23-115-801. Lottery proceeds.

23-115-801. Lottery proceeds. (a)(1) Lottery proceeds are the property of the Office of the Arkansas Lottery. (2)(A) The office shall pay its operating expenses from its lottery proceeds. (B)(i) An amount of lottery proceeds determined by the office to maximize net proceeds for scholarships shall be made available as prize money. (ii)(a) Subdivision (a)(2)(B)(i) of this section does not create any lien, entitlement, cause of action, or other private right. (b) In setting the terms of a lottery, the office shall determine any rights of holders of tickets or shares. (3) The percentage of lottery proceeds determined by the office to be net proceeds shall equal an amount determined by the office to maximize net proceeds for scholarships. (b)(1)(A) On or before the fifteenth day of each month, the office shall deposit the net proceeds from the lottery into one (1) or more trust accounts at one (1) or more financial institutions. (B)(i) The office shall establish trust accounts for both the Arkansas Workforce Challenge Scholarship Program, § 6-85-301 et seq., and the Arkansas Concurrent Challenge Scholarship Program, § 6-85-401 et seq., in a financial institution into which the office shall transfer: (a) Excess funding returned to the office under § 6-85-212(e)(2)(B)(i) from the previous academic year; and (b) Net proceeds remaining from the previous academic year after the office: (1) Transfers under subdivision (c)(2) of this section the funds requested by the Division of Higher Education; and (2) Deposits the amount necessary into the Scholarship Shortfall Reserve Trust Account under § 23-115-802 to maintain an amount equal to twenty million dollars ($20,000,000). (ii) The funds transferred by the office into trust accounts for the Arkansas Workforce Challenge Scholarship Program, § 6-85-301 et seq., and the Arkansas Concurrent Challenge Scholarship Program, § 6-85-401 et seq., established under subdivision (b)(1)(B)(i) of this section shall be used for: (a) Arkansas Workforce Challenge Scholarships; (b) Any management fees charged by the financial institution to manage the trust accounts for scholarship award supplements; and (c) Arkansas Concurrent Challenge Scholarships. (iii) Annually, the office shall transfer to the Division of Higher Education the funds from the previous academic year, if any, that were transferred by the office into the trust accounts for the Arkansas Workforce Challenge Scholarship Program, § 6-85-301 et seq., and the Arkansas Concurrent Challenge Scholarship Program, § 6-85-401 et seq., under subdivision (b)(1)(B)(i) of this section for distribution of Arkansas Workforce Challenge Scholarships and Arkansas Concurrent Challenge Scholarships. (2) The office shall follow the investment policy guidelines of the State Board of Finance in selecting a financial institution and managing the net proceeds from the lottery deposited into the trust accounts. (c)(1) The Director of the Division of Higher Education shall certify to the office the amount of net proceeds from the lottery needed to fund the scholarships awarded to recipients under § 6-85-201 et seq. for each semester of an academic year. (2)(A) The office shall transfer the funds requested by the director under subdivision (c)(1) of this section into one (1) or more trust accounts at one (1) or more financial institutions meeting the requirements of subdivision (b)(2) of this section maintained by the Division of Higher Education. (B) The director shall disburse trust account funds only in the name of the recipient: (i) To an approved institution of higher education; or (ii) If a recipient transfers to another approved institution of higher education, to the approved institution of higher education where the recipient transferred. (3) By August 1 of each year, the director shall provide to the Secretary of the Department of Finance and Administration and to the Legislative Council for the academic year just ended an accounting of all trust accounts maintained by the division, including without limitation: (A) Total deposits to all trust accounts; (B) Total disbursements from the trust accounts; and (C) The balance remaining in the trust accounts. (d)(1) The General Assembly finds that: (A) The administration of scholarships with proceeds from the lottery are expenses of the office; and (B) Because the division has the expertise and experienced staff needed to efficiently and appropriately administer the scholarships, the office shall use the services of the division to administer scholarships funded with net proceeds from the lottery. (2)(A) Annually by April 1, the division shall provide to the office and to the Legislative Council the division's budget for the administrative expenditures allowed under this subsection. (B) Annually by October 31, the division shall provide an invoice to the office for reimbursement of the administrative expenditures allowed under this subsection, including without limitation: (i) For each employee the: (a) Type of position, whether full-time, part-time, permanent, or temporary; and (b) Salary paid; (ii) A description of other expenditures requested in the invoice; and (iii) An explanation of the increase, if any, of actual expenditures over the budgeted expenditures. (C) Only direct expenditures of the division to administer scholarship funding with net proceeds from the lottery may be invoiced to the office under subdivision (d)(2)(B) of this section. (3)(A) Annually by November 1, the office shall file a copy of the invoice with the Legislative Council for its review. (B) The Legislative Council shall review the invoice and forward its comments, if any, to the office. (C) The office shall reimburse the division for the costs of administering the scholarship awards funded with net proceeds from the lottery after the Legislative Council's review under this subsection.