(a)The Office of the Arkansas Lottery shall maintain a Scholarship Shortfall Reserve Trust Account.
(b)(1) An amount equal to four percent (4%) of the total amount of net proceeds disbursed during the preceding fiscal year in the form of scholarships and grants for higher education shall be deposited from lottery proceeds each year until the amount in the Scholarship Shortfall Reserve Trust Account equals twenty million dollars ($20,000,000).
(2)Thereafter, only the amount necessary to maintain the Scholarship Shortfall Reserve Trust Account in an amount equal to twenty million dollars ($20,000,000) shall be deposited into the Scholarship Shortfall Reserve Trust Account.
(3)Any amount in the Scholarship Shortfall Reserve Trust Account exceeding twenty million dollars ($20,000,000) shal
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(a) The Office of the Arkansas Lottery shall maintain a Scholarship Shortfall Reserve Trust Account. (b) (1) An amount equal to four percent (4%) of the total amount of net proceeds disbursed during the preceding fiscal year in the form of scholarships and grants for higher education shall be deposited from lottery proceeds each year until the amount in the Scholarship Shortfall Reserve Trust Account equals twenty million dollars ($20,000,000). (2) Thereafter, only the amount necessary to maintain the Scholarship Shortfall Reserve Trust Account in an amount equal to twenty million dollars ($20,000,000) shall be deposited into the Scholarship Shortfall Reserve Trust Account. (3) Any amount in the Scholarship Shortfall Reserve Trust Account exceeding twenty million dollars ($20,000,000) shall be considered net proceeds and shall be deposited annually into one (1) or more trust accounts at one (1) or more financial institutions by July 1 of each year. (c) (1) (A) Except as provided in subdivision (c)(2) of this section, if net proceeds in any year are not sufficient to meet the amount allocated for scholarships under the Arkansas Academic Challenge Scholarship Program, § 6-85-201 et seq., the Scholarship Shortfall Reserve Trust Account may be drawn upon to meet the deficiency according to the procedural requirements established under subdivision (c)(3)(B) of this section. (B) In the event that the funding available in the Scholarship Shortfall Reserve Trust Account is not sufficient to meet the remaining amount allocated for scholarships funded with net proceeds from the state lottery, up to the first twenty million dollars ($20,000,000) of funds allocated in the Higher Education Grants Fund Account may be drawn upon to meet the deficiency. (2) Except as provided in subdivision (c)(3)(B) of this section, the Scholarship Shortfall Reserve Trust Account shall not be drawn upon to fund Arkansas Workforce Challenge Scholarships under the Arkansas Workforce Challenge Scholarship Program, § 6-85-301 et seq., Arkansas Concurrent Challenge Scholarships under the Arkansas Concurrent Challenge Scholarship Program, § 6-85-401 et seq., or any other scholarship funded with net proceeds from the state lottery. (3) (A) Determining the maximum amount of loans from the Scholarship Shortfall Reserve Trust Account to the Arkansas Academic Challenge Scholarship Program, § 6-85-201 et seq., the Arkansas Workforce Challenge Scholarship Program, § 6-85-301 et seq., or the Arkansas Concurrent Challenge Scholarship Program, § 6-85-401 et seq., is the prerogative of the General Assembly. This is usually accomplished by the General Assembly's delineating such funding allocations for the various scholarship programs, with the approval of the Administrative Rules Subcommittee of the Legislative Council and through oversight as required by law by the Lottery Oversight Subcommittee of the Legislative Council. Further, the General Assembly determines that the Division of Higher Education may operate more efficiently with some flexibility, therefore it is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or the Joint Budget Committee as provided by this section. (B) If the division determines it is necessary to borrow from the Scholarship Shortfall Reserve Trust Account to fund scholarships under the Arkansas Academic Challenge Scholarship Program, § 6-85-201 et seq., the Arkansas Workforce Challenge Scholarship Program, § 6-85-301 et seq., or the Arkansas Concurrent Challenge Scholarship Program, § 6-85-401 et seq., the division shall first obtain review and approval from the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.
Amended by Act 2021, No. 636,§ 7, eff. 4/12/2021. Amended by Act 2019, No. 456,§ 3, eff. 7/24/2019. Amended by Act 2017, No. 613,§ 6, eff. 3/23/2017. Amended by Act 2015, No. 1105,§ 7, eff. 4/6/2015. Amended by Act 2015, No. 218,§ 25, eff. 2/26/2015. Acts 2009, No. 605, § 1; 2009, No. 606, § 1; 2009, No. 1405, § 46; 2010, No. 265, §§ 33, 34; 2010, No. 294, §§ 33, 34.