| 27 | | - | SECTION 1. Arkansas Code § 23 -115-205 is amended to read as follows: 22 |
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| 28 | | - | 23-115-205. Office of the Arkansas Lottery powers. 23 |
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| 29 | | - | (a) The Office of the Arkansas Lottery has all powers necessary or 24 |
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| 30 | | - | convenient to its usefulness in carrying out this chapter that are not in 25 |
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| 31 | | - | conflict with the Arkansas Constitution or the United States Constitution, 26 |
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| 32 | | - | including without limitation the following powers: 27 |
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| 33 | | - | (1) To adopt and alter a seal; 28 |
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| 34 | | - | (2) To adopt, amend, and repeal rules for the regulation of its 29 |
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| 35 | | - | affairs and the conduct of its business, to prescribe the duties of officers 30 |
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| 36 | | - | and employees of the office, and to perform other matters as the office 31 |
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| 37 | | - | determines; 32 |
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| 38 | | - | (3) To bring suits to enforce demands of the state under this 33 |
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| 39 | | - | chapter; 34 |
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| 40 | | - | (4) To procure or to provide insurance; 35 |
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| 41 | | - | (5) To hold copyrights, trademarks, and service marks and to 36 As Engrossed: S2/17/25 S2/26/25 SB231 |
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| 44 | | - | |
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| 45 | | - | |
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| 46 | | - | enforce the office's rights with respect to those copyrights, trademarks, and 1 |
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| 47 | | - | service marks; 2 |
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| 48 | | - | (6) To initiate, supervise, and administer the operation of 3 |
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| 49 | | - | lotteries in accordance with this chapter and rules adopted under this 4 |
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| 50 | | - | chapter; 5 |
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| 51 | | - | (7) To enter into written agreements with one (1) or more other 6 |
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| 52 | | - | states or sovereigns for the operation, participation in marketing, and 7 |
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| 53 | | - | promotion of multistate or multisovereign games; 8 |
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| 54 | | - | (8) To conduct market research as necessary or appropriate; 9 |
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| 55 | | - | (9) To acquire or lease real property and make improvements to 10 |
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| 56 | | - | the real property and acquire by lease or by purchase personal property, 11 |
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| 57 | | - | including without limitation: 12 |
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| 58 | | - | (A) Computers; 13 |
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| 59 | | - | (B) Mechanical, electronic, and online equipment and 14 |
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| 60 | | - | terminals; 15 |
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| 61 | | - | (C) Intangible property, including without limitation 16 |
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| 62 | | - | computer programs, computer systems, and computer software; and 17 |
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| 63 | | - | (D) Broadcast equipment; 18 |
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| 64 | | - | (10) To administer oaths, take depositions, issue subpoenas, and 19 |
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| 65 | | - | compel the attendance of witnesses and the production of books, papers, 20 |
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| 66 | | - | documents, and other evidence relative to any investigation or proceeding 21 |
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| 67 | | - | conducted by the office; 22 |
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| 68 | | - | (11) To employ an internal auditor to perform the duties and 23 |
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| 69 | | - | responsibilities required under § 23 -115-212; 24 |
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| 70 | | - | (12) To select and contract with vendors; 25 |
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| 71 | | - | (13) To select and license retailers; 26 |
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| 72 | | - | (14) To enter into contracts or agreements with state or local 27 |
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| 73 | | - | law enforcement agencies for the performance of law enforcement, background 28 |
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| 74 | | - | investigations, and security checks; 29 |
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| 75 | | - | (15) To conduct background investigations and, if considered 30 |
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| 76 | | - | necessary by the Director of the Office of the Arkansas Lottery, credit 31 |
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| 77 | | - | investigations on each potential vendor and retailer; 32 |
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| 78 | | - | (16) To supervise ticket or share validation and lottery 33 |
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| 79 | | - | drawings; 34 |
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| 80 | | - | (17) To inspect at times determined solely by the office the 35 |
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| 81 | | - | facilities of a vendor or a retailer to determine: 36 As Engrossed: S2/17/25 S2/26/25 SB231 |
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| 84 | | - | |
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| 85 | | - | |
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| 86 | | - | (A) The integrity of the vendor's product or the 1 |
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| 87 | | - | operations of the retailer; and 2 |
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| 88 | | - | (B) Whether the vendor or the retailer is in compliance 3 |
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| 89 | | - | with its contract or license; 4 |
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| 90 | | - | (18) To report any suspected violation of this chapter to the 5 |
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| 91 | | - | appropriate prosecuting attorney or the Attorney General and to any law 6 |
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| 92 | | - | enforcement agencies having jurisdiction over the violation; 7 |
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| 93 | | - | (19) Upon request, to provide assistance to the Chief Fiscal 8 |
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| 94 | | - | Officer of the State, the Legislative Auditor, the appropriate prosecuting 9 |
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| 95 | | - | attorney, the Attorney General, or a law enforcement agency investigating a 10 |
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| 96 | | - | violation of this chapter; 11 |
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| 97 | | - | (20) To enter into contracts of terms and conditions that the 12 |
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| 98 | | - | office determines; 13 |
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| 99 | | - | (21) To establish and maintain banking relationships associated 14 |
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| 100 | | - | with the maintenance and investment of lottery proceeds, including without 15 |
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| 101 | | - | limitation the establishment of checking and savings accounts and trust 16 |
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| 102 | | - | funds; 17 |
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| 103 | | - | (22)(A) To advertise and promote lotteries and scholarships and 18 |
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| 104 | | - | grants funded by net proceeds. 19 |
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| 105 | | - | (B) The office shall seek the advice of the Division of 20 |
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| 106 | | - | Higher Education when advertising to promote scholarships and grants funded 21 |
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| 107 | | - | by net proceeds; 22 |
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| 108 | | - | (23) To act as a retailer and to establish and operate a sales 23 |
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| 109 | | - | facility to conduct promotions that involve the sale of tickets or shares and 24 |
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| 110 | | - | any related merchandise; 25 |
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| 111 | | - | (24)(A) To contract with one (1) or more independent testing 26 |
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| 112 | | - | laboratories to scientifically test and technically evaluate lottery games, 27 |
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| 113 | | - | lottery terminals, and lottery operating systems. 28 |
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| 114 | | - | (B) An independent testing laboratory shall: 29 |
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| 115 | | - | (i) Have a national reputation that is demonstrably 30 |
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| 116 | | - | competent; and 31 |
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| 117 | | - | (ii) Be qualified to scientifically test and evaluate 32 |
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| 118 | | - | all components of a lottery game, lottery terminal, or lottery operating 33 |
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| 119 | | - | system. 34 |
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| 120 | | - | (C) An independent testing laboratory shall not be owned 35 |
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| 121 | | - | or controlled by a vendor or a retailer; 36 As Engrossed: S2/17/25 S2/26/25 SB231 |
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| 124 | | - | |
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| 125 | | - | |
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| 126 | | - | (25) To withhold state and federal income taxes as required by 1 |
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| 127 | | - | law; and 2 |
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| 128 | | - | (26) To adopt and amend rules necessary to carry out and 3 |
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| 129 | | - | implement the office's powers and duties, organize and operate the office, 4 |
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| 130 | | - | regulate the conduct of lotteries in general, and any other matters necessary 5 |
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| 131 | | - | or desirable for the efficient and effective operation of lotteries for the 6 |
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| 132 | | - | convenience of the public. 7 |
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| 133 | | - | (b) The powers enumerated in subsection (a) of this section: 8 |
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| 134 | | - | (1) Are in addition to those powers of the office enumerated 9 |
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| 135 | | - | elsewhere in this chapter; and 10 |
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| 136 | | - | (2) Do not limit or restrict any other powers of the office. 11 |
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| 137 | | - | (c) The office is responsible for maintaining the integrity of the 12 |
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| 138 | | - | lottery. 13 |
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| 139 | | - | (d) The director shall: 14 |
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| 140 | | - | (1) Assign personnel as agents of the office to conduct 15 |
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| 141 | | - | investigations related to violations of lottery -related laws or lottery -16 |
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| 142 | | - | related administrative rules; and 17 |
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| 143 | | - | (2) Report on the investigations conducted under subdivision 18 |
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| 144 | | - | (d)(1) of this section on a regular basis to the office of the Attorney 19 |
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| 145 | | - | General and the Division of Arkansas State Police. 20 |
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| 146 | | - | (e) Personnel assigned as agents of the office shall: 21 |
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| 147 | | - | (1) Be considered law enforcement officers by the Arkansas 22 |
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| 148 | | - | Commission on Law Enforcement Standards and Training pursuant to § 12 -9-101 23 |
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| 149 | | - | et seq.; and 24 |
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| 150 | | - | (2) Have statewide law enforcement authority to conduct 25 |
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| 151 | | - | investigations related to violations of lottery -related laws or lottery -26 |
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| 152 | | - | related administrative rules . 27 |
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| 153 | | - | 28 |
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| 154 | | - | /s/J. Dotson 29 |
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| 155 | | - | 30 |
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| 156 | | - | 31 |
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| 157 | | - | APPROVED: 3/20/25 32 |
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| 158 | | - | 33 |
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| 159 | | - | 34 |
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| 24 | + | SECTION 1. Arkansas Code § 23 -115-205, concerning powers of the Office 22 |
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| 25 | + | of the Arkansas Lottery, is amended to add additional subsections to read as 23 |
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| 26 | + | follows: 24 |
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| 27 | + | (c) The office is responsible for maintaining the integrity of the 25 |
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| 28 | + | lottery. 26 |
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| 29 | + | (d) The director shall assign personnel as agents of the office to 27 |
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| 30 | + | conduct investigations related to violations of lottery -related laws or 28 |
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| 31 | + | lottery-related administrative rules. 29 |
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| 32 | + | (e) Personnel assigned as agents of the office shall: 30 |
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| 33 | + | (1) Be considered law enforcement officers by the Arkansas 31 |
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| 34 | + | Commission on Law Enforcement Standards and Training pursuant to § 12 -9-101 32 |
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| 35 | + | et seq.; and 33 |
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| 36 | + | (2) Have statewide law enforcement authority. 34 |
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