Operational Rules Arkansas Scholarship Lottery
Preface: The purpose of these rules is to establish the
policies and procedures regulating the conduct and operation of the Arkansas
Scholarship Lottery; to make certain that the lottery is operated with dignity
and integrity; and to ensure that the citizens of Arkansas maintain trust and
confidence in the Arkansas Lottery Commission (ALC). These rules are
promulgated under the authority of Arkansas Code Ann. §
23-115-205.
Section 1.
Definitions.
1.1 "Act" means the Arkansas Scholarship
Lottery Act (Act 606 of 2009).
1.2
"Administrative order" means the final disposition of the Arkansas Lottery
Commission in any matter other than a claim in contract or tort, including
without limitation bid protests and retailer licensing in which the Arkansas
Lottery Commission Is required by law to make its determination after notice
and a hearing.
1.3 "ALC" means the
Arkansas Lottery Commission as created by the Act.
1.4 "Applicant" means a natural person,
corporation, partnership, unincorporated association, or other legal
entity.
1.5 "Banks" means and
includes all commercial banks, mutual savings banks, savings and loan
associations, credit unions, trust companies, and any other type or form of
banking institution who are authorized to do business in the state of Arkansas
and that are designated to perform banking institution functions, activities,
or service in connection with the operations of ALC for the deposit and
handling of lottery funds, the accounting of the funds and the safekeeping of
records.
1.6 "Bar code validation"
means a system which allows any winning lottery ticket, printed with computer
readable bar codes for a prize amount as determined by the Commission, to be
read electronically at any claim center or lottery retailer location and paid
by the retailer regardless of where the player purchased the ticket.
1.7 "Certified Drawing" means a number
selection event about which the ALC and an independent certified public
accountant attest that the drawing equipment functioned properly and that a
random selection of a winning combination occurred.
1.8 "Claims Center" means the ALC claims
center located at the ALC Main Office in Little Rock, Arkansas, or any other
location authorized by the ALC to validate and pay a winning ticket.
1.9 "Commission" or "Commissioner" means the
individual(s) appointed as members to the ALC under Arkansas Code Ann. §
23-115-201
et seq.
1.10 "Compensation" means
any money or anything of value received or to be received as a claim for
services, whether in the form of a retainer, fee, salary, expense, allowance,
forbearance, forgiveness, interest, dividend, royalty, rent, or any other form
of recompense or any combination thereof.
1.11 "Debt" means a liquidated sum due and
owing any claimant agency when the sum has accrued through contract,
subrogation, tort, or operation of law regardless of whether there is an
outstanding judgment for the sum; or sum that is due and owing any person and
is enforceable by the State of Arkansas.
1.12 "Depository" means any entity, including
a bank or state agency, performing activities or services in connection with
the operation of the ALC for the deposit and handling of lottery funds, the
accounting for lottery funds, and the safekeeping of tickets.
1.13 "Drawing" means the procedure used to
select the winning numbers or combination of numbers in accordance with the
game rules of the particular lottery game.
1.14 "Employee" means a person who is an
employee of the ALC unless the context clearly indicates otherwise.
1.15 "Director" means the individual
appointed by the ALC to initiate, operate, supervise, and administer the ALC
lottery games.
1.16 "Game" means
any individual or particular type of lottery game authorized by the ALC
pursuant to the Act including but not limited to instant games and online
games.
1.17 "Immediate family"
means the father, mother, sister, brother, husband, wife, child, grandmother,
grandfather, grandchild, father-in-law, mother-in-law, sister-in-law,
brother-in-law, son-in-law, daughter-in-law, stepchild, grandmother-in-law,
grandfather-in-law, step grandchild, or any individual acting as parent or
guardian.
1.18 "Instant Game" means
a game in which a ticket is purchased and upon removal of a latex covering or
other covering on the front or back of the ticket or the opening of the sealed
ticket, the ticket bearer determines his or her winnings, if any, which are
payable upon presentation to a lottery retailer, claims center or another
entity approved by the ALC.
1.19
"Instant Ticket" means a printed card or slip purchased for participation in an
instant game.
1.20 "Legal Owner"
means the individual(s) whose name(s) appear on the ticket or share in the
space designated for "Name" or in the absence of such entry the bearer of the
ticket or share.
1.21 "Lottery" or
"Lottery Game" means the public gaming system or games established and operated
by ALC.
1.22 "Lottery Retailer" or
"Retailer" means any person licensed by the ALC to sell and dispense instant
tickets and materials or lottery games.
1.23 "Lottery Ticket" or "Ticket" means
tickets or other tangible evidence of participation used in lottery games
pursuant to the Act.
1.24 "Online
Game" means a state or multi-state lottery game in which a player pays a fee to
a lottery retailer and selects or uses a computer terminal to select a
combination of digits, numbers, or symbols, the type and amount of play, and
the drawing date, and receives a computer-generated ticket with those
selections printed on it.
1.25
"Online Terminal" means the electronic computer terminal through which a
lottery retailer enters the combination of digits, numbers, or symbols selected
by a player and by which online tickets are generated and claims are
validated.
1.26 "Online Ticket"
means a computer-generated ticket issued by a lottery retailer to a player as a
receipt for the combination of digits, numbers, or symbols selected.
1.27 "Person" means an individual,
association, corporation, club, trust, estate, society, governmental entity,
company, joint stock company, receiver, trustee, assignee, referee, and anyone
acting in a fiduciary or representative capacity, whether appointed by a court
or otherwise, and any combination of human beings.
1.28 "Player" means any individual who
purchases or is given a lottery game from a retailer or the ALC.
1.29 "Prize" means any award, financial or
otherwise, awarded by the ALC.
1.30
"Random number generator" means a computer driven electronic device capable of
producing numbers at random.
1.31
'Share" means any intangible evidence in participation in a lottery.
1.32 "Ticket Bearer" means the person who has
signed the ticket or has possession of the unsigned ticket.
1.33 "Ticket Number" means the preprinted
number found on the back of each ticket which identifies that particular ticket
as one (1) of a series of tickets.
1.34 "Ticket Pack Number" means the printed
number or numbers appearing on the back of each ticket.
1.35 "Unclaimed Prize" means the prize on a
winning ticket for which no claim is made within the required time period after
the drawing or winner selection event which made the ticket a winning
ticket.
1.36 "Unclaimed Prize
Account" means the ALC account to which unclaimed prizes are
transferred.
1.37 "Validation"
means the process of determining whether an instant or online ticket presented
for payment is a winning ticket.
1.38 "Validation Number" means the
multi-digit number found on the face of the ticket. There must be a validation
number on each ticket.
1.39
"Vendor" means a person who provides or proposes to provide goods or services
to the ALC under a procurement contract. "Vendor" does not include:
(a) An employee of the ALC;
(b) A retailer; or
(c) A state agency or
instrumentality.
1.40
"Working papers" means the programming parameters and specific details for each
game, including the identification of the game, ticket price and prize
structure.
1.41 "Website" means the
ALC's lottery address at lottery commission arkansas gov,
www.myarkansaslottery.com, or
any other website that may be specified by the ALC.
1.42 "Winner" means the holder of a lottery
ticket determined to have the required match or the specific alignment of the
play numbers, digits or symbols, the required sum of the play numbers or digits
in accordance with the game rules for the specific game, or a redeemable prize
amount indicated on its face.
1.43
"Winner selection" means the drawing process used by the ALC to select the
winning numbers in online games.
1.44 "Winning Combination" means numbers or
symbols chosen during the drawing process used by the ALC to select the winning
numbers in online games.
Section
2.
Authority of Director.
Notwithstanding the authority and duties listed in Arkansas Code Ann.
§
23-115-302 or
other such responsibilities and duties designated by the Commissioners, the
Director of the ALC may:
(a) Cancel or
postpone any promotion at any time;
(b) Contract with and license retailers for
the sale of lottery games and shares;
(c) Direct the distribution of on-line
terminals, ticket stock, and supplies shipped directly from the manufacturer or
supplier to an authorized retailer;
(d) Determine the price paid for all lottery
games and shares;
(e) Determine the
types of online and instant games to be offered for sale at retailers,
including any necessary game rules for the proper administration of the
games;
(f) Establish a procedure
for the disposition of unsold lottery games;
(g) Develop and determine the working papers
of each lottery game;
(h) Announce
the time for the end of sales prior to the drawings for each type of online
game;
(I) Designate the type of
equipment to be used for each online game;
(j) Establish procedures to randomly select
the winning combinations for each type of online game, and require the presence
of an independent accountant or other third party to witness all pre- and
post-drawing tests, and the drawing or winner selection;
(k) Determine the location, times, and days
of prize drawings and promotions;
(I) Determine the manner and frequency of
online game drawings;
(m) Establish
game rules and procedures governing the conduct of drawings for each instant
and online game;
(n) Investigate
and conduct hearings pursuant to a consumer complaint;
(o) Make the final decision on whether any
prize is paid or any annual prize payment is made;
(p) Enter into any contracts for
annuities;
(q) Hold copyrights,
trademarks, and service marks and enforce ALC's rights with respect to
them;
(r) Enter into written
agreements with one or more states or sovereigns for the operation,
participation in marketing, and promotion of a joint lottery or joint lottery
games;
(s) Perform other duties and
powers necessary or convenient to carry out and effectuate the purposes and
provisions of the ALC and those generally associated with a director of an
entrepreneurial business enterprise; and
(t) Take any other action necessary for the
efficient and effective operation of the lottery.
Section 3.
Use of ALC/Arkansas
Scholarship Lottery Trademarks.
A.
Lottery retailers may use, and display the lottery logo, trademark, and other
advertising materials without charge to the user or compensation to ALC for its
use.
B. Any use of the lottery logo
or other trademarked or copyright materials, other intellectual property, or
copy in advertising or production of consumer articles requires a prior written
request and execution of the retailer contract.
C. The Director may exercise supervision over
the quality of the materials produced under trademark licensing agreement and
may require as a condition to continuation of the license, changes in quality
of the goods or material produced.
D. The Director or his or her designee may at
any time terminate an agreement to license in the event that the licensee fails
to meet the requirement of the agreement, or in the event that the continuation
of the license is not considered to be in the best interest of ALC or of the
State of Arkansas.
E. The logo
shall not be modified in any way, including a change in color without the
express written approval from the Director or his or her designee prior to its
use.
Section 4.
Draw Integrity.
A. Subject to the
approval of the Director, the ALC's Director of Security shall designate a
Drawing Manager. Lottery drawings shall be conducted pursuant to the procedures
developed by the Drawing Manager in consultation with the Director of Security
and as approved by the Director. Drawing procedures shall include provisions
for the substitution of back up drawing equipment or methods in the event
primary drawing equipment malfunctions or fails for any reason and procedures
for completing a drawing that is interrupted due to equipment malfunction or
operator error.
B. The ALC may use
any type of equipment or method, including electronic or manual equipment and
any variety of existing or future methods or equipment, for determining the
winner or winning combination in any lottery game that involves a
drawing.
C. The ALC shall ensure
the security and integrity of any electronic drawing equipment used to
determine a winner or winning combinations. Any electronic connections to this
equipment must be made by a secure method. The ALC shall test the equipment as
needed to ensure proper operation and lack of tampering or fraud. The ALC shall
have its random number generators, or any other computer-driven or
computer-assisted device used for a drawing, statistically analyzed, tested,
and certified by an independent, qualified statistician for
integrity.
D. The ALC shall ensure
the security and integrity of any manual equipment used to determine a winner
or winning combinations. Any manual equipment used by the lottery to determine
a winner or winning combinations must be inspected by an independent certified
public accountant or the professional representative of an independent
certified public accountancy organization and an employee or agent of the ALC
before and after the drawing. The drawing and such inspections must be recorded
on video and audio tape. Any drawing using manual equipment must be witnessed
by an independent certified public accountant, a professional representative of
an independent certified public accountancy organization or the applicable
state entity.
E. The ALC may use
random number generators to determine winning numbers for lottery
games.
F. Subject to the approval
of the Director, the ALC's Director of Security shall establish procedures to
ensure the physical security of the ALC's drawing equipment and shall specify
the individuals who shall have physical access to that equipment. Any random
number generator, or any other computer-driven or computer-assisted device used
by the ALC to determine winners or winning combinations, shall be kept in a
sealed enclosure within a secure area. Any person who enters the sealed
enclosure must have permission from ALC Security and be escorted by an ALC
Security Section officer or employee.
G. If, during a game drawing, an equipment
failure or operator error causes an interruption in the selection of numbers or
symbols, the Drawing Manager will declare a technical difficulty. Any number
drawn prior to the declaration of a technical difficulty will stand and be
deemed official when verified by the Drawing Manager. The drawing will be
completed as set forth in the Drawing Manager procedures.
H. The Director will delay payment of all
prizes if any evidence exists or there are grounds for suspicion of equipment
malfunction, tampering, or fraud. In such event, the ALC will not pay any prize
until the ALC completes an investigation and the Director approves the drawing
and authorizes payment. If the Director does not approve the drawing, it will
be void and the ALC will conduct another drawing to determine the winner or the
winning combinations.
Section
5.
Sale of Lottery Games and Shares.
5.1
Generally. Any person who
buys or accepts a lottery game or otherwise participates in the lottery agrees
to be bound by all laws, rules, regulations and policies of that particular
lottery game and ALC including the Act. All players or persons purchasing or
possessing any lottery ticket or share must comply with and are bound by all
applicable laws, rules, and procedures and any additional terms and conditions
found on the ticket or share itself. In the event of a conflict between the
ALC's rules and additional terms and conditions found on the back of a ticket
or share, the rules control.
5.2
Eligibility.
A. Lottery games or
tickets may only be sold to an individual who is eighteen (18) years old or
older.
B. A lottery game or share
may not be purchased by any;
1. Commissioner,
Commissioner's immediate family, or employee of the ALC;
2. Immediate family member of a Commissioner
or employee of the ALC; or
3. An
officer, employee, agent, or subcontractor of an ALC vendor; or the immediate
family of an officer, employee, agent, or subcontractor of an ALC vendor that
has access to confidential information that may compromise the integrity of a
lottery.
C. Nothing in
this section shall be construed to prevent a person who lawfully purchases or
possesses a lottery ticket or share from making a gift of such ticket or share
to another person who could lawfully purchase or possess a lottery
game.
5.3
Sales
Locations. Unless authorized, lottery games or shares may only be sold
by a lottery retailer at the location listed in the retailer contract. The
Director may also designate its agents or employees to sell lottery tickets or
shares directly to the public, either in person or through electronic means at
any location authorized by the lottery.
5.4
Price. Unless authorized to
do so in writing by the Director, a person shall not sell a ticket or share at
a price other than established by the Director. The Director may designate its
agents or employees to sell or give lottery games or shares directly to the
public.
5.5
Sales Are Final.
The sale of all lottery tickets and shares is final and no ticket
returns are to be accepted by the retailer. A player may not return a lottery
ticket or share for a refund of the purchase price or exchange unless the
specific game rule provides otherwise. Where a specific rule provides that the
purchaser of a lottery ticket or share may cancel the purchase, the following
is the procedure for cancellation:
(a) To
cancel a purchase of a lottery ticket or share, the player must return it to
the selling retailer on the day of purchase before wagers are disabled prior to
the first drawing or other winner determination time as applicable.
(b) The player shall receive a refund from
the retailer equal to the purchase amount of the lottery ticket or
share.
(c) If a lottery ticket or
share cannot be cancelled because the ALC's central computer system does not
record the cancellation in a timely manner due to a mechanical or electronic
transmission malfunction, credit may still be given to the retailer provided
the following steps are taken:
(1) The
retailer attempts to cancel the lottery ticket or share before wagers are
suspended and a computer record of the attempt is created.
(2) The retailer calls the Retailer Services
Hotline and gives the lottery ticket or share's identifying number to the
operator, and
(3) The retailer
mails the lottery ticket or share to the ALC within two weeks from the date of
purchase.
5.6
Tickets or Shares. Notwithstanding any other rule, tickets or
shares cannot be cancelled under any circumstances.
5.7
Future Drawings. A player
may purchase a ticket or tickets for future consecutive drawings to the extent
permitted by the ALC for each lottery game. The player must specify at the time
of purchase that the ticket or tickets include future consecutive drawings.
However, no lottery games or shares may be sold after the commencement of a
drawing. The date of the drawing shall be printed on all tickets except instant
tickets.
5.8
Player Error.
The ALC is not liable for lottery tickets or shares that are purchased
in error. It is the responsibility of the player to verify at the time of
purchase that he/she in fact received what was requested and to rectify any
discrepancy immediately. If a defective ticket is purchased, the only
responsibility or liability of the ALC is the replacement of the defective
ticket with another unplayed ticket or tickets of equivalent sale price from
any other current game.
Section
6.
Lottery Tickets or Shares.
6.1
Bearer Instrument. Except
for a lottery ticket or share claimed jointly in accordance with the provisions
of this rule, until such time as a name of an individual or individuals is
imprinted or placed upon a lottery ticket or share in the area designated for
"Name," the ticket or share is a bearer instrument and is owned by the bearer
of the ticket or share. When a name or names is placed on the ticket or share
in the designated place, the ticket or share ceases to be a bearer instrument
and only the individual whose name appears in that area is the legal owner of
the ticket or share. Only an individual or individuals may own a ticket or
share and claim a prize.
6.2
Ticket Validation Requirements. Any lottery games or shares not passing
all the validation requirements in this section and the specific validation
requirements contained in the rules for its specific game are invalid and
ineligible for any prize. Once validated, a lottery retailer must deface the
lottery game in the manner prescribed by the Director or his
designee.
6.3
Instant
Tickets. An instant ticket must meet all of the following requirements
in order to be considered valid and payable:
(a) The instant ticket was issued in an
authorized manner;
(b) The instant
ticket is not altered, mutilated, unreadable, reconstructed, or tampered with
in any manner;
(c) The instant
ticket is not counterfeit in whole or in part;
(d) The instant ticket is not stolen nor
appears in any list of omitted instant tickets on file with the ALC;
(e) The instant ticket is complete and not
blank or partially blank, miscut, misregistered, defective, or printed or
produced in error;
(f) The instant
ticket has the correct number of play symbols in the correct position. The
symbols must be present in their entirety, legible, right-side up, and not
reversed in any manner;
(g) The
validation number of an apparent winning ticket appears on the ALC's official
list of validation numbers of winning instant tickets; and an instant ticket
with that validation number has not been previously paid; and,
(h) The instant ticket passes all additional
confidential validation requirements.
6.4
Online Games.
A. An instant online ticket must meet all of
the following requirements in order to be considered valid:
1. All printing on the ticket shall be
present in its entirety, be legible, and correspond, using the computer
validation file, to the combination and date printed on the ticket. The ticket
is not valid unless the ticket number and other information are recorded in the
ALC computer and transaction master file;
2. The ticket shall be intact;
3. The ticket shall not be altered,
mutilated, unreadable, reconstructed, or tampered with in any manner;
4. The ticket shall not be counterfeit or an
exact duplicate of another winning ticket;
5. The ticket shall have been issued by an
authorized retailer in an authorized manner;
6. The ticket shall not have been stolen or
canceled;
7. The ticket shall not
have been previously paid; and
8.
The ticket shall pass all other confidential security checks of ALC.
B. The Director may replace an
invalid online ticket with an online ticket for a future drawing of the same
game. The Director at his or her discretion may pay the prize for a ticket that
is partially mutilated or is not intact if the online ticket can still be
validated by the other validation requirements.
Section 7.
Payment of Prizes.
7.1
Procedures.
A. A legal owner may present the winning
ticket for a prize not exceeding five hundred dollars ($500) to any retailer,
an ALC approved claim office, the ALC Main Office or may mail the signed ticket
to the ALC for payment. Prizes shall be paid during the normal business hours
of the retailer. If the claim cannot be validated, the claimant must fill out
an ALC claim form and mail or present to the ALC the completed form with the
disputed ticket. A check shall be forwarded to the claimant for payment of the
amount due if the claim is validated. In the event that the claim is not
validated, the claimant shall be promptly notified that the claim is
denied.
B. A legal owner of a prize
of more than five hundred dollars ($500) shall complete a claim form and submit
the form with the winning ticket either in person at an ALC claims center or by
mail to the ALC Main Office. Upon validation, a check shall be forwarded to the
claimant in payment of the amount due. ALC will deduct from the amount due any
required federal and state income tax with holdings and any withholding
required by Arkansas Code Ann. §
23-115-1001 et
seq. In the event that the claim is not validated, the claim shall be denied
and the claimant shall be promptly notified that the claim is denied.
C. The Director may require claims of one
million ($1,000,000) dollars or more to be redeemed at the ALC Main
Office.
D. For any winning prize
redeemed at the ALC Main Office, payment will be made by check, with the
exception of a prize that is merchandise.
E. The ALC is not liable for any lost or
misdirected winning tickets sent by mail.
F. The ALC shall make available a list of all
winning numbers for the fifty-two (52) previous weeks.
7.2
Restrictions on Eligibility of
Prizes. The following are not eligible to redeem any lottery prize:
(a) Any individual under eighteen (18) years
of age;
(b) Any individual
incarcerated in:
(1) The Department of
Correction;
(2) The Department of
Community Correction; or
(3) A
county or municipal jail or detention facility.
(c) Any Commissioner or employee of the ALC
or their immediate family members;
(d) Any officer, employee, agent, or
subcontractor of an ALC vendor; or immediate family of the officer, employee,
agent, or subcontractor of an ALC vendor if that officer, employee, agent, or
subcontractor has access to confidential information that may compromise the
integrity of a lottery.
7.3
Time Period for Redemption.
The Director may at any time alter the time periods for redemption of a
lottery prize. If a valid claim is not made for a cash lottery prize within the
applicable period, the cash lottery prize constitutes an unclaimed lottery
prize. A holder of a winning ticket must claim the prize within the following
time periods:
(a) To claim an online game
prize, the claimant must submit the winning online ticket for validation at a
lottery office or retailer on or before the 180th
day after the winning drawing. If the ticket has remaining drawings, a
continuation ticket will be issued. If mailed, the envelope containing both the
ticket and claim form, if required, must be postmarked on or before the
180th day after the winning drawing.
(b) To claim a scratch-off/instant game
prize, the claimant must submit the winning scratch-off/instant ticket for
validation at a claims center or retailer on or before the
90th day after the official end of game. If mailed,
the envelope containing both the ticket and claim form, if required, must be
postmarked on or before the 90th day after the official end of the
game.
7.4
Tax
Liability. Proceeds of a lottery prize are subject to federal and
Arkansas state income tax. Each United States resident who is to receive a
payment of winnings greater than $600 shall furnish to the ALC the information
required on the Internal Revenue Service Form W-2G (or any other form required
by the IRS) including but not limited to the winner's name, address, and social
security number. This disclosure is mandatory and the authority for such
disclosure is
42 USC
405(c) (2) (C). 26 CFR
31.3402(q)-1(e), and Arkansas Code Ann. §
23-115-403.
A winner's social security number will only be used for the purpose of
transmitting the prize amount to the appropriate taxing authorities, and
identifying individuals subject to Debt Set Off procedures set forth in Section
7.13.
7.5
Prizes Non-Assignable. A
lottery prize, any portion of a lottery prize, or any right of any individual
to a lottery prize is not assignable, except that the payment of any prize
drawn may be paid to the estate of a deceased prize winner pursuant to an
appropriate judicial order.
7.6
Prizes Payable after Death. A lottery prize or any portion of a
lottery prize remaining unpaid at the death of a lottery prize winner shall be
paid to the estate of the deceased lottery prize winner or to the trustee of a
trust established by the deceased lottery prize winner as settlor if:
(a) A copy of the trust document or
instrument has been filed with the ALC along with a notarized letter of
direction from the settlor; and
(b)
No written notice of revocation has been received by the ALC before the
settlor's death.
(c) Following a
settlor's death and before any payment to a successor trustee, the ALC shall
obtain from the trustee a written agreement to indemnify and hold the ALC
harmless with respect to any claims that may be asserted against the ALC
arising from payment to or through the trust.
(d) Under an appropriate judicial order, an
individual shall be paid the Lottery prize to which a winner is
entitled.
(e) The Director reserves
the right to petition any court of competent jurisdiction to determine the
proper payment of any prize winnings due to a deceased prize winner.
(f) If any lottery prize is properly owned by
an individual under eighteen (18) years of age, such as through inheritance, it
must be paid to the parent, guardian or custodian of such person under the
Arkansas Uniform Transfers to Minors Act.
7.7
Issuance of Prizes to Multiple
Owners.
A. All individuals claiming
ownership of the winning lottery ticket or share must complete and sign the
ALC's request and release form. Each of the persons signing the form must
indicate each person's proportionate share of the prize. Each person must
receive at least $1.00. At least one of the persons claiming ownership of the
ticket or share must sign the ticket or share. That person's signature must
also appear on the request and release form. If a winning ticket or share is
mailed to the ALC with multiple signatures on it, the Director will mail the
request and release form to the claimants. A deceased signatory who dies before
signing the request and release form will be presumed to have an ownership
interest equal to that of the other signatories. In the event there is a
deceased signatory, the Director may withhold payment for 60 days from the date
of validation to allow co-owners the opportunity to seek a declaratory ruling
from a court.
B. Upon the
signatures of the request and release form, the Director will issue to each
individual claiming a share of the prize amount a check for the portion of the
prize amount claimed by each multiple owner, the total not to exceed the total
prize amount. However, the Director reserves the right to issue a single prize
check to an individual whose name appears on the ticket or share instead of
multiple prize checks to the owners of the ticket or share if the number of
persons claiming a share of the prize exceeds 100 people. The ALC shall pay
multiple winners of a lottery prize only at the ALC claims center in Little
Rock. Retailers are not authorized to pay multiple winners who share a single
prize.
7.8
Relinquishment of Interest. When a person who has signed a lottery
ticket or share wishes to relinquish the person's ownership interest in the
lottery ticket or share, that person must sign the ALC's release of ownership
form relinquishing the person's ownership interest. In no event will a person
be permitted to relinquish ownership interest once it is determined that the
person owes any indebtedness pursuant to Section
7.13 of this Section or other
legal attachment has taken place. Once the ALC receives the release of
ownership form, it is irrevocable.
7.9
Conflicting Information or
Discrepancies. If there is conflicting information or discrepancies
between the names on a winning lottery ticket or share and the names on a claim
form, the ALC may withhold prize payment until the conflicting information is
resolved to the ALC's satisfaction. Discrepancies include, but are not limited
to: names or addresses scratched out or erased, or unreadable or altered names
or addresses. If there is a determination that more than one (1) claimant is
entitled to a particular lottery prize, the sole remedy of the claimants is the
award to each of them of an equal share in the lottery prize.
7.10
Non-Payable. The following
will not be honored or paid by the ALC or any retailers:
(a) Tickets or shares which are stolen,
counterfeit, altered, fraudulent, unissued, produced or issued in error,
unreadable, not received, or not recorded by the ALC within applicable
deadlines;
(b) Tickets or shares
lacking in captions that conform and agree with the play symbols as appropriate
to the particular lottery Involved;
(c) Tickets or shares not in compliance with
rules and public or confidential validation and security tests of the ALC
appropriate to the particular lottery involved; or
(d) Any lottery prize which has already been
paid.
7.11
Investigations. At the discretion of tine Director, the ALC may conduct
an investigation to aid in the determination of the rightful owner(s) prior to
payment of any prize.
7.12
Determinations. The Director's decisions regarding the determination of
a winning lottery ticket or share, or the determination of the rightful owner
or owners of a prize, or of any other dispute or matter arising from payment or
awarding of prizes are final and binding on all parties. The Director shall
make the final decision on whether any prize is paid or any annual prize
payment is made. All prizes shall be paid within a reasonable time after they
are validated, unless the Director delays a prize payment. The Director may, at
any time, delay any prize payment in order to review the validity of a prize
claim, or review a change of circumstances relative to the prize awarded, the
payee, or the claim, or review any other relevant matter that may come to the
Director's attention. For any prize requiring annual payments, all payments
after the first payment shall be made on the anniversary date of the first
payment in accordance with the type of prize awarded. Any delayed annual
payment will be brought up to date immediately when payment is authorized by
the Director.
7.13
Set off
for Debts Owed to the State. The following provisions shall apply to the
payment of any prizes in excess of Five Hundred Dollars ($500.00):
(a) The ALC shall set off against any prize
the sum of any debt in excess of one hundred dollars ($100.00) owed to the
State of Arkansas or to persons on whose behalf the State and its claiming
agencies act.
(b) Notice of any
prize subject to a valid lien from the State of Arkansas will be sent to the
winner by certified mail, return receipt requested, of the action and the
reason the prizes were withheld.
(c) However, if the winner appears and claims
prizes in person, the ALC shall notify the winner at that time by hand delivery
of the action.
(d) If the winner
does not protest the withholding of the prizes in writing within thirty (30)
days of receipt of the notice, the ALC shall pay the prizes to the claimant
agency.
(e) If the winner protests
the withholding of the prizes within thirty (30) days of receipt of the notice,
the ALC shall;
(1) File an action in
interpleader in the circuit court of the county where the winner
resides;
(2) Pay the disputed sum
into the registry of that court; and
(3) Give notice to the claimant agency and
winner of the initiation of the action.
(f) Any liens submitted for collection by the
ALC shall be ranked and collected in the following order:
(1) Taxes due the state;
(2) Delinquent child support; and
(3) All other judgments and liens in order of
the date entered or perfected.
(g) Any list of debt from a claimant agency
to the ALC must be updated and electronically submitted to the ALC during the
first week of every calendar quarter. The ALC is not obligated to retain the
lists beyond that quarter or deduct debts for lists that are not current. The
claimant agency shall pay to the ALC for any and all costs incurred by the ALC
for the setting off of debts.
(h)
The ALC and any claimant agency shall incur no civil or criminal liability for
good faith adherence to this section.
7.14
Prize Claim Option Final.
If a prize winner is given an option regarding the method of prize
payment any payment method selected becomes final and may not be revoked or
changed.
7.15
Prize
allocation. Prize money allocated to the first prize category shall be
divided equally by the number of purchased game plays winning a first
prize.
7.15
Discharge from
Liability. The State of Arkansas, its agents, officers, employees and
representatives, the ALC, its Director, agents, officers, employees, and
representatives are discharged of all liability upon payment of a prize or any
one installment thereof to the holder of any winning lottery ticket or share or
in accordance with the information set forth on any winning lottery ticket or
share, any claim form, including but not limited to a winner claim form,
request to divide prize form, beneficiary designation form, and relinquishment
of ownership interest form.
7.16
Disclosure of Winners.
A. The
ALC may use the name, address, and likeness of a winner in any ALC promotional
campaign, advertisement, or press release. A winner who receives a prize or
prize payment from the ALC grants the ALC, its agents, officers, employees, and
representatives the right to use, publish in print or by means of the Internet,
and reproduce the winner's name, address, physical likeness, photograph,
portraits, statements made by the winner, and use audio sound clips and video
or film footage of the winner for the purpose of promoting the ALC and its
games.
B. If the ALC, its agents,
officers, employees, and representatives deem it suitable for advertising,
promotional or publicity use, or press use, a winner further grants the ALC the
right to use and reproduce the winner's likeness in print either alone or in
any combination with other persons. Examples of permitted uses include but are
not limited to: radio, television, newspapers, posters, billboards,
commercials, magazines, print advertisements, and the ALC web site.
C. Each winner releases the State of
Arkansas, its agents, officers, employees, and representatives, the ALC, its
Director, agents, officers, employees, and representatives from any liability
arising out of any blurring, distortion, alteration, or use in composite form
whether intentional or otherwise, that may occur, or be produced in the
printing and production process towards the completion of any finished product.
A winner waives any right to inspect or approve the finished products, whether
it is for a promotional campaign, advertising, or publicity.
D. Limitation: If the ALC uses the address of
a winner, the address shall not contain the street or house number of the
winner.
Section
8.
Advertising and Promotions.
The ALC may engage in shared expense and other co-promotional
activities with private or public enterprise including utilizing donated
prizes, goods, services, direct payments or reduced fees which are intended to
increase ticket sales, increase public goodwill or reduce the costs or expenses
of the ALC.
Section 9.
Consumer Complaints.
A. If a
ticket purchaser or ticket holder files a written complaint with the Director
relating to the sale of a ticket, payment of a prize, conducting of a promotion
or other activity relating to the ALC or an ALC product, the Director shall
forward the complaint to appropriate staff for further review. Any such
complaint shall be filed in a reasonable amount of time after complainant
becomes aware of the facts upon which the complaint is based.
B. All matters contained in this policy that
call for action of the Director may be executed by a designee appointed by the
Director.
C. The complaint will be
reviewed to determine its validity and to determine If the information provided
Is sufficient. Although the burden may shift on a particular matter, the
complainant has the burden of going forward and of proof. If the review of the
complaint indicates that additional information is necessary for an appropriate
response, the complainant may be required to provide additional information,
including but not limited to:
1. The name,
address, and telephone number of the complainant and the name address and
telephone number of the complainant's legal counsel, if any;
2. A detailed statement of facts supporting
the complainant's position;
3. A
detailed statement outlining the reason(s) for the complaint, including any law
or other authority upon which the complainant relies;
4. The name(s), address(es), and telephone
number(s) of witness(es) who may need a subpoena to appear;
5. Any other relevant information the ALC may
reasonably prescribe; and
6. The
evidence, clearly identified, to be considered by the Director.
D. The complainant will be
notified in writing if more information is needed and will be afforded a
reasonable time to respond. If any information requested is not provided within
the prescribed time period, or if the information submitted fails to present a
claim for which relief may be granted, the complaint may be dismissed by the
Director. In his discretion, upon receipt of sufficient information, the
Director may schedule a hearing rather than issuing a decision on the written
material submitted. If a hearing is denied, the complainant may request
reconsideration.
E. The request for
reconsideration for a hearing must be in writing, and must be submitted to ALC
within thirty (30) days of the date of the determination or
dismissal.
F. The Director may
require or the complainant may request a conference in an attempt to expedite
the orderly conduct of the hearing or the settlement of the complaint prior to
the scheduled hearing. A complainant may represent his or her own interest or
may be represented by an attorney at law licensed to practice law in the State
of Arkansas. Other than the complainant or the attorney representing
complainant, no person or organization may represent the interests of a
complainant.
G. If a complainant
fails to appear at a hearing after due notice, the Director may dismiss,
continue, or decide the matter. Upon timely application and proper notice, the
Director may grant a motion for a continuance or other change in the date, time
and place of the hearing.
H. The
hearing need not be conducted or controlled by either the Arkansas Rules of
Evidence or the Arkansas Rules of Civil Procedure. The hearing will be
conducted to the extent and fashion deemed appropriate by the Director. Unless
objection or exception is made, sustained and duly noted on the record, all
evidence appearing in the record shall be deemed to have been properly admitted
for consideration.
I. All hearings
will be recorded by a certified court reporter. If a complainant desires the
testimony be transcribed into a transcript or files an appeal, the complainant
shall order directly from the reporter an original and one copy, both of which
are the financial responsibility of the complainant ordering the transcript.
The original transcript shall be filed by the reporter directly with the
ALC.
J. Any decision of the
Director regarding a ticket purchaser or holder's written complaint, including
decisions regarding denial or dismissal of a complaint without a hearing or
decisions made after hearing all of the testimony, facts and evidence
presented, must:
1. Be in writing and sent by
United States Postal Service certified mail, a commercial overnight delivery
service or hand-delivered to the complainant as soon as practicable;
2. Explain the basis for the
determination;
3. Explain the
information necessary to file an appeal and the time periods in which an appeal
must be filed with the Commissioners; and
4. Inform the complainant that he or she may
request a hearing before the Commissioners, or in lieu of a hearing, may
request that an appeal may be decided upon the written materials presented for
the appeal.
K. A
complainant aggrieved by a decision of the Director may request a hearing
before the Commissioners, subject to the provisions of paragraph (M) below,
within fifteen (15) days of the written determination by the Director. The
complainant must be granted a hearing before the Commissioners or its designee
as soon as practicable but not later than sixty (60) days after the written
determination of the Director.
L.
The Commissioners, pursuant to the power granted to it in Arkansas Code Ann.
§
23-115-205,
may authorize its Legal Committee to hear and dispose of administrative appeals
from the Director, as the Committee deems appropriate, including, but not
limited to, designating one of its members to consider an act on an appeal on
behalf of the Commissioners. Therefore, references herein to "Commissioners"
shall be read to take this delegation of authority into account.
M. The Commissioners shall adopt the record
of the proceedings before the Director. Based upon the record, the
Commissioners may reverse a decision of the Director if the appellant proves
the decision to be:
1. In violation of
constitutional or statutory provisions;
2. In excess of the statutory authority of
the Director;
3. In excess of the
authority granted to the Director by the Commissioners;
4. Made upon unlawful procedure;
5. Affected by other error of law;
6. Clearly erroneous in view of the reliable,
probative, and substantial evidence of the whole record; or
7. Arbitrary or capricious or characterized
by abuse of discretion or clearly unwarranted exercise of discretion.
N. The Commissioners may remand an
appeal to the Director for further consideration or investigation.
O. The Commissioners' determination must be
in writing and must:
1. Be sent by United
States Postal Service certified mail, a commercial overnight delivery service
or hand delivered to the appellant; and
2. Explain the basis for the Commissioner's
determination.
P. A
determination from the Commissioners is final and non-appealable.
Q. This Section on Consumer Complaints is not
applicable to:
1. Complaints relating to
retailers;
2. Petition for
Declaratory Order from the Commissioners;
3. A claim in contract or tort against the
ALC, its Commissioners, employees or agents;
4. Any retailer, vendor, or applicant for a
contract or retailer license aggrieved by an action of the ALC.
Section 9.
Powers.
1
All powers not specifically defined in these rules are reserved to the
ALC under the Act. Section 10. Notices.
A. The following notices must be posted in a
conspicuous manner at any site where lottery games or shares are sold:
1. Game information, including participant
eligibility requirements, the beginning and end date of the promotions, when
and how winners will be selected and when and how prizes will be awarded, if
available;
2. Phone Number for the
ALC where a Player can call during normal ALC business hours to report any
problems with the purchasing or redeeming of lottery games and shares;
and
3. Other contact information
for the ALC including the physical address where claims can be redeemed or
mailed.
B. The website
for the Arkansas Scholarship Lottery shall be the central location for all
information concerning the Arkansas Scholarship Lottery and the ALC. The
following notices or information must be posted:
1. Game and Promotion information including
whether or not a game has been postponed or cancelled;
2. Game rules including participant
eligibility requirements, the beginning and end date of the promotions, when
and how winners will be selected and when and how prizes will be awarded, if
applicable;
3. Approximate odds of
winning each prize if those odds can be determined with reasonable accuracy at
the outset, otherwise, the written rules will state that the odds of winning a
prize cannot be determined in advance and set forth those factors that
ultimately will determine the odds;
4. Information on how and where to file
consumer complaints;
5. Information
concerning the identification and treatment of a compulsive gambling
disorder;
6. All rules, regulations
and orders promulgated or issued by the ALC; and contact information for the
ALC.
C. The following
notices will be provided on the backs of all lottery games, if practicable:
1. Approximate odds of winning each prize if
those odds can be determined with reasonable accuracy at the outset;
2. Gambling hotline number; and
3. Any other information that the ALC deems
relevant for that particular game.