1. (a) Administrative penalties.

   1. (1)

      1. (A) Any person or entity that violates provisions of the Amusement Ride and Amusement Attraction Safety Insurance Act, Arkansas Code § 23-89-501 et seq., or any rules issued thereunder, shall be subject to an administrative penalty up to ten thousand dollars ($10,000) for each violation.
      2. (B) Each day the violation continues shall constitute a separate offense.

   2. (2)

      1. (A) Any person or entity that violates Arkansas Code § 23-89-504(c), or any rules issued thereunder, shall be subject to an administrative penalty up to five thousand dollars ($5,000) for each violation.
      2. (B) Each day the violation continues shall constitute a separate offense.
   3. (3) The amount of all civil penalties will be determined in accordance with subsection (b) of this section.

   4. (4)

      1. (A) In administrative penalty cases, the Administrator of the Workers’ Health and Safety Division shall notify the person or entity charged with the violation or violations by certified mail of the following:

2. (i) The nature of the violation;

   1. (ii) The date or dates of the violation; and

      1. (iii) The amount of the administrative penalty.
      2. (B) The administrative penalty determination shall be final, unless within fifteen (15) days after receipt of this notice, the person or entity charged with the violation or violations notifies the Director of the Division of Labor in writing that he or she contests the penalty.
      3. (C) The procedure for contesting an administrative penalty is provided in subsection (d) of this section.
   2. (5) If the person or entity charged with the violation has not filed notice that he or she contests the administrative penalty within fifteen (15) days after receiving notice in accordance with subdivision (a)(4) of this section, the penalty assessment by the Workers’ Health and Safety Division becomes the final determination of the director.
   3. (6) Notice of the administrative penalty may also be delivered in the same manner as summons in civil cases.

3. (b) Administrative penalty assessment.

   1. (1) If upon inspection or investigation, the director or authorized employee finds that a person or entity has violated provisions of the Amusement Ride and Amusement Attraction Safety Insurance Act, or any rules issued thereunder, the administrator may assess an administrative penalty for each violation.
   2. (2) The amount of an administrative penalty shall be assessed based on the violation penalty schedule in subsection (c) of this section.

   3. (3)

      1. (A) The violation penalty schedule is only a guideline to assist in consistent application of civil monetary penalties.
      2. (B) The Amusement Ride Safety Advisory Board shall only be bound by the statutory fine scale described in Arkansas Code §§ 23-89-504(c) and 23-89-505(d).

   4. (4)

      1. (A) The maximum amount of an administrative penalty will be based on the nature and the gravity of the violation or violations.

      2. (B) Matters which are indications of the gravity of a violation and which justify maximum civil penalty assessments are:

         1. (i) The likelihood of injury and the seriousness of the potential injuries to the public;
         2. (ii) Multiplicity of violations by an owner or operator;
         3. (iii) Recurring violations;
         4. (iv) Falsification or concealment of documentation and information regarding the operation, insurance, training, or NDT testing; and
         5. (v) Failure to ensure future compliance.
   5. (5) All administrative penalties upon any person or entity shall permanently remain on record with the Division of Labor.

   6. (6) No civil penalty assessments older than two (2) years shall be used as the basis for a progressive discipline pursuant to the violation penalty schedule in subsection (c) of this section.

      1. (c) Violation penalty schedule.

         Violation	Statute or Rule Provision	1st	2nd
         Failure to notify Director of intent to operate within the State of Arkansas	23-89-505	$2,500	$5,000
         Operation of ride or attraction without proper liability insurance	23-89-504	$5,000	$10,000
         Operation of ride or attraction without current safety inspection report	23-89-504	$2,500	$10,000
         Operation of ride or attraction in violation of a cease and desist order	23-89-504	$10,000	$10,000
         Operation of a ride or attraction that has been “red- tagged”, or removal of a “red-tag” before approval by a division inspector	23-89-506	$10,000	$10,000
         Failure to report a fatality or serious physical injury	23-89-510	$10,000	$10,000
         Operation of ride or attraction by a unqualified person	23-89-511	$2,500	$10,000
         Failure to maintain proper records with ride or attraction	23-89-516	$1,000	$5,000
         Other violations of Ark. Code Ann. §§ 23-89-501 through23-89-518		Discretionary	Discretionary

         Note. Any third or greater offense will receive the maximum statutory administrative penalty of ten thousand dollars ($10,000), except that failure to notify of intent to operate carries a maximum penalty of five thousand dollars ($5,000).
         1. (d) Contesting an administrative penalty.

   7. (1)

      1. (A) The person or entity may contest the imposition of an administrative penalty by filing a written request for a hearing with the: Director of the Division of Labor 900 West Capitol Avenue, Suite 400 Little Rock, Arkansas 72201
      2. (B) The written request must be made within thirty (30) days after receipt of notification of the administrative penalty or the assessment will become final.
   8. (2) A written request for a hearing shall be referred to a hearing officer designated by the director.

   9. (3)

      1. (A) The person or entity shall be provided at least twenty (20) days’ notice of the hearing.

      2. (B) Such notice shall include:

         1. (i) A statement of the time, date, place, and nature of the hearing;
         2. (ii) A statement of the legal authority and jurisdiction under which the hearing is to be held;
         3. (iii) A short and plain statement of the matters of fact and law asserted; and
         4. (iv) A statement that the person, firm, or corporation may, upon written request, obtain the issuance of a subpoena by the director for the attendance and testimony of witnesses and the production of documents.

   10. (4)

       1. (A) The designated hearing officer shall, after consideration of the evidence, issue a decision and issue an order setting forth findings of fact and conclusions of law.
       2. (B) Such decision shall become the final determination of the director, unless judicial review is sought within thirty (30) days pursuant to the Arkansas Administrative Procedure Act, Arkansas Code § 25-15-201 et seq.
   11. (5) If any person, firm, or corporation against whom an administrative penalty has been imposed fails to pay the penalty within sixty (60) days of the final determination, the director may file an action in a court of competent jurisdiction to collect the administrative penalty, without paying costs or giving bonds for costs.
4. (e) In addition to the legal action in subsection (d) of this section, no safety inspection shall be performed for any amusement ride or attraction if the owner, operator, or lessee of such amusement ride or attraction has failed to pay assessed administrative fines.

Codification Notes: “NDT” means nondestructive testing.