As Passed by the House                        1            

123rd General Assembly                                             4            

   Regular Session                             Sub. S. B. No. 333  5            

      1999-2000                                                    6            


SENATORS KEARNS-BLESSING-GARDNER-MUMPER-HERINGTON-DRAKE-PRENTISS   8            

 REPRESENTATIVES WILLAMOWSKI-FERDERBER-AUSTRIA-MOTTLEY-SCHULER-    9            

   PERRY-VESPER-BOYD-JACOBSON-O'BRIEN-COLLIER-BRADING-BARRETT-     10           

                         BRITTON-VERICH                            11           


_________________________________________________________________   12           

                          A   B I L L                                           

             To amend sections 1716.03 and 2915.08 of the Revised  14           

                Code to require that certain charitable            15           

                organizations applying for a bingo license                      

                include in the application their registration and  16           

                financial reporting status, and to exempt certain  17           

                public schools and booster clubs that solicit                   

                contributions from the requirements that they      18           

                file registration statements with the Attorney                  

                General.                                                        




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        20           

      Section 1.  That sections 1716.03 and 2915.08 of the         22           

Revised Code be amended to read as follows:                        23           

      Sec. 1716.03.  The following shall not be required to file   32           

a registration statement as provided in section 1716.02 of the     33           

Revised Code:                                                      34           

      (A)  Any religious agencies and organizations, and           36           

charities, agencies, and organizations operated, supervised, or    37           

controlled by a religious organization;                            38           

      (B)  Any charitable organization that meets all of the       40           

following requirements:                                            41           

      (1)  It has been in continuous existence in this state for   43           

a period of at least two years;                                    44           

      (2)  It has received from the internal revenue service a     46           

                                                          2      


                                                                 
determination letter that is currently in effect, stating that     47           

the charitable organization is exempt from federal income          48           

taxation under subsection 501(a) and described in subsection       49           

501(c)(3) of the Internal Revenue Code;                            50           

      (3)  It has registered with the attorney general as a        52           

charitable trust pursuant to section 109.26 of the Revised Code;   53           

      (4)  It has filed an annual report with and paid the         55           

required fee to the attorney general pursuant to section 109.31    56           

of the Revised Code.                                               57           

      (C)  Any educational institution, when solicitation of       59           

contributions is confined to alumni, faculty, trustees, or the     60           

student membership and their families;                             61           

      (D)  Every person other than an individual, when             63           

solicitation of contributions for a charitable purpose or on       64           

behalf of a charitable organization is confined to its existing    65           

membership, present or former employees, or present or former      66           

trustees;                                                          67           

      (E)  ANY PUBLIC PRIMARY OR SECONDARY SCHOOL, WHEN            69           

SOLICITATION OF CONTRIBUTIONS IS CONFINED TO ALUMNI, FACULTY, OR   70           

THE GENERAL POPULATION OF THE LOCAL SCHOOL DISTRICT;               71           

      (F)  ANY BOOSTER CLUB THAT IS ORGANIZED AND OPERATED IN      73           

CONJUNCTION WITH AND FOR THE BENEFIT OF STUDENTS OF PUBLIC         74           

PRIMARY OR SECONDARY SCHOOLS;                                      75           

      (G)  Any charitable organization that does not receive       77           

gross revenue, excluding grants or awards from the government or   78           

an organization that is exempt from federal income taxation under  79           

section 501(a) and described in section 501(c)(3) of the Internal  80           

Revenue Code, in excess of twenty-five thousand dollars during     81           

its immediately preceding fiscal year, if the organization does    82           

not compensate any person primarily to solicit contributions.      83           

      If the gross revenue, excluding grants or awards from the    85           

government or an organization that is exempt from federal income   86           

taxation under section 501(a) and described in section 501(c)(3)   87           

of the Internal Revenue Code, of any charitable organization       88           

                                                          3      


                                                                 
received during any fiscal year exceeds twenty-five thousand       89           

dollars, the charitable organization, within thirty days after     90           

the receipt of the revenue, shall file a registration statement    91           

with the attorney general pursuant to section 1716.02 of the       92           

Revised Code.                                                      93           

      Sec. 2915.08.  (A)  Annually before the first day of         102          

January, a charitable organization that desires to conduct bingo   103          

games shall make out and deliver to the attorney general, upon a   104          

form to be furnished by the attorney general for that purpose, an  105          

application for a license to conduct bingo and a license fee of    106          

one hundred dollars or a reduced license fee established by the    107          

attorney general pursuant to division (G) of this section.  The    108          

application shall be in the form prescribed by the attorney        109          

general and shall be signed and sworn to by the applicant.         110          

      The application shall contain the following:                 112          

      (1)  The name and post-office address of the applicant;      114          

      (2)  A statement that the applicant is a charitable          116          

organization and that it has been in continuous existence as a     117          

charitable organization in this state for two years immediately    118          

preceding the making of the application or for five years in the   119          

case of a fraternal organization or a nonprofit medical            120          

organization;                                                      121          

      (3)  The location at which the organization will conduct     123          

the bingo game, which location shall be within the county in       124          

which the principal place of business of the applicant is          125          

located, the days of the week and the times on each of those days  126          

when a bingo session will be conducted, whether the organization   127          

owns, leases, or subleases the premises, and a copy of the rental  128          

agreement if it leases or subleases the premises;                  129          

      (4)  A statement of the applicant's previous history,        131          

record, and association that is sufficient to establish that the   132          

applicant is a charitable organization, and a copy of a            133          

determination letter that is issued by the Internal Revenue        134          

Service and states that the organization is tax exempt under       135          

                                                          4      


                                                                 
subsection 501(a) and described in subsection 501(c)(3),           136          

501(c)(4), 501(c)(8), 501(c)(10), or 501(c)(19) of the Internal    137          

Revenue Code;                                                      138          

      (5)  A statement as to whether the applicant has ever had    140          

any previous application refused, whether it previously has had a  141          

license revoked or suspended, and the reason stated by the         142          

attorney general for the refusal, revocation, or suspension;       143          

      (6)  A statement of the charitable purpose for which the     145          

bingo proceeds will be used;                                       146          

      (7)  Other necessary and reasonable information that the     148          

attorney general may require by rule adopted pursuant to section   149          

111.15 of the Revised Code;                                        150          

      (8)  IF THE APPLICANT IS A CHARITABLE TRUST AS DEFINED IN    153          

SECTION 109.23 OF THE REVISED CODE, A STATEMENT AS TO WHETHER IT   154          

HAS REGISTERED WITH THE ATTORNEY GENERAL PURSUANT TO SECTION       155          

109.26 OF THE REVISED CODE OR FILED ANNUAL REPORTS PURSUANT TO     156          

SECTION 109.31 OF THE REVISED CODE, AND, IF IT IS NOT REQUIRED TO  158          

DO EITHER, THE EXEMPTION IN SECTION 109.26 OR 109.31 OF THE        159          

REVISED CODE THAT APPLIES TO IT;                                                

      (9)  IF THE APPLICANT IS A CHARITABLE ORGANIZATION AS        161          

DEFINED IN SECTION 1716.01 OF THE REVISED CODE, A STATEMENT AS TO  162          

WHETHER IT HAS FILED WITH THE ATTORNEY GENERAL A REGISTRATION      164          

STATEMENT PURSUANT TO SECTION 1716.02 OF THE REVISED CODE AND A    165          

FINANCIAL REPORT PURSUANT TO SECTION 1716.04 OF THE REVISED CODE,  166          

AND, IF IT IS NOT REQUIRED TO DO BOTH, THE EXEMPTION IN SECTION    168          

1716.03 OF THE REVISED CODE THAT APPLIES TO IT;                    169          

      (10)  In the case of an applicant seeking to qualify as a    171          

youth athletic park organization under division (CC) of section    172          

2915.01 of the Revised Code, a statement issued by a board or      173          

body vested with authority under Chapter 755. of the Revised Code  174          

for the supervision and maintenance of recreation facilities in    175          

the territory in which the organization is located, certifying     176          

that the playing fields owned by the organization were used for    177          

at least one hundred days during the year in which the statement   178          

                                                          5      


                                                                 
is issued, and were open for use to all residents of that          179          

territory, regardless of race, color, creed, religion, sex, or     180          

national origin, for athletic activities by youth athletic         181          

organizations, as defined in division (BB) of section 2915.01 of   182          

the Revised Code, that do not discriminate on the basis of race,   183          

color, creed, religion, sex, or national origin, and that the      184          

fields were not used for any profit-making activity at any time    185          

during the year.  That type of board or body is authorized to      186          

issue the statement upon request and shall issue the statement if  187          

it finds that the applicant's playing fields were so used.         188          

      The attorney general, within thirty days after receiving a   190          

timely filed application from a charitable organization that has   191          

been issued a bingo license that has not expired and has not been  192          

revoked or suspended, shall send a temporary permit to the         193          

applicant specifying the date on which the application was filed   194          

with the attorney general and stating that, pursuant to section    195          

119.06 of the Revised Code, the applicant may continue to conduct  196          

bingo games until a new license is granted or, if the application  197          

is rejected, until fifteen days after notice of the rejection is   198          

mailed to the applicant.  The temporary permit does not affect     199          

the validity of the applicant's application and does not grant     200          

any rights to the applicant except those rights specifically       201          

granted in section 119.06 of the Revised Code.  The issuance of a  202          

temporary permit by the attorney general pursuant to this          203          

paragraph does not prohibit the attorney general from rejecting    204          

the applicant's application because of acts that the applicant     205          

committed, or actions that he THE APPLICANT failed to take,        206          

before or after the issuance of the temporary permit.              208          

      (B)(1)  The attorney general shall adopt rules to enforce    210          

sections 2915.01, 2915.02, and 2915.07 to 2915.12 of the Revised   211          

Code, to ensure that bingo games are conducted in accordance with  212          

those sections, and to maintain proper control over the conduct    213          

of bingo games.  The rules, except rules adopted pursuant to       214          

division (A)(7) of this section, shall be adopted pursuant to      215          

                                                          6      


                                                                 
Chapter 119. of the Revised Code.  The attorney general shall      216          

license charitable organizations to conduct bingo games in         217          

conformance with this chapter and with the licensing provisions    218          

of Chapter 119. of the Revised Code.                               219          

      (2)  The attorney general may refuse to grant a bingo        221          

license to any organization, or revoke or suspend the license of   222          

any organization, that does any of the following or to which any   223          

of the following applies:                                          224          

      (a)  Fails or has failed at any time to meet any             226          

requirement of SECTION 109.26, 109.31, OR 1716.02, OR sections     227          

2915.07 to 2915.11 of the Revised Code, or violates or has         229          

violated any provision of sections 2915.02 or 2915.07 to 2915.12   230          

of the Revised Code or any rule adopted by the attorney general    231          

pursuant to this section;                                                       

      (b)  Makes or has made an incorrect or false statement that  233          

is material to the granting of the license in an application       234          

filed pursuant to division (A) of this section;                    235          

      (c)  Submits or has submitted any incorrect or false         237          

information relating to an application if the information is       238          

material to the granting of the license;                           239          

      (d)  Maintains or has maintained any incorrect or false      241          

information that is material to the granting of the license in     242          

the records required to be kept pursuant to division (A) of        243          

section 2915.10 of the Revised Code, if applicable;                244          

      (e)  The attorney general has good cause to believe will     246          

not conduct its bingo games in accordance with sections 2915.02    247          

and 2915.07 to 2915.12 of the Revised Code or with any rule        248          

adopted by the attorney general pursuant to this section.          249          

      (3)  For the purposes of this division, any action of an     251          

officer, trustee, agent, representative, or bingo game operator    252          

of an organization is an action of the organization.               253          

      (C)  The attorney general may grant bingo licenses to        255          

charitable organizations that are branches, lodges, or chapters    256          

of national charitable organizations.                              257          

                                                          7      


                                                                 
      (D)  The attorney general shall send notice in writing to    259          

the prosecuting attorney and sheriff of the county in which the    260          

organization will conduct the bingo game, as stated in its         261          

application for a license or amended license, and to any other     262          

law enforcement agency in that county that so requests, of all of  263          

the following:                                                     264          

      (1)  The issuance of the license;                            266          

      (2)  The issuance of the amended license;                    268          

      (3)  The rejection of an application for and refusal to      270          

grant a license;                                                   271          

      (4)  The revocation of any license previously issued;        273          

      (5)  The suspension of any license previously issued.        275          

      (E)  A bingo license issued by the attorney general shall    277          

set forth the information contained on the application of the      278          

charitable organization that the attorney general determines is    279          

relevant, including, but not limited to, the location at which     280          

the organization will conduct the bingo game and the days of the   281          

week and the times on each of those days when a bingo session      282          

will be conducted.  If the attorney general refuses to grant or    283          

revokes or suspends a bingo license, he THE ATTORNEY GENERAL       284          

shall notify the applicant in writing and specifically identify    286          

the reason for the refusal, revocation, or suspension in           287          

narrative form and, if applicable, by identifying the section of   288          

the Revised Code violated.  The failure of the attorney general    289          

to give the written notice of the reasons for the refusal,         290          

revocation, or suspension or a mistake in the written notice does  291          

not affect the validity of the attorney general's refusal to       292          

grant, or the revocation or suspension of, a bingo license.  If    293          

the attorney general fails to give the written notice or if there  294          

is a mistake in the written notice, the applicant may bring an     295          

action to compel the attorney general to comply with this          296          

division or to correct the mistake, but the attorney general's     297          

order refusing to grant, or revoking or suspending, a bingo        298          

license shall not be enjoined during the pendency of the action.   299          

                                                          8      


                                                                 
      (F)  A charitable organization that has been issued a bingo  301          

license pursuant to division (B) of this section but that cannot   302          

conduct bingo sessions at the location, or on the day of the week  303          

or the time, specified on the license due to circumstances beyond  304          

its control may apply, without charge, in writing to the attorney  305          

general for an amended bingo license.  The application shall       306          

describe in detail the causes making it impossible for the         307          

organization to conduct its bingo sessions in conformity with its  308          

license and shall indicate the location, days of the week, and     309          

times on each of those days when it desires to conduct a bingo     310          

session.  If the attorney general approves the application for     311          

the amended license, he THE ATTORNEY GENERAL shall issue the       312          

amended license in accordance with division (E) of this section,   313          

and the organization shall surrender its original license to the   314          

attorney general.  The attorney general shall refuse to grant an   315          

application for an amended bingo license according to the terms    316          

of division (B) of this section.                                   317          

      (G)  The attorney general, by rule adopted pursuant to       319          

section 111.15 of the Revised Code, shall establish a schedule of  320          

reduced license fees for charitable organizations that desire to   321          

conduct bingo games during fewer than twenty-six weeks in any      322          

calendar year.                                                     323          

      Section 2.  That existing sections 1716.03 and 2915.08 of    325          

the Revised Code are hereby repealed.                              326