The bill amends the Arkansas Scholarship Lottery Act by redefining key terms such as "lottery proceeds" and "net proceeds," and it modifies the financial reporting requirements for the Office of the Arkansas Lottery. Notably, it eliminates the Scholarship Shortfall Reserve Trust Account, which previously required the maintenance of a $20 million balance, and instead allows for the direct use of net proceeds for scholarship funding. The bill also specifies that the costs of administering scholarship awards will continue to be reimbursed by the Office of the Arkansas Lottery using lottery net proceeds.

Additionally, the bill includes provisions for the transfer of the existing $20 million from the now-eliminated Scholarship Shortfall Reserve Trust Account to the Office of the Arkansas Lottery's Unrestricted Net Position account to address any deficits, with any remaining funds subsequently allocated to the Lottery Scholarship Trust Account. The act declares an emergency, emphasizing the need for these changes to improve the efficiency and functionality of the lottery system in Arkansas, with an effective date set for July 1, 2025.

Statutes affected:
SB 232: 6-85-303(a), 6-85-404(b), 6-85-603(b), 23-115-103(14), 23-115-103(21), 23-115-103(23), 23-115-206(a), 23-115-302(b), 23-115-801(b), 23-115-801(d)