(a)

1. (1) All limited partners with a five percent (5%) or less ownership interest in a limited partnership licensee must register in that capacity with the Arkansas Racing Commission and affirmatively state in writing that they submit to the commission’s jurisdiction.
2. (2) Such registration must be made on forms prescribed by the commission.
3. (3) A limited partner who is required to be registered by this section shall apply for registration before the limited partner obtains an ownership interest of five percent (5%) or less in a limited partnership licensee.

(b) If the commission finds a limited partner unsuitable, denies an application of the limited partner, or revokes an approval of the limited partner, the limited partner and the limited partnership shall comply with the following:

1. (1)

   1. (A) If at any time the commission finds that an individual owner of any such interest is unsuitable to hold that interest, the commission shall immediately notify the limited partnership of that fact.
   2. (B) The limited partnership shall, within ten (10) days after the date that it receives the notice from the commission, return to the unsuitable owner, in cash, the amount of the unsuitable owner’s capital account as reflected on the books of the partnership; and

2. (2) Beginning on the date when the commission serves notice of a determination of unsuitability pursuant to subsection (b)(1) of this section upon the limited partnership, it is unlawful for the unsuitable owner:

   1. (A) To receive any share of the profits or interest upon any limited partnership interest;
   2. (B) To exercise, directly or through any trustee or nominee, any voting right conferred by such interest; or
   3. (C) To receive any remuneration in any form from the limited partnership, for services rendered or otherwise.

(c) An application for registration with the commission shall:

1. (1) Include a completed application for registration form as prescribed by the commission;
2. (2) Include fully executed waivers and authorizations as determined necessary by the commission to investigate the registrant;
3. (3) Include an affirmative statement that the registrant submits to the jurisdiction of the commission;

4. (4) Include an affirmative statement that the registrant has no intent to exercise control over the licensee other than:

   1. (A) To vote the registrant’s shares in the ordinary course; and
   2. (B) If applicable, to take action in another licensed capacity under the commission rules that are not prohibited by any commission rules;

5. (5)

   1. (A)

(i) Include the fingerprints of the registrant for purposes of investigating the registrant’s criminal history.

1. (ii) Such fingerprints shall be provided in a form and manner acceptable to the commission.

   1. (B) The commission, in the commission’s sole and absolute discretion, may waive this requirement upon a written request which specifically sets out the reasons for the request for waiver;

2. (6) Be accompanied by a fee to cover registration investigation costs as follows:

   1. (A) For registrations related to two (2) or fewer restricted licenses, an investigative fee in the amount of five hundred fifty dollars ($550); and

   2. (B)

      1. (i) For all other registrations, an investigative fee in the amount of two thousand five hundred dollars ($2,500).
      2. (ii) This fee does not include the application fee or investigation costs should the commission require the registrant to apply for licensure; and

3. (7) Include such other information as the commission may require.

   1. (d)
4. (1) The commission may require a limited partner who is required to be registered by this section to apply for licensure at any time in the commission’s discretion by sending notice through the United States Postal Service to the registrant at the address on the registrant’s registration on file with the commission and to the limited partnership at the address on file with the commission.
5. (2) A limited partner shall apply for licensure as required by the commission within forty (40) days of the limited partner’s receipt of notice.
6. (3) The notice shall be deemed to have been received by the limited partner five (5) days after such notice is deposited with the United States Postal Service with the postage thereon prepaid.

(e)

1. (1) Upon receipt of a completed application for registration with the commission, the application shall be placed on an agenda for consideration by the commission not later than the first regular monthly commission agenda following the expiration of one hundred twenty (120) days after the commission receives the completed application for registration with the commission.

2. (2)

   1. (A) At the meeting in which the commission considers the application, it shall register the person with the commission, decline to register the person with the commission, or refer the application back to staff.
   2. (B) At the meeting in which the commission considers the application, it may also recommend the commission require the person required to be registered by this section to apply for licensure.
   3. (C) If the commission declines to register a person pursuant to this subsection, such action in so declining to register a person with the commission shall not be considered a denial under the act.
3. (3) A person who has the person’s application for registration with the commission declined or referred back to staff may file an application for licensure even if not required to do so by the commission.

(g)

1. (1) In enacting this subpart, the commission finds that waiver is appropriate to the extent required by this section.
2. (2) In making this waiver, the commission finds such waiver is consistent with state policy because such waiver is for purposes including but not limited to fostering the growth of the gaming industry which is vitally important to the economy of the state and the general welfare of its inhabitants and broadening the opportunity for investment in gaming.
3. (3) The commission further finds such waiver does not diminish the commission’s roles in strictly regulating gaming and effectively controlling the conduct of gaming by business organizations because the commission still requires, at a minimum, registration with the commission of all persons involved with gaming and may call such persons subject to registration with the commission forward for licensure, registration with the commission, or findings of suitability.

(h)

1. (1) Upon the commission requiring a limited partner who is required to be registered by this section to apply for licensure, the limited partner does not have any right to the granting of the application.
2. (2) Any license hereunder is a revocable privilege, and no holder acquires any vested right therein or thereunder.
3. (3) Judicial review is not available for decisions of the commission made or entered under the provisions of this section.