As Reported by the Senate Finance Committee

129th General Assembly Regular Session 2011-2012

Sub. H. B. No. 277

Representatives Blessing, Gerberry 

Cosponsors: Representatives Boyd, Buchy, Driehaus, Hackett, Hagan, R., Henne, Letson, Mallory, Mecklenborg, O'Brien, Ruhl, Sykes, Uecker, Winburn, Yuko 

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A BILL

To amend sections 2915.01, 3772.01, 3772.11, 3772,15,

1

3772.23, 3772.27, 3772.31, 5751.01, and 5753.01

2

and to enact section 3772.34 of the Revised Code

3

to make changes to the Casino Law, to make changes

4

to skill-based amusement machine prizes, and to

5

permit a horse-racing permit holder who is

6

eligible to become a video lottery sales agent to

7

apply to the State Racing Commission to move its

8

track to another location, and to permit, under

9

certain circumstances for two years, applications

10

to conduct horse-racing meetings at locations

11

where the meetings were not previously conducted.

12

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

Section 1.  That sections 2915.01, 3772.01, 3772.11, 3772.15,	13
3772.23, 3772.27, 3772.31, 5751.01, and 5753.01 be amended and	14
section 3772.34 of the Revised Code be enacted to read as follows:	15

Sec. 2915.01.  As used in this chapter:

16

(A) "Bookmaking" means the business of receiving or paying	17
off bets.	18

(B) "Bet" means the hazarding of anything of value upon the	19
result of an event, undertaking, or contingency, but does not	20
include a bona fide business risk.	21

(C) "Scheme of chance" means a slot machine, lottery, numbers	22
game, pool conducted for profit, or other scheme in which a	23
participant gives a valuable consideration for a chance to win a	24
prize, but does not include bingo, a skill-based amusement	25
machine, or a pool not conducted for profit.	26

(D) "Game of chance" means poker, craps, roulette, or other	27
game in which a player gives anything of value in the hope of	28
gain, the outcome of which is determined largely by chance, but	29
does not include bingo.	30

(E) "Game of chance conducted for profit" means any game of	31
chance designed to produce income for the person who conducts or	32
operates the game of chance, but does not include bingo.	33

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

34

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

35

(2) A ticket, token, or other device representing a chance,	36
share, or interest in a scheme of chance or evidencing a bet;	37

(3) A deck of cards, dice, gaming table, roulette wheel, slot	38
machine, or other apparatus designed for use in connection with a	39
game of chance;	40

(4) Any equipment, device, apparatus, or paraphernalia	41
specially designed for gambling purposes;	42

(5) Bingo supplies sold or otherwise provided, or used, in	43
violation of this chapter.	44

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

45

(1) A violation of section 2915.02, 2915.03, 2915.04,	46
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09,	47
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;	48

(2) A violation of an existing or former municipal ordinance	49
or law of this or any other state or the United States	50
substantially equivalent to any section listed in division (G)(1)	51
of this section or a violation of section 2915.06 of the Revised	52
Code as it existed prior to July 1, 1996;	53

(3) An offense under an existing or former municipal	54
ordinance or law of this or any other state or the United States,	55
of which gambling is an element;	56

(4) A conspiracy or attempt to commit, or complicity in	57
committing, any offense under division (G)(1), (2), or (3) of this	58
section.	59

(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

(I) "Religious organization" means any church, body of	91
communicants, or group that is not organized or operated for	92
profit and that gathers in common membership for regular worship	93
and religious observances.	94

(J) "Educational organization" means any organization within	95
this state that is not organized for profit, the primary purpose	96
of which is to educate and develop the capabilities of individuals	97
through instruction by means of operating or contributing to the	98
support of a school, academy, college, or university.	99

(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

(L) "Volunteer firefighter's organization" means any	116
organization of volunteer firefighters, as defined in section	117
146.01 of the Revised Code, that is organized and operated	118
exclusively to provide financial support for a volunteer fire	119
department or a volunteer fire company and that is recognized or	120
ratified by a county, municipal corporation, or township.	121

(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

(N) "Volunteer rescue service organization" means any	128
organization of volunteers organized to function as an emergency	129
medical service organization, as defined in section 4765.01 of the	130
Revised Code.	131

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

132

(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

(P) "Nonprofit medical organization" means either of the	154
following:	155

(1) Any organization that has been incorporated as a	156
nonprofit corporation for at least five years and that has	157
continuously operated and will be operated exclusively to provide,	158
or to contribute to the support of organizations or institutions	159
organized and operated exclusively to provide, hospital, medical,	160
research, or therapeutic services for the public;	161

(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

(Q) "Senior citizen's organization" means any private	170
organization, not organized for profit, that is organized and	171
operated exclusively to provide recreational or social services	172
for persons who are fifty-five years of age or older and that is	173
described and qualified under subsection 501(c)(3) of the Internal	174
Revenue Code.	175

(R) "Charitable bingo game" means any bingo game described in	176
division (S)(1) or (2) of this section that is conducted by a	177
charitable organization that has obtained a license pursuant to	178
section 2915.08 of the Revised Code and the proceeds of which are	179
used for a charitable purpose.	180

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

181

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

182

(a) The participants use bingo cards or sheets, including	183
paper formats and electronic representation or image formats, that	184
are divided into twenty-five spaces arranged in five horizontal	185
and five vertical rows of spaces, with each space, except the	186
central space, being designated by a combination of a letter and a	187
number and with the central space being designated as a free	188
space.	189

(b) The participants cover the spaces on the bingo cards or	190
sheets that correspond to combinations of letters and numbers that	191
are announced by a bingo game operator.	192

(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

(d) The winner of the bingo game includes any participant who	201
properly announces during the interval between the announcements	202
of letters and numbers as described in division (S)(1)(c) of this	203
section, that a predetermined and preannounced pattern of spaces	204
has been covered on a bingo card or sheet being used by the	205
participant.	206

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

207

(T) "Conduct" means to back, promote, organize, manage, carry	208
on, sponsor, or prepare for the operation of bingo or a game of	209
chance.	210

(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

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

223

(W) "Bingo session" means a period that includes both of the	224
following:	225

(1) Not to exceed five continuous hours for the conduct of	226
one or more games described in division (S)(1) of this section,	227
instant bingo, and seal cards;	228

(2) A period for the conduct of instant bingo and seal cards	229
for not more than two hours before and not more than two hours	230
after the period described in division (W)(1) of this section.	231

(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

(1) The auxiliary unit or society has been in existence as a	240
bona fide auxiliary unit or society of the charitable organization	241
for at least two years prior to conducting bingo.	242

(2) The person who purchases the food or beverage receives	243
nothing of value except the food or beverage and items customarily	244
received with the purchase of that food or beverage.	245

(3) The food and beverages are sold at customary and	246
reasonable prices.	247

(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

(Z) "Charitable purpose" means that the net profit of bingo,	255
other than instant bingo, is used by, or is given, donated, or	256
otherwise transferred to, any of the following:	257

(1) Any organization that is described in subsection	258
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	259
and is either a governmental unit or an organization that is tax	260
exempt under subsection 501(a) and described in subsection	261
501(c)(3) of the Internal Revenue Code;	262

(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

(4) A volunteer firefighter's organization that uses the net	289
profit for the purposes set forth in division (L) of this section.	290

(AA) "Internal Revenue Code" means the "Internal Revenue Code	291
of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter	292
amended.	293

(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

(CC) "Youth athletic park organization" means any	301
organization, not organized for profit, that satisfies both of the	302
following:	303

(1) It owns, operates, and maintains playing fields that	304
satisfy both of the following:	305

(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

(b) The playing fields are not used for any profit-making	314
activity at any time during the year.	315

(2) It uses the proceeds of bingo it conducts exclusively for	316
the operation, maintenance, and improvement of its playing fields	317
of the type described in division (CC)(1) of this section.	318

(DD) "Amateur athletic organization" means any organization,	319
not organized for profit, that is organized and operated	320
exclusively to provide financial support to, or to operate,	321
athletic activities for persons who are training for amateur	322
athletic competition that is sanctioned by a national governing	323
body as defined in the "Amateur Sports Act of 1978," 90 Stat.	324
3045, 36 U.S.C.A. 373.	325

(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

(GG) "Seal card" means a form of instant bingo that uses	346
instant bingo tickets in conjunction with a board or placard that	347
contains one or more seals that, when removed or opened, reveal	348
predesignated winning numbers, letters, or symbols.	349

(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

(1) The ticket stub or other detachable section is used to	359
select the winner of a free prize given away at the professional	360
sporting event; and	361

(2) The cost of the ticket is the same as the cost of a	362
ticket to the professional sporting event on days when no free	363
prize is given away.	364

(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

(JJ) "Gross profit" means gross receipts minus the amount	374
actually expended for the payment of prize awards.	375

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

376

(LL) "Expenses" means the reasonable amount of gross profit	377
actually expended for all of the following:	378

(1) The purchase or lease of bingo supplies;

379

(2) The annual license fee required under section 2915.08 of	380
the Revised Code;	381

(3) Bank fees and service charges for a bingo session or game	382
account described in section 2915.10 of the Revised Code;	383

(4) Audits and accounting services;

384

(5) Safes;

385

(6) Cash registers;

386

(7) Hiring security personnel;

387

(8) Advertising bingo;

388

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

389

(10) Tables and chairs;

390

(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

(12) Payment of real property taxes and assessments that are	395
levied on a premises on which bingo is conducted;	396

(13) Any other product or service directly related to the	397
conduct of bingo that is authorized in rules adopted by the	398
attorney general under division (B)(1) of section 2915.08 of the	399
Revised Code.	400

(MM) "Person" has the same meaning as in section 1.59 of the	401
Revised Code and includes any firm or any other legal entity,	402
however organized.	403

(NN) "Revoke" means to void permanently all rights and	404
privileges of the holder of a license issued under section	405
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	406
gaming license issued by another jurisdiction.	407

(OO) "Suspend" means to interrupt temporarily all rights and	408
privileges of the holder of a license issued under section	409
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	410
gaming license issued by another jurisdiction.	411

(PP) "Distributor" means any person who purchases or obtains	412
bingo supplies and who does either of the following:	413

(1) Sells, offers for sale, or otherwise provides or offers	414
to provide the bingo supplies to another person for use in this	415
state;	416

(2) Modifies, converts, adds to, or removes parts from the	417
bingo supplies to further their promotion or sale for use in this	418
state.	419

(QQ) "Manufacturer" means any person who assembles completed	420
bingo supplies from raw materials, other items, or subparts or who	421
modifies, converts, adds to, or removes parts from bingo supplies	422
to further their promotion or sale.	423

(RR) "Gross annual revenues" means the annual gross receipts	424
derived from the conduct of bingo described in division (S)(1) of	425
this section plus the annual net profit derived from the conduct	426
of bingo described in division (S)(2) of this section.	427

(SS) "Instant bingo ticket dispenser" means a mechanical	428
device that dispenses an instant bingo ticket or card as the sole	429
item of value dispensed and that has the following	430
characteristics:	431

(1) It is activated upon the insertion of United States	432
currency.	433

(2) It performs no gaming functions.

434

(3) It does not contain a video display monitor or generate	435
noise.	436

(4) It is not capable of displaying any numbers, letters,	437
symbols, or characters in winning or losing combinations.	438

(5) It does not simulate or display rolling or spinning	439
reels.	440

(6) It is incapable of determining whether a dispensed bingo	441
ticket or card is a winning or nonwinning ticket or card and	442
requires a winning ticket or card to be paid by a bingo game	443
operator.	444

(7) It may provide accounting and security features to aid in	445
accounting for the instant bingo tickets or cards it dispenses.	446

(8) It is not part of an electronic network and is not	447
interactive.	448

(TT)(1) "Electronic bingo aid" means an electronic device	449
used by a participant to monitor bingo cards or sheets purchased	450
at the time and place of a bingo session and that does all of the	451
following:	452

(a) It provides a means for a participant to input numbers	453
and letters announced by a bingo caller.	454

(b) It compares the numbers and letters entered by the	455
participant to the bingo faces previously stored in the memory of	456
the device.	457

(c) It identifies a winning bingo pattern.

458

(2) "Electronic bingo aid" does not include any device into	459
which a coin, currency, token, or an equivalent is inserted to	460
activate play.	461

(UU) "Deal of instant bingo tickets" means a single game of	462
instant bingo tickets all with the same serial number.	463

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

464

(a) Any mechanical, electronic, video, or digital device that	465
is capable of accepting anything of value, directly or indirectly,	466
from or on behalf of a player who gives the thing of value in the	467
hope of gain;	468

(b) Any mechanical, electronic, video, or digital device that	469
is capable of accepting anything of value, directly or indirectly,	470
from or on behalf of a player to conduct bingo or a scheme or game	471
of chance.	472

(2) "Slot machine" does not include a skill-based amusement	473
machine or an instant bingo ticket dispenser.	474

(WW) "Net profit from the proceeds of the sale of instant	475
bingo" means gross profit minus the ordinary, necessary, and	476
reasonable expense expended for the purchase of instant bingo	477
supplies.	478

(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

(YY) "Game flare" means the board or placard that accompanies	492
each deal of instant bingo tickets and that has printed on or	493
affixed to it the following information for the game:	494

(1) The name of the game;

495

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

496

(3) The form number;

497

(4) The ticket count;

498

(5) The prize structure, including the number of winning	499
instant bingo tickets by denomination and the respective winning	500
symbol or number combinations for the winning instant bingo	501
tickets;	502

(6) The cost per play;

503

(7) The serial number of the game.

504

(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

(AAA)(1) "Skill-based amusement machine" means a mechanical,	521
video, digital, or electronic device that rewards the player or	522
players, if at all, only with merchandise prizes or with	523
redeemable vouchers redeemable only for merchandise prizes,	524
provided that with respect to rewards for playing the game all of	525
the following apply:	526

(a) The wholesale value of a merchandise prize awarded as a	527
result of the single play of a machine does not exceed ten	528
dollars;	529

(b) Redeemable vouchers awarded for any single play of a	530
machine are not redeemable for a merchandise prize with a	531
wholesale value of more than ten dollars;	532

(c) Redeemable vouchers are not redeemable for a merchandise	533
prize that has a wholesale value of more than ten dollars times	534
the fewest number of single plays necessary to accrue the	535
redeemable vouchers required to obtain that prize; and	536

(d) Any redeemable vouchers or merchandise prizes are	537
distributed at the site of the skill-based amusement machine at	538
the time of play.	539

A card for the purchase of gasoline is a redeemable voucher	540
for purposes of division (AAA)(1) of this section even if the	541
skill-based amusement machine for the play of which the card is	542
awarded is located at a place where gasoline may not be legally	543
distributed to the public or the card is not redeemable at the	544
location of, or at the time of playing, the skill-based amusement	545
machine.	546

(2) A device shall not be considered a skill-based amusement	547
machine and shall be considered a slot machine if it pays cash or	548
one or more of the following apply:	549

(a) The ability of a player to succeed at the game is	550
impacted by the number or ratio of prior wins to prior losses of	551
players playing the game.	552

(b) Any reward of redeemable vouchers is not based solely on	553
the player achieving the object of the game or the player's score;	554

(c) The outcome of the game, or the value of the redeemable	555
voucher or merchandise prize awarded for winning the game, can be	556
controlled by a source other than any player playing the game.	557

(d) The success of any player is or may be determined by a	558
chance event that cannot be altered by player actions.	559

(e) The ability of any player to succeed at the game is	560
determined by game features not visible or known to the player.	561

(f) The ability of the player to succeed at the game is	562
impacted by the exercise of a skill that no reasonable player	563
could exercise.	564

(3) All of the following apply to any machine that is	565
operated as described in division (AAA)(1) of this section:	566

(a) As used in this section, "game" and "play" mean one event	567
from the initial activation of the machine until the results of	568
play are determined without payment of additional consideration.	569
An individual utilizing a machine that involves a single game,	570
play, contest, competition, or tournament may be awarded	571
redeemable vouchers or merchandise prizes based on the results of	572
play.	573

(b) Advance play for a single game, play, contest,	574
competition, or tournament participation may be purchased. The	575
cost of the contest, competition, or tournament participation may	576
be greater than a single noncontest, competition, or tournament	577
play.	578

(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

(4) For purposes of division (AAA)(1) of this section, the	586
mere presence of a device, such as a pin-setting, ball-releasing,	587
or scoring mechanism, that does not contribute to or affect the	588
outcome of the play of the game does not make the device a	589
skill-based amusement machine.	590

(BBB) "Merchandise prize" means any item of value, but shall	591
not include any of the following:	592

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

593

(2) Plays on games of chance, state lottery tickets, bingo,	594
or instant bingo;	595

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

596

(4) A redeemable voucher that is redeemable for any of the	597
items listed in division (BBB)(1), (2), or (3) of this section.	598

(CCC) "Redeemable voucher" means any ticket, token, coupon,	599
receipt, or other noncash representation of value.	600

(DDD) "Pool not conducted for profit" means a scheme in which	601
a participant gives a valuable consideration for a chance to win a	602
prize and the total amount of consideration wagered is distributed	603
to a participant or participants.	604

(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

(FFF) "Community action agency" has the same meaning as in	612
section 122.66 of the Revised Code.	613

Sec. 3772.01. As used in this chapter:

614

(A) "Applicant" means any person who applies to the	615
commission for a license under this chapter.	616

(B) "Casino control commission fund" means the casino control	617
commission fund described in Section 6(C)(3)(d) of Article XV,	618
Ohio Constitution, the money in which shall be used to fund the	619
commission and its related affairs.	620

(C) "Casino facility" means a casino facility as defined in	621
Section 6(C)(9) of Article XV, Ohio Constitution.	622

(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

(E) "Casino gaming employee" means any employee of a casino	635
operator or management company, but not a key employee, and as	636
further defined in section 3772.131 of the Revised Code.	637

(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

(G) "Central system" means a computer system that provides	648
the following functions related to casino gaming equipment used in	649
connection with casino gaming authorized under this chapter:	650
security, auditing, data and information retrieval, and other	651
purposes deemed necessary and authorized by the commission.	652

(H) "Commission" means the Ohio casino control commission.

653

(I) "Gaming agent" means a peace officer employed by the	654
commission that is vested with duties to enforce this chapter and	655
conduct other investigations into the conduct of the casino gaming	656
and the maintenance of the equipment that the commission considers	657
necessary and proper and is in compliance with section 109.77 of	658
the Revised Code.	659

(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

(L) "Initial investment" includes costs related to	675
demolition, engineering, architecture, design, site preparation,	676
construction, infrastructure improvements, land acquisition,	677
fixtures and equipment, insurance related to construction, and	678
leasehold improvements.	679

(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

(N) "Key employee" means any executive, employee, or agent of	701
a casino operator or management company licensee having the power	702
to exercise significant influence over decisions concerning any	703
part of the operation of such licensee, including:	704

(1) An officer, director, trustee, or partner of a person	705
that has applied for or holds a casino operator, management	706
company, or gaming-related vendor license or of a holding company	707
that has control of a person that has applied for or holds a	708
casino operator, management company, or gaming-related vendor	709
license;	710

(2) A person that holds a direct or indirect ownership	711
interest of more than one per cent in a person that has applied	712
for or holds a casino operator, management company, or	713
gaming-related vendor license or holding company that has control	714
of a person that has applied for or holds a casino operator,	715
management company, or gaming-related vendor license;	716

(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

The commission shall determine whether an individual whose	727
duties or status varies from those described in this division also	728
is considered a key employee.	729

(O) "Licensed casino operator" means a casino operator that	730
has been issued a license by the commission and that has been	731
certified annually by the commission to have paid all applicable	732
fees, taxes, and debts to the state.	733

(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

(Q) "Management company" means an organization retained by a	742
casino operator to manage a casino facility and provide services	743
such as accounting, general administration, maintenance,	744
recruitment, and other operational services.	745

(R) "Ohio law enforcement training fund" means the state law	746
enforcement training fund described in Section 6(C)(3)(f) of	747
Article XV, Ohio Constitution, the money in which shall be used to	748
enhance public safety by providing additional training	749
opportunities to the law enforcement community.	750

(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

(T) "Problem casino gambling and addictions fund" means the	762
state problem gambling and addictions fund described in Section	763
6(C)(3)(g) of Article XV, Ohio Constitution, the money in which	764
shall be used for treatment of problem gambling and substance	765
abuse, and for related research.	766

(U) "Promotional gaming credit" means a slot machine or table	767
game credit, discount, or other similar item issued to a patron to	768
enable the placement of, or increase in, a wager at a slot machine	769
or table game.	770

(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

(V)(W) "Table game" means any game played with cards, dice,	780
or any mechanical, electromechanical, or electronic device or	781
machine for money, casino credit, or any representative of value.	782
"Table game" does not include slot machines.	783

(W)(X) "Upfront license" means the first plenary license	784
issued to a casino operator.	785

(X)(Y) "Voluntary exclusion program" means a program provided	786
by the commission that allows persons to voluntarily exclude	787
themselves from the gaming areas of facilities under the	788
jurisdiction of the commission by placing their name on a	789
voluntary exclusion list and following the procedures set forth by	790
the commission.	791

Sec. 3772.11. (A) A person may apply to the commission for a	792
casino operator, management company, or holding company license to	793
conduct casino gaming at a casino facility as provided in this	794
chapter. The application shall be made under oath on forms	795
provided by the commission and shall contain information as	796
prescribed by rule, including, but not limited to, all of the	797
following:	798

(1) The name, business address, business telephone number,	799
social security number, and, where applicable, the federal tax	800
identification number of any applicant;	801

(2) The identity of every person having a greater than five	802
per cent direct or indirect interest in the applicant casino	803
facility for which the license is sought for publicly traded	804
companies or greater than three per cent for privately held	805
companies;	806

(3) An identification of any business, including the state of	807
incorporation or registration if applicable, in which an	808
applicant, or the spouse or children of an applicant, has an	809
equity interest of more than five per cent;	810

(4) The name of any casino operator, management company,	811
holding company, and gaming-related vendor in which the applicant	812
has an equity interest of at least five per cent;	813

(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

(6) If an applicant has ever filed or had filed against it a	822
civil or administrative action or proceeding in bankruptcy,	823
including the date of filing, the name and location of the court,	824
the case caption, the docket number, and the disposition;	825

(7) The name and business telephone number of any attorney	826
representing an applicant in matters before the commission;	827

(8) Information concerning the amount, type of tax, the	828
taxing agency, and times involved, if the applicant has filed or	829
been served with a complaint or notice filed with a public body	830
concerning a delinquency in the payment of or a dispute over a	831
filing concerning the payment of a tax required under federal,	832
state, or local law;	833

(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

(10) Financial information in the manner and form prescribed	841
by the commission;	842

(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

(12) Any criminal conviction; and

851

(13) Other information required by the commission under rules	852
adopted by the commission.	853

(B) Any holding company or management company, its directors,	854
executive officers, members, managers, and any shareholder who	855
holds more than five per cent ownership interest of a holding	856
company or management company shall be required to submit the same	857
information as required by an applicant under this section.	858

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

(B) A licensee shall undergo a complete investigation at	868
least every three years, as determined by commission rule, to	869
determine that the licensee remains in compliance with this	870
chapter.	871

(C) Notwithstanding division (B) of this section, the	872
commission may investigate a licensee at any time the commission	873
determines it is necessary to ensure that the licensee remains in	874
compliance with this section.	875

(D) The holder of a license shall bear the cost of an	876
investigation, except key employees and casino gaming employees	877
who are employed by a casino operator, in which case the casino	878
operator shall pay the investigation cost.	879

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) Casino operators and management companies may provide	887
promotional gaming credits to their patrons. Promotional gaming	888
credits shall be subject to oversight by the commission.	889

(C) Casino operators and management companies shall not do	890
any of the following:	891

(1) Obtain a license to operate a check-cashing business	892
under sections 1315.01 to 1315.30 of the Revised Code;	893

(2) Obtain a license to provide loans under sections 1321.01	894
to 1321.19 of the Revised Code;	895

(3) Obtain a license to provide loans under sections 1321.35	896
to 1321.48 of the Revised Code.	897

Sec. 3772.27. (A) Each initial licensed casino operator of	898
each of the four casino facilities shall make an initial	899
investment of at least two hundred fifty million dollars for the	900
development of each casino facility.	901

(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

(1) Property owned by the casino operator or any of its	928
affiliates;	929

(2) Property leased by the casino operator or any of its	930
affiliates;	931

(3) Access over property under the right of the casino	932
operator or any of its affiliates, whether it be by skyways,	933
walkways, roadways, easements, or rights of way;	934

(4) Nongaming amenities.

935

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

Sec. 5751.01.  As used in this chapter:

988

(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

(B) "Consolidated elected taxpayer" means a group of two or	998
more persons treated as a single taxpayer for purposes of this	999
chapter as the result of an election made under section 5751.011	1000
of the Revised Code.	1001

(C) "Combined taxpayer" means a group of two or more persons	1002
treated as a single taxpayer for purposes of this chapter under	1003
section 5751.012 of the Revised Code.	1004

(D) "Taxpayer" means any person, or any group of persons in	1005
the case of a consolidated elected taxpayer or combined taxpayer	1006
treated as one taxpayer, required to register or pay tax under	1007
this chapter. "Taxpayer" does not include excluded persons.	1008

(E) "Excluded person" means any of the following:

1009

(1) Any person with not more than one hundred fifty thousand	1010
dollars of taxable gross receipts during the calendar year.	1011
Division (E)(1) of this section does not apply to a person that is	1012
a member of a consolidated elected taxpayer;	1013

(2) A public utility that paid the excise tax imposed by	1014
section 5727.24 or 5727.30 of the Revised Code based on one or	1015
more measurement periods that include the entire tax period under	1016
this chapter, except that a public utility that is a combined	1017
company is a taxpayer with regard to the following gross receipts:	1018

(a) Taxable gross receipts directly attributed to a public	1019
utility activity, but not directly attributed to an activity that	1020
is subject to the excise tax imposed by section 5727.24 or 5727.30	1021
of the Revised Code;	1022

(b) Taxable gross receipts that cannot be directly attributed	1023
to any activity, multiplied by a fraction whose numerator is the	1024
taxable gross receipts described in division (E)(2)(a) of this	1025
section and whose denominator is the total taxable gross receipts	1026
that can be directly attributed to any activity;	1027

(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

As used in division (E)(2) of this section, "combined	1036
company" and "public utility" have the same meanings as in section	1037
5727.01 of the Revised Code.	1038

(3) A financial institution, as defined in section 5725.01 of	1039
the Revised Code, that paid the corporation franchise tax charged	1040
by division (D) of section 5733.06 of the Revised Code based on	1041
one or more taxable years that include the entire tax period under	1042
this chapter;	1043

(4) A dealer in intangibles, as defined in section 5725.01 of	1044
the Revised Code, that paid the dealer in intangibles tax levied	1045
by division (D) of section 5707.03 of the Revised Code based on	1046
one or more measurement periods that include the entire tax period	1047
under this chapter;	1048

(5) A financial holding company as defined in the "Bank	1049
Holding Company Act," 12 U.S.C. 1841(p);	1050

(6) A bank holding company as defined in the "Bank Holding	1051
Company Act," 12 U.S.C. 1841(a);	1052

(7) A savings and loan holding company as defined in the	1053
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging	1054
only in activities or investments permissible for a financial	1055
holding company under 12 U.S.C. 1843(k);	1056

(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

For the purposes of division (E)(8) of this section, a person	1068
owns another person under the following circumstances:	1069

(a) In the case of corporations issuing capital stock, one	1070
corporation owns another corporation if it owns fifty per cent or	1071
more of the other corporation's capital stock with current voting	1072
rights;	1073

(b) In the case of a limited liability company, one person	1074
owns the company if that person's membership interest, as defined	1075
in section 1705.01 of the Revised Code, is fifty per cent or more	1076
of the combined membership interests of all persons owning such	1077
interests in the company;	1078

(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

(9) A domestic insurance company or foreign insurance	1096
company, as defined in section 5725.01 of the Revised Code, that	1097
paid the insurance company premiums tax imposed by section 5725.18	1098
or Chapter 5729. of the Revised Code based on one or more	1099
measurement periods that include the entire tax period under this	1100
chapter;	1101

(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

(12) Nonprofit organizations or the state and its agencies,	1122
instrumentalities, or political subdivisions.	1123

(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

(1) The following are examples of gross receipts:

1131

(a) Amounts realized from the sale, exchange, or other	1132
disposition of the taxpayer's property to or with another;	1133

(b) Amounts realized from the taxpayer's performance of	1134
services for another;	1135

(c) Amounts realized from another's use or possession of the	1136
taxpayer's property or capital;	1137

(d) Any combination of the foregoing amounts.

1138

(2) "Gross receipts" excludes the following amounts:

1139

(a) Interest income except interest on credit sales;

1140

(b) Dividends and distributions from corporations, and	1141
distributive or proportionate shares of receipts and income from a	1142
pass-through entity as defined under section 5733.04 of the	1143
Revised Code;	1144

(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

(d) Proceeds received attributable to the repayment,	1163
maturity, or redemption of the principal of a loan, bond, mutual	1164
fund, certificate of deposit, or marketable instrument;	1165

(e) The principal amount received under a repurchase	1166
agreement or on account of any transaction properly characterized	1167
as a loan to the person;	1168

(f) Contributions received by a trust, plan, or other	1169
arrangement, any of which is described in section 501(a) of the	1170
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter	1171
1, Subchapter (D) of the Internal Revenue Code applies;	1172

(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

(h) Proceeds received from the issuance of the taxpayer's own	1182
stock, options, warrants, puts, or calls, or from the sale of the	1183
taxpayer's treasury stock;	1184

(i) Proceeds received on the account of payments from	1185
insurance policies, except those proceeds received for the loss of	1186
business revenue;	1187

(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

(k) Damages received as the result of litigation in excess of	1195
amounts that, if received without litigation, would be gross	1196
receipts;	1197

(l) Property, money, and other amounts received or acquired	1198
by an agent on behalf of another in excess of the agent's	1199
commission, fee, or other remuneration;	1200

(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

(n) Pension reversions;

1211

(o) Contributions to capital;

1212

(p) Sales or use taxes collected as a vendor or an	1213
out-of-state seller on behalf of the taxing jurisdiction from a	1214
consumer or other taxes the taxpayer is required by law to collect	1215
directly from a purchaser and remit to a local, state, or federal	1216
tax authority;	1217

(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

(r) In the case of receipts from the sale of motor fuel by a	1225
licensed motor fuel dealer, licensed retail dealer, or licensed	1226
permissive motor fuel dealer, all as defined in section 5735.01 of	1227
the Revised Code, an amount equal to federal and state excise	1228
taxes paid by any person on such motor fuel under section 4081 of	1229
the Internal Revenue Code or Chapter 5735. of the Revised Code;	1230

(s) In the case of receipts from the sale of beer or	1231
intoxicating liquor, as defined in section 4301.01 of the Revised	1232
Code, by a person holding a permit issued under Chapter 4301. or	1233
4303. of the Revised Code, an amount equal to federal and state	1234
excise taxes paid by any person on or for such beer or	1235
intoxicating liquor under subtitle E of the Internal Revenue Code	1236
or Chapter 4301. or 4305. of the Revised Code;	1237

(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

(v) Receipts realized from administering anti-neoplastic	1253
drugs and other cancer chemotherapy, biologicals, therapeutic	1254
agents, and supportive drugs in a physician's office to patients	1255
with cancer;	1256

(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

(x) Property, money, and other amounts received by a	1267
professional employer organization, as defined in section 4125.01	1268
of the Revised Code, from a client employer, as defined in that	1269
section, in excess of the administrative fee charged by the	1270
professional employer organization to the client employer;	1271

(y) In the case of amounts retained as commissions by a	1272
permit holder under Chapter 3769. of the Revised Code, an amount	1273
equal to the amounts specified under that chapter that must be	1274
paid to or collected by the tax commissioner as a tax and the	1275
amounts specified under that chapter to be used as purse money;	1276

(z) Qualifying distribution center receipts.

1277

(i) For purposes of division (F)(2)(z) of this section:

1278

(I) "Qualifying distribution center receipts" means receipts	1279
of a supplier from qualified property that is delivered to a	1280
qualified distribution center, multiplied by a quantity that	1281
equals one minus the Ohio delivery percentage.	1282

(II) "Qualified property" means tangible personal property	1283
delivered to a qualified distribution center that is shipped to	1284
that qualified distribution center solely for further shipping by	1285
the qualified distribution center to another location in this	1286
state or elsewhere. "Further shipping" includes storing and	1287
repackaging such property into smaller or larger bundles, so long	1288
as such property is not subject to further manufacturing or	1289
processing.	1290

(III) "Qualified distribution center" means a warehouse or	1291
other similar facility in this state that, for the qualifying	1292
year, is operated by a person that is not part of a combined	1293
taxpayer group and that has a qualifying certificate. However, all	1294
warehouses or other similar facilities that are operated by	1295
persons in the same taxpayer group and that are located within one	1296
mile of each other shall be treated as one qualified distribution	1297
center.	1298

(IV) "Qualifying year" means the calendar year to which the	1299
qualifying certificate applies.	1300

(V) "Qualifying period" means the period of the first day of	1301
July of the second year preceding the qualifying year through the	1302
thirtieth day of June of the year preceding the qualifying year.	1303

(VI) "Qualifying certificate" means the certificate issued by	1304
the tax commissioner after the operator of a distribution center	1305
files an annual application with the commissioner. The application	1306
and annual fee shall be filed and paid for each qualified	1307
distribution center on or before the first day of September before	1308
the qualifying year or within forty-five days after the	1309
distribution center opens, whichever is later.	1310

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

(VII) "Ohio delivery percentage" means the proportion of the	1339
total property delivered to a destination inside Ohio from the	1340
qualified distribution center during the qualifying period	1341
compared with total deliveries from such distribution center	1342
everywhere during the qualifying period.	1343

(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

(vii) The tax commissioner may require that adequate security	1438
be posted by the operator of the distribution center on appeal	1439
when the commissioner disagrees that the applicant has met the	1440
minimum thresholds for a qualified distribution center as set	1441
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this	1442
section.	1443

(aa) Receipts of an employer from payroll deductions relating	1444
to the reimbursement of the employer for advancing moneys to an	1445
unrelated third party on an employee's behalf;	1446

(bb) Cash discounts allowed and taken;

1447

(cc) Returns and allowances;

1448

(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

(ee) Any amount realized from the sale of an account	1463
receivable to the extent the receipts from the underlying	1464
transaction giving rise to the account receivable were included in	1465
the gross receipts of the taxpayer;	1466

(ff) Any receipts for which the tax imposed by this chapter	1467
is prohibited by the Constitution or laws of the United States or	1468
the Constitution of Ohio.	1469

(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

(hh) In the case of amounts collected by a licensed casino	1486
operator from casino gaming, amounts in excess of the casino	1487
operator's gross casino revenue. In this division, "casino	1488
operator" and "casino gaming" have the meanings defined in section	1489
3772.01 of the Revised Code, and "gross casino revenue" has the	1490
meaning defined in section 5753.01 of the Revised Code.	1491

(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

(4) A taxpayer's method of accounting for gross receipts for	1500
a tax period shall be the same as the taxpayer's method of	1501
accounting for federal income tax purposes for the taxpayer's	1502
federal taxable year that includes the tax period. If a taxpayer's	1503
method of accounting for federal income tax purposes changes, its	1504
method of accounting for gross receipts under this chapter shall	1505
be changed accordingly.	1506

(G) "Taxable gross receipts" means gross receipts sitused to	1507
this state under section 5751.033 of the Revised Code.	1508

(H) A person has "substantial nexus with this state" if any	1509
of the following applies. The person:	1510

(1) Owns or uses a part or all of its capital in this state;

1511

(2) Holds a certificate of compliance with the laws of this	1512
state authorizing the person to do business in this state;	1513

(3) Has bright-line presence in this state;

1514

(4) Otherwise has nexus with this state to an extent that the	1515
person can be required to remit the tax imposed under this chapter	1516
under the Constitution of the United States.	1517

(I) A person has "bright-line presence" in this state for a	1518
reporting period and for the remaining portion of the calendar	1519
year if any of the following applies. The person:	1520

(1) Has at any time during the calendar year property in this	1521
state with an aggregate value of at least fifty thousand dollars.	1522
For the purpose of division (I)(1) of this section, owned property	1523
is valued at original cost and rented property is valued at eight	1524
times the net annual rental charge.	1525

(2) Has during the calendar year payroll in this state of at	1526
least fifty thousand dollars. Payroll in this state includes all	1527
of the following:	1528

(a) Any amount subject to withholding by the person under	1529
section 5747.06 of the Revised Code;	1530

(b) Any other amount the person pays as compensation to an	1531
individual under the supervision or control of the person for work	1532
done in this state; and	1533

(c) Any amount the person pays for services performed in this	1534
state on its behalf by another.	1535

(3) Has during the calendar year taxable gross receipts of at	1536
least five hundred thousand dollars.	1537

(4) Has at any time during the calendar year within this	1538
state at least twenty-five per cent of the person's total	1539
property, total payroll, or total gross receipts.	1540

(5) Is domiciled in this state as an individual or for	1541
corporate, commercial, or other business purposes.	1542

(J) "Tangible personal property" has the same meaning as in	1543
section 5739.01 of the Revised Code.	1544

(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

(L) "Calendar quarter" means a three-month period ending on	1553
the thirty-first day of March, the thirtieth day of June, the	1554
thirtieth day of September, or the thirty-first day of December.	1555

(M) "Tax period" means the calendar quarter or calendar year	1556
on the basis of which a taxpayer is required to pay the tax	1557
imposed under this chapter.	1558

(N) "Calendar year taxpayer" means a taxpayer for which the	1559
tax period is a calendar year.	1560

(O) "Calendar quarter taxpayer" means a taxpayer for which	1561
the tax period is a calendar quarter.	1562

(P) "Agent" means a person authorized by another person to	1563
act on its behalf to undertake a transaction for the other,	1564
including any of the following:	1565

(1) A person receiving a fee to sell financial instruments;

1566

(2) A person retaining only a commission from a transaction	1567
with the other proceeds from the transaction being remitted to	1568
another person;	1569

(3) A person issuing licenses and permits under section	1570
1533.13 of the Revised Code;	1571

(4) A lottery sales agent holding a valid license issued	1572
under section 3770.05 of the Revised Code;	1573

(5) A person acting as an agent of the division of liquor	1574
control under section 4301.17 of the Revised Code.	1575

(Q) "Received" includes amounts accrued under the accrual	1576
method of accounting.	1577

(R) "Reporting person" means a person in a consolidated	1578
elected taxpayer or combined taxpayer group that is designated by	1579
that group to legally bind the group for all filings and tax	1580
liabilities and to receive all legal notices with respect to	1581
matters under this chapter, or, for the purposes of section	1582
5751.04 of the Revised Code, a separate taxpayer that is not a	1583
member of such a group.	1584

Sec. 5753.01.  As used in Chapter 5753. of the Revised Code	1585
and for no other purpose under Title LVII of the Revised Code:	1586

(A) "Casino facility" has the same meaning as in section	1587
3772.01 of the Revised Code.	1588

(B) "Casino gaming" has the same meaning as in section	1589
3772.01 of the Revised Code.	1590

(C) "Casino operator" has the same meaning as in section	1591
3772.01 of the Revised Code.	1592

(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

(E) "Person" has the same meaning as in section 3772.01 of	1603
the Revised Code.	1604

(F) "Slot machine" has the same meaning as in section 3772.01	1605
of the Revised Code.	1606

(G) "Table game" has the same meaning as in section 3772.01	1607
of the Revised Code.	1608

(H) "Tax period" means one twenty-four-hour period with	1609
regard to which a casino operator is required to pay the tax	1610
levied by this chapter.	1611

Section 2. That existing sections 2915.01, 3772.01, 3772.11,	1612
3772.15, 3772.23, 3772.27, 3772.31, 5751.01, and 5753.01 of the	1613
Revised Code are hereby repealed.	1614

Section 3. (A) Notwithstanding sections 3769.04 and 3769.13	1615
of the Revised Code, for a period of two years after the effective	1616
date of this section, a permit holder who is eligible to become a	1617
video lottery sales agent may apply to the State Racing Commission	1618
to move its track to another location using the following approval	1619
procedure:	1620

(1) The permit holder shall submit, for the consideration of	1621
the State Racing Commission in its determination on whether to	1622
approve the transfer, its proposal to the State Racing Commission	1623
and shall specify the location of the new track and the	1624
incremental economic benefits the permit holder is willing to	1625
provide to the state.	1626

(2) The State Racing Commission shall approve or deny the	1627
transfer.	1628

(3) The permit holder may apply to the State Lottery	1629
Commission for a video lottery sales agent license at the new	1630
track location.	1631

(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

(C) The state may discuss and negotiate with parties	1643
regarding the transferring of racing permits to new track	1644
locations and may, in its discretion, enter into agreements	1645
regarding the transfer of permits to new locations in advance of	1646
the process set forth in this section.	1647

(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

(E) Chapter 2915. of the Revised Code does not apply to,	1657
affect, or prohibit lotteries or video lotteries conducted under	1658
this section and Chapter 3770. of the Revised Code. The State	1659
Racing Commission may not adopt rules regarding the operation of	1660
lotteries or video lotteries conducted under Chapter 3770. of the	1661
Revised Code.	1662

(F) The State Racing Commission may adopt rules under Chapter	1663
119. of the Revised Code to effectuate this section and to	1664
establish fees to relocate tracks for applicants under this	1665
section.	1666

(G) As used in this section:

1667

(1) "Permit holder" means a person that has been authorized	1668
by the State Racing Commission to conduct one or more horse-racing	1669
meetings under Chapter 3769. of the Revised Code.	1670

(2) "Track" means any place, track, or enclosure where a	1671
permit holder conducts live horse racing for profit at a racing	1672
meeting. "Track" includes facilities or premises contiguous or	1673
adjacent to those places, tracks, or enclosures.	1674

(3) "Video lottery sales agent" means a person who is a	1675
permit holder and holds a current license issued by the State	1676
Lottery Commission to assist the Commission in conducting video	1677
lotteries through the use of video lottery terminals at a track.	1678

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

Section 5.  The items of law contained in this act, and their	1692
applications, are severable. If any item of law contained in this	1693
act, or if any application of any item of law contained in this	1694
act, is held invalid, the invalidity does not affect other items	1695
of law contained in this act and their applications that can be	1696
given effect without the invalid item of law or application.	1697