(a) For an academic year, the following shall be used to fund Arkansas Workforce Challenge Scholarships under this part:

1. (1) Excess funding returned to the Office of the Arkansas Lottery under Arkansas Code § 6-85-212(d)(2)(B)(i) from the previous academic year; and

2. (2) Net proceeds remaining from the previous academic year after the Office of the Arkansas Lottery:

   1. (A) Transfers the funds requested by the Division of Higher Education under Arkansas Code § 23-115-801(c)(2); and
   2. (B) Deposits the amount necessary to maintain the Scholarship Shortfall Reserve Trust Account under Arkansas Code § 23-115-802 in an amount equal to twenty million dollars ($20,000,000).

(b)

1. (1) A scholarship under this part shall not be awarded for an academic year if:

   1. (A) Less than two hundred fifty thousand dollars ($250,000) is available under subsection (a) of this section; or
   2. (B) The division received a loan from the Scholarship Shortfall Reserve Trust Account under Arkansas Code § 23-115-802 for the Arkansas Academic Challenge Scholarship Program, Arkansas Code § 6-85-201 et seq., for the previous academic year.
2. (2) Any funds under subsection (a) of this section that are not disbursed for scholarships under this part shall be carried over to the next academic year to be used for scholarships under this part.