(a) The State Parks, Recreation, and Travel Commission or the Department of Parks and Tourism, upon receipt of a copy of incorporation papers, constitution, bylaws, and resolutions, if any, of a nonprofit corporation applying for recognition as a regional tourist promotion agency under the provisions of this subchapter, is authorized to designate the applying corporation as a regional tourist promotion agency under the provisions of this subchapter, provided that the commission shall determine:
(1) That the applying agency is established under the Arkansas Nonprofit Corporation Act, § 4-28-201 et seq., and has a constitution and bylaws governing the activities and purposes of the corporation which are in compliance with the rules and regulations of the commission established in furtherance of the purposes of this subchapter;
(2) That the charter, constitution, or bylaws of the applying agency provide for the selection of a board of directors and successor members on the boards, of persons who have demonstrated knowledge of and interest in the tourist travel and vacation business in the various counties composing the region to be served by the agency; and
(3) That the applying agency has furnished a proposed plan and demonstration of financial resources to establish and promote an active tourist travel and vacation business promotion program within the region as provided in this subchapter.
(b) Upon determining that an applying corporation is eligible for designation as a regional tourist promotion agency under the provisions of this subchapter, the commission, upon a majority vote of the full membership of the commission, shall designate the agency as the participating regional tourist promotion agency under the provisions of this subchapter for the region and shall certify that fact to the applying agency.
(c) The commission is authorized to revoke its designation of any regional tourist promotion agency or to suspend the regional tourist promotion agency from participation in the provisions of this subchapter whenever the commission shall determine that the regional tourist promotion agency is not complying with this subchapter or with the rules and regulations of the commission or has failed to comply with the terms of any grant made to the regional tourist promotion agency pursuant to the provisions of this subchapter.
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