What happens when the Arkansas AG receives a proposed ballot initiative with ambiguous language?

Plain-English summary

Barry Emigh, an initiative sponsor, submitted a popular name and ballot title for a proposed constitutional amendment to authorize the contracting and subcontracting of gambling, along with the sale and service of alcoholic beverages, plus other purposes. AG Leslie Rutledge rejected the submission under Ark. Code Ann. § 7-9-107, citing several fundamental ambiguities. The AG could not conduct a studied review of the proposal until the ambiguities were resolved.

The AG's certification role is statutorily required before a popular name and ballot title can be circulated for petition signatures. Rejection sends the sponsor back to the drafting board.

Currency note

This opinion was issued in 2016. Subsequent statutory amendments, court decisions, or later AG opinions may have changed the analysis. Treat this page as historical context, not current legal advice. Verify current law before relying on any specific rule, deadline, or remedy mentioned here.

Common questions

Q: Why does the AG review popular names and ballot titles?
A: Ark. Code Ann. § 7-9-107 requires AG certification before a sponsor can collect petition signatures. The AG checks whether the popular name and ballot title fairly describe the proposed measure and are not misleading. Ambiguity is a common ground for rejection.

Q: Can the sponsor try again?
A: Yes. Rejection is not final. The sponsor can revise the popular name and ballot title to address the AG's concerns and resubmit. Many initiatives go through multiple rounds of AG review.

Source

• Landing page: https://arkansasag.gov/divisions/opinions-foia/attorney-general-opinions-search/

Official summary

Request for review of popular name and ballot title of proposed constitutional amendment authorizing the contracting and subcontracting of gambling along with the sale and service of alcoholic beverages, and other purposes. RESPONSE: Rejected due to several fundamental ambiguities that must be resolved before this office can undertake a studied review of the proposal.

Original opinion text

Opinion No. 2016-133
December 27, 2016
Barry Emigh, Sponsor
1104 West Seventh Street
STATE OF ARKAN SAS
ATTORNEY GENERAL
LESUE RUTLEDGE
Hot Springs National Park, AR 71913-4225
Dear Mr. Emigh:
I am writing in response to your request for certification, pursuant to Ark. Code Ann. § 7-9-107 (Supp. 2015), of the popular name and ballot title for a proposed initiated measure. At the outset, I wish to make clear to you that the decision to certify or reject a popular name and ballot title is in no way a reflection of my view of the merits of a particular proposal. I am not authorized to, and do not, consider the merits of the measure when making my determination to certify or reject a popular name and ballot title. The Attorney General is required, pursuant to Ark. Code Ann. § 7-9-107, to certify the popular name and ballot title of all proposed initiative and referendum acts or amendments before the petitions are circulated for signature. The law provides that the Attorney General may, if practicable, substitute and certify a more suitable and correct popular name and ballot title. Or, if the proposed popular name and ballot title are sufficiently misleading, the Attorney General may reject the entire petition. Section 7-9-107 neither requires nor authorizes this office to make legal determinations concerning the merits of the act or amendment, or concerning the likelihood that it will accomplish its stated objective. In addition, consistent with Arkansas Supreme Court precedent, unless the measure is "clearly contrary to 323 CENTER STREET, SUITE 200 • LITTLE ROCK, ARKANSAS 72201 TELEPHONE (501) 682-2007 • FAX (501) 682-8084 ARKANSASAG.GOV Barry Emigh, Sponsor Opinion No. 2016-133 Page 2 law," 1 this office will not require that a measure's proponents acknowledge in the ballot title any possible constitutional infirmities.2 Consequently, this review has been limited primarily to a determination, pursuant to the guidelines that have been set forth by the Arkansas Supreme Court, discussed below, of whether the popular name and ballot title you have submitted accurately and impartially summarize the provisions of your proposal. The purpose of my review and certification is to ensure that the popular name and ballot title honestly, intelligibly, and fairly set forth the purpose of the proposed amendment or act. 3 REQUEST You have requested certification, pursuant to Ark. Code Ann. § 7-9-107, of the following popular name and ballot title for a proposed constitutional amendment: Popular Name An Amendment to the Arkansas Constitution Authorizing the Contracting and Subcontracting of Gambling with the Sale and Service of Alcoholic Beverages as a Local Ballot Question at any General Election to be Contracted by Two Business
[sic] to be Licensed in the State One of Which Shall be 'F airdeal Holdings' Being a Person Doing Business Under an Assumed Name the Other to be Sold by the Arkansas Racing Commission. Ballot Title Be it enacted by the people of the State of Arkansas. An Amendment to the Arkansas Constitution. Upon passage of this amendment 'gambling' as herein defined as pay to play games of 1 See Kurrus v. Priest, 342 Ark. 434, 445, 29 S.W.3d 669, 675 (2000); Donovan v. Priest, 326 Ark. 353, 359, 931 S.W.2d 119, 121 (1996); Plugge v. McCuen, 31 O Ark. 654, 841 S.W.2d 139 (1992). 2 As part of my review, however, I may address constitutional concerns for consideration by the measure's proponents. 3 See Arkansas Women's Political Caucus v. Riviere, 283 Ark. 463, 466, 677 S.W.2d 846 (1984). Barry Emigh, Sponsor Opinion No. 2016-133 Page 3 chance with a winner and a loser by passage of a local ballot option within those qualified jurisdictions shall be legal within those jurisdictions. Any and all criminal offenses relating to 'gambling' shall be waived for this purpose. In lieu of Article 5 of the Arkansas Constitution whenever one hundred (100) or more qualified electors of any county where the sale of alcoholic beverages is permitted, and or one hundred ( 100) or more qualified electors in any city with a population greater than twenty-five (25,000) [sic] people where the sale of alcoholic beverages is permitted, shall file a petition with the county or city clerk within their respective jurisdiction asking that "gambling' [sic] with the sale and service of 'alcoholic beverages"
[sic] be permitted the 'question' shall be submitted to the qualified electors at the general election. The result of the vote upon a city or county 'question' shall be canvassed and declared by the county election commissioners. The results shall be conclusive unless attacked in the courts within thirty (30) days. After thirty (30) days of a vote being declared in favor or "gambling' [sic] with the sale and service of' alcoholic beverages" [sic] without court contest both 'gambling contractors' shall be authorized to contract a 'business' to operate or subcontract "gambling' [sic] with the sale and service of 'alcoholic beverages" [sic] which may be operated twenty four (24) hours a day, seven (7) days a week, at the discretion of the 'gambling operator' within one 'structure' by each business contracted within the jurisdiction of that city or county. Upon passage of this amendment the General Assembly shall be required to authorized [sic] and fund the Arkansas Racing Commission to do as follows: To sell one 'license' to a business to contract 'gambling' which may be sold by public auction or submission of appliction
[sic] by lottery or highest bidder or other means to be determined by the General Assembly; required to 'license' 'Fairdeal Holdings' being a person doing business under an assumed name to contract 'gambling'; allow the 'license' to contract 'gambling' be transferable to another 'business'; allow the contracts between a 'gambling contractor' and 'gambling operator' be transferale [sic] to another 'business'; pro hi bit any 'business' and person( s) connected to a business by conviction of a criminal act greater than a misdeameanor [sic] from contracting, subcontracting, or operating 'gambling' to unclude [sic] the sale and service of 'alcoholic beverages'; prohibit the employment of any person by a gambling contractor, gambling operator, and or subcontractor by conviction of Barry Emigh, Sponsor Opinion No. 2016-133 Page 4 a criminal act greater than a misdeameanor [sic]; prohibit any business or person employed by a 'gambling contractor' from contracting 'gambling'; to prohibit any monopoly of 'gambling'; require a full and complete copy of any contract between the 'gambling contractor, gambling operator' and 'subcontractor' with a list of employees and persons connected to the 'business' be submitted to the Arkansas Racing Commission for validation. To regulate gambling in any manner to exclude any limit on the number of pay to play games of chance with a winner and loser which may be operated by a 'gambling operator' other than for safety purposes; any and all state and local laws, rules, regulations, taxes, licenses, fees and permits on the structure and equipment used to operate "gambling' [sic] to include the sale and service of 'alcoholic beverages" [sic] not provided in this amendment shall apply. Any and all laws, rules, and regulations on the sale and service of 'alcoholic beverages' not provided in this amendment shall apply. The 'gambling contractor' in no manner shall be held civily [sic] or criminally liable for the actions of a 'gambling operator' and or 'subcontractor' which may result in injury, loss of life, or damage. The General Assembly by a two third vote or roll call of all its members in each house shall be empowered to do as follows: tax the 'gross income' from gambling to include but not limited to, the collection and distribution of any tax on the 'gross income' from gambling to any city or county where gambling is operated to include a county where gambling is operated in a city within that county; to tax any winnings won by any person. The General Assembly shall be empowered and required to enact any and all laws, rules, regulations and to authorize any state and or local, agency or agencies to do as is necessary to impliment [sic] this amendment. Upon passage of this amendment the voters are aware, and acknowledge, the risk of gambling and alcohol addiction. 'Gambling' means any pay to play game of chance with a winner and loser to include, but not limited to, cards, dice, roulette wheels used in any way and slot machines of any kind by any name permitted under federal law played by a gambling operator and or subcontractor shall be legal within the jurisdiction of a city or county with ballot approval of the electors as contracted by a gambling contractor licensed by the Arkansas Racing Commission. 'Alcoholic beverage' means the sale and service of alcoholic beverages of any kind by any name by a gambling operator and or subcontractor shall Barry Emigh, Sponsor Opinion No. 2016-133 Page 5 be legal within the jurisdiction of a city or county with ballot approval of the electors as contracted by a gambling contractor licensed by the Arkansas Racing Commission. "Gambling' [sic] with the sale and service of 'alcoholic beverages" [sic] means the licensed sale and service of alcoholic beverages of any kind by any name by a gambling operator and or subcontractor during the time gambling is operated within within [sic] the jurisdiction of a city or county with ballot approval of the electors as contracted by a gambling contractor licensed by the Arkansas Racing Commission. 'License' means the authorization from the Arkansas Racing Commission for a business to contract gambling by which authorizes the sale and service of alcoholic beverages by the Alcoholic Beverage Control Board. 'Business' means any person(s), business, or corporation of any kind authorized by the Secretary of State's office to conduct business in the State not prohibited by state and or federal laws to operate gambling and or to sell and serve alcoholic beverages. Fairfeal Holdings' [sic] means a person doing business under an assumed name as filed with the Garland County Clerk's office in the State of Arkansas certificate number 415 5. 'One Structure' means any building, or any kind, of any size, with any number of floors, and or, additions attached to the building to include any structure of any kind, of any size, on water with enclosed passage ways attached to a building to be considered as a single structure. 'Gross income' means the amount of money earned after any, and all, winnings are paid as a loss by the gambling operator. 'Gambling contractor' means either or both business [sic] licensed by the Arkansas Racing Commission to contract a business to operate gambling with the sale and service of alcoholic beverages which may be operated twenty four (24) hours a day, seven (7) days a week, within 'one structure' by a gambling operator within the jurisdiction of a city and or county. 'Gambling operator'. means the business contracted with a licensed gambling contractor to operate gambling with the sale and service of alcoholic beverages which may be operated twenty four (24) hours a day, seven (7) days a week, within one structure within the jurisdiction of a city and or county. 'Subcontractor' means any business contracted by a gambling contractor to operate any part or whole of the gambling operation to include, but not limited to, security, operation and maintenance of gambling equipment, cleaning, and alcoholic beverage sales and service. 'Question' means the specific issue of Barry Emigh, Sponsor Opinion No. 2016-133 Page 6 "gambling' [sic] with the sale and service of 'alcoholic beverages"
[sic] requiring the consent of the qualified electorate within a
specified jurisdiction. The provisions of the amendment shall be in lieu of Article 5 of the Arkansas Constitution related specifically to a local ballot on the question of "gambling' [sic] with the sale and service of 'alcoholic [sic] beverages and in no manner is intended to deprive the qualified electorate of their voting rights. The provisions of this amendment are severable, and if any should be held invalid, the remainder shall stand. The provisions of this amendment are self executing, and all its provisions shall be treated as mandatory, but laws may be enacted to facilitate its operation. All laws and constitutional provisuons [sic] which conflict with this amendment are repealed to the extent they conflict with this amendment. The provisions of this amendment should be interpreted liberally with broad scope. The provisions of this amendment shall take effect on January 1st [sic], 2019. RESPONSE I am unable to proceed with a substantive review of your submission and again must reject your proposed popular name and ballot title for your proposed constitutional amendment to permit gambling in connection with the provision of alcohol in Arkansas. As with your previous submissions, and as a threshold matter, there remain several fundamental ambiguities that must be resolved before I can undertake a studied review of your proposal. First, in your previous submissions, you included language stating that your proposed amendment was to be self-executing, but each submission also required the General Assembly to enact laws to implement your amendment. In my opinions regarding your previous submissions,4 I explained to you that your submissions were flawed on that point because a document cannot be considered self-executing if it requires anything additional, such as subsequent legislation, to implement it or make it binding. I also told you that this problem would have to be cured before any popular name and ballot title could be approved. Your proposed amendment now states that "[t]he provisions of this Amendment shall be self executing [sic], and all its provisions shall be treated as mandatory, but laws may be enacted to facilitate its operation." This final clause was not 4 Ops. Att'y Gen. 2016-109, 2016-099. Barry Emigh, Sponsor Opinion No. 2016-133 Page 7 contained in your previous submissions, but nevertheless it does not work to remedy the fundamental problem. When a proposal purports to be self-executing, as yours does, such that the General Assembly will have no authority or opportunity to define words used in the proposal and otherwise clarify the rights and obligations affected by adoption of the proposal, it becomes necessary and appropriate to consider whether voters will understand and appreciate the proposal as it is presented.5 I appreciate that you have substantially changed your proposed measure by adding more detail as to how it would work. But in my opinion, this has only worsened the "self-executing" problem with your proposal by adding considerably more ambiguities, more than I can list here. With your proposed amendment being self- executing and with its provisions being mandatory, no legislative clarification could be forthcoming.6 I believe the Arkansas Supreme Court would have deep concerns about voters' ability to fully understand and appreciate the issues presented in your proposed amendment. 7 As the Court has stated: The voter should not have to be well versed in legal interpretation in order to decipher what is meant in a proposed constitutional amendment. Placing the voter in a position of either having to be an expert in the [given] subject ... or having to guess as to the effect his or her vote would have is impermissible. This is precisely the dire straits in which the voter is placed by the uncertain language contained in this measure. 8 Another baseline problem with your proposed constitutional amendment is the need for a clearer understanding of the "contracting" process you attempt to set forth. It will be critical to the sufficiency of a ballot title for your measure that voters have a very clear understanding of this process, and the rights and 5 See Op. Att'y Gen. 2010-033. 6 I will note, however, that your proposal gives the General Assembly the authority and requirement "to enact any and all laws, rules, regulations ... as is necessary to implement this amendment." This only adds to the ambiguous nature of your proposal's "self-executing" assertion. 7 See Op. Att'y Gen. 2015-106. 8 Kurrus v. Priest, 342 Ark. 434, 444, 29 S.W.3d 669, 674 (2000) (citing Dust v. Riviere, 277 Ark. 1, 638 S.W.2d 663 (1982)) (emphasis added). Barry Emigh, Sponsor Opinion No. 2016-133 Page 8 privileges in connection therewith. But several fundamental ambiguities in the text in this regard prevent me from undertaking a more thorough review of the measure at this time. For example, it is not exactly clear whether this "doing business as" entity called "Fairdeal Holdings" is guaranteed to be a "gambling contractor"-a term that itself is not clearly defined, due in part to several confusing references to "either or both businesses" and "that business." In addition, I informed you that your previous submissions contained many grammatical errors in spelling, capitalization, syntax, and punctuation that, if left uncorrected, created considerable ambiguities in the text of your measure and would make it impossible for me to perform my statutory mandate with respect to your proposal. 9 In both opinions, I strongly encouraged you to seek the advice or assistance of someone experienced in drafting legislation, editing legal documents, or both. I reiterate that encouragement to you again. My office, in the certification of ballot titles and popular names, does not address the merits, philosophy, or ideology of proposed measures. I have no constitutional role in the shaping or drafting of such measures. My statutory mandate is embodied only in Ark. Code Ann. § 7-9-107, and my duty is to the electorate, a duty I take very seriously. And based on what has been submitted, my statutory duty is to reject your proposed popular name and ballot title. Sincerely,
/-~- c //;;>..L"fa
LESLIE RUTLEDGE
Attorney General
Enclosure
9 Id. Popular Name
AN AMENDMENT TO THE ARKANSAS CONSTITUTION AUTHORIZING THE CONTRACTING AND SUBCONTRACTING OF GAMBLING WITH THE SALE AND SERVICE OF ALCOHOLIC BEVERAGES AS A LOCAL BALLOT QUESTION AT ANY GENERAL ELECTION TO BE CONTRACTED BY TWO BUSINESS TO BE LICENSED IN THE STATE ONE OF WHICH SHALL BE 'FAIRDEAL HOLDINGS' BEING A PERSON DOING BUSINESS UNDER AN ASSUMED NAME THE OTHER TO BE SOLD BY THE ARKANSAS RACING COMMISSION. Ballot Title BE IT ENACTED BY THE PEOPLE OF THE STATE OF ARKANSAS. AN AMENDMENT TO THE ARKANSAS CONSTITUTION. UPON PASSAGE OF THIS AMENDMENT 'GAMBLING' AS HEREIN DEFINED AS PAY TO PLAY GAMES OF CHANCE WITH A WINNER AND A LOSER BY PASSAGE OF A LOCAL BALLOT OPTION WITHIN THOSE QUALIFIED JURIDICTIONS SHALL BE LEGAL WITHIN THOSE JURISDICTIONS. ANY AND ALL CRIMINAL OFFENSES RELATING TO 'GAMBLING' SHALL BE WAIVED FOR THIS PURPOSE. IN LIEU OF ARTICLE 5 OF THE ARKANSAS CONSTITUTION WHENEVER ONE HUNDRED (100) OR MORE QUALIFIED ELECTORS OF ANY COUNTY WHERE THE SALE OF ALCOHOLIC BEVERAGES IS PERMITIED, AND OR ONE HUNDRED (100) OR MORE QUALIFIED ELECTORS IN ANY CITY WITH A POPULATION GREATER THAN TWENTY FIVE (25,000) PEOPLE WHERE THE SALE OF ALCOHOLIC BEVERAGES IS PERMITIED, SHALL FILE A PETITION WITH THE COUNTY OR CITY CLERK WITHIN THEIR RESPECTIVE JURISDICTION ASKING THAT "GAMBLING' WITH THE SALE AND SERVICE OF 'ALCOHOLIC BEVERAGES" BE PERMITIED THE 'QUESTION' SHALL BE SUBMITIED TO THE QUALIFIED ELECTORS AT THE GENERAL ELECTION. THE RESULT OF THE VOTE UPON A CITY OR COUNTY 'QUESTION' SHALL BE CANVASSED AND DECLARED BY THE COUNTY ELECTION COMMISSIONERS. THE RESULTS SHALL BE CONCLUSIVE UNLESS ATTACKED IN THE COURTS WITHIN THIRTY (30) DAYS. AFTER THIRTY (30) DAYS OF A VOTE BEING DECLARED IN FAVOR OF "GAMBLING' WITH THE SALE AND SERVICE OF 'ALCOHOLIC BEVERAGES" WITHOUT COURT CONTEST BOTH 'GAMBLING CONTRACTORS' SHALL BE AUTHORIZED TO CONTRACT A 'BUSINESS' TO OPERATE OR SUBCONTRACT "GAMBLING' WITH THE SALE AND SERVICE OF 'ALCOHOLIC BEVERAGES" WHICH MAY BE OPERATED TWEN;rY FOUR (24) HOURS A DAY, SEVEN (7) DAYS A WEEK, ATTHE DISCRETION OF THE 'GAMBLING OPERATOR' WITHIN ONE 'STRUCTURE' BY EACH BUSINESS CONTRACTED WITHIN THE JURISDICTION OF THAT CITY OR COUNTY. UPON PASSAGE OF THIS AMENDMENT THE GENERAL ASSEMBLY SHALL BE REQUIRED TO AUTHORIZED AND FUND THE ARKANSAS RACING COMMISSION TO DO AS FOLLOWS: TO SELL ONE 'LICENSE' TO A BUSINESS TO CONTRACT 'GAMBLING' WHICH MAY BE SOLD BY PUBLIC AUCTION OR SUBMISSION OFAPPLICTION BY LOTIERY OR HIGHEST BIDDER OR OTHER MEANS TO BE DETERMINED BY THE GENERAL ASSEMBLY; REQUIRED TO 'LICENSE' 'FAIRDEAL HOLDINGS' BEING A PERSON DOING BUSINESS UNDER AN ASSUMED NAME TO CONTRACT 'GAMBLING'; ALLOW THE 'LICENSE' TO CONTRACT 'GAMBLING' BE TRANSFERABLE TO ANOTHER 'BUSINESS'; ALLOW THE CONTRACTS BETWEEN A 'GAMBLING CONTRACTOR' AND 'GAMBLING OPERATOR' BE TRANSFERALE TO ANOTHER 'BUSINESS'; PROHIBIT ANY 'BUSINESS' AND PERSON(S) CONNECTED TO A BUSINESS BY CONVICTION OF A CRIMINAL ACT GREATER THAN A MISDEAMEANOR FROM CONTRACTING, SUBCONTRACTING, OR OPERATING 'GAMBLING' TO UNCLUDE THE SALE AND SERVICE OF 'ALCOHOLIC BEVERAGES'; PROHIBIT THE EMPLOYMENT OF ANY PERSON BY A GAMBLING CONTRACTOR, GAMBLING OPERATOR, AND OR SUBCONTRACTOR BY CONVICTION OF A CRIMINAL ACT GREATER THAN A MISDEAMEANOR; PROHIBIT ANY BUSINESS OR PERSON EMPLOYED BY A 'GAMBLING CONTRACTOR' FROM CONTRACTING 'GAMBLING'; TO PROHIBIT ANY MONOPOLY OF 'GAMBLING'; REQUIRE A FULL AND COMPLETE COPY OF ANY CONTRACT BETWEEN THE 'GAMBLING CONTRACTOR, GAMBLING OPERATOR' AND 'SUBCONTRACTOR' WITH A LIST OF EMPLOYEES AND PERSONS CONNECTED TO THE 'BUSINESS' BE SUBMITTED TO THE ARKANSAS RACING COMMISSION FOR VALIDATION. TO REGULATE GAMBLING IN ANY MANNER TO EXCLUDE ANY LIMIT ON THE NUMBER OF PAY TO PLAY GAMES OF CHANCE WITH A WINNER AND LOSER WHICH MAY BE OPERATED BY A 'GAMBLING OPERATOR' OTHER THAN FOR SAFETY PURPOSES; ANY AND ALL STATE AND LOCAL LAWS, R,ULES, REGULATIONS, TAXES, LICENSES, FEES AND PERMITS ON THE STRUCTURE AND EQUIPMENT USED TO OPERATE "GAMBLING' TO INCLUDE THE SALE AND SERVICE OF 'ALCOHOLIC BEVERAGES" NOT PROVIDED IN THIS AMENDMENT SHALL APPLY. ANY AND ALL LAWS, RULES, AND REGULATIONS ON THE SALE AND SERVICE OF 'ALCOHOLIC BEVERAGES' NOT PROVIDED IN THIS AMENDMENT SHALL APPLY. THE 'GAMBLING CONTRACTOR' IN NO MANNER SHALL BE HELD CIVILY OR CRIMINALLY LIABLE FOR THE ACTIONS OF A 'GAMBLING OPERATOR' AND OR 'SUBCONTRACTOR' WHICH MAY RESULT IN INJURY, LOSS OF LIFE, OR DAMAGE. THE GENERAL ASSEMBLY BY A TWO THIRD VOTE OR ROLL CALL OF ALL ITS MEMBERS IN EACH HOUSE SHALL BE EMPOWERED TO DO AS FOLLOWS: TAX THE 'GROSS INCOME' FROM GAMBLING TO INCLUDE, BUT NOT LIMITED TO, THE COLLECTION AND DISTRIBUTION OF ANY TAX ON THE 'GROSS INCOME' FROM GAMBLING TO ANY CITY OR COUNTY WHERE GAMBLING IS OPERATED TO INCLUDE A COUNTY WHERE GAMBLING IS OPERATED IN A CITY WITHIN THAT COUNTY; TO TAX ANY WINNINGS WON BY ANY PERSON. THE GENERAL ASSEMBLY SHALL BE EMPOWERED AND REQUIRED TO ENACT ANY AND ALL LAWS, RULES, REGULATIONS AND TO AUTHORIZE ANY STATE AND OR LOCAL, AGENCY OR AGENCIES TO DO AS IS NECESSARY TO IMPLIMEMTTHIS AMENDMENT. UPON PASSAGE OF THIS AMENDMENTTHE VOTERS ARE AWARE, AND ACKNOWLEDGE, THE RISK OF GAMBLING AND ALCOHOL ADDICTION. 'GAMBLING' MEANS ANY PAY TO PLAY GAME OF CHANCE WITH A WINNER AND LOSER TO INCLUDE, BUT NOT LIMITED TO, CARDS, DICE, ROULETIE WHEELS USED IN ANY WAY AND SLOT MACHINES OF ANY KIND BY ANY NAME PERMITIED UNDER FEDERAL LAW PLAYED BY A GAMBLING OPERATOR AND OR SUBCONTRACTOR SHALL BE LEGAL WITHIN THE JURISDICTION OF A CITY OR COUNTY WITH BALLOT APPROVAL OF THE ELECTORS AS CONTRACTED BY A GAMBLING CONTRACTOR LICENSED BY THE ARKANSAS RACING COMMISSION. 'ALCOHOLIC BEVERAGE' MEANS THE SALE AND SERVICE OF ALCOHOLIC BEVERAGES OF ANY KIND BY ANY NAME BY A GAMBLING OPERATOR AND OR SUBCONTRACTOR SHALL BE LEGAL WITHIN THE JURISDICTION OF A CITY OR COUNTY WITH BALLOT APPROVAL OF THE ELECTORS AS CONTRACTED BY A GAMBLING CONTRACTOR LICENSED BY THE ARKANSAS RACING COMMISSION. "GAMBLING' WITH THE SALE AND SERVICE OF 'ALCOHOLIC BEVERAGES" MEANS THE LICENSED SALE AND SERVICE OF ALCOHOLIC BEVERAGES OF ANY KIND BY ANY NAME BY A GAMBLING OPERATOR AND OR SUBCONTRACTOR DURING THE TIME GAMBLING IS OPERATED WITHIN WITHIN THE JURISDICTION OF A CITY OR COUNTY WITH BALLOT APPROVAL OF THE ELECTORS AS CONTRACTED BY A GAMBLING CONTRACTOR LICENSED BY THE ARKANSAS RACING COMMISSION. 'LICENSE' MEANS THE AUTHORIZATION FROM THE ARKANSAS RACING COMMISSION FOR A BUSINESS TO CONTRACT GAMBLING BY WHICH AUTHORIZES THE SALE AND SERVICE OF ALCOHOLIC BEVERAGES BY THE ALCOHOLIC BEVERAGE CONTROL BOARD. 'BUSINESS' MEANS ANY PERSON(S), BUSINESS, OR CORPORATION OF ANY KIND AUTHORIZED BY THE SECRETARY OF STATE'S OFFICE TO CONDUCT BUSINESS IN THE STATE NOT PROHIBITED BY STATE AND OR FEDERAL LAWS TO OPERATE GAMBLING AND OR TO SELL AND SERVE ALCOHOLIC BEVERAGES. FAIRFEAL HOLDINGS' MEANS A PERSON DOING BUSINESS UNDER AN ASSUMED NAME AS FILED WITH THE GARLAND COUNTY CLERK'S OFFICE IN THE STATE OF ARKANSAS CERTIFICATE NUMBER 4155. 'ONE STRUCTURE' MEANS ANY BUILDING, OF ANY KIND, OF ANY SIZE, WITH ANY NUMBER OF FLOORS, AND OR, ADDITIONS ATIACHED TO THE BUILDING TO INCLUDE ANY STRUCTURE OF ANY KIND, OF ANY SIZE, ON WATER WITH ENCLOSED PASSAGE WAYS ATIACHED TO A BUILDING TO BE CONSIDERED A SINGLE STRUCTURE. 'GROSS INCOME' MEANS THE AMOUNT OF MONEY EARNED AFTER ANY, AND ALL, WINNINGS ARE PAID AS A LOSS BY THE GAMBLING OPERATOR. 'GAMBLING CONTRACTOR' MEANS EITHER OR BOTH BUSINESS LICENSED BY THE ARKANSAS RACING COMMISSION TO CONTRACT A BUSINESS TO OPERATE GAMBLING WITH THE SALE AND SERVICE OF ALCOHOLIC BEVERAGES WHICH MAY BE OPERATED TWENTY FOUR (24) HOURS A DAY, SEVEN (7) DAYS A WEEK, WITHIN 'ONE STRUCTURE' BY A GAMBLING OPERATOR WITHIN THE JURISDICTION OF A CITY AND OR COUNTY. 'GAMBLING OPERATOR' MEANS THE BUSINESS CONTRACTED WITH A LICENSED GAMBLING CONTRACTOR TO OPERATE GAMBLING WITH THE SALE AND SERVICE OF ALCOHOLIC BEVERAGES WHICH MAY BE OPERATED TWENTY FOUR (24) HOURS A DAY, SEVEN (7) DAYS A WEEK, WITHIN ONE STRUCTURE WITHIN THE JURISDICTION OF A CITY AND OR COUNTY. 'SUBCONTRACTOR' MEANS ANY BUSINESS CONTRACTED BY A GAMBLING CONTRACTOR TO OPERATE ANY PART OR WHOLE OF THE GAMBLING OPERATION TO INCLUDE, BUT NOT LIMITED TO, SECURITY, OPERATION AND MAINTENANCE OF GAMBLING EQUIPMENT, CLEANING, AND ALCOHOLIC BEVERAGE SALES AND SERVICE. 'QUESTION' MEANS THE SPECIFIC ISSUE OF "GAMBLING' WITH THE SALE AND SERVICE OF 'ALCOHOLUC BEVERAGES" REQUIRING THE CONSENT OF THE QUALIFIED ELECTORATE WITHIN A SPECIFIED JURISDICTION. THE PROVISIONS OF THIS AMENDMENT SHALL BE IN LIEU OF ARTICLE 5 OF THE ARKANSAS CONSTITUTION RELATED SPECIFICALLY TO A LOCAL BALLOT ON THE QUESTION OF "GAMBLING' WITH THE SALE AND SERVICE OF 'ALCOHOLIC BEVERAGES AND IN NO MANNER IS INTENDED TO DEPRIVE THE QUALIFIED ELECTORATE OF THEIR VOTING RIGHTS. THE PROVISIONS OF THIS AMENDMENT ARE SEVERABLE, AND IF ANY SHOULD BE HELD INVALID, THE REMAINDER SHALL STAND. THE PROVISIONS OF THIS AMENDMENT ARE SELF EXECUTING, AND ALL ITS PROVISIONS SHALL BE TREATED AS MANDATORY, BUT LAWS MAY BE ENACTED TO FACILITATE ITS OPERATION. ALL LAWS AND CONSTITUTIONAL PROVISUONS WHICH CONFLICT WITH THIS AMENDMENT ARE REPEALED TO THE EXTENT THEY CONFLICT WITH THIS AMENDMENT. THE PROVISIONS OF THIS AMENDMENT SHOULD BE INTERPRETED LIBERALLY WITH BROAD SCOPE. THE PROVISIONS OF THIS AMENDMENT SHALL TAKE EFFECT ON JANUARY lST, 2019. Be it enacted by the people of the State of Arkansas. An Amendment to the Akansas Constitution. Section 1. Legalization of Gambling as a Local Ballot Question.

1. Upon the effective date of this Amendment 'gambling' as defined herein as pay to play games of chance with a
   winner and a loser upon passage as a local ballot 'question' if not contested within those qualified jurisdictions as provided in this Amendment shall be legal in the State of Arkansas by contract between a licensed 'gambling contractor' and a 'gambling operator' within those jurisdictions.
2. Any and all criminal offenses relating to 'gambling' shall be waived for the purpose of this Amendment to
   include, but not limited to, 5-66-103, 108 et seq. 5-66-110, 55-66-112 on gambling houses, gambling devices, financing, betting, search warrants, buildings and vessels, and card games. Section 2. Local Elections.
3. In lieu of Article 5 of the Arkansas Constitution.
   {a). After the effective date of this Amendment whenever one hundred (100) or more electors of any county where the sale of 'alcoholic beverages' is permitted by state and local laws, and or one hundred (100) or more electors of any city with a population greater than twenty five thousand (25,000) people where the sale of 'alcoholic beverages' is permitted by state and local laws, shall file a petition with the city or county clerk within their respective jurisdiction asking that "gambling' with the sale and service of 'alcoholic beverages" be permitted within that jurisdiction the 'question' shall be submitted to the qualified electors within the respective jurisdiction at a general election. (b). The petition must be filed with the city or county clerk within the respective jurisdiction no earlier than one hundred and twenty (120) days prior to nor later than thirty {30) days prior to the general election at which it will be submitted to the voters. (c). The petition shall substantially read as follows: "Be it petitioned by the people of (name of citv, in the county of name ofcountv), or (name of county), as qualified electors within this jurisdiction by our signatures as signed hereto petition the clerk to place on the general election ballot the question of gambling with the sale and service of alcoholic beverages which may be operated twenty four (24) hours a day, seven (7) days a week, within this jurisdiction."
   {d). The petition shall have the names of each elector clearly printed in a legible manner, address as registered to vote, date of birth, date of signing, and their signature with the notarized signature of the canvasser as the witness to the elector's signature. (e). The city or county clerk within that juridiction shall be required to canvass and declare the signatures as valid qualified electors within that jurisdiction within five (5) working days of receipt. (f). If the number of qualified electors on a petition is found to be insufficient the petition shall be returned to the petitioner. (fa). The petitioner within the time allowed shall be permitted to resubmit the petition with additional electors to meet the requirement. (g). Upon declaration of a valid petition of qualified electors by the city or county clerk within the respective jurisdiction the clerk shall be required to submit the ballot 'question' to the County Election Board to be placed on the general election ballot. (h). The county election commissioners shall be required to place the 'question' of "gambling' with the sale and service of 'alcoholic beverages" on the general election ballot for the electors within the respective jurisdiction of that city or county. (i). A notice of petition must be published in a newspaper circulated within that juridiction (or qualified substitute thereof) at the petitioner's expense no later than fifteen (15) days prior to the election at which it will be place on the ballot to be submitted to the voters or shall be voided and no votes counted. (j). The ballot shall substantially read as follows: "FOR, gambling with the sale and service of alcoholic beverages which may be operated twenty four (24) hours a day, seven (7) days a week, within the city of (city name), or county of (county name)." "AGAINST, gambling with the sale and service of alcoholic beverages which may be operated twenty four (24} hours a day, seven (7) days a week, within the city of (city name), or county of (county name)."
4. The result of the vote upon a city or county ballot 'question' shall be canvassed and declared by the county
   election commissioners.
5. The result shall be conclusive within thirty (30) days unless attacked in the courts.
6. After thirty (days) of an election being declared in favor of the ballot 'question' both 'gambling contractors'
   as licensed and authorized by the Arkansas Racing Commission, as provided in parts l(a)(f) et seq., 2(a)(b) of Section 3 of this Amendment, shall each be authorized to contract one 'business' with exception, as provided in parts l{g)(j) et seq. of Section 3 of this Amendment, to operate and subcontract "gambling' with the sale and service of 'alcoholic beverages" which may be operated twenty four (24) hours a day, seven (7) days a week, at the discretion of the business to be operated within one 'structure' by each business contracted within the jurisdiction of that city or county. (a). The terms of the contract may be broad in scope to include, but not limited to, financial obligations by the 'gambling operator' with the 'gambling contractor' to include subcontracting of any kind by the 'gambling operator'.
7. After five (5) days if not contested, as provided in parts l(k)(ka) of this Section, each 'business' contracted to
   operate 'gambling' by a licensed 'gambling contractor' shall be authorized by the 'gambling contractor', as provided in parts l(d)(e), 2(a)(b) of Section 3 of this Amendment, to legally operate and subcontract "gambling' with the sale and service of 'alcoholic beverages" which may be operated twenty four (24) hours a day, seven (7) days a week, at the discetion of the business within one 'structure' by each business contracted within the jurisdiction of that city or county. Section 3: The General Assembly
8. Upon the effective date of this amendment the General Assembly shall be empowered and required to
   authorize and fund the Arkansas Racing Commission to do as follows: (a). Shall be required within one hundred and twenty (120) days to sell one 'license' to a 'business' to contract 'gambling', as provided in part 4 of Section 2 of this Amendment. (aa). The 'license' may be sold at public auction or submission of application upon public notice with any requirements and qualifications to be determined by the General Assembly. (ab). The 'license' may be sold by public lottery, highest bidder, or any other means to be determined by the General Assembly. (b). Shall be required within one hundred and twenty (120) days to 'license' 'Fairdeal Holdings' with minimal cost for admistrative fees to contract 'gambling', as provided in part 4 of Section 2 of this Amendment. (c). Shall be required to authorize the 'license' to contract 'gambling', as provided in parts l(a)(b) of this Section, be transferable from a 'gambling contractor' to any 'business' and from them and so on with exception, as provided in parts l(g)(j) et seq. of this Section. (d). Shall be required to authorized the businesses 'licensed' to 'contract gambling' to authorize the 'business' contracted to legally operate 'gambling', as provided in part 5 of Section 2 of this Amendment. (e). Shall be required to authorize the 'gambling operator' as contracted with a licensed 'gambling contractor', as provided in part 5 of Section 2 of this Amendment, to subcontract any part or whole of the gambling operation to any 'business' with exception, as provided in parts l(g)(j) et seq. of this Section. (f). Shall be required to authorize the 'gambling' contract between a 'gambling contractor' and 'gambling operator' and any and all property used to operate "gambling' with the sale and service of 'alcoholic beverages" to include subcontracts be transferable to another 'business' and from them and so on with exception, as provided in parts l(g)(j) et seq. of this Section. (g). To prohibit any 'business' and or person connected to a 'business' from operating, contracting, and subcontracting 'gambling' to include the sale and service of 'alcoholic beverages' by conviction of a criminal act greater than a misdeameanor. (h). To prohibit the employment of any person by a 'gambling contractor', 'gambling operator', and or 'subcontractor' by conviction of a criminal act greater than a misdeameanor. (i). To prohibit any person connected to the business or employed by a 'gambling contractor' from operating and or subcontracting 'gambling' to include the sale and service of 'alcoholic beverages' or be employed by a 'gambling operator' and or 'subcontractor'. (j}. Shall be required to prohibit in any manner a monopoly on 'gambling' by any person, 'business', or person connected to a 'business' contracting, operating, and or subcontracting 'gambling'. (k). In the public's interest to be public knowledge shall require a full and complete copy of any and all contracts to include a list of all persons connected to a business and or employed by a business at the time of contracting between the 'gambling contractor', 'gambling operator' and 'subcontractor' be submiited to the Arkansas Racing Commission for validation, as provided in parts l(g)(j) et seq. of this Section. (ka). After five (5) days from the date received the contract shall take effect if not contested. (kb). To require all persons employed by, or connected to a 'business', contracting, operating, and or subcontracting "gambling' with the sale and service of 'alcoholic beverages" must have a back ground check. (kc). Further review and updates of any changes may be required. (I). To regulate 'gambling' in any manner with exception. (la). Shall not be authorized to limit the number of pay to play games of chance with a winner and a loser which may be operated by a 'gambling operator' within one 'structure' except by room capacity, room size, and aisle widths to include, but not limited to, emergency exits for safety purposes.
9. Upon the effective date of this amendment the General Assembly shall be empowered and required to
   authorize and fund the Alcoholic Beverage Control Board to do as follows: (a). Shall be required to authorized the businesses licensed to 'contract gambling' to authorize the 'business' contracted to include any transfer of a contract, as provided in part l(f) of this Section, to operate "gambling' with the sale and service of 'alcoholic beverages" to legally sell and serve 'alcoholic beverages' during the time 'gambling' is operated within the structure used to operate 'gambling', as provided in part 5 of Section 2 of this Amendment. (b). Shall be required to authorize the 'gambling operator' as contracted with a licensed 'gambling contractor', as provided in part 5 of Section 2 of this Amendment, to subcontract in any manner the sale and service of 'alcoholic beverages' to any 'business' with exception, as provided in parts l(g)(h)(i) of this Section. (c). Shall be required to enforce any and all laws, rules, regulation on the sale and service of 'alcoholic beverages' not provided in this Amendment.
10. The 'gambling contractor' in no manner shall be held civily nor criminally liable in any cause of action
    against, nor be held responsible for the actions and or negligence which may result in injury, loss of life, property damage, etc., by a 'gambling operator' and or 'subcontractor' contracted by a 'gambling operator'.
11. Any and all state and local laws, rules, and regulations to include, but not limited to, zoning, safety codes,
    fees, permits, licenses, and taxes of any kind by any name on the structure and equipment used to operate 'gambling' to include the sale and service of 'alcoholic beverages' not provided in this Amendment shall apply.
12. The General Assembly shall be empowered by a two third vote or roll call of all its members in each House to
    do as follows: (a). Tax the 'gross income' from 'gambling' in any manner to include, but not limited to, the collection and distribution of any tax on the 'gross income' from 'gambling' to any city and or county where 'gambling' is operated to include a county where 'gambling' is operated in a city within that county. (b). Tax any, and all, winnings won by any person.
13. The General Assembly shall be empowered and required to enact any and all laws, rules, regulations and to
    authorize any state and or local agency or agencies to do as is necessary to impliment this amendment. Section 4: Acknowledgement of Risk Upon passage of this amendment the voters are aware, acknowledge, and have consider the risk of addiction to both gambling and alcohol associated with the operation of gambling as provided in this Amendment. Section 5: Definitions.
14. As used in this Amendment:
    (a). 'gambling' means any pay to play game of chance with a winner and a loser to include, but not limited to, the use of cards, dice, roulette wheels used in any way and slot machines of any kind by any name legally permitted under federal laws, rules, and regulations to be played by a gambling operator and or subcontractor shall be legal within the jurisdiction of a city or county with ballot approval of the electors as contracted by a gambling contactor licensed by the Arkansas Racing Commission which may be played twenty four (24) hours a day, seven (7) days a week, at the discretion of the gambling operator within one structure by each gambling operator. (b). 'alcoholic beverage' means the sale and service of alcoholic beverages of any kind by any name by a gambling operator and or subcontractor shall be legal within the jurisdiction of a city or county with ballot approval of the electors as contracted with a gambling contractor licensed by the Arkansas Racing Commission within the structure used to operate gambling during the time gambling is operated. (c). "gambling' with the sale and service of 'alcoholic beverages" means the licensed sale and service of alcoholic beverages of any kind by any name by a gambling operator and or subcontractor during the time legal gambling is operated within the jurisdiction of a city or county with ballot approval of the electors as contracted by a gambling contractor licensed by the Arkansas Racing Commission. (d). 'license' means the authorization from the Arkansas Racing Commision for a business to contract gambling by which authorizes the sale and service of alcoholic beverages by the Alcoholic Beverage Control Board (e). 'business' means any person(s), business, partnership, or corporation of any kind authorized by the Secretary of State's Office to conduct business in the state and not prohibited by state and or federal laws, rules, and or regulations to operate gambling and or not prohibited from selling and serving alcoholic beverages. (f). 'Fairdeal Holdings' means a person doing business under an assumed name as filed with the Garland County Clerk certificate number 4155. (g). 'structure' means any building of any kind of any size with any number of floors and or additions to that building to include any building or structure of any kind on water with enclosed passage ways attached to a building to be considered a single structure. (h}. 'gross income' means the amount of money earned from gambling after any and all winnings are paid as a loss from the gambling operator. '(i}. 'gambling contractor' means either or both businesses licensed by the Arkansas Racing Commission to contract a business to operate and subcontract gambling with the sale and service of alcoholic beverages which may be operated twenty four (24) hours a day, seven (7) days a week, at the discretion of that business within one structure by that business within the jurisdiction of a city or county with ballot approval of the electors. (j}. 'gambling operator' means the business contracted with a licensed gambling contractor to operate gambling with the sale and service of alcoholic beverages which may be operated twenty four (24) hours a day, seven (7} days a week, at the discretion of that business within one structure by that business within the jurisdiction of a city or county with ballot approval of the electors. (k}. 'subcontractor' means any business contracted by a gambling operator to operate any part or whole of the gambling operation to include, but not limited to, security, operation and maintenance of gambling equipment of any kind by any name, accounting, cleaning services, and alcoholic beverage sales and service. (I}. 'question' means the specific issue of "gambling' with the sale and service of 'alcoholic beverages" requiring consent by the qualified electors within a specified jurisdiction on an election ballot. Section 6. Effect on other constitutional provisions. The provisions of this amendment shall be in lieu of those provisions of Article 5 of the Constitution of the State of Arkansas relating to a local ballot 'question'. (a). The provisions of this Amendment specifically relate to "gambling' with the sale and service of 'alcoholic beverages" as a local ballot 'question'. (b). The provision of this Amendment in no manner are intended to deprive the qualified electors of their voting rights. Section 7. Severability. The provisions of this Amendment are severable, and if any should be held invalid, the remainder shall stand. Section 8. Self-Executing. The provisions of this Amendment shall be self executing, and all its provisions shall be treated as mandatory, but laws may be enacted to facilitate its operation. Section 9. Application All laws and constitutional provisions which conflict with this Amendment are repealed to the extent they conflict with this amendment. (a). The provisions of this Amendment should be interpreted liberally with broad scope. (b). The provisions of this Amemdmemt shall take effect on January 1st, 2019.