(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 account equals twenty million dollars ($20,000,000).
(2) (A) Thereafter, only the amount necessary to maintain the account in an amount equal to twenty million dollars ($20,000,000) shall be deposited into the account after the repayment of any loan made from the Executive Discretionary Division Section 3(d) of the General Improvement Distribution Act of 2015, identical Acts 2015, Nos. 1146 and 1147, before June 30, 2016, to the Department of Higher Education for the Arkansas Academic Challenge Scholarship Program -- Part 2 has been satisfied.
(B) A loan made from the Executive Discretionary Division Section 3(d) of the General Improvement Distribution Act of 2015, identical Acts 2015, Nos. 1146 and 1147, to the Department of Higher Education for the Arkansas Academic Challenge Scholarship Program -- Part 2 shall not exceed one million five hundred thousand dollars ($1,500,000).
(3) Any amount in the 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) If net proceeds in any year are not sufficient to meet the amount allocated for higher education scholarships, the account may be drawn upon to meet the deficiency.
Section: 23-115-802 23-115-803 NextLast modified: November 15, 2016