(H) Except as otherwise provided in this chapter, "charitable | 60 |
organization" means any tax exempt religious, educational, | 61 |
veteran's, fraternal, sporting, service, nonprofit medical, | 62 |
volunteer rescue service, volunteer firefighter's, senior | 63 |
citizen's, historic railroad educational, youth athletic, amateur | 64 |
athletic, or youth athletic park organization. An organization is | 65 |
tax exempt if the organization is, and has received from the | 66 |
internal revenue service a determination letter that currently is | 67 |
in effect stating that the organization is, exempt from federal | 68 |
income taxation under subsection 501(a) and described in | 69 |
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or | 70 |
501(c)(19) of the Internal Revenue Code, or if the organization is | 71 |
a sporting organization that is exempt from federal income | 72 |
taxation under subsection 501(a) and is described in subsection | 73 |
501(c)(7) of the Internal Revenue Code. To qualify as a charitable | 74 |
organization, an organization, except a volunteer rescue service | 75 |
or volunteer firefighter's organization, shall have been in | 76 |
continuous existence as such in this state for a period of two | 77 |
years immediately preceding either the making of an application | 78 |
for a bingo license under section 2915.08 of the Revised Code or | 79 |
the conducting of any game of chance as provided in division (D) | 80 |
of section 2915.02 of the Revised Code. A charitable organization | 81 |
that is exempt from federal income taxation under subsection | 82 |
501(a) and described in subsection 501(c)(3) of the Internal | 83 |
Revenue Code and that is created by a veteran's organization, a | 84 |
fraternal organization, or a sporting organization does not have | 85 |
to have been in continuous existence as such in this state for a | 86 |
period of two years immediately preceding either the making of an | 87 |
application for a bingo license under section 2915.08 of the | 88 |
Revised Code or the conducting of any game of chance as provided | 89 |
in division (D) of section 2915.02 of the Revised Code. | 90 |
(K) "Veteran's organization" means any individual post or | 100 |
state headquarters of a national veteran's association or an | 101 |
auxiliary unit of any individual post of a national veteran's | 102 |
association, which post, state headquarters, or auxiliary unit is | 103 |
incorporated as a nonprofit corporation and either has received a | 104 |
letter from the state headquarters of the national veteran's | 105 |
association indicating that the individual post or auxiliary unit | 106 |
is in good standing with the national veteran's association or has | 107 |
received a letter from the national veteran's association | 108 |
indicating that the state headquarters is in good standing with | 109 |
the national veteran's association. As used in this division, | 110 |
"national veteran's association" means any veteran's association | 111 |
that has been in continuous existence as such for a period of at | 112 |
least five years and either is incorporated by an act of the | 113 |
United States congress or has a national dues-paying membership of | 114 |
at least five thousand persons. | 115 |
(M) "Fraternal organization" means any society, order, state | 122 |
headquarters, or association within this state, except a college | 123 |
or high school fraternity, that is not organized for profit, that | 124 |
is a branch, lodge, or chapter of a national or state | 125 |
organization, that exists exclusively for the common business or | 126 |
sodality of its members. | 127 |
(1) Any organization, not organized for profit, that is | 133 |
organized and operated exclusively to provide, or to contribute to | 134 |
the support of organizations or institutions organized and | 135 |
operated exclusively to provide, medical and therapeutic services | 136 |
for persons who are crippled, born with birth defects, or have any | 137 |
other mental or physical defect or those organized and operated | 138 |
exclusively to protect, or to contribute to the support of | 139 |
organizations or institutions organized and operated exclusively | 140 |
to protect, animals from inhumane treatment or provide immediate | 141 |
shelter to victims of domestic violence; | 142 |
(2) Any organization that is described in subsection | 143 |
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code | 144 |
and is either a governmental unit or an organization that is tax | 145 |
exempt under subsection 501(a) and described in subsection | 146 |
501(c)(3) of the Internal Revenue Code and that is an | 147 |
organization, not organized for profit, that is organized and | 148 |
operated primarily to provide, or to contribute to the support of | 149 |
organizations or institutions organized and operated primarily to | 150 |
provide, medical and therapeutic services for persons who are | 151 |
crippled, born with birth defects, or have any other mental or | 152 |
physical defect. | 153 |
(2) Any organization that is described and qualified under | 162 |
subsection 501(c)(3) of the Internal Revenue Code, that has been | 163 |
incorporated as a nonprofit corporation for at least five years, | 164 |
and that has continuously operated and will be operated primarily | 165 |
to provide, or to contribute to the support of organizations or | 166 |
institutions organized and operated primarily to provide, | 167 |
hospital, medical, research, or therapeutic services for the | 168 |
public. | 169 |
(c) A bingo game operator announces combinations of letters | 193 |
and numbers that appear on objects that a bingo game operator | 194 |
selects by chance, either manually or mechanically, from a | 195 |
receptacle that contains seventy-five objects at the beginning of | 196 |
each game, each object marked by a different combination of a | 197 |
letter and a number that corresponds to one of the seventy-five | 198 |
possible combinations of a letter and a number that can appear on | 199 |
the bingo cards or sheets. | 200 |
(U) "Bingo game operator" means any person, except security | 211 |
personnel, who performs work or labor at the site of bingo, | 212 |
including, but not limited to, collecting money from participants, | 213 |
handing out bingo cards or sheets or objects to cover spaces on | 214 |
bingo cards or sheets, selecting from a receptacle the objects | 215 |
that contain the combination of letters and numbers that appear on | 216 |
bingo cards or sheets, calling out the combinations of letters and | 217 |
numbers, distributing prizes, selling or redeeming instant bingo | 218 |
tickets or cards, supervising the operation of a punch board, | 219 |
selling raffle tickets, selecting raffle tickets from a receptacle | 220 |
and announcing the winning numbers in a raffle, and preparing, | 221 |
selling, and serving food or beverages. | 222 |
(X) "Gross receipts" means all money or assets, including | 232 |
admission fees, that a person receives from bingo without the | 233 |
deduction of any amounts for prizes paid out or for the expenses | 234 |
of conducting bingo. "Gross receipts" does not include any money | 235 |
directly taken in from the sale of food or beverages by a | 236 |
charitable organization conducting bingo, or by a bona fide | 237 |
auxiliary unit or society of a charitable organization conducting | 238 |
bingo, provided all of the following apply: | 239 |
(Y) "Security personnel" includes any person who either is a | 248 |
sheriff, deputy sheriff, marshal, deputy marshal, township | 249 |
constable, or member of an organized police department of a | 250 |
municipal corporation or has successfully completed a peace | 251 |
officer's training course pursuant to sections 109.71 to 109.79 of | 252 |
the Revised Code and who is hired to provide security for the | 253 |
premises on which bingo is conducted. | 254 |
(2) A veteran's organization that is a post, chapter, or | 263 |
organization of veterans, or an auxiliary unit or society of, or a | 264 |
trust or foundation for, any such post, chapter, or organization | 265 |
organized in the United States or any of its possessions, at least | 266 |
seventy-five per cent of the members of which are veterans and | 267 |
substantially all of the other members of which are individuals | 268 |
who are spouses, widows, or widowers of veterans, or such | 269 |
individuals, provided that no part of the net earnings of such | 270 |
post, chapter, or organization inures to the benefit of any | 271 |
private shareholder or individual, and further provided that the | 272 |
net profit is used by the post, chapter, or organization for the | 273 |
charitable purposes set forth in division (B)(12) of section | 274 |
5739.02 of the Revised Code, is used for awarding scholarships to | 275 |
or for attendance at an institution mentioned in division (B)(12) | 276 |
of section 5739.02 of the Revised Code, is donated to a | 277 |
governmental agency, or is used for nonprofit youth activities, | 278 |
the purchase of United States or Ohio flags that are donated to | 279 |
schools, youth groups, or other bona fide nonprofit organizations, | 280 |
promotion of patriotism, or disaster relief; | 281 |
(3) A fraternal organization that has been in continuous | 282 |
existence in this state for fifteen years and that uses the net | 283 |
profit exclusively for religious, charitable, scientific, | 284 |
literary, or educational purposes, or for the prevention of | 285 |
cruelty to children or animals, if contributions for such use | 286 |
would qualify as a deductible charitable contribution under | 287 |
subsection 170 of the Internal Revenue Code; | 288 |
(BB) "Youth athletic organization" means any organization, | 294 |
not organized for profit, that is organized and operated | 295 |
exclusively to provide financial support to, or to operate, | 296 |
athletic activities for persons who are twenty-one years of age or | 297 |
younger by means of sponsoring, organizing, operating, or | 298 |
contributing to the support of an athletic team, club, league, or | 299 |
association. | 300 |
(a) The playing fields are used at least one hundred days per | 306 |
year for athletic activities by one or more organizations, not | 307 |
organized for profit, each of which is organized and operated | 308 |
exclusively to provide financial support to, or to operate, | 309 |
athletic activities for persons who are eighteen years of age or | 310 |
younger by means of sponsoring, organizing, operating, or | 311 |
contributing to the support of an athletic team, club, league, or | 312 |
association. | 313 |
(EE) "Bingo supplies" means bingo cards or sheets; instant | 326 |
bingo tickets or cards; electronic bingo aids; raffle tickets; | 327 |
punch boards; seal cards; instant bingo ticket dispensers; and | 328 |
devices for selecting or displaying the combination of bingo | 329 |
letters and numbers or raffle tickets. Items that are "bingo | 330 |
supplies" are not gambling devices if sold or otherwise provided, | 331 |
and used, in accordance with this chapter. For purposes of this | 332 |
chapter, "bingo supplies" are not to be considered equipment used | 333 |
to conduct a bingo game. | 334 |
(FF) "Instant bingo" means a form of bingo that uses folded | 335 |
or banded tickets or paper cards with perforated break-open tabs, | 336 |
a face of which is covered or otherwise hidden from view to | 337 |
conceal a number, letter, or symbol, or set of numbers, letters, | 338 |
or symbols, some of which have been designated in advance as prize | 339 |
winners. "Instant bingo" includes seal cards. "Instant bingo" does | 340 |
not include any device that is activated by the insertion of a | 341 |
coin, currency, token, or an equivalent, and that contains as one | 342 |
of its components a video display monitor that is capable of | 343 |
displaying numbers, letters, symbols, or characters in winning or | 344 |
losing combinations. | 345 |
(HH) "Raffle" means a form of bingo in which the one or more | 350 |
prizes are won by one or more persons who have purchased a raffle | 351 |
ticket. The one or more winners of the raffle are determined by | 352 |
drawing a ticket stub or other detachable section from a | 353 |
receptacle containing ticket stubs or detachable sections | 354 |
corresponding to all tickets sold for the raffle. "Raffle" does | 355 |
not include the drawing of a ticket stub or other detachable | 356 |
section of a ticket purchased to attend a professional sporting | 357 |
event if both of the following apply: | 358 |
(II) "Punch board" means a board containing a number of holes | 365 |
or receptacles of uniform size in which are placed, mechanically | 366 |
and randomly, serially numbered slips of paper that may be punched | 367 |
or drawn from the hole or receptacle when used in conjunction with | 368 |
instant bingo. A player may punch or draw the numbered slips of | 369 |
paper from the holes or receptacles and obtain the prize | 370 |
established for the game if the number drawn corresponds to a | 371 |
winning number or, if the punch board includes the use of a seal | 372 |
card, a potential winning number. | 373 |
(11) Expenses for maintaining and operating a charitable | 391 |
organization's facilities, including, but not limited to, a post | 392 |
home, club house, lounge, tavern, or canteen and any grounds | 393 |
attached to the post home, club house, lounge, tavern, or canteen; | 394 |
(XX) "Charitable instant bingo organization" means an | 479 |
organization that is exempt from federal income taxation under | 480 |
subsection 501(a) and described in subsection 501(c)(3) of the | 481 |
Internal Revenue Code and is a charitable organization as defined | 482 |
in this section. A "charitable instant bingo organization" does | 483 |
not include a charitable organization that is exempt from federal | 484 |
income taxation under subsection 501(a) and described in | 485 |
subsection 501(c)(3) of the Internal Revenue Code and that is | 486 |
created by a veteran's organization, a fraternal organization, or | 487 |
a sporting organization in regards to bingo conducted or assisted | 488 |
by a veteran's organization, a fraternal organization, or a | 489 |
sporting organization pursuant to section 2915.13 of the Revised | 490 |
Code. | 491 |
(ZZ) "Historic railroad educational organization" means an | 505 |
organization that is exempt from federal income taxation under | 506 |
subsection 501(a) and described in subsection 501(c)(3) of the | 507 |
Internal Revenue Code, that owns in fee simple the tracks and the | 508 |
right-of-way of a historic railroad that the organization restores | 509 |
or maintains and on which the organization provides excursions as | 510 |
part of a program to promote tourism and educate visitors | 511 |
regarding the role of railroad transportation in Ohio history, and | 512 |
that received as donations from a charitable organization that | 513 |
holds a license to conduct bingo under this chapter an amount | 514 |
equal to at least fifty per cent of that licensed charitable | 515 |
organization's net proceeds from the conduct of bingo during each | 516 |
of the five years preceding June 30, 2003. "Historic railroad" | 517 |
means all or a portion of the tracks and right-of-way of a | 518 |
railroad that was owned and operated by a for-profit common | 519 |
carrier in this state at any time prior to January 1, 1950. | 520 |
(c) To the extent that the machine is used in a contest, | 579 |
competition, or tournament, that contest, competition, or | 580 |
tournament has a defined starting and ending date and is open to | 581 |
participants in competition for scoring and ranking results toward | 582 |
the awarding of redeemable vouchers or merchandise prizes that are | 583 |
stated prior to the start of the contest, competition, or | 584 |
tournament. | 585 |
(EEE) "Sporting organization" means a hunting, fishing, or | 605 |
trapping organization, other than a college or high school | 606 |
fraternity or sorority, that is not organized for profit, that is | 607 |
affiliated with a state or national sporting organization, | 608 |
including but not limited to, the Ohio league of sportsmen, and | 609 |
that has been in continuous existence in this state for a period | 610 |
of three years. | 611 |
(D) "Casino gaming" means any type of slot machine or table | 623 |
game wagering, using money, casino credit, or any representative | 624 |
of value, authorized in any of the states of Indiana, Michigan, | 625 |
Pennsylvania, and West Virginia as of January 1, 2009, and | 626 |
includes slot machine and table game wagering subsequently | 627 |
authorized by, but shall not be limited by, subsequent | 628 |
restrictions placed on such wagering in such states. "Casino | 629 |
gaming" does not include bingo, as authorized in Section 6 of | 630 |
Article XV, Ohio Constitution and conducted as of January 1, 2009, | 631 |
or horse racing where the pari-mutuel system of wagering is | 632 |
conducted, as authorized under the laws of this state as of | 633 |
January 1, 2009. | 634 |
(F) "Casino operator" means any person, trust, corporation, | 638 |
partnership, limited partnership, association, limited liability | 639 |
company, or other business enterprise that directly or indirectly | 640 |
holds an ownership or leasehold interest in a casino facility. | 641 |
"Casino operator" does not include an agency of the state, any | 642 |
political subdivision of the state, any person, trust, | 643 |
corporation, partnership, limited partnership, association, | 644 |
limited liability company, or other business enterprise that may | 645 |
have an interest in a casino facility, but who is legally or | 646 |
contractually restricted from conducting casino gaming. | 647 |
(J) "Gaming-related vendor" means any individual, | 660 |
partnership, corporation, association, trust, or any other group | 661 |
of individuals, however organized, who supplies gaming-related | 662 |
equipment, goods, or services to a casino operator or management | 663 |
company, that are directly related to or affect casino gaming | 664 |
authorized under this chapter, including, but not limited to, the | 665 |
manufacture, sale, distribution, or repair of slot machines and | 666 |
table game equipment. | 667 |
(K) "Holding company" means any corporation, firm, | 668 |
partnership, limited partnership, limited liability company, | 669 |
trust, or other form of business organization not a natural person | 670 |
which directly or indirectly owns, has the power or right to | 671 |
control, or holds with power to vote, any part of an applicant, | 672 |
casino operator, management company, or gaming-related vendor | 673 |
license. | 674 |
(M) "Institutional investor" means any of the following | 680 |
entities owning one per cent or less, or a percentage between one | 681 |
and ten per cent as approved by the commission through a waiver on | 682 |
a case-by-case basis, ownership interest in a casino facility, | 683 |
casino operator, management company, or holding company: a | 684 |
corporation, bank, insurance company, pension fund or pension fund | 685 |
trust, retirement fund, including funds administered by a public | 686 |
agency, employees' profit-sharing fund or employees' | 687 |
profit-sharing trust, any association engaged, as a substantial | 688 |
part of its business or operations, in purchasing or holding | 689 |
securities, or any trust in respect of which a bank is trustee or | 690 |
cotrustee, investment company registered under the "Investment | 691 |
Company Act of 1940," 15 U.S.C. 80a-1 et seq., collective | 692 |
investment trust organized by banks under Part Nine of the Rules | 693 |
of the Comptroller of the Currency, closed-end investment trust, | 694 |
chartered or licensed life insurance company or property and | 695 |
casualty insurance company, investment advisor registered under | 696 |
the "Investment Advisors Act of 1940," 15 U.S.C. 80 b-1 et seq., | 697 |
and such other persons as the commission may reasonably determine | 698 |
to qualify as an institutional investor for reasons consistent | 699 |
with this chapter. | 700 |
(3) A managerial employee of a person that has applied for or | 717 |
holds a casino operator or gaming-related vendor license in Ohio, | 718 |
or a managerial employee of a holding company that has control of | 719 |
a person that has applied for or holds a casino operator or | 720 |
gaming-related vendor license in Ohio, who performs the function | 721 |
of principal executive officer, principal operating officer, | 722 |
principal accounting officer, or an equivalent officer or other | 723 |
person the commission determines to have the power to exercise | 724 |
significant influence over decisions concerning any part of the | 725 |
operation of such licensee. | 726 |
(P) "Majority ownership interest" in a license or in a casino | 734 |
facility, as the case may be, means ownership of more than fifty | 735 |
per cent of such license or casino facility, as the case may be. | 736 |
For purposes of the foregoing, whether a majority ownership | 737 |
interest is held in a license or in a casino facility, as the case | 738 |
may be, shall be determined under the rules for constructive | 739 |
ownership of stock provided in Treas. Reg. 1.409A-3(i)(5)(iii) as | 740 |
in effect on January 1, 2009. | 741 |
(S) "Person" includes, but is not limited to, an individual | 751 |
or a combination of individuals; a sole proprietorship, a firm, a | 752 |
company, a joint venture, a partnership of any type, a joint-stock | 753 |
company, a corporation of any type, a corporate subsidiary of any | 754 |
type, a limited liability company, a business trust, or any other | 755 |
business entity or organization; an assignee; a receiver; a | 756 |
trustee in bankruptcy; an unincorporated association, club, | 757 |
society, or other unincorporated entity or organization; entities | 758 |
that are disregarded for federal income tax purposes; and any | 759 |
other nongovernmental, artificial, legal entity that is capable of | 760 |
engaging in business. | 761 |
(V) "Slot machine" means any mechanical, electrical, or other | 771 |
device or machine which, upon insertion of a coin, token, ticket, | 772 |
or similar object, or upon payment of any consideration, is | 773 |
available to play or operate, the play or operation of which, | 774 |
whether by reason of the skill of the operator or application of | 775 |
the element of chance, or both, makes individual prize | 776 |
determinations for individual participants in cash, premiums, | 777 |
merchandise, tokens, or any thing of value, whether the payoff is | 778 |
made automatically from the machine or in any other manner. | 779 |
(5) If an applicant has ever applied for or has been granted | 814 |
any gaming license or certificate issued by a licensing authority | 815 |
in Ohio or any other jurisdiction that has been denied, | 816 |
restricted, suspended, revoked, or not renewed and a statement | 817 |
describing the facts and circumstances concerning the application, | 818 |
denial, restriction, suspension, revocation, or nonrenewal, | 819 |
including the licensing authority, the date each action was taken, | 820 |
and the reason for each action; | 821 |
(9) A description of any proposed casino gaming operation and | 834 |
related casino enterprises, including the type of casino facility, | 835 |
location, expected economic benefit to the community, anticipated | 836 |
or actual number of employees, any statement from an applicant | 837 |
regarding compliance with federal and state affirmative action | 838 |
guidelines, projected or actual admissions, projected or actual | 839 |
gross receipts, and scientific market research; | 840 |
(11) If an applicant has directly made a political | 843 |
contribution, loan, donation, or other payment of one hundred | 844 |
dollars or more to a statewide office holder, a member of the | 845 |
general assembly, a local government official elected in a | 846 |
jurisdiction where a casino facility is located, or a ballot issue | 847 |
not more than one year before the date the applicant filed the | 848 |
application and all information relating to the contribution, | 849 |
loan, donation, or other payment; | 850 |
Sec. 3772.15. (A) Unless a license issued under this chapter | 859 |
is suspended, expires, or is revoked, the license shall be renewed | 860 |
for not more than three years, as determined by commission rule, | 861 |
after a determination by the commission that the licensee is in | 862 |
compliance with this chapter and rules authorized by this chapter | 863 |
and after the licensee pays a fee.
The commission may assess the | 864 |
license renewal applicant a reasonable fee in the amount necessary | 865 |
to cover the commission's costs associated with the review of the | 866 |
license renewal application. | 867 |
Sec. 3772.23. (A) All tokens, chips, or electronic cards that | 880 |
are used to make wagers shall be purchased from the casino | 881 |
operator or management company while at a casino facility that has | 882 |
been approved by the commission. Chips, tokens, tickets, | 883 |
electronic cards, or similar objects may be used while at the | 884 |
casino facility only for the purpose of making wagers on casino | 885 |
games. | 886 |
(B) If a casino operator has made an initial investment of at | 902 |
least one hundred twenty-five million dollars at the time a | 903 |
license is issued, the casino operator shall spend the remainder | 904 |
of the minimum two-hundred-fifty-million-dollar total required | 905 |
initial investment within thirty-six months after the issuance of | 906 |
that license. If a casino operator who has opened an initial | 907 |
location is making substantial progress, as determined by the | 908 |
commission, on a substitute casino facility on constitutionally | 909 |
approved parcels within the same city, the commission shall | 910 |
include amounts spent by the casino operator to develop such | 911 |
parcels, and shall grant an additional thirty-six-month extension | 912 |
to the casino operator who is developing on such parcels. The | 913 |
commission, upon the request of the casino operator, may also | 914 |
approve up to twenty-four months of transitional operations by the | 915 |
casino operator on multiple noncontiguous constitutionally | 916 |
approved parcels while transitioning from the initial location to | 917 |
the new facility, provided such facilities are connected by | 918 |
property and structures, owned, leased, or under the exclusive | 919 |
control of the casino operator. | 920 |
(C) A licensed casino operator may open a casino facility in | 921 |
phases and may have gaming areas in one or more buildings, | 922 |
facilities, rooms, or areas that together constitute a single | 923 |
casino facility within the boundaries of one or more of the | 924 |
properties described in Section 6(C)(9) of Article XV, Ohio | 925 |
Constitution, and, if located on more than one of those | 926 |
properties, is connected by one or more of the following: | 927 |
Sec. 3772.31. (A) The commission, by and through the | 936 |
executive director of the commission and as required under section | 937 |
125.05 of the Revised Code, may enter into contracts necessary to | 938 |
ensure the proper operation and reporting of all casino gaming | 939 |
authorized under this chapter. The commission may determine it to | 940 |
be necessary and adopt rules to authorizeshall not require use of | 941 |
a central system by a casino operator if the casino operator is in | 942 |
compliance with this chapter. If the commission determines, after | 943 |
written notice to the casino operator and a hearing under section | 944 |
3772.04 of the Revised Code, that a casino operator is not in | 945 |
compliance with this chapter, the commission may determine it is | 946 |
necessary to require the casino operator to install and implement | 947 |
a central system under such conditions as the commission may | 948 |
require. Before any such hearing, the commission shall provide the | 949 |
casino operator with written notice that the casino operator is | 950 |
not in compliance with a specific requirement of this chapter, | 951 |
describe the requirement, and provide the casino operator at least | 952 |
thirty days to cure the noncompliance or, if the cure cannot be | 953 |
reasonably rectified within thirty days, require the casino | 954 |
operator to demonstrate to the commission's satisfaction that the | 955 |
casino operator is diligently pursuing the required cure. The | 956 |
system shall be operated by or under the commission's control. If | 957 |
the commission determines that a central system is necessary and | 958 |
adopts rules authorizing a central system, casino operators shall | 959 |
be responsible for the costs of the central system as it relates | 960 |
to casino facilities. | 961 |
(B) The commission shall certify independent testing | 962 |
laboratories to scientifically test and technically evaluate all | 963 |
slot machines, mechanical, electromechanical, or electronic table | 964 |
games, slot accounting systems, and other electronic gaming | 965 |
equipment for compliance with this chapter. The certified | 966 |
independent testing laboratories shall be accredited by a national | 967 |
accreditation body. The commission shall certify an independent | 968 |
testing laboratory if it is competent and qualified to | 969 |
scientifically test and evaluate electronic gaming equipment for | 970 |
compliance with this chapter and to otherwise perform the | 971 |
functions assigned to an independent testing laboratory under this | 972 |
chapter. An independent testing laboratory shall not be owned or | 973 |
controlled by, or have any interest in, a gaming-related vendor of | 974 |
electronic gaming equipment. The commission shall prepare a list | 975 |
of certified independent testing laboratories from which | 976 |
independent testing laboratories shall be chosen for all purposes | 977 |
under this chapter. | 978 |
Sec. 3772.34. There is hereby created in the state treasury | 979 |
the casino operator settlement fund. The fund shall receive any | 980 |
money paid to the state by the operators of casino facilities in | 981 |
excess of any licenses or fees provided by this chapter or by | 982 |
Section 6(C) of Article XV, Ohio Constitution, and in excess of | 983 |
any taxes as provided by Title LVII of the Revised Code. Moneys in | 984 |
the fund may be used for activities related to workforce | 985 |
development, economic development, job creation, training, | 986 |
education, food banks, and expenses. | 987 |
(A) "Person" means, but is not limited to, individuals, | 989 |
combinations of individuals of any form, receivers, assignees, | 990 |
trustees in bankruptcy, firms, companies, joint-stock companies, | 991 |
business trusts, estates, partnerships, limited liability | 992 |
partnerships, limited liability companies, associations, joint | 993 |
ventures, clubs, societies, for-profit corporations, S | 994 |
corporations, qualified subchapter S subsidiaries, qualified | 995 |
subchapter S trusts, trusts, entities that are disregarded for | 996 |
federal income tax purposes, and any other entities. | 997 |
(c) Except for any differences resulting from the use of an | 1028 |
accrual basis method of accounting for purposes of determining | 1029 |
gross receipts under this chapter and the use of the cash basis | 1030 |
method of accounting for purposes of determining gross receipts | 1031 |
under section 5727.24 of the Revised Code, the gross receipts | 1032 |
directly attributed to the activity of a natural gas company shall | 1033 |
be determined in a manner consistent with division (D) of section | 1034 |
5727.03 of the Revised Code. | 1035 |
(8) A person directly or indirectly owned by one or more | 1057 |
financial institutions, financial holding companies, bank holding | 1058 |
companies, or savings and loan holding companies described in | 1059 |
division (E)(3), (5), (6), or (7) of this section that is engaged | 1060 |
in activities permissible for a financial holding company under 12 | 1061 |
U.S.C. 1843(k), except that any such person held pursuant to | 1062 |
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12 | 1063 |
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person | 1064 |
directly or indirectly owned by one or more insurance companies | 1065 |
described in division (E)(9) of this section that is authorized to | 1066 |
do the business of insurance in this state. | 1067 |
(c) In the case of a partnership, trust, or other | 1079 |
unincorporated business organization other than a limited | 1080 |
liability company, one person owns the organization if, under the | 1081 |
articles of organization or other instrument governing the affairs | 1082 |
of the organization, that person has a beneficial interest in the | 1083 |
organization's profits, surpluses, losses, or distributions of | 1084 |
fifty per cent or more of the combined beneficial interests of all | 1085 |
persons having such an interest in the organization; | 1086 |
(d) In the case of multiple ownership, the ownership | 1087 |
interests of more than one person may be aggregated to meet the | 1088 |
fifty per cent ownership tests in this division only when each | 1089 |
such owner is described in division (E)(3), (5), (6), or (7) of | 1090 |
this section and is engaged in activities permissible for a | 1091 |
financial holding company under 12 U.S.C. 1843(k) or is a person | 1092 |
directly or indirectly owned by one or more insurance companies | 1093 |
described in division (E)(9) of this section that is authorized to | 1094 |
do the business of insurance in this state. | 1095 |
(10) A person that solely facilitates or services one or more | 1102 |
securitizations or similar transactions for any person described | 1103 |
in division (E)(3), (5), (6), (7), (8), or (9) of this section. | 1104 |
For purposes of this division, "securitization" means transferring | 1105 |
one or more assets to one or more persons and then issuing | 1106 |
securities backed by the right to receive payment from the asset | 1107 |
or assets so transferred. | 1108 |
(11) Except as otherwise provided in this division, a | 1109 |
pre-income tax trust as defined in division (FF)(4) of section | 1110 |
5747.01 of the Revised Code and any pass-through entity of which | 1111 |
such pre-income tax trust owns or controls, directly, indirectly, | 1112 |
or constructively through related interests, more than five per | 1113 |
cent of the ownership or equity interests. If the pre-income tax | 1114 |
trust has made a qualifying pre-income tax trust election under | 1115 |
division (FF)(3) of section 5747.01 of the Revised Code, then the | 1116 |
trust and the pass-through entities of which it owns or controls, | 1117 |
directly, indirectly, or constructively through related interests, | 1118 |
more than five per cent of the ownership or equity interests, | 1119 |
shall not be excluded persons for purposes of the tax imposed | 1120 |
under section 5751.02 of the Revised Code. | 1121 |
(F) Except as otherwise provided in divisions (F)(2), (3), | 1124 |
and (4) of this section, "gross receipts" means the total amount | 1125 |
realized by a person, without deduction for the cost of goods sold | 1126 |
or other expenses incurred, that contributes to the production of | 1127 |
gross income of the person, including the fair market value of any | 1128 |
property and any services received, and any debt transferred or | 1129 |
forgiven as consideration. | 1130 |
(c) Receipts from the sale, exchange, or other disposition of | 1145 |
an asset described in section 1221 or 1231 of the Internal Revenue | 1146 |
Code, without regard to the length of time the person held the | 1147 |
asset. Notwithstanding section 1221 of the Internal Revenue Code, | 1148 |
receipts from hedging transactions also are excluded to the extent | 1149 |
the transactions are entered into primarily to protect a financial | 1150 |
position, such as managing the risk of exposure to (i) foreign | 1151 |
currency fluctuations that affect assets, liabilities, profits, | 1152 |
losses, equity, or investments in foreign operations; (ii) | 1153 |
interest rate fluctuations; or (iii) commodity price fluctuations. | 1154 |
As used in division (F)(2)(c) of this section, "hedging | 1155 |
transaction" has the same meaning as used in section 1221 of the | 1156 |
Internal Revenue Code and also includes transactions accorded | 1157 |
hedge accounting treatment under statement of financial accounting | 1158 |
standards number 133 of the financial accounting standards board. | 1159 |
For the purposes of division (F)(2)(c) of this section, the actual | 1160 |
transfer of title of real or tangible personal property to another | 1161 |
entity is not a hedging transaction. | 1162 |
(g) Compensation, whether current or deferred, and whether in | 1173 |
cash or in kind, received or to be received by an employee, former | 1174 |
employee, or the employee's legal successor for services rendered | 1175 |
to or for an employer, including reimbursements received by or for | 1176 |
an individual for medical or education expenses, health insurance | 1177 |
premiums, or employee expenses, or on account of a dependent care | 1178 |
spending account, legal services plan, any cafeteria plan | 1179 |
described in section 125 of the Internal Revenue Code, or any | 1180 |
similar employee reimbursement; | 1181 |
(j) Gifts or charitable contributions received; membership | 1188 |
dues received by trade, professional, homeowners', or condominium | 1189 |
associations; and payments received for educational courses, | 1190 |
meetings, meals, or similar payments to a trade, professional, or | 1191 |
other similar association; and fundraising receipts received by | 1192 |
any person when any excess receipts are donated or used | 1193 |
exclusively for charitable purposes; | 1194 |
(m) Tax refunds, other tax benefit recoveries, and | 1201 |
reimbursements for the tax imposed under this chapter made by | 1202 |
entities that are part of the same combined taxpayer or | 1203 |
consolidated elected taxpayer group, and reimbursements made by | 1204 |
entities that are not members of a combined taxpayer or | 1205 |
consolidated elected taxpayer group that are required to be made | 1206 |
for economic parity among multiple owners of an entity whose tax | 1207 |
obligation under this chapter is required to be reported and paid | 1208 |
entirely by one owner, pursuant to the requirements of sections | 1209 |
5751.011 and 5751.012 of the Revised Code; | 1210 |
(q) In the case of receipts from the sale of cigarettes or | 1218 |
tobacco products by a wholesale dealer, retail dealer, | 1219 |
distributor, manufacturer, or seller, all as defined in section | 1220 |
5743.01 of the Revised Code, an amount equal to the federal and | 1221 |
state excise taxes paid by any person on or for such cigarettes or | 1222 |
tobacco products under subtitle E of the Internal Revenue Code or | 1223 |
Chapter 5743. of the Revised Code; | 1224 |
(t) Receipts realized by a new motor vehicle dealer or used | 1238 |
motor vehicle dealer, as defined in section 4517.01 of the Revised | 1239 |
Code, from the sale or other transfer of a motor vehicle, as | 1240 |
defined in that section, to another motor vehicle dealer for the | 1241 |
purpose of resale by the transferee motor vehicle dealer, but only | 1242 |
if the sale or other transfer was based upon the transferee's need | 1243 |
to meet a specific customer's preference for a motor vehicle; | 1244 |
(u) Receipts from a financial institution described in | 1245 |
division (E)(3) of this section for services provided to the | 1246 |
financial institution in connection with the issuance, processing, | 1247 |
servicing, and management of loans or credit accounts, if such | 1248 |
financial institution and the recipient of such receipts have at | 1249 |
least fifty per cent of their ownership interests owned or | 1250 |
controlled, directly or constructively through related interests, | 1251 |
by common owners; | 1252 |
(w) Funds received or used by a mortgage broker that is not a | 1257 |
dealer in intangibles, other than fees or other consideration, | 1258 |
pursuant to a table-funding mortgage loan or warehouse-lending | 1259 |
mortgage loan. Terms used in division (F)(2)(w) of this section | 1260 |
have the same meanings as in section 1322.01 of the Revised Code, | 1261 |
except "mortgage broker" means a person assisting a buyer in | 1262 |
obtaining a mortgage loan for a fee or other consideration paid by | 1263 |
the buyer or a lender, or a person engaged in table-funding or | 1264 |
warehouse-lending mortgage loans that are first lien mortgage | 1265 |
loans. | 1266 |
The applicant must substantiate to the commissioner's | 1311 |
satisfaction that, for the qualifying period, all persons | 1312 |
operating the distribution center have more than fifty per cent of | 1313 |
the cost of the qualified property shipped to a location such that | 1314 |
it would be sitused outside this state under the provisions of | 1315 |
division (E) of section 5751.033 of the Revised Code. The | 1316 |
applicant must also substantiate that the distribution center | 1317 |
cumulatively had costs from its suppliers equal to or exceeding | 1318 |
five hundred million dollars during the qualifying period. (For | 1319 |
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier" | 1320 |
excludes any person that is part of the consolidated elected | 1321 |
taxpayer group, if applicable, of the operator of the qualified | 1322 |
distribution center.) The commissioner may require the applicant | 1323 |
to have an independent certified public accountant certify that | 1324 |
the calculation of the minimum thresholds required for a qualified | 1325 |
distribution center by the operator of a distribution center has | 1326 |
been made in accordance with generally accepted accounting | 1327 |
principles. The commissioner shall issue or deny the issuance of a | 1328 |
certificate within sixty days after the receipt of the | 1329 |
application. A denial is subject to appeal under section 5717.02 | 1330 |
of the Revised Code. If the operator files a timely appeal under | 1331 |
section 5717.02 of the Revised Code, the operator shall be granted | 1332 |
a qualifying certificate, provided that the operator is liable for | 1333 |
any tax, interest, or penalty upon amounts claimed as qualifying | 1334 |
distribution center receipts, other than those receipts exempt | 1335 |
under division (C)(1) of section 5751.011 of the Revised Code, | 1336 |
that would have otherwise not been owed by its suppliers if the | 1337 |
qualifying certificate was valid. | 1338 |
(ii) If the distribution center is new and was not open for | 1344 |
the entire qualifying period, the operator of the distribution | 1345 |
center may request that the commissioner grant a qualifying | 1346 |
certificate. If the certificate is granted and it is later | 1347 |
determined that more than fifty per cent of the qualified property | 1348 |
during that year was not shipped to a location such that it would | 1349 |
be sitused outside of this state under the provisions of division | 1350 |
(E) of section 5751.033 of the Revised Code or if it is later | 1351 |
determined that the person that operates the distribution center | 1352 |
had average monthly costs from its suppliers of less than forty | 1353 |
million dollars during that year, then the operator of the | 1354 |
distribution center shall be liable for any tax, interest, or | 1355 |
penalty upon amounts claimed as qualifying distribution center | 1356 |
receipts, other than those receipts exempt under division (C)(1) | 1357 |
of section 5751.011 of the Revised Code, that would have not | 1358 |
otherwise been owed by its suppliers during the qualifying year if | 1359 |
the qualifying certificate was valid. (For purposes of division | 1360 |
(F)(2)(z)(ii) of this section, "supplier" excludes any person that | 1361 |
is part of the consolidated elected taxpayer group, if applicable, | 1362 |
of the operator of the qualified distribution center.) | 1363 |
(iii) When filing an application for a qualifying certificate | 1364 |
under division (F)(2)(z)(i)(VI) of this section, the operator of a | 1365 |
qualified distribution center also shall provide documentation, as | 1366 |
the commissioner requires, for the commissioner to ascertain the | 1367 |
Ohio delivery percentage. The commissioner, upon issuing the | 1368 |
qualifying certificate, also shall certify the Ohio delivery | 1369 |
percentage. The operator of the qualified distribution center may | 1370 |
appeal the commissioner's certification of the Ohio delivery | 1371 |
percentage in the same manner as an appeal is taken from the | 1372 |
denial of a qualifying certificate under division (F)(2)(z)(i)(VI) | 1373 |
of this section. | 1374 |
Within thirty days after all appeals have been exhausted, the | 1375 |
operator of the qualified distribution center shall notify the | 1376 |
affected suppliers of qualified property that such suppliers are | 1377 |
required to file, within sixty days after receiving notice from | 1378 |
the operator of the qualified distribution center, amended reports | 1379 |
for the impacted calendar quarter or quarters or calendar year, | 1380 |
whichever the case may be. Any additional tax liability or tax | 1381 |
overpayment shall be subject to interest but shall not be subject | 1382 |
to the imposition of any penalty so long as the amended returns | 1383 |
are timely filed. The supplier of tangible personal property | 1384 |
delivered to the qualified distribution center shall include in | 1385 |
its report of taxable gross receipts the receipts from the total | 1386 |
sales of property delivered to the qualified distribution center | 1387 |
for the calendar quarter or calendar year, whichever the case may | 1388 |
be, multiplied by the Ohio delivery percentage for the qualifying | 1389 |
year. Nothing in division (F)(2)(z)(iii) of this section shall be | 1390 |
construed as imposing liability on the operator of a qualified | 1391 |
distribution center for the tax imposed by this chapter arising | 1392 |
from any change to the Ohio delivery percentage. | 1393 |
(iv) In the case where the distribution center is new and not | 1394 |
open for the entire qualifying period, the operator shall make a | 1395 |
good faith estimate of an Ohio delivery percentage for use by | 1396 |
suppliers in their reports of taxable gross receipts for the | 1397 |
remainder of the qualifying period. The operator of the facility | 1398 |
shall disclose to the suppliers that such Ohio delivery percentage | 1399 |
is an estimate and is subject to recalculation. By the due date of | 1400 |
the next application for a qualifying certificate, the operator | 1401 |
shall determine the actual Ohio delivery percentage for the | 1402 |
estimated qualifying period and proceed as provided in division | 1403 |
(F)(2)(z)(iii) of this section with respect to the calculation and | 1404 |
recalculation of the Ohio delivery percentage. The supplier is | 1405 |
required to file, within sixty days after receiving notice from | 1406 |
the operator of the qualified distribution center, amended reports | 1407 |
for the impacted calendar quarter or quarters or calendar year, | 1408 |
whichever the case may be. Any additional tax liability or tax | 1409 |
overpayment shall be subject to interest but shall not be subject | 1410 |
to the imposition of any penalty so long as the amended returns | 1411 |
are timely filed. | 1412 |
(v) Qualifying certificates and Ohio delivery percentages | 1413 |
issued by the commissioner shall be open to public inspection and | 1414 |
shall be timely published by the commissioner. A supplier relying | 1415 |
in good faith on a certificate issued under this division shall | 1416 |
not be subject to tax on the qualifying distribution center | 1417 |
receipts under division (F)(2)(z) of this section. A person | 1418 |
receiving a qualifying certificate is responsible for paying the | 1419 |
tax, interest, and penalty upon amounts claimed as qualifying | 1420 |
distribution center receipts that would not otherwise have been | 1421 |
owed by the supplier if the qualifying certificate were available | 1422 |
when it is later determined that the qualifying certificate should | 1423 |
not have been issued because the statutory requirements were in | 1424 |
fact not met. | 1425 |
(vi) The annual fee for a qualifying certificate shall be one | 1426 |
hundred thousand dollars for each qualified distribution center. | 1427 |
If a qualifying certificate is not issued, the annual fee is | 1428 |
subject to refund after the exhaustion of all appeals provided for | 1429 |
in division (F)(2)(z)(i)(VI) of this section. The fee imposed | 1430 |
under this division may be assessed in the same manner as the tax | 1431 |
imposed under this chapter. The first one hundred thousand dollars | 1432 |
of the annual application fees collected each calendar year shall | 1433 |
be credited to the commercial activity tax administrative fund. | 1434 |
The remainder of the annual application fees collected shall be | 1435 |
distributed in the same manner required under section 5751.20 of | 1436 |
the Revised Code. | 1437 |
(dd) Bad debts from receipts on the basis of which the tax | 1449 |
imposed by this chapter was paid in a prior quarterly tax payment | 1450 |
period. For the purpose of this division, "bad debts" means any | 1451 |
debts that have become worthless or uncollectible between the | 1452 |
preceding and current quarterly tax payment periods, have been | 1453 |
uncollected for at least six months, and that may be claimed as a | 1454 |
deduction under section 166 of the Internal Revenue Code and the | 1455 |
regulations adopted under that section, or that could be claimed | 1456 |
as such if the taxpayer kept its accounts on the accrual basis. | 1457 |
"Bad debts" does not include repossessed property, uncollectible | 1458 |
amounts on property that remains in the possession of the taxpayer | 1459 |
until the full purchase price is paid, or expenses in attempting | 1460 |
to collect any account receivable or for any portion of the debt | 1461 |
recovered; | 1462 |
(gg) Amounts realized by licensed motor fuel dealers or | 1470 |
licensed permissive motor fuel dealers from the exchange of | 1471 |
petroleum products, including motor fuel, between such dealers, | 1472 |
provided that delivery of the petroleum products occurs at a | 1473 |
refinery, terminal, pipeline, or marine vessel and that the | 1474 |
exchanging dealers agree neither dealer shall require monetary | 1475 |
compensation from the other for the value of the exchanged | 1476 |
petroleum products other than such compensation for differences in | 1477 |
product location or grade. Division (F)(2)(gg) of this section | 1478 |
does not apply to amounts realized as a result of differences in | 1479 |
location or grade of exchanged petroleum products or from | 1480 |
handling, lubricity, dye, or other additive injections fees, | 1481 |
pipeline security fees, or similar fees. As used in this division, | 1482 |
"motor fuel," "licensed motor fuel dealer," "licensed permissive | 1483 |
motor fuel dealer," and "terminal" have the same meanings as in | 1484 |
section 5735.01 of the Revised Code. | 1485 |
(3) In the case of a taxpayer when acting as a real estate | 1492 |
broker, "gross receipts" includes only the portion of any fee for | 1493 |
the service of a real estate broker, or service of a real estate | 1494 |
salesperson associated with that broker, that is retained by the | 1495 |
broker and not paid to an associated real estate salesperson or | 1496 |
another real estate broker. For the purposes of this division, | 1497 |
"real estate broker" and "real estate salesperson" have the same | 1498 |
meanings as in section 4735.01 of the Revised Code. | 1499 |
(K) "Internal Revenue Code" means the Internal Revenue Code | 1545 |
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in | 1546 |
this chapter that is not otherwise defined has the same meaning as | 1547 |
when used in a comparable context in the laws of the United States | 1548 |
relating to federal income taxes unless a different meaning is | 1549 |
clearly required. Any reference in this chapter to the Internal | 1550 |
Revenue Code includes other laws of the United States relating to | 1551 |
federal income taxes. | 1552 |
(D) "Gross casino revenue" means the total amount of money | 1593 |
exchanged for the purchase of chips, tokens, tickets, electronic | 1594 |
cards, or similar objects by casino patrons, less winnings paid to | 1595 |
wagerers. "Gross casino revenue" does not include the issuance to | 1596 |
casino patrons or wagering by casino patrons of any promotional | 1597 |
gaming credit as defined in section 3772.01 of the Revised Code. | 1598 |
When issuance of the promotional gaming credit requires money | 1599 |
exchanged as a match from the patron, the excludible portion of | 1600 |
the promotional gaming credit does not include the portion of the | 1601 |
wager purchased by the patron. | 1602 |
(B) The State Racing Commission, subject to division (D) of | 1632 |
this section, shall give preference to transfer proposals | 1633 |
involving moves to locations in which neither horse-racing | 1634 |
meetings nor casino gaming have been authorized before July 1, | 1635 |
2011. A permit holder that is authorized to transfer its track | 1636 |
under this section and that is a video lottery sales agent may | 1637 |
operate at a temporary facility at its new location while | 1638 |
constructing or otherwise preparing its new track at that | 1639 |
location. A temporary facility shall meet any minimal capital | 1640 |
investment and structure requirements established by the State | 1641 |
Racing Commission. | 1642 |
(D) A permit holder who is located on property owned by a | 1648 |
political subdivision may move its track to a new location within | 1649 |
twenty miles of its current location. Such a permit holder shall | 1650 |
not be charged any fee by the state in exchange for applying for a | 1651 |
move, for having its move approved, or for moving its existing | 1652 |
track as specified under this division. The State Racing | 1653 |
Commission shall give a preference greater than the preference | 1654 |
given under division (B) of this section to such a permit holder | 1655 |
as part of the approval procedure. | 1656 |
Section 4. Notwithstanding any other provision to the | 1679 |
contrary in Chapter 3769. of the Revised Code, for a period of two | 1680 |
years after the effective date of this section, any person holding | 1681 |
a permit under that chapter to conduct live horse-racing meetings | 1682 |
at a facility owned by a political subdivision may apply for, and | 1683 |
the State Racing Commission may grant, a permit to conduct | 1684 |
horse-racing meetings at a location at which such meetings have | 1685 |
not previously been conducted. The Commission may only grant such | 1686 |
an application if the proposed location is in the same or a | 1687 |
contiguous county and is within fifty miles of the current | 1688 |
location associated with the permit, but is not in the same county | 1689 |
as another location at which live horse-racing meetings are | 1690 |
conducted. | 1691 |