H. B. No. 455 As Introduced

As Introduced

128th General Assembly

Regular Session

2009-2010

H. B. No. 455

Representatives Goodwin, Lundy

Cosponsors: Representatives Mecklenborg, Newcomb, Evans, Domenick, Stebelton, Grossman, Zehringer, Sayre, Harwood

A BILL

To amend sections 2915.01, 2915.02, 2915.091, and

2915.101 of the Revised Code to authorize a

charitable organization to purchase, lease, and

use instant bingo ticket dispensers, to specify

that these dispensers are not slot machines, to

modify the definitions of veteran's and fraternal

organizations, to increase the number of times in

a preceding year a veteran's or fraternal

organization may lease premises to charitable

organizations for festivals at which games of

chance are conducted, to allow a charitable

organization to spend a reasonable amount of its

gross profit to pay property taxes and assessments

on the premises where the organization conducts

bingo, and to adjust the threshold amount

governing the distribution of instant bingo net

profit by a veteran's, fraternal, or sporting

organization.

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

Section 1. That sections 2915.01, 2915.02, 2915.091, and	19
2915.101 of the Revised Code be amended to read as follows:	20

Sec. 2915.01. As used in this chapter:

(A) "Bookmaking" means the business of receiving or paying	22
off bets.	23

(B) "Bet" means the hazarding of anything of value upon the	24
result of an event, undertaking, or contingency, but does not	25
include a bona fide business risk.	26

(C) "Scheme of chance" means a slot machine, lottery, numbers	27
game, pool conducted for profit, or other scheme in which a	28
participant gives a valuable consideration for a chance to win a	29
prize, but does not include bingo, a skill-based amusement	30
machine, or a pool not conducted for profit.	31

(D) "Game of chance" means poker, craps, roulette, or other	32
game in which a player gives anything of value in the hope of	33
gain, the outcome of which is determined largely by chance, but	34
does not include bingo.	35

(E) "Game of chance conducted for profit" means any game of	36
chance designed to produce income for the person who conducts or	37
operates the game of chance, but does not include bingo.	38

(F) "Gambling device" means any of the following:

(1) A book, totalizer, or other equipment for recording bets;

(2) A ticket, token, or other device representing a chance,	41
share, or interest in a scheme of chance or evidencing a bet;	42

(3) A deck of cards, dice, gaming table, roulette wheel, slot	43
machine, or other apparatus designed for use in connection with a	44
game of chance;	45

(4) Any equipment, device, apparatus, or paraphernalia	46
specially designed for gambling purposes;	47

(5) Bingo supplies sold or otherwise provided, or used, in	48
violation of this chapter.	49

(G) "Gambling offense" means any of the following:

(1) A violation of section 2915.02, 2915.03, 2915.04,	51
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09,	52
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;	53

(2) A violation of an existing or former municipal ordinance	54
or law of this or any other state or the United States	55
substantially equivalent to any section listed in division (G)(1)	56
of this section or a violation of section 2915.06 of the Revised	57
Code as it existed prior to July 1, 1996;	58

(3) An offense under an existing or former municipal	59
ordinance or law of this or any other state or the United States,	60
of which gambling is an element;	61

(4) A conspiracy or attempt to commit, or complicity in	62
committing, any offense under division (G)(1), (2), or (3) of this	63
section.	64

(H) Except as otherwise provided in this chapter, "charitable	65
organization" means any tax exempt religious, educational,	66
veteran's, fraternal, sporting, service, nonprofit medical,	67
volunteer rescue service, volunteer firefighter's, senior	68
citizen's, historic railroad educational, youth athletic, amateur	69
athletic, or youth athletic park organization. An organization is	70
tax exempt if the organization is, and has received from the	71
internal revenue service a determination letter that currently is	72
in effect stating that the organization is, exempt from federal	73
income taxation under subsection 501(a) and described in	74
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or	75
501(c)(19) of the Internal Revenue Code, or if the organization is	76
a sporting organization that is exempt from federal income	77
taxation under subsection 501(a) and is described in subsection	78
501(c)(7) of the Internal Revenue Code. To qualify as a charitable	79
organization, an organization, except a volunteer rescue service	80
or volunteer firefighter's organization, shall have been in	81
continuous existence as such in this state for a period of two	82
years immediately preceding either the making of an application	83
for a bingo license under section 2915.08 of the Revised Code or	84
the conducting of any game of chance as provided in division (D)	85
of section 2915.02 of the Revised Code. A charitable organization	86
that is exempt from federal income taxation under subsection	87
501(a) and described in subsection 501(c)(3) of the Internal	88
Revenue Code and that is created by a veteran's organization, a	89
fraternal organization, or a sporting organization does not have	90
to have been in continuous existence as such in this state for a	91
period of two years immediately preceding either the making of an	92
application for a bingo license under section 2915.08 of the	93
Revised Code or the conducting of any game of chance as provided	94
in division (D) of section 2915.02 of the Revised Code.	95

(I) "Religious organization" means any church, body of	96
communicants, or group that is not organized or operated for	97
profit and that gathers in common membership for regular worship	98
and religious observances.	99

(J) "Educational organization" means any organization within	100
this state that is not organized for profit, the primary purpose	101
of which is to educate and develop the capabilities of individuals	102
through instruction by means of operating or contributing to the	103
support of a school, academy, college, or university.	104

(K) "Veteran's organization" means any individual post or	105
state headquarters of a national veteran's association or an	106
auxiliary unit of any individual post of a national veteran's	107
association, which post, state headquarters, or auxiliary unit ~~has~~	108
~~been in continuous existence in this state for at least two years~~	109
~~and~~is incorporated as a nonprofit corporation and either has	110
received a letter from the state headquarters of the national	111
veteran's association indicating that the individual post or	112
auxiliary unit is in good standing with the national veteran's	113
association or has received a letter from the national veteran's	114
association indicating that the state headquarters is in good	115
standing with the national veteran's association. As used in this	116
division, "national veteran's association" means any veteran's	117
association that has been in continuous existence as such for a	118
period of at least five years and either is incorporated by an act	119
of the United States congress or has a national dues-paying	120
membership of at least five thousand persons.	121

(L) "Volunteer firefighter's organization" means any	122
organization of volunteer firefighters, as defined in section	123
146.01 of the Revised Code, that is organized and operated	124
exclusively to provide financial support for a volunteer fire	125
department or a volunteer fire company and that is recognized or	126
ratified by a county, municipal corporation, or township.	127

(M) "Fraternal organization" means any society, order, state	128
headquarters, or association within this state, except a college	129
or high school fraternity, that is not organized for profit, that	130
is a branch, lodge, or chapter of a national or state	131
organization, that exists exclusively for the common business or	132
sodality of its members~~, and that has been in continuous existence~~	133
~~in this state for a period of five years~~.	134

(N) "Volunteer rescue service organization" means any	135
organization of volunteers organized to function as an emergency	136
medical service organization, as defined in section 4765.01 of the	137
Revised Code.	138

(O) "Service organization" means either of the following:

139

(1) Any organization, not organized for profit, that is	140
organized and operated exclusively to provide, or to contribute to	141
the support of organizations or institutions organized and	142
operated exclusively to provide, medical and therapeutic services	143
for persons who are crippled, born with birth defects, or have any	144
other mental or physical defect or those organized and operated	145
exclusively to protect, or to contribute to the support of	146
organizations or institutions organized and operated exclusively	147
to protect, animals from inhumane treatment or provide immediate	148
shelter to victims of domestic violence;	149

(2) Any organization that is described in subsection	150
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	151
and is either a governmental unit or an organization that is tax	152
exempt under subsection 501(a) and described in subsection	153
501(c)(3) of the Internal Revenue Code and that is an	154
organization, not organized for profit, that is organized and	155
operated primarily to provide, or to contribute to the support of	156
organizations or institutions organized and operated primarily to	157
provide, medical and therapeutic services for persons who are	158
crippled, born with birth defects, or have any other mental or	159
physical defect.	160

(P) "Nonprofit medical organization" means either of the	161
following:	162

(1) Any organization that has been incorporated as a	163
nonprofit corporation for at least five years and that has	164
continuously operated and will be operated exclusively to provide,	165
or to contribute to the support of organizations or institutions	166
organized and operated exclusively to provide, hospital, medical,	167
research, or therapeutic services for the public;	168

(2) Any organization that is described and qualified under	169
subsection 501(c)(3) of the Internal Revenue Code, that has been	170
incorporated as a nonprofit corporation for at least five years,	171
and that has continuously operated and will be operated primarily	172
to provide, or to contribute to the support of organizations or	173
institutions organized and operated primarily to provide,	174
hospital, medical, research, or therapeutic services for the	175
public.	176

(Q) "Senior citizen's organization" means any private	177
organization, not organized for profit, that is organized and	178
operated exclusively to provide recreational or social services	179
for persons who are fifty-five years of age or older and that is	180
described and qualified under subsection 501(c)(3) of the Internal	181
Revenue Code.	182

(R) "Charitable bingo game" means any bingo game described in	183
division (S)(1) or (2) of this section that is conducted by a	184
charitable organization that has obtained a license pursuant to	185
section 2915.08 of the Revised Code and the proceeds of which are	186
used for a charitable purpose.	187

(S) "Bingo" means either of the following:

188

(1) A game with all of the following characteristics:

189

(a) The participants use bingo cards or sheets, including	190
paper formats and electronic representation or image formats, that	191
are divided into twenty-five spaces arranged in five horizontal	192
and five vertical rows of spaces, with each space, except the	193
central space, being designated by a combination of a letter and a	194
number and with the central space being designated as a free	195
space.	196

(b) The participants cover the spaces on the bingo cards or	197
sheets that correspond to combinations of letters and numbers that	198
are announced by a bingo game operator.	199

(c) A bingo game operator announces combinations of letters	200
and numbers that appear on objects that a bingo game operator	201
selects by chance, either manually or mechanically, from a	202
receptacle that contains seventy-five objects at the beginning of	203
each game, each object marked by a different combination of a	204
letter and a number that corresponds to one of the seventy-five	205
possible combinations of a letter and a number that can appear on	206
the bingo cards or sheets.	207

(d) The winner of the bingo game includes any participant who	208
properly announces during the interval between the announcements	209
of letters and numbers as described in division (S)(1)(c) of this	210
section, that a predetermined and preannounced pattern of spaces	211
has been covered on a bingo card or sheet being used by the	212
participant.	213

(2) Instant bingo, punch boards, and raffles.

214

(T) "Conduct" means to back, promote, organize, manage, carry	215
on, sponsor, or prepare for the operation of bingo or a game of	216
chance.	217

(U) "Bingo game operator" means any person, except security	218
personnel, who performs work or labor at the site of bingo,	219
including, but not limited to, collecting money from participants,	220
handing out bingo cards or sheets or objects to cover spaces on	221
bingo cards or sheets, selecting from a receptacle the objects	222
that contain the combination of letters and numbers that appear on	223
bingo cards or sheets, calling out the combinations of letters and	224
numbers, distributing prizes, selling or redeeming instant bingo	225
tickets or cards, supervising the operation of a punch board,	226
selling raffle tickets, selecting raffle tickets from a receptacle	227
and announcing the winning numbers in a raffle, and preparing,	228
selling, and serving food or beverages.	229

(V) "Participant" means any person who plays bingo.

230

(W) "Bingo session" means a period that includes both of the	231
following:	232

(1) Not to exceed five continuous hours for the conduct of	233
one or more games described in division (S)(1) of this section,	234
instant bingo, and seal cards;	235

(2) A period for the conduct of instant bingo and seal cards	236
for not more than two hours before and not more than two hours	237
after the period described in division (W)(1) of this section.	238

(X) "Gross receipts" means all money or assets, including	239
admission fees, that a person receives from bingo without the	240
deduction of any amounts for prizes paid out or for the expenses	241
of conducting bingo. "Gross receipts" does not include any money	242
directly taken in from the sale of food or beverages by a	243
charitable organization conducting bingo, or by a bona fide	244
auxiliary unit or society of a charitable organization conducting	245
bingo, provided all of the following apply:	246

(1) The auxiliary unit or society has been in existence as a	247
bona fide auxiliary unit or society of the charitable organization	248
for at least two years prior to conducting bingo.	249

(2) The person who purchases the food or beverage receives	250
nothing of value except the food or beverage and items customarily	251
received with the purchase of that food or beverage.	252

(3) The food and beverages are sold at customary and	253
reasonable prices.	254

(Y) "Security personnel" includes any person who either is a	255
sheriff, deputy sheriff, marshal, deputy marshal, township	256
constable, or member of an organized police department of a	257
municipal corporation or has successfully completed a peace	258
officer's training course pursuant to sections 109.71 to 109.79 of	259
the Revised Code and who is hired to provide security for the	260
premises on which bingo is conducted.	261

(Z) "Charitable purpose" means that the net profit of bingo,	262
other than instant bingo, is used by, or is given, donated, or	263
otherwise transferred to, any of the following:	264

(1) Any organization that is described in subsection	265
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	266
and is either a governmental unit or an organization that is tax	267
exempt under subsection 501(a) and described in subsection	268
501(c)(3) of the Internal Revenue Code;	269

(2) A veteran's organization that is a post, chapter, or	270
organization of veterans, or an auxiliary unit or society of, or a	271
trust or foundation for, any such post, chapter, or organization	272
organized in the United States or any of its possessions, at least	273
seventy-five per cent of the members of which are veterans and	274
substantially all of the other members of which are individuals	275
who are spouses, widows, or widowers of veterans, or such	276
individuals, provided that no part of the net earnings of such	277
post, chapter, or organization inures to the benefit of any	278
private shareholder or individual, and further provided that the	279
net profit is used by the post, chapter, or organization for the	280
charitable purposes set forth in division (B)(12) of section	281
5739.02 of the Revised Code, is used for awarding scholarships to	282
or for attendance at an institution mentioned in division (B)(12)	283
of section 5739.02 of the Revised Code, is donated to a	284
governmental agency, or is used for nonprofit youth activities,	285
the purchase of United States or Ohio flags that are donated to	286
schools, youth groups, or other bona fide nonprofit organizations,	287
promotion of patriotism, or disaster relief;	288

(3) A fraternal organization that has been in continuous	289
existence in this state for fifteen years and that uses the net	290
profit exclusively for religious, charitable, scientific,	291
literary, or educational purposes, or for the prevention of	292
cruelty to children or animals, if contributions for such use	293
would qualify as a deductible charitable contribution under	294
subsection 170 of the Internal Revenue Code;	295

(4) A volunteer firefighter's organization that uses the net	296
profit for the purposes set forth in division (L) of this section.	297

(AA) "Internal Revenue Code" means the "Internal Revenue Code	298
of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter	299
amended.	300

(BB) "Youth athletic organization" means any organization,	301
not organized for profit, that is organized and operated	302
exclusively to provide financial support to, or to operate,	303
athletic activities for persons who are twenty-one years of age or	304
younger by means of sponsoring, organizing, operating, or	305
contributing to the support of an athletic team, club, league, or	306
association.	307

(CC) "Youth athletic park organization" means any	308
organization, not organized for profit, that satisfies both of the	309
following:	310

(1) It owns, operates, and maintains playing fields that	311
satisfy both of the following:	312

(a) The playing fields are used at least one hundred days per	313
year for athletic activities by one or more organizations, not	314
organized for profit, each of which is organized and operated	315
exclusively to provide financial support to, or to operate,	316
athletic activities for persons who are eighteen years of age or	317
younger by means of sponsoring, organizing, operating, or	318
contributing to the support of an athletic team, club, league, or	319
association.	320

(b) The playing fields are not used for any profit-making	321
activity at any time during the year.	322

(2) It uses the proceeds of bingo it conducts exclusively for	323
the operation, maintenance, and improvement of its playing fields	324
of the type described in division (CC)(1) of this section.	325

(DD) "Amateur athletic organization" means any organization,	326
not organized for profit, that is organized and operated	327
exclusively to provide financial support to, or to operate,	328
athletic activities for persons who are training for amateur	329
athletic competition that is sanctioned by a national governing	330
body as defined in the "Amateur Sports Act of 1978," 90 Stat.	331
3045, 36 U.S.C.A. 373.	332

(EE) "Bingo supplies" means bingo cards or sheets; instant	333
bingo tickets or cards; electronic bingo aids; raffle tickets;	334
punch boards; seal cards; instant bingo ticket dispensers; and	335
devices for selecting or displaying the combination of bingo	336
letters and numbers or raffle tickets. Items that are "bingo	337
supplies" are not gambling devices if sold or otherwise provided,	338
and used, in accordance with this chapter. For purposes of this	339
chapter, "bingo supplies" are not to be considered equipment used	340
to conduct a bingo game.	341

(FF) "Instant bingo" means a form of bingo that uses folded	342
or banded tickets or paper cards with perforated break-open tabs,	343
a face of which is covered or otherwise hidden from view to	344
conceal a number, letter, or symbol, or set of numbers, letters,	345
or symbols, some of which have been designated in advance as prize	346
winners. "Instant bingo" includes seal cards. "Instant bingo" does	347
not include any device that is activated by the insertion of a	348
coin, currency, token, or an equivalent, and that contains as one	349
of its components a video display monitor that is capable of	350
displaying numbers, letters, symbols, or characters in winning or	351
losing combinations.	352

(GG) "Seal card" means a form of instant bingo that uses	353
instant bingo tickets in conjunction with a board or placard that	354
contains one or more seals that, when removed or opened, reveal	355
predesignated winning numbers, letters, or symbols.	356

(HH) "Raffle" means a form of bingo in which the one or more	357
prizes are won by one or more persons who have purchased a raffle	358
ticket. The one or more winners of the raffle are determined by	359
drawing a ticket stub or other detachable section from a	360
receptacle containing ticket stubs or detachable sections	361
corresponding to all tickets sold for the raffle.	362

(II) "Punch board" means a board containing a number of holes	363
or receptacles of uniform size in which are placed, mechanically	364
and randomly, serially numbered slips of paper that may be punched	365
or drawn from the hole or receptacle when used in conjunction with	366
instant bingo. A player may punch or draw the numbered slips of	367
paper from the holes or receptacles and obtain the prize	368
established for the game if the number drawn corresponds to a	369
winning number or, if the punch board includes the use of a seal	370
card, a potential winning number.	371

(JJ) "Gross profit" means gross receipts minus the amount	372
actually expended for the payment of prize awards.	373

(KK) "Net profit" means gross profit minus expenses.

374

(LL) "Expenses" means the reasonable amount of gross profit	375
actually expended for all of the following:	376

(1) The purchase or lease of bingo supplies;

377

(2) The annual license fee required under section 2915.08 of	378
the Revised Code;	379

(3) Bank fees and service charges for a bingo session or game	380
account described in section 2915.10 of the Revised Code;	381

(4) Audits and accounting services;

382

(5) Safes;

383

(6) Cash registers;

384

(7) Hiring security personnel;

385

(8) Advertising bingo;

386

(9) Renting premises in which to conduct a bingo session;

387

(10) Tables and chairs;

388

(11) Expenses for maintaining and operating a charitable	389
organization's facilities, including, but not limited to, a post	390
home, club house, lounge, tavern, or canteen and any grounds	391
attached to the post home, club house, lounge, tavern, or canteen;	392

(12) Payment of real property taxes and assessments that are	393
levied on a premises on which bingo is conducted;	394

(13) Any other product or service directly related to the	395
conduct of bingo that is authorized in rules adopted by the	396
attorney general under division (B)(1) of section 2915.08 of the	397
Revised Code.	398

(MM) "Person" has the same meaning as in section 1.59 of the	399
Revised Code and includes any firm or any other legal entity,	400
however organized.	401

(NN) "Revoke" means to void permanently all rights and	402
privileges of the holder of a license issued under section	403
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	404
gaming license issued by another jurisdiction.	405

(OO) "Suspend" means to interrupt temporarily all rights and	406
privileges of the holder of a license issued under section	407
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	408
gaming license issued by another jurisdiction.	409

(PP) "Distributor" means any person who purchases or obtains	410
bingo supplies and who does either of the following:	411

(1) Sells, offers for sale, or otherwise provides or offers	412
to provide the bingo supplies to another person for use in this	413
state;	414

(2) Modifies, converts, adds to, or removes parts from the	415
bingo supplies to further their promotion or sale for use in this	416
state.	417

(QQ) "Manufacturer" means any person who assembles completed	418
bingo supplies from raw materials, other items, or subparts or who	419
modifies, converts, adds to, or removes parts from bingo supplies	420
to further their promotion or sale.	421

(RR) "Gross annual revenues" means the annual gross receipts	422
derived from the conduct of bingo described in division (S)(1) of	423
this section plus the annual net profit derived from the conduct	424
of bingo described in division (S)(2) of this section.	425

(SS) "Instant bingo ticket dispenser" means a mechanical	426
device that dispenses an instant bingo ticket or card as the sole	427
item of value dispensed and that has the following	428
characteristics:	429

(1) It is activated upon the insertion of United States	430
currency.	431

(2) It performs no gaming functions.

432

(3) It does not contain a video display monitor or generate	433
noise.	434

(4) It is not capable of displaying any numbers, letters,	435
symbols, or characters in winning or losing combinations.	436

(5) It does not simulate or display rolling or spinning	437
reels.	438

(6) It is incapable of determining whether a dispensed bingo	439
ticket or card is a winning or nonwinning ticket or card and	440
requires a winning ticket or card to be paid by a bingo game	441
operator.	442

(7) It may provide accounting and security features to aid in	443
accounting for the instant bingo tickets or cards it dispenses.	444

(8) It is not part of an electronic network and is not	445
interactive.	446

(TT)(1) "Electronic bingo aid" means an electronic device	447
used by a participant to monitor bingo cards or sheets purchased	448
at the time and place of a bingo session and that does all of the	449
following:	450

(a) It provides a means for a participant to input numbers	451
and letters announced by a bingo caller.	452

(b) It compares the numbers and letters entered by the	453
participant to the bingo faces previously stored in the memory of	454
the device.	455

456

(2) "Electronic bingo aid" does not include any device into	457
which a coin, currency, token, or an equivalent is inserted to	458
activate play.	459

(UU) "Deal of instant bingo tickets" means a single game of	460
instant bingo tickets all with the same serial number.	461

(VV)(1) "Slot machine" means either of the following:

462

(a) Any mechanical, electronic, video, or digital device that	463
is capable of accepting anything of value, directly or indirectly,	464
from or on behalf of a player who gives the thing of value in the	465
hope of gain;	466

(b) Any mechanical, electronic, video, or digital device that	467
is capable of accepting anything of value, directly or indirectly,	468
from or on behalf of a player to conduct ~~or dispense~~ bingo or a	469
scheme or game of chance.	470

(2) "Slot machine" does not include a skill-based amusement	471
machine or an instant bingo ticket dispenser.	472

(WW) "Net profit from the proceeds of the sale of instant	473
bingo" means gross profit minus the ordinary, necessary, and	474
reasonable expense expended for the purchase of instant bingo	475
supplies.	476

(XX) "Charitable instant bingo organization" means an	477
organization that is exempt from federal income taxation under	478
subsection 501(a) and described in subsection 501(c)(3) of the	479
Internal Revenue Code and is a charitable organization as defined	480
in this section. A "charitable instant bingo organization" does	481
not include a charitable organization that is exempt from federal	482
income taxation under subsection 501(a) and described in	483
subsection 501(c)(3) of the Internal Revenue Code and that is	484
created by a veteran's organization, a fraternal organization, or	485
a sporting organization in regards to bingo conducted or assisted	486
by a veteran's organization, a fraternal organization, or a	487
sporting organization pursuant to section 2915.13 of the Revised	488
Code.	489

(YY) "Game flare" means the board or placard that accompanies	490
each deal of instant bingo tickets and that has printed on or	491
affixed to it the following information for the game:	492

(1) The name of the game;

493

(2) The manufacturer's name or distinctive logo;

494

(3) The form number;

495

(4) The ticket count;

496

(5) The prize structure, including the number of winning	497
instant bingo tickets by denomination and the respective winning	498
symbol or number combinations for the winning instant bingo	499
tickets;	500

(6) The cost per play;

501

(7) The serial number of the game.

502

(ZZ) "Historic railroad educational organization" means an	503
organization that is exempt from federal income taxation under	504
subsection 501(a) and described in subsection 501(c)(3) of the	505
Internal Revenue Code, that owns in fee simple the tracks and the	506
right of way of a historic railroad that the organization restores	507
or maintains and on which the organization provides excursions as	508
part of a program to promote tourism and educate visitors	509
regarding the role of railroad transportation in Ohio history, and	510
that received as donations from a charitable organization that	511
holds a license to conduct bingo under this chapter an amount	512
equal to at least fifty per cent of that licensed charitable	513
organization's net proceeds from the conduct of bingo during each	514
of the five years preceding June 30, 2003. "Historic railroad"	515
means all or a portion of the tracks and right-of-way of a	516
railroad that was owned and operated by a for-profit common	517
carrier in this state at any time prior to January 1, 1950.	518

(AAA)(1) "Skill-based amusement machine" means a mechanical,	519
video, digital, or electronic device that rewards the player or	520
players, if at all, only with merchandise prizes or with	521
redeemable vouchers redeemable only for merchandise prizes,	522
provided that with respect to rewards for playing the game all of	523
the following apply:	524

(a) The wholesale value of a merchandise prize awarded as a	525
result of the single play of a machine does not exceed ten	526
dollars;	527

(b) Redeemable vouchers awarded for any single play of a	528
machine are not redeemable for a merchandise prize with a	529
wholesale value of more than ten dollars;	530

(c) Redeemable vouchers are not redeemable for a merchandise	531
prize that has a wholesale value of more than ten dollars times	532
the fewest number of single plays necessary to accrue the	533
redeemable vouchers required to obtain that prize; and	534

(d) Any redeemable vouchers or merchandise prizes are	535
distributed at the site of the skill-based amusement machine at	536
the time of play.	537

(2) A device shall not be considered a skill-based amusement	538
machine and shall be considered a slot machine if it pays cash or	539
one or more of the following apply:	540

(a) The ability of a player to succeed at the game is	541
impacted by the number or ratio of prior wins to prior losses of	542
players playing the game.	543

(b) Any reward of redeemable vouchers is not based solely on	544
the player achieving the object of the game or the player's score;	545

(c) The outcome of the game, or the value of the redeemable	546
voucher or merchandise prize awarded for winning the game, can be	547
controlled by a source other than any player playing the game.	548

(d) The success of any player is or may be determined by a	549
chance event that cannot be altered by player actions.	550

(e) The ability of any player to succeed at the game is	551
determined by game features not visible or known to the player.	552

(f) The ability of the player to succeed at the game is	553
impacted by the exercise of a skill that no reasonable player	554
could exercise.	555

(3) All of the following apply to any machine that is	556
operated as described in division (AAA)(1) of this section:	557

(a) As used in this section, "game" and "play" mean one event	558
from the initial activation of the machine until the results of	559
play are determined without payment of additional consideration.	560
An individual utilizing a machine that involves a single game,	561
play, contest, competition, or tournament may be awarded	562
redeemable vouchers or merchandise prizes based on the results of	563
play.	564

(b) Advance play for a single game, play, contest,	565
competition, or tournament participation may be purchased. The	566
cost of the contest, competition, or tournament participation may	567
be greater than a single noncontest, competition, or tournament	568
play.	569

(c) To the extent that the machine is used in a contest,	570
competition, or tournament, that contest, competition, or	571
tournament has a defined starting and ending date and is open to	572
participants in competition for scoring and ranking results toward	573
the awarding of redeemable vouchers or merchandise prizes that are	574
stated prior to the start of the contest, competition, or	575
tournament.	576

(4) For purposes of division (AAA)(1) of this section, the	577
mere presence of a device, such as a pin-setting, ball-releasing,	578
or scoring mechanism, that does not contribute to or affect the	579
outcome of the play of the game does not make the device a	580
skill-based amusement machine.	581

(BBB) "Merchandise prize" means any item of value, but shall	582
not include any of the following:	583

(1) Cash, gift cards, or any equivalent thereof;

584

(2) Plays on games of chance, state lottery tickets, bingo,	585
or instant bingo;	586

(3) Firearms, tobacco, or alcoholic beverages; or

587

(4) A redeemable voucher that is redeemable for any of the	588
items listed in division (BBB)(1), (2), or (3) of this section.	589

(CCC) "Redeemable voucher" means any ticket, token, coupon,	590
receipt, or other noncash representation of value.	591

(DDD) "Pool not conducted for profit" means a scheme in which	592
a participant gives a valuable consideration for a chance to win a	593
prize and the total amount of consideration wagered is distributed	594
to a participant or participants.	595

(EEE) "Sporting organization" means a hunting, fishing, or	596
trapping organization, other than a college or high school	597
fraternity or sorority, that is not organized for profit, that is	598
affiliated with a state or national sporting organization,	599
including but not limited to, the Ohio league of sportsmen, and	600
that has been in continuous existence in this state for a period	601
of three years.	602

(FFF) "Community action agency" has the same meaning as in	603
section 122.66 of the Revised Code.	604

Sec. 2915.02. (A) No person shall do any of the following:

605

(1) Engage in bookmaking, or knowingly engage in conduct that	606
facilitates bookmaking;	607

(2) Establish, promote, or operate or knowingly engage in	608
conduct that facilitates any game of chance conducted for profit	609
or any scheme of chance;	610

(3) Knowingly procure, transmit, exchange, or engage in	611
conduct that facilitates the procurement, transmission, or	612
exchange of information for use in establishing odds or	613
determining winners in connection with bookmaking or with any game	614
of chance conducted for profit or any scheme of chance;	615

(4) Engage in betting or in playing any scheme or game of	616
chance as a substantial source of income or livelihood;	617

(5) With purpose to violate division (A)(1), (2), (3), or (4)	618
of this section, acquire, possess, control, or operate any	619
gambling device.	620

(B) For purposes of division (A)(1) of this section, a person	621
facilitates bookmaking if the person in any way knowingly aids an	622
illegal bookmaking operation, including, without limitation,	623
placing a bet with a person engaged in or facilitating illegal	624
bookmaking. For purposes of division (A)(2) of this section, a	625
person facilitates a game of chance conducted for profit or a	626
scheme of chance if the person in any way knowingly aids in the	627
conduct or operation of any such game or scheme, including,	628
without limitation, playing any such game or scheme.	629

(C) This section does not prohibit conduct in connection with	630
gambling expressly permitted by law.	631

(D) This section does not apply to any of the following:

632

(1) Games of chance, if all of the following apply:

633

(a) The games of chance are not craps for money or roulette	634
for money.	635

(b) The games of chance are conducted by a charitable	636
organization that is, and has received from the internal revenue	637
service a determination letter that is currently in effect,	638
stating that the organization is, exempt from federal income	639
taxation under subsection 501(a) and described in subsection	640
501(c)(3) of the Internal Revenue Code.	641

(c) The games of chance are conducted at festivals of the	642
charitable organization that are conducted either for a period of	643
four consecutive days or less and not more than twice a year or	644
for a period of five consecutive days not more than once a year,	645
and are conducted on premises owned by the charitable organization	646
for a period of no less than one year immediately preceding the	647
conducting of the games of chance, on premises leased from a	648
governmental unit, or on premises that are leased from a veteran's	649
or fraternal organization and that have been owned by the lessor	650
veteran's or fraternal organization for a period of no less than	651
one year immediately preceding the conducting of the games of	652
chance.	653

A charitable organization shall not lease premises from a	654
veteran's or fraternal organization to conduct a festival	655
described in division (D)(1)(c) of this section if the veteran's	656
or fraternal organization already has leased the premises ~~four~~	657
twelve times during the preceding year to charitable organizations	658
for that purpose. If a charitable organization leases premises	659
from a veteran's or fraternal organization to conduct a festival	660
described in division (D)(1)(c) of this section, the charitable	661
organization shall not pay a rental rate for the premises per day	662
of the festival that exceeds the rental rate per bingo session	663
that a charitable organization may pay under division (B)(1) of	664
section 2915.09 of the Revised Code when it leases premises from	665
another charitable organization to conduct bingo games.	666

(d) All of the money or assets received from the games of	667
chance after deduction only of prizes paid out during the conduct	668
of the games of chance are used by, or given, donated, or	669
otherwise transferred to, any organization that is described in	670
subsection 509(a)(1), 509(a)(2), or 509(a)(3) of the Internal	671
Revenue Code and is either a governmental unit or an organization	672
that is tax exempt under subsection 501(a) and described in	673
subsection 501(c)(3) of the Internal Revenue Code;	674

(e) The games of chance are not conducted during, or within	675
ten hours of, a bingo game conducted for amusement purposes only	676
pursuant to section 2915.12 of the Revised Code.	677

No person shall receive any commission, wage, salary, reward,	678
tip, donation, gratuity, or other form of compensation, directly	679
or indirectly, for operating or assisting in the operation of any	680
game of chance.	681

(2) Any tag fishing tournament operated under a permit issued	682
under section 1533.92 of the Revised Code, as "tag fishing	683
tournament" is defined in section 1531.01 of the Revised Code;	684

(3) Bingo conducted by a charitable organization that holds a	685
license issued under section 2915.08 of the Revised Code.	686

(E) Division (D) of this section shall not be construed to	687
authorize the sale, lease, or other temporary or permanent	688
transfer of the right to conduct games of chance, as granted by	689
that division, by any charitable organization that is granted that	690
right.	691

(F) Whoever violates this section is guilty of gambling, a	692
misdemeanor of the first degree. If the offender previously has	693
been convicted of any gambling offense, gambling is a felony of	694
the fifth degree.	695

Sec. 2915.091. (A) No charitable organization that conducts	696
instant bingo shall do any of the following:	697

(1) Fail to comply with the requirements of divisions (A)(1),	698
(2), and (3) of section 2915.09 of the Revised Code;	699

(2) Conduct instant bingo unless either of the following	700
apply:	701

(a) That organization is, and has received from the internal	702
revenue service a determination letter that is currently in effect	703
stating that the organization is, exempt from federal income	704
taxation under subsection 501(a), is described in subsection	705
501(c)(3) of the Internal Revenue Code, is a charitable	706
organization as defined in section 2915.01 of the Revised Code, is	707
in good standing in the state pursuant to section 2915.08 of the	708
Revised Code, and is in compliance with Chapter 1716. of the	709
Revised Code;	710

(b) That organization is, and has received from the internal	711
revenue service a determination letter that is currently in effect	712
stating that the organization is, exempt from federal income	713
taxation under subsection 501(a), is described in subsection	714
501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) or is a veteran's	715
organization described in subsection 501(c)(4) of the Internal	716
Revenue Code, and conducts instant bingo under section 2915.13 of	717
the Revised Code.	718

(3) Conduct instant bingo on any day, at any time, or at any	719
premises not specified on the organization's license issued	720
pursuant to section 2915.08 of the Revised Code;	721

(4) Permit any person whom the organization knows or should	722
have known has been convicted of a felony or gambling offense in	723
any jurisdiction to be a bingo game operator in the conduct of	724
instant bingo;	725

(5) Purchase or lease supplies used to conduct instant bingo	726
or punch board games from any person except a distributor licensed	727
under section 2915.081 of the Revised Code;	728

(6) Sell or provide any instant bingo ticket or card for a	729
price different from the price printed on it by the manufacturer	730
on either the instant bingo ticket or card or on the game flare;	731

(7) Sell an instant bingo ticket or card to a person under	732
eighteen years of age;	733

(8) Fail to keep unsold instant bingo tickets or cards for	734
less than three years;	735

(9) Pay any compensation to a bingo game operator for	736
conducting instant bingo that is conducted by the organization or	737
for preparing, selling, or serving food or beverages at the site	738
of the instant bingo game, permit any auxiliary unit or society of	739
the organization to pay compensation to any bingo game operator	740
who prepares, sells, or serves food or beverages at an instant	741
bingo game conducted by the organization, or permit any auxiliary	742
unit or society of the organization to prepare, sell, or serve	743
food or beverages at an instant bingo game conducted by the	744
organization, if the auxiliary unit or society pays any	745
compensation to the bingo game operators who prepare, sell, or	746
serve the food or beverages;	747

(10) Pay fees to any person for any services performed in	748
relation to an instant bingo game;	749

(11) Pay fees to any person who provides refreshments to the	750
participants in an instant bingo game;	751

(12)(a) Allow instant bingo tickets or cards to be sold to	752
bingo game operators at a premises at which the organization sells	753
instant bingo tickets or cards or to be sold to employees of a D	754
permit holder who are working at a premises at which instant bingo	755
tickets or cards are sold;	756

(b) Division (A)(12)(a) of this section does not prohibit a	757
licensed charitable organization or a bingo game operator from	758
giving any person an instant bingo ~~tickets~~ticket as a prize.	759

(13) Fail to display its bingo license, and the serial	760
numbers of the deal of instant bingo tickets or cards to be sold,	761
conspicuously at each premises at which it sells instant bingo	762
tickets or cards;	763

(14) Possess a deal of instant bingo tickets or cards that	764
was not purchased from a distributor licensed under section	765
2915.081 of the Revised Code as reflected on an invoice issued by	766
the distributor that contains all of the information required by	767
division (E) of section 2915.10 of the Revised Code;	768

(15) Fail, once it opens a deal of instant bingo tickets or	769
cards, to continue to sell the tickets or cards in that deal until	770
the tickets or cards with the top two highest tiers of prizes in	771
that deal are sold;	772

(16) ~~Purchase, lease, or use instant bingo ticket dispensers~~	773
~~to sell instant bingo tickets or cards;~~	774

~~(17)~~ Possess bingo supplies that were not obtained in	775
accordance with sections 2915.01 to 2915.13 of the Revised Code.	776

(B)(1) A charitable organization may conduct instant bingo	777
other than at a bingo session at not more than five separate	778
locations. A charitable organization that is exempt from federal	779
taxation under subsection 501(a) and described in subsection	780
501(c)(3) of the Internal Revenue Code and that is created by a	781
veteran's organization or a fraternal organization is not limited	782
in the number of separate locations the charitable organization	783
may conduct instant bingo other than at a bingo session.	784

(2) A charitable organization may purchase, lease, or use	785
instant bingo ticket dispensers to sell instant bingo tickets or	786
cards.	787

(C) The attorney general may adopt rules in accordance with	788
Chapter 119. of the Revised Code that govern the conduct of	789
instant bingo by charitable organizations. Before those rules are	790
adopted, the attorney general shall reference the recommended	791
standards for opacity, randomization, minimum information, winner	792
protection, color, and cutting for instant bingo tickets or cards,	793
seal cards, and punch boards established by the North American	794
gaming regulators association.	795

(D) Whoever violates division (A) of this section or a rule	796
adopted under division (C) of this section is guilty of illegal	797
instant bingo conduct. Except as otherwise provided in this	798
division, illegal instant bingo conduct is a misdemeanor of the	799
first degree. If the offender previously has been convicted of a	800
violation of division (A) of this section or of such a rule,	801
illegal instant bingo conduct is a felony of the fifth degree.	802

Sec. 2915.101. Except as otherwise provided by law, a	803
charitable organization that conducts instant bingo shall	804
distribute the net profit from the proceeds of the sale of instant	805
bingo as follows:	806

(A)(1) If a veteran's organization, a fraternal organization,	807
or a sporting organization conducted the instant bingo, the	808
organization shall distribute the net profit from the proceeds of	809
the sale of instant bingo, as follows:	810

(a) For the first ~~one~~three hundred ~~fifty~~ thousand dollars,	811
or a greater amount prescribed by the attorney general to adjust	812
for changes in prices as measured by the consumer price index as	813
defined in section 325.18 of the Revised Code and other factors	814
affecting the organization's expenses as defined in division (LL)	815
of section 2915.01 of the Revised Code, or less of net profit from	816
the proceeds of the sale of instant bingo generated in a calendar	817
year:	818

(i) At least twenty-five per cent shall be distributed to an	819
organization described in division (Z)(1) of section 2915.01 of	820
the Revised Code or to a department or agency of the federal	821
government, the state, or any political subdivision.	822

(ii) Not more than seventy-five per cent may be deducted and	823
retained by the organization for reimbursement of or for the	824
organization's expenses, as defined in division (LL) of section	825
2915.01 of the Revised Code, in conducting the instant bingo game.	826

(b) For any net profit from the proceeds of the sale of	827
instant bingo of more than ~~one~~three hundred ~~fifty~~ thousand	828
dollars or an adjusted amount generated in a calendar year:	829

(i) A minimum of fifty per cent shall be distributed to an	830
organization described in division (Z)(1) of section 2915.01 of	831
the Revised Code or to a department or agency of the federal	832
government, the state, or any political subdivision.	833

(ii) Five per cent may be distributed for the organization's	834
own charitable purposes or to a community action agency.	835

(iii) Forty-five per cent may be deducted and retained by the	836
organization for reimbursement of or for the organization's	837
expenses, as defined in division (LL) of section 2915.01 of the	838
Revised Code, in conducting the instant bingo game.	839

(2) If a veteran's organization, a fraternal organization, or	840
a sporting organization does not distribute the full percentages	841
specified in divisions (A)(1)(a) and (b) of this section for the	842
purposes specified in those divisions, the organization shall	843
distribute the balance of the net profit from the proceeds of the	844
sale of instant bingo not distributed or retained for those	845
purposes to an organization described in division (Z)(1) of	846
section 2915.01 of the Revised Code.	847

(B) If a charitable organization other than a veteran's	848
organization, a fraternal organization, or a sporting organization	849
conducted the instant bingo, the organization shall distribute one	850
hundred per cent of the net profit from the proceeds of the sale	851
of instant bingo to an organization described in division (Z)(1)	852
of section 2915.01 of the Revised Code or to a department or	853
agency of the federal government, the state, or any political	854
subdivision.	855

(C) Nothing in this section prohibits a veteran's	856
organization, a fraternal organization, or a sporting organization	857
from distributing any net profit from the proceeds of the sale of	858
instant bingo to an organization that is described in subsection	859
501(c)(3) of the Internal Revenue Code when the organization that	860
is described in subsection 501(c)(3) of the Internal Revenue Code	861
is one that makes donations to other organizations and permits	862
donors to advise or direct such donations so long as the donations	863
comply with requirements established in or pursuant to subsection	864
501(c)(3) of the Internal Revenue Code.	865

Section 2. That existing sections 2915.01, 2915.02, 2915.091,	866
and 2915.101 of the Revised Code are hereby repealed.	867