23 CAR § 358-1524 – Powers of the commission after delayed licensing approval

(a) The Arkansas Racing Commission may exercise, without limitation, any of the following powers.
(b) After the granting of delayed licensing to a member, the commission may at any time activate the licensing process for any member granted delayed licensing if it determines that:
1. (1) A member has thereafter developed a material relationship with or to a manager;
2. (2) A member, individually or in conjunction with other members, has acquired the ability to exercise significant control or influence over the management of the limited liability company’s gaming operations or business affairs;
3. (3) A member, individually or in conjunction with other members, has exercised, for any reason, significant control or influence over the management of the limited liability company’s gaming operations, either directly or indirectly, even if such control is contemplated or authorized by the operating agreement;
4. (4) There is reason to believe that a member cannot demonstrate his or her suitability;
5. (5) The aggregate effective ownership percentage held by a member granted delayed licensing has increased to more than ten percent (10%);
6. (6) There is a change in the manager, except upon the retirement, death, or disability of a manager who is a natural person; or
7. (7) Any other cause it deems reasonable.
(c) The commission may activate the licensing process for any member granted delayed licensing at any time.
(d) The commission may delegate to its director or staff the authority to activate, without commission approval, the licensing process for a particular member who has been granted delayed licensing.
(e)
1. (1) The commission may issue an order requiring escrow of the funds, profits, or other moneys due any member granted delayed licensing from the licensed limited liability company for any cause deemed reasonable.
2. (2) Any such escrow ordered by the commission automatically terminates at the conclusion of the next regular commission meeting unless:
  1. (A) The commission recommends that the commission activate the licensing process for the member that is the subject of the order;
  2. (B) The commission continues discussion of whether it should recommend that the licensing process be activated to a future meeting at the request of the member that is the subject of the order; or
  3. (C) The commission activates the licensing process pursuant to a delegation of authority from the commission under this part.
(f) Any escrow ordered by the commission pursuant to subsection (e) of this section automatically terminates if the commission decides not to activate the licensing process for the member that is the subject of the order or if the commission licenses the member.