The potentate of Scimitar Shrine was suspended in 2011 for unmasonic conduct. Under the Grand Lodge rules, that severs you from all rights and benefits of Masonry, right there and then. Imperial Shrine implemented a rule several years ago which under the Shrine's jurisdiction, allows for a lengthy appeals process, and any discipinary action under the Shrine takes effect only after the end of the appeals. So, Imperial Shrine let this fellow carry on as Potentate. A similar issue arose in Michigan where a noble (again, a potentate, no less) pleaded guilty to felony charges and was expelled by the Michigan grand lodge. Again Imperial Shrine said, in effect, "to us he's still a mason, and we'll let him serve until he finishes his appeals." Both Michigan and Arkansas suspended relations with the Shrine. Michigan resolved their issue with the one guy early this summer, but a group of about 30 or 40 of the Arkansas Shriners raised their hackles up, and decided to defy the Arkansas Grand Lodge. The previous Grand Master in AR issued an edict in November 2011 declaring the Shrine clandestine in Arkansas, and this decision was approved at the 2012 Grand Lodge meeting and incorporated into the current Arkansas Masonic Digest. Scimitar Shrine responded by introducing a resolution at the 2012 Imperial Shrine convention which would remove the requirement for Arkansas Shriners to be master masons. That resolution was tabled and not voted on. Several meetings between the Imperial Potentate and the GLoAR have occurred, with neither side budging from their position. The GLoAR has a clause in the Masonic Digest which requires the Shrine, in order to be recognized as a Masonic organiztion, to abide by the rules of the Grand Lodge with respect to membership in the fraternity. And we take a certain promise about hanging out with suspended or expelled Masons, as well as conforming to the rules of our Grand Lodge. A couple dozen of the rebelling Shriners have been brought up on charges, found guilty, and received lengthy definite suspensions... 40 year in the case of the Scimitar potentate, who can apply for reinstatement when he's 107. Some of the others can reapply in their 80s or 90s... but then the Grand Lodge has a long memory ;-)
From the 2012 Arkansas Masonic Digest:
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2.1.42 .This Grand Lodge acknowledges no degree of Masonry or Order of Knighthood to be legitimate and genuine except those conferred by or under authority of the following regularly constituted Masonic Bodies of the United States of America, and those of corresponding rank in foreign countries, with whom we have fraternal relations. It is improper for The Grand Lodge of Arkansas to grant recognition to another organization without said organization first asking for recognition, Pro. 2005, p. 71.
... Ancient Arabic Order of the Nobles of the Mystic Shrine of North America (Shrine International) Repealed Pro. 2012, p. 50
As a result of writings from Imperial Shrine which allowed an expelled Master Mason to remain a Shriner and Potentate of his Temple, which is in direct violation of agreement that was provided in our Digest of Laws. On December 8, 2011, I accordingly ordered recognition of the Shrine within this Jurisdiction removed, therefore making all of Arkansas Shrine Clandestine and Illegitimate. Violations of any part of this order will be deemed punishable by a penalty of expulsion from the Fraternity. Such penalty will be administered without benefit of a trial. Pro. 2012 p. 50