(a) The Arkansas Racing Commission shall not issue a service industry license to any entity unless the applicant has established the individual qualifications of each one of the following entities or persons, if applicable:

1. (1) The entity;
2. (2) The holding company or companies of the entity;
3. (3) Every owner of the entity who has, directly or indirectly, any interest in or is the owner of more than five percent (5%) of the entity;
4. (4) Every owner of a holding company of the entity which the commission deems necessary to promote the purposes of this part;
5. (5) Any director of the entity, except such director who, in the opinion of the commission, is not significantly involved in, or related with, the administration of the entity;
6. (6) Every officer of the entity who is significantly involved in, or who has authority over, the manner in which the business dealing with the activities of the franchise holder and any officer who the commission considers necessary to protect the good character, honesty, and integrity of the entity;
7. (7) Any officer of the holding company of the entity who the commission considers necessary to protect the good character, honesty, and integrity of the entity;
8. (8) Any employee who supervises the regional or local office which employs the sales representatives who shall solicit business from, or negotiate directly with, a franchise holder;
9. (9) Any employee who shall function as a sales representative or who shall be regularly dedicated to soliciting business from any franchise holder in the State of Arkansas; and
10. (10) Any other person connected to an entity who the commission considers should be licensed.

(b)

1. (1) This part does not apply to an institutional investor (as defined by the Securities Exchange Act of 1934, as amended, 15 U.S.C. § 78a et seq.) that acquires, or will acquire, ten percent (10%) or less of the equity securities of an applicant or licensee that is a publicly traded corporation if those holdings were purchased for investment purposes only and the institutional investor files with the commission a certified statement that it has no intention of influencing or affecting, directly or indirectly, the affairs of the licensee.
2. (2) The investor will be permitted to vote on matters put to the vote of the outstanding security holders.