§ 23-115-605 — Retailers - Fiduciary duty - Protection against loss

Arkansas § 23-115-605

• Jurisdiction: Arkansas
• Title: 23

Text

(a) (1) Proceeds from the sale of tickets or shares shall be held in trust until paid to the Office of the Arkansas Lottery either directly or through the office's authorized collection representative. (2) A retailer and officers of a retailer's business have a fiduciary duty to preserve and account for retail lottery proceeds, and retailers are personally liable for all lottery proceeds. (3) For the purpose of this section, lottery proceeds include without limitation: (A) Unsold instant tickets received by a retailer; (B) Cash proceeds of the sale of lottery products; (C) Net of allowable sales commissions; and (D) Credit for lottery prizes paid to winners by retailers. (4) Sales proceeds and unused instant tickets shall be delivered to the office or its authorized collection representative upon demand. (b) (1) The office shall require retailers to place all lottery proceeds due the office in accounts in institutions insured by the Federal Deposit Insurance Corporation not later than the close of the next banking day after the date of their collection by the retailer until the date they are paid to the office. (2) At the time of the deposit, lottery proceeds shall be deemed to be the property of the office. (3) The office may require a retailer to establish a single separate electronic funds transfer account when available for the purpose of: (A) Receiving moneys from ticket or share sales; (B) Making payments to the office; and (C) Receiving payments for the office. (4) Unless authorized in writing by the office, each retailer shall establish a separate bank account for lottery proceeds that shall be kept separate and apart from all other funds and assets and shall not be commingled with any other funds or assets. (c) When an individual who receives proceeds from the sale of tickets or shares in the capacity of a retailer becomes insolvent or dies insolvent, the proceeds due the office from the individual or his or her estate have preference over all debts or demands. (d) If the office determines that a retailer failed to comply with subsection (b) of this section three (3) times within any consecutive twenty-four-month period, the office may pursue business closure against the retailer under this subchapter.

Legislative History

Amended by Act 2015, No. 218,§ 25, eff. 2/26/2015. Acts 2009, No. 605, § 1; 2009, No. 606, § 1; 2009, No. 1405, § 43.