14.1 Key Employee and General Employee Licenses
(a) Except in cases of emergency and/or unavoidable temporary incidental entry, no person may work or provide services to the EGS Operations of a Franchise Holder in the State of Arkansas unless the person has a current Key Employee License or a General Employee License issued by the Commission, as provided in these regulations. The Key or General Employee License requirements apply to persons who have direct access to the EGS gaming terminals, surveillance or computer systems.
(b) Employees who perform duties in the racing industry of the Franchise Holder must have a Racing License. In the event the employee is assigned to work in both the Racing and EGS areas, the employee must obtain both a General Employee License and a Racing License.
(c) Key Employee and General Employee Licenses are issued annually.
(d) Qualifications for a Key Employee or General Employee license must meet the same qualifications as stated in section 13.10 Qualifying as a Person Related with a Service Industry License.
14.2 Initial Application for an Employee License
(a) Every initial application for an Employee License shall include:
i. A duly completed original and a photocopy of the Arkansas Racing Commission Personal History Disclosure form in accordance with Section 13.17 of these regulations;
ii. The documents to identify applicant, as provided in Section 14.15 of these regulations;
iii. A photo identification card shall be submitted by the applicant to the Commission with the filing of the license application, which will be stapled to the Arkansas Racing Commission Personal History Disclosure form in addition to submission of fingerprinting of the applicant by Commission staff or their designees, which will be submitted for state and federal regulatory inquiry purposes for criminal and financial background checks.
iv. The fees to be paid as provided in Section 14.16 of these regulations including late fees for late filings.
(b) Each initial application shall be filed at or mailed to the Commission at the address of the Commission as provided on the application itself.
14.3 Persons or Entities Who Must Obtain a Key Employee License
Except as otherwise approved by the Commission, any person or entity who carries out or will carry out, or has or will have any of the functions mentioned in Section 14.4 shall obtain a Key Employee License; or who carries out functions specified in Section 14.5 shall obtain a General Employee License before commencing work with a Franchise Holder. The lists contained in Sections 14.4 and 14.5 of these regulations are not all-inclusive but illustrative.
14.4 Key Employee Job Functions
Any person or entity who is going to be employed by the Franchise Holder in a position which includes any of the following responsibilities or powers, independently of the title, shall obtain a Key Employee License:
(a) Where they have authority to develop or administer policy or long-range plans or to make discretionary decisions related to the operation of the Franchise Holder they shall be considered a Key Employee Licensee and shall include, but not be limited to any person or entity who:
i. Functions as an officer of the Franchise Holder;
ii. Functions as a facility manager for a Franchise Holder or director;
iii. Functions as EGS gaming department manager;
iv. Functions as director of surveillance;
v. Functions as director of security;
vi. Functions as controller;
vii. Functions as an audit department executive;
viii. Functions as the manager of the MIS (“Management Information Systems”) Department or of any information system of a similar nature;
ix. Manages a marketing department;
x. Functions as assistant manager;
xi. Manages the EGS gaming administrative operations;
xii. Functions as a general manager;
xiii. Functions as Chief Financial Officer of the Franchise Holder; and
xiv. Any other person who has the ability to direct, control or manage the operations or who has discretionary authority over the Franchise Holder’s decision-making. Notwithstanding the above, individuals working exclusively for pari-mutuel operations in horse or greyhound racing would not be covered by these regulations.
14.5 General Employee Job Functions
Any natural person who is going to be employed by the Franchise Holder in a position which includes any of the following responsibilities related to the operations of the Franchise Holder, or whose responsibilities predominantly involve the maintenance or the operation of EGS gaming activities or equipment and assets associated with the same, or who is required to work regularly in restricted EGS areas shall obtain a General Employee License. Said persons shall include, but not be limited to, any person who:
(a) Conducts surveillance investigations and operations in an EGS gaming area;
(b) Repairs and maintains EGS gaming equipment, including, but not limited to, EGS and bill acceptors;
(c) Assists in the operation of EGS and bill acceptors, including, but not limited to, persons who participate in the payment of jackpots, or who supervise said persons;
(d) Processes currency, and patrons’ checks or Cash Equivalents in the EGS gaming area;
(e) Repairs or maintains the Surveillance System equipment as an employee of the surveillance department of the Franchise Holder;
(f) Provides physical security in an EGS gaming area;
(g) Controls or maintains the EGS inventory, including replacement parts, equipment and tools used to maintain of the same;
(h) Has responsibilities associated with the installation, maintenance or operation of computer hardware for the Franchise Holder’s computer system; and
(i) Does not perform the job functions of a Key Employee as outlined within section 14.4.
14.6 Scope and Applicability of Employee Licensing of Natural Persons
(a) In determining whether a natural person who provides services to Franchise Holders is an employee of the Franchise Holder for purposes of the rules, it shall be presumed that such person is an employee if the services provided by that person are characterized by any of the following factors, these being indicative that an employment relationship exists:
i. The natural person will, for a period of time unrelated to any specific project or for an indefinite period of time, directly supervise one or more employees of the Franchise Holder;
ii. The Franchise Holder will withhold local and federal taxes or make regular deductions for social security, or other deductions required by law from the payments made to the natural person;
iii. The natural person will be given the opportunity to participate in any benefit plan offered by the Franchise Holder to its employees, including, but not limited to, health insurance plans, life insurance plans or pension plans; or
iv. The natural person has an employee license application pending with the Commission or will submit such an application during the time the services are being rendered to the Franchise Holder, and the cost of the license has been or will be paid for or reimbursed by the Franchise Holder.
(b) The Commission may, after considering the factors in paragraph (a) of this section and any other applicable information, require that the natural person obtain an employee license before providing or continuing to provide any service to Franchise Holder even if an agreement to the contrary exists between the Franchise Holder and the natural person.
14.7 General Criteria for Granting of a Key Employee License
(a) Each applicant for an Employee License shall provide the Commission with the necessary information, documentation and guarantees which establish through clear and convincing evidence that the applicant:
i. Is older than 21 years of age;
ii. Is a citizen of the United States of America or is authorized in accordance with the applicable federal laws or regulations to work in the United States of America.
iii. Possesses good character and reputation, in addition to being honest and having integrity; and
iv. Has no physical or mental condition that prohibits the applicant from performing the essential functions of his job for which there is no reasonable accommodation.
(b) Failure to comply with one of the criteria established in paragraph (a) above may be sufficient cause for the Commission to deny an application for an Employee License.
14.8 Personal Information Required for a Key Employee License
(a) Every applicant for a Key Employee License who will work in a managerial or supervision position for a Franchise Holder of the type described in Section 14.4 of these regulations shall submit:
i. Any affiliation of applicant with a Franchise Holder or with companies controlling the Franchise Holder and the position he/her occupies with the same or his interest in said entity;
ii. Any affiliation of applicant with a Service Industry entity or with companies controlling the Service Industry entity and the position that he/her occupies with or his interest in said entity.
14.9 Processing of the initial application for a Key Employee License
(a) The Commission shall determine if the initial application complies with all the requirements provided in these regulations and if any deficiency is found, it shall notify the applicant of the deficiency(ies) within 20 days following the filing of the initial application with the Commission. The Commission shall not evaluate an incomplete initial application.
(b) Once the Commission has determined that the initial application filed is complete, the Commission shall:
i. Accept the application and initiate the procedure for considering the same;
ii. Notify in writing the applicant or his/her representative, if any, that the application has been accepted for consideration. Said notice shall also include:
(1) The date of said acceptance;
(2) The file number of the application; and
(3) A caution to the applicant that the fact that the application has been accepted for consideration does not mean that the applicant has complied with the requirements of the regulations to issue the license;
iii. Analyze and evaluate the information offered in the application and any other information necessary to determine if the requested license should be granted;
iv. Make a decision with respect to the requested license; and
v. Notify the applicant of its decision. If the decision consists of a denial of the license, the Commission shall inform the applicant the reason or reasons for the denial and of his/her right to request a reconsideration of the decision of the Commission following the adjudicative procedures provided in section 14.0 of these regulations. For purposes of these regulations, a denial of a license application shall be considered a final order of the Commission, after the adjudication process.
(c) The Commission, at any time, may request from an applicant for an Employee License any other information it may deem necessary in order to make a decision with respect to the application.
14.10 Duration of the Employee License
(a) Every Employee License shall be issued by the Commission for a period of up to 1 year.
(b) Notwithstanding the provisions of paragraph (a) above, the Commission may, as it deems necessary:
i. issue any license for a shorter period of time;
ii. at anytime, void an Employee License for reasonable cause.
14.11 Date of Filing for Renewal of a Key or General Employee License
Any holder of an Employee License shall renew his license by filing with the Commission an application for renewal of his Employee License. The completed renewal application shall be filed with the Commission no later than 60 days prior to expiration of the license.
14.12 Application for Renewal of a Key or General Employee License
(a) The application for renewal of an Employee License shall include:
i. A duly completed original and a photocopy of the Arkansas Racing Commission Personal History Disclosure form which shall contain all the information which has changed since the date of the initial Employee License application or of the last renewal.
ii. The documents which identify the applicant, as provided in section 14.15 of these regulations;
iii. Photographs of the applicant taken by the Commission or its representatives, which shall be stapled to the Arkansas Racing Commission Personal History Disclosure form; and the submission of fingerprints of the applicant, which shall be taken by the Commission or their designee and submitted to state and federal authorities for relevant checks.
iv. The fees to be paid as provided in Section 14.16 of these regulations.
(b) Any renewal application shall be filed with or mailed to the Commission to the address of the Commission, as provided on the application.
(c) Any person who fails to submit a completed renewal application in accordance with this section or in accordance with the provisions of paragraph (a) of Section 14.13 of these regulations shall be considered as not having filed a renewal application with the Commission and the license shall be cancelled on the expiration date.
(d) Any person whose current employee license is cancelled in accordance with this section may, before the date of expiration of the current license, or at any time after the expiration, apply for an Employee License; provided that the application, for all purposes of these regulations, shall be considered an initial Employee License application and shall comply with Sections 14.8 and 14.9 of these regulations.
14.13 Processing of the Application for Renewal of Key or General Employee License
(a) The Commission shall determine if the renewal application filed complies with all the requirements provided in these Regulations and if any deficiency is found, it shall notify the applicant of the deficiency(ies) within 20 days following the filing of the renewal application with the Commission; provided that the Commission may, at its discretion and depending on the magnitude of the deficiency(ies), grant an opportunity for the applicant to cure any deficiency within the period and under the conditions determined by the Commission at said time. Any application where a deficiency has been cured in accordance with the above shall be deemed to have been filed within the period required by these Regulations.
(b) Upon receipt of an application for renewal of an Employee License duly completed and filed within the period required by these regulations, the Commission or its representatives shall carry out the investigation it deems necessary.
(c) The Commission shall make a decision with respect to each completed license renewal application which has been submitted.
(d) The Commission shall notify the applicant of the decision made. If the decision consists of a denial of the renewal of the license, the Commission shall inform the applicant the reason or reasons for the denial and of his right to request a reconsideration of the decision of the Commission following the adjudicative procedures provided in section 14.9(b)(v) of these regulations. For purposes of these regulations, a denial of a license application shall be considered a final order of the Commission, after the adjudication process.
14.14 Responsibility for Establishing Qualifications and to Disclose and Cooperate
(a) Each applicant shall be responsible for providing the information, documentation and assurances required for establishing through clear and convincing evidence that his/her qualifications meet the requirements of these regulations.
(b) It shall be the continuing responsibility of every applicant or holder of an Employee License to provide all the information, documentation and assurances that may be required by the Commission pertaining to the qualifications, and to cooperate with the Commission. Any refusal or failure of an applicant to comply with a formal request for information, evidence or testimony from the Commission shall be sufficient cause for a denial or revocation of the license.
14.15 Identification of the Applicant
Every applicant for an Employee License shall establish his/her identity with reasonable certainty by providing the necessary Identification Credentials.
14.16 Fees Payable
The fees payable for the initial or renewal application for Employee Licenses shall be determined by the Commission. Applications for an initial license and every third year after initial license will be required to pay to the Commission a fee to cover the costs related to obtaining background investigations and reports. Applications for an initial license and every third year after initial license will be required to pay to the Commission a fee to cover the costs related to obtaining background investigations and reports.
14.17 Employees Working Without an Employee License
No employee with an expired license shall work in a position or shall exercise functions for which such license is required, with the understanding that if such employee is found working without a current and valid license, the employee, as well as the Franchise Holder or person or entity employing the employee shall be subject to sanctions as established by the Commission.
14.18 Payment of Fees, Regulatory Sanctions; No Refunds of Payments
(a) No application shall be accepted for filing or processed by the Commission except upon full payment of all required fees, civil penalties or regulatory sanctions. Any portion of a fee which is incurred or determined after the filing of the application or any civil penalty imposed by the Commission shall be payable upon demand to the Commission.
(b) Any payment of monetary obligation arising from these regulations shall be paid in full even when the person withdraws his Employee License application.
(c) No amounts required to be paid to the Commission for licensure; civil penalties or regulatory sanctions shall be refunded.
(d) Any fees, civil penalties or regulatory sanctions not paid by the due date shall be subject to penalty in an amount to be determined by the Commission.
14.19 Miscellaneous Administrative Charges
(a) Any lost Key Employee License shall be replaced by the Commission at a cost to be determined by the Commission.
(b) Any change to the Employee License requested by the employee which was not caused by an omission or negligence of the Commission shall carry a charge to be determined by the Commission.
14.20 Change of Position or Place of Work
(a) Any natural person who carries out any of the functions described in Section 14.5, General Employee Job Functions of these regulations or one which is similar in nature to said functions and for any reasons the person’s functions change to any of the functions which are described in Section 14.3 of these regulations or one that is similar in nature to these shall file a new application with the Commission in accordance with the provisions of Section 14.12, Application for Renewal of Key Employee License of these regulations within the 20 days following the change of the person’s position.
(b) A license setting forth more than one position may be issued to any licensed employee by the Commission upon application by the licensed employee or the Franchise Holder. Said request would be reviewed by the Commission to ensure that their dual license status would not be deemed an Incompatible Function. The review will be conducted in a timely manner and the Commission’s decision shall be provided to the applicant in writing.
14.21 Carrying of Licenses and Credentials
(a) Any person to whom the Commission has issued an Employee License must carry, on his person or wear in a visible and conspicuous manner, the Employee License, at all times when on premises of the franchise holder.
(b) No Franchise Holder shall permit a person to work in its licensed premises without said person carrying his/her Employee License as provided in paragraph (a) above.
14.22 Authority of Commission - Licensing
(a) Nothing provided in this document shall be interpreted as limiting authority and powers of the Commission to at any time:
i. Investigate the qualifications of any holder of an Employee License; and
ii. The Commission may suspend, revoke or refuse to issue a license to any person who:
(1) Failed to disclose or misstated information or otherwise attempted to mislead the Commission with respect to any material fact contained in the application for license as a gaming employee;
(2) Violated Commission rules, or has been suspended or had a license revoked by another gaming jurisdiction;
(3) Has been convicted of a felony in the last ten years. Persons with felony convictions that are more than ten years ago may be licensed at the discretion of the Commission.
(4) Has been identified in the published reports of any federal or state legislative or executive body as being a member or associate of organized crime, or as being of notorious and unsavory reputation;
(5) Is on probation, parole or remains in the constructive custody of any federal, state or municipal law enforcement authority;
(6) Had license as a gaming employee revoked or committed any act which is a ground for the revocation of license as a gaming employee or would have been a ground for revoking license as a gaming employee if the applicant had then been registered as a gaming employee;
(7) Has been employed in the last two years by the accounting firm that has conducted the annual independent audit on behalf of a Franchise Holder or the EGS Section; or
(8) Has been employed by the EGS Section within the last two years.
14.23 Transitory Provisions
(a) Any person who on the effective date of these regulations who in accordance with the provisions of these regulations would need an Employee License, shall file an initial application within the thirty (30) days following the effective date of these regulations.
(b) All persons to whom these regulations would apply shall comply with all the provisions of these regulations from the effective date of these regulations.
(a) The Commission may initiate regulatory enforcement actions against any person licensed under these regulations.
(b) Any person who willfully fails to report, pay or truthfully account for and pay any license application fee, investigative fee or any other fees imposed by these regulations, or willfully attempts in any manner to evade or defeat any such fee, or payment thereof shall be subject to suspension or revocation of their license and shall be liable for the imposition of a penalty, as determined by the Arkansas Racing Commission.
(c) Any person who, without obtaining the requisite license as provided for by these regulations works or is employed in a position whose duties would require licensing under the provision of these regulations shall be liable for the imposition of sanctions and subject to a fine of not more than $1,000, suspension or revocation of license or both.
(d) In addition to any monetary sanction, the Commission shall, after appropriate hearing and factual determinations, have the authority to impose the following sanctions upon any person licensed pursuant to these regulations:
i. Revoke the license of any person convicted of any criminal offense for which disqualification as set forth in Section 14.0 would result.
ii. Suspend the license of any person pending a hearing and determination in any case in which license revocation could result.
iii. Suspend or revoke the license for violation of any provisions of these regulations relating to Franchise Holders.
iv. Assess sanctions as may be necessary to punish misconduct and to deter future violations, which such penalties may not exceed $5,000 in the case of any individual licensee and in the case of the Franchise Holder, the penalty may not exceed $10,000 for each violation.
v. Issue warning letters, letters of reprimand or censure, which letters shall be made a permanent part of the file of each licensee so sanctioned.
(e) In considering appropriate sanctions in a particular case the Commission shall consider:
i. The risk to the public and to the integrity of Franchise Holders created by the conduct of the person facing sanctions;
ii. The seriousness of the conduct and whether the conduct was purposeful and with knowledge that it was in contravention of these regulations;
iii. Any justification or excuse for such conduct;
iv. The prior history of the licensee with respect to compliance with these regulations;
v. The corrective action taken by the licensee to prevent future misconduct of a like nature from occurring; and
vi. In the case of a civil penalty, the amount of the penalty in relation to the severity of the misconduct. The Commission may impose any schedule or terms of payment of such penalty, as it may deem appropriate.
vii. It shall be no defense to any regulatory enforcement or disciplinary action before the Commission that the applicant or licensee inadvertently, unintentionally, or unknowingly violated a provision of these regulations. Such factors shall only go to the degree of the civil penalty to be imposed by the Commission.
(f) A violation of any provision of these regulations, which is an offense of a continuing nature, shall be deemed to be a separate offense on each day during which it occurs. Nothing herein shall be deemed to preclude the Commission from enforcing multiple violations within the same day of those provisions of the regulations which establish offenses consisting of separate and distinct acts.