AR Code § 23-115-601 (2020)
2020 Arkansas Code|Title 23 - Public Utilities and Regulated Industries|Subtitle 4 - Miscellaneous Regulated Industries|Chapter 115 - Arkansas Scholarship Lottery Act|Subchapter 6 - Retailers|§ 23-115-601. Retailers

 (a) The General Assembly recognizes that to conduct a successful lottery, the Office of the Arkansas Lottery must develop and maintain a statewide network of retailers that will serve the public convenience and promote the sale of tickets or shares and the playing of lotteries while ensuring the integrity of lottery operations, games, and activities.  (b) The office shall make every effort to provide small retailers a chance to participate in the sales of tickets or shares.  (c) The office shall provide for compensation to retailers in the form of commissions in an amount of not less than five percent (5%) of gross sales of tickets and shares and may provide for other forms of compensation for services rendered in the sale or cashing of tickets or shares.  (d)  (1) For purposes of display, the office shall issue a license to each person that it licenses as a retailer.  (2)  (A) A retailer shall post its license and keep the license conspicuously displayed in a location on the premises accessible to the public.  (B) A license is not assignable or transferable.      (e)  (1) A person seeking to be a retailer shall apply to the Identification Bureau of the Division of Arkansas State Police for a state and federal criminal background check, to be conducted by the bureau and the Federal Bureau of Investigation.  (2) The state and federal criminal background check shall conform to applicable federal standards and shall include the taking of fingerprints.  (3) The applicant shall sign a consent to the release of information for the state and federal criminal background check.  (4) The office shall be responsible for the payment of any fee associated with the state and federal criminal background check.  (5) Upon completion of the state and federal criminal background check, the bureau shall forward to the office all releasable information obtained concerning the applicant.    (f)  (1) The office shall develop a list of objective criteria upon which the qualification of retailers shall be based.  (2) The office shall develop separate criteria to govern the selection of retailers of instant tickets.  (3) In developing the criteria, the office shall consider certain factors, including without limitation:  (A) The applicant's financial responsibility;  (B) Security of the applicant's place of business or activity;  (C) Accessibility to the public;  (D) The applicant's integrity; and  (E) The applicant's reputation.      (g) The office shall not consider political affiliation, activities, or monetary contributions to political organizations or candidates for any public office.  (h) The office shall not select a person to be a retailer that:  (1)  (A) Is not current in filing all applicable tax returns to the State of Arkansas and in payment of all taxes, interest, and penalties owed to the State of Arkansas, excluding items under formal appeal under applicable statutes.  (B) The Department of Finance and Administration shall provide to the office the information required to verify compliance with subdivision (h)(1)(A) of this section;    (2) Has been convicted of a criminal offense related to the security or integrity of a lottery in this or any other jurisdiction;  (3)  (A) Has been convicted of any illegal gambling activity, false statements, false swearing, or perjury in this or any other jurisdiction or convicted of any crime punishable by more than one (1) year of imprisonment or a fine of more than one thousand dollars ($1,000), or both.  (B) Subdivision (h)(3)(A) of this section shall not apply if the person's civil rights have been restored and at least five (5) years have elapsed from the date of the completion of the sentence without a subsequent conviction of a crime described in subdivision (h)(3)(A) of this section;    (4) Has been found to have violated this chapter or any rule, policy, or procedure of the office unless:  (A) Ten (10) years have passed since the violation; or  (B) The office finds the violation both minor and unintentional in nature;    (5) Is a vendor or an employee or agent of a vendor doing business with the office;  (6) Is an employee of the office or a member of the immediate family of an employee of the office;  (7) Has made a statement of material fact to the office knowing the statement to be false; or  (8)  (A) Is engaged exclusively in the business of selling tickets or shares.  (B) Subdivision (h)(8)(A) of this section does not preclude the office from selling or giving away tickets or shares for promotional purposes.      (i)  (1) A person applying to become a retailer shall be charged a uniform application fee determined by rule for each lottery outlet.  (2) A retailer license may be renewable annually in the discretion of the office unless canceled or terminated by the office.  (3) The office may establish by rule a reasonable fee for the issuance, reissuance, fine, or penalty associated with the process, procedures, or enforcement necessary to issue or maintain a retailer license, including without limitation to cover the cost of:  (A) An initial and any subsequent state and federal criminal background check under this subchapter; and  (B) The reporting, communications technology, and banking processes necessary to implement and enforce this subchapter.      (j)  (1) A retailer or an applicant to be a retailer shall not provide a gift or compensation to:  (A) The Director of the Office of the Arkansas Lottery, an employee of the office, the Secretary of the Department of Finance and Administration, or the Deputy Director of the Department of Finance and Administration; or  (B) A member of the immediate family of the Director of the Office of the Arkansas Lottery, an employee of the office, the secretary, or the Deputy Director of the Department of Finance and Administration.    (2)  (A) A person who knowingly violates subdivision (j)(1) of this section shall be guilty of a Class A misdemeanor.  (B) The Arkansas Ethics Commission shall have the authority to investigate and enforce alleged violations of subdivision (j)(1) of this section granted by §§ 7-6-217 and 7-6-218.