Stricken language would be deleted from and underlined language would be added to present law.
Act 342 of the Regular Session
Act 342 of the Regular Session
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State of Arkansas As Engrossed: S2/17/25 S2/26/25 1
95th General Assembly A Bill 2
Regular Session, 2025 SENATE BILL 231 3
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By: Senator J. Dotson 5
By: Representative Cozart 6
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For An Act To Be Entitled 8
AN ACT TO AMEND THE LAW REGARDING THE OFFICE OF THE 9
ARKANSAS LOTTERY; TO CONFER LAW ENFORCEMENT AUTHORITY 10
ON SELECT EMPLOYEES OF THE OFFICE OF THE ARKANSAS 11
LOTTERY; AND FOR OTHER PURPOSES. 12
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Subtitle 15
TO CONFER LAW ENFORCEMENT AUTHORITY ON 16
SELECT EMPLOYEES OF THE OFFICE OF THE 17
ARKANSAS LOTTERY. 18
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BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
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SECTION 1. Arkansas Code § 23 -115-205 is amended to read as follows: 22
23-115-205. Office of the Arkansas Lottery powers. 23
(a) The Office of the Arkansas Lottery has all powers necessary or 24
convenient to its usefulness in carrying out this chapter that are not in 25
conflict with the Arkansas Constitution or the United States Constitution, 26
including without limitation the following powers: 27
(1) To adopt and alter a seal; 28
(2) To adopt, amend, and repeal rules for the regulation of its 29
affairs and the conduct of its business, to prescribe the duties of officers 30
and employees of the office, and to perform other matters as the office 31
determines; 32
(3) To bring suits to enforce demands of the state under this 33
chapter; 34
(4) To procure or to provide insurance; 35
(5) To hold copyrights, trademarks, and service marks and to 36 As Engrossed: S2/17/25 S2/26/25 SB231
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enforce the office's rights with respect to those copyrights, trademarks, and 1
service marks; 2
(6) To initiate, supervise, and administer the operation of 3
lotteries in accordance with this chapter and rules adopted under this 4
chapter; 5
(7) To enter into written agreements with one (1) or more other 6
states or sovereigns for the operation, participation in marketing, and 7
promotion of multistate or multisovereign games; 8
(8) To conduct market research as necessary or appropriate; 9
(9) To acquire or lease real property and make improvements to 10
the real property and acquire by lease or by purchase personal property, 11
including without limitation: 12
(A) Computers; 13
(B) Mechanical, electronic, and online equipment and 14
terminals; 15
(C) Intangible property, including without limitation 16
computer programs, computer systems, and computer software; and 17
(D) Broadcast equipment; 18
(10) To administer oaths, take depositions, issue subpoenas, and 19
compel the attendance of witnesses and the production of books, papers, 20
documents, and other evidence relative to any investigation or proceeding 21
conducted by the office; 22
(11) To employ an internal auditor to perform the duties and 23
responsibilities required under § 23 -115-212; 24
(12) To select and contract with vendors; 25
(13) To select and license retailers; 26
(14) To enter into contracts or agreements with state or local 27
law enforcement agencies for the performance of law enforcement, background 28
investigations, and security checks; 29
(15) To conduct background investigations and, if considered 30
necessary by the Director of the Office of the Arkansas Lottery, credit 31
investigations on each potential vendor and retailer; 32
(16) To supervise ticket or share validation and lottery 33
drawings; 34
(17) To inspect at times determined solely by the office the 35
facilities of a vendor or a retailer to determine: 36 As Engrossed: S2/17/25 S2/26/25 SB231
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(A) The integrity of the vendor's product or the 1
operations of the retailer; and 2
(B) Whether the vendor or the retailer is in compliance 3
with its contract or license; 4
(18) To report any suspected violation of this chapter to the 5
appropriate prosecuting attorney or the Attorney General and to any law 6
enforcement agencies having jurisdiction over the violation; 7
(19) Upon request, to provide assistance to the Chief Fiscal 8
Officer of the State, the Legislative Auditor, the appropriate prosecuting 9
attorney, the Attorney General, or a law enforcement agency investigating a 10
violation of this chapter; 11
(20) To enter into contracts of terms and conditions that the 12
office determines; 13
(21) To establish and maintain banking relationships associated 14
with the maintenance and investment of lottery proceeds, including without 15
limitation the establishment of checking and savings accounts and trust 16
funds; 17
(22)(A) To advertise and promote lotteries and scholarships and 18
grants funded by net proceeds. 19
(B) The office shall seek the advice of the Division of 20
Higher Education when advertising to promote scholarships and grants funded 21
by net proceeds; 22
(23) To act as a retailer and to establish and operate a sales 23
facility to conduct promotions that involve the sale of tickets or shares and 24
any related merchandise; 25
(24)(A) To contract with one (1) or more independent testing 26
laboratories to scientifically test and technically evaluate lottery games, 27
lottery terminals, and lottery operating systems. 28
(B) An independent testing laboratory shall: 29
(i) Have a national reputation that is demonstrably 30
competent; and 31
(ii) Be qualified to scientifically test and evaluate 32
all components of a lottery game, lottery terminal, or lottery operating 33
system. 34
(C) An independent testing laboratory shall not be owned 35
or controlled by a vendor or a retailer; 36 As Engrossed: S2/17/25 S2/26/25 SB231
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(25) To withhold state and federal income taxes as required by 1
law; and 2
(26) To adopt and amend rules necessary to carry out and 3
implement the office's powers and duties, organize and operate the office, 4
regulate the conduct of lotteries in general, and any other matters necessary 5
or desirable for the efficient and effective operation of lotteries for the 6
convenience of the public. 7
(b) The powers enumerated in subsection (a) of this section: 8
(1) Are in addition to those powers of the office enumerated 9
elsewhere in this chapter; and 10
(2) Do not limit or restrict any other powers of the office. 11
(c) The office is responsible for maintaining the integrity of the 12
lottery. 13
(d) The director shall: 14
(1) Assign personnel as agents of the office to conduct 15
investigations related to violations of lottery -related laws or lottery -16
related administrative rules; and 17
(2) Report on the investigations conducted under subdivision 18
(d)(1) of this section on a regular basis to the office of the Attorney 19
General and the Division of Arkansas State Police. 20
(e) Personnel assigned as agents of the office shall: 21
(1) Be considered law enforcement officers by the Arkansas 22
Commission on Law Enforcement Standards and Training pursuant to § 12 -9-101 23
et seq.; and 24
(2) Have statewide law enforcement authority to conduct 25
investigations related to violations of lottery -related laws or lottery -26
related administrative rules . 27
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/s/J. Dotson 29
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APPROVED: 3/20/25 32
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