AR SB28

Establishes a trust account for scholarship award supplements within a financial institution where the Arkansas Lottery office deposits excess funding and remaining net proceeds from the previous academic year.

Allows management fees charged by financial institutions to manage trust accounts or funds maintained by the Department of Higher Education or the lottery office to be classified as operating expenses.

Directs the lottery office to transfer funds to the Scholarship Shortfall Reserve Trust Account to maintain a balance equal to $20,000,000 before depositing remaining proceeds into the scholarship award supplements trust account.

Requires annual transfer of accumulated funds from the scholarship award supplements trust account to the Department of Higher Education for distribution as scholarship award supplements.

Mandates the lottery office follow State Board of Finance investment policy guidelines when selecting financial institutions and managing lottery net proceeds deposited in trust accounts.