commission, and the concurrence of at least three (3) members of the commission shall be necessary for any finding or order.
(d) At the conclusion of the hearing, the commission shall make its findings to be the basis for the action taken by the commission. The findings and order shall be subject to review in Pulaski County Circuit Court, from which an appeal may be taken to the Supreme Court.
Credits
Acts of 1957, Act 191, § 15; Acts of 1965, Act 176, § 4; Acts of 2005, Act 1994, § 157, eff. Aug. 12, 2005.
Subchapter 3. Franchises Generally
§ 23-111-301. Greyhound racing
(a)(1) Greyhound racing may be conducted in all political subdivisions of the State of Arkansas, but only by the holder of a franchise granted by the Arkansas Racing Commission, and the commission may grant a franchise only to a corporation organized under the laws of this state.
(2) Franchises may not be granted by the commission to individuals, partnerships, associations, trusts, or to any others except corporations as provided in this section.
(b)(1) However, in the event that the limitations contained in subsection (a) of this section are declared unconstitutional, then the commission may grant franchises to individuals, partnerships, associations, trusts, and corporations.
(2) Wherever the word "corporation" shall appear in this chapter, it shall be deemed to include the enumeration in subdivision (b)(1) of this section in the event of the declaration of unconstitutionality.
(c) The commission may not grant more than one (1) franchise for conducting greyhound racing meets in a single county.
(d) No franchise or temporary franchise shall be granted whenever the cost of the plant proposed to be constructed, including lands, buildings, facilities, and equipment, shall be less than one million dollars ($1,000,000).
Credits
Acts of 1957, Act 191, §§ 5, 7.
§ 23-111-302. Franchise application requirements generally
(a) Any corporation desiring a franchise to conduct greyhound racing in any county in which a current franchise for greyhound racing is not held by another shall file its application therefor with the Arkansas Racing Commission and deposit with the commission the sum of five thousand dollars ($5,000) to cover the expenses of publishing legal notices and to pay a pro rata part of the costs of the general election, all as provided in this chapter.
(b) The application shall set forth:
(1) The name of the corporation;
(2) The address of its principal office;
(3) The names and addresses of all of its officers and directors, a majority of whom must be residents of the State of Arkansas, and all of whom must be of good moral character;
(4) The name and address of its agent for service of process;
(5) Its latest financial statements;
(6) The estimated amount of funds which it proposes to spend for the acquisition of a site, the construction thereon of buildings and facilities, and the purchase of equipment for conducting racing meets;
(7) Copies of architectural plans and specifications for the buildings and facilities; and
(8) Such other information and requirements as the commission shall determine as necessary to enable it to pass upon the application.
(c)(1) Immediately upon the filing of each application, the commission shall investigate the personal background and financial responsibility of the officers, directors, and principal stockholders of the corporation, examine the plans and specifications of the buildings and facilities proposed to be constructed, and take into consideration such other facts and conditions as it shall find necessary or desirable in the premises. Within ninety (90) days after the date of the filing of any application, the commission shall grant, or refuse to grant, a temporary franchise to the corporation.
(2) However, in all instances the commission shall give the applicant, and all others who shall have filed written requests to be heard on the question, not less than ten (10) days' notice of the date it proposes to formally consider the application. All interested parties shall have the right to appear before the commission and be heard.
(3) The commission shall make a record of its proceeding at each hearing.
(d)(1) Should the commission refuse to grant a temporary franchise, it shall set forth in writing its reasons for the refusal. A copy of the writing shall immediately be sent to the applicant by registered or certified United States mail to the address listed in the application.
(2) Within sixty (60) days after the date of any refusal, the applicant may file with the commission amendments to the application for the purpose of overcoming any of the objections on which the commission based its refusal to grant a temporary franchise. Within thirty (30) days after receipt of the amendments, the commission shall either confirm its original refusal or it may grant a temporary franchise.
(3) Within twenty (20) days following the date of original refusal, or within twenty (20) days following the date of refusal after the filing of any amendments, the applicant may appeal to the Pulaski County Circuit Court, and it shall be tried de novo on the record of the hearing before the commission.
(4) An appeal may be taken by the commission or by the applicant from the circuit court to the Supreme Court. The appeal shall likewise be tried de novo.
(5) The mandate of the court shall be filed with the commission.
(e)(1) Should the commission grant a temporary franchise on its own motion or based upon the decision of the court, then the fact of the grant shall be certified by the commission to the Secretary of State, and the five thousand dollars ($5,000) deposited with it under the provisions of subsection (a) of this section shall be paid over to the Secretary of State by the commission.
(2) Should a temporary franchise not be granted pursuant to this section, the funds deposited with it under subsection (a) of this section shall be refunded to the corporation by the commission.
Credits
Acts of 1957, Act 191, § 8; Acts of 1965 (2nd Ex. Sess.), Act 7, § 2.
§ 23-111-303. Approval of majority of qualified electors
The Arkansas Racing Commission shall not be authorized to grant, nor shall it grant, a franchise to any corporation to conduct greyhound racing in any county in this state unless the commission has been authorized to grant a franchise as expressed by the approval of a majority of the qualified electors of the state voting on the proposition at the regular statewide biennial general election, as set forth in this chapter.
Credits
Acts of 1957, Act 191, § 6; Acts of 1961, Act 56, § 1; Acts of 1965 (2nd Ex. Sess.), Act 7, § 1.
§ 23-111-304. Publication of election notice--Ballot language
(a)(1) After receipt of the certification provided for in § 23-111-302(e), the Secretary of State shall cause to be published, by one (1) insertion in a newspaper of general circulation published in each county of the state, not less than thirty (30) days nor more than sixty (60) days before the next general election, a notice reading substantially as follows:
"NOTICE is hereby given that at the next general election the following question will be placed upon the ballot for the approval or rejection by the qualified electors of the state voting at such general election:
"Shall the Arkansas Racing Commission be authorized to grant a franchise to conduct greyhound racing in .......... County, Arkansas?
"Given under my hand on this ... day of .........., 20....
Secretary of State of the State of Arkansas".
(2) If there is no such newspaper published in any county, the notice may be published in any newspaper having a general circulation in the county.
(b) Within the time prescribed by law for the certification of other questions to be submitted to a vote of the people at a general election, the Secretary of State shall duly certify to the county boards of election commissioners of the several counties of the state the question as set forth in the notice provided for in subsection (a) of this section.
(c) The county board of election commissioners of each county shall cause to be printed on the general election ballot the following:
"Shall the Arkansas Racing Commission be authorized to grant a franchise to conduct greyhound racing in .......... County, Arkansas?
FOR authorizing the Arkansas Racing Commission to grant a franchise to conduct greyhound racing in .......... County, Arkansas ... 
AGAINST authorizing the Arkansas Racing Commission to grant a franchise to conduct greyhound racing in .......... County, Arkansas .......... ".
(d) The county boards of election commissioners shall canvass the vote and, as in the instance of other statewide measures voted on by the people, certify the results thereof to the Secretary of State who shall forthwith tabulate all returns so received by him or her and, by published notice in a newspaper having a statewide circulation, proclaim the result of the election, setting out in the proclamation the total vote for and against the question submitted as provided in subsection (c) of this section. The result of the election as so proclaimed shall be conclusive unless attacked in the courts within thirty (30) days after the date of publication of the proclamation. All contests in relation thereto shall be under the general election laws of this state.
(e) The Secretary of State shall file a certified copy of the proclamation with the Arkansas Racing Commission, and the commission shall immediately notify the corporation of the result of the election.
(f) If a majority of the qualified electors of the state voting on the question vote against authorizing the commission to grant the franchise to conduct greyhound racing in the county, the temporary franchise held by the corporation shall, ipso facto, be null and void as of the final date on which a contest of the results of the election may be commenced or, in the event of contest, upon the date of final determination of the issue.
(g) By use of the moneys deposited with the Secretary of State under the provisions of § 23-111-302(e), the Secretary of State shall first pay the cost of publication of legal notices required under this section, and any funds which remain from the deposit shall be paid over in equal amounts to the treasurers of the several counties of the state for credit to the general fund.
Credits
Acts of 1957, Act 191, § 9; Acts of 1961, Act 56, § 2; Acts of 1965 (2nd Ex. Sess.), Act 7, § 3.
§ 23-111-305. Grant of franchise to conduct racing
(a)(1) If a majority of the qualified electors of the state voting on the question vote for authorizing the Arkansas Racing Commission to grant a franchise to conduct greyhound racing in the county, the corporation holding a temporary franchise, within ninety (90) days following the date of receipt of notification thereof from the commission as provided in § 23-111-304(d), shall acquire a site and commence the construction of buildings and facilities which it proposes to use in conducting greyhound racing meets.
(2) Failure of the corporation to acquire the site and commence construction within the ninety-day period shall constitute a forfeit of the temporary franchise.
(3) Should any holder of a temporary franchise acquire a site and commence construction within the ninety-day period but fail to complete construction and be open for business within one (1) year next following the end of the ninety-day period, or should the construction not be in substantial compliance with the plans and specifications theretofore filed with, and approved by, the commission, or should the aggregate total of costs of acquisition of a site, construction of buildings and facilities, and purchase of equipment be less than one million dollars ($1,000,000), then the commission shall cancel the temporary franchise, and the cancellation shall constitute a forfeit thereof by the corporation.
(4) However, nothing contained in this section shall be construed so as to prohibit mutual agreement on the part of the commission and the corporation to making such changes in the plans and specifications for construction as may be deemed necessary or desirable, but no changes may be agreed to which will have the effect of reducing the total aggregate cost of plant and equipment below one million dollars ($1,000,000).
(b) Upon completion of the plant within the time, in the manner, and at the minimum costs provided in subsection (a) of this section and the payment of a franchise fee in the amount of one thousand dollars ($1,000) to the commission by the holder of the temporary franchise, the commission shall issue its franchise in exchange for the temporary franchise held by the corporation. The corporation may then proceed to conduct greyhound racing meets in accordance with the provisions of this chapter or other applicable law, and the franchise shall thereafter be effective in the hands of the corporation unless and until terminated by operation of law, or sooner if terminated by the commission based upon the corporation's failure to comply with applicable greyhound racing laws or by the voluntary forfeiture of the franchise by the franchise holder.
Credits
Acts of 1957, Act 191, § 11; Acts of 1965 (2nd Ex. Sess.), Act 7, § 4.
§ 23-111-306. Subsequent referendum elections
(a) After the elapse of not less than four (4) years next following the date of any election conducted pursuant to § 23-111-304, the county board of election commissioners shall call a special election in accordance with § 7-11-201 et seq. on the proposition of continuing greyhound racing in the county. The election shall be called upon petitions filed with it containing the signatures of qualified electors of the county of not less than five percent (5%) of the total number voting in the election for county clerk of the county at the next preceding general election, together with a sum of money estimated by the board as sufficient to pay all expenses of the election.
(b)(1) The date of the special election shall be fixed at the next special election date under § 7-11-205. The deposit of the funds as provided in subsection (a) of this section and the election shall be conducted and shall be subject to contest under the general election laws of this state.
(2) The proposition printed on the ballot shall be “FOR Greyhound Racing” and “AGAINST Greyhound Racing”.
(3) By published notice, the board shall proclaim the results of the election and shall also certify the results to the Arkansas Racing Commission.
(4) All contests in relation to the results of the election shall be commenced within twenty (20) days next following the date of publication of notice as provided in subsection (a) of this section.
(c) If a majority of the qualified electors of the county voting on the question shall disapprove the continuance of greyhound racing, the franchise held by the corporation shall, ipso facto, be null and void as of the final date on which a contest of the results of the election may be commenced or, in the event of contest, upon the date of final determination of the issue.
Credits
Acts of 1957, Act 191, § 10; Acts of 1968 (2nd Ex. Sess.), Act 15, § 1; Acts of 2005, Act 2145, § 61, eff. Aug. 12, 2005; Acts of 2007, Act 1049, § 83, eff. July 31, 2007; Acts of 2009, Act 1480, § 101, eff. April 10, 2009; Acts of 2021, Act 610, § 24, eff. Jan. 1, 2022.
§ 23-111-307. Permits granted prior to July 1, 1957
(a)(1) Any permit granted prior to July 1, 1957, to conduct greyhound racing in this state is validated, and the action of the authority granting the permit is ratified and confirmed.
(2) Whether or not the permit has been granted for a definite period of time, the holder of the permit shall pay a franchise fee in an amount of one thousand dollars ($1,000) and shall be deemed to have a franchise upon compliance with provisions of this chapter.
(b) The franchise shall continue in effect so long as the holder thereof shall comply with all applicable laws of this state relating to greyhound racing or until the rights thereunder shall terminate by operation of law making greyhound racing unlawful in the area covered by the franchise or until the forfeit of the franchise by the holder thereof.
Credits
Acts of 1957, Act 191, § 6.
§ 23-111-308. Minors--Employment of residents
(a) No franchise holder shall permit any person under eighteen (18) years of age to be a patron of the pari-mutuel or certificate system of wagering conducted or supervised by it.
(b) The Arkansas Racing Commission shall have the right to require that every franchise holder shall employ residents of the State of Arkansas to the extent of eighty percent (80%) of the employees engaged in any greyhound race meet.
Credits
Acts of 1957, Act 191, § 24; Acts of 1997, Act 584, § 1.
Subchapter 4. Officers, Directors, Stockholders, Etc., of Franchises
§ 23-111-401. Legislative intent
(a) It is determined by the General Assembly that the business of conducting dog racing and pari-mutuel wagering thereon is so clothed with the public interest that the operation should be closely regulated and controlled to the end that the operation will not be conducted in a manner detrimental to the public interest of this state and its citizens and that the policy and manner of operation of the business is largely determined by those who have substantial financial interests in the corporate franchise holder.
(b) Therefore, it is the purpose and intent of §§ 23-111-402 -- 23-111-405 and 23-111-407 -- 23-111-409 to broaden, clarify, and strengthen the authority of the Arkansas Racing Commission to investigate the personal background of officers, directors, and principal stockholders of applicants for, and holders of, franchises to conduct dog racing in this state and to deny application for, suspend, or revoke a dog racing franchise upon the basis of the personal background of an officer, director, or principal stockholder of an applicant for, or holder of, a franchise, in order that the commission can better perform its duty to regulate and control dog racing in this state in the public interest.
Credits
Acts of 1968 (2nd Ex. Sess.), Act 8, § 9.
§ 23-111-402. Definition
For the purposes of §§ 23-111-401, 23-111-403 -- 23-111-405, and 23-111-407 -- 23-111-409, "principal stockholder" means every stockholder, either individual, partnership, association, or corporation, owning or having control of ten percent (10%) or more of the outstanding stock of a corporation which is an applicant for, or holder of, a franchise to conduct dog racing in this state.
Credits
Acts of 1968 (2nd Ex. Sess.), Act 8, § 4.
§ 23-111-403. Applicability of provisions
The provisions of §§ 23-111-401, 23-111-402, 23-111-404, 23-111-405, and 23-111-407 -- 23-111-409 are supplemental to the provisions of §§ 23-111-101 -- 23-111-104, 23-111-201 -- 23-111-205, 23-111-301 -- 23-111-308, 23-111-501, and 23-111-506, and 23-111-508 -- 23-111-514, and all other laws regarding dog racing in this state and shall not be construed to repeal or modify any of those laws.
Credits
Acts of 1968 (2nd Ex. Sess.), Act 8, § 8.
§ 23-111-404. Franchise applications
In addition to the information required by §§ 23-111-101 -- 23-111-104, 23-111-201 -- 23-111-205, 23-111-301 -- 23-111-308, 23-111-501, and 23-111-506, and 23-111-508 -- 23-111-514, every application filed with the Arkansas Racing Commission for a franchise to conduct dog racing in any county of this state shall set forth the total number of outstanding shares of stock of the applicant corporation and the number of the shares of stock owned or under the control of each of the stockholders of the applicant corporation.
Credits
Acts of 1968 (2nd Ex. Sess.), Act 8, § 1.
§ 23-111-405. Background investigations
(a)(1)(A) The Arkansas Racing Commission is authorized to conduct a thorough investigation of the personal background of each officer, each director, and each principal stockholder of an applicant for, or holder of, a franchise for conducting dog racing in this state.
(B) In the event a corporation, partnership, or association qualifies as a principal stockholder of an applicant for, or holder of, a franchise for conducting dog racing in this state, then the commission is authorized to conduct a thorough investigation of the personal background of each officer, director, and stockholder of the corporation or the personal background of each member of the partnership or association.
(2) In investigating the personal background of an officer, director, or principal stockholder of an applicant for, or holder of, a dog racing franchise, or the officers, directors, and stockholders of a corporation qualifying as a principal stockholder or the members of any partnership or association qualifying as a principal stockholder, the commission may take into consideration:
(A) Present and past business associations of a person and corporate stockholdings of the person;
(B) Any connection the person has or may have had with any gambling operations or other unlawful operations in this state or any other state;
(C) Any criminal convictions of the person; and
(D) Such other matters as the commission shall deem helpful in determining whether the ownership by the person, corporation, partnership, or association qualifying as a principal stockholder of a substantial amount of stock in the corporate applicant for, or holder of, a franchise to conduct dog racing in this state would or would not be detrimental to the public interest of this state.
(b) The commission may refuse to grant a franchise or temporary franchise or it may suspend or revoke an existing franchise if after investigation and hearing it determines that an officer, director, or principal stockholder of the applicant for, or holder of, a franchise is of undesirable personal background.
(c) The commission may refuse to grant a franchise or temporary franchise or it may suspend or revoke an existing franchise if after investigation and hearing it determines that an officer, director, or stockholder of a corporation qualifying as a principal stockholder under § 23-111-402 or a member of any partnership or association qualifying as a principal stockholder under the provisions of § 23-111-402 is of undesirable personal background.
(d)(1) Before the commission refuses to grant any franchise or temporary franchise or suspends or revokes an existing franchise on the basis of the personal background of any officer, director, or principal stockholder of the applicant for, or holder of, a franchise, the commission shall:
(A) Set a date and time for a hearing on the matter;
(B) Notify the applicant or franchise holder of:
(i) The specific findings of the commission upon the basis of which it proposed to refuse, suspend, or revoke the franchise; and
(ii) The date and time of the hearing; and
(C) At least ten (10) days prior to the hearing, publish notice of the hearing in a newspaper of general circulation in the county in which dog racing is held or proposed to be held under the franchise.
(2) Notice shall be given to the applicant or franchise holder by registered mail addressed to the applicant or franchise holder at its principal office as shown in the application or in other records of the commission at least ten (10) days prior to the date of the hearing.
(3) At the hearing the applicant for, or holder of, a franchise and other interested persons shall be permitted to appear and present evidence relevant to the issue or finding upon which the commission proposes to deny, suspend, or revoke a franchise.
(4) All proceedings before the commission pursuant to this section and the right of appeal therefrom shall be conducted in accordance with, and taken in the manner provided in, and in every way subject to, the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
Credits
Acts of 1968 (2nd Ex. Sess.), Act 8, §§ 3, 5.
§ 23-111-406. Elector and residency requirements
(a) A majority of all officers and directors of any greyhound dog track in this state shall be qualified electors of this state who have resided in the county in which the track is located for a period of not less than two (2) years and shall maintain a residence in the county during their tenure as officers or directors thereof.
(b) Any person who may be elected or selected as an officer or director of any greyhound dog track, prior to his or her election or selection, shall submit to the Arkansas Racing Commission a duly verified affidavit setting forth information indicating whether he or she is a qualified elector of this state, his or her place of residence, and the period of time during which he or she has resided at his or her place of residence, in order that the commission may determine that the provisions of this section are being complied with.
(c) If there is any change in any of the material facts noted on the verified affidavit filed with the commission by the officer or director of a greyhound dog track, the officer or director, within thirty (30) days after the occurrence of the change, shall submit a new verified affidavit to the commission as required in this section, noting the change.
(d) Any person who furnishes false information in the affidavit filed with the commission as required in this section or fails to file a replacement verified affidavit with the commission within thirty (30) days after the change of any material fact noted on the affidavit previously filed with the commission shall be guilty of a Class A misdemeanor.
Credits
Acts of 1969, Act 285, §§ 1, 2; Acts of 1981, Act 443, §§ 1, 2; Acts of 2005, Act 1994, § 232, eff. Aug. 12, 2005.
§ 23-111-407. Changes in management
Every holder of a franchise to conduct dog racing in this state shall report any and all changes in its board of directors, executive officers, and other management personnel, and all changes in the ownership of its stock, to the Arkansas Racing Commission within ten (10) days next following such a change.
Credits
Acts of 1968 (2nd Ex. Sess.), Act 8, § 2.
§ 23-111-408. Sharing of information
The Arkansas Racing Commission is authorized to cooperate with and share information with federal officers and agencies and with officers and agencies of this state and subdivisions thereof and officers and agencies of other states and subdivisions, to the extent that the commission deems necessary or helpful to it in carrying out the purposes of §§ 23-111-401 -- 23-111-405, 23-111-407, and 23-111-409.
Credits
Acts of 1968 (2nd Ex. Sess.), Act 8, § 6.
§ 23-111-409. Investigation of management
The Arkansas Racing Commission is authorized to employ such special investigators and other personnel as it shall deem necessary to investigate the personal background of officers, directors, and principal stockholders of applicants for and holders of dog racing franchises and to do and perform all other acts and functions it deems necessary to carry out the purpose and intent of §§ 23-111-401 -- 23-111-405, 23-111-407, and 23-111-408.
Credits
Acts of 1968 (2nd Ex. Sess.), Act 8, § 7.
Subchapter 5. Conduct of Meets
§ 23-111-501. Greyhound racing--Offenses
(a) Any franchise holder or any person aiding or abetting in the holding or conducting of any greyhound racing meet at which greyhound racing shall be permitted for any stake, purse, or reward except in accordance with a franchise duly issued as provided in this chapter shall be guilty of a misdemeanor and, upon conviction, shall be punished for each offense by a fine of not less than five thousand dollars ($5,000) nor more than ten thousand dollars ($10,000) or by imprisonment for not more than one (1) year, or by both fine and imprisonment.
(b) For the purposes of this section, each day of racing in violation of the provisions of this chapter shall be considered as a separate and distinct offense.
Credits
Acts of 1957, Act 191, § 17.
§ 23-111-502. Racing days and hours generally
(a)(1) Upon application of the dog racing franchise holder, the Arkansas Racing Commission may authorize each dog racing franchise holder to conduct during any calendar year greyhound racing on the days and during the hours as determined by the commission and as set forth in its rules.
(2) The commission's rules shall be in the best interests of the dog racing franchisee, kennel owners, and greyhound racing in the State of Arkansas.
(3) Greyhound racing on Easter Sunday or Christmas Day is prohibited.
(b) The racing days provided for under §§ 23-111-503 -- 23-111-505 shall be conducted on the days and during the hours determined by the commission under subsection (a) of this section.
Credits
Acts of 1985, Act 924, § 1; Acts of 1987, Act 383, § 1; Acts of 1989, Act 238, § 1; Acts of 1995, Act 342, § 1, eff. Feb. 16, 1995; Acts of 1995, Act 347, § 1, eff. Feb. 16, 1995; Acts of 2013, Act 351, § 1, eff. Aug. 16, 2013; Acts of 2019, Act 315, § 2820, eff. July 24, 2019.
§ 23-111-503. Additional days of racing--Authorization
(a) The Arkansas Racing Commission is authorized to allow each dog racing franchise holder to conduct three (3) additional days of racing at any dog racing meet. The franchise holder shall agree that the net proceeds derived from the additional days shall be credited as follows:
(1) One-third ( ⅓ ) to be deposited with the city treasurer or collector of the city in which the dog racing track is located for credit to the city general fund to be used for charitable purposes only, as determined by the mayor and governing body; and
(2) Two-thirds ( 2/3 ) to be deposited with the Treasurer of State as special revenue to be used for the sole benefit for community programs of the Division of Developmental Disabilities Services of the Department of Human Services.
(b) Employees of the dog racing track shall be allowed to donate their services for the additional days of dog racing allowed by the commission under this section.
(c) Net proceeds derived from the additional days of dog racing shall be the proceeds derived from the pari-mutuel wagering at, and admissions to, the dog racing track less the cost of salaries, if any, of all employees, fuel, lights, purses, taxes, and other fees and costs incurred by the franchise holder in conducting the additional days of racing.
(d) The commission shall establish appropriate rules to assure compliance with the provisions of this section and shall audit and verify all receipts and expenditures of the franchise holder in determining compliance with this section.
Credits
Acts of 1985, Act 924, § 2; Acts of 1987, Act 383, § 2; Acts of 2019, Act 315, § 2821, eff. July 24, 2019.
§ 23-111-504. Additional days of racing--Net proceeds generally
(a) The Arkansas Racing Commission is authorized to allow each dog racing franchise holder to conduct six (6) additional days of racing during each calendar year in addition to any other days of dog racing authorized by law.
(b) The net proceeds, as defined in § 23-111-503, derived from two (2) of the additional days of dog racing shall be deposited with the Treasurer of State as special revenue for credit to the Municipal Aid Fund. Moneys deposited into the fund shall be distributed to all municipalities located in the county in which the dog racing meet is held, except the municipality in which the dog racing track is located, with each municipality to receive such portion of the fund as the population of the municipality bears to the total population of all participating municipalities in the county.
Credits
Acts of 1985, Act 924, § 3.
§ 23-111-505. Additional days of racing--Indigent patients hospitalization fund
(a) The Arkansas Racing Commission is authorized to allow each dog racing franchise holder to conduct fifteen (15) additional days of racing during each twelve-month period. The additional days of racing may be divided between each of the two (2) racing meets allowed by § 23-111-502, or all the additional days of racing may be added to a single racing meet as determined by the commission. In the event the additional days allowed by the commission fall upon a Saturday or Saturdays, then the franchise holder, at its option, may conduct daylight racing as authorized for a regular racing meet.
(b)(1) All revenue derived from the pari-mutuel tax at the fifteen (15) additional days of racing authorized by subsection (a) of this section after moneys have been remitted by the franchise holder to Arkansas State University Mid-South as provided by § 23-111-517 shall be deposited with the Treasurer of State as special revenue for credit to the Indigent Patient's Fund, to be used by Mississippi County, Poinsett County, Cross County, St. Francis County, and Lee County to defray the cost of hospitalization and other medical services of indigent Arkansas patients in healthcare facilities for which the county has not received total reimbursement.
(2) Each county shall certify to the Chief Fiscal Officer of the State the amount of the unreimbursed medical expenses under such procedures and such detail as required by the Department of Finance and Administration.
(3) The amount available to each county shall be no more than one-fifth (1/5) of the total funds available or the amount certified of unreimbursed medical expenses, whichever is less.
(c) The commission is authorized to allow each dog racing franchise holder to conduct two (2) additional days of racing at any dog racing meet. The net proceeds derived from these additional days shall be deposited with the city treasurer or collector of the city in which the dog racing track is located for credit to the city general fund to be used for providing assistance and relief to disaster victims, indigent persons, organizations which assist such persons, and for education purposes.
Credits
Acts of 1985, Act 924, § 4; Acts of 1987, Act 383, § 3; Acts of 1989, Act 238, § 2; Acts of 2016, Act 140, § 13, eff. July 1, 2016.
§ 23-111-506. Racing meets--Application--Bond
(a)(1) Before any franchise holder conducts a racing meet in the county in which it holds a franchise, it shall file with the Arkansas Racing Commission an application to hold the meet and a bond in the sum of ten thousand dollars ($10,000) payable to the State of Arkansas, with a surety to be approved by the commission, conditioned that the franchise holder shall:
(A) Faithfully make the payments to the commission;
(B) Keep its books and records and make reports as provided in this chapter; and
(C) Conduct the greyhound racing in conformity with this chapter.
(2) The application shall specify the dates on which it is intended or desired to conduct or hold the meet and such further information as the commission may prescribe.
(3)(A) The license fee required to be paid by the franchise holder under the provisions of this section shall be computed at the rate of three hundred dollars ($300) per day, payable each day of the meet to the commission.
(B) The license fee imposed by this section shall be in lieu of all other license or occupation fees or taxes which otherwise would be due by the franchise holder to the State of Arkansas, or to any of its political subdivisions.
(b)(1) Each application shall be filed with the commission at least one hundred twenty (120) days prior to the date upon which it is desired to begin the racing meet.
(2) Whenever mutually agreeable to the commission and the franchise holder, the commission may allot racing dates other than those requested in the application.
(c) Immediately following the allotting of any racing dates and the issuance of a license to hold a racing meet, the commission shall notify the franchise holder of the dates allotted. The notice shall be in writing and sent by registered or certified United States mail to the franchise holder. Each notice and license shall be mailed by the commission at least ninety (90) days before the date fixed for the beginning of the racing meet.
(d)(1) Each license shall specify:
(A) The name of the franchise holder;
(B) The dates on which the racing meet shall be held or conducted; and
(C) The location of the place, track, or enclosure at which the racing meet is to be conducted.
(2) No license shall be transferable, nor shall it apply to any place, track, or enclosure other than the one specified in the license.
(e)(1) If the commission refuses an application for a license, it shall notify the franchise holder. This notice must be in writing and sent by registered or certified United States mail to the franchise holder and shall be mailed by the commission at least twenty (20) days before the date fixed in the application for the beginning of the racing meet. In each instance the notice shall contain the reasons for refusal of the application.
(2) No application shall be refused until after the franchise holder has been granted a hearing by the commission.
Credits
Acts of 1957, Act 191, § 14; Acts of 1971, Act 30, § 1.
§ 23-111-507. Repealed by Acts of 2007, Act 856, § 4, eff. April 3, 2007
Credits
Acts of 2007, Act 856, § 4, eff. April 3, 2007.
§ 23-111-508. Wagering
(a)(1) Any franchise holder conducting a greyhound racing meet may provide places in the race meeting grounds, or enclosure, at which it may conduct and supervise the pari-mutuel or certificate system of wagering by patrons on the races conducted by the franchise holder at the meeting.
(2) The pari-mutuel or certificate method of wagering upon races held at the race track, within the race track, and at the racing meet shall not under any circumstances, if conducted under the provisions of this chapter, be held or construed to be unlawful, all other laws or parts of laws of the State of Arkansas to the contrary notwithstanding.
(b) No other place or method of wagering shall be used or permitted by the franchise holder, unless permitted under subsection (d) or subsection (e) of this section, nor shall the pari-mutuel or certificate system of wagering be conducted on any races except races at the race track where the franchise holder holds a current license issued by the Arkansas Racing Commission.
(c) No franchise holder shall permit any minor to be a patron of the pari-mutuel or certificate system of wagering conducted or supervised by it.
(d)(1)(A) However, nothing contained in this section shall be construed to permit the pari-mutuel or certificate method of wagering upon any race track unless the track is licensed as provided by this chapter.
(B) It is declared to be unlawful for any franchise holder to permit, conduct, or supervise any pari-mutuel or certificate method of wagering upon any race track except in accordance with the provisions of this chapter.
(2) There shall be no wagering on the results of any races except under the pari-mutuel or certificate method of wagering, as provided in this chapter, and then only by the installation and use of equipment approved by the commission.
(3) In addition to the pari-mutuel or certificate system of wagering as authorized by this chapter, the commission is authorized and directed to establish and adopt rules permitting the conduct of pari-mutuel or certificate system of wagering upon racing, either horse or greyhound, shown live or in any other manner approved by the commission by television or otherwise to or from the premises of the franchise holder.
(4) Any franchise holder using or permitting wagering or any person wagering under any other method at a licensed race track shall be guilty of a Class D felony for each such offense.
(e)(1) With the prior approval of the commission and pursuant to rules adopted by the commission, a franchise holder's patrons with money on deposit in an account with the franchise holder may place wagers by communication through telephone or other mobile device or through other electronic means on races conducted at the franchise holder's race track facility and horse races or greyhound races at other racetracks, whether or not the patron is located on the grounds of the franchise holder's race track facility when placing the wager.
(2) Wagers accepted by the franchise holder under this subsection shall be treated for all purposes under this chapter as a wager made by the patron on the grounds of the franchise holder's race track facility.
Credits
Acts of 1957, Act 191, § 18; Acts of 1987, Act 383, § 5; Acts of 1989, Act 238, § 3; Acts of 1999, Act 473, § 1, eff. July 30, 1999; Acts of 2005, Act 1994, § 486, eff. Aug. 12, 2005; Acts of 2013, Act 350, §§ 6, 7, eff. March 14, 2013; Acts of 2019, Act 315, § 2822, eff. July 24, 2019.
§ 23-111-509. Moneys wagered--Books and records
(a) Each franchise holder conducting a racing meet under the provisions of this chapter shall keep its books and records in such manner as to clearly show the total amount of moneys wagered on each race held or conducted at each meet and the disposition of the moneys.
(b)(1) In the calendar year 1995 and each calendar year thereafter, the franchise holder shall withhold and retain for its own use and benefit sixteen percent (16%) of all moneys wagered on live, on-premises races up to and including one hundred twenty-five million dollars ($125,000,000) and twelve percent (12%) of all moneys wagered on live, on-premises races in excess of one hundred twenty-five million dollars ($125,000,000).
(2)(A) From the amount withheld and retained by the franchise holder, the franchise holder shall agree that the following credits will be made in the following percentage amounts of all moneys wagered on live, on-premises races up to and including one hundred twenty-five million dollars ($125,000,000) per calendar year, which shall be in addition to any other credits or payments:
(i) Seven-eighths of one percent (.875%) to be used by the franchise holder for supplements for increasing purses awarded at races conducted at the franchise holder's facility;
(ii) Three-eighths of one percent (.375%) to the institutions or funds described in §§ 23-111-503 -- 23-111-505 and 23-111-515 on a proportionate basis;
(iii) One-half of one percent (0.5%) to be used by the franchise holder for capital improvements to be made by the franchise holder at the racing facility; and
(iv) One-half of one percent (0.5%) to be used by the franchise holder for promotions to be conducted by the franchise holder to encourage patronage and tourism.
(B) These credits will not accrue on moneys wagered on live, on-premises races in excess of one hundred twenty-five million dollars ($125,000,000) per calendar year.
(C) The Arkansas Racing Commission may audit and verify receipts and expenditures of the franchise holder in determining compliance with this subdivision (b)(2).
(D) If there is a final determination by the commission that any of the credits or payments provided in this subsection have not been used for the purposes specified in this section, the franchise holder shall pay the amount equal to any moneys used for an unauthorized purpose to the commission for the use and benefit of the State of Arkansas.
(3)(A) “Capital improvements” as used in this section shall include all items and expenditures incurred for new construction with related equipment, reconstruction, renovation, reconditioning, and repairing of facilities with related equipment, or for debt service on money borrowed by the franchise holder for those enumerated purposes.
(B) In the case of capital improvements, the commission may use a multiyear approach based on a multiyear program being undertaken by the franchise holder so that accountability for expenditures may be based on expenditures made during the entire multiyear period out of the capital improvement moneys derived during the multiyear period.
(c)(1) In the calendar year 1995 and each calendar year thereafter, for all racing meets conducted by the franchise holder, the franchise holder shall withhold and pay to the commission for the use and benefit of the State of Arkansas, as a privilege tax:
(A) Three percent (3%) of all moneys wagered on live, on-premises races up to and including one hundred twenty-five million dollars ($125,000,000), together with one-third ( ⅓ ) of the odd cents or breaks; and
(B) Seven percent (7%) of all moneys wagered on live, on-premises races in excess of one hundred twenty-five million dollars ($125,000,000), together with one-third ( ⅓ ) of the odd cents or breaks.
(2)(A) For all races simulcast to the grounds of the franchise holder's Arkansas race track from other race tracks and races conducted in the past and rebroadcast by electronic means and shown on a delayed or replayed basis on the grounds of the franchise holder's Arkansas race track under § 23-111-508(d)(3), the franchise holder shall withhold and pay to the commission for the use and benefit of the State of Arkansas, as a privilege tax, one percent (1%) of all moneys wagered on such races on the grounds of a franchise holder's Arkansas race track.
(B) From the one percent (1%) reduction in the simulcast privilege tax provided for in this section, the franchise holder shall agree that the following credits shall be made in the following percentage amounts, which shall be in addition to any other credits for payments:
(i) One-fourth of one percent (0.25%) to be used by the franchise holder for supplements for increasing purses awarded at races conducted at the franchise holder's facility;
(ii) One-fourth of one percent (0.25%) to be used by the franchise holder for promotions conducted by the franchise holder to encourage patronage and tourism;
(iii) One-fourth of one percent (0.25%) to be used by the franchise holder for capital improvements made by the franchise holder at the racing facility;
(iv) One-fifth of one percent (0.20%) to be used by the franchise holder to directly offset increased simulcasting expenses over and above those incurred during calendar year 2000, including interface fees, host signal fees, licensing fees, and equipment costs related to simulcast. The franchise holder shall provide such information necessary to reflect the increase in simulcast expenses. Any portion of this amount not needed to offset increased simulcast expenses shall be paid to the commission for the use and benefit of the State of Arkansas; and
(v) Five one-hundredths of one percent (0.05%) to be distributed as provided in § 23-111-515(b)(1)(B).
(C)(i) The commission shall seek the assistance of the Department of Finance and Administration to audit and verify receipts and expenditures of the franchise holder in determining compliance with this section. The franchise holder must deliver to the department any documents requested to check and verify compliance with this section within thirty (30) days of receiving a written request for the documents. If the department does not receive the requested documents within the time provided, the Secretary of the Department of Finance and Administration shall notify the commission, which shall issue an order to show cause why such documents have not been provided.
(ii) The franchise holder shall not be permitted credit for expenditures under this section until the franchise holder submits documentation of each expenditure listing the specific expenditure and the payee of the expenditure and stating in specific terms the benefit created by the expenditure.
(iii) In the case of patronage and tourism promotion and capital improvements, the commission may use a multiyear approach based on a multiyear program's being undertaken by the franchise holder so that accountability for expenditures may be based on expenditures made during the entire multiyear period out of the patronage and tourism promotion and capital improvement moneys derived during the multiyear period, provided that the multiyear period shall not exceed five (5) years, unless the commission makes a specific determination that a longer period is necessary to finance long-term construction projects for the joint benefit of patrons, dogmen, and the franchise holder.
(iv) The franchise holder may seek prior approval of expenditures from the commission for expenditures. The application for such approval must contain the information required by this section. The prior approval will be subject to final verification by the department and approval by the commission that the expenditure meets the requirements of this section.
(3) The licensee shall withhold no more than nineteen percent (19%) of the total moneys wagered in simulcast racing, except when the state of the host race meet allows for withholding a greater percentage, then the licensee shall withhold no more than the percentage allowed by the state of the host meet.
(d) The franchise holder shall withhold and pay to the city or town in which the race track is located two-thirds ( 2/3 ) of the odd cents or breaks on all moneys wagered on live, on-premises races and on simulcast races, or if the track is not located within the corporate limits of a city or town, then the two-thirds ( 2/3 ) of the odd cents or breaks on all money wagered on live, on-premises races and on simulcast races shall be paid to the county in which the track is located.
(e)(1) Excepting only the moneys retained for the use and benefit of the franchise holder, the amounts paid to the commission for the use and benefit of the State of Arkansas, and the amount paid to the city, town, or county, as provided in subsection (d) of this section, all moneys received by the franchise holder from wagers shall be paid over to patrons holding winning pari-mutuel tickets, as their respective interests may appear, upon presentation of the tickets.
(2)(A) However, all winning pari-mutuel tickets not presented to the franchise holder for redemption on or before the one hundred eightieth day next following the last racing day of each racing meet hereafter held shall be void.
(B) Of the moneys represented by the void pari-mutuel tickets, the franchise holder shall immediately distribute the proceeds as follows:
(i) One-half ( ½ ) of the amount thereof shall be paid to the treasurer of the county in which the racing track is located for credit to the general fund of the county; and
(ii) One-half ( ½ ) of the amount thereof shall be paid to the treasurer of the city in which the racing track is located and shall be credited to the general fund of the city.
(C) The money shall be used for charitable purposes only, benefiting young females and young males of the city as determined by the mayor and the governing body of the city. It is the intent that the funds shall be made available to and used by the Boys and Girls Clubs or similar nonprofit charitable organizations providing recreational youth services benefiting young females and young males of the city.
(f) Breaks or breakage shall be computed as the amount of odd cents remaining in each pari-mutuel pool after redistributions are made in a sum equal to the next lowest multiple of ten cents (10¢). Provided, in the event of a minus pool, the commission shall have the authority to establish the minimum payout on winning wagers.
(g) All moneys due the State of Arkansas by the permit holder under subsection (c) of this section shall be paid to the commission daily, and all amounts due the city, town, or county under subsection (d) of this section shall be paid over to the treasurer of the city, town, or county immediately following the close of the racing meet.
(h) The rate of tax on any additional methods of wagering shall be established by law.
Credits
Acts of 1957, Act 191, § 19; Acts of 1965, Act 142, § 2; Acts of 1971, Act 382, §§ 1 to 3; Acts of 1973, Act 780, § 2; Acts of 1973, Act 879, § 1; Acts of 1983, Act 424, § 1; Acts of 1987, Act 383, § 4; Acts of 1991, Act 850, § 1; Acts of 1993, Act 1163, § 1, eff. April 14, 1993; Acts of 1995, Act 342, § 2, eff. Feb. 16, 1995; Acts of 1995, Act 347, § 2, eff. Feb. 16, 1995; Acts of 1999, Act 473, § 2, eff. July 30, 1999; Acts of 1999, Act 1509, §§ 1 to 3, eff. April 15, 1999; Acts of 1999, Act 1585, § 2, eff. July 30, 1999; Acts of 2001, Act 1837, § 1, eff. April 19, 2001; Acts of 2019, Act 910, § 3516, eff. July 1, 2019.
§ 23-111-510. Admission tax
(a)(1) Each franchise holder authorized to conduct a race meeting under this chapter shall pay to the Arkansas Racing Commission for the use and benefit of the State of Arkansas either ten percent (10%) of all moneys received each day from admissions paid by persons attending the races at the meeting or the sum of ten cents (10¢) on each and every paid admission, whichever sum is the greater.
(2) All payments provided in this section shall be made each day of any and every race meeting.
(b)(1) The issuance of all tax-free passes shall be by the franchise holder or its employees or agents. The commission shall have no authority over the issuance or distribution of the passes.
(2) It shall be unlawful for any person, corporation, firm, partnership, or any other entity to sell or offer for sale for any consideration any tax-free pass issued by the commission for general admission to the racing facility of any franchise holder.
(3) Any person, corporation, firm, partnership, or other entity that sells or offers for sale tax-free passes shall upon conviction be guilty of a Class B misdemeanor.
Credits
Acts of 1957, Act 191, § 20; Acts of 1991, Act 664, § 2; Acts of 1991, Act 1020, § 2; Acts of 1999, Act 1508, §§ 11, 12, eff. April 15, 1999; Acts of 2005, Act 1994, § 240, eff. Aug. 12, 2005.
§ 23-111-511. Audits
(a) Every franchise holder conducting race meetings under this chapter shall keep its books and records so as to clearly show the true number of admissions, the total amount of money contributed to each pari-mutuel pool on each race separately, and the amount of money received daily from admission fees.
(b) Within sixty (60) days after the conclusion of every race meeting, the franchise holder shall submit to the Arkansas Racing Commission a complete audit of the receipts and admissions.
Credits
Acts of 1957, Act 191, § 21.
§ 23-111-512. Commission access to race meeting grounds, records
(a) The Arkansas Racing Commission shall at all times have access to any portion of the space or enclosure where a race meeting is held, including the space or enclosure where the pari-mutuel or certificate system of wagering is conducted or supervised at any racing meet, for the purpose of ascertaining whether or not the franchise holder is retaining only the commission provided in this chapter.
(b) The commission shall have full and free access to the books, records, machines, and papers pertaining to the pari-mutuel or certificate method of wagering, and admission tickets.
(c) The commission may also at any time investigate and ascertain whether or not any of the provisions of this chapter or the rules of the commission are being violated at the race track or enclosure.
Credits
Acts of 1957, Act 191, § 23; Acts of 2019, Act 315, § 2823, eff. July 24, 2019.
§ 23-111-513. Failure to pay tax
(a) Any franchise holder failing or refusing to pay the amount found to be due the Arkansas Racing Commission from any tax provided for or imposed by this chapter shall be guilty of a violation and upon conviction shall be punished by a fine of not more than five thousand dollars ($5,000) in addition to the amount due from the franchise holder as provided in this chapter.
(b) All fines paid into any court of this state by a franchise holder found guilty of violating this section shall be paid over by the clerk of the court to the commission within ten (10) days after the fines shall have been paid to the clerk by the franchise holder.
Credits
Acts of 1957, Act 191, § 22; Acts of 2005, Act 1994, § 158, eff. Aug. 12, 2005.
§ 23-111-514. Bond requirements
Every franchise holder to which a license may be granted under this chapter at its own cost and expense shall, before the license is delivered, give a bond, in the penal sum of ten thousand dollars ($10,000) payable to the Arkansas Racing Commission with a surety to be approved by the commission, conditioned to faithfully make the payments to the commission provided for in this chapter, and keep its books and records and make reports provided in this chapter and to conduct its race meeting in conformity with the provisions of this chapter.
Credits
Acts of 1957, Act 191, § 22.
§ 23-111-515. Additional racing days--Distribution of proceeds--Institutions of higher education
(a)(1) The Arkansas Racing Commission is authorized to allow each dog racing franchise holder to conduct six (6) additional days of racing during each twelve-month period
(2) The additional days of racing may be divided between each of the two (2) racing meets allowed by this section, or all the additional days of racing may be added to a single racing meet as determined by the commission.
(3) In the event the additional days allowed by the commission fall upon a Saturday or Saturdays, then the franchise holder, at its option, may conduct daylight racing as authorized for a regular racing meet.
(b)(1) The franchise holder shall distribute the net proceeds, as defined in subdivision (b)(2) of this section, from the additional days of dog racing as follows:
(A) Twenty-five percent (25%) thereof shall be remitted at the end of each racing meet at which such additional days of racing are conducted to the various municipalities in the county where the dog racing meet is held which have a population of fewer than five thousand (5,000) inhabitants according to the most recent federal census, with each such municipality to receive an equal share of the funds; and
(B) Seventy-five percent (75%) of the proceeds shall be deposited with the Treasurer of State as special revenues and credited to an institution of higher education fund in the county in which the dog racing track is located. Such funds shall be considered local taxes for the purposes of § 6-61-601.
(2) Net proceeds derived from the additional days of dog racing shall be all revenue derived from the pari-mutuel wagering at the dog racing track during the additional days of racing, less the amount of the purses paid by the franchise holder.
(c) The commission shall establish appropriate rules to assure compliance with the provisions of this section and shall audit and verify all receipts and expenditures of the franchise holder in determining compliance with this section.
Credits
Acts of 1993, Act 879, §§ 1, 2, 4, 5; Acts of 2019, Act 315, § 2824, eff. July 24, 2019.
§ 23-111-516. Health insurance for employees of franchised dog racing facilities
From the amount withheld and retained by the dog racing franchise holder pursuant to § 23-111-509, the franchise holder shall set aside for the use and benefit of his or her employees for the purpose of maintaining health insurance benefits, one-half of one percent (0.5%) of all moneys wagered on live racing and on racing performances simultaneously televised by the franchise holder but conducted at another race track facility. This set-aside shall be in addition to any other credits or payments made by the dog racing franchise holder in accordance to law. Any surplus funds shall be carried forward the next calendar year and shall not be used for any other purposes. However, the amount set aside shall be applied only to the first one hundred twenty-five million dollars ($125,000,000) of the amount of moneys wagered per calendar year.
Credits
Acts of 1999, Act 1585, § 1, eff. July 30, 1999.
§ 23-111-517. Disposition of pari-mutuel tax revenue
(a) Each year, the first eighty-five thousand dollars ($85,000) of the pari-mutuel tax revenue derived from § 23-111-505(a) shall be remitted directly to Arkansas State University Mid-South and shall be used by the college for facilities, programming, and personnel in the support of a nursing program.
(b) The revenue received by the college under this section shall be considered local taxes for the purposes of § 6-61-601.
Credits
Acts of 2001, Act 1488, § 1, eff. Aug. 13, 2001; Acts of 2016, Act 140, § 14, eff. July 1, 2016.
§ 23-111-518. Legislative intent--Definitions--Payable winnings agreements
(a) It is the intent of the General Assembly to recognize the rich history of greyhound racing in the state and to provide clarity in the law regarding payable winnings agreements to ensure that the purpose of The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100, is met while maintaining the traditions related to greyhound racing. As used in this section:
(b) As used in this section:
(1) “Owner” means the person whose name the greyhound is registered under with the National Greyhound Association;
(2)(A) “Payable winnings” means moneys payable to a payee entitled to collect the moneys due to the owner's greyhound winning a greyhound race.
(B) “Payable winnings” does not include net casino gaming receipts as defined in The Arkansas Casino Gaming Amendment of 2018, Arkansas Constitution, Amendment 100;
(3) “Payee” means the person to whom the payable winnings are due; and
(4) “Payor” means an individual, corporation, partnership, association, trust, or other entity holding a franchise to conduct greyhound racing under this chapter.
(c) At the payee's direction, a payee may enter into a written payable winnings agreement that authorizes:
(1) A percentage or agreed-upon amount of the payable winnings to be deducted from the payable winnings by the payor at the payee's request; and
(2) The payment of moneys from the payable winnings to be paid to a nonprofit organization described in 26 U.S.C. § 501(c), as in effect on January 1, 2019, as designated by the payee.
(d) Payable winnings included in a payable winnings agreement shall be paid first to the nonprofit organization listed in the payable winnings agreement, with remainder paid to the payee.
Credits
Acts of 2019, Act 892, § 1, eff. July 24, 2019.