17-1-101. Examination credit for United States veterans and nurses.

1. In all examinations held by any and all state boards, commissions, or bureaus for the purpose of examining applicants for any license or permit to engage in any profession, trade, or employment, all applicants for such examinations who are veterans of the United States Army, United States Navy, United States Marine Corps, or Nurses of the United States shall have a credit of ten percent (10%) over and above all applicants who are not such veterans or nurses.
2. The only requirement on the part of the applicant for examination to secure credit of ten percent (10%) shall be the delivery to the examining board, commission, or bureau of the original or a duly and properly executed certified copy of an honorable discharge from the United States Army, United States Navy, United States Marine Corps, or Nurses of the United States.
3. The advantage given to veterans or nurses under and by this section shall be the same as is given to such veterans and nurses by the acts of the United States Congress for federal positions and licenses.

History. Acts 1941, No. 298, §§ 1, 2; A.S.A. 1947, §§ 11-1701, 11-1702.

Cross References. Veterans preferences in public employment, § 21-3-301 et seq.

17-1-102. Liability of committee members of professional societies, review organizations, and hospital medical staffs — Definition.

1. There shall be no monetary liability on the part of, and no cause of action for damages shall arise against, members of the following organizations for any act or proceeding undertaken or performed within the scope of the functions of any such committee which is formed to maintain the professional standards of the society established by its bylaws, if the committee member acts without malice, has made a reasonable effort to obtain the facts of the matter as to which he or she acts, and acts in reasonable belief that the action taken by him or her is warranted by the facts known to him or her after a reasonable effort to obtain facts:
   1. A duly appointed committee of a state or local professional society;
   2. A professional services review organization appointed pursuant to state or federal statute; or
   3. A duly appointed committee of a medical staff of a licensed hospital, provided that the medical staff operates pursuant to written bylaws that have been approved by the governing board of the hospital.
2. “Professional society” as used in this section, includes societies of the healing arts, legal, accounting, architectural, and engineering professions having as members at least a majority of the eligible licentiates in the profession served by the particular body.

History. Acts 1975, No. 634, § 1; A.S.A. 1947, § 71-5101.

Cross References. Accountants, § 17-12-101 et seq.

Architects, § 17-15-101 et seq.

Attorneys at law, § 16-22-201 et seq.

Engineers, § 17-30-101 et seq.

Healing arts, § 17-80-101 et seq.

Immunity of healing arts board members, § 17-80-103.

17-1-103. Registration, certification, and licensing for criminal offenders.

1. 1. It is the policy of the State of Arkansas to encourage and contribute to the rehabilitation of criminal offenders and to assist them in the assumption of the responsibilities of citizenship.
   2. The public is best protected when offenders are given the opportunity to secure employment or to engage in a meaningful trade, occupation, or profession.
2. 1. 1. Subject to the provisions of subdivision (b)(2) of this section in determining eligibility under this section, a board, commission, department, or an agency may take into consideration conviction of certain crimes that have not been annulled, expunged, or pardoned.
      2. However, such convictions shall not operate as an automatic bar to registration, certification, or licensing for any trade, profession, or occupation.
   2. The following criminal records shall not be used, distributed, or disseminated in connection with an application for a registration, license, or certificate:
      1. Records of arrest not followed by a valid felony conviction by the courts;
      2. Convictions that have been annulled or expunged or pardoned by the Governor; and
      3. Misdemeanor convictions, except misdemeanor sex offenses and misdemeanors involving violence.
3. The board, commission, department, or agency shall state explicitly in writing the reasons for a decision that prohibits the applicant from practicing the trade, occupation, or profession if the decision is based, in whole or in part, on conviction of a felony.
4. For the purposes of this section, completion of the following shall be deemed prima facie evidence of sufficient rehabilitation:
   1. Probation or parole supervision; and
   2. A period of five (5) years after final discharge or release from any term of imprisonment in the state penitentiary without any subsequent conviction.
5. Any complaints concerning the violation of this section shall be adjudicated in accordance with the procedure set forth in the Arkansas Administrative Procedure Act, § 25-15-201 et seq., for administrative and judicial review.
6. 1. This section shall apply to any board, commission, department, agency, or any other body that deals in licensing or regulating a profession, trade, or occupation in the State of Arkansas.
   2. It shall be the duty of the Secretary of State to make this section known to any board, commission, department, or agency affected by this section.
7. This section shall not apply to teacher licensure or certification or nursing licensure and certification as governed by §§ 6-17-410 and 17-87-312 respectively.

History. Acts 1973, No. 280, §§ 1-6; A.S.A. 1947, §§ 71-2601 — 71-2606; Acts 1997, No. 1317, § 1; 2001, No. 752, § 3; 2005, No. 1994, § 487.

Amendments. The 2005 amendment inserted the subdivision designations in (a) and (b); redesignated former (c) and (c)(1)-(3) as present (b)(2) and (b)(2)(A)-(C); redesignated former (d)-(f) as present (c)-(e) and former (g) and (h) as present (f)(1) and (f)(2); deleted former (i); added (g); and made minor stylistic changes.

Cross References. Arkansas State Criminal Records Act, definitions of, § 12-12-1503.

Arkansas State Criminal Records Act, intent of, § 12-12-1502.

Teacher licensure, § 6-17-410.

Unrestricted information, records, immunity from civil liability, § 12-12-1506.

17-1-104. Collection of personal information for the purpose of child support enforcement.

1. On and after July 1, 1997, all persons, agencies, boards, commissions, or other licensing entities issuing any occupational, professional, or business license pursuant to Titles 2-6, 8, 9, 14, 15, 17, 20, 22, 23, and 27 of the Arkansas Code Annotated shall record the name, address, and Social Security number of each person applying for such a license.
2. 1. The name, address, and Social Security number of the person shall appear on the application. However, where an application is not required, the name, address, and Social Security number shall appear on the occupational, professional, or business license.
   2. On and after October 1, 2000, the name, address, and Social Security number of each person issued a noncommercial driver's license under Title 27 shall appear on the application for the noncommercial driver's license. This information shall be maintained by the Revenue Division of the Department of Finance and Administration as confidential information not subject to disclosure under any commercial agreement, request under the Freedom of Information Act of 1967, § 25-19-101 et seq., as well as all applicable state and federal confidentiality requirements.
3. 1. The name, address, and Social Security number of each person issued a license under Titles 2-6, 8, 9, 14, 15, 17, 20, 22, 23, and 27 of the Arkansas Code Annotated shall be stored by the person, agency, board, commission, or other licensing entity in an electronic automated data system capable of transferring the information to electronic media. On a quarterly basis, the licensee database shall be transmitted to or made available to the Office of Child Support Enforcement of the Revenue Division of the Department of Finance and Administration for the purposes of cross matching, location, and enforcement of child support obligations.
   2. 1. However, subdivision (c)(1) shall not apply to non-occupational licensees or permit holders of the State Plant Board under §§ 20-20-209 — 20-20-211.
      2. The Arkansas State Game and Fish Commission may create an exemption to the requirement under subdivision (c)(1) of this section by rule.
4. 1. Only those persons, agencies, boards, departments, commissions, or other licensing entities that issue five hundred (500) or more licenses each year, or that have a membership of five hundred (500) or more, are required to implement an automated data system as set forth in subsection (c) of this section.
   2. Those persons, agencies, boards, departments, commissions, or their licensing entities that issue fewer than five hundred (500) licenses each year, or that have a membership of fewer than five hundred (500), shall not be required to transmit licensee information to the Office of Child Support Enforcement on an automated basis.
5. The name of any member or representative of a licensing entity who refuses to provide license information to the Office of Child Support Enforcement shall be certified by the Office of Child Support Enforcement to the office of the Governor and to the Legislative Council.
6. 1. Member and applicant Social Security information required to be collected under this section shall be maintained in a confidential manner by the licensing entity.
   2. Except as authorized herein, such Social Security number information shall not be released publicly and shall be excepted from the open public record requirements of the Freedom of Information Act of 1967, § 25-19-101 et seq.
   3. Disclosure of such Social Security information without the consent of the individual or without court authorization shall be a Class B misdemeanor.
   4. Confidentiality requirements associated with the collection and maintenance of Social Security numbers by the licensing entity shall be appropriately disseminated and posted in the licensing entity's offices.

History. Acts 1997, No. 1163, § 1; 1999, No. 1514, § 21; 2017, No. 645, § 1.

Publisher's Notes. Former § 17-1-104, concerning the revocation of a driver's license for failure to pay child support, was repealed by Acts 1995, No. 752, § 2. The section was derived from Acts 1993, No. 1240, § 1. For current law, see § 9-14-239.

Amendments. The 2017 amendment redesignated former (c) as (c)(1); substituted “under” for “pursuant to” in (c)(1); and added (c)(2).

17-1-105. Notification of mandatory reporters.

Each board, commission, or other entity that licenses mandatory reporters of child abuse and neglect shall provide notice to each licensee concerning the online and web-based child abuse reporting program required under § 16-10-138 [repealed].

History. Acts 2007, No. 703, § 16.

17-1-106. Automatic licensure for active duty service members, returning military veterans, and spouses — Definitions.

1. As used in this section:
   1. “Automatic licensure” means the granting of occupational licensure without an individual's having met occupational licensure requirements provided under this title or by the rules of the occupational licensing entity;
   2. “Occupational licensing entity” means an office, board, commission, department, council, bureau, or other agency of state government having authority to license, certify, register, permit, or otherwise authorize an individual to engage in a particular occupation or profession;
   3. “Occupational licensure” means a license, certificate, registration, permit, or other form of authorization required by law or rule that is required for an individual to engage in a particular occupation or profession; and
   4. “Returning military veteran” means a former member of the United States Armed Forces who was discharged from active duty under circumstances other than dishonorable.
2. 1. An occupational licensing entity shall grant automatic licensure to engage in an occupation or profession to an individual who is the holder in good standing of a substantially equivalent occupational license issued by another state, territory, or district of the United States and is:
      1. An active duty military service member stationed in the State of Arkansas;
      2. A returning military veteran applying for licensure within one (1) year of his or her discharge from active duty; or
      3. The spouse of a person under subdivisions (b)(1)(A) and (b)(1)(B) of this section.
   2. However, an occupational licensing entity shall be required to provide automatic licensure if the proposed rules are not approved as required under subdivision (d)(2) of this section.
3. An occupational licensing entity may submit proposed rules recommending an expedited process and procedure for occupational licensure instead of automatic licensure as provided under subsection (b) of this section to the Administrative Rules Subcommittee of the Legislative Council.
4. The Administrative Rules Subcommittee of the Legislative Council shall:
   1. Review the proposed rules of an occupational licensing entity as submitted for public comment and at least thirty (30) days before the public comment period ends under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.; and
   2. Approve the proposed rules submitted under subsection (c) of this section based on:
      1. A determination of whether the expedited process and procedure provide the least restrictive means of accomplishing occupational licensure; and
      2. Any other criteria the Administrative Rules Subcommittee of the Legislative Council determines necessary to achieve the objectives of this section.
5. The Administrative Rules Subcommittee of the Legislative Council may:
   1. Establish a subcommittee to assist in the duties assigned under this section;
   2. Assign information filed with the Administrative Rules Subcommittee of the Legislative Council under this section to one (1) or more subcommittees of the Legislative Council, including without limitation a subcommittee created under subdivision (e)(1) of this section; or
   3. Delegate its duties under this section to one (1) or more subcommittees of the Legislative Council, subject to final review and approval of the Administrative Rules Subcommittee of the Legislative Council.
6. An occupational licensing entity shall:
   1. Submit proposed rules authorized under subsection (c) of this section to the Administrative Rules Subcommittee of the Legislative Council for review and approval before the proposed rules are promulgated under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.; and
   2. Provide to the House Committee on Aging, Children and Youth, Legislative and Military Affairs an annual report stating the number of automatic licenses and expedited occupational licenses granted under this section to:
      1. Active duty military service members stationed in the State of Arkansas;
      2. Returning military veterans applying within one (1) year of their discharge from active duty; or
      3. The spouse of a person under subdivisions (f)(2)(A) and (f)(2)(B) of this section.

History. Acts 2013, No. 8, § 1; 2015, No. 848, § 1; 2017, No. 248, § 1; 2019, No. 820, § 2.

A.C.R.C. Notes. Acts 2019, No. 820, § 1, provided: “Legislative Intent.

The General Assembly finds that:

“(1) The current law regarding the issuance of licenses, certificates, and permits required to enable the holder to lawfully engage in a profession, trade, or employment in this state continues to constitute a hardship on active duty service members, returning military veterans, and their spouses;

“(2) Acts 2017, No. 248, amended the law to require that all state boards and commissions promulgate rules to expedite the process and procedures for full licensure, certification, or permitting for active duty service members, returning military veterans, and their spouses;

“(3) State boards and commissions required to promulgate rules by Acts 2017, No. 248, have failed to do so in accordance with the law; and

“(4) Automatic licensure is necessary to remedy these hardships and allow active duty service members, returning military veterans, and their spouses to engage in their chosen professions”.

Acts 2019, No. 820, § 3, provided: “An occupational licensing entity proposing rules recommending an expedited process and procedure for occupational licensure instead of automatic licensure as provided under § 17-1-106(b) to the Administrative Rules and Regulations Subcommittee of the Legislative Council shall complete the review and approval process of the proposed rules required by § 17-1-106 within one (1) year of the effective date of this act [July 24, 2019]”.

Amendments. The 2015 amendment rewrote the section heading; added (a) and redesignated former (a) and (b) as (b) and (c); in (b), substituted “shall allow the following individuals” for “may allow the spouse of an active duty military service member stationed in this state”, substituted “individual” for “applicant”, and added (b)(1) through (3); in (c), substituted “shall expedite” for “may expedite”, substituted “the following individuals” for “spouses of active duty military service members stationed in this state”, and added (c)(1) through (3); inserted (d) through (f), and redesignated former (c) as (g); and, in (g), inserted “necessary” and substituted “this section” for “subsections (a) and (b) of this section”.

The 2017 amendment substituted “shall” for “may” in (g).

The 2019 amendment, in the section heading, substituted “Automatic licensure for” for “Licensure, certification, or permitting of” and “Definitions” for “Definition”; and rewrote the section.

17-1-107. Reinstatement of licenses — Definition.

1. An occupational licensing entity shall by rule adopt reduced requirements for reinstatement of a license, registration, permit, or certification for a person who:
   1. Demonstrates that he or she:
      1. Was previously licensed, registered, permitted, or certified to practice in the field of his or her profession at any time in this state;
      2. Held his or her license, registration, permit, or certification in good standing at the time of licensing, registration, permitting, or certification;
      3. Did not have his or her license, registration, permit, or certification revoked for:
         1. An act of bad faith; or
         2. A violation of law, rule, or ethics;
      4. Is not holding a suspended or probationary license, registration, permit, or certification in any state; and
      5. Is sufficiently competent in his or her field; and
   2. Pays any reinstatement fee required by law.
2. The occupational licensing entity may require that sufficient competency in a particular field be demonstrated by:
   1. Proficiency testing;
   2. Letters of recommendation; or
   3. Both proficiency testing and letters of recommendation.
3. 1. Except as provided under subsection (b) of this section, the occupational licensing entity shall not require a person who meets the requirements of subsection (a) of this section to participate in the apprenticeship, education, or training required as a prerequisite to licensing, registration, permitting, or certification of a new professional in the field.
   2. The occupational licensing entity may require the person to participate in continuing education or training if the continuing education or training is required for all professionals in the field to maintain the license, registration, permit, or certification.
4. A person shall not be required to comply with requirements under this section to obtain reinstatement of his or her license, registration, permit, or certification if the person meets the requirements for reciprocity.
5. If a criminal background check is required of an applicant for an original license, registration, permit, or certification, or of a person currently holding a license, registration, permit, or certification, then the occupational licensing entity may require a person seeking reinstatement under this section to meet the same criminal background check requirements as the applicant for an original license, registration, permit, or certification, or as the person currently holding a license, registration, permit, or certification.
6. 1. As used in this section, “occupational licensing entity” means an agency, office, council, bureau, board, commission, department, committee, or other authority of the government of the State of Arkansas, whether within or subject to review by another agency that has the duty to license, register, permit, certify, or otherwise approve a person to work in a particular field or industry.
   2. As used in subdivision (f)(1) of this section, “agency” does not include the General Assembly, the courts, or the Governor.

History. Acts 2015, No. 1066, § 1; 2019, No. 1011, § 1.

Amendments. The 2019 amendment, throughout the section, inserted “registration, permit, or certification” and inserted “occupational” and “permit”; deleted former (a); redesignated former (b) as (a) and redesignated the remaining subsections accordingly; in the introductory language of (a), substituted “An occupational licensing entity” for “A licensing entity” and inserted “permit”; inserted “permitted” in (a)(1)(A); rewrote (e); in (f)(1), inserted “office, council, bureau” and deleted “except the General Assembly, the courts, and the Governor” following “another legacy”; added (f)(2); and made stylistic changes.

17-1-108. Expedited temporary and provisional licensure — Legislative intent — Definitions.

1. 1. It is the intent of the General Assembly to ensure that an individual may be credentialed to work in Arkansas if he or she generally demonstrates the skills and ethics required by state law based on the individual's experience and credentials in another state.
   2. It is not the intent of the General Assembly to cause the licensing entity to engage in simple comparisons of the required hours of training and other personal qualifications under Arkansas's occupational licensing statutes with those qualifications required in the state where the individual is credentialed.
2. As used in this section:
   1. “Individual” means a natural person, firm, association, partnership, corporation, or other entity that may hold an occupational license;
   2. “Occupational licensing entity” means an office, board, commission, committee, department, council, bureau, or other agency of state government having authority to license, certify, register, permit, or otherwise authorize an individual to engage in a particular occupation or profession; and
   3. “Occupational license” means a license, certificate, registration, permit, or other form of authorization required by law or rule that is required for an individual to engage in a particular occupation or profession.
3. An occupational licensing entity shall by rule adopt the least restrictive requirements for an occupational license for an individual who:
   1. Demonstrates that he or she:
      1. Holds an occupational license that is substantially similar to practice in the field of his or her occupation or profession in another state, territory, or district of the United States;
      2. Holds his or her occupational license in good standing;
      3. Has not had his or her occupational license revoked for:
         1. An act of bad faith; or
         2. A violation of law, rule, or ethics;
      4. Is not holding a suspended or probationary occupational license in any state, territory, or district of the United States; and
      5. Is sufficiently competent in his or her field; and
   2. Pays any occupational license fee required by law or rule.
4. 1. 1. An occupational licensing entity shall comply with the requirements under subsection (c) of this section by adopting the least restrictive rule that allows for reciprocity or licensure by endorsement.
      2. The rule adopted under subdivision (d)(1)(A) of this section shall provide the procedure by which an occupational licensing entity shall grant a temporary and provisional occupational license for ninety (90) days or longer to an individual under subsection (c) of this section if presented with evidence of a current and active occupational license that is substantially similar to practice in the field of his or her occupation or profession in another state, territory, or district of the United States.
   2. If a state, territory, or district of the United States does not require an occupational license for a profession that requires an occupational license in this state, an occupational licensing entity shall adopt a rule that is least restrictive to permit an individual who is sufficiently competent in his or her field to obtain an occupational license for that occupation or profession in this state.
   3. The occupational licensing entity may require additional state-specific education for an individual with an occupational license in another state, territory, or district of the United States that does not offer reciprocity similar to reciprocity under this section to individuals with an occupational license in this state.
5. 1. Except as provided under subdivision (e)(2) of this section, an occupational licensing entity shall not require an individual who meets the requirements of subsection (c) of this section to participate in the apprenticeship, education, or training required as a prerequisite to occupational license of a new professional in the field.
   2. The occupational licensing entity may require the individual to participate in continuing education or training if the continuing education or training is required for all professionals in the field to maintain the occupational license.
6. If a criminal background check is required of an applicant for an initial occupational license or of an individual currently holding an occupational license, then the occupational licensing entity may require an individual seeking his or her occupational license under this section to meet the same criminal background check requirements as the applicant for an initial occupational license or as the individual currently holding an occupational license.
7. The occupational licensing entity may require the individual applying for an occupational license under this section to meet any bonding, financial statement, or insurance requirements that are applicable to all applicants.
8. This section shall not apply to:
   1. Reciprocity or license by endorsement provisions under §§ 17-12-308, 17-26-315, 17-27-308, 17-28-306, 17-31-308, 17-36-304, 17-42-305, 17-43-307, 17-83-305, 17-88-305, 17-89-305, 17-90-302, 17-92-114, 17-92-308, 17-93-414, 17-97-306, 17-99-304, 17-100-304, and 17-103-302; or
   2. The occupational licensing entities that administer the reciprocity provisions under subdivision (h)(1) of this section.
9. An occupational licensing entity may enter into written agreements with similar occupational licensing entities of another state, territory, or district of the United States as necessary to assure that licensees in this state have comparable nonresident licensing opportunities as those opportunities available to nonresidents by occupational licensing entities in this state.

History. Acts 2019, No. 426, § 3; 2019, No. 1011, § 2.

A.C.R.C. Notes. Acts 2019, No. 426, § 1, provided: “Title. This act shall be known and may be cited as the ‘Red Tape Reduction Expedited Temporary and Provisional Licensure Act’”.

Acts 2019, No. 426, § 2, provided: “Legislative findings and intent.

“(a) The General Assembly finds that:

“(1) Arkansas is taking a leading role in the nationwide pursuit of reforms to the system of occupational licensing;

“(2) Arkansas became one (1) of eleven (11) states chosen to participate in the Occupational Licensing Policy Learning Consortium, an initiative funded by a grant from the United States Department of Labor and supported in partnership with the National Conference of State Legislatures, the Council of State Governments, and the National Governors Association;

“(3) Governor Asa Hutchinson appointed seventeen (17) individuals to the Red Tape Reduction Working Group to review and address occupational licensing regulations that create unnecessary barriers to labor market entry; and

“(4) The Red Tape Reduction Working Group issued a final report to the Governor in the fall of 2018 with five (5) recommendations for substantive legislative reform, which are to:

“(A) Establish an expedited procedure for occupational licensing entities to collectively submit administrative rules that are responsive to new legislation;

“(B) Extend Acts 2017, No. 781, to allow repeal of subsections of rules;

“(C) Establish provisions to allow certain agencies to consider occupational relevance with regard to criminal background issues;

“(D) Authorize occupational licensing entities to identify types of individuals or entities that may be issued temporary or provisional licenses; and

“(E) Establish a systematic process for review of:

“(i) New occupational licensure and occupational licensing entities; and

“(ii) Existing occupational licensure and occupational licensing entities. “(b) It is the intent of the General Assembly to authorize occupational licensing entities to identify types of individuals or entities that may be issued temporary or provisional licenses”.

Amendments. The 2019 amendment inserted “Legislative intent” in the section heading; and rewrote the section.

17-2-101. Title.

This chapter shall be known and may be cited as the “Keep Arkansans Working Act of 2019”.

History. Acts 2019, No. 250, § 1.

17-2-102. Purpose.

It is the purpose of this chapter to ensure that hard-working Arkansans maintain occupational licenses while trying to maintain debt-free lives and trying not to be impoverished.

History. Acts 2019, No. 250, § 1.

17-2-103. Definitions.

As used in this chapter:

1. “Default” means the failure to:
   1. Repay a student loan according to the terms agreed upon in a promissory note; or
   2. Satisfy the requirements and conditions of a work-conditional scholarship for repayment;
2. “Delinquent” means the failure to:
   1. Make a student loan payment when the payment is due; or
   2. Satisfy the requirements and conditions of a work-conditional scholarship for repayment;
3. “License” means a license, certificate, registration, permit, or other form of authorization required by law or rule that is required for an individual to engage in a particular occupation or profession;
4. “Scholarship” means an award of financial aid to a student for education at a public or private institution of higher education;
5. “State authority” means an office, board, commission, department, council, bureau, or other agency of state government having authority to license, certify, register, permit, or otherwise authorize an individual to engage in a particular occupation or profession; and
6. “Student loan” means a loan guaranteed by the United States Government or state government for purposes of education at a public or private institution of higher education.

History. Acts 2019, No. 250, § 1.

17-2-104. Student loans.

Except as provided for rural medical practice student loans and scholarships under § 6-81-701 et seq., a state authority shall not suspend or revoke a license that has been issued to an individual solely on the basis of that individual's being:

1. In default on the repayment obligations required by one (1) or more student loans; or
2. Delinquent in the payment of one (1) or more student loans.

History. Acts 2019, No. 250, § 1.

17-2-105. Scholarships.

Except as provided for rural medical practice student loans and scholarships under § 6-81-701 et seq., a state authority shall not suspend or revoke a license that has been issued to an individual solely on the basis of that individual's being:

1. In default on the satisfaction of the requirements and conditions of a scholarship; or
2. Delinquent in the satisfaction of the requirements and conditions of a scholarship.

History. Acts 2019, No. 250, § 1.

17-3-101. Definitions.

As used in this chapter:

1. “Criminal record” means any type of felony or misdemeanor conviction;
2. “License” means a license, certificate, registration, permit, or other form of authorization required by law or rule that is required for an individual to engage in a particular occupation or profession; and
3. “Licensing entity” means an office, board, commission, department, council, bureau, or other agency of state government having authority to license, certify, register, permit, or otherwise authorize an individual to engage in a particular occupation or profession.

History. Acts 2019, No. 990, § 2.

17-3-102. Licensing restrictions based on criminal records.

1. An individual is not eligible to receive or hold a license issued by a licensing entity if that individual has pleaded guilty or nolo contendere to or been found guilty of any of the following offenses by any court in the State of Arkansas or of any similar offense by a court in another state or of any similar offense by a federal court, unless the conviction was lawfully sealed under the Comprehensive Criminal Record Sealing Act of 2013, § 16-90-1401 et seq., or otherwise previously sealed, pardoned or expunged under prior law:
   1. Capital murder as prohibited in § 5-10-101;
   2. Murder in the first degree and second degree as prohibited in §§ 5-10-102 and 5-10-103;
   3. Manslaughter as prohibited in § 5-10-104;
   4. Negligent homicide as prohibited in § 5-10-105;
   5. Kidnapping as prohibited in § 5-11-102;
   6. False imprisonment in the first degree as prohibited in § 5-11-103;
   7. Permanent detention or restraint as prohibited in § 5-11-106;
   8. Robbery as prohibited in § 5-12-102;
   9. Aggravated robbery as prohibited in § 5-12-103;
   10. Battery in the first degree as prohibited in § 5-13-201;
   11. Aggravated assault as prohibited in § 5-13-204;
   12. Introduction of a controlled substance into the body of another person as prohibited in § 5-13-210;
   13. Aggravated assault upon a law enforcement officer or an employee of a correctional facility as prohibited in § 5-13-211, if a Class Y felony;
   14. Terroristic threatening in the first degree as prohibited in § 5-13-301;
   15. Rape as prohibited in § 5-14-103;
   16. Sexual indecency with a child as prohibited in § 5-14-110;
   17. Sexual extortion as prohibited in § 5-14-113;
   18. Sexual assault in the first degree, second degree, third degree, and fourth degree as prohibited in §§ 5-14-124 — 5-14-127;
   19. Incest as prohibited in § 5-26-202;
   20. Offenses against the family as prohibited in §§ 5-26-303 — 5-26-306;
   21. Endangering the welfare of an incompetent person in the first degree as prohibited in § 5-27-201;
   22. Endangering the welfare of a minor in the first degree as prohibited in § 5-27-205;
   23. Permitting the abuse of a minor as prohibited in § 5-27-221;
   24. Engaging children in sexually explicit conduct for use in visual or print media, transportation of minors for prohibited sexual conduct, pandering or possessing visual or print media depicting sexually explicit conduct involving a child, or use of a child or consent to use of a child in a sexual performance by producing, directing, or promoting a sexual performance by a child, as prohibited in §§ 5-27-303 — 5-27-305, 5-27-402, and 5-27-403;
   25. Computer child pornography as prohibited in § 5-27-603;
   26. Computer exploitation of a child in the first degree as prohibited in § 5-27-605;
   27. Felony adult abuse as prohibited in § 5-28-103;
   28. Theft of property as prohibited in § 5-36-103;
   29. Theft by receiving as prohibited in § 5-36-106;
   30. Arson as prohibited in § 5-38-301;
   31. Burglary as prohibited in § 5-39-201;
   32. Felony violation of the Uniform Controlled Substances Act, § 5-64-101 et seq., as prohibited in the former § 5-64-401, and §§ 5-64-419 — 5-64-442;
   33. Promotion of prostitution in the first degree as prohibited in § 5-70-104;
   34. Stalking as prohibited in § 5-71-229;
   35. Criminal attempt, criminal complicity, criminal solicitation, or criminal conspiracy, as prohibited in §§ 5-3-201, 5-3-202, 5-3-301, and 5-3-401, to commit any of the offenses listed in this subsection; and
   36. All other crimes referenced in this title.
2. 1. If an individual has been convicted of a crime listed in subsection (a) of this section, a licensing entity may waive disqualification or revocation of a license based on the conviction if a request for a waiver is made by:
      1. An affected applicant for a license; or
      2. The individual holding a license subject to revocation.
   2. A basis upon which a waiver may be granted includes without limitation:
      1. The age at which the offense was committed;
      2. The circumstances surrounding the offense;
      3. The length of time since the offense was committed;
      4. Subsequent work history since the offense was committed;
      5. Employment references since the offense was committed;
      6. Character references since the offense was committed;
      7. Relevance of the offense to the occupational license; and
      8. Other evidence demonstrating that licensure of the applicant does not pose a threat to the health or safety of the public.
3. If an individual has a valid criminal conviction for an offense that could disqualify the individual from receiving a license, the disqualification shall not be considered for more than five (5) years from the date of conviction or incarceration or on which probation ends, whichever date is the latest, if the individual:
   1. Was not convicted for committing a violent or sexual offense; and
   2. Has not been convicted of any other offense during the five-year disqualification period.
4. A licensing entity shall not, as a basis upon which a license may be granted or denied:
   1. Use vague or generic terms, including without limitation the phrases “moral turpitude” and “good character”; or
   2. Consider arrests without a subsequent conviction.
5. Due to the serious nature of the offenses, the following shall result in permanent disqualification for licensure:
   1. Capital murder as prohibited in § 5-10-101;
   2. Murder in the first degree as prohibited in § 5-10-102 and murder in the second degree as prohibited in § 5-10-103;
   3. Kidnapping as prohibited in § 5-11-102;
   4. Aggravated assault upon a law enforcement officer or an employee of a correctional facility as prohibited in § 5-13-211, if a Class Y felony;
   5. Rape as prohibited in § 5-14-103;
   6. Sexual extortion as prohibited in § 5-14-113;
   7. Sexual assault in the first degree as prohibited in § 5-14-124 and sexual assault in the second degree as prohibited in § 5-14-125;
   8. Incest as prohibited in § 5-26-202;
   9. Endangering the welfare of an incompetent person in the first degree as prohibited in § 5-27-201;
   10. Endangering the welfare of a minor in the first degree as prohibited in § 5-27-205;
   11. Adult abuse that constitutes a felony as prohibited in § 5-28-103; and
   12. Arson as prohibited in § 5-38-301.
6. This chapter does not preclude a licensing entity from taking emergency action against a licensee as authorized under § 25-15-211 for the sake of public health, safety, or welfare.
7. The permanent disqualification for an offense listed in subsection (e) of this section does not apply to an individual who holds a valid license on July 24, 2019.
8. This section does not apply to licensure or certification:
   1. Of professions not governed by this title;
   2. Of polygraph examiners and voice stress analysis examiners under § 17-39-101 et seq.; or
   3. Of private investigators and private security agencies under the Private Security Agency, Private Investigator, and School Security Licensing and Credentialing Act, § 17-40-101 et seq.

History. Acts 2019, No. 990, § 2.

17-3-103. Prelicensure criminal background checks.

1. 1. An individual with a criminal record may petition a licensing entity at any time for a determination of whether the criminal record of the individual will disqualify the individual from licensure and whether or not he or she could obtain a waiver under § 17-3-102(b).
   2. The petition shall include details on the criminal record of the individual.
2. 1. A licensing entity may require that the applicant undergo a state and federal criminal background check as required by the licensing entity for all applicants for a license.
   2. The petitioner under subsection (a) of this section shall be responsible for payment for the state and federal criminal background check.

History. Acts 2019, No. 990, § 2.

17-3-104. Rules.

1. A licensing entity shall adopt or amend rules necessary for the implementation of this chapter.
2. 1. When adopting or amending rules to implement this chapter, the final rule shall be filed with the Secretary of State for adoption under § 25-15-204(f):
      1. On or before January 1, 2020; or
      2. If approval under § 10-3-309 has not occurred by January 1, 2020, as soon as practicable after approval under § 10-3-309.
   2. A licensing entity shall file the proposed rule with the Legislative Council under § 10-3-309(c) sufficiently in advance of January 1, 2020, so that the Legislative Council may consider the rule for approval before January 1, 2020.

History. Acts 2019, No. 990, § 2.

17-10-101. Responsibilities of real estate licensees and appraisers — Definitions.

1. As used in this section:
   1. “Agent” means any licensee as defined under § 17-42-103 or any appraiser;
   2. “Appraiser” means any appraiser, state-certified appraiser, state-certified residential appraiser, state-licensed appraiser, or state-registered appraiser, as those terms are defined under § 17-14-103;
   3. “Licensee” shall have the same meaning as provided by § 17-42-103;
   4. “Offender” shall have the same meaning as provided by § 12-12-903;
   5. “Psychologically impacted” means without limitation that the real property was or was at any time suspected to have been the site of a homicide, suicide, or felony; and
   6. “Transferee” means and includes without limitation a buyer, purchaser, grantee, lessee, tenant, or one receiving any estate or interest in real property.
2. The existence of any fact or circumstance or suspicion of the existence of any fact or circumstance that indicates a property might be or is psychologically impacted is not a material fact that must be disclosed in a real property transaction.
3. No cause of action shall arise against an appraiser of real property, a licensee as agent of an owner, or a licensee as agent of a potential or actual transferee of real property for failure to inquire about, make a disclosure about, or release information about the existence of any fact or circumstance or suspicion of the existence of any fact or circumstance that indicates that the real property is psychologically impacted.
4. No cause of action shall arise against an appraiser of real property, a licensee as agent of an owner, or a licensee acting as agent of a potential or actual transferee of real property for failure to inquire about, make a disclosure about, or release information about the existence of the fact that real property is located in the vicinity of an offender.

History. Acts 2003, No. 1739, § 1.

Subchapter 1 — General Provisions

Effective Dates. Acts 1969, No. 109, § 15: July 1, 1969.

Acts 1980 (1st Ex. Sess.), No. 23, § 3: Jan. 25, 1980. Emergency clause provided: “It is hereby found and determined by the General Assembly that the Abstracters' Licensing Law of 1969 does not adequately define the term ‘abstract plant’ to provide that in counties having two courthouses an abstract plant is required only to have the records pertaining to real property located within one district of the county, and that this act is immediately necessary to provide such definition. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

17-11-101. Title.

This chapter shall be known and may be cited as the “Abstracters' Licensing Law of 1969”.

History. Acts 1969, No. 109, § 1; A.S.A. 1947, § 71-101.

17-11-102. Definitions.

As used in this chapter, unless the context otherwise requires:

1. “Abstract of title” means a compilation in orderly arrangement of the materials and facts of record affecting the title to a specific piece of land, issued under a certificate certifying to the matters therein contained;
2. 1. “Abstract plant” means a set of records in which an entry has been made of all documents or matters which under the law impart constructive notice of matters affecting title to all real property or any interest therein or encumbrances thereon, which have been filed or recorded in the county or district thereof for which a title plant is maintained from earliest records available in the county or district thereof and continually thereafter.
   2. Such records shall consist of an index or indices in which notations of or references to any documents that describe the property affected thereby are posted, entered, or otherwise included, according to the property described therein or copies or briefs of all documents that describe the property affected thereby which are sorted and filed according to the property described therein;
3. “Business of abstracting” means the making, compiling, or selling of abstracts of title or title evidence purporting to be based upon information from an abstract plant;
4. “Certificate of authority” means the authorization to engage in the business of abstracting in a county or district thereof in the State of Arkansas granted to a person, firm, or private corporation in possession of an abstract plant; and
5. “Registered abstracter” means an individual registered under this act and holding an operative certificate of registration to prepare abstracts of title to real property in any county in this state or any person holding a license to practice law within the State of Arkansas.

History. Acts 1969, No. 109, § 2; 1980 (1st Ex. Sess.), No. 23, § 1; A.S.A. 1947, § 71-102.

Meaning of “this act”. Acts 1969, No. 109, codified as §§ 17-11-101 — 17-11-103, 17-11-201 — 17-11-204 [repealed], 17-11-301 — 17-11-306, 17-11-340 — 17-11-343.

17-11-103. Penalties.

1. Any person, firm, partnership, association, or corporation violating any of the provisions of this chapter shall be guilty of a misdemeanor and upon conviction shall be punished by a fine of not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100) for each offense. Each succeeding day on which the provisions of this chapter are violated shall be a separate offense.
2. If any licensed abstracter shall willfully falsify any public record or information contained therein, he or she shall be guilty of a felony and punished accordingly in addition to his or her civil liability.

History. Acts 1969, No. 109, §§ 11, 12; A.S.A. 1947, §§ 71-111, 71-112.

Subchapter 2 — Abstracters' Board of Examiners

17-11-201 — 17-11-204. [Repealed.]

Publisher's Notes. These sections, concerning the Abstracters’ Board of Examiners, were repealed by Acts 2007, No. 1042, § 2. The sections were derived from the following sources:

17-11-201. Acts 1969, No. 109, §§ 3, 4; A.S.A. 1947, §§ 71-103, 71-104; Acts 1997, No. 250, § 121.

17-11-202. Acts 1969, No. 109, § 4; A.S.A. 1947, § 71-104.

17-11-203. Acts 1969, No. 109, § 4; A.S.A. 1947, § 71-104.

17-11-204. Acts 1969, No. 109, § 10; A.S.A. 1947, § 71-110; Acts 1997, No. 13, § 1.

Subchapter 3 — Certification

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Effective Dates. Acts 1969, No. 109, § 15: July 1, 1969.

17-11-301. Certificate of registration required.

1. 1. Every person, firm, or private corporation engaged in the business of abstracting in one (1) county only, shall be or have in its employ a registered abstracter.
   2. Every person, firm, or private corporation engaged in the business of abstracting in more than one (1) county in this state shall have at least one (1) registered abstracter for each county in which it maintains an abstract office.
2. No person shall execute an abstract certificate or otherwise attest to the accuracy of abstracts unless the person is a registered abstracter as defined in this chapter.
3. 1. Each person engaged in the business of abstracting who is a registered abstracter may fulfill the requirements of subsection (a) of this section in one (1) county only.
   2. No registered abstracter may fulfill the requirements of subsection (a) of this section for more than one (1) county or more than one (1) company at any one (1) time.

History. Acts 1969, No. 109, § 5; A.S.A. 1947, § 71-105.

17-11-302. Certificate of registration — Application.

1. Any person desiring to become a registered abstracter under this chapter shall make application to the Arkansas Abstracters' Board for registration.
2. The application shall be in a form prepared by the board and shall contain such information as may be necessary to assist the board in registration.
3. Except as provided in subsection (e) of this section, each application shall be accompanied by an examination fee in the sum of twenty-five dollars ($25.00).
4. Thereupon the board shall notify the applicant of the time and place of the next scheduled examination, and notice of the examination shall be given to the applicant by mail.
5. Any person authorized to practice law in this state shall be issued a certificate of registration upon application, without examination and payment of fee.

History. Acts 1969, No. 109, § 5; A.S.A. 1947, § 71-105; Acts 2007, No. 1042, § 4; 2019, No. 990, § 3.

Amendments. The 2007 amendment substituted “Arkansas Abstractors' Board” for “Abstracters' Board of Examiners” in (a).

The 2019 amendment deleted “and to determine if the applicant is of good moral character” following “registration” in (b).

17-11-303. Certificate of registration — Examination.

The examination required under this chapter shall be in the form of written interrogatories as may be prescribed by the Arkansas Abstracters' Board to determine the proficiency of the applicant.

History. Acts 1969, No. 109, § 5; A.S.A. 1947, § 71-105; Acts 2007, No. 1042, § 5.

Amendments. The 2007 amendment inserted “required under this chapter,” substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners,” and made a stylistic change.

17-11-304. Certificate of registration — Issuance or reapplication.

1. If the applicant satisfactorily passes the examinations, the applicant shall be certified as a registered abstracter, and the certificate provided for shall be issued to him or her. The privileges granted by the certificate shall continue unless revoked, as provided in this chapter, or unless the certificate is otherwise surrendered to the Arkansas Abstracters' Board.
2. The certificate shall be in a form prescribed by the board and shall attest that the person possesses the knowledge, skill, ability, and understanding of abstracting and is designated a registered abstracter. The certificate shall be prominently displayed in the abstract office wherein the person is employed.
3. An applicant failing to satisfy the board that he or she possesses the qualifications or proficiency to become a registered abstracter may reapply for registration if the application is accompanied by the examination fee provided for in § 17-11-302(c), but no application shall be submitted sooner than six (6) months following the date on which the last previous examination was administered to the applicant.
4. Each holder of a certificate shall pay an annual fee to be set by the board.

History. Acts 1969, No. 109, § 5; A.S.A. 1947, § 71-105; Acts 2007, No. 1042, § 6; 2019, No. 990, § 4.

Amendments. The 2007 amendment, in (a), substituted “provided in this chapter” for “hereinafter provided,” substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners,” and made stylistic changes.

The 2019 amendment deleted “and is of good moral character” following “examinations” in the first sentence of (a).

17-11-305. Certificate of registration — Temporary.

1. The Arkansas Abstracters' Board upon application to it by any person succeeding to the ownership of any abstract plant or business by any means other than by purchase, or any person who by reason of the incapacity of any registered abstracter owner of any abstract plant or business is required to assume the operation of the abstract plant or business, may grant to the person without examination a temporary certificate of registration.
2. The fee for a temporary certificate of registration shall be fifteen dollars ($15.00).
3. This certificate shall expire six (6) months after its date or upon the expiration of sixty (60) days after the next regularly scheduled examinations which could be taken by the applicant under the rules of the board, whichever period is longer.
4. The board shall notify the applicant by mail of the time and place of the examination.

History. Acts 1969, No. 109, § 5; A.S.A. 1947, § 71-105; Acts 2007, No. 1042, § 7; 2019, No. 315, § 1325.

Amendments. The 2007 amendment substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners” in (a).

The 2019 amendment deleted “and regulations” following “rules” in (c).

17-11-306. Unregistered assistants.

Nothing in this chapter shall be construed as prohibiting any person, firm, or corporation holding a valid and subsisting certificate of authority from employing such clerical and stenographic assistants as may be necessary in the conduct of its business who are not registered under this chapter.

History. Acts 1969, No. 109, § 9; A.S.A. 1947, § 71-109.

17-11-307 — 17-11-319. [Reserved.]

No person, firm, or corporation shall engage in the business of abstracting in this state until a certificate of authority has been issued to the person, firm, or corporation by the Arkansas Abstracters' Board.

History. Acts 1969, No. 109, § 7; A.S.A. 1947, § 71-107; Acts 2007, No. 1042, § 8.

Amendments. The 2007 amendment substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners.”

17-11-321. Certificate of authority — Application — Issuance.

1. Any person, firm, or corporation desiring to engage in the business of abstracting in this state shall make application to the Arkansas Abstracters' Board for a certificate of authority.
2. The application shall:
   1. Be in a form prepared by the board;
   2. Contain such information as may be necessary to assist the board in determining whether the applicant has complied with the provisions of this chapter; and
   3. Be accompanied by an application fee in the sum of twenty-five dollars ($25.00).
3. The applicant shall furnish proof that:
   1. The applicant has available an abstract plant for each county for which abstracts will be prepared, which abstract plant shall be made available for examination by the board;
   2. The applicant is or has employed a registered abstracter; and
   3. The bond requirements provided for in § 17-11-324 have been complied with.
4. 1. When the foregoing things have been done or conditions exist and approved by the board, the board shall issue a certificate of authority in such form as it may prescribe, attesting to the same and indicating the county of this state wherein the applicant may operate.
   2. The certificate shall be prominently displayed in the office of the applicant.

History. Acts 1969, No. 109, § 7; A.S.A. 1947, § 71-107; Acts 2007, No. 1042, § 9.

Amendments. The 2007 amendment substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners” in (a).

17-11-322. Certificate of authority — Expiration — Renewal.

1. 1. All certificates of authority issued pursuant to the provisions of this chapter shall expire on the same date, irrespective of when issued.
   2. Expiration dates of the certificates, either renewal or original, shall be the July 1 following the year from the preceding expiration date.
2. Current and subsisting certificates of authority shall be renewed as provided for in this section for a one-year period upon payment of a renewal fee in the sum to be set by the Arkansas Abstracters' Board.
3. 1. 1. No more than sixty (60) days nor less than thirty (30) days before the expiration date of the certificate issued, the board shall cause a notice of expiration and application for renewal to be mailed to each of the holders of the certificates.
      2. The notice and application shall be in a form prepared by the board.
   2. Upon determination by the board of the applicant's compliance with this chapter, a renewal certificate of authority shall be issued to the applicant.
4. 1. 1. If a holder of a certificate of authority fails to apply for renewal of his or her authority and to pay the fee provided therefor, the board shall cause to be mailed to the holder a notice that his or her certificate has expired and is no longer valid authority for the person to engage in the business of abstracting.
      2. The notice shall be mailed not more than thirty (30) days following the certificate expiration date.
      3. The holder shall be granted an additional period of sixty (60) days from the date of mailing the notice within which to file his or her application for renewal.
   2. 1. The name of any holder failing to renew his or her authority pursuant to the terms of this section shall be stricken from the records of the board.
      2. Such a person, firm, or corporation shall no longer engage in the business of abstracting in this state until so authorized by the board.

History. Acts 1969, No. 109, § 7; A.S.A. 1947, § 71-107; Acts 2007, No. 1042, § 10.

Amendments. The 2007 amendment substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners” in (b).

17-11-323. Access to public records.

1. 1. Holders of certificates of authority and their employees in the conduct of the business of abstracting shall have access to the public records in any office of any city or county or of the state.
   2. They shall be permitted to make memoranda or notations therefrom or copies thereof and to occupy reasonable space with equipment for that purpose, subject to the reasonable regulation of the custodian of the public records and during the business hours of the office, in order to enable certificate holders to make and prepare abstracts and to compile, post, copy, and maintain their books, records, and indices.
2. No persons other than the custodian of the records shall remove real estate records from the recorder's office.

History. Acts 1969, No. 109, § 7; A.S.A. 1947, § 71-107; Acts 1991, No. 1002, § 1.

17-11-324. Bond, insurance, or personal surety.

1. 1. 1. Before the certificate of authority is issued, the applicant shall file with the Arkansas Abstracters' Board a bond approved by the board conditioned upon the payment by the applicant of any and all damages that may be sustained by or may accrue to any person, firm, or corporation for whom the applicant may compile, make, or furnish abstracts of title by reason of or on account of any error, deficiency, or mistake in any abstract or certificate, or any continuation, made or issued by the abstracter over its authorized signature and seal.
      2. The bond shall be written by a corporate surety or other company issuing such bonds licensed and authorized to do business in this state.
   2. 1. The bond shall remain in full force and effect for a period of one (1) year and may be renewed annually by a continuation certificate.
      2. However, no continuation certificate shall operate to increase the penal sum of the bond beyond the limits established in this section.
   3. 1. The penal sum of the bond shall be dependent upon the aggregate population, according to the latest federal census, of all counties in which the applicant proposes to conduct the business of abstracting, as follows:
      2. No person, firm, or corporation shall be required at any time to have in force and effect and filed with the board valid bonds in excess of the penal sum of twenty-five thousand dollars ($25,000).
2. 1. In lieu of the bond or bonds provided for in subsection (a) of this section, the applicant may file proof with the board that he or she carries abstracters' liability insurance in such a sum as would be required using the population scale in subdivision (a)(3)(A) of this section.
   2. The proof shall be the filing of the actual policy or a certificate showing the issuance thereof by the insurance company.
3. 1. In lieu of bond or bonds or liability insurance provided for in subsections (a) and (b) of this section, the applicant shall have the right to file with the board a personal surety bond in such a sum as would be required using the population scale in subdivision (a)(3)(A) of this section, made in favor of any person or client that may suffer a loss for which he or she is liable, which shall be accepted in lieu of the insurance policy.
   2. The personal bond shall have the signatures of at least three (3) other persons thereon whose total net worth shall be at least three (3) times the total amount of the personal bond.
   3. The applicant shall pay for the actual cost of the credit reports on the bondsmen.

If the population is: The penalty of the bond shall be: Less than 25,000 $ 5,000 More than 25,000 but less than 50,000 10,000 50,000 but less than 100,000 15,000 100,000 but less than 200,000 20,000 Over 200,000 25,000

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History. Acts 1969, No. 109, § 6; A.S.A. 1947, § 71-106; Acts 2007, No. 1042, § 11.

Amendments. The 2007 amendment substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners” in (a)(1)(A), and made stylistic changes.

17-11-325 — 17-11-339. [Reserved.]

1. The Arkansas Abstracters' Board is authorized, after a hearing as provided in § 17-11-341, to cancel and revoke any certificate of registration issued to any person under the provisions of this chapter:
   1. For a violation of any of the provisions of this chapter;
   2. Upon a conviction of the holder of such a certificate of a crime under § 17-3-102; or
   3. If the board finds the holder to be guilty of habitual carelessness or of fraudulent practices in the conduct of the business of abstracting.
2. The board is authorized, after a hearing as provided in § 17-11-341, to cancel and revoke any certificate of authority issued to any person, firm, or corporation under the provisions of this chapter for:
   1. Failure to furnish the bond or bonds, or other securities, required by § 17-11-324;
   2. Failure to properly maintain an abstract plant;
   3. Failure to have employed a registered abstracter as provided in § 17-11-301; or
   4. Otherwise violating any of the provisions of this chapter.

History. Acts 1969, No. 109, § 8; A.S.A. 1947, § 71-108; Acts 2007, No. 1042, § 12; 2019, No. 990, § 5.

Amendments. The 2007 amendment substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners” in (a).

The 2019 amendment substituted “crime under § 17-3-102” for “crime involving moral turpitude” in (a)(2).

17-11-341. Revocation of certificates — Procedure — Appeal.

1. 1. Upon a verified complaint's being filed with the Arkansas Abstracters' Board or upon the board's own motion filing a complaint charging the holder of a certificate of registration with a violation of any of the provisions of this chapter, or conviction of a crime under § 17-3-102, or habitual carelessness or fraudulent practices in the conduct of the business of abstracting, or charging the holder of a certificate of authority with failure to furnish the bond or bonds, or other securities, required by § 17-11-324, or with failing to have employed a registered abstracter as provided in § 17-11-301, or with a violation of any of the provisions of this chapter, the board shall immediately notify in writing by registered mail, with return receipt, the holder of the certificate of the filing of the complaint and furnish the holder with a copy of the complaint.
   2. The board shall at the same time require the holder of the certificate to appear before it on a day fixed by the board, not less than twenty (20) days nor more than forty (40) days from the date of the service of the complaint on the holder of the certificate, and to show cause why the certificate should not be cancelled and revoked.
   3. Under the hand of its chair and the seal of the board, the board may subpoena witnesses and compel their attendance and may require the production of books, papers, and other documents.
   4. The chair or secretary-treasurer may administer oaths or affirmations to witnesses appearing before the board.
   5. 1. If any person refuses to obey any subpoena so issued or refuses to testify or to produce any books, papers, or other documents, the board may present its petition to any court of record, setting forth the facts.
      2. Thereupon the court shall, in a proper case, issue its subpoena to the person requiring his or her attendance before the court and there to testify or produce such books, papers, and documents as may be deemed necessary and pertinent.
   6. The holder of the certificate shall be entitled to counsel at any hearing before the board or any other hearing involving revocation of his or her certificate.
   7. The board shall cause a transcript of any testimony taken to be made by a reporter or stenographer.
2. 1. 1. Either the respondent or the complainant may appeal from the decision of the board to the circuit court in the county in which the respondent has his or her or its place of business.
      2. The appeal shall be taken within thirty (30) days after the decision of the board by causing a written notice of appeal to be served on the secretary-treasurer of the board and executing a bond to the State of Arkansas, with surety to be approved by the secretary-treasurer of the board, conditioned to pay all costs that may be adjudged against the appellant.
   2. Upon an appeal's being taken, the secretary-treasurer of the board shall immediately make out a return of the proceedings in the matter before the board with its decision thereon and file them together with the bond and all the papers pertaining thereto in his or her possession, including a certified record of testimony taken at the hearing, with the clerk of the court to which the appeal is taken.
   3. The court shall hear the appeal as a trial de novo, and the costs of the appeal, including the furnishing of the testimony, shall be taxed as the court may direct.
   4. An appeal shall stay the cancellation of any certificate of registration or certificate of authority until the final decision is had on appeal.

History. Acts 1969, No. 109, § 8; A.S.A. 1947, § 71-108; Acts 2007, No. 1042, § 13; 2019, No. 990, § 6.

Amendments. The 2007 amendment substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners” in (a)(1).

The 2019 amendment substituted “under § 17-3-102, or habitual” for “involving moral turpitude, or with habitual” in (a)(1).

17-11-342. Seal.

Any licensee under this chapter shall provide a seal, which shall have stamped on the license the name of the licensee, and shall deposit with the Arkansas Abstracters' Board an impression of the seal and the names of all persons authorized to sign certificates to abstracts on behalf of the licensee.

History. Acts 1969, No. 109, § 11; A.S.A. 1947, § 71-111; Acts 2007, No. 1042, § 14.

Amendments. The 2007 amendment substituted “Arkansas Abstracters' Board” for “Abstracters' Board of Examiners,” and made stylistic changes.

17-11-343. Abstract as evidence.

An abstract or photostat or verbatim copy of any public record, where certified by and impressed with the official seal of any licensed abstracter, shall be admissible in evidence, if otherwise admissible, on behalf of any party litigant in any court in the State of Arkansas and shall be prima facie evidence of the facts recited therein.

History. Acts 1969, No. 109, § 11; A.S.A. 1947, § 71-111.

Subchapter 4 — Arkansas Abstracters' Board

17-11-401. Creation — Members.

1. The Arkansas Abstracters' Board is created.
2. 1. The board shall consist of five (5) members appointed by the Governor, subject to confirmation by the Senate, for a term of six (6) years.
   2. Two (2) members shall:
      1. Be actively involved in the making of abstracts of real estate titles in this state for a period of at least five (5) years before appointment; and
      2. Serve an initial term of six (6) years.
   3. Two (2) members shall:
      1. Be citizens of this state; and
      2. Serve an initial term of four (4) years.
   4. One (1) member shall:
      1. Be knowledgeable of the abstract business; and
      2. Serve an initial term of two (2) years.
3. A vacancy on the board caused by death, resignation, or otherwise shall be filled by appointment of the Governor, subject to confirmation by the Senate.
4. 1. A member may be appointed to successive terms.
   2. No two (2) members shall be appointed from the same county.
5. 1. Each member shall serve without compensation.
   2. However, a member may be entitled to receive travel and expense reimbursement in accordance with § 25-16-901 et seq.

History. Acts 2007, No. 1042, § 3.

A.C.R.C. Notes. Acts 2007, No. 1042, § 1, provided: “The Abstracters' Board of Examiners established by Arkansas Code § 17-11-201 et seq. is abolished and its powers and duties are transferred to the Arkansas Abstracters' Board by a type 2 transfer under § 25-2-105. (b) For the purpose of this section, the Arkansas Abstracters' Board shall be considered a principal department established by Acts 1971, No. 38.”

17-11-402. Organization and proceedings.

1. The Arkansas Abstracters' Board shall elect a chair and a secretary-treasurer.
2. The chair and secretary-treasurer of the board shall have the power to administer oaths.
3. The board shall have a seal and shall have the power to compel the attendance of witnesses.

History. Acts 2007, No. 1042, § 3.

17-11-403. Duties and powers.

1. 1. The Arkansas Abstracters' Board shall keep a register and shall record the following information in the register:
      1. The name and the place of business of each applicant for registration and certification;
      2. A notation of the action taken by the board on each application for registration and each application for certification;
      3. The date upon which each certificate of registration and each certificate of authority are issued; and
      4. Such other information as the board deems appropriate.
   2. The board shall maintain such other records, registers, and files as may be necessary for the proper administration of its duties under this subchapter.
2. The board may adopt rules for the proper administration of its powers and duties and the carrying out of the purposes of this subchapter.

History. Acts 2007, No. 1042, § 3.

Subchapter 1 — General Provisions

Effective Dates. Acts 1975, No. 160, § 25: July 1, 1975.

Acts 1977, No. 183, § 4: Feb. 17, 1977. Emergency clause provided: “It is hereby found and determined by the General Assembly that Acts 1975, No. 160 allowed only a period of six months for certain qualified public accountants to register with the Board of Public Accountancy; that some persons who were eligible to register were not advised of this cutoff date and consequently did not register; that this act is designed to extend the period for such persons to register and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 432, § 10: Mar. 20, 1979. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to properly define, describe and classify all revenues and other income which are required to be deposited in the State Treasury, it is necessary that the provisions of this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1999, No. 180, § 41: Jan. 1, 2000.

17-12-101. Title.

This chapter may be cited as the “Public Accountancy Act of 1975”.

History. Acts 1975, No. 160, § 1; A.S.A. 1947, § 71-611.

17-12-102. Purpose.

It is the policy of this state, and the purpose of this chapter, to promote the dependability of information which is used for guidance in financial transactions or for accounting for or assessing the status or performance of commercial and noncommercial enterprises, whether public or private. The public interest requires:

1. That persons attesting as experts in accountancy to the reliability or fairness of presentation of such information be qualified in fact to do so;
2. That a public authority competent to prescribe and assess the qualifications of public accountants be established; and
3. That the attestation of financial information by persons professing expertise in accountancy be reserved to persons who demonstrate their ability and fitness to observe and apply the standards of the accounting profession.

History. Acts 1975, No. 160, § 1; A.S.A. 1947, § 71-611.

17-12-103. Definitions.

1. As used in this chapter:
   1. “AICPA” means the American Institute of Certified Public Accountants, or its successor;
   2. “Attest” means providing the following services:
      1. An audit or other engagement to be performed in accordance with the AICPA Statements on Auditing Standards;
      2. A review of a financial statement to be performed in accordance with the AICPA Statements on Standards for Accounting and Review Services;
      3. An examination of prospective financial information to be performed in accordance with the AICPA Statements on Standards for Attestation Engagements;
      4. An engagement to be performed in accordance with PCAOB standards; and
      5. An examination, review, or agreed-upon procedures engagement to be performed in accordance with the AICPA Statements on Auditing Standards for Attestation Engagements other than an examination described in subdivision (a)(2)(C) of this section;
   3. “Beneficial owner” means an individual who is the grantor and sole trustee of a revocable trust in which the individual reserves the unrestricted right to revoke the trust;
   4. “Certificate” means a certificate as “certified public accountant” issued under § 17-12-301 or a corresponding certificate as “certified public accountant” issued after examination under the laws of any other state;
   5. “Compilation” means providing a service of any compilation engagement to be performed in accordance with the AICPA Statements on Standards for Accounting and Review Services;
   6. “Conviction” means all instances in a criminal case in which a defendant has been found guilty or pleads guilty or nolo contendere regardless of whether:
      1. Sentencing or imposition of sentencing has been deferred or suspended; or
      2. The adjudication of guilt or the sentence is withheld by the court;
   7. “Firm” means a partnership, corporation, limited liability company, sole proprietorship, or other entity required to be registered with the Arkansas State Board of Public Accountancy under § 17-12-401 et seq.;
   8. “Home office” means the location specified by the client as the address to which a service under § 17-12-311 is directed;
   9. “License” means a certificate issued under § 17-12-301 or a registration under § 17-12-312 or § 17-12-401 et seq. or, in each case, a certificate or permit issued or a registration under corresponding provisions of prior law;
   10. “Licensee” means the holder of a license as defined in this section;
   11. “Member” means either:
       1. The person in whose name membership interests are registered in the records of a limited liability company; or
       2. The beneficial owner of membership interests of a revocable living trust when the membership interests are registered in the records of the limited liability company in the name of the revocable living trust;
   12. “NASBA” means the National Association of State Boards of Accountancy, or its successor;
   13. “PCAOB” means the Public Company Accounting Oversight Board, or its successor;
   14. “Practice of public accounting” means the performance of or an offer to perform attest services as defined in this section or the performance of or an offer to perform professional services for the general public;
   15. “Preparation of financial statements” means providing a service of any preparation of financial statements engagement to be performed in accordance with the AICPA Statements on Standards for Accounting and Review Services;
   16. 1. 1. “Principal place of business” means the primary location from which professional services are performed.
          2. A person or firm may have only one (1) principal place of business at any one (1) time.
       2. An individual who performs professional services at multiple locations may designate the location that most often serves as the individual's home base of operations as a principal place of business;
   17. “Professional services” means services arising out of or related to the specialized knowledge or skills performed by certified public accountants or public accountants;
   18. “Shareholder” means either:
       1. The person in whose name shares are registered in the records of a corporation; or
       2. The beneficial owner of shares of a revocable living trust when the shares are registered in the records of the corporation in the name of the revocable living trust; and
   19. “State” means any state, territory, or insular possession of the United States or the District of Columbia.
2. The statements on standards specified in subdivision (a)(2) of this section shall be:
   1. Adopted by reference by rule of the Arkansas State Board of Public Accountancy; and
   2. Those developed for general application by recognized national accountancy organizations such as the American Institute of Certified Public Accountants.

History. Acts 1975, No. 160, § 22; A.S.A. 1947, § 71-632; Acts 1997, No. 306, § 4; 1999, No. 180, § 1; 2005, No. 54, § 1; 2009, No. 93, § 1; 2013, No. 90, § 1; 2017, No. 277, § 1; 2019, No. 386, § 1.

Amendments. The 2005 amendment added (a)(6) and redesignated the remaining subdivisions accordingly.

The 2009 amendment inserted (a)(2)(D), (a)(6), and (a)(13) and redesignated the remaining subdivisions accordingly; inserted “sole proprietorship” in (a)(8); redesignated (b); and made related and stylistic changes.

The 2013 amendment substituted “or” for “and/or” in (a)(6); deleted “the provisions of” preceding “§ 17-12-401” in (a)(8); inserted the definitions of “Home office” and “Principal place of business” in (a) and redesignated the remaining subdivisions accordingly; deleted “while using the title or designation certified public accountant, public accountant, CPA, PA, accountant, or auditor” at the end of (a)(15); and substituted “when” for “where” in (a)(18)(B) [now (a)(19)(B)].

The 2017 amendment added the definition of “Preparation of financial statements” in (a); deleted “financial statement” following “following” in (a)(2); added (a)(2)(E); rewrote (a)(6); in (a)(15), inserted “or an offer to perform” twice and added “for the general public”; and made stylistic changes.

The 2019 amendment deleted former (a)(4).

17-12-104. Penalty.

1. 1. A person who violates any provision of § 17-12-106 is guilty of a misdemeanor.
   2. A person convicted of violating any provision of § 17-12-106 is subject to:
      1. A fine of not more than one thousand dollars ($1,000);
      2. A judgment in favor of the Arkansas State Board of Public Accountancy for investigative costs; or
      3. Imprisonment for not more than one (1) year for each violation.
   3. Each violation of § 17-12-106 constitutes a separate offense.
2. When the board has reason to believe that a person is subject to punishment under this section, the board may certify the facts to the Attorney General or other appropriate enforcement officer, who may cause appropriate proceedings to be brought.

History. Acts 1975, No. 160, § 19; A.S.A. 1947, § 71-629; Acts 2005, No. 54, § 2; 2013, No. 90, § 2.

Amendments. The 2005 amendment inserted the (a)(1) and (b) designations; inserted “for each violation” at the end of (a)(1); added (a)(2); and substituted “subject to punishment” for “liable for punishment” in (b).

The 2013 amendment rewrote the section.

17-12-105. Injunctions.

Whenever in the judgment of the Arkansas State Board of Public Accountancy any person has engaged, or is about to engage, in any acts or practices which constitute, or will constitute, a violation of § 17-12-106, the board may make application to the appropriate court for an order enjoining such acts or practices, and upon a showing by the board that the person has engaged, or is about to engage, in any such acts or practices, an injunction, restraining order, or such other order as may be appropriate shall be granted by the court without bond.

History. Acts 1975, No. 160, § 18; A.S.A. 1947, § 71-628.

17-12-106. Unlawful acts — Definition.

1. 1. No person shall assume or use the title or designation “certified public accountant” or the abbreviation “CPA” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that he or she is a certified public accountant, unless he or she holds a current license as a certified public accountant under § 17-12-301 et seq. and all of his or her offices in this state for the practice of public accounting are currently maintained and registered as required under § 17-12-403.
   2. However, a foreign accountant who has received a certificate under the provisions of § 17-12-308(c) may use the title under which he or she is generally known in his or her country, followed by the name of the country from which he or she received his or her certificate, license, or degree.
2. No firm shall assume or use the title or designation “certified public accountant” or the abbreviation “CPA” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the firm is composed of certified public accountants unless the firm is currently registered under § 17-12-401(b)(1) and all offices of the firm in this state for the practice of public accounting are currently maintained and registered as required under § 17-12-403.
3. No person shall assume or use the title or designation “public accountant” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that he or she is a public accountant, unless:
   1. He or she is currently licensed as a public accountant and all of the person's offices in this state for the practice of public accounting are currently maintained and registered as required under § 17-12-403; or
   2. He or she is currently licensed as a certified public accountant under § 17-12-301 et seq. and all of the person's offices in this state for the practice of public accounting are currently maintained and registered as required under § 17-12-403.
4. No firm shall assume or use the title or designation “public accountant” or any other title, designation, words, letters, abbreviation, sign, card, or device tending to indicate that the firm is composed of public accountants unless the firm is currently registered under § 17-12-401 or § 17-12-402 and all offices of the firm in this state for the practice of public accounting are currently maintained and registered as required under § 17-12-403.
5. 1. No person or firm shall assume or use the title or designation “certified accountant”, “chartered accountant”, “enrolled accountant”, “licensed accountant”, “registered accountant”, “accredited accountant”, “accounting practitioner”, or any other title or designation likely to be confused with “certified public accountant” or “public accountant”, or any of the abbreviations “CA”, “LA”, “RA”, “AA”, “AP”, or similar abbreviations likely to be confused with “CPA” or “PA”.
   2. Anyone currently licensed under this chapter and whose offices in this state for the practice of public accounting are currently maintained and registered as required under § 17-12-403 may hold himself or herself out to the public as an “accountant” or “auditor”.
   3. A foreign accountant who receives a certificate under § 17-12-308(c) and all of whose offices in this state for the practice of public accounting are currently maintained and registered as required under § 17-12-403 may use the title under which he or she is generally known in his or her country, followed by the name of the country from which he or she received his or her certificate, license, or degree.
   4. 1. A person or firm shall not use a professional or firm name or designation that is misleading in reference to the legal form of the firm, the ownership of the firm, or the firm's owners, partners, officers, members, managers, or shareholders.
      2. However, a firm may use the name of one (1) or more past partners, officers, members, managers, or shareholders in its firm name.
   5. 1. 1. A common brand name or initials used by a firm in its name is not misleading if the firm is a network firm.
         2. For purposes of this subsection, “network firm” means an association of entities that includes one (1) or more firms that:
            1. Cooperate to enhance the firms' ability to provide professional services; and
            2. Share one (1) or more of the following:
               1. Common control as defined by generally accepted accounting principles in the United States through ownership, management, or other means;
               2. Profits or costs, excluding costs of operating the association, developing audit methodologies, manuals, and training courses, or other costs that are immaterial to the firm;
               3. A common business strategy, established by the association, that involves ongoing collaboration among the firms and whereby the firms are responsible for implementing the strategy and are held accountable for their performance under it;
               4. Significant part of professional resources; and
               5. Common quality control policies and procedures that the firms are required to implement and are monitored by the association.
                  1. Perform for a contingent fee any professional services for or receive such a fee from a client for whom the licensee or the licensee's firm performs:
                  2. Prepare an original or amended tax return or claim for a tax refund for a contingent fee for a client.
                  3. A licensee's fees may vary depending, for example, on the complexity of services rendered.
      2. A network firm may consist of a subset of entities within an association only if that subset of entities cooperates and shares one (1) or more of the characteristics in subdivision (e)(5)(A)(ii) of this section.
      3. A firm shall comply with the applicable standards on independence if it offers or renders services that require independence.
6. 1. A person who is not a current licensee may not offer to render or render any attest service as defined in § 17-12-103.
   2. The restriction in subdivision (f)(1) of this section does not prohibit any act of a public official or public employee in the performance of that person's duties as such or prohibit the performance by any person of other services involving the use of accounting skills, including the preparation of tax returns, management advisory services, and the preparation of financial statements without the issuance of reports in violation of this chapter.
7. Unless he or she is a current licensee and all of his or her offices in this state for the practice of public accounting are currently maintained and registered under § 17-12-403, no person shall sign or affix his or her name or any trade or assumed name used by him or her in his or her profession or business with any wording indicating that he or she is an accountant or auditor or with any wording indicating that he or she has expert knowledge in accounting or auditing to any opinion or certificate attesting in any way to the reliability of any representation or estimate in regard to any person or organization embracing:
   1. Financial information; or
   2. Facts respecting compliance with conditions established by law or contract, including, but not limited to, statutes, ordinances, rules, regulations, grants, loans, and appropriations.
8. Unless the firm is currently registered as required by § 17-12-401 et seq. and all of its offices in this state for the practice of public accounting are currently maintained and registered as required under § 17-12-403, no person shall sign or affix a firm name with any wording indicating that it is a partnership, corporation, or limited liability company composed of accountants or auditors or persons having expert knowledge in accounting or auditing to any opinion or certificate attesting in any way to the reliability of any representation or estimate in regard to any person or organization embracing:
   1. Financial information; or
   2. Facts respecting compliance with conditions established by law or contract, including, but not limited to, statutes, ordinances, rules, regulations, grants, loans, and appropriations.
9. 1. No person not currently licensed pursuant to § 17-12-301 et seq., and no firm not currently registered pursuant to § 17-12-401 et seq., shall hold himself or herself or itself out to the public as an “accountant” or “auditor” by use of either or both of such words on any sign, card, electronic transmission, or letterhead or in any advertisement or directory without indicating thereon or therein that the person or firm does not hold such a license.
   2. This subsection shall not prohibit any officer, employee, partner, or principal of any organization from describing himself or herself by the position, title, or office he or she holds in such an organization, nor shall this subsection prohibit any act of a public official or public employee in the performance of his or her duties as such.
10. No person shall assume or use the title or designation “certified public accountant” or “public accountant” in conjunction with names indicating or implying that there is a partnership, corporation, or limited liability company if there is, in fact, no bona fide partnership, corporation, or limited liability company currently registered under § 17-12-401 or § 17-12-402. A sole proprietor, corporation, or partnership lawfully using the title or designation in conjunction with such names or designations on July 9, 1975, may continue to do so if he or she or it otherwise complies with the provisions of this chapter.
11. 1. 1. A licensee shall not for a commission recommend or refer to a client a product or service, or for a commission recommend or refer a product or service to be supplied by a client, or receive a commission when the licensee or the licensee's firm also performs for that client:
          1. An audit or review of a financial statement;
          2. A compilation of a financial statement when the licensee expects, or reasonably might expect, that a third party will use the financial statement and the licensee's compilation report does not disclose a lack of independence;
          3. An examination of prospective financial information; or
          4. An engagement to be performed in accordance with PCAOB standards.
       2. This prohibition applies during the period in which the licensee is engaged to perform any of the services listed in subdivision (k)(1)(A) of this section and the period covered by any historical financial statements involved in such listed services.
    2. A licensee who is not prohibited by this section from performing services for or receiving a commission and who is paid or expects to be paid a commission shall disclose that fact to a person or entity to whom the licensee recommends or refers a product for service to which the commission relates.
    3. A licensee who accepts a referral fee for recommending or referring any service of a licensee to a person or entity or who pays a referral fee to obtain a client shall disclose the acceptance or payment to the client.
12. 1. A licensee shall not:
       1. An audit or review of a financial statement;
       2. A compilation of a financial statement when the licensee expects, or reasonably might expect, that a third party will use the financial statement and the licensee's compilation report does not disclose a lack of independence;
       3. An examination of prospective financial information; or
       4. An engagement to be performed in accordance with PCAOB standards; or
    2. The prohibition in subdivision (l)(1) of this section applies during the period in which the licensee is engaged to perform any of the services listed in subdivision (l)(1) of this section and the period covered by any historical financial statements involved in any such listed services.
    3. 1. Except as stated in subdivision (l)(3)(B) of this section, a contingent fee is a fee established for the performance of any service pursuant to an arrangement in which no fee will be charged unless a specified finding or result is attained or in which the amount of the fee is otherwise dependent upon the finding or result of the service.
       2. Solely for purposes of this section, fees are not regarded as being contingent if fixed by courts or other public authorities or, in tax matters, if determined based on the results of judicial proceedings or the findings of governmental agencies.
13. A firm that is not registered under § 17-12-401 and does not have an office in this state to provide professional services in this state does not violate this section if the firm complies with § 17-12-401(b)(2) or (b)(3).
14. For purposes of this section:
    1. “Licensee” includes an individual using practice privileges under § 17-12-311 on an equal basis; and
    2. A reference to a firm registered under § 17-12-401 et seq. includes a firm exempt from registration and practicing under § 17-12-401(b)(2) and (3).

History. Acts 1975, No. 160, § 16; A.S.A. 1947, § 71-626; Acts 1991, No. 434, § 1; 1997, No. 242, § 1; 1999, No. 180, § 2; 2005, No. 54, § 3; 2009, No. 93, §§ 2-6; 2013, No. 90, § 3; 2019, No. 315, §§ 1326, 1327.

Amendments. The 2005 amendment inserted the subdivision designations in (a), (c) and (e) and made related changes; substituted “holds a current license” for “has received a certificate” in (a)(1); substituted “The person holds a current license” for “unless the person has received a certificate” in (c)(2); substituted “Anyone currently licensed under this chapter and” for “However, anyone” in (e)(2); substituted “A person who is not a current licensee may not” for “No person who is not a licensee may” in (f)(1); substituted “current licensee” for “licensee” in (g); substituted “the service” for “such a service” at the end of (l)(3)(A); and inserted “currently” throughout the section.

The 2009 amendment substituted “§ 17-12-401(a)(1)” for “§ 17-12-401” in (b); substituted “not currently registered” for “not currently licensed” in (i)(1); inserted (k)(1)(A)(iv) and made related and minor stylistic changes; inserted (l)(1)(A)(iv); and added (m) and (n).

The 2013 amendment added (e)(4) and (e)(5).

The 2019 amendment inserted “rules” in (g)(2) and (h)(2).

17-12-107. Permissible acts.

1. Nothing contained in this chapter shall prohibit any person not a certified public accountant or public accountant from serving as an employee of, or an assistant to, a certified public accountant or public accountant licensed under § 17-12-301 et seq., a firm registered under § 17-12-401 et seq., or a foreign accountant who received a certificate under § 17-12-308(c), provided that the employee or assistant shall not issue any accounting or financial statement over his or her name.
2. Nothing contained in this chapter shall prohibit any person who is not a licensee from issuing any compilation report prescribed by the “Statements on Standards for Accounting and Review Services” on any services to which those standards apply, indicating that the services were performed in accordance with standards established by the American Institute of Certified Public Accountants, provided that the report discloses that the person does not hold a license. The Arkansas State Board of Public Accountancy may by rule prescribe safe harbor language on the content of such disclosure.

History. Acts 1975, No. 160, § 17; A.S.A. 1947, § 71-627; Acts 1999, No. 180, § 3.

17-12-108. CPA construed.

Whenever any statute or rule requires that reports, financial statements, and other documents for submission to any department, board, or agency of this state be prepared by CPAs, the requirements shall be construed to mean registered public accountants or certified public accountants.

History. Acts 1975, No. 160, § 5; 1977, No. 183, § 1; 1979, No. 432, § 3; A.S.A. 1947, § 71-615; Acts 2019, No. 315, § 1328.

Amendments. The 2019 amendment substituted “rule” for “regulation”.

17-12-109. Accountants' working papers.

1. All statements, records, schedules, working papers, and memoranda made by a certified public accountant or public accountant incident to or in the course of professional service to clients by the accountant, except reports submitted by a certified public accountant or public accountant to a client, shall be and remain the property of the accountant in the absence of an express agreement between the accountant and the client to the contrary.
2. No statement, record, schedule, working paper, or memorandum shall be sold, transferred, or bequeathed without the consent of the client or his or her personal representative or assignee to anyone other than one (1) or more surviving partners or new partners of the accountant or to his or her corporation or limited liability company.
3. Each licensee shall retain working papers for a period of time specified by the Arkansas State Board of Public Accountancy.

History. Acts 1975, No. 160, § 21; A.S.A. 1947, § 71-631; Acts 1999, No. 180, § 4; 2005, No. 54, § 4.

Amendments. The 2005 amendment added (c).

17-12-110. [Repealed.]

Publisher's Notes. This section, concerning corporations, was repealed by Acts 1999, No. 180, § 5. The section was derived from Acts 1975, No. 160, § 7; 1979, No. 432, § 4; A.S.A. 1947, § 71-617.

17-12-111. Evidence.

The display or uttering by a person of a card, sign, advertisement, or other printed, engraved, electronic transmission, or written instrument or device bearing a person's name in conjunction with the words “certified public accountant” or any abbreviation thereof, or “public accountant” or any abbreviation thereof, shall be prima facie evidence in any action brought under § 17-12-104 or § 17-12-105 that the person whose name is so displayed caused or procured the display or uttering of such a card, sign, advertisement, or other printed, engraved, electronic transmission, or written instrument or device and that the person is holding himself or herself out to be a certified public accountant or a public accountant. In any such action, evidence of the commission of a single act prohibited by this chapter shall be sufficient to justify an injunction or a conviction without evidence of a general course of conduct.

History. Acts 1975, No. 160, § 20; A.S.A. 1947, § 71-630; Acts 1999, No. 180, § 6.

17-12-112. [Repealed.]

Publisher's Notes. This section, concerning organization of a limited liability company, was repealed by Acts 1999, No. 180, § 7. The section was derived from Acts 1997, No. 242, § 2.

Subchapter 2 — Arkansas State Board of Public Accountancy

Cross References. Liability of committee members of professional societies, § 17-1-102.

Effective Dates. Acts 1975, No. 160, § 25: July 1, 1975.

Acts 1979, No. 432, § 10: Mar. 20, 1979. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to properly define, describe and classify all revenues and other income which are required to be deposited in the State Treasury, it is necessary that the provisions of this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1981, No. 717, § 3: Mar. 25, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that regulatory boards and commissions covered by Acts 1977, No. 113 exist for the singular purpose of protecting the public health and welfare; that it is necessary and proper that the public be represented on such boards and commissions; that the operations of such boards and commissions have a profound effect on the daily lives of all Arkansans; and that the public's voice should not be muted on any question coming before such public bodies. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Identical Acts 1983, No. 131, § 6 and No. 135, § 6: Feb. 10, 1983. Emergency clauses provided: “It is hereby found and determined by the General Assembly that state boards and commissions exist for the singular purpose of protecting the public health and welfare; that citizens over 60 years of age represent a significant percentage of the population; that it is necessary and proper that the older population be represented on such boards and commissions; that the operations of the boards and commissions have a profound effect on the daily lives of older Arkansans; and that the public voice of older citizens should not be muted as to questions coming before such bodies. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1999, No. 180, § 41: Jan. 1, 2000.

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

17-12-201. Creation — Members.

1. There is created the Arkansas State Board of Public Accountancy.
2. 1. The board shall consist of seven (7) members, appointed by the Governor for terms of five (5) years.
   2. Four (4) members of the board shall be residents of this state who are certified public accountants. One (1) member shall be a resident public accountant licensed under this chapter during the years there are at least twenty percent (20%) of the original registrants under this chapter reregistered or relicensed. Thereafter, the vacancy shall be filled by a resident who is a certified public accountant.
   3. Two (2) members of the board shall be residents of this state and shall not be actively engaged in or retired from the profession of accounting. One (1) member shall represent consumers, and one (1) member shall be sixty (60) years of age or older and shall represent the elderly. Both shall be appointed from the state at large subject to confirmation by the Senate. The two (2) positions may not be held by the same person. Both shall be full voting members but shall not participate in the grading of examinations.
3. 1. Vacancies occurring during a term shall be filled by appointment for the unexpired term.
   2. Upon the expiration of the term of office, a member shall continue to serve until his or her successor shall have been appointed and shall have qualified.
   3. The Governor shall remove from the board any professional member whose license has become void or has been revoked or suspended and, after hearing, may remove any member of the board for neglect of duty or other just cause.
   4. No person who has served a full term on the board shall be eligible for reappointment until after the lapse of five (5) years.
   5. Appointment to fill an unexpired term is not to be considered a complete term.
4. Each member of the board may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

History. Acts 1975, No. 160, § 2; 1977, No. 113, §§ 1-3; 1981, No. 717, § 2; 1983, No. 131, §§ 1-3, 5; 1983, No. 135, §§ 1-3, 5; A.S.A. 1947, §§ 6-617 — 6-619, 6-623 — 6-626, 71-612; Acts 1997, No. 250, § 122; 1999, No. 180, §§ 8, 9.

Publisher's Notes. Acts 1981, No. 717, § 1, provided that the purpose of the act was to provide full voting authority to consumer representatives on state boards and commissions affected by Acts 1977, No. 113.

The terms of the members of the Arkansas State Board of Public Accountancy, other than the representatives of consumers and the elderly, are arranged so that one term expires every year.

17-12-202. Officers and proceedings.

1. The Arkansas State Board of Public Accountancy shall elect annually a president, a secretary, and a treasurer from its members.
2. A majority of the board shall constitute a quorum for the transaction of business.
3. The board shall have a seal which shall be judicially noticed. The board shall keep records of its proceedings. In any proceeding in court, civil or criminal, arising out of or founded upon any provision of this chapter, copies of the records certified as correct under the seal of the board shall be admissible in evidence as tending to prove the content of the records.

History. Acts 1975, No. 160, § 2; A.S.A. 1947, § 71-612.

17-12-203. Duties and powers.

1. The Arkansas State Board of Public Accountancy may adopt, and amend from time to time, rules for the orderly conduct of its affairs and for the administration of this chapter.
2. 1. The Arkansas State Board of Public Accountancy shall prepare periodically and make available in media or a medium deemed appropriate by the Arkansas State Board of Public Accountancy a register which shall contain:
      1. The names of all practitioners currently licensed to practice under this chapter;
      2. The names of the members of the Arkansas State Board of Public Accountancy; and
      3. Any other matters as may be deemed proper by the Arkansas State Board of Public Accountancy.
   2. The Arkansas State Board of Public Accountancy may employ personnel and arrange for assistance as it may require for the performance of its duties.
3. 1. The Arkansas State Board of Public Accountancy may promulgate and amend rules of professional conduct appropriate to establish and maintain a high standard of integrity and dignity in the profession of public accountancy.
   2. At least three (3) months before the promulgation of a rule or amendment to its rules of professional conduct, the Arkansas State Board of Public Accountancy shall mail copies of the proposed rule or amendment to each licensee with a notice advising him or her of the proposed effective date of the rule or amendment and requesting that he or she submit his or her comments thereon at least fifteen (15) days before its effective date.
   3. Comments shall be advisory only.
   4. Failure to mail the rule, amendment, or notice to all licensees shall not affect the validity of the rule or amendment.
4. The Arkansas State Board of Public Accountancy may issue any further rules, including, but not limited to, rules of professional conduct pertaining to licensees practicing public accounting which it deems consistent with or required by the public welfare. Among other things, the Arkansas State Board of Public Accountancy may prescribe rules for licensees:
   1. Governing their style, name, and title;
   2. Governing their affiliation with any other organization; and
   3. Establishing reasonable standards with respect to professional liability insurance and capital requirements.
5. The Arkansas State Board of Public Accountancy may:
   1. Adopt rules, not inconsistent with this subchapter, as necessary and proper to carry out the purposes and intentions of this subchapter;
   2. 1. Issue subpoenas to compel the attendance of witnesses and the production of documents.
      2. In case of refusal to obey a subpoena issued to any person, the Pulaski County Circuit Court, upon application by the Arkansas State Board of Public Accountancy, may issue an order requiring the person to appear before the Arkansas State Board of Public Accountancy to produce documentary evidence if so ordered or to give evidence touching the matter under investigation or in question.
      3. Failure to obey the order of the court may be punished by the court as a contempt of court;
   3. Administer oaths;
   4. Take testimony and receive evidence; and
   5. Cooperate with the following:
      1. The Public Company Accounting Oversight Board; and
      2. The appropriate state, federal, or foreign regulatory authorities having jurisdiction over the professional conduct in question.
6. 1. The Arkansas State Board of Public Accountancy and its agents are immune from personal liability for actions taken in good faith in the discharge of its responsibilities.
   2. The state shall hold the Arkansas State Board of Public Accountancy, its members, and its agents harmless from all costs, damages, and attorney's fees arising from claims and suits against them with respect to matters to which the immunity applies.

History. Acts 1975, No. 160, § 2; 1979, No. 432, § 1; A.S.A. 1947, § 71-612; Acts 1997, No. 242, § 3; 1999, No. 180, § 10; 2005, No. 54, § 5; 2013, No. 90, § 4; 2019, No. 315, §§ 1329, 1330.

Amendments. The 2005 amendment substituted “prepare periodically and make available in a media or a medium deemed appropriate by the board a register which shall contain the names of all practitioners currently licensed to practice” for “have printed and published for public distribution a biennial register which shall contain the names, arranged alphabetically by classifications, of all practitioners licensed” in (b)(1); deleted “copies of the registers shall be mailed to each licensee” at the end of (b)(1)(C); inserted the subdivision designations in (c); inserted “to its rules of professional conduct” in (c)(2); and made minor stylistic changes.

The 2013 amendment added (e) and (f).

The 2019 amendment substituted “rules” for “regulations” in (a), and twice in the introductory language of (d).

17-12-204. Disposition of funds — Reports.

1. All fees and other moneys received by the Arkansas State Board of Public Accountancy pursuant to the provisions of this chapter shall be kept in a separate fund and expended solely for the purposes of this chapter. No part of this special fund shall revert to the general funds of this state. The compensation provided by this chapter and all expenses incurred under this chapter shall be paid from this special fund. No compensation or expenses incurred under this chapter shall be a charge against the general funds of this state.
2. The board shall file an annual report of its activities with the Secretary of the Department of Labor and Licensing, and the report shall include a statement of all receipts and disbursements.

History. Acts 1975, No. 160, § 2; 1979, No. 432, § 1; A.S.A. 1947, § 71-612; Acts 2019, No. 910, § 5406.

Amendments. The 2019 amendment substituted “Secretary of the Department of Labor and Licensing” for “Governor” in (b).

Subchapter 3 — Initial Licensure

Effective Dates. Acts 1975, No. 160, § 25: July 1, 1975.

Acts 1979, No. 432, § 10: Mar. 20, 1979. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to properly define, describe and classify all revenues and other income which are required to be deposited in the State Treasury, it is necessary that the provisions of this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1999, No. 180, § 41: Jan. 1, 2000.

17-12-301. Requirements generally.

1. A certificate as a certified public accountant shall be granted by the Arkansas State Board of Public Accountancy to any person:
   1. Who has met the education and experience requirements set forth in this chapter and by the board; and
   2. Who has passed an examination in accounting and auditing and such related subjects as the board shall determine to be appropriate.
2. 1. Any person who has received from the board a certificate as a certified public accountant which is currently in full force and effect shall be styled and known as a “certified public accountant” and may also use the abbreviation “CPA”.
   2. The board shall maintain a list of certified public accountants.
3. Any certified public accountant may also be known as a “public accountant”.

History. Acts 1975, No. 160, §§ 3, 3A; 1979, No. 432, § 2; A.S.A. 1947, § 71-613; Acts 1989, No. 696, § 1; 1997, No. 242, § 4; 1999, No. 180, § 12; 2005, No. 54, § 6; 2019, No. 990, § 7.

Amendments. The 2005 amendment inserted the subdivision designations in (b)(1) and made related changes; inserted (b)(1)(ii); and inserted “currently” preceding “in full force” in (c)(1).

The 2019 amendment deleted “of good moral character” following “person” in the introductory language of (a); deleted former (b); and redesignated part of former (c) as (b).

17-12-302. Education requirements.

1. In general, the applicable education requirements shall be those in effect on the date on which the applicant successfully applies for his or her examination under § 17-12-301(a)(2). However, the Arkansas State Board of Public Accountancy may provide by rule for exceptions to the general rule in order to prevent what it determines to be undue hardship to applicants resulting from changes in the education and experience requirements.
2. The board may provide by rule for the general scope of the examinations and may obtain any advice and assistance it deems appropriate to assist it in preparing and grading the examinations.

History. Acts 1975, No. 160, § 3; 1979, No. 432, § 2; A.S.A. 1947, § 71-613; Acts 1989, No. 696, § 2; 1999, No. 180, § 13; 2019, No. 315, § 1331.

Amendments. The 2019 amendment substituted the first occurrence of “rule” for “regulation” in the second sentence of (a); and substituted “rule” for “regulation” in (b).

17-12-303. Criminal background check.

1. The Arkansas State Board of Public Accountancy may require each applicant for a new or reinstated license as a certified public accountant, including reciprocity applicants, or public accountant to apply for or authorize the board to obtain state and national criminal background checks to be conducted by the Identification Bureau of the Division of Arkansas State Police and the Federal Bureau of Investigation.
2. The criminal background checks shall conform to the applicable federal standards and shall include the taking of fingerprints.
3. The applicant shall authorize the release of the criminal background checks to the board and shall be responsible for the payment of any fee associated with the criminal background checks.
4. Upon completion of the criminal background checks, the Identification Bureau shall forward to the board all releasable information obtained concerning the applicant.
5. [Repealed.]
6. 1. The provisions of subsection (e) of this section may be waived by the board upon the request of:
      1. An affected applicant for licensure or registration; or
      2. The person holding a license or registration subject to revocation.
   2. Circumstances for which a waiver may be granted shall include, but not be limited to:
      1. The age at which the crime was committed;
      2. The circumstances surrounding the crime;
      3. The length of time since the crime;
      4. Subsequent work history;
      5. Employment references;
      6. Character references;
      7. A conviction or record that has been expunged; and
      8. Other evidence demonstrating that the applicant does not pose a threat to the public health, safety, or welfare.
7. 1. Any information received by the board from the Identification Bureau under this section is not available for examination except by:
      1. The affected applicant or the applicant's authorized representative; or
      2. The person whose license or registration is subject to revocation or his or her authorized representative.
   2. No record, file, or document shall be removed from the custody of the Division of Arkansas State Police.
   3. Only information pertaining to the person making the request may be made available to the affected applicant or the person whose license or registration is subject to revocation.
   4. Rights of privilege and confidentiality established in this section shall not extend to any document created for purposes other than the criminal background checks.
8. The board shall adopt rules to implement the provisions of this section.

History. Acts 1975, No. 160, § 3; 1979, No. 432, § 2; A.S.A. 1947, § 71-613; Acts 1993, No. 1219, § 1; 1999, No. 180, § 14; 2005, No. 54, § 7; 2019, No. 315, § 1332; 2019, No. 990, §§ 8, 9.

Amendments. The 2005 amendment rewrote this section.

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (h).

The 2019 amendment by No. 990, in (d), inserted “releasable”, and substituted “applicant” for “commission by the applicant of any offense listed in subsection (c) of this section”; and repealed (e).

17-12-304. Examination — Times — Resource assistance.

1. The examination required by § 17-12-301(a)(2) shall be held by the Arkansas State Board of Public Accountancy and shall take place as often as the board shall determine to be desirable. However, the examination required by § 17-12-301(a)(2) shall be held not less frequently than one (1) time each year.
2. The board may use any part of the Uniform Certified Public Accountant Examination and Advisory Grading Service from the American Institute of Certified Public Accountants as it deems appropriate to assist it in performing its duties under this section.

History. Acts 1975, No. 160, § 3; 1979, No. 432, § 2; A.S.A. 1947, § 71-613; Acts 1989, No. 696, § 3; 2005, No. 54, § 8; 2013, No. 90, § 5.

Amendments. The 2005 amendment deleted “Uniform” preceding “Certified” in (b).

The 2013 amendment rewrote (b).

17-12-305. Reexaminations.

1. The Arkansas State Board of Public Accountancy may by rule prescribe the terms and conditions under which an applicant who passes the examination in one (1) or more of the subjects indicated in § 17-12-301(a)(2) may be reexamined in only the remaining subjects, with credit for the subjects previously passed.
2. It may also provide by rule for a reasonable waiting period for an applicant's reexamination in a subject he or she has failed.
3. Subject to subsections (a) and (b) of this section and such rules as the board may adopt governing reexaminations, an applicant shall be entitled to any number of reexaminations under § 17-12-301(a)(2).

History. Acts 1975, No. 160, § 3; 1979, No. 432, § 2; A.S.A. 1947, § 71-613; Acts 1999, No. 180, § 15; 2019, No. 315, § 1333.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (a) and (b); and substituted “rules” for “regulations” in (c).

17-12-306. Examination fees.

1. The Arkansas State Board of Public Accountancy shall charge a fee to each applicant applying to sit for the examination. In the board's discretion, the fee for a first-time applicant may be greater than the fee charged for reexamination.
2. The board shall also charge a fee to each applicant for the administration of the examination. The board may in its discretion contract with a third party to assist in the administration of the examination. In such an event, the fee charged by the third party may be charged to and paid by the applicant.
3. The fees to be paid by each applicant pursuant to this section shall be determined by the board, taking into account the approximate cost of processing the applications and administering the examination. In setting the fees, the board may also take into account additional costs to comply with the Americans with Disabilities Act and may establish a reserve for such purposes.
4. The applicable fees payable pursuant to this section shall be paid by the applicant at the time he or she applies for examination or reexamination.

History. Acts 1975, No. 160, § 3; 1979, No. 432, § 2; A.S.A. 1947, § 71-613; Acts 1997, No. 242, § 5; 1999, No. 180, § 16.

U.S. Code. The Americans with Disabilities Act, referred to in this section, is codified primarily as 42 U.S.C. § 12101 et seq.

17-12-307. Credit for examination administered by licensing authority in another jurisdiction.

The Arkansas State Board of Public Accountancy may by rule provide for granting a credit to an applicant for his or her satisfactory completion of an examination in any one (1) or more of the subjects specified in § 17-12-301(a)(2) given by the licensing authority in any other state. The rules shall include such requirements as the board shall determine to be appropriate in order that any examination approved as a basis for any credit shall be, in the judgment of the board, at least as thorough as the most recent examination given by the board at the time of the granting of the credit.

History. Acts 1975, No. 160, § 3; 1979, No. 432, § 2; A.S.A. 1947, § 71-613; Acts 1997, No. 242, § 6; 1999, No. 180, § 17; 2005, No. 54, § 9; 2019, No. 315, § 1334.

Amendments. The 2005 amendment substituted “her satisfactory” for “hersatisfactory.”

The 2019 amendment substituted “rule” for “regulation” in the first sentence and substituted “rules” for “regulations” in the second sentence.

17-12-308. Reciprocity.

1. With regard to applicants that do not qualify for reciprocity under the substantial equivalency standard set out in § 17-12-311, the Arkansas State Board of Public Accountancy shall issue a certificate as a certified public accountant to a holder of a certificate, license, or permit issued by another state upon a showing that:
   1. The applicant passed the examination required for issuance of the applicant's certificate with grades that would have been passing grades at the time in this state;
   2. The applicant:
      1. Meets all current requirements in this state for issuance of a certificate at the time application is made;
      2. At the time of the issuance of the applicant's certificate, license, or permit in the other state met all such requirements then applicable in this state; or
      3. Had four (4) years of experience outside of this state that meet the requirements of § 17-12-309(b) and (c) or meet equivalent requirements prescribed by the board by rule after passing the examination upon which the applicant's certificate was based and within the ten (10) years immediately preceding the application;
   3. The applicant has had experience in the practice of public accounting meeting the requirements of § 17-12-309; and
   4. The applicant has fulfilled the continuing education requirements applicable under § 17-12-502.
2. As an alternative to the requirements of § 17-12-308(a), a certificate holder licensed by another state who establishes his or her principal place of business in this state shall request the issuance of a certificate from the board before establishing such a principal place of business. The board shall issue a certificate to such a person who obtains from the NASBA National Qualification Appraisal Service verification that the individual's CPA qualifications are substantially equivalent to the CPA licensure requirements of the AICPA/NASBA Uniform Accountancy Act.
3. The board shall issue a certificate to a holder of a substantially equivalent foreign designation, provided that:
   1. The foreign authority which granted the designation makes similar provision to allow a person who holds a valid certificate issued by this state to obtain the foreign authority's comparable designation; and
   2. The foreign designation:
      1. Was duly issued by a foreign authority that regulates the practice of public accountancy and the foreign designation has not expired or been revoked or suspended;
      2. Entitles the holder to issue reports upon financial statements; and
      3. Was issued upon the basis of education, examination, and experience requirements established by the foreign authority or by law; and
   3. The applicant:
      1. Received the designation, based on education and examination standards substantially equivalent to those in effect in this state, at the time the foreign designation was granted;
      2. Completed an experience requirement substantially equivalent to the requirement set out in § 17-12-309 in the jurisdiction which granted the foreign designation or has completed four (4) years of professional experience in this state or meets equivalent requirements prescribed by the board by rule, within the ten (10) years immediately preceding the application; and
      3. Passed a uniform qualifying examination in national standards acceptable to the board.
4. An applicant under subsection (c) of this section shall in the application list all jurisdictions, foreign and domestic, in which the applicant has applied for or holds a designation to practice public accountancy, and each holder of a certificate issued under this subsection shall notify the board in writing, within thirty (30) days after its occurrence, of any issuance, denial, revocation, or suspension of a designation or commencement of a disciplinary or enforcement action by any jurisdiction.

History. Acts 1975, No. 160, §§ 3, 3A; 1979, No. 432, § 2; A.S.A. 1947, § 71-613; Acts 1997, No. 242, § 7; 1999, No. 180, § 18; 2017, No. 277, § 2.

Amendments. The 2017 amendment substituted “that meet the requirements of § 17-12-309(b) and 17-12-309(c) or meet” for “in the practice of public accounting or meets” in (a)(2)(C).

17-12-309. Experience.

1. An applicant for initial issuance of a certificate under this subchapter shall show that the applicant has had one (1) year of experience.
2. The experience shall include providing any type of service or advice involving the use of accounting, attest, management advisory, financial advisory, tax, or consulting skills all of which were verified by a licensee, meeting requirements prescribed by the Arkansas State Board of Public Accountancy by rule.
3. The experience will be acceptable if it was gained through employment in government, industry, academia, or public practice.

History. Acts 1975, No. 160, § 4; A.S.A. 1947, § 71-614; Acts 1991, No. 434, § 2; 1997, No. 242, § 8; 1999, No. 180, § 19; 2005, No. 54, § 10.

Amendments. The 2005 amendment inserted the subsection (a)-(c) designations; and substituted “The” for “This” at the beginning of (b) and (c).

17-12-310. Certificates held under prior law.

Persons who on July 9, 1975, held certified public accountant certificates theretofore issued under the laws of this state shall not be required to obtain additional certificates under this chapter, but shall otherwise be subject to all provisions of this chapter. The certificates theretofore issued shall for all purposes be considered certificates issued under this chapter and subject to the provisions hereof.

History. Acts 1975, No. 160, § 3; 1979, No. 432, § 2; A.S.A. 1947, § 71-613.

17-12-311. Substantial equivalency.

1. 1. An individual whose principal place of business is not in this state and who holds a valid license as a certified public accountant from a state which the NASBA National Qualification Appraisal Service has verified to be in substantial equivalence with the CPA licensure requirements of the AICPA/NASBA Uniform Accountancy Act:
      1. Shall be presumed to have qualifications substantially equivalent to this state's requirements;
      2. Shall have all the privileges of licensees of this state without the need to obtain a certificate under § 17-12-301 or § 17-12-308 or a license under § 17-12-313 or § 17-12-501; and
      3. May offer or render professional services in person, by mail, by telephone, or by electronic means without notifying the Arkansas State Board of Public Accountancy or paying a fee.
   2. 1. An individual whose principal place of business is not in this state and who holds a valid license as a certified public accountant from a state which the NASBA National Qualification Appraisal Service has not verified to be in substantial equivalence with the CPA licensure requirements of the AICPA/NASBA Uniform Accountancy Act:
         1. Shall be presumed to have qualifications substantially equivalent to the requirements of this state;
         2. Shall have all the privileges of licensees of this state without the need to obtain a certificate under § 17-12-301 or § 17-12-308 or a license under § 17-12-313 or § 17-12-501 if the individual obtains from the NASBA National Qualification Appraisal Service verification that the individual's CPA qualifications are substantially equivalent to the CPA licensure requirements of the AICPA/NASBA Uniform Accountancy Act; and
         3. May offer or render professional services, whether in person, by mail, by telephone, or by electronic means without notifying the board or paying a fee.
      2. An individual who passed the Uniform CPA Examination and holds a valid license issued by any other state before January 1, 2012, may be exempt from the education requirement in § 17-12-302 for purposes of this subdivision (a)(2).
   3. An individual licensee of another state exercising the privilege afforded under this section and the firm that employs that individual licensee consent and agree, as a condition of the exercise of this privilege to:
      1. The personal and subject matter jurisdiction and disciplinary authority of the board;
      2. Comply with this chapter and the board's rules;
      3. Cease offering or rendering professional services in this state individually and on behalf of a firm if the license from the state of the individual's principal place of business is no longer valid; and
      4. The appointment of the board that issued his or her license as his or her agent upon whom process may be served in an action or proceeding by the board against the licensee.
   4. An individual who qualifies for practice privileges under this section may perform the following services for a client with its home office in this state only through a firm that has registered under § 17-12-401:
      1. A financial statement audit or other engagement to be performed in accordance with the “Statements on Auditing Standards”;
      2. An examination of prospective financial information to be performed in accordance with “Statements on Standards for Attestation Engagements”; or
      3. An engagement to be performed in accordance with PCAOB standards.
2. A licensee of this state offering or rendering services or using his or her CPA title in another state shall be subject to disciplinary action in this state for an act committed in another state for which the licensee would be subject to discipline for an act committed in the other state.
3. The board may investigate any complaint made by the board of accountancy of another state.

History. Acts 1999, No. 180, § 20; 2009, No. 93, § 7.

Amendments. The 2009 amendment rewrote the section.

17-12-312. Licensing of public accountants.

Any person who qualified to register as a public accountant on July 1, 1975, may at any time register with the Arkansas State Board of Public Accountancy to be licensed as a public accountant.

History. Acts 1999, No. 180, § 21.

17-12-313. Time for initial license.

An applicant shall obtain an initial license within three (3) years of successful completion of the examination under this subchapter or shall be considered as having a void license under § 17-12-504(h).

History. Acts 2005, No. 54, § 11.

Subchapter 4 — Registration of Firms

Effective Dates. Acts 1975, No. 160, § 25: July 1, 1975.

Acts 1999, No. 180, § 41: Jan. 1, 2000.

17-12-401. Professional partnerships, corporations, limited liability companies, and sole proprietorships of certified public accountants.

1. The Arkansas State Board of Public Accountancy shall grant or renew a registration as a CPA firm to an applicant that meets the qualifications of this section.
2. 1. A firm shall hold a registration under this section if the firm:
      1. Has an office in this state:
         1. Engaged in the practice of public accounting; or
         2. That uses the title “CPA” or “CPA firm”; or
      2. Does not have an office in this state but performs attest services described in § 17-12-103(a)(2)(A), § 17-12-103(a)(2)(C), or § 17-12-103(a)(2)(D) for a client having its home office in this state.
   2. A firm that does not have an office in this state may perform services under § 17-12-103(a)(2)(B), § 17-12-103(a)(2)(E), or § 17-12-103(a)(5) for a client having its home office in this state and may use the title “CPA” or “CPA firm” without registering under this section only if the firm:
      1. Meets the applicable qualifications of this section and § 17-12-507;
      2. Performs the services through an individual with practice privileges under § 17-12-311; and
      3. Meets the peer review requirements under § 17-12-508.
   3. A firm that is not subject to the requirements of subdivision (b)(1)(B) or subdivision (b)(2) of this section may perform other professional services while using the title “CPA” or “CPA firm” in this state without registering under this section only if the firm:
      1. Performs the services through an individual with practice privileges under § 17-12-311; and
      2. Can lawfully perform the services in the state where the individuals with practice privileges have their principal place of business.
3. If required to register under subdivision (b)(1)(A) of this section:
   1. A partnership engaged in this state in the practice of public accounting shall register with the board as a partnership of certified public accountants and meet the following requirements:
      1. At least one (1) general partner shall be a certified public accountant of this state in good standing; and
      2. Each resident manager in charge of an office of the partnership in this state shall be a certified public accountant of this state in good standing;
   2. A corporation engaged in this state in the practice of public accounting shall register with the board as a corporation of certified public accountants and meet the following requirements:
      1. Any officer or director of the corporation having authority over the practice of public accounting by the corporation in this state shall be a certified public accountant of some state in good standing;
      2. At least one (1) shareholder of the corporation shall be a certified public accountant of this state in good standing;
      3. Each resident manager in charge of an office of the corporation in this state shall be a certified public accountant of this state in good standing; and
      4. The corporation shall be in compliance with other rules pertaining to corporations practicing public accounting in this state that the board may prescribe;
   3. A limited liability company engaged in this state in the practice of public accounting shall register with the board as a limited liability company of certified public accountants and meet the following requirements:
      1. Any manager, member, officer, or director of the limited liability company having authority over the practice of public accounting by the limited liability company in this state shall be a certified public accountant of some state in good standing;
      2. At least one (1) member of the limited liability company shall be a certified public accountant of this state in good standing;
      3. Each resident manager in charge of an office of the limited liability company in this state shall be a certified public accountant of this state in good standing; and
      4. The limited liability company shall be in compliance with other rules pertaining to limited liability companies practicing public accounting in this state that the board may prescribe; and
   4. A certified public accountant operating as a sole proprietorship and engaged in this state in the practice of public accounting shall register with the board as a sole proprietor if registration is required under subdivision (b)(1) of this section and shall comply with the requirements of § 17-12-403.
4. 1. Application for registration shall be made upon the affidavit of a general partner, shareholder, or member who is a certified public accountant of this state in good standing or, if registration is required under subdivision (b)(1)(B) of this section, a licensee of another state who meets the requirements set forth in § 17-12-311.
   2. An individual who has practice privileges under § 17-12-311 and performs services for which registration is required under § 17-12-311(a)(4) shall not be required to obtain a license from this state under § 17-12-301.
5. The board shall in each case determine whether the applicant is eligible for registration.
6. Notification shall be given to the board within one (1) month after the admission or withdrawal of a partner, shareholder, or member from any firm so registered.
7. Any firm registered under this section may include nonlicensee owners or public accountants who hold a valid license under § 17-12-312, provided that:
   1. A majority of the ownership of the firm in terms of financial interests and voting rights of all partners, officers, directors, shareholders, members, or managers belongs to holders of certificates who are licensed in some state, and such partners, officers, directors, shareholders, members, or managers whose principal place of business is in this state and who perform professional services in this state hold a valid certificate issued under § 17-12-301 et seq. or the corresponding provisions of prior law;
   2. The firm designates a licensee of this state or, in the case of a firm that must be registered under subdivision (b)(1)(B) of this section, a licensee of another state who meets the requirements of § 17-12-311 who is responsible for the proper registration of the firm and identifies that individual to the board;
   3. All nonlicensee owners are active individual participants in the firm or other entities affiliated with the firm; and
   4. The firm complies with such other requirements as the board may impose by rule.

History. Acts 1975, No. 160, § 8; A.S.A. 1947, § 71-618; Acts 1997, No. 242, § 9; 1999, No. 180, § 23; 2005, No. 54, § 12; 2009, No. 93, § 8; 2017, No. 278, § 1; 2019, No. 315, §§ 1335, 1336.

Amendments. The 2005 amendment added (i).

The 2009 amendment rewrote the section.

The 2017 amendment inserted “§ 17-12-103(a)(2)(E)” in (b)(2); and added (b)(2)(C).

The 2019 amendment substituted “rules” for “regulations” in (c)(2)(D) and (c)(3)(D).

17-12-402. Professional partnerships, corporations, limited liability companies, and sole proprietorships of public accountants.

1. A partnership engaged in this state in the practice of public accounting shall register with the Arkansas State Board of Public Accountancy as a partnership of public accountants, provided it meets the following requirements:
   1. At least one (1) general partner shall be a certified public accountant or a public accountant of this state in good standing; and
   2. Each resident manager in charge of an office of the partnership in this state shall be a certified public accountant or a public accountant of this state in good standing.
2. A corporation engaged in this state in the practice of public accounting shall register with the board as a corporation of public accountants, provided it meets the following requirements:
   1. An officer or director of the corporation having authority over the practice of public accounting by the corporation shall be a certified public accountant or a public accountant of this state in good standing;
   2. Each resident manager in charge of an office of the corporation in this state shall be a certified public accountant or a public accountant of this state in good standing; and
   3. The corporation shall be in compliance with other rules pertaining to corporations practicing public accounting in this state that the board may prescribe.
3. A limited liability company engaged in this state in the practice of public accounting shall register with the board as a limited liability company of public accountants, provided it meets the following requirements:
   1. Any manager, member, officer, or director of the limited liability company having authority over the practice of public accounting by the limited liability company shall be a public accountant or certified public accountant of this state in good standing;
   2. Each resident manager in charge of an office of the limited liability company shall be a certified public accountant or a public accountant of this state in good standing; and
   3. The limited liability company shall be in compliance with other rules pertaining to the limited liability companies practicing public accounting in this state that the board may prescribe.
4. A public accountant operating as a sole proprietorship and engaged in this state in the practice of public accounting shall:
   1. Register with the board as a sole proprietor; and
   2. Comply with the requirements of § 17-12-403.
5. Applications for registration shall be made upon the affidavit of a general partner, shareholder, or member who is licensed in this state as a certified public accountant or as a public accountant.
6. The board shall in each case determine whether the applicant is eligible for registration.
7. A firm that is so registered may use the words “public accountants” in connection with its firm.
8. Notification shall be given to the board within one (1) month after the admission to or withdrawal of a partner, shareholder, or member from any partnership, corporation, or limited liability company so registered.
9. A firm registered pursuant to this section may include nonlicensee owners, provided that:
   1. A majority of the ownership of the firm in terms of financial interests and voting rights of all partners, officers, directors, shareholders, members, or managers belongs to licensees of this state;
   2. The firm designates a licensee of this state who is responsible for the proper registration of the firm and identifies that individual to the board;
   3. All nonlicensee owners are active individual participants in the firm; and
   4. The firm complies with such other requirements as the board may impose by rule.

History. Acts 1975, No. 160, § 9; A.S.A. 1947, § 71-619; Acts 1997, No. 242, § 10; 1999, No. 180, § 24; 2009, No. 93, § 9; 2019, No. 315, §§ 1337, 1338.

Amendments. The 2009 amendment inserted (d), redesignated the remaining subsections accordingly, and made numerous minor stylistic changes.

The 2019 amendment substituted “rules” for “regulations” in (b)(3) and (c)(3).

17-12-403. Offices.

1. Each office established or maintained in this state for the practice of public accounting in this state by a certified public accountant, public accountant, or firm shall be registered annually with the Arkansas State Board of Public Accountancy under this chapter.
2. No fee shall be charged for the registration of one (1) office. The board at its discretion may require an annual fee to be paid for each additional office registered. The amount of the fee shall be established by board rule.
3. Each office shall be under the direct supervision of a resident manager who may be either the sole proprietor or an owner of the firm or a staff employee licensed under this chapter. The title or designation “certified public accountant” or the abbreviation “CPA” shall not be used in connection with an office unless the resident manager is the holder of a certificate as a certified public accountant which is in full force and effect. The resident manager may serve in such a capacity at one (1) office only.
4. The board shall prescribe by rule the procedure to be followed in effecting such registrations.

History. Acts 1975, No. 160, § 10; A.S.A. 1947, § 71-620; Acts 1997, No. 242, § 11; 1999, No. 180, §§ 25, 26; 2019, No. 315, § 1339.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (d).

17-12-404. Licensees associated with unregistered firms.

1. A licensee shall not perform attest services in any partnership, corporation, limited liability company, or other entity which is not registered under this subchapter.
2. Any licensee who performs or offers to perform professional services other than attest services while employed by or associated with any sole proprietor, partnership, corporation, limited liability company, or any other entity not registered with the Arkansas State Board of Public Accountancy shall not permit his or her name and the title “certified public accountant” or “CPA” or “public accountant” or “PA” to be used by the unregistered entity on any sign, card, electronic transmission, letterhead, financial statement or report, or any advertisement or directory without indicating thereon or therein that the sole proprietor, partnership, corporation, limited liability company, or other entity is not registered with the board.

History. Acts 1975, No. 160, § 6; A.S.A. 1947, § 71-616; Acts 1999, No. 180, § 27.

17-12-405. [Repealed.]

Publisher's Notes. This section, concerning registration of public accountants, was repealed by Acts 1999, No. 180, § 28. The section was derived from Acts 1985, No. 117, § 1; A.S.A. 1947, § 71-615.1.

17-12-406. [Repealed.]

Publisher's Notes. This section, concerning licensees associated with an unregistered firm, was repealed by Acts 1999, No. 180, § 29. The section was derived from Acts 1997, No. 242, § 12.

Subchapter 5 — License Renewal

Effective Dates. Acts 1975, No. 160, § 25: July 1, 1975.

Acts 1979, No. 432, § 10: Mar. 20, 1979. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to properly define, describe and classify all revenues and other income which are required to be deposited in the State Treasury, it is necessary that the provisions of this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1987, No. 824, § 5: July 1, 1989.

Acts 1999, No. 180, § 41: Jan. 1, 2000.

17-12-501. Renewal of license.

The Arkansas State Board of Public Accountancy shall renew licenses to persons who make application and demonstrate that their qualifications are in accordance with the provisions of this chapter.

History. Acts 1975, No. 160, § 11; 1979, No. 432, § 5; A.S.A. 1947, § 71-621; Acts 1997, No. 242, § 13; 1999, No. 180, § 31.

17-12-502. Continuing education requirement.

1. Every application for renewal of a license by any person who holds a certificate as a certified public accountant or registration as a public accountant shall be accompanied or supported by such evidence as the Arkansas State Board of Public Accountancy shall prescribe, documenting completion of forty (40) hours of acceptable continuing education, approved by the board, during the twelve-month period immediately preceding the expiration date of the license, or one hundred twenty (120) hours of acceptable continuing education approved by the board, during the thirty-six-month period immediately preceding the expiration date of the license.
2. Failure by an applicant for renewal of a license to furnish such evidence shall constitute grounds for revocation, suspension, or refusal to issue or renew such a license in a proceeding under § 17-12-601 unless the board in its discretion shall determine the failure to have been due to reasonable cause.
3. The board in its discretion may renew a license despite failure to furnish evidence of satisfaction of requirements of continuing education and may renew a license to an applicant who has previously maintained inactive status under § 17-12-505 upon the condition that the applicant follow a particular program or schedule of continuing education.
4. In issuing rules and individual orders in respect to requirements of continuing education, the board in its discretion:
   1. May, among other things, use and rely upon guidelines and pronouncements of recognized educational and professional associations;
   2. May prescribe content, duration, and organization of courses;
   3. Shall take into account the accessibility to applicants of such continuing education as it may require;
   4. Shall consider any impediments to interstate practice of public accountancy which may result from differences in the requirements in other states; and
   5. May provide for relaxation or suspension of the requirements in regard to applicants who certify that they do not intend to engage in the practice of public accountancy and for instances of individual hardship.
5. The board is authorized to prescribe rules, procedures, and policies in the manner and condition under which credit shall be given for participation in a program of continuing education that the board may deem necessary and appropriate to maintain the highest standard of proficiency in the profession of public accounting.
6. Examples of programs of continuing education which will be acceptable include, but are not limited to, programs or seminars sponsored by higher education institutions, government agencies, professional organizations of certified public accountants and public accountants, and firms of certified public accountants and public accountants.
7. The board is authorized to prescribe conditions under which sponsors of continuing education programs must register with the board or a third party approved by the board in order for the programs to be acceptable to the board. A fee for the registration may be charged in an amount established by board rule. In the event the board provides for registration with a third party, the fee charged by the third party may be charged to and paid by the sponsor.
8. The board in its discretion may require licensees to provide evidence of compliance with the requirements of this section and may investigate licensees to verify compliance with this section. All persons acting on behalf of the board in connection with such investigations shall be considered officers or employees of the State of Arkansas for purposes of:
   1. Immunity from civil liability pursuant to § 19-10-301 et seq.; and
   2. Payment of actual damages on behalf of state officers or employees pursuant to § 21-9-201 et seq.

History. Acts 1975, No. 160, § 11; 1979, No. 432, § 5; A.S.A. 1947, § 71-621; Acts 1997, No. 242, §§ 14, 15; 1999, No. 180, § 32; 2005, No. 54, § 13; 2019, No. 315, § 1340.

Amendments. The 2005 amendment substituted “expiration date of the license” for “date of application” and “date of the application” in (a).

The 2019 amendment deleted “regulations” following “rules” in the introductory language of (d); and substituted “rules” for “regulations” in (e).

17-12-503. [Repealed.]

Publisher's Notes. This section, concerning the experience requirement, was repealed by Acts 1999, No.180, § 33. The section was derived from Acts 1975, No. 160, § 11; 1979, No. 432, § 5; A.S.A. 1947, § 71-621; Acts 1997, No. 242, § 16.

17-12-504. Renewals and renewal fees.

1. 1. Individual certified public accountants and public accountants shall pay an annual fee in an amount to be determined by Arkansas State Board of Public Accountancy rule.
   2. Unless otherwise provided by board rule, all licenses shall expire on December 31 of each year and may be renewed annually for a period of one (1) year by current licensees in good standing upon payment of the annual renewal fee.
2. 1. A firm registered with the board shall pay an annual registration fee in an amount to be determined by board rule.
   2. Unless otherwise provided by board rule, all firm registrations shall expire on December 31 of each year and may be renewed annually for a period of one (1) year by registrants in good standing upon payment of the annual renewal fee.
3. The board may establish a reduced renewal fee for any licensee who has attained a specified age and has met all other qualifications determined by the board.
4. 1. A licensee may choose not to renew a license by notifying the board in writing before the expiration date of the license.
   2. The licensee shall surrender the license to the board immediately upon its expiration or otherwise comply with board rules concerning the disposition of the license.
5. A licensee who complies with the requirements of subsection (d) of this section may apply to renew or reinstate his or her license or to receive a new license as provided in this section.
6. 1. Beginning the first day of the first month after expiration, each licensee shall pay a monthly penalty for the late renewal of a license or registration in an amount determined by the board.
   2. If the license or registration is not renewed by the first day of the fourth month after expiration, the license or registration shall lapse.
7. 1. Upon application received within three (3) years following the expiration of a license, the board may reinstate a lapsed license.
   2. A license may be reinstated if the applicant:
      1. Pays a reinstatement fee determined by the board; and
      2. Complies with continuing professional education and any other requirements applicable to:
         1. The renewal of the license at the date of its expiration; and
         2. The reinstatement of the license at the date of the application for reinstatement.
8. 1. Any license or registration that is not reinstated within three (3) years following expiration shall be void and shall not be subject to renewal or reinstatement.
   2. The holder of a void license or registration may apply for a new license or registration under § 17-12-301 et seq. or § 17-12-401 et seq.
   3. The board may require the applicant to comply with educational or other requirements deemed appropriate by the board, including successful completion of the examination identified in § 17-12-304 in order to obtain a new license.
9. Any licensee who fails to timely renew his or her license to practice shall not perform attest services as defined in § 17-12-103(a)(2) until he or she has obtained a license to practice under this subsection.

History. Acts 1975, No. 160, § 11; 1979, No. 432, § 5; A.S.A. 1947, § 71-621; Acts 1997, No. 242, § 17; 1999, No. 180, § 34; 2005, No. 54, § 14; 2013, No. 90, § 6.

Amendments. The 2005 amendment inserted “Unless otherwise provided by board rule” at the beginning of (a)(2) and (b)(2); substituted “current licensee” for “certificate holders and registrants” in (a)(2); and added (c)-(j).

The 2013 amendment repealed former (i).

17-12-505. Inactive status.

1. The Arkansas State Board of Public Accountancy may by rule create an exception to the continuing education requirement of § 17-12-502 for licensees who do not perform or offer to perform for the public:
   1. One (1) or more kinds of services involving the use of accounting or auditing skills, including issuance of reports on financial statements;
   2. One (1) or more kinds of management advisory, financial advisory, or consulting services;
   3. The preparation of tax returns; or
   4. The furnishing of advice on tax matters.
2. A licensee granted an exception under subsection (a) of this section by the board shall place the word “inactive” adjacent to his or her CPA title or PA title on any business card, letterhead, electronic transmission, or any other document or device, with the exception of his or her CPA certificate or PA registration, on which his or her CPA or PA title appears.
3. The following activities are exempted from the restrictions provided in subsection (a) of this section:
   1. Attorneys with a current law license may provide tax services as allowed by his or her law license while his or her CPA or PA license is on inactive status;
   2. A nonresident licensee who holds an active CPA or PA license to practice in his or her state of residence may engage in the activities permitted by the license issued by the state of residence while his or her Arkansas CPA or PA license remains inactive, but he or she may not engage in the activities listed in subsection (a) of this section within this state, for clients who are residents of this state, or for clients whose home office is located in this state without an active Arkansas CPA or PA license;
   3. An inactive licensee may provide services listed in subsection (a) of this section on a volunteer basis if no compensation is received, the services are not attest services, and no documents are signed as a CPA or PA by the inactive licensee; and
   4. An inactive licensee who has returned to work involving the practice of public accounting and has applied with the board to upgrade his or her license to active status may engage in the activities listed in subsection (a) of this section if he or she is supervised by another active licensee and no documents are signed as a CPA or PA by the inactive licensee until his or her application is approved by the board.

History. Acts 1975, No. 160, § 11; 1979, No. 432, § 5; A.S.A. 1947, § 71-621; Acts 1999, No. 180, § 35; 2019, No. 452, § 1.

Amendments. The 2019 amendment designated the existing provisions as (a) and (b); in (b), inserted “under subsection (a) of this section” and substituted “shall” for “must”; added (c); and made stylistic changes.

17-12-506. [Repealed.]

Publisher's Notes. This section, concerning reinstatement, was repealed by Acts 2005, No. 54, § 15. The section was derived from Acts 1975, No. 160, § 11; 1979, No. 432, § 5; A.S.A. 1947, § 71-621; Acts 1999, No. 180, § 36.

17-12-507. Quality review of each practice unit.

1. The Arkansas State Board of Public Accountancy may by rule require as a condition for the renewal of a license a quality review of each practice unit maintained in this state.
2. 1. The board may charge the accountant or firm reviewed a fee for each:
      1. Quality review of each practice unit; and
      2. Follow-up action to a quality review that is not in conformity with applicable professional standards.
   2. The amount of the fee shall be established by board rule.
3. 1. The quality review shall consist of either a uniform or random annual submission by each licensee of the following kinds of reports issued by that licensee during the twelve-month period immediately preceding the date of submission, if reports were issued during the period:
      1. A compilation report;
      2. A review report;
      3. An agreed-upon procedures report;
      4. An audit report;
      5. An audit report under a federal grant program or other government program; and
      6. An examination of prospective financial information.
   2. If none of the above reports were issued during the twelve (12) months immediately preceding the date of submission, a licensee is required to submit reports issued since the date of its last quality review survey submission.
4. All persons acting on behalf of the board in a quality review program under this section shall be considered officers or employees of the State of Arkansas for purposes of:
   1. Immunity from civil liability pursuant to § 19-10-301 et seq.; and
   2. Payment of actual damages on behalf of state officers or employees pursuant to § 21-9-201 et seq.
5. All financial statements, working papers, or other documents obtained from applicants for quality review shall be confidential and shall not be subject to public inspection except pursuant to an order of a court of competent jurisdiction. However, the documents may be introduced as evidence in any relevant proceedings before the board.
6. For purposes of this section, a “practice unit” shall be deemed to be any firm registered with the board under § 17-12-401 et seq., and any licensee not employed by or associated with any firm registered with the board under § 17-12-401 et seq. but who has issued one (1) or more compilation reports.
7. 1. Notwithstanding any provision to the contrary in this chapter, a certified public accountant, public accountant, or firm of certified public accountants or public accountants currently licensed by another state or foreign country shall not be required to obtain a license under this chapter for the sole purpose of conducting peer review as defined by board rule of a licensee in this state and may use the applicable title “certified public accountant” or “public accountant” or abbreviation “CPA” or “PA” solely in conjunction with the peer review activities.
   2. Any certified public accountant, public accountant, or firm of certified public accountants or public accountants, whether licensed in this state or in another jurisdiction, shall meet standards adopted by the board to accomplish the goals of this chapter in order to qualify to perform peer review of licensees under this chapter.
8. Effective January 1, 2019, licensees that are required to enroll in peer review under § 17-12-508 are exempt from the requirements of this section and the rules of the board implementing this section.
9. The requirements of subdivisions (c)(1)(B)-(F) of this section expire on December 31, 2018.

History. Acts 1987, No. 824, §§ 1-3; 1999, No. 180, § 37; 2005, No. 54, § 16; 2013, No. 90, § 7; 2017, No. 278, § 2.

Amendments. The 2005 amendment redesignated former (a) as present (a) and (c); inserted present (b); redesignated former (b)-(d) as present (d)-(f); and added (g).

The 2013 amendment rewrote (c).

The 2017 amendment added (h) and (i).

17-12-508. Peer review.

1. 1. Beginning January 1, 2019, the Arkansas State Board of Public Accountancy shall by rule require licensees who perform attest services to enroll in an approved peer review program and have a peer review one (1) time every three (3) years.
   2. Licensees who perform compilation or preparation of financial statements as their highest level of service shall be excluded from the peer review requirement under this section.
2. Peer reviews shall be conducted in accordance with standards that the board sets by rule.
3. Licensees who fail to obtain peer review ratings required by the board or who otherwise fail to comply with peer review standards established or adopted by the board are subject to sanctions under § 17-12-602.
4. 1. All financial statements, working papers, or other documents obtained from licensees or applicants for peer review shall be confidential and shall not be subject to public inspection except under an order of a court of competent jurisdiction.
   2. 1. The documents deemed confidential under subdivision (d)(1) of this section shall be exempt from disclosure under the Freedom of Information Act of 1967, § 25-19-101 et seq.
      2. Documents exempted under subdivision (d)(2)(A) of this section may be introduced as evidence in any relevant proceeding before the board.

History. Acts 2017, No. 278, § 3.

Subchapter 6 — Revocation and Suspension

Effective Dates. Acts 1975, No. 160, § 25: July 1, 1975.

Acts 1979, No. 432, § 10: Mar. 20, 1979. Emergency clause provided: “It has been found and is hereby declared by the General Assembly of the State of Arkansas that in order to properly define, describe and classify all revenues and other income which are required to be deposited in the State Treasury, it is necessary that the provisions of this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall take effect and be in full force from and after its passage and approval.”

Acts 1999, No. 180, § 41: Jan. 1, 2000.

17-12-601. Grounds generally.

1. The following acts, conduct, or practices are prohibited, and any licensee or holder of a practice privilege found guilty by the Arkansas State Board of Public Accountancy of the acts, conducts, or practices shall be subject to disciplinary action as provided in § 17-12-602 after notice and hearing as provided in § 17-12-603:
   1. Fraud, dishonesty, or deceit in obtaining or attempting to obtain a certificate or registration as a certified public accountant or public accountant, registration of a firm, or a practice privilege under this chapter;
   2. Dishonesty, fraud, or gross negligence in the practice of public accountancy;
   3. Violation of any of the provisions of this chapter;
   4. Violation of a rule of professional conduct or other rule promulgated by the board under the authority granted by this chapter;
   5. Conviction of a felony under § 17-3-102;
   6. Conviction of any crime an element of which is dishonesty or fraud under the law of any state or of the United States;
   7. Imposition of any sanction or disciplinary action, other than for failure to pay annual fees, by the United States Securities and Exchange Commission, Public Company Accounting Oversight Board, Internal Revenue Service, or other federal or state agency or foreign authority or credentialing body that regulates public accounting regarding the licensee's conduct while rendering public accounting or other professional services;
   8. Conduct discreditable to the public accounting profession; and
   9. Violation of any board order or agreement for the resolution of asserted violations of this chapter, a board rule of professional conduct, or other board rule.
2. The board may deny an application for a license, registration, certificate, or practice privilege if it finds the applicant committed any of the acts, conduct, or practices prohibited by subsection (a) of this section.
3. In addition to the offenses listed in § 17-3-102, the Arkansas State Board of Public Accountancy may refuse to issue a license to or reinstate a license of a person who has been convicted of a felony involving theft or fraud, regardless of the amount of time that has elapsed since the conviction.

History. Acts 1975, No. 160, § 12; 1979, No. 432, § 6; A.S.A. 1947, § 71-622; Acts 1997, No. 242, § 18; 1999, No. 180, § 38; 2005, No. 54, § 17; 2019, No. 990, §§ 10, 11.

Amendments. The 2005 amendment rewrote this section.

The 2019 amendment substituted “§ 17-3-102” for “the law of any state or of the United States” in (a)(5); substituted “dishonesty or fraud under the law” for “dishonesty, fraud, or moral turpitude under the law” in (a)(6); and added (c).

17-12-602. Sanctions.

1. If a licensee or holder of a practice privilege under § 17-12-311 is found to have committed an action or omission identified in § 17-12-601, the Arkansas State Board of Public Accountancy may impose any one (1) or more of the following sanctions:
   1. Suspension, revocation, or denial of his or her license or practice privilege or the renewal thereof;
   2. A penalty not to exceed ten thousand dollars ($10,000) for each violation as well as investigation costs incurred by the board;
   3. Completion of appropriate education programs or courses;
   4. Preissuance review of audits, review reports, or compilations;
   5. Quality review conducted in such a manner as the board may specify;
   6. Successful completion of the licensing examination;
   7. Conditions or restrictions upon the license, registration, or practice privilege; and
   8. All other requirements or penalties the board finds appropriate to the circumstances of the case and that would achieve the desired disciplinary purposes but that would not impair the public welfare and morals.
2. In any proceeding in which the board finds that the licensee or holder of a practice privilege has committed any action or omission identified in § 17-12-601, the board may also require the licensee to pay the cost of the proceeding.
3. Each instance when a federal or state law or any board rule is violated shall constitute a separate violation.
4. Upon imposition of a sanction, the board may order that the license, permit, certificate, credential, registration, or practice privilege be suspended until its holder has complied in full with all applicable sanctions imposed under this section.
5. 1. The power and authority of the board to impose sanctions authorized in this section are independent of and in addition to any other civil or criminal proceeding concerning the same violation.
   2. The imposition of a penalty does not preclude the board from imposing other sanctions short of revocation.
6. The board is authorized to file suit in either the Pulaski County Circuit Court or the circuit court of any county in which the defendant resides or does business to collect any monetary penalty assessed under this chapter if the penalty is not paid within the time prescribed by the board.

History. Acts 1975, No. 160, § 13; A.S.A. 1947, § 71-623; Acts 1997, No. 242, § 19; 1999, No. 180, § 39; 2005, No. 54, § 18; 2009, No. 93, § 10; 2013, No. 90, § 8.

Amendments. The 2005 amendment rewrote this section.

The 2009 amendment, in (a), substituted “§ 17-12-311” for “§ 17-12-401(i)” and made minor stylistic changes.

The 2013 amendment rewrote (a)(2).

17-12-603. Procedure.

1. Commencement of Proceeding. The Arkansas State Board of Public Accountancy may initiate proceedings under this chapter either on its own motion or on the complaint of any person.
2. Notice—Service and Contents. A written notice stating the nature of the charges against the accused and the time and place of the hearing before the board on the charges shall be served on the accused not less than thirty (30) days before the date of the hearing either personally or by mailing a copy by certified mail with return receipt to the address of the accused last known to the board.
3. Failure to Appear. If, after having been served with the notice of hearing, the accused fails to appear at the hearing and defend, the board may proceed to hear evidence against him or her and may enter any order as shall be justified by the evidence, which order shall be final unless he or she petitions for a review thereof as provided herein. However, within thirty (30) days from the date of any order, upon a showing of good cause for failure to appear and defend, the board may reopen the proceedings and may permit the accused to submit evidence in his or her behalf.
4. Rights of Accused. At any hearing the accused may appear in person and by counsel, produce evidence and witnesses on his or her own behalf, cross-examine witnesses, and examine such evidence as may be produced against him or her. A corporation may be represented before the board by counsel or by a shareholder who is a certified public accountant or public accountant of this state in good standing. The accused shall be entitled, on application to the board, to the issuance of subpoenas to compel the attendance of witnesses on his or her behalf.
5. Subpoenas—Oaths. The board or any member thereof may issue subpoenas to compel the attendance of witnesses and the production of documents and may administer oaths, take testimony, hear proofs, and receive exhibits in evidence in connection with or upon hearing under this chapter. In case of disobedience to a subpoena, the board may invoke the aid of any court of this state in requiring the attendance and testimony of witnesses and the production of documentary evidence.
6. Evidence. The board shall not be bound by technical rules of evidence.
7. Record. A stenographic record of the hearings shall be kept, and a transcript filed with the board.
8. Attorney for the Board. At all hearings, the board's legal counsel shall appear and represent the board.
9. Decision. The decision of the board shall be by majority vote.
10. Judicial Review. Anyone adversely affected by any order of the board shall be entitled to pursue all rights and remedies available under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1975, No. 160, § 14; 1979, No. 432, § 7; A.S.A. 1947, § 71-624; Acts 2017, No. 277, § 3.

Amendments. The 2017 amendment, in (b), substituted “(30) days before” for “(30) days prior to” and substituted “certified mail with return receipt” for “registered mail”.

17-12-604. Reinstatement.

Upon application in writing and after hearing pursuant to notice, the Arkansas State Board of Public Accountancy may issue a new certificate to a certified public accountant whose certificate shall have been revoked, or the board may permit the reregistration of anyone whose registration has been revoked or may reissue or modify the suspension of any license to practice public accounting which has been revoked or suspended.

History. Acts 1975, No. 160, § 15; A.S.A. 1947, § 71-625; Acts 1999, No. 180, § 40.

Publisher's Notes. For reference to registered public accountants, see § 17-12-108.

Subchapter 7 — Liability of Accountants

Effective Dates. Acts 1987, No. 661, § 5: Apr. 6, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that the liability of accountants and attorneys to persons not in privity of contract with them should be specifically outlined by legislative enactment; that this Act establishes the limits of such liability; and that this Act should go into effect as soon as possible. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

17-12-701. Applicability.

This subchapter shall apply only to acts, omissions, decisions, or other conduct in connection with professional services occurring or rendered on or after April 6, 1987.

History. Acts 1987, No. 661, § 3.

Publisher's Notes. This section is also codified as §§ 16-22-310(b) and 16-114-301.

17-12-702. No liability to persons not in privity — Exceptions.

No person, partnership, or corporation licensed or authorized to practice under this chapter, or any of its employees, partners, members, officers, or shareholders shall be liable to persons not in privity of contract with the person, partnership, or corporation for civil damages resulting from acts, omissions, decisions, or other conduct in connection with professional services performed by such a person, partnership, or corporation, except for:

1. Acts, omissions, decisions, or conduct that constitutes fraud or intentional misrepresentations; or
2. Other acts, omissions, decisions, or conduct if the person, partnership, or corporation was aware that a primary intent of the client was for the professional services to benefit or influence the particular person bringing the action. For the purposes of this subdivision (2), if the person, partnership, or corporation:
   1. Identifies in writing to the client those persons who are intended to rely on the services; and
   2. Sends a copy of the writing or similar statement to those persons identified in the writing or statement,

then the person, partnership, or corporation or any of its employees, partners, members, officers, or shareholders may be held liable only to the persons intended to so rely, in addition to those persons in privity of contract with such a person, partnership, or corporation.

History. Acts 1987, No. 661, § 1.

Publisher's Notes. This section is also codified as § 16-114-302.

Acts 1993, No. 1003, § 1316, which repeals laws in conflict with the Small Business Entity Tax Pass Through Act, § 4-32-101 et seq., and amends provisions relating to professional service, is codified as § 4-32-1316, and provides, in part: “By way of example and not by way of limitation of the foregoing, § 17-12-702 presently applies to persons, partnerships, and corporations and shall hereafter be deemed to apply to persons, partnerships, corporations, and limited liability companies.”

17-13-101. Title.

This chapter shall be known as the “Agricultural Consultants Licensing Act of 1987”.

History. Acts 1987, No. 609, § 1.

17-13-102. Purpose.

It is the intent of the General Assembly that the agricultural community continue to have a choice of seeking the advice of whomever they choose regarding the areas indicated in this chapter as the functions of licensed agricultural consultants. It is also the General Assembly's intent that by providing a mechanism whereby persons may be licensed by the State Plant Board as agricultural consultants, they may thereby hold themselves out as “licensed agricultural consultants” which will inform the public that they have met the qualifications required by this chapter.

History. Acts 1987, No. 609, § 3.

17-13-103. Functions of licensed agricultural consultant.

A licensed agricultural consultant is a person who is licensed by the State Plant Board to perform the following functions:

1. Provide advice or prescriptions for the control or eradication of any insect or mite pest;
2. Provide advice or prescriptions for the control or eradication of any plant pathogen, including nematodes;
3. Provide advice or prescriptions for the control or eradication of any weed;
4. Provide advice or prescriptions for the use of fertilizer, lime, or micronutrients based on soil classification and cropping systems and soil or plant tests; and
5. Provide other functions as the board may deem appropriate.

History. Acts 1987, No. 609, § 2; 2005, No. 857, § 1.

Amendments. The 2005 amendment added (5) and made related changes.

17-13-104. Inapplicable to forestry consultants.

This chapter shall in no way apply to:

1. Forestry consultants or in any way restrict or regulate forestry consultants; or
2. State, federal, or local government employees or employees of local conservation districts or in any way restrict or regulate those employees while they are working in their official capacity.

History. Acts 1987, No. 609, § 11; 2005, No. 857, § 2.

Amendments. The 2005 amendment inserted the subdivision (1) designations and made related changes; and added (2).

17-13-105. Penalty.

Any person who holds himself or herself out as a licensed agricultural consultant and who is not licensed as an agricultural consultant by the State Plant Board shall be subject to a fine not to exceed six hundred dollars ($600) for the first offense and not to exceed one thousand dollars ($1,000) for subsequent offenses.

History. Acts 1987, No. 609, § 9; 2005, No. 857, § 3.

Amendments. The 2005 amendment substituted “six hundred dollars ($600) for the first offense and not to exceed one thousand dollars ($1,000) for subsequent offenses” for “one hundred dollars ($100) for the first offense and not to exceed five hundred dollars ($500) for subsequent offenses.”

17-13-106. Administration.

The State Plant Board shall:

1. Administer and enforce this chapter;
2. Promulgate, pursuant to the Arkansas Administrative Procedure Act, § 25-15-201 et seq., rules necessary for the implementation of this chapter;
3. Establish annual license fees not to exceed one hundred dollars ($100);
4. Formulate criteria for continuing educational training of licensed agricultural consultants in cooperation with the cooperative extension service; and
5. Revoke or suspend any agricultural consultant's license for cause.

History. Acts 1987, No. 609, § 4; 2005, No. 857, § 4; 2019, No. 315, § 1341.

Amendments. The 2005 amendment substituted “one hundred dollars ($100)” for “fifty dollars ($50.00)” in (3).

The 2019 amendment substituted “rules” for “regulations” in (2).

17-13-107. Requirements for licensing.

1. 1. No person may provide agricultural consulting for a fee that is directly tied to and identifiable with agricultural consulting without a license issued by the State Plant Board under this chapter.
   2. A person who provides agricultural consulting without charging a fee may be licensed under this chapter if the person meets the requirements of this chapter.
2. Within the first year after August 12, 2005, a person may be licensed as an agricultural consultant if the person:
   1. Is currently licensed as an agricultural consultant by the board;
   2. Is certified under the Certified Crop Advisors Program of the American Society of Agronomy;
   3. Is certified by the National Alliance of Independent Crop Consultants; or
   4. Has at least five (5) years of agricultural consultant-related experience.
3. From two (2) to five (5) years after August 12, 2005, a person may be licensed as an agricultural consultant if the person:
   1. Has completed two (2) full years of training at a college or university acceptable to the board, with at least nine (9) semester hours of credit or their equivalent in appropriate agricultural disciplines;
   2. Has three (3) years of experience in the field of crop management; and
   3. Passes a written examination administered by the board or by certified crop advisors.
4. Beyond the fifth year after August 12, 2005, a person may be licensed as an agricultural consultant if:
   1. The person has:
      1. A minimum of a bachelor's degree in a board-approved crop related field and two (2) years of experience working in the field of crop management; or
      2. Seven (7) years of continuous experience working for a licensed agricultural consultant after August 12, 2005; and
   2. The person passes a written examination administered by the board or by certified crop advisors.

History. Acts 1987, No. 609, § 5; 2005, No. 857, § 5.

Amendments. The 2005 amendment rewrote this section.

17-13-108. Issuance of license — Expiration.

If the educational qualifications are met, all required examinations are successfully passed, and all required fees paid, a license shall be issued by the State Plant Board. The licenses shall expire on December 31 of each year unless sooner revoked, cancelled, or suspended by the board for cause and shall be renewable pursuant to board rules. No license issued by the board shall be assignable or transferable.

History. Acts 1987, No. 609, § 7.

17-13-109. Promotional compensation restricted — Exception.

No licensed agricultural consultant shall accept money or any other thing of value in excess of two hundred dollars ($200) from any person or entity for recommending or otherwise promoting a particular product by virtue of his or her position as a licensed agricultural consultant. However, this section shall not be construed or interpreted as prohibiting licensed agricultural consultants from engaging in and receiving compensation for agricultural research. The State Plant Board may suspend or revoke the license of any person which the board determines to have violated this section.

History. Acts 1987, No. 609, § 8.

17-13-110. Disposition of fees.

All fees collected by the State Plant Board under this chapter shall be deposited into the State Treasury as special revenues and credited to the Plant Board Fund.

History. Acts 1987, No. 609, § 10.

Subchapter 1 — General Provisions

Effective Dates. Acts 1991, No. 416, § 17: Mar. 8, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that minimum standards must be provided for the licensing and certification of appraisers in accordance with the requirements of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and that there will continue to be a need to provide adequate protection and safeguards for the public; that such provision should be enacted immediately; and that this act would so provide. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from its passage and approval.”

Acts 1991, No. 541, § 17: Mar. 14, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that minimum standards must be provided for the licensing and certification of appraisers in accordance with the requirements of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and that there will continue to be a need to provide adequate protection and safeguards for the public; that such provision should be enacted immediately; and that this act would so provide. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from its passage and approval.”

Acts 2009, No. 628, § 20: Jan. 1, 2010. Effective date clause provided: “This act takes effect January 1, 2010.”

Acts 2017, No. 535, § 12: Mar. 20, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Appraiser Licensing and Certification Board is unable to comply with Appraisal Subcommittee policy statement requirements concerning the issuance of out-of-state appraiser temporary practice permits; that timely issuance of these permits is of great importance; and that this act is immediately necessary because the delay in issuing these credentials causes undue stress on both Arkansas taxpayers seeking real estate appraisals and appraisers. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

17-14-101. Title.

Section 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq. shall be known and may be cited as the “Arkansas Appraiser Licensing and Certification Act”.

History. Acts 1991, No. 416, § 1; 1991, No. 541, § 1; 2009, No. 628, § 2.

Amendments. The 2009 amendment substituted “Section 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq. shall” for “This chapter will.”

17-14-102. Necessity for registration, license, or certificate.

1. 1. The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., is created in response to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and specifies three (3) classes of appraisers: state-licensed, state-certified residential, and state-certified general appraisers for federally related transactions.
   2. A fourth class is created for nonfederally related transactions, which shall be known as “state-registered appraisers”.
   3. A fifth class is created for an appraiser who is subject to direct control and supervision by a qualified state-certified appraiser supervisor as part of upgrading his or her classification to state-licensed or state-certified, which shall be known as “registered apprentice appraiser”.
2. It is the intent of the General Assembly that this law be no more restrictive than required under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

History. Acts 1991, No. 416, §§ 7, 13; 1991, No. 541, §§ 7, 13; 1993, No. 413, § 1; 2001, No. 1256, § 1; 2009, No. 628, § 3; 2019, No. 514, § 1.

Amendments. The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.,” for “This chapter” in (a), and made minor stylistic and punctuation changes.

The 2019 amendment redesignated former (a) as (a)(1) and (a)(2); and added (a)(3).

U.S. Code. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, referred to in this section, is codified as 12 U.S.C. §§ 3310 and 3331 et seq.

17-14-103. Definitions.

As used in the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.:

1. “Appraisal”:
   1. As a noun, means the act or process of estimating value or an estimate of value; and
   2. As an adjective, means of or pertaining to appraising and related functions, i.e., appraisal practice and appraisal services;
2. “Appraisal Foundation” and “foundation” mean the Appraisal Foundation established on November 30, 1987, as a not-for-profit corporation under the laws of Illinois;
3. “Appraisal practice” and “appraisal services” mean the work or services performed by appraisers for clients;
4. “Appraisal Standards Board” means the board created under Article XI, sections 11.01 — 11.13 inclusive, of the bylaws of the Appraisal Foundation, as amended April 22, 1990;
5. “Appraisal Subcommittee” means the subcommittee of the Federal Financial Institutions Examination Council established under Title XI, the Real Estate Appraisal Reform Amendments of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, section 1102, by amendment to the Federal Financial Institutions Examination Council Act of 1978, 12 U.S.C. § 3301 et seq., through the addition of new section 1011, “Establishment of Appraisal Subcommittee”;
6. “Appraiser” or “real estate fee appraiser” means any person who, for a fee or other consideration, develops and communicates a real estate appraisal or otherwise gives an opinion of the value of real estate or any interest in real estate;
7. “Appraiser Qualifications Board” means the board created under Article XII, sections 12.01 — 12.08 inclusive, of the bylaws of the Appraisal Foundation, as amended April 22, 1990;
8. “Board” means the Arkansas Appraiser Licensing and Certification Board established under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
9. “Client” means any person for whom an appraiser performs a service;
10. “Federal financial institutions regulatory agencies” means the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, the United States Office of the Comptroller of the Currency, the Office of Thrift Supervision, and the National Credit Union Administration;
11. “Federally related transaction” means any real estate-related financial transaction which:
    1. A financial institution, a federal financial institution's regulatory agency, or the Federal Deposit Insurance Corporation engages in, contracts for, or regulates; and
    2. In accordance with any federal law, rule, or regulation, as the same may be amended, requires the services of an appraiser;
12. “Financial institution” means an insured depository institution as defined in the Federal Deposit Insurance Act, 12 U.S.C. § 1813(c)(2), or an insured credit union as defined in section 101 of the Federal Credit Union Act, 12 U.S.C. § 1751 et seq.;
13. “Independent appraisal assignment” means any engagement for which an appraiser is employed or retained to act or to be perceived by third parties or the public as acting as a disinterested third party in rendering an unbiased analysis, opinion, evaluation, or conclusions relating to the nature, quality, value, or utility identified as real estate or real property;
14. “Market analysis” or “broker's price opinion” means a proposed sale price opinion or recommended listing price given by a licensed real estate broker, salesperson, or other to a potential seller, purchaser, or third party;
15. “Personal property” means identifiable portable and tangible objects which are considered by the general public as being “personal”, e.g., furnishings, artwork, antiques, gems and jewelry, collectibles, machinery and equipment; all property that is not classified as real estate;
16. “Real estate” means an identified parcel or tract of land, including improvements, if any;
17. 1. “Real estate appraisal” means an unbiased estimate of the nature, quality, value, or utility of an interest in, or aspect of, identified real estate and related personalty.
    2. 1. A real estate appraisal may be classified by subject matter into either a valuation or an evaluation.
       2. Valuation is the process of estimating the market value, investment value, insurable value, or other properly defined value of an identified interest or interests in a specific parcel or parcels of real estate as of a given date.
       3. Evaluation or analysis is the study of the nature, quality, or utility of a parcel of real estate, or interests in or aspects of real property, in which a value estimate is not necessarily required, i.e., a study of real estate or real property other than estimating value;
18. “Real estate-related financial transaction” means any transaction involving:
    1. The sale, lease, purchase, investment in, or exchange of real property, including interests in property, or the financing thereof;
    2. The refinancing of real property or interests in real property; and
    3. The use of real property or interests in property as security for a loan or investment, including mortgage-backed securities;
19. “Real property” means interest, benefits, and rights inherent in the ownership of real estate;
20. 1. “Registered apprentice appraiser” means an individual who has satisfied the requirements for apprentice appraiser by the Appraiser Qualifications Board and who is subject to direct control and supervision by a qualified state-certified appraiser supervisor as a part of upgrading his or her classification to state-licensed or state-certified.
    2. The scope of practice for a registered apprentice appraiser is the appraisal of properties that the state-certified appraiser supervisor is permitted by his or her current credential and competent to appraise;
21. “Report” means:
    1. Any communication, written or oral, of an appraisal, review, or analysis;
    2. The document that is transmitted to the client upon completion of an assignment; or
    3. The tangible expression of an appraiser's service;
22. “Review” means the act or process of critically studying a report prepared by another;
23. “State-certified general appraiser” means any individual who has satisfied the requirements for state certification in the State of Arkansas and who is qualified to perform appraisals of all real property types of any monetary size and complexity;
24. “State-certified residential appraiser” means any individual who has satisfied the requirements for state certification in the State of Arkansas and who is qualified to perform appraisals of all property types up to a monetary size and complexity as prescribed by the Appraiser Qualifications Board and the federal financial institutions regulatory agencies;
25. “State-licensed appraiser” means any individual who has satisfied the requirements for state licensing in the State of Arkansas and who is qualified to perform appraisals of all property types up to a monetary size and complexity as prescribed by the Appraiser Qualifications Board and the federal financial institutions regulatory agencies;
26. “State-registered appraiser” means any person who has satisfied the requirements for a state-registered appraiser credential as set forth in § 17-14-307 or requirements as may have been determined by the Arkansas Appraiser Licensing and Certification Board and who may perform appraisals on any type of property except when the purpose of the appraisal is for use in federally related transactions;
27. “Uniform Standards of Professional Appraisal Practice” means the entire body of rules, definitions, binding requirements, guidelines, explanatory comments, and ethical conduct provisions, as promulgated by the Appraisal Standards Board of the Appraisal Foundation, which provide the basis for an individual to conduct the practice of professional appraisal with integrity, objectivity, and independent judgment and in an ethical manner; and
28. “Written appraisal” means the conclusions of an appraiser's valuation analysis communicated to the client in writing.

History. Acts 1991, No. 416, § 2; 1991, No. 541, § 2; 1993, No. 413, § 2; 1993, No. 1270, § 1; 2001, No. 1256, § 2; 2009, No. 628, §§ 4, 5; 2017, No. 535, § 1; 2019, No. 514, § 2.

A.C.R.C. Notes. The Office of Thrift Supervision referred to in this section was abolished by the Dodd-Frank Wall Street Reform and Consumer Protection Act, Pub. L. No. 111-203. The responsibilities of the former entity have been largely assumed by the Office of the Comptroller of the Currency.

Congress passed the Resolution Trust Corporation Completion Act of 1993, Pub. L. No. 103-204, to structure the dismantling of the federal Resolution Trust Corporation and transfer the records, responsibilities, assets, and liabilities of the Resolution Trust Corporation to the Federal Deposit Insurance Corporation.

Publisher's Notes. The Resolution Trust Corporation, referred to in this section, was abolished by the “Resolution Trust Corporation Refinancing, Restructuring, and Improvement Act of 1991”, Pub. L. No. 102-233. Corporation functions terminated pursuant to the “Resolution Trust Corporation Completion Act”, Pub. L. No. 103-204.

Amendments. The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.” for “this chapter” in the introductory language; and substituted “under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.” for “pursuant to this chapter” in (8).

The 2017 amendment inserted “general” in (22); and substituted “Appraiser Qualifications Board” for “Appraisal Subcommittee” in (23) and (24).

The 2019 amendment inserted (20) and redesignated the remaining subdivisions accordingly; substituted “for a state-registered appraiser credential as set forth” for “for registering as set forth” in (26); and rewrote (28).

U.S. Code. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, referred to in this section, is codified as 12 U.S.C. §§ 3310 and 3331 et seq.

Section 1102 of the act is codified as 12 U.S.C. § 3310.

17-14-104. Exceptions to registration, licensing, or certification.

1. 1. 1. Except when an interstate transaction or a federally related transaction is involved, the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., does not apply to a real estate broker or sales person licensed by this state who:
         1. In the ordinary course of his or her business, gives to a potential seller or third party a written report called a market analysis or a broker's price opinion as to the recommended listing price of real estate or an opinion to a potential purchaser or third party as to the recommended price of real estate; or
         2. Provides testimony regarding an opinion of the value of real property under § 28-51-302.
      2. A broker's price opinion or a market analysis issued in this state in connection with an interstate transaction or a federally related transaction shall not contain the term “appraisal” or the term “market value”.
      3. The prohibition in subdivision (a)(1)(B) of this section does not apply to an intrastate, nonfederally related broker's price opinion or market analysis.
   2. 1. The listing price, purchase price, market analysis, or broker's price opinion may be treated as an appraisal solely for the purposes of § 28-51-302.
      2. A real estate broker who provides testimony regarding an opinion of the value of real property that may be treated as an appraisal for purposes of § 28-51-302 shall nonetheless be exempt from registration as an appraiser under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
2. 1. 1. The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., does not apply to any state, county, or municipal public officer or employee while the officer or employee is performing appraisal or appraisal-related duties as the officer or employee.
      2. Appraisals performed by state, county, or municipal officers or employees outside the scope of their employment are subject to the provisions of the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
   2. The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., does not apply to:
      1. Persons performing appraisals as officers or staff of a bank, savings and loan, or credit union;
      2. Company foresters in the ordinary course of their duties; or
      3. Staff appraisers performing ad valorem tax appraisals for county assessors or employees of contractors performing county-wide reappraisals.
3. 1. Except as provided in subsection (b) of this section, appraisers, when providing appraisal reports or appraisal services in nonfederally related transactions, who become licensed or certified by the Arkansas Appraiser Licensing and Certification Board are subject to the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., in all matters involving appraisal services, including transactions below the federally established threshold.
   2. If an appraiser does not make appraisals for any federal agency, any federally insured lending institution, the Federal Housing Administration, the Federal National Mortgage Association, the Federal Deposit Insurance Corporation, the United States Bankruptcy Courts, the Federal Highway Administration, the Federal Aviation Administration, the United States Department of Veterans Affairs, the Internal Revenue Service, or any other federal or quasi-federal authority, including appraisal work that is distributed via interstate commerce or appraisals involving transactions above the threshold established by a federal financial institutions regulatory agency, the appraiser is only required to be a state-registered appraiser under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
4. The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., shall not preclude any person from testifying as an expert witness in any judicial proceeding in which the value of real estate is in issue unless that person holds himself or herself out as a practicing real estate fee appraiser.
5. Nothing in the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., prohibits any person who is licensed to practice in this state under any law from engaging in the practice for which he or she is licensed.

History. Acts 1991, No. 416, §§ 6, 7; 1991, No. 541, §§ 6, 7; 1993, No. 413, § 3; 1993, No. 1270, § 2; 2001, No. 1256, § 3; 2005, No. 922, § 1; 2007, No. 540, § 1; 2009, No. 628, § 6.

Amendments. The 2005 amendment inserted the subdivision (A) designation in (a)(1) and (a)(2) and made related changes: added “or” at the end of present (a)(1)(A); added (a)(1)(B) and (a)(2)(B); and rewrote present (a)(2)(A).

The 2007 amendment substituted “Except when an interstate transaction or a federally related transaction is involved, this chapter does” for “This chapter shall” in (a)(1)(A); inserted “written report called a” in (a)(1)(A)(i); added (a)(1)(B) and (C); and made related changes.

The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et. seq., and § 17-14-301 et seq.,” for “this chapter” throughout the section; and made related and minor stylistic changes.

17-14-105. Rights and privileges of appraisers.

1. A state-registered appraiser or state-licensed appraiser as defined in § 17-14-103 may appraise real property for compensation if the use of a state-certified appraiser is not required under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., or by federal or state law, rule, or policy.
2. An appraiser shall not sign an appraisal report or be cited within the report as having provided “significant real property appraisal assistance” in the development of the appraisal without having been state-registered, state-licensed, registered apprentice, or state-certified.
3. An appraiser shall not perform or be employed to perform an appraisal where the property that is subject to the assignment lies within the borders of the State of Arkansas without first being state-registered, state-licensed, registered apprentice, or state-certified by the Arkansas Appraiser Licensing and Certification Board.

History. Acts 1991, No. 416, § 7; 1991, No. 541, § 7; 2001, No. 1256, § 4; 2009, No. 628, § 7; 2019, No. 514, § 3.

Amendments. The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.,” for “this chapter” in (a), and made a related change.

The 2019 amendment substituted “privileges of appraisers” for “privileges of licensed or registered appraiser” in the section heading; inserted “appraiser” following “state-registered” in (a); inserted “registered apprentice” in (b); and added (c).

17-14-106. Absence of liability.

1. Financial institutions or affiliates hiring the services of appraisers registered, licensed, or certified by the Arkansas Appraiser Licensing and Certification Board in nonfederally related transactions, including transactions below the federally established threshold, shall not be liable to any party asserting damages due to the alleged actions of the appraiser, nor shall the financial institution or affiliate be subject to any requirements to report to the board regarding such transactions other than as may be required by the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., and the rules promulgated by the board.
2. This section does not limit the investigative or subpoena powers of the board.

History. Acts 1993, No. 1270, § 3; 2001, No. 1256, § 5; 2009, No. 628, § 8.

Amendments. The 2009 amendment, in (a), substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.,” for “this chapter” and “rules” for “regulations,” and made related and minor stylistic changes.

Subchapter 2 — Arkansas Appraiser Licensing and Certification Board

Effective Dates. Acts 1991, No. 416, § 17: Mar. 8, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that minimum standards must be provided for the licensing and certification of appraisers in accordance with the requirements of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and that there will continue to be a need to provide adequate protection and safeguards for the public; that such provision should be enacted immediately; and that this act would so provide. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from its passage and approval.”

Acts 1991, No. 541, § 17: Mar. 14, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that minimum standards must be provided for the licensing and certification of appraisers in accordance with the requirements of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and that there will continue to be a need to provide adequate protection and safeguards for the public; that such provision should be enacted immediately; and that this act would so provide. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2009, No. 628, § 20: Jan. 1, 2010. Effective date clause provided: “This act takes effect January 1, 2010.”

Acts 2015, No. 695, § 5: Mar. 25, 2015. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the appointments by the Governor for membership to the Arkansas Appraiser Licensing and Certification Board are overdue; that the criteria for eligible members to the Arkansas Appraiser Licensing and Certification Board need clarification; and that this act is immediately necessary because the Governor needs to make several appointments to the Arkansas Appraiser Licensing and Certification Board to allow the Arkansas Appraiser Licensing and Certification Board to continue carrying out its duties. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2015, No. 1124, § 6: Jan. 1, 2017.

Acts 2017, No. 535, § 12: Mar. 20, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Appraiser Licensing and Certification Board is unable to comply with Appraisal Subcommittee policy statement requirements concerning the issuance of out-of-state appraiser temporary practice permits; that timely issuance of these permits is of great importance; and that this act is immediately necessary because the delay in issuing these credentials causes undue stress on both Arkansas taxpayers seeking real estate appraisals and appraisers. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

17-14-201. Composition — Membership — Chair.

1. There is created the Arkansas Appraiser Licensing and Certification Board, to be composed of ten (10) members as follows:
   1. Seven (7) practicing certified or licensed appraisers as follows:
      1. At least five (5) of the appraiser members of the board shall be state-certified appraisers;
      2. No more than two (2) appraiser members shall reside in the same congressional district of the four (4) Arkansas congressional districts; and
      3. The seven (7) practicing appraiser members shall be representative of the various disciplines found in the appraisal profession, including without limitation residential appraisal, commercial and industrial appraisal, forestry and timberland appraisal, rural appraisal, and any other appraisal discipline that may be affected by the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
   2. One (1) board member shall be a representative of financial institutions familiar with the appraisal process;
   3. One (1) senior citizen representative; and
   4. One (1) consumer representative.
2. 1. The Governor shall appoint the members of the board subject to confirmation by the Senate and may remove a member for cause.
   2. At least five (5) real estate appraiser members appointed to the board shall be members in good standing of:
      1. A state or regional chapter of a nationally recognized real estate appraisal organization that requires an individual to have qualified appraisal experience, education, and testing in order to become a designated member and to adhere to standards of professional practice in order to retain such a designation; or
      2. The Association of Consulting Foresters of America, Inc., Arkansas Chapter.
3. 1. 1. The term of each appraiser board member shall be three (3) years.
      2. The financial member representative, the senior citizen representative, and the consumer representative shall have three-year terms.
   2. Upon expiration of their terms, members of the board shall continue to hold office until the appointment and qualification of their successors.
   3. No person shall serve as a member of the board for more than two (2) consecutive terms.
4. The members of the board will select a state-certified appraiser chair.
5. Each member of the board may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

History. Acts 1991, No. 416, §§ 3, 5; 1991, No. 541, §§ 3, 5; 1997, No. 250, § 123; 2001, No. 159, §§ 1, 2; 2009, No. 628, § 9; 2015, No. 695, §§ 1-4; 2015, No. 1100, § 20; 2015, No. 1156, § 1; 2017, No. 252, § 1; 2017, No. 535, § 2; 2017, No. 817, § 1; 2019, No. 514, § 4.

A.C.R.C. Notes. As enacted, subdivision (a)(1)(A) provided that at least five (5) of the seven practicing appraisers would be or become state certified appraisers and two (2) would be or become state licensed appraisers by the effective date of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989. Subdivision (a)(1) further provided that the failure to meet this qualification would result in disqualification from the board.

As enacted, subdivision (b)(3) began “The Governor shall appoint one (1) financial institution member to the board.”

As enacted subsection (d), also provided:

“The original chairman shall become, by the effective date of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, a state certified appraiser.”

The effective date of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, for the use of certified or licensed appraisers only, is July 1, 1991 but may be extended until December 31, 1991, pursuant to 12 U.S.C. § 3348(a).

Acts 1991, Nos. 416 and 541, § 3, in part, provided:

“The Governor may appoint from the lists submitted to him by the organizations which are members of the Appraisal Foundation, the Arkansas Bankers Association, Arkansas League of Savings Institutions, the Arkansas Association of Bank Holding Companies, the Arkansas Independent Bankers Association, the Arkansas Mortgage Bankers Association, the Arkansas Credit Union League, the Association of Consulting Foresters of America, Inc., and the Ouachita Society of American Foresters, Arkansas Division, an organizational subcommittee to be composed of two (2) members of each of their state chapters plus two (2) members from lists submitted from appraisal organizations not currently members of the Appraisal Foundation. The subcommittee will assist the board in the duties required in the implementation of this act. These subcommittee members are to serve for a period of one (1) year without reimbursement and this subcommittee will not be reappointed after the initial organizational period.”

Acts 1991, Nos. 416 and 541, § 3 provided, in part, that initially, the Governor would appoint five (5) appraiser members to the board from lists submitted to him by state chapters of national appraisal organizations which are members of the Appraisal Foundation, or its successor, plus the Arkansas Chapter of the Association of Consulting Foresters of America, Inc., provided that not more than two (2) members represent any one of the national organizations which are members of the Appraisal Foundation or the Association of Consulting Foresters of America, Inc.

Acts 1991, Nos. 416 and 541, § 3 further provided that of the members of the Arkansas Appraisers Licensing and Certification Board, four (4) would be appointed for three (3) years, and three (3) would be appointed for two (2) years.

Pursuant to § 1-2-207(b), the amendment to (b)(2) by Acts 2015, No. 695, § 2, is superseded by the amendment to this section by Acts 2015, No. 1100, § 20. Acts 2015, No. 695, § 2, provided:

“(2)(A)(i) Any state chapter of a nationally recognized real estate appraisal organization that requires an individual to have qualified appraisal experience, education, and testing to become a designated member and to adhere to standards of professional practice to maintain such a designation, and the Arkansas Chapter of the Association of Consulting Foresters of America, Inc., shall submit annually to the Governor by January 15 two (2) names of members of their respective organizations as nominees for appointment to the board.

“(ii) Two (2) appraiser board members may be appointed by the Governor at large.

“(B) A practicing licensed or certified appraiser shall not be denied the opportunity to submit his or her name for consideration to fill an appointment to the board based upon membership in a particular appraisal organization.”

Pursuant to § 1-2-207(b), the amendment to subsection (b) by Acts 2017, No. 535, § 2, is superseded by the amendment to this section by Acts 2017, No. 817, § 1.

Acts 2017, No. 535, § 2, effective March 20, 2017, amended (b) to read as follows:

“(b)(1)(A) The Governor shall appoint the members of the board subject to confirmation by the Senate and may remove a member for cause.

“(B) The Governor may, at his or her discretion, request additional names to be submitted from organizations mentioned in this subchapter eligible to fill appointments to the board.

“(2)(A) The Governor may appoint two (2) appraiser board members from the state at large after consulting the:

“(i) State chapters of nationally recognized real estate appraisal organizations that require an individual to have qualified appraisal experience, education, and testing to become a designated member and to adhere to standards of professional practice to maintain the designation; and

“(ii) Association of Consulting Foresters of America, Inc., Arkansas Chapter.

“(B) At least five (5) real estate appraiser members appointed to the board shall be members in good standing of a state chapter of a nationally recognized real estate appraisal organization that requires an individual to have qualified appraisal experience, education, and testing to become a designated member and to adhere to standards of professional practice to maintain the designation, or the Association of Consulting Foresters of America, Inc., Arkansas Chapter.

“(C) A practicing licensed or certified appraiser shall not be denied the opportunity to submit his or her name for consideration to fill an appointment to the board based solely upon membership or lack of membership in a particular appraisal organization.

“(3) The Arkansas Bankers Association, the Arkansas Community Bankers Association, the Mortgage Bankers Association of Arkansas, Inc., and the Cornerstone Credit Union League each shall annually submit a list of two (2) names on or before January 15, if a vacancy exists on the board, of each calendar year to the Governor, and the financial member may be appointed from the lists of names provided.”

Amendments. The 2009 amendment, in (a)(1)(C), substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.” for “this chapter,” and made a minor stylistic change.

The 2015 amendment by No. 695 rewrote (a)(1)(A); rewrote (b)(2)(A)(i); deleted former (b)(2)(B) and (b)(2)(C); redesignated and rewrote former (b)(2)(D) as present (b)(2)(B); rewrote (b)(3); and deleted “and the Governor may reappoint these positions biennially” at the end of (c)(1)(B).

The 2015 amendment by No. 1100 inserted “subject to confirmation by the Senate” in (b)(1)(A); rewrote (b)(2)(A); deleted former (b)(2)(B) and redesignated the remaining subdivisions accordingly; and deleted the former last sentence in present (b)(2)(B).

The 2015 amendment by No. 1156, in (b)(3), substituted “Community Bankers” for “Independent Bankers Association”, substituted “Cornerstone Credit Union League” for “Arkansas Credit Union League”, substituted “shall annually” for “should”, and deleted “annually” preceding “on or before January 15”.

The 2017 amendment by No. 252 deleted “hereby” before “created” in the introductory language of (a); redesignated and rewrote part of former (a)(1)(A) as the introductory language of (a)(1); in (a)(1)(B), substituted “No more than two (2) appraiser members” for “Of the seven (7) practicing appraiser members, more than two (2)” and “districts; and” for “districts as they now exist”; and deleted “Additionally” at the beginning of (a)(1)(C).

The 2017 amendment by No. 535 rewrote (b)(2)(A)(i) and (b)(2)(B); in (b)(2)(C), substituted “A practicing licensed or certified appraiser shall not” for “No practicing appraisers shall”, “his or her name” for “their names”, “an appointment to the board” for “either of the two (2) at-large appointments to this board”, and “a particular appraisal” for “any particular appraisal”; and inserted “if a vacancy exists on the board” in (b)(3).

The 2017 amendment by No. 817 deleted (b)(1)(B), (b)(2)(A), (b)(2)(C) and (b)(3); and redesignated and rewrote former (b)(2)(B) as present (b)(2).

The 2019 amendment inserted “or regional” in (b)(2)(A).

17-14-202. Powers and duties — Reporting standards — Qualification standards.

1. The Arkansas Appraiser Licensing and Certification Board may establish, maintain, report, and periodically update meaningful qualification standards for state-licensed, registered apprentice, and state-certified appraisers practicing in the State of Arkansas, including testing, experience, and educational requirements that:
   1. Are adequate to demonstrate knowledge and competency; and
   2. Will further demonstrate the continued compliance with:
      1. All applicable federal law and regulations, including Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and related requirements of the federal financial institutions regulatory agencies; and
      2. The minimum standards and qualifications as promulgated by the Appraisal Standards Board and the Appraiser Qualifications Board of the Appraisal Foundation.
2. The Arkansas Appraiser Licensing and Certification Board may adopt, maintain, report, and periodically update minimum reporting standards for state-registered, state-licensed, registered apprentice, and state-certified appraisers practicing in the State of Arkansas. The reporting standards shall:
   1. Be equivalent to the Uniform Standards of Professional Appraisal Practice as promulgated by the Appraisal Standards Board of the Appraisal Foundation; and
   2. At all times seek compliance with:
      1. All applicable federal law and regulations, including Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, and related requirements of the federal financial institutions regulatory agencies; and
      2. The minimum standards as promulgated by the Appraisal Standards Board of the Appraisal Foundation.

History. Acts 1991, No. 416, § 4; 1991, No. 541, § 4; 2001, No. 1256, § 6; Acts 2019, No. 514, § 5.

Amendments. The 2019 amendment inserted “registered apprentice” in the introductory language of (a) and (b); and deleted “and as approved by the Appraisal Subcommittee” following “Foundation” in (a)(2)(B) and (b)(2)(B).

U.S. Code. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, referred to in this section, is codified as 12 U.S.C. §§ 3310 and 3331 et seq.

17-14-203. Powers and duties — In general.

In accordance with these general powers and duties, the Arkansas Appraiser Licensing and Certification Board shall:

1. Perform all duties and functions necessary to carry out this chapter;
2. 1. Receive applications for registering, licensing, and certification.
   2. The application shall include the applicant's consent to a state criminal background check and a national fingerprint-based criminal background check performed by the Federal Bureau of Investigation in compliance with federal law and regulations;
3. Establish administrative procedures for processing applications;
4. 1. 1. Approve and issue registration, licenses, and certificates to qualified applicants or disapprove applications for registering, licensing, and certification for applicants who do not meet the minimum requirements as prescribed in this chapter.
      2. The minimum requirements shall include a determination that the applicant possesses a background that does not call into question public trust or the applicant's fitness for registration, licensure, or certification.
   2. All application materials and records submitted to the Arkansas Appraiser Licensing and Certification Board shall be retained by the Arkansas Appraiser Licensing and Certification Board;
5. 1. Maintain a roster of the names, addresses, email addresses, and telephone numbers of all persons licensed and certified under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., and, in accordance with sections 1103(a)(3) and 1109(a)(1) of Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, shall submit this roster monthly to the Appraisal Subcommittee.
   2. This roster may be published and periodically updated and provided to all interested parties at cost;
6. 1. Establish by rule the minimum examination, education, experience, and continuing education requirements for state-registered, state-licensed, registered apprentice, and state-certified appraisers.
   2. 1. The criteria for a state-registered appraiser shall be less rigorous than the criteria for a state-licensed appraiser.
      2. The criteria for a state-licensed appraiser shall be less rigorous than the criteria for a state-certified appraiser. However, the criteria will ensure that licensed appraisers have sufficient experience and training to perform appraisals for transactions within and in compliance with Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.
   3. These rules shall at all times be equivalent to the minimum appraiser-qualification criteria as promulgated by the Appraiser Qualifications Board of the Appraisal Foundation for state-licensed, registered apprentice, and state-certified appraisers performing federally related transactions.
   4. With respect to examinations, these rules shall at all times require minimum examination contents that are equivalent to the national uniform examination content as promulgated by the Appraiser Qualifications Board of the Appraisal Foundation and shall provide for the selection and utilization of a testing service acceptable to the Appraiser Qualifications Board of the Appraisal Foundation.
   5. 1. Every application for registering, licensing, and certifying shall be accompanied by an application fee and a criminal background check fee that the Arkansas Appraiser Licensing and Certification Board may establish by rule.
      2. However, the Arkansas Appraiser Licensing and Certification Board, at its discretion, may direct each applicant to pay the actual cost of the examination fee directly to a testing service engaged by the Arkansas Appraiser Licensing and Certification Board to administer the examination.
   6. 1. The application fee to upgrade a credential from registered apprentice to state-licensed or to state-certified shall not exceed one hundred dollars ($100).
      2. The application fee to upgrade a credential from state-licensed to state-certified shall not exceed fifty dollars ($50.00).
   7. The total annual resident registering, licensing, certification, and application fees established by the Arkansas Appraiser Licensing and Certification Board shall not exceed three hundred dollars ($300), excluding fees for:
      1. Applicable examination and federal pass-through fees; and
      2. Criminal background check fees.
   8. Courses, schools, seminars, and any other educational programs must be recognized by the Arkansas Appraiser Licensing and Certification Board as acceptable to satisfy registration, licensing, and certification standards and continuing education requirements under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
7. 1. Establish administrative procedures for disciplinary proceedings conducted under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
   2. The administrative procedures shall include provisions for the suspension and revocation of registration, licenses, and certificates and the enforcement of civil penalties concurrent with existing statutes regarding civil procedures;
8. Subpoena and issue subpoena duces tecum and to bring before it any person in this state, and to take testimony by deposition, in the same manner as prescribed by law in judicial proceedings in the courts of this state or to require production of any records relevant to any inquiry or hearing by the Arkansas Appraiser Licensing and Certification Board;
9. Recommend procedures necessary to assure the ready availability to appraisers in the state of adequate and reliable information regarding property prices and the terms and conditions of real estate and real property transactions and related financing;
10. Establish administrative procedures for the setting, charging, and collecting of fees necessary for the operation of the Arkansas Appraiser Licensing and Certification Board and to concurrently collect and submit to the proper agency as prescribed under Section 1109(a)(4) of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 and any other related federal law, any additional fees that may from time to time be required to be paid by appraisers whose practices include the appraisal of properties included in federally related transactions;
11. Be authorized to adopt and enforce such administrative rules as may be necessary to comply with state law and federal law with specific reference to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 as it exists today and as it may be amended and adopted by the Appraisal Subcommittee; and
12. 1. 1. Obtain a state criminal background check performed by the Identification Bureau of the Division of Arkansas State Police and a national fingerprint-based criminal background check performed by the Federal Bureau of Investigation in compliance with federal law and regulations for all applicants for a real property appraiser registration, license, or certification to determine if the applicant possesses a background that does not call into question public trust or the applicant's fitness for registration, licensure, or certification.
       2. Subdivision (12)(A)(i) of this section applies to an application for a state-registered appraiser credential, an application for a registered apprentice appraiser credential, an application to upgrade an existing appraiser credential, an application to reinstate an appraiser credential that has been inactive for more than twelve (12) months, and an application for a new reciprocal appraiser credential.
       3. Subdivision (12)(A)(i) of this section does not apply to an application for a temporary practice permit.
    2. An applicant shall provide all information requested by the Arkansas Appraiser Licensing and Certification Board to assist making the determination.
    3. Factors to consider in making the determination include without limitation whether the applicant:
       1. During the five (5) years immediately preceding the date of the application was convicted of, or pled guilty or nolo contendere to, a crime that would call into question the applicant's fitness for registration, licensure, or certification, including without limitation a crime involving:
          1. 1. An act substantially related to the qualifications, functions, or duties of an appraiser.
             2. A crime or act may be deemed substantially related to the qualifications, functions, or duties of an appraiser if, to a substantial degree, the crime or act evidences present or potential unfitness of a person applying for or holding a real property appraiser credential to perform the functions authorized by the credential;
          2. Taking, appropriating, or retaining the funds or property of another;
          3. Forging, counterfeiting, or altering an instrument affecting the rights or obligations of another;
          4. Evasion of a lawful debt or obligation, including without limitation a tax obligation;
          5. Trafficking in narcotics or controlled substances;
          6. Violation of a relation of trust or confidence;
          7. Theft of personal property or funds;
          8. An act of violence or threatened violence against persons or property; or
          9. A sexually related crime or act under § 5-14-101 et seq.;
       2. Has had an appraiser registration, license, certification, or credential of any type revoked in any governmental jurisdiction;
       3. Performed any act which if done by an appraiser would be grounds to revoke or suspend the appraiser's license or certification;
       4. Knowingly made a false statement of material fact required to be disclosed in an application for any professional license or certification;
       5. Has been prohibited from participating in the affairs of an insured depository institution under Section 19(a) of the Federal Deposit Insurance Act, 12 U.S.C. § 1829;
       6. Misrepresented facts or information on the appraiser registration, license, or certification application; or
       7. Cheated on an examination for a real property appraiser registration, license, or certification.

History. Acts 1991, No. 416, § 4; 1991, No. 541, § 4; 2001, No. 1256, § 7; 2009, No. 628, § 10; 2015, No. 1124, §§ 1-5; 2017, No. 535, § 3; 2019, No. 514, §§ 6, 7; 2019, No. 990, § 12.

Amendments. The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.” for “this chapter” in (5), (6)(H), and (7)(A); substituted “rule” for “regulation” or variant in (6)(A), (6)(C), and (6)(D); subdivided (7); deleted “and regulations” following “rules” in (11); and made related and minor stylistic changes.

The 2015 amendment redesignated (2) as (2)(A); added (2)(B); redesignated (4)(A) as (4)(A)(i); added (4)(A)(ii); in (6)(E)(i), inserted “and a criminal background check fee” and substituted “rule” for “regulation”; redesignated part of (6)(G) as (6)(G)(i); added (6)(G)(ii); and added (12).

The 2017 amendment redesignated former (12)(A) as (12)(A)(i); and added (12)(A)(ii) and (12)(A)(iii).

The 2019 amendment by No. 514 redesignated former (5) as (5)(A) and (5)(B); in (5)(A), inserted “email addresses” and substituted “roster monthly” for “roster annually”; inserted “registered apprentice” in (6)(A) and (6)(C); in (6)(E)(i), substituted “certifying” for “certification” and substituted “application fee and a criminal background check fee” for “application and examination fee, as applicable, and a criminal background check fee”; rewrote (6)(F); and inserted “an application for a registered apprentice appraiser credential” in (12)(A)(ii).

The 2019 amendment by No. 990 deleted former (12)(C)(i) (a) and redesignated the remaining subdivisions accordingly.

U.S. Code. Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, referred to in this section, is codified as 12 U.S.C. §§ 3310 and 3331 et seq.

Sections 1103(a)(3) and 1109(a)(1) and (a)(4) of the act are codified as 12 U.S.C. §§ 3332(a)(3) and 3338(a)(1) and (a)(4), respectively.

17-14-204. Meetings, quorum, and voting.

1. The Arkansas Appraiser Licensing and Certification Board shall meet not less frequently than twice each calendar year to conduct its business.
2. Places of future meetings shall be decided by the vote of members at meetings.
3. Written notice shall be given to each member of the time and place of each meeting of the board at least ten (10) days before the scheduled date of the meetings.
4. An administrative secretary shall be present at all meetings of the board and shall record the minutes of all meetings, the record of which shall be made a permanent part of the records of the board.
5. A quorum of the board shall be six (6) members, provided that four (4) must be state-licensed or state-certified appraisers. No binding decisions or regulatory changes may be made by the board in the absence of a quorum.

History. Acts 1991, No. 416, § 5; 1991, No. 541, § 5; 2001, No. 159, § 3.

17-14-205. Hearings — Review — Access to records.

1. In fulfilling its duties under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., the Arkansas Appraiser Licensing and Certification Board shall comply with the Arkansas Administrative Procedure Act, § 25-15-201 et seq., and any person aggrieved by any rule or other actions of the board for which an appeal is not provided for in the Arkansas Administrative Procedure Act, § 25-15-201 et seq., may appeal to the Pulaski County Circuit Court.
2. Disciplinary hearings conducted by the board for the purpose of determining whether to levy civil penalties under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., and for the purpose of determining whether to revoke or suspend any registration, license, or certificate issued under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., shall not be deemed open public meetings but shall be executive sessions conducted as provided for in the Freedom of Information Act of 1967, § 25-19-101 et seq.
3. Sample appraisals and other work papers submitted to the board as partial fulfillment of the requirements for licensure or certification under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., shall not be deemed public records under the Freedom of Information Act of 1967, § 25-19-101 et seq.

History. Acts 1991, No. 416, §§ 11, 12; 1991, No. 541, §§ 11, 12; 2009, No. 628, § 11; 2019, No. 514, § 8.

Amendments. The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.,” for “this chapter” throughout the section; and made related changes.

The 2019 amendment inserted “registration” in (b).

17-14-206. Complaints and disciplinary procedures.

1. Upon its own motion or upon written complaint of any person and after notice and hearing as prescribed by the Arkansas Administrative Procedure Act, § 25-15-201 et seq., the Arkansas Appraiser Licensing and Certification Board may suspend or revoke the registration, license, or certification of any registrant, licensee, or certificate holder and issue a fine up to the amount of one thousand dollars ($1,000) per violation occurrence or take any other appropriate disciplinary action for:
   1. Violation of any provision of the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
   2. Falsifying any application for licensure or certification or otherwise providing any false information to the board;
   3. [Repealed.]
   4. Any actions demonstrating untrustworthiness, incompetence, dishonesty, gross negligence, material misrepresentation, fraud, or unethical conduct in any dealings subject to the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
   5. Adjudication of insanity;
   6. Use of advertising or solicitation that is false, misleading, or is otherwise deemed unprofessional by the board;
   7. Employing directly or indirectly any unlicensed person to perform any actions subject to the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
   8. Habitual or excessive use of intoxicants or illegal drugs; or
   9. Failure to meet continuing education requirements within the proper time period.
2. Except in cases in which a licensee, registrant, or certificate holder has obtained a license by false or fraudulent representation, the board shall not investigate the actions of or conduct any disciplinary hearing regarding any licensee, registrant, or certificate holder unless the complaint is filed or the investigation is initiated within three (3) years from the date of the actions complained of or concerning which an investigation is initiated.
3. 1. An action in tort or contract, whether oral or written, to recover damages for malpractice, negligence, error, mistake, omission, or breach shall not be brought against a registered apprentice appraiser, a state-registered appraiser, a state-licensed appraiser, or a state-certified appraiser, including any agent, firm, employee, or employer thereof, after three (3) years from the date on which the appraisal or appraisal-related service giving rise to the action was completed or should have been completed.
   2. The time for commencement of an action contained in subdivision (c)(1) of this section does not apply to any claim alleging that a state-registered appraiser, state-licensed appraiser, registered apprentice appraiser, or state-certified appraiser knowingly and intentionally:
      1. Committed fraud; or
      2. Made misrepresentations when performing a real estate appraisal or when providing an appraisal-related service.

History. Acts 1993, No. 413, § 4; 2001, No. 1256, § 8; 2005, No. 278, § 1; 2009, No. 628, § 12; 2019, No. 514, § 9; 2019, No. 990, § 13.

Amendments. The 2005 amendment added (b).

The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.” for “this chapter” in (a)(1) and (a)(7), and for “this chapter or these regulations” in (a)(4).

The 2019 amendment by No. 514 added (c).

The 2019 amendment by No. 990 repealed (a)(3).

Subchapter 3 — Licensing Restrictions

Effective Dates. Acts 1991, No. 416, § 17: Mar. 8, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that minimum standards must be provided for the licensing and certification of appraisers in accordance with the requirements of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and that there will continue to be a need to provide adequate protection and safeguards for the public; that such provision should be enacted immediately; and that this act would so provide. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from its passage and approval.”

Acts 1991, No. 541, § 17: Mar. 14, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly that minimum standards must be provided for the licensing and certification of appraisers in accordance with the requirements of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 and that there will continue to be a need to provide adequate protection and safeguards for the public; that such provision should be enacted immediately; and that this act would so provide. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall be in full force and effect from its passage and approval.”

Acts 2009, No. 628, § 20: Jan. 1, 2010. Effective date clause provided: “This act takes effect January 1, 2010.”

17-14-301. Business entities — Eligibility for licensing.

A registration, license, or certificate shall not be issued under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., to a firm, corporation, partnership, group, or other business entity.

History. Acts 1991, No. 416, § 9; 1991, No. 541, § 9; 2001, No. 1256, § 9; 2009, No. 628, § 13.

Amendments. The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.,” for “this chapter,” and made a related change.

17-14-302. License required — Membership in other organizations.

1. On or after December 31, 2001, it shall be a Class B misdemeanor for any individual to perform an appraisal or provide appraisal services as defined in the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., without holding a registration, license, or certificate except as provided in § 17-14-104.
2. A person shall not be excluded from obtaining a registration, license, or certification based solely upon membership or lack of membership in any particular appraisal organization.

History. Acts 1991, No. 416, § 7; 1991, No. 541, § 7; 2001, No. 1256, § 10; 2005, No. 1994, § 472; 2009, No. 628, § 14.

Amendments. The 2005 amendment substituted “a Class B misdemeanor” for “unlawful” in (a).

The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.,” for “this chapter” in (a), and made related and minor stylistic changes.

17-14-303. Unlicensed persons — Federally and nonfederally related transactions.

1. It is a Class B misdemeanor for any person who is not licensed, registered, or certified under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., to perform appraisal services as defined in the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., in connection with a federally related transaction.
2. An appraiser who does not hold an appraiser's classification that permits the performance of a particular appraisal assignment for use in federally related transactions must include in such an appraisal report a statement that the appraisal may not be eligible for use in a federally related transaction.

History. Acts 1991, No. 416, § 10; 1991, No. 541, § 10; 2001, No. 1256, § 11; 2005, No. 1994, § 472; 2009, No. 628, § 15; 2019, No. 514, § 10.

A.C.R.C. Notes. As enacted, this section began “After July 1, 1991, or such later date as established by the Appraisal Subcommittee.”

Acts 1991, Nos. 416 and 541, in § 10, in part, provided:

“The adoption of reporting standards in conformance with the Uniform Standards of Professional Appraisal Practice and the related ethics provisions, shall be effective immediately following the signing of this act into law by the Governor. Additionally, all real estate appraisals and reports as defined herein, conducted as part of a federally related transaction as defined herein, shall be written reports, effective immediately following the signing of this act into law by the Governor.”

Amendments. The 2005 amendment substituted “a Class B misdemeanor” for “unlawful” in (a).

The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.” for “this chapter” twice in (a), and made related and minor stylistic changes.

The 2019 amendment inserted “registered” in (a).

17-14-304. Use of terms.

1. The terms “certified real property appraiser”, “certified real estate appraiser”, and “certified appraiser” shall only be used to refer to individuals who hold a current certificate and shall not be used in connection with or as part of the name or signature of an individual, firm, partnership, corporation, group, or other business entity, or anyone other than an individual holder of the certificate.
2. An appraiser practicing or providing appraisal services in this state as defined in § 17-14-103 may not use the term “registered”, “certified”, or “licensed” in conjunction with his or her appraisal practice, unless he or she holds a valid registration, license, or certification issued under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
3. The terms “licensed real estate appraiser”, “licensed real property appraiser”, and “licensed appraiser” shall only be used to refer to an individual who holds a current license and shall not be used in connection with or as part of the name or signature of an individual, firm, corporation, or group or in a manner that may be interpreted as referring to a firm, partnership, corporation, group, or other business entity, or anyone other than an individual holder of the license.
4. A person other than a state-registered appraiser, state-licensed appraiser, registered apprentice appraiser, or state-certified appraiser shall not assume or use that title or any title, designation, or abbreviation likely to create the impression of registration, licensing, or certification as an appraiser by this state.
5. A person who is not registered, licensed, or certified under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., shall not describe or refer to any appraisal report, written or oral, or other evaluation of real estate covered under the activities of appraisers by the term “registered”, “licensed”, “certified”, or any other similar term that may be construed to imply qualification or competency recognized by the state.

History. Acts 1991, No. 416, § 9; 1991, No. 541, § 9; 2001, No. 1256, § 12; 2009, No. 628, § 16; 2019, No. 514, § 11.

Amendments. The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.,” for “this chapter” in (b) and (e), and made related and minor stylistic changes.

The 2019 amendment inserted “registered apprentice appraiser” in (d); and inserted “registered” in (e).

17-14-305. Compliance with uniform standards and code of ethics — Seals — Licensing and certification documents.

1. 1. Each state-registered appraiser, each state-licensed appraiser, each registered apprentice appraiser, and each state-certified appraiser shall comply with the Uniform Standards of Professional Appraisal Practice and Code of Ethics adopted by the Arkansas Appraiser Licensing and Certification Board and shall authenticate all written appraisal reports with a seal that shall indicate the registration, license, or certification number.
   2. The seal and number shall also be used in all statements of qualifications, contracts, or other instruments used by the registration, license, or certificate holder when reference is made to his or her status as a state-registered appraiser, state-licensed appraiser, registered apprentice appraiser, or state-certified appraiser.
2. Registration, license, and certificate documents, licenses, certificates, seals, and pocket cards shall remain the property of the state, and, upon any suspension, revocation, or other termination of a registration, license, or certification under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., the individual holding the related documents shall immediately return the documents to the board.

History. Acts 1991, No. 416, § 9; 1991, No. 541, § 9; 1993, No. 413, § 5; 2001, No. 1256, § 13; 2009, No. 628, § 17; 2019, No. 514, § 12.

Amendments. The 2009 amendment substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.” for “this chapter” in (b), and made a related and a minor stylistic change.

The 2019 amendment inserted “each registered apprentice appraiser” in (a)(1); and inserted “registered apprentice appraiser” in (a)(2).

17-14-306. Additional licenses — Nonresidents.

1. 1. Every applicant for registration, licensure, or certification under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., who is not a resident of this state shall submit with the application for registration, licensure, or certification an irrevocable consent that service of process upon him or her may be made by delivery of the process to the Secretary of State if, in an action against the applicant in a court of this state arising out of the applicant's activities as a state-registered appraiser, state-licensed appraiser, registered apprentice appraiser, or state-certified appraiser, the plaintiff cannot effect personal service upon the applicant.
   2. A nonresident of this state who has complied with this provision may obtain a license or certification as a state-licensed appraiser or a state-certified appraiser by complying with the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., relating to state-registered appraisers, state-licensed appraisers, or state-certified appraisers, including the payment of a fee.
2. 1. If, in the determination by the Arkansas Appraiser Licensing and Certification Board, another state is deemed to have substantially equivalent licensing and certification requirements, an applicant who is licensed or certified under the laws of the other state may obtain a nonresident license or certificate as a state-licensed appraiser or a state-certified appraiser in this state upon such terms and conditions as may be determined by the board.
   2. An appropriate fee is to be charged.

History. Acts 1991, No. 416, § 8; 1991, No. 541, § 8; 1993, No. 413, § 6; 2001, No. 1256, § 14; 2009, No. 628, § 18; 2019, No. 514, § 12.

Amendments. The 2009 amendment subdivided (a), substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.” for “this chapter” in (a)(1) and (a)(2), and made related and minor stylistic and punctuation changes.

The 2019 amendment inserted “registered apprentice appraiser” in (a)(1); and deleted “temporary or” preceding “nonresident” in (b)(1).

17-14-307. Minimum qualifying requirements for registered appraiser.

In order to qualify as a state-registered appraiser, an applicant must:

1. Make application to the Arkansas Appraiser Licensing and Certification Board on approved forms which shall include an affidavit that states that the appraiser has read and understands:
   1. The current edition of the Uniform Standards of Professional Appraisal Practice;
   2. The board's statutes; and
   3. The board's rules;
2. Attest in a statement to the verification of tenure and scope of practice as a fee appraiser making independent appraisal assignments; and
3. Meet any additional requirements which may from time to time be adopted by the board under the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 2001, No. 1256, § 15; 2019, No. 315, § 1342.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (1)(C).

17-14-308. Violation of law — Civil penalties, injunctions, and venue.

1. 1. It is unlawful for a person not registered, licensed, or certified under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., to perform an act or advertise to perform an act for which registration, licensure, or certification is required.
   2. A person is guilty of a Class A misdemeanor if the person:
      1. Acts as an appraiser within the meaning of this chapter without an appraiser classification;
      2. 1. With an interest in a real estate transaction involving an appraisal, improperly influences or attempts to improperly influence the development, reporting, result, or review of a real estate appraisal through intimidation, coercion, extortion, bribery, blackmail, threat of nonpayment or withholding payment for services, or threat of exclusion from future appraisal work.
         2. Subdivision (a)(2)(B)(i) of this section does not prohibit a person from:
            1. Requesting an appraiser to:
               1. Consider additional information concerning the real estate appraisal;
               2. Provide further detail, substantiation, or explanation for the appraiser's value conclusion; or
               3. Correct errors in the appraisal report; or
            2. Withholding payment for an appraisal based upon a bona fide dispute concerning the appraiser's compliance with the appraisal standards adopted by the Arkansas Appraiser Licensing and Certification Board under this chapter.
         3. A violation of this subdivision (a)(2)(B) is a ground for discipline against a person holding a license, certificate, or registration under this chapter; or
      3. Violates any other provision of this chapter.
2. 1. Upon application by the board, a court may grant an injunction, restraining order, or other order as may be appropriate to enjoin a person from:
      1. Offering to engage or engaging in the performance of any acts or practices for which a registration, certificate, or license is required by the Arkansas Appraiser Licensing and Certification Act, § 17-14- 101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., upon a showing that the acts or practices were performed or offered to be performed without a registration, license, or certificate;
      2. Engaging in any practice or business authorized by a certificate, license, or registration issued under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., upon a showing that the holder of the certificate, license, or registration presents a substantial probability of serious danger to the health, safety, or welfare of any resident of this state or client of the certificate holder or licensee; or
      3. Violating subdivision (a)(2) of this section.
   2. Any person cosigning an appraisal with a state-registered, state-licensed, registered apprentice, or state-certified appraiser becomes subject to the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.
3. An action brought under this section shall be commenced in the county in which the conduct occurred, in the county in which the defendant resides, or in Pulaski County.
4. An action brought under this section shall be in addition to and not in lieu of any penalty provided by § 17-14-206 and may be brought concurrently with any other action to enforce the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.

History. Acts 2001, No. 1256, § 16; 2009, No. 413, § 1; 2009, No. 628, § 19; 2019, No. 514, § 13.

Amendments. The 2009 amendment by No. 413, in (a), inserted “or advertise to perform an act” in (a)(1), and rewrote (a)(2); inserted (b)(1)(C); and made minor stylistic changes.

The 2009 amendment by No. 628 subdivided (a); substituted “The Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.” for “this chapter” throughout the section; inserted “§ 17-14-201 et seq., and § 17-14-301 et seq.” in (b)(1)(A) and (b)(1)(B); and made related and minor stylistic changes.

The 2019 amendment inserted “registered apprentice” in (b)(2).

Subchapter 4 — Appraisal Management Company Registration Act

Effective Dates. Acts 2009, No. 628, § 20: Jan. 1, 2010. Effective date clause provided: “This act takes effect January 1, 2010.”

Acts 2017, No. 535, § 12: Mar. 20, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the Arkansas Appraiser Licensing and Certification Board is unable to comply with Appraisal Subcommittee policy statement requirements concerning the issuance of out-of-state appraiser temporary practice permits; that timely issuance of these permits is of great importance; and that this act is immediately necessary because the delay in issuing these credentials causes undue stress on both Arkansas taxpayers seeking real estate appraisals and appraisers. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

17-14-401. Short title.

This subchapter shall be known and may be cited as the “Appraisal Management Company Registration Act”.

History. Acts 2009, No. 628, § 1.

17-14-402. Definitions.

As used in this subchapter:

1. “Affiliate” means any company that controls, is controlled by, or is under common control with another company;
2. 1. “Appraisal management company” means a person that:
      1. Provides appraisal management services to creditors or to secondary mortgage market participants, including affiliates;
      2. Provides such services in connection with valuing a consumer's principal dwelling as securitizations; and
      3. Within a given twelve-month period, oversees an appraiser panel of more than fifteen (15) state-certified or state-licensed appraisers in a state or twenty-five (25) or more state-certified or state-licensed appraisers in two (2) or more states.
   2. An appraisal management company does not include a department or division of an entity that provides appraisal management services only to that entity;
3. “Appraisal Management Company National Registry” means the registry of state-registered appraisal management companies and federally regulated appraisal management companies maintained by the Appraisal Subcommittee;
4. “Appraisal management services” means one (1) or more of the following activities:
   1. Recruiting, selecting, and retaining appraisers;
   2. Contracting with state-certified or state-licensed appraisers to perform appraisal assignments;
   3. Managing the process of having an appraisal performed, including without limitation providing administrative services such as receiving appraisal orders and appraisal reports, submitting completed appraisal reports to creditors and secondary market participants, collecting fees from creditors and secondary market participants for services provided, and paying appraisers for services performed; and
   4. Reviewing and verifying the work of appraisers;
5. “Appraisal services” means the practice of developing an opinion of the value of real property in conformance with the minimum reporting standards under § 17-14-202(b);
6. “Appraisal Subcommittee” means the Appraisal Subcommittee of the Federal Financial Institutions Examination Council;
7. “Appraiser” means an individual licensed under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq., who for a fee or other consideration develops and communicates a real estate appraisal or otherwise gives an opinion of the value of real estate or any interest in real estate;
8. “Appraiser panel” means a group, pool, network, list, or roster of licensed or certified appraisers approved to perform appraisal services as independent contractors for the appraisal management company;
9. “Board” means the Arkansas Appraiser Licensing and Certification Board established under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
10. “Client” means a person that contracts with or otherwise enters into an agreement with an appraisal management company for the performance of appraisal services;
11. “Controlling person” or “managing principal” means an:
    1. Owner, officer, or director of an appraisal management company;
    2. Individual employed, appointed, or authorized by an appraisal management company that has the authority to enter into a contractual relationship with other persons for the performance of appraisal management services and the authority to enter into agreements with appraisers for the performance of appraisals; or
    3. Individual who possesses, directly or indirectly, the power to direct or cause the direction of the management or policies of an appraisal management company;
12. “Covered transaction” means any consumer credit transaction secured by the principal dwelling of the consumer;
13. “Creditor” means a person that regularly extends consumer credit:
    1. That is subject to a finance charge or is payable by written agreement in more than four (4) installments, not including a down payment, and to whom the obligation is initially payable, either on the face of the note or contract, or by agreement when there is no note or contract; or
    2. 1. If the person extended credit more than five (5) times for a transaction secured by a dwelling in the preceding calendar year.
       2. If a person meets the numerical standards under subdivision (13)(B)(i) of this section in the preceding calendar year, the numerical standards shall be applied to the current calendar year.
       3. A person regularly extends consumer credit if, in any twelve-month period, the person originates more than one (1) credit extension that is subject to the requirements of 12 C.F.R. § 1026.32 or one (1) or more credit extensions through a mortgage broker;
14. 1. “Dwelling” means a residential structure that contains one to four (1-4) units, whether or not that structure is attached to real property.
    2. A dwelling includes an individual condominium unit, cooperative unit, mobile home, and trailer if it is used as a residence.
    3. 1. A consumer can have only one (1) principal dwelling at a time.
       2. A vacation home or other second home is not a principal dwelling.
       3. However, if a consumer buys or builds a new dwelling that will become the principal dwelling of the consumer within a year or upon the completion of construction, the new dwelling is considered the principal dwelling under this section;
15. “Federally regulated appraisal management company” means an appraisal management company that is owned and controlled by an insured depository institution as defined under 12 U.S.C. § 1813, and regulated by the United States Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, or the Federal Deposit Insurance Corporation;
16. “Federally related transaction regulations” means regulations established by the United States Office of the Comptroller of the Currency, the Board of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, or the National Credit Union Administration, under Sections 1112, 1113, and 1114 of Title XI of Pub. L. No. 101-73, 12 U.S.C. §§ 3341 — 3343;
17. “Person” means a natural person or an organization, including without limitation a corporation, partnership, proprietorship, association, cooperative, estate, trust, or government unit;
18. “Registrant” means an appraisal management company or person that is registered under this subchapter;
19. 1. “Secondary mortgage market participant” means a guarantor or insurer of mortgage-backed securities or an underwriter or issuer of mortgage-backed securities.
    2. Secondary mortgage market participant only includes an individual investor in a mortgage-backed security if that investor also serves in the capacity of a guarantor, insurer, underwriter, or issuer for the mortgage-backed security;
20. “States” means the fifty (50) states, the District of Columbia, and the territories of Guam, Mariana Islands, Puerto Rico, and the U.S. Virgin Islands; and
21. “Uniform Standards of Professional Appraisal Practice” means the appraisal standards promulgated by the Appraisal Standards Board of the Appraisal Foundation.

History. Acts 2009, No. 628, § 1; 2017, No. 535, § 4.

Amendments. The 2017 amendment rewrote this section.

17-14-403. Registration of appraisal management companies required.

A person shall not act as an appraisal management company or perform appraisal management services in this state unless registered by the Arkansas Appraiser Licensing and Certification Board.

History. Acts 2009, No. 628, § 1.

17-14-404. Rulemaking authority.

The Arkansas Appraiser Licensing and Certification Board may adopt rules to implement, administer, and enforce this subchapter, including without limitation to prescribe:

1. Forms and procedures for submitting information to the board;
2. Standards of practice for a person registered under this subchapter; and
3. Standards for the operation of appraisal management companies.

History. Acts 2009, No. 628, § 1.

17-14-405. Requirements for registration.

1. 1. Before acting or offering to act as an appraisal management company in this state, a person shall make written application on the forms provided on the official website of the Arkansas Appraiser Licensing and Certification Board to the board for registration accompanied by the fee and bond established by the board.
   2. The same requirements for registration shall apply to the initial application and each subsequent application for renewal.
2. The initial application or application for renewal shall include without limitation the following information:
   1. The name, business address, and telephone contact information of the person seeking registration;
   2. 1. If the applicant is a domestic organization, the information required by § 4-20-105(a) to designate an agent for service of process; or
      2. 1. If the applicant is a foreign organization, documentation that the foreign organization is authorized to transact business in this state and has appointed an agent for service of process by submitting a copy of:
            1. The company's filing with the Secretary of State appointing an agent for service of process under § 4-20-112; and
            2. A certificate of authority issued by the Secretary of State.
         2. A foreign organization's failure to comply with subdivision (b)(2)(B)(i) of this section may result in the rejection of the application;
   3. 1. The name, address, and contact information of any person that owns ten percent (10%) or more of the appraisal management company.
      2. Any person owning more than ten percent (10%) of an appraisal management company in this state shall submit to a state criminal background check and a national fingerprint-based criminal background check performed by the Federal Bureau of Investigation in compliance with federal law and regulations;
   4. The name, mailing address, and contact information of a controlling person or a managing principal;
   5. 1. An appraisal management company is not eligible to be registered in this state if the appraisal management company, in whole or in part, directly or indirectly, is owned by a person who has had an appraiser license or certification refused, denied, cancelled, surrendered in lieu of revocation, or revoked in any state for a substantive cause as determined by the board.
      2. An appraisal management company is not barred by subdivision (b)(5)(A) of this section if the license or certification of the appraiser with an ownership interest was not revoked for a substantive cause and has been reinstated by the state or states in which the appraiser was licensed or certified;
   6. A certification that the person:
      1. Has a system and process in place to verify that a person being added to the appraiser panel of the appraisal management company holds a license in good standing in this state under the Arkansas Appraiser Licensing and Certification Act, § 17-14-101 et seq., § 17-14-201 et seq., and § 17-14-301 et seq.;
      2. Has a system in place to review the work of all independent appraisers that are performing appraisal services for the appraisal management company on a periodic basis to ensure that the appraisal services are being conducted in accordance with the minimum reporting standards under § 17-14-202(b);
      3. Maintains a detailed record of each request for appraisal services that it receives and the independent appraiser that performs the appraisal services for the appraisal management company; and
      4. Has a system in place to verify that:
         1. Appraisals are conducted independently and free from inappropriate influence and coercion under the appraisal independence standards established under 15 U.S.C. § 1639e, as existing on January 1, 2019; and
         2. The appraisal management company establishes and complies with processes and controls reasonably designed to ensure that the appraisal management company:
            1. When engaging an appraiser, selects an appraiser who is independent of the transaction and has the requisite education, expertise, and experience necessary to competently complete the appraisal assignment for the particular market and property; and
            2. Conducts its appraisal management services in accordance with the requirements of 15 U.S.C. § 1639e, as existing on January 1, 2019, and federal regulations, as existing on January 1, 2019;
   7. Requires appraisers completing appraisals at its request to comply with the Uniform Standards of Professional Appraisal Practice;
   8. Has a system in place to verify that only licensed or certified appraisers are used for federally related transactions; and
   9. Any other information required by the board.
3. The board shall issue an initial or a renewal certificate of registration to an applicant authorizing the applicant to act or offer to act as an appraisal management company in this state upon:
   1. Receipt of a properly completed application;
   2. Payment of the required fee;
   3. Posting of a bond; and
   4. 1. Determination by the board that the activities of the applicant will be directed and conducted by persons of good moral character.
      2. The determination of the board under subdivision (c)(4)(A) of this section shall consider the results of all fingerprint-based criminal history reports.
4. 1. If the board finds that there is substantial reason to deny the application for registration, the board shall notify the applicant that the application has been denied and shall afford the applicant an opportunity for a hearing before the board to show cause why the application should not be denied.
   2. All proceedings concerning the denial of a certificate of registration shall be governed by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
5. The acceptance by the board of an application for registration does not constitute the approval of its contents or waive the authority of the board to take disciplinary action under this subchapter.

History. Acts 2009, No. 628, § 1; 2017, No. 535, § 5; 2019, No. 513, § 1; 2019, No. 990, § 14.

Amendments. The 2017 amendment redesignated former (a) as (a)(1) and added (a)(2); substituted “on the forms provided on the official website of the Arkansas Appraiser Licensing and Certification Board to the board” for “to the Arkansas Appraiser Licensing and Certification Board” in (a)(1); substituted “initial application or application for renewal” for “application” in the introductory language of (b); redesignated former (b)(3) as (b)(3)(A) and added (b)(3)(B); inserted “mailing” in (b)(4); inserted present (b)(5), (b)(7) and (b)(8) and redesignated the remaining subdivisions accordingly; substituted “an initial or a renewal certificate” for “a certificate” in the introductory language of (c); and redesignated former (c)(4) as (c)(4)(A) and added (c)(4)(B).

The 2019 amendment by No. 513 added (b)(6)(D).

The 2019 amendment by No. 990 deleted (b)(3)(B)(i); and deleted the (b)(3)(B)(ii) designation.

17-14-406. Fees and renewals.

1. 1. The Arkansas Appraiser Licensing and Certification Board shall establish by rule an application fee for an initial application or an application for renewal not to exceed one thousand five hundred dollars ($1,500) to be paid by each appraisal management company seeking registration under this subchapter.
   2. The board shall establish by rule and criminal background check a fee not to exceed fifty dollars ($50.00) to be paid by the appraisal management company for each person owning more than ten percent (10%) of the appraisal management company.
2. 1. Each applicant for registration shall post with the board and maintain a surety bond in the amount of twenty thousand dollars ($20,000).
   2. The bond shall:
      1. Be in the form prescribed by rule of the board; and
      2. Accrue to the state for the benefit of a claimant against the registrant to secure the faithful performance of the registrant's obligations under this subchapter.
   3. The aggregate liability of the surety shall not exceed the principal sum of the bond.
   4. A party having a claim against the registrant may bring suit directly on the surety bond, or the board may bring suit on behalf of the party having a claim against the registrant.
   5. Consumer claims are given priority in recovering from the bond.
   6. A deposit of cash or security may be accepted in lieu of the surety bond.
   7. A claim reducing the face amount of the bond shall be annually restored upon renewal of the registrant's registration.
3. 1. 1. Registrations issued under this subchapter shall be renewed annually beginning twelve (12) months from the date of issuance.
      2. The board may review and renew or refuse renewal of an appraisal management company's renewal application.
   2. 1. Failure to timely renew a registration shall result in a loss of authority to operate under this subchapter.
      2. A request to reinstate a certificate of registration shall be accompanied by payment of the renewal fee and a late fee of fifty dollars ($50.00) per month for each month or partial month of delinquency.
4. 1. The board shall collect from each appraisal management company registered under this chapter the Appraisal Management Company National Registry fee required by the Appraisal Subcommittee of the Federal Financial Institutions Examination Council.
   2. The amount and method of calculation of the Appraisal Management Company National Registry fee shall be established by rule of the board.
5. Notwithstanding § 17-14-412, the board may collect from each federally regulated appraisal management company:
   1. The Appraisal Management Company National Registry fee required by the Appraisal Subcommittee;
   2. Information regarding the determination of the Appraisal Management Company National Registry fee as required by the Appraisal Subcommittee; and
   3. Any other information required by state or federal law.
6. The Appraisal Management Company National Registry fees collected under this section shall be sent to the Appraisal Subcommittee regularly as required by federal law.

History. Acts 2009, No. 628, § 1; 2017, No. 535, § 6.

Amendments. The 2017 amendment redesignated former (a) as (a)(1) and added (a)(2); substituted “an application fee for an initial application or an application for renewal not to exceed one thousand five hundred dollars ($1,500)” for “a filing fee not to exceed five hundred dollars ($500)” in (a)(1); deleted “In addition to the filing fee” in (b)(1); redesignated former (c)(1) as (c)(1)(A) and added (c)(1)(B); in (c)(2)(B), substituted “the renewal fee and a late fee” for “a penalty” and “per month for each month or partial month” for “for each month”; and added (d) through (f).

17-14-407. Registrant responsibilities and duties.

1. A registrant that is an organization shall:
   1. Maintain a registered agent for service of process under the Model Registered Agents Act, § 4-20-101 et seq.; and
   2. Provide to the Arkansas Appraiser Licensing and Certification Board the information required by § 4-20-105(a) concerning the organization's agent for service of process and within five (5) business days any changes to the information.
2. 1. A registrant shall maintain or cause to be maintained complete records of requests for appraisal services referred to an appraiser licensed or certified by the board, including without limitation records pertaining to the acceptance of fees from borrowers or clients and payments to appraisers.
   2. The board may inspect the records without prior notice periodically or if the board determines that the records are pertinent to an investigation of a complaint against a registrant.
3. 1. A registrant shall designate a controlling person or managing principal responsible for ensuring compliance with this subchapter.
   2. The registrant shall file a form with the board certifying:
      1. The identity of the controlling person or the managing principal; and
      2. The individual's acceptance of the responsibilities of a controlling person or a managing principal.
   3. The registrant shall notify the board within thirty (30) days of a change in its controlling person or managing principal.
   4. An individual registrant who operates as a sole proprietorship is considered the managing principal under this subchapter.
4. 1. A registrant shall make and keep the accounts, correspondence, memoranda, papers, books, and other records in accordance with rules promulgated by the board.
   2. All records shall be retained for five (5) years unless the board by rule prescribes a different retention period for particular types of records.
5. If the information contained in a document filed with the board is or becomes inaccurate or incomplete in any material respect, the registrant shall promptly file an amendment correcting the information contained in the document.
6. The registrant shall disclose to its client the actual fees paid to an appraiser for appraisal services separately from any other fees or charges for appraisal management services.

History. Acts 2009, No. 628, § 1.

17-14-408. Prohibited activities.

1. An employee, director, officer, or agent of an appraisal management company or any other third party acting as a joint venture partner with or independent contractor for an appraisal management company shall not improperly influence or attempt to improperly influence the development, reporting, result, or review of a real estate appraisal, including without limitation through the use of intimidation, coercion, extortion, bribery, blackmail, threat of nonpayment or withholding payment for appraisal services, or threat of exclusion from future appraisal work.
2. A registrant shall not:
   1. Require an appraiser to collect the appraisal fee from a borrower, homeowner, or other third party;
   2. Require an appraiser to provide the registrant with the appraiser's digital signature or seal;
   3. Alter, amend, or change an appraisal report submitted by a licensed or certified appraiser, including without limitation by:
      1. Removing the appraiser's signature or seal; or
      2. Adding or removing information to or from the appraisal report;
   4. 1. Allow the removal of an independent appraiser from an appraiser panel without prior written notice to the appraiser.
      2. Written notice shall include written evidence of:
         1. The appraiser's illegal conduct;
         2. A violation of the minimum reporting standards under § 17-14-202(b) or other applicable statutes or rules;
         3. Substandard performance; or
         4. Otherwise improper or unprofessional behavior;
   5. Enter into contracts or agreements with an independent appraiser for the performance of appraisal services unless the independent appraiser is licensed or certified in good standing with the Arkansas Appraiser Licensing and Certification Board;
   6. Request that an appraiser provide an estimated, predetermined, or desired valuation in an appraisal report or provide estimated values or comparable sales at any time before the appraiser completes an appraisal report;
   7. 1. Except as provided in subdivision (b)(7)(B) of this section, provide to an appraiser an anticipated, estimated, encouraged, or desired value for a property or a proposed or target amount to be loaned to the borrower.
      2. A copy of the sales contract for purchase transactions may be provided;
   8. Commit an act or practice that impairs or attempts to impair an appraiser's independence, objectivity, or impartiality; or
   9. An appraisal management company shall not require an:
      1. Employee of the appraisal management company who is an appraiser to sign an appraisal that is completed by another appraiser who contracts with the appraisal management company in order to avoid the requirements of this subchapter; or
      2. Appraiser on the appraisal management company's appraiser panel to pay or reimburse the appraisal management company for the Appraisal Management Company National Registry fee.
3. Subsection (a) of this section does not prohibit an appraisal management company from requesting that an independent appraiser:
   1. Provide additional information about the basis for a valuation;
   2. Correct objective factual errors in an appraisal report; or
   3. Provide further detail, substantiation, or explanation for the appraiser's value conclusion.

History. Acts 2009, No. 628, § 1; 2013, No. 516, § 1; 2017, No. 535, § 7.

Amendments. The 2013 amendment substituted “A registrant” for “The registrant” in the introductory language of (b); deleted former (b)(2) and redesignated the remaining subdivisions accordingly; and substituted “(b)(7)(B)” for “(b)(8)(B)” in (b)(7)(A).

The 2017 amendment added (b)(9).

17-14-409. Registry of applicants and roster.

1. 1. The Executive Director of the Arkansas Appraiser Licensing and Certification Board shall keep a register of all applicants for registration.
   2. The register shall indicate:
      1. The date of application;
      2. The applicant's name;
      3. The applicant's business address; and
      4. Whether the registration was granted or denied.
   3. The register shall be prima facie evidence of all matters contained in the register.
2. 1. The executive director shall keep a current roster showing the names and addresses of all appraisal management companies registered with the Arkansas Appraiser Licensing and Certification Board.
   2. The roster shall be kept on file in the office of the board and shall be open for public inspection.
3. 1. The board shall submit to the Appraisal Subcommittee all information required to be submitted by Appraisal Subcommittee rules or guidance concerning appraisal management companies that operate in this state.
   2. Information under subdivision (c)(1) of this section shall include without limitation a roster of registered appraisal management companies, reports of investigations, and disciplinary actions involving appraisal management companies.

History. Acts 2009, No. 628, § 1; 2017, No. 535, § 8; 2019, No. 315, § 1343.

Amendments. The 2017 amendment added (c).

The 2019 amendment substituted “rules” for “regulations” in (c)(1).

17-14-410. Disciplinary authority, enforcement, and hearings.

1. The Arkansas Appraiser Licensing and Certification Board may deny, suspend, revoke, or refuse to issue or renew the registration of an appraisal management company under this subchapter or may restrict or limit the activities of an appraisal management company or a person who owns an interest in or participates in the business of an appraisal management company if the board finds that any of the following circumstances apply to the applicant, a registrant, or a partner, member, manager, officer, director, managing principal, controlling person, or a person occupying a similar status or performing similar functions, or a person directly or indirectly controlling the applicant or registrant:
   1. The person's application for registration when filed or after filing contained a statement that in light of the circumstances under which it was made is false or misleading with respect to a material fact;
   2. The person has violated or failed to comply with this subchapter;
   3. The person has pleaded guilty or nolo contendere to or been found guilty of:
      1. A felony listed under § 17-3-102; or
      2. Within the past ten (10) years:
         1. A misdemeanor involving mortgage lending or real estate appraising; or
         2. An offense involving breach of trust or fraudulent or dishonest dealing;
   4. The person is permanently or temporarily enjoined by a court of competent jurisdiction from engaging in or continuing any conduct or practice involving appraisal management services or operating an appraisal management company;
   5. The person is the subject of an order of the board or any other state appraisal management company regulatory agency denying, suspending, or revoking the person's privilege to operate as an appraisal management company;
   6. The person acted as an appraisal management company while not properly registered by the board; or
   7. The person failed to pay the proper filing or renewal fee under this subchapter.
2. Upon its own motion or the written complaint of a person and after notice and hearing as prescribed by the Arkansas Administrative Procedure Act, § 25-15-201 et seq., the board may:
   1. Suspend or revoke the registration of a registrant;
   2. Impose a fine not to exceed one thousand dollars ($1,000) per violation; or
   3. Take other appropriate disciplinary actions as established by rule of the board.
3. 1. Before imposing a penalty on a registrant, the board shall:
      1. Notify the registrant in writing of any charges made at least twenty (20) days before the date set for the hearing; and
      2. Afford the registrant an opportunity to be heard in person or by counsel.
   2. The board may make findings of fact and shall deliver or mail the findings to the registrant charged with an offense under this subchapter.

History. Acts 2009, No. 628, § 1; 2017, No. 535, § 9; 2019, No. 990, § 15.

Amendments. The 2017 amendment substituted “registered” for “licensed” in (a)(6).

The 2019 amendment inserted “listed under § 17-3-102” in (a)(3)(A); and deleted “moral turpitude” following “trust” in (a)(3)(B)(ii).

17-14-411. Injunctive relief — Criminal penalty.

1. The Arkansas Appraiser Licensing and Certification Board may appear in its own name in a circuit court of competent jurisdiction to obtain injunctive relief to prevent a person from violating this subchapter.
2. The circuit court may grant a temporary or permanent injunction regardless of whether:
   1. Criminal prosecution has been or may be instituted as a result of the violation of this subchapter; or
   2. The person is the holder of a registration issued by the board.
3. A violation of this subchapter is a Class D felony.

History. Acts 2009, No. 628, § 1.

17-14-412. Applicability.

This subchapter does not apply to:

1. An agency of the federal, state, county, or municipal government;
2. A person authorized to engage in business as a bank, farm credit system, savings institution, or credit union under the laws of the United States, the State of Arkansas, or any other state;
3. A licensed real estate broker or licensed real estate agent performing activities regulated by the Arkansas Real Estate Commission unless the licensed real estate broker or licensed real estate agent receives compensation or other pecuniary gain in connection with the referral, placement, or execution of a request for appraisal services;
4. An officer or employee of a government agency, person, licensed real estate broker, or licensed real estate agent described in this section when acting within the scope of employment of the officer or employee;
5. A federally regulated appraisal management company;
6. A person who exclusively employs appraisers on an employer and employee basis for the performance of appraisals;
7. A person acting as an appraisal firm that at all times during a calendar year employs on an exclusive basis as independent contractors not more than fifteen (15) appraisers for the performance of appraisals;
8. A person who enters into an agreement with an appraiser for the performance of an appraisal that on completion results in a report signed by both the appraiser who completed the appraisal and the appraiser who requested completion of the appraisal; or
9. An appraisal management company operating:
   1. Only in this state with an appraiser panel of not more than fifteen (15) appraisers at all times during a calendar year; or
   2. In multiple states, including this state, with an appraiser panel of not more than twenty-four (24) appraisers in all states at all times during a calendar year.

History. Acts 2009, No. 628, § 1; 2017, No. 535, § 10.

Amendments. The 2017 amendment added (5) through (9) and made stylistic changes.

17-14-413. Compensation of appraisers.

1. An appraisal management company shall:
   1. Except in cases of breach of contract or substandard performance of services, pay an appraiser for the completion of an appraisal or valuation assignment not later than the sixtieth day after the date the appraiser provides the initial appraisal or valuation assignment to the appraisal management company; and
   2. Compensate appraisers at a rate that is reasonable and customary for appraisals being performed in the market area of the property being appraised consistent with the presumptions under federal law.
2. An appraiser who is aggrieved under this section may file a complaint with the Arkansas Appraiser Licensing and Certification Board against the appraisal management company.

History. Acts 2017, No. 535, § 11.

17-14-414. Appraisal review.

Any employee of an appraisal management company or an independent contractor of the appraisal management company who performs a Uniform Standards of Professional Appraisal Practice Standard 3 appraisal review of an appraisal report on a property located in this state shall be an appraiser with the proper level of appraiser credential issued by the Arkansas Appraiser Licensing and Certification Board.

History. Acts 2017, No. 535, § 11.

Subchapter 1 — General Provisions

Cross References. Exemptions from contractors' license provision, § 17-25-102.

Landscape Architectural Practice Act, § 17-36-101 et seq.

License requirements to accompany invitation to bid, § 17-25-313.

Preambles. Acts 1941, No. 270 contained a preamble which read:

“Whereas, in order to safeguard life, health, and property, it is important that the practice of architecture in this state should be regulated;

“Now, therefore … .”

Effective Dates. Acts 1941, No. 270, § 16: approved Mar. 26, 1941. Emergency clause provided: “That inasmuch as designs for the construction of public and private works within the State of Arkansas are in progress, and that the design of all such public and private works, within the specific regulation of this act, ought to be regulated in order to safeguard life, health, and property and to promote the general welfare, an emergency is hereby declared to exist and this act shall take effect immediately upon its passage.”

17-15-101. Title.

This chapter may be known and cited as the “Arkansas Architectural Act”.

History. Acts 1941, No. 270, § 15; A.S.A. 1947, § 71-313.

17-15-102. Definitions.

As used in this chapter, unless the context otherwise requires:

1. “Architect” means a person who is technically and legally qualified to practice architecture;
2. “Direct supervision” means that degree of supervision by a person overseeing the work of another whereby the supervisor has both control over and detailed professional knowledge of the work prepared under his or her supervision;
3. [Repealed.]
4. 1. 1. “Practice of architecture” means the provision of, or offering to provide, services in connection with the design and construction, enlargement, or alteration of a building or group of buildings, and the space within and surrounding such buildings, which is designed for human occupancy or habitation.
      2. The services include:
         1. Planning;
         2. Providing preliminary studies, designs, drawings, specifications, and other technical submissions; and
         3. Administration of construction contracts.
   2. “Practice of architecture” does not include the practice of engineering as defined in the Arkansas Engineering Act, § 17-30-101 et seq., or the practice of contracting as defined in the Contractors Licensing Law, § 17-25-101 et seq., but a registered architect may perform such engineering work as is incidental to the practice of architecture, and an engineer may practice such architectural work as is incidental to the practice of engineering.
   3. The provisions of this chapter affirm the legal authority of an engineer licensed under the Arkansas Engineering Act, § 17-30-101 et seq., to provide consultation, investigation, evaluation, planning, and design of buildings intended for the accommodation of equipment, vehicles, goods, or processes or other utilitarian function, with human occupancy including office space as required for the support of these functions, provided the engineer is practicing within his or her area of competency as defined in the Arkansas Engineering Act, § 17-30-101 et seq.;
5. “Registered architect” means an architect holding a current registration in the State of Arkansas;
6. “Registration” means the certificate of registration issued by the Arkansas State Board of Architects, Landscape Architects, and Interior Designers; and
7. “Technical submissions” means drawings, specifications, studies, and other technical reports prepared in the course of practicing architecture.

History. Acts 1941, No. 270, §§ 1, 14; A.S.A. 1947, §§ 71-301, 71-312; Acts 1993, No. 578, § 1; 1995, No. 860, § 1; 2009, No. 1367, § 4; 2019, No. 990, § 16.

Amendments. The 2009 amendment deleted former (2) and redesignated the remaining subsections accordingly; rewrote (4) substituted “Arkansas State Board of Architects, Landscape Architects, and Interior Designers” for “examining body” in (6); and made minor stylistic changes.

The 2019 amendment repealed (3).

17-15-103. Penalties.

A person shall be guilty of a Class B misdemeanor each day of the unlawful practice to constitute a distinct and separate offense if that person:

1. Practices or offers to practice the profession of architecture in this state without being registered or exempted therefrom in accordance with the provisions of this chapter;
2. Gives any false or forged evidence of any kind to the Arkansas State Board of Architects, Landscape Architects, and Interior Designers or to any member thereof for the purpose of obtaining a certificate of registration;
3. Falsely impersonates any other registrant of like or different name;
4. Attempts to use an expired or revoked certificate of registration; or
5. Violates, or aids or abets any violation of, any of the provisions of this chapter.

History. Acts 1941, No. 270, § 7; A.S.A. 1947, § 71-308; Acts 2005, No. 1994, § 237.

Amendments. The 2005 amendment inserted “Class B” and deleted “and shall upon conviction be sentenced to pay a fine of not less than fifty dollars ($50.00) nor more than five hundred dollars ($500) or suffer imprisonment for a period not exceeding three (3) months, or be both so fined and imprisoned” following “misdemeanor.”

17-15-104. Enforcement.

1. It shall be the duty of all duly constituted officers of the law in this state, and of all political subdivisions, to enforce the provisions of this chapter and to prosecute any persons violating its provisions.
2. The Attorney General or his or her assistants shall act as legal advisors to the Arkansas State Board of Architects, Landscape Architects, and Interior Designers and shall render any legal assistance that may be necessary in carrying out the provisions of this chapter. The board, in its discretion, may employ other legal assistance that it may require.

History. Acts 1941, No. 270, § 11; A.S.A. 1947, § 71-311; Acts 2009, No. 1367, § 5.

Amendments. The 2009 amendment, in (b), inserted “Landscape Architects, and Interior Designers” in the first sentence; and substituted “board” for “examining body” in the last sentence.

17-15-105. Injunctions.

1. The violation of any provision of this chapter, and the construction of any structure in violation of its provisions, or any of them, is declared to constitute a nuisance and a threat to the public health and welfare and may be enjoined by the Arkansas State Board of Architects, Landscape Architects, and Interior Designers in the circuit courts of this state, even though the violation may be punishable by fine, the intention of this section being to provide a speedy means of protecting the public.
2. The board shall not be required to execute or give a bond for cost, indemnity, or stay, as a condition to the issuance of a restraining order or injunction, either temporary or permanent, in any court of this state.

History. Acts 1959, No. 157, § 3; A.S.A. 1947, § 71-314; Acts 2009, No. 1367, § 6.

Amendments. The 2009 amendment substituted “board” for “examining body” in (b).

Cross References. Jurisdiction of circuit courts, Ark. Const. Amend. 80, §§ 6, 19.

17-15-106. “Good Samaritan” law — Definitions.

1. If a registered architect or professional engineer voluntarily, without compensation other than expense reimbursement, provides architectural, structural, electrical, mechanical, or other design professional services related to a declared national, state, or local emergency caused by an earthquake, hurricane, tornado, fire, explosion, collapse, or other similar disaster or catastrophic event, at the request of or with the approval of a national, state, or local public official, law enforcement official, public safety official, or building inspection official believed by the registered architect or professional engineer to be acting in his or her official capacity, the registered architect or professional engineer shall not be liable for any personal injury, wrongful death, property damage, or other loss of any nature related to the registered architect's or professional engineer's acts, errors, or omissions in the performance of any architectural or engineering services for any structure, building, facility, project utility, equipment, machine, process, piping, or other system, either publicly or privately owned.
2. The immunity provided under subsection (a) of this section shall apply only to a voluntary architectural or engineering service that occurs during the emergency or within ninety (90) days following the end of the period for an emergency or other similar disaster or catastrophic event, unless extended by an executive order issued by the Governor under the Governor's emergency executive powers.
3. This section does not provide immunity for wanton, willful, or intentional misconduct.
4. As used in this section:
   1. “Building inspection official” means an appointed or elected federal, state, or local official with the executive responsibility to coordinate building inspection in the jurisdiction in which an emergency or event has occurred;
   2. “Law enforcement official” means an appointed or elected federal, state, or local official with the executive responsibility to coordinate law enforcement in the jurisdiction in which an emergency or event has occurred;
   3. “Professional engineer” means a person licensed as an engineer under a state's engineering licensure laws;
   4. “Public official” means a federal, state, or local elected official with the executive responsibility in the jurisdiction in which an emergency or event has occurred;
   5. “Public safety official” means an appointed or elected federal, state, or local official with the executive responsibility to coordinate public safety in the jurisdiction in which an emergency or event has occurred; and
   6. “Registered architect” means a person licensed under a state's architectural licensure laws as a registered architect.

History. Acts 2015, No. 534, § 1.

Subchapter 2 — Arkansas State Board of Architects, Landscape Architects, and Interior Designers

A.C.R.C. Notes. Acts 2009, No. 1367, § 1, provided:

“Renaming the Arkansas State Board of Architects.

“(a) The Arkansas State Board of Architects is renamed the Arkansas State Board of Architects, Landscape Architects, and Interior Designers.

“(b) The Arkansas Code Revision Commission shall replace all references to the ‘Arkansas State Board of Architects’ in the Arkansas Code with ‘Arkansas State Board of Architects, Landscape Architects, and Interior Designers’.”

Acts 2009, No. 1367, § 2, provided:

“(a) The State Board of Registered Interior Designers, established by § 17-35-201 et seq., is abolished, and its powers and duties are transferred to the Arkansas State Board of Architects, Landscape Architects, and Interior Designers by a type 3 transfer under § 25-2-106.

“(b) For purposes of this act, the Arkansas State Board of Architects, Landscape Architects, and Interior Designers shall be considered a principal department established by Acts 1971, No. 38.”

Acts 2009, No. 1367, § 3, provided:

“(a) The Arkansas State Board of Landscape Architects, established by § 17-36-201 et seq., is abolished, and its powers and duties are transferred to the Arkansas State Board of Architects, Landscape Architects, and Interior Designers by a type 3 transfer under § 25-2-106.

“(b) For purposes of this act, the Arkansas State Board of Architects, Landscape Architects, and Interior Designers shall be considered a principal department established by Acts 1971, No. 38.”

Cross References. Liability of committee members of professional societies, § 17-1-102.

Preambles. Acts 1941, No. 270 contained a preamble which read:

“Whereas, in order to safeguard life, health, and property, it is important that the practice of architecture in this state should be regulated;

“Now, therefore … .”

Effective Dates. Acts 1941, No. 270, § 16: approved Mar. 26, 1941. Emergency clause provided: “That inasmuch as designs for the construction of public and private works within the State of Arkansas are in progress, and that the design of all such public and private works, within the specific regulation of this act, ought to be regulated in order to safeguard life, health, and property and to promote the general welfare, an emergency is hereby declared to exist and this act shall take effect immediately upon its passage.”

Acts 1969, No. 334, § 2: Mar. 27, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law regarding the compensation of the assistant secretary of the Arkansas State Board of Architects is grossly inadequate and that the proper functioning of the Arkansas State Board of Architects depends upon the immediate fair and just compensation of the assistant secretary. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in effect from the date of its passage and approval.”

Acts 1981, No. 717, § 3: Mar. 25, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that regulatory boards and commissions covered by Acts 1977, No. 113 exist for the singular purpose of protecting the public health and welfare; that it is necessary and proper that the public be represented on such boards and commissions; that the operations of such boards and commissions have a profound effect on the daily lives of all Arkansans; and that the public's voice should not be muted on any question coming before such public bodies. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Identical Acts 1983, No. 131, § 6 and No. 135, § 6: Feb. 10, 1983. Emergency clauses provided: “It is hereby found and determined by the General Assembly that state boards and commissions exist for the singular purpose of protecting the public health and welfare; that citizens over 60 years of age represent a significant percentage of the population; that it is necessary and proper that the older population be represented on such boards and commissions; that the operations of the boards and commissions have a profound effect on the daily lives of older Arkansans; and that the public voice of older citizens should not be muted as to questions coming before such bodies. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

17-15-201. Members.

1. 1. The Arkansas State Board of Architects, Landscape Architects, and Interior Designers shall consist of nine (9) members, appointed by the Governor and confirmed by the Senate for terms of five (5) years, or until their successors are duly appointed and qualified.
   2. The Governor shall consult professional societies and associations representing the three (3) design professions before making an appointment under this section.
2. 1. Each member of the board shall be a citizen of the United States and a resident of this state.
   2. Five (5) members shall be architects of recognized standing who have been engaged in the independent practice of architecture for at least ten (10) years before appointment.
   3. 1. Two (2) members shall not be actively engaged in or retired from the profession of architecture, interior design, or landscape architecture.
      2. The two (2) members shall represent consumers, and both shall be appointed from the state at large subject to confirmation by the Senate.
      3. The two (2) positions may not be held by the same person. Both shall be full voting members but shall not participate in the grading of examinations.
   4. One (1) member shall be a landscape architect licensed by the board under § 17-36-301 et seq.
   5. One (1) member shall be a registered interior designer registered by the board under § 17-35-301 et seq.
3. Each member of the board shall receive a certificate of his or her appointment from the Governor and before beginning his or her term of office shall file with the Secretary of State his or her written oath for the faithful discharge of his or her duties.
4. 1. By due process of law, the Governor may remove any member of the board for misconduct, incompetency, neglect of duty, or for any malfeasance in office.
   2. Vacancies in the membership of the board shall be filled for the unexpired term by appointment by the Governor as provided for in subsection (b) of this section.
   3. If the Governor does not name a successor for an unexpired term or fill a vacancy within three (3) months after the term of a member has expired or a vacancy occurred, then the remaining members of the board shall be empowered to, and may, fill the vacancy by electing a member having the qualifications required by subsection (b) of this section to serve out the vacant term.
5. Each member of the board may receive expense reimbursement under § 25-16-901 et seq.

History. Acts 1941, No. 270, § 3; 1957, No. 219, § 1; 1959, No. 157, § 2; 1977, No. 113, §§ 1-3; 1981, No. 717, § 2; 1983, No. 131, §§ 1-3, 5; 1983, No. 135, §§ 1-3, 5; A.S.A. 1947, §§ 6-617 — 6-619, 6-623 — 6-626, 71-303; Acts 1997, No. 250, § 124; 1999, No. 1338, § 1; 2009, No. 1367, § 7; 2015, No. 1100, § 21.

Publisher's Notes. The terms of the members of the Arkansas State Board of Architects, other than the representatives of consumers and the elderly, are arranged so that one term expires every year.

Acts 1981, No. 717, § 1, provided that the purpose of the act was to provide full voting authority to consumer representatives on state boards and commissions affected by Acts 1977, No. 113.

Amendments. The 2009 amendment rewrote the section.

The 2015 amendment rewrote (a)(2).

17-15-202. Organization and proceedings.

1. The Arkansas State Board of Architects, Landscape Architects, and Interior Designers shall hold at least two (2) meetings each year for the purpose of examining the candidates for registration and license. Special meetings shall be held at such times as the regularly adopted rules of the board provide.
2. Five (5) members of the board shall constitute a quorum, but no action may be taken without at least three (3) votes in accord.
3. The board shall adopt and have an official seal.
4. 1. The board shall annually elect a president, a secretary, and a treasurer.
   2. The offices of secretary and treasurer may be held by the same person, and there may be included in the election, if deemed advisable by the board, a vice president.
5. All expenses incurred by the board for the administration of this chapter, § 17-35-101 et seq., and § 17-36-101 et seq. are to be defrayed by revenues provided for in this chapter, § 17-35-101 et seq., and § 17-36-101 et seq.

History. Acts 1941, No. 270, § 3; 1957, No. 219, § 1; 1969, No. 334, § 1; A.S.A. 1947, § 71-303; Acts 2009, No. 1367, § 7.

Amendments. The 2009 amendment rewrote the section.

17-15-203. Duties and powers.

1. 1. The Arkansas State Board of Architects, Landscape Architects, and Interior Designers shall make such rules as may be desirable or necessary for the performance of its duties and for carrying out the purposes of this chapter, § 17-35-101 et seq., and § 17-36-101 et seq.
   2. The board may bring suit in its proper name to enforce, or restrain the violation of, any provision of this chapter, § 17-35-101 et seq., and § 17-36-101 et seq.
2. 1. In carrying into effect the provisions of this chapter, § 17-35-101 et seq., and § 17-36-101 et seq., the board, under the hand of its president and the seal of the board, may:
      1. Subpoena witnesses and compel their attendance; and
      2. Require the production of books, papers, documents, etc., in a case involving revocation of registration.
   2. The president or the secretary may administer oaths or affirmations to witnesses appearing before the board.
   3. 1. If a person refuses to obey a subpoena issued by the board or refuses to testify or produce books, papers, or other documents, the board may present its petition to a court of record, setting forth the facts.
      2. The court shall, in a proper case, issue its subpoena to the person requiring his or her attendance before the court to testify or produce the books, papers, and documents as may be deemed necessary and pertinent.
      3. A person failing or refusing to obey the subpoena or order of the court may be proceeded against in the same manner as for refusal to obey any other subpoena.
3. The board or a committee thereof is entitled to the services of the Attorney General and the services of the prosecuting attorneys for the county and district in which enforcement is required. The board may employ legal advice necessary for the proper conduct of its affairs.
4. 1. Once a complaint has been received in the office of the board, the board shall send notice in accordance with § 25-15-208(a)(2) to the person or entity allegedly committing the violation informing the person or entity that if the person or entity fails to respond to the notice, the board will hold a hearing on the alleged violation. The board shall take appropriate action upon receiving the reply.
   2. 1. 1. After providing notice and a hearing, the board may levy civil penalties, in an amount not to exceed five thousand dollars ($5,000) for each violation, against those individuals or entities found to be in violation of this chapter, § 17-35-101 et seq., § 17-36-101 et seq., or rules promulgated thereunder.
         2. All revenue received under this section shall be deposited into one (1) or more financial institutions in the state and shall be used for the purposes of defraying the expenses of the board as required for carrying out the provisions of this chapter, § 17-35-101 et seq., and § 17-36-101 et seq.
         3. These penalties shall be in addition to other penalties that may be imposed by the board under this chapter, § 17-35-101 et seq., or § 17-36-101 et seq.
         4. Unless the penalty assessed under this section is paid within fifteen (15) days following the date for an appeal from the order, the board shall have the power to file suit in the Pulaski County Circuit Court to obtain a judgment for the amount of penalty not paid.
      2. All actions taken by the board shall comply with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1941, No. 270, § 3; 1957, No. 219, § 1; 1959, No. 157, § 2; 1969, No. 334, § 1; A.S.A. 1947, § 71-303; Acts 1993, No. 578, § 2; 1999, No. 1338, § 2; 2009, No. 1367, § 7.

Amendments. The 2009 amendment rewrote the section.

17-15-204. Records and reports.

1. The Arkansas State Board of Architects, Landscape Architects, and Interior Designers shall keep a record of its proceedings and a register of all applications for registration that shall show:
   1. Name, age, and residence of the applicant;
   2. Date of application;
   3. Educational and other qualifications;
   4. Whether or not an examination was required;
   5. Whether the applicant was rejected;
   6. Whether a certificate of registration was granted;
   7. Date of the action of the board; and
   8. Any other information as may be deemed necessary by the board.
2. A roster showing the names, addresses, and places of business of all registered architects, registered landscape architects, and registered interior designers shall be prepared by the secretary of the board at least one time each year.

History. Acts 1941, No. 270, § 3; A.S.A. 1947, § 71-303; Acts 2009, No. 1367, § 7.

Amendments. The 2009 amendment rewrote the section.

17-15-205. Continuing education.

1. The Arkansas State Board of Architects, Landscape Architects, and Interior Designers may adopt rules setting minimum standards of continuing education to ensure that all registered architects, registered landscape architects, and registered interior designers remain informed of those technical and professional subjects that the board deems appropriate.
2. The board may by rules describe the methods by which such standards may be satisfied, and may provide that failure to satisfy the minimum standards shall be grounds for nonrenewal of the certificate of registration.

History. Acts 1995, No. 784, § 1; 2009, No. 1367, § 7; 2019, No. 315, § 1344.

Amendments. The 2009 amendment rewrote the section.

The 2019 amendment substituted “rules” for “regulations” in (a).

Subchapter 3 — Registration and Licensing

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Preambles. Acts 1941, No. 270 contained a preamble which read:

“Whereas, in order to safeguard life, health, and property, it is important that the practice of architecture in this state should be regulated;

“Now, therefore … .”

Effective Dates. Acts 1941, No. 270, § 16: approved Mar. 26, 1941. Emergency clause provided: “That inasmuch as designs for the construction of public and private works within the State of Arkansas are in progress, and that the design of all such public and private works, within the specific regulation of this act, ought to be regulated in order to safeguard life, health, and property and to promote the general welfare, an emergency is hereby declared to exist and this act shall take effect immediately upon its passage.”

Acts 1975 (1st Extended Sess., 1976), No. 1204, § 3: Feb. 11, 1976. Emergency clause provided: “It is hereby found and determined by the General Assembly that construction costs in this state have increased significantly in recent years, that the existing statutes specify the circumstances under which architects must be employed to design such buildings, that the dollar amounts specified in such statutes have not been increased adequately to compensate for the significant increase in building construction costs in this state, and that the immediate passage of this act is necessary to correct such situation, thereby removing an inequity that is working an undue hardship on the building industry in the state. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 18, § 3: Feb. 3, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that construction costs in this state have increased significantly in recent years; that the existing statutes specify the circumstances under which architects must be employed to design buildings; that the dollar amounts specified in such statutes have not been increased adequately to compensate for the significant increase in building construction costs in this state; and that the immediate passage of this act is necessary to correct such situation, thereby removing an inequity that is working an undue hardship on the building industry in this state. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 646, § 5: Mar. 23, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present architectural licensing law does not allow an architectural/engineering firm to engage in the practice of architecture in this state; that in certain instances such practice is beneficial; and that this act is immediately necessary to prescribe procedures for allowing the same. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 1002, § 3: Apr. 14, 1987. Emergency clause provided: “It is hereby found and determined by the General Assembly that because of the case Ricarte v. State, CR 86-31, a question has arisen over the validity of Act 1204 of the Extended Session of 1976; that this Act is a reenactment of the former law; and that the immediate passage of this Act is necessary to clarify the state of the law on this issue. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

17-15-301. License required.

In order to safeguard life, health, and property, no person shall practice architecture in this state, or engage in preparing plans, specifications, or preliminary data for the erection or alteration of any building located within the boundaries of this state, or use the title “architect”, or display or use any title, sign, card, advertisement, or other device to indicate that the person practices or offers to practice architecture, or is an architect, unless the person shall have secured from the Arkansas State Board of Architects, Landscape Architects, and Interior Designers a certificate of registration and license in the manner hereinafter provided and shall thereafter comply with the provisions of this chapter governing the registration and licensing of architects.

History. Acts 1941, No. 270, § 2; A.S.A. 1947, § 71-302.

17-15-302. Exemptions.

1. The following shall be exempt from the provisions of this chapter:
   1. A professional engineer, as defined in § 17-30-101, but only for work incidental to engineering practice if the professional engineer does not use the designation “architect” or any related term;
   2. Employees of those lawfully practicing architecture who are acting under the instruction, control, or supervision of their employer;
   3. Officers and employees of the United States Government while engaged within this state in the practice of architecture for the government;
   4. Residents of this state who do not use the title “architect” or any term derived therefrom who act as designers for:
      1. Buildings that are to be constructed for personal use, such as residences, if the buildings are not intended or adaptable for public employment, assembly, or any other use under which they will be open to the public;
      2. Single family detached, duplex, triplex, and quadruplex dwellings; or
      3. Buildings whose total cumulative and fair market value to complete, not including site, does not exceed one hundred thousand dollars ($100,000); and
   5. Owners and employees of planing mills, woodworking establishments, sash and door manufacturers, and jobbers in the designing, planning, detailing, and preparation of data on millwork, woodwork, and cabinetwork, provided they do not use the designation “architect” or any term derived therefrom.
2. 1. The terms of this chapter shall not apply to:
      1. Any public school district exempted from the provisions of this chapter; or
      2. Every public school district embracing a city with a population in excess of thirty thousand (30,000) which maintains a full-time superintendent of buildings with engineering and architectural experience.
   2. This exception shall only apply:
      1. If the total cumulative and fair market value to complete the repair and maintenance of buildings already constructed and alterations thereof does not exceed the sum of one hundred thousand dollars ($100,000); and
      2. If the total cumulative and fair market value to complete the new structures will not exceed the sum of one hundred thousand dollars ($100,000).
3. The provisions of this chapter shall not apply to any public school district, place of assembly, daycare, church, or building not more than one (1) story high where:
   1. The total cumulative and fair market value to complete the building, alteration, or structure does not exceed the sum of one hundred thousand dollars ($100,000); and
   2. The plans are approved by the State Fire Marshal.

History. Acts 1941, No. 270, § 2; 1959, No. 157, § 1; 1971, No. 582, § 1; 1973, No. 417, § 1; 1975 (Extended Sess., 1976), No. 1204, § 1; 1981, No. 18, § 1; A.S.A. 1947, § 71-302; reen. Acts 1987, No. 1002, § 1; 1995, No. 860, § 2; 1995, No. 1108, §§ 1, 2; 1999, No. 1338, § 3; 2011, No. 897, § 12.

A.C.R.C. Notes. Part of this section was reenacted by Acts 1987, No. 1002, § 1. Acts 1987, No. 834, provided that 1987 legislation reenacting acts passed in the 1976 Extended Session should not repeal any other 1987 legislation and that such other legislation would be controlling in the event of conflict.

Amendments. The 2011 amendment substituted “A professional engineer, as defined in § 17-30-101” for “Professional engineers duly licensed or registered” in (a)(1).

17-15-303. Partnerships and corporations.

1. A partnership or a corporation may be admitted to practice architecture in this state if:
   1. Two-thirds (2/3) of the partners, if a partnership, or two-thirds (2/3) of the directors, if a corporation, are registered under the laws of any state to practice architecture or engineering; and
   2. The person having the practice of architecture in his or her charge is himself or herself a partner, if a partnership, or a director, if a corporation, and registered to practice architecture in this state.
2. The Arkansas State Board of Architects, Landscape Architects, and Interior Designers is authorized to require by rule any partnership or corporation practicing architecture in this state to file information concerning its officers, directors, beneficial owners, and other aspects of its business organization upon such forms as the board prescribes.

History. Acts 1941, No. 270, § 2; 1959, No. 157, § 1; 1971, No. 582, § 1; 1981, No. 646, §§ 1, 2; A.S.A. 1947, § 71-302; Acts 2019, No. 315, § 1345.

Publisher's Notes. Acts 1981, No. 646, § 3, provided that the amendment made to this section by that act should control over any other act regulating the registration, licensure, or incorporation of partnerships and corporations practicing architecture.

Amendments. The 2019 amendment substituted “rule” for “regulation” in (b).

17-15-304. Examinations.

1. To be registered and licensed, an applicant must pass an examination for licensure.
2. 1. To be qualified for admission to an examination to practice architecture in the State of Arkansas, an applicant shall be at least twenty-one (21) years of age.
   2. In addition, the applicant shall have all the qualifications required for admission to either the written examination or the senior examination of the National Council of Architectural Registration Boards.
3. The Arkansas State Board of Architects, Landscape Architects, and Interior Designers is empowered to make all necessary rules governing the content, grading, time, place, and method of conducting the examinations and may adopt the examinations and recommended grading procedures of the National Council of Architectural Registration Boards.

History. Acts 1941, No. 270, § 4; 1971, No. 582, § 2; A.S.A. 1947, § 71-304; Acts 1993, No. 1219, § 2; 2019, No. 315, § 1346; 2019, No. 990, § 17.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (c).

The 2019 amendment by No. 990, in (b)(1), substituted “shall be” for “must be” and deleted “and of good moral character” following “age”.

17-15-305. Certification generally.

1. Upon payment of the proper fee under this chapter, the Arkansas State Board of Architects, Landscape Architects, and Interior Designers shall issue a certificate of registration and license to an applicant who:
   1. In the opinion of the board, has satisfactorily met all the requirements of this chapter; or
   2. 1. Has been previously issued certificates of registration and license by a body created under legislative enactment of the State of Arkansas.
      2. Certificates shall show a license number and the full name of the registrant and shall bear the signatures of the president and secretary and the seal of the board.
2. 1. Issuance of a certificate of registration by the board is evidence that the person named in the certificate of registration is entitled to all the rights and privileges of a registered architect while the certificate remains unexpired and unrevoked.
   2. Certification is synonymous with registration, with the full meaning and effect of a license to practice architecture.
3. Certificates of registration shall expire on July 31 of each year and shall become invalid on that date unless renewed.
4. Renewal may be effected at any time during the month of July by payment of the renewal fee under § 17-15-311.
5. Upon issuing the initial certificate of registration, the board shall include a copy of the Arkansas Architectural Act, § 17-15-101 et seq. The licensee shall return a signed form to the board stating that he or she has read and understands the Arkansas Architectural Act, § 17-15-101 et seq.

History. Acts 1941, No. 270, § 6; A.S.A. 1947, § 71-306; Acts 1999, No. 1338, § 4; 2009, No. 1367, § 8.

Amendments. The 2009 amendment substituted “board” for “examining body” throughout the section; in (a), inserted “Landscape Architects, and Interior Designers” in the introductory language; subdivided (a)(2), deleted “examining” preceding “body” in (a)(2)(A), and substituted “license number” for “serial number” in (a)(2)(B); subdivided (b); and made related and minor stylistic changes.

17-15-306. [Repealed.]

Publisher's Notes. This section, concerning associate architects' temporary licenses, was repealed by 2009 Acts, No. 1367, § 9. The section was derived from Acts 1941, No. 270, § 5; 1971, No. 582, §§ 3-5; A.S.A. 1947, § 71-305.

17-15-307. Official seal.

1. Upon registration, each registrant hereunder shall obtain a seal of such design as the Arkansas State Board of Architects, Landscape Architects, and Interior Designers shall authorize and direct. Plans and specifications prepared by, or under the direct supervision of, a registered architect shall be stamped with this seal during the life of the registrant's certificate. It shall be unlawful for anyone to stamp or seal any documents with the seal after the certificate of the registrant named thereon has expired or has been revoked unless the certificate shall have been renewed or reissued.
2. No official of this state, or of any county, city, town, or village, now or hereafter charged with the enforcement of laws, ordinances, rules, or regulations relating to the construction or alteration of buildings, shall accept or approve any plans or specifications which have not been prepared and submitted in full accord with all the provisions of this chapter. Nor shall any payment be approved by any public body for any work, the plans and specifications for which have not been so prepared and signed and sealed by the author.

History. Acts 1941, No. 270, § 6[6A]; A.S.A. 1947, § 71-307; Acts 2019, No. 315, § 1347.

Amendments. The 2019 amendment inserted “rules” in the first sentence of (b).

17-15-308. Grounds for revocation.

The Arkansas State Board of Architects, Landscape Architects, and Interior Designers may revoke the certificate of registration and license of an architect upon proof that:

1. The holder of the certificate of registration or license is practicing in violation of this chapter or of the proper rules of the board governing this chapter;
2. The license or certificate of registration has been obtained by fraud or misrepresentation or the person named therein has obtained it by fraud or misrepresentation;
3. Money other than the regular fees provided for has been paid for the license or certificate of registration;
4. The holder of the license or certificate of registration is falsely impersonating a practitioner or former practitioner of a like or different name or is practicing under an assumed or fictitious name;
5. The holder of the license or certificate of registration has been guilty of a felony listed under § 17-3-102;
6. The holder of the license or certificate of registration has aided or abetted in the practice of architecture a person not duly authorized to practice architecture under this chapter;
7. The holder of the license or certificate of registration has been guilty of fraud or deceit or of gross negligence or misconduct in the practice of architecture;
8. The holder of the certificate of registration or license has been guilty of gross incompetency or recklessness in the construction or designing of buildings;
9. The holder of the license or certificate of registration affixed or permitted to be affixed his or her seal or name to any plans, specifications, drawings, or related documents that were not prepared by him or her or under his or her responsible supervisory control; or
10. The holder of the license or certificate of registration has been adjudged mentally incapable by a court of competent jurisdiction.

History. Acts 1941, No. 270, § 10; 1971, No. 582, § 7; A.S.A. 1947, § 71-310; Acts 2009, No. 1367, § 10; 2019, No. 990, § 18.

Amendments. The 2009 amendment inserted “Landscape Architects, and Interior Designers” in the introductory language; in (1), deleted “and regulations” following “rules,” and substituted “board” for “examining body”; and made numerous minor stylistic changes throughout the section.

The 2019 amendment added “listed under § 17-3-102” in (5).

17-15-309. Revocation proceedings.

1. 1. A person may prefer charges of fraud, deceit, gross negligence, incompetency, or misconduct against a registrant.
   2. The charges shall be:
      1. In writing;
      2. Sworn to by the person making them; and
      3. Filed with the Secretary of the Arkansas State Board of Architects, Landscape Architects, and Interior Designers.
2. All charges deemed worthy of consideration by the board shall be heard by the board within three (3) months after the date upon which they are received by the secretary.
3. 1. The time and place for the hearing shall be fixed by the board.
   2. A copy of the charges, together with a notice of the time and place of hearing, shall be personally served on the registrant accused or shall be mailed to the registrant at his or her last known address at least thirty (30) days before the date fixed for the hearing.
   3. At the hearing, the accused registrant shall have the right to:
      1. Appear personally and by counsel;
      2. Cross-examine witnesses appearing against him or her; and
      3. Produce evidence and witnesses in his or her own defense.
4. If after the hearing four (4) or more members of the board vote in favor of finding the accused guilty, the board shall revoke the certificate of registration and license of the architect.

History. Acts 1941, No. 270, § 10; A.S.A. 1947, § 71-310; Acts 2009, No. 1367, § 10.

Publisher's Notes. This section may be affected by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

Amendments. The 2009 amendment substituted “board” for “examining body” throughout the section; subdivided (a) and inserted “Landscape Architects, and Interior Designers” in (a)(2)(C); subdivided (c); and made related and minor stylistic changes.

17-15-310. Reissuance of certificate of registration.

The Arkansas State Board of Architects, Landscape Architects, and Interior Designers may reissue a certificate of registration to a person whose certificate of registration has lapsed or has been suspended or revoked, if no charges of violation of this act are pending in any court of record in this state and three (3) or more members of the board vote in favor of reissuance.

History. Acts 1941, No. 270, § 10; A.S.A. 1947, § 71-310; Acts 2009, No. 1367, § 10.

Amendments. The 2009 amendment rewrote the section.

17-15-311. Fees.

1. For the purpose of defraying the expenses of the Arkansas State Board of Architects, Landscape Architects, and Interior Designers and as required for carrying out the provisions of this chapter, the following fees and penalties shall be paid by an architect licensed under this chapter:
   1. For an application for examination and registration, an amount to be fixed by the board that shall at no time exceed the sum of three hundred fifty dollars ($350);
   2. For a certificate of registration by exemption, or by transfer of registration from another state or country, an amount to be fixed by the board that shall at no time exceed the sum of three hundred fifty dollars ($350);
   3. For annual renewal of the registration certificate, an amount to be fixed by the board that shall at no time exceed the sum of two hundred fifty dollars ($250);
   4. For the restoration of a revoked certificate of registration or revoked corporate registration, an amount to be fixed by the board that shall at no time exceed the annual renewal fees in effect plus a penalty of fifty dollars ($50.00) for each month for the first three (3) months during which time the certificate of registration or corporation registration has been revoked. Thereafter, an additional penalty of one hundred dollars ($100) for the balance of one (1) year for a maximum penalty of two hundred fifty dollars ($250) per year for a maximum of three (3) years;
   5. For a certificate of registration for a corporation, an amount to be fixed by the board that shall at no time exceed the sum of three hundred fifty dollars ($350); and
   6. 1. For the issuing of an emeritus license, an amount to be fixed by the board that shall at no time exceed the sum of fifty dollars ($50).
      2. An emeritus license may be issued by the board to an architect who:
         1. Is at least sixty-five (65) years of age;
         2. Has retired; and
         3. Does not practice architecture.
2. 1. All fees must accompany applications.
   2. No part of these fees shall be refunded except such part as may be refunded when a certificate of registration is not issued, as may be provided under the rules of the board.
3. It is unlawful for an unregistered person to collect a fee for architectural services, except as an employee collecting a fee as a representative of a registered architect who has performed architectural services.
4. The fee for a duplicate license shall not exceed one hundred dollars ($100).

History. Acts 1941, No. 270, § 9; 1971, No. 582, § 6; A.S.A. 1947, § 71-309; Acts 1991, No. 167, § 1; 1993, No. 578, § 3; 2009, No. 1367, § 10.

Amendments. The 2009 amendment rewrote the section.

17-15-312. Practice by architect not registered in Arkansas — Definition.

1. This chapter does not prevent:
   1. A nonresident who holds the certification issued by the National Council of Architectural Registration Boards from offering to render the professional services involved in the practice of architecture, if for every project the person is involved in, he or she notifies the Arkansas State Board of Architects, Landscape Architects, and Interior Designers in writing that he or she:
      1. Holds a National Council of Architectural Registration Boards certificate and is not currently registered in Arkansas but will be present in Arkansas for the purposes of offering to render architectural services for a single project;
      2. Will deliver a copy of the notice referred to in subdivision (a)(1)(A) of this section to every potential client to whom the applicant offers to render architectural services; and
      3. Promises to apply to the Arkansas State Board of Architects, Landscape Architects, and Interior Designers within thirty (30) days for registration if selected as the architect for the project;
   2. A person who holds the certification issued by the National Council of Architectural Registration Boards but who is not currently registered in Arkansas from seeking an architectural commission by participating in a single architectural design competition for a project in Arkansas, if for every project the person is involved in, the person notifies the Arkansas State Board of Architects, Landscape Architects, and Interior Designers in writing that:
      1. The person holds a National Council of Architectural Registration Boards certificate and is not currently registered in the jurisdiction but will be present in Arkansas for the purpose of participating in an architectural design competition;
      2. The person will deliver a copy of the notice referred to in subdivision (a)(2)(A) of this section to every person conducting an architectural design competition in which the applicant participates; and
      3. The person promises to apply to the Arkansas State Board of Architects, Landscape Architects, and Interior Designers within thirty (30) days after being selected as the architect for the project; and
   3. 1. A person who is not currently registered in this state but who is currently registered in another jurisdiction from providing uncompensated professional services at the scene of an emergency at the request of a public officer, public safety officer, or municipal or county building inspector acting in an official capacity.
      2. “Emergency” means earthquake, eruption, flood, storm, hurricane, or other catastrophe that has been designated as a major disaster or emergency by the President of the United States or the Governor.
2. An individual who possesses a professional degree in architecture and is enrolled in the Architectural Experience Program of the National Council of Architectural Registration Boards or under the jurisdiction of the Arkansas State Board of Architects, Landscape Architects, and Interior Designers may use the title “Architectural Intern” or “Intern Architect” to identify himself or herself.

History. Acts 1999, No. 1338, § 5; 2009, No. 1367, § 10; 2011, No. 859, § 1.

Amendments. The 2009 amendment substituted “Arkansas State Board of Architects, Landscape Architects, and Interior Designers” for “examining body” throughout the section; inserted “Landscape Architects, and Interior Designers” in the introductory language of (a)(1) and in (a)(4); subdivided (a)(3); and made related and minor stylistic changes.

The 2011 amendment redesignated the section.

Subchapter 1 — Uniform Athlete Agents Act

A.C.R.C. Notes. This uniform act has been substantially modified, amended, and parts repealed by the Arkansas General Assembly.

Effective Dates. Acts 2011, No. 204, § 8: Mar. 8, 2011. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this bill reforms the athlete agent laws of Arkansas to protect student athletes from unscrupulous actions by athlete agents; that the issues sought to be addressed by this act are currently ongoing and present problems for student athletes and institutions of higher education; and that the reforms instituted by this act should become effective as soon as possible to address these issues. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

17-16-101. Short title.

This subchapter may be cited as the Uniform Athlete Agents Act.

History. Acts 2001, No. 1622, § 1.

17-16-102. Definitions.

In this subchapter:

1. “Agency contract” means an agreement in which a student-athlete authorizes a person to negotiate or solicit on behalf of the student-athlete a professional-sports-services contract or an endorsement contract.
2. 1. “Athlete agent” means an individual who enters into an agency contract with a student-athlete or, directly or indirectly, recruits or solicits a student-athlete to enter into an agency contract.
   2. “Athlete agent” includes without limitation an individual who:
      1. Is authorized by a student-athlete to enter into an agreement;
      2. Works for or on behalf of an athlete agent; or
      3. Represents to the public that he or she is an athlete agent.
   3. “Athlete agent” does not include a spouse, parent, sibling, grandparent, or guardian of the student-athlete or an individual acting solely on behalf of a professional sports team, professional sports organization, or educational institution, unless that individual offers, solicits for himself or herself, solicits on the student-athlete's behalf, or solicits on behalf of the student-athlete's family or friends any form of a financial benefit or gift not allowed by the regulations or bylaws of the National Collegiate Athletic Association as they existed on January 1, 2011.
3. “Athletic director” means an individual responsible for administering the overall athletic program of an educational institution or, if an educational institution has separately administered athletic programs for male students and female students, the athletic program for males or the athletic program for females, as appropriate.
4. “Contact” means a communication, direct or indirect, between an athlete agent and a student-athlete, to recruit or solicit the student-athlete to enter into an agency contract.
5. “Endorsement contract” means an agreement under which a student-athlete is employed or receives consideration to use on behalf of the other party any value that the student-athlete may have because of publicity, reputation, following, or fame obtained because of athletic ability or performance.
6. “Family” means any person related to a student-athlete by blood, marriage, or adoption.
7. “Intercollegiate sport” means a sport played at the collegiate level for which eligibility requirements for participation by a student-athlete are established by a national association for the promotion or regulation of collegiate athletics.
8. “Person” means an individual, corporation, business trust, estate, trust, partnership, limited liability company, association, joint venture, government; governmental subdivision, agency, or instrumentality; public corporation, or any other legal or commercial entity.
9. “Professional-sports-services contract” means an agreement under which an individual is employed, or agrees to render services, as a player on a professional sports team, with a professional sports organization, or as a professional athlete.
10. “Record” means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
11. “Registration” means registration as an athlete agent pursuant to this subchapter.
12. “State” means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States.
13. “Student-athlete” means an individual who engages in, is eligible to engage in, or may be eligible in the future to engage in, any intercollegiate sport. If an individual is permanently ineligible to participate in a particular intercollegiate sport, the individual is not a student-athlete for purposes of that sport.

History. Acts 2001, No. 1622, § 2; 2011, No. 204, § 2.

A.C.R.C. Notes. Acts 2011, No. 204, § 1, provided: “This act shall be known and may be cited as the ‘Athlete Agent Reform Act of 2011’.”

Amendments. The 2011 amendment rewrote (2); and inserted present (6) and redesignated the remaining subdivisions accordingly.

17-16-103. Service of process — Subpoenas.

By acting as an athlete agent in this State, a nonresident individual appoints the Secretary of State as the individual's agent for service of process in any civil action in this State related to the individual's acting as an athlete agent in this State.

History. Acts 2001, No. 1622, § 3.

17-16-104. Athlete agents — Registration required — Void contracts.

1. Except as otherwise provided in subsection (b), an individual may not act as an athlete agent in this State without holding a certificate of registration under § 17-16-106.
2. Before being issued a certificate of registration, an individual may act as an athlete agent in this State for all purposes except signing an agency contract, if:
   1. a student-athlete or another person acting on behalf of the student-athlete initiates communication with the individual; and
   2. within seven (7) days after an initial act as an athlete agent, the individual submits an application for registration as an athlete agent in this State.
3. An agency contract resulting from conduct in violation of this section is void and the athlete agent shall return any consideration received under the contract.

History. Acts 2001, No. 1622, § 4.

17-16-105. Registration as athlete agent — Form — Requirements.

1. An applicant for registration shall submit an application for registration to the Secretary of State in a form prescribed by the Secretary of State. An application filed under this section is a public record. The application must be in the name of an individual and, except as otherwise provided in subsection (b), signed or otherwise authenticated by the applicant under penalty of perjury and state or contain:
   1. the name of the applicant and the address of the applicant's principal place of business;
   2. the name of the applicant's business or employer, if applicable;
   3. any business or occupation engaged in by the applicant for the five (5) years next preceding the date of submission of the application;
   4. a description of the applicant's:
      1. formal training as an athlete agent;
      2. practical experience as an athlete agent; and
      3. educational background relating to the applicant's activities as an athlete agent;
   5. the names and addresses of three (3) individuals not related to the applicant who are willing to serve as references;
   6. the name, sport, and last known team for each individual for whom the applicant acted as an athlete agent during the five (5) years next preceding the date of submission of the application;
   7. the names and addresses of all persons who are:
      1. with respect to the athlete agent's business if it is not a corporation, the partners, members, officers, managers, associates, or profit-sharers of the business; and
      2. with respect to a corporation employing the athlete agent, the officers, directors, and any shareholder of the corporation having an interest of five percent (5%) or greater;
   8. whether the applicant or any person named pursuant to paragraph (7) has been convicted of a crime that, if committed in this State, would be a crime involving a felony listed under § 17-3-102, and identify the crime;
   9. whether there has been any administrative or judicial determination that the applicant or any person named pursuant to paragraph (7) has made a false, misleading, deceptive, or fraudulent representation;
   10. any instance in which the conduct of the applicant or any person named pursuant to paragraph (7) resulted in the imposition of a sanction, suspension, or declaration of ineligibility to participate in an interscholastic or intercollegiate athletic event on a student-athlete or educational institution;
   11. any sanction, suspension, or disciplinary action taken against the applicant or any person named pursuant to paragraph (7) arising out of occupational or professional conduct; and
   12. whether there has been any denial of an application for, suspension or revocation of, or refusal to renew, the registration or licensure of the applicant or any person named pursuant to paragraph (7) as an athlete agent in any State.
2. An individual who has submitted an application for, and holds a certificate of, registration or licensure as an athlete agent in another State, may submit a copy of the application and certificate in lieu of submitting an application in the form prescribed pursuant to subsection (a). The Secretary of State shall accept the application and the certificate from the other State as an application for registration in this State if the application to the other State:
   1. was submitted in the other State within six (6) months next preceding the submission of the application in this State and the applicant certifies that the information contained in the application is current;
   2. contains information substantially similar to or more comprehensive than that required in an application submitted in this State; and
   3. was signed by the applicant under penalty of perjury.

History. Acts 2001, No. 1622, § 5; 2019, No. 990, § 19.

Amendments. The 2019 amendment, in (a)(8), deleted “moral turpitude or” following “involving” and added “listed under § 17-3-102”.

17-16-106. Certificate of registration — Issuance or denial — Renewal.

1. The Secretary of State shall issue a certificate of registration to an individual who complies with § 17-16-105(a) or whose application has been accepted under § 17-16-105(b).
2. An athlete agent may apply to renew a registration by submitting an application for renewal in a form prescribed by the Secretary of State. The application for renewal must be signed by the applicant under penalty of perjury and must contain current information on all matters required in an original registration.
3. An individual who has submitted an application for renewal of registration or licensure in another State, in lieu of submitting an application for renewal in the form prescribed pursuant to subsection (d), may file a copy of the application for renewal and a valid certificate of registration or licensure from the other State. The Secretary of State shall accept the application for renewal from the other State as an application for renewal in this State if the application to the other State:
   1. was submitted in the other State within six (6) months next preceding the filing in this State and the applicant certifies the information contained in the application for renewal is current;
   2. contains information substantially similar to or more comprehensive than that required in an application for renewal submitted in this State; and
   3. was signed by the applicant under penalty of perjury.
4. A certificate of registration or a renewal of a registration is valid for two (2) years.

History. Acts 2001, No. 1622, § 6.

17-16-107, 17-16-108. [Reserved.]

Publisher's Notes. Section 7 of the Uniform Athlete Agents Act, which concerns suspension, revocation, or refusal to renew registration, and Section 8 of the Uniform Athlete Agents Act, which concerns temporary registration, were not adopted in Arkansas.

17-16-109. Registration and renewal fees.

1. An application for registration or renewal of registration must be accompanied by a fee in the following amount:
   1. five hundred dollars ($500) for an initial application for registration;
   2. one hundred dollars ($100) for an application for registration based upon a certificate of registration or licensure issued by another State;
   3. five hundred dollars ($500) for an application for renewal of registration; or
   4. one hundred dollars ($100) for an application for renewal of registration based upon an application for renewal of registration or licensure submitted in another State.
2. Fees received under this chapter by the Secretary of State shall be deposited into the State Treasury to the credit of the General Revenue Fund Account.

History. Acts 2001, No. 1622, § 7.

17-16-110. Required form of contract.

1. An agency contract must be in a record, signed or otherwise authenticated by the parties.
2. An agency contract must state or contain:
   1. the amount and method of calculating the consideration to be paid by the student-athlete for services to be provided by the athlete agent under the contract and any other consideration the athlete agent has received or will receive from any other source for entering into the contract or for providing the services;
   2. the name of any person not listed in the application for registration or renewal of registration who will be compensated because the student-athlete signed the agency contract;
   3. a description of any expenses that the student-athlete agrees to reimburse;
   4. a description of the services to be provided to the student-athlete;
   5. the duration of the contract; and
   6. the date of execution.
3. An agency contract must contain, in close proximity to the signature of the student-athlete, a conspicuous notice in boldface type in capital letters stating:
   1. YOU MAY LOSE YOUR ELIGIBILITY TO COMPETE AS A STUDENT-ATHLETE IN YOUR SPORT;
   2. IF YOU HAVE AN ATHLETIC DIRECTOR, WITHIN 72 HOURS AFTER ENTERING INTO THIS CONTRACT, BOTH YOU AND YOUR ATHLETE AGENT MUST NOTIFY YOUR ATHLETIC DIRECTOR; AND
   3. YOU MAY CANCEL THIS CONTRACT WITHIN 14 DAYS AFTER SIGNING IT. CANCELLATION OF THIS CONTRACT MAY NOT REINSTATE YOUR ELIGIBILITY.
4. An agency contract that does not conform to this section is voidable by the student-athlete. If a student-athlete voids an agency contract, the student-athlete is not required to pay any consideration under the contract or to return any consideration received from the athlete agent to induce the student-athlete to enter into the contract.
5. The athlete agent shall give a record of the signed or otherwise authenticated agency contract to the student-athlete at the time of execution.

WARNING TO STUDENT-ATHLETE

IF YOU SIGN THIS CONTRACT:

History. Acts 2001, No. 1622, § 8.

17-16-111. Notice to educational institution.

1. 1. If a student-athlete is enrolled in an educational institution, an athlete agent shall provide notice to the athletic director of the educational institution at which the student-athlete is enrolled before contacting the student-athlete.
   2. If an athlete agent intentionally or unintentionally contacts a student-athlete enrolled in an educational institution, the athlete agent shall notify the athletic director of the educational institution at which the student-athlete is enrolled within seventy-two (72) hours of the contact.
2. Within seventy-two (72) hours after entering into an agency contract or verbally agreeing to enter into an agency contract, or before the next scheduled athletic event in which the student-athlete may participate, whichever occurs first, the athlete agent shall give notice in a record of the existence of the contract or verbal agreement to the athletic director of the educational institution at which the student-athlete is enrolled or the athlete agent has reasonable grounds to believe the student-athlete intends to enroll.
3. Within seventy-two (72) hours after entering into an agency contract or verbally agreeing to enter into an agency contract, or before the next athletic event in which the student-athlete may participate, whichever occurs first, the student-athlete shall inform the athletic director of the educational institution at which the student-athlete is enrolled that he or she has entered into an agency contract or has verbally agreed to enter into an agency contract.

History. Acts 2001, No. 1622, § 9; 2011, No. 204, § 3.

A.C.R.C. Notes. Acts 2011, No. 204, § 1, provided: “This act shall be known and may be cited as the ‘Athlete Agent Reform Act of 2011’.”

Amendments. The 2011 amendment added present (a) and redesignated the remaining subsections accordingly; inserted “or verbally agreeing to enter into an agency contract” in (b) and (c); inserted “or verbal agreement” in (b); and added “or has verbally agreed to enter into an agency contract” at the end of (c).

17-16-112. Student-athlete's right to cancel.

1. A student-athlete may cancel an agency contract by giving notice of the cancellation to the athlete agent in a record within fourteen (14) days after the contract is signed.
2. A student-athlete may not waive the right to cancel an agency contract.
3. If a student-athlete cancels an agency contract, the student-athlete is not required to pay any consideration under the contract or to return any consideration received from the athlete agent to induce the student-athlete to enter into the contract.

History. Acts 2001, No. 1622, § 10.

17-16-113. Required records.

1. An athlete agent shall retain the following records for a period of five (5) years:
   1. the name and address of each individual represented by the athlete agent;
   2. any agency contract entered into by the athlete agent; and
   3. any direct costs incurred by the athlete agent in the recruitment or solicitation of a student-athlete to enter into an agency contract.
2. Records required by subsection (a) to be retained are open to public inspection during normal business hours.

History. Acts 2001, No. 1622, § 11.

17-16-114. Prohibited conduct.

1. An athlete agent, with the intent to induce a student-athlete to enter into an agency contract, may not:
   1. give any materially false or misleading information or make a materially false promise or representation;
   2. furnish a good or service of value or arrange for a good or service of value to be furnished to a student-athlete before the student-athlete enters into the agency contract; or
   3. furnish a good or service of value or arrange for a good or service of value to be furnished to any individual other than the student-athlete or another registered athlete agent.
2. An athlete agent may not intentionally:
   1. initiate contact with a student-athlete unless registered under this subchapter;
   2. refuse or fail to retain or permit inspection of the records required to be retained by § 17-16-113;
   3. fail to register when required by § 17-16-104;
   4. provide materially false or misleading information in an application for registration or renewal of registration;
   5. predate or postdate an agency contract; or
   6. fail to notify a student-athlete before the student-athlete signs or otherwise authenticates an agency contract for a particular sport that the signing or authentication may make the student-athlete ineligible to participate as a student-athlete in that sport.

History. Acts 2001, No. 1622, § 12; 2011, No. 204, § 4.

A.C.R.C. Notes. Acts 2011, No. 204, § 1, provided: “This act shall be known and may be cited as the ‘Athlete Agent Reform Act of 2011’.”

Amendments. The 2011 amendment, in (a)(2) and (a)(3), substituted “a good or service” for “anything,” and inserted “or arrange for a good or service of value to be furnished.”

17-16-115. Criminal penalties.

1. An athlete agent who violates § 17-16-114(a) is guilty of a Class D felony.
2. An athlete agent who violates § 17-16-114(b) is guilty of a Class A misdemeanor.

History. Acts 2001, No. 1622, § 13; 2011, No. 204, § 5.

A.C.R.C. Notes. Acts 2011, No. 204, § 1, provided: “This act shall be known and may be cited as the ‘Athlete Agent Reform Act of 2011’.”

Amendments. The 2011 amendment inserted present (a) and redesignated the existing language as (b); and substituted “§ 17-16-114(b)” for “§ 17-16-114” in (b).

17-16-116. Civil remedies.

1. With respect to any athlete agent who has had either a criminal or administrative penalty imposed against him or her under the Uniform Athlete Agents Act, § 17-16-101 et seq., as adopted by the State of Arkansas or any other State, in two (2) or more prior instances:
   1. an educational institution has a right of action against an athlete agent or a former student-athlete for damages caused by a violation of this subchapter. In an action under this section, the court may award to the prevailing party costs and reasonable attorney's fees;
   2. damages of an educational institution under paragraph (1) include losses and expenses incurred because, as a result of the conduct of an athlete agent or former student-athlete, the educational institution was injured by a violation of this subchapter or was penalized, disqualified, or suspended from participation in athletics by a national association for the promotion and regulation of athletics, by an athletic conference, or by reasonable self-imposed disciplinary action taken to mitigate sanctions likely to be imposed by such an organization;
   3. a right of action under this section does not accrue until the educational institution discovers or by the exercise of reasonable diligence would have discovered the violation by the athlete agent or former student-athlete; and
   4. any liability of the athlete agent or the former student-athlete under this section is several and not joint.
2. This subchapter does not restrict rights, remedies, or defenses of any person under law or equity.

History. Acts 2001, No. 1622, § 14.

17-16-117. Administrative penalty.

The Attorney General may seek a civil penalty in any court of competent jurisdiction against an athlete agent not to exceed two hundred fifty thousand dollars ($250,000) for a violation of this subchapter.

History. Acts 2001, No. 1622, § 15; 2011, No. 204, § 6.

A.C.R.C. Notes. Acts 2011, No. 204, § 1, provided: “This act shall be known and may be cited as the ‘Athlete Agent Reform Act of 2011’.”

Amendments. The 2011 amendment substituted “two hundred fifty thousand dollars ($250,000)” for “fifty thousand dollars ($50,000).”

17-16-118. Uniformity of application and construction.

In applying and construing this Uniform Act, consideration must be given to the need to promote uniformity of the law with respect to its subject matter among States that enact it.

History. Acts 2001, No. 1622, § 16.

Meaning of “this act”. Acts 2001, No. 1622, codified as § 17-16-101 et seq.

17-16-119. Electronic signatures in global and national commerce act.

The provisions of this subchapter governing the legal effect, validity, or enforceability of electronic records or signatures, and of contracts formed or performed with the use of such records or signatures conform to the requirements of Section 102 of the Electronic Signatures in Global and National Commerce Act, Pub. L. No. 106-229, 114 Stat. 464 (2000), and supersede, modify, and limit the Electronic Signatures in Global and National Commerce Act.

History. Acts 2001, No. 1622, § 17.

U.S. Code. Section 102 of the Electronic Signatures in Global and National Commerce Act, Pub. L. No. 106-229, 114 Stat. 464 (2000), referred to in this section, is codified as 15 U.S.C. § 7002. The Electronic Signatures in Global and National Commerce Act is codified as 15 U.S.C. § 7001 et seq.

17-16-120 — 17-16-122. [Reserved.]

Publisher's Notes. Section 20 of the Uniform Athlete Agents Act, concerning severability, Section 21 of the Uniform Athlete Agents Act, and Section 22 of the Uniform Athlete Agents Act, concerning the effective date, were not adopted in Arkansas.

17-16-123. Revocation of registration.

1. 1. A court of competent jurisdiction may revoke a certificate of registration before, during, or after a proceeding seeking a criminal, civil, or administrative penalty under this subchapter.
   2. When revoking a certificate of registration, a court of competent jurisdiction may declare a person ineligible to reapply for a certificate of registration for a period of time not to exceed five (5) years.
2. A court of competent jurisdiction may revoke registration under this section in lieu of or in addition to other criminal, civil, or administrative penalties under this subchapter.

History. Acts 2011, No. 204, § 7.

A.C.R.C. Notes. Acts 2011, No. 204, § 1, provided: “This act shall be known and may be cited as the ‘Athlete Agent Reform Act of 2011’.”

Subchapter 2 — Registration and Bond Requirements

17-16-201 — 17-16-207. [Repealed.]

Publisher's Notes. This subchapter, concerning registration and bond requirements for athlete agents, was repealed by Acts 2001, No. 1622, § 19. The subchapter was derived from the following sources:

17-16-201. Acts 1989, No. 544, § 2; 1999, No. 1186, §§ 3, 4.

17-16-202. Acts 1989, No. 544, § 2.

17-16-203. Acts 1989, No. 544, § 2.

17-16-204. Acts 1999, No. 1186, § 5.

17-16-205. Acts 1999, No. 1186, § 6.

17-16-206. Acts 1999, No. 1186, § 7.

17-16-207. Acts 1999, No. 1186, § 8.

For current law, see § 17-16-101 et seq.

Subchapter 1 — General Provisions

Cross References. Cities and incorporated towns may also tax auctioneers, § 26-77-204.

County tax, § 26-76-202.

Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Publisher's Notes. Former §§ 17-15-101 — 17-15-103, 17-15-105 — 17-15-111, concerning auctioneers, were repealed by Acts 1989, No. 266, § 20. They were derived from the following sources:

17-15-101. Rev. Stat., ch. 17, § 1; C. & M. Dig., § 630; Pope's Dig., § 671; A.S.A. 1947, § 71-401.

17-15-102. Rev. Stat., ch. 17, §§ 2, 3; C. & M. Dig., §§ 631, 632; Pope's Dig., §§ 672, 673; A.S.A. 1947, §§ 71-402, 71-403.

17-15-103. Rev. Stat., ch. 17, § 12; C. & M. Dig., § 633; Pope's Dig., § 674; A.S.A. 1947, § 71-404.

17-15-105. Rev. Stat., ch. 17, § 21; C. & M. Dig., § 642; Pope's Dig., § 683; A.S.A. 1947, § 71-413.

17-15-106. Rev. Stat., ch. 17, § 22; C. & M. Dig., § 643; Pope's Dig., § 684; A.S.A. 1947, § 71-414.

17-15-107. Rev. Stat., ch. 17, §§ 13-15; C. & M. Dig., §§ 634-636; Pope's Dig., §§ 675-677; A.S.A. 1947, §§ 71-405 — 71-407.

17-15-108. Rev. Stat., ch. 17, § 16; C. & M. Dig., § 637; Acts 1921, No. 480, § 1; Pope's Dig., § 678; Acts 1961, No. 496, § 1; A.S.A. 1947, § 71-408.

17-15-109. Rev. Stat., ch. 17, § 17; C. & M. Dig., § 638; Pope's Dig., § 679; A.S.A. 1947, § 71-409.

17-15-110. Rev. Stat., ch. 17, § 18; C. & M. Dig., § 639; Pope's Dig., § 680; A.S.A. 1947, § 71-410.

17-15-111. Rev. Stat., ch. 17, §§ 19, 20, 23; C. & M. Dig., §§ 640, 641, 643; Pope's Dig., §§ 681, 682, 684; A.S.A. 1947, §§ 71-411, 71-412, 71-415.

Effective Dates. Acts 1989, No. 266, § 23: Mar. 1, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there is a definite and critical shortage of qualified auctioneers in the State of Arkansas, that there is presently no law protecting the public in the listing and selling of property through auctioneers, and that the best interest of the people of the State of Arkansas can be served by the creation and operation of an Auctioneer's Licensing Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

17-17-101. Title.

This chapter shall be known and cited as the “Auctioneer's Licensing Act”.

History. Acts 1989, No. 266, § 2.

17-17-102. Legislative intent.

It is hereby found and determined by the General Assembly that the current law pertaining to auctioneers is out of date and is not being enforced, there is no administrative agency to enforce the laws pertaining to auctioneers, Arkansas does not have the ability, without legislation, to enter into reciprocal agreements with other states to allow the persons licensed as auctioneers in Arkansas to engage in the business of auctioneering in other states, auctioneers are not required to establish an escrow account to handle money belonging to others, and without legislation the level of professionalism desired by auctioneers cannot be attained. Therefore, it is the purpose of this chapter to establish a board to license and regulate auctioneers, other than livestock auction barn auctioneers and auctioneers conducting certain kinds of auctions.

History. Acts 1989, No. 266, § 1.

Publisher's Notes. As to repeal of former section, see Publisher's Note at the beginning of the subchapter.

17-17-103. Definitions.

As used in this chapter, unless the context otherwise requires:

1. “Auctioneer” means any person who, for a fee, commission, or any other valuable consideration, or with the intention or expectation of receiving the same, by the means of, or process of, an auction or sale at auction, offers, negotiates, or attempts to negotiate, a listing contract, sale, purchase, or exchange of goods, chattels, merchandise, or personal property, or of any other commodity which may lawfully be kept or offered for sale by or at public auction;
2. “Goods” means any chattels, goods, merchandise, or personal property, or commodities of any form or type which may be lawfully kept or offered for sale;
3. “Livestock auction barn” means a place where livestock is sold on a regular basis to the public;
4. “Livestock auction barn auctioneer” means an auctioneer who is solely engaged in the selling of livestock on a regular basis at one (1) or more locations; and
5. “Persons” includes individuals, associations, partnerships, and corporations, and the word “persons” shall also include the officers, directors, and employees of a corporation.

History. Acts 1989, No. 266, § 3; 2019, No. 386, § 2.

Publisher's Notes. As to repeal of former section, see Publisher's Note at the beginning of the subchapter.

Amendments. The 2019 amendment deleted former (2).

17-17-104. Applicability — Exception.

1. This chapter does not apply to:
   1. Sales at an auction conducted by or under the direction of a public authority or pursuant to a judicial order or decree or to a sale by law required to be at auction;
   2. An auction conducted by or for a nonprofit organization;
   3. An individual who offers his or her own goods for auction;
   4. A livestock auction barn auctioneer; or
   5. An auction conducted over the internet by means of a website dedicated primarily to conducting auctions.
2. 1. An auctioneer may work for an auction company that is licensed in the State of Arkansas in an emergency for a period of ninety (90) days.
   2. During the ninety-day period, the auctioneer shall make application and pay fees for the next testing date.
   3. After the ninety-day period, the auctioneer shall meet all of the provisions of this chapter.

History. Acts 1989, No. 266, § 4; 2009, No. 183, § 1.

A.C.R.C. Notes. Former § 17-17-104 has been recodified as § 17-17-304(b)(2).

Amendments. The 2009 amendment, in (a), deleted “or any auction held on the premises of a livestock auction barn” following “auctioneer” in (a)(4), and inserted (a)(5); subdivided (b), rewrote (b)(2), and added (b)(3); and made related and minor stylistic changes.

17-17-105. License required — Penalty for violation.

1. On and after July 1, 1989, it shall be unlawful for any person to act as an auctioneer or to advertise or to assume to act as either within this state without a license issued by the Auctioneer's Licensing Board.
2. Any person who violates subsection (a) of this section shall be punished by a fine of not less than one hundred dollars ($100) nor more than five hundred dollars ($500), or by imprisonment for a term not to exceed ninety (90) days, or both.

History. Acts 1989, No. 266, §§ 4, 19.

Publisher's Notes. As to repeal of former section, see Publisher's Note at the beginning of the subchapter.

17-17-106. Actions by auctioneers.

No person engaged in the business of or acting in the capacity of an auctioneer shall bring or maintain any action in the courts of the State of Arkansas for the collection of compensation for any services permitted as an auctioneer without first alleging and proving that he or she was operating legally under the provisions of this chapter and was a duly licensed auctioneer at the time the alleged cause of action arose.

History. Acts 1989, No. 266, § 15.

Publisher's Notes. As to repeal of former section, see Publisher's Note at the beginning of the subchapter.

17-17-107. Municipal taxes.

No person following for a livelihood the profession of an auctioneer shall be taxed or made liable to pay any municipal or other corporation tax or license fee for the privilege of following or carrying on the profession by a municipality unless that person maintains a business office within that municipality.

History. Acts 1989, No. 266, § 18.

Publisher's Notes. As to repeal of former section, see Publisher's Note at the beginning of the subchapter.

17-17-108 — 17-17-111. [Repealed.]

Publisher's Notes. As to repeal of these sections, see Publisher's Note at the beginning of the subchapter.

17-17-112. Written contract.

1. An auctioneer may not sell the property of another at auction without a prior written contract with the seller which sets forth the terms and conditions upon which the auctioneer will sell the property. The licensee must retain a copy of each contract for at least three (3) years after the auction.
2. The Auctioneer's Licensing Board is authorized to prescribe by rule the minimum requirements which must be included in a written contract.

History. Acts 1999, No. 1333, § 1; 2019, No. 315, § 1348.

Amendments. The 2019 amendment substituted “rule” for “regulations” in (b).

17-17-113. Injunction.

1. Whenever there is reason to believe that any person, licensed or unlicensed, has violated any provision of this chapter or any order, license, decision, demand, or requirement issued or made pursuant to this chapter, the Auctioneer's Licensing Board or its authorized representative may bring an action in the circuit court of any county in which the person resides or does business to enjoin such a person from continuing such a violation or engaging therein or doing any act or acts in furtherance thereof.
2. Whenever there is any action brought pursuant to this section, the circuit court shall have jurisdiction and authority to enter a preliminary or final injunction or such other relief as may be appropriate.

History. Acts 1999, No. 1333, § 2.

Cross References. Jurisdiction of circuit courts, Ark. Const. Amend. 80, §§ 6, 19.

17-17-114. Civil penalty.

1. 1. Whenever the Auctioneer's Licensing Board finds that the holder of a license issued by the board is guilty of a violation of the rules of the board or the laws of the State of Arkansas pertaining to any occupation, profession, or business licensed or regulated by the board, it shall have the power and authority to impose a civil penalty and suspension or revocation of the license.
   2. Upon imposition of a civil penalty, the board shall have the power and authority to require that the licensee pay a penalty to the board in regard to the violation with the sanction that the license may be suspended until the penalty is paid.
   3. Before the imposition of any penalty, the board shall hold an investigation and hearing after notice to a licensee or his or her attorney. The penalty may be imposed only if the board formally finds that the public health, safety, welfare, and morals would not be impaired thereby and that payment of the penalty will achieve the desired disciplinary result.
2. No penalty imposed by the board may exceed a total of one thousand dollars ($1,000). The power and authority of the board to impose these penalties shall not be affected by any other civil or criminal proceeding concerning the same violation.
3. If any person upon whom the board has levied a civil penalty fails to pay the civil penalty within sixty (60) days of the board's decision to impose the penalty, the amount of the fine shall be considered to be a debt owed to the board and may be collected by civil action by the board.
4. Any person penalized by the board under this chapter may appeal any order of the board in the manner now provided by law.
5. In addition to any other sanctions authorized by this chapter, the board may impose a civil penalty as provided in this section against any unlicensed person, firm, or corporation practicing or offering to practice any actions requiring licensure pursuant to the provisions of this chapter.
6. The board is authorized to promulgate rules to implement the provisions of this chapter.

History. Acts 1999, No. 1333, § 3; 2003, No. 1748, § 1; 2019, No. 315, § 1349.

Amendments. The 2019 amendment substituted “rules” for “regulations” in (f).

17-17-115. Inspection — Cease and desist.

1. Subsequent to five (5) days after proof of receipt of certified mail by the alleged offending auctioneer or auction house of any alleged violation or violations, the Auctioneer's Licensing Board or its authorized representative may enter the premises of any auction or auction house for the purpose of examining the license of an auctioneer or auction house, or both.
2. Should the board or its authorized representative find that an unlicensed auctioneer or auction house, or both, is practicing or offering to practice any actions requiring a license pursuant to the provisions of this chapter, the board or its authorized representative has the authority to demand that such unlicensed activity cease and desist immediately.
3. Any auctioneer or auction house, or both, refusing to allow the board or its authorized representative to inspect the premises of an auction or auction house for the purpose of examining the license of the auctioneer or auction house, or both, may be subject to a civil penalty.
4. Any unlicensed auctioneer or auction house, or both, found to be practicing or offering to practice any actions requiring a license pursuant to the provisions of this chapter who refuses to cease and desist such unlicensed activity upon the request of the board or its authorized representative will be subject to criminal or civil penalties, or both.

History. Acts 1999, No. 1333, § 4.

Subchapter 2 — Auctioneer's Licensing Board

Publisher's Notes. Former subchapter 2, concerning the auction of watches and diamonds, was repealed by Acts 1989, No. 266, § 20. The former subchapter was derived from the following sources:

17-15-201. Acts 1943, No. 182, § 4; A.S.A. 1947, § 71-419.

17-15-202. Acts 1943, No. 182, § 1; A.S.A. 1947, § 71-416.

17-15-203. Acts 1943, No. 182, § 3; A.S.A. 1947, § 71-418.

17-15-204. Acts 1943, No. 182, § 2; A.S.A. 1947, § 71-417.

17-15-205. Acts 1943, No. 182, § 5; A.S.A. 1947, § 71-420.

Effective Dates. Acts 1989, No. 266, § 23: Mar. 1, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there is a definite and critical shortage of qualified auctioneers in the State of Arkansas, that there is presently no law protecting the public in the listing and selling of property through auctioneers, and that the best interest of the people of the State of Arkansas can be served by the creation and operation of an Auctioneer's Licensing Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

17-17-201. Creation — Members.

1. There is hereby created the Auctioneer's Licensing Board. The Governor shall appoint a board consisting of seven (7) members, four (4) of whom are licensed auctioneers and three (3) from the public at large, each of whom immediately before the date of his or her appointment has been a resident of the State of Arkansas for five (5) years.
2. The four (4) members who are auctioneers shall have been auctioneers for at least five (5) years.
3. Each member shall serve until his or her successor is appointed and qualified. All successor members shall serve terms of four (4) years and until their successors are elected and qualified.
4. Vacancies shall be filled by appointment of the Governor for the unexpired term.
5. Each member of the board may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

History. Acts 1989, No. 266, § 6; 1997, No. 250, § 125.

Publisher's Notes. Acts 1989, No. 266, § 6 provided, in part, that the Governor should appoint the initial members of the board on March 1, 1989, and that two members should be appointed for one-year terms, two members for two-year terms, two members for three-year terms and one member for a term of four years.

17-17-202. Organization.

1. The Auctioneer's Licensing Board, immediately upon qualification of the member appointed in each year, shall organize by selecting from its members a chair.
2. A quorum of the board shall be four (4) members.

History. Acts 1989, No. 266, § 6.

17-17-203. Employees.

1. The Auctioneer's Licensing Board shall have authority to employ, in consultation with the Secretary of the Department of Labor and Licensing, and discharge a Director of the Auctioneer's Licensing Board who shall provide administrative services to the board and who shall also be the Treasurer of the Auctioneer's Licensing Board, and such other personnel as may be necessary to administer and enforce the provisions of this chapter.
2. [Repealed.]

History. Acts 1989, No. 266, § 6; 2019, No. 910, §§ 5407, 5408.

Amendments. The 2019 amendment rewrote (a); and repealed (b).

17-17-204. Director — Disposition of funds.

1. All fees, charges, and penalties collected by the Auctioneer's Licensing Board under the provisions of this chapter shall be paid to the Director of the Auctioneer's Licensing Board, who shall be the custodian of all funds and shall deposit them into a bank or banks to be designated by the board.
2. The director shall execute a bond in an amount determined by the State Risk Manager pursuant to the self-insured fidelity program as authorized in § 21-2-701 et seq.
3. 1. The director shall pay funds of the board only on vouchers signed by himself or herself and countersigned by the Chair of the Auctioneer's Licensing Board.
   2. The total expenses for all purposes and obligations of the board shall not exceed the total fees, charges, penalties, and other funds paid to the board under the provisions of this chapter.
4. The director shall make semiannual financial reports in detail to the board not later than January 30 and July 30 of each year, which will be kept on permanent file by the board.

History. Acts 1989, No. 266, § 6; 1999, No. 1333, §§ 5, 6; 2019, No. 910, § 5409.

Amendments. The 2019 amendment substituted “Director” for “Secretary-treasurer” in the section heading and in (a); and substituted “director” for “secretary-treasurer” in (b) and (d).

17-17-205. Finances — Educational programs.

The Auctioneer's Licensing Board shall be financially self-sustaining, and, if funds permit, it may underwrite, within its financial limitations, educational programs for the enlightenment and benefit of the public and all auctioneers licensed under this chapter.

History. Acts 1989, No. 266, § 6.

17-17-206. List of licensees.

The Auctioneer's Licensing Board shall annually publish a list of the names and addresses of all auctioneers licensed by it pursuant to this chapter. This list shall contain the names of all persons whose licenses have been suspended or revoked within the preceding year as well as any other information relative to the enforcement of the provisions of this chapter that the board may deem of interest to the public.

History. Acts 1989, No. 266, § 6.

17-17-207. Rules.

The Auctioneer's Licensing Board shall have the authority to promulgate such rules as may be necessary to implement this chapter and may establish by rule such forms as may be necessary to administer this chapter.

History. Acts 1989, No. 266, § 6; 2019, No. 315, § 1350.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the section heading and text; and substituted “rule” for “regulation”.

17-17-208. Proceedings.

The Auctioneer's Licensing Board shall be subject to the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1989, No. 266, § 13.

17-17-209. Seal — Records.

1. The Auctioneer's Licensing Board shall adopt a seal by which it shall authenticate its proceedings.
2. Copies of all records and papers in the office of the board, duly certified and authenticated by the seal of the board, shall be received in evidence in all courts equally and with like effect as the original.
3. All records kept in the office of the board under the authority of this chapter shall be open to public inspection under such rules as shall be prescribed by the board.

History. Acts 1989, No. 266, § 14; 2019, No. 315, § 1351.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (c).

Subchapter 3 — Licensing

Effective Dates. Acts 1989, No. 266, § 23: Mar. 1, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there is a definite and critical shortage of qualified auctioneers in the State of Arkansas, that there is presently no law protecting the public in the listing and selling of property through auctioneers, and that the best interest of the people of the State of Arkansas can be served by the creation and operation of an Auctioneer's Licensing Board. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety, shall be in full force and effect from and after its passage and approval.”

17-17-301. Qualifications — Examination.

1. Auctioneer licenses shall be granted only to persons who are found to be of good reputation, trustworthy, and competent to transact the business of an auctioneer, in such a manner as to safeguard the interest of the public.
2. The Auctioneer's Licensing Board is authorized to require information from every applicant to determine the applicant's honesty and truthfulness.
3. 1. In addition to proof of honesty, truthfulness, and good reputation, an examination conducted by the board or its authorized representatives shall be held four (4) times each year, and an examination fee of one hundred dollars ($100) shall be collected from each applicant to defray the expenses of the examination.
   2. The examination shall include questions on ethics, reading, writing, spelling, elementary arithmetic, and a general knowledge of the laws of Arkansas and the Arkansas Code, including, but not limited to, contracts of sale, agency, leases, auctions brokerage, and the provisions of the Uniform Commercial Code, § 4-1-101 et seq.
4. In addition to the other qualifications provided for by this chapter, every applicant for an auctioneer's license shall be at least eighteen (18) years of age. Every application for a license shall be submitted on forms prepared by the board.

History. Acts 1989, No. 266, § 7; 1993, No. 1219, § 3; 2003, No. 1748, § 2.

17-17-302. Issuance and renewal — Change of location.

1. 1. An examination shall not be required for the renewal of any present or future license unless the license has been revoked. In this case, the applicant shall take and pass the written examination offered by the Auctioneer's Licensing Board before a new license may be issued.
   2. Licensed auctioneers have a one-hundred-twenty-day grace period beyond a renewal date to renew a license.
   3. 1. Penalty for late renewals beyond the one-hundred-twenty-day grace period shall be two (2) times the sum of a normal license renewal fee.
      2. 1. The board shall notify a licensee of the penalty in subdivision (a)(3)(A) of this section by first class mail.
         2. If a licensee does not renew his or her license within thirty (30) days after the notice in subdivision (a)(3)(B)(i) of this section is mailed, the board shall send a second notice by certified mail.
2. 1. 1. The issuance fee for each auctioneer's license shall be one hundred dollars ($100).
      2. The annual renewal fee for each license shall be one hundred dollars ($100).
      3. All licenses shall expire on June 30 of each year.
   2. In the absence of a reason or condition that might warrant the refusal of the renewing of the license and upon receipt of the written request of the applicant and the applicant's annual fee, the board shall issue a new license each ensuing year.
3. The board shall prepare and deliver to each licensee a license certificate and pocket card.
4. 1. Notice in writing shall be given to the board by each licensee of any change of business location within thirty (30) days after any change in location, and at that time the board shall issue a new license for the unexpired period.
   2. A change of business location shall automatically cancel the license previously issued.
   3. Changing a business location and issuance of a new license shall entitle the board to collect five dollars ($5.00).

History. Acts 1989, No. 266, § 8; 2003, No. 1748, § 3; 2009, No. 773, § 1.

Amendments. The 2009 amendment substituted “one-hundred-twenty-day” for “ninety-day” in (a)(2); inserted (a)(3)(B) and redesignated the remaining text of (a)(3) accordingly; and made minor stylistic changes.

17-17-303. [Repealed.]

Publisher's Notes. This section, concerning a bond, was repealed by Acts 1999, No. 227, § 1. The section was derived from Acts 1989, No. 266, § 9.

17-17-304. Nonresidents — Licensing generally.

1. A nonresident of this state may become a licensed auctioneer in this state by registering with the Auctioneer's Licensing Board and confirming in writing that his or her actions will be regulated by this chapter and other applicable laws of this state as stated in this section and §§ 17-17-305 and 17-17-306.
2. 1. In every instance the nonresident must pay the issuance fee, the annual renewal fee, and the Auctioneer Education and Recovery Fund fee.
   2. 1. No person who is not a resident of this state shall conduct any livestock auction in this state unless bonded for at least fifty thousand dollars ($50,000) by a surety licensed to do business in this state by the Insurance Commissioner.
      2. A violation of this section shall constitute a Class A misdemeanor.

History. Acts 1985, No. 477, § 1; A.S.A. 1947, § 71-413; Acts 1989, No. 266, § 10; 1999, No. 227, § 2.

A.C.R.C. Notes. Acts 1989, No. 266, § 21, provided that nothing in the act repealed § 17-17-104 as enacted by Acts 1985, No. 477, § 1. Accordingly, that section has been recodified as subdivision (b)(2) of this section.

17-17-305. Nonresidents — Reciprocity.

1. A person holding a license to engage in auctions issued to him or her by a proper authority of a state, territory, or possession of the United States or the District of Columbia having licensing requirements comparable to Arkansas and who in the opinion of the Auctioneer's Licensing Board otherwise meets the requirements of this chapter may upon application be licensed without further examination.
2. 1. Nothing in this section and §§ 17-17-304 and 17-17-306 shall prevent the conducting of any auction in this state by any nonresident auctioneer if such an auctioneer is duly licensed by the state of his or her residence and that state, through reciprocity, permits a resident of this state who is an auctioneer duly licensed to conduct auctions in this state to conduct auctions in the other state without being required to obtain a license in the other state.
   2. The license fee applicable to a nonresident auctioneer from another state which does not permit an auctioneer who is a resident of this state and who is duly licensed in this state to conduct auctions in the other state without being required to obtain a license in the other state shall be of the same amount that the other state charges auctioneers who are residents of this state and who are duly licensed in this state to obtain a license to conduct an auction in the other state.
3. Notwithstanding any other provision of law to the contrary, no person duly licensed as an auctioneer in any other state and temporarily present in this state shall conduct an auction in this state unless he or she acts in association with an auctioneer duly licensed in this state if the state in which the nonresident auctioneer is licensed requires such an association with an auctioneer licensed in that state before an auctioneer duly licensed in Arkansas may conduct an auction in that state.

History. Acts 1989, No. 266, § 10; 1991, No. 786, § 22.

Publisher's Notes. Acts 1991, No. 786, § 37, provided: “The enactment and adoption of this Act shall not repeal, expressly or impliedly, the acts passed at the regular session of the 78th General Assembly. All such acts shall have full effect and, so far as those acts intentionally vary from or conflict with any provision contained in this Act, those acts shall have the effect of subsequent acts and as amending or repealing the appropriate parts of the Arkansas Code of 1987.”

17-17-306. Nonresidents — Actions against.

In addition, every nonresident applicant shall file an irrevocable consent that actions may be commenced against the applicant in any court of competent jurisdiction in the State of Arkansas, by the service of any summons, process, or pleading authorized by the law on the Secretary-treasurer of the Auctioneer's Licensing Board. The consent shall stipulate and agree that the service of the process, summons, or pleading on the secretary-treasurer shall be taken and held in all courts to be as valid and binding as if actual service had been made upon the applicant in Arkansas. In case any summons, process, or pleading is served upon the secretary-treasurer of the board, it shall be by duplicate copies, one (1) of which shall be retained in the office of the board, and the other immediately forwarded by registered mail to the last known business address of the applicant against whom the summons, process, or pleading may be directed.

History. Acts 1989, No. 266, § 10.

17-17-307. Auction owners.

1. If an auction owner is one other than the principal auctioneer, the auction owner shall apply for a license and meet all the provisions of this chapter.
2. When the owner of an auction company or the designated person of a corporation and the auctioneer are one and the same, only one (1) license shall be required.

History. Acts 1989, No. 266, § 16.

17-17-308. Suspension or revocation.

The Auctioneer's Licensing Board may impose a civil penalty or suspend or revoke the license of an auctioneer for any of the following causes:

1. Obtaining a license through false or fraudulent representation;
2. Pursuing a continued and flagrant course of misrepresentation or making false promises through agents or advertising or otherwise;
3. Failing to account for or remit within a reasonable time any money belonging to others that comes into his or her possession;
4. Commingling funds of others with his or her own or failing to keep the funds of others in an escrow or trustee account;
5. Paying valuable consideration to any person for services performed in violation of this chapter;
6. Being convicted of a criminal offense involving a felony listed under § 17-3-102 in a court of competent jurisdiction of this or any other jurisdiction;
7. Willfully violating a rule promulgated by the board;
8. Failing to enter into a written contract with the seller and to furnish voluntarily to the seller at the time of execution copies of all written instruments prepared by the auctioneer, including the contract;
9. Any conduct of an auctioneer that demonstrates bad faith, dishonesty, incompetency, untruthfulness, or deceptive practices;
10. Any other conduct that constitutes improper, fraudulent, or dishonest dealings, including falsely accusing any auctioneer or auction house;
11. Failing to complete or submit the continuing education requirements as specified by this chapter and the rules adopted by the board; or
12. Failing to disclose the buyer's premium in all advertising associated with an auction.

History. Acts 1989, No. 266, § 11; 1999, No. 1333, § 7; 1999, No. 1506, § 2; 2001, No. 1258, § 1; 2003, No. 1748, § 4; 2019, No. 315, §§ 1352, 1353; 2019, No. 990, § 20.

Amendments. The 2019 amendment by No. 315 deleted “or regulation” following “rule” in (7); and deleted “and regulations” following “rules” in (11).

The 2019 amendment by No. 990, in (6), deleted “moral turpitude or” following “involving” and inserted “listed under § 17-3-102”.

17-17-309. Investigation by board.

The Auctioneer's Licensing Board may, upon its own motion, and shall, upon the verified written complaint of any person, investigate the actions of any auctioneer or any person who assumes to act in that capacity, if the complaint, or complaint together with other evidence presented in connection with it if true, would be a violation of this chapter.

History. Acts 1989, No. 266, § 12.

17-17-310. Advertisements.

Each and every advertisement by an auctioneer or consignment auction house shall include the number of the license issued to the auctioneer or auction company by the Auctioneer's Licensing Board.

History. Acts 1989, No. 266, § 17.

17-17-311. Continuing education.

1. Except as provided in subsection (c) of this section, every application to the Auctioneer's Licensing Board for annual renewal of the license of an auctioneer shall be accompanied by proof that the applicant has satisfactorily completed six (6) hours of continuing education in approved programs within the preceding twelve-month period. No auctioneer's license shall be renewed unless the application for renewal is accompanied by the proof required in this section.
2. All programs of continuing education for licensed auctioneers shall be subject to approval of the board. The board is authorized to prescribe by rule the minimum standards and requirements for continuing education programs for auctioneers, the procedures and policies for administering such programs, and the manner and conditions under which credit will be granted for participation in such programs.
3. The continuing education requirements of this section shall not be applicable to any person who has been licensed as an auctioneer or auction house owner or operator by the board for a period of ten (10) consecutive years or more and who is at least fifty-five (55) years of age.

History. Acts 1999, No. 1506, § 1; 2001, No. 1754, § 1; 2019, No. 315, § 1354.

Amendments. The 2019 amendment substituted “rule” for “regulations” in the second sentence of (b).

17-17-312. Criminal background checks.

1. Beginning July 16, 2003, each first-time applicant for a license issued by the Auctioneer's Licensing Board and each applicant seeking reinstatement of an expired license from the board shall be required to apply to the Identification Bureau of the Division of Arkansas State Police for a state and national criminal background check to be conducted by the Federal Bureau of Investigation.
2. The check shall conform to the applicable federal standards and shall include the taking of fingerprints.
3. The applicant shall sign a release of information to the board and shall be responsible to the Division of Arkansas State Police for the payment of any fee associated with the criminal background check.
4. Upon completion of the criminal background check, the Identification Bureau of the Division of Arkansas State Police shall forward to the board all information obtained concerning the applicant in the commission of any offense listed in subsection (f) of this section.
5. At the conclusion of any background check required by this section, the Identification Bureau of the Division of Arkansas State Police shall promptly destroy the fingerprint card of the applicant.
6. No person shall be eligible to receive or hold a license issued by the board if that person has pleaded guilty or nolo contendere to, or been found guilty of, any of the following offenses by any court in the State of Arkansas or of any similar offense by a court in another state or of any similar offense by a federal court:
   1. Capital murder, as prohibited in § 5-10-101;
   2. Murder in the first degree and second degree, as prohibited in §§ 5-10-102 and 5-10-103;
   3. Manslaughter, as prohibited in § 5-10-104;
   4. Negligent homicide, as prohibited in § 5-10-105;
   5. Kidnapping, as prohibited in § 5-11-102;
   6. False imprisonment in the first degree, as prohibited in § 5-11-103;
   7. Permanent detention or restraint, as prohibited in § 5-11-106;
   8. Robbery, as prohibited in § 5-12-102;
   9. Aggravated robbery, as prohibited in § 5-12-103;
   10. Battery in the first degree, as prohibited in § 5-13-201;
   11. Aggravated assault, as prohibited in § 5-13-204;
   12. Introduction of a controlled substance into the body of another person, as prohibited in § 5-13-210;
   13. Aggravated assault upon a law enforcement officer or an employee of a correctional facility, § 5-13-211, if a Class Y felony;
   14. Terroristic threatening in the first degree, as prohibited in § 5-13-301;
   15. Rape, as prohibited in § 5-14-103;
   16. Sexual indecency with a child, as prohibited in § 5-14-110;
   17. Sexual extortion, § 5-14-113;
   18. Sexual assault in the first degree, second degree, third degree, or fourth degree, as prohibited in §§ 5-14-124 — 5-14-127;
   19. Incest, as prohibited in § 5-26-202;
   20. Offenses against the family, as prohibited in §§ 5-26-303 — 5-26-306;
   21. Endangering the welfare of an incompetent person in the first degree, as prohibited in § 5-27-201;
   22. Endangering the welfare of a minor in the first degree, as prohibited in § 5-27-205;
   23. Permitting the abuse of a child, as prohibited in § 5-27-221;
   24. Engaging children in sexually explicit conduct for use in visual or print media, transportation of minors for prohibited sexual conduct, pandering or possessing a visual or print medium depicting sexually explicit conduct involving a child, or use of a child or consent to use of a child in a sexual performance by producing, directing, or promoting a sexual performance by a child, as prohibited in §§ 5-27-303 — 5-27-305, 5-27-402, and 5-27-403;
   25. Felony adult abuse, as prohibited in § 5-28-103;
   26. Theft of property, as prohibited in § 5-36-103;
   27. Theft by receiving, as prohibited in § 5-36-106;
   28. Arson, as prohibited in § 5-38-301;
   29. Burglary, as prohibited in § 5-39-201;
   30. Felony violation of the Uniform Controlled Substances Act, § 5-64-101 et seq., as prohibited in the former § 5-64-401 and §§ 5-64-419 — 5-64-442;
   31. Promotion of prostitution in the first degree, as prohibited in § 5-70-104;
   32. Stalking, as prohibited in § 5-71-229; and
   33. Criminal attempt, criminal complicity, criminal solicitation, or criminal conspiracy, as prohibited in §§ 5-3-201, 5-3-202, 5-3-301, and 5-3-401, to commit any of the offenses listed in this subsection.
7. 1. The provisions of subsection (f) of this section may be waived by the board upon the request of:
      1. An affected applicant for licensure; or
      2. The person holding a license subject to revocation.
   2. Circumstances for which a waiver may be granted shall include, but not be limited to, the following:
      1. The age at which the crime was committed;
      2. The circumstances surrounding the crime;
      3. The length of time since the crime;
      4. Subsequent work history;
      5. Employment references; and
      6. Character references.
8. 1. Any information received by the board from the Identification Bureau of the Division of Arkansas State Police under this section shall not be available for examination except by the:
      1. Affected applicant for licensure, or his or her authorized representative; or
      2. Person whose license is subject to revocation, or his or her authorized representative.
   2. No record, file, or document shall be removed from the custody of the Division of Arkansas State Police.
9. Any information made available to the affected applicant for licensure or to the person whose license is subject to revocation shall be information pertaining to that person only.
10. Rights of privilege and confidentiality established under this section shall not extend to any document created for purposes other than this background check.
11. The board shall adopt the necessary rules to fully implement the provisions of this section.

History. Acts 2003, No. 834, § 1; 2011, No. 570, § 119; 2017, No. 367, § 15; 2017, No. 664, § 9; 2019, No. 315, § 1355.

A.C.R.C. Notes. Acts 2011, No. 570, § 1, provided: “Legislative intent. The intent of this act is to implement comprehensive measures designed to reduce recidivism, hold offenders accountable, and contain correction costs.”

Amendments. The 2011 amendment, in (f)(28), substituted “§ 5-64-510” for “§ 5-64-608” and inserted “the former” and “and §§ 5-64-419 — 5-64-442.”

The 2017 amendment by No. 367 inserted (f)(13).

The 2017 amendment by No. 664 inserted (f)(17).

The 2019 amendment deleted “and regulations” following “rules” in (k).

Subchapter 4 — Auctioneer Education and Recovery Fund

17-17-401. Auctioneer Education and Recovery Fund.

1. The Auctioneer's Licensing Board shall establish a separate high interest bearing account in a bank located in this state. The account shall be referred to as the “Auctioneer Education and Recovery Fund” and shall only be used for education and recovery purposes as detailed in this chapter.
2. The fees collected under § 17-17-404 shall be deposited into the fund.

History. Acts 1999, No. 227, § 3.

17-17-402. Applicability.

The provisions of this subchapter shall apply only to:

1. Auctioneers who were licensed at the time of the occurrence of the acts or violations complained of; and
2. Acts or violations which occur after December 31, 1999.

History. Acts 1999, No. 227, § 3.

17-17-403. Construction.

Nothing in this subchapter shall be construed to limit or restrict in any manner other civil or criminal remedies which may be available to any person.

History. Acts 1999, No. 227, § 3.

17-17-404. Additional fee.

1. Except as provided in subsection (b) of this section, each auctioneer shall pay to the Auctioneer's Licensing Board at the time of initial licensure and at each annual renewal a fee as the board may require, not to exceed one hundred dollars ($100). This fee shall be in addition to the other fees provided for in this chapter.
2. When the balance in the Auctioneer Education and Recovery Fund reaches one hundred eighty thousand dollars ($180,000), the fee shall be suspended until the fund balance falls to one hundred thousand dollars ($100,000) at which time the collection of the fee shall resume until the fund balance reaches one hundred eighty thousand dollars ($180,000).

History. Acts 1999, No. 227, § 3.

17-17-405. Disciplinary hearing — Recovery procedure.

1. 1. In any disciplinary hearing before the Auctioneer's Licensing Board that involves a licensee who has allegedly violated any provision of this chapter, the board shall first determine whether a violation has occurred.
   2. If so, the board shall then determine the amount of damages, if any, suffered by the aggrieved party or parties. However, damages shall be limited to actual damages in accordance with § 17-17-407.
   3. The board shall then direct the licensee to pay that amount to the aggrieved party or parties.
   4. 1. If that amount has not been paid within thirty (30) calendar days following entry of the board's final order in the matter and the order has not been appealed to the circuit court, then upon request the board shall pay from the Auctioneer Education and Recovery Fund to the aggrieved party or parties the amount specified.
      2. However, the board shall not:
         1. Pay in excess of fifteen thousand dollars ($15,000) for any one (1) violation or continuing series of violations regardless of the number of licensees who participated in the violation or continuing series of violations; or
         2. Pay an amount in excess of the fund balance.
2. The question of whether certain violations constitute a continuing series of violations shall be a matter solely within the discretion and judgment of the board.
3. Nothing within this subchapter shall obligate the fund for any amount in excess of a total of fifteen thousand dollars ($15,000) with respect to:
   1. The acts of any one (1) licensee; or
   2. Any group of related claims.
4. Whether a claim is one (1) of a group of related claims shall be a matter solely within the discretion and judgment of the board.
5. When unsatisfied or pending claims exceed the limits payable under subsection (c) of this section, the board shall be the sole determinant of how the available funds shall be allocated among such claims.

History. Acts 1999, No. 227, § 3; 2009, No. 773, § 2.

Amendments. The 2009 amendment substituted “fifteen thousand dollars ($15,000)” for “five thousand dollars ($5,000)” in (a)(4)(B)(i) and the introductory language of (c); and made minor stylistic changes in (a)(1) and (e).

17-17-406. Education.

The Auctioneer's Licensing Board, in its discretion, may use any funds in the Auctioneer Education and Recovery Fund in excess of the one-hundred-eighty-thousand-dollar level, regardless of whether it is from the fund fees or accrued interest thereon for any or all of the following purposes:

1. To carry out the advancement of education in the auction field for the benefit of those licensed under the provisions of this chapter;
2. To assist in the improvement and efficiency of the auctioneering profession; and
3. To underwrite educational seminars and other forms of educational projects for the use and benefit of auctioneer licensees.

History. Acts 1999, No. 227, § 3.

17-17-407. Jurisdiction.

1. The Auctioneer's Licensing Board's jurisdiction and authority to award damages to an aggrieved party pursuant to § 17-17-405 is limited to actual compensatory damages. The board shall not award punitive or exemplary damages, nor shall it award interest on damages.
2. The appellate jurisdiction of the circuit court is limited to the awarding of actual compensatory damages.
3. The circuit court shall have no authority or jurisdiction to assess punitive or exemplary damages under this subchapter.
4. The circuit court's jurisdiction over the Auctioneer Education and Recovery Fund shall be limited to appeals from the board's orders.
5. The circuit court shall have no jurisdiction or authority to order payments from the fund in any amount in excess of either:
   1. The amount determined by the board; or
   2. The limits set forth in § 17-17-405.

History. Acts 1999, No. 227, § 3.

17-17-408. Appeal.

1. An appeal may be taken to the circuit court from a final order of the Auctioneer's Licensing Board in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
2. An appeal shall automatically stay that portion of the board's order which directs the payment of damages, and neither the licensee nor the board shall be obligated to pay the damages to the aggrieved party or parties until such time as the appeal is finally decided, whether in the circuit court or in the Supreme Court.

History. Acts 1999, No. 227, § 3.

17-17-409. Subrogation — Suspension of license.

Upon the payment by the Auctioneer's Licensing Board of any amount of money under § 17-17-405:

1. The recipients of the payment, to the extent of the payment, shall assign to the board all rights and claims that they may have against the licensee involved;
2. The board shall be subrogated to all of the rights of the recipients of the payment to the extent of the payment; and
3. In addition to any other disciplinary action taken against the licensee on the merits of the hearing, his or her license shall be immediately suspended until he or she has completely reimbursed the board for the payment plus interest at a rate to be determined by the board.

History. Acts 1999, No. 227, § 3.

17-18-101. Purpose.

The purpose of this chapter is to provide an additional means of preventing theft of motor vehicle parts, tires, and accessories.

History. Acts 1963, No. 108, § 5; A.S.A. 1947, § 75-1805.

17-18-102. Penalty.

A person who violates this chapter or a rule hereunder shall be fined not less than twenty-five dollars ($25.00) and not more than five hundred dollars ($500).

History. Acts 1963, No. 108, § 6; A.S.A. 1947, § 75-1806; Acts 2019, No. 315, § 1356.

Amendments. The 2019 amendment substituted “rule” for “regulation”.

17-18-103. Authority of Division of Arkansas State Police.

The Division of Arkansas State Police is empowered to make and enforce reasonable rules to effectuate the purpose of this chapter.

History. Acts 1963, No. 108, § 4; A.S.A. 1947, § 75-1804; Acts 2019, No. 315, § 1357.

Amendments. The 2019 amendment substituted “rules” for “regulations”.

17-18-104. Record of transactions.

1. A person engaged in the wholesale or retail business of dealing in new or used motor vehicle parts, tires, or accessories shall make and keep at the place of business for a period of ninety (90) days, a record of:
   1. All motor vehicle parts, tires, or accessories acquired by such a person by purchase, trade, or pawn from any person other than an authorized dealer in motor vehicle parts, tires, or accessories; and
   2. Each completed transaction made pursuant to such an offer.
2. The record shall include:
   1. A description of the part, tire, or accessory involved;
   2. A description of the person from whom the part, tire, or accessory was acquired;
   3. A description, including the license number, of any motor vehicle in that person's possession; and
   4. Such other information as may be reasonably required for the purpose of this chapter.
3. The record shall be kept available at the place of business for inspection by any law enforcement officer.

History. Acts 1963, No. 108, §§ 1-3; A.S.A. 1947, §§ 75-1801 — 75-1803.

Subchapter 1 — General Provisions

Publisher's Notes. Former subchapter 1, concerning general provisions, was repealed by Acts 1989, No. 417, § 7. The former subchapter was derived from the following sources:

17-17-101. Acts 1971, No. 400, § 1; A.S.A. 1947, § 43-734.

17-17-102. Acts 1971, No. 400, § 14; A.S.A. 1947, § 43-747.

17-17-103. Acts 1971, No. 400, § 11; A.S.A. 1947, § 43-744.

17-17-104. Acts 1971, No. 400, § 10; A.S.A. 1947, § 43-743.

17-17-105. Acts 1971, No. 400, § 2; A.S.A. 1947, § 43-735.

17-17-106. Acts 1971, No. 400, § 12; A.S.A. 1947, § 43-745.

17-17-107. Acts 1971, No. 400, § 9; 1983, No. 811, § 4; A.S.A. 1947, § 43-742.

17-17-108. Acts 1971, No. 400, § 10; A.S.A. 1947, § 43-743.

Cross References. Bond or bond card in lieu of surrender of operator's or chauffeur's license, §§ 27-50-609, 27-50-610.

Effective Dates. Acts 1989, No. 417, § 8: Mar. 8, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the present laws on the regulation of the bail bond business and bail generally are confusing and have been applied in an inconsistent manner; that there is an urgent need for the revision of laws pertaining to bail and that this Act is immediately necessary to eliminate deficiencies found in the present law. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 901, § 52: Apr. 6, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the present laws addressed in this omnibus Act on workers' compensation benefits and insurance licensure and other insurance regulatory issues are inadequate for the protection of the Arkansas public and immediate passage of this Act is necessary in order to provide for the protection of the public. Therefore, an emergency is hereby declared to exist and this omnibus Act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1997, No. 1248, § 43: July 1, 1997. Emergency clause provided: “It is hereby found and determined by the Eighty-First General Assembly that the distribution of general revenues and the creation of the various funds and fund accounts are essential to be in force at the beginning of the state fiscal year and that in the event that the General Assembly extends beyond the sixty day limit, the effective date of this act would not begin at that time creating confusion and not permitting the agencies to implement those programs as approved by the General Assembly. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety Section 33 of this act shall be in full force and effect from and after the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, Section 33 shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, Section 33 shall become effective on the date the last house overrides the veto. The remaining sections of this act shall become effective from and after July 1, 1997.”

17-19-101. Definitions.

As used in this chapter, unless the context otherwise requires:

1. “Bail bond or appearance bond” means a bond for a specified monetary amount which is executed by the defendant and a qualified licensee under this chapter and which is issued to a court, magistrate, or authorized officer as security for the subsequent court appearance of the defendant upon his or her release from actual custody pending the appearance;
2. “Insurer” means any surety company which has qualified to transact surety business in this state;
3. “Licensee” means a professional bail bond company or a professional bail bondsman;
4. “Professional bail bond company” means an individual who is a resident of this state, an Arkansas firm, partnership, or corporation, or a foreign corporation registered and authorized to conduct business in the State of Arkansas that pledges a bail bond in connection with a judicial proceeding and receives or is promised therefor money or other things of value; and
5. “Professional bail bondsman” means an individual who is a resident of this state and who acts through authority of a professional bail bond company in pledging a bail bond as security in a judicial proceeding.

History. Acts 1989, No. 417, § 1; 1995, No. 827, §§ 1, 3; 2019, No. 386, § 3.

Amendments. The 2019 amendment deleted former (2).

17-19-102. Penalties.

1. Any person who is found guilty of violating any of the provisions of this chapter shall upon conviction be guilty of a Class A misdemeanor.
2. Any person who falsely represents to the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board that any person has met the education or continuing education requirements of §§ 17-19-107 and 17-19-212 and § 17-19-401 et seq. shall be guilty of a Class B misdemeanor and upon conviction shall be punished accordingly.

History. Acts 1989, No. 417, § 1; 1993, No. 499, § 6; 2005, No. 1994, § 226.

Amendments. The 2005 amendment substituted “guilty of a Class A misdemeanor” for “fined not more than one thousand dollars ($1,000) for each offense or imprisoned for not more than one (1) year, or both” in (a).

17-19-103. Civil and criminal proceedings.

The venue for any criminal or civil proceeding filed for any violation of this chapter shall be in the county wherein the violation occurred.

History. Acts 1989, No. 417, § 1.

17-19-104. Exemption.

This chapter shall not affect the negotiation through a licensed broker or agent for, nor the execution or delivery of, an undertaking of bail executed by an insurer for its insured under a policy of automobile insurance or of liability insurance upon the automobile of the insured.

History. Acts 1989, No. 417, § 1.

17-19-105. Prohibitions.

No professional bail bondsman or professional bail bond company, nor court, nor law enforcement officer, nor any individual working on behalf of a professional bail bondsman or professional bail bond company, shall:

1. Require as a condition of his or her executing a bail bond that the principal agree to engage the services of a specified attorney;
2. Solicit business or advertise for business in or about any place where prisoners are confined or in or about any court;
3. Suggest or advise the engagement of any bail bond company or professional bail bondsman to underwrite a bail bond;
4. Enter a police station, jail, sheriff's office, or other place where persons in custody of the law are detained for the purpose of obtaining employment as a professional bail bondsman or professional bail bond company, without having been previously called by a person so detained or by some relative or other authorized person acting for or in behalf of the person so detained. Whenever such an entry occurs, the person in charge of the facility shall be given and promptly record the mission of the licensee and the name of the person calling the licensee and requesting him or her to come;
5. Pay a fee or rebate or give or promise anything of value to:
   1. A jailer, police officer, peace officer, committing magistrate, or any other person who has power to arrest or to hold in custody; or
   2. Any public official or public employee in order to secure a settlement, compromise, remission, or reduction of the amount of any bail bond or estreatment thereof;
6. Pay a fee or rebate or give anything of value to an attorney in bail bond matters, except in defense of any action on a bond;
7. Pay a fee or rebate or give or promise anything of value to the principal or anyone in his or her behalf;
8. 1. Participate in the capacity of an attorney at a trial or hearing of one on whose bond he or she is surety;
   2. Attempt to obtain settlement or dismissal of a case;
   3. Give or attempt to give any legal advice to one on whose bond he or she is surety; or
9. Accept anything of value from a principal except the premium, provided that the licensee shall be permitted to accept collateral security or other indemnity from the principal which shall be returned upon final termination of liability on the bond. The collateral security or other indemnity required by the licensee must be reasonable in relation to the amount of the bond.

History. Acts 1989, No. 417, § 1; 1997, No. 973, § 5.

17-19-106. Professional Bail Bond Company and Professional Bail Bondsman Licensing Board.

1. This section may be cited as the “Arkansas Professional Bail Bond Company and Professional Bail Bondsman Licensing Act”.
2. 1. There is hereby created the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board.
   2. 1. The board shall be composed of eight (8) members to be appointed by the Governor for terms of seven (7) years.
      2. Vacancies shall be filled by appointment of the Governor for the unexpired portion of the term.
   3. 1. Three (3) members of the board shall be licensed bail bond company owners, one (1) a municipal chief of police, one (1) a county sheriff, one (1) a municipal or circuit judge, and two (2) shall be residents of the state who are not a bail bond company owner, an elected judge, a sheriff, or a chief of police.
      2. 1. No two (2) of the three (3) bail bondsman members shall reside in the same congressional district.
         2. At least one (1) board member shall be an African-American.
         3. At least one (1) board member shall be a female.
   4. The board shall have the authority and responsibility to administer and enforce the provisions of this chapter relating to licensing and regulation of professional bail bond companies and professional bail bondsmen.
   5. The board shall have the authority to adopt and enforce such reasonable rules as it shall determine to be necessary to enable it to effectively and efficiently carry out its official duty of licensing and regulating professional bail bond companies and professional bail bondsmen.
3. The members of the board shall receive expense reimbursement in accordance with § 25-16-901 et seq., and a stipend pursuant to § 25-16-904.
4. The provisions of this section shall not be construed to repeal any laws in effect on August 13, 1993, relating to the licensing and regulation of professional bail bond companies and professional bail bondsmen but such laws shall remain in full force and effect and shall be administered by the board created herein.

History. Acts 1993, No. 500, §§ 1-5; 1995, No. 827, § 2; 1997, No. 250, § 126; 1999, No. 1286, § 2; 2001, No. 1817, § 1; 2009, No. 683, §§ 1, 2; 2019, No. 315, § 1358.

A.C.R.C. Notes. Former § 17-17-106, concerning the authority of the State Insurance Department, is deemed superseded by this section. The former section was derived from Acts 1989, No. 417, § 1.

As originally enacted by Acts 1993, No. 500, § 2, subdivision (b)(1)(A) also provided that the members first appointed to the board shall draw lots for terms so that one (1) member will serve for a term of one (1) year, one (1) for a term of two (2) years, one (1) for a term of three (3) years, one (1) for a term of (4) years, one (1) for a term of five (5) years, one (1) for a term of six (6) years and one (1) for a term of seven (7) years. Thereafter, all appointments shall be for terms of seven (7) years.

As originally enacted by Acts 1993, No. 500, § 4, subdivision (b)(3) read as follows:

“The board shall have the authority to administer and enforce the provisions of this chapter, heretofore administered and enforced by the Commissioner of Insurance and the Insurance Department, relating to licensing and regulation of professional bail bond companies and professional bail bondsmen, … and all such authority and responsibility with respect to licensing and regulation of professional bail bond companies and professional bail bondsmen heretofore vested in and exercised by the Commissioner of Insurance and the Department of Insurance are hereby transferred to and vested in the Professional Bail Bond Company and Professional Bondsman Licensing Board.”

As originally enacted by Acts 1993, No. 500, § 4, subdivision (b)(4) also provided that all administrative rules and regulations concerning professional bail bond companies and professional bail bondsmen adopted by the Commissioner of Insurance and in effect on August 13, 1993, shall continue in full force and effect until revised or repealed by the board.

Amendments. The 2009 amendment substituted “eight (8)” for “seven (7)” in (b)(2)(A); substituted “two (2)” for “one (1)” in (b)(3)(A); and made related and minor stylistic changes.

The 2019 amendment deleted “and regulations” following “rules” in (b)(5).

17-19-107. Exception to education requirements.

Any licensed professional bail bondsman who is sixty-five (65) years of age or older and who has been licensed as a bail bondsman for fifteen (15) years or more shall be exempt from both the education and continuing education requirements of § 17-19-212 and § 17-19-401 et seq.

History. Acts 1993, No. 499, § 3.

17-19-108. Rules.

The Professional Bail Bond Company and Professional Bail Bondsman Licensing Board shall adopt such reasonable rules as it shall deem necessary to assure the effective and efficient administration of §§ 17-19-107 and 17-19-212 and § 17-19-401 et seq.

History. Acts 1993, No. 499, § 7; 2019, No. 315, § 1359.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the section heading and text.

17-19-109. Advertising by professional bail bond companies.

1. All business cards, signs, telephone ads, newspaper ads, or any other type of advertising by professional bail bond companies shall display the company name prominently to assure that the identity of the company doing the advertising is readily apparent.
2. Any such advertising by or on behalf of individual professional bail bondsmen shall prominently display the name of the bail bond company and shall contain no information or other indication that the bail bondsman is independent of the company.

History. Acts 1993, No. 400, § 1.

17-19-110. Licensed bail bond agent.

1. A licensed bail bond agent shall be permitted to write a bail bond in any county if:
   1. The agent has a current license with a current licensed professional bail bond company; and
   2. The agent and the agent's company are in good standing with the courts in the jurisdiction where the bond is to be posted.
2. A licensed bail bond agent shall carry a current copy of his or her professional bail bond agent license that shall indicate which professional bail bond company the bondsman works for and his or her qualifying power of attorney that is on file with the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board.
3. 1. Only one (1) power of attorney per bond not exceeding the agent's qualifying power of attorney shall be permitted unless a court has separated the charges and amounts of bonds.
   2. Powers of attorney shall not be stacked.

History. Acts 1993, No. 402, § 1; 1999, No. 567, § 2; 2003, No. 1648, § 3; 2011, No. 94, § 1.

Amendments. The 2011 amendment deleted “with a current copy of his or her license” following “any county” in the introductory language of (a); and substituted “professional bail bond agent license that shall indicate which professional bail bond company the bondsman works for and his or her” for “company's license, his or her bail bond agent license, and a current copy of his or her” in (b).

17-19-111. Fees.

1. Notwithstanding any other provisions of this chapter to the contrary, and notwithstanding any other provisions of Arkansas law to the contrary, a professional bail bond company, county sheriff, keeper of a jail, or other person authorized to take bond under § 16-84-102 is hereby required to charge, collect, and remit the following fees into the Bail Bondsman Board Fund for the support, personnel, maintenance, and operations of the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board and for the Domestic Peace Fund administered by the Arkansas Child Abuse/Rape/Domestic Violence Commission, in addition to any other fees, taxes, premium taxes, levies, or other assessments imposed in connection with the issuance of bail bonds under Arkansas law.
2. 1. In addition to the bail or appearance bond premium or compensation allowed under § 17-19-301, each licensed professional bail bond company, county sheriff, keeper of a jail, or other person authorized to take bond under § 16-84-102 shall charge and collect as a nonrefundable fee for the Bail Bondsman Board Fund an additional fee of ten dollars ($10.00) per bail bond for giving bond for each bail and appearance bond issued by the licensed professional bail bond company, county sheriff, keeper of a jail, or other person authorized to take bond under § 16-84-102 by or through its individual licensees.
   2. The fee shall be collected quarterly and then reported and filed with the board no later than fifteen (15) calendar days after the end of each quarter.
   3. The notarized quarterly reporting form and a notarized annual reconciliation form as to all fees collected for the Bail Bondsman Board Fund shall be filed by each professional bail bond company on forms prescribed by the board and at the times and in the manner as the board shall prescribe in conformity with this section.
   4. A paper-processing charge of fifteen dollars ($15.00) shall be collected on each bail bond in order to defray the surety's costs incurred by the quarterly and annual reporting requirements contained in this section and to further defray the surety's costs incurred in the collection of all fees due, owing, and collected on behalf of the Bail Bondsman Board Fund and the surety's costs incurred in the preparation of all required reports submitted in conformance with the standards established by the American Institute of Certified Public Accountants.
3. 1. The board may grant an extension for the filing of the report and fees for good cause shown upon timely written request.
   2. Absent an extension for good cause shown, each licensed professional bail bond company failing to report or pay these fees shall be liable to the Bail Bondsman Board Fund for a monetary penalty of one hundred dollars ($100) per day for each day of delinquency.
   3. The board may pursue any appropriate legal remedies on behalf of the Bail Bondsman Board Fund to collect any delinquent fees and penalties.
4. 1. Upon collection of the fees and any monetary penalties, the board shall deposit or fund:
      1. Sufficient fees and penalties directly into the Bail Bondsman Board Fund to provide for the personal services and operating expenses of the board; and
      2. The remainder of all fees and penalties directly into the Domestic Peace Fund administered by the Arkansas Child Abuse/Rape/Domestic Violence Commission.
   2. The fees and penalties shall be in addition to all other fees, licensure or registration fees, taxes, assessments, levies, or penalties payable to any federal or state office, court, agency, board, or commission or other public official or officer of the state, or its political subdivisions, including counties, cities, or municipalities, by a professional bail bond company, county sheriff, keeper of a jail, or other person authorized to take bond under § 16-84-102.
   3. 1. Each bail bondsman is required to assist in collection of the fees but is exempt from the payment of the fees to the Bail Bondsman Board Fund unless he or she misappropriates or converts such moneys to his or her own use or to the use of others not entitled to the fees.
      2. In that case, the board shall proceed on behalf of the Bail Bondsman Board Fund with any civil or criminal remedies at its disposal against the individual responsible.
      3. Upon criminal conviction of the individual responsible for fraudulent conversion of the moneys due the Bail Bondsman Board Fund, the individual responsible shall pay restitution to the Bail Bondsman Board Fund, and the court shall incorporate a finding to that effect in its order.
      4. Absent substantial evidence to the contrary, the violations by the individual may be attributed to the employing bail bond company, and any criminal or civil court may, in its discretion and upon substantial evidence, order the employing bail bond company to pay restitution to the Bail Bondsman Board Fund on behalf of the responsible individual and shall incorporate that finding into its order.
5. For purposes of any statutory security deposit Arkansas law requires of professional bail bond companies, including, but not limited to, the deposit under § 17-19-205, the payment of the fees required by this section is considered to be a duty of the licensee, so as to allow the board on behalf of the Bail Bondsman Board Fund to make a claim against any such deposit for the fees required by this section and any penalties owed on the fees, up to the limit of any security deposit.
6. Under no circumstances shall the fees or penalties held in or for deposit into the Bail Bondsman Board Fund be subject to any tax, levy, or assessment of any kind, including, but not limited to, bond forfeiture claims, garnishment or general creditors' claims, remedies under Title 16 of this Code, or other provisions of Arkansas law.

History. Acts 1993, No. 901, § 31; 1997, No. 1096, § 1; 1997, No. 1248, § 39; 2007, No. 730, § 1; 2013, No. 1281, § 1; 2015, No. 1156, § 2.

A.C.R.C. Notes. As enacted, subdivision (b)(1) of this section began: “Commencing on May 1, 1993, and.”

Amendments. The 2007 amendment inserted “and for the Domestic Peace Fund administered by the Arkansas Child Abuse/Rape/Domestic Violence Commission” in (a); and rewrote (d)(1).

The 2013 amendment substituted “Bail Bondsman Board Fund” for “State Insurance Department Trust Fund” and “fund” and “board” for “commissioner” throughout the section; in (a), substituted “company, county sheriff, keeper of a jail, or other person authorized to take bond under § 16-84-102 is” for “companies are”, deleted “for direct deposit as special revenues” following “the following fees”, substituted “Professional Bail Bond Company and Professional Bail Bondsman Licensing Board” for “State Insurance Department”, and deleted “by professional bail bond companies” preceding “under Arkansas law”; inserted “county sheriff, keeper of a jail, or other person authorized to take bond under § 16-84-102” twice in (b)(1); inserted “or fund” in (d)(1); substituted “board” for “Professional Bail Bond Company and Professional Bail Bondsman Licensing Board under subsection (g) of this section” in (d)(1)(A); substituted “company, county sheriff, keeper of a jail, or other person authorized to take bond under § 16-84-102” for “companies” in (d)(2); and deleted (g).

The 2015 amendment, in (b)(1), substituted “fee of ten dollars ($10.00)” for “ten-dollar fee” and deleted “and every” preceding “bail and appearance bond issued”; substituted “fee” for “fees” in (b)(2); substituted “in this section” for “herein” in (b)(4); deleted “in its discretion” following “board may” in (c)(1); deleted “owed as special revenues” following “penalties” in (c)(3); deleted “as special revenues” following “fund” in the introductory language of (d)(1); in (d)(3)(A), deleted “individual” preceding “bail bondsman” and deleted “duty and responsibility of” preceding “payment”; substituted “by” for “of” preceding “the individual” in (d)(3)(D); substituted “on the fees” for “thereon” in (e); and, in (f), deleted “thereon” following “penalties”, deleted “as special revenues” following “Board Fund”, and deleted “any” preceding “bond forfeiture”, “garnishment”, and “remedies”.

Cross References. Bail Bondsman Board Fund, § 19-5-1088.

17-19-112. Unpaid bond forfeiture judgment limits.

1. 1. There shall be an initial one hundred thousand dollars ($100,000) limit on active unpaid bond forfeiture judgments for each bail bonding company.
   2. Under this section, the amount of unpaid forfeiture or forfeitures shall be determined using the face value of an unpaid forfeited bond.
2. When the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board is notified of a bond forfeiture judgment under § 17-19-208(b)(1) and has issued notice to the company after ninety (90) days from the date of judgment has elapsed, the value of the forfeited bond shall count against that company's respective limit.
3. When a company's unpaid bond forfeiture or forfeitures reach one hundred thousand dollars ($100,000) or the total amount of security deposit posted with the board, whichever is higher, the company license shall be suspended.
4. The license shall remain suspended until:
   1. The company can post an additional certificate of deposit or letter of credit with the board so that the company's security deposit exceeds the unpaid bond forfeiture or forfeitures amount;
   2. The bond forfeiture judgment or judgments are paid to the extent that the total amount of unpaid forfeiture or forfeitures are less than the security deposit posted with the board; or
   3. 1. The court that entered the bond forfeiture judgment releases the company's security deposit from responsibility on the unpaid forfeiture as required by § 17-19-208(a)(1).
      2. If the court releases the company's security deposit from responsibility on an unpaid bond forfeiture judgment, the release must be decreed by court order.
5. If the court releases the company's security deposit from liability on a bond forfeiture, that bond amount shall not count against the company's unpaid forfeiture limit.
6. A company's unpaid bond forfeiture limit shall not exceed one hundred thousand dollars ($100,000) unless the company has posted additional security with the board and shall never exceed the company's total amount of posted security deposit or one hundred thousand dollars ($100,000), whichever is more.

History. Acts 2011, No. 96, § 1.

Subchapter 2 — Licensing

Publisher's Notes. Former subchapter 2, concerning licensing, was repealed by Acts 1989, No. 417, § 7. The former subchapter was derived from the following sources:

17-17-201. Acts 1971, No. 400, §§ 3, 13; A.S.A. 1947, §§ 43-736, 43-746.

17-17-202. Acts 1971, No. 400, §§ 4, 5; 1983, No. 811, §§ 1, 2; A.S.A. 1947, §§ 43-737, 43-738.

17-17-203. Acts 1971, No. 400, § 4; 1983, No. 811, § 1; A.S.A. 1947, § 43-737.

17-17-204. Acts 1971, No. 400, § 4; 1983, No. 811, § 1; A.S.A. 1947, § 43-737.

17-17-205. Acts 1971, No. 400, §§ 4, 5; 1983, No. 811, §§ 1, 2; A.S.A. 1947, §§ 43-737, 43-738.

17-17-206. Acts 1971, No. 400, §§ 4, 6; 1983, No. 811, § 1; A.S.A. 1947, §§ 43-737, 43-739.

17-17-207. Acts 1971, No. 400, § 8; 1973, No. 55, § 2; 1983, No. 811, § 3; A.S.A. 1947, § 43-741.

17-17-208. Acts 1971, No. 400, § 7; 1973, No. 55, § 1; A.S.A. 1947, § 43-740.

Effective Dates. Acts 1989, No. 417, § 8: Mar. 8, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the present laws on the regulation of the bail bond business and bail generally are confusing and have been applied in an inconsistent manner; that there is an urgent need for the revision of laws pertaining to bail and that this Act is immediately necessary to eliminate deficiencies found in the present law. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 2003, No. 1174, § 2: Apr. 8, 2003. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that an appeal from an order by the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board to the County Circuit of Pulaski County operates as a stay which may cause an injustice to occur; that the stay shouldn't be automatic, but rather after a hearing. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

Acts 2005, No. 1960, § 2: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that the liability of bail bond companies has increased dramatically; and that this act is necessary to ensure that bail bond companies are able to perform their duties. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2005.”

Acts 2019, No. 819, § 26(a): May 1, 2021. Effective date clause provided: “Sections 3-17 and 20-24 of this act are effective on and after May 1, 2021”.

17-19-201. Licenses required.

1. No person shall engage in bail bond business without first having been licensed as provided in this chapter.
2. A professional bail bondsman shall not execute or issue an appearance bond in this state without holding a valid appointment from a professional bail bond company and without attaching to the appearance bond an executed and numbered power of attorney referencing the professional bail bond company.
3. An insurer shall not execute an undertaking of bail without being licensed as a professional bail bond company.
4. A professional bail bond company shall not engage in the bail bond business:
   1. Without having been licensed as a professional bail bond company under this chapter; and
   2. Except through an agent licensed as a professional bail bondsman under this chapter.
5. A professional bail bond company shall not permit any unlicensed person to solicit or engage in the bail bond business in the company's behalf, except for individuals who are employed solely for the performance of clerical, stenographic, investigative, or other administrative duties which do not require a license under this chapter and whose compensation is not related to or contingent upon the number of bonds written.

History. Acts 1989, No. 417, § 1.

17-19-202. Applications. [Effective until May 1, 2021.]

1. Every applicant for a professional bail bondsman license or a professional bail bond company license shall apply on forms furnished by the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board.
2. The application of a professional bail bondsman shall be accompanied by a duly executed power of attorney issued by the professional bail bond company for whom the professional bail bondsman will be acting.
3. 1. An application for a professional bail bond company license shall be accompanied by proof that the applicant:
      1. Is an Arkansas partnership, firm, or corporation, a foreign corporation registered and authorized to conduct business in the State of Arkansas, or an individual who is a resident of the state; and
      2. Has at least one (1) owner or partner that has been licensed for at least two (2) years during the last three (3) years by the State of Arkansas as a professional bail bondsman.
   2. A corporation shall file proof that its most recent annual franchise tax has been paid to the Secretary of State.
4. 1. 1. At the time of application for every professional bail bond company license, there shall be paid to the board:
         1. For a new company license, a fee of two thousand five hundred dollars ($2,500); or
         2. For a renewal of a company license, a fee of one thousand dollars ($1,000).
      2. Each professional bail bond company license or renewal for a sole proprietor, partnership, or corporation shall include one (1) license for one (1) agent per company per year.
   2. Each applicant for a professional bail bondsman license shall pay the board a license fee of one hundred dollars ($100) at the time of application, except that if the applicant is also an applicant as an individual for a professional bail bond company license, then the applicant shall not be required to pay a license fee for licensure as a professional bail bondsman but shall comply with all other requirements for licensure as a professional bail bondsman.
   3. License fees shall be payable in full on a yearly basis regardless of the date of issuance.
   4. Any agent who transfers his or her license from one professional bail bond company to another shall:
      1. Pay to the board a transfer fee of two hundred fifty dollars ($250); and
      2. File with the board:
         1. A sworn affidavit stating that all premiums, fees, and powers of attorney owed to or issued by the professional bail bond company from which he or she is transferring his or her license have been delivered to the company;
         2. A letter of resignation addressed to the professional bail bond company from which he or she is transferring or a letter of termination addressed to him or her from the professional bail bond company terminating his or her appointment;
         3. A completed agent application on forms prescribed by the board;
         4. A completed company statement from the company to which he or she desires to transfer his or her license; and
         5. An original qualifying power of attorney issued by the company to which he or she desires to transfer his or her license.
   5. 1. Upon receipt of a request for transfer of a bail bondsman license, the applicable transfer fee, and the documents specified in subdivision (d)(4) of this section, the board shall forward copies of the letter of resignation, if applicable, and the sworn affidavit of the agent to the professional bail bond company from which the agent desires to transfer his or her license.
      2. Upon receipt of the letter of resignation, if applicable, and the sworn affidavit of the licensee, the professional bail bond company from which the agent is transferring shall have seven (7) business days to contest the agent's sworn statement.
      3. A professional bail bond company contesting an agent's sworn statement shall file a written complaint on forms furnished by the board setting out in detail the property that the company denies the agent has returned as attested by the sworn affidavit.
      4. Any documents supporting the complaint contesting the sworn affidavit and which shall be offered as evidence to prove the complaint shall be filed with the complaint.
      5. Upon receipt of the complaint, the Executive Director of the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board shall set the matter for informal hearing to be held within seven (7) days of receipt of the complaint and advise the professional bail bond company and the agent by certified mail, return receipt requested, of the date, time, and location of the informal hearing.
      6. Either party may appeal the decision of the executive director to a formal hearing before the board by filing with the board a notice of appeal within seven (7) days of receipt of the decision by the executive director.
      7. 1. No transfer of an agent's license shall be effective before the expiration of the seven-day period for contesting the transfer request unless the professional bail bond company from which the agent is requesting a transfer shall notify the board that it has no objection to the transfer, in which case the transfer may be entered before expiration of the seven-day period.
         2. If no complaint contesting the agent's sworn affidavit is received during the seven-day contest period, the license shall be transferred as requested.
         3. A professional bail bond company that does not contest the sworn affidavit of a transferring agent is not precluded by the failure to contest the sworn affidavit from filing a complaint that alleges a violation of the applicable statutes or rules by the transferring agent upon discovery of the alleged violation by the professional bail bond company.
      8. 1. If the allegations of a complaint contesting the transfer are found by the board to have been established, no transfer of the license shall be accomplished until the agent accounts for, returns, or pays to the professional bail bond company contesting the transfer the property or money issued to or held in a fiduciary capacity by the agent.
         2. If a complaint is filed contesting the sworn affidavit of the transferring agent, a specific finding of fact shall be made by the board concerning whether the affidavit or complaint contesting the affidavit was filed in good faith by the respective parties.
         3. In the case of a finding of a lack of good faith, the party to whom the finding applies shall be subject to sanctions or disciplinary action pursuant to the provisions of § 17-19-210 and as provided by applicable rules.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4; 1999, No. 567, § 1; 2001, No. 1680, § 1; 2005, No. 858, § 1; 2005, No. 1960, § 1; 2019, No. 315, § 1360.

Publisher's Notes. For text of section effective May 1, 2021, see the following version.

Amendments. The 2005 amendment by No. 858, in (d)(4), substituted “agent who” for “agent that”, inserted the subdivision (A) designation and made related changes; and added (d)(4)(B) and (d)(5).

The 2005 amendment by No. 1960 inserted the subdivision (A) designation in (c)(1) and made related changes; and added (c)(1)(B).

The 2019 amendment substituted “statutes or rules” for “statutes, rules, or regulations” in (d)(5)(G)(iii).

17-19-202. Applications. [Effective May 1, 2021.]

1. Every applicant for a professional bail bondsman license or a professional bail bond company license shall apply on forms furnished by the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board.
2. The application of a professional bail bondsman shall be accompanied by a duly executed power of attorney issued by the professional bail bond company for whom the professional bail bondsman will be acting.
3. 1. An application for a professional bail bond company license shall be accompanied by proof that the applicant:
      1. Is an Arkansas partnership, firm, or corporation, a foreign corporation registered and authorized to conduct business in the State of Arkansas, or an individual who is a resident of the state; and
      2. Has at least one (1) owner or partner that has been licensed for at least two (2) years during the last three (3) years by the State of Arkansas as a professional bail bondsman.
   2. A corporation shall file proof that its most recent annual franchise tax has been paid to the Department of Finance and Administration.
4. 1. 1. At the time of application for every professional bail bond company license, there shall be paid to the board:
         1. For a new company license, a fee of two thousand five hundred dollars ($2,500); or
         2. For a renewal of a company license, a fee of one thousand dollars ($1,000).
      2. Each professional bail bond company license or renewal for a sole proprietor, partnership, or corporation shall include one (1) license for one (1) agent per company per year.
   2. Each applicant for a professional bail bondsman license shall pay the board a license fee of one hundred dollars ($100) at the time of application, except that if the applicant is also an applicant as an individual for a professional bail bond company license, then the applicant shall not be required to pay a license fee for licensure as a professional bail bondsman but shall comply with all other requirements for licensure as a professional bail bondsman.
   3. License fees shall be payable in full on a yearly basis regardless of the date of issuance.
   4. Any agent who transfers his or her license from one professional bail bond company to another shall:
      1. Pay to the board a transfer fee of two hundred fifty dollars ($250); and
      2. File with the board:
         1. A sworn affidavit stating that all premiums, fees, and powers of attorney owed to or issued by the professional bail bond company from which he or she is transferring his or her license have been delivered to the company;
         2. A letter of resignation addressed to the professional bail bond company from which he or she is transferring or a letter of termination addressed to him or her from the professional bail bond company terminating his or her appointment;
         3. A completed agent application on forms prescribed by the board;
         4. A completed company statement from the company to which he or she desires to transfer his or her license; and
         5. An original qualifying power of attorney issued by the company to which he or she desires to transfer his or her license.
   5. 1. Upon receipt of a request for transfer of a bail bondsman license, the applicable transfer fee, and the documents specified in subdivision (d)(4) of this section, the board shall forward copies of the letter of resignation, if applicable, and the sworn affidavit of the agent to the professional bail bond company from which the agent desires to transfer his or her license.
      2. Upon receipt of the letter of resignation, if applicable, and the sworn affidavit of the licensee, the professional bail bond company from which the agent is transferring shall have seven (7) business days to contest the agent's sworn statement.
      3. A professional bail bond company contesting an agent's sworn statement shall file a written complaint on forms furnished by the board setting out in detail the property that the company denies the agent has returned as attested by the sworn affidavit.
      4. Any documents supporting the complaint contesting the sworn affidavit and which shall be offered as evidence to prove the complaint shall be filed with the complaint.
      5. Upon receipt of the complaint, the Executive Director of the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board shall set the matter for informal hearing to be held within seven (7) days of receipt of the complaint and advise the professional bail bond company and the agent by certified mail, return receipt requested, of the date, time, and location of the informal hearing.
      6. Either party may appeal the decision of the executive director to a formal hearing before the board by filing with the board a notice of appeal within seven (7) days of receipt of the decision by the executive director.
      7. 1. No transfer of an agent's license shall be effective before the expiration of the seven-day period for contesting the transfer request unless the professional bail bond company from which the agent is requesting a transfer shall notify the board that it has no objection to the transfer, in which case the transfer may be entered before expiration of the seven-day period.
         2. If no complaint contesting the agent's sworn affidavit is received during the seven-day contest period, the license shall be transferred as requested.
         3. A professional bail bond company that does not contest the sworn affidavit of a transferring agent is not precluded by the failure to contest the sworn affidavit from filing a complaint that alleges a violation of the applicable statutes or rules by the transferring agent upon discovery of the alleged violation by the professional bail bond company.
      8. 1. If the allegations of a complaint contesting the transfer are found by the board to have been established, no transfer of the license shall be accomplished until the agent accounts for, returns, or pays to the professional bail bond company contesting the transfer the property or money issued to or held in a fiduciary capacity by the agent.
         2. If a complaint is filed contesting the sworn affidavit of the transferring agent, a specific finding of fact shall be made by the board concerning whether the affidavit or complaint contesting the affidavit was filed in good faith by the respective parties.
         3. In the case of a finding of a lack of good faith, the party to whom the finding applies shall be subject to sanctions or disciplinary action pursuant to the provisions of § 17-19-210 and as provided by applicable rules.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4; 1999, No. 567, § 1; 2001, No. 1680, § 1; 2005, No. 858, § 1; 2005, No. 1960, § 1; 2019, No. 315, § 1360; 2019, No. 819, § 12.

A.C.R.C. Notes. Acts 2019, No. 819, § 1, provided: “Title. This act shall be known and may be cited as the ‘Arkansas Tax Reform Act of 2019’”.

Acts 2019, No. 819, § 2, provided:

“Legislative findings and intent.

“(a) The General Assembly finds that:

“(1) The Arkansas Tax Reform and Relief Legislative Task Force was charged with:

“(A) Examining and identifying areas of potential tax reform within the tax laws; and

“(B) Recommending legislation to the General Assembly, in part, to modernize and simplify the Arkansas tax code and ensure fairness to all taxpayers;

“(2) There are several areas of the tax code that should be amended to reform the state's tax laws to modernize and simplify the tax code and ensure fairness to all taxpayers; and

“(3) Any savings realized by the state through tax reforms should be dedicated to reducing the tax burden for Arkansas taxpayers.

“(b) It is the intent of the General Assembly to:

“(1) Reform Arkansas tax laws to modernize and simplify the tax code and ensure fairness to all taxpayers; and

“(2) Offset any revenue savings realized through tax reform with corresponding changes to reduce the tax burden for Arkansas taxpayers”.

Publisher's Notes. For text of section effective until May 1, 2021, see the preceding version.

Amendments. The 2005 amendment by No. 858, in (d)(4), substituted “agent who” for “agent that”, inserted the subdivision (A) designation and made related changes; and added (d)(4)(B) and (d)(5).

The 2005 amendment by No. 1960 inserted the subdivision (A) designation in (c)(1) and made related changes; and added (c)(1)(B).

The 2019 amendment by No. 315 substituted “statutes or rules” for “statutes, rules, or regulations” in (d)(5)(G)(iii).

The 2019 amendment by No. 819 substituted “Department of Finance and Administration” for “Secretary of State” in (c)(2).

Effective Dates. Acts 2019, No. 819, § 26(a): May 1, 2021. Effective date clause provided: “Sections 3-17 and 20-24 of this act are effective on and after May 1, 2021”.

17-19-203. Character references.

Each applicant for a professional bail bondsman license shall:

1. File with the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board written statements from at least three (3) persons who know his or her character;
2. 1. Be required to apply to the Identification Bureau of the Division of Arkansas State Police for a state and nationwide criminal records check to be conducted by the Federal Bureau of Investigation.
   2. The criminal records check shall conform to the applicable federal standards and shall include the taking of fingerprints.
   3. The applicant shall sign a release of information to the board and shall be responsible to the Division of Arkansas State Police for the payment of any fee associated with the criminal records check.
   4. Upon completion of the criminal records check, the Identification Bureau shall forward all information obtained concerning the applicant to the board.
   5. At the conclusion of the criminal background check required by this subdivision (2), the Identification Bureau shall promptly destroy the fingerprint card of the applicant; and
3. Provide other proof as the board may require that he or she is competent, trustworthy, financially responsible, and of good personal and business reputation and has not been convicted of a felony listed under § 17-3-102.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4; 1999, No. 1346, § 1; 2019, No. 990, § 21.

Amendments. The 2019 amendment, in (3), substituted “Provide other proof” for “Such other proof” and substituted “felony listed under § 17-3-102” for “felony or any offense involving moral turpitude”.

17-19-204. Examination.

1. In order to determine the competence of each applicant for a professional bail bondsman license, the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board shall require every individual to submit to, and to pass to the satisfaction of the board, a written examination to be prepared by the board and appropriate to the transaction of bail bond business.
2. Such an examination shall be held in a location and at such times as the board shall determine.
3. Every individual applying to take a written examination shall, at the time of applying therefor, pay to the board a nonrefundable examination fee of twenty-five dollars ($25.00).
4. If the application is approved, and if the nonrefundable examination fee is paid, an examination permit will be issued to the applicant. The permit will be valid for a period of ninety (90) days from the date of issuance. If the applicant does not schedule and appear for examination within that ninety-day period, the permit shall expire and the applicant may be required to file a new application, and shall pay another nonrefundable examination fee of twenty-five dollars ($25.00) before issuance of another examination permit to the applicant.
5. If the applicant appears for examination but fails to pass the examination, the applicant may apply for reexamination. The reexamination fee shall be a nonrefundable fee of fifteen dollars ($15.00). The board may require a waiting period of eight (8) weeks before reexamination of an applicant who twice failed to pass previous similar examinations.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4.

17-19-205. Letter of credit or certificate of deposit required.

1. 1. An applicant for a professional bail bond company license shall file with the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board an irrevocable letter of credit from an Arkansas chartered bank or a federally chartered bank in Arkansas or a certificate of deposit.
   2. 1. The letter of credit or certificate of deposit shall be approved by the board as to form and sufficiency and shall be conditioned upon faithful performance of the duties of the licensee.
      2. The minimum amount for a professional bail bond company initially licensed on or before July 1, 1989, shall be twenty-five thousand dollars ($25,000).
      3. The minimum amount for a professional bail bond company initially licensed after July 1, 1989, shall be one hundred thousand dollars ($100,000).
      4. The minimum amount for a professional bail bond company initially licensed on or after July 1, 2009, shall be two hundred fifty thousand dollars ($250,000).
      5. Professional bail bond companies and professional bail bondsmen who were licensed under Act 400 of 1971 [repealed] before March 8, 1989, shall be required only to file or have on file with the board a letter of credit or certificate of deposit approved by the board as to form and sufficiency, in a minimum amount of five thousand dollars ($5,000), conditioned upon the faithful performance of the duties of the licensee, provided they do not exceed the maximum amount of unsecured bond commitments as provided in § 17-19-304 [repealed].
2. A letter of credit or certificate of deposit shall not be subject to termination or cancellation by either party in less than sixty (60) days after the giving of written notice thereof to the other parties and to the board.
3. A termination or cancellation shall not affect the liability of the surety or sureties on a bond incurred before the effective date of termination or cancellation.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4; 2009, No. 147, § 1.

Amendments. The 2009 amendment inserted (a)(2)(D) and redesignated the remaining subsections accordingly; and made minor stylistic changes.

17-19-206. Duties of board and clerks.

1. Before issuance of a license under this chapter, applicants for a license shall satisfy the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board as to Arkansas residency, trustworthiness, and competence, as applicable, and shall otherwise comply with the conditions and qualifications set forth in this chapter.
2. 1. The board may refuse to issue a license to an applicant who fails to comply with the provisions of this chapter or rule of the board.
   2. The board may refuse to issue a license to an applicant that has made a material misrepresentation in the application for a license.
3. Upon the approval and issuance of a license under this chapter, the board shall give notice to the sheriff of each county in the state.
4. Upon revocation or suspension of license, the board shall give notice to that effect to the sheriff in each county in the state.
5. The board shall maintain a complete record of registrations, revocations, and suspensions, and the record shall be available to the sheriff and county clerk of each county of the state.
6. Annually, the board shall furnish the sheriffs with a list of renewal licenses.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4; 2007, No. 674, § 1; 2011, No. 95, § 1.

Amendments. The 2007 amendment, in (e), substituted “board ” for “sheriff and circuit clerk in each county,” added “and the record shall be available to the sheriff and county clerk of each county of the state,” and made a related change.

The 2011 amendment deleted “or regulation” following “chapter or rule” in (b)(1); in (c) and (d), deleted “written” preceding “notice” and “and circuit clerk” following “sheriff”; and deleted “and circuit clerks” following “the sheriffs” in (f).

17-19-207. Expiration and renewal.

1. Every license issued pursuant to this chapter shall be for a term expiring on December 31 following the date of its issuance, and it may be renewed for the ensuing calendar year upon the filing of a renewal application.
2. The Professional Bail Bond Company and Professional Bail Bondsman Licensing Board may refuse to renew a license for any cause for which issuance of the original license could have been refused or for the licensee's violation of any of the provisions of this chapter or the rules of the board.
3. Every licensee shall be required to file a renewal application, the form and subject matter of which shall be prescribed by the board.
4. 1. At the time of application for renewal of a professional bail bond company license, there shall be paid to the board for the company's renewal license a fee of one thousand dollars ($1,000).
   2. Each professional bail bondsman shall pay a fee of one hundred dollars ($100) for renewal of the license, except that if the applicant for renewal also holds a professional bail bond company license, then the applicant shall not be required to pay a renewal fee for a professional bail bondsman license.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4; 2019, No. 315, § 1361.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in (b).

17-19-208. Civil action — Administrative action.

1. 1. If during the term of the letter of credit or certificate of deposit any licensee shall be guilty of misconduct or malfeasance in his or her dealings with any court or magistrate or officer or with any person or company in connection with any deposit or bail bond, the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board may maintain a civil action on the letter of credit or certificate of deposit, or may maintain an administrative action on any certificate of deposit. The board may recover for the use and benefit of the person or persons aggrieved a maximum amount of ten thousand dollars ($10,000). The provisions of this subdivision (a)(1) shall be in addition to all other remedies available to the aggrieved person and nothing in this subdivision (a)(1) shall be construed as limiting the liability of a professional bail bond company or a professional bail bondsman.
   2. The board may suspend the license of such a licensee until such time as the board recovers the full amount allowable or recovers for the benefit of the persons aggrieved the amount of loss or injury sustained pursuant to subdivision (a)(1) of this section, and until such time as the licensee has filed with the board an additional letter of credit or certificate of deposit in the required amount. The board shall promptly notify the licensee as provided in subdivision (b)(2) of this section.
2. 1. When a final civil judgment for court-ordered bond forfeitures is entered as to a bail bond issued by the licensee by a court of competent jurisdiction in this state and the judgment is not paid within ninety (90) days thereafter, the court may send a copy of the judgment, duly certified by the clerk of the court, and proof of service of the judgment on the licensee in accordance with Rule 5 of the Arkansas Rules of Civil Procedure to the board, and then the board may promptly make a claim on the surety for payment of the allowable amount of the licensee's letters of credit on behalf of the court or shall withdraw the allowable amount of the licensee's certificates of deposit and shall transmit to the clerk of the court so much of the securities as are allowable. The board shall honor the judgments from the respective courts up to the limits set out in subdivision (a)(1) of this section.
   2. Upon receipt of the judgment and proof of notice of service on the licensee, the board may suspend the license of the licensee until such time as the judgment is paid or otherwise satisfied and until such time as the licensee has filed with the board another letter of credit or certificate of deposit in the required amount. The board shall promptly notify the licensee in writing by certified mail of the claims upon the licensee's letter of credit or certificates of deposit and shall also include a copy of the board's order of suspension.
   3. If the allowable amount of the letter of credit or certificate of deposit filed with the board is not sufficient to pay or otherwise satisfy the judgments as to bail bonds issued by the professional bail bond company in § 17-19-205(a), the board may promptly make a claim against the professional bail bond company on behalf of the court.
3. In the event a professional bail bond company fails to file with the board the additional letter of credit or certificate of deposit to maintain the license within ninety (90) days from the effective date of the board's order of suspension as provided in subdivision (a)(2), (b)(2), or (b)(3) of this section, the board shall cancel the license of the licensee and shall promptly notify the licensee as provided in subdivision (b)(2) of this section.
4. Upon the nonrenewal, cancellation, or revocation of any license hereunder, the board will release to the licensee the qualifying bonds or certificates of deposit filed with the board only upon receipt of written documentation from all the courts in all the counties in which the licensee engaged in business that all bonds issued by the licensee have been exonerated, and that no unpaid bond forfeitures remain outstanding, and that all civil judgments as to forfeitures on bonds issued by the licensee have been paid in full.
5. If a company license has been revoked because of unpaid judgments, during the appeals process the company shall file a supersedeas bond in the amount of the unpaid judgments with the court in which the appeal is taken.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4; 2001, No. 1679, § 1; 2009, No. 633, § 18.

Amendments. The 2009 amendment, in (b)(1), substituted “Rule 5 of the Arkansas Rules of Civil Procedure” for “present laws governing service of process on defendants in other civil actions” and made related and minor stylistic changes.

17-19-209. Violations — Hearings.

1. The Professional Bail Bond Company and Professional Bail Bondsman Licensing Board shall investigate any alleged violation of this chapter.
2. Any person may file a complaint stating facts constituting an alleged violation of this chapter. The complaint shall be signed under penalty of perjury.
3. All hearings held under this chapter shall be conducted in the same manner as hearings held by the board under the Arkansas Administrative Procedure Act, § 25-15-201 et seq., unless otherwise stated in this chapter.
4. 1. 1. With respect to the subject of any examination, investigation, or hearing being conducted by the board, the board or the Executive Director of the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board, with board approval, may subpoena witnesses and administer oaths and affirmations, and examine an individual under oath, and may require and compel the production of records, books, papers, contracts, and other documents.
      2. A professional bail bondsman or professional bail bond company that fails to comply with this section may be subject to penalties under § 17-19-210.
   2. Subpoenas of witnesses shall be served in the same manner as if issued by a circuit court and may be served by certified mail.
   3. If any individual fails to obey a subpoena issued and served pursuant to this section with respect to any matter concerning which he or she may be lawfully interrogated, upon application of the board, the Pulaski County Circuit Court may issue an order requiring the individual to comply with the subpoena and to testify.
   4. Any failure to obey the order of the court may be punished by the court as a contempt thereof.
   5. Any person willfully testifying falsely under oath to any matter material to any examination, investigation, or hearing shall upon conviction be guilty of perjury and punished accordingly.
5. Not less than ten (10) days in advance, the board shall give notice of the time and place of the hearing, stating the matters to be considered at the hearing.
6. The board shall allow any party to the hearing to appear in person and by counsel, to be present during the giving of all evidence, to have a reasonable opportunity to inspect all documentary evidence and to examine witnesses, to present evidence in support of his or her interest, and to have subpoenas issued by the board to compel attendance of witnesses and production of evidence in his or her behalf.
7. 1. A party may appeal from any order of the board as a matter of right and shall be taken to the Pulaski County Circuit Court by filing written notice of appeal to the court and by filing a copy of the notice with the board.
   2. Within thirty (30) days after filing the copy of a notice of appeal with the board, the board shall make, certify, and deposit in the office of the clerk of the court in which the appeal is pending a full and complete transcript of all proceedings had before the board and all evidence before the board in the matter, including all of the board's files therein.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4; 1997, No. 973, § 6; 1999, No. 1477, § 1; 2003, No. 1174, § 1; 2011, No. 218, § 1.

Amendments. The 2011 amendment redesignated former (d)(1) as present (d)(1)(A); inserted “or the Executive Director . . . with board approval” in (d)(1)(A); and added (d)(1)(B).

17-19-210. Suspension and penalties — Review.

1. The Professional Bail Bond Company and Professional Bail Bondsman Licensing Board, should it determine that the licensee or any member of a company which is so licensed committed an act listed in subsection (b) of this section, may:
   1. Suspend the license for up to twelve (12) months;
   2. Revoke or refuse to continue any license;
   3. Impose an administrative penalty in an amount not to exceed ten thousand dollars ($10,000); or
   4. Impose both a suspension of up to twelve (12) months and an administrative penalty in an amount not to exceed ten thousand dollars ($10,000).
2. A licensee is subject to the penalties of subsection (a) of this section should it be found that the licensee:
   1. Violated any provision of or any obligation imposed by this chapter or any lawful rule or order of the board or has been convicted of a felony listed under § 17-3-102;
   2. Made a material misstatement in the application for license, in the application for renewal license, or in the financial statement which accompanies the application or renewal application for license as a professional bail bond company;
   3. Committed any fraudulent or dishonest acts or practices or demonstrated incompetency or untrustworthiness to act as a licensee;
   4. Charged or received, as premium or compensation for the making of any deposit or bail bond, any sum in excess of that permitted by law;
   5. Required as a condition of executing a bail bond that the principal agree to engage the services of a specified attorney;
   6. Signed, executed, or issued bonds with endorsements in blank, or prepared or issued fraudulent or forged bonds or power of attorney;
   7. Failed in the applicable regular course of business to account for and to pay premiums held by the licensee in a fiduciary capacity to the professional bail bond company or other person entitled thereto; or
   8. Failed to comply with the provisions of the laws of this state, or rule or order of the board for which issuance of the license could have been refused had it then existed and been known to the board.
3. The acts or conduct of a professional bail bondsman who acts within the scope of the authority delegated to him or her shall also be deemed the act or conduct of the professional bail bond company for which the professional bail bondsman is acting as agent.
4. If the board finds that one (1) or more grounds exist for the suspension or revocation of a license, the board may in its discretion request that formal charges be filed against the violator and that penalties set out in § 17-19-102 be imposed.
5. If the board finds that one (1) or more grounds exist for the suspension or revocation of a license and that the license has been suspended within the previous twenty-four (24) months, then the board shall revoke the license.
6. The board may not again issue a license under this chapter to any person or entity whose license has been revoked.
7. If the board determines that the public health, safety, or welfare imperatively requires emergency action and incorporates a finding to that effect in its order, a summary suspension of a license issued under this chapter may be ordered pending an administrative hearing before the board, which shall be promptly instituted.
8. If a professional bail bond company license is so suspended or revoked, a member of the company or officer or director of the corporation shall not be licensed or be designated in any license to exercise the powers thereof during the period of the suspension or revocation, unless the board determines upon substantial evidence that the member, officer, or director was not personally at fault and did not acquiesce in the matter on account of which the license was suspended or revoked.
9. The action of the board in issuing or refusing to issue or in suspending or revoking any license shall be subject to review by the Pulaski County Circuit Court upon filing of an action therefor within thirty (30) days after the issuance of written notice by the board of the action taken.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 4; 2011, No. 97, § 1; 2019, No. 315, §§ 1362, 1363; 2019, No. 990, § 22.

Amendments. The 2011 amendment inserted “and penalties” in the section heading; rewrote the introductory language of (a) and inserted (a)(1) through (a)(4); added the introductory language of (b) and redesignated former (a)(1) through (a)(8) as (b)(1) through (b)(8); redesignated former (b) through (h) as (c) through (i); deleted “his or her” following “demonstrated” in (b)(3); and deleted “his or her” following “condition of” in (b)(5).

The 2019 amendment by No. 315 deleted “regulation” following “rule” in (b)(1) and (b)(8).

The 2019 amendment by No. 990, in (b)(1), deleted “regulation” following “rule” and substituted “felony listed under § 17-3-102” for “felony or any offense involving moral turpitude”.

17-19-211. [Repealed.]

Publisher's Notes. This section, concerning administrative penalty, was repealed by Acts 2011, No. 97, § 2. The section was derived from Acts 1989, No. 417, § 1; 1995, No. 827, § 5; 1997, No. 973, § 7.

17-19-212. Licenses.

Each applicant for an initial bail bondsman license who satisfactorily completes the examination and meets the other qualifications and requirements prescribed by law, including the completion of a minimum of eight (8) hours of education in subjects pertaining to the authority and responsibilities of a bail bondsman and a review of the laws and rules relating thereto, shall be licensed by the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board.

History. Acts 1993, No. 499, § 1; 1997, No. 973, § 8; 1999, No. 567, § 3; 2019, No. 315, § 1364.

A.C.R.C. Notes. Acts 1993, No. 499, § 3, effective August 13, 1993, provided, in part:

“A person licensed as a professional bail bondsman prior to the effective date of this act shall not be required to meet the educational requirement in order to obtain a license but shall be required to meet the minimum continuing educational requirement for any renewal of such license.”

Amendments. The 2019 amendment substituted “rules” for “regulations”.

Subchapter 3 — Bond Requirements — Posting of Bondsmen List

Effective Dates. Acts 1989, No. 417, § 8: Mar. 8, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that the present laws on the regulation of the bail bond business and bail generally are confusing and have been applied in an inconsistent manner; that there is an urgent need for the revision of laws pertaining to bail and that this Act is immediately necessary to eliminate deficiencies found in the present law. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1993, No. 652, § 18: Mar. 24, 1993. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that current revenues supporting the operation and activities of the Arkansas Insurance Department are insufficient for efficient and productive operation of the Insurance Department in view of its myriad duties to protect the insurance-buying consumers of this State and to regulate the Arkansas activities of insurers, insurance agents and similar licensees, and professional bail bond companies. The provisions of this Act are essential to the operations of the Arkansas Insurance Department and delay in the effective date of this Act could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1000, § 30: July 2, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that the laws of this State concerning the insurance matters covered in this Omnibus Act are inadequate for the protection of the public. Further, the laws of this State as to Small Employer Health Insurance are not consistent with federal laws, particularly the Health Insurance Portability and Accountability Act of 1996 of the U.S. Congress; and the immediate passage of this Act is necessary in order to provide for the protection of the public. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in effect from and after July 2, 1997. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2013, No. 1283, § 6: Emergency clause failed to pass. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that collection of fees for bail bonds fund various necessary programs in our state; that the law is currently unclear on the collection of these fees; and that this act is necessary because the law needs to be clear on the collection of these fees so that the programs are funded properly in a timely manner. Therefore, an emergency is declared to exist, and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Acts 2019, No. 871, § 24: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2019 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2019 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2019”.

17-19-301. Premiums.

1. With the exception of other provisions of this section, the premium or compensation for giving bond or depositing money or property as bail on any bond shall be ten percent (10%), except that the amount may be rounded up to the nearest five-dollar amount.
2. The minimum compensation for giving bond or depositing money or property as bail on any bond shall be not less than fifty dollars ($50.00).
3. If a bail bond or appearance bond issued by a licensee under this chapter must be replaced with another bail bond or appearance bond because of the licensee's violation of any provision of the laws of this state or any rule or order of the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board, the licensee who violated the provision and who caused the replacement to be required shall pay all the premium amount for the replacement bond, in an amount not to exceed the amount of the original bond, without any contribution from the respective defendant or principal.
4. 1. 1. In addition to the ten-percent bail or appearance bond premium or compensation allowed in subsection (a) of this section, and starting on July 1, 2013, each licensed professional bail bond company, sheriff, or keeper of the jail shall charge and collect as a nonrefundable administrative and regulatory fee for the board an additional ten dollars ($10.00) per bond fee for giving bond for every bail and appearance bond issued by the licensed professional bail bond company by or through its individual licensees, sheriffs, or keepers of the jail.
      2. The administrative and regulatory fees payable by these companies to the Bail Bondsman Board Fund for the support and operation of the board, and collected by the bail bond companies, sheriffs, or keepers of the jail as required by this section, shall be reported and filed with the board no later than fifteen (15) calendar days after the end of each calendar quarter, contemporaneous with the professional bail bond company's filing of its quarterly bail bond report with the board.
      3. A notarized annual reconciliation of all fees collected in the preceding calendar year for the Bail Bondsman Board Fund shall be filed by each licensed professional bail bond company at a time and on forms prescribed by the board.
      4. The Executive Director of the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board may grant an extension for good cause shown upon timely written request.
      5. The administrative and regulatory fees payable by the bail bond companies, sheriffs, or keepers of the jail to the Bail Bondsman Board Fund shall not exceed ten dollars ($10.00) per bond, as required by this subchapter, exclusive of statutory licensure fees elsewhere in this chapter.
      6. Upon collection of the fees and any monetary penalties, the board shall deposit as special revenues:
         1. Sufficient fees and penalties directly into the Bail Bondsman Board Fund to provide for the personal services and operating expenses of the board under subsection (g) of this section; and
         2. The remainder of all fees and penalties directly into the Domestic Peace Fund administered by the Arkansas Child Abuse/Rape/Domestic Violence Commission.
   2. 1. Absent an extension granted by the executive director for good cause to a company and in addition to any license suspension or revocation, the executive director may order after notice and a hearing a professional bail bond company failing timely to report or pay the regulatory fee to the Bail Bondsman Board Fund by and through the executive director shall be liable to the Bail Bondsman Board Fund for a monetary penalty of one hundred dollars ($100) per day for each day of delinquency.
      2. The board may pursue any appropriate legal remedies on behalf of the Bail Bondsman Board Fund to collect any delinquent fees and penalties owed under this section as special revenues to the Bail Bondsman Board Fund.
   3. Upon collection of the regulatory fees and any monetary penalties payable to the Bail Bondsman Board Fund and assessed under this section, the executive director shall deposit all fees and penalties directly into the Bail Bondsman Board Fund as special revenues.
   4. 1. Upon failure of the bail bond company to remit the fees timely, the board may pursue civil legal remedies against the noncomplying bail bond company on behalf of the Bail Bondsman Board Fund to recover the balance of the fees and any penalties owed.
      2. 1. The board may also fine or suspend or revoke the license of any professional bail bond company failing to make a quarterly report or remit or pay timely the fees required by this section.
         2. The board may promulgate rules for enforcement.
   5. 1. Other than sole proprietors licensed as professional bail bond companies, individual bail bondsmen are exempt from the duty of payment of the administrative and regulatory fees to the Bail Bondsman Board Fund, except that the individual licenses of individual employees of the professional bail bond company may be suspended or revoked by the board under the administrative procedures provided in this chapter if the individual licensee fails to comply with his or her duties in proper collection of the bail bond premiums earmarked for later payment to the Bail Bondsman Board Fund under this subsection, if he or she converts the moneys to his or her own use, or if he or she commits other infractions in regard to collection of such premium amounts.
      2. In those instances, the violations of the individual may in the board's discretion be attributed to the employing professional bail bond company for good cause shown, and the license of the employing professional bail bond company may be sanctioned by the executive director under the administrative procedures provided in this chapter.
      3. Further, upon criminal conviction of the individual bondsman for theft of property in connection with fraudulent conversion of those premium amounts due the Bail Bondsman Board Fund, the board shall revoke the individual's license and fine or suspend or revoke the license of the employing professional bail bond company if it assisted the individual in such fraudulent conduct.
   6. 1. For purposes of § 17-19-205 requiring the professional bail bond company's deposit of a letter of credit or certificate of deposit for the faithful performance of its duties, the company's payment of the administrative and regulatory fee required by this subsection is the duty of the licensee so as to allow the executive director to make a claim against the security deposit required in § 17-19-205 on behalf of the Bail Bondsman Board Fund for the balance of any owed and unpaid administrative and regulatory fees the professional bail bond company still owes to the Bail Bondsman Board Fund, and the executive director shall promptly make claims against security deposits on behalf of the Bail Bondsman Board Fund, up to the limit of the company's deposit for any remaining fee balance due, in the manner provided in this subchapter for any claim against the deposit required in this subchapter.
      2. Deposits held for the Bail Bondsman Board Fund, or fees or any moneys deposited into the Bail Bondsman Board Fund are not subject to any levy or assessment of any kind, including forfeiture claims, misconduct claims, or general creditor claims of the bail bond company, subject to garnishment or other creditors' remedies under Title 16 of this Code or other provisions of Arkansas law.
5. 1. In addition to the premiums, compensation, and fees allowed in subsections (a) and (d) of this section, each sheriff, keeper of the jail, or bail bond company shall charge and collect twenty dollars ($20.00) as a nonrefundable fee for the Arkansas Public Defender Commission.
   2. All fees collected shall be forwarded to the board for deposit into the Public Defender User Fee Fund.
   3. 1. The Arkansas Public Defender Commission shall deposit the money collected into the existing account within the State Central Services Fund entitled “Public Defender User Fees”.
      2. 1. Three dollars ($3.00) of each fee collected under this section shall be remitted to each county in the state to defray the operating expenses of each county's public defender office.
         2. The Arkansas Public Defender Commission shall remit quarterly to each county treasurer the county's portion of the fee collected under this section using the formula for the County Aid Fund under § 19-5-602.
   4. The fees collected by the bail bond companies required under this subsection shall be reported and filed with the Arkansas Public Defender Commission quarterly.
   5. A notarized annual reconciliation of all fees collected in the preceding calendar year shall be filed by each bail bond company by February 15 on forms provided by the board.
   6. In addition to the bail or appearance bond premium or compensation allowed under this section and § 17-19-111, each licensed professional bail bond company, sheriff, or keeper of the jail shall charge and collect a processing fee of five dollars ($5.00) on each bail bond in order to defray the surety's costs incurred by the quarterly and annual reports to the Arkansas Public Defender Commission and to further defray the surety's costs incurred in the collection of all fees on behalf of the Arkansas Public Defender Commission.
   7. The board may pursue any appropriate legal remedy for the collection of any delinquent fees owed under this subsection.
   8. Upon collection of any fees and penalties, the board shall forward all fees and penalties to the Arkansas Public Defender Commission for deposit into the Public Defender User Fees Fund account within the State Central Services Fund.
6. 1. In addition to the premiums, compensation, and fees allowed under this chapter, each professional bail bond company, sheriff, keeper of the jail, or person authorized to take bail under § 16-84-102 shall charge and collect as a nonrefundable administrative bail bond fee for the Arkansas Counties Alcohol and Drug Abuse and Crime Prevention Program Fund an additional fee of six dollars ($6.00) per bail bond for giving bond for every bail bond issued by the professional bail bond company by or through its individual licensees, sheriffs, keepers of the jail, or any persons authorized to take bail under § 16-84-102.
   2. The fees and penalties collected under this subsection by a professional bail bond company, sheriff, keeper of the jail, or a person authorized to take bail under § 16-84-102 shall be forwarded to the board for deposit into the Arkansas Counties Alcohol and Drug Abuse and Crime Prevention Program Fund.
   3. The board shall deposit the money collected into the existing account within the Arkansas Counties Alcohol and Drug Abuse and Crime Prevention Program Fund to be used for the establishment and operation of alcohol abuse programs, drug abuse programs, crime prevention programs, and other related purposes in the counties.
   4. The fees required under this subsection and collected by the bail bond companies, sheriffs, keepers of the jail, or persons authorized to take bail under § 16-84-102 shall be reported quarterly and filed with the board.
   5. 1. Within fifteen (15) days after receiving the quarterly fees from the bail bond companies, sheriffs, keepers of the jail, or persons authorized to take bail under § 16-84-102, the board shall remit the fees collected under this subsection to the Arkansas Sheriffs' Association.
      2. The Arkansas Sheriffs' Association is the official organization of sheriffs in this state and is organized and exists under the Arkansas Nonprofit Corporation Act, §§ 4-28-201 — 4-28-206 and §§ 4-28-209 — 4-28-224.
   6. A notarized annual reconciliation of all fees collected in the preceding calendar year shall be filed on forms provided by the board by each professional bail bond company, sheriff, keeper of the jail, or person authorized to take bail under § 16-84-102 by February 15.
   7. The Department of Finance and Administration may pursue any appropriate legal remedy for the collection of delinquent fees and penalties owed under this subsection against an entity that has a duty to collect the fee under this subsection.
   8. The board shall promulgate rules to suspend, revoke, or take disciplinary action for noncompliance in failure to remit or pay fees under this section or in failure to report under this section.
7. 1. 1. In addition to the premiums and fees allowed under this chapter, each professional bail bond company, sheriff, keeper of the jail, or person authorized to take bail under § 16-84-102 shall charge and collect an additional fee of four dollars ($4.00) per bail bond for every bail bond issued by the professional bail bond company by or through its individual licensees, sheriffs, keepers of the jail, or any persons authorized to take bail under § 16-84-102.
      2. The administrative bail bond fee is nonrefundable and shall be deposited into the Bail Bond Recovery Fund.
   2. The fees and penalties collected under this subsection by the professional bail bond company, sheriff, keeper of the jail, or a person authorized to take bail under § 16-84-102 shall be forwarded to the board for deposit into the Bail Bond Recovery Fund.
   3. 1. The board shall deposit the money collected into the existing account within the Bail Bond Recovery Fund.
      2. Use of the funds from the Bail Bond Recovery Fund shall be for professional bail bond forfeitures.
   4. The fees collected by the bail bond company, sheriff, keeper of the jail, or a person authorized to take bail under § 16-84-102 required under this subsection shall be reported quarterly and filed with the board.
   5. A notarized annual reconciliation of all fees collected in the preceding calendar year shall be filed on forms provided by the board by each professional bail bond company, sheriff, keeper of the jail, or person authorized to take bail under § 16-84-102 by February 15.
   6. The board may pursue any appropriate legal remedy for the collection of delinquent fees and penalties owed under this subsection against an entity that has a duty under this subsection to collect the fee.
   7. The board shall promulgate rules to suspend, revoke, or take disciplinary action for noncompliance in failure to remit or pay fees under this section or for failure to report under this section.
8. A sheriff, keeper of the jail, and any bail bond company shall collect fees as required under §§ 14-52-111, 17-19-111, 17-19-301, and 21-6-307 and other fees as required by law.
9. 1. Unless specified otherwise under subsection (e) of this section, the moneys collected by each bail bond company under subsection (e) of this section shall be deposited into the State Treasury to the credit of the Public Defender User Fees Fund within the State Central Services Fund.
   2. 1. Of the fee collected by each licensed professional bail bond company, three dollars ($3.00) shall be transferred to the various counties for the sole purpose of defraying the operating expenses of the local public defender's office.
      2. The remaining moneys collected shall be used to defray operating expenses of the Arkansas Public Defender Commission.
   3. On a quarterly basis, the Arkansas Public Defender Commission shall remit to each county its portion of the three dollars ($3.00) per bail bond fee collected based upon the following formula:
      1. Seventy five percent (75%) of the bail bond fee collected shall be distributed equally to all seventy-five (75) counties; and
      2. The remaining twenty-five percent (25%) of the bail bond fee collected shall be distributed per capita.

History. Acts 1989, No. 417, § 1; 1993, No. 652, § 6; 1995, No. 827, § 6; 1997, No. 1000, §§ 12-14; 2003, No. 1778, § 1; 2005, No. 1956, § 1; 2007, No. 190, § 1; 2007, No. 730, §§ 2, 3; 2013, No. 1283, §§ 2, 3; 2019, No. 315, § 1365; 2019, No. 871, § 18.

A.C.R.C. Notes. Acts 2018, No. 87, § 10, provided: “FEE GENERATION AND SUPPORT — BAIL BOND FEES. Unless specified otherwise in Arkansas Code § 17-19-301(e) the monies collected by each bail bond company under the authority of § 17-19-301(e) shall be deposited into the State Treasury to the credit of the Public Defender User Fees Fund within the State Central Services Fund.

“Of the fee collected by each licensed professional bail bond company, three dollars ($3.00) shall be transferred to the various Counties for the sole purpose of defraying the operating expenses of the local public defenders’ office. The remaining monies collected shall be used to defray operating expenses of the Commission.

“On a quarterly basis, from the Bail Bond-County Public Defender line item, the Commission shall remit to each County its portion of the three dollars ($3.00) per bail bond fee collected based upon the formula used for state aid for counties. This formula is as follows: 75% of the money is distributed equally to all 75 Counties and the remaining 25% is distributed per capita.

“The provisions of this section shall be in effect only from July 1, 2018 through June 30, 2019.”

Amendments. The 2005 amendment substituted “twenty dollars ($20.00)” for “ten dollars ($10.00)”in (e)(1); and added (e)(7) and (e)(8).

The 2007 amendment by No. 190, in (e), deleted “beginning July 1, 2003” following “this section” in (1), added (3)(B), and made a stylistic change.

The 2007 amendment by No. 730 substituted “fifty dollars ($50.00)” for “thirty-five dollars “($35.00)” in (b); and substituted “five dollars ($5.00)” for “three dollars ($3.00)” in (e)(6).

The 2013 amendment rewrote (d) and (e); and added (f) through (h).

The 2019 amendment by No. 315 deleted “regulation” following “rule” in (c).

The 2019 amendment by No. 871 added (i).

17-19-302. Collateral — Receipt required.

When a licensee accepts collateral, he or she shall give a prenumbered written receipt for it, and this receipt shall give in detail a full account of the collateral received. The licensee may perfect his or her lien on the collateral by any procedure available under the Uniform Commercial Code, § 4-1-101 et seq., or any other procedure provided for by law.

History. Acts 1989, No. 417, § 1; 1997, No. 973, § 9.

17-19-303. Bail bonds — Numbers — Report.

1. Bail bonds shall be written on numbered forms.
2. The Professional Bail Bond Company and Professional Bail Bondsman Licensing Board shall assign numbers for forms to professional bail bond companies and shall prescribe the method of affixing the numbers to the forms.
3. 1. Each professional bail bond company shall file a bail bond report quarterly with the board.
   2. The report shall include the following information on each bail bond:
      1. The assigned number of the bond and current status of the bond, whether pending disposition or exonerated;
      2. To whom the bond was written;
      3. The date the bail bond was written;
      4. The defendant and the charges against the defendant;
      5. The court;
      6. The amount of the bail bond; and
      7. The portion of the bail bond that is secured and the unsecured portion.

History. Acts 1989, No. 417, § 1; 1995, No. 827, § 7.

17-19-304. [Repealed.]

Publisher's Notes. This section, concerning maximum amount of unsecured bond, was repealed by Acts 2011, No. 343, § 1. The section was derived from Acts 1989, No. 417, § 1; 1993, No. 1278, § 1; 1995, No. 827, § 7.

17-19-305. Appearance bond.

Upon issuance of the license, a professional bail bondsman shall not issue an appearance bond exceeding the monetary amount for each recognizance which is specified in and authorized by the power of attorney filed with the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board until the board receives a duly executed power of attorney from the professional bail bond company evidencing or authorizing increased monetary limits or amounts for the recognizance.

History. Acts 1989, No. 417, § 1.

17-19-306. Posting of bondsmen list.

1. 1. The chief law enforcement officers of any facilities having individuals or prisoners in their custody shall post in plain view in the facility housing those individuals or prisoners a list of registered bonding companies.
   2. The list shall be prepared by the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board and shall contain the names of the professional bail bond companies that are registered with the board for the purpose of being included on the list.
   3. This registration is for the purpose of being on the phone list in each county only.
   4. 1. Once a professional bail bond company has registered to be on the phone list, it shall not be necessary for it to register each year.
      2. The company shall keep its place on the list from year to year unless the company's license has been revoked, canceled, or not renewed.
   5. The list shall be posted in each municipality of the county.
2. 1. 1. Professional bail bond companies shall be included on the list in the order in which they were initially registered with the circuit clerk pursuant to this chapter.
      2. However, a company with a revoked, canceled, or nonrenewed license shall be removed from the list.
   2. 1. On or before January 1, 2008, the circuit clerk of each county shall certify the list as it exists on the date of certification and forward the certified list to the board.
      2. After January 1, 2008, the board shall maintain the list and be responsible for registrations.
   3. 1. The order of the company names shall not change from year to year.
      2. However, a company with a revoked, canceled, or nonrenewed license shall be removed from the list.
3. The list shall be prepared by the board pursuant to the following specifications:
   1. The list shall contain three (3) columns that shall be headed as follows:
      1. Bail bond company;
      2. Local address; and
      3. Telephone number;
   2. Each column shall contain the following information:
      1. Bail Bond Company. The professional bail bond company name and code number shall be typed in the first column on the left-hand side of the page, with the home office address, city, state, zip code, and home office telephone numbers directly under the company name in the same column. No more than two (2) telephone numbers shall be listed for each company;
      2. Local Address. The second column shall contain one (1) address for each bail bond company; and
      3. Telephone Number. The third column shall contain no more than two (2) telephone numbers per company, to be typed directly across the page from the local address, which appears in the second column; and
   3. A solid line shall be placed between the end of the listing of one company and the beginning of the listing of the next company so that each company is clearly identified.
4. The list shall be prepared by the board in the format of the following example:

EXAMPLE LOCAL BAIL BOND COMPANY ADDRESS TELEPHONE # 1. Company Name # AZ 555-0000 Home Office Address 1-800-666-0000 City, State, Zip Home Office Phone Number(s) (2) 2. Company Name # ZA Home Office Address City, State, Zip Home Office Phone Number(s) (2) 3. Company Name # DX Home Office Address City, State, Zip Home Office Phone Number(s) (2)

Click to view table.

History. Acts 1989, No. 417, § 1; 1993, No. 402, § 1; 2001, No. 1139, § 1; 2007, No. 674, § 2.

Amendments. The 2007 amendment rewrote (a) through (c), and in (d), substituted “list shall be prepared by the board” for “list prepared by the circuit clerk shall be”.

Subchapter 4 — Continuing Education Program

A.C.R.C. Notes. Acts 1993, No. 499, § 3, effective August 13, 1993, provided, in part that a person licensed as a professional bail bondsman prior to the effective day of this act, shall not be required to meet the educational requirement in order to obtain a license but shall be required to meet the minimum continuing educational requirement for any renewal of such license.

Effective Dates. Acts 2017, No. 565, § 29: Mar. 22, 2017. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act will create more efficient regulation of private career education; and that this act is immediately necessary to provide Arkansas citizens seeking private career education the consumer protection services they need. Therefore, an emergency is declared to exist, and this act being immediately necessary for the preservation of the public peace, health, and safety shall become effective on: (1) The date of its approval by the Governor; (2) If the bill is neither approved nor vetoed by the Governor, the expiration of the period of time during which the Governor may veto the bill; or (3) If the bill is vetoed by the Governor and the veto is overridden, the date the last house overrides the veto.”

17-19-401. Requirements.

1. Each person licensed as a professional bail bondsman shall annually complete not less than six (6) hours of continuing education in subjects relating to the authority and responsibilities of a bail bondsman as a condition of renewing his or her license.
2. The continuing education shall not include written or oral examinations.

History. Acts 1993, No. 499, § 2; 1999, No. 567, § 4; 2005, No. 1935, § 1.

Amendments. The 2005 amendment substituted “six (6)” for “eight (8)” in (a).

17-19-402. Establishment of program — Schedule of fees.

1. 1. The Professional Bail Bond Company and Professional Bail Bondsman Licensing Board on an annual basis shall solicit proposals from education providers.
   2. Upon review of the proposals, the board shall designate an entity or entities to establish an educational program for professional bail bondsmen that will enable bail bondsmen to meet the prelicense and continuing education requirements of § 17-19-212 and this subchapter.
2. The board shall establish a schedule of set fees to be paid by each bail bondsman for the educational training.

History. Acts 1993, No. 499, § 4; 1997, No. 909, § 1; 2009, No. 491, § 1; 2011, No. 36, § 1; 2017, No. 565, § 22; 2017, No. 917, § 1.

A.C.R.C. Notes. Pursuant to § 1-2-207, this section is set out above as amended by Acts 2017, No. 917, § 1. Subdivision (a)(1) of this section was also amended by Acts 2017, No. 565, § 22, effective March 22, 2017, to read as follows:

“(a)(1) The Arkansas Professional Bail Association on an annual basis shall solicit proposals from education provider applicants that are approved by the Department of Higher Education as education providers, and the Arkansas Professional Bail Association will submit the approved providers to the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board for final approval.”

Amendments. The 2009 amendment, in (a), substituted “education provider applicants which are approved by the State Board of Private Career Education as education providers” for “interested parties,” substituted “prelicense” for “education,” and made minor stylistic changes.

The 2011 amendment subdivided (a) into (a)(1) and (a)(2); rewrote (a)(1); added “Upon review of the proposals, the association” in (a)(2); substituted “association” for “board” in (b)(1); and substituted “submitted by the association shall be subject to approval of the board” for “shall be subject to approval of the board” in (b)(2).

The 2017 amendment by No. 565 substituted “Department of Higher Education” for “State Board of Private Career Education” in (a)(1).

The 2017 amendment by No. 917, in (a)(1), substituted “Professional Bail Bond Company and Professional Bail Bondsman Licensing Board” for “Arkansas Professional Bail Association” and “providers” for “provider applicants that are approved by the State Board of Private Career Education as education providers, and the Arkansas Professional Bail Association will submit the approved providers to the Professional Bail Bond Company and Professional Bail Bondsman Licensing Board for final approval”; substituted “board” for “association” in (a)(2); redesignated former (b)(1) as (b) and deleted (b)(2); and, in (b), substituted “board” for “association or its designee” and inserted “set”.

17-19-403. [Repealed.]

Publisher's Notes. This section, concerning review and approval fee, was repealed by Acts 1997, No. 909, § 2. The section was derived from Acts 1993, No. 499, § 5.

Subchapter 1 — Barber Law — General Provisions

Effective Dates. Acts 1937, No. 313, § 25: Mar. 25, 1937. Emergency clause provided: “It is hereby ascertained and declared that the barbering profession in this state is utterly without regulation, that public health and general well-being demands that this profession be regulated both as to those who form a part of the profession and as to the sanitary conditions under which they labor. It is further declared that 41 states of the Union now have uniform barber laws and that those who cannot comply with the health and sanitary features of said laws have migrated to the State of Arkansas and are following the profession in this state to the detriment of the general public, and because of all of these conditions, which exist, the immediate operation of this act is essential. An emergency is, therefore, declared to exist and it being necessary for the immediate preservation of the public peace, health and safety, this act shall take effect and be in full force from and after the date of its passage and approval.”

17-20-101. Title.

This chapter shall be known and may be cited as the “Arkansas Barber Law”.

History. Acts 1937, No. 313, § 24; Pope's Dig., § 12091; A.S.A. 1947, § 71-522; Acts 2017, No. 1060, § 1.

Amendments. The 2017 amendment substituted “This chapter” for “Sections 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310”.

17-20-102. Definitions.

1. As used in this chapter, unless the context otherwise requires, “barbering” means any one (1) or any combination of the following practices when performed for cosmetic purposes and done for the public generally for pay, either directly or indirectly in any location defined as a barber shop:
   1. Shaving or trimming the beard;
   2. Cutting hair;
   3. Giving facial and scalp massage or application of oils, creams, lotions, or other preparations, either by hand or mechanical appliances;
   4. Singeing, shampooing, or applying chemicals; and
   5. Applying cosmetic preparations, antiseptics, powders, oils, clays, or lotions to the scalp, face, or neck.
2. Use of the traditional symbol known as the “barber pole”, which is composed of a vertical cylinder or pole with a ball on top, with alternating stripes of any combination including red and white, and red, white, and blue, which run diagonally along the length of the cylinder or pole, or any likeness thereof, with the intent to mislead the public in any manner that would make the public believe that barbering was being practiced in or that a licensed barber was employed in an establishment that does not employ barbers is prohibited.
3. Such practices when done for the treatment of physical or mental ailments or diseases shall not constitute barbering.

History. Acts 1937, No. 313, § 2; Pope's Dig., § 12070; A.S.A. 1947, § 71-502; Acts 1989, No. 388, § 1; 1993, No. 1056, § 1; 2017, No. 1060, § 2.

Amendments. The 2017 amendment, in the introductory language of (a), deleted “upon the head, face, and neck” following “performed” and added “in any location defined as a barber shop”; and added “is prohibited” at the end of (a)(6) [now (b)].

17-20-103. Exemptions — Construction.

1. The following persons, firms, or corporations are exempt from the provisions under this chapter while in the proper discharge of their professional duties:
   1. Persons licensed by the laws of this state to practice the healing arts;
   2. Commissioned medical or surgical officers of the United States Army, United States Navy, or United States Commissioned Corps of the Public Health Service;
   3. Persons licensed or registered by the Arkansas State Board of Nursing;
   4. Undertakers and morticians; and
   5. Jails, prisons, or penitentiaries.
2. Nothing contained in this chapter shall be construed so as to conflict in any manner with the laws regulating the vocation of cosmetic therapy or beauty culture.

History. Acts 1937, No. 313, § 21; Pope's Dig., § 12089; Acts 1951, No. 127, § 9; A.S.A. 1947, § 71-521; Acts 2017, No. 1060, § 3.

Amendments. The 2017 amendment substituted “under this chapter” for “of §§ 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310” in the introductory language of (a); in (a)(2), inserted “United States” preceding “Navy” and substituted “United States Commissioned Corps of the Public Health Service” for “Marine Hospital Service or United States Public Health Service Commissioned Corps”; added (a)(5); and substituted ”this chapter” for “§§ 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310” in (b).

Cross References. Cosmetology, § 17-26-101 et seq.

17-20-104. Penalties.

1. Any person, firm, or corporation desiring to operate as a barber, barbershop, barber corporation, or barber school or college which fails to file an application for certificate of registration shall be deemed guilty of a misdemeanor.
2. Any person, firm, or corporation which shall operate as a barber, barbershop, barber corporation, or barber school or college without a certificate of registration duly and legally issued by the State Board of Barber Examiners shall be deemed guilty of a misdemeanor, punishable upon conviction by a fine of not less than twenty-five dollars ($25.00) nor more than one hundred dollars ($100).
3. The willful making of any false statement to a material matter in any oath or affidavit which is required under this chapter shall be perjury and punishable as such.
4. Each day of unlawful practice as described in this section shall constitute a separate offense.
5. It shall be the duty of all prosecuting attorneys of the state and all political subdivisions of the state to enforce the provisions of this chapter and prosecute persons violating them.

History. Acts 1937, No. 313, § 14; Pope's Dig., § 12082; Acts 1951, No. 127, § 7; A.S.A. 1947, § 71-514; Acts 1993, No. 1056, § 2; 2017, No. 1060, § 4.

Amendments. The 2017 amendment substituted “under this chapter” for “by the provisions of §§ 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310” in (c).

Subchapter 2 — Barber Law — State Board of Barber Examiners

Effective Dates. Acts 1937, No. 313, § 25: Mar. 25, 1937. Emergency clause provided: “It is hereby ascertained and declared that the barbering profession in this state is utterly without regulation, that public health and general well-being demands that this profession be regulated both as to those who form a part of the profession and as to the sanitary conditions under which they labor. It is further declared that 41 states of the Union now have uniform barber laws and that those who cannot comply with the health and sanitary features of said laws have migrated to the State of Arkansas and are following the profession in this state to the detriment of the general public, and because of all of these conditions, which exist, the immediate operation of this act is essential. An emergency is, therefore, declared to exist and it being necessary for the immediate preservation of the public peace, health and safety, this act shall take effect and be in full force from and after the date of its passage and approval.”

Acts 1947, No. 125, § 4: Feb. 26, 1947. Emergency clause provided: “It is hereby ascertained and declared that additional regulation is required in the barbering profession for the general well-being of said profession. Therefore, an emergency is declared to exist, and it being necessary for the immediate preservation of the public peace, health and safety, this act shall take effect and be in full force from and after the date of its passage and approval.”

Acts 1967, No. 240, § 3: Mar. 8, 1967. Emergency clause provided: “It is hereby found and determined by the General Assembly that the maximum compensation provided by law for the secretary of the State Board of Barber Examiners is entirely inadequate to compensate the secretary for his services and that the per diem allowance prescribed by law for the members of the State Board of Barber Examiners is sorely inadequate to compensate said board members and that this act is immediately necessary to correct this inequitable situation. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in effect from the date of its passage and approval.”

Acts 1971, No. 126, § 3: Feb. 19, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that the maximum compensation provided by law for the secretary of the State Board of Barber Examiners is entirely inadequate to compensate the secretary for his services, that the per diem allowance prescribed by law for the members of the State Board of Barber Examiners is sorely inadequate to compensate said board members, and that this act is immediately necessary to correct this inequitable situation. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in effect from the date of its passage and approval.”

Acts 1975, No. 538, § 6: Mar. 21, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the license fees now prescribed by law to be collected by the Barber Examiners Board do not provide adequate funds to support the operation of the board and to enable it to properly carry out its functions and duties; that the present law relating to the reimbursement of the board and its employees for expenses incurred in the performance of their duties severely limits the amounts of such expense reimbursement; that this act is designed to increase the license fees to be collected by the Barber Examiners Board to provide the necessary revenues to finance the operation of the board and to provide for reimbursement of the board and employees for expenses incurred in the performance of their duties in the same maximum amounts as prescribed in state travel regulations for other public employees; and that this act should be given effect immediately to accomplish this purpose. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1977, No. 524, § 4: July 1, 1977.

Acts 1981, No. 717, § 3: Mar. 25, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that regulatory boards and commissions covered by Acts 1977, No. 113 exist for the singular purpose of protecting the public health and welfare; that it is necessary and proper that the public be represented on such boards and commissions; that the operations of such boards and commissions have a profound effect on the daily lives of all Arkansans; and that the public's voice should not be muted on any question coming before such public bodies. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health, and safety shall be in full force and effect from and after its passage and approval.”

Identical Acts 1983, No. 131, § 6, and No. 135, § 6: Feb. 10, 1983. Emergency clauses provided: “It is hereby found and determined by the General Assembly that state boards and commissions exist for the singular purpose of protecting the public health and welfare; that citizens over 60 years of age represent a significant percentage of the population; that it is necessary and proper that the older population be represented on such boards and commissions; that the operations of the boards and commissions have a profound effect on the daily lives of older Arkansans; and that the public voice of older citizens should not be muted as to questions coming before such bodies. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 563, § 10: Apr. 2, 1987. Emergency clause provided: “It is hereby found and determined that the provisions of this amendment will promote proper regulation and enforcement of the State Board of Barber Examiners' laws and that timely approval is necessary to correct an inequitable situation. Therefore, an emergency is hereby declared to exist and this amendment being necessary for the immediate preservation of the public peace, health and safety shall be in effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

17-20-201. Creation — Members.

1. 1. There is created a State Board of Barber Examiners, consisting of the Secretary of the Department of Labor and Licensing, or his or her designee, who shall be an ex officio member of the board, and five (5) members to be appointed by the Governor for a term of six (6) years.
   2. Three (3) of the members so appointed shall be practicing barbers who have followed the occupation of barbering in this state for at least five (5) years immediately before their appointment.
   3. One (1) member appointed by the Governor will be a public member to represent the consumer, and one (1) member appointed by the Governor to represent persons sixty-five (65) years of age and older. The two (2) members appointed under this subdivision (a)(3) shall not be actively engaged in or retired from the barbering profession. The two (2) positions may not be held by the same person. Both shall be full voting members but shall not participate in the grading of examinations.
   4. The five (5) members shall be appointed in such manner that two (2) of them shall reside in the geographical area north of I-40, two (2) shall reside in the geographical area south of I-40, and one (1) shall be appointed from the state at large.
2. 1. Each member shall hold office until a successor is appointed and qualified.
   2. The Governor shall have the power to remove any member for gross incompetency, gross immorality, disability, any abuse of his or her official power, or other good cause and shall fill any vacancy thus occasioned by appointment within thirty (30) days after the vacancy occurs.
   3. Members appointed to fill vacancies caused by death, resignation, or removal shall serve only for the unexpired term of their predecessors.
3. Each member of the board may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.

History. Acts 1937, No. 313, §§ 15, 19; Pope's Dig., §§ 12083, 12087; Acts 1947, No. 125, § 3; 1951, No. 127, § 8; 1957, No. 278, § 2; 1961, No. 207, § 1; 1963, No. 102, § 1; 1967, No. 240, § 1; 1971, No. 126, § 1; 1975, No. 538, § 5; 1977, No. 113, §§ 1-3; 1981, No. 717, § 2; 1983, No. 131, §§ 1-3, 5; 1983, No. 135, §§ 1-3, 5; 1985, No. 133, § 2; A.S.A. 1947, §§ 6-617 — 6-619, 6-623 — 6-626, 71-515, 71-519; Acts 1989, No. 388, § 2; 1997, No. 250, § 127; 2017, No. 1060, § 5; 2019, No. 910, § 5410.

Publisher's Notes. The terms of the members of the State Board of Barber Examiners, other than the representatives of consumers and the elderly, are arranged so that one term expires every two years.

Acts 1961, No. 207, § 2, provided that it was the purpose and intent of that act to clarify the membership of the Secretary of the State Board of Health on the State Board of Barber Examiners and that nothing in that act should be construed to affect, alter, or change the membership of the existing Board of Barber Examiners.

Acts 1981, No. 717, § 1, provided that the purpose of the act was to provide full voting authority to consumer representatives on state boards and commissions affected by Acts 1977, No. 113.

Amendments. The 2017 amendment repealed former (a)(5).

The 2019 amendment substituted “Department of Labor and Licensing, or his or her designee” for “State Board of Health” in (a)(1).

17-20-202. Officers and proceedings.

1. The State Board of Barber Examiners shall organize by electing a chair from its own membership.
2. A majority of the board shall constitute a quorum and may perform and exercise all the duties and powers devolving upon it.
3. The board may be furnished suitable quarters for the conduct of its business and shall adopt and use a common seal for the authentication of its orders and records.

History. Acts 1937, No. 313, §§ 15, 16; Pope's Dig., § 12084; Acts 1961, No. 207, § 1; A.S.A. 1947, §§ 71-515, 71-516.

Publisher's Notes. As to the purpose and construction of Acts 1961, No. 207, see Publisher's Notes to § 17-20-201.

17-20-203. Director of the State Board of Barber Examiners.

1. 1. The State Board of Barber Examiners in consultation with the Secretary of the Department of Labor and Licensing may employ a Director of the State Board of Barber Examiners, who shall not be a member of the board and who shall have the responsibility of keeping:
      1. A record of the board's proceedings;
      2. A record of persons registered as barbers showing the name, place of business, and residence of each and the date and number of his or her certificate;
      3. A record of all certificates issued, refused, renewed, suspended, or revoked; and
      4. Such other records as may be directed by the board or required by law.
   2. The records shall be open to public inspection at all reasonable times.
2. The director shall perform such other functions and duties as may be prescribed by law or directed by the secretary.
3. The director shall receive such compensation for his or her services as may be prescribed by the secretary within the limitations of the biennial appropriation therefor made by the General Assembly.

History. Acts 1937, No. 313, §§ 16, 17; Pope's Dig., §§ 12084, 12085; Acts 1977, No. 524, § 1; A.S.A. 1947, §§ 71-516, 71-516.2, 71-517; Acts 2017, No. 1060, § 6; 2019, No. 910, § 5411.

Publisher's Notes. Acts 1977, No. 524, § 3, provided that it was the purpose of the act that the board should employ an executive secretary and that no member of the board should thereafter be employed by the board as secretary or in any other position.

Amendments. The 2017 amendment repealed former (d).

The 2019 amendment rewrote the section heading; substituted “in consultation with the Secretary of the Department of Labor and Licensing may employ a Director of the State Board of Barber Examiners” for “is authorized to employ an executive secretary” in the introductory language of (a)(1); deleted “and apprentices” following “barbers” in (a)(1)(B); in (b), substituted “director” for “executive secretary” and “secretary” for “board”; and, in (c), substituted “director” for “Executive Secretary of the State Board of Barber Examiners” and “secretary” for “board”.

17-20-204. Personnel.

The State Board of Barber Examiners is authorized to employ such other personnel as it deems necessary, and as is approved by the Secretary of the Department of Labor and Licensing, to carry out the provisions of this chapter, within such limits as may be provided by biennial appropriation of the General Assembly. All employees shall work under the direct supervision of the Director of the State Board of Barber Examiners.

History. Acts 1937, No. 313, § 19; Pope's Dig., § 12087; Acts 1947, No. 125, § 3; 1951, No. 127, § 8; 1957, No. 278, § 2; 1963, No. 102, § 1; 1967, No. 240, § 1; 1971, No. 126, § 1; 1975, No. 538, § 5; A.S.A. 1947, § 71-519; Acts 2017, No. 1060, § 7; 2019, No. 910, § 5412.

Amendments. The 2017 amendment substituted “this chapter” for “§§ 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310” and “Executive Secretary of the State Board of Barber Examiners” for “board” at the end.

The 2019 amendment inserted “and as is approved by the Secretary of the Department of Labor and Licensing” in the first sentence and substituted “Director of the State Board of Barber Examiners” for “Executive Secretary of the State Board of Barber Examiners” in the second sentence.

17-20-205. Meetings.

The State Board of Barber Examiners shall hold a meeting at least quarterly at a place where, in the discretion of the board, there are a sufficient number of applicants to warrant holding an examination outside of Little Rock for the purpose of:

1. Passing upon barbers' applications;
2. Conducting an examination to determine an applicant's ability to receive a license and issuing or refusing to issue a license thereon; and
3. Transacting any other business which may properly come before it.

History. Acts 1937, No. 313, § 6; Pope's Dig., § 12074; A.S.A. 1947, § 71-506; Acts 1989, No. 388, § 3; 2017, No. 1060, § 8.

Amendments. The 2017 amendment substituted “at least quarterly at a place where” for “in Little Rock once every month, or at such other places where” in the introductory language.

17-20-206. Rules — Inspections.

1. The State Board of Barber Examiners shall have authority to make and promulgate reasonable rules for the administration of this chapter.
2. The State Board of Barber Examiners shall prescribe sanitary requirements for barbershops and barber schools, subject to the approval of the State Board of Health.
3. Any member of the State Board of Barber Examiners or its inspectors shall have authority to enter upon and to inspect any barbershop or barber school at any time during business hours.
4. A copy of the rules and sanitary requirements adopted by the State Board of Barber Examiners shall be furnished by the State Board of Barber Examiners to the owner or manager of each barbershop and barber school, and a copy shall be posted in a conspicuous place in the barbershop or barber school.

History. Acts 1937, No. 313, § 20; Pope's Dig., § 12088; A.S.A. 1947, § 71-520; Acts 2017, No. 1060, § 9.

Amendments. The 2017 amendment deleted “and regulations” following “rules” in (a) and (d); substituted “this chapter” for “the provisions of §§ 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310 and for the purpose of carrying out the intent of these subchapters” in (a); substituted “State Board of Barber Examiners” for “board” in (c) and (d); and deleted (e).

17-20-207. Annual reports.

The State Board of Barber Examiners shall annually, on or before January 1, make a report to the Governor of all its official acts during the preceding year and of its receipts and disbursements and such recommendations as it may deem expedient.

History. Acts 1937, No. 313, § 16; Pope's Dig., § 12084; Acts 1971, No. 126, § 2; A.S.A. 1947, §§ 71-516, 71-516.1; Acts 2013, No. 501, § 2.

Amendments. The 2013 amendment deleted the (a) designation; and deleted (b).

17-20-208. Fees.

1. The State Board of Barber Examiners shall by rule establish reasonable registration fees, renewal fees, examination fees, and such other fees as it deems necessary and appropriate to fulfill its duties.
2. Funds thus realized shall be expended for:
   1. The payment of the salary of the Director of the State Board of Barber Examiners;
   2. Expenses and stipends in accordance with § 25-16-901 et seq.;
   3. Salary of registered barber inspectors and stenographers;
   4. Retainer fees for attorneys;
   5. Publication of this chapter;
   6. Investigation of violations of this chapter; and
   7. Such other purposes as may be directed by the board.

History. Acts 1937, No. 313, § 10; Pope's Dig., § 12078; Acts 1947, No. 125, § 2; 1951, No. 127, § 5; 1957, No. 278, § 1; 1975, No. 538, § 1; 1981, No. 103, § 1; 1985, No. 137, § 1; A.S.A. 1947, § 71-510; Acts 1989, No. 388, § 4; 1995, No. 749, §§ 1, 4; 1997, No. 250, § 128; 2017, No. 1060, § 10; 2019, No. 910, § 5413.

Amendments. The 2017 amendment substituted ”rule” for “regulation” in (a); deleted former (b); redesignated former (c) as (b); and substituted “this chapter” for “§§ 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310” in (b)(5) and (b)(6).

The 2019 amendment substituted “Director of the State Board of Barber Examiners” for “Executive Secretary of the State Board of Barber Examiners” in (b)(1).

17-20-209. Disposition of funds.

1. 1. All moneys received by the State Board of Barber Examiners under this chapter shall be paid to the Director of the State Board of Barber Examiners, who shall give a proper receipt for those moneys to the Auditor of State the total amount received by him or her from all sources under this chapter.
   2. The director shall at the same time deposit the entire amount of such receipts with the Treasurer of State, who shall place them to the credit of a special fund to be created and known as the “State Board of Barber Examiners Fund”.
2. 1. By the Chair of the State Board of Barber Examiners and the director, the board shall from time to time certify to the Auditor of State the necessary expenses incurred by the board, including expense reimbursement and stipends as provided in § 25-16-901 et seq. The Auditor of State shall issue his or her warrant for the expenses, which shall be paid out of the funds so established for the maintenance of the board.
   2. No order shall be drawn by the Auditor of State on any fund other than the State Board of Barber Examiners Fund for any stipends or expenses of the board incident to the administration of this chapter.
3. All funds so paid to the Treasurer of State shall remain and be a separate and permanent fund for the maintenance of the board and the administration of this chapter.

History. Acts 1937, No. 313, § 18; Pope's Dig., § 12086; A.S.A. 1947, § 71-518; Acts 1987, No. 563, § 4; 1997, No. 250, § 129; 2017, No. 1060, § 11; 2019, No. 910, § 5414.

Amendments. The 2017 amendment substituted “this chapter” for “§§ 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310” throughout; in (a)(1), deleted “At the end of each month, he or she shall report” preceding “to the Auditor” and substituted “from all sources under this chapter” for “under the provisions of §§ 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310 from all sources”; and deleted (d).

The 2019 amendment substituted “Director of the State Board of Barber Examiners” for “Executive Secretary of the State Board of Barber Examiners” in (a)(1); and substituted “director” for “executive secretary” in (a)(2) and (b)(1).

Subchapter 3 — Barber Law — Registration

Effective Dates. Acts 1937, No. 313, § 25: Mar. 25, 1937. Emergency clause provided: “It is hereby ascertained and declared that the barbering profession in this state is utterly without regulation, that public health and general well-being demands that this profession be regulated both as to those who form a part of the profession and as to the sanitary conditions under which they labor. It is further declared that 41 states of the Union now have uniform barber laws and that those who cannot comply with the health and sanitary features of said laws have migrated to the State of Arkansas and are following the profession in this state to the detriment of the general public, and because of all of these conditions, which exist, the immediate operation of this act is essential. An emergency is, therefore, declared to exist and it being necessary for the immediate preservation of the public peace, health and safety, this act shall take effect and be in full force from and after the date of its passage and approval.”

Acts 1947, No. 125, § 4: Feb. 26, 1947. Emergency clause provided: “It is hereby ascertained and declared that additional regulation is required in the barbering profession for the general well-being of said profession. Therefore, an emergency is declared to exist, and it being necessary for the immediate preservation of the public peace, health and safety, this act shall take effect and be in full force from and after the date of its passage and approval.”

Acts 1987, No. 563, § 10: Apr. 2, 1987. Emergency clause provided: “It is hereby found and determined that the provisions of this amendment will promote proper regulation and enforcement of the State Board of Barber Examiners' laws and that timely approval is necessary to correct an inequitable situation. Therefore, an emergency is hereby declared to exist and this amendment being necessary for the immediate preservation of the public peace, health and safety shall be in effect from and after its passage and approval.”

17-20-301. Certificate required.

1. It shall be unlawful:
   1. For any person, firm, or corporation to conduct or operate a barbering establishment, school of barbering, barbershop, or any other place of business in which any occupation of a barber is taught or practiced until licensed under this chapter and in compliance with this chapter relating to sanitation;
   2. To act or attempt to act as a barber without a certificate of registration as a registered barber duly issued by the State Board of Barber Examiners; and
   3. For any person, firm, or corporation to operate a barbershop unless it is operated under the personal supervision and management of a registered barber.
2. A person having charge of a barbering establishment or school of barbering, whether as an owner or an employee, shall not permit any room or part of a room in which any of the branches or practices of barbering are conducted, practiced, or taught to be used for sleeping, for residential purposes, or for any other purpose that would tend to make the room unsanitary.
3. A barbering establishment shall have a direct entrance separate and distinct from any entrance in connection with private quarters.
4. 1. It shall be unlawful for a person to employ or to allow to be employed a person not licensed by the board in or about a barber establishment as a barber manager.
   2. If at any time the name, location, owner, or manager changes at any barbershop or barber school or college, the owner shall report that change by application and be subject to the fee established.
   3. If a barbering establishment no longer employs a barber, or if a barbering establishment is closed, a new application shall be filed with the board.
5. It shall be the responsibility of all barbershop owners to assure that their employees or those who work in the establishment have appropriate licenses.
6. Barber establishments that have persons licensed by the Cosmetology Technical Advisory Committee shall also have their appropriate current licenses to practice.

History. Acts 1937, No. 313, § 1; Pope's Dig., § 12069; Acts 1947, No. 125, § 1; A.S.A. 1947, § 71-501; Acts 1987, No. 563, § 6; 1989, No. 388, § 5; 2017, No. 1060, § 12.

Amendments. The 2017 amendment rewrote (a)(1); substituted “State Board of Barber Examiners” for “board” at the end of (a)(2); deleted “at all times” preceding “operated” in (a)(3); inserted present (b) through (d); redesignated former (b) as (e); inserted “or those who work in the establishment” in (e); and added (f).

17-20-302. Qualifications of applicants.

Any person shall be qualified to receive a certificate of registration to practice as a registered barber who:

1. Is qualified under this chapter;
2. Has passed a satisfactory examination conducted by the State Board of Barber Examiners to determine his or her fitness to practice barbering;
3. Is at least sixteen and one-half (16 1/2) years of age; and
4. Has received training approved by the appropriate licensing authorities.

History. Acts 1937, No. 313, §§ 4, 5; Pope's Dig., §§ 12072, 12073; Acts 1947, No. 125, § 1; 1951, No. 127, § 2; 1985, No. 133, § 1; A.S.A. 1947, §§ 71-504, 71-505; Acts 1989, No. 388, § 6; 1995, No. 749, § 2; 2017, No. 1060, § 13; 2019, No. 990, § 23.

Amendments. The 2017 amendment substituted “this chapter” for “the provisions of 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310” in (1); and deleted “and furnishes a diploma showing graduation from a grammar school or its equivalent as determined by an examination conducted by the board” at the end of (3).

The 2019 amendment deleted former (2) and redesignated the remaining subdivisions accordingly.

17-20-303. Application.

1. Any person, firm, or corporation desiring to operate as a barber, barber student, teacher manager instructor, teacher manager instructor student, barbershop, barber corporation, or barber school or college shall file an application for a certificate of registration on a form furnished by the State Board of Barber Examiners and pay the application fee.
2. Any person who desires to practice barbering in this state shall file with the Executive Secretary of the State Board of Barber Examiners a written application, duly notarized, with certification of at least one thousand five hundred (1,500) hours of barber training, together with:
   1. Two (2) identical passport-sized signed photographs;
   2. A copy of his or her record of identification;
   3. His or her Social Security number; and
   4. Proof of education of at least the eighth grade for a barber applicant or high school graduate for a teacher manager instructor.
3. A barber applying for reciprocity who has an unrevoked or unexpired license issued by the proper authorities of another state certifying that he or she has completed a minimum of one thousand five hundred (1,500) hours of training, may be issued a certificate of registration as a registered barber upon making the application as required by this chapter and upon the payment of a reciprocity fee that shall include the license fee until the beginning of the next renewal period.
4. 1. An unlicensed person applying for reciprocity who has at least one thousand five hundred (1,500) hours of barber training may be granted registration by examination upon proof of training by the state board in the state in which the person received the training and upon making application as required by law and upon payment of a reciprocity examination fee to obtain registration in this state as a registered barber.
   2. A barber applying for reciprocity who has fewer than one thousand five hundred (1,500) hours of barber training must also have been continuously engaged in the practice of barbering for at least one (1) year, in addition to providing proof of licensure and training by the state board where the applicant received training or holds a license, or complete the required number of one thousand five hundred (1,500) hours, and upon making application as required by law and upon payment of a reciprocity fee to obtain registration in this state as a registered barber.
5. 1. A person applying for reciprocity who is licensed in a foreign country as a barber is required to pass an examination administered by the State Board of Barber Examiners to qualify for a license in this state.
   2. All documents submitted for the purpose of complying with the requirements for examination shall be original copies and translated into the English language.
   3. The application shall be accompanied with a money order for the reciprocity and examination fee.
6. A person who has been continuously licensed or registered in another state to practice barbering as a teacher manager instructor who also meets the requirements under § 17-20-406 may be issued a certificate of registration as a registered barber and teacher manager instructor upon making application as required by law and upon payment of a reciprocity fee to obtain registration in this state as a registered barber, plus a teacher manager instructor reciprocity fee.

History. Acts 1937, No. 313, §§ 7, 8, 14; Pope's Dig., §§ 12075, 12076; Acts 1951, No. 127, §§ 3, 4, 7; 1981, No. 698, § 1; A.S.A. 1947, §§ 71-507, 71-508, 71-514; Acts 1987, No. 563, § 5; 1989, No. 388, § 7; 1993, No. 1056, § 3; 2017, No. 1060, § 14.

Amendments. The 2017 amendment, in (a), inserted “barber student, teacher manager instructor, teacher manager instructor student” and added “and pay the application fee”; redesignated part of former (b) as (b)(1); substituted “duly notarized, with certification of at least one thousand five hundred (1,500) hours of barber training” for “under oath” in the introductory language of (b); rewrote (b)(1) and added (b)(2) through (4); in (c), substituted “A barber applying for reciprocity” for “Any person recently coming into this state”, inserted “certifying that he or she has completed a minimum of one thousand five hundred (1,500) hours of training”, substituted “this chapter” for “law”, and substituted “reciprocity fee that shall” for “one hundred fifty dollar reciprocity fee subject to the conditions outlined in subsection (d) of this section. The reciprocity fee shall”; rewrote (d); added (e) and (f); and made stylistic changes.

17-20-304. Examinations.

1. An applicant for a certificate of registration to practice as a registered barber who fails to pass a satisfactory examination conducted by the State Board of Barber Examiners may apply for another examination at any future meeting of the board.
2. The fee for each reexamination shall be the same as the fee for original examination.
3. A person enrolled as a student in a barber school in this state shall be given credit for all time spent enrolled in the barber school, provided that his or her hours can be certified by the officials of the barber school the person attended.
4. Examinations shall include both a practical demonstration and a written and oral test and shall embrace the subjects usually taught in schools of barbering approved by the board.
5. A certificate of registered barber shall be issued by the board to any applicant who shall pass a satisfactory examination making a grade of not less than seventy-five percent (75%) in all subjects upon which he or she is examined and who shall possess the qualifications required in this chapter.

History. Acts 1937, No. 313, §§ 4-6; Pope's Dig., §§ 12072-12074; Acts 1947, No. 125, § 1; 1951, No. 127, § 2; 1985, No. 133, § 1; A.S.A. 1947, §§ 71-504 — 71-506; Acts 1989, No. 388, § 8; 2017, No. 1060, § 15.

Amendments. The 2017 amendment, in (c), substituted “A person enrolled as a student in a” for “Any person enrolled as a student in any” and “enrolled in the barber school, provided that his or her hours can be certified by the officials of the barber school the person attended” for “therein”.

17-20-305. Display of certificates.

Every holder of a certificate of registration shall display it in a conspicuous place adjacent to or near his or her work chair.

History. Acts 1937, No. 313, § 9; Pope's Dig., § 12077; A.S.A. 1947, § 71-509.

17-20-306. [Repealed.]

Publisher's Notes. This section, concerning apprentices generally, was repealed by Acts 1989, No. 388, § 12. The section was derived from Acts 1937, No. 313, § 4; Pope's Dig., § 12072; Acts 1947, No. 125, § 1; 1985, No. 133, § 1; A.S.A. 1947, § 71-504.

17-20-307. Renewal — Expiration — Restoration.

1. Every registered barber or teacher manager instructor who continues in active practice or service shall annually between July 1 and September 1 renew his or her certificate of registration or shop certificate of registration by paying the required fee.
2. Every certificate of registration which has not been renewed, as herein required, in any year shall expire on September 1 in that year.
3. 1. A registered barber or teacher manager instructor whose certificate of registration has expired may have his or her certificate or shop certificate of registration restored immediately upon payment of the required restoration fee.
   2. 1. Any registered barber or teacher manager instructor who fails to keep his or her registration certificate renewed for not more than three (3) years may renew his or her certificate of registration upon payment of the required restoration fee for each year of delinquency.
      2. If the time elapsed is more than three (3) years, he or she must take and pass the required examination and pay the examination fee as set forth by the State Board of Barber Examiners.
4. 1. A barber who holds a current license in this state shall be issued a personal lifetime license at eighty (80) years of age upon his or her request.
   2. However, the shop license of a barber under subdivision (d)(1) of this section shall be renewed yearly.

History. Acts 1937, No. 313, § 11; Pope's Dig., § 12079; Acts 1951, No. 127, § 6; 1981, No. 698, § 2; A.S.A. 1947, § 71-511; Acts 1989, No. 388, § 9; 1995, No. 749, § 3; 2017, No. 1060, § 16.

Amendments. The 2017 amendment inserted “or teacher manager instructor” and “or shop certificate of registration” in (a) and (c)(1); substituted “between July 1 and” for “on or before” in (a); substituted “has expired may” for “has been expired for sixty (60) days or less may” in (c)(1); in (c)(2)(A), deleted “who retires from the practice of barbering and” preceding “fails” and added “for each year of delinquency”; substituted “State Board of Barber Examiners” for “board” at the end of (c)(2)(B); and added (d).

17-20-308. Grounds for disciplinary action.

The State Board of Barber Examiners may refuse to issue or renew or may suspend or revoke any certificate of registration, take other appropriate disciplinary action, and impose a civil penalty as provided in § 17-20-310 for any of the following:

1. 1. Conviction of a felony listed under § 17-3-102 shown by a certified copy of the record of the court of conviction.
   2. In accordance with § 5-14-129, the board shall refuse to issue or renew a certificate of registration or shall suspend or revoke a certificate of registration for a barber who is a registered sex offender.
   3. It is unlawful for a sex offender who is required to register under the Sex Offender Registration Act of 1997, § 12-12-901 et seq., and who has been assessed as a Level 3 or Level 4 offender to knowingly engage in an occupation or participate in a volunteer position that requires the sex offender to work or interact primarily and directly with a child under sixteen (16) years of age.
   4. A violation of this section is a Class D felony;
2. Malpractice or gross incompetency;
3. Affliction of the applicant, registered barber, or registered apprentice barber with an infectious or communicable disease;
4. Advertising by means of knowingly false or deceptive statements;
5. Advertising, practicing, or attempting to practice under a trade name or name other than one's own;
6. Habitual drunkenness or habitual addiction to the use of morphine, cocaine, or other habit-forming drugs;
7. Immoral or unprofessional conduct;
8. The violation of any of the sanitary rules promulgated by either the board or the Department of Health for the regulation of barbershops and barber schools; or
9. Continuing employment in a barbershop wherein the sanitary rules of the board or the department promulgated for the regulation of barbershops or barber schools are known by the registered barber or registered apprentice to be violated.

History. Acts 1937, No. 313, § 12; Pope's Dig., § 12080; A.S.A. 1947, § 71-512; Acts 1993, No. 1056, § 4; 2017, No. 1060, § 17; 2019, No. 315, § 1366; 2019, No. 990, § 24.

Amendments. The 2017 amendment redesignated former (1) as (1)(A); and added (1)(B) through (1)(D).

The 2019 amendment by No. 315 substituted “rules” for “regulations” in (8) and (9).

The 2019 amendment by No. 990 inserted “listed under § 17-3-102” in (1)(A).

17-20-309. Denial, suspension, or revocation — Procedure.

1. No action in refusing to issue or renew or in suspending or revoking a certificate of registration for any of the causes listed in § 17-20-308 shall be taken until the accused has been furnished with a statement of the specific charges against him or her and notice of the time and place of hearing thereof.
2. The statement of charges and notice must be served personally upon the person or mailed to his or her last known address at least twenty (20) days before the hearing.
3. The accused may be present at the hearing in person or by counsel, or both.
4. Upon the hearing of any such proceeding, the State Board of Barber Examiners may administer oaths and may procure, by its subpoena, the attendance of witnesses and the production of relevant books and papers.
5. Any circuit court or any judge of a circuit court, either in term time or in vacation, upon application either of the accused or of the board or member thereof, may, by order duly entered, require the attendance of witnesses and the production of relevant books and papers before the board in any hearing relating to the refusal, suspension, or revocation of certificates of registration.
6. If upon the hearing the board finds the charges are true, it may refuse to issue or renew a certificate of registration or may revoke or suspend the certificate if it has been issued.
7. Any person aggrieved by the action of the board, as provided in this section, may appeal from the action to the Pulaski County Circuit Court and to the Supreme Court as in other cases made and provided.

History. Acts 1937, No. 313, § 13; Pope's Dig., § 12081; Acts 1957, No. 278, § 3; A.S.A. 1947, § 71-513.

Publisher's Notes. This section may be affected by the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

17-20-310. Civil penalty.

1. Whenever the State Board of Barber Examiners, after a hearing conducted in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq., determines that any person has violated any provision of this chapter or any rule promulgated by the board under this chapter, the board may impose a civil penalty on the person not to exceed two hundred fifty dollars ($250).
2. 1. If a licensed barber against whom a civil penalty has been imposed by the board fails to pay the penalty, the board may file an action in the Pulaski County Circuit Court to collect the civil penalty.
   2. If the board prevails in the action, the defendant shall be directed to pay, in addition to the civil penalty, reasonable attorney's fees and costs incurred by the board in prosecuting the action.
3. Any person aggrieved by the action of the board imposing civil penalties may appeal the decision in the manner and under the procedure prescribed in the Arkansas Administrative Procedure Act, § 25-15-201 et seq., for appeals from administrative decisions.

History. Acts 1987, No. 563, §§ 2, 3; 1993, No. 1056, § 5; 2017, No. 1060, § 18.

Amendments. The 2017 amendment, in (a), substituted “this chapter or any rule” for “the Arkansas Barber Law, §§ 17-20-101 — 17-20-104, 17-20-201 — 17-20-209, and 17-20-301 — 17-20-310 or any regulation” and “under this chapter” for “pursuant to it”.

Subchapter 4 — Barber Schools and Postsecondary Barber Schools

Publisher's Notes. The 2017 amendment by Acts 2017, No. 1060, § 19 added “and Postsecondary Barber Schools” in the subchapter heading.

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Effective Dates. Acts 1975, No. 538, § 6: Mar. 21, 1975. Emergency clause provided: “It is hereby found and determined by the General Assembly that the license fees now prescribed by law to be collected by the Barber Examiners Board do not provide adequate funds to support the operation of the board and to enable it to properly carry out its functions and duties; that the present law relating to the reimbursement of the board and its employees for expenses incurred in the performance of their duties severely limits the amounts of such expense reimbursement; that this act is designed to increase the license fees to be collected by the Barber Examiners Board to provide the necessary revenues to finance the operation of the board and to provide for reimbursement of the board and employees for expenses incurred in the performance of their duties in the same maximum amounts as prescribed in state travel regulations for other public employees; and that this act should be given effect immediately to accomplish this purpose. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 1032, § 2: Apr. 2, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1056 of 1993 repealed Arkansas Code 17-18-406(a) which provided that no person should manage or operate a barber college unless the person was an Arkansas resident for at least three years and had at least three years experience as a barber teacher in an approved barber school or college; that another section of the Arkansas Code substantially duplicated that requirement and was inadvertently not repealed by Act 1056; that as a result, confusion exists in the law; that this act clarifies the law by fulfilling the intent of Act 1056 of 1993; and that this act should go into effect as soon as possible in order to clarify the law at the earliest date. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

17-20-401. Definitions.

As used in this subchapter, unless the context otherwise requires:

1. “College” includes a school of barbering, college of barbering, barber school, barber college, and any other place or institution of instruction training persons to engage in the practice of barbering;
2. “Postsecondary school of barbering” means a school or college that admits students who have a high school diploma or the equivalent of a high school diploma who are beyond the age of compulsory school attendance in this state; and
3. “Secondary school of barbering” means:
   1. A school that admits students who have completed grade eight (8) or the equivalent of grade eight (8) and are at least sixteen and a half (16 ½) years of age; or
   2. A school with enrollment made up of no more than fifty percent (50%) of students with neither a high school diploma nor the equivalent of a high school diploma.

History. Acts 1961, No. 109, § 2; A.S.A. 1947, § 71-524; Acts 2017, No. 1060, § 20.

Amendments. The 2017 amendment substituted “Definitions” for “Definition” in the section heading; added the definitions of “Postsecondary school of barbering” and “Secondary school of barbering”; and made stylistic changes.

17-20-402. Enforcement — Authority of the State Board of Barber Examiners.

1. The State Board of Barber Examiners may commence and maintain all proper and necessary proceedings in order to enforce compliance with any provisions of the laws or rules pertaining to the practice of barbering and, in addition to other remedies, may enforce compliance by injunction.
2. Schools of barbering shall be conducted as provided under this subchapter.
3. A person, firm, or corporation desiring to conduct a school of barbering shall apply to the board for approval and will be inspected and approved before opening to the public.
4. The license issued by the board authorizes a school of barbering to transact operations in this state during the year for which the license is issued, subject to the rules of the board.
5. This section shall not be construed as authorization or permission to conduct a school of barbering without a valid license or with an unexpired license.
6. A license issued by the board shall designate on the written license whether the school of barbering is licensed as:
   1. A secondary school of barbering; or
   2. A postsecondary school of barbering.

History. Acts 1961, No. 109, §§ 6, 13; A.S.A. 1947, §§ 71-528, 71-535; Acts 2017, No. 1060, § 21.

Amendments. The 2017 amendment added “Authority of the State Board of Barber Examiners” to the section heading; added the (a) designation; substituted “laws or rules” for “laws, rules, or regulations” in (a); and added (b) through (f).

17-20-403. Application for registration — Public welfare considerations.

1. Every applicant for a certificate of registration to operate a new barber college shall offer proof sufficient to the State Board of Barber Examiners that the establishment of a new barber college in a particular area will not be detrimental to the public welfare.
2. In considering whether the establishment of a new barber college in a particular area will be detrimental to the public welfare, the board shall consider the need for barber college facilities or additional barber college facilities, as the case may be, in the community where the proposed barber college is to be located, giving particular consideration to:
   1. The economic character of the community;
   2. The adequacy of existing barbershops and barber colleges in that community;
   3. The ability of the community to support the proposed barber college;
   4. The character of adjacent communities and the extent to which the establishment of the proposed barber college would draw patrons from such adjacent communities; and
   5. The social and economic effect of the establishment of a barber college on the community where it is proposed to be located and on the adjacent communities.

History. Acts 1961, No. 109, § 4; A.S.A. 1947, § 71-526.

17-20-404. Application for registration — Contents.

1. An application for a license and approval as a registered school or college of barbering shall contain, under oath of the applicant or proper officer of a corporation or association, the following:
   1. The full name of the applicant, person, association, or corporation;
   2. The exact location where the school or college is located or proposed to be located;
   3. Whether or not the school or college is owned or leased and, if leased, the name and residence of the owner or, if a corporation, the directors and stockholders thereof;
   4. A detailed drawing of the premises where the instruction is to take place, including the:
      1. Size of the building;
      2. Number of chairs available;
      3. Sanitary facilities;
      4. Name, number, and qualifications of the teachers on the staff; and
      5. Proposed number of students;
   5. A statement, certified to by a public accountant licensed to practice in this state, of the assets and liabilities of the person or firm making the application;
   6. Evidence that a financial responsibility bond for faithful performance of duty has been secured; and
   7. Evidence that a performance bond of ten thousand dollars ($10,000) guaranteeing the operation of the school or college has been secured.
2. A barber school or barber college shall not be approved on any premises or in any building or part of a building unless a physical barrier of solid construction separates the barber school or barber college from all other businesses, occupations, or establishments conducted on the same premises or in the same building or part thereof.

History. Acts 1961, No. 109, § 3; A.S.A. 1947, § 71-525; Acts 2017, No. 1060, § 22.

Amendments. The 2017 amendment added the (a) designation; deleted “for one (1) year” following “college” in (a)(7); and added (b).

17-20-405. Licensing prerequisites — Managers and teachers.

A school or college of barbering shall not be approved by the State Board of Barber Examiners and a license shall not be issued to operate or conduct any school or college of barbering until the following provisions are complied with:

1. The faculty are registered teacher manager instructors under this subchapter;
2. At least one (1) approved teacher manager instructor is teaching at the school or college of barbering at all times and in charge of each daily class in theoretical scientific study, scientific barbering practice, and general barbering practice at all times; and
3. One (1) teacher manager instructor is provided for every twenty (20) students.

History. Acts 1961, No. 109, §§ 5, 8, 12; 1975, No. 538, §§ 3, 4; 1981, No. 103, § 2; 1985, No. 137, § 2; A.S.A. 1947, §§ 71-527, 71-530, 71-534; Acts 1993, No. 1056, § 6; 1997, No. 1032, § 1; 2013, No. 1417, § 1; 2017, No. 1060, § 23.

Amendments. The 2013 amendment added (d) and (e).

The 2017 amendment rewrote the section.

17-20-406. Teacher manager instructor certification.

1. 1. Application for examination for a teacher manager instructor certificate shall be filed with the State Board of Barber Examiners on blank forms prepared and furnished by the board and shall be accompanied by the fee prescribed in § 17-20-409.
   2. A teacher manager instructor shall be:
      1. Twenty-one (21) years of age; and
      2. A currently licensed barber who has:
         1. One (1) year of experience as a barber;
         2. A high school diploma or the equivalent of a high school diploma; and
         3. Completed a postgraduate course of six hundred (600) hours in barber teacher theory in an approved school.
   3. An applicant for a teacher manager instructor certificate shall take a written test and demonstrate to the board his or her competency on a subject assigned by the board from the textbook on one (1) of the following subjects:
      1. Haircutting;
      2. Permanent waving;
      3. Hair coloring;
      4. Hair styling;
      5. Chemical processing; or
      6. Shaving.
2. A person who has been continuously licensed or registered in another state to practice barbering and who also meets the requirements under this chapter may be issued a certificate of registration as a registered teacher manager instructor upon making application as required by law and upon payment of the reciprocity fee to obtain registration in this state as a registered barber, plus the teacher manager instructor reciprocity fee.
3. A teacher manager instructor shall have received not less than eight (8) hours of additional training in an instructor's training seminar or continuing education course certified by the board on a yearly basis before renewal of his or her teacher manager instructor license.

History. Acts 1961, No. 109, § 1; A.S.A. 1947, § 71-523; Acts 1993, No. 1056, § 10; 1993, No. 1219, § 4; 2017, No. 1060, § 24.

Amendments. The 2017 amendment inserted “Teacher” and “instructor” in the section heading; designated the existing language as (a)(1); substituted “teacher manager instructor” for “manager” in (a)(1); and added (a)(2), (a)(3), (b), and (c).

17-20-407. Curriculum.

1. A school or college of barbering shall not be approved by the State Board of Barber Examiners and a license shall not be issued to operate or conduct any school or college of barbering until the applicant demonstrates to the board that it is fully qualified to thoroughly educate and instruct students in all subjects necessary and required to qualify them as competent barbers.
2. A school of barbering shall not be approved by the board unless it:
   1. Meets the admission requirements under this subchapter; and
   2. 1. Requires as a prerequisite to graduation a course of instruction and practice of not fewer than five hundred fifty (550) hours for licensed cosmetologists, and for all other students not less than one thousand five hundred (1,500) hours of continuous study and practice of not more than eight (8) hours in any one (1) day, five (5) days a week, within a period of not fewer than nine (9) months from the date of enrollment.
      2. The course of instruction shall include the following subjects, with the curriculum hours as specified in the rules and procedures of the board:
         1. Scientific fundamentals for barbering;
         2. Physiology;
         3. Hygiene;
         4. Elementary chemistry relating to sterilization and antiseptics;
         5. Massaging and manipulating the muscles of the face, neck, and scalp;
         6. Hair cutting;
         7. Bobbing;
         8. Waving;
         9. Shaving;
         10. Beard trimming; and
         11. Chemical services.
3. Each barber college shall abide by the following guidelines:
   1. Conduct a course of study and training which shall consist of not fewer than five hundred fifty (550) hours for students who are licensed cosmetologists, and as to all other students not fewer than one thousand five hundred (1,500) clock hours. The average daily schedule of each student shall consist of the following:
      1. One and one-fourth (1¼) clock hours of theoretical study in a classroom;
      2. One and one-fourth (1¼) clock hours of scientific barber practice in a classroom other than general clinic; and
      3. Five (5) clock hours of general barber practice. Each barber college shall average five (5) services per day per student;
   2. Teach no fewer than one-third (1/3) of its total enrollment scientific barbering practice, theory, or general barber practice at one (1) time;
   3. Post a daily schedule of its course of study in its general clinic where it can be easily read by all students; and
   4. Require a maximum attendance in all subjects. A student shall not be permitted to spend more than eight (8) hours in the college in any one (1) day.
4. The board shall promulgate rules that distinguish between a secondary and a postsecondary education curriculum.

History. Acts 1961, No. 109, §§ 3, 8, 12; A.S.A. 1947, §§ 71-525, 71-530, 71-534; Acts 1989, No. 388, § 11; 2013, No. 1417, § 2; 2017, No. 1060, § 25.

Amendments. The 2013 amendment added (d).

The 2017 amendment rewrote (b)(1); inserted “with the curriculum hours as specified in the rules and procedures of the board” in (b)(2)(B); inserted “abide by the following guidelines” in the introductory language of (c); substituted “five (5) services” for “and “five and one half (5½) haircuts or shaves” in (c)(1)(C); in (c)(3), substituted “Post” for “Submit” and deleted “to the board for its approval and post a copy of the approved schedule” following “study”; and made stylistic changes.

17-20-408. Facility — Equipment.

1. 1. A school or college of barbering shall not be approved by the State Board of Barber Examiners and a license shall not be issued to operate or conduct any school or college of barbering until one (1) chair is available for each student.
   2. The chairs shall be five feet (5') from center to center with one (1) shampoo bowl with hot and cold running water for every two (2) barber chairs.
2. Each barber college shall have within the premises in which it is located adequate space to accommodate all facilities required by the board. Each barber chair in each college shall be of such construction that it may readily be cleaned, and it shall be mechanically workable and in good working order.
3. Square foot requirements for a barber school or college shall be determined by the board.
4. The classroom shall be equipped with sufficient seating capacity for all students attending the classroom and shall have the following equipment:
   1. One (1) shampoo sink with hot and cold running water for every two (2) barber chairs to be approved for scientific practice classes;
   2. One (1) chalkboard or the equivalent of a chalkboard not less than six feet by three and one-half feet (6' x 3½') in size;
   3. One (1) chart of the skin and hair;
   4. One (1) chart of the muscles of the head, face, and neck;
   5. One (1) chart of the nerves of the head, face, and neck;
   6. One (1) chart of the bones of the head and face;
   7. One (1) chart of the blood supplied to the head and face;
   8. One (1) standard dictionary;
   9. One (1) medical dictionary; and
   10. One (1) microscope for the study of bacteria.
5. The floor of the practical training room shall be covered with tile or any type of water-resistant material and shall have available the following equipment and facilities:
   1. A minimum of fifteen (15) barber chairs in modern and new condition;
   2. One (1) shampoo bowl for each two (2) chairs;
   3. One (1) closed cabinet for tools and linens for each chair;
   4. One (1) approved soiled towel container with hinged lid or door for each chair;
   5. One (1) disinfecting solution container for each chair adequate in size to accommodate all instruments to be used on each patron;
   6. One (1) ultraviolet lamp for every twenty (20) students or a fraction thereof;
   7. One (1) infrared generator for every twenty (20) students or a fraction thereof;
   8. One (1) high-frequency unit for every twenty (20) students or a fraction thereof;
   9. One (1) mechanical hand vibrator for every ten (10) students or a fraction thereof;
   10. One (1) hair dryer; and
   11. One (1) time clock to verify student hours of daily attendance to be submitted to the board by the tenth day of each month.
6. Each barber college shall have adequate ventilating and lighting equipment approved by the board.
7. Each barber college having both men and women in its enrollment shall provide one (1) restroom for men and one (1) restroom for women.

History. Acts 1961, No. 109, §§ 5, 11, 12; A.S.A. 1947, §§ 71-527, 71-533, 71-534; Acts 2017, No. 1060, § 26.

Amendments. The 2017 amendment inserted “with one (1) shampoo bowl with hot and cold running water for every two (2) barber chairs” in (a)(2); deleted the former third and fourth sentences in (b); substituted “shampoo sink” for “lavatory” in (d)(1); substituted “chalkboard or the equivalent of a chalkboard” for “blackboard” in (d)(2); substituted “water-resistant material” for “first-grade linoleum” in the introductory language of (e); substituted “shampoo bowl” for “lavatory” in (e)(2); substituted “disinfecting” for “sterilization” in (e)(5); added “to verify . . . each month” in (e)(11); substituted “restroom” for “toilet” twice in (g); and made stylistic changes.

17-20-409. Fees.

1. No school or college of barbering shall be approved by the State Board of Barber Examiners and no license shall be issued to operate or conduct any school or college of barbering until the applicant pays the initial license fee of five hundred dollars ($500). Thereafter the school or college shall pay an annual renewal fee of one hundred fifty dollars ($150).
2. Other fees applicable to barber schools or colleges are:
   1. Teacher manager instructor examination $80.00
   2. Teacher manager instructor license 40.00
   3. Restoration of a teacher manager instructor license 48.00.

History. Acts 1961, No. 109, §§ 5, 10; 1975, No. 538, §§ 2-4; 1981, No. 103, § 3; 1985, No. 137, §§ 2, 3; A.S.A. 1947, §§ 71-527, 71-532; 2019, No. 386, § 4.

Amendments. The 2019 amendment substituted “Teacher manager instructor” for “Teacher, manager, or instructor” in (b)(1) and (b)(2); and substituted “teacher manager instructor” for “teacher, manager, or instructor” in (b)(3).

17-20-410. Revocation or suspension of certificate.

The State Board of Barber Examiners may revoke or suspend any certificate of school license or registration upon finding that the school or college fails to comply with the provisions of this subchapter or with the rules prescribed by the board.

History. Acts 1961, No. 109, § 6; A.S.A. 1947, § 71-528; Acts 2019, No. 315, § 1367.

Amendments. The 2019 amendment deleted “and regulations” following “rules”.

17-20-411 — 17-20-419. [Reserved.]

1. A school of barbering shall not enroll or admit any student thereto unless the student makes and files in duplicate a duly verified application. This application shall be of such form and contain such matters as the State Board of Barber Examiners may prescribe.
2. One (1) copy of the application shall be retained by the school enrolling or admitting the student, and one (1) copy shall be filed by the school with the board, along with the fee prescribed for the administration of the student application and student license.

History. Acts 1961, No. 109, § 9; A.S.A. 1947, § 71-531; Acts 2017, No. 1060, § 27.

Amendments. The 2017 amendment, in (a), substituted “A school of barbering shall not enroll” for “No school of barbering shall enroll” and deleted “and shall be obtained by the student or the school from the board” at the end; and added “along with the fee prescribed for the administration of the student application and student license” in (b).

17-20-421. Applicants for admission or examination — Qualification.

1. 1. Every applicant for entrance as a student in a barber college or for admittance to examination to receive a certificate of registration as a registered barber shall have a diploma showing completion of grade eight (8) or a certification of equivalency.
   2. All students of barbering shall be registered with the State Board of Barber Examiners before hours can be obtained.
   3. The application for enrollment shall be accompanied with identification of the applicant in the form of his or her Social Security number, driver's license, and two (2) passport-sized photographs of the applicant with the name of the applicant on the back.
2. A student shall complete a reenrollment form with the appropriate administrative fee whenever a change of schools occurs or upon reenrollment.

History. Acts 1961, No. 109, § 1; A.S.A. 1947, § 71-523; Acts 1989, No. 388, § 10; 2017, No. 1060, § 28.

Amendments. The 2017 amendment designated the existing section as (a)(1); in (a)(1), substituted “completion of grade eight (8)” for “completion of the eighth grade” and deleted “issued by the State Board of Barber Examiners in this state or any other state or country from which the applicant is applying” at the end; and added (a)(2), (a)(3), and (b).

17-20-422. Application for examination.

Each applicant for an examination shall:

1. Make application to the State Board of Barber Examiners at least ten (10) business days before the examination date and submit proof under the applicant's oath of the particular qualifications of the applicant, including the certification by school officials of the number of hours attended; and
2. Pay the required fee to the board as provided by law.

History. Acts 1961, No. 109, § 7; A.S.A. 1947, § 71-529; Acts 2017, No. 1060, § 29.

Amendments. The 2017 amendment, in (1), substituted “ten (10) business days before the” for “ten (10) days prior to” and substituted “and submit” for “on blank forms prepared and furnished by the board, the application to contain”, and added “including the certification by school officials of the number of hours attended; and”; deleted former (2) and (3); and redesignated former (4) as present (2).

17-20-423. Sanitary rules.

Each barber college shall furnish each student upon enrollment a copy of the rules governing sanitary conditions of barber shops of this state as registered with the Secretary of State.

History. Acts 1961, No. 109, § 12; A.S.A. 1947, § 71-534; Acts 2019, No. 315, § 1368.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the section heading and text.

17-20-424. Inspection of student work.

1. Each barber college shall require that a patron not be released from a chair after being served by a student until all the work performed by the student has been thoroughly inspected and approved by a teacher manager instructor.
2. In each licensed school of barbering:
   1. A student shall not engage in any work upon a client until he or she has had the required number of hours of instruction;
   2. A school shall not advertise student work to the public through any medium unless the work is designated as student work; and
   3. A school may allow a student to volunteer in charity or special events held outside the school if the following conditions are met:
      1. The student agrees to participate;
      2. The student is accompanied by and acts under the direct supervision of a licensed instructor; and
      3. The school maintains the required student-to-teacher ratios.

History. Acts 1961, No. 109, § 12; A.S.A. 1947, § 71-534; Acts 2017, No. 1060, § 30; 2019, No. 386, § 5.

Amendments. The 2017 amendment designated the existing language as (a); and added (b).

The 2019 amendment, in (a), deleted “shall” following “patron” and added “manager instructor”.

Subchapter 5 — Barber Technicians

Effective Dates. Acts 1971, No. 541, § 4: Apr. 6, 1971. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present laws and regulations requiring the certification of barber technicians and the employment of barber technicians in licensed barber shops located in this state are inadequate and should be revised and clarified immediately in order to protect the public health of the citizens of this state. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1987, No. 563, § 10: Apr. 2, 1987. Emergency clause provided: “It is hereby found and determined that the provisions of this amendment will promote proper regulation and enforcement of the State Board of Barber Examiners' laws and that timely approval is necessary to correct an inequitable situation. Therefore, an emergency is hereby declared to exist and this amendment being necessary for the immediate preservation of the public peace, health and safety shall be in effect from and after its passage and approval.”

17-20-501. Scope of employment.

A certified barber technician may be employed in a licensed barbershop and may assist the barber in shampooing and sanitizing so long as the shampooing and sanitizing is done and performed under the direct personal supervision of a licensed barber. The barber technician shall not be permitted to cut or style hair or otherwise engage in the practice of barbering.

History. Acts 1971, No. 541, § 1; A.S.A. 1947, § 71-536; Acts 2017, No. 1060, § 31.

Amendments. The 2017 amendment substituted “shampooing and sanitizing” for “shampooing and sterilizing” twice.

17-20-502. Certification.

The State Board of Barber Examiners shall issue a barber technician certification to a barbershop that is current with its shop and technician licenses.

History. Acts 1971, No. 541, § 2; 1975, No. 656, § 1; A.S.A. 1947, § 71-537; Acts 2017, No. 1060, § 32.

Amendments. The 2017 amendment rewrote the section.

17-20-503. Certificate authorizing barbershop to continue to employ.

Upon application from a currently licensed barbershop and upon receipt of the application fee of thirty-five dollars ($35.00), the State Board of Barber Examiners shall issue a certificate authorizing the licensed barbershop to continue to employ not more than two (2) persons as barber technicians.

History. Acts 1987, No. 563, § 7; 2017, No. 1060, § 33.

Amendments. The 2017 amendment inserted “continue to” in the section heading; substituted “from a currently licensed” for “of a licensed” and inserted “continue to”; and deleted the former second sentence.

Subchapter 1 — General Provisions

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

17-21-101. Definitions.

As used in this chapter, unless the context otherwise requires:

1. 1. “Beauty pageant” means any contest or competition in which entrants are judged on the basis of physical beauty, skill, talent, poise, and personality and in which a winner or winners, are selected as representing an ideal in one (1) or more of these areas.
   2. “Beauty pageant” shall not include any such contest or competition in which no application fee or entrance charge is made for contestants, to which no admission charge is made for attendance, and in connection with which no tickets or chances are sold;
2. “Bond” means a surety bond with power of attorney attached and which names the Arkansas resident agent for the surety company;
3. “Entrant's fee” means any payment of money or other thing of value, including, but not limited to, the selling of advertisements or tickets, or the obtaining of sponsors, which activity is a precondition to participation in a beauty pageant; and
4. “Operator” means any person, franchisee, firm or corporation, civic group, or elementary or secondary educational institution that promotes, organizes or otherwise operates, a beauty pageant, participation in which is limited to persons paying an entrant's fee.

History. Acts 1991, No. 101, § 1; 2019, No. 386, § 6; 2019, No. 910, § 3419.

Amendments. The 2019 amendment by No. 386 deleted former (3).

The 2019 amendment by No. 910 deleted former (3).

17-21-102. Penalties.

Violation of this chapter shall constitute a misdemeanor punishable by a fine of not less than five hundred dollars ($500) nor more than five thousand dollars ($5,000).

History. Acts 1991, No. 101, § 6.

17-21-103. Rules.

The Secretary of the Department of Finance and Administration may adopt rules to administer the provisions of this chapter. The rules shall be adopted in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1991, No. 101, § 4; 2019, No. 315, § 1369; 2019, No. 910, § 3420.

Amendments. The 2019 amendment by No. 315 deleted “and regulations” following “rules” in the section heading and twice in the text.

The 2019 amendment by No. 910 substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration”.

17-21-104. Exemptions.

The provisions of this chapter shall not apply to any operator which has existed as an operation for at least twenty-five (25) years, and its affiliates, whether now or hereafter, and whose continuing primary function involves the annual organization, promotion, and sponsoring of a statewide talent and beauty pageant in which contestants compete for scholarships, awarded by the operator, as well as for the opportunity of being Arkansas's representative and contestant in an annual nationwide talent and beauty pageant with which the operator is affiliated.

History. Acts 1991, No. 101, § 5; 1991, No. 676, § 1.

Subchapter 2 — Registration

Effective Dates. Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

17-21-201. Registration of operators — Renewal — Fee.

1. No person shall conduct a beauty pageant in Arkansas unless registered with the Secretary of the Department of Finance and Administration on forms prescribed by him or her. Registration in another state as a beauty pageant operator shall not be effective in this state.
2. The registration form shall contain, but shall not be limited to, the following information:
   1. Name, address, and telephone number of the operator;
   2. Name, address, and telephone number of the individual or officer of the organization having full responsibility for the conducting of the pageant;
   3. Names of pageants customarily promoted by the operator; and
   4. Name, address, and telephone number of the financial institution in which the entrant's fee is held.
3. 1. In order to continue to hold a valid registration in a subsequent year, each operator shall annually renew his or her registration.
   2. Each registration shall expire on December 31 of each year.

History. Acts 1991, No. 101, § 2; 1993, No. 344, §§ 3, 4; 2019, No. 910, § 3421.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the first sentence of (a).

17-21-202. Bond.

1. Except as provided in § 17-21-203, each operator shall, at the time of registration, file and have approved by the Secretary of the Department of Finance and Administration, a bond in which the candidate for registration shall be the principal obligor in the sum of ten thousand dollars ($10,000).
2. The bond shall be payable to the State of Arkansas for the use of the secretary and any person who may have a cause of action against the obligor of the bond for any losses caused by a failure to conduct a beauty pageant.

History. Acts 1991, No. 101, § 2; 2019, No. 910, § 3422.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in (a); and substituted “secretary” for “director” in (b).

17-21-203. Exemptions from certain requirements.

A bona fide civic club in existence for at least one (1) year, a nonprofit organization, a religious organization or church, a local government entity or school, or any organization auxiliary to or affiliated with such local governmental entities or schools, including, but not limited to, county fair boards and school booster clubs, shall be exempt from the requirements of § 17-21-201(c) and § 17-21-202.

History. Acts 1991, No. 101, § 2; 1993, No. 344, § 5.

17-21-204. Cancellations — Refunds.

1. If a beauty pageant is canceled or otherwise does not take place, all entrants' fees shall be refunded by the operator.
2. The surety shall be liable for any unrefunded entrants' fees in the case of a default by the operator.

History. Acts 1991, No. 101, § 3.

17-21-205. Denial, suspension, revocation of registration.

The Secretary of the Department of Finance and Administration may deny, suspend, or revoke a registration for:

1. A violation of any of the provisions of this chapter; or
2. The making of a false statement on the registration application form.

History. Acts 1991, No. 101, § 4; 2019, No. 910, § 3423.

Amendments. The 2019 amendment substituted “Secretary of the Department of Finance and Administration” for “Director of the Department of Finance and Administration” in the introductory language.

Subchapter 1 — General Provisions

Effective Dates. Acts 1999, No. 1085, § 13: Apr. 5, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that this act is necessary to continue a tradition of permitting nonprofit corporations to utilize athletic events as fund raisers; that this act is necessary to ensure the safety of participants in martial arts competitions, an area currently unregulated by state law; that additional funding mechanisms contained in this bill are necessary to provide increased oversight and regulation of matches and exhibitions to ensure the safety of the participants; and that the public health, welfare and safety are dependent upon the immediate enactment of this act upon its passage. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

17-22-101. Definitions.

As used in this chapter:

1. “Amateur” means a person who has never received nor competed for any purse or other compensation in an amount that exceeds the sum established by the State Athletic Commission in its rules for:
   1. Expenses of training; or
   2. Participating in a combative sports contest or exhibition;
2. “Boxing” means to compete with the fists;
3. 1. “Combative sports” means boxing, kick boxing, wrestling, martial arts, Muay Thai, or any combination thereof, or any form of hand-to-hand, elbow-and-foot, or foot-and-leg competition in which:
      1. A blow is struck which may reasonably be expected to inflict injury; or
      2. A surface for fighting is used that may reasonably be expected to inflict injury.
   2. “Combative sports” does not include student training or an exhibition of a student's skill when:
      1. Conducted by a martial arts school or an association of martial arts schools;
      2. The student's participation is for health and recreational purposes rather than competition;
      3. The intent is to use only partial contact; and
      4. The scoring technique is based only on points.
   3. “Combative sports” does not include professional wrestling;
4. “Exhibition” means any engagement in which the participants show or display their skills without necessarily striving to win;
5. “Kick boxing” means any form of boxing in which blows are delivered with the hand and any part of the leg below the hip, including the foot;
6. “Manager” means any person who directly or indirectly controls or administers the combative sports affairs of any professional participant of the same;
7. “Martial arts” or “mixed martial arts” means any discipline in which the participants utilize kicks, punches, blows, strikes, or other techniques, including without limitation any form of judo, kung fu, karate, and tae kwon do, ju jitsu, or any combination thereof;
8. “Match” means any engagement in which the participants show or display their skills while striving in good faith to win;
9. “Person” means any individual, partnership, corporation, association, or club;
10. “Professional” means an individual who is eighteen (18) years of age or older and who, as a means of obtaining pecuniary gain:
    1. Competes for money, prizes, or purses in combative sports contests or exhibitions; or
    2. Teaches, instructs, or assists in the practice of professional combative sports;
11. “Professional wrestling” means an event or form of combat between two (2) or more participants, whether the outcome is predetermined or not, in which a participant:
    1. Delivers or appears to deliver blows to his or her opponent's body;
    2. Executes throws to his or her opponent's body; or
    3. Applies holds to his or her opponent's body;
12. “Promoter” means any person, club, organization, corporation, or association, and in the case of a corporate promoter includes any officer, director, employee, or stockholder thereof who produces, arranges, or stages any professional boxing, kick boxing, wrestling, or martial arts match or exhibition; and
13. “Wrestling” means any form of combat between two (2) or more participants in which a participant delivers blows to his or her opponent's body, executes throws to his or her opponent's body, or applies holds to his or her opponent's body.

History. Acts 1999, No. 1085, § 1; 2009, No. 781, § 1; 2013, No. 1096, § 1; 2017, No. 252, § 2; 2019, No. 386, § 7; 2019, No. 923, § 1.

Amendments. The 2009 amendment rewrote (1); inserted (3) and (13), deleted (12) and former (13), and redesignated the remaining subdivisions accordingly; substituted “combative sports” for “wrestling, boxing, kick boxing, or martial arts” in (7); inserted “or ‘mixed martial arts’” and “ju jitsu” in (8); rewrote (11); and made related and minor stylistic changes.

The 2013 amendment rewrote (3)(A); added (3)(B)(iv); inserted present (12) and redesignated the remaining subdivisions accordingly.

The 2017 amendment substituted “As used in this chapter” for “For purposes of this chapter” in the introductory language.

The 2019 amendment by No. 386 deleted former (4).

The 2019 amendment by No. 923 added (3)(C).

Subchapter 2 — State Athletic Commission

Effective Dates. Acts 1927, No. 131, § 9: approved Mar. 9, 1927. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, of the State of Arkansas, shall be in force and effect from and after its passage.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1999, No. 1085, § 13: Apr. 5, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that this act is necessary to continue a tradition of permitting nonprofit corporations to utilize athletic events as fund raisers; that this act is necessary to ensure the safety of participants in martial arts competitions, an area currently unregulated by state law; that additional funding mechanisms contained in this bill are necessary to provide increased oversight and regulation of matches and exhibitions to ensure the safety of the participants; and that the public health, welfare and safety are dependent upon the immediate enactment of this act upon its passage. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 2013, No. 482, § 3: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act transfers the Arkansas State Athletic Commission to the Arkansas Department of Health; that to effectively administer this act the transition should occur at the beginning of the next fiscal year; and that the effectiveness of this act on July 1, 2013, is essential to the operation of the agencies. Therefore, an emergency is declared to exist and this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2013.”

Acts 2019, No. 910, § 6346(b): July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that this act revises the duties of certain state entities; that this act establishes new departments of the state; that these revisions impact the expenses and operations of state government; and that the sections of this act other than the two uncodified sections of this act preceding the emergency clause titled ‘Funding and classification of cabinet-level department secretaries’ and ‘Transformation and Efficiencies Act transition team’ should become effective at the beginning of the fiscal year to allow for implementation of the new provisions at the beginning of the fiscal year. Therefore, an emergency is declared to exist, and Sections 1 through 6343 of this act being necessary for the preservation of the public peace, health, and safety shall become effective on July 1, 2019”.

17-22-201. Creation — Members.

1. A State Athletic Commission is created, which shall consist of seven (7) members who shall be at least twenty-five (25) years of age.
2. 1. Members shall be appointed by the Governor for a term of two (2) years.
   2. One (1) of the members of the commission shall be a member of any patriotic organization chartered by authority of a special act of the United States Congress.
   3. One (1) member shall be a representative of the field of physical education.
   4. One (1) member shall be a representative of the field of sports promotion.
   5. One (1) member shall be a consumer representative.
   6. Two (2) members may be citizens at large but shall have experience with combative sports.
   7. One (1) member shall be a representative of the field of medicine and have experience with combative sports.
   8. 1. Furthermore, one (1) of the seven (7) members of the commission shall be a member of a minority race.
      2. One (1) of the seven (7) members shall be a senior citizen.
      3. Four (4) of the seven (7) members shall have experience with combative sports.
3. The members of the commission shall serve without pay except for a stipend provided for by Arkansas law.
4. The members of the commission shall have authority to promulgate such rules as are necessary for the operation and enforcement of this chapter and not in conflict with this chapter.
5. The members of the commission may receive expense reimbursement in accordance with § 25-16-901 et seq.
6. When any member of the commission shall cease to be a member of the state executive committee of any such patriotic organization as herein mentioned, his or her commission as a member of the commission shall automatically expire. The Governor shall appoint a successor, whose qualifications shall be as prescribed in this section.

History. Acts 1927, No. 131, §§ 2, 3; Pope's Dig., § 12062; Acts 1985, No. 970, § 2; A.S.A. 1947, §§ 84-2903, 84-2904; Acts 1991, No. 1188, § 1; 1997, No. 250, § 130; 2009, No. 781, § 2; 2013, No. 1096, § 2; 2019, No. 315, § 1370; 2019, No. 923, § 2.

A.C.R.C. Notes. Acts 2013, No. 482, § 1, provided: “Effective July 1, 2013, the Arkansas State Athletic Commission established by Arkansas Code 17-22-201 is transferred as a Type 1 transfer under Arkansas Code 25-2-104 to the Arkansas Department of Health.”

Amendments. The 2009 amendment substituted “Two (2)” for “Four (4)” in (b)(2), inserted (b)(6) and present (7)(C) and redesignated the remaining subdivisions accordingly, and made related changes.

The 2013 amendment, in (b)(2), substituted “One (1)” for “Two (2)” and “a member” for “members”; substituted “Two” for “The remaining two” in (b)(6); inserted present (b)(7) and redesignated former (b)(7) as (b)(8); and added “except for a stipend provided for by Arkansas law” in (c).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (d).

The 2019 amendment by No. 923 deleted “the state executive committee of” preceding “any” in (b)(2).

17-22-202. Chair.

The State Athletic Commission shall elect one (1) of its members as chair and one (1) of its members as vice chair.

History. Acts 1927, No. 131, § 3; Pope's Dig., § 12063; A.S.A. 1947, § 84-2904; Acts 2013, No. 1096, § 3.

Amendments. The 2013 amendment added “and one (1) of its members as vice chair”.

17-22-203. Director of the State Athletic Commission.

1. The State Athletic Commission in consultation with the Secretary of the Department of Labor and Licensing may employ a Director of the State Athletic Commission and fix the salary thereof at a sum not to exceed the maximum annual salary prescribed for such a position in the biennial appropriation for the Department of Labor and Licensing.
2. The director shall:
   1. Keep in the office of the commission a full, complete, and up-to-date record of all the proceedings of the commission;
   2. Keep an up-to-date account of all money received by him or her on behalf of the commission; and
   3. Perform such other duties as shall be prescribed by the secretary.

History. Acts 1927, No. 131, §§ 3, 5; Pope's Dig., §§ 12063, 12065; Acts 1985, No. 970, § 2; A.S.A. 1947, §§ 84-2904, 84-2906; Acts 2019, No. 910, § 5415.

Amendments. The 2019 amendment substituted “Director of the State Athletic Commission” for “Secretary” in the section heading; rewrote (a); substituted “director” for “secretary” in the introductory language of (b); and substituted “secretary” for “commission” in (b)(3).

17-22-204. Authority.

1. 1. 1. The State Athletic Commission shall have the sole discretion, management, control, and jurisdiction over all combative sports matches and exhibitions in this state.
      2. 1. The commission shall adopt uniform policies, fees, and forms to ensure fair regulation of the combative sports industry.
         2. The commission shall have no authority over professional wrestling events.
   2. A combative sports match or exhibition declared to be amateur and self-regulated shall be governed by the commission unless sanctioned by:
      1. A federally recognized sanctioning body approved in writing by the commission; and
      2. A national oversight body with 26 U.S.C. § 501(c)(3) status under the Internal Revenue Code of 1986 operating in at least six (6) states approved in writing by the commission.
2. 1. The commission shall have the authority to appoint and pay inspectors and other officials necessary to properly conduct any match or exhibition authorized by this chapter.
   2. The inspectors and other officials may receive reimbursement for travel under § 25-16-901 et seq.
3. The commission shall have the authority to adopt and promulgate, amend, or abrogate any and all rules considered by it necessary or expedient for the performance of its functions as provided in this chapter and in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
4. The commission may issue subpoenas, examine witnesses, and administer oaths and shall, at its discretion, investigate allegations or practices violating the provisions of this chapter.
5. The commission shall have the authority to hire an investigator for the purposes outlined in this section.
6. The commission shall have the authority to require event permits and insurance for combative sports with limits to be adjusted by the rules of the commission.
7. The commission shall have the authority to make a claim on the bond or check posted by a promoter for combative sports events in order to make reimbursements for any unpaid fees, prize money, or other financial commitments of the promoter related to combative sports activity licensed by the commission.
8. The commission shall have the authority to specify the forms required under this chapter.

History. Acts 1927, No. 131, § 3; Pope's Dig., § 12063; Acts 1985, No. 970, § 2; A.S.A. 1947, § 84-2904; Acts 1993, No. 1277, § 1; 1999, No. 1085, § 2; 2009, No. 781, § 3; 2013, No. 1096, § 4; 2017, No. 860, § 1; 2019, No. 315, §§ 1371, 1372; 2019, No. 386, § 8; 2019, No. 923, § 3.

Amendments. The 2009 amendment, in (a), inserted (a)(2), redesignated the remaining text accordingly, and in (a)(1), substituted “combative sports” for “professional or semiprofessional” and deleted “involving boxing, kick boxing, wrestling, or martial arts” following “exhibitions”; and added (f) and (g).

The 2013 amendment added the (a)(1)(A) designation and added (a)(1)(B); rewrote (a)(2); added the (b)(1) designation and inserted “and pay” preceding “inspectors” in (b)(1), and added (b)(2); inserted “event permits and” in (f); and added (h).

The 2017 amendment added “Except as provided under subdivisions (a)(1)(B)(ii) and (iii) of this section” in (a)(1)(A); redesignated former (a)(1)(B) as (a)(1)(B)(i); and added (a)(1)(B)(ii) and (a)(1)(B)(iii).

The 2019 amendment by No. 315 deleted “and regulations” following “rules” in (c) and (f).

The 2019 amendment by No. 386 substituted “or” for “and” in the introductory language of (a)(2).

The 2019 amendment by No. 923 rewrote (a)(1).

17-22-205. Personal liability.

The members of the State Athletic Commission and employees of the commission shall not be personally liable for acts performed in carrying out their official duties except in the case of gross misconduct, and no legal action shall be maintained against any member or employee of the commission for such acts except in the case of gross misconduct.

History. Acts 1985, No. 970, § 5; A.S.A. 1947, § 84-2913.

17-22-206. Combative sports.

The General Assembly finds and declares to be the public policy of this state that it is in the best interest of the public and combative sports that combative sports be subject to an effective and efficient system of strict control and rule in order to protect the safety and well-being of the participants in combative sports matches and exhibitions and to promote the public confidence in the regulatory process and the conduct of combative sports matches and exhibitions. To further such public confidence and trust, the State Athletic Commission shall have the authority to adopt and promulgate, amend, or abrogate any and all rules concerning combative sports, to recover inspector and investigator fees, and recover the actual cost of the national and federal fighter database fees charged to the commission.

History. Acts 1999, No. 1085, § 3; 2009, No. 781, § 4; 2013, No. 1096, § 5; 2019, No. 315, § 1373.

Amendments. The 2009 amendment rewrote the section heading and substituted the first instance of “combative sports” for “the martial arts,” and substituted the remaining instances of “combative sports” for “professional or semi-professional martial arts.”

The 2013 amendment added “to recover inspector and investigator fees, and recover the actual cost of the national and federal fighter database fees charged to the commission” in the last sentence.

The 2019 amendment substituted “rule” for “regulation” in the first sentence and deleted “and regulations” following “rules” in the second sentence.

17-22-207. Civil penalties.

1. Any person who, after notice and hearing, is found by the State Athletic Commission to have violated any provision of this chapter or any rules of the commission may be assessed a civil penalty not to exceed two thousand five hundred dollars ($2,500) for each violation.
2. The penalty provided for in this section plus interest at ten percent (10%) per annum shall be paid to the commission before the penalized person can be issued a license by the commission.
3. The commission shall have the authority to file suit in the Pulaski County Circuit Court or the circuit court of the county in which the person resides to obtain a judgment for the amount of any penalty not paid within thirty (30) days of service on the person of the order assessing the penalty, unless the circuit court enters a stay pursuant to the provisions of the Arkansas Administrative Procedure Act, § 25-15-201 et seq.

History. Acts 1999, No. 1085, § 3; 2009, No. 781, § 5; 2019, No. 315, § 1374.

Amendments. The 2009 amendment substituted “two thousand five hundred dollars ($2,500)” for “one thousand dollars ($1,000)” in (a).

The 2019 amendment deleted “or regulations” following “rules” in (a).

17-22-208. Combative sports elimination contests.

1. Except as provided under § 17-22-204, this chapter applies to combative sports elimination contests in which:
   1. The contestants compete for prizes only in combative sports elimination contests and are not:
      1. Professional boxers licensed through the Professional Boxing Safety Act of 1996, 15 U.S.C. § 6301 et seq., competing in four (4) or more rounds of non-elimination boxing; or
      2. Professional mixed martial arts or any other professional form of combative sports discipline combatants;
   2. Each bout is scheduled to consist of three (3) or fewer one-minute rounds with combative sports elimination contests conducted on no more than two (2) consecutive calendar days;
   3. Contestants are prohibited from competing for more than twelve (12) minutes on each combative sports elimination contest day and are prohibited from being scheduled for more than twelve (12) minutes over the two-day period;
   4. The contestants participating in the combative sports elimination contest are to be insured by the promoter for not less than ten thousand dollars ($10,000) for medical and hospital expenses to be paid to the contestants to cover injuries sustained in the combative sports elimination contest and for not less than ten thousand dollars ($10,000) to be paid in accordance with the statutes of descent and distribution of personal property if a contestant dies as a result of injuries sustained in the combative sports elimination contest;
   5. A licensed physician is in attendance at ringside, and the physician has authority to stop the combative sports elimination contest for medical reasons;
   6. All contestants pass a physical examination using the State Athletic Commission's form given by a licensed physician before the combative sports elimination contest;
   7. A preliminary breath test is administered to each contestant that indicates a blood alcohol content of two-tenths of one percent (0.2%) or less; and
   8. The promoter conducts the combative sports elimination contest in compliance with the following:
      1. A contestant who has lost by a technical knockout is not permitted to compete again for a period of thirty (30) calendar days or until the contestant has submitted to the promoter the results of a physical examination equivalent to that required of professional boxers or professional mixed martial arts combatants;
      2. 1. The ringside physician examines a contestant who has been knocked out in a combative sports elimination contest or whose fight has been stopped by the referee because the contestant received hard blows to the head that made the contestant defenseless or incapable of continuing immediately after the knockout or stoppage.
         2. The ringside physician may recommend post-fight neurological examinations, which may include computerized axial tomography scans or magnetic resonance imaging, to be performed on the contestant immediately after the contestant leaves the location of the combative sports elimination contest.
         3. The promoter shall not permit the contestant to compete until a physician has certified that the contestant is fit to compete.
         4. If the physician recommends further neurological examinations, the promoter shall not permit the contestant to compete until the promoter receives copies of examination reports demonstrating that the contestant is fit to compete;
      3. 1. The promoter shall require that a contestant who has sustained a severe injury or knockout in a combative sports elimination contest be examined by a physician.
         2. The promoter shall not permit the contestant to compete until the physician has certified that the contestant has fully recovered;
      4. The promoter shall not permit a contestant to compete in a combative sports elimination contest for a period of not less than sixty (60) days if the contestant has been knocked out or has received excessive hard blows to the head that required the fight to be stopped;
      5. A contestant who has been knocked out twice in a period of three (3) months or who has had excessive head blows causing a fight to be stopped shall not be permitted by a promoter to participate in a combative sports elimination contest for a period of not less than one hundred twenty (120) days after the second knockout or stoppage;
      6. A contestant who has been knocked out or had excessive hard blows to the head causing a fight to be stopped three (3) times consecutively in a period of twelve (12) months shall not be permitted by a promoter to participate in a combative sports elimination contest for a period of one (1) year after the third knockout; and
      7. Before resuming competition after any of the periods of rest prescribed in subdivisions (a)(8)(D)-(F) of this section, a promoter shall require the contestant to produce a certification by a physician stating that the contestant is fit to take part in a combative sports elimination contest.
2. As part of the physical examination given before the combative sports elimination contest, the licensed physician or other trained person shall administer a preliminary breath test in compliance with standards imposed in rules promulgated by the Department of Arkansas State Police regarding equipment calibration and methods of administration.
3. 1. The promoter shall keep a log of preliminary breath test results of contestants on file at its place of business for at least three (3) years after the date of administration of the test.
   2. These results shall be made available to law enforcement officials upon request.
4. A combative sports elimination contest held under subsection (a) of this section is not considered to be in violation of the law.
5. Any person violating the provisions of this section shall be guilty of a Class A misdemeanor and shall be subject to a fine not to exceed one thousand dollars ($1,000).

History. Acts 2001, No. 631, § 1; 2009, No. 781, § 6; 2013, No. 1096, § 6; 2017, No. 860, § 2.

Amendments. The 2009 amendment substituted “combative sports elimination contest” for “elimination contest” or “contest” or variant throughout the section; in (a), substituted “applies” for “does not apply” and “combative sports” for “boxing” in the introductory language, rewrote (a)(1), substituted “competing” for “boxing” in (a)(3), substituted “five thousand dollars ($5,000)” for “one thousand dollars ($1,000)” in (a)(4), and inserted “or professional mixed martial arts combatants” in (a)(8)(A); and made related and minor stylistic changes.

The 2013 amendment inserted “or any other professional form of combative sports discipline” in (a)(1)(B); added “and are prohibited from being scheduled for more than twelve (12) minutes over the two-day period” in (a)(3); substituted “ten thousand dollars ($10,000)” for “five thousand dollars ($5,000)” in two places in (a)(4); and inserted “using the State Athletic Commission's form” in (a)(6).

The 2017 amendment added “Except as provided under § 17-22-204” in the introductory language of (a).

17-22-209. [Repealed.]

Publisher's Notes. This section, concerning transfer of the State Athletic Commission, was repealed by Acts 2019, No. 910, § 5416, effective July 1, 2019. The section was derived from Acts 2013, No. 482, § 2.

Subchapter 3 — Licensing

A.C.R.C. Notes. Acts 2013, No. 1096, § 11, provided: “A referee or judge who is licensed by the State Athletic Commission on the effective date of this act shall have until January 1, 2014, to obtain the certification under § 17-22-302(f). The referee or judge to whom this section applies shall not be denied renewal of his or her license or have his or her license revoked for failure to obtain certification before January 1, 2014.”

Publisher's Notes. Acts 1987, No. 659, § 1, provided: “It is the purpose and intent of this Act to assure that each and every qualified organization and civic club in the State desiring to be licensed to sponsor athletic events, matches and exhibitions regulated by the Arkansas Athletic Commission shall be licensed by the Commission to do so and the Commission shall have no authority to limit or restrict the number of licensed sponsors. It is further the intent hereof to provide that the Secretary of State shall, upon application therefor, be licensed as a sponsor of such athletic events, matches and exhibitions in any city, town or area of the State wherein no qualified organization or club has applied for a license as a sponsor, and that the funds received by the Secretary of State as a sponsor of such events shall be used for the erection and maintenance of a memorial to Arkansas law enforcement officers or such other memorial as the General Assembly may hereafter provide.”

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Effective Dates. Acts 1927, No. 131, § 9: approved Mar. 9, 1927. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety, of the State of Arkansas, shall be in force and effect from and after its passage.”

Acts 1929, No. 27, § 2: approved Feb. 19, 1929. Emergency clause provided: “This act being necessary for the immediate preservation of the public peace, health and safety of the State of Arkansas, it shall be in force and effect from and after its passage.”

Acts 1989, No. 596, § 5: Mar. 15, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that this law is necessary to continue a tradition that until recently permitted nonprofit corporations to utilize athletic events as fund raisers; that the public health, welfare and safety is dependent upon the immediate enactment of this bill upon its passage. Therefore, an emergency is hereby declared to exist and this act being necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1999, No. 1085, § 13: Apr. 5, 1999. Emergency clause provided: “It is hereby found and determined by the Eighty-second General Assembly that this act is necessary to continue a tradition of permitting nonprofit corporations to utilize athletic events as fund raisers; that this act is necessary to ensure the safety of participants in martial arts competitions, an area currently unregulated by state law; that additional funding mechanisms contained in this bill are necessary to provide increased oversight and regulation of matches and exhibitions to ensure the safety of the participants; and that the public health, welfare and safety are dependent upon the immediate enactment of this act upon its passage. Therefore, an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

17-22-301. Authorized matches and exhibitions.

1. All combative sports matches or exhibitions in this state are subject to the requirements of this chapter and the rules of the State Athletic Commission unless exempted by § 17-22-204(a) or § 17-22-101(3)(B).
2. All matches or exhibitions as provided in subsection (a) of this section shall be conducted only in accordance with the provisions of this chapter and acts amendatory or supplemental hereto and in accordance with the rules of the commission.

History. Acts 1927, No. 131, § 1; Pope's Dig., § 12061; Acts 1965, No. 463, § 1; 1985, No. 970, §§ 1, 4; A.S.A. 1947, §§ 84-2902, 84-2911; Acts 1987, No. 659, §§ 2, 4; 1989, No. 596, § 1; 1999, No. 1085, § 4; 2009, No. 781, § 7; 2019, No. 315, § 1375.

Amendments. The 2009 amendment rewrote (a); made a minor stylistic change in (b); and deleted (c) through (e).

The 2019 amendment deleted “and regulations” following “rules” in (a) and (b).

17-22-302. Issuance of licenses — Fees.

1. The State Athletic Commission shall have the authority to appoint and issue annual licenses to the following persons with regard to participation in combative sports in this state:
   1. A person engaging in combative sports;
   2. A promoter of a combative sports match or exhibition;
   3. A manager;
   4. A matchmaker;
   5. A referee;
   6. A judge;
   7. A physician;
   8. A timekeeper; and
   9. A person arranging, participating in, or otherwise involved with matches and exhibitions as provided in § 17-22-301(a).
2. The State Athletic Commission shall have the authority to refuse to issue a license to any person or organization that has been sanctioned in any way by any comparable licensing body of another state.
3. 1. The State Athletic Commission shall not license a person who at the time of application is a registered sex offender designated as Level 2 or higher on the Arkansas Sex Offender Registry.
   2. A person's status as a registered sex offender is good cause for the revocation of the person's license previously issued by the State Athletic Commission.
4. Fees for the licenses shall be established by the State Athletic Commission.
5. All licenses as provided in this section shall expire annually on June 30.
6. 1. A referee or judge for professional events shall attend courses given by and obtain certification from the Association of Boxing Commissions for the referee or judge's discipline.
   2. A referee or judge may take the courses provided by the Association of Boxing Commissions anywhere in the United States if documentation of training and certification is provided upon application for a license.
7. The State Athletic Commission may set an event permit processing fee not to exceed fifty dollars ($50.00).

History. Acts 1927, No. 131, § 4; 1929, No. 27, § 1; Pope's Dig., § 12064; Acts 1965, No. 463, § 2; 1985, No. 970, § 3; A.S.A. 1947, §§ 84-2905, 84-2912; Acts 1987, No. 659, § 3; 1989, No. 596, § 2; 1993, No. 1277, § 2; 1999, No. 1085, § 5; 2009, No. 781, § 7; 2013, No. 1096, § 7.

Amendments. The 2009 amendment rewrote (a) through (c) and redesignated them as (a); made a minor stylistic change in present (b); deleted (d); and redesignated the subsequent subdivisions accordingly.

The 2013 amendment rewrote the section.

17-22-303. License required — Penalty for unlicensed activity.

1. No person shall participate in or engage in the promotion of a combative sports match or exhibition in this state without first having obtained a license from the State Athletic Commission.
2. No person shall participate in a combative sports match or exhibition in this state as a manager, matchmaker, referee, judge, physician, or timekeeper, without first having obtained a license from the commission.
3. Any person mentioned in subsection (a) or subsection (b) of this section who does not first obtain a license from the commission before participating in a combative sports match or exhibition shall be deemed guilty of a misdemeanor and upon conviction shall be fined in any sum not less than one thousand dollars ($1,000) nor more than two thousand five hundred dollars ($2,500).
4. A venue, entity, or person who knowingly assists in making an unlicensed combative sports match or exhibition occur shall be subject to the penalties under subsection (c) of this section.

History. Acts 1927, No. 131, § 8; 1929, No. 27, § 1; Pope's Dig., § 12068; A.S.A. 1947, §§ 84-2901, 84-2909; Acts 1993, No. 1277, § 3; 1999, No. 1085, § 6; 2009, No. 781, § 7; 2013, No. 1096, § 8.

Amendments. The 2009 amendment substituted “combative sports” for “professional or semi-professional wrestling, boxing, kick boxing, or martial arts” in (a) and (b); deleted (c) and redesignated the subsequent subsection accordingly; and added (d).

The 2013 amendment inserted “in this state” following “exhibition” in (b).

17-22-304. Bond required.

1. As a condition to the issuance of a license as provided in § 17-22-302, the person applying for the license shall file with the State Athletic Commission a cashier's check, an acceptable letter of credit, or a corporate surety bond in an amount to be established by the commission in its rules, but not less than the sum of two thousand dollars ($2,000) written by a corporate surety authorized to do business in this state, conditioned upon the licensee's payment of all taxes and other charges due the state and its political subdivisions on account of such matches or exhibitions.
2. The surety under this section shall be written or held by the commission for at least six (6) months.

History. Acts 1961, No. 450, § 1; A.S.A. 1947, § 84-2910; Acts 1999, No. 1085, § 7; 2009, No. 781, § 7; 2013, No. 1096, § 9.

Amendments. The 2009 amendment deleted (b) and redesignated the remaining subsection accordingly; substituted “§ 17-22-301(a)(2)” for “§ 17-22-301(c)”; inserted “an amount to be established by the commission in its rules, but not less than”; and deleted “as provided in § 17-22-301(a)” following “exhibitions.”

The 2013 amendment added the (a) designation; in (a), substituted “an acceptable” for “a” preceding “letter of credit” and substituted “two thousand dollars ($2,000)” for “one thousand dollars ($1,000)”; and added (b).

17-22-305. Refusal or revocation of license.

1. The State Athletic Commission may refuse for good cause to issue a license under § 17-22-302(a).
2. The commission may also revoke for good cause any license granted under authority of this chapter.

History. Acts 1927, No. 131, § 7; Pope's Dig., § 12067; A.S.A. 1947, § 84-2908; Acts 1993, No. 1277, § 4; 1999, No. 1085, § 8; 2009, No. 781, § 7.

Publisher's Notes. This section may be affected by the Administrative Procedure Act, § 25-15-201 et seq.

Amendments. The 2009 amendment rewrote the section.

17-22-306. Fees.

1. 1. Within five (5) business days after a combative sports match or exhibition, the licensed manager, promoter, or person responsible for the match or exhibition shall furnish to the State Athletic Commission a written report under the penalty of perjury on a form that shall be provided by the commission showing the number of tickets that were issued or sold and the gross receipts therefor without any deductions whatsoever.
   2. 1. The person shall also pay to the commission at the same time a five-percent fee of the total gross receipts received from admission charges for each exhibition held under the authority of this chapter.
      2. The five percent (5%) shall be computed using gross gate receipts, unless the venue collects and remits sales tax for the promoter.
      3. If the venue collects and remits sales tax for the promoter, the five percent (5%) shall be computed on the net gate receipts after sales tax.
      4. 1. If a promoter allows admission to a match or exhibition in return for a payment other than the cash purchase of tickets, the commission shall:
            1. Determine the method to be used to calculate the five-percent value of the gate receipts; or
            2. Set a reasonable price per person to be paid by the promoter to the commission.
         2. If the promoter requests a decision from the commission regarding the payment under this section before the match or exhibition, the commission shall make the determination and notify the promoter of the determination before the match or exhibition.
   3. 1. The promoter shall pay the cost of an event inspector or investigator present at the event.
      2. Except as provided under subdivision (a)(3)(D) of this section, the cost of the event inspector or investigator shall not exceed one hundred twenty-five dollars ($125) per day for each inspector or investigator.
      3. The commission shall:
         1. Determine if there is a need to appoint an inspector or investigator at an event;
         2. Determine the number of inspectors or investigators to be appointed for the event; and
         3. Notify the promoter in writing before the event of:
            1. The number of inspectors or investigators to be appointed;
            2. The cost of the inspectors or investigators; and
            3. The reasons for the appointment.
      4. [Repealed.]
2. 1. 1. The commission may designate a representative to be present and to observe the computation of the number of tickets issued or sold and the determination of the gross receipts.
      2. All events shall utilize tickets for admission.
   2. 1. When the tickets are sold through an electronic ticket system, the commission may accept a computerized certification of tickets sold and a statement from the venue.
      2. The statement from the venue shall be signed by an arena representative and the promoter.

History. Acts 1987, No. 659, § 5; 1999, No. 1085, § 9; 2001, No. 536, § 1; 2009, No. 781, § 7; 2013, No. 1096, § 10; 2017, No. 860, § 3; 2019, No. 923, § 4.

Amendments. The 2009 amendment inserted (a)(2)(B), (a)(2)(C), and (b)(2), and redesignated the remaining subdivisions accordingly; in (a), substituted “five (5) business days after a combative sports match or exhibition, the licensed manager, promoter, or person responsible for the match or exhibition” for “ten (10) days after a match or exhibition as provided in § 17-22-301(a), every sponsoring organization as provided in § 17-22-301(c)” in (a)(1), and in (a)(2), deleted “exclusive of federal taxes thereon” following “(5%)” and deleted “main or principal” preceding “exhibition.”

The 2013 amendment added (a)(2)(D) and (a)(3); and added the (b)(1)(A) designation and added (b)(1)(B).

The 2017 amendment added “Except as provided under subdivision of (a)(3)(D) of this section” in (a)(3)(B); and added (a)(3)(D).

The 2019 amendment repealed (a)(3)(D).

Subchapter 1 — General Provisions

Cross References. Scrap metal dealers, § 17-44-101 et seq.

Effective Dates. Acts 1981, No. 541, § 5: Mar. 18, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the provisions of Acts 1981, No. 87 relating to the licensure and regulation of precious metal buyers are unduly restrictive and seriously hamper the operation of any legitimate businesses in the state and that this act is designed to correct this undesirable and inequitable situation and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

17-23-101. Definitions.

As used in this chapter:

1. 1. “Dealer” means a person, corporation, partnership, or other entity that engages in the business of purchasing precious metals or precious items, or both, for the purpose of reselling the items in any form.
   2. “Dealer” does not include a person, corporation, partnership, or other entity engaged in a business that is exempted under § 17-23-102;
2. “Permanent place of business” means a fixed premises either owned by a person or leased by a person for a period of at least one (1) year and located in the State of Arkansas;
3. “Person” means any individual, partnership, corporation, association, or other business entity;
4. “Precious items” means precious or semiprecious stones or pearls whether mounted or unmounted;
5. “Precious metals” means an article made, in whole or in part, of gold, silver, platinum, or a combination of gold, silver, or platinum;
6. “Purchase” means the acquisition of a precious metal or a precious item, or both, for a consideration of cash, goods, or other precious metals or precious items; and
7. “Silver” means sterling silver.

History. Acts 1981, No. 87, § 1; 1981, No. 541, § 1; A.S.A. 1947, § 71-5401; Acts 2011, No. 1037, § 1; 2013, No. 1213, § 1.

Amendments. The 2011 amendment deleted “unless the context otherwise requires” following “chapter” in the introductory paragraph; added (1) and (2); redesignated former (1) as (3); added (4) through (6); and redesignated former (2) as (7).

The 2013 amendment rewrote (2).

17-23-102. Exemptions.

The provisions of this chapter shall not apply to the following:

1. Transactions involving the sale or transfer of precious metals by a wholesale jeweler to a retail jeweler or licensed dealer;
2. Transactions involving coins regardless of whether or not such coins contain precious metals;
3. Any financial institution which is covered by federal or state deposit insurance;
4. Any person doing business under the laws of this state or the United States relating to any broker-dealer or commodity futures commission merchant or commodity trading advisor or agent duly registered and regulated by the State Securities Department or the United States Commodity Futures Trading Commission; or
5. Pawn brokers.

History. Acts 1981, No. 87, § 1; 1981, No. 541, § 1; A.S.A. 1947, § 71-5401; Acts 1991, No. 729, § 1; 2011, No. 1037, § 2.

Amendments. The 2011 amendment deleted former (1); redesignated former (2) as present (1); deleted former (3); redesignated former (4) through (7) as present (2) through (5); and deleted “or any person doing business under the laws of this state” following “insurance” in present (3).

17-23-103. Penalties.

1. If the value of the property involved in a transaction is five hundred dollars ($500) or less, a person who violates this chapter is guilty of a Class A misdemeanor.
2. If the value of the property involved in a transaction is greater than five hundred dollars ($500), a person who violates this chapter is guilty of a Class D felony.

History. Acts 1981, No. 87, § 7; A.S.A. 1947, § 71-5407; Acts 2013, No. 1213, § 2.

Amendments. The 2013 amendment rewrote the section.

17-23-104. Civil liability.

1. Any person who has been damaged or injured by the failure of a person required to be licensed under this chapter to comply with the provisions of this chapter may recover the actual damages sustained.
2. The court in its discretion may also award punitive damages and the cost of suit and reasonable attorney's fees to a prevailing plaintiff.

History. Acts 1981, No. 87, § 6; A.S.A. 1947, § 71-5406.

Subchapter 2 — Licensing

Effective Dates. Acts 1981, No. 541, § 5: Mar. 18, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that the provisions of Acts 1981, No. 87 relating to the licensure and regulation of precious metal buyers are unduly restrictive and seriously hamper the operation of any legitimate businesses in the state and that this act is designed to correct this undesirable and inequitable situation and should be given effect immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

17-23-201. Registration required.

1. A person shall not engage in the business of purchasing precious metals or precious items from the general public for the purpose of reselling the precious metals or precious items in any condition without first registering with the local law enforcement agency in the jurisdiction as provided under this section and in the manner provided under § 17-23-202.
2. If the person has a permanent place of business in the State of Arkansas and the transaction is being conducted at the person's permanent place of business, the person shall register with the local law enforcement agency in the jurisdiction of the permanent place of business.
3. A person shall register with the local law enforcement agency in the jurisdiction where the transaction occurs if the person:
   1. Has a permanent place of business in the State of Arkansas and the transaction is being conducted from a location that is different from the person's permanent place of business; or
   2. Is a nonresident that enters into an association or partnership with a person that is required to register with the local law enforcement agency having jurisdiction under subdivision (c)(1) of this section.

History. Acts 1981, No. 87, § 1; 1981, No. 541, § 1; A.S.A. 1947, § 71-5401; Acts 1991, No. 729, § 2; 2011, No. 1037, § 3; 2013, No. 1213, § 3.

Amendments. The 2011 amendment substituted “Registration” for “License” in the section heading; and rewrote the section.

The 2013 amendment added the (a) designation; substituted “as provided under this ... provided under § 17-23-202” for “which the business or the seller is located” in present (a); and added (b) and (c).

17-23-202. Registration.

1. 1. A dealer shall register with local law enforcement in writing and on the form prescribed by the local law enforcement agency at least twenty-four (24) hours before conducting business in that jurisdiction.
   2. The registration shall include:
      1. 1. The name of the registrant.
         2. If the registrant is a partnership or association, the name of each member of the partnership or association.
         3. If the registrant is a corporation, the name of each officer and director and of the principal owner or owners of the issued and outstanding capital stock in the corporation;
      2. The residence and business address for each person listed under subdivision (a)(2)(A) of this section;
      3. The city or town with the street and number where the business is to be conducted;
      4. A statement that the registrant has:
         1. A bona fide established permanent place of business used primarily for the purchase of precious metals and precious items; and
         2. A telephone number listed in the name of the business; and
      5. The name, address, and telephone number of the registered agent for service of process as provided under the Model Registered Agents Act, § 4-20-101 et seq., in the event of the commencement of any legal action in any court against the registrant.
2. A nonresident applicant shall provide the principal place of business without the state and additional information as the local law enforcement agency in the jurisdiction in which the business or the seller is conducting business may require for the administration of its duties under this chapter to include without limitation:
   1. Photographs of each item purchased;
   2. Seller identification, including the same proof and limitations under § 17-23-203;
   3. Disclosures, including the same disclosures required under § 17-23-205;
   4. Records, including the same records required under § 17-23-206; and
   5. Holding periods, including the same holding periods under § 17-23-207.

History. Acts 1981, No. 87, § 2; 1983, No. 374, § 1; A.S.A. 1947, § 71-5402; Acts 2011, No. 1037, § 4; 2013, No. 1162, § 1; 2013, No. 1213, § 4.

Amendments. The 2011 amendment rewrote the section.

The 2013 amendment by No. 1162 substituted “local law enforcement agency” for “department” in (b).

The 2013 amendment by No. 1213 substituted “before conducting” for “prior to conducting” in (a)(1); substituted “registered agent for ... Agents Act, § 4-20-101 et seq.” for “person designated to receive legal process” in (a)(2)(E); and rewrote (b).

17-23-203. Seller identification.

1. A dealer required to register under this chapter shall require the following from each seller of precious metals or precious items:
   1. Proof of identification in the form of a valid driver's license, identification card, armed services identification card, or other valid photo identification;
   2. A signed statement stating that the seller is the legal owner of the property or is the agent of the owner authorized to sell the property, and when and where or in what manner the property was obtained; and
   3. A legible print of his or her right thumb as an identifying mark on the form.
2. 1. A dealer shall not purchase precious metals or precious items from a person under eighteen (18) years of age unless the person is accompanied by a parent or guardian who provides identification that establishes that relationship.
   2. Both the person under eighteen (18) years of age and the parent or guardian shall submit the identification required under subdivision (a)(1) of this section, and records of the identification of both shall be maintained as provided under § 17-23-206.

History. Acts 1981, No. 87, § 3; 1983, No. 374, § 2; A.S.A. 1947, § 71-5403; Acts 2011, No. 1037, § 5.

Amendments. The 2011 amendment rewrote the section.

17-23-204. Melt-down bullion.

When a proposed transaction involves the buying of precious metal bulk bullion which appears to have been the result of a melt-down of a former article containing a precious metal, the buyer must first inquire as to what was the source of the item before the melt-down and must notify the Department of Arkansas State Police or the office of the county sheriff or municipal police department and obtain permission from that law enforcement agency before consummating any agreement.

History. Acts 1981, No. 87, § 3; 1983, No. 374, § 2; A.S.A. 1947, § 71-5403.

17-23-205. Disclosures.

Every person required to be licensed under this chapter shall inform the prospective seller of the price per ounce currently being paid for the particular precious metal offered by the prospective seller, and the precious metals shall be weighed in full sight of the prospective seller.

History. Acts 1981, No. 87, § 3; 1983, No. 374, § 2; A.S.A. 1947, § 71-5403.

17-23-206. Records.

1. Every person registered under this chapter shall keep a record book containing a comprehensive record of all transactions concerning precious metals or precious items.
2. The record shall include:
   1. The name, address, and telephone number of the seller;
   2. The date of birth of the seller;
   3. The signature of the seller;
   4. A description of the seller, including height, weight, race, complexion, and hair color;
   5. The driver's license, identification card, or other photo identification number provided under § 17-23-203(a)(1) and the jurisdiction of issuance; and
   6. A complete and accurate description of the property purchased, including any serial numbers or other identifying marks or symbols and the date and hour of the transaction.
3. All persons registered under this chapter shall at least weekly deliver or mail to the chief law enforcement officer of the city or town or the sheriff of the county in which the business is located a written or electronic copy of all entries in the record required to be kept by subsections (a) and (b) of this section during the preceding seven-day period.
4. All records and reports received by the chief law enforcement officer of the city or town or sheriff of the county shall be available for inspection only by law enforcement officers for law enforcement purposes.

History. Acts 1981, No. 87, §§ 4, 5; 1981, No. 541, §§ 2, 3; 1983, No. 374, § 3; A.S.A. 1947, §§ 71-5404, 71-5405; Acts 2011, No. 1037, § 6.

Amendments. The 2011 amendment, in (a), substituted “registered” for “licensed,” deleted “obtained from or under the direction of the Department of Arkansas State Police” following “record book,” and substituted “or precious items” for “involving an amount in excess of fifty dollars ($50.00)”; rewrote (b); and, in (c), substituted “registered” for “licensed” and inserted “written or electronic.”

17-23-207. Holding periods.

1. All persons registered under this chapter shall retain possession of precious metals or precious items in an unaltered condition for fifteen (15) business days after delivering the list to the chief law enforcement officer of the city or town or sheriff of the county as required under § 17-23-206.
2. If the chief law enforcement officer of the city or town or sheriff of the county or the prosecuting attorney has probable cause to believe that precious metals or precious items have been stolen, he or she may give notice to the registrant to retain the precious metal or precious item for a specific period of time.

History. Acts 1981, No. 87, § 5; 1981, No. 541, § 3; A.S.A. 1947, § 71-5405; Acts 2011, No. 1037, § 7.

Amendments. The 2011 amendment rewrote the section.

17-23-208. [Repealed.]

Publisher's Notes. This section, concerning disposition of funds, was repealed by Acts 2013, No. 1213, § 5. The section was derived from Acts 1981, No. 87, § 8; A.S.A. 1947, § 71-5408.

Subchapter 1 — General Provisions

Effective Dates. Acts 1965, No. 145, §§ 13, 14: July 1, 1965. Emergency clause provided: “It having been found by the General Assembly of the State of Arkansas that there is a great need for regulation of collection agencies in this state due to undesirable methods of collection employed by some such agencies, and that that the profession itself would be greatly improved by such regulation; therefore, this act being necessary for immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and the provisions of this act shall be in full force and effect from the date of its enactment.” Approved Mar. 9, 1965.

Acts 1969, No. 214, § 9: Mar. 10, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that many nonresident persons, partnerships, associations and foreign corporations not authorized to do business in this state are taking accounts of Arkansas creditors for collection and that such persons, partnerships, associations and corporations are charging such creditors outrageous and unreasonable amounts for the collection of such accounts; that in order to challenge the unconscionable contracts entered into by such creditors and such nonresident persons, partnerships, associations and foreign corporations the creditors must go to the extra expense and inconvenience of traveling to another state, hiring an out-of-state attorney and presenting his cause of action in the courts of other states; that in order to permit Arkansas residents to bring such actions in Arkansas courts and in order to establish a reasonable limit on the fees charged by both resident and nonresident persons, partnerships, associations and corporations engaging in the business of collection of accounts, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1981, No. 366, § 3: Mar. 9, 1981. Emergency clause provided: “It is hereby found and determined by the General Assembly that some Arkansas collection agencies are failing to remit collected funds to their clients within a reasonable time and that this act is immediately necessary in order to prevent undue financial damage to such clients. Therefore, an emergency is hereby declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

17-24-101. Definition.

As used in this chapter, unless the context otherwise requires, “collection agency” means any person, partnership, corporation, association, limited liability corporation, or firm which engages in the collection of delinquent accounts, bills, or other forms of indebtedness owed or due or asserted to be owed or due to another or any person, partnership, corporation, association, limited liability corporation, or firm using a fictitious name or any name other than its own in the collection of their own accounts receivable, or any person, partnership, corporation, association, limited liability corporation, or firm which solicits claims for collection or any person, partnership, corporation, association, limited liability corporation, or firm that purchases and attempts to collect delinquent accounts or bills.

History. Acts 1965, No. 145, § 2; A.S.A. 1947, § 71-2002; Acts 2009, No. 1455, § 2.

Amendments. The 2009 amendment rewrote the section.

17-24-102. Exemptions.

1. This chapter does not apply to:
   1. Regular employees of a single creditor;
   2. Banks;
   3. Trust companies;
   4. Savings and loan associations;
   5. Abstract companies doing an escrow business;
   6. Licensed real estate brokers and agents when the claims or accounts being handled by the broker or agent are related to or in connection with the broker's or agent's regular real estate business;
   7. Express and telegraph companies subject to public regulation and supervision;
   8. Attorneys at law who use their own names or the names of their law firms to collect or attempt to collect claims, accounts, bills, or other forms of indebtedness owed to them individually or as a firm;
   9. 1. Persons, firms, corporations, associations, limited liability corporations, or partnerships handling claims, accounts, or collections under an order of any court.
      2. However, child support collection agencies not operating pursuant to Title IV-D of the Social Security Act are not exempt from this chapter and shall be subject to licensure; and
   10. Any person, firm, corporation, association, limited liability corporation, or partnership that, for a valuable consideration, purchases accounts, claims, or demands of another that were not in default or delinquent at the time of acquisition and then in the purchaser's own name proceeds to assert or collect the accounts, claims, or demands.
2. Nothing in § 17-24-301, § 17-24-309, § 17-24-401, or this subchapter with respect to licensure by the State Board of Collection Agencies or limitations of fees for collection services shall include or be applicable to attorneys at law licensed to practice in the State of Arkansas who are engaged in rendering legal services for clients in the collection of accounts, debts, or claims, nor shall § 17-24-301, § 17-24-309, § 17-24-401, or this subchapter amend or repeal in any way the exemptions set out in subsection (a) of this section.
3. 1. Nothing in this chapter shall include or be applicable to the foreclosure of real property under the provisions of § 18-49-101 et seq. or § 18-50-101 et seq.
   2. Foreclosure of real property is not deemed to be debt collection as defined in the federal Fair Debt Collections Practices Act, 15 U.S.C. § 1692a(6), as in existence on January 1, 2005.

History. Acts 1965, No. 145, § 9; 1969, No. 214, § 2; A.S.A. 1947, §§ 71-2009, 71-2011; Acts 1993, No. 1245, § 1; 1997, No. 246, § 1; 2005, No. 1882, § 1; 2009, No. 1455, § 3; 2019, No. 386, § 9.

Amendments. The 2005 amendment added (c).

The 2009 amendment, in (a), rewrote (a)(8), redesignated (a)(9) as (a)(8)(A) and (B), redesignated the subsequent subdivision accordingly, and inserted “limited liability corporations or partnerships” or variant in present (a)(8)(A) and (a)(9); substituted “chapter” for “section” in (b); and made related and minor stylistic changes.

The 2019 amendment substituted “subchapter” for “chapter” twice in (b).

U.S. Code. Title IV-D of the Social Security Act, referred to in this section, is codified as 42 U.S.C. § 651 et seq.

17-24-103. Penalties — Definition.

1. 1. A collection agency that engages in the business activities of a collection agency without a license issued under this chapter may be fined not less than fifty dollars ($50.00) nor more than five hundred dollars ($500).
   2. Each day of a violation of this chapter is a separate offense.
   3. 1. If a collection agency participates in collection activities without a license, the collection agency may pay a civil penalty to the State Board of Collection Agencies of ten thousand dollars ($10,000) in order to be considered retroactively licensed under this chapter by the board.
      2. As used in this chapter, “retroactively licensed” means the date that the collection agency first became subject to licensure under this chapter.
2. 1. The board may impose monetary fines as civil penalties to be paid for failure to comply with this chapter or the rules promulgated by the board under this chapter.
   2. Before imposing a monetary fine under subdivision (b)(1) of this section, the board shall provide notice and opportunity to be heard according to hearing procedures in effect for the revocation, suspension, or refusal of licensure.
   3. The remedies in the form of civil penalties provided in this section for failing to obtain a license issued under this chapter shall be the only consequence of and remedy for the failure of a collection agency to obtain a license when required under this chapter.
3. The board has exclusive jurisdiction over the rights and remedies or a violation of the rules under this chapter.

History. Acts 1965, No. 145, § 10; A.S.A. 1947, § 71-2010; Acts 1993, No. 1245, § 2; 1997, No. 246, § 2; 2009, No. 1455, § 4; 2015, No. 1249, § 1.

Amendments. The 2009 amendment substituted “collection agency” for “person, partnership, corporation, or association” in (a).

The 2015 amendment rewrote (a) and (b); and added (c).

17-24-104. Sanctions.

1. A collection agency that fails to remit to its client funds collected for the client within the calendar month following the month of collection, shall not be entitled to a collection fee and shall remit the total funds collected to the client.
2. If a collection agency fails to remit funds collected to its client within the calendar month following the month of collection and does not remit the total funds collected for the client to the client within sixty-one (61) days of the date of collection, the State Board of Collection Agencies may:
   1. Suspend or revoke the license of the collection agency; and
   2. Impose a civil penalty under § 17-24-103.

History. Acts 1981, No. 366, § 1; A.S.A. 1947, § 71-2016; Acts 2009, No. 1455, § 5.

Amendments. The 2009 amendment made minor stylistic changes in (a), and rewrote (b).

17-24-105. Remedies.

When any person, partnership, corporation, or association engages in the business activities of a collection agency without a valid license issued under this chapter or has had the license revoked, suspended, or refused, in accordance with the provisions of this chapter, the State Board of Collection Agencies may petition the circuit court in the jurisdiction in which the collection activity has occurred and, upon affidavit, secure a writ of injunction, without bond, restraining and prohibiting the person, partnership, corporation, or association from operating the collection agency.

History. Acts 1993, No. 1245, § 3; 2019, No. 386, § 10.

Amendments. The 2019 amendment substituted “under” for “pursuant to”, substituted “chapter” for “subchapter”, and substituted “Agencies may” for “Agencies shall have the right to”.

Cross References. Jurisdiction of circuit courts, Ark. Const. Amend. 80, §§ 6, 19.

Subchapter 2 — State Board of Collection Agencies

Effective Dates. Acts 1965, No. 145, §§ 13, 14: July 1, 1965. Emergency clause provided: “It having been found by the General Assembly of the State of Arkansas that there is a great need for regulation of collection agencies in this state due to undesirable methods of collection employed by some such agencies, and that the profession itself would be greatly improved by such regulation; therefore, this act being necessary for immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and the provisions of this act shall be in full force and effect from the date of its enactment.” Approved Mar. 9, 1965.

Identical Acts 1983, No. 131, § 6 and No. 135, § 6: Feb. 10, 1983. Emergency clauses provided: “It is hereby found and determined by the General Assembly that state boards and commissions exist for the singular purpose of protecting the public health and welfare; that citizens over 60 years of age represent a significant percentage of the population; that it is necessary and proper that the older population be represented on such boards and commissions; that the operations of the boards and commissions have a profound effect on the daily lives of older Arkansans; and that the public voice of older citizens should not be muted as to questions coming before such bodies. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1997, No. 250, § 258: Feb. 24, 1997. Emergency clause provided: “It is hereby found and determined by the General Assembly that Act 1211 of 1995 established the procedure for all state boards and commissions to follow regarding reimbursement of expenses and stipends for board members; that this act amends various sections of the Arkansas Code which are in conflict with the Act 1211 of 1995; and that until this cleanup act becomes effective conflicting laws will exist. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governer, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

Acts 1997, No. 1018, § 8: Apr. 2, 1997. Emergency clause provided: “It is found and determined by the General Assembly of the State of Arkansas that Arkansas Code 25-16-903 authorized members of the Advisory Committee on Petroleum Storage Tanks and members of the State Marketing Board of Recyclables to receive a stipend for attending board meetings; that Arkansas Code 8-7-904 and 8-9-201 were enacted prior to Arkansas Code 25-16-903 and do not mention stipends; that the earlier code sections should be amended to parallel the authority granted in § 25-16-903; that this act makes those technical corrections; and that this act should go into effect as soon as possible in order to avoid confusion. It is further found and determined by the General Assembly that the current law concerning expense reimbursement for the State Board of Collection Agencies does not conform to Arkansas Code 25-16-901 et seq.; the State Board of Collection Agencies should be allowed to receive a stipend; and that this act is immediately necessary for the effective operation of the State Board of Collection Agencies. Therefore an emergency is declared to exist and this act being immediately necessary for the preservation of the public peace, health and safety shall become effective on the date of its approval by the Governor. If the bill is neither approved nor vetoed by the Governor, it shall become effective on the expiration of the period of time during which the Governor may veto the bill. If the bill is vetoed by the Governor and the veto is overridden, it shall become effective on the date the last house overrides the veto.”

17-24-201. Creation — Members.

1. 1. There is created a State Board of Collection Agencies composed of five (5) members to be appointed by the Governor.
   2. The members shall serve three-year terms without compensation except they may receive expense reimbursement and stipends in accordance with § 25-16-901 et seq.
2. 1. 1. One (1) member shall be appointed by the Governor after consulting the Associated Credit Bureaus of Arkansas, Inc., subject to confirmation by the Senate, and another shall be appointed by the Governor after consulting with the Arkansas Collectors Association, Inc. and subject to confirmation by the Senate.
      2. The persons appointed under subdivision (b)(1)(A) of this section shall:
         1. Be actively engaged as the owners or managers of a collection agency or someone employed by collection agencies in an executive capacity; and
         2. Have been actively engaged in connection with the operation of a collection agency for five (5) years next preceding their appointment.
   2. One (1) member, who shall not be a member of either such association, shall be selected from the public at large.
   3. 1. One (1) member shall represent the elderly and shall be sixty (60) years of age or older.
      2. This member shall not be actively engaged in or retired from the operation of a collection agency.
      3. He or she shall be selected from the state at large subject to confirmation by the Senate and shall be a full voting member but shall not participate in the grading of examinations.
   4. 1. One (1) member shall be selected to represent the banking industry.
      2. He or she shall be an Arkansas resident who is actively engaged in the operation of a banking entity that is chartered to conduct business in the State of Arkansas.

History. Acts 1965, No. 145, § 3; 1983, No. 131, §§ 1-3, 5; 1983, No. 135, §§ 1-3, 5; A.S.A. 1947, §§ 6-623 — 6-626, 71-2003; Acts 1997, No. 250, § 131; 1997, No. 1018, § 3; 2001, No. 1766, § 1; 2015, No. 1100, § 22; 2019, No. 542, § 1.

Amendments. The 2015 amendment rewrote (b)(1).

The 2019 amendment substituted “banking industry” for “check cashing industry” in (b)(4)(A) and substituted “engaged in the operation of a banking entity that is chartered to conduct business” for “engaged as the owner or manager of a check cashing operation licensed to do business” in (b)(4)(B).

17-24-202. Organization and proceedings.

1. 1. The State Board of Collection Agencies shall meet and shall select from its membership a chair, vice chair, and secretary.
   2. No one (1) member of the board shall hold more than one (1) of the offices.
2. Meetings of the board shall be held upon the written call of the chair of the board or upon the written request of two (2) members of the board.
3. A majority of the board shall constitute a quorum.

History. Acts 1965, No. 145, § 3; A.S.A. 1947, § 71-2003.

17-24-203. Rules.

1. The State Board of Collection Agencies shall have the authority to promulgate rules to implement the provisions of this chapter which are not inconsistent herewith.
2. The board shall use, to the greatest extent possible, the interpretation and construction of the Fair Debt Collection Practices Act and any other applicable portions of the debt collection laws of the United States in interpreting and applying this chapter and the rules promulgated by the board.

History. Acts 1965, No. 145, § 4; A.S.A. 1947, § 71-2004; Acts 1995, No. 288, § 1; 2019, No. 315, § 1376.

Amendments. The 2019 amendment deleted “and regulations” following “rules” in the section heading and in (a) and (b).

U.S. Code. The Fair Debt Collection Practices Act, referred to in this section, is codified as 15 U.S.C. § 1692 et seq.

Subchapter 3 — Licensing

Cross References. Licenses and permits, removal of disqualification for criminal offenses, § 17-1-103.

Effective Dates. Acts 1965, No. 145, §§ 13, 14: July 1, 1965. Emergency clause provided: “It having been found by the General Assembly of the State of Arkansas that there is a great need for regulation of collection agencies in this state due to undesirable methods of collection employed by some such agencies, and that the profession itself would be greatly improved by such regulation; therefore, this act being necessary for immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and the provisions of this act shall be in full force and effect from the date of its enactment.” Approved Mar. 9, 1965.

Acts 1969, No. 214, § 9: Mar. 10, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that many nonresident persons, partnerships, associations and foreign corporations not authorized to do business in this state are taking accounts of Arkansas creditors for collection and that such persons, partnerships, associations and corporations are charging such creditors outrageous and unreasonable amounts for the collection of such accounts; that in order to challenge the unconscionable contracts entered into by such creditors and such nonresident persons, partnerships, associations and foreign corporations the creditors must go to the extra expense and inconvenience of traveling to another state, hiring an out-of-state attorney and presenting his cause of action in the courts of other states; that in order to permit Arkansas residents to bring such actions in Arkansas courts and in order to establish a reasonable limit on the fees charged by both resident and nonresident persons, partnerships, associations and corporations engaging in the business of collection of accounts, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1979, No. 86, § 3: approved Feb. 9, 1979. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there is a great need for increased revenues for the administration and operation of the State Board of Collection Agencies and for revising said agency's fiscal year to coincide with that of the state. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from the date of its enactment.”

Acts 1985, No. 829, § 4: approved Apr. 4, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there is a great need for informing the business and professional communities of their rights under the Arkansas laws regulating collection agencies. Therefore, an emergency is declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety is and shall be in full force and effect from the date of its enactment.”

Acts 1985, No. 830, § 3: approved Apr. 4, 1985. Emergency clause provided: “It is hereby found and determined by the General Assembly of the State of Arkansas that there is a great need for increased revenues for the administration and operation of the State Board of Collection Agencies and for revising said agency's fiscal year to coincide with that of the state. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from the date of its enactment.”

Acts 1989, No. 792, § 4: Mar. 21, 1989. Emergency clause provided: “It is hereby found and determined by the General Assembly that the present law is not clear regarding the disposition of surety bonds by the State Board of Collection Agencies; that it currently holds some forfeited bonds that should be disposed of as soon as possible; that this Act provides for the disposition of those bonds; and therefore this Act should be given immediate effect. Therefore, an emergency is hereby declared to exist and this Act being immediately necessary for the preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

Acts 1991, No. 126, § 12: July 1, 1991. Emergency clause provided: “It is hereby found and determined by the Seventy-Eighth General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 1991 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 1991 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 1991.”

Acts 2005, No. 2268, § 12: July 1, 2005. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2005 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2005 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2005.”

Acts 2007, No. 1217, § 12: July 1, 2007. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a two (2) year period; that the effectiveness of this Act on July 1, 2007 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2007 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2007.”

Acts 2009, No. 1413, § 8: July 1, 2009. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2009 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the Regular Session, the delay in the effective date of this Act beyond July 1, 2009 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2009.”

Acts 2010, No. 281, § 8: July 1, 2010. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2010 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2010 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2010.”

Acts 2011, No. 764, § 9: July 1, 2011. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2011 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2011 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2011.”

Acts 2013, No. 1023, § 9: July 1, 2013. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2013 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2013 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2013.”

Acts 2019, No. 489, § 7: July 1, 2019. Emergency clause provided: “It is found and determined by the General Assembly, that the Constitution of the State of Arkansas prohibits the appropriation of funds for more than a one (1) year period; that the effectiveness of this Act on July 1, 2019 is essential to the operation of the agency for which the appropriations in this Act are provided, and that in the event of an extension of the legislative session, the delay in the effective date of this Act beyond July 1, 2019 could work irreparable harm upon the proper administration and provision of essential governmental programs. Therefore, an emergency is hereby declared to exist and this Act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after July 1, 2019.”

17-24-301. License required.

Unless licensed by the State Board of Collection Agencies under this subchapter it is unlawful to:

1. Engage in the collection of delinquent accounts, bills, or other forms of indebtedness;
2. Use a fictitious name or any name other than their own in the collection of their own accounts receivable;
3. Solicit claims for collection; or
4. Purchase and attempt to collect delinquent accounts or bills.

History. Acts 1965, No. 145, § 1; 1969, No. 214, § 1; A.S.A. 1947, § 71-2001; Acts 2009, No. 1455, § 6.

Amendments. The 2009 amendment rewrote the section.

17-24-302. Qualifications — Restriction.

1. The State Board of Collection Agencies shall have the authority to issue a license to an applicant for a license to do business as a collection agency, provided that the applicant meets the following qualifications:
   1. The applicant is at least twenty-one (21) years of age;
   2. If a partnership, the names of the partners, their ages, sex, and their business address are provided, and the members of the partnership are at least twenty-one (21) years of age; and
   3. The proposed managers of a corporation or the owners of not less than fifty percent (50%) of the stock of the corporation are at least twenty-one (21) years of age.
2. No sheriff, deputy sheriff, constable, deputy constable, state police officer, or other law enforcement officer shall be licensed in any manner to engage in the business of operating a collection agency or acting as a collector for a collection agency.

History. Acts 1965, No. 145, § 5; A.S.A. 1947, § 71-2005; Acts 1993, No. 1219, § 5; 1995, No. 1296, § 64.

17-24-303. Application — Issuance — Transferability.

1. The State Board of Collection Agencies shall have the authority to require an applicant for a license to submit an application in writing containing such information as it shall deem necessary and pertinent and may require the character and business references which it deems appropriate.
2. Licenses issued by the board are not transferable.

History. Acts 1965, No. 145, § 5; A.S.A. 1947, § 71-2005; Acts 2009, No. 1455, § 7.

Publisher's Notes. Acts 1965, No. 145, § 5, provided that any person, firm, corporation, or association which had been operating a collection agency business for two years prior to March 9, 1965, which met all the requirements of this chapter, should, upon payment of fees and furnishing the bond required by § 17-24-306, be issued a collection agency license as provided in this chapter.

Amendments. The 2009 amendment deleted (b) and redesignated the subsequent subsection accordingly.

17-24-304. Expiration and renewal.

1. All collection agency licenses and collection agency employee licenses shall expire annually on June 30.
2. All licensees under this chapter shall apply for the renewal of their licenses, on forms to be prescribed by the State Board of Collection Agencies, on or before July 1 of the fiscal year for which the licenses are sought.
3. The board shall have the authority to require that the licensee's manager certify in writing that the requirement in § 17-24-310 has been met as a condition for renewal of the agency license.

History. Acts 1965, No. 145, § 7; 1979, No. 86, § 1; 1985, No. 829, § 2; 1985, No. 830, § 1; A.S.A. 1947, §§ 71-2007, 71-2018.

17-24-305. Fees — Disposition.

1. The State Board of Collection Agencies may charge an annual license fee not to exceed one hundred twenty-five dollars ($125) for licensing each collection agency and an annual fee of twenty dollars ($20.00) effective September 1, 2013, for registering each employee of the licensed collection agency who as an employee solicits, collects, or attempts to collect any delinquent account or accounts by telephone, mail, personal contact, or otherwise.
2. 1. All income from fees imposed under this section shall be distributed in the form of one (1) annual payment that is a percentage of the total funds available up to the maximum authorized under this subsection.
   2. However, if less than one hundred percent (100%) of the total allocation is available for distribution, all allocations listed in subdivisions (b)(3)(A)-(H) of this section shall be funded at a prorated percentage consistent with the available funds, not to exceed the maximum amounts listed in subdivisions (b)(3)(A)-(H) of this section.
   3. Beginning July 1, 2013, and each fiscal year thereafter, the board shall remit to:
      1. The Treasurer of State for the Division of Medical Services of the Department of Human Services, an amount not to exceed one hundred fifteen thousand dollars ($115,000) for deposit into a paying account as determined by the Chief Fiscal Officer of the State to be used in accordance with § 20-10-705;
      2. The University of Arkansas for Medical Sciences, an amount not to exceed six hundred thousand dollars ($600,000) for deposit into a financial institution in accordance with the policies of the University of Arkansas for Medical Sciences to be expended for the College of Pharmacy of the University of Arkansas for Medical Sciences and the College of Nursing of the University of Arkansas for Medical Sciences in accordance with § 6-64-417;
      3. Arkansas State University-Mountain Home, an amount not to exceed two hundred fifty thousand dollars ($250,000) for deposit into the Arkansas State University-Mountain Home Fund to be expended exclusively for the Arkansas State University-Mountain Home Practical Nursing Program;
      4. The University of Central Arkansas, an amount not to exceed one hundred thousand dollars ($100,000) for deposit into the University of Central Arkansas Fund to be expended exclusively for the University of Central Arkansas School of Nursing;
      5. Southern Arkansas University, an amount not to exceed one hundred thousand dollars ($100,000) for deposit into the Southern Arkansas University Fund to be expended exclusively for personal services and operating expenses of the Southern Arkansas University system;
      6. Henderson State University, an amount not to exceed one hundred thousand dollars ($100,000) for deposit into the Henderson State University Fund;
      7. Arkansas Tech University, an amount not to exceed one hundred thousand dollars ($100,000) for deposit into the Arkansas Tech University Fund exclusively for nursing programs; and
      8. Northwest Arkansas Community College, an amount not to exceed fifty thousand dollars ($50,000) for deposit into the Northwest Arkansas Community College Fund exclusively for nursing programs.
   4. Funds remaining after the distributions listed in subdivisions (b)(3)(A)-(H) of this section shall be deposited into a bank authorized to do business within this state and placed into the account of the board.

History. Acts 1965, No. 145, § 7; 1979, No. 86, § 1; 1985, No. 830, § 1; A.S.A. 1947, § 71-2007; Acts 1999, No. 1500, § 1; 2005, No. 2268, § 7; 2007, No. 1217, § 7; 2009, No. 1413, § 4; 2009, No. 1455, § 8; 2010, No. 281, § 4; 2011, No. 764, § 5; 2013, No. 1023, § 4; 2015, No. 1156, §§ 3, 4; 2019, No. 386, § 11; 2019, No. 489, § 4.

Amendments. The 2005 amendment rewrote (b).

The 2009 amendment by No. 1413 inserted (b)(1)(D), redesignated the subsequent subdivision accordingly, and substituted “(b)(1)(A)-(D)” for “(b)(1)(A)-(C)” in (b)(1)(E).

The 2009 amendment by No. 1455 substituted “registering” for “licensing” in (a).

The 2010 amendment added present (b)(1)(E) and redesignated former (b)(1)(E) as (b)(1)(F); and substituted “(b)(1)(A)-(E)” for “(b)(1)(A)-(D)” in (b)(1)(F).

The 2011 amendment inserted present (b)(1)(F) and redesignated the following subdivision accordingly.

The 2013 amendment substituted “twenty dollars ($20) effective September 1, 2013” for “fifteen dollars ($15.00)” in (a); and rewrote (b).

The 2015 amendment rewrote (b); and repealed former (c).

The 2019 amendment by No. 386, in (b)(4), inserted “a bank authorized to do business within this state and placed into”, and substituted “account of the board” for “State Board of Collection Agencies account in a bank authorized to do business in this state”.

The 2019 amendment by No. 489 added (b)(3)(G) and (H); updated internal references; and made a stylistic change.

17-24-306. Bond.

1. The State Board of Collection Agencies shall require each licensee to secure a surety bond in an amount not less than ten thousand dollars ($10,000) nor more than fifty thousand dollars ($50,000) for each location, with the security on the bond to be approved by the board.
2. The aggregate liability of the surety for all breaches of the conditions of the bond shall, in no event, exceed the amount of the bond. The surety shall have a right to cancel such bond upon giving thirty (30) days' notice to the board and thereafter shall be relieved of liability for any breach of condition occurring after the effective date of the cancellation.
3. The bond shall be made payable to the board.
4. The board may promulgate rules to:
   1. Disburse bond funds to claimants;
   2. If the bond proceeds are insufficient to satisfy all legitimate claims, distribute the funds pro rata among the claimants; or
   3. In the discretion of the board, require the sureties to deal directly with the claimants.

History. Acts 1965, No. 145, § 6; 1979, No. 179, § 1; A.S.A. 1947, § 71-2006; Acts 1989, No. 792, § 1; 1991, No. 126, § 4; 1999, No. 1500, § 2; 2009, No. 1455, § 9; 2013, No. 1023, § 5.

Amendments. The 2009 amendment, in (a), inserted “surety” and deleted the last sentence; deleted (b) and redesignated the subsequent subsections accordingly; subdivided (d), substituted “rules to” for “regulations under which it can” in its introductory language, and deleted “pursuant to regulations promulgated by the board” at the end of present (d)(3); and made related and minor stylistic changes.

The 2013 amendment, in (a), substituted “ten thousand dollars ($10,000)” for “five thousand dollars ($5,000)” and ”fifty thousand dollars ($50,000)” for “twenty-five thousand dollars ($25,000)”.

17-24-307. Grounds for revocation, suspension, or refusal.

The State Board of Collection Agencies shall have the authority to revoke, suspend, or refuse to issue a license for violation of this chapter, or upon receipt of evidence as follows:

1. False or misrepresented statements on application;
2. Sale or transfer of ownership of agency;
3. Aiding or abetting any unlicensed person to engage in business as a collection agency;
4. Publishing or posting, or causing to be published or posted, any list of debtors, commonly known as “deadbeat” lists;
5. Collecting or attempting to collect by the use of any methods contrary to the postal laws and regulations of the United States;
6. Having in his or her possession or making use of any badge, using a uniform of any law enforcement agency or any simulation thereof, or making any statements which might be construed as indicating an official connection with any federal, state, county, or city law enforcement agency, or any other governmental agency, while engaged in collection agency business;
7. Distributing any printed matter which is made to be similar or to resemble government forms or documents, or legal forms used in civil or criminal proceedings;
8. Advertising for sale or threatening to advertise for sale any claim as a means of endeavoring to enforce payment thereof, or agreeing to do so for the purpose of soliciting claims, except where the licensee has acquired claims as an assignee for the benefit of creditors or where the licensee is acting under the order of a court of competent jurisdiction;
9. Engaging in any unethical practices or resorting to any illegal means or methods of collection;
10. Using profanity, obscenity, or vulgarity while engaged in the collection of claims;
11. Addressing a letter to or telephoning a debtor at his or her place of employment unless a good-faith attempt has been made to contact the debtor at his or her usual place of abode by letter and the mail has not been returned and no answer has been received; or
12. Using violence or threats of physical violence while engaged in the collection of claims.

History. Acts 1965, No. 145, § 8; A.S.A. 1947, § 71-2008; Acts 2009, No. 1455, § 10; 2019, No. 990, § 25.

Amendments. The 2009 amendment substituted “Addressing a letter to or telephoning” for “No licensee shall address a letter to or telephone any” in (12).

The 2019 amendment deleted former (3).

17-24-308. Revocation, suspension, or refusal — Procedure.

1. 1. Upon the receipt of evidence of any violation, the State Board of Collection Agencies shall order a hearing to be held.
   2. All interested parties shall be apprised, at least twenty (20) days before the hearing, as to the time and place of the hearing.
   3. The board shall have authority to summon and examine witnesses, gather information by affidavit and deposition, and subpoena those business records pertinent to the charges, as to any alleged violator.
   4. Revocation, suspension, or refusal to issue shall be by order of the board.
2. Any party to the proceeding shall have the right to appeal from the order of the board to the Pulaski County Circuit Court which shall try the case. The appeal may be taken by filing a petition with the clerk of the court within thirty (30) days of the date of the decision of the board. The decision of the circuit court shall be appealable to the Supreme Court in the same manner as civil cases are appealed.
3. In the event that the holder of a license shall fail to secure a renewal thereof, or in the event of the suspension or revocation of the license by the board, and in the event that an appeal is taken to the courts as provided in this section, the holder of the license shall be allowed, during the period of the appeal, to operate the business of a collection agency as though no such action had been taken by the board.

History. Acts 1965, No. 145, § 4; A.S.A. 1947, § 71-2004; Acts 1999, No. 1500, § 3.

17-24-309. Collection charges — Limits.

1. No collection agency mentioned in § 17-24-101 shall charge as a collection charge or fee an amount in excess of fifty percent (50%) of the total amount actually collected on all accounts for any one (1) client, nor more than fifty percent (50%) of the total amount actually collected on any one (1) account, nor shall a minimum charge in excess of one dollar ($1.00) be made on any partially or totally collected account.
2. All contracts providing for a greater collection charge or fee or a greater minimum charge than provided in this section entered into between any creditor in this state and any collection agency covered by this chapter shall be void. The creditor shall have, in addition to all other remedies now or hereafter provided by law, a cause of action to recover all amounts collected by the collection agency on the creditor's account or accounts.

History. Acts 1969, No. 214, § 2; A.S.A. 1947, § 71-2011; Acts 2009, No. 1455, § 11.

Amendments. The 2009 amendment substituted “collection agency” for “person, partnership, association, or corporation” in three places; substituted “§ 17-24-103” for “§ 17-24-301” in (a); and made a minor stylistic change.

17-24-310. Annual notice to client of accounting requirement.

1. Each collection agency required to be licensed under this chapter shall, annually, within the month of April, give written notice to each client for whom it is collecting or attempting to collect that collection agencies licensed by the State of Arkansas are required by law to remit collected funds to the clients within the calendar month following the month of collection.
2. No such notice is required to a forwarder who is also a licensee of the State of Arkansas.

History. Acts 1985, No. 829, § 1; A.S.A. 1947, § 71-2017.

Subchapter 4 — Nonresident Collection Agencies

Effective Dates. Acts 1965, No. 145, §§ 13, 14: July 1, 1965. Emergency clause provided: “It having been found by the General Assembly of the State of Arkansas that there is a great need for regulation of collection agencies in this state due to undesirable methods of collection employed by some such agencies, and that the profession itself would be greatly improved by such regulation; therefore, this act being necessary for immediate preservation of the public peace, health and safety, an emergency is hereby declared to exist and the provisions of this act shall be in full force and effect from the date of its enactment.” Approved Mar. 9, 1965.

Acts 1969, No. 214, § 9: Mar. 10, 1969. Emergency clause provided: “It is hereby found and determined by the General Assembly that many nonresident persons, partnerships, associations and foreign corporations not authorized to do business in this state are taking accounts of Arkansas creditors for collection and that such persons, partnerships, associations and corporations are charging such creditors outrageous and unreasonable amounts for the collection of such accounts; that in order to challenge the unconscionable contracts entered into by such creditors and such nonresident persons, partnerships, associations and foreign corporations the creditors must go to the extra expense and inconvenience of traveling to another state, hiring an out-of-state attorney and presenting his cause of action in the courts of other states; that in order to permit Arkansas residents to bring such actions in Arkansas courts and in order to establish a reasonable limit on the fees charged by both resident and nonresident persons, partnerships, associations and corporations engaging in the business of collection of accounts, it is necessary that this act become effective immediately. Therefore, an emergency is hereby declared to exist and this act being necessary for the immediate preservation of the public peace, health and safety shall be in full force and effect from and after its passage and approval.”

17-24-401. “Long arm” jurisdiction.

Any nonresident person, partnership, association, or any foreign corporation not authorized to do business in this state whose sole business contact with this state is the soliciting of accounts in this state by mail, telephone, telegraph, or by other like means originating outside this state, or the taking or accepting for collection of any account or accounts in this state by such means, shall by such acts:

1. Subject himself or herself to the jurisdiction of the proper courts of this state under the procedure provided in §§ 17-24-403 and 17-24-404 on any cause of action arising out of or connected with the collection of any such account or accounts;
2. Be deemed to have consented to comply with the maximum collection charges or fees provided in § 17-24-309; and
3. Be deemed to have consented to and designated the Secretary of State to be the true and lawful attorney of the person, partnership, association, or corporation upon whom may be served all legal process in any action, suit, or proceeding in any court by any resident of this state arising out of or connected with the collection of any such account or accounts. Such acts shall be signification of its agreement that any legal process in any court action or suit so served shall be of the same legal force and validity as personal service of process in this state upon the person, partnership, association, or corporation. Service of process shall be made upon the Secretary of State pursuant to § 17-24-403.

History. Acts 1965, No. 145, § 1; 1969, No. 214, §§ 1, 3; A.S.A. 1947, §§ 71-2001, 71-2012; Acts 1997, No. 1213, § 3; 1999, No. 1500, § 4.

17-24-402. Motion to quash writ or set aside service.

Nothing contained in § 17-24-404 shall be construed to prevent a nonresident person, partnership, association, or any foreign corporation upon whom service of process is had as provided in § 17-24-403 from filing a motion to quash a writ or to set aside service made as provided in § 17-24-403 on the grounds that the person, partnership, association, or foreign corporation has not done or committed any of the acts in this state which give rise to such service of process.

History. Acts 1969, No. 214, § 6; A.S.A. 1947, § 71-2015.

17-24-403. Service of process.

1. Service of process in the action, suit, or proceeding in any court as authorized by § 17-24-401(3) shall be made by leaving three (3) copies in the office of the Secretary of State along with a notification that service is being effected pursuant to § 17-24-401, and by paying the Secretary of State the sum of twenty-five dollars ($25.00). A certificate by the Secretary of State showing service and attached to the copy of the process presented to him or her for that purpose shall be sufficient evidence of the service. Service upon the Secretary of State as attorney shall be service upon the principal.
2. The Secretary of State shall immediately mail one (1) copy of the court process to the defendant in the court proceeding by first class mail at the defendant's last known principal place of business, and shall keep a record of all process which shall show the day and hour of receipt. The Secretary of State shall file an affidavit showing compliance with this section in the court proceedings on or before the date the defendant is required to appear or respond, unless an extension of time is allowed by the court.
3. No plaintiff or complainant shall be entitled to a judgment or determination by default in any court proceeding in which process is served under this section until the expiration of forty-five (45) days from the date of filing of the affidavit of compliance.
4. Nothing contained in this section shall limit or abridge the right to serve any process, notice, order, pleading, or demand upon any person, partnership, association, or corporation in any other manner now or hereafter permitted by law.

History. Acts 1969, No. 214, § 3; A.S.A. 1947, § 71-2012; Acts 1999, No. 1500, § 5.

17-24-404. Security prerequisite to filing defense pleading — Exception — Postponement.

1. Before any nonresident person, partnership, association, or any foreign corporation upon whom service of process is had as provided by § 17-24-403 files or causes to be filed any pleading in any court action, suit, or proceeding instituted against a person, partnership, association, or corporation, he or she or it shall deposit with the clerk of the court in which the action, suit, or proceeding is pending cash or securities or bond with good and sufficient sureties to be approved by the court, in an amount to be fixed by the court sufficient to secure the payment of any final judgment which may be rendered in the court proceeding.
2. The court may in its discretion make an order dispensing with the deposit or bond when the person, partnership, association, or corporation makes a showing satisfactory to the court that it maintains in the State of Arkansas funds or securities, in trust or otherwise, sufficient and available to satisfy any final judgment which may be entered in the court action, suit, or proceeding.
3. In any action, suit, or proceeding in which service is made as provided in § 17-24-403, the court, in its discretion, may order any postponement as may be necessary to afford the defendant reasonable opportunity to comply with subsection (a) of this section and to defend any court action.

History. Acts 1969, No. 214, §§ 4, 5; A.S.A. 1947, §§ 71-2013, 71-2014.

Subchapter 5 — Arkansas Fair Debt Collection Practices Act

17-24-501. Title.

This subchapter shall be known and may be cited as the “Arkansas Fair Debt Collection Practices Act”.

History. Acts 2009, No. 1455, § 1.

17-24-502. Definitions.

As used in this subchapter:

1. “Communication” means the conveying of information regarding a debt directly or indirectly to a person;
2. “Consumer” means a natural person obligated or allegedly obligated to pay a debt;
3. 1. “Creditor” means a person:
      1. Who offers or extends credit, creating a debt; or
      2. To whom a debt is owed.
   2. “Creditor” does not include a person to the extent that he or she receives an assignment or transfer of a debt in default solely to facilitate collection of the debt for another;
4. “Debt” means an obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services that are the subject of the transaction are primarily for personal, family, or household purposes, whether or not the obligation has been reduced to judgment;
5. 1. “Debt collector” means a person who uses an instrumentality of interstate commerce or the mails in a business whose principal purpose is the collection of debts or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.
   2. Except as provided in subdivision (5)(D)(vi) of this section, “debt collector” includes a creditor who, in the process of collecting his or her own debts, uses a name other than his or her own that would indicate that a third person is collecting or attempting to collect the debts.
   3. As used in § 17-24-507(b)(6), “debt collector” includes a person who uses an instrumentality of interstate commerce or the mails in a business whose principal purpose is the enforcement of security interests.
   4. “Debt collector” does not include any:
      1. Officer or employee of a creditor while, in the name of the creditor, collecting debts for the creditor;
      2. Person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of the person is not the collection of debts;
      3. Officer or employee of the United States or a state to the extent that collecting or attempting to collect a debt is in the performance of his or her official duties;
      4. Person while serving or attempting to serve legal process on another person in connection with the judicial enforcement of a debt;
      5. Nonprofit organization that, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from the consumers and distributing the amounts to creditors; or
      6. Person collecting or attempting to collect a debt owed or due or asserted to be owed or due another to the extent the collection activity:
         1. Is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement;
         2. Concerns a debt that was originated by the person;
         3. Concerns a debt that was not in default at the time it was obtained by the person; or
         4. Concerns a debt obtained by the person as a secured party in a commercial credit transaction involving the creditor; and
6. “Location information” means:
   1. A consumer's place of abode and his or her telephone number at the consumer's place of abode; or
   2. The consumer's place of employment.

History. Acts 2009, No. 1455, § 1.

17-24-503. Acquisition of location information.

A debt collector communicating with a person other than the consumer to acquire location information about the consumer shall:

1. Identify himself or herself, state that he or she is confirming or correcting location information concerning the consumer, and only if expressly requested, identify his or her employer;
2. Not state that the consumer owes a debt;
3. Not communicate with the person more than one (1) time unless:
   1. Requested to do so by the person; or
   2. The debt collector reasonably believes that:
      1. The earlier response of the person is erroneous or incomplete; and
      2. The person now has correct or complete location information;
4. Not communicate by postcard;
5. Not use a language or symbol on a envelope or in the contents of a communication effected by the mails or telegram that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt; and
6. After the debt collector knows the consumer is represented by an attorney with regard to the subject debt and has knowledge of or can readily ascertain the attorney's name and address, not communicate with a person other than that attorney unless the attorney fails to respond to communication from the debt collector within a reasonable period of time.

History. Acts 2009, No. 1455, § 1.

17-24-504. Communication in connection with debt collection.

1. Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of a debt:
   1. 1. At an unusual time or place or a time or place known or which should be known to be inconvenient to the consumer.
      2. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8:00 a.m. and before 9:00 p.m. local time at the consumer's location;
   2. If the debt collector knows the consumer is represented by an attorney with respect to the debt and has knowledge of or can readily ascertain the attorney's name and address, unless:
      1. The attorney fails to respond within a reasonable period of time to a communication from the debt collector; or
      2. The attorney consents to direct communication with the consumer; or
   3. At the consumer's place of employment if the debt collector knows or has reason to know that the consumer's employer prohibits the consumer from receiving the communication.
2. Except as provided in § 17-24-503, without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate in connection with the collection of a debt with a person other than the consumer, his or her attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.
3. If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to the debt, except:
   1. To advise the consumer that the debt collector's further efforts are being terminated;
   2. To notify the consumer that the debt collector or creditor may invoke specified remedies that are ordinarily invoked by the debt collector or creditor; or
   3. 1. When applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.
      2. If the notice from the consumer is made by mail, notification is complete upon receipt.
4. As used in this section, “consumer” includes the consumer's spouse, parent if the consumer is a minor, guardian, executor, or administrator.

History. Acts 2009, No. 1455, § 1.

17-24-505. Harassment or abuse.

1. A debt collector may not engage in a conduct the natural consequence of which is to harass, oppress, or abuse a person in connection with the collection of a debt.
2. Without limiting the general application of subsection (a) of this section, the following conduct is a violation of this section:
   1. The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of a person;
   2. The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader;
   3. The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of 15 U.S.C. § 1681a(f) or 15 U.S.C. § 1681b(3), as they existed on January 1, 2009;
   4. The advertisement for sale of a debt to coerce payment of the debt;
   5. Causing a telephone to ring or engaging a person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass a person at the called number; or
   6. Except as provided in § 17-24-503, the placement of telephone calls without meaningful disclosure of the caller's identity.

History. Acts 2009, No. 1455, § 1.

17-24-506. False or misleading representations.

1. A debt collector may not use a false, deceptive, or misleading representation or means in connection with the collection of a debt.
2. Without limiting the general application of subsection (a) of this section, the following conduct is a violation of this section:
   1. The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or a state, including without limitation the use of a badge, uniform, or facsimile thereof;
   2. The false representation of:
      1. The character, amount, or legal status of a debt; or
      2. Any services rendered or compensation that may be lawfully received by a debt collector for the collection of a debt;
   3. The false representation or implication that an individual is an attorney or that a communication is from an attorney;
   4. The representation or implication that nonpayment of a debt will result in the arrest or imprisonment of a person or the seizure, garnishment, attachment, or sale of a property or wages of a person unless the action is lawful and the debt collector or creditor intends to take the action;
   5. The threat to take an action that cannot legally be taken or that is not intended to be taken;
   6. The false representation or implication that a sale, referral, or other transfer of an interest in a debt will cause the consumer to:
      1. Lose a claim or defense to payment of the debt; or
      2. Become subject to a practice prohibited by this subchapter;
   7. The false representation or implication that the consumer committed a crime or other conduct in order to disgrace the consumer;
   8. Communicating or threatening to communicate to a person credit information that is known or that should be known to be false, including without limitation the failure to communicate that a disputed debt is disputed;
   9. The use or distribution of a written communication that simulates or is falsely represented to be a document authorized, issued, or approved by a court, official, or agency of the United States or a state or that creates a false impression as to its source, authorization, or approval;
   10. The use of a false representation or deceptive means to collect or attempt to collect a debt or to obtain information concerning a consumer;
   11. The failure to disclose:
       1. In the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral in the initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose; and
       2. In subsequent communications, that the communication is from a debt collector, except that this subdivision (b)(11) does not apply to a formal pleading made in connection with a legal action;
   12. The false representation or implication that accounts have been turned over to innocent purchasers for value;
   13. The false representation or implication that documents are legal process;
   14. The use of a business, company, or organization name other than the true name of the debt collector's business, company, or organization;
   15. The false representation or implication that documents are not legal process forms or do not require action by the consumer; or
   16. The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by 15 U.S.C. § 1681a(f), as it existed on January 1, 2009.