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Senate committee OKs law enforcement authority for lottery investigators to pursue fraud
Summary
The committee approved a bill granting limited statewide law-enforcement authority to designated investigators in the Arkansas Lottery's enforcement division to investigate lottery fraud and related crimes, a change the agency said is needed to protect employees, retailers and scholarship revenues.
The committee voted to pass a measure that gives designated employees in the Arkansas Lottery's investigative unit limited law-enforcement authority to investigate lottery-related crimes, subpoena records and refer cases to prosecutors.
Senator John Dodson carried the bill and called directors from the Arkansas Lottery to the committee to explain why investigators need authority beyond the agency's current administrative tools. Blake Hudson, director of investigations and enforcement for the lottery, told senators the office had seen organized schemes, multi-jurisdictional fraud and incidents at the lottery's claims center that its current resources struggle to address.
"We're looking for a few people that are allowed to have this law enforcement authority... Our claims center operations as well as community events make us clear targets for criminal behavior," Hudson said, describing recent cases involving tens of thousands of dollars in alleged fraud and theft.
Hudson and the lottery team said the measure would not create a police force, require cars or lights, or generate a general taxpayer appropriation; the agency said it would use existing revenue-funded positions and that the investigators would be Commission on Law Enforcement Standards and Training (CLEST)-certified officers.
Senators asked about scope and limits. Senator Sullivan asked whether recovered funds would return to lottery proceeds; agency witnesses said recovered funds would go to net proceeds and that prosecutorial decisions remain with the attorney general or local prosecutors. Senator Hammer asked those designated would be CLEST-certified; the lottery said the investigators would be certified and subject to CLEST oversight.
The lottery described several open investigations, including multi-jurisdictional schemes and organized retail fraud that the agency said had caused losses in the tens of thousands of dollars and that, over time, could reduce scholarship funds financed by lottery revenue.
After questions from members, Senator Dodson closed, asked for a favorable vote, and the committee approved the bill on a voice vote. The transcript does not include a roll-call tally.
Ending: With committee approval, the measure will move forward in the legislative process; the lottery said it will continue coordinating with the attorney general's office and local prosecutors for prosecutions and that CLEST will govern training and oversight.
