Arkansas 2025 Regular Session

Arkansas Senate Bill SB232 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		Stricken language would be deleted from and underlined language would be added to present law.
2		-	Act 429 of the Regular Session
3		-	CRH049 03-18-2025 14:03:49 CRH049
4		-
5		-	State of Arkansas As Engrossed: S2/25/25 S3/11/25 S3/18/25 1
	2	+	CRH049 02/13/2025 2:49:22 PM CRH049
	3	+	State of Arkansas 1
6	4		95th General Assembly A Bill 2
7	5		Regular Session, 2025 SENATE BILL 232 3
8	6		4
9	7		By: Senator Hickey 5
10		-	~~By: Representative Cozart~~ 6
	8	+	6
11	9		7
12	10		For An Act To Be Entitled 8
13	11		AN ACT TO AMEND THE ARKANSAS SCHOLARSHIP LOTTERY ACT; 9
14	12		TO AMEND THE DEFINITION OF "LOTTERY PROCEEDS"; TO 10
15	13		AMEND THE DEFINITION OF "NET PROCEEDS"; TO AMEND THE 11
16	14		CONTENTS OF THE FINANCIAL REPORT; TO PROVIDE THAT THE 12
17	15		COSTS OF ADMINISTERING SCHOLARSHIP AWARDS ARE 13
18	16		EXPENSES OF THE DIVISION OF HIGHER EDUCATION THAT 14
19	17		WILL CONTINUE TO BE REIMBURSED BY THE OFFICE OF THE 15
20	18		ARKANSAS LOTTERY USING LOTTERY NET PROCEEDS; TO 16
21	19		ELIMINATE THE SCHOLARSHIP SHORTFALL RESERVE TRUST 17
22	20		ACCOUNT; TO DECLARE AN EMERGENCY; AND FOR OTHER 18
23	21		PURPOSES. 19
24	22		20
25	23		21
26	24		Subtitle 22
27	25		TO AMEND VARIOUS PROVISIONS OF THE 23
28	26		ARKANSAS SCHOLARSHIP LOTTERY ACT; AND TO 24
29	27		DECLARE AN EMERGENCY. 25
30	28		26
31	29		BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 27
32	30		28
33	31		SECTION 1. Arkansas Code § 6 -85-303(a), concerning funding for the 29
34	32		Arkansas Workforce Challenge Scholarship Program, is amended to read as 30
35	33		follows: 31
36	34		(a) For an academic year, the following shall be used to fund Arkansas 32
37	35		Workforce Challenge Scholarships under this subchapter: 33
38	36		(1) Excess funding returned to the Office of the Arkansas 34
39	37		Lottery under § 6-85-212(d)(2)(B)(i) from the previous academic year; and 35
40		-	(2) Net proceeds remaining from the previous academic year after 36 ~~As Engrossed: S2/25/25 S3/11/25 S3/18/25~~ SB232
	38	+	(2) Net proceeds remaining from the previous academic year after 36 SB232
41	39
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43		-
44		-
	40	+	2 02/13/2025 2:49:22 PM CRH049
45	41		the office: 1
46	42		(A) Transfers transfers the funds requested by the 2
47	43		Division of Higher Education under § 23 -115-801(c)(2); and 3
48	44		(B) Deposits the amount necessary to maintain the 4
49	45		Scholarship Shortfall Reserve Trust Account under § 23 -115-802 in an amount 5
50	46		equal to twenty million dollars ($20,000,000) . 6
51	47		7
52	48		SECTION 2. Arkansas Code § 6 -85-404(b)(1), concerning funding for the 8
53	49		Arkansas Concurrent Challenge Scholarship, is amended to read as follows: 9
54	50		(b)(1) A scholarship under this subchapter shall not be awarded for an 10
55	51		academic year if: 11
56	52		(A) Less less than two hundred fifty thousand dollars 12
57	53		($250,000) is available under subsection (a) of this section ; or 13
58	54		(B) The division received a loan from the Scholarship 14
59	55		Shortfall Reserve Trust Account under § 23 -115-802 for the Arkansas Academic 15
60	56		Challenge Scholarship Program, § 6 -85-201 et seq., for the previous academic 16
61	57		year. 17
62	58		18
63	59		SECTION 3. Arkansas Code § 6-85-603(b)(1), concerning funding for the 19
64	60		Arkansas Challenge Plus Scholarship, is amended to read as follows: 20
65	61		(b)(1) Arkansas Challenge Plus Scholarships under this subchapter 21
66	62		shall be funded by available net proceeds remaining from the previous 22
67	63		academic year after the Office of the Arkansas Lottery : 23
68	64		(A) Transfers transfers the funds requested by the 24
69	65		division under § 23-115-801(c)(2); and 25
70	66		(B) Deposits the amount necessary to maintain the 26
71	67		Scholarship Shortfall Reserve Trust Account under § 23 -115-802 in an amount 27
72	68		equal to twenty million dollars ($20,000,000) . 28
73	69		29
74	70		SECTION 4. Arkansas Code § 23 -115-103(14), concerning the definition 30
75	71		of "lottery proceeds" under the Arkansas Scholarship Lottery Act, is amended 31
76	72		to read as follows: 32
77	73		(14) “Lottery proceeds” means all revenue derived from the sale 33
78	74		of tickets or shares and all other moneys derived from or in connection with 34
79	75		the operation of a lottery, including without limitation fees, offsets, 35
80		-	reimbursements, interest, insurance proceeds, damages, and liquidated damages 36 ~~As Engrossed: S2/25/25 S3/11/25 S3/18/25~~ SB232
	76	+	reimbursements, interest, insurance proceeds, damages, and liquidated damages 36 SB232
81	77
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83		-
84		-
	78	+	3 02/13/2025 2:49:22 PM CRH049
85	79		collected or imposed by the office under this chapter; 1
86	80		2
87	81		SECTION 5. Arkansas Code § 23 -115-103(21), concerning the definition of 3
88	82		"net proceeds" under the Arkansas Scholarship Lottery Act, is amended to read 4
89	83		as follows: 5
90	84		(21)(A) “Net proceeds” means lottery proceeds less: 6
91	85		(A)(i) Operating expenses; 7
92	86		(B)(ii) The amount of fidelity fund revenue under § 23 -115-603 8
93	87		that exceeds is required to increase the fidelity fund to five hundred 9
94		-	thousand dollars ($500,000); 10
	88	+	thousand dollars ($500,000); and 10
95	89		(C)(iii) The undepreciated amount of capital assets; and amount 11
96	90		of any adjustments required for Multi -State Lottery Association reserves to 12
97		-	meet the Multi-State Lottery Association reserve requirements~~; and~~ 13
98		-	(iv) ~~The amount of any accrual or other accounting~~ 14
99		-	~~adjustment~~ that ~~will result in a debit or credit balance in the Office of the~~ 15
100		-	~~Arkansas Lottery's Unrestricted Net Position account~~, ~~except for any~~ 16
101		-	~~restricted net position account.~~ 17
102		-	(D) ~~Accruals that will not result in a cash outflow;~~ 18
103		-	~~(B)~~ "~~Net proceeds" includes fidelity fund revenue that~~ 19
104		-	~~exceeds a fidelity fund balance of five hundred thousand dollars ($500,000)~~. 20
105		-	(C) ~~"Net proceeds"~~ ~~shall be based on generally accepted~~ 21
106		-	~~accounting principles in accordance with § 23 -115-206(a)(6);~~ 22
107		-	23
108		-	~~SECTION 6.~~ ~~Arkansas Code § 23 -115-103(23)(I), concerning payments to~~ 24
109		-	the Division ~~of Higher Education as a cost under the definition of "operating~~ 25
110		-	~~expenses" under the Arkansas Scholarship Lottery Act, is repealed.~~ 26
111		-	~~(I) Payments to the Division of Higher Education to:~~ 27
112		-	~~(i) Reimburse~~ the ~~division for the costs of~~ 28
113		-	~~administering scholarship awards funded with~~ net ~~proceeds; and~~ 29
114		-	~~(ii) Replenish nonlottery state educational~~ 30
115		-	~~resources expended by~~ the ~~division on scholarship awards otherwise funded~~ 31
116		-	~~with net proceeds;~~ 32
117		-	33
118		-	~~SECTION 7.~~ Arkansas ~~Code § 23 -115-206(a)(8)(D)(v), concerning the~~ 34
119		-	~~statement of revenue, expenses, and changes in net assets portion of the~~ 35
120		-	~~Office of the~~ Arkansas ~~Lottery's annual comprehensive financial report to~~ the 36 ~~As Engrossed: S2/25/25 S3/11/25 S3/18/25~~ SB232
	91	+	meet the Multi-State Lottery Association reserve requirements. 13
	92	+	(D) Accruals that will not result in a cash outflow; 14
	93	+	(B) "Net proceeds" includes fidelity fund revenue that 15
	94	+	exceeds a fidelity fund balance of five hundred thousand dollars ($500,000); 16
	95	+	17
	96	+	SECTION 6. Arkansas Code § 23 -115-103(23)(I), concerning payments to 18
	97	+	the Division of Higher Education as a cost under the definition of "operating 19
	98	+	expenses" under the Arkansas Scholarship Lottery Act, is repealed. 20
	99	+	(I) Payments to the Division of Higher Education to: 21
	100	+	(i) Reimburse the division for the costs of 22
	101	+	administering scholarship awards funded with net proceeds; and 23
	102	+	(ii) Replenish nonlottery state educational 24
	103	+	resources expended by the division on scholarship awards otherwise funded 25
	104	+	with net proceeds; 26
	105	+	27
	106	+	SECTION 7. Arkansas Code § 23 -115-206(a)(8)(D)(v), concerning the 28
	107	+	statement of revenue, expenses, and changes in net assets portion of the 29
	108	+	Office of the Arkansas Lottery's annual comprehensive financial report to the 30
	109	+	Governor and the Legislative Council, is amended to read as follows: 31
	110	+	(v) A statement of revenue, expenses, and changes in 32
	111	+	net assets for each fiscal year since inception for the last ten (10) fiscal 33
	112	+	years of the Arkansas Scholarship Lottery; 34
	113	+	35
	114	+	SECTION 8. Arkansas Code § 23 -115-206(a)(8)(D)(vii), concerning the 36 SB232
121	115
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	116	+	4 02/13/2025 2:49:22 PM CRH049
	117	+	contents of the fiscal year -end report, is amended to read as follows: 1
	118	+	(vii) A fiscal year-end report on any information 2
	119	+	required to be reported by the office on a monthly basis, including without 3
	120	+	limitation: 4
	121	+	(a) Unclaimed lottery prize money under § 23 -5
	122	+	115-403; and 6
	123	+	(b) The Scholarship Shortfall Reserve Trust 7
	124	+	Account under § 23-115-802; and 8
	125	+	(c) Minority-owned business and female -owned 9
	126	+	business participation under § 23 -115-401; 10
	127	+	11
	128	+	SECTION 9. Arkansas Code § 23 -115-302(b)(9), concerning contents of 12
	129	+	the report by the Director of the Office of the Arkansas Lottery to the 13
	130	+	Legislative Council, is amended to read as follows: 14
	131	+	(9) Annually by November 15, report to the Legislative Council 15
	132	+	the following: 16
	133	+	(A) For the immediately preceding fiscal year : 17
	134	+	(i) The the total amount of net proceeds from the 18
	135	+	state lottery; and 19
	136	+	(ii) The amounts deposited into and disbursed from 20
	137	+	the Scholarship Shortfall Reserve Trust Account under § 23 -115-802; and 21
	138	+	(B) The office's projection for net proceeds from the 22
	139	+	state lottery for the current fiscal year; and 23
	140	+	24
	141	+	SECTION 10. Arkansas Code § 23 -115-801(b)(1)(B), concerning the 25
	142	+	establishment of the Lottery Scholarship Trust Account, is amended to read as 26
	143	+	follows: 27
	144	+	(B)(i) The office shall establish the Lottery Scholarship 28
	145	+	Trust Account as required under subdivision (b)(1)(A) of this section to fund 29
	146	+	the Arkansas Academic Challenge Scholarship Program, § 6 -85-201 et seq., the 30
	147	+	Arkansas Workforce Challenge Scholarship Program, § 6 -85-301 et seq., the 31
	148	+	Arkansas Concurrent Challenge Scholarship Program, § 6 -85-401 et seq., and 32
	149	+	any other scholarship funded with net proceeds from the state lottery in a 33
	150	+	financial institution into which the office shall transfer: 34
	151	+	(a) Excess funding returned to the office 35
	152	+	under § 6-85-212(d)(2)(B)(i) from the previous academic year; and 36 SB232
123	153
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	155	+	(b) Net proceeds remaining in the Lottery 1
	156	+	Scholarship Trust Account from the previous academic year after the office : 2
	157	+	(1) Transfers transfers under 3
	158	+	subdivision (c)(2) of this section the funds requested by the Division of 4
	159	+	Higher Education; and 5
	160	+	(2) Deposits the amount necessary into 6
	161	+	the Scholarship Shortfall Reserve Trust Account under § 23 -115-802 to 7
	162	+	maintain an amount equal to twenty million dollars ($20,000,000) . 8
	163	+	9
	164	+	SECTION 11. Arkansas Code § 23 -115-801(d)(1), concerning findings of 10
	165	+	the General Assembly related to lottery proceeds under the Arkansas 11
	166	+	Scholarship Lottery Act, is amended to read as follows: 12
	167	+	(d)(1) The General Assembly finds that: 13
	168	+	(A) The administration of scholarships with proceeds from 14
	169	+	the lottery are expenses of the office; and 15
	170	+	(B) Because because the division has the expertise and 16
	171	+	experienced staff needed to efficiently and appropriately administer the 17
	172	+	scholarships, the office shall use the services of the division to administer 18
	173	+	scholarships funded with net proceeds from the lottery. 19
	174	+	20
	175	+	SECTION 12. Arkansas Code § 23 -115-802 is repealed. 21
	176	+	23-115-802. Scholarship Shortfall Reserve Trust Account. 22
	177	+	(a) The Office of the Arkansas Lottery shall maintain a Scholarship 23
	178	+	Shortfall Reserve Trust Account. 24
	179	+	(b)(1) An amount equal to four percent (4%) of the total amount of net 25
	180	+	proceeds disbursed during the preceding fiscal year in the form of 26
	181	+	scholarships and grants for higher education shall be deposited from lottery 27
	182	+	proceeds each year until the amount in the Scholarship Shortfall Reserve 28
	183	+	Trust Account equals twenty million dollars ($20,000,000). 29
	184	+	(2) Thereafter, only the amount necessary to maintain the 30
	185	+	Scholarship Shortfall Reserve Trust Account in an amount equal to twenty 31
	186	+	million dollars ($20,000,000) shall be deposited into the Scholarship 32
	187	+	Shortfall Reserve Trust Account. 33
	188	+	(3) Any amount in the Scholarship Shortfall Reserve Trust 34
	189	+	Account exceeding twenty million dollars ($20,000,000) shall be considered 35
	190	+	net proceeds and shall be deposited annually into one (1) or more trust 36 SB232
124	191
125		-	Governor and the Legislative Council, is amended to read as follows: 1
126		-	(v) A statement of revenue, expenses, and changes in 2
127		-	net assets for each fiscal year since inception for the last ten (10) fiscal 3
128		-	years of the Arkansas Scholarship Lottery; 4
129		-	5
130		-	SECTION 8. Arkansas Code § 23 -115-206(a)(8)(D)(vii), concerning the 6
131		-	contents of the fiscal year -end report, is amended to read as follows: 7
132		-	(vii) A fiscal year-end report on any information 8
133		-	required to be reported by the office on a monthly basis, including without 9
134		-	limitation: 10
135		-	(a) Unclaimed lottery prize money under § 23 -11
136		-	115-403; and 12
137		-	(b) The Scholarship Shortfall Reserve Trust 13
138		-	Account under § 23-115-802; and 14
139		-	(c) Minority-owned business and female -owned 15
140		-	business participation under § 23 -115-401; 16
141		-	17
142		-	SECTION 9. Arkansas Code § 23 -115-302(b)(9), concerning contents of 18
143		-	the report by the Director of the Office of the Arkansas Lottery to the 19
144		-	Legislative Council, is amended to read as follows: 20
145		-	(9) Annually by November 15, report to the Legislative Council 21
146		-	the following: 22
147		-	(A) For the immediately preceding fiscal year : 23
148		-	(i) The the total amount of net proceeds from the 24
149		-	state lottery; and 25
150		-	(ii) The amounts deposited into and disbursed from 26
151		-	the Scholarship Shortfall Reserve Trust Account under § 23 -115-802; and 27
152		-	(B) The office's projection for net proceeds from the 28
153		-	state lottery for the current fiscal year; and 29
154		-	30
155		-	SECTION 10. Arkansas Code § 23 -115-801(b)(1)(B), concerning the 31
156		-	establishment of the Lottery Scholarship Trust Account, is amended to read as 32
157		-	follows: 33
158		-	(B)(i) The office shall establish the Lottery Scholarship 34
159		-	Trust Account as required under subdivision (b)(1)(A) of this section to fund 35
160		-	the Arkansas Academic Challenge Scholarship Program, § 6 -85-201 et seq., the 36 As Engrossed: S2/25/25 S3/11/25 S3/18/25 SB232
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	193	+	accounts at one (1) or more financial institutions by July 1 of each year. 1
	194	+	(c)(1)(A) Except as provided in subdivision (c)(2) of this section, if 2
	195	+	net proceeds in any year are not sufficient to meet the amount allocated for 3
	196	+	scholarships under the Arkansas Academic Challenge Scholarship Program, § 6 -4
	197	+	85-201 et seq., the Scholarship Shortfall Reserve Trust Account may be drawn 5
	198	+	upon to meet the deficiency according to the procedural requirements 6
	199	+	established under subdivision (c)(3)(B) of this section. 7
	200	+	(B) In the event that the funding available in the 8
	201	+	Scholarship Shortfall Reserve Trust Account is not sufficient to meet the 9
	202	+	remaining amount allocated for scholarships funded with net proceeds from the 10
	203	+	state lottery, up to the first twenty million dollars ($20,000,000) of funds 11
	204	+	allocated in the Higher Education Grants Fund Account may be drawn upon to 12
	205	+	meet the deficiency. 13
	206	+	(2) Except as provided in subdivision (c)(3)(B) of this section, 14
	207	+	the Scholarship Shortfall Reserve Trust Account shall not be drawn upon to 15
	208	+	fund Arkansas Workforce Challenge Scholarships under the Arkansas Workforce 16
	209	+	Challenge Scholarship Program, § 6 -85-301 et seq., Arkansas Concurrent 17
	210	+	Challenge Scholarships under the Arkansas Concurrent Challenge Scholarship 18
	211	+	Program, § 6-85-401 et seq., or any other scholarship funded with net 19
	212	+	proceeds from the state lottery. 20
	213	+	(3)(A) Determining the maximum amount of loans from the 21
	214	+	Scholarship Shortfall Reserve Trust Account to the Arkansas Academic 22
	215	+	Challenge Scholarship Program, § 6 -85-201 et seq., the Arkansas Workforce 23
	216	+	Challenge Scholarship Program, § 6 -85-301 et seq., or the Arkansas Concurrent 24
	217	+	Challenge Scholarship Program, § 6 -85-401 et seq., is the prerogative of the 25
	218	+	General Assembly. This is usually accomplished by the General Assembly's 26
	219	+	delineating such funding allocations for the various scholarship programs, 27
	220	+	with the approval of the Administrative Rules Subcommittee of the Legislative 28
	221	+	Council and through oversight as required by law by the Lottery Oversight 29
	222	+	Subcommittee of the Legislative Council. Further, the General Assembly 30
	223	+	determines that the Division of Higher Education may operate more efficiently 31
	224	+	with some flexibility, therefore it is both necessary and appropriate that 32
	225	+	the General Assembly maintain oversight by requiring prior approval of the 33
	226	+	Legislative Council or the Joint Budget Committee as provided by this 34
	227	+	section. 35
	228	+	(B) If the division determines it is necessary to borrow 36 SB232
161	229
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163		-
164		-
165		-	Arkansas Workforce Challenge Scholarship Program, § 6 -85-301 et seq., the 1
166		-	Arkansas Concurrent Challenge Scholarship Program, § 6 -85-401 et seq., and 2
167		-	any other scholarship funded with net proceeds from the state lottery in a 3
168		-	financial institution into which the office shall transfer: 4
169		-	(a) Excess funding returned to the office 5
170		-	under § 6-85-212(d)(2)(B)(i) from the previous academic year; and 6
171		-	(b) Net proceeds remaining in the Lottery 7
172		-	Scholarship Trust Account from the previous academic year after the office : 8
173		-	(1) Transfers transfers under 9
174		-	subdivision (c)(2) of this section the funds requested by the Division of 10
175		-	Higher Education; and 11
176		-	(2) Deposits the amount necessary into 12
177		-	the Scholarship Shortfall Reserve Trust Account under § 23 -115-802 to 13
178		-	maintain an amount equal to twenty million dollars ($20,000,000) . 14
179		-	15
180		-	SECTION 11. Arkansas Code § 23 -115-801(d)(1), concerning findings of 16
181		-	the General Assembly related to lottery proceeds under the Arkansas 17
182		-	Scholarship Lottery Act, is amended to read as follows: 18
183		-	(d)(1) The General Assembly finds that : 19
184		-	(A) The administration of scholarships with proceeds from 20
185		-	the lottery are expenses of the office; and 21
186		-	(B) Because because the division has the expertise and 22
187		-	experienced staff needed to efficiently and appropriately administer the 23
188		-	scholarships, the office shall use the services of the division to administer 24
189		-	scholarships funded with net proceeds from the lottery. 25
190		-	26
191		-	SECTION 12. Arkansas Code § 23-115-801(d)(3)(C), concerning 27
192		-	reimbursement to the Division of Higher Education by the Office of the 28
193		-	Arkansas Lottery, is amended to add an additional subdivision to read as 29
194		-	follows: 30
195		-	(iii) Reimbursement under this subdivision (d)(3)(C) 31
196		-	shall be made from the Lottery Scholarship Trust Account. 32
197		-	33
198		-	SECTION 13. Arkansas Code § 23 -115-802 is repealed. 34
199		-	23-115-802. Scholarship Shortfall Reserve Trust Account. 35
200		-	(a) The Office of the Arkansas Lottery shall maintain a Scholarship 36 As Engrossed: S2/25/25 S3/11/25 S3/18/25 SB232
201		-
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203		-
204		-
205		-	Shortfall Reserve Trust Account. 1
206		-	(b)(1) An amount equal to four percent (4%) of the total amount of net 2
207		-	proceeds disbursed during the preceding fiscal year in the form of 3
208		-	scholarships and grants for higher education shall be deposited from lottery 4
209		-	proceeds each year until the amount in the Scholarship Shortfall Reserve 5
210		-	Trust Account equals twenty million dollars ($20,000,000). 6
211		-	(2) Thereafter, only the amount necessary to maintain the 7
212		-	Scholarship Shortfall Reserve Trust Account in an amount equal to twenty 8
213		-	million dollars ($20,000,000) shall be deposited into the Scholarship 9
214		-	Shortfall Reserve Trust Account. 10
215		-	(3) Any amount in the Scholarship Shortfall Reserve Trust 11
216		-	Account exceeding twenty million dollars ($20,000,000) shall be considered 12
217		-	net proceeds and shall be deposited annually into one (1) or more trust 13
218		-	accounts at one (1) or more financial institutions by July 1 of each year. 14
219		-	(c)(1)(A) Except as provided in subdivision (c)(2) of this section, if 15
220		-	net proceeds in any year are not sufficient to meet the amount allocated for 16
221		-	scholarships under the Arkansas Academic Challenge Scholarship Program, § 6 -17
222		-	85-201 et seq., the Scholarship Shortfall Reserve Trust Account may be drawn 18
223		-	upon to meet the deficiency according to the procedural requirements 19
224		-	established under subdivision (c)(3)(B) of this section. 20
225		-	(B) In the event that the funding available in the 21
226		-	Scholarship Shortfall Reserve Trust Account is not sufficient to meet the 22
227		-	remaining amount allocated for scholarships funded with net proceeds from the 23
228		-	state lottery, up to the first twenty million dollars ($20,000,000) of funds 24
229		-	allocated in the Higher Education Grants Fund Account may be drawn upon to 25
230		-	meet the deficiency. 26
231		-	(2) Except as provided in subdivision (c)(3)(B) of this section, 27
232		-	the Scholarship Shortfall Reserve Trust Account shall not be drawn upon to 28
233		-	fund Arkansas Workforce Challenge Scholarships under the Arkansas Workforce 29
234		-	Challenge Scholarship Program, § 6 -85-301 et seq., Arkansas Concurrent 30
235		-	Challenge Scholarships under the Arkansas Concurrent Challenge Scholarship 31
236		-	Program, § 6-85-401 et seq., or any other scholarship funded with net 32
237		-	proceeds from the state lottery. 33
238		-	(3)(A) Determining the maximum amount of loans from the 34
239		-	Scholarship Shortfall Reserve Trust Account to the Arkansas Academic 35
240		-	Challenge Scholarship Program, § 6 -85-201 et seq., the Arkansas Workforce 36 As Engrossed: S2/25/25 S3/11/25 S3/18/25 SB232
241		-
242		-	7 03-18-2025 14:03:49 CRH049
243		-
244		-
245		-	Challenge Scholarship Program, § 6 -85-301 et seq., or the Arkansas Concurrent 1
246		-	Challenge Scholarship Program, § 6 -85-401 et seq., is the prerogative of the 2
247		-	General Assembly. This is usually accomplished by the General Assembly's 3
248		-	delineating such funding allocations for the various scholarship programs, 4
249		-	with the approval of the Administrative Rules Subcommittee of the Legislative 5
250		-	Council and through oversight as required by law by the Lottery Oversight 6
251		-	Subcommittee of the Legislative Council. Further, the General Assembly 7
252		-	determines that the Division of Higher Education may operate more efficiently 8
253		-	with some flexibility, therefore it is both necessary and appropriate that 9
254		-	the General Assembly maintain oversight by requiring prior approval of the 10
255		-	Legislative Council or the Joint Budget Committee as provided by this 11
256		-	section. 12
257		-	(B) If the division determines it is necessary to borrow 13
258		-	from the Scholarship Shortfall Reserve Trust Account to fund scholarships 14
259		-	under the Arkansas Academic Challenge Scholarship Program, § 6 -85-201 et 15
260		-	seq., the Arkansas Workforce Challenge Scholarship Program, § 6 -85-301 et 16
261		-	seq., or the Arkansas Concurrent Challenge Scholarship Program, § 6 -85-401 et 17
262		-	seq., the division shall first obtain review and approval from the 18
263		-	Legislative Council or, if the General Assembly is in session, the Joint 19
264		-	Budget Committee. 20
265		-	21
266		-	SECTION 14. DO NOT CODIFY. Transfer of funds. 22
267		-	(a) With the elimination of the Scholarship Shortfall Reserve Trust 23
268		-	Account, the twenty million dollars ($20,000,000) currently in the account 24
269		-	shall be first transferred and applied to the Office of the Arkansas 25
270		-	Lottery's Unrestricted Net Position account to reduce the deficit to zero 26
271		-	dollars ($0.00). 27
272		-	(b) Any funds remaining after the transfer under subsection (a) of 28
273		-	this section shall then be transferred to the Lottery Scholarship Trust 29
274		-	Account before December 31, 2025. 30
275		-	(c) The disbursement of funds under this section is a one -time 31
276		-	disbursement. 32
277		-	33
278		-	SECTION 15. EMERGENCY CLAUSE. It is found and determined by the 34
279		-	General Assembly of the State of Arkansas that modifications to accounting 35
280		-	procedures for certain funds of the Office of the Arkansas Lottery are needed 36 As Engrossed: S2/25/25 S3/11/25 S3/18/25 SB232
281		-
282		-	8 03-18-2025 14:03:49 CRH049
283		-
284		-
285		-	to improve the function of the lottery; that improvements in efficiency for 1
286		-	the office are critical to ensure the success of the lottery in Arkansas; and 2
287		-	that this act should become effective at the beginning of the state's fiscal 3
288		-	year so that the office can implement these critical changes. Therefore, an 4
289		-	emergency is declared to exist, and this act being necessary for the 5
290		-	preservation of the public peace, health, and safety shall become effective 6
291		-	on July 1, 2025. 7
	230	+	7 02/13/2025 2:49:22 PM CRH049
	231	+	from the Scholarship Shortfall Reserve Trust Account to fund scholarships 1
	232	+	under the Arkansas Academic Challenge Scholarship Program, § 6 -85-201 et 2
	233	+	seq., the Arkansas Workforce Challenge Scholarship Program, § 6 -85-301 et 3
	234	+	seq., or the Arkansas Concurrent Challenge Scholarship Program, § 6 -85-401 et 4
	235	+	seq., the division shall first obtain review and approval from the 5
	236	+	Legislative Council or, if the General Assembly is in session, the Joint 6
	237	+	Budget Committee. 7
292	238		8
293		-	~~/s/Hickey~~ 9
294		-	10
295		-	11
296		-	~~APPROVED: 4/3/25~~ 12
297		-	13
298		-	14
299		-	15
300		-	16
301		-	17
302		-	18
303		-	19
	239	+	SECTION 13. DO NOT CODIFY. Transfer of funds. 9
	240	+	(a) With the elimination of the Scholarship Shortfall Reserve Trust 10
	241	+	Account, the twenty million dollars ($20,000,000) currently in the account 11
	242	+	shall be first transferred and applied to the Office of the Arkansas 12
	243	+	Lottery's Unrestricted Net Position account to reduce the deficit to zero 13
	244	+	dollars ($0.00). 14
	245	+	(b) Any funds remaining after the transfer under subsection (a) of 15
	246	+	this section shall then be transferred to the Lottery Scholarship Trust 16
	247	+	Account before December 31, 2025. 17
	248	+	(c) The disbursement of funds under this section is a one -time 18
	249	+	disbursement. 19
304	250		20
305		-	21
306		-	22
307		-	23
308		-	24
309		-	25
310		-	26
311		-	27
312		-	28
313		-	29
314		-	30
	251	+	SECTION 14. EMERGENCY CLAUSE. It is found and determined by the 21
	252	+	General Assembly of the State of Arkansas that modifications to accounting 22
	253	+	procedures for certain funds of the Office of the Arkansas Lottery are needed 23
	254	+	to improve the function of the lottery; that improvements in efficiency for 24
	255	+	the office are critical to ensure the success of the lottery in Arkansas; and 25
	256	+	that this act should become effective at the beginning of the state's fiscal 26
	257	+	year so that the office can implement these critical changes. Therefore, an 27
	258	+	emergency is declared to exist, and this act being necessary for the 28
	259	+	preservation of the public peace, health, and safety shall become effective 29
	260	+	on July 1, 2025. 30
315	261		31
316	262		32
317	263		33
318	264		34
319	265		35
320	266		36