23-110-305. Construction of racing plant — Issuance of permanent franchise.

23-110-305. Construction of racing plant — Issuance of permanent franchise. (a)(1)(A) If a majority of the qualified electors of the state voting on the question vote for authorizing the Arkansas Racing Commission to grant a franchise to conduct horse racing in the county, the corporation holding a temporary franchise shall, within ninety (90) days following the date of receipt of notification thereof from the commission as provided in § 23-110-304(d), acquire a site and commence the construction of buildings and facilities which it proposes to use in conducting horse racing meets. (B) Failure of the corporation to acquire a site and commence construction within the ninety-day period shall constitute a forfeit of the temporary franchise. (C) The commission shall cancel the temporary franchise of any holder of such a franchise, and the cancellation shall constitute a forfeit thereof by the corporation if the: (i) Holder of a temporary franchise acquires a site and commences construction within the ninety-day period but fails to complete construction and be open for business within one (1) year next following the end of the ninety-day period; (ii) Construction by the holder of a temporary franchise is not in substantial compliance with the plans and specifications theretofore filed with, and approved by, the commission; or (iii) Aggregate total of costs of acquisition of a site, construction of buildings and facilities, and purchase of equipment by the holder of a temporary franchise is less than three million dollars ($3,000,000). (2) However, nothing contained in this section shall be so construed as to prohibit mutual agreement on the part of the commission and the corporation to making such changes in the plans and specifications for construction as may be deemed necessary or desirable, but no changes may be agreed to which will have the effect of reducing the total aggregate cost of plant and equipment below three million dollars ($3,000,000). (b)(1) Upon completion of any plant, within the time, in the manner, and at the minimum cost as provided in subsection (a) of this section and upon the payment of a franchise fee in the amount of twenty-five thousand dollars ($25,000) to the commission by the holder of the temporary franchise, the commission shall issue its franchise in exchange for the temporary franchise held by the corporation. The corporation may then proceed to conduct horse racing meets in accordance with the provisions of this chapter or other applicable law. (2) The franchise shall thereafter be effective in the hands of the corporation unless and until terminated by operation of law, or sooner if terminated by the commission based upon the corporation's failure to comply with applicable horse racing laws or by the voluntary forfeiture of the franchise by the franchise holder.