As Introduced

128th General Assembly Regular Session 2009-2010

S. B. No. 186

Senator Schuring 

Cosponsor: Senator Grendell 

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A BILL

To amend sections 2915.01, 2915.08, and 2915.091 of

1

the Revised Code to authorize a charitable

2

organization to purchase, lease, and use instant

3

bingo ticket dispensers, to specify that these

4

dispensers are not slot machines, to change the

5

fees charged for a license to conduct instant

6

bingo, and to allow a charitable organization to

7

spend a reasonable amount of its gross profit to

8

pay property taxes and assessments on the

9

premises where the organization conducts bingo.

10

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

Section 1. That sections 2915.01, 2915.08, and 2915.091 of	11
the Revised Code be amended to read as follows:	12

Sec. 2915.01.  As used in this chapter:

13

(A) "Bookmaking" means the business of receiving or paying	14
off bets.	15

(B) "Bet" means the hazarding of anything of value upon the	16
result of an event, undertaking, or contingency, but does not	17
include a bona fide business risk.	18

(C) "Scheme of chance" means a slot machine, lottery, numbers	19
game, pool conducted for profit, or other scheme in which a	20
participant gives a valuable consideration for a chance to win a	21
prize, but does not include bingo, a skill-based amusement	22
machine, or a pool not conducted for profit.	23

(D) "Game of chance" means poker, craps, roulette, or other	24
game in which a player gives anything of value in the hope of	25
gain, the outcome of which is determined largely by chance, but	26
does not include bingo.	27

(E) "Game of chance conducted for profit" means any game of	28
chance designed to produce income for the person who conducts or	29
operates the game of chance, but does not include bingo.	30

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

31

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

32

(2) A ticket, token, or other device representing a chance,	33
share, or interest in a scheme of chance or evidencing a bet;	34

(3) A deck of cards, dice, gaming table, roulette wheel, slot	35
machine, or other apparatus designed for use in connection with a	36
game of chance;	37

(4) Any equipment, device, apparatus, or paraphernalia	38
specially designed for gambling purposes;	39

(5) Bingo supplies sold or otherwise provided, or used, in	40
violation of this chapter.	41

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

42

(1) A violation of section 2915.02, 2915.03, 2915.04,	43
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09,	44
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;	45

(2) A violation of an existing or former municipal ordinance	46
or law of this or any other state or the United States	47
substantially equivalent to any section listed in division (G)(1)	48
of this section or a violation of section 2915.06 of the Revised	49
Code as it existed prior to July 1, 1996;	50

(3) An offense under an existing or former municipal	51
ordinance or law of this or any other state or the United States,	52
of which gambling is an element;	53

(4) A conspiracy or attempt to commit, or complicity in	54
committing, any offense under division (G)(1), (2), or (3) of this	55
section.	56

(H) Except as otherwise provided in this chapter, "charitable	57
organization" means any tax exempt religious, educational,	58
veteran's, fraternal, sporting, service, nonprofit medical,	59
volunteer rescue service, volunteer firefighter's, senior	60
citizen's, historic railroad educational, youth athletic, amateur	61
athletic, or youth athletic park organization. An organization is	62
tax exempt if the organization is, and has received from the	63
internal revenue service a determination letter that currently is	64
in effect stating that the organization is, exempt from federal	65
income taxation under subsection 501(a) and described in	66
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or	67
501(c)(19) of the Internal Revenue Code, or if the organization is	68
a sporting organization that is exempt from federal income	69
taxation under subsection 501(a) and is described in subsection	70
501(c)(7) of the Internal Revenue Code. To qualify as a charitable	71
organization, an organization, except a volunteer rescue service	72
or volunteer firefighter's organization, shall have been in	73
continuous existence as such in this state for a period of two	74
years immediately preceding either the making of an application	75
for a bingo license under section 2915.08 of the Revised Code or	76
the conducting of any game of chance as provided in division (D)	77
of section 2915.02 of the Revised Code. A charitable organization	78
that is exempt from federal income taxation under subsection	79
501(a) and described in subsection 501(c)(3) of the Internal	80
Revenue Code and that is created by a veteran's organization, a	81
fraternal organization, or a sporting organization does not have	82
to have been in continuous existence as such in this state for a	83
period of two years immediately preceding either the making of an	84
application for a bingo license under section 2915.08 of the	85
Revised Code or the conducting of any game of chance as provided	86
in division (D) of section 2915.02 of the Revised Code.	87

(I) "Religious organization" means any church, body of	88
communicants, or group that is not organized or operated for	89
profit and that gathers in common membership for regular worship	90
and religious observances.	91

(J) "Educational organization" means any organization within	92
this state that is not organized for profit, the primary purpose	93
of which is to educate and develop the capabilities of individuals	94
through instruction by means of operating or contributing to the	95
support of a school, academy, college, or university.	96

(K) "Veteran's organization" means any individual post or	97
state headquarters of a national veteran's association or an	98
auxiliary unit of any individual post of a national veteran's	99
association, which post, state headquarters, or auxiliary unit has	100
been in continuous existence in this state for at least two years	101
and incorporated as a nonprofit corporation and either has	102
received a letter from the state headquarters of the national	103
veteran's association indicating that the individual post or	104
auxiliary unit is in good standing with the national veteran's	105
association or has received a letter from the national veteran's	106
association indicating that the state headquarters is in good	107
standing with the national veteran's association. As used in this	108
division, "national veteran's association" means any veteran's	109
association that has been in continuous existence as such for a	110
period of at least five years and either is incorporated by an act	111
of the United States congress or has a national dues-paying	112
membership of at least five thousand persons.	113

(L) "Volunteer firefighter's organization" means any	114
organization of volunteer firefighters, as defined in section	115
146.01 of the Revised Code, that is organized and operated	116
exclusively to provide financial support for a volunteer fire	117
department or a volunteer fire company and that is recognized or	118
ratified by a county, municipal corporation, or township.	119

(M) "Fraternal organization" means any society, order, state	120
headquarters, or association within this state, except a college	121
or high school fraternity, that is not organized for profit, that	122
is a branch, lodge, or chapter of a national or state	123
organization, that exists exclusively for the common business or	124
sodality of its members, and that has been in continuous existence	125
in this state for a period of five years.	126

(N) "Volunteer rescue service organization" means any	127
organization of volunteers organized to function as an emergency	128
medical service organization, as defined in section 4765.01 of the	129
Revised Code.	130

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

131

(1) Any organization, not organized for profit, that is	132
organized and operated exclusively to provide, or to contribute to	133
the support of organizations or institutions organized and	134
operated exclusively to provide, medical and therapeutic services	135
for persons who are crippled, born with birth defects, or have any	136
other mental or physical defect or those organized and operated	137
exclusively to protect, or to contribute to the support of	138
organizations or institutions organized and operated exclusively	139
to protect, animals from inhumane treatment or provide immediate	140
shelter to victims of domestic violence;	141

(2) Any organization that is described in subsection	142
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	143
and is either a governmental unit or an organization that is tax	144
exempt under subsection 501(a) and described in subsection	145
501(c)(3) of the Internal Revenue Code and that is an	146
organization, not organized for profit, that is organized and	147
operated primarily to provide, or to contribute to the support of	148
organizations or institutions organized and operated primarily to	149
provide, medical and therapeutic services for persons who are	150
crippled, born with birth defects, or have any other mental or	151
physical defect.	152

(P) "Nonprofit medical organization" means either of the	153
following:	154

(1) Any organization that has been incorporated as a	155
nonprofit corporation for at least five years and that has	156
continuously operated and will be operated exclusively to provide,	157
or to contribute to the support of organizations or institutions	158
organized and operated exclusively to provide, hospital, medical,	159
research, or therapeutic services for the public;	160

(2) Any organization that is described and qualified under	161
subsection 501(c)(3) of the Internal Revenue Code, that has been	162
incorporated as a nonprofit corporation for at least five years,	163
and that has continuously operated and will be operated primarily	164
to provide, or to contribute to the support of organizations or	165
institutions organized and operated primarily to provide,	166
hospital, medical, research, or therapeutic services for the	167
public.	168

(Q) "Senior citizen's organization" means any private	169
organization, not organized for profit, that is organized and	170
operated exclusively to provide recreational or social services	171
for persons who are fifty-five years of age or older and that is	172
described and qualified under subsection 501(c)(3) of the Internal	173
Revenue Code.	174

(R) "Charitable bingo game" means any bingo game described in	175
division (S)(1) or (2) of this section that is conducted by a	176
charitable organization that has obtained a license pursuant to	177
section 2915.08 of the Revised Code and the proceeds of which are	178
used for a charitable purpose.	179

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

180

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

181

(a) The participants use bingo cards or sheets, including	182
paper formats and electronic representation or image formats, that	183
are divided into twenty-five spaces arranged in five horizontal	184
and five vertical rows of spaces, with each space, except the	185
central space, being designated by a combination of a letter and a	186
number and with the central space being designated as a free	187
space.	188

(b) The participants cover the spaces on the bingo cards or	189
sheets that correspond to combinations of letters and numbers that	190
are announced by a bingo game operator.	191

(c) A bingo game operator announces combinations of letters	192
and numbers that appear on objects that a bingo game operator	193
selects by chance, either manually or mechanically, from a	194
receptacle that contains seventy-five objects at the beginning of	195
each game, each object marked by a different combination of a	196
letter and a number that corresponds to one of the seventy-five	197
possible combinations of a letter and a number that can appear on	198
the bingo cards or sheets.	199

(d) The winner of the bingo game includes any participant who	200
properly announces during the interval between the announcements	201
of letters and numbers as described in division (S)(1)(c) of this	202
section, that a predetermined and preannounced pattern of spaces	203
has been covered on a bingo card or sheet being used by the	204
participant.	205

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

206

(T) "Conduct" means to back, promote, organize, manage, carry	207
on, sponsor, or prepare for the operation of bingo or a game of	208
chance.	209

(U) "Bingo game operator" means any person, except security	210
personnel, who performs work or labor at the site of bingo,	211
including, but not limited to, collecting money from participants,	212
handing out bingo cards or sheets or objects to cover spaces on	213
bingo cards or sheets, selecting from a receptacle the objects	214
that contain the combination of letters and numbers that appear on	215
bingo cards or sheets, calling out the combinations of letters and	216
numbers, distributing prizes, selling or redeeming instant bingo	217
tickets or cards, supervising the operation of a punch board,	218
selling raffle tickets, selecting raffle tickets from a receptacle	219
and announcing the winning numbers in a raffle, and preparing,	220
selling, and serving food or beverages.	221

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

222

(W) "Bingo session" means a period that includes both of the	223
following:	224

(1) Not to exceed five continuous hours for the conduct of	225
one or more games described in division (S)(1) of this section,	226
instant bingo, and seal cards;	227

(2) A period for the conduct of instant bingo and seal cards	228
for not more than two hours before and not more than two hours	229
after the period described in division (W)(1) of this section.	230

(X) "Gross receipts" means all money or assets, including	231
admission fees, that a person receives from bingo without the	232
deduction of any amounts for prizes paid out or for the expenses	233
of conducting bingo. "Gross receipts" does not include any money	234
directly taken in from the sale of food or beverages by a	235
charitable organization conducting bingo, or by a bona fide	236
auxiliary unit or society of a charitable organization conducting	237
bingo, provided all of the following apply:	238

(1) The auxiliary unit or society has been in existence as a	239
bona fide auxiliary unit or society of the charitable organization	240
for at least two years prior to conducting bingo.	241

(2) The person who purchases the food or beverage receives	242
nothing of value except the food or beverage and items customarily	243
received with the purchase of that food or beverage.	244

(3) The food and beverages are sold at customary and	245
reasonable prices.	246

(Y) "Security personnel" includes any person who either is a	247
sheriff, deputy sheriff, marshal, deputy marshal, township	248
constable, or member of an organized police department of a	249
municipal corporation or has successfully completed a peace	250
officer's training course pursuant to sections 109.71 to 109.79 of	251
the Revised Code and who is hired to provide security for the	252
premises on which bingo is conducted.	253

(Z) "Charitable purpose" means that the net profit of bingo,	254
other than instant bingo, is used by, or is given, donated, or	255
otherwise transferred to, any of the following:	256

(1) Any organization that is described in subsection	257
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	258
and is either a governmental unit or an organization that is tax	259
exempt under subsection 501(a) and described in subsection	260
501(c)(3) of the Internal Revenue Code;	261

(2) A veteran's organization that is a post, chapter, or	262
organization of veterans, or an auxiliary unit or society of, or a	263
trust or foundation for, any such post, chapter, or organization	264
organized in the United States or any of its possessions, at least	265
seventy-five per cent of the members of which are veterans and	266
substantially all of the other members of which are individuals	267
who are spouses, widows, or widowers of veterans, or such	268
individuals, provided that no part of the net earnings of such	269
post, chapter, or organization inures to the benefit of any	270
private shareholder or individual, and further provided that the	271
net profit is used by the post, chapter, or organization for the	272
charitable purposes set forth in division (B)(12) of section	273
5739.02 of the Revised Code, is used for awarding scholarships to	274
or for attendance at an institution mentioned in division (B)(12)	275
of section 5739.02 of the Revised Code, is donated to a	276
governmental agency, or is used for nonprofit youth activities,	277
the purchase of United States or Ohio flags that are donated to	278
schools, youth groups, or other bona fide nonprofit organizations,	279
promotion of patriotism, or disaster relief;	280

(3) A fraternal organization that has been in continuous	281
existence in this state for fifteen years and that uses the net	282
profit exclusively for religious, charitable, scientific,	283
literary, or educational purposes, or for the prevention of	284
cruelty to children or animals, if contributions for such use	285
would qualify as a deductible charitable contribution under	286
subsection 170 of the Internal Revenue Code;	287

(4) A volunteer firefighter's organization that uses the net	288
profit for the purposes set forth in division (L) of this section.	289

(AA) "Internal Revenue Code" means the "Internal Revenue Code	290
of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter	291
amended.	292

(BB) "Youth athletic organization" means any organization,	293
not organized for profit, that is organized and operated	294
exclusively to provide financial support to, or to operate,	295
athletic activities for persons who are twenty-one years of age or	296
younger by means of sponsoring, organizing, operating, or	297
contributing to the support of an athletic team, club, league, or	298
association.	299

(CC) "Youth athletic park organization" means any	300
organization, not organized for profit, that satisfies both of the	301
following:	302

(1) It owns, operates, and maintains playing fields that	303
satisfy both of the following:	304

(a) The playing fields are used at least one hundred days per	305
year for athletic activities by one or more organizations, not	306
organized for profit, each of which is organized and operated	307
exclusively to provide financial support to, or to operate,	308
athletic activities for persons who are eighteen years of age or	309
younger by means of sponsoring, organizing, operating, or	310
contributing to the support of an athletic team, club, league, or	311
association.	312

(b) The playing fields are not used for any profit-making	313
activity at any time during the year.	314

(2) It uses the proceeds of bingo it conducts exclusively for	315
the operation, maintenance, and improvement of its playing fields	316
of the type described in division (CC)(1) of this section.	317

(DD) "Amateur athletic organization" means any organization,	318
not organized for profit, that is organized and operated	319
exclusively to provide financial support to, or to operate,	320
athletic activities for persons who are training for amateur	321
athletic competition that is sanctioned by a national governing	322
body as defined in the "Amateur Sports Act of 1978," 90 Stat.	323
3045, 36 U.S.C.A. 373.	324

(EE) "Bingo supplies" means bingo cards or sheets; instant	325
bingo tickets or cards; electronic bingo aids; raffle tickets;	326
punch boards; seal cards; instant bingo ticket dispensers; and	327
devices for selecting or displaying the combination of bingo	328
letters and numbers or raffle tickets. Items that are "bingo	329
supplies" are not gambling devices if sold or otherwise provided,	330
and used, in accordance with this chapter. For purposes of this	331
chapter, "bingo supplies" are not to be considered equipment used	332
to conduct a bingo game.	333

(FF) "Instant bingo" means a form of bingo that uses folded	334
or banded tickets or paper cards with perforated break-open tabs,	335
a face of which is covered or otherwise hidden from view to	336
conceal a number, letter, or symbol, or set of numbers, letters,	337
or symbols, some of which have been designated in advance as prize	338
winners. "Instant bingo" includes seal cards. "Instant bingo" does	339
not include any device that is activated by the insertion of a	340
coin, currency, token, or an equivalent, and that contains as one	341
of its components a video display monitor that is capable of	342
displaying numbers, letters, symbols, or characters in winning or	343
losing combinations.	344

(GG) "Seal card" means a form of instant bingo that uses	345
instant bingo tickets in conjunction with a board or placard that	346
contains one or more seals that, when removed or opened, reveal	347
predesignated winning numbers, letters, or symbols.	348

(HH) "Raffle" means a form of bingo in which the one or more	349
prizes are won by one or more persons who have purchased a raffle	350
ticket. The one or more winners of the raffle are determined by	351
drawing a ticket stub or other detachable section from a	352
receptacle containing ticket stubs or detachable sections	353
corresponding to all tickets sold for the raffle.	354

(II) "Punch board" means a board containing a number of holes	355
or receptacles of uniform size in which are placed, mechanically	356
and randomly, serially numbered slips of paper that may be punched	357
or drawn from the hole or receptacle when used in conjunction with	358
instant bingo. A player may punch or draw the numbered slips of	359
paper from the holes or receptacles and obtain the prize	360
established for the game if the number drawn corresponds to a	361
winning number or, if the punch board includes the use of a seal	362
card, a potential winning number.	363

(JJ) "Gross profit" means gross receipts minus the amount	364
actually expended for the payment of prize awards.	365

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

366

(LL) "Expenses" means the reasonable amount of gross profit	367
actually expended for all of the following:	368

(1) The purchase or lease of bingo supplies;

369

(2) The annual license fee required under section 2915.08 of	370
the Revised Code;	371

(3) Bank fees and service charges for a bingo session or game	372
account described in section 2915.10 of the Revised Code;	373

(4) Audits and accounting services;

374

(5) Safes;

375

(6) Cash registers;

376

(7) Hiring security personnel;

377

(8) Advertising bingo;

378

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

379

(10) Tables and chairs;

380

(11) Expenses for maintaining and operating a charitable	381
organization's facilities, including, but not limited to, a post	382
home, club house, lounge, tavern, or canteen and any grounds	383
attached to the post home, club house, lounge, tavern, or canteen;	384

(12) Payment of real property taxes and assessments that are	385
levied on a premises on which bingo is conducted;	386

(13) Any other product or service directly related to the	387
conduct of bingo that is authorized in rules adopted by the	388
attorney general under division (B)(1) of section 2915.08 of the	389
Revised Code.	390

(MM) "Person" has the same meaning as in section 1.59 of the	391
Revised Code and includes any firm or any other legal entity,	392
however organized.	393

(NN) "Revoke" means to void permanently all rights and	394
privileges of the holder of a license issued under section	395
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	396
gaming license issued by another jurisdiction.	397

(OO) "Suspend" means to interrupt temporarily all rights and	398
privileges of the holder of a license issued under section	399
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	400
gaming license issued by another jurisdiction.	401

(PP) "Distributor" means any person who purchases or obtains	402
bingo supplies and who does either of the following:	403

(1) Sells, offers for sale, or otherwise provides or offers	404
to provide the bingo supplies to another person for use in this	405
state;	406

(2) Modifies, converts, adds to, or removes parts from the	407
bingo supplies to further their promotion or sale for use in this	408
state.	409

(QQ) "Manufacturer" means any person who assembles completed	410
bingo supplies from raw materials, other items, or subparts or who	411
modifies, converts, adds to, or removes parts from bingo supplies	412
to further their promotion or sale.	413

(RR) "Gross annual revenues" means the annual gross receipts	414
derived from the conduct of bingo described in division (S)(1) of	415
this section plus the annual net profit derived from the conduct	416
of bingo described in division (S)(2) of this section.	417

(SS) "Instant bingo ticket dispenser" means a mechanical	418
device that dispenses an instant bingo ticket or card as the sole	419
item of value dispensed and that has the following	420
characteristics:	421

(1) It is activated upon the insertion of United States	422
currency.	423

(2) It performs no gaming functions.

424

(3) It does not contain a video display monitor or generate	425
noise.	426

(4) It is not capable of displaying any numbers, letters,	427
symbols, or characters in winning or losing combinations.	428

(5) It does not simulate or display rolling or spinning	429
reels.	430

(6) It is incapable of determining whether a dispensed bingo	431
ticket or card is a winning or nonwinning ticket or card and	432
requires a winning ticket or card to be paid by a bingo game	433
operator.	434

(7) It may provide accounting and security features to aid in	435
accounting for the instant bingo tickets or cards it dispenses.	436

(8) It is not part of an electronic network and is not	437
interactive.	438

(TT)(1) "Electronic bingo aid" means an electronic device	439
used by a participant to monitor bingo cards or sheets purchased	440
at the time and place of a bingo session and that does all of the	441
following:	442

(a) It provides a means for a participant to input numbers	443
and letters announced by a bingo caller.	444

(b) It compares the numbers and letters entered by the	445
participant to the bingo faces previously stored in the memory of	446
the device.	447

(c) It identifies a winning bingo pattern.

448

(2) "Electronic bingo aid" does not include any device into	449
which a coin, currency, token, or an equivalent is inserted to	450
activate play.	451

(UU) "Deal of instant bingo tickets" means a single game of	452
instant bingo tickets all with the same serial number.	453

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

454

(a) Any mechanical, electronic, video, or digital device that	455
is capable of accepting anything of value, directly or indirectly,	456
from or on behalf of a player who gives the thing of value in the	457
hope of gain;	458

(b) Any mechanical, electronic, video, or digital device that	459
is capable of accepting anything of value, directly or indirectly,	460
from or on behalf of a player to conduct or dispense bingo or a	461
scheme or game of chance.	462

(2) "Slot machine" does not include a skill-based amusement	463
machine or an instant bingo ticket dispenser.	464

(WW) "Net profit from the proceeds of the sale of instant	465
bingo" means gross profit minus the ordinary, necessary, and	466
reasonable expense expended for the purchase of instant bingo	467
supplies.	468

(XX) "Charitable instant bingo organization" means an	469
organization that is exempt from federal income taxation under	470
subsection 501(a) and described in subsection 501(c)(3) of the	471
Internal Revenue Code and is a charitable organization as defined	472
in this section. A "charitable instant bingo organization" does	473
not include a charitable organization that is exempt from federal	474
income taxation under subsection 501(a) and described in	475
subsection 501(c)(3) of the Internal Revenue Code and that is	476
created by a veteran's organization, a fraternal organization, or	477
a sporting organization in regards to bingo conducted or assisted	478
by a veteran's organization, a fraternal organization, or a	479
sporting organization pursuant to section 2915.13 of the Revised	480
Code.	481

(YY) "Game flare" means the board or placard that accompanies	482
each deal of instant bingo tickets and that has printed on or	483
affixed to it the following information for the game:	484

(1) The name of the game;

485

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

486

(3) The form number;

487

(4) The ticket count;

488

(5) The prize structure, including the number of winning	489
instant bingo tickets by denomination and the respective winning	490
symbol or number combinations for the winning instant bingo	491
tickets;	492

(6) The cost per play;

493

(7) The serial number of the game.

494

(ZZ) "Historic railroad educational organization" means an	495
organization that is exempt from federal income taxation under	496
subsection 501(a) and described in subsection 501(c)(3) of the	497
Internal Revenue Code, that owns in fee simple the tracks and the	498
right of way of a historic railroad that the organization restores	499
or maintains and on which the organization provides excursions as	500
part of a program to promote tourism and educate visitors	501
regarding the role of railroad transportation in Ohio history, and	502
that received as donations from a charitable organization that	503
holds a license to conduct bingo under this chapter an amount	504
equal to at least fifty per cent of that licensed charitable	505
organization's net proceeds from the conduct of bingo during each	506
of the five years preceding June 30, 2003. "Historic railroad"	507
means all or a portion of the tracks and right-of-way of a	508
railroad that was owned and operated by a for-profit common	509
carrier in this state at any time prior to January 1, 1950.	510

(AAA)(1) "Skill-based amusement machine" means a mechanical,	511
video, digital, or electronic device that rewards the player or	512
players, if at all, only with merchandise prizes or with	513
redeemable vouchers redeemable only for merchandise prizes,	514
provided that with respect to rewards for playing the game all	515
of the following apply:	516

(a) The wholesale value of a merchandise prize awarded as a	517
result of the single play of a machine does not exceed ten	518
dollars;	519

(b) Redeemable vouchers awarded for any single play of a	520
machine are not redeemable for a merchandise prize with a	521
wholesale value of more than ten dollars;	522

(c) Redeemable vouchers are not redeemable for a merchandise	523
prize that has a wholesale value of more than ten dollars times	524
the fewest number of single plays necessary to accrue the	525
redeemable vouchers required to obtain that prize; and	526

(d) Any redeemable vouchers or merchandise prizes are	527
distributed at the site of the skill-based amusement machine at	528
the time of play.	529

(2) A device shall not be considered a skill-based amusement	530
machine and shall be considered a slot machine if it pays cash or	531
one or more of the following apply:	532

(a) The ability of a player to succeed at the game is	533
impacted by the number or ratio of prior wins to prior losses of	534
players playing the game.	535

(b) Any reward of redeemable vouchers is not based solely on	536
the player achieving the object of the game or the players	537
player's score;.	538

(c) The outcome of the game, or the value of the redeemable	539
voucher or merchandise prize awarded for winning the game, can be	540
controlled by a source other than any player playing the game.	541

(d) The success of any player is or may be determined by a	542
chance event that cannot be altered by player actions.	543

(e) The ability of any player to succeed at the game is	544
determined by game features not visible or known to the player.	545

(f) The ability of the player to succeed at the game is	546
impacted by the exercise of a skill that no reasonable player	547
could exercise.	548

(3) All of the following apply to any machine that is	549
operated as described in division (AAA)(1) of this section:	550

(a) As used in this section, "game" and "play" mean one	551
event from the initial activation of the machine until the	552
results of play are determined without payment of additional	553
consideration. An individual utilizing a machine that involves a	554
single game, play, contest, competition, or tournament may be	555
awarded redeemable vouchers or merchandise prizes based on the	556
results of play.	557

(b) Advance play for a single game, play, contest,	558
competition, or tournament participation may be purchased. The	559
cost of the contest, competition, or tournament participation may	560
be greater than a single noncontest, competition, or tournament	561
play.	562

(c) To the extent that the machine is used in a contest,	563
competition, or tournament, that contest, competition, or	564
tournament has a defined starting and ending date and is open to	565
participants in competition for scoring and ranking results toward	566
the awarding of redeemable vouchers or merchandise prizes that are	567
stated prior to the start of the contest, competition, or	568
tournament.	569

(4) For purposes of division (AAA)(1) of this section, the	570
mere presence of a device, such as a pin-setting, ball-releasing,	571
or scoring mechanism, that does not contribute to or affect the	572
outcome of the play of the game does not make the device a	573
skill-based amusement machine.	574

(BBB) "Merchandise prize" means any item of value, but shall	575
not include any of the following:	576

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

577

(2) Plays on games of chance, state lottery tickets, bingo,	578
or instant bingo;	579

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

580

(4) A redeemable voucher that is redeemable for any of the	581
items listed in division (BBB)(1), (2), or (3) of this section.	582

(CCC) "Redeemable voucher" means any ticket, token, coupon,	583
receipt, or other noncash representation of value.	584

(DDD) "Pool not conducted for profit" means a scheme in which	585
a participant gives a valuable consideration for a chance to win a	586
prize and the total amount of consideration wagered is distributed	587
to a participant or participants.	588

(EEE) "Sporting organization" means a hunting, fishing, or	589
trapping organization, other than a college or high school	590
fraternity or sorority, that is not organized for profit, that is	591
affiliated with a state or national sporting organization,	592
including but not limited to, the Ohio league of sportsmen, and	593
that has been in continuous existence in this state for a period	594
of three years.	595

(FFF) "Community action agency" has the same meaning as in	596
section 122.66 of the Revised Code.	597

Sec. 2915.08.  (A)(1) Annually before the first day of	598
January, a charitable organization that desires to conduct bingo,	599
instant bingo at a bingo session, or instant bingo other than at a	600
bingo session shall make out, upon a form to be furnished by the	601
attorney general for that purpose, an application for a license to	602
conduct bingo, instant bingo at a bingo session, or instant bingo	603
other than at a bingo session and deliver that application to the	604
attorney general together with a license fee as follows:	605

(a) Except as otherwise provided in this division, for a	606
license for the conduct of bingo, two hundred dollars;	607

(b) For a license for the conduct of instant bingo at a bingo	608
session or instant bingo other than at a bingo session for a	609
charitable organization that previously has not been licensed	610
under this chapter to conduct instant bingo at a bingo session or	611
instant bingo other than at a bingo session, a license fee of five	612
hundred dollars, and for any other charitable organization, a	613
license fee that is based upon the gross profits received by the	614
charitable organization from the operation of instant bingo at a	615
bingo session or instant bingo other than at a bingo session,	616
during the one-year period ending on the thirty-first day of	617
October of the year immediately preceding the year for which the	618
license is sought, and that is one of the following:	619

(i) Five hundred dollars, if the total is fifty thousand	620
dollars or less;	621

(ii) One thousand two hundred fifty dollars plus one-fourth	622
per cent of the gross profit, if the total is more than fifty	623
thousand dollars but less than two hundred fifty thousand one	624
dollars;	625

(iii) Two thousand two hundred fifty dollars plus one-half	626
per cent of the gross profit, if the total is more than two	627
hundred fifty thousand dollars but less than five hundred thousand	628
one dollars;	629

(iv) Three thousand five hundred dollars plus one per cent of	630
the gross profit, if the total is more than five hundred thousand	631
dollars but less than one million one dollars;	632

(v) Five thousand dollars plus one per cent of the gross	633
profit, if the total is one million one dollars or more;	634

(c) A reduced license fee established by the attorney general	635
pursuant to division (G) of this section.	636

(d) For a license to conduct bingo for a charitable	637
organization that prior to the effective date of this amendment	638
July 1, 2003, has not been licensed under this chapter to conduct	639
bingo, instant bingo at a bingo session, or instant bingo other	640
than at a bingo session, a license fee established by rule by the	641
attorney general in accordance with division (H) of this section.	642

(2) The application shall be in the form prescribed by the	643
attorney general, shall be signed and sworn to by the applicant,	644
and shall contain all of the following:	645

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

646

(b) A statement that the applicant is a charitable	647
organization and that it has been in continuous existence as a	648
charitable organization in this state for two years immediately	649
preceding the making of the application or for five years in the	650
case of a fraternal organization or a nonprofit medical	651
organization;	652

(c) The location at which the organization will conduct	653
bingo, which location shall be within the county in which the	654
principal place of business of the applicant is located, the days	655
of the week and the times on each of those days when bingo will be	656
conducted, whether the organization owns, leases, or subleases the	657
premises, and a copy of the rental agreement if it leases or	658
subleases the premises;	659

(d) A statement of the applicant's previous history, record,	660
and association that is sufficient to establish that the applicant	661
is a charitable organization, and a copy of a determination letter	662
that is issued by the Internal Revenue Service and states that the	663
organization is tax exempt under subsection 501(a) and described	664
in subsection 501(c)(3), 501(c)(4), 501(c)(7), 501(c)(8),	665
501(c)(10), or 501(c)(19) of the Internal Revenue Code;	666

(e) A statement as to whether the applicant has ever had any	667
previous application refused, whether it previously has had a	668
license revoked or suspended, and the reason stated by the	669
attorney general for the refusal, revocation, or suspension;	670

(f) A statement of the charitable purposes for which the net	671
profit derived from bingo, other than instant bingo, will be used,	672
and a statement of how the net profit derived from instant bingo	673
will be distributed in accordance with section 2915.101 of the	674
Revised Code;	675

(g) Other necessary and reasonable information that the	676
attorney general may require by rule adopted pursuant to section	677
111.15 of the Revised Code;	678

(h) If the applicant is a charitable trust as defined in	679
section 109.23 of the Revised Code, a statement as to whether it	680
has registered with the attorney general pursuant to section	681
109.26 of the Revised Code or filed annual reports pursuant to	682
section 109.31 of the Revised Code, and, if it is not required to	683
do either, the exemption in section 109.26 or 109.31 of the	684
Revised Code that applies to it;	685

(i) If the applicant is a charitable organization as defined	686
in section 1716.01 of the Revised Code, a statement as to whether	687
it has filed with the attorney general a registration statement	688
pursuant to section 1716.02 of the Revised Code and a financial	689
report pursuant to section 1716.04 of the Revised Code, and, if it	690
is not required to do both, the exemption in section 1716.03 of	691
the Revised Code that applies to it;	692

(j) In the case of an applicant seeking to qualify as a youth	693
athletic park organization, a statement issued by a board or body	694
vested with authority under Chapter 755. of the Revised Code for	695
the supervision and maintenance of recreation facilities in the	696
territory in which the organization is located, certifying that	697
the playing fields owned by the organization were used for at	698
least one hundred days during the year in which the statement is	699
issued, and were open for use to all residents of that territory,	700
regardless of race, color, creed, religion, sex, or national	701
origin, for athletic activities by youth athletic organizations	702
that do not discriminate on the basis of race, color, creed,	703
religion, sex, or national origin, and that the fields were not	704
used for any profit-making activity at any time during the year.	705
That type of board or body is authorized to issue the statement	706
upon request and shall issue the statement if it finds that the	707
applicant's playing fields were so used.	708

(3) The attorney general, within thirty days after receiving	709
a timely filed application from a charitable organization that has	710
been issued a license under this section that has not expired and	711
has not been revoked or suspended, shall send a temporary permit	712
to the applicant specifying the date on which the application was	713
filed with the attorney general and stating that, pursuant to	714
section 119.06 of the Revised Code, the applicant may continue to	715
conduct bingo until a new license is granted or, if the	716
application is rejected, until fifteen days after notice of the	717
rejection is mailed to the applicant. The temporary permit does	718
not affect the validity of the applicant's application and does	719
not grant any rights to the applicant except those rights	720
specifically granted in section 119.06 of the Revised Code. The	721
issuance of a temporary permit by the attorney general pursuant to	722
this division does not prohibit the attorney general from	723
rejecting the applicant's application because of acts that the	724
applicant committed, or actions that the applicant failed to take,	725
before or after the issuance of the temporary permit.	726

(4) Within thirty days after receiving an initial license	727
application from a charitable organization to conduct bingo,	728
instant bingo at a bingo session, or instant bingo other than at a	729
bingo session, the attorney general shall conduct a preliminary	730
review of the application and notify the applicant regarding any	731
deficiencies. Once an application is deemed complete, or beginning	732
on the thirtieth day after the application is filed, if the	733
attorney general failed to notify the applicant of any	734
deficiencies, the attorney general shall have an additional sixty	735
days to conduct an investigation and either grant or deny the	736
application based on findings established and communicated in	737
accordance with divisions (B) and (E) of this section. As an	738
option to granting or denying an initial license application, the	739
attorney general may grant a temporary license and request	740
additional time to conduct the investigation if the attorney	741
general has cause to believe that additional time is necessary to	742
complete the investigation and has notified the applicant in	743
writing about the specific concerns raised during the	744
investigation.	745

(B)(1) The attorney general shall adopt rules to enforce	746
sections 2915.01, 2915.02, and 2915.07 to 2915.13 of the Revised	747
Code to ensure that bingo or instant bingo is conducted in	748
accordance with those sections and to maintain proper control over	749
the conduct of bingo or instant bingo. The rules, except rules	750
adopted pursuant to divisions (A)(2)(g) and (G) of this section,	751
shall be adopted pursuant to Chapter 119. of the Revised Code. The	752
attorney general shall license charitable organizations to conduct	753
bingo, instant bingo at a bingo session, or instant bingo other	754
than at a bingo session in conformance with this chapter and with	755
the licensing provisions of Chapter 119. of the Revised Code.	756

(2) The attorney general may refuse to grant a license to any	757
organization, or revoke or suspend the license of any	758
organization, that does any of the following or to which any of	759
the following applies:	760

(a) Fails or has failed at any time to meet any requirement	761
of section 109.26, 109.31, or 1716.02, or sections 2915.07 to	762
2915.11 of the Revised Code, or violates or has violated any	763
provision of sections 2915.02 or 2915.07 to 2915.13 of the Revised	764
Code or any rule adopted by the attorney general pursuant to this	765
section;	766

(b) Makes or has made an incorrect or false statement that is	767
material to the granting of the license in an application filed	768
pursuant to division (A) of this section;	769

(c) Submits or has submitted any incorrect or false	770
information relating to an application if the information is	771
material to the granting of the license;	772

(d) Maintains or has maintained any incorrect or false	773
information that is material to the granting of the license in the	774
records required to be kept pursuant to divisions (A) and (C) of	775
section 2915.10 of the Revised Code, if applicable;	776

(e) The attorney general has good cause to believe that the	777
organization will not conduct bingo, instant bingo at a bingo	778
session, or instant bingo other than at a bingo session in	779
accordance with sections 2915.07 to 2915.13 of the Revised Code or	780
with any rule adopted by the attorney general pursuant to this	781
section.	782

(3) For the purposes of division (B) of this section, any	783
action of an officer, trustee, agent, representative, or bingo	784
game operator of an organization is an action of the organization.	785

(C) The attorney general may grant licenses to charitable	786
organizations that are branches, lodges, or chapters of national	787
charitable organizations.	788

(D) The attorney general shall send notice in writing to the	789
prosecuting attorney and sheriff of the county in which the	790
organization will conduct bingo, instant bingo at a bingo session,	791
or instant bingo other than at a bingo session, as stated in its	792
application for a license or amended license, and to any other law	793
enforcement agency in that county that so requests, of all of the	794
following:	795

(1) The issuance of the license;

796

(2) The issuance of the amended license;

797

(3) The rejection of an application for and refusal to grant	798
a license;	799

(4) The revocation of any license previously issued;

800

(5) The suspension of any license previously issued.

801

(E) A license issued by the attorney general shall set forth	802
the information contained on the application of the charitable	803
organization that the attorney general determines is relevant,	804
including, but not limited to, the location at which the	805
organization will conduct bingo, instant bingo at a bingo session,	806
or instant bingo other than at a bingo session and the days of the	807
week and the times on each of those days when bingo will be	808
conducted. If the attorney general refuses to grant or revokes or	809
suspends a license, the attorney general shall notify the	810
applicant in writing and specifically identify the reason for the	811
refusal, revocation, or suspension in narrative form and, if	812
applicable, by identifying the section of the Revised Code	813
violated. The failure of the attorney general to give the written	814
notice of the reasons for the refusal, revocation, or suspension	815
or a mistake in the written notice does not affect the validity of	816
the attorney general's refusal to grant, or the revocation or	817
suspension of, a license. If the attorney general fails to give	818
the written notice or if there is a mistake in the written notice,	819
the applicant may bring an action to compel the attorney general	820
to comply with this division or to correct the mistake, but the	821
attorney general's order refusing to grant, or revoking or	822
suspending, a license shall not be enjoined during the pendency of	823
the action.	824

(F) A charitable organization that has been issued a license	825
pursuant to division (B) of this section but that cannot conduct	826
bingo or instant bingo at the location, or on the day of the week	827
or at the time, specified on the license due to circumstances that	828
make it impractical to do so may apply in writing, together with	829
an application fee of two hundred fifty dollars, to the attorney	830
general, at least thirty days prior to a change in location, day	831
of the week, or time, and request an amended license. The	832
application shall describe the causes making it impractical for	833
the organization to conduct bingo or instant bingo in conformity	834
with its license and shall indicate the location, days of the	835
week, and times on each of those days when it desires to conduct	836
bingo or instant bingo. Except as otherwise provided in this	837
division, the attorney general shall issue the amended license in	838
accordance with division (E) of this section, and the organization	839
shall surrender its original license to the attorney general. The	840
attorney general may refuse to grant an amended license according	841
to the terms of division (B) of this section.	842

(G) The attorney general, by rule adopted pursuant to section	843
111.15 of the Revised Code, shall establish a schedule of reduced	844
license fees for charitable organizations that desire to conduct	845
bingo or instant bingo during fewer than twenty-six weeks in any	846
calendar year.	847

(H) The attorney general, by rule adopted pursuant to section	848
111.15 of the Revised Code, shall establish license fees for the	849
conduct of bingo, instant bingo at a bingo session, or instant	850
bingo other than at a bingo session for charitable organizations	851
that prior to the effective date of this amendmentJuly 1, 2003,	852
have not been licensed to conduct bingo, instant bingo at a bingo	853
session, or instant bingo other than at a bingo session under this	854
chapter.	855

(I) The attorney general may enter into a written contract	856
with any other state agency to delegate to that state agency the	857
powers prescribed to the attorney general under Chapter 2915. of	858
the Revised Code.	859

(J) The attorney general, by rule adopted pursuant to section	860
111.15 of the Revised Code, may adopt rules to determine the	861
requirements for a charitable organization that is exempt from	862
federal income taxation under subsection 501(a) and described in	863
subsection 501(c)(3) of the Internal Revenue Code to be in good	864
standing in the state.	865

Sec. 2915.091.  (A) No charitable organization that conducts	866
instant bingo shall do any of the following:	867

(1) Fail to comply with the requirements of divisions (A)(1),	868
(2), and (3) of section 2915.09 of the Revised Code;	869

(2) Conduct instant bingo unless either of the following	870
apply:	871

(a) That organization is, and has received from the internal	872
revenue service a determination letter that is currently in effect	873
stating that the organization is, exempt from federal income	874
taxation under subsection 501(a), is described in subsection	875
501(c)(3) of the Internal Revenue Code, is a charitable	876
organization as defined in section 2915.01 of the Revised Code, is	877
in good standing in the state pursuant to section 2915.08 of the	878
Revised Code, and is in compliance with Chapter 1716. of the	879
Revised Code;	880

(b) That organization is, and has received from the internal	881
revenue service a determination letter that is currently in effect	882
stating that the organization is, exempt from federal income	883
taxation under subsection 501(a), is described in subsection	884
501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) or is a veteran's	885
organization described in subsection 501(c)(4) of the Internal	886
Revenue Code, and conducts instant bingo under section 2915.13 of	887
the Revised Code.	888

(3) Conduct instant bingo on any day, at any time, or at any	889
premises not specified on the organization's license issued	890
pursuant to section 2915.08 of the Revised Code;	891

(4) Permit any person whom the organization knows or should	892
have known has been convicted of a felony or gambling offense in	893
any jurisdiction to be a bingo game operator in the conduct of	894
instant bingo;	895

(5) Purchase or lease supplies used to conduct instant bingo	896
or punch board games from any person except a distributor licensed	897
under section 2915.081 of the Revised Code;	898

(6) Sell or provide any instant bingo ticket or card for a	899
price different from the price printed on it by the manufacturer	900
on either the instant bingo ticket or card or on the game flare;	901

(7) Sell an instant bingo ticket or card to a person under	902
eighteen years of age;	903

(8) Fail to keep unsold instant bingo tickets or cards for	904
less than three years;	905

(9) Pay any compensation to a bingo game operator for	906
conducting instant bingo that is conducted by the organization or	907
for preparing, selling, or serving food or beverages at the site	908
of the instant bingo game, permit any auxiliary unit or society of	909
the organization to pay compensation to any bingo game operator	910
who prepares, sells, or serves food or beverages at an instant	911
bingo game conducted by the organization, or permit any auxiliary	912
unit or society of the organization to prepare, sell, or serve	913
food or beverages at an instant bingo game conducted by the	914
organization, if the auxiliary unit or society pays any	915
compensation to the bingo game operators who prepare, sell, or	916
serve the food or beverages;	917

(10) Pay fees to any person for any services performed in	918
relation to an instant bingo game;	919

(11) Pay fees to any person who provides refreshments to the	920
participants in an instant bingo game;	921

(12)(a) Allow instant bingo tickets or cards to be sold to	922
bingo game operators at a premises at which the organization sells	923
instant bingo tickets or cards or to be sold to employees of a D	924
permit holder who are working at a premises at which instant bingo	925
tickets or cards are sold;	926

(b) Division (A)(12)(a) of this section does not prohibit a	927
licensed charitable organization or a bingo game operator from	928
giving any person an instant bingo ticketsticket as a prize.	929

(13) Fail to display its bingo license, and the serial	930
numbers of the deal of instant bingo tickets or cards to be sold,	931
conspicuously at each premises at which it sells instant bingo	932
tickets or cards;	933

(14) Possess a deal of instant bingo tickets or cards that	934
was not purchased from a distributor licensed under section	935
2915.081 of the Revised Code as reflected on an invoice issued by	936
the distributor that contains all of the information required by	937
division (E) of section 2915.10 of the Revised Code;	938

(15) Fail, once it opens a deal of instant bingo tickets or	939
cards, to continue to sell the tickets or cards in that deal until	940
the tickets or cards with the top two highest tiers of prizes in	941
that deal are sold;	942

(16) Purchase, lease, or use instant bingo ticket dispensers	943
to sell instant bingo tickets or cards;	944

(17) Possess bingo supplies that were not obtained in	945
accordance with sections 2915.01 to 2915.13 of the Revised Code.	946

(B)(1) A charitable organization may conduct instant bingo	947
other than at a bingo session at not more than five separate	948
locations. A charitable organization that is exempt from federal	949
taxation under subsection 501(a) and described in subsection	950
501(c)(3) of the Internal Revenue Code and that is created by a	951
veteran's organization or a fraternal organization is not limited	952
in the number of separate locations the charitable organization	953
may conduct instant bingo other than at a bingo session.	954

(2) A charitable organization may purchase, lease, or use	955
instant bingo ticket dispensers to sell instant bingo tickets or	956
cards.	957

(C) The attorney general may adopt rules in accordance with	958
Chapter 119. of the Revised Code that govern the conduct of	959
instant bingo by charitable organizations. Before those rules are	960
adopted, the attorney general shall reference the recommended	961
standards for opacity, randomization, minimum information, winner	962
protection, color, and cutting for instant bingo tickets or cards,	963
seal cards, and punch boards established by the North American	964
gaming regulators association.	965

(D) Whoever violates division (A) of this section or a rule	966
adopted under division (C) of this section is guilty of illegal	967
instant bingo conduct. Except as otherwise provided in this	968
division, illegal instant bingo conduct is a misdemeanor of the	969
first degree. If the offender previously has been convicted of a	970
violation of division (A) of this section or of such a rule,	971
illegal instant bingo conduct is a felony of the fifth degree.	972

Section 2. That existing sections 2915.01, 2915.08, and	973
2915.091 of the Revised Code are hereby repealed.	974