§ 23-115-103 - Definitions.
23-115-103. Definitions.
As used in this chapter:
(1) "Administrative expenses" means operating expenses, excluding amounts set aside for prizes, regardless of whether the prizes are claimed, and excluding amounts held as a fidelity fund under 23-115-603;
(2) "Administrative order" means the final disposition of the Arkansas Lottery Commission in any matter other than a claim in contract or in tort, including without limitation licensing, in which the Arkansas Lottery Commission is required by law to make its determination after notice and a hearing;
(3) (A) "Casino gambling" means a location or business for the purposes of conducting illegal gambling activities, including without limitation activities under 5-66-101 et seq. that are not authorized under this chapter.
(B) "Casino gambling" does not include the sale and purchase of tickets or shares;
(4) (A) "Compensation" means any money or anything of value received or to be received as a claim for future 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.
(B) "Compensation" includes without limitation a payment made under obligation for services or other value received;
(5) "Female-owned business" means a business:
(A) Whose management and daily business operations are under the control of one (1) or more females; and
(B) Either:
(i) Individually owned by a female who reports as her personal income for Arkansas income tax purposes the income of the business;
(ii) Which is a partnership in which a majority of the ownership interest is owned by one (1) or more females who report as their personal income for Arkansas income tax purposes more than fifty percent (50%) of the income of the partnership; or
(iii) Which is a corporation organized under the laws of this state in which a majority of the common stock is owned by one (1) or more females who report as their personal income for Arkansas income tax purposes more than fifty percent (50%) of the distributed earnings of the corporation;
(6) "Gift" means any payment, entertainment, advance, services, or anything of value, unless consideration of equal or greater value has been given therefor;
(7) "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, daughter-in-law, son-in-law, stepchild, grandmother-in-law, grandfather-in-law, stepgrandchild, or any individual acting as parent or guardian;
(8) "Incompetence" means:
(A) Gross ignorance of official duties;
(B) Gross carelessness in the discharge of official duties; or
(C) Inability or unfitness to discharge promptly and properly official duties because of a serious physical or mental defect that did not exist at the time of the person's appointment;
(9) "License" means authorization granted by the Arkansas Lottery Commission to an individual to operate as a retailer, including without limitation the execution of a contract between the Arkansas Lottery Commission and the individual relating to obligations and terms for operating as a retailer;
(10) "Lobbying" means communicating directly or soliciting others to communicate with any member of the Arkansas Lottery Commission, the Director of the Arkansas Lottery Commission, any employee of the Arkansas Lottery Commission, or a member of the Arkansas Lottery Commission Legislative Oversight Committee with the purpose of influencing the actions of the Arkansas Lottery Commission or the Arkansas Lottery Commission Legislative Oversight Committee;
(11) "Local government" means:
(A) A county;
(B) A city of the first class or a city of the second class;
(C) An incorporated town; or
(D) Any other district or political subdivision or any board, commission, or agency of the political subdivisions under subdivisions (11)(A)-(C) of this section;
(12) (A) "Lottery" means a game of chance approved by the Arkansas Lottery Commission and operated under this chapter.
(B) "Lottery" includes without limitation:
(i) An instant ticket;
(ii) A draw game;
(iii) Participation in a multistate or multisovereign game; and
(iv) A raffle.
(C) "Lottery" does not include:
(i) Casino gambling;
(ii) A video lottery;
(iii) Pari-mutuel wagering on horse racing or greyhound racing governed by the Arkansas Horse Racing Law, 23-110-101 et seq., or the Arkansas Greyhound Racing Law, 23-111-101 et seq., whether the pari-mutuel wagering is on live racing, simulcast racing, or races conducted in the past and rebroadcast by electronic means;
(iv) Wagering on electronic games of skill under the Local Option Horse Racing and Greyhound Racing Electronic Games of Skill Act, 23-113-101 et seq.; or
(v) Conducting or participating in charitable bingo and raffles under the Charitable Bingo and Raffles Enabling Act, 23-114-101 et seq.;
(13) "Lottery proceeds" means all revenue derived from the sale of tickets or shares and all other moneys derived from or in connection with the operation of a lottery, including without limitation fees, offsets, reimbursements, insurance proceeds, damages, and liquidated damages collected or imposed by the Arkansas Lottery Commission under this chapter;
(14) (A) "Major procurement contract" means a contract for a gaming product or service costing more than seventy-five thousand dollars ($75,000), including without limitation:
(i) A major advertising contract;
(ii) An annuity contract;
(iii) A prize payment agreement;
(iv) A consulting service;
(v) Lottery equipment;
(vi) Tickets; and
(vii) Any other product and service unique to lotteries.
(B) "Major procurement contract" does not include a material, supply, equipment, or service common to the ordinary operations of the Arkansas Lottery Commission.
(C) When the cost of a proposed contract for a gaming product or service is to be paid in whole or in part on a contingent basis, the Arkansas Lottery Commission shall estimate the value of the proposed contract to determine whether it is a major procurement contract;
(15) "Member of a minority" means a lawful permanent resident of this state who is:
(A) African American;
(B) Hispanic American;
(C) American Indian;
(D) Asian American; or
(E) Pacific Islander American;
(16) "Minority-owned business" means a business that is owned by:
(A) An individual who is a member of a minority who reports as his or her personal income for Arkansas income tax purposes the income of the business;
(B) A partnership in which a majority of the ownership interest is owned by one (1) or more members of a minority who report as their personal income for Arkansas income tax purposes more than fifty percent (50%) of the income of the partnership; or
(C) A corporation organized under the laws of this state in which a majority of the common stock is owned by one (1) or more members of a minority who report as their personal income for Arkansas income tax purposes more than fifty percent (50%) of the distributed earnings of the corporation;
(17) "Net proceeds" means lottery proceeds less operating expenses;
(18) "Nonlottery state educational resources" means the same as defined in 6-85-204;
(19) "Operating expenses" means all costs of doing business, including without limitation:
(A) Prizes, commissions, and other compensation paid to retailers;
(B) Contracts for products or services necessary for the operation of the lottery, including without limitation the execution of major procurement contracts;
(C) Advertising and marketing costs;
(D) Personnel costs;
(E) Capital costs or depreciation of property and equipment;
(F) Funds for compulsive gambling education and treatment;
(G) The payment of sums to the Arkansas State Claims Commission for the reconciliation of valid claims against the Arkansas Lottery Commission;
(H) Payments for the cost of a state and federal criminal background check;
(I) Payments to the Department of Higher Education to:
(i) Reimburse the Department of Higher Education for the costs of administering scholarship awards funded with net proceeds; and
(ii) Replenish nonlottery state educational resources expended by the Department of Higher Education on scholarship awards otherwise funded with net proceeds;
(J) Amounts annually transferred to a fidelity fund under 23-115-603;
(K) Amounts paid to governmental entities for goods or services provided to the Arkansas Lottery Commission, including without limitation services provided by the Division of Legislative Audit, the Department of Human Services, and the Department of Finance and Administration; and
(L) Withholding and payment of income taxes from lottery prizes.
(20) "Person" means any individual, corporation, partnership, unincorporated association, or other legal entity;
(21) (A) "Public official" means:
(i) The Governor;
(ii) The Lieutenant Governor;
(iii) The Secretary of State;
(iv) The Treasurer of State;
(v) The Attorney General;
(vi) The Commissioner of State Lands;
(vii) The Auditor of State; or
(viii) A member of the General Assembly.
(B) "Public official" includes an individual during the time between the date he or she is elected and the date he or she takes office;
(22) "Retailer" means a person who sells tickets or shares on behalf of the Arkansas Lottery Commission under a license;
(23) "Share" means any intangible evidence of participation in a lottery;
(24) "Ticket" means any tangible evidence issued by a lottery to provide participation in a lottery;
(25) (A) "Vendor" means a person who provides or proposes to provide goods or services to the Arkansas Lottery Commission under a major procurement contract.
(B) "Vendor" does not include:
(i) An employee of the Arkansas Lottery Commission;
(ii) A retailer; or
(iii) A state agency or instrumentality.
(C) "Vendor" includes a corporation whose stock is publicly traded and that is the parent company of the contracting party in a major procurement contract; and
(26) "Video lottery" means a lottery game that allows a game to be played using an electronic computer and an interactive computer terminal device:
(A) That is equipped with a video screen and keys and a keyboard or other equipment allowing input by an individual player;
(B) Into which the player inserts coins, currency, vouchers, or tokens as consideration in order for play to be available; and
(C) Through which the player may receive free games, coins, tokens, or credits that may be redeemed for cash, annuitized payments over time, a noncash prize, or nothing, as may be determined wholly or predominantly by chance.