(b) Net proceeds from the state lottery used to fund scholarships under this rule shall:

1. (1) Be used exclusively for the purposes set out in Arkansas Constitution, Amendment 87, and this part; and
2. (2) Supplement and shall not supplant nonlottery state educational resources.

(d)

1. (1)

   1. (A) Subject to the availability of net revenue, the scholarship award amount under this part for an academic year for a full-time recipient enrolled in a four-year approved institution of higher education is:

(i) One thousand dollars ($1,000) for a recipient who has earned less than twenty-seven (27) semester credit hours;

1. (ii) Four thousand dollars ($4,000) for a recipient who has earned at least twenty-seven (27) semester credit hours but less than fifty-seven (57) semester credit hours;

   1. (iii) Four thousand dollars ($4,000) for a recipient who has earned at least fifty-seven (57) semester credit hours but less than eighty-seven (87) semester credit hours; and

      1. (iv)

(b) (b) A recipient shall receive no more than one (1) year of the scholarship provided under subdivision (d)(1)(A)(iv)(a) of this section unless the recipient is enrolled in a baccalaureate degree program that requires more than one hundred twenty (120) semester credit hours as provided under Arkansas Code § 6-61-232.

1. (c)
2. (1) (c)(1) A recipient who is eligible to receive the scholarship under subdivision (d)(1)(A)(iv)(a) of this section may receive the scholarship while enrolled in a semester as a part-time student.

3. (2) (2) The scholarship amount for the semester in which a recipient is enrolled as a part-time student under subdivision (d)(1)(A)(iv)(c)(1) of this section shall be prorated by the number of credit hours in which the recipient is enrolled.

   1. (B)

      1. (i) To determine the correct scholarship award amount based on credit hours, a first- time recipient shall submit a current college or university transcript if the first-time recipient has earned any semester credit hours to the Division of Higher Education no later than a date determined by the Division of Higher Education prior to the academic year for which the first-time recipient will receive an initial scholarship award.
      2. (ii) A first-time recipient who does not submit a transcript to the Division of Higher Education on or before the date determined by the Division of Higher Education shall receive the award amount under subdivision (d)(1)(A)(i) of this section.

   2. (C)

      1. (i) An applicant may elect for the earned semester credit hours under subdivision (d)(1)(A) of this section to be only those semester credit hours earned after graduating from high school or obtaining a high school equivalency diploma approved by the Division of Workforce Services.
      2. (ii) If the applicant makes the election under subdivision (d)(1)(C)(i) of this section, any semester credit hours earned through concurrent credit or any other method before graduating high school or obtaining a high school equivalency diploma approved by the Division of Workforce Services shall not be counted as earned semester credit hours for the purposes of determining a recipient’s scholarship award amount under subdivision (d)(1)(A) of this section.

4. (2)

   1. (A) The Division of Higher Education shall award an aggregate amount of scholarship awards to nontraditional students of up to fifteen million dollars ($15,000,000).

   2. (B)

      1. (i) The Division of Higher Education shall return to the Office of the Arkansas Lottery the excess funding, if any, for scholarship awards the Division of Higher Education received under Arkansas Code § 23-115-801.
      2. (ii) The office shall deposit any funds received from the Division of Higher Education under subdivision (d)(2)(B) into the Lottery Scholarship Trust Account established under Arkansas Code § 23-115-801(b).

   3. (C) Priority for scholarships awarded to nontraditional students is based on:

      1. (i) The applicant's level of progress toward completion of:

(b) (b) An associate degree;

1. (c) (c) A nursing diploma;

   1. (d) (d) A baccalaureate degree; or

(e) (e) A graduate-level or professional degree; or

1. (ii) Other criteria established by the Division of Higher Education.

2. (3) Subject to the availability of net revenue, the scholarship award for an academic year for a full-time student enrolled in one (1) of the following institutions of higher education is one thousand dollars ($1,000) for the first year and three thousand dollars ($3,000) for the second year:

   1. (A) A two-year approved institution of higher education;
   2. (B) A branch campus of a four-year approved institution of higher education; or
   3. (C) An approved school of nursing.

3. (4) Subject to the availability of net revenue, the scholarship award amount for a part-time student recipient shall be:

   1. (A) One-half (1/2) of the award amount for a full-time student recipient, if the recipient is enrolled in at least six (6) semester hours but less than nine (9) semester hours; or
   2. (B) Three-quarters (3/4) of the award amount for a full-time student recipient, if the recipient is enrolled in at least nine (9) semester hours but less than the number of hours required for a full-time student recipient.
4. (5) A current recipient who maintains eligibility for the scholarship under this part shall continue to receive the scholarship award amount first awarded to the recipient.

5. (6) The Division of Higher Education shall give priority for a scholarship award to a full-time or part-time student:

   1. (A) Who meets the eligibility requirements under this part; and

   2. (B) Whose parent, by birth or legal adoption:

      1. (i) Was a resident of the State of Arkansas at the time that person entered the service of the United States Armed Forces or whose official residence is in Arkansas; and
      2. (ii) Was a member of the United States Armed Forces who was killed while performing military duty:

(e) Annually by December 15, the Legislative Council shall provide to the General Assembly its recommendations for any changes to the:

1. (1) Award amounts;
2. (2) Number or type of scholarships; and
3. (3) Eligibility requirements.

(h)

1. (1) If the Division of Higher Education has less than a sufficient amount from net proceeds from the state lottery to provide for the scholarship commitments under this part, the Division of Higher Education shall give priority for continued financial support under this part to a student with continuing eligibility superior to first-time applicants.

2. (2) If the funding is insufficient to fully fund the scholarships for students with continuing eligibility created under this part, the Division of Higher Education shall award scholarships based upon the following criteria to students with continuing eligibility as follows:

   1. (A) First, to students who have the highest level of progress toward completion of a certificate, an associate degree, a baccalaureate degree, or a graduate-level or professional degree, and who are enrolled in a program of study that is:

      1. (i) In an area of critical workforce need as determined by the Division of Higher Education; or
      2. (ii) In a science, technology, engineering, or mathematics field;
   2. (B) Second, to students who have the highest level of progress toward completion of a certificate, an associate degree, a baccalaureate degree, or a graduate-level or professional degree, and who are enrolled in a program of study other than those listed in subdivision (h)(2)(A) of this section; and
   3. (C) Last, in the event funding is insufficient to fully fund students under subdivision (h)(2)(A) or (h)(2)(B) of this section, to students who have the highest postsecondary grade point average.

3. (3)

   1. (A) If after funding all students with continuing eligibility under this section funding is insufficient to fund all qualified first-time applicants, the Division of Higher Education shall award scholarships to first-time applicants in order of priority based upon the applicants' ACT superscore or ACT equivalent superscore.
   2. (B) If after prioritizing first-time applicants based upon the applicants' ACT or ACT equivalent scores funding is insufficient to fund all applicants with like ACT or ACT equivalent scores, the Division of Higher Education shall determine who receives an award by random drawing.