As Passed by the Senate

129th General Assembly
Regular Session
2011-2012
Sub. H. B. No. 386


Representative Blessing 

Cosponsors: Representatives Gerberry, Combs, Letson, Barnes, Boyd, Mallory, O'Brien, Weddington, Williams, Yuko 

Senators Coley, Eklund, Niehaus, Seitz 



A BILL
To amend sections 122.014, 173.121, 718.03, 2915.01, 1
2915.02, 2915.06, 2915.08, 2915.09, 2915.091, 2
2915.092, 2915.093, 2915.094, 2915.10, 2915.101, 3
2915.12, 2923.31, 2933.51, 3301.0714, 3769.08, 4
3769.087, 3769.089, 3769.0810, 3770.02, 3770.05, 5
3770.07, 3770.071, 3770.072, 3770.073, 3770.21, 6
3772.01, 3772.03, 3772.032, 3772.04, 3772.07, 7
3772.091, 3772.10, 3772.13, 3772.16, 3772.17, 8
3772.28, 3772.99, 4301.03, 4303.17, 5703.21, 9
5747.062, 5747.063, 5747.08, 5747.12, 5747.98, and 10
5753.03, to enact sections 121.421, 3769.041, 11
3769.0812, 3770.22, 5747.064, and 5753.11, to 12
repeal section 3772.14 of the Revised Code, to 13
amend Section 3 of Sub. H.B. 277 of the 129th 14
General Assembly, and to repeal Section 4 of Sub. 15
H.B. 277 of the 129th General Assembly to make 16
changes to the law regarding video lottery 17
terminals, casino gaming, bingo and instant bingo, 18
and horse racing, to establish a moratorium on new 19
establishments conducting sweepstakes by 20
sweepstakes terminal devices, to make 21
appropriations, and to declare an emergency.22


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

       Section 1.  That sections 122.014, 173.121, 718.03, 2915.01, 23
2915.02, 2915.06, 2915.08, 2915.09, 2915.091, 2915.092, 2915.093, 24
2915.094, 2915.10, 2915.101, 2915.12, 2923.31, 2933.51, 3301.0714, 25
3769.08, 3769.087, 3769.089, 3769.0810, 3770.02, 3770.05, 3770.07, 26
3770.071, 3770.072, 3770.073, 3770.21, 3772.01, 3772.03, 3772.032, 27
3772.04, 3772.07, 3772.091, 3772.10, 3772.13, 3772.16, 3772.17, 28
3772.28, 3772.99, 4301.03, 4303.17, 5703.21, 5747.062, 5747.063, 29
5747.08, 5747.12, 5747.98, and 5753.03 be amended and sections 30
121.421, 3769.041, 3769.0812, 3770.22, 5747.064, and 5753.11 of 31
the Revised Code be enacted to read as follows: 32

       Sec. 121.421.  (A) Notwithstanding division (D)(3) of section 33
121.41 of the Revised Code, in order to determine whether wrongful 34
acts or omissions have been committed or are being committed by 35
present or former employees, the inspector general shall 36
investigate employees of the office of the attorney general who 37
are contractually vested with duties to enforce Chapter 3772. of 38
the Revised Code, including any designated bureau of criminal 39
identification and investigation support staff that are necessary 40
to fulfill the investigatory and law enforcement functions of the 41
Ohio casino control commission. The inspector general and any 42
deputy inspector general may administer oaths, examine witnesses 43
under oath, and issue subpoenas and subpoenas duces tecum to 44
employees of the office of the attorney general to compel the 45
attendance of witnesses and the production of all kinds of books, 46
records, papers, and tangible things deemed necessary in the 47
course of any such investigation.48

       (B) The inspector general may enter into any contracts that 49
are necessary to complete an investigation. The contracts may 50
include contracts for the services of persons who are experts in a 51
particular field and whose expertise is necessary for successful 52
completion of the investigation.53

       (C) If the authority of the attorney general terminates or 54
expires, the authority vested in the inspector general by this 55
section terminates upon the conclusion of ongoing investigations 56
or upon issuance of the final report of the investigations.57

       Sec. 122.014.  (A) As used in this section, "gaming 58
activities" means activities conducted in connection with or that 59
include any of the following:60

       (1) Casino gaming, as authorized and defined in Section 6(C) 61
of Article XV, Ohio Constitution;62

       (2) Casino gaming, as defined in division (D)(E) of section 63
3772.01 of the Revised Code; or64

       (3) The pari-mutuel system of wagering as authorized and 65
described in Chapter 3769. of the Revised Code.66

       (B) The department of development or any other entity that 67
administers any program or development project established under 68
Chapter 122., 166., or 184. of the Revised Code or in sections 69
149.311, 5709.87, or 5709.88 of the Revised Code shall not provide 70
any financial assistance, including loans, tax credits, and 71
grants, staffing assistance, technical support, or other 72
assistance to businesses conducting gaming activities or for 73
project sites on which gaming activities are or will be conducted.74

       Sec. 173.121.  (A) As used in this section, "bingo," "bingo 75
game operator," and "participant" have the same meanings as in 76
section 2915.01 of the Revised Code.77

       (B) Notwithstanding sections 2915.07 to 2915.13 of the 78
Revised Code, a multipurpose senior center may conduct bingo games 79
described in division (S)(O)(1) of section 2915.01 of the Revised 80
Code, but only if it complies with all of the following 81
requirements:82

       (1) All bingo games are conducted only on the premises of the 83
facility.84

       (2) All participants are sixtytwenty-one years of age or 85
older.86

       (3) All bingo game operators are sixty years of age or older 87
and receive no compensation for serving as operators.88

       (4) No participant is charged an admission fee, and no 89
participant is charged more than twenty-five cents to purchase a 90
bingo card or sheet.91

       (5) All proceeds from games are used only for any of the 92
following:93

       (a) To pay winners monetary or nonmonetary prizes;94

       (b) To provide refreshments;95

       (c) To defray any costs directly related to conducting the 96
games;97

       (d) To defray costs of services the facility provides in 98
accordance with section 173.12 of the Revised Code.99

       Sec. 718.03. (A) As used in this section:100

       (1) "Other payer" means any person, other than an 101
individual's employer or the employer's agent, that pays an 102
individual any amount included in the federal gross income of the 103
individual.104

       (2) "Qualifying wages" means wages, as defined in section 105
3121(a) of the Internal Revenue Code, without regard to any wage 106
limitations, adjusted as follows:107

        (a) Deduct the following amounts:108

       (i) Any amount included in wages if the amount constitutes 109
compensation attributable to a plan or program described in 110
section 125 of the Internal Revenue Code;111

       (ii) For purposes of division (B) of this section, any amount 112
included in wages if the amount constitutes payment on account of 113
sickness or accident disability.114

        (b) Add the following amounts:115

        (i) Any amount not included in wages solely because the 116
employee was employed by the employer prior to April 1, 1986;117

        (ii) Any amount not included in wages because the amount 118
arises from the sale, exchange, or other disposition of a stock 119
option, the exercise of a stock option, or the sale, exchange, or 120
other disposition of stock purchased under a stock option and the 121
municipal corporation has not, by resolution or ordinance, 122
exempted the amount from withholding and tax. Division 123
(A)(2)(b)(ii) of this section applies only to those amounts 124
constituting ordinary income.125

        (iii) Any amount not included in wages if the amount is an 126
amount described in section 401(k) or 457 of the Internal Revenue 127
Code. Division (A)(2)(b)(iii) of this section applies only to 128
employee contributions and employee deferrals.129

        (iv) Any amount that is supplemental unemployment 130
compensation benefits described in section 3402(o)(2) of the 131
Internal Revenue Code and not included in wages.132

        (c) Deduct any amount attributable to a nonqualified deferred 133
compensation plan or program described in section 3121(v)(2)(C) of 134
the Internal Revenue Code if the compensation is included in wages 135
and has, by resolution or ordinance, been exempted from taxation 136
by the municipal corporation.137

        (d) Deduct any amount included in wages if the amount arises 138
from the sale, exchange, or other disposition of a stock option, 139
the exercise of a stock option, or the sale, exchange, or other 140
disposition of stock purchased under a stock option and the 141
municipal corporation has, by resolution or ordinance, exempted 142
the amount from withholding and tax.143

        (B) ForExcept as provided in division (F) of this section, 144
for taxable years beginning after 2003, no municipal corporation 145
shall require any employer or any agent of any employer or any 146
other payer, to withhold tax with respect to any amount other than 147
qualifying wages. Nothing in this section prohibits an employer 148
from withholding tax on a basis greater than qualifying wages.149

       (C) An employer is not required to make any withholding with 150
respect to an individual's disqualifying disposition of an 151
incentive stock option if, at the time of the disqualifying 152
disposition, the individual is not an employee of the corporation 153
with respect to whose stock the option has been issued.154

        (D)(1) An employee is not relieved from liability for a tax 155
by the failure of the employer to withhold the tax as required by 156
a municipal corporation or by the employer's exemption from the 157
requirement to withhold the tax.158

       (2) The failure of an employer to remit to the municipal 159
corporation the tax withheld relieves the employee from liability 160
for that tax unless the employee colluded with the employer in 161
connection with the failure to remit the tax withheld.162

       (E) Compensation deferred before June 26, 2003, is not 163
subject to any municipal corporation income tax or municipal 164
income tax withholding requirement to the extent the deferred 165
compensation does not constitute qualifying wages at the time the 166
deferred compensation is paid or distributed.167

       (F) A municipal corporation may require a casino facility or 168
a casino operator, as defined in Section 6(C)(9) of Article XV, 169
Ohio Constitution, and section 3772.01 of the Revised Code, 170
respectively, or a lottery sales agent conducting video lottery 171
terminals on behalf of the state to withhold and remit tax with 172
respect to amounts other than qualifying wages.173

       Sec. 2915.01.  As used in this chapter:174

       (A) "Bookmaking" means the business of receiving or paying 175
off bets.176

       (B) "Bet" means the hazarding of anything of value upon the 177
result of an event, undertaking, or contingency, but does not 178
include a bona fide business risk.179

       (C) "Scheme of chance" means a slot machine, lottery, numbers 180
game, pool conducted for profit, or other scheme in which a 181
participant gives a valuable consideration for a chance to win a 182
prize, but does not include bingo, a skill-based amusement 183
machine, or a pool not conducted for profit.184

       (D) "Game of chance" means poker, craps, roulette, or other 185
game in which a player gives anything of value in the hope of 186
gain, the outcome of which is determined largely by chance, but 187
does not include bingo.188

       (E) "Game of chance conducted for profit" means any game of 189
chance designed to produce income for the person who conducts or 190
operates the game of chance, but does not include bingo.191

       (F) "Gambling device" means any of the following:192

       (1) A book, totalizer, or other equipment for recording bets;193

       (2) A ticket, token, or other device representing a chance, 194
share, or interest in a scheme of chance or evidencing a bet;195

       (3) A deck of cards, dice, gaming table, roulette wheel, slot 196
machine, or other apparatus designed for use in connection with a 197
game of chance;198

       (4) Any equipment, device, apparatus, or paraphernalia 199
specially designed for gambling purposes;200

       (5) Bingo supplies sold or otherwise provided, or used, in 201
violation of this chapter.202

       (G) "Gambling offense" means any of the following:203

       (1) A violation of section 2915.02, 2915.03, 2915.04, 204
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09, 205
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;206

       (2) A violation of an existing or former municipal ordinance 207
or law of this or any other state or the United States 208
substantially equivalent to any section listed in division (G)(1) 209
of this section or a violation of section 2915.06 of the Revised 210
Code as it existed prior to July 1, 1996;211

       (3) An offense under an existing or former municipal 212
ordinance or law of this or any other state or the United States, 213
of which gambling is an element;214

       (4) A conspiracy or attempt to commit, or complicity in 215
committing, any offense under division (G)(1), (2), or (3) of this 216
section.217

       (H) Except as otherwise provided in this chapter, "charitable 218
organization" means any tax exempt religious, educational, 219
veteran's, fraternal, sporting, service, nonprofit medical, 220
volunteer rescue service, volunteer firefighter's, senior 221
citizen's, historic railroad educational, youth athletic, amateur 222
athletic, or youth athletic park organization. An organization is 223
tax exempt if the organization iseither of the following:224

       (1) An organization that is, and has received from the 225
internal revenue service a determination letter that currently is 226
in effect stating that the organization is, exempt from federal 227
income taxation under subsection 501(a) and described in 228
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 229
501(c)(19) of the Internal Revenue Code, or if the organization is 230
a;231

       (2) A volunteer rescue service organization, volunteer 232
firefighter's organization, veteran's organization, fraternal 233
organization, or sporting organization that is exempt from federal 234
income taxation under subsection 501(a) and is described in235
subsection 501(c)(4), (c)(7), (c)(8), (c)(10), or (c)(19) of the 236
Internal Revenue Code. To237

        To qualify as a "charitable organization," an organization, 238
except a volunteer rescue service or volunteer firefighter's 239
organization, shall have been in continuous existence as such in 240
this state for a period of two years immediately preceding either 241
the making of an application for a bingo license under section 242
2915.08 of the Revised Code or the conducting of any game of 243
chance as provided in division (D) of section 2915.02 of the 244
Revised Code. A charitable organization that is exempt from 245
federal income taxation under subsection 501(a) and described in 246
subsection 501(c)(3) of the Internal Revenue Code and that is 247
created by a veteran's organization, a fraternal organization, or 248
a sporting organization does not have to have been in continuous 249
existence as such in this state for a period of two years 250
immediately preceding either the making of an application for a 251
bingo license under section 2915.08 of the Revised Code or the 252
conducting of any game of chance as provided in division (D) of 253
section 2915.02 of the Revised Code.254

       (I) "Religious organization" means any church, body of 255
communicants, or group that is not organized or operated for 256
profit and that gathers in common membership for regular worship 257
and religious observances.258

       (J) "Educational organization" means any organization within 259
this state that is not organized for profit, the primary purpose 260
of which is to educate and develop the capabilities of individuals 261
through instruction by means of operating or contributing to the 262
support of a school, academy, college, or university.263

       (K) "Veteran's organization" means any individual post or 264
state headquarters of a national veteran's association or an 265
auxiliary unit of any individual post of a national veteran's 266
association, which post, state headquarters, or auxiliary unit is 267
incorporated as a nonprofit corporation and either has received a 268
letter from the state headquarters of the national veteran's 269
association indicating that the individual post or auxiliary unit 270
is in good standing with the national veteran's association or has 271
received a letter from the national veteran's association 272
indicating that the state headquarters is in good standing with 273
the national veteran's association. As used in this division, 274
"national veteran's association" means any veteran's association 275
that has been in continuous existence as such for a period of at 276
least five years and either is incorporated by an act of the 277
United States congress or has a national dues-paying membership of 278
at least five thousand persons.279

       (L)(K) "Volunteer firefighter's organization" means any 280
organization of volunteer firefighters, as defined in section 281
146.01 of the Revised Code, that is organized and operated 282
exclusively to provide financial support for a volunteer fire 283
department or a volunteer fire company and that is recognized or 284
ratified by a county, municipal corporation, or township.285

       (M)(L) "Fraternal organization" means any society, order, 286
state headquarters, or association within this state, except a 287
college or high school fraternity, that is not organized for 288
profit, that is a branch, lodge, or chapter of a national or state 289
organization, that exists exclusively for the common business or 290
sodality of its members.291

       (N)(M) "Volunteer rescue service organization" means any 292
organization of volunteers organized to function as an emergency 293
medical service organization, as defined in section 4765.01 of the 294
Revised Code.295

       (O) "Service organization" means either of the following:296

       (1) Any organization, not organized for profit, that is 297
organized and operated exclusively to provide, or to contribute to 298
the support of organizations or institutions organized and 299
operated exclusively to provide, medical and therapeutic services 300
for persons who are crippled, born with birth defects, or have any 301
other mental or physical defect or those organized and operated 302
exclusively to protect, or to contribute to the support of 303
organizations or institutions organized and operated exclusively 304
to protect, animals from inhumane treatment or provide immediate 305
shelter to victims of domestic violence;306

       (2) Any organization that is described in subsection 307
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code 308
and is either a governmental unit or an organization that is tax 309
exempt under subsection 501(a) and described in subsection 310
501(c)(3) of the Internal Revenue Code and that is an 311
organization, not organized for profit, that is organized and 312
operated primarily to provide, or to contribute to the support of 313
organizations or institutions organized and operated primarily to 314
provide, medical and therapeutic services for persons who are 315
crippled, born with birth defects, or have any other mental or 316
physical defect.317

       (P) "Nonprofit medical organization" means either of the 318
following:319

       (1) Any organization that has been incorporated as a 320
nonprofit corporation for at least five years and that has 321
continuously operated and will be operated exclusively to provide, 322
or to contribute to the support of organizations or institutions 323
organized and operated exclusively to provide, hospital, medical, 324
research, or therapeutic services for the public;325

       (2) Any organization that is described and qualified under 326
subsection 501(c)(3) of the Internal Revenue Code, that has been 327
incorporated as a nonprofit corporation for at least five years, 328
and that has continuously operated and will be operated primarily 329
to provide, or to contribute to the support of organizations or 330
institutions organized and operated primarily to provide, 331
hospital, medical, research, or therapeutic services for the 332
public.333

       (Q) "Senior citizen's organization" means any private 334
organization, not organized for profit, that is organized and 335
operated exclusively to provide recreational or social services 336
for persons who are fifty-five years of age or older and that is 337
described and qualified under subsection 501(c)(3) of the Internal 338
Revenue Code.339

       (R)(N) "Charitable bingo game" means any bingo game described 340
in division (S)(O)(1) or (2) of this section that is conducted by 341
a charitable organization that has obtained a license pursuant to 342
section 2915.08 of the Revised Code and the proceeds of which are 343
used for a charitable purpose.344

       (S)(O) "Bingo" means either of the following:345

       (1) A game with all of the following characteristics:346

       (a) The participants use bingo cards or sheets, including 347
paper formats and electronic representation or image formats, that 348
are divided into twenty-five spaces arranged in five horizontal 349
and five vertical rows of spaces, with each space, except the 350
central space, being designated by a combination of a letter and a 351
number and with the central space being designated as a free 352
space.353

       (b) The participants cover the spaces on the bingo cards or 354
sheets that correspond to combinations of letters and numbers that 355
are announced by a bingo game operator.356

       (c) A bingo game operator announces combinations of letters 357
and numbers that appear on objects that a bingo game operator 358
selects by chance, either manually or mechanically, from a 359
receptacle that contains seventy-five objects at the beginning of 360
each game, each object marked by a different combination of a 361
letter and a number that corresponds to one of the seventy-five 362
possible combinations of a letter and a number that can appear on 363
the bingo cards or sheets.364

       (d) The winner of the bingo game includes any participant who 365
properly announces during the interval between the announcements 366
of letters and numbers as described in division (S)(O)(1)(c) of 367
this section, that a predetermined and preannounced pattern of 368
spaces has been covered on a bingo card or sheet being used by the 369
participant.370

       (2) Instant bingo, punch boards, and raffles.371

       (T)(P) "Conduct" means to back, promote, organize, manage, 372
carry on, sponsor, or prepare for the operation of bingo or a game 373
of chance.374

       (U)(Q) "Bingo game operator" means any person, except 375
security personnel, who performs work or labor at the site of 376
bingo, including, but not limited to, collecting money from 377
participants, handing out bingo cards or sheets or objects to 378
cover spaces on bingo cards or sheets, selecting from a receptacle 379
the objects that contain the combination of letters and numbers 380
that appear on bingo cards or sheets, calling out the combinations 381
of letters and numbers, distributing prizes, selling or redeeming 382
instant bingo tickets or cards, supervising the operation of a 383
punch board, selling raffle tickets, selecting raffle tickets from 384
a receptacle and announcing the winning numbers in a raffle, and 385
preparing, selling, and serving food or beverages.386

       (V)(R) "Participant" means any person who plays bingo.387

       (W)(S) "Bingo session" means a period that includes both of 388
the following:389

       (1) Not to exceed five continuous hours for the conduct of 390
one or more games described in division (S)(O)(1) of this section, 391
instant bingo, and seal cards;392

       (2) A period for the conduct of instant bingo and seal cards 393
for not more than two hours before and not more than two hours 394
after the period described in division (W)(S)(1) of this section.395

       (X)(T) "Gross receipts" means all money or assets, including 396
admission fees, that a person receives from bingo without the 397
deduction of any amounts for prizes paid out or for the expenses 398
of conducting bingo. "Gross receipts" does not include any money 399
directly taken in from the sale of food or beverages by a 400
charitable organization conducting bingo, or by a bona fide 401
auxiliary unit or society of a charitable organization conducting 402
bingo, provided all of the following apply:403

       (1) The auxiliary unit or society has been in existence as a 404
bona fide auxiliary unit or society of the charitable organization 405
for at least two years prior to conducting bingo.406

       (2) The person who purchases the food or beverage receives 407
nothing of value except the food or beverage and items customarily 408
received with the purchase of that food or beverage.409

       (3) The food and beverages are sold at customary and 410
reasonable prices.411

       (Y)(U) "Security personnel" includes any person who either is 412
a sheriff, deputy sheriff, marshal, deputy marshal, township 413
constable, or member of an organized police department of a 414
municipal corporation or has successfully completed a peace 415
officer's training course pursuant to sections 109.71 to 109.79 of 416
the Revised Code and who is hired to provide security for the 417
premises on which bingo is conducted.418

       (Z)(V) "Charitable purpose" means that the net profit of 419
bingo, other than instant bingo, is used by, or is given, donated, 420
or otherwise transferred to, any of the following:421

       (1) Any organization that is described in subsection 422
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code 423
and is either a governmental unit or an organization that is tax 424
exempt under subsection 501(a) and described in subsection 425
501(c)(3) of the Internal Revenue Code;426

       (2) A veteran's organization that is a post, chapter, or 427
organization of veterans, or an auxiliary unit or society of, or a 428
trust or foundation for, any such post, chapter, or organization 429
organized in the United States or any of its possessions, at least 430
seventy-five per cent of the members of which are veterans and 431
substantially all of the other members of which are individuals 432
who are spouses, widows, or widowers of veterans, or such 433
individuals, provided that no part of the net earnings of such 434
post, chapter, or organization inures to the benefit of any 435
private shareholder or individual, and further provided that the 436
net profit is used by the post, chapter, or organization for the 437
charitable purposes set forth in division (B)(12) of section 438
5739.02 of the Revised Code, is used for awarding scholarships to 439
or for attendance at an institution mentioned in division (B)(12) 440
of section 5739.02 of the Revised Code, is donated to a 441
governmental agency, or is used for nonprofit youth activities, 442
the purchase of United States or Ohio flags that are donated to 443
schools, youth groups, or other bona fide nonprofit organizations, 444
promotion of patriotism, or disaster relief;445

       (3) A fraternal organization that has been in continuous 446
existence in this state for fifteen years and that uses the net 447
profit exclusively for religious, charitable, scientific, 448
literary, or educational purposes, or for the prevention of 449
cruelty to children or animals, if contributions for such use 450
would qualify as a deductible charitable contribution under 451
subsection 170 of the Internal Revenue Code;452

       (4) A volunteer firefighter's organization that uses the net 453
profit for the purposes set forth in division (L)(K) of this 454
section.455

       (AA)(W) "Internal Revenue Code" means the "Internal Revenue 456
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter 457
amended.458

       (BB)(X) "Youth athletic organization" means any organization, 459
not organized for profit, that is organized and operated 460
exclusively to provide financial support to, or to operate, 461
athletic activities for persons who are twenty-one years of age or 462
younger by means of sponsoring, organizing, operating, or 463
contributing to the support of an athletic team, club, league, or 464
association.465

       (CC)(Y) "Youth athletic park organization" means any 466
organization, not organized for profit, that satisfies both of the 467
following:468

       (1) It owns, operates, and maintains playing fields that 469
satisfy both of the following:470

       (a) The playing fields are used at least one hundred days per 471
year for athletic activities by one or more organizations, not 472
organized for profit, each of which is organized and operated 473
exclusively to provide financial support to, or to operate, 474
athletic activities for persons who are eighteen years of age or 475
younger by means of sponsoring, organizing, operating, or 476
contributing to the support of an athletic team, club, league, or 477
association.478

       (b) The playing fields are not used for any profit-making 479
activity at any time during the year.480

       (2) It uses the proceeds of bingo it conducts exclusively for 481
the operation, maintenance, and improvement of its playing fields 482
of the type described in division (CC)(Y)(1) of this section.483

       (DD) "Amateur athletic organization" means any organization, 484
not organized for profit, that is organized and operated 485
exclusively to provide financial support to, or to operate, 486
athletic activities for persons who are training for amateur 487
athletic competition that is sanctioned by a national governing 488
body as defined in the "Amateur Sports Act of 1978," 90 Stat. 489
3045, 36 U.S.C.A. 373.490

       (EE)(Z) "Bingo supplies" means bingo cards or sheets; instant 491
bingo tickets or cards; electronic bingo aids; raffle tickets; 492
punch boards; seal cards; instant bingo ticket dispensers; and 493
devices for selecting or displaying the combination of bingo 494
letters and numbers or raffle tickets. Items that are "bingo 495
supplies" are not gambling devices if sold or otherwise provided, 496
and used, in accordance with this chapter. For purposes of this 497
chapter, "bingo supplies" are not to be considered equipment used 498
to conduct a bingo game.499

       (FF)(AA) "Instant bingo" means a form of bingo that uses500
shall use folded or banded tickets or paper cards with perforated 501
break-open tabs, a face of which is covered or otherwise hidden 502
from view to conceal a number, letter, or symbol, or set of 503
numbers, letters, or symbols, some of which have been designated 504
in advance as prize winners. "Instant bingo" includes seal cards, 505
and may also include games in which some winners are determined by 506
the random selection of one or more bingo numbers by the use of a 507
seal card or bingo blower. In all "instant bingo" the prize amount 508
and structure shall be predetermined. "Instant bingo" does not 509
include any device that is activated by the insertion of a coin, 510
currency, token, or an equivalent, and that contains as one of its 511
components a video display monitor that is capable of displaying 512
numbers, letters, symbols, or characters in winning or losing 513
combinations.514

       (GG)(BB) "Seal card" means a form of instant bingo that uses 515
instant bingo tickets in conjunction with a board or placard that 516
contains one or more seals that, when removed or opened, reveal 517
predesignated winning numbers, letters, or symbols.518

       (HH)(CC) "Raffle" means a form of bingo in which the one or 519
more prizes are won by one or more persons who have purchased a 520
raffle ticket. The one or more winners of the raffle are 521
determined by drawing a ticket stub or other detachable section 522
from a receptacle containing ticket stubs or detachable sections 523
corresponding to all tickets sold for the raffle. "Raffle" does 524
not include the drawing of a ticket stub or other detachable 525
section of a ticket purchased to attend a professional sporting 526
event if both of the following apply:527

        (1) The ticket stub or other detachable section is used to 528
select the winner of a free prize given away at the professional 529
sporting event; and530

       (2) The cost of the ticket is the same as the cost of a 531
ticket to the professional sporting event on days when no free 532
prize is given away.533

       (II)(DD) "Punch board" means a board containing a number of 534
holes or receptacles of uniform size in which are placed, 535
mechanically and randomly, serially numbered slips of paper that 536
may be punched or drawn from the hole or receptacle when used in 537
conjunction with instant bingo. A player may punch or draw the 538
numbered slips of paper from the holes or receptacles and obtain 539
the prize established for the game if the number drawn corresponds 540
to a winning number or, if the punch board includes the use of a 541
seal card, a potential winning number.542

       (JJ)(EE) "Gross profit" means gross receipts minus the amount 543
actually expended for the payment of prize awards.544

       (KK)(FF) "Net profit" means gross profit minus expenses.545

       (LL)(GG) "Expenses" means the reasonable amount of gross 546
profit actually expended for all of the following:547

       (1) The purchase or lease of bingo supplies;548

       (2) The annual license fee required under section 2915.08 of 549
the Revised Code;550

       (3) Bank fees and service charges for a bingo session or game 551
account described in section 2915.10 of the Revised Code;552

       (4) Audits and accounting services;553

       (5) Safes;554

       (6) Cash registers;555

       (7) Hiring security personnel;556

       (8) Advertising bingo;557

       (9) Renting premises in which to conduct a bingo session;558

       (10) Tables and chairs;559

       (11) Expenses for maintaining and operating a charitable 560
organization's facilities, including, but not limited to, a post 561
home, club house, lounge, tavern, or canteen and any grounds 562
attached to the post home, club house, lounge, tavern, or canteen;563

       (12) Payment of real property taxes and assessments that are 564
levied on a premises on which bingo is conducted;565

       (13) Any other product or service directly related to the 566
conduct of bingo that is authorized in rules adopted by the 567
attorney general under division (B)(1) of section 2915.08 of the 568
Revised Code.569

       (MM)(HH) "Person" has the same meaning as in section 1.59 of 570
the Revised Code and includes any firm or any other legal entity, 571
however organized.572

       (NN)(II) "Revoke" means to void permanently all rights and 573
privileges of the holder of a license issued under section 574
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable 575
gaming license issued by another jurisdiction.576

       (OO)(JJ) "Suspend" means to interrupt temporarily all rights 577
and privileges of the holder of a license issued under section 578
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable 579
gaming license issued by another jurisdiction.580

       (PP)(KK) "Distributor" means any person who purchases or 581
obtains bingo supplies and who does either of the following:582

       (1) Sells, offers for sale, or otherwise provides or offers 583
to provide the bingo supplies to another person for use in this 584
state;585

       (2) Modifies, converts, adds to, or removes parts from the 586
bingo supplies to further their promotion or sale for use in this 587
state.588

       (QQ)(LL) "Manufacturer" means any person who assembles 589
completed bingo supplies from raw materials, other items, or 590
subparts or who modifies, converts, adds to, or removes parts from 591
bingo supplies to further their promotion or sale.592

       (RR)(MM) "Gross annual revenues" means the annual gross 593
receipts derived from the conduct of bingo described in division 594
(S)(O)(1) of this section plus the annual net profit derived from 595
the conduct of bingo described in division (S)(O)(2) of this 596
section.597

       (SS)(NN) "Instant bingo ticket dispenser" means a mechanical 598
device that dispenses an instant bingo ticket or card as the sole 599
item of value dispensed and that has the following 600
characteristics:601

        (1) It is activated upon the insertion of United States 602
currency.603

        (2) It performs no gaming functions.604

        (3) It does not contain a video display monitor or generate 605
noise.606

        (4) It is not capable of displaying any numbers, letters, 607
symbols, or characters in winning or losing combinations.608

       (5) It does not simulate or display rolling or spinning 609
reels.610

        (6) It is incapable of determining whether a dispensed bingo 611
ticket or card is a winning or nonwinning ticket or card and 612
requires a winning ticket or card to be paid by a bingo game 613
operator.614

        (7) It may provide accounting and security features to aid in 615
accounting for the instant bingo tickets or cards it dispenses.616

       (8) It is not part of an electronic network and is not 617
interactive.618

       (TT)(OO)(1) "Electronic bingo aid" means an electronic device 619
used by a participant to monitor bingo cards or sheets purchased 620
at the time and place of a bingo session and that does all of the 621
following:622

        (a) It provides a means for a participant to input numbers 623
and letters announced by a bingo caller.624

        (b) It compares the numbers and letters entered by the 625
participant to the bingo faces previously stored in the memory of 626
the device.627

        (c) It identifies a winning bingo pattern.628

        (2) "Electronic bingo aid" does not include any device into 629
which a coin, currency, token, or an equivalent is inserted to 630
activate play.631

       (UU)(PP) "Deal of instant bingo tickets" means a single game 632
of instant bingo tickets all with the same serial number.633

       (VV)(QQ)(1) "Slot machine" means either of the following:634

       (a) Any mechanical, electronic, video, or digital device that 635
is capable of accepting anything of value, directly or indirectly, 636
from or on behalf of a player who gives the thing of value in the 637
hope of gain; 638

        (b) Any mechanical, electronic, video, or digital device that 639
is capable of accepting anything of value, directly or indirectly, 640
from or on behalf of a player to conduct bingo or a scheme or game 641
of chance.642

       (2) "Slot machine" does not include a skill-based amusement 643
machine or an instant bingo ticket dispenser.644

       (WW)(RR) "Net profit from the proceeds of the sale of instant 645
bingo" means gross profit minus the ordinary, necessary, and 646
reasonable expense expended for the purchase of instant bingo 647
supplies, and, in the case of instant bingo conducted by a 648
veteran's, fraternal, or sporting organization, minus the payment 649
by that organization of real property taxes and assessments levied 650
on a premises on which instant bingo is conducted.651

       (XX)(SS) "Charitable instant bingo organization" means an 652
organization that is exempt from federal income taxation under 653
subsection 501(a) and described in subsection 501(c)(3) of the 654
Internal Revenue Code and is a charitable organization as defined 655
in this section. A "charitable instant bingo organization" does 656
not include a charitable organization that is exempt from federal 657
income taxation under subsection 501(a) and described in 658
subsection 501(c)(3) of the Internal Revenue Code and that is 659
created by a veteran's organization, a fraternal organization, or 660
a sporting organization in regards to bingo conducted or assisted 661
by a veteran's organization, a fraternal organization, or a 662
sporting organization pursuant to section 2915.13 of the Revised 663
Code.664

       (YY)(TT) "Game flare" means the board or placard that 665
accompanies each deal of instant bingo tickets and that has 666
printed on or affixed to it the following information for the 667
game:668

       (1) The name of the game;669

       (2) The manufacturer's name or distinctive logo;670

       (3) The form number;671

       (4) The ticket count;672

       (5) The prize structure, including the number of winning 673
instant bingo tickets by denomination and the respective winning 674
symbol or number combinations for the winning instant bingo 675
tickets;676

       (6) The cost per play;677

       (7) The serial number of the game.678

       (ZZ) "Historic railroad educational organization" means an 679
organization that is exempt from federal income taxation under 680
subsection 501(a) and described in subsection 501(c)(3) of the 681
Internal Revenue Code, that owns in fee simple the tracks and the 682
right-of-way of a historic railroad that the organization restores 683
or maintains and on which the organization provides excursions as 684
part of a program to promote tourism and educate visitors 685
regarding the role of railroad transportation in Ohio history, and 686
that received as donations from a charitable organization that 687
holds a license to conduct bingo under this chapter an amount 688
equal to at least fifty per cent of that licensed charitable 689
organization's net proceeds from the conduct of bingo during each 690
of the five years preceding June 30, 2003. "Historic railroad" 691
means all or a portion of the tracks and right-of-way of a 692
railroad that was owned and operated by a for-profit common 693
carrier in this state at any time prior to January 1, 1950.694

       (AAA)(UU)(1) "Skill-based amusement machine" means a 695
mechanical, video, digital, or electronic device that rewards the 696
player or players, if at all, only with merchandise prizes or with 697
redeemable vouchers redeemable only for merchandise prizes, 698
provided that with respect to rewards for playing the game all of 699
the following apply:700

       (a) The wholesale value of a merchandise prize awarded as a 701
result of the single play of a machine does not exceed ten 702
dollars;703

       (b) Redeemable vouchers awarded for any single play of a 704
machine are not redeemable for a merchandise prize with a 705
wholesale value of more than ten dollars;706

       (c) Redeemable vouchers are not redeemable for a merchandise 707
prize that has a wholesale value of more than ten dollars times 708
the fewest number of single plays necessary to accrue the 709
redeemable vouchers required to obtain that prize; and710

       (d) Any redeemable vouchers or merchandise prizes are 711
distributed at the site of the skill-based amusement machine at 712
the time of play.713

       A card for the purchase of gasoline is a redeemable voucher 714
for purposes of division (AAA)(UU)(1) of this section even if the 715
skill-based amusement machine for the play of which the card is 716
awarded is located at a place where gasoline may not be legally 717
distributed to the public or the card is not redeemable at the 718
location of, or at the time of playing, the skill-based amusement 719
machine.720

       (2) A device shall not be considered a skill-based amusement 721
machine and shall be considered a slot machine if it pays cash or 722
one or more of the following apply:723

       (a) The ability of a player to succeed at the game is 724
impacted by the number or ratio of prior wins to prior losses of 725
players playing the game.726

       (b) Any reward of redeemable vouchers is not based solely on 727
the player achieving the object of the game or the player's score;728

       (c) The outcome of the game, or the value of the redeemable 729
voucher or merchandise prize awarded for winning the game, can be 730
controlled by a source other than any player playing the game.731

       (d) The success of any player is or may be determined by a 732
chance event that cannot be altered by player actions.733

       (e) The ability of any player to succeed at the game is 734
determined by game features not visible or known to the player.735

       (f) The ability of the player to succeed at the game is 736
impacted by the exercise of a skill that no reasonable player 737
could exercise.738

       (3) All of the following apply to any machine that is 739
operated as described in division (AAA)(UU)(1) of this section:740

       (a) As used in division (UU) of this section, "game" and 741
"play" mean one event from the initial activation of the machine 742
until the results of play are determined without payment of 743
additional consideration. An individual utilizing a machine that 744
involves a single game, play, contest, competition, or tournament 745
may be awarded redeemable vouchers or merchandise prizes based on 746
the results of play.747

       (b) Advance play for a single game, play, contest, 748
competition, or tournament participation may be purchased. The 749
cost of the contest, competition, or tournament participation may 750
be greater than a single noncontest, competition, or tournament 751
play.752

       (c) To the extent that the machine is used in a contest, 753
competition, or tournament, that contest, competition, or 754
tournament has a defined starting and ending date and is open to 755
participants in competition for scoring and ranking results toward 756
the awarding of redeemable vouchers or merchandise prizes that are 757
stated prior to the start of the contest, competition, or 758
tournament. 759

       (4) For purposes of division (AAA)(UU)(1) of this section, 760
the mere presence of a device, such as a pin-setting, 761
ball-releasing, or scoring mechanism, that does not contribute to 762
or affect the outcome of the play of the game does not make the 763
device a skill-based amusement machine.764

       (BBB)(VV) "Merchandise prize" means any item of value, but 765
shall not include any of the following:766

       (1) Cash, gift cards, or any equivalent thereof;767

       (2) Plays on games of chance, state lottery tickets, bingo, 768
or instant bingo;769

       (3) Firearms, tobacco, or alcoholic beverages; or770

       (4) A redeemable voucher that is redeemable for any of the 771
items listed in division (BBB)(VV)(1), (2), or (3) of this 772
section.773

       (CCC)(WW) "Redeemable voucher" means any ticket, token, 774
coupon, receipt, or other noncash representation of value.775

       (DDD)(XX) "Pool not conducted for profit" means a scheme in 776
which a participant gives a valuable consideration for a chance to 777
win a prize and the total amount of consideration wagered is 778
distributed to a participant or participants.779

       (EEE)(YY) "Sporting organization" means a hunting, fishing, 780
or trapping organization, other than a college or high school 781
fraternity or sorority, that is not organized for profit, that is 782
affiliated with a state or national sporting organization, 783
including but not limited to, the Ohio league of Ohio sportsmen, 784
and that has been in continuous existence in this state for a 785
period of three years.786

       (FFF)(ZZ) "Community action agency" has the same meaning as 787
in section 122.66 of the Revised Code.788

       Sec. 2915.02.  (A) No person shall do any of the following:789

       (1) Engage in bookmaking, or knowingly engage in conduct that 790
facilitates bookmaking;791

       (2) Establish, promote, or operate or knowingly engage in 792
conduct that facilitates any game of chance conducted for profit 793
or any scheme of chance;794

       (3) Knowingly procure, transmit, exchange, or engage in 795
conduct that facilitates the procurement, transmission, or 796
exchange of information for use in establishing odds or 797
determining winners in connection with bookmaking or with any game 798
of chance conducted for profit or any scheme of chance;799

       (4) Engage in betting or in playing any scheme or game of 800
chance as a substantial source of income or livelihood;801

       (5) With purpose to violate division (A)(1), (2), (3), or (4) 802
of this section, acquire, possess, control, or operate any 803
gambling device.804

       (B) For purposes of division (A)(1) of this section, a person 805
facilitates bookmaking if the person in any way knowingly aids an 806
illegal bookmaking operation, including, without limitation, 807
placing a bet with a person engaged in or facilitating illegal 808
bookmaking. For purposes of division (A)(2) of this section, a 809
person facilitates a game of chance conducted for profit or a 810
scheme of chance if the person in any way knowingly aids in the 811
conduct or operation of any such game or scheme, including, 812
without limitation, playing any such game or scheme.813

       (C) This section does not prohibit conduct in connection with 814
gambling expressly permitted by law.815

       (D) This section does not apply to any of the following:816

       (1) Games of chance, if all of the following apply:817

       (a) The games of chance are not craps for money or roulette 818
for money.819

       (b) The games of chance are conducted by a charitable 820
organization that is, and has received from the internal revenue 821
service a determination letter that is currently in effect, 822
stating that the organization is, exempt from federal income 823
taxation under subsection 501(a) and described in subsection 824
501(c)(3) of the Internal Revenue Code.825

       (c) The games of chance are conducted at festivals of the 826
charitable organization that are conducted either for a period of 827
four consecutive days or less and not more than twice a year or 828
for a period ofa total of five consecutive days not more than 829
once a calendar year, and are conducted on premises owned by the 830
charitable organization for a period of no less than one year 831
immediately preceding the conducting of the games of chance, on 832
premises leased from a governmental unit, or on premises that are 833
leased from a veteran's or fraternal organization and that have 834
been owned by the lessor veteran's or fraternal organization for a 835
period of no less than one year immediately preceding the 836
conducting of the games of chance.837

       A charitable organization shall not lease premises from a 838
veteran's or fraternal organization to conduct a festival 839
described in division (D)(1)(c) of this section if the veteran's 840
or fraternal organization already has leased the premises twelve 841
times during the preceding year to charitable organizations for 842
that purpose. If a charitable organization leases premises from a 843
veteran's or fraternal organization to conduct a festival 844
described in division (D)(1)(c) of this section, the charitable 845
organization shall not pay a rental rate for the premises per day 846
of the festival that exceeds the rental rate per bingo session 847
that a charitable organization may pay under division (B)(1) of 848
section 2915.09 of the Revised Code when it leases premises from 849
another charitable organization to conduct bingo games.850

       (d) All of the money or assets received from the games of 851
chance after deduction only of prizes paid out during the conduct 852
of the games of chance are used by, or given, donated, or 853
otherwise transferred to, any organization that is described in 854
subsection 509(a)(1), 509(a)(2), or 509(a)(3) of the Internal 855
Revenue Code and is either a governmental unit or an organization 856
that is tax exempt under subsection 501(a) and described in 857
subsection 501(c)(3) of the Internal Revenue Code;858

       (e) The games of chance are not conducted during, or within 859
ten hours of, a bingo game conducted for amusement purposes only 860
pursuant to section 2915.12 of the Revised Code.861

       No person shall receive any commission, wage, salary, reward, 862
tip, donation, gratuity, or other form of compensation, directly 863
or indirectly, for operating or assisting in the operation of any 864
game of chance.865

       (2) Any tag fishing tournament operated under a permit issued 866
under section 1533.92 of the Revised Code, as "tag fishing 867
tournament" is defined in section 1531.01 of the Revised Code;868

       (3) Bingo conducted by a charitable organization that holds a 869
license issued under section 2915.08 of the Revised Code.870

       (E) Division (D) of this section shall not be construed to 871
authorize the sale, lease, or other temporary or permanent 872
transfer of the right to conduct games of chance, as granted by 873
that division, by any charitable organization that is granted that 874
right.875

       (F) Whoever violates this section is guilty of gambling, a 876
misdemeanor of the first degree. If the offender previously has 877
been convicted of any gambling offense, gambling is a felony of 878
the fifth degree.879

       Sec. 2915.06. (A) No person shall give to another person any 880
item described in division (BBB)(VV)(1), (2), (3), or (4) of 881
section 2915.01 of the Revised Code in exchange for a noncash 882
prize, toy, or novelty received as a reward for playing or 883
operating a skill-based amusement machine or for a free or 884
reduced-price game won on a skill-based amusement machine.885

        (B) Whoever violates division (A) of this section is guilty 886
of skill-based amusement machine prohibited conduct. A violation 887
of division (A) of this section is a misdemeanor of the first 888
degree for each redemption of a prize that is involved in the 889
violation. If the offender previously has been convicted of a 890
violation of division (A) of this section, a violation of that 891
division is a felony of the fifth degree for each redemption of a 892
prize that is involved in the violation. The maximum fine 893
authorized to be imposed for a felony of the fifth degree shall be 894
imposed upon the offender.895

       Sec. 2915.08.  (A)(1) Annually before the first day of 896
January, a charitable organization that desires to conduct bingo, 897
instant bingo at a bingo session, or instant bingo other than at a 898
bingo session shall make out, upon a form to be furnished by the 899
attorney general for that purpose, an application for a license to 900
conduct bingo, instant bingo at a bingo session, or instant bingo 901
other than at a bingo session and deliver that application to the 902
attorney general together with a license fee as follows:903

       (a) Except as otherwise provided in this division, for a 904
license for the conduct of bingo, two hundred dollars;905

        (b) For a license for the conduct of instant bingo at a bingo 906
session or instant bingo other than at a bingo session for a 907
charitable organization that previously has not been licensed 908
under this chapter to conduct instant bingo at a bingo session or 909
instant bingo other than at a bingo session, a license fee of five 910
hundred dollars, and for any other charitable organization, a 911
license fee that is based upon the gross profits received by the 912
charitable organization from the operation of instant bingo at a 913
bingo session or instant bingo other than at a bingo session, 914
during the one-year period ending on the thirty-first day of 915
October of the year immediately preceding the year for which the 916
license is sought, and that is one of the following:917

       (i) Five hundred dollars, if the total is fifty thousand 918
dollars or less;919

       (ii) One thousand two hundred fifty dollars plus one-fourth 920
per cent of the gross profit, if the total is more than fifty 921
thousand dollars but less than two hundred fifty thousand one 922
dollars;923

       (iii) Two thousand two hundred fifty dollars plus one-half 924
per cent of the gross profit, if the total is more than two 925
hundred fifty thousand dollars but less than five hundred thousand 926
one dollars;927

       (iv) Three thousand five hundred dollars plus one per cent of 928
the gross profit, if the total is more than five hundred thousand 929
dollars but less than one million one dollars;930

       (v) Five thousand dollars plus one per cent of the gross 931
profit, if the total is one million one dollars or more;932

       (c) A reduced license fee established by the attorney general 933
pursuant to division (G) of this section.934

       (d) For a license to conduct bingo for a charitable 935
organization that prior to the effective date of this amendment936
July 1, 2003, has not been licensed under this chapter to conduct 937
bingo, instant bingo at a bingo session, or instant bingo other 938
than at a bingo session, a license fee established by rule by the 939
attorney general in accordance with division (H) of this section.940

       (2) The application shall be in the form prescribed by the 941
attorney general, shall be signed and sworn to by the applicant, 942
and shall contain all of the following:943

       (a) The name and post-office address of the applicant;944

       (b) A statement that the applicant is a charitable 945
organization and that it has been in continuous existence as a 946
charitable organization in this state for two years immediately 947
preceding the making of the application or for five years in the 948
case of a fraternal organization or a nonprofit medical 949
organization;950

       (c) The location at which the organization will conduct 951
bingo, which location shall be within the county in which the 952
principal place of business of the applicant is located, the days 953
of the week and the times on each of those days when bingo will be 954
conducted, whether the organization owns, leases, or subleases the 955
premises, and a copy of the rental agreement if it leases or 956
subleases the premises;957

       (d) A statement of the applicant's previous history, record, 958
and association that is sufficient to establish that the applicant 959
is a charitable organization, and a copy of a determination letter 960
that is issued by the Internal Revenue Service and states that the 961
organization is tax exempt under subsection 501(a) and described 962
in subsection 501(c)(3), 501(c)(4), 501(c)(7), 501(c)(8), 963
501(c)(10), or 501(c)(19) of the Internal Revenue Code;964

       (e) A statement as to whether the applicant has ever had any 965
previous application refused, whether it previously has had a 966
license revoked or suspended, and the reason stated by the 967
attorney general for the refusal, revocation, or suspension;968

       (f) A statement of the charitable purposes for which the net 969
profit derived from bingo, other than instant bingo, will be used, 970
and a statement of how the net profit derived from instant bingo 971
will be distributed in accordance with section 2915.101 of the 972
Revised Code;973

       (g) Other necessary and reasonable information that the 974
attorney general may require by rule adopted pursuant to section 975
111.15 of the Revised Code;976

       (h) If the applicant is a charitable trust as defined in 977
section 109.23 of the Revised Code, a statement as to whether it 978
has registered with the attorney general pursuant to section 979
109.26 of the Revised Code or filed annual reports pursuant to 980
section 109.31 of the Revised Code, and, if it is not required to 981
do either, the exemption in section 109.26 or 109.31 of the 982
Revised Code that applies to it;983

       (i) If the applicant is a charitable organization as defined 984
in section 1716.01 of the Revised Code, a statement as to whether 985
it has filed with the attorney general a registration statement 986
pursuant to section 1716.02 of the Revised Code and a financial 987
report pursuant to section 1716.04 of the Revised Code, and, if it 988
is not required to do both, the exemption in section 1716.03 of 989
the Revised Code that applies to it;990

       (j) In the case of an applicant seeking to qualify as a youth 991
athletic park organization, a statement issued by a board or body 992
vested with authority under Chapter 755. of the Revised Code for 993
the supervision and maintenance of recreation facilities in the 994
territory in which the organization is located, certifying that 995
the playing fields owned by the organization were used for at 996
least one hundred days during the year in which the statement is 997
issued, and were open for use to all residents of that territory, 998
regardless of race, color, creed, religion, sex, or national 999
origin, for athletic activities by youth athletic organizations 1000
that do not discriminate on the basis of race, color, creed, 1001
religion, sex, or national origin, and that the fields were not 1002
used for any profit-making activity at any time during the year. 1003
That type of board or body is authorized to issue the statement 1004
upon request and shall issue the statement if it finds that the 1005
applicant's playing fields were so used.1006

       (3) The attorney general, within thirty days after receiving 1007
a timely filed application from a charitable organization that has 1008
been issued a license under this section that has not expired and 1009
has not been revoked or suspended, shall send a temporary permit 1010
to the applicant specifying the date on which the application was 1011
filed with the attorney general and stating that, pursuant to 1012
section 119.06 of the Revised Code, the applicant may continue to 1013
conduct bingo until a new license is granted or, if the 1014
application is rejected, until fifteen days after notice of the 1015
rejection is mailed to the applicant. The temporary permit does 1016
not affect the validity of the applicant's application and does 1017
not grant any rights to the applicant except those rights 1018
specifically granted in section 119.06 of the Revised Code. The 1019
issuance of a temporary permit by the attorney general pursuant to 1020
this division does not prohibit the attorney general from 1021
rejecting the applicant's application because of acts that the 1022
applicant committed, or actions that the applicant failed to take, 1023
before or after the issuance of the temporary permit.1024

       (4) Within thirty days after receiving an initial license 1025
application from a charitable organization to conduct bingo, 1026
instant bingo at a bingo session, or instant bingo other than at a 1027
bingo session, the attorney general shall conduct a preliminary 1028
review of the application and notify the applicant regarding any 1029
deficiencies. Once an application is deemed complete, or beginning 1030
on the thirtieth day after the application is filed, if the 1031
attorney general failed to notify the applicant of any 1032
deficiencies, the attorney general shall have an additional sixty 1033
days to conduct an investigation and either grant or deny the 1034
application based on findings established and communicated in 1035
accordance with divisions (B) and (E) of this section. As an 1036
option to granting or denying an initial license application, the 1037
attorney general may grant a temporary license and request 1038
additional time to conduct the investigation if the attorney 1039
general has cause to believe that additional time is necessary to 1040
complete the investigation and has notified the applicant in 1041
writing about the specific concerns raised during the 1042
investigation.1043

       (B)(1) The attorney general shall adopt rules to enforce 1044
sections 2915.01, 2915.02, and 2915.07 to 2915.13 of the Revised 1045
Code to ensure that bingo or instant bingo is conducted in 1046
accordance with those sections and to maintain proper control over 1047
the conduct of bingo or instant bingo. The rules, except rules 1048
adopted pursuant to divisions (A)(2)(g) and (G) of this section, 1049
shall be adopted pursuant to Chapter 119. of the Revised Code. The 1050
attorney general shall license charitable organizations to conduct 1051
bingo, instant bingo at a bingo session, or instant bingo other 1052
than at a bingo session in conformance with this chapter and with 1053
the licensing provisions of Chapter 119. of the Revised Code.1054

       (2) The attorney general may refuse to grant a license to any 1055
organization, or revoke or suspend the license of any 1056
organization, that does any of the following or to which any of 1057
the following applies:1058

       (a) Fails or has failed at any time to meet any requirement 1059
of section 109.26, 109.31, or 1716.02, or sections 2915.07 to 1060
2915.11 of the Revised Code, or violates or has violated any 1061
provision of sections 2915.02 or 2915.07 to 2915.13 of the Revised 1062
Code or any rule adopted by the attorney general pursuant to this 1063
section;1064

       (b) Makes or has made an incorrect or false statement that is 1065
material to the granting of the license in an application filed 1066
pursuant to division (A) of this section;1067

       (c) Submits or has submitted any incorrect or false 1068
information relating to an application if the information is 1069
material to the granting of the license;1070

       (d) Maintains or has maintained any incorrect or false 1071
information that is material to the granting of the license in the 1072
records required to be kept pursuant to divisions (A) and (C) of 1073
section 2915.10 of the Revised Code, if applicable;1074

       (e) The attorney general has good cause to believe that the 1075
organization will not conduct bingo, instant bingo at a bingo 1076
session, or instant bingo other than at a bingo session in 1077
accordance with sections 2915.07 to 2915.13 of the Revised Code or 1078
with any rule adopted by the attorney general pursuant to this 1079
section.1080

       (3) For the purposes of division (B) of this section, any 1081
action of an officer, trustee, agent, representative, or bingo 1082
game operator of an organization is an action of the organization.1083

       (C) The attorney general may grant licenses to charitable 1084
organizations that are branches, lodges, or chapters of national 1085
charitable organizations.1086

       (D) The attorney general shall send notice in writing to the 1087
prosecuting attorney and sheriff of the county in which the 1088
organization will conduct bingo, instant bingo at a bingo session, 1089
or instant bingo other than at a bingo session, as stated in its 1090
application for a license or amended license, and to any other law 1091
enforcement agency in that county that so requests, of all of the 1092
following:1093

       (1) The issuance of the license;1094

       (2) The issuance of the amended license;1095

       (3) The rejection of an application for and refusal to grant 1096
a license;1097

       (4) The revocation of any license previously issued;1098

       (5) The suspension of any license previously issued.1099

       (E) A license issued by the attorney general shall set forth 1100
the information contained on the application of the charitable 1101
organization that the attorney general determines is relevant, 1102
including, but not limited to, the location at which the 1103
organization will conduct bingo, instant bingo at a bingo session, 1104
or instant bingo other than at a bingo session and the days of the 1105
week and the times on each of those days when bingo will be 1106
conducted. If the attorney general refuses to grant or revokes or 1107
suspends a license, the attorney general shall notify the 1108
applicant in writing and specifically identify the reason for the 1109
refusal, revocation, or suspension in narrative form and, if 1110
applicable, by identifying the section of the Revised Code 1111
violated. The failure of the attorney general to give the written 1112
notice of the reasons for the refusal, revocation, or suspension 1113
or a mistake in the written notice does not affect the validity of 1114
the attorney general's refusal to grant, or the revocation or 1115
suspension of, a license. If the attorney general fails to give 1116
the written notice or if there is a mistake in the written notice, 1117
the applicant may bring an action to compel the attorney general 1118
to comply with this division or to correct the mistake, but the 1119
attorney general's order refusing to grant, or revoking or 1120
suspending, a license shall not be enjoined during the pendency of 1121
the action.1122

       (F) A charitable organization that has been issued a license 1123
pursuant to division (B) of this section but that cannot conduct 1124
bingo or instant bingo at the location, or on the day of the week 1125
or at the time, specified on the license due to circumstances that 1126
make it impractical to do so may apply in writing, together with 1127
an application fee of two hundred fifty dollars, to the attorney 1128
general, at least thirty days prior to a change in location, day 1129
of the week, or time, and request an amended license. The 1130
application shall describe the causes making it impractical for 1131
the organization to conduct bingo or instant bingo in conformity 1132
with its license and shall indicate the location, days of the 1133
week, and times on each of those days when it desires to conduct 1134
bingo or instant bingo. Except as otherwise provided in this 1135
division, the attorney general shall issue the amended license in 1136
accordance with division (E) of this section, and the organization 1137
shall surrender its original license to the attorney general. The 1138
attorney general may refuse to grant an amended license according 1139
to the terms of division (B) of this section.1140

       (G) The attorney general, by rule adopted pursuant to section 1141
111.15 of the Revised Code, shall establish a schedule of reduced 1142
license fees for charitable organizations that desire to conduct 1143
bingo or instant bingo during fewer than twenty-six weeks in any 1144
calendar year.1145

       (H) The attorney general, by rule adopted pursuant to section 1146
111.15 of the Revised Code, shall establish license fees for the 1147
conduct of bingo, instant bingo at a bingo session, or instant 1148
bingo other than at a bingo session for charitable organizations 1149
that prior to the effective date of this amendmentJuly 1, 2003,1150
have not been licensed to conduct bingo, instant bingo at a bingo 1151
session, or instant bingo other than at a bingo session under this 1152
chapter.1153

       (I) The attorney general may enter into a written contract 1154
with any other state agency to delegate to that state agency the 1155
powers prescribed to the attorney general under Chapter 2915. of 1156
the Revised Code.1157

        (J) The attorney general, by rule adopted pursuant to section 1158
111.15 of the Revised Code, may adopt rules to determine the 1159
requirements for a charitable organization that is exempt from 1160
federal income taxation under subsection 501(a) and described in 1161
subsection 501(c)(3) of the Internal Revenue Code to be in good 1162
standing in the state.1163

       Sec. 2915.09.  (A) No charitable organization that conducts 1164
bingo shall fail to do any of the following:1165

       (1) Own all of the equipment used to conduct bingo or lease 1166
that equipment from a charitable organization that is licensed to 1167
conduct bingo, or from the landlord of a premises where bingo is 1168
conducted, for a rental rate that is not more than is customary 1169
and reasonable for that equipment;1170

       (2) Except as otherwise provided in division (A)(3) of this 1171
section, use all of the gross receipts from bingo for paying 1172
prizes, for reimbursement of expenses for or for renting premises 1173
in which to conduct a bingo session, for reimbursement of expenses 1174
for or for purchasing or leasing bingo supplies used in conducting 1175
bingo, for reimbursement of expenses for or for hiring security 1176
personnel, for reimbursement of expenses for or for advertising 1177
bingo, or for reimbursement of other expenses or for other 1178
expenses listed in division (LL)(GG) of section 2915.01 of the 1179
Revised Code, provided that the amount of the receipts so spent is 1180
not more than is customary and reasonable for a similar purchase, 1181
lease, hiring, advertising, or expense. If the building in which 1182
bingo is conducted is owned by the charitable organization 1183
conducting bingo and the bingo conducted includes a form of bingo 1184
described in division (S)(O)(1) of section 2915.01 of the Revised 1185
Code, the charitable organization may deduct from the total amount 1186
of the gross receipts from each session a sum equal to the lesser 1187
of six hundred dollars or forty-five per cent of the gross 1188
receipts from the bingo described in that division as 1189
consideration for the use of the premises.1190

       (3) Use, or give, donate, or otherwise transfer, all of the 1191
net profit derived from bingo, other than instant bingo, for a 1192
charitable purpose listed in its license application and described 1193
in division (Z)(V) of section 2915.01 of the Revised Code, or 1194
distribute all of the net profit from the proceeds of the sale of 1195
instant bingo as stated in its license application and in 1196
accordance with section 2915.101 of the Revised Code.1197

       (B) No charitable organization that conducts a bingo game 1198
described in division (S)(O)(1) of section 2915.01 of the Revised 1199
Code shall fail to do any of the following:1200

       (1) Conduct the bingo game on premises that are owned by the 1201
charitable organization, on premises that are owned by another 1202
charitable organization and leased from that charitable 1203
organization for a rental rate not in excess of the lesser of six 1204
hundred dollars per bingo session or forty-five per cent of the 1205
gross receipts of the bingo session, on premises that are leased 1206
from a person other than a charitable organization for a rental 1207
rate that is not more than is customary and reasonable for 1208
premises that are similar in location, size, and quality but not 1209
in excess of four hundred fifty dollars per bingo session, or on 1210
premises that are owned by a person other than a charitable 1211
organization, that are leased from that person by another 1212
charitable organization, and that are subleased from that other 1213
charitable organization by the charitable organization for a 1214
rental rate not in excess of four hundred fifty dollars per bingo 1215
session. No charitable organization is required to pay property 1216
taxes or assessments on premises that the charitable organization 1217
leases from another person to conduct bingo sessions. If the 1218
charitable organization leases from a person other than a 1219
charitable organization the premises on which it conducts bingo 1220
sessions, the lessor of the premises shall provide the premises to 1221
the organization and shall not provide the organization with bingo 1222
game operators, security personnel, concessions or concession 1223
operators, bingo supplies, or any other type of service. A 1224
charitable organization shall not lease or sublease premises that 1225
it owns or leases to more than onethree other charitable 1226
organizationorganizations per calendar week for the purpose of1227
conducting bingo sessions on the premises. A person that is not a 1228
charitable organization shall not lease premises that it owns, 1229
leases, or otherwise is empowered to lease to more than three 1230
charitable organizations per calendar week for conducting bingo 1231
sessions on the premises. In no case shall more than nine bingo 1232
sessions be conducted on any premises in any calendar week.1233

       (2) Display its license conspicuously at the premises where 1234
the bingo session is conducted;1235

       (3) Conduct the bingo session in accordance with the 1236
definition of bingo set forth in division (S)(O)(1) of section 1237
2915.01 of the Revised Code.1238

        (C) No charitable organization that conducts a bingo game 1239
described in division (S)(O)(1) of section 2915.01 of the Revised 1240
Code shall do any of the following:1241

       (1) Pay any compensation to a bingo game operator for 1242
operating a bingo session that is conducted by the charitable 1243
organization or for preparing, selling, or serving food or 1244
beverages at the site of the bingo session, permit any auxiliary 1245
unit or society of the charitable organization to pay compensation 1246
to any bingo game operator who prepares, sells, or serves food or 1247
beverages at a bingo session conducted by the charitable 1248
organization, or permit any auxiliary unit or society of the 1249
charitable organization to prepare, sell, or serve food or 1250
beverages at a bingo session conducted by the charitable 1251
organization, if the auxiliary unit or society pays any 1252
compensation to the bingo game operators who prepare, sell, or 1253
serve the food or beverages;1254

       (2) Pay consulting fees to any person for any services 1255
performed in relation to the bingo session;1256

       (3) Pay concession fees to any person who provides 1257
refreshments to the participants in the bingo session;1258

       (4) Except as otherwise provided in division (C)(4) of this 1259
section, conduct more than three bingo sessions in any seven-day 1260
period. A volunteer firefighter's organization or a volunteer 1261
rescue service organization that conducts not more than five bingo 1262
sessions in a calendar year may conduct more than three bingo 1263
sessions in a seven-day period after notifying the attorney 1264
general when it will conduct the sessions.1265

       (5) Pay out more than six thousand dollars in prizes for 1266
bingo games described in division (S)(O)(1) of section 2915.01 of 1267
the Revised Code during any bingo session that is conducted by the 1268
charitable organization. "Prizes" does not include awards from the 1269
conduct of instant bingo.1270

       (6) Conduct a bingo session at any time during the ten-hour1271
eight-hour period between midnighttwo a.m. and ten a.m., at any 1272
time during, or within ten hours of, a bingo game conducted for 1273
amusement only pursuant to section 2915.12 of the Revised Code, at 1274
any premises not specified on its license, or on any day of the 1275
week or during any time period not specified on its license. 1276
Division (A)(6) of this section does not prohibit the sale of 1277
instant bingo tickets beginning at nine a.m. for a bingo session 1278
that begins at ten a.m. If circumstances make it impractical for 1279
the charitable organization to conduct a bingo session at the 1280
premises, or on the day of the week or at the time, specified on 1281
its license, or if a charitable organization wants to conduct 1282
bingo sessions on a day of the week or at a time other than the 1283
day or time specified on its license, the charitable organization 1284
may apply in writing to the attorney general for an amended 1285
license pursuant to division (F) of section 2915.08 of the Revised 1286
Code. A charitable organization may apply twice in each calendar 1287
year for an amended license to conduct bingo sessions on a day of 1288
the week or at a time other than the day or time specified on its 1289
license. If the amended license is granted, the organization may 1290
conduct bingo sessions at the premises, on the day of the week, 1291
and at the time specified on its amended license.1292

       (7) Permit any person whom the charitable organization knows, 1293
or should have known, is under the age of eighteen to work as a 1294
bingo game operator;1295

       (8) Permit any person whom the charitable organization knows, 1296
or should have known, has been convicted of a felony or gambling 1297
offense in any jurisdiction to be a bingo game operator;1298

       (9) Permit the lessor of the premises on which the bingo 1299
session is conducted, if the lessor is not a charitable 1300
organization, to provide the charitable organization with bingo 1301
game operators, security personnel, concessions, bingo supplies, 1302
or any other type of service;1303

       (10) Purchase or lease bingo supplies from any person except 1304
a distributor issued a license under section 2915.081 of the 1305
Revised Code;1306

       (11)(a) Use or permit the use of electronic bingo aids except 1307
under the following circumstances:1308

        (i) For any single participant, not more than ninety bingo 1309
faces can be played using an electronic bingo aid or aids.1310

        (ii) The charitable organization shall provide a participant 1311
using an electronic bingo aid with corresponding paper bingo cards 1312
or sheets.1313

        (iii) The total price of bingo faces played with an 1314
electronic bingo aid shall be equal to the total price of the same 1315
number of bingo faces played with a paper bingo card or sheet sold 1316
at the same bingo session but without an electronic bingo aid.1317

       (iv) An electronic bingo aid cannot be part of an electronic 1318
network other than a network that includes only bingo aids and 1319
devices that are located on the premises at which the bingo is 1320
being conducted or be interactive with any device not located on 1321
the premises at which the bingo is being conducted.1322

        (v) An electronic bingo aid cannot be used to participate in 1323
bingo that is conducted at a location other than the location at 1324
which the bingo session is conducted and at which the electronic 1325
bingo aid is used.1326

        (vi) An electronic bingo aid cannot be used to provide for 1327
the input of numbers and letters announced by a bingo caller other 1328
than the bingo caller who physically calls the numbers and letters 1329
at the location at which the bingo session is conducted and at 1330
which the electronic bingo aid is used.1331

        (b) The attorney general may adopt rules in accordance with 1332
Chapter 119. of the Revised Code that govern the use of electronic 1333
bingo aids. The rules may include a requirement that an electronic 1334
bingo aid be capable of being audited by the attorney general to 1335
verify the number of bingo cards or sheets played during each 1336
bingo session.1337

       (12) Permit any person the charitable organization knows, or 1338
should have known, to be under eighteen years of age to play bingo 1339
described in division (S)(O)(1) of section 2915.01 of the Revised 1340
Code.1341

        (D)(1) Except as otherwise provided in division (D)(3) of 1342
this section, no charitable organization shall provide to a bingo 1343
game operator, and no bingo game operator shall receive or accept, 1344
any commission, wage, salary, reward, tip, donation, gratuity, or 1345
other form of compensation, directly or indirectly, regardless of 1346
the source, for conducting bingo or providing other work or labor 1347
at the site of bingo during a bingo session. 1348

       (2) Except as otherwise provided in division (D)(3) of this 1349
section, no charitable organization shall provide to a bingo game 1350
operator any commission, wage, salary, reward, tip, donation, 1351
gratuity, or other form of compensation, directly or indirectly, 1352
regardless of the source, for conducting instant bingo other than 1353
at a bingo session at the site of instant bingo other than at a 1354
bingo session.1355

       (3) Nothing in division (D) of this section prohibits an 1356
employee of a fraternal organization, veteran's organization, or 1357
sporting organization from selling instant bingo tickets or cards 1358
to the organization's members or invited guests, as long as no 1359
portion of the employee's compensation is paid from any receipts 1360
of bingo.1361

       (E) Notwithstanding division (B)(1) of this section, a 1362
charitable organization that, prior to December 6, 1977, has 1363
entered into written agreements for the lease of premises it owns 1364
to another charitable organization or other charitable 1365
organizations for the conducting of bingo sessions so that more 1366
than two bingo sessions are conducted per calendar week on the 1367
premises, and a person that is not a charitable organization and 1368
that, prior to December 6, 1977, has entered into written 1369
agreements for the lease of premises it owns to charitable 1370
organizations for the conducting of more than two bingo sessions 1371
per calendar week on the premises, may continue to lease the 1372
premises to those charitable organizations, provided that no more 1373
than four sessions are conducted per calendar week, that the 1374
lessor organization or person has notified the attorney general in 1375
writing of the organizations that will conduct the sessions and 1376
the days of the week and the times of the day on which the 1377
sessions will be conducted, that the initial lease entered into 1378
with each organization that will conduct the sessions was filed 1379
with the attorney general prior to December 6, 1977, and that each 1380
organization that will conduct the sessions was issued a license 1381
to conduct bingo games by the attorney general prior to December 1382
6, 1977.1383

       (F) This section does not prohibit a bingo licensed 1384
charitable organization or a game operator from giving any person 1385
an instant bingo ticket as a prize.1386

       (G) Whoever violates division (A)(2) of this section is 1387
guilty of illegally conducting a bingo game, a felony of the 1388
fourth degree. Except as otherwise provided in this division, 1389
whoever violates division (A)(1) or (3), (B)(1), (2), or (3), 1390
(C)(1) to (12), or (D) of this section is guilty of a minor 1391
misdemeanor. If the offender previously has been convicted of a 1392
violation of division (A)(1) or (3), (B)(1), (2), or (3), (C)(1) 1393
to (11), or (D) of this section, a violation of division (A)(1) or 1394
(3), (B)(1), (2), or (3), (C), or (D) of this section is a 1395
misdemeanor of the first degree. Whoever violates division (C)(12) 1396
of this section is guilty of a misdemeanor of the first degree, if 1397
the offender previously has been convicted of a violation of 1398
division (C)(12) of this section, a felony of the fourth degree.1399

       Sec. 2915.091.  (A) No charitable organization that conducts 1400
instant bingo shall do any of the following:1401

       (1) Fail to comply with the requirements of divisions (A)(1), 1402
(2), and (3) of section 2915.09 of the Revised Code;1403

       (2) Conduct instant bingo unless either of the following 1404
applies:1405

       (a) That organization is, and has received from the internal 1406
revenue service a determination letter that is currently in effect 1407
stating that the organization is, exempt from federal income 1408
taxation under subsection 501(a), is described in subsection 1409
501(c)(3) of the Internal Revenue Code, is a charitable 1410
organization as defined in section 2915.01 of the Revised Code, is 1411
in good standing in the state pursuant to section 2915.08 of the 1412
Revised Code, and is in compliance with Chapter 1716. of the 1413
Revised Code;1414

       (b) That organization is, and has received from the internal 1415
revenue service a determination letter that is currently in effect 1416
stating that the organization is, exempt from federal income 1417
taxation under subsection 501(a), is described in subsection 1418
501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) or is a veteran's 1419
organization described in subsection 501(c)(4) of the Internal 1420
Revenue Code, and conducts instant bingo under section 2915.13 of 1421
the Revised Code.1422

       (3) Conduct instant bingo on any day, at any time, or at any 1423
premises not specified on the organization's license issued 1424
pursuant to section 2915.08 of the Revised Code;1425

       (4) Permit any person whom the organization knows or should 1426
have known has been convicted of a felony or gambling offense in 1427
any jurisdiction to be a bingo game operator in the conduct of 1428
instant bingo;1429

       (5) Purchase or lease supplies used to conduct instant bingo 1430
or punch board games from any person except a distributor licensed 1431
under section 2915.081 of the Revised Code;1432

       (6) Sell or provide any instant bingo ticket or card for a 1433
price different from the price printed on it by the manufacturer 1434
on either the instant bingo ticket or card or on the game flare;1435

       (7) Sell an instant bingo ticket or card to a person under 1436
eighteen years of age;1437

       (8) Fail to keep unsold instant bingo tickets or cards for 1438
less than three years;1439

       (9) Pay any compensation to a bingo game operator for 1440
conducting instant bingo that is conducted by the organization or 1441
for preparing, selling, or serving food or beverages at the site 1442
of the instant bingo game, permit any auxiliary unit or society of 1443
the organization to pay compensation to any bingo game operator 1444
who prepares, sells, or serves food or beverages at an instant 1445
bingo game conducted by the organization, or permit any auxiliary 1446
unit or society of the organization to prepare, sell, or serve 1447
food or beverages at an instant bingo game conducted by the 1448
organization, if the auxiliary unit or society pays any 1449
compensation to the bingo game operators who prepare, sell, or 1450
serve the food or beverages;1451

       (10) Pay fees to any person for any services performed in 1452
relation to an instant bingo game, except as provided in division 1453
(D) of section 2915.093 of the Revised Code;1454

       (11) Pay fees to any person who provides refreshments to the 1455
participants in an instant bingo game;1456

        (12)(a) Allow instant bingo tickets or cards to be sold to 1457
bingo game operators at a premises at which the organization sells 1458
instant bingo tickets or cards or to be sold to employees of a D 1459
permit holder who are working at a premises at which instant bingo 1460
tickets or cards are sold;1461

       (b) Division (A)(12)(a) of this section does not prohibit a 1462
licensed charitable organization or a bingo game operator from 1463
giving any person an instant bingo ticket as a prize in place of a 1464
cash prize won by a participant in an instant bingo game. In no 1465
case shall an instant bingo ticket or card be sold or provided for 1466
a price different from the price printed on it by the manufacturer 1467
on either the instant bingo ticket or card or on the game flare.1468

       (13) Fail to display its bingo license, and the serial 1469
numbers of the deal of instant bingo tickets or cards to be sold, 1470
conspicuously at each premises at which it sells instant bingo 1471
tickets or cards;1472

        (14) Possess a deal of instant bingo tickets or cards that 1473
was not purchased from a distributor licensed under section 1474
2915.081 of the Revised Code as reflected on an invoice issued by 1475
the distributor that contains all of the information required by 1476
division (E) of section 2915.10 of the Revised Code;1477

        (15) Fail, once it opens a deal of instant bingo tickets or 1478
cards, to continue to sell the tickets or cards in that deal until 1479
the tickets or cards with the top two highest tiers of prizes in 1480
that deal are sold;1481

        (16) Possess bingo supplies that were not obtained in 1482
accordance with sections 2915.01 to 2915.13 of the Revised Code.1483

       (B)(1) A charitable organization may conduct instant bingo 1484
other than at a bingo session at not more than five separate 1485
locations. A charitable organization that is exempt from federal 1486
taxation under subsection 501(a) and described in subsection 1487
501(c)(3) of the Internal Revenue Code and that is created by a 1488
veteran's organization or a fraternal organization is not limited 1489
in the number of separate locations the charitable organization 1490
may conduct instant bingo other than at a bingo session.1491

       (2) A charitable organization may purchase, lease, or use 1492
instant bingo ticket dispensers to sell instant bingo tickets or 1493
cards.1494

        (C) The attorney general may adopt rules in accordance with 1495
Chapter 119. of the Revised Code that govern the conduct of 1496
instant bingo by charitable organizations. Before those rules are 1497
adopted, the attorney general shall reference the recommended 1498
standards for opacity, randomization, minimum information, winner 1499
protection, color, and cutting for instant bingo tickets or cards, 1500
seal cards, and punch boards established by the North American 1501
gaming regulators association.1502

       (D) Whoever violates division (A) of this section or a rule 1503
adopted under division (C) of this section is guilty of illegal 1504
instant bingo conduct. Except as otherwise provided in this 1505
division, illegal instant bingo conduct is a misdemeanor of the 1506
first degree. If the offender previously has been convicted of a 1507
violation of division (A) of this section or of such a rule, 1508
illegal instant bingo conduct is a felony of the fifth degree.1509

       Sec. 2915.092.  (A)(1) Subject to division (A)(2) of this 1510
section, a charitable organization, a public school, a chartered 1511
nonpublic school, a community school, or a veteran's organization, 1512
fraternal organization, or sporting organization that is exempt 1513
from federal income taxation under subsection 501(a) and is 1514
described in subsection 501(c)(3), 501(c)(4), 501(c)(7), 1515
501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue Code 1516
may conduct a raffle to raise money for the organization or school 1517
and does not need a license to conduct bingo in order to conduct a 1518
raffle drawing that is not for profit.1519

       (2) If a charitable organization that is described in 1520
division (A)(1) of this section, but that is not also described in 1521
subsection 501(c)(3) of the Internal Revenue Code, conducts a 1522
raffle, the charitable organization shall distribute at least 1523
fifty per cent of the net profit from the raffle to a charitable 1524
purpose described in division (Z)(V) of section 2915.01 of the 1525
Revised Code or to a department or agency of the federal 1526
government, the state, or any political subdivision.1527

       (B) Except as provided in division (A) or (B) of this 1528
section, no person shall conduct a raffle drawing that is for 1529
profit or a raffle drawing that is not for profit.1530

       (C) Whoever violates division (B) of this section is guilty 1531
of illegal conduct of a raffle. Except as otherwise provided in 1532
this division, illegal conduct of a raffle is a misdemeanor of the 1533
first degree. If the offender previously has been convicted of a 1534
violation of division (B) of this section, illegal conduct of a 1535
raffle is a felony of the fifth degree.1536

       Sec. 2915.093. (A) As used in this section, "retail income 1537
from all commercial activity" means the income that a person 1538
receives from the provision of goods, services, or activities that 1539
are provided at the location where instant bingo other than at a 1540
bingo session is conducted, including the sale of instant bingo 1541
tickets. A religious organization that is exempt from federal 1542
income taxation under subsection 501(a) and described in 1543
subsection 501(c)(3) of the Internal Revenue Code, at not more 1544
than one location at which it conducts its charitable programs, 1545
may include donations from its members and guests as retail 1546
income.1547

        (B) A charitable instant bingo organization may conduct 1548
instant bingo other than at a bingo session at not more than five 1549
separate locations.1550

       (C)(1) If a charitable instant bingo organization conducts 1551
instant bingo other than at a bingo session, the charitable 1552
instant bingo organization shall enter into a written contract 1553
with the owner or lessor of the location at which the instant 1554
bingo is conducted to allow the owner or lessor to assist in the 1555
conduct of instant bingo other than at a bingo session, identify 1556
each location where the instant bingo other than at a bingo 1557
session is being conducted, and identify the owner or lessor of 1558
each location.1559

       (2) A charitable instant bingo organization that conducts 1560
instant bingo other than at a bingo session is not required to 1561
enter into a written contract with the owner or lessor of the 1562
location at which the instant bingo is conducted, provided that 1563
the owner or lessor is not assisting in the conduct of the instant 1564
bingo other than at a bingo session and provided that the conduct 1565
of the instant bingo other than at a bingo session at that 1566
location is not more than five days per calendar year and not more 1567
than ten hours per day.1568

       (D)(C) Except as provided in division (G)(F) of this section, 1569
no charitable instant bingo organization shall conduct instant 1570
bingo other than at a bingo session at a location where the 1571
primary source of retail income from all commercial activity at 1572
that location is the sale of instant bingo tickets.1573

       (E)(D) The owner or lessor of a location that enters into a 1574
contract pursuant to division (C)(B) of this section shall pay the 1575
full gross profit to the charitable instant bingo organization, in 1576
return for the deal of instant bingo tickets. The owner or lessor 1577
may retain the money that the owner or lessor receives for selling 1578
the instant bingo tickets, provided, however, that after the deal 1579
has been sold, the owner or lessor shall pay to the charitable 1580
instant bingo organization the value of any unredeemed instant 1581
bingo prizes remaining in the deal of instant bingo tickets.1582

       The charitable instant bingo organization shall pay six per 1583
cent of the total gross receipts of any deal of instant bingo 1584
tickets for the purpose of reimbursing the owner or lessor for 1585
expenses described in this division.1586

        As used in this division, "expenses" means those items 1587
provided for in divisions (GG)(4), (5), (6), (7), (8), (12), and 1588
(13) of section 2915.01 of the Revised Code and that percentage of 1589
the owner's or lessor's rent for the location where instant bingo 1590
is conducted. "Expenses," in the aggregate, shall not exceed six 1591
per cent of the total gross receipts of any deal of instant bingo 1592
tickets.1593

       As used in this division, "full gross profit" means the 1594
amount by which the total receipts of all instant bingo tickets, 1595
if the deal had been sold in full, exceeds the amount that would 1596
be paid out if all prizes were redeemed.1597

       (F)(E) A charitable instant bingo organization shall provide 1598
the attorney general with all of the following information:1599

        (1) That the charitable instant bingo organization has 1600
terminated a contract entered into pursuant to division (C)(B) of 1601
this section with an owner or lessor of a location;1602

        (2) That the charitable instant bingo organization has 1603
entered into a written contract pursuant to division (C)(B) of 1604
this section with a new owner or lessor of a location;1605

        (3) That the charitable instant bingo organization is aware 1606
of conduct by the owner or lessor of a location at which instant 1607
bingo is conducted that is in violation of this chapter.1608

       (G)(F) Division (D)(C) of this section does not apply to a 1609
volunteer firefighter's organization that is exempt from federal 1610
income taxation under subsection 501(a) and described in 1611
subsection 501(c)(3) of the Internal Revenue Code, that conducts 1612
instant bingo other than at a bingo session on the premises where 1613
the organization conducts firefighter training, that has conducted 1614
instant bingo continuously for at least five years prior to July 1615
1, 2003, and that, during each of those five years, had gross 1616
receipts of at least one million five hundred thousand dollars.1617

       Sec. 2915.094. (A) No owner or lessor of a location shall 1618
assist a charitable instant bingo organization in the conduct of 1619
instant bingo other than at a bingo session at that location 1620
unless the owner or lessor has entered into a written contract, as 1621
described in division (C) of section 2915.093 of the Revised Code, 1622
with the charitable instant bingo organization to assist in the 1623
conduct of instant bingo other than at a bingo session.1624

       (B) The location of the lessor or owner shall be designated 1625
as a location where the charitable instant bingo organization 1626
conducts instant bingo other than at a bingo session.1627

        (C) No owner or lessor of a location that enters into a 1628
written contract as prescribed in division (A) of this section 1629
shall violate any provision of Chapter 2915. of the Revised Code, 1630
or permit, aid, or abet any other person in violating any 1631
provision of Chapter 2915. of the Revised Code.1632

        (D) No owner or lessor of a location that enters into a 1633
written contract as prescribed in division (A) of this section 1634
shall violate the terms of the contract.1635

       (E)(1) Whoever violates division (C) or (D) of this section 1636
is guilty of illegal instant bingo conduct. Except as otherwise 1637
provided in this division, illegal instant bingo conduct is a 1638
misdemeanor of the first degree. If the offender previously has 1639
been convicted of a violation of division (C) or (D) of this 1640
section, illegal instant bingo conduct is a felony of the fifth 1641
degree.1642

        (2) If an owner or lessor of a location knowingly, 1643
intentionally, or recklessly violates division (C) or (D) of this 1644
section, any license that the owner or lessor holds for the retail 1645
sale of any goods on the owner's or lessor's premises that is 1646
issued by the state or a political subdivision is subject to 1647
suspension, revocation, or payment of a monetary penalty at the 1648
request of the attorney general.1649

       Sec. 2915.10.  (A) No charitable organization that conducts 1650
bingo or a game of chance pursuant to division (D) of section 1651
2915.02 of the Revised Code shall fail to maintain the following 1652
records for at least three years from the date on which the bingo 1653
or game of chance is conducted:1654

       (1) An itemized list of the gross receipts of each bingo 1655
session, each game of instant bingo by serial number, each raffle, 1656
each punch board game, and each game of chance, and an itemized 1657
list of the gross profits of each game of instant bingo by serial 1658
number;1659

       (2) An itemized list of all expenses, other than prizes, that 1660
are incurred in conducting bingo or instant bingo, the name of 1661
each person to whom the expenses are paid, and a receipt for all 1662
of the expenses;1663

       (3) A list of all prizes awarded during each bingo session, 1664
each raffle, each punch board game, and each game of chance 1665
conducted by the charitable organization, the total prizes awarded 1666
from each game of instant bingo by serial number, and the name, 1667
address, and social security number of all persons who are winners 1668
of prizes of six hundred dollars or more in value;1669

       (4) An itemized list of the recipients of the net profit of 1670
the bingo or game of chance, including the name and address of 1671
each recipient to whom the money is distributed, and if the 1672
organization uses the net profit of bingo, or the money or assets 1673
received from a game of chance, for any charitable or other 1674
purpose set forth in division (Z)(V) of section 2915.01, division 1675
(D) of section 2915.02, or section 2915.101 of the Revised Code, a 1676
list of each purpose and an itemized list of each expenditure for 1677
each purpose;1678

       (5) The number of persons who participate in any bingo 1679
session or game of chance that is conducted by the charitable 1680
organization;1681

       (6) A list of receipts from the sale of food and beverages by 1682
the charitable organization or one of its auxiliary units or 1683
societies, if the receipts were excluded from gross receipts under 1684
division (X)(T) of section 2915.01 of the Revised Code;1685

       (7) An itemized list of all expenses incurred at each bingo 1686
session, each raffle, each punch board game, or each game of 1687
instant bingo conducted by the charitable organization in the sale 1688
of food and beverages by the charitable organization or by an 1689
auxiliary unit or society of the charitable organization, the name 1690
of each person to whom the expenses are paid, and a receipt for 1691
all of the expenses.1692

       (B) A charitable organization shall keep the records that it 1693
is required to maintain pursuant to division (A) of this section 1694
at its principal place of business in this state or at its 1695
headquarters in this state and shall notify the attorney general 1696
of the location at which those records are kept.1697

       (C) The gross profit from each bingo session or game 1698
described in division (S)(O)(1) or (2) of section 2915.01 of the 1699
Revised Code shall be deposited into a checking account devoted 1700
exclusively to the bingo session or game. Payments for allowable 1701
expenses incurred in conducting the bingo session or game and 1702
payments to recipients of some or all of the net profit of the 1703
bingo session or game shall be made only by checks or electronic 1704
fund transfers drawn on the bingo session or game account.1705

       (D) Each charitable organization shall conduct and record an 1706
inventory of all of its bingo supplies as of the first day of 1707
November of each year.1708

       (E) The attorney general may adopt rules in accordance with 1709
Chapter 119. of the Revised Code that establish standards of 1710
accounting, record keeping, and reporting to ensure that gross 1711
receipts from bingo or games of chance are properly accounted for.1712

       (F) A distributor shall maintain, for a period of three years 1713
after the date of its sale or other provision, a record of each 1714
instance of its selling or otherwise providing to another person 1715
bingo supplies for use in this state. The record shall include all 1716
of the following for each instance:1717

       (1) The name of the manufacturer from which the distributor 1718
purchased the bingo supplies and the date of the purchase;1719

       (2) The name and address of the charitable organization or 1720
other distributor to which the bingo supplies were sold or 1721
otherwise provided;1722

       (3) A description that clearly identifies the bingo supplies;1723

       (4) Invoices that include the nonrepeating serial numbers of 1724
all paper bingo cards and sheets and all instant bingo deals sold 1725
or otherwise provided to each charitable organization.1726

       (G) A manufacturer shall maintain, for a period of three 1727
years after the date of its sale or other provision, a record of 1728
each instance of its selling or otherwise providing bingo supplies 1729
for use in this state. The record shall include all of the 1730
following for each instance:1731

       (1) The name and address of the distributor to whom the bingo 1732
supplies were sold or otherwise provided;1733

       (2) A description that clearly identifies the bingo supplies, 1734
including serial numbers;1735

       (3) Invoices that include the nonrepeating serial numbers of 1736
all paper bingo cards and sheets and all instant bingo deals sold 1737
or otherwise provided to each distributor.1738

       (H) The attorney general or any law enforcement agency may do 1739
all of the following:1740

       (1) Investigate any charitable organization or any officer, 1741
agent, trustee, member, or employee of the organization;1742

       (2) Examine the accounts and records of the organization;1743

       (3) Conduct inspections, audits, and observations of bingo or 1744
games of chance;1745

       (4) Conduct inspections of the premises where bingo or games 1746
of chance are conducted;1747

       (5) Take any other necessary and reasonable action to 1748
determine if a violation of any provision of sections 2915.01 to 1749
2915.13 of the Revised Code has occurred and to determine whether 1750
section 2915.11 of the Revised Code has been complied with.1751

       If any law enforcement agency has reasonable grounds to 1752
believe that a charitable organization or an officer, agent, 1753
trustee, member, or employee of the organization has violated any 1754
provision of this chapter, the law enforcement agency may proceed 1755
by action in the proper court to enforce this chapter, provided 1756
that the law enforcement agency shall give written notice to the 1757
attorney general when commencing an action as described in this 1758
division.1759

       (I) No person shall destroy, alter, conceal, withhold, or 1760
deny access to any accounts or records of a charitable 1761
organization that have been requested for examination, or 1762
obstruct, impede, or interfere with any inspection, audit, or 1763
observation of bingo or a game of chance or premises where bingo 1764
or a game of chance is conducted, or refuse to comply with any 1765
reasonable request of, or obstruct, impede, or interfere with any 1766
other reasonable action undertaken by, the attorney general or a 1767
law enforcement agency pursuant to division (H) of this section.1768

       (J) Whoever violates division (A) or (I) of this section is 1769
guilty of a misdemeanor of the first degree.1770

       Sec. 2915.101. Except as otherwise provided by law, a 1771
charitable organization that conducts instant bingo shall 1772
distribute the net profit from the proceeds of the sale of instant 1773
bingo as follows:1774

        (A)(1) If a veteran's organization, a fraternal organization, 1775
or a sporting organization conducted the instant bingo, the 1776
organization shall distribute the net profit from the proceeds of 1777
the sale of instant bingo, as follows:1778

       (a) For the first two hundred fifty thousand dollars, or a 1779
greater amount prescribed by the attorney general to adjust for 1780
changes in prices as measured by the consumer price index as 1781
defined in section 325.18 of the Revised Code and other factors 1782
affecting the organization's expenses, as defined in division 1783
(LL)(GG) of section 2915.01 of the Revised Code, or less of net 1784
profit from the proceeds of the sale of instant bingo generated in 1785
a calendar year:1786

       (i) At least twenty-five per cent shall be distributed to an 1787
organization described in division (Z)(V)(1) of section 2915.01 of 1788
the Revised Code or to a department or agency of the federal 1789
government, the state, or any political subdivision.1790

       (ii) Not more than seventy-five per cent may be deducted and 1791
retained by the organization for reimbursement of or for the 1792
organization's expenses, as defined in division (LL)(GG) of 1793
section 2915.01 of the Revised Code, in conducting the instant 1794
bingo game.1795

       (b) For any net profit from the proceeds of the sale of 1796
instant bingo of more than two hundred fifty thousand dollars or 1797
an adjusted amount generated in a calendar year:1798

       (i) A minimum of fifty per cent shall be distributed to an 1799
organization described in division (Z)(V)(1) of section 2915.01 of 1800
the Revised Code or to a department or agency of the federal 1801
government, the state, or any political subdivision.1802

       (ii) Five per cent may be distributed for the organization's 1803
own charitable purposes or to a community action agency.1804

       (iii) Forty-five per cent may be deducted and retained by the 1805
organization for reimbursement of or for the organization's 1806
expenses, as defined in division (LL)(GG) of section 2915.01 of 1807
the Revised Code, in conducting the instant bingo game.1808

       (2) If a veteran's organization, a fraternal organization, or 1809
a sporting organization does not distribute the full percentages 1810
specified in divisions (A)(1)(a) and (b) of this section for the 1811
purposes specified in those divisions, the organization shall 1812
distribute the balance of the net profit from the proceeds of the 1813
sale of instant bingo not distributed or retained for those 1814
purposes to an organization described in division (Z)(V)(1) of 1815
section 2915.01 of the Revised Code.1816

        (B) If a charitable organization other than a veteran's 1817
organization, a fraternal organization, or a sporting organization 1818
conducted the instant bingo, the organization shall distribute one 1819
hundred per cent of the net profit from the proceeds of the sale 1820
of instant bingo to an organization described in division 1821
(Z)(V)(1) of section 2915.01 of the Revised Code or to a 1822
department or agency of the federal government, the state, or any 1823
political subdivision.1824

       (C) Nothing in this section prohibits a veteran's 1825
organization, a fraternal organization, or a sporting organization 1826
from distributing any net profit from the proceeds of the sale of 1827
instant bingo to an organization that is described in subsection 1828
501(c)(3) of the Internal Revenue Code when the organization that 1829
is described in subsection 501(c)(3) of the Internal Revenue Code 1830
is one that makes donations to other organizations and permits 1831
donors to advise or direct such donations so long as the donations 1832
comply with requirements established in or pursuant to subsection 1833
501(c)(3) of the Internal Revenue Code.1834

       Sec. 2915.12. (A) Sections 2915.07 to 2915.11 of the Revised 1835
Code do not apply to bingo games that are conducted for the 1836
purpose of amusement only. A bingo game is conducted for the 1837
purpose of amusement only if it complies with all of the 1838
requirements specified in either division (A)(1) or (2) of this 1839
section:1840

       (1)(a) The participants do not pay any money or any other 1841
thing of value including an admission fee, or any fee for bingo 1842
cards or sheets, objects to cover the spaces, or other devices 1843
used in playing bingo, for the privilege of participating in the 1844
bingo game, or to defray any costs of the game, or pay tips or 1845
make donations during or immediately before or after the bingo 1846
game.1847

       (b) All prizes awarded during the course of the game are 1848
nonmonetary, and in the form of merchandise, goods, or 1849
entitlements to goods or services only, and the total value of all 1850
prizes awarded during the game is less than one hundred dollars.1851

       (c) No commission, wages, salary, reward, tip, donation, 1852
gratuity, or other form of compensation, either directly or 1853
indirectly, and regardless of the source, is paid to any bingo 1854
game operator for work or labor performed at the site of the bingo 1855
game.1856

       (d) The bingo game is not conducted either during or within 1857
ten hours of any of the following:1858

       (i) A bingo session during which a charitable bingo game is 1859
conducted pursuant to sections 2915.07 to 2915.11 of the Revised 1860
Code;1861

       (ii) A scheme or game of chance, or bingo described in 1862
division (S)(O)(2) of section 2915.01 of the Revised Code.1863

       (e) The number of players participating in the bingo game 1864
does not exceed fifty.1865

       (2)(a) The participants do not pay money or any other thing 1866
of value as an admission fee, and no participant is charged more 1867
than twenty-five cents to purchase a bingo card or sheet, objects 1868
to cover the spaces, or other devices used in playing bingo.1869

       (b) The total amount of money paid by all of the participants 1870
for bingo cards or sheets, objects to cover the spaces, or other 1871
devices used in playing bingo does not exceed one hundred dollars.1872

       (c) All of the money paid for bingo cards or sheets, objects 1873
to cover spaces, or other devices used in playing bingo is used 1874
only to pay winners monetary and nonmonetary prizes and to provide 1875
refreshments.1876

       (d) The total value of all prizes awarded during the game 1877
does not exceed one hundred dollars.1878

       (e) No commission, wages, salary, reward, tip, donation, 1879
gratuity, or other form of compensation, either directly or 1880
indirectly, and regardless of the source, is paid to any bingo 1881
game operator for work or labor performed at the site of the bingo 1882
game.1883

       (f) The bingo game is not conducted during or within ten 1884
hours of either of the following:1885

       (i) A bingo session during which a charitable bingo game is 1886
conducted pursuant to sections 2915.07 to 2915.11 of the Revised 1887
Code;1888

       (ii) A scheme of chance or game of chance, or bingo described 1889
in division (S)(O)(2) of section 2915.01 of the Revised Code.1890

       (g) All of the participants reside at the premises where the 1891
bingo game is conducted.1892

       (h) The bingo games are conducted on different days of the 1893
week and not more than twice in a calendar week.1894

       (B) The attorney general or any local law enforcement agency 1895
may investigate the conduct of a bingo game that purportedly is 1896
conducted for purposes of amusement only if there is reason to 1897
believe that the purported amusement bingo game does not comply 1898
with the requirements of either division (A)(1) or (2) of this 1899
section. A local law enforcement agency may proceed by action in 1900
the proper court to enforce this section if the local law 1901
enforcement agency gives written notice to the attorney general 1902
when commencing the action.1903

       Sec. 2923.31.  As used in sections 2923.31 to 2923.36 of the 1904
Revised Code:1905

       (A) "Beneficial interest" means any of the following:1906

       (1) The interest of a person as a beneficiary under a trust 1907
in which the trustee holds title to personal or real property;1908

       (2) The interest of a person as a beneficiary under any other 1909
trust arrangement under which any other person holds title to 1910
personal or real property for the benefit of such person;1911

       (3) The interest of a person under any other form of express 1912
fiduciary arrangement under which any other person holds title to 1913
personal or real property for the benefit of such person.1914

       "Beneficial interest" does not include the interest of a 1915
stockholder in a corporation or the interest of a partner in 1916
either a general or limited partnership.1917

       (B) "Costs of investigation and prosecution" and "costs of 1918
investigation and litigation" mean all of the costs incurred by 1919
the state or a county or municipal corporation under sections 1920
2923.31 to 2923.36 of the Revised Code in the prosecution and 1921
investigation of any criminal action or in the litigation and 1922
investigation of any civil action, and includes, but is not 1923
limited to, the costs of resources and personnel.1924

       (C) "Enterprise" includes any individual, sole 1925
proprietorship, partnership, limited partnership, corporation, 1926
trust, union, government agency, or other legal entity, or any 1927
organization, association, or group of persons associated in fact 1928
although not a legal entity. "Enterprise" includes illicit as well 1929
as licit enterprises.1930

       (D) "Innocent person" includes any bona fide purchaser of 1931
property that is allegedly involved in a violation of section 1932
2923.32 of the Revised Code, including any person who establishes 1933
a valid claim to or interest in the property in accordance with 1934
division (E) of section 2981.04 of the Revised Code, and any 1935
victim of an alleged violation of that section or of any 1936
underlying offense involved in an alleged violation of that 1937
section.1938

       (E) "Pattern of corrupt activity" means two or more incidents 1939
of corrupt activity, whether or not there has been a prior 1940
conviction, that are related to the affairs of the same 1941
enterprise, are not isolated, and are not so closely related to 1942
each other and connected in time and place that they constitute a 1943
single event.1944

       At least one of the incidents forming the pattern shall occur 1945
on or after January 1, 1986. Unless any incident was an aggravated 1946
murder or murder, the last of the incidents forming the pattern 1947
shall occur within six years after the commission of any prior 1948
incident forming the pattern, excluding any period of imprisonment 1949
served by any person engaging in the corrupt activity.1950

       For the purposes of the criminal penalties that may be 1951
imposed pursuant to section 2923.32 of the Revised Code, at least 1952
one of the incidents forming the pattern shall constitute a felony 1953
under the laws of this state in existence at the time it was 1954
committed or, if committed in violation of the laws of the United 1955
States or of any other state, shall constitute a felony under the 1956
law of the United States or the other state and would be a 1957
criminal offense under the law of this state if committed in this 1958
state.1959

       (F) "Pecuniary value" means money, a negotiable instrument, a 1960
commercial interest, or anything of value, as defined in section 1961
1.03 of the Revised Code, or any other property or service that 1962
has a value in excess of one hundred dollars.1963

       (G) "Person" means any person, as defined in section 1.59 of 1964
the Revised Code, and any governmental officer, employee, or 1965
entity.1966

       (H) "Personal property" means any personal property, any 1967
interest in personal property, or any right, including, but not 1968
limited to, bank accounts, debts, corporate stocks, patents, or 1969
copyrights. Personal property and any beneficial interest in 1970
personal property are deemed to be located where the trustee of 1971
the property, the personal property, or the instrument evidencing 1972
the right is located.1973

       (I) "Corrupt activity" means engaging in, attempting to 1974
engage in, conspiring to engage in, or soliciting, coercing, or 1975
intimidating another person to engage in any of the following:1976

       (1) Conduct defined as "racketeering activity" under the 1977
"Organized Crime Control Act of 1970," 84 Stat. 941, 18 U.S.C. 1978
1961(1)(B), (1)(C), (1)(D), and (1)(E), as amended;1979

       (2) Conduct constituting any of the following:1980

       (a) A violation of section 1315.55, 1322.02, 2903.01, 1981
2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2905.01, 2905.02, 1982
2905.11, 2905.22, 2907.321, 2907.322, 2907.323, 2909.02, 2909.03, 1983
2909.22, 2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29, 1984
2911.01, 2911.02, 2911.11, 2911.12, 2911.13, 2911.31, 2913.05, 1985
2913.06, 2921.02, 2921.03, 2921.04, 2921.11, 2921.12, 2921.32, 1986
2921.41, 2921.42, 2921.43, 2923.12, or 2923.17; division 1987
(F)(1)(a), (b), or (c) of section 1315.53; division (A)(1) or (2) 1988
of section 1707.042; division (B), (C)(4), (D), (E), or (F) of 1989
section 1707.44; division (A)(1) or (2) of section 2923.20; 1990
division (E) or (G) of section 3772.99; division (J)(1) of section 1991
4712.02; section 4719.02, 4719.05, or 4719.06; division (C), (D), 1992
or (E) of section 4719.07; section 4719.08; or division (A) of 1993
section 4719.09 of the Revised Code.1994

       (b) Any violation of section 3769.11, 3769.15, 3769.16, or 1995
3769.19 of the Revised Code as it existed prior to July 1, 1996, 1996
any violation of section 2915.02 of the Revised Code that occurs 1997
on or after July 1, 1996, and that, had it occurred prior to that 1998
date, would have been a violation of section 3769.11 of the 1999
Revised Code as it existed prior to that date, or any violation of 2000
section 2915.05 of the Revised Code that occurs on or after July 2001
1, 1996, and that, had it occurred prior to that date, would have 2002
been a violation of section 3769.15, 3769.16, or 3769.19 of the 2003
Revised Code as it existed prior to that date.2004

       (c) Any violation of section 2907.21, 2907.22, 2907.31, 2005
2913.02, 2913.11, 2913.21, 2913.31, 2913.32, 2913.34, 2913.42, 2006
2913.47, 2913.51, 2915.03, 2925.03, 2925.04, 2925.05, or 2925.37 2007
of the Revised Code, any violation of section 2925.11 of the 2008
Revised Code that is a felony of the first, second, third, or 2009
fourth degree and that occurs on or after July 1, 1996, any 2010
violation of section 2915.02 of the Revised Code that occurred 2011
prior to July 1, 1996, any violation of section 2915.02 of the 2012
Revised Code that occurs on or after July 1, 1996, and that, had 2013
it occurred prior to that date, would not have been a violation of 2014
section 3769.11 of the Revised Code as it existed prior to that 2015
date, any violation of section 2915.06 of the Revised Code as it 2016
existed prior to July 1, 1996, or any violation of division (B) of 2017
section 2915.05 of the Revised Code as it exists on and after July 2018
1, 1996, when the proceeds of the violation, the payments made in 2019
the violation, the amount of a claim for payment or for any other 2020
benefit that is false or deceptive and that is involved in the 2021
violation, or the value of the contraband or other property 2022
illegally possessed, sold, or purchased in the violation exceeds 2023
one thousand dollars, or any combination of violations described 2024
in division (I)(2)(c) of this section when the total proceeds of 2025
the combination of violations, payments made in the combination of 2026
violations, amount of the claims for payment or for other benefits 2027
that is false or deceptive and that is involved in the combination 2028
of violations, or value of the contraband or other property 2029
illegally possessed, sold, or purchased in the combination of 2030
violations exceeds one thousand dollars;2031

       (d) Any violation of section 5743.112 of the Revised Code 2032
when the amount of unpaid tax exceeds one hundred dollars;2033

       (e) Any violation or combination of violations of section 2034
2907.32 of the Revised Code involving any material or performance 2035
containing a display of bestiality or of sexual conduct, as 2036
defined in section 2907.01 of the Revised Code, that is explicit 2037
and depicted with clearly visible penetration of the genitals or 2038
clearly visible penetration by the penis of any orifice when the 2039
total proceeds of the violation or combination of violations, the 2040
payments made in the violation or combination of violations, or 2041
the value of the contraband or other property illegally possessed, 2042
sold, or purchased in the violation or combination of violations 2043
exceeds one thousand dollars;2044

       (f) Any combination of violations described in division 2045
(I)(2)(c) of this section and violations of section 2907.32 of the 2046
Revised Code involving any material or performance containing a 2047
display of bestiality or of sexual conduct, as defined in section 2048
2907.01 of the Revised Code, that is explicit and depicted with 2049
clearly visible penetration of the genitals or clearly visible 2050
penetration by the penis of any orifice when the total proceeds of 2051
the combination of violations, payments made in the combination of 2052
violations, amount of the claims for payment or for other benefits 2053
that is false or deceptive and that is involved in the combination 2054
of violations, or value of the contraband or other property 2055
illegally possessed, sold, or purchased in the combination of 2056
violations exceeds one thousand dollars;2057

       (g) Any violation of section 2905.32 of the Revised Code to 2058
the extent the violation is not based solely on the same conduct 2059
that constitutes corrupt activity pursuant to division (I)(2)(c) 2060
of this section due to the conduct being in violation of section 2061
2907.21 of the Revised Code.2062

       (3) Conduct constituting a violation of any law of any state 2063
other than this state that is substantially similar to the conduct 2064
described in division (I)(2) of this section, provided the 2065
defendant was convicted of the conduct in a criminal proceeding in 2066
the other state;2067

       (4) Animal or ecological terrorism;2068

       (5)(a) Conduct constituting any of the following:2069

       (i) Organized retail theft;2070

       (ii) Conduct that constitutes one or more violations of any 2071
law of any state other than this state, that is substantially 2072
similar to organized retail theft, and that if committed in this 2073
state would be organized retail theft, if the defendant was 2074
convicted of or pleaded guilty to the conduct in a criminal 2075
proceeding in the other state.2076

       (b) By enacting division (I)(5)(a) of this section, it is the 2077
intent of the general assembly to add organized retail theft and 2078
the conduct described in division (I)(5)(a)(ii) of this section as 2079
conduct constituting corrupt activity. The enactment of division 2080
(I)(5)(a) of this section and the addition by division (I)(5)(a) 2081
of this section of organized retail theft and the conduct 2082
described in division (I)(5)(a)(ii) of this section as conduct 2083
constituting corrupt activity does not limit or preclude, and 2084
shall not be construed as limiting or precluding, any prosecution 2085
for a violation of section 2923.32 of the Revised Code that is 2086
based on one or more violations of section 2913.02 or 2913.51 of 2087
the Revised Code, one or more similar offenses under the laws of 2088
this state or any other state, or any combination of any of those 2089
violations or similar offenses, even though the conduct 2090
constituting the basis for those violations or offenses could be 2091
construed as also constituting organized retail theft or conduct 2092
of the type described in division (I)(5)(a)(ii) of this section.2093

       (J) "Real property" means any real property or any interest 2094
in real property, including, but not limited to, any lease of, or 2095
mortgage upon, real property. Real property and any beneficial 2096
interest in it is deemed to be located where the real property is 2097
located.2098

       (K) "Trustee" means any of the following:2099

       (1) Any person acting as trustee under a trust in which the 2100
trustee holds title to personal or real property;2101

       (2) Any person who holds title to personal or real property 2102
for which any other person has a beneficial interest;2103

       (3) Any successor trustee.2104

       "Trustee" does not include an assignee or trustee for an 2105
insolvent debtor or an executor, administrator, administrator with 2106
the will annexed, testamentary trustee, guardian, or committee, 2107
appointed by, under the control of, or accountable to a court.2108

       (L) "Unlawful debt" means any money or other thing of value 2109
constituting principal or interest of a debt that is legally 2110
unenforceable in this state in whole or in part because the debt 2111
was incurred or contracted in violation of any federal or state 2112
law relating to the business of gambling activity or relating to 2113
the business of lending money at an usurious rate unless the 2114
creditor proves, by a preponderance of the evidence, that the 2115
usurious rate was not intentionally set and that it resulted from 2116
a good faith error by the creditor, notwithstanding the 2117
maintenance of procedures that were adopted by the creditor to 2118
avoid an error of that nature.2119

       (M) "Animal activity" means any activity that involves the 2120
use of animals or animal parts, including, but not limited to, 2121
hunting, fishing, trapping, traveling, camping, the production, 2122
preparation, or processing of food or food products, clothing or 2123
garment manufacturing, medical research, other research, 2124
entertainment, recreation, agriculture, biotechnology, or service 2125
activity that involves the use of animals or animal parts.2126

        (N) "Animal facility" means a vehicle, building, structure, 2127
nature preserve, or other premises in which an animal is lawfully 2128
kept, handled, housed, exhibited, bred, or offered for sale, 2129
including, but not limited to, a zoo, rodeo, circus, amusement 2130
park, hunting preserve, or premises in which a horse or dog event 2131
is held.2132

        (O) "Animal or ecological terrorism" means the commission of 2133
any felony that involves causing or creating a substantial risk of 2134
physical harm to any property of another, the use of a deadly 2135
weapon or dangerous ordnance, or purposely, knowingly, or 2136
recklessly causing serious physical harm to property and that 2137
involves an intent to obstruct, impede, or deter any person from 2138
participating in a lawful animal activity, from mining, foresting, 2139
harvesting, gathering, or processing natural resources, or from 2140
being lawfully present in or on an animal facility or research 2141
facility.2142

       (P) "Research facility" means a place, laboratory, 2143
institution, medical care facility, government facility, or public 2144
or private educational institution in which a scientific test, 2145
experiment, or investigation involving the use of animals or other 2146
living organisms is lawfully carried out, conducted, or attempted.2147

       (Q) "Organized retail theft" means the theft of retail 2148
property with a retail value of one thousand dollars or more from 2149
one or more retail establishments with the intent to sell, 2150
deliver, or transfer that property to a retail property fence.2151

       (R) "Retail property" means any tangible personal property 2152
displayed, held, stored, or offered for sale in or by a retail 2153
establishment.2154

       (S) "Retail property fence" means a person who possesses, 2155
procures, receives, or conceals retail property that was 2156
represented to the person as being stolen or that the person knows 2157
or believes to be stolen.2158

       (T) "Retail value" means the full retail value of the retail 2159
property. In determining whether the retail value of retail 2160
property equals or exceeds one thousand dollars, the value of all 2161
retail property stolen from the retail establishment or retail 2162
establishments by the same person or persons within any 2163
one-hundred-eighty-day period shall be aggregated.2164

       Sec. 2933.51.  As used in sections 2933.51 to 2933.66 of the 2165
Revised Code:2166

       (A) "Wire communication" means an aural transfer that is made 2167
in whole or in part through the use of facilities for the 2168
transmission of communications by the aid of wires or similar 2169
methods of connecting the point of origin of the communication and 2170
the point of reception of the communication, including the use of 2171
a method of connecting the point of origin and the point of 2172
reception of the communication in a switching station, if the 2173
facilities are furnished or operated by a person engaged in 2174
providing or operating the facilities for the transmission of 2175
communications. "Wire communication" includes an electronic 2176
storage of a wire communication.2177

       (B) "Oral communication" means an oral communication uttered 2178
by a person exhibiting an expectation that the communication is 2179
not subject to interception under circumstances justifying that 2180
expectation. "Oral communication" does not include an electronic 2181
communication.2182

       (C) "Intercept" means the aural or other acquisition of the 2183
contents of any wire, oral, or electronic communication through 2184
the use of an interception device.2185

       (D) "Interception device" means an electronic, mechanical, or 2186
other device or apparatus that can be used to intercept a wire, 2187
oral, or electronic communication. "Interception device" does not 2188
mean any of the following:2189

       (1) A telephone or telegraph instrument, equipment, or 2190
facility, or any of its components, if the instrument, equipment, 2191
facility, or component is any of the following:2192

       (a) Furnished to the subscriber or user by a provider of wire 2193
or electronic communication service in the ordinary course of its 2194
business and being used by the subscriber or user in the ordinary 2195
course of its business;2196

       (b) Furnished by a subscriber or user for connection to the 2197
facilities of a provider of wire or electronic communication 2198
service and used in the ordinary course of that subscriber's or 2199
user's business;2200

       (c) Being used by a provider of wire or electronic 2201
communication service in the ordinary course of its business or by 2202
an investigative or law enforcement officer in the ordinary course 2203
of the officer's duties that do not involve the interception of 2204
wire, oral, or electronic communications.2205

       (2) A hearing aid or similar device being used to correct 2206
subnormal hearing to not better than normal.2207

       (E) "Investigative officer" means any of the following:2208

       (1) An officer of this state or a political subdivision of 2209
this state, who is empowered by law to conduct investigations or 2210
to make arrests for a designated offense;2211

       (2) A person described in divisions (A)(11)(a) and (b) of 2212
section 2901.01 of the Revised Code;2213

       (3) An attorney authorized by law to prosecute or participate 2214
in the prosecution of a designated offense;2215

       (4) A secret service officer appointed pursuant to section 2216
309.07 of the Revised Code;2217

       (5) An officer of the United States, a state, or a political 2218
subdivision of a state who is authorized to conduct investigations 2219
pursuant to the "Electronic Communications Privacy Act of 1986," 2220
100 Stat. 1848-1857, 18 U.S.C. 2510-2521 (1986), as amended.2221

       (F) "Interception warrant" means a court order that 2222
authorizes the interception of wire, oral, or electronic 2223
communications and that is issued pursuant to sections 2933.53 to 2224
2933.56 of the Revised Code.2225

       (G) "Contents," when used with respect to a wire, oral, or 2226
electronic communication, includes any information concerning the 2227
substance, purport, or meaning of the communication.2228

       (H) "Communications common carrier" means a person who is 2229
engaged as a common carrier for hire in intrastate, interstate, or 2230
foreign communications by wire, radio, or radio transmission of 2231
energy. "Communications common carrier" does not include, to the 2232
extent that the person is engaged in radio broadcasting, a person 2233
engaged in radio broadcasting.2234

       (I) "Designated offense" means any of the following:2235

       (1) A felony violation of section 1315.53, 1315.55, 2903.01, 2236
2903.02, 2903.11, 2905.01, 2905.02, 2905.11, 2905.22, 2905.32, 2237
2907.02, 2907.21, 2907.22, 2909.02, 2909.03, 2909.04, 2909.22, 2238
2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29, 2911.01, 2239
2911.02, 2911.11, 2911.12, 2913.02, 2913.04, 2913.42, 2913.51, 2240
2915.02, 2915.03, 2917.01, 2917.02, 2921.02, 2921.03, 2921.04, 2241
2921.32, 2921.34, 2923.20, 2923.32, 2925.03, 2925.04, 2925.05, or 2242
2925.06 or of division (B) of section 2915.05 or of division (E) 2243
or (G) of section 3772.99 of the Revised Code;2244

       (2) A violation of section 2919.23 of the Revised Code that, 2245
had it occurred prior to July 1, 1996, would have been a violation 2246
of section 2905.04 of the Revised Code as it existed prior to that 2247
date;2248

       (3) A felony violation of section 2925.11 of the Revised Code 2249
that is not a minor drug possession offense, as defined in section 2250
2925.01 of the Revised Code;2251

       (4) Complicity in the commission of a felony violation of a 2252
section listed in division (I)(1), (2), or (3) of this section;2253

       (5) An attempt to commit, or conspiracy in the commission of, 2254
a felony violation of a section listed in division (I)(1), (2), or 2255
(3) of this section, if the attempt or conspiracy is punishable by 2256
a term of imprisonment of more than one year.2257

       (J) "Aggrieved person" means a person who was a party to an 2258
intercepted wire, oral, or electronic communication or a person 2259
against whom the interception of the communication was directed.2260

       (K) "Person" means a person, as defined in section 1.59 of 2261
the Revised Code, or a governmental officer, employee, or entity.2262

       (L) "Special need" means a showing that a licensed physician, 2263
licensed practicing psychologist, attorney, practicing cleric, 2264
journalist, or either spouse is personally engaging in continuing 2265
criminal activity, was engaged in continuing criminal activity 2266
over a period of time, or is committing, has committed, or is 2267
about to commit, a designated offense, or a showing that specified 2268
public facilities are being regularly used by someone who is 2269
personally engaging in continuing criminal activity, was engaged 2270
in continuing criminal activity over a period of time, or is 2271
committing, has committed, or is about to commit, a designated 2272
offense.2273

       (M) "Journalist" means a person engaged in, connected with, 2274
or employed by, any news media, including a newspaper, magazine, 2275
press association, news agency, or wire service, a radio or 2276
television station, or a similar media, for the purpose of 2277
gathering, processing, transmitting, compiling, editing, or 2278
disseminating news for the general public.2279

       (N) "Electronic communication" means a transfer of a sign, 2280
signal, writing, image, sound, datum, or intelligence of any 2281
nature that is transmitted in whole or in part by a wire, radio, 2282
electromagnetic, photoelectronic, or photo-optical system. 2283
"Electronic communication" does not mean any of the following:2284

       (1) A wire or oral communication;2285

       (2) A communication made through a tone-only paging device;2286

       (3) A communication from an electronic or mechanical tracking 2287
device that permits the tracking of the movement of a person or 2288
object.2289

       (O) "User" means a person or entity that uses an electronic 2290
communication service and is duly authorized by the provider of 2291
the service to engage in the use of the electronic communication 2292
service.2293

       (P) "Electronic communications system" means a wire, radio, 2294
electromagnetic, photoelectronic, or photo-optical facility for 2295
the transmission of electronic communications, and a computer 2296
facility or related electronic equipment for the electronic 2297
storage of electronic communications.2298

       (Q) "Electronic communication service" means a service that 2299
provides to users of the service the ability to send or receive 2300
wire or electronic communications.2301

       (R) "Readily accessible to the general public" means, with 2302
respect to a radio communication, that the communication is none 2303
of the following:2304

       (1) Scrambled or encrypted;2305

       (2) Transmitted using a modulation technique, the essential 2306
parameters of which have been withheld from the public with the 2307
intention of preserving the privacy of the communication;2308

       (3) Carried on a subcarrier or other signal subsidiary to a 2309
radio transmission;2310

       (4) Transmitted over a communications system provided by a 2311
communications common carrier, unless the communication is a 2312
tone-only paging system communication;2313

       (5) Transmitted on a frequency allocated under part 25, 2314
subpart D, E, or F of part 74, or part 94 of the Rules of the 2315
Federal Communications Commission, as those provisions existed on 2316
July 1, 1996, unless, in the case of a communication transmitted 2317
on a frequency allocated under part 74 that is not exclusively 2318
allocated to broadcast auxiliary services, the communication is a 2319
two-way voice communication by radio.2320

       (S) "Electronic storage" means a temporary, intermediate 2321
storage of a wire or electronic communication that is incidental 2322
to the electronic transmission of the communication, and a storage 2323
of a wire or electronic communication by an electronic 2324
communication service for the purpose of backup protection of the 2325
communication.2326

       (T) "Aural transfer" means a transfer containing the human 2327
voice at a point between and including the point of origin and the 2328
point of reception.2329

       (U) "Pen register" means a device that records or decodes 2330
electronic impulses that identify the numbers dialed, pulsed, or 2331
otherwise transmitted on telephone lines to which the device is 2332
attached.2333

       (V) "Trap and trace device" means a device that captures the 2334
incoming electronic or other impulses that identify the 2335
originating number of an instrument or device from which a wire 2336
communication or electronic communication was transmitted but that 2337
does not intercept the contents of the wire communication or 2338
electronic communication.2339

       (W) "Judge of a court of common pleas" means a judge of that 2340
court who is elected or appointed as a judge of general 2341
jurisdiction or as a judge who exercises both general jurisdiction 2342
and probate, domestic relations, or juvenile jurisdiction. "Judge 2343
of a court of common pleas" does not mean a judge of that court 2344
who is elected or appointed specifically as a probate, domestic 2345
relations, or juvenile judge.2346

       Sec. 3301.0714.  (A) The state board of education shall adopt 2347
rules for a statewide education management information system. The 2348
rules shall require the state board to establish guidelines for 2349
the establishment and maintenance of the system in accordance with 2350
this section and the rules adopted under this section. The 2351
guidelines shall include:2352

       (1) Standards identifying and defining the types of data in 2353
the system in accordance with divisions (B) and (C) of this 2354
section;2355

       (2) Procedures for annually collecting and reporting the data 2356
to the state board in accordance with division (D) of this 2357
section;2358

       (3) Procedures for annually compiling the data in accordance 2359
with division (G) of this section;2360

       (4) Procedures for annually reporting the data to the public 2361
in accordance with division (H) of this section.2362

       (B) The guidelines adopted under this section shall require 2363
the data maintained in the education management information system 2364
to include at least the following:2365

       (1) Student participation and performance data, for each 2366
grade in each school district as a whole and for each grade in 2367
each school building in each school district, that includes:2368

       (a) The numbers of students receiving each category of 2369
instructional service offered by the school district, such as 2370
regular education instruction, vocational education instruction, 2371
specialized instruction programs or enrichment instruction that is 2372
part of the educational curriculum, instruction for gifted 2373
students, instruction for students with disabilities, and remedial 2374
instruction. The guidelines shall require instructional services 2375
under this division to be divided into discrete categories if an 2376
instructional service is limited to a specific subject, a specific 2377
type of student, or both, such as regular instructional services 2378
in mathematics, remedial reading instructional services, 2379
instructional services specifically for students gifted in 2380
mathematics or some other subject area, or instructional services 2381
for students with a specific type of disability. The categories of 2382
instructional services required by the guidelines under this 2383
division shall be the same as the categories of instructional 2384
services used in determining cost units pursuant to division 2385
(C)(3) of this section.2386

       (b) The numbers of students receiving support or 2387
extracurricular services for each of the support services or 2388
extracurricular programs offered by the school district, such as 2389
counseling services, health services, and extracurricular sports 2390
and fine arts programs. The categories of services required by the 2391
guidelines under this division shall be the same as the categories 2392
of services used in determining cost units pursuant to division 2393
(C)(4)(a) of this section.2394

       (c) Average student grades in each subject in grades nine 2395
through twelve;2396

       (d) Academic achievement levels as assessed under sections 2397
3301.0710, 3301.0711, and 3301.0712 of the Revised Code;2398

       (e) The number of students designated as having a disabling 2399
condition pursuant to division (C)(1) of section 3301.0711 of the 2400
Revised Code;2401

       (f) The numbers of students reported to the state board 2402
pursuant to division (C)(2) of section 3301.0711 of the Revised 2403
Code;2404

       (g) Attendance rates and the average daily attendance for the 2405
year. For purposes of this division, a student shall be counted as 2406
present for any field trip that is approved by the school 2407
administration.2408

       (h) Expulsion rates;2409

       (i) Suspension rates;2410

       (j) Dropout rates;2411

       (k) Rates of retention in grade;2412

       (l) For pupils in grades nine through twelve, the average 2413
number of carnegie units, as calculated in accordance with state 2414
board of education rules;2415

       (m) Graduation rates, to be calculated in a manner specified 2416
by the department of education that reflects the rate at which 2417
students who were in the ninth grade three years prior to the 2418
current year complete school and that is consistent with 2419
nationally accepted reporting requirements;2420

       (n) Results of diagnostic assessments administered to 2421
kindergarten students as required under section 3301.0715 of the 2422
Revised Code to permit a comparison of the academic readiness of 2423
kindergarten students. However, no district shall be required to 2424
report to the department the results of any diagnostic assessment 2425
administered to a kindergarten student if the parent of that 2426
student requests the district not to report those results.2427

       (2) Personnel and classroom enrollment data for each school 2428
district, including:2429

       (a) The total numbers of licensed employees and nonlicensed 2430
employees and the numbers of full-time equivalent licensed 2431
employees and nonlicensed employees providing each category of 2432
instructional service, instructional support service, and 2433
administrative support service used pursuant to division (C)(3) of 2434
this section. The guidelines adopted under this section shall 2435
require these categories of data to be maintained for the school 2436
district as a whole and, wherever applicable, for each grade in 2437
the school district as a whole, for each school building as a 2438
whole, and for each grade in each school building.2439

       (b) The total number of employees and the number of full-time 2440
equivalent employees providing each category of service used 2441
pursuant to divisions (C)(4)(a) and (b) of this section, and the 2442
total numbers of licensed employees and nonlicensed employees and 2443
the numbers of full-time equivalent licensed employees and 2444
nonlicensed employees providing each category used pursuant to 2445
division (C)(4)(c) of this section. The guidelines adopted under 2446
this section shall require these categories of data to be 2447
maintained for the school district as a whole and, wherever 2448
applicable, for each grade in the school district as a whole, for 2449
each school building as a whole, and for each grade in each school 2450
building.2451

       (c) The total number of regular classroom teachers teaching 2452
classes of regular education and the average number of pupils 2453
enrolled in each such class, in each of grades kindergarten 2454
through five in the district as a whole and in each school 2455
building in the school district.2456

       (d) The number of lead teachers employed by each school 2457
district and each school building.2458

       (3)(a) Student demographic data for each school district, 2459
including information regarding the gender ratio of the school 2460
district's pupils, the racial make-up of the school district's 2461
pupils, the number of limited English proficient students in the 2462
district, and an appropriate measure of the number of the school 2463
district's pupils who reside in economically disadvantaged 2464
households. The demographic data shall be collected in a manner to 2465
allow correlation with data collected under division (B)(1) of 2466
this section. Categories for data collected pursuant to division 2467
(B)(3) of this section shall conform, where appropriate, to 2468
standard practices of agencies of the federal government.2469

       (b) With respect to each student entering kindergarten, 2470
whether the student previously participated in a public preschool 2471
program, a private preschool program, or a head start program, and 2472
the number of years the student participated in each of these 2473
programs.2474

       (4) Any data required to be collected pursuant to federal 2475
law.2476

       (C) The education management information system shall include 2477
cost accounting data for each district as a whole and for each 2478
school building in each school district. The guidelines adopted 2479
under this section shall require the cost data for each school 2480
district to be maintained in a system of mutually exclusive cost 2481
units and shall require all of the costs of each school district 2482
to be divided among the cost units. The guidelines shall require 2483
the system of mutually exclusive cost units to include at least 2484
the following:2485

       (1) Administrative costs for the school district as a whole. 2486
The guidelines shall require the cost units under this division 2487
(C)(1) to be designed so that each of them may be compiled and 2488
reported in terms of average expenditure per pupil in formula ADM 2489
in the school district, as determined pursuant to section 3317.03 2490
of the Revised Code.2491

       (2) Administrative costs for each school building in the 2492
school district. The guidelines shall require the cost units under 2493
this division (C)(2) to be designed so that each of them may be 2494
compiled and reported in terms of average expenditure per 2495
full-time equivalent pupil receiving instructional or support 2496
services in each building.2497

       (3) Instructional services costs for each category of 2498
instructional service provided directly to students and required 2499
by guidelines adopted pursuant to division (B)(1)(a) of this 2500
section. The guidelines shall require the cost units under 2501
division (C)(3) of this section to be designed so that each of 2502
them may be compiled and reported in terms of average expenditure 2503
per pupil receiving the service in the school district as a whole 2504
and average expenditure per pupil receiving the service in each 2505
building in the school district and in terms of a total cost for 2506
each category of service and, as a breakdown of the total cost, a 2507
cost for each of the following components:2508

       (a) The cost of each instructional services category required 2509
by guidelines adopted under division (B)(1)(a) of this section 2510
that is provided directly to students by a classroom teacher;2511

       (b) The cost of the instructional support services, such as 2512
services provided by a speech-language pathologist, classroom 2513
aide, multimedia aide, or librarian, provided directly to students 2514
in conjunction with each instructional services category;2515

       (c) The cost of the administrative support services related 2516
to each instructional services category, such as the cost of 2517
personnel that develop the curriculum for the instructional 2518
services category and the cost of personnel supervising or 2519
coordinating the delivery of the instructional services category.2520

       (4) Support or extracurricular services costs for each 2521
category of service directly provided to students and required by 2522
guidelines adopted pursuant to division (B)(1)(b) of this section. 2523
The guidelines shall require the cost units under division (C)(4) 2524
of this section to be designed so that each of them may be 2525
compiled and reported in terms of average expenditure per pupil 2526
receiving the service in the school district as a whole and 2527
average expenditure per pupil receiving the service in each 2528
building in the school district and in terms of a total cost for 2529
each category of service and, as a breakdown of the total cost, a 2530
cost for each of the following components:2531

       (a) The cost of each support or extracurricular services 2532
category required by guidelines adopted under division (B)(1)(b) 2533
of this section that is provided directly to students by a 2534
licensed employee, such as services provided by a guidance 2535
counselor or any services provided by a licensed employee under a 2536
supplemental contract;2537

       (b) The cost of each such services category provided directly 2538
to students by a nonlicensed employee, such as janitorial 2539
services, cafeteria services, or services of a sports trainer;2540

       (c) The cost of the administrative services related to each 2541
services category in division (C)(4)(a) or (b) of this section, 2542
such as the cost of any licensed or nonlicensed employees that 2543
develop, supervise, coordinate, or otherwise are involved in 2544
administering or aiding the delivery of each services category.2545

       (D)(1) The guidelines adopted under this section shall 2546
require school districts to collect information about individual 2547
students, staff members, or both in connection with any data 2548
required by division (B) or (C) of this section or other reporting 2549
requirements established in the Revised Code. The guidelines may 2550
also require school districts to report information about 2551
individual staff members in connection with any data required by 2552
division (B) or (C) of this section or other reporting 2553
requirements established in the Revised Code. The guidelines shall 2554
not authorize school districts to request social security numbers 2555
of individual students. The guidelines shall prohibit the 2556
reporting under this section of a student's name, address, and 2557
social security number to the state board of education or the 2558
department of education. The guidelines shall also prohibit the 2559
reporting under this section of any personally identifiable 2560
information about any student, except for the purpose of assigning 2561
the data verification code required by division (D)(2) of this 2562
section, to any other person unless such person is employed by the 2563
school district or the information technology center operated 2564
under section 3301.075 of the Revised Code and is authorized by 2565
the district or technology center to have access to such 2566
information or is employed by an entity with which the department 2567
contracts for the scoring of assessments administered under 2568
section 3301.0711 of the Revised Code. The guidelines may require 2569
school districts to provide the social security numbers of 2570
individual staff members and the county of residence for a 2571
student. Nothing in this section prohibits the state board of 2572
education or department of education from providing a student's 2573
county of residence to the department of taxation to facilitate 2574
the distribution of tax revenue.2575

       (2) The guidelines shall provide for each school district or 2576
community school to assign a data verification code that is unique 2577
on a statewide basis over time to each student whose initial Ohio 2578
enrollment is in that district or school and to report all 2579
required individual student data for that student utilizing such 2580
code. The guidelines shall also provide for assigning data 2581
verification codes to all students enrolled in districts or 2582
community schools on the effective date of the guidelines 2583
established under this section.2584

       Individual student data shall be reported to the department 2585
through the information technology centers utilizing the code but, 2586
except as provided in sections 3310.11, 3310.42, 3310.63,2587
3313.978, 3310.63, and 3317.20 of the Revised Code, at no time 2588
shall the state board or the department have access to information 2589
that would enable any data verification code to be matched to 2590
personally identifiable student data.2591

       Each school district shall ensure that the data verification 2592
code is included in the student's records reported to any 2593
subsequent school district, community school, or state institution 2594
of higher education, as defined in section 3345.011 of the Revised 2595
Code, in which the student enrolls. Any such subsequent district 2596
or school shall utilize the same identifier in its reporting of 2597
data under this section.2598

       The director of health shall request and receive, pursuant to 2599
sections 3301.0723 and 3701.62 of the Revised Code, a data 2600
verification code for a child who is receiving services under 2601
division (A)(2) of section 3701.61 of the Revised Code. 2602

       (E) The guidelines adopted under this section may require 2603
school districts to collect and report data, information, or 2604
reports other than that described in divisions (A), (B), and (C) 2605
of this section for the purpose of complying with other reporting 2606
requirements established in the Revised Code. The other data, 2607
information, or reports may be maintained in the education 2608
management information system but are not required to be compiled 2609
as part of the profile formats required under division (G) of this 2610
section or the annual statewide report required under division (H) 2611
of this section.2612

       (F) Beginning with the school year that begins July 1, 1991, 2613
the board of education of each school district shall annually 2614
collect and report to the state board, in accordance with the 2615
guidelines established by the board, the data required pursuant to 2616
this section. A school district may collect and report these data 2617
notwithstanding section 2151.357 or 3319.321 of the Revised Code.2618

       (G) The state board shall, in accordance with the procedures 2619
it adopts, annually compile the data reported by each school 2620
district pursuant to division (D) of this section. The state board 2621
shall design formats for profiling each school district as a whole 2622
and each school building within each district and shall compile 2623
the data in accordance with these formats. These profile formats 2624
shall:2625

       (1) Include all of the data gathered under this section in a 2626
manner that facilitates comparison among school districts and 2627
among school buildings within each school district;2628

       (2) Present the data on academic achievement levels as 2629
assessed by the testing of student achievement maintained pursuant 2630
to division (B)(1)(d) of this section.2631

       (H)(1) The state board shall, in accordance with the 2632
procedures it adopts, annually prepare a statewide report for all 2633
school districts and the general public that includes the profile 2634
of each of the school districts developed pursuant to division (G) 2635
of this section. Copies of the report shall be sent to each school 2636
district.2637

       (2) The state board shall, in accordance with the procedures 2638
it adopts, annually prepare an individual report for each school 2639
district and the general public that includes the profiles of each 2640
of the school buildings in that school district developed pursuant 2641
to division (G) of this section. Copies of the report shall be 2642
sent to the superintendent of the district and to each member of 2643
the district board of education.2644

       (3) Copies of the reports received from the state board under 2645
divisions (H)(1) and (2) of this section shall be made available 2646
to the general public at each school district's offices. Each 2647
district board of education shall make copies of each report 2648
available to any person upon request and payment of a reasonable 2649
fee for the cost of reproducing the report. The board shall 2650
annually publish in a newspaper of general circulation in the 2651
school district, at least twice during the two weeks prior to the 2652
week in which the reports will first be available, a notice 2653
containing the address where the reports are available and the 2654
date on which the reports will be available.2655

       (I) Any data that is collected or maintained pursuant to this 2656
section and that identifies an individual pupil is not a public 2657
record for the purposes of section 149.43 of the Revised Code.2658

       (J) As used in this section:2659

       (1) "School district" means any city, local, exempted 2660
village, or joint vocational school district and, in accordance 2661
with section 3314.17 of the Revised Code, any community school. As 2662
used in division (L) of this section, "school district" also 2663
includes any educational service center or other educational 2664
entity required to submit data using the system established under 2665
this section.2666

       (2) "Cost" means any expenditure for operating expenses made 2667
by a school district excluding any expenditures for debt 2668
retirement except for payments made to any commercial lending 2669
institution for any loan approved pursuant to section 3313.483 of 2670
the Revised Code.2671

       (K) Any person who removes data from the information system 2672
established under this section for the purpose of releasing it to 2673
any person not entitled under law to have access to such 2674
information is subject to section 2913.42 of the Revised Code 2675
prohibiting tampering with data.2676

       (L)(1) In accordance with division (L)(2) of this section and 2677
the rules adopted under division (L)(10) of this section, the 2678
department of education may sanction any school district that 2679
reports incomplete or inaccurate data, reports data that does not 2680
conform to data requirements and descriptions published by the 2681
department, fails to report data in a timely manner, or otherwise 2682
does not make a good faith effort to report data as required by 2683
this section.2684

       (2) If the department decides to sanction a school district 2685
under this division, the department shall take the following 2686
sequential actions:2687

       (a) Notify the district in writing that the department has 2688
determined that data has not been reported as required under this 2689
section and require the district to review its data submission and 2690
submit corrected data by a deadline established by the department. 2691
The department also may require the district to develop a 2692
corrective action plan, which shall include provisions for the 2693
district to provide mandatory staff training on data reporting 2694
procedures.2695

       (b) Withhold up to ten per cent of the total amount of state 2696
funds due to the district for the current fiscal year and, if not 2697
previously required under division (L)(2)(a) of this section, 2698
require the district to develop a corrective action plan in 2699
accordance with that division;2700

       (c) Withhold an additional amount of up to twenty per cent of 2701
the total amount of state funds due to the district for the 2702
current fiscal year;2703

       (d) Direct department staff or an outside entity to 2704
investigate the district's data reporting practices and make 2705
recommendations for subsequent actions. The recommendations may 2706
include one or more of the following actions:2707

       (i) Arrange for an audit of the district's data reporting 2708
practices by department staff or an outside entity;2709

       (ii) Conduct a site visit and evaluation of the district;2710

       (iii) Withhold an additional amount of up to thirty per cent 2711
of the total amount of state funds due to the district for the 2712
current fiscal year;2713

       (iv) Continue monitoring the district's data reporting;2714

       (v) Assign department staff to supervise the district's data 2715
management system;2716

       (vi) Conduct an investigation to determine whether to suspend 2717
or revoke the license of any district employee in accordance with 2718
division (N) of this section;2719

       (vii) If the district is issued a report card under section 2720
3302.03 of the Revised Code, indicate on the report card that the 2721
district has been sanctioned for failing to report data as 2722
required by this section;2723

       (viii) If the district is issued a report card under section 2724
3302.03 of the Revised Code and incomplete or inaccurate data 2725
submitted by the district likely caused the district to receive a 2726
higher performance rating than it deserved under that section, 2727
issue a revised report card for the district;2728

       (ix) Any other action designed to correct the district's data 2729
reporting problems.2730

       (3) Any time the department takes an action against a school 2731
district under division (L)(2) of this section, the department 2732
shall make a report of the circumstances that prompted the action. 2733
The department shall send a copy of the report to the district 2734
superintendent or chief administrator and maintain a copy of the 2735
report in its files.2736

       (4) If any action taken under division (L)(2) of this section 2737
resolves a school district's data reporting problems to the 2738
department's satisfaction, the department shall not take any 2739
further actions described by that division. If the department 2740
withheld funds from the district under that division, the 2741
department may release those funds to the district, except that if 2742
the department withheld funding under division (L)(2)(c) of this 2743
section, the department shall not release the funds withheld under 2744
division (L)(2)(b) of this section and, if the department withheld 2745
funding under division (L)(2)(d) of this section, the department 2746
shall not release the funds withheld under division (L)(2)(b) or 2747
(c) of this section.2748

       (5) Notwithstanding anything in this section to the contrary, 2749
the department may use its own staff or an outside entity to 2750
conduct an audit of a school district's data reporting practices 2751
any time the department has reason to believe the district has not 2752
made a good faith effort to report data as required by this 2753
section. If any audit conducted by an outside entity under 2754
division (L)(2)(d)(i) or (5) of this section confirms that a 2755
district has not made a good faith effort to report data as 2756
required by this section, the district shall reimburse the 2757
department for the full cost of the audit. The department may 2758
withhold state funds due to the district for this purpose.2759

       (6) Prior to issuing a revised report card for a school 2760
district under division (L)(2)(d)(viii) of this section, the 2761
department may hold a hearing to provide the district with an 2762
opportunity to demonstrate that it made a good faith effort to 2763
report data as required by this section. The hearing shall be 2764
conducted by a referee appointed by the department. Based on the 2765
information provided in the hearing, the referee shall recommend 2766
whether the department should issue a revised report card for the 2767
district. If the referee affirms the department's contention that 2768
the district did not make a good faith effort to report data as 2769
required by this section, the district shall bear the full cost of 2770
conducting the hearing and of issuing any revised report card.2771

       (7) If the department determines that any inaccurate data 2772
reported under this section caused a school district to receive 2773
excess state funds in any fiscal year, the district shall 2774
reimburse the department an amount equal to the excess funds, in 2775
accordance with a payment schedule determined by the department. 2776
The department may withhold state funds due to the district for 2777
this purpose.2778

       (8) Any school district that has funds withheld under 2779
division (L)(2) of this section may appeal the withholding in 2780
accordance with Chapter 119. of the Revised Code.2781

       (9) In all cases of a disagreement between the department and 2782
a school district regarding the appropriateness of an action taken 2783
under division (L)(2) of this section, the burden of proof shall 2784
be on the district to demonstrate that it made a good faith effort 2785
to report data as required by this section.2786

       (10) The state board of education shall adopt rules under 2787
Chapter 119. of the Revised Code to implement division (L) of this 2788
section.2789

       (M) No information technology center or school district shall 2790
acquire, change, or update its student administration software 2791
package to manage and report data required to be reported to the 2792
department unless it converts to a student software package that 2793
is certified by the department.2794

       (N) The state board of education, in accordance with sections 2795
3319.31 and 3319.311 of the Revised Code, may suspend or revoke a 2796
license as defined under division (A) of section 3319.31 of the 2797
Revised Code that has been issued to any school district employee 2798
found to have willfully reported erroneous, inaccurate, or 2799
incomplete data to the education management information system.2800

       (O) No person shall release or maintain any information about 2801
any student in violation of this section. Whoever violates this 2802
division is guilty of a misdemeanor of the fourth degree.2803

       (P) The department shall disaggregate the data collected 2804
under division (B)(1)(n) of this section according to the race and 2805
socioeconomic status of the students assessed. No data collected 2806
under that division shall be included on the report cards required 2807
by section 3302.03 of the Revised Code.2808

       (Q) If the department cannot compile any of the information 2809
required by division (C)(5) of section 3302.03 of the Revised Code 2810
based upon the data collected under this section, the department 2811
shall develop a plan and a reasonable timeline for the collection 2812
of any data necessary to comply with that division.2813

       Sec. 3769.041.  (A) Any information concerning the following 2814
that is submitted, collected, or gathered as part of an 2815
application to the state racing commission for a license or permit 2816
under this chapter is confidential and not subject to disclosure 2817
by a state agency or political subdivision as a public record 2818
under section 149.43 of the Revised Code:2819

       (1) A minor child of an applicant; 2820

       (2) The social security number, passport number, or federal 2821
tax identification number of an applicant or of the spouse of an 2822
applicant;2823

       (3) The home address and telephone number of an applicant or 2824
of the spouse or dependent of an applicant;2825

       (4) An applicant's birth certificate; 2826

       (5) The driver's license number of an applicant or of the 2827
applicant's spouse;2828

       (6) The name or address of a previous spouse of the 2829
applicant;2830

       (7) The date of birth of the applicant and of the spouse of 2831
an applicant;2832

       (8) The place of birth of the applicant and of the spouse of 2833
an applicant;2834

       (9) The personal financial information and records of an 2835
applicant or of an employee or the spouse or dependent of an 2836
applicant, including tax returns and information, and records of 2837
criminal proceedings;2838

       (10) Any information concerning a victim of domestic 2839
violence, sexual assault, or stalking;2840

       (11) The electronic mail address of the spouse or family 2841
member of the applicant;2842

       (12) Any trade secret, medical records, and patents or 2843
exclusive licenses;2844

       (13) Security information, including risk prevention plans, 2845
detection and countermeasures, location of count rooms or other 2846
money storage areas, emergency management plans, security and 2847
surveillance plans, equipment and usage protocols, and theft and 2848
fraud prevention plans and countermeasures;2849

       (14) Information provided in a multijurisdictional personal 2850
history disclosure form, including the Ohio supplement, exhibits, 2851
attachments, and updates.2852

       (B) Notwithstanding any other law to the contrary, upon 2853
written request from a person, the commission shall provide the 2854
following information to the person, except as provided in this 2855
chapter:2856

       (1) The information provided under this chapter concerning a 2857
licensee, permit holder, or an applicant;2858

       (2) A copy of a letter providing the reasons for the denial 2859
of an applicant's license or permit and a copy of a letter 2860
providing the reasons for the commission's refusal to allow an 2861
applicant to withdraw the applicant's application, but with 2862
confidential information redacted if that information is the 2863
reason for the denial or refusal to withdraw.2864

       (C) The individual's name, the individual's place of 2865
employment, the individual's job title, and the individual's 2866
gaming experience that is provided for an individual who holds, 2867
held, or has applied for a license or permit under this chapter is 2868
not confidential. The reason for denial or revocation of a license 2869
or permit or for disciplinary action against the individual is not 2870
confidential. The cover sheet completed by an applicant for a key 2871
employee license is not confidential.2872

       (D) A person who holds, held, or has applied for a license or 2873
permit under this chapter may waive the confidentiality 2874
requirements of division (A) of this section.2875

       (E) Confidential information received by the commission from 2876
another jurisdiction relating to a person who holds, held, or has 2877
applied for a license or permit under this chapter is confidential 2878
and not subject to disclosure as a public record under section 2879
149.43 of the Revised Code. The commission may share the 2880
information referenced in this division with, or disclose the 2881
information to, the inspector general, any appropriate prosecuting 2882
authority, any law enforcement agency, or any other appropriate 2883
governmental or licensing agency, if the agency that receives the 2884
information complies with the same requirements regarding 2885
confidentiality as those with which the commission must comply.2886

       Sec. 3769.08.  (A) Any person holding a permit to conduct a 2887
horse-racing meeting may provide a place in the race meeting 2888
grounds or enclosure at which the permit holder may conduct and 2889
supervise the pari-mutuel system of wagering by patrons of legal 2890
age on the live racing programs and simulcast racing programs 2891
conducted by the permit holder.2892

       The pari-mutuel method of wagering upon the live racing 2893
programs and simulcast racing programs held at or conducted within 2894
such race track, and at the time of such horse-racing meeting, or 2895
at other times authorized by the state racing commission, shall 2896
not be unlawful. No other place, except that provided and 2897
designated by the permit holder and except as provided in section 2898
3769.26 of the Revised Code, nor any other method or system of 2899
betting or wagering, except the pari-mutuel system, shall be used 2900
or permitted by the permit holder; nor, except as provided in 2901
section 3769.089 or 3769.26 of the Revised Code, shall the 2902
pari-mutuel system of wagering be conducted by the permit holder 2903
on any races except the races at the race track, grounds, or 2904
enclosure for which the person holds a permit. Each permit holder 2905
may retain as a commission an amount not to exceed eighteen per 2906
cent of the total of all moneys wagered.2907

       The pari-mutuel wagering authorized by this section is 2908
subject to sections 3769.25 to 3769.28 of the Revised Code.2909

       (B) At the close of each racing day, each permit holder 2910
authorized to conduct thoroughbred racing, out of the amount 2911
retained on that day by the permit holder, shall pay by check, 2912
draft, or money order to the tax commissioner, as a tax, a sum 2913
equal to the following percentages of the total of all moneys 2914
wagered on live racing programs on that day and shall separately 2915
compute and pay by check, draft, or money order to the tax 2916
commissioner, as a tax, a sum equal to the following percentages 2917
of the total of all money wagered on simulcast racing programs on 2918
that day:2919

       (1) One per cent of the first two hundred thousand dollars 2920
wagered, or any part of that amount;2921

       (2) Two per cent of the next one hundred thousand dollars 2922
wagered, or any part of that amount;2923

       (3) Three per cent of the next one hundred thousand dollars 2924
wagered, or any part of that amount;2925

       (4) Four per cent of all sums over four hundred thousand 2926
dollars wagered.2927

       Except as otherwise provided in section 3769.089 of the 2928
Revised Code, each permit holder authorized to conduct 2929
thoroughbred racing shall use for purse money a sum equal to fifty 2930
per cent of the pari-mutuel revenues retained by the permit holder 2931
as a commission after payment of the state tax. This fifty per 2932
cent payment shall be in addition to the purse distribution from 2933
breakage specified in this section.2934

       Subject to division (M) of this section, from the moneys paid 2935
to the tax commissioner by thoroughbred racing permit holders, 2936
one-half of one per cent of the total of all moneys so wagered on 2937
a racing day shall be paid into the Ohio fairs fund created by 2938
section 3769.082 of the Revised Code, one and one-eighth per cent 2939
of the total of all moneys so wagered on a racing day shall be 2940
paid into the Ohio thoroughbred race fund created by section 2941
3769.083 of the Revised Code, and one-quarter of one per cent of 2942
the total of all moneys wagered on a racing day by each permit 2943
holder shall be paid into the state racing commission operating 2944
fund created by section 3769.03 of the Revised Code. The required 2945
payment to the state racing commission operating fund does not 2946
apply to county and independent fairs and agricultural societies. 2947
The remaining moneys may be retained by the permit holder, except 2948
as provided in this section with respect to the odd cents 2949
redistribution. Amounts paid into the nursing home franchise 2950
permit fee fund pursuant to this section and section 3769.26 of 2951
the Revised Code shall be used solely for the support of the 2952
PASSPORT program as determined in appropriations made by the 2953
general assembly. If the PASSPORT program is abolished, the amount 2954
that would have been paid to the nursing home franchise permit fee 2955
fund under this chapter shall be paid to the general revenue fund 2956
of the state. As used in this chapter, "PASSPORT program" means 2957
the PASSPORT program created under section 173.40 of the Revised 2958
Code.2959

       The total amount paid to the Ohio thoroughbred race fund 2960
under this section and division (A) of section 3769.087 of the 2961
Revised Code shall not exceed by more than six per cent the total 2962
amount paid to this fund under this section and division (A) of2963
that section during the immediately preceding calendar year.2964

       Each year, the total amount calculated for payment into the 2965
Ohio fairs fund under this division, division (C) of this section, 2966
and division (A) of section 3769.087 of the Revised Code shall be 2967
an amount calculated using the percentages specified in this 2968
division, division (C) of this section, and division (A) of 2969
section 3769.087 of the Revised Code.2970

       A permit holder may contract with a thoroughbred horsemen's 2971
organization for the organization to act as a representative of 2972
all thoroughbred owners and trainers participating in a 2973
horse-racing meeting conducted by the permit holder. A 2974
"thoroughbred horsemen's organization" is any corporation or 2975
association that represents, through membership or otherwise, more 2976
than one-half of the aggregate of all thoroughbred owners and 2977
trainers who were licensed and actively participated in racing 2978
within this state during the preceding calendar year. Except as 2979
otherwise provided in this paragraph, any moneys received by a 2980
thoroughbred horsemen's organization shall be used exclusively for 2981
the benefit of thoroughbred owners and trainers racing in this 2982
state through the administrative purposes of the organization, 2983
benevolent activities on behalf of the horsemen, promotion of the 2984
horsemen's rights and interests, and promotion of equine research. 2985
A thoroughbred horsemen's organization may expend not more than an 2986
aggregate of five per cent of its annual gross receipts, or a 2987
larger amount as approved by the organization, for dues, 2988
assessments, and other payments to all other local, national, or 2989
international organizations having as their primary purposes the 2990
promotion of thoroughbred horse racing, thoroughbred horsemen's 2991
rights, and equine research.2992

       (C) Except as otherwise provided in division (B) of this 2993
section, at the close of each racing day, each permit holder 2994
authorized to conduct harness or quarter horse racing, out of the 2995
amount retained that day by the permit holder, shall pay by check, 2996
draft, or money order to the tax commissioner, as a tax, a sum 2997
equal to the following percentages of the total of all moneys 2998
wagered on live racing programs and shall separately compute and 2999
pay by check, draft, or money order to the tax commissioner, as a 3000
tax, a sum equal to the following percentages of the total of all 3001
money wagered on simulcast racing programs on that day:3002

       (1) One per cent of the first two hundred thousand dollars 3003
wagered, or any part of that amount;3004

       (2) Two per cent of the next one hundred thousand dollars 3005
wagered, or any part of that amount;3006

       (3) Three per cent of the next one hundred thousand dollars 3007
wagered, or any part of that amount;3008

       (4) Four per cent of all sums over four hundred thousand 3009
dollars wagered.3010

       Except as otherwise provided in division (B) and subject to 3011
division (M) of this section, from the moneys paid to the tax 3012
commissioner by permit holders authorized to conduct harness or 3013
quarter horse racing, one-half of one per cent of all moneys 3014
wagered on that racing day shall be paid into the Ohio fairs fund; 3015
from the moneys paid to the tax commissioner by permit holders 3016
authorized to conduct harness racing, five-eighths of one per cent 3017
of all moneys wagered on that racing day shall be paid into the 3018
Ohio standardbred development fund; and from the moneys paid to 3019
the tax commissioner by permit holders authorized to conduct 3020
quarter horse racing, five-eighths of one per cent of all moneys 3021
wagered on that racing day shall be paid into the Ohio quarter 3022
horse development fund.3023

       (D) In addition, subject to division (M) of this section, 3024
beginning on January 1, 1996, from the money paid to the tax 3025
commissioner as a tax under this section and division (A) of 3026
section 3769.087 of the Revised Code by harness horse permit 3027
holders, one-half of one per cent of the amount wagered on a 3028
racing day shall be paid into the Ohio standardbred development 3029
fund. Beginning January 1, 1998, the payment to the Ohio 3030
standardbred development fund required under this division does 3031
not apply to county agricultural societies or independent 3032
agricultural societies.3033

       The total amount paid to the Ohio standardbred development 3034
fund under this division, division (C) of this section, and 3035
division (A) of section 3769.087 of the Revised Code and the total 3036
amount paid to the Ohio quarter horse development fund under this 3037
division and division (A) of that section shall not exceed by more 3038
than six per cent the total amount paid into the fund under this 3039
division, division (C) of this section, and division (A) of 3040
section 3769.087 of the Revised Code in the immediately preceding 3041
calendar year.3042

       (E) Subject to division (M) of this section, from the money 3043
paid as a tax under this chapter by harness and quarter horse 3044
permit holders, one-quarter of one per cent of the total of all 3045
moneys wagered on a racing day by each permit holder shall be paid 3046
into the state racing commission operating fund created by section 3047
3769.03 of the Revised Code. This division does not apply to 3048
county and independent fairs and agricultural societies.3049

       (F) Except as otherwise provided in section 3769.089 of the 3050
Revised Code, each permit holder authorized to conduct harness 3051
racing shall pay to the harness horsemen's purse pool a sum equal 3052
to fifty per cent of the pari-mutuel revenues retained by the 3053
permit holder as a commission after payment of the state tax. This 3054
fifty per cent payment is to be in addition to the purse 3055
distribution from breakage specified in this section.3056

       (G) In addition, each permit holder authorized to conduct 3057
harness racing shall be allowed to retain the odd cents of all 3058
redistribution to be made on all mutual contributions exceeding a 3059
sum equal to the next lowest multiple of ten.3060

       Forty per cent of that portion of that total sum of such odd 3061
cents shall be used by the permit holder for purse money for Ohio 3062
sired, bred, and owned colts, for purse money for Ohio bred 3063
horses, and for increased purse money for horse races. Upon the 3064
formation of the corporation described in section 3769.21 of the 3065
Revised Code to establish a harness horsemen's health and 3066
retirement fund, twenty-five per cent of that portion of that 3067
total sum of odd cents shall be paid at the close of each racing 3068
day by the permit holder to that corporation to establish and fund 3069
the health and retirement fund. Until that corporation is formed, 3070
that twenty-five per cent shall be paid at the close of each 3071
racing day by the permit holder to the tax commissioner or the tax 3072
commissioner's agent in the county seat of the county in which the 3073
permit holder operates race meetings. The remaining thirty-five 3074
per cent of that portion of that total sum of odd cents shall be 3075
retained by the permit holder.3076

       (H) In addition, each permit holder authorized to conduct 3077
thoroughbred racing shall be allowed to retain the odd cents of 3078
all redistribution to be made on all mutuel contributions 3079
exceeding a sum equal to the next lowest multiple of ten. Twenty 3080
per cent of that portion of that total sum of such odd cents shall 3081
be used by the permit holder for increased purse money for horse 3082
races. Upon the formation of the corporation described in section 3083
3769.21 of the Revised Code to establish a thoroughbred horsemen's 3084
health and retirement fund, forty-five per cent of that portion of 3085
that total sum of odd cents shall be paid at the close of each 3086
racing day by the permit holder to that corporation to establish 3087
and fund the health and retirement fund. Until that corporation is 3088
formed, that forty-five per cent shall be paid by the permit 3089
holder to the tax commissioner or the tax commissioner's agent in 3090
the county seat of the county in which the permit holder operates 3091
race meetings, at the close of each racing day. The remaining 3092
thirty-five per cent of that portion of that total sum of odd 3093
cents shall be retained by the permit holder.3094

       (I) In addition, each permit holder authorized to conduct 3095
quarter horse racing shall be allowed to retain the odd cents of 3096
all redistribution to be made on all mutuel contributions 3097
exceeding a sum equal to the next lowest multiple of ten, subject 3098
to a tax of twenty-five per cent on that portion of the total sum 3099
of such odd cents that is in excess of two thousand dollars during 3100
a calendar year, which tax shall be paid at the close of each 3101
racing day by the permit holder to the tax commissioner or the tax 3102
commissioner's agent in the county seat of the county within which 3103
the permit holder operates race meetings. Forty per cent of that 3104
portion of that total sum of such odd cents shall be used by the 3105
permit holder for increased purse money for horse races. The 3106
remaining thirty-five per cent of that portion of that total sum 3107
of odd cents shall be retained by the permit holder.3108

       (J)(1) To encourage the improvement of racing facilities for 3109
the benefit of the public, breeders, and horse owners, and to 3110
increase the revenue to the state from the increase in pari-mutuel 3111
wagering resulting from those improvements, the taxes paid by a 3112
permit holder to the state as provided for in this chapter shall 3113
be reduced by three-fourths of one per cent of the total amount 3114
wagered for those permit holders who make capital improvements to 3115
existing race tracks or construct new race tracks. The percentage 3116
of the reduction that may be taken each racing day shall equal 3117
seventy-five per cent of the taxes levied under divisions (B) and 3118
(C) of this section and section 3769.087 of the Revised Code, and 3119
division (F)(2) of section 3769.26 of the Revised Code, as 3120
applicable, divided by the calculated amount each fund should 3121
receive under divisions (B) and (C) of this section and section 3122
3769.087 of the Revised Code, and division (F)(2) of section 3123
3769.26 of the Revised Code and the reduction provided for in this 3124
division. If the resulting percentage is less than one, that 3125
percentage shall be multiplied by the amount of the reduction 3126
provided for in this division. Otherwise, the permit holder shall 3127
receive the full reduction provided for in this division. The 3128
amount of the allowable reduction not received shall be carried 3129
forward and applied against future tax liability. After any 3130
reductions expire, any reduction carried forward shall be treated 3131
as a reduction as provided for in this division.3132

       If more than one permit holder is authorized to conduct 3133
racing at the facility that is being built or improved, the cost 3134
of the new race track or capital improvement shall be allocated 3135
between or among all the permit holders in the ratio that the 3136
permit holders' number of racing days bears to the total number of 3137
racing days conducted at the facility.3138

       A reduction for a new race track or a capital improvement 3139
shall start from the day racing is first conducted following the 3140
date actual construction of the new race track or each capital 3141
improvement is completed and the construction cost has been 3142
approved by the racing commission, unless otherwise provided in 3143
this section. A reduction for a new race track or a capital 3144
improvement shall continue for a period of twenty-five years for 3145
new race tracks and for fifteen years for capital improvements if 3146
the construction of the capital improvement or new race track 3147
commenced prior to March 29, 1988, and for a period of ten years 3148
for new race tracks or capital improvements if the construction of 3149
the capital improvement or new race track commenced on or after 3150
March 29, 1988, but before June 6, 2001, or until the total tax 3151
reduction reaches seventy per cent of the approved cost of the new 3152
race track or capital improvement, as allocated to each permit 3153
holder, whichever occurs first. A reduction for a new race track 3154
or a capital improvement approved after June 6, 2001, shall 3155
continue until the total tax reduction reaches one hundred per 3156
cent of the approved cost of the new race track or capital 3157
improvement, as allocated to each permit holder.3158

       A reduction granted for a new race track or a capital 3159
improvement, the application for which was approved by the racing 3160
commission after March 29, 1988, but before June 6, 2001, shall 3161
not commence nor shall the ten-year period begin to run until all 3162
prior tax reductions with respect to the same race track have 3163
ended. The total tax reduction because of capital improvements 3164
shall not during any one year exceed for all permit holders using 3165
any one track three-fourths of one per cent of the total amount 3166
wagered, regardless of the number of capital improvements made. 3167
Several capital improvements to a race track may be consolidated 3168
in an application if the racing commission approved the 3169
application prior to March 29, 1988. No permit holder may receive 3170
a tax reduction for a capital improvement approved by the racing 3171
commission on or after March 29, 1988, at a race track until all 3172
tax reductions have ended for all prior capital improvements 3173
approved by the racing commission under this section or section 3174
3769.20 of the Revised Code at that race track. If there are two 3175
or more permit holders operating meetings at the same track, they 3176
may consolidate their applications. The racing commission shall 3177
notify the tax commissioner when the reduction of tax begins and 3178
when it ends.3179

       Each fiscal year the racing commission shall submit a report 3180
to the tax commissioner, the office of budget and management, and 3181
the legislative service commission. The report shall identify each 3182
capital improvement project undertaken under this division and in 3183
progress at each race track, indicate the total cost of each 3184
project, state the tax reduction that resulted from each project 3185
during the immediately preceding fiscal year, estimate the tax 3186
reduction that will result from each project during the current 3187
fiscal year, state the total tax reduction that resulted from all 3188
such projects at all race tracks during the immediately preceding 3189
fiscal year, and estimate the total tax reduction that will result 3190
from all such projects at all race tracks during the current 3191
fiscal year.3192

       (2) In order to qualify for the reduction in tax, a permit 3193
holder shall apply to the racing commission in such form as the 3194
commission may require and shall provide full details of the new 3195
race track or capital improvement, including a schedule for its 3196
construction and completion, and set forth the costs and expenses 3197
incurred in connection with it. The racing commission shall not 3198
approve an application unless the permit holder shows that a 3199
contract for the new race track or capital improvement has been 3200
let under an unrestricted competitive bidding procedure, unless 3201
the contract is exempted by the controlling board because of its 3202
unusual nature. In determining whether to approve an application, 3203
the racing commission shall consider whether the new race track or 3204
capital improvement will promote the safety, convenience, and 3205
comfort of the racing public and horse owners and generally tend 3206
towards the improvement of racing in this state.3207

       (3) If a new race track or capital improvement is approved by 3208
the racing commission and construction has started, the tax 3209
reduction may be authorized by the commission upon presentation of 3210
copies of paid bills in excess of one hundred thousand dollars or 3211
ten per cent of the approved cost, whichever is greater. After the 3212
initial authorization, the permit holder shall present copies of 3213
paid bills. If the permit holder is in substantial compliance with 3214
the schedule for construction and completion of the new race track 3215
or capital improvement, the racing commission may authorize the 3216
continuation of the tax reduction upon the presentation of the 3217
additional paid bills. The total amount of the tax reduction 3218
authorized shall not exceed the percentage of the approved cost of 3219
the new race track or capital improvement specified in division 3220
(J)(1) of this section. The racing commission may terminate any 3221
tax reduction immediately if a permit holder fails to complete the 3222
new race track or capital improvement, or to substantially comply 3223
with the schedule for construction and completion of the new race 3224
track or capital improvement. If a permit holder fails to complete 3225
a new race track or capital improvement, the racing commission 3226
shall order the permit holder to repay to the state the total 3227
amount of tax reduced. The normal tax paid by the permit holder 3228
shall be increased by three-fourths of one per cent of the total 3229
amount wagered until the total amount of the additional tax 3230
collected equals the total amount of tax reduced.3231

       (4) As used in this section:3232

       (a) "Capital improvement" means an addition, replacement, or 3233
remodeling of a structural unit of a race track facility costing 3234
at least one hundred thousand dollars, including, but not limited 3235
to, the construction of barns used exclusively for the race track 3236
facility, backstretch facilities for horsemen, paddock facilities, 3237
new pari-mutuel and totalizator equipment and appurtenances to 3238
that equipment purchased by the track, new access roads, new 3239
parking areas, the complete reconstruction, reshaping, and 3240
leveling of the racing surface and appurtenances, the installation 3241
of permanent new heating or air conditioning, roof replacement or 3242
restoration, installations of a permanent nature forming a part of 3243
the track structure, and construction of buildings that are 3244
located on a permit holder's premises. "Capital improvement" does 3245
not include the cost of replacement of equipment that is not 3246
permanently installed, ordinary repairs, painting, and maintenance 3247
required to keep a race track facility in ordinary operating 3248
condition.3249

       (b) "New race track" includes the reconstruction of a race 3250
track damaged by fire or other cause that has been declared by the 3251
racing commission, as a result of the damage, to be an inadequate 3252
facility for the safe operation of horse racing.3253

       (c) "Approved cost" includes all debt service and interest 3254
costs that are associated with a capital improvement or new race 3255
track and that the racing commission approves for a tax reduction 3256
under division (J) of this section.3257

       (5) The racing commission shall not approve an application 3258
for a tax reduction under this section if it has reasonable cause 3259
to believe that the actions or negligence of the permit holder 3260
substantially contributed to the damage suffered by the track due 3261
to fire or other cause. The racing commission shall obtain any 3262
data or information available from a fire marshal, law enforcement 3263
official, or insurance company concerning any fire or other damage 3264
suffered by a track, prior to approving an application for a tax 3265
reduction.3266

       (6) The approved cost to which a tax reduction applies shall 3267
be determined by generally accepted accounting principles and 3268
verified by an audit of the permit holder's records upon 3269
completion of the project by the racing commission, or by an 3270
independent certified public accountant selected by the permit 3271
holder and approved by the commission.3272

       (K) No other license or excise tax or fee, except as provided 3273
in sections 3769.01 to 3769.14 of the Revised Code, shall be 3274
assessed or collected from such licensee by any county, township, 3275
district, municipal corporation, or other body having power to 3276
assess or collect a tax or fee. That portion of the tax paid under 3277
this section by permit holders for racing conducted at and during 3278
the course of an agricultural exposition or fair, and that portion 3279
of the tax that would have been paid by eligible permit holders 3280
into the nursing home franchise permit fee fund as a result of 3281
racing conducted at and during the course of an agricultural 3282
exposition or fair, shall be deposited into the state treasury to 3283
the credit of the horse racing tax fund, which is hereby created 3284
for the use of the agricultural societies of the several counties 3285
in which the taxes originate. The state racing commission shall 3286
determine eligible permit holders for purposes of the preceding 3287
sentence, taking into account the breed of horse, the racing 3288
dates, the geographic proximity to the fair, and the best 3289
interests of Ohio racing. On the first day of any month on which 3290
there is money in the fund, the tax commissioner shall provide for 3291
payment to the treasurer of each agricultural society the amount 3292
of the taxes collected under this section upon racing conducted at 3293
and during the course of any exposition or fair conducted by the 3294
society.3295

       (L) From the tax paid under this section by harness track 3296
permit holders, the tax commissioner shall pay into the Ohio 3297
thoroughbred race fund a sum equal to a percentage of the amount 3298
wagered upon which the tax is paid. The percentage shall be 3299
determined by the tax commissioner and shall be rounded to the 3300
nearest one-hundredth. The percentage shall be such that, when 3301
multiplied by the amount wagered upon which tax was paid by the 3302
harness track permit holders in the most recent year for which 3303
final figures are available, it results in a sum that 3304
substantially equals the same amount of tax paid by the tax 3305
commissioner during that year into the Ohio fairs fund from taxes 3306
paid by thoroughbred permit holders. This division does not apply 3307
to county and independent fairs and agricultural societies.3308

       (M) Twenty-five per cent of the taxes levied on thoroughbred 3309
racing permit holders, harness racing permit holders, and quarter 3310
horse racing permit holders under this section, division (A) of 3311
section 3769.087 of the Revised Code, and division (F)(2) of 3312
section 3769.26 of the Revised Code shall be paid into the nursing 3313
home franchise permit fee fund. The tax commissioner shall pay any 3314
money remaining, after the payment into the nursing home franchise 3315
permit fee fund and the reductions provided for in division (J) of 3316
this section and in section 3769.20 of the Revised Code, into the 3317
Ohio fairs fund, Ohio thoroughbred race fund, Ohio standardbred 3318
development fund, Ohio quarter horse fund, and state racing 3319
commission operating fund as prescribed in this section and 3320
division (A) of section 3769.087 of the Revised Code. The tax 3321
commissioner shall thereafter use and apply the balance of the 3322
money paid as a tax by any permit holder to cover any shortage in 3323
the accounts of such funds resulting from an insufficient payment 3324
as a tax by any other permit holder. The moneys received by the 3325
tax commissioner shall be deposited weekly and paid by the tax 3326
commissioner into the funds to cover the total aggregate amount 3327
due from all permit holders to the funds, as calculated under this 3328
section and division (A) of section 3769.087 of the Revised Code, 3329
as applicable. If, after the payment into the nursing home 3330
franchise permit fee fund, sufficient funds are not available from 3331
the tax deposited by the tax commissioner to pay the required 3332
amounts into the Ohio fairs fund, Ohio standardbred development 3333
fund, Ohio thoroughbred race fund, Ohio quarter horse fund, and 3334
the state racing commission operating fund, the tax commissioner 3335
shall prorate on a proportional basis the amount paid to each of 3336
the funds. Any shortage to the funds as a result of a proration 3337
shall be applied against future deposits for the same calendar 3338
year when funds are available. After this application, the tax 3339
commissioner shall pay any remaining money paid as a tax by all 3340
permit holders into the nursing home franchise permit fee fund. 3341
This division does not apply to permit holders conducting racing 3342
at the course of an agricultural exposition or fair as described 3343
in division (K) of this section.3344

       Sec. 3769.087.  (A) In addition to the commission of eighteen 3345
per cent retained by each permit holder as provided in section 3346
3769.08 of the Revised Code, each permit holder shall retain an 3347
additional amount equal to four per cent of the total of all 3348
moneys wagered on each racing day on all wagering pools other than 3349
win, place, and show, of which amount retained an amount equal to 3350
three per cent of the total of all moneys wagered on each racing 3351
day on those pools shall be paid by check, draft, or money order 3352
to the tax commissioner, as a tax. Subject to the restrictions 3353
contained in divisions (B), (C), and (M) of section 3769.08 of the 3354
Revised Code, from such additional moneys paid to the tax 3355
commissioner:3356

       (1) Four-sixths shall be allocated to fund distribution as 3357
provided in division (M) of section 3769.08 of the Revised Code.3358

       (2) One-twelfth shall be paid into the Ohio fairs fund 3359
created by section 3769.082 of the Revised Code.3360

       (3) One-twelfth of the additional moneys paid to the tax 3361
commissioner by thoroughbred racing permit holders shall be paid 3362
into the Ohio thoroughbred race fund created by section 3769.083 3363
of the Revised Code.3364

       (4) One-twelfth of the additional moneys paid to the tax 3365
commissioner by harness horse racing permit holders shall be paid 3366
to the Ohio standardbred development fund created by section 3367
3769.085 of the Revised Code.3368

       (5) One-twelfth of the additional moneys paid to the tax 3369
commissioner by quarter horse racing permit holders shall be paid 3370
to the Ohio quarter horse development fund created by section 3371
3769.086 of the Revised Code.3372

       (6) One-sixth shall be paid into the state racing commission 3373
operating fund created by section 3769.03 of the Revised Code.3374

       The remaining one per cent that is retained of the total of 3375
all moneys wagered on each racing day on all pools other than win, 3376
place, and show, shall be retained by racing permit holders, and, 3377
except as otherwise provided in section 3769.089 of the Revised 3378
Code, racing permit holders shall use one-half for purse money and 3379
retain one-half.3380

       (B) In addition to the commission of eighteen per cent 3381
retained by each permit holder as provided in section 3769.08 of 3382
the Revised Code and the additional amount retained by each permit 3383
holder as provided in division (A) of this section, each permit 3384
holder shall retain an additional amount equal to one-half of one 3385
per cent of the total of all moneys wagered on each racing day on 3386
all wagering pools other than win, place, and show. The additional 3387
amount retained under this division shall be paid by check, draft, 3388
or money order to the tax commissioner, as a tax. The tax 3389
commissioner shall pay the amount of the tax received under this 3390
division to the state racing commission operating fund created by 3391
section 3769.03 of the Revised Code.3392

       (C) Unless otherwise agreed to by the video lottery sales 3393
agent and the applicable horsemen's association recognized by the 3394
state racing commission to represent such persons, the state 3395
racing commission may direct through rule that a percentage of the 3396
lottery sales agent's commission as determined by the state 3397
lottery commission for conducting video lottery terminal gaming on 3398
behalf of the state be paid to the state racing commission for the 3399
benefit of breeding and racing in this state. The percentage so 3400
determined shall not be less than nine per cent or more than 3401
eleven per cent of the video lottery terminal income. The 3402
aggregate of one hundred per cent of video lottery terminal income 3403
minus the lottery sales agent's commission percentage as 3404
determined by the state lottery commission plus the percentage of 3405
the lottery sale agent's commission, as determined by the state 3406
racing commission or otherwise agreed to by the video lottery 3407
sales agent and the applicable horsemen's association recognized 3408
by the state racing commission to represent such persons, for the 3409
benefit of breeding and racing in this state shall not exceed 3410
forty-five per cent of the video lottery terminal income. In 3411
addition, the state lottery commission may adopt a rule to require 3412
the lottery sales agent conducting video lottery terminal gaming 3413
on behalf of the state to disperse to the state lottery commission 3414
up to one per cent of such a lottery sales agent's commission for 3415
the purpose of providing funding support to appropriate state 3416
agencies for programs that provide for gambling addiction and 3417
other related addiction services.3418

       Sec. 3769.089.  (A) As used in this chapter:3419

       (1) "Racing day" means any day authorized under a permit 3420
holder's permit on which, at a simulcast host, either a live 3421
racing program is conducted as authorized under section 3769.07 of 3422
the Revised Code or a simulcast racing program is conducted as 3423
authorized under this section.3424

       (2) "Live racing day" means a racing day on which a live 3425
racing program is conducted by the permit holder along with 3426
simulcasts of all other available racing programs from within this 3427
state and simulcast racing programs from outside this state as 3428
authorized under this section.3429

       (3) "Live racing program" means a racing program consisting 3430
of no fewer than seven live horse races at thoroughbred tracks and 3431
nine live races at standardbred tracks and additional horse races 3432
simulcast from other facilities located either inside or outside 3433
this state, in which not more than two horse races on which 3434
pari-mutuel wagering is conducted are simulcast from facilities 3435
located outside this state. If only one racing meeting of a 3436
particular breed of horse is being held, no fewer than nine live 3437
horse races shall be held on a live racing day. If, during the 3438
course of a racing meeting at a standardbred track, the racing 3439
secretary of the permit holder determines that there is an 3440
insufficient number of entries to have a full field of eight 3441
horses for each of nine races on a live racing program, then the 3442
racing secretary of the permit holder, after consultation with the 3443
Ohio harness horsemens association, may reduce the number of live 3444
races on that live racing program from nine to either eight or 3445
seven, as the racing secretary may determine. The racing secretary 3446
shall not reduce the live racing program to less than seven live 3447
races. If during the course of a meeting at a thoroughbred track, 3448
the racing secretary of a permit holder determines that there is 3449
an insufficient number of entries to have a full field of eight 3450
horses for each of nine races on a live racing program, then the 3451
racing secretary of the permit holder, with the consent of the 3452
thoroughbred horsemens association, may reduce the number of live 3453
races on that live racing program from nine to either eight or 3454
seven, as the racing secretary may determine. The racing secretary 3455
shall not reduce the live racing program to less than seven live 3456
races. No more than seventeen races on which pari-mutuel wagering 3457
is conducted, including both live races and races simulcast from 3458
other facilities located either inside or outside this state, 3459
shall be part of a live racing program.3460

       (4) "Simulcast host" means a track or enclosure in this state 3461
where, on a racing day, a permit holder is doing one or both of 3462
the following:3463

       (a) Conducting a live racing program and offering this 3464
program for simulcasting to one or more simulcast guests and 3465
satellite facilities in this state;3466

       (b) Receiving a simulcast racing program for simulcasting to 3467
one or more simulcast guests and satellite facilities in this 3468
state.3469

       (5) "Simulcast guest" means any track or enclosure that is 3470
receiving from a simulcast host, on a day other than a racing day, 3471
a live racing program or a simulcast racing program.3472

       (6) "Simulcast racing program" means all simulcasts of horse 3473
races to a simulcast host or simulcast guest on a racing day or on 3474
any other day on which pari-mutuel wagering is conducted, but does 3475
not include any simulcast horse races from inside or outside this 3476
state that are included in a simulcast host's live racing program.3477

       (7) "Satellite facility" has the same meaning as in section 3478
3769.25 of the Revised Code.3479

       (8) "Collection and settlement agent" has the same meaning as 3480
in section 3769.0810 of the Revised Code.3481

       (9) "Special racing event" means individual races in live 3482
racing programs or simulcast racing programs, and simulcast racing 3483
programs on special event days under division (C) of this section, 3484
conducted at facilities located outside this state for which the 3485
track, racing association, or state regulatory agency conducting 3486
such races charges a simulcast host a fee for the privilege of 3487
receiving a simulcast of such races into this state that is higher 3488
than the customary and regular fee charged for simulcast races 3489
because of the status or popularity of such races.3490

       (B)(1)(a) The state racing commission shall, upon request by 3491
any permit holder, permit electronically televised simulcasts of 3492
horse races at the permit holder's track or enclosure on racing 3493
days authorized by the permit holder's permit. Except as provided 3494
in division (B) of this section, the commission shall not permit 3495
the simulcast of any simulcast racing program conducted at tracks 3496
or facilities located outside this state unless the out-of-state 3497
simulcast racing program is available at the same signal rate to 3498
all permit holders, whether serving as simulcast hosts or 3499
simulcast guests, and all satellite facilities, in this state open 3500
and operating on that day. A permit holder or satellite facility 3501
may inform the commission that it waives the right to receive the 3502
simulcast of a simulcast racing program or a race in a simulcast 3503
racing program on that day and in this event the simulcast racing 3504
program or simulcast race shall be available to all other 3505
simulcast hosts, simulcast guests, and satellite facilities open 3506
and operating in this state on that day.3507

       (b) In order for a permit holder to offer simulcasts of horse 3508
races conducted at facilities located outside this state, the 3509
permit holder shall have conducted live racing programs during the 3510
immediately preceding calendar year on a number of days that is 3511
not less than the number of regular live racing days it conducted 3512
in calendar year 1991, not including additional racing days 3513
conducted in calendar year 1991 by the permit holder at a 3514
winterized facility under a permit issued under section 3769.07 of 3515
the Revised Code, as certified by the commission. In satisfying 3516
the foregoing requirement for live racing days during the 3517
immediately preceding calendar year, a permit holder may include 3518
the number of days on which live racing programs were conducted 3519
under a permit issued under section 3769.07 of the Revised Code 3520
for additional racing days at a winterized facility. In addition, 3521
in order for a permit holder to offer simulcasts of horse races 3522
conducted at facilities located outside this state, the permit 3523
holder shall offer all simulcasts of horse races conducted in this 3524
state made available to it.3525

       In order for a permit holder to offer simulcasts of races 3526
conducted at race tracks located outside this state at the same 3527
time and during the hours in which the live races of a live racing 3528
program are being conducted at its track, a permit holder 3529
conducting a thoroughbred live racing program shall obtain the 3530
consent of the thoroughbred horsemens association and a permit 3531
holder conducting a harness live racing program shall obtain the 3532
consent of the Ohio harness horsemens association. The consent of 3533
the horsemen's organization shall not be unreasonably withheld, 3534
and shall be consistent with the interest of preserving live 3535
racing in this state. If a horsemen's organization withholds its 3536
consent, the permit holder may file an objection with the 3537
commission, which shall promptly consider the objection and 3538
determine whether the horsemen's organization's action in 3539
withholding consent is without substantial merit and, if the 3540
commission so determines, shall authorize the permit holder to 3541
simulcast the simulcast racing programs. The determination of the 3542
commission is final. A permit holder, as a simulcast host, may 3543
offer simulcast racing programs at its track or enclosure of races 3544
conducted at tracks and facilities located outside this state 3545
prior to the commencement of, and following the conclusion of, its 3546
live races without obtaining the consent of a horsemen's 3547
organization under this division.3548

       (c) Division (B)(1)(b) of this section remains in effect for 3549
each permit holder until the calendar year after that permit 3550
holder first receives a commission as a lottery sales agent for 3551
conducting video lottery terminal gaming on behalf of the state.3552

       (2) Notwithstanding section 3769.07 of the Revised Code and 3553
unless otherwise agreed to by the applicable horsemen's 3554
association and the permit holder, beginning in the calendar year 3555
after the permit holder first receives video lottery terminal 3556
income, one of the following applies as determined on a yearly 3557
basis:3558

       (a) If eleven per cent of the gross gaming revenue from video 3559
lottery terminals at the permit holder's facilities (either 3560
existing or relocated) in the previous calendar year exceeds 3561
fifteen million dollars, a permit holder shall conduct a minimum 3562
of one hundred twenty-five live racing days.3563

        (b) If eleven per cent of the gross gaming revenue from video 3564
lottery terminals at the permit holder's facilities (either 3565
existing or relocated) in the previous calendar year exceeds 3566
eleven million dollars, but is less than or equal to fifteen 3567
million dollars, a permit holder shall conduct a minimum of one 3568
hundred live racing days or the number of racing days applied for 3569
by the permit holder in calendar year 2012, whichever is greater.3570

        (c) If eleven per cent of the gross gaming revenue from video 3571
lottery terminals at the permit holder's facilities (either 3572
existing or relocated) in the previous calendar year is less than 3573
or equal to eleven million dollars, a permit holder shall conduct 3574
a minimum of seventy-five racing days or the number of racing days 3575
applied for by the permit holder for calendar year 2012, whichever 3576
is greater.3577

        In no case shall the minimum number of racing days for any 3578
permit holder exceed one hundred twenty-five racing days. 3579

       (3) For the purposes of division (B)(2) of this section, for 3580
live racing conducted at a track with more than one permit, the 3581
minimum and maximum live racing days shall apply to those permits 3582
collectively and not as a single permit.3583

       (4) In addition to the required live racing days, a permit 3584
holder shall simulcast a simulcast racing program on a minimum of 3585
three hundred sixty days each calendar year. The permit holder 3586
shall simulcast all simulcast racing programs conducted in this 3587
state and made available to the permit holder and simulcast racing 3588
programs conducted outside this state.3589

       (5) The commission may make exception to the required minimum 3590
number of live racing days or simulcast racing program days in 3591
instances of natural disaster or other unexpected circumstances as 3592
defined by the commission, in its sole discretion. For any 3593
calendar year, the horsemen's association at each track may 3594
negotiate an agreement with the permit holder for that track to 3595
reduce the number of live racing days at that track to less than 3596
the minimum live racing days required by division (B)(2)(a), (b), 3597
or (c) of this section, as applicable, or to increase the number 3598
of live racing days at that track to a number that is greater than 3599
the maximum live racing days permitted by division (B)(2)(c) of 3600
this section, subject to the approval of the commission. These 3601
negotiations shall not reduce the number of live racing days to 3602
less than fifty days per calendar year.3603

       (6) To satisfy the requirement of live racing days, a permit 3604
holder may include the number of days on which live racing 3605
programs were conducted under a permit issued under section 3606
3769.07 of the Revised Code for racing days authorized at a 3607
winterized facility.3608

       (C) The commission shall allocate to each track one racing 3609
day for each permit holder during each calendar year for the 3610
conduct of a live racing program on which a permit holder may 3611
conduct as few as one live horse race, with the remainder of the 3612
horse races on that racing day on which pari-mutuel wagering is 3613
conducted as part of the live racing program being simulcast from 3614
other tracks and facilities located either inside or outside this 3615
state. In addition, the commission may allocate to each permit 3616
holder racing days on which it may as part of a live racing 3617
program simulcast more than two horse races from facilities 3618
located outside this state if the horse races involve a national 3619
wagering pool and pari-mutuel wagering is conducted on the 3620
national wagering pool, but on such a racing day there shall in no 3621
event be more than two horse races simulcast from facilities 3622
located outside this state included in a live racing program on 3623
which separate pari-mutuel wagering is conducted. As used in this 3624
division, "national wagering pool" means an interstate or 3625
intrastate common pari-mutuel wagering pool involving two or more 3626
selections covering two or more horse races conducted at tracks 3627
located inside or outside this state.3628

       In emergency situations, the commission may authorize a live 3629
racing day at a track in which all horse races on that racing day 3630
on which pari-mutuel wagering is conducted are simulcast from 3631
tracks and facilities located either inside or outside this state 3632
with the consent of the thoroughbred horsemens association for a 3633
track conducting a thoroughbred live racing program and with the 3634
consent of the Ohio harness horsemens association for a track 3635
conducting a harness live racing program. If a horsemen's 3636
organization withholds its consent, the permit holder may file an 3637
objection with the commission, which shall promptly consider the 3638
objection and determine whether the horsemen's organization's 3639
action in withholding consent is without substantial merit and, if 3640
the commission so determines, shall authorize the permit holder to 3641
simulcast the simulcast racing programs. The determination of the 3642
commission is final.3643

       (D) On any day that a racing day has been applied for at any 3644
track in this state, each track in this state may operate as 3645
either a simulcast host or a simulcast guest and may conduct, with 3646
the approval of the state racing commission, pari-mutuel wagering 3647
on all simulcasts of races conducted inside this state made 3648
available to it plus all simulcasts of races conducted at 3649
facilities located outside this state as determined by the 3650
simulcast hosts. Except as otherwise provided in this section, any 3651
simulcast host or simulcast guest may receive and conduct 3652
simulcast racing programs that feature any breed of horse at any 3653
time of day, as authorized by the commission. Those persons 3654
holding state fair, county fair, or other fair permits shall not 3655
receive a simulcast racing program on which pari-mutuel wagering 3656
is conducted, except that a holder of a permit issued under 3657
section 3769.07 of the Revised Code that has been authorized by 3658
the commission to conduct races of the state fair, a county fair, 3659
or other fair at a commercial track may receive and conduct 3660
simulcast racing programs as a simulcast host or simulcast guest 3661
at the same time in conjunction with the live racing program of 3662
the state fair, county fair, or other fair permit holder conducted 3663
at its track.3664

       The simulcast hosts, with the approval of the state racing 3665
commission, shall determine which simulcast racing programs 3666
offered by race tracks located outside this state will be 3667
simulcast at their tracks and at all simulcast hosts, simulcast 3668
guests, and satellite facilities in this state that are open and 3669
operating during the hours that the simulcast hosts are operating. 3670
Simulcast guests and satellite facilities shall receive all 3671
approved simulcast racing programs offered by simulcast hosts. In 3672
addition, a simulcast host and simulcast guest, with the approval 3673
of the commission, may also receive simulcast horse races and 3674
simulcast racing programs not agreed to by simulcast hosts.3675

       A simulcast host that normally operates during the day only 3676
may serve as a simulcast host for only day-simulcast racing 3677
programs, which include all simulcast racing programs that 3678
commence at a track located outside this state on or before four 3679
p.m. A simulcast host that normally operates during the evening 3680
only may serve as a simulcast host for only evening-simulcast 3681
racing programs, which include all simulcast racing programs that 3682
commence at a track located outside this state on or after three 3683
p.m. A simulcast host that normally operates during the evening, 3684
but that under its permit conducts live racing programs during the 3685
day, may serve as a simulcast host for day-simulcast racing 3686
programs. A permit holder that is offering at its track simulcast 3687
racing programs that commence at a track located outside this 3688
state on or before four p.m. and simulcast racing programs that 3689
commence at a track located outside this state on or after three 3690
p.m. may serve as a simulcast host for both the day-simulcast 3691
racing program and the evening-simulcast racing program only if no 3692
other permit holder is serving as a simulcast host for the other 3693
simulcast racing programs. The times listed in this and the 3694
immediately following paragraphs are standard time as described in 3695
section 1.04 of the Revised Code and in the "Uniform Time Act of 3696
1966," 80 Stat. 107, 15 U.S.C. 260 to 265. 3697

       If a simulcast host is conducting a racing program that 3698
features thoroughbred or quarter horses on the same day that 3699
another simulcast host is conducting a live racing program that 3700
features harness horses at a track located in the same county as, 3701
or within twenty miles of, the track of the first simulcast host, 3702
the first simulcast host shall not conduct pari-mutuel wagering on 3703
simulcast racing programs that commence after four p.m. on that 3704
day and the second simulcast host shall not conduct wagering on 3705
simulcast racing programs that commence before three p.m. on that 3706
day.3707

       A simulcast host that is conducting a live racing program and 3708
is simulcasting that program to other simulcast hosts and 3709
simulcast guests in this state shall receive from each simulcast 3710
host and each simulcast guest receiving the simulcast an 3711
intrastate simulcast fee of one and three-eighths per cent of the 3712
amounts wagered on such simulcast racing program at its 3713
facilities. The simulcast hosts and simulcast guests receiving 3714
such simulcast racing program shall pay the intrastate simulcast 3715
fee to the collection and settlement agent, and the fee shall be 3716
disbursed by the agent, at the time and in the manner provided in 3717
section 3769.0810 of the Revised Code.3718

       (E)(1) The moneys wagered on simulcast racing programs on a 3719
racing day shall be separated from the moneys wagered on the live 3720
racing program on that racing day. From the moneys wagered on the 3721
simulcast races, each permit holder may retain as a commission the 3722
percentage of the amount wagered as specified in sections 3769.08 3723
and 3769.087 of the Revised Code, as applicable, and shall pay, by 3724
check, draft, or money order to the state tax commissioner, as a 3725
tax, the tax specified in sections 3769.08 and 3769.087 of the 3726
Revised Code, as applicable. From the tax collected, the tax 3727
commissioner shall make the distributions to the respective funds, 3728
and in the proper amounts, as required by sections 3769.08 and 3729
3769.087 of the Revised Code, as applicable. Except as provided in 3730
divisionsdivision (E)(2) and (3) of this section, from the amount 3731
remaining after the payment of state taxes on the moneys wagered 3732
on live racing programs and on the moneys wagered on simulcast 3733
racing programs, a permit holder shall retain an amount equal to 3734
two and three-eightsthree-eighths per cent of the amount wagered 3735
on live racing programs and on intrastate and interstate simulcast 3736
racing programs simulcast at its track and on the amount wagered 3737
on the live racing programs and simulcast racing programs at a 3738
satellite facility allocated to it under section 3769.26 of the 3739
Revised Code, as a fee to pay for those costs associated with the 3740
reception and transmission of simulcasts and the administrative 3741
cost of the conduct of live racing programs and simulcast racing 3742
programs. From the remaining balance, one-half shall be retained 3743
by the permit holder for purses. On a day when a permit holder 3744
conducts a live racing program, all purse money generated from 3745
wagering on live racing programs and on simulcast racing programs 3746
at its track shall be used for that permit holder's purse account. 3747
On a day when a permit holder operates as a simulcast host with no 3748
live racing program, or operates as a simulcast guest, all purse 3749
money generated from wagering on intrastate and interstate 3750
simulcast racing programs shall be paid to the state racing 3751
commission for deposit into the Ohio combined simulcast horse 3752
racing purse fund created under this section. In addition, on a 3753
day when a permit holder serves as a simulcast host for a 3754
satellite facility, all purse money generated from amounts wagered 3755
at the satellite facility allocated to the permit holder under 3756
section 3769.26 of the Revised Code shall be paid to the 3757
commission for deposit into the Ohio simulcast horse racing purse 3758
fund.3759

        (2) If there are not four satellite facilities in operation 3760
in this state within one year after the effective date of this 3761
sectionSeptember 19, 1996, or if there are not seven satellite 3762
facilities in operation in this state within two years after the 3763
effective date of this sectionSeptember 19, 1996, or if there are 3764
not ten satellite facilities in operation in this state within 3765
three years after the effective date of this sectionSeptember 19, 3766
1996, then in any such event the amount to be retained as a fee by 3767
the permit holder under division (E)(1) of this section shall be 3768
one and seven-eighths per cent until such time as the number of 3769
satellite facilities specified in division (E)(2) of this section 3770
are in operation. For good cause shown, the thoroughbred horsemens 3771
association and Ohio harness horsemens association may waive the 3772
requirements of division (E)(2) of this section or extend the date 3773
for compliance as to any year by filing a written notification 3774
with the state racing commission.3775

       (3) If a simulcast racing program simulcast by a simulcast 3776
host at its track or enclosure and to other simulcast hosts, 3777
simulcast guests, and satellite facilities in this state is a 3778
special racing event, the permit holder offering the special 3779
racing event and other simulcast hosts, simulcast guests, and 3780
satellite facilities receiving the special racing event shall not 3781
retain the fee provided under division (E)(1) or (2) of this 3782
section but shall retain from the moneys wagered on the special 3783
racing event an amount equal to the fee charged by the track, 3784
racing association, or state regulatory agency simulcasting the 3785
special racing event to the simulcast host. From the remaining 3786
balance, one-half shall be retained by the permit holder for 3787
purses in the manner provided in division (E)(1) of this section.3788

       A permit holder proposing to simulcast a special racing event 3789
as a simulcast host shall advise its horsemen's organization of 3790
the proposed schedule of the special racing event and obtain its 3791
consent to this schedule. The consent of the horsemen's 3792
organization shall not be unreasonably withheld and shall be 3793
consistent with the interest of preserving live racing in this 3794
state. If the horsemen's organization withholds its consent, the 3795
permit holder may file an objection with the state racing 3796
commission, which shall promptly consider the objection and 3797
determine whether the organization's action in withholding consent 3798
is without substantial merit and, if the commission so determines, 3799
shall authorize the permit holder to simulcast the special racing 3800
event. The determination of the commission is final.3801

       (F) There is hereby created in the state treasury the Ohio 3802
combined simulcast horse racing purse fund, to consist of moneys 3803
paid into it by permit holders pursuant to division (E) of this 3804
section and by satellite facilities pursuant to division (F) of 3805
section 3769.26 of the Revised Code. Moneys to the credit of the 3806
fund, including interest earned thereon, may be used by the 3807
commission for the costs of administering this division and the 3808
balance shall be distributed among permit holders no less 3809
frequently than monthly to each permit holder's purse account on 3810
order of the commission.3811

       For each calendar year, permit holders at each track shall 3812
receive a share of each distribution of the Ohio combined 3813
simulcast horse racing purse fund in the same percentage, rounded 3814
to the nearest one-hundredth of the amount of each distribution, 3815
as the average total amount wagered at the track on racing days at 3816
which live racing programs were conducted, including the amount 3817
allocated to the track under section 3769.26 of the Revised Code 3818
for live races, during the five calendar years immediately 3819
preceding the year for which the distribution is made bears to the 3820
average annual total amount wagered at all tracks in the state 3821
operating under permits issued by the state racing commission 3822
under section 3769.07, 3769.071, or 3769.072 of the Revised Code 3823
on all racing days at which live racing programs were conducted, 3824
including the amount allocated to the tracks under section 3769.26 3825
of the Revised Code for live races, during the five calendar years 3826
immediately preceding the year for which the distribution is made. 3827
By the thirty-first day of January of each year the commission 3828
shall calculate the share of the permit holders at each track for 3829
that year, shall enter the share percentages in its official 3830
records, and shall notify all permit holders of the share 3831
percentages of all tracks for that calendar year.3832

       The permit holders at each track, with the approval of the 3833
commission, shall allocate their share of the fund as distributed 3834
to the purse account of each permit holder for each race meeting.3835

       The commission shall cause to be kept accurate records of its 3836
administration of the fund, including all administrative expenses 3837
incurred by it and charged to the fund, and of distributions to 3838
permit holders. These records are public records available for 3839
inspection at any time during the regular business hours of the 3840
commission by any permit holder or horsemen's organization, by an 3841
authorized agent of the permit holder or horsemen's organization, 3842
or by any other person.3843

       (G) Upon the approval of the commission, a permit holder 3844
conducting live racing programs may transmit electronically 3845
televised simulcasts of horse races conducted at the permit 3846
holder's track to racing associations, tracks, and facilities 3847
located outside this state for the conduct of pari-mutuel wagering 3848
thereon, at the times, on the terms, and for the fee agreed upon 3849
by the permit holder and the receiving racing association, track, 3850
or facility. From the fees paid to the permit holder for such 3851
simulcasts, a permit holder shall retain for the costs of 3852
administration a fee in an amount equal to one per cent of the 3853
amount wagered on the races simulcast by the permit holder. From 3854
the remaining balance of the fee, one-half shall be retained by 3855
the permit holder for purses, except that notwithstanding the fee 3856
arrangement between the permit holder and the receiving racing 3857
association, track, or facility, the permit holder shall deposit 3858
into its purse account not less than an amount equal to 3859
three-fourths of one per cent of the amount wagered at racing 3860
associations, tracks, and facilities located outside the state on 3861
the races simulcast by the permit holder.3862

       All televised simulcasts of horse races conducted in this 3863
state to racing associations, tracks, and facilities located 3864
outside this state shall comply with the "Interstate Horse Racing 3865
Act of 1978," 92 Stat. 1811, 15 U.S.C.A. 3001 to 3007. The consent 3866
of the horsemen's organization at the track of the permit holder 3867
applying to the commission to simulcast horse races conducted at 3868
the permit holder's track to racing associations, tracks, and 3869
facilities located outside this state shall not be unreasonably 3870
withheld and shall be consistent with the interest of preserving 3871
live racing. If a horsemen's organization withholds its consent, 3872
the permit holder may file an objection with the commission, which 3873
shall promptly consider the objection and determine whether the 3874
horsemen's organization's action in withholding consent is without 3875
substantial merit and, if the commission so determines, shall 3876
authorize the permit holder to simulcast the races. The 3877
determination of the commission is final.3878

       (H)(1) The state racing commission may authorize any permit 3879
holder that is authorized to conduct live horse racing on racing 3880
days and that conducts pari-mutuel wagering on simulcasts of horse 3881
races under this section that are conducted at race tracks either 3882
inside or outside this state to conduct, supervise, and 3883
participate in interstate and intrastate common pari-mutuel 3884
wagering pools on those races in the manner provided in division 3885
(H) of this section. Except as otherwise expressly provided in 3886
division (H) of this section or in the rules of the state racing 3887
commission, the provisions of this chapter that govern pari-mutuel 3888
wagering apply to interstate or intrastate common pari-mutuel 3889
wagering pools.3890

       (2) Subject to the approval of the state racing commission, 3891
the types of wagering, calculation of the commission retained by 3892
the permit holder, tax rates, distribution of winnings, and rules 3893
of racing in effect for pari-mutuel wagering pools at the host 3894
track may govern wagers placed at a receiving track in this state 3895
and merged into an interstate or intrastate common pari-mutuel 3896
wagering pool. Breakage from interstate or intrastate common 3897
pari-mutuel wagering pools shall be calculated in accordance with 3898
the rules that govern the host track and shall be distributed 3899
among the tracks participating in the interstate or intrastate 3900
common wagering pool in a manner agreed to by the participating 3901
tracks and the host track. An interstate common pari-mutuel 3902
wagering pool formed under division (H)(3) of this section is 3903
subject to that division rather than to division (H)(2) of this 3904
section.3905

       (3) Subject to the approval of the state racing commission, 3906
an interstate common pari-mutuel wagering pool may be formed 3907
between a permit holder and one or more receiving tracks located 3908
in states other than the state in which the host track is located. 3909
The commission may approve types of wagering, calculation of the 3910
commission retained by the permit holder, tax rates, distribution 3911
of winnings, rules of racing, and calculation of breakage for such 3912
an interstate common pari-mutuel wagering pool that differ from 3913
those that would otherwise be applied in this state under this 3914
chapter but that are consistent for all tracks participating in 3915
the interstate common pari-mutuel wagering pool formed under 3916
division (H)(3) of this section.3917

       (4) As used in division (H) of this section:3918

       (a) "Host track" means a track where live horse races are 3919
conducted and offered for simulcasting to receiving tracks.3920

       (b) "Receiving track" means a track where simulcasts of races 3921
from a host track are displayed and wagered on.3922

       (I) Each permit holder is responsible for paying all costs 3923
associated with the up-link for, and reception of, simulcasts, and 3924
the conduct and operation of simulcast racing programs, for all 3925
fees and costs associated with serving as a simulcast host or 3926
simulcast guest, and for any required fees payable to the tracks, 3927
racing associations, or state regulatory agencies where simulcast 3928
racing is conducted at tracks located outside this state.3929

       (J) No license, fee, or excise tax, other than as specified 3930
in division (E) of this section, shall be assessed upon or 3931
collected from a permit holder or the owners of a permit holder in 3932
connection with, or pertaining to, the operation and conduct of 3933
simulcast racing programs in this state, by any county, township, 3934
municipal corporation, district, or other body having the 3935
authority to assess or collect a tax or fee.3936

       (K)(1) Permit holders operating tracks within the same county 3937
or adjacent counties that are conducting simulcast racing programs 3938
under this section may enter into agreements regarding the conduct 3939
of simulcast racing programs at their respective tracks and the 3940
sharing of the retained commissions therefrom, for such periods of 3941
time, upon such terms and conditions, and subject to such rights 3942
and obligations, as the contracting permit holders consider 3943
appropriate under the circumstances. Permit holders so contracting3944
shall notify the state racing commission of their entry into an 3945
agreement pursuant to this division, the names of the permit 3946
holders that are parties to the agreement, and the length of the 3947
term oftime the agreement shall be in effect.3948

       (2) Permit holders and the thoroughbred horsemens association 3949
and Ohio harness horsemens association may agree to do any of the 3950
following:3951

       (a) Increase or reduce the fees and amounts to be retained by 3952
the permit holders under this section;3953

       (b) Increase or reduce the fees and amounts to be allocated 3954
to the purse accounts orof permit holders under this section;3955

       (c) Increase or reduce the fees to be paid between and among 3956
simulcast hosts and simulcast guests under this section and under 3957
division (C) of section 3769.0810 of the Revised Code;3958

       (d) Modify, suspend, or waive the requirements set forth in 3959
division (B) of this section as to any permit holder or as to all 3960
permit holders.3961

       All permit holders and both horsemen's organizations shall 3962
approve such agreement. Any agreement entered into under division 3963
(K)(2) of this section shall set forth the effective date of any 3964
such increase or reduction, and the terms and provisions of the 3965
agreement, and a copy of the agreement shall be filed with the 3966
state racing commission.3967

       Sec. 3769.0810.  (A) As used in this section:3968

       (1) "Collection and settlement agent" means the permit holder 3969
designated by the state racing commission under division (B) of 3970
this section.3971

       (2) "Racing week" means a seven-day period commencing on a 3972
Monday and ending on a Sunday.3973

       (3) "Simulcast guest" and "simulcast host" have the same 3974
meanings as in section 3769.089 of the Revised Code.3975

       (4) "Satellite facility" has the same meaning as in section 3976
3769.25 of the Revised Code.3977

       (5) "Settlement of wagering accounts" means the exchange of 3978
funds in order to equalize payments of winning wagers at all 3979
tracks and facilities participating in a common pari-mutuel pool.3980

       (B) TheExcept as provided in division (K) of this section, 3981
the state racing commission shall annually appoint as the 3982
collection and settlement agent one or more permit holders of 3983
tracks that hold no fewer than three fifty-six-day permits issued 3984
under section 3769.07 of the Revised Code. The collection and 3985
settlement agent shall give a cash or surety bond payable to the 3986
treasurer of state in an amount set by the commission for the 3987
performance of its duties under this section, and the bond shall 3988
be filed with the commission.3989

       (C)(1) At the close of each day, each permit holder acting as 3990
a simulcast guest shall pay, by check, draft, or money order, or 3991
by wire transfer of funds, out of the money retained on that day 3992
to the collection and settlement agent an amount equal to one-half 3993
of one per cent of the total of all moneys wagered on that day on 3994
out-of-state simulcast racing programs simulcast to the simulcast 3995
guest from a simulcast host, to reimburse the simulcast host for 3996
administrative and simulcast costs.3997

       (2) Within five business days after the close of each racing 3998
week, the collection and settlement agent shall pay and distribute 3999
to each simulcast host operating during that racing week its pro 4000
rata share of the fees collected from simulcast guests during that 4001
racing week. If a simulcast host acted as a host for day-simulcast 4002
racing programs only, then its share of the fees collected by the 4003
collection and settlement agent shall be computed and based on 4004
fees paid by simulcast guests offering such day-simulcast racing 4005
programs at their tracks. If a simulcast host acted as a simulcast 4006
host for evening-simulcast racing programs only, then its share of 4007
the fees shall be computed and based on fees paid by simulcast 4008
guests offering such evening-simulcast racing programs at their 4009
tracks. In making a calculation of the amount of fees to be 4010
distributed to simulcast hosts, the collection and settlement 4011
agent shall allocate equally between the accounts of simulcast 4012
hosts conducting only day-simulcast racing programs and only 4013
evening-simulcast racing programs those fees received by the agent 4014
from simulcast guests for simulcast racing programs that commenced 4015
on or after three p.m. and on or before before four p.m. The times 4016
listed in division (C)(2) of this section are standard time as 4017
described in section 1.04 of the Revised Code and in the "Uniform 4018
Time Act of 1966," 80 Stat. 107, 15 U.S.C. 260 to 265.4019

       (D)(1) At the close of each day, each permit holder shall 4020
pay, by check, draft, or money order, or by wire transfer of 4021
funds, out of the money retained on that day to the collection and 4022
settlement agent the intrastate simulcast fee provided in division 4023
(D) of section 3769.089 of the Revised Code in the amount equal to 4024
one and three-eighths per cent of the total of all moneys wagered 4025
on that day at its track or enclosure on live races conducted in 4026
this state and simulcast to its facility.4027

       (2) Within five business days after the close of each racing 4028
week, the collection and settlement agent shall pay and distribute 4029
to permit holders that conducted live racing programs in this 4030
state during that racing week their share of the fees collected 4031
from other permit holders for that racing week.4032

       (E) At the close of each day, each permit holder and 4033
satellite facility shall pay, by check, draft, or money order, or 4034
by wire transfer of funds, out of the money retained on that day 4035
to the collection and settlement agent a sum equal to required 4036
fees due to tracks, racing associations, or state regulatory 4037
agencies located outside this state for races simulcast into this 4038
state based on the totals of all money wagered that day at its 4039
track or enclosure or satellite facility on simulcast racing 4040
programs of races conducted outside this state. The collection and 4041
settlement agent shall inform the permit holders and the satellite 4042
facilities each day of the fee charged by each track, racing 4043
association, or state regulatory agency located outside this state 4044
for the simulcast of simulcast racing programs on races conducted 4045
outside this state and simulcast into this state. The collection 4046
and settlement agent shall be responsible for paying and 4047
disbursing to these tracks, racing associations, and state 4048
regulatory agencies on a timely basis the fees collected by it 4049
from permit holders and satellite facilities under this division.4050

       (F) On or before the tenth day of each month, the collection 4051
and settlement agent shall file a report with the state racing 4052
commission showing all of the following:4053

       (1) All collections of moneys and fees from permit holders 4054
and satellite facilities during the preceding calendar month;4055

       (2) All payments and disbursements made by the agent to 4056
permit holders operating as simulcast hosts and the method of 4057
calculation of the share of each simulcast host;4058

       (3) All payments and disbursements of required fees to 4059
tracks, racing associations, and state regulatory agencies located 4060
outside this state from which there were simulcasts of simulcast 4061
racing programs into this state;4062

       (4) Such other information regarding the performance of its 4063
duties under this section as the commission may request.4064

       (G) All moneys and fees received and collected by the 4065
collection and settlement agent shall be deposited into, and 4066
disbursed from, separate bank accounts maintained with banks 4067
domiciled in this state established by the agent for this purpose, 4068
and no other funds or money of the agent or any other person shall 4069
be commingled with, deposited into, or withdrawn from the 4070
accounts. The collection and settlement agent may retain as its 4071
fee for services it provides and expenses it incurs in the 4072
performance of its duties under this section any interest earned 4073
on the bank accounts maintained by the agent under this division. 4074
The commission shall annually audit the bank account records, and 4075
the books and records, of the collection and settlement agent.4076

       (H)(1) The collection and settlement agent shall assist 4077
permit holders and satellite facilities in the settlement of 4078
wagering accounts between and among simulcast hosts, simulcast 4079
guests, and satellite facilities for intrastate simulcast racing 4080
programs.4081

       (2) The collection and settlement agent on behalf of all 4082
permit holders and satellite facilities operating in this state 4083
shall be responsible for the settlement of wagering accounts for 4084
interstate simulcast racing programs with all tracks, racing 4085
associations, and state regulatory agencies located outside this 4086
state. The agent shall notify each permit holder and satellite 4087
facility not less frequently than weekly of the amounts that may 4088
be due from it, or the amounts that may be due to it, for the 4089
settlement of wagering accounts on interstate simulcast racing 4090
programs simulcast into this state during the preceding race week. 4091
If a permit holder or satellite facility owes money for the 4092
settlement of wagering accounts for that racing week, it shall 4093
promptly pay, by check, draft, or money order, or by wire transfer 4094
of funds, to the agent the amount due. From the amounts it 4095
collects, the agent shall pay and disburse to permit holders and 4096
satellite facilities and to tracks, racing associations, and state 4097
regulatory agencies located outside this state, the amounts 4098
necessary to provide for the settlement of wagering accounts for 4099
that racing week.4100

       (I) If a permit holder or satellite facility fails to timely 4101
pay and remit to the collection and settlement agent the money and 4102
fees provided for in this section and in sections 3769.089 and 4103
3769.26 of the Revised Code, the agent shall promptly notify the 4104
commission, or if the collection and settlement agent fails to 4105
collect, pay, disburse, and account for, the moneys and fees in 4106
the manner provided for in this section, then in any such event or 4107
occurrence, based on the information in the commission's 4108
possession, the commission may issue an emergency order 4109
prohibiting the permit holder, satellite facility, or agent, as 4110
the case may be, from serving as a simulcast host or simulcast 4111
guest or from receiving any simulcast racing program, and 4112
conducting wagering thereon, at its track or satellite facility, 4113
until such time as the permit holder, satellite facility, or agent 4114
complies with the requirements of this section and sections 4115
3769.089 and 3769.26 of the Revised Code in the manner and to the 4116
extent set forth in the commission's order. In addition, the 4117
commission may make an assessment against the permit holder, 4118
satellite facility, or agent, as the case may be, based on 4119
information in the commission's possession. The commission shall 4120
give the party assessed written notice of the assessment by 4121
personal service or certified mail. All assessments not paid 4122
within thirty days after service of the notice of assessment, 4123
shall bear interest at the rate per annum prescribed by section 4124
5703.47 of the Revised Code computed from and after the date the 4125
assessment is made by the commission and entered in its official 4126
records until paid.4127

       Unless the party to whom the notice of assessment is directed 4128
files with the commission, within thirty days after service of the 4129
notice of assessment, either personally or by certified mail, a 4130
petition for reassessment in writing, signed by the party 4131
assessed, or by the party's authorized agent having knowledge of 4132
the facts, the assessment shall become conclusive and the amount 4133
of the assessment, together with interest on it, shall be due and 4134
payable from the party assessed to the commission. The petition 4135
shall indicate the objections of the party assessed, but 4136
additional objections may be raised in writing if received prior 4137
to the date shown on the final determination by the commission.4138

       Unless the petitioner waives a hearing, the commission shall 4139
assign a time and place for the hearing on the petition and notify 4140
the petitioner of the time and place of the hearing by personal 4141
service or certified mail, but the commission may continue the 4142
hearing from time to time if necessary.4143

       The commission may make such correction to its assessment as 4144
it finds proper. The commission shall serve a copy of its final 4145
determination on the petitioner by personal service or certified 4146
mail, and its decision in the matter is final, subject to appeal 4147
under section 119.12 of the Revised Code.4148

       After an assessment becomes final, if any portion of the 4149
assessment, or interest due on it, remains unpaid, a certified 4150
copy of the commission's entry making the assessment final may be 4151
filed in the office of the clerk of the court of common pleas in 4152
the county in which the track for which the permit was issued is 4153
located or the county in which the party assessed resides or has 4154
its principal place of business. If the party assessed maintains 4155
no place of business in this state and is not a resident of this 4156
state, the certified copy of the entry may be filed in the office 4157
of the clerk of the court of common pleas of Franklin county. The 4158
clerk, immediately upon the filing of such entry, shall enter a 4159
judgment for the state against the party assessed in the amount 4160
shown on the entry.4161

       From the date of the filing of the entry in the clerk's 4162
office, any unpaid portion of the assessment, including the 4163
interest, shall bear interest at the rate per annum prescribed in 4164
section 5703.47 of the Revised Code and shall have the same effect 4165
as other judgments. Execution shall issue upon the judgment upon 4166
request of the commission, and all laws applicable to sales on 4167
execution apply to sales made under the judgment.4168

       If the judgment is entered against the collection and 4169
settlement agent, the commission may immediately proceed against 4170
the agent's bond and surety for the full amount of the judgment 4171
and interest on it.4172

       Any assessment, including interest on it, paid to or 4173
collected by the commission shall be deposited with the treasurer 4174
of state to the account of the commission, and the fee portion of 4175
such amount shall be distributed by the treasurer of state on 4176
order of the commission to the collection and settlement agent or 4177
to the permit holders and satellite facilities entitled to receive 4178
such fees, as the case may be under the circumstances.4179

       (J) The commission may adopt rules for the implementation and 4180
administration of this section.4181

       (K)(1) Notwithstanding any other provision of this section, 4182
after sixty days notification to the commission, a permit holder 4183
may take responsibility for handling any payments and 4184
distributions required of a collection and settlement agent under 4185
this section for any or all related permits under common ownership 4186
in lieu of making the required payments and distributions through 4187
the collection and settlement agent designated by the state racing 4188
commission under division (B) of this section.4189

       (2) Any permit holder having responsibility for payments and 4190
distributions required under division (K)(1) of this section 4191
shall, on or before the tenth day of each month, file a report 4192
with the state racing commission showing the following:4193

       (a) All payments and disbursements made by the permit holder 4194
to permit holders operating as simulcast hosts and the method of 4195
calculation of the share of each simulcast host;4196

       (b) All payments and disbursements of required fees to 4197
tracks, racing associations, and state regulatory agencies located 4198
outside this state from which there were simulcasts of simulcast 4199
racing programs into the permit holder facilities;4200

       (c) Such other information regarding the performance of the 4201
permit holder's duties under this section as the commission may 4202
request.4203

       (3) A permit holder having responsibility for payments and 4204
distributions required under division (K)(1) of this section may 4205
utilize an authorized agent to make the required payments and 4206
distributions.4207

       Sec. 3769.0812.  Beginning in the calendar year after the 4208
first calendar year in which all thoroughbred permit holders 4209
receive a commission as a lottery sales agent for conducting video 4210
lottery terminal gaming on behalf of the state or on January 1, 4211
2015, whichever occurs first, the fees to be paid to thoroughbred 4212
jockeys shall be according to the following schedule:4213

Purse Winning Mount Second Mount Third Mount Fourth Mount Losing Mount 4214
Up to $5,999 10% of win purse $65 $60 $55 $50 4215
$6,000 to $7,799 10% of win purse $75 $70 $65 $60 4216
$10,000 to $17,999 10% of win purse 5% of place purse $75 $70 $65 4217
$18,000 to $24,999 10% of win purse 5% of place purse 5% of show purse $85 $80 4218
$25,000 to $49,999 10% of win purse 5% of place purse 5% of show purse $95 $85 4219
$50,000 to $74,999 10% of win purse 5% of place purse 5% of show purse $100 $90 4220
$75,000 and up 10% of win purse 5% of place purse 5% of show purse 5% of fourth purse $105 4221

       As used in this section, "win purse" means the amount paid 4222
the winning horse less the fees paid by the owner to enter the 4223
horse in the race.4224

       Sec. 3770.02.  (A) Subject to the advice and consent of the 4225
senate, the governor shall appoint a director of the state lottery 4226
commission who shall serve at the pleasure of the governor. The 4227
director shall devote full time to the duties of the office and 4228
shall hold no other office or employment. The director shall meet 4229
all requirements for appointment as a member of the commission and 4230
shall, by experience and training, possess management skills that 4231
equip the director to administer an enterprise of the nature of a 4232
state lottery. The director shall receive an annual salary in 4233
accordance with pay range 48 of section 124.152 of the Revised 4234
Code.4235

       (B)(1) The director shall attend all meetings of the 4236
commission and shall act as its secretary. The director shall keep 4237
a record of all commission proceedings and shall keep the 4238
commission's records, files, and documents at the commission's 4239
principal office. All records of the commission's meetings shall 4240
be available for inspection by any member of the public, upon a 4241
showing of good cause and prior notification to the director.4242

       (2) The director shall be the commission's executive officer 4243
and shall be responsible for keeping all commission records and 4244
supervising and administering the state lottery in accordance with 4245
this chapter, and carrying out all commission rules adopted under 4246
section 3770.03 of the Revised Code.4247

       (C)(1) The director shall appoint an assistant director, 4248
deputy directors of marketing, operations, sales, finance, public 4249
relations, security, and administration, and as many regional 4250
managers as are required. The director may also appoint necessary 4251
professional, technical, and clerical assistants. All such 4252
officers and employees shall be appointed and compensated pursuant 4253
to Chapter 124. of the Revised Code. Regional and assistant 4254
regional managers, sales representatives, and any lottery 4255
executive account representatives shall remain in the unclassified 4256
service.4257

       (2) The director, in consultation with the director of 4258
administrative services, may establish standards of proficiency 4259
and productivity for commission field representatives.4260

       (D) The director shall request the bureau of criminal 4261
identification and investigation, the department of public safety, 4262
or any other state, local, or federal agency to supply the 4263
director with the criminal records of any job applicant and may 4264
periodically request the criminal records of commission employees. 4265
At or prior to the time of making such a request, the director 4266
shall require a job applicant or commission employee to obtain 4267
fingerprint cards prescribed by the superintendent of the bureau 4268
of criminal identification and investigation at a qualified law 4269
enforcement agency, and the director shall cause these fingerprint 4270
cards to be forwarded to the bureau of criminal identification and 4271
investigation and the federal bureau of investigation. The 4272
commission shall assume the cost of obtaining the fingerprint 4273
cards and shall pay to each agency supplying criminal records for 4274
each investigation under this division a reasonable fee, as 4275
determined by the agency.4276

       (E) The director shall license lottery sales agents pursuant 4277
to section 3770.05 of the Revised Code and, when it is considered 4278
necessary, may revoke or suspend the license of any lottery sales 4279
agent. The director may license video lottery technology 4280
providers, independent testing laboratories, and gaming employees, 4281
and promulgate rules relating thereto. When the director considers 4282
it necessary, the director may suspend or revoke the license of a 4283
video lottery technology provider, independent testing laboratory, 4284
or gaming employee, including suspension or revocation without 4285
affording an opportunity for a prior hearing under section 119.07 4286
of the Revised Code when the public safety, convenience, or trust 4287
requires immediate action.4288

       (F) The director shall confer at least once each month with 4289
the commission, at which time the director shall advise it 4290
regarding the operation and administration of the lottery. The 4291
director shall make available at the request of the commission all 4292
documents, files, and other records pertaining to the operation 4293
and administration of the lottery. The director shall prepare and 4294
make available to the commission each month a complete and 4295
accurate accounting of lottery revenues, prize money disbursements 4296
and the cost of goods and services awarded as prizes, operating 4297
expenses, and all other relevant financial information, including 4298
an accounting of all transfers made from any lottery funds in the 4299
custody of the treasurer of state to benefit education.4300

       (G) The director may enter into contracts for the operation 4301
or promotion of the lottery pursuant to Chapter 125. of the 4302
Revised Code. 4303

       (H)(1) Pursuant to rules adopted by the commission under 4304
section 3770.03 of the Revised Code, the director shall require 4305
any lottery sales agents to either mail directly to the commission 4306
or deposit to the credit of the state lottery fund, in banking 4307
institutions designated by the treasurer of state, net proceeds 4308
due the commission as determined by the director, and to file with 4309
the director or the director's designee reports of their receipts 4310
and transactions in the sale of lottery tickets in the form 4311
required by the director.4312

       (2) Pursuant to rules adopted by the commission under Chapter 4313
119. of the Revised Code, the director may impose penalties for 4314
the failure of a sales agent to transfer funds to the commission 4315
in a timely manner. Penalties may include monetary penalties, 4316
immediate suspension or revocation of a license, or any other 4317
penalty the commission adopts by rule.4318

       (I) The director may arrange for any person, or any banking 4319
institution, to perform functions and services in connection with 4320
the operation of the lottery as the director may consider 4321
necessary to carry out this chapter.4322

       (J)(1) As used in this chapter, "statewide joint lottery 4323
game" means a lottery game that the commission sells solely within 4324
this state under an agreement with other lottery jurisdictions to 4325
sell the same lottery game solely within their statewide or other 4326
jurisdictional boundaries.4327

       (2) If the governor directs the director to do so, the 4328
director shall enter into an agreement with other lottery 4329
jurisdictions to conduct statewide joint lottery games. If the 4330
governor signs the agreement personally or by means of an 4331
authenticating officer pursuant to section 107.15 of the Revised 4332
Code, the director then may conduct statewide joint lottery games 4333
under the agreement.4334

       (3) The entire net proceeds from any statewide joint lottery 4335
games shall be used to fund elementary, secondary, vocational, and 4336
special education programs in this state.4337

       (4) The commission shall conduct any statewide joint lottery 4338
games in accordance with rules it adopts under division (B)(5) of 4339
section 3770.03 of the Revised Code.4340

       (K)(1) The director shall enter into an agreement with the 4341
department of alcohol and drug addiction services under which the 4342
department shall provide a program of gambling addiction services 4343
on behalf of the commission. The commission shall pay the costs of 4344
the program provided pursuant to the agreement.4345

        (2) As used in this section, "gambling addiction services" 4346
has the same meaning as in section 3793.01 of the Revised Code.4347

       Sec. 3770.05.  (A) As used in this section, "person" means 4348
any person, association, corporation, partnership, club, trust, 4349
estate, society, receiver, trustee, person acting in a fiduciary 4350
or representative capacity, instrumentality of the state or any of 4351
its political subdivisions, or any other combination of 4352
individuals meeting the requirements set forth in this section or 4353
established by rule or order of the state lottery commission.4354

       (B) The director of the state lottery commission may license 4355
any person as a lottery sales agent. No license shall be issued to 4356
any person or group of persons to engage in the sale of lottery 4357
tickets as the person's or group's sole occupation or business.4358

       Before issuing any license to a lottery sales agent, the 4359
director shall consider all of the following:4360

       (1) The financial responsibility and security of the 4361
applicant and the applicant's business or activity;4362

       (2) The accessibility of the applicant's place of business or 4363
activity to the public;4364

       (3) The sufficiency of existing licensed agents to serve the 4365
public interest;4366

       (4) The volume of expected sales by the applicant;4367

       (5) Any other factors pertaining to the public interest, 4368
convenience, or trust.4369

       (C) Except as otherwise provided in division (F) of this 4370
section, the director of the state lottery commission shall refuse 4371
to grant, or shall suspend or revoke, a license if the applicant 4372
or licensee:4373

       (1) Has been convicted of a felony or has been convicted of a 4374
crime involving moral turpitude;4375

       (2) Has been convicted of an offense that involves illegal 4376
gambling;4377

       (3) Has been found guilty of fraud or misrepresentation in 4378
any connection;4379

       (4) Has been found to have violated any rule or order of the 4380
commission; or4381

       (5) Has been convicted of illegal trafficking in supplemental 4382
nutrition assistance program benefits.4383

       (D) Except as otherwise provided in division (F) of this 4384
section, the director of the state lottery commission shall refuse 4385
to grant, or shall suspend or revoke, a license if the applicant 4386
or licensee is a corporation and any of the following applies:4387

       (1) Any of the corporation's directors, officers, or 4388
controlling shareholders has been found guilty of any of the 4389
activities specified in divisions (C)(1) to (5) of this section;4390

       (2) It appears to the director of the state lottery 4391
commission that, due to the experience, character, or general 4392
fitness of any director, officer, or controlling shareholder of 4393
the corporation, the granting of a license as a lottery sales 4394
agent would be inconsistent with the public interest, convenience, 4395
or trust;4396

       (3) The corporation is not the owner or lessee of the 4397
business at which it would conduct a lottery sales agency pursuant 4398
to the license applied for;4399

       (4) Any person, firm, association, or corporation other than 4400
the applicant or licensee shares or will share in the profits of 4401
the applicant or licensee, other than receiving dividends or 4402
distributions as a shareholder, or participates or will 4403
participate in the management of the affairs of the applicant or 4404
licensee.4405

       (E)(1) The director of the state lottery commission shall 4406
refuse to grant a license to an applicant for a lottery sales 4407
agent license and shall revoke a lottery sales agent license if 4408
the applicant or licensee is or has been convicted of a violation 4409
of division (A) or (C)(1) of section 2913.46 of the Revised Code.4410

       (2) The director shall refuse to grant a license to an 4411
applicant for a lottery sales agent license that is a corporation 4412
and shall revoke the lottery sales agent license of a corporation 4413
if the corporation is or has been convicted of a violation of 4414
division (A) or (C)(1) of section 2913.46 of the Revised Code.4415

       (F) The director of the state lottery commission shall 4416
request the bureau of criminal identification and investigation, 4417
the department of public safety, or any other state, local, or 4418
federal agency to supply the director with the criminal records of 4419
any applicant for a lottery sales agent license, and may 4420
periodically request the criminal records of any person to whom a 4421
lottery sales agent license has been issued. At or prior to the 4422
time of making such a request, the director shall require an 4423
applicant or licensee to obtain fingerprint impressions on 4424
fingerprint cards prescribed by the superintendent of the bureau 4425
of criminal identification and investigation at a qualified law 4426
enforcement agency, and the director shall cause those fingerprint 4427
cards to be forwarded to the bureau of criminal identification and 4428
investigation, to the federal bureau of investigation, or to both 4429
bureaus. The commission shall assume the cost of obtaining the 4430
fingerprint cards. 4431

       The director shall pay to each agency supplying criminal 4432
records for each investigation a reasonable fee, as determined by 4433
the agency. 4434

       The commission may adopt uniform rules specifying time 4435
periods after which the persons described in divisions (C)(1) to 4436
(5) and (D)(1) to (4) of this section may be issued a license and 4437
establishing requirements for those persons to seek a court order 4438
to have records sealed in accordance with law.4439

       (G)(1) Each applicant for a lottery sales agent license shall 4440
do both of the following:4441

       (a) Pay fees to the state lottery commission, if required by 4442
rule adopted by the director under Chapter 119. of the Revised 4443
Code and the permanent joint committee on gaming and wagering 4444
reviews and the controlling board approves the fees;4445

       (b) Prior to approval of the application, obtain a surety 4446
bond in an amount the director determines by rule adopted under 4447
Chapter 119. of the Revised Code or, alternatively, with the 4448
director's approval, deposit the same amount into a dedicated 4449
account for the benefit of the state lottery. The director also 4450
may approve the obtaining of a surety bond to cover part of the 4451
amount required, together with a dedicated account deposit to 4452
cover the remainder of the amount required. The director also may 4453
establish an alternative program or policy, with the approval of 4454
the commission by rule adopted under Chapter 119. of the Revised 4455
Code, that otherwise ensures the lottery's financial interests are 4456
adequately protected. If such an alternative program or policy is 4457
established, an applicant or lottery sales agent, subject to the 4458
director's approval, may be permitted to participate in the 4459
program or proceed under that policy in lieu of providing a surety 4460
bond or dedicated amount.4461

       A surety bond may be with any company that complies with the 4462
bonding and surety laws of this state and the requirements 4463
established by rules of the commission pursuant to this chapter. A 4464
dedicated account deposit shall be conducted in accordance with 4465
policies and procedures the director establishes.4466

       A surety bond, dedicated account, other established program 4467
or policy, or bothany combination of these resources, as 4468
applicable, may be used to pay for the lottery sales agent's 4469
failure to make prompt and accurate payments for lottery ticket 4470
sales, for missing or stolen lottery tickets, for damage to 4471
equipment or materials issued to the lottery sales agent, or to 4472
pay for expenses the commission incurs in connection with the 4473
lottery sales agent's license.4474

       (2) A lottery sales agent license is effective for at least4475
one year, but not more than three years.4476

       A licensed lottery sales agent, on or before the date 4477
established by the director, shall renew the agent's license and 4478
provide at that time evidence to the director that the surety 4479
bond, dedicated account deposit, or both, required under division 4480
(G)(1)(b) of this section has been renewed or is active, whichever 4481
applies. 4482

        Before the commission renews a lottery sales agent license, 4483
the lottery sales agent shall submit a renewal fee to the 4484
commission, if one is required by rule adopted by the director 4485
under Chapter 119. of the Revised Code and the permanent joint 4486
committee on gaming and wagering reviews and the controlling board 4487
approves the renewal fee. The renewal fee shall not exceed the 4488
actual cost of administering the license renewal and processing 4489
changes reflected in the renewal application. The renewal of the 4490
license is effective for up toat least one year, but not more 4491
than three years.4492

       (3) A lottery sales agent license shall be complete, 4493
accurate, and current at all times during the term of the license. 4494
Any changes to an original license application or a renewal 4495
application may subject the applicant or lottery sales agent, as 4496
applicable, to paying an administrative fee that shall be in an 4497
amount that the director determines by rule adopted under Chapter 4498
119. of the Revised Code,that the permanent joint committee on 4499
gaming and wagering reviews and that the controlling board 4500
approves, and that shall not exceed the actual cost of 4501
administering and processing the changes to an application.4502

       (4) The relationship between the commission and a lottery 4503
sales agent is one of trust. A lottery sales agent collects funds 4504
on behalf of the commission through the sale of lottery tickets 4505
for which the agent receives a compensation.4506

       (H) Pending a final resolution of any question arising under 4507
this section, the director of the state lottery commission may 4508
issue a temporary lottery sales agent license, subject to the 4509
terms and conditions the director considers appropriate.4510

       (I) If a lottery sales agent's rental payments for the 4511
lottery sales agent's premises are determined, in whole or in 4512
part, by the amount of retail sales the lottery sales agent makes, 4513
and if the rental agreement does not expressly provide that the 4514
amount of those retail sales includes the amounts the lottery 4515
sales agent receives from lottery ticket sales, only the amounts 4516
the lottery sales agent receives as compensation from the state 4517
lottery commission for selling lottery tickets shall be considered 4518
to be amounts the lottery sales agent receives from the retail 4519
sales the lottery sales agent makes, for the purpose of computing 4520
the lottery sales agent's rental payments.4521

       Sec. 3770.07.  (A)(1) Except as provided in division (A)(2) 4522
of this section, lottery prize awards shall be claimed by the 4523
holder of the winning lottery ticketproduct, or by the executor 4524
or administrator, or the trustee of a trust, of the estate of a 4525
deceased holder of a winning lottery ticketproduct, in a manner 4526
to be determined by the state lottery commission, within one 4527
hundred eighty days after the date on which the prize award was 4528
announced if the lottery game is an online game, and within one 4529
hundred eighty days after the close of the game if the lottery 4530
game is an instant game.4531

       NoAny lottery prize award with a value that meets or exceeds 4532
five hundred ninety-nine dollarsthe reportable winnings amounts 4533
set by 26 U.S.C. 6041, or a subsequent analogous section of the 4534
Internal Revenue Code, shall not be claimed by or paid to any 4535
person, as defined in section 1.59 of the Revised Code or as 4536
defined by rule or order of the state lottery commission, until 4537
the name, address, and social security number of each beneficial 4538
owner of the prize award are disclosed todocumented for the 4539
commission. Except when a beneficial owner otherwise consents in 4540
writing, in the case of a claim for a lottery prize award made by 4541
one or more beneficial owners using a trust, the name, address, 4542
and social security number of each such beneficial owner in the 4543
commission's records as a result of such a disclosure are 4544
confidential and shall not be subject to inspection or copying 4545
under section 149.43 of the Revised Code as a public record.4546

        Except as otherwise provided in division (A)(1) of this 4547
section or as otherwise provided by law, the name and address of 4548
any individual claiming a lottery prize award are subject to 4549
inspection or copying under section 149.43 of the Revised Code as 4550
a public record.4551

       (2) An eligible person serving on active military duty in any 4552
branch of the United States armed forces during a war or national 4553
emergency declared in accordance with federal law may submit a 4554
delayed claim for a lottery prize award. The eligible person shall 4555
do so by notifying the state lottery commission about the claim 4556
not later than the five hundred fortieth day after the date on 4557
which the prize award was announced if the lottery game is an 4558
online game or after the date on which the lottery game closed if 4559
the lottery game is an instant game.4560

       (3) If no valid claim to a lottery prize award is made within 4561
the prescribed period, the prize money, the cost of goods and 4562
services awarded as prizes, or, if goods or services awarded as 4563
prizes are resold by the state lottery commission, the proceeds 4564
from their sale shall be returned to the state lottery fund and 4565
distributed in accordance with section 3770.06 of the Revised 4566
Code.4567

       (4) The state lottery commission may share with other 4568
governmental agencies the name, address, and social security 4569
number of a beneficial owner disclosed to the commission under 4570
division (A)(1) of this section, as authorized under sections 4571
3770.071 and 3770.073 of the Revised Code. Any shared information 4572
as disclosed pursuant to those sections that is made confidential 4573
by division (A)(1) of this section remains confidential and shall 4574
not be subject to inspection or copying under section 149.43 of 4575
the Revised Code as a public record unless the applicable 4576
beneficial owner otherwise provides written consent.4577

       (5) As used in this division:4578

       (a) "Eligible person" means a person who is entitled to a 4579
lottery prize award and who falls into either of the following 4580
categories:4581

       (i) While on active military duty in this state, the person, 4582
as the result of a war or national emergency declared in 4583
accordance with federal law, is transferred out of this state 4584
before the one hundred eightieth day after the date on which the 4585
winner of the lottery prize award is selected.4586

       (ii) While serving in the reserve forces in this state, the 4587
person, as the result of a war or national emergency declared in 4588
accordance with federal law, is placed on active military duty and 4589
is transferred out of this state before the expiration of the one 4590
hundred eightieth day after the date on which the prize drawing 4591
occurs for an online game or before the expiration of the one 4592
hundred eightieth day following the close of an instant game as 4593
determined by the commission.4594

       (b) "Active military duty" means that a person is covered by 4595
the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50 4596
U.S.C. 501 et seq., as amended, or the "Uniformed Services 4597
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149, 4598
38 U.S.C. 4301 et seq., as amended.4599

       (c) "Each beneficial owner" means the ultimate recipient or, 4600
if there is more than one, each ultimate recipient of a lottery 4601
prize award.4602

       (B) If a prize winner, as defined in section 3770.10 of the 4603
Revised Code, is under eighteen years of age, or is under some 4604
other legal disability, and the prize money or the cost of goods 4605
or services awarded as a prize exceeds one thousand dollars, the 4606
director of the state lottery commission shall order that payment 4607
be made to the order of the legal guardian of that prize winner. 4608
If the amount of the prize money or the cost of goods or services 4609
awarded as a prize is one thousand dollars or less, the director 4610
may order that payment be made to the order of the adult member, 4611
if any, of that prize winner's family legally responsible for the 4612
care of that prize winner.4613

       (C) No right of any prize winner, as defined in section 4614
3770.10 of the Revised Code, to a prize award shall be the subject 4615
of a security interest or used as collateral.4616

       (D)(1) No right of any prize winner, as defined in section 4617
3770.10 of the Revised Code, to a prize award shall be assignable 4618
except as follows: when the payment is to be made to the executor 4619
or administrator, or the trustee of a trust, of the estate of a 4620
winning ticket holderprize winner; when the award of a prize is 4621
disputed, any person may be awarded a prize award to which another 4622
has claimed title, pursuant to the order of a court of competent 4623
jurisdiction; when a person is awarded a prize award to which 4624
another has claimed title, pursuant to the order of a federal 4625
bankruptcy court under Title 11 of the United States Code; or as 4626
provided in sections 3770.10 to 3770.14 of the Revised Code.4627

       (2)(a) No right of any prize winner, as defined in section 4628
3770.10 of the Revised Code, to a prize award with a remaining 4629
unpaid balance of less than one hundred thousand dollars shall be 4630
subject to garnishment, attachment, execution, withholding, or 4631
deduction except as provided in sections 3119.80, 3119.81, 4632
3121.02, 3121.03, and 3123.06 of the Revised Code or when the 4633
director is to make a payment pursuant to section 3770.071 or 4634
3770.073 of the Revised Code.4635

        (b) No right of any prize winner, as defined in section 4636
3770.10 of the Revised Code, to a prize award with an unpaid 4637
balance of one hundred thousand dollars or more shall be subject 4638
to garnishment, attachment, execution, withholding, or deduction 4639
except as follows: as provided in sections 3119.80, 3119.81, 4640
3121.02, 3121.03, and 3123.06 of the Revised Code; when the 4641
director is to make a payment pursuant to section 3770.071 or 4642
3770.073 of the Revised Code; or pursuant to the order of a court 4643
of competent jurisdiction located in this state in a proceeding in 4644
which the state lottery commission is a named party, in which case 4645
the garnishment, attachment, execution, withholding, or deduction 4646
pursuant to the order shall be subordinate to any payments to be 4647
made pursuant to section 3119.80, 3119.81, 3121.02, 3121.03, 4648
3123.06, 3770.071, or 3770.073 of the Revised Code.4649

       (3) The state lottery commission may adopt and amend rules 4650
pursuant to Chapter 119. of the Revised Code as necessary to 4651
implement division (D) of this section, to provide for payments 4652
from prize awards subject to garnishment, attachment, execution, 4653
withholding, or deduction, and to comply with any applicable 4654
requirements of federal law.4655

        (4) Upon making payments from a prize award as required by 4656
division (D) of this section, the director and the state lottery 4657
commission are discharged from all further liability for those 4658
payments, whether they are made to an executor, administrator, 4659
trustee, judgment creditor, or another person, or to the prize 4660
winner, as defined in section 3770.10 of the Revised Code.4661

       (5) The state lottery commission shall adopt rules pursuant 4662
to section 3770.03 of the Revised Code concerning the payment of 4663
prize awards upon the death of a prize winner, as defined in 4664
section 3770.10 of the Revised Code. Upon the death of a prize 4665
winner, the remainder of the prize winner's prize award, to the 4666
extent it is not subject to a transfer agreement under sections 4667
3770.10 to 3770.14 of the Revised Code, may be paid to the 4668
executor, administrator, or trustee in the form of a discounted 4669
lump sum cash settlement.4670

       (E) No lottery prize award shall be awarded to or for any 4671
officer or employee of the state lottery commission, any officer 4672
or employee of the auditor of state actively auditing,4673
coordinating and, or certifying commission drawings, or any blood 4674
relative or spouse of such an officer or employee of the 4675
commission or auditor of state living as a member of the officer's 4676
or employee's household, nor shall any such officer, employee, 4677
blood relative, or spouse attempt to claim a lottery prize award.4678

       (F) The director may prohibit vendors to the state lottery 4679
commission and their employees from being awarded a lottery prize 4680
award.4681

       (G) Upon the payment of prize awards pursuant to a provision 4682
of this section, other than a provision of division (D) of this 4683
section, the director and the state lottery commission are 4684
discharged from all further liability for their payment. 4685
Installment payments of lottery prize awards shall be paid by 4686
official check or warrant, and they shall be sent by mail delivery 4687
to the prize winner's address within the United States or by 4688
electronic funds transfer to an established bank account located 4689
within the United States, or the prize winner may pick them up at 4690
an office of the commission.4691

       Sec. 3770.071.  (A)(1) If the amount of the prize money or 4692
the cost of goods or services awarded as a lottery prize award is 4693
six hundred dollars or moremeets or exceeds the reportable 4694
winnings amounts set by 26 U.S.C. 6041, or a subsequent analogous 4695
section of the Internal Revenue Code, the director of the state 4696
lottery commission or the director's designee shall require the 4697
person entitled to the prize award to affirm in writing, under 4698
oath, or by electronic means, whether or not the person is in 4699
default under a support order. The director or the director's 4700
designee also may take any additional appropriate steps to 4701
determine if the person entitled to the prize award is in default 4702
under a support order. If the person entitled to the prize award 4703
affirms that the person is in default under a support order, or if 4704
the director or the director's designee determines that the person 4705
is in default under a support order, the director or the 4706
director's designee shall temporarily withhold payment of the 4707
prize award and notify the child support enforcement agency that 4708
administers the support order that the person is entitled to a 4709
prize award, of the amount of the prize award, and, if the prize 4710
award is to be paid in annual installments, of the number of 4711
installments.4712

        (2) Upon receipt of the notice from the director or the 4713
director's designee, the child support enforcement agency shall 4714
conduct an investigation to determine whether the person entitled 4715
to the lottery prize award is subject to a final and enforceable 4716
determination of default made under sections 3123.01 to 3123.07 of 4717
the Revised Code. If the agency determines that the person is so 4718
subject, it shall issue an intercept directive as described in 4719
section 3123.89 of the Revised Code to the director at lottery 4720
commission headquarters requiring the director or the director's 4721
designee to deduct from any unpaid prize award or any annual 4722
installment payment of an unpaid prize award, a specified amount 4723
for support in satisfaction of the support order under which the 4724
person is in default. To the extent possible, the amount specified 4725
to be deducted under the intercept directive shall satisfy the 4726
amount ordered for support in the support order under which the 4727
person is in default.4728

       A child support enforcement agency shall issue an intercept 4729
directive within thirty days from the date the director or the 4730
director's designee notifies the agency under division (A)(1) of 4731
this section. Within thirty days after the date on which the 4732
agency issues the intercept directive, the director or the 4733
director's designee shall pay the amount specified in the 4734
intercept directive to the office of child support in the 4735
department of job and family services. But, if the prize award is 4736
to be paid in annual installments, the director or the director's 4737
designee, on the date the next installment payment is due, shall 4738
deduct the amount specified in the intercept directive from that 4739
installment and, if necessary, any subsequent annual installments, 4740
at the time those installments become due and owing to the prize 4741
winner, and pay the amount to the office of child support.4742

       (B) As used in this section:4743

       (1) "Support order" has the same meaning as in section 4744
3119.01 of the Revised Code.4745

       (2) "Default" has the same meaning as in section 3121.01 of 4746
the Revised Code.4747

       (C) No person shall knowingly make a false affirmation or 4748
oath required by division (A) of this section.4749

       Sec. 3770.072. (A) As used in this section, "prize winner," 4750
"transferee," and "transferor" have the same meanings as in 4751
section 3770.10 of the Revised Code.4752

       (B) The state lottery commission shall deduct amounts from 4753
lottery prize awards and file returns in accordance with section4754
sections 5747.062 and 5747.064 of the Revised Code and any rules 4755
adopted by the tax commissioner pursuant to that sectionthose 4756
sections. This division also applies to lottery prize award 4757
payments the commission remits to transferees.4758

       (C)(1)(a) Each transferee shall deduct and withhold from each 4759
gross amount payable to each prize winner sixfour per cent of the 4760
gross amount payable prior to making any other reduction required 4761
by this chapter.4762

        (b) Subject to division (C)(1)(c) of this section, each 4763
transferee, including any transferee that is a related member, as 4764
defined in section 5733.042 of the Revised Code, to the 4765
transferor, shall deduct and withhold from each amount payable to 4766
a transferor that is not a prize winner sixfour per cent of the 4767
portion of the payment representing gain or income the transferor 4768
will recognize in connection with the payment.4769

        (c) For purposes of division (C)(1)(b) of this section, the 4770
portion of any payment representing gain or income recognized by 4771
the transferor shall be computed in accordance with the Internal 4772
Revenue Code. The transferor shall prepare a written statement 4773
setting forth that amount and sign the statement under penalty of 4774
perjury. Within five days before the date on which the payment is 4775
to be made, the transferor shall deliver the written statement to 4776
the transferee and deliver a copy of the written statement to the 4777
tax commissioner. If the transferee does not receive the written 4778
statement by the time the payment is made, the transferee shall 4779
withhold sixfour per cent of the entire amount of the payment. If 4780
the tax commissioner notifies the transferee that the transferor 4781
has erroneously computed the amount of gain or income recognized, 4782
the transferee shall withhold sixfour per cent of the entire 4783
amount of each payment to be made after the transferee receives 4784
the notice.4785

        (d) The tax commissioner may impose a penalty of up to one 4786
thousand dollars for any person failing to timely deliver to the 4787
tax commissioner the copy of the written statement as required by 4788
division (C)(1)(c) of this section. Proceeds from the imposition 4789
of the penalty shall be considered as revenue arising from the tax 4790
imposed under section 5733.06 or 5747.02 of the Revised Code, as 4791
applicable.4792

       (2) With respect to amounts deducted and withheld pursuant to 4793
division (C)(1) of this section, each transferee shall comply with 4794
divisions (A)(2) to (4) of section 5747.062 of the Revised Code.4795

       (3) An employee of a corporation, limited liability company, 4796
or business trust having control or supervision of or charged with 4797
the responsibility of filing the report and making the payment 4798
required by division (C) of this section and section 5747.062 of 4799
the Revised Code, or an officer, member, manager, or trustee of a 4800
corporation, limited liability company, or business trust who is 4801
responsible for the execution of the corporation's, limited 4802
liability company's, or business trust's fiscal responsibilities, 4803
shall be personally liable for failure to file the report or pay 4804
the amount due as required by division (C) of this section and 4805
section 5747.062 of the Revised Code. The dissolution, 4806
termination, or bankruptcy of a corporation, limited liability 4807
company, or business trust does not discharge a responsible 4808
officer's, member's, manager's, employee's, or trustee's liability 4809
for a failure of the corporation, limited liability company, or 4810
business trust to file returns or pay the amount due.4811

       (4)(a) The tax commissioner may make an assessment against 4812
any person listed in division (C)(1) or (3) of this section for 4813
any deficiency for any period. Section 5747.13 of the Revised Code 4814
shall apply with respect to issuing assessments, filing petitions 4815
for reassessments, conducting hearings, issuing final 4816
determinations, making the assessment final, and filing the entry 4817
that makes the assessment final. Section 5717.02 of the Revised 4818
Code shall apply to appeals of the commissioner's final decision 4819
in connection with assessments issued pursuant to division (C)(4) 4820
of this section.4821

       (b) An assessment issued against any person listed in 4822
division (C)(1) or (3) of this section shall not be considered an 4823
election of remedies or a bar to an assessment against any other 4824
person for the failure to comply with division (C)(1) of this 4825
section. No assessment shall be issued against any person who is 4826
so listed if the amount required to be withheld has been paid by 4827
another.4828

       (c) The assessment shall include interest at the rate per 4829
annum prescribed by section 5703.47 of the Revised Code on 4830
liability from the time the payment is due until the date of 4831
assessment. Interest shall continue to accrue from the date of 4832
assessment until the date the assessment is paid in full. Any 4833
interest accruing subsequent to the date of the issuance of the 4834
assessment shall be considered to be an additional deficiency for 4835
which the tax commissioner may issue subsequent assessments. The 4836
initial assessment and any subsequent assessments may include a 4837
penalty in an amount not to exceed twice the applicable interest 4838
charged under this division.4839

       Sec. 3770.073.  (A) If a person is entitled to a lottery 4840
prize award and is indebted to the state for the payment of any 4841
tax, workers' compensation premium, unemployment contribution, 4842
payment in lieu of unemployment contribution, certified claim 4843
under section 131.02 or 131.021 of the Revised Code, or is 4844
indebted to a political subdivision that has a certified claim 4845
under section 131.02 of the Revised Code, lottery sales receipts 4846
held in trust on behalf of the state lottery commission as 4847
described in division (G)(4) of section 3770.05 of the Revised 4848
Code, or charge, penalty, or interest arising from these debts and 4849
if the amount of the prize money or the cost of goods or services 4850
awarded as a lottery prize award is five thousand dollars or more, 4851
the director of the state lottery commission, or the director's 4852
designee, shall do either of the following:4853

       (1) If the prize award will be paid in a lump sum, deduct 4854
from the prize award and pay to the attorney general an amount in 4855
satisfaction of the debt and pay any remainder to that person. If 4856
the amount of the prize award is less than the amount of the debt, 4857
the entire amount of the prize award shall be deducted and paid in 4858
partial satisfaction of the debt.4859

       (2) If the prize award will be paid in annual installments, 4860
on the date the initial installment payment is due, deduct from 4861
that installment and pay to the attorney general an amount in 4862
satisfaction of the debt and, if necessary to collect the full 4863
amount of the debt, do the same for any subsequent annual 4864
installments, at the time the installments become due and owing to 4865
the person, until the debt is fully satisfied.4866

       (B) If a person entitled to a lottery prize award owes more 4867
than one debt, any debt owed to the state shall be satisfied 4868
first, subject to both section 5739.33 orand division (G) of 4869
section 5747.07 of the Revised Code shall be satisfied first4870
having first priority, and subject to division (C) of this 4871
section.4872

       (C) Any debt owed under section 3770.071 of the Revised Code 4873
shall be satisfied with first priority over debts owed under this 4874
section.4875

       (D) Except as provided in section 131.021 of the Revised 4876
Code, this section applies only to debts that have become final.4877

       Sec. 3770.21. (A) As used in this section:4878

       (1) "Video lottery terminal" means any electronic device 4879
approved by the state lottery commission that provides immediate 4880
prize determinations for participants on an electronic display 4881
that is located at a facility owned by a holder of a permit as 4882
defined in rule 3769-1-05 of the Administrative Code.4883

       (2) "Video lottery terminal promotional gaming credit" means 4884
a video lottery terminal game credit, discount, or other similar 4885
item issued to a patron to enable the placement of, or increase 4886
in, a wager at a video lottery terminal.4887

       (3) "Video lottery terminal income" means credits played, 4888
minus approved video lottery terminal promotional gaming credits, 4889
minus video lottery prize awards.4890

       (B) The state lottery commission shall include, in 4891
conjunction with the state racing commission, in any rules adopted 4892
concerning video lottery terminals, the level of minimum 4893
investments that must be made by video lottery terminal licensees4894
sales agents in the buildings, fixtures, equipment, 4895
facilities-related preparation, and grounds at the facilities, 4896
including temporary facilities, in which the terminals will be 4897
located, along with any standards and timetables for such 4898
investments.4899

       (C) A licensed video lottery sales agent may provide video 4900
lottery terminal promotional gaming credits to patrons for video 4901
lottery terminal gaming. Video lottery terminal promotional gaming 4902
credits shall be subject to approval by the director of the state 4903
lottery commission.4904

       (D) Video lottery terminal sales agents shall develop 4905
internal guidelines and controls for the purpose of giving 4906
minority business enterprises the ability to compete for the 4907
awarding of contracts to provide goods and services to those sales 4908
agents. As used in this division, "minority business enterprise" 4909
has the meaning defined in section 122.71 of the Revised Code.4910

       (E) No license or excise tax or fee not in effect on the 4911
effective date of this section shall be assessed upon or collected 4912
from a video lottery terminal licenseesales agent by any county, 4913
township, municipal corporation, school district, or other 4914
political subdivision of the state that has authority to assess or 4915
collect a tax or fee by reason of the video lottery terminal 4916
related conduct authorized by section 3770.03 of the Revised Code. 4917
This division does not prohibit the imposition of taxes under 4918
Chapter 718. or 3769. of the Revised Code.4919

       (D) The supreme court shall have exclusive, original 4920
jurisdiction over any claim(F)(1) Any action asserting that this 4921
section or section 3770.03 of the Revised Code or any portion of 4922
those sections or any rule adopted under those sections violates 4923
any provision of the Ohio Constitution, anyshall be brought in 4924
the court of common pleas of Franklin county within ninety days 4925
after the effective date of the amendment of this section by H.B. 4926
386 of the 129th general assembly or within ninety days after the 4927
effective day of any rule, as applicable.4928

        (2) Any claim asserting that any action taken by the governor 4929
or the lottery commission pursuant to those sections violates any 4930
provision of the Ohio Constitution or any provision of the Revised 4931
Code, or any claim asserting that any portion of this section 4932
violates any provision of the Ohio Constitution. If any claim over 4933
which the supreme court is granted exclusive, original 4934
jurisdiction by this division is filed in any lower court, the 4935
claim shall be dismissed by the court on the ground that the court 4936
lacks jurisdiction to review itshall be brought in the court of 4937
common pleas of Franklin county within sixty days after the action 4938
is taken.4939

       (3) Divisions (F)(1) and (2) of this section do not apply to 4940
any claim within the original jurisdiction of the supreme court or 4941
a court of appeals under Article IV of the Ohio Constitution.4942

       (E) Should any portion of this section or of section 3770.03 4943
of the Revised Code be found to be unenforceable or invalid, it 4944
shall be severed and the remaining portions remain in full force 4945
and effect.4946

       (G) The court of common pleas of Franklin county shall give 4947
any claim filed under division (F)(1) or (2) of this section 4948
priority over all other civil cases before the court, irrespective 4949
of position on the court's calendar, and shall make a 4950
determination on the claim expeditiously. A court of appeals shall 4951
give any appeal from a final order issued in a case brought 4952
pursuant to division (F) of this section priority over all other 4953
civil cases before the court, irrespective of position on the 4954
court's calendar, and shall make a determination on the appeal 4955
expeditiously.4956

       Sec. 3770.22.  (A) Any information concerning the following 4957
that is submitted, collected, or gathered as part of an 4958
application to the state lottery commission for a video lottery 4959
related license under this chapter is confidential and not subject 4960
to disclosure by a state agency or political subdivision as a 4961
public record under section 149.43 of the Revised Code:4962

       (1) A dependent of an applicant;4963

       (2) The social security number, passport number, or federal 4964
tax identification number of an applicant or the spouse of an 4965
applicant;4966

       (3) The home address and telephone number of an applicant or 4967
the spouse or dependent of an applicant;4968

       (4) An applicant's birth certificate;4969

       (5) The driver's license number of an applicant or the 4970
applicant's spouse;4971

       (6) The name or address of a previous spouse of the 4972
applicant;4973

       (7) The date of birth of the applicant and the spouse of an 4974
applicant;4975

       (8) The place of birth of the applicant and the spouse of an 4976
applicant;4977

       (9) The personal financial information and records of an 4978
applicant or of an employee or the spouse or dependent of an 4979
applicant, including tax returns and information, and records of 4980
criminal proceedings;4981

       (10) Any information concerning a victim of domestic 4982
violence, sexual assault, or stalking;4983

       (11) The electronic mail address of the spouse or family 4984
member of the applicant;4985

       (12) Any trade secret, medical records, and patents or 4986
exclusive licenses;4987

       (13) Security information, including risk prevention plans, 4988
detection and countermeasures, location of count rooms or other 4989
money storage areas, emergency management plans, security and 4990
surveillance plans, equipment and usage protocols, and theft and 4991
fraud prevention plans and countermeasures;4992

        (14) Information provided in a multijurisdictional personal 4993
history disclosure form, including the Ohio supplement, exhibits, 4994
attachments, and updates.4995

       (B) The individual's name, the individual's place of 4996
employment, the individual's job title, and the individual's 4997
gaming experience that is provided for an individual who holds, 4998
held, or has applied for a video lottery related license under 4999
this chapter is not confidential. The reason for denial or 5000
revocation of a video lottery related license or for disciplinary 5001
action against the individual is not confidential.5002

       (C) An individual who holds, held, or has applied for a video 5003
lottery related license under this chapter may waive the 5004
confidentiality requirements of division (A) of this section.5005

       (D) Confidential information received by the commission from 5006
another jurisdiction relating to a person who holds, held, or has 5007
applied for a license under this chapter is confidential and not 5008
subject to disclosure as a public record under section 149.43 of 5009
the Revised Code. The commission may share the information 5010
referenced in this division with, or disclose the information to, 5011
the inspector general, any appropriate prosecuting authority, any 5012
law enforcement agency, or any other appropriate governmental or 5013
licensing agency, if the agency that receives the information 5014
complies with the same requirements regarding confidentiality as 5015
those with which the commission must comply. 5016

       The applicant shall complete a cover sheet for the 5017
application on which the applicant shall disclose the applicant's 5018
name, the business address of the lottery sales agent, management 5019
company, holding company, or gaming-related vendor employing the 5020
applicant, the business address and telephone number of such 5021
employer, and the county, state, and country in which the 5022
applicant's residence is located.5023

       Sec. 3772.01. As used in this chapter:5024

       (A) "Applicant" means any person who applies to the 5025
commission for a license under this chapter.5026

       (B) "Casino control commission fund" means the casino control 5027
commission fund described in Section 6(C)(3)(d) of Article XV, 5028
Ohio Constitution, the money in which shall be used to fund the 5029
commission and its related affairs.5030

       (C) "Casino facility" means a casino facility as defined in 5031
Section 6(C)(9) of Article XV, Ohio Constitution.5032

       (D) "Casino game" means any slot machine or table game as 5033
defined in this chapter.5034

       (E) "Casino gaming" means any type of slot machine or table 5035
game wagering, using money, casino credit, or any representative 5036
of value, authorized in any of the states of Indiana, Michigan, 5037
Pennsylvania, and West Virginia as of January 1, 2009, and 5038
includes slot machine and table game wagering subsequently 5039
authorized by, but shall not be limited by, subsequent 5040
restrictions placed on such wagering in such states. "Casino 5041
gaming" does not include bingo, as authorized in Section 6 of 5042
Article XV, Ohio Constitution and conducted as of January 1, 2009, 5043
or horse racing where the pari-mutuel system of wagering is 5044
conducted, as authorized under the laws of this state as of 5045
January 1, 2009.5046

       (E)(F) "Casino gaming employee" means any employee of a 5047
casino operator or management company, but not a key employee, and 5048
as further defined in section 3772.131 of the Revised Code.5049

       (F)(G) "Casino operator" means any person, trust, 5050
corporation, partnership, limited partnership, association, 5051
limited liability company, or other business enterprise that 5052
directly or indirectly holds an ownership or leasehold interest in 5053
a casino facility. "Casino operator" does not include an agency of 5054
the state, any political subdivision of the state, any person, 5055
trust, corporation, partnership, limited partnership, association, 5056
limited liability company, or other business enterprise that may 5057
have an interest in a casino facility, but who is legally or 5058
contractually restricted from conducting casino gaming.5059

       (G)(H) "Central system" means a computer system that provides 5060
the following functions related to casino gaming equipment used in 5061
connection with casino gaming authorized under this chapter: 5062
security, auditing, data and information retrieval, and other 5063
purposes deemed necessary and authorized by the commission.5064

       (H)(I) "Cheat" means to alter the result of a casino game, 5065
the element of chance, the operation of a machine used in a casino 5066
game, or the method of selection of criteria that determines (a) 5067
the result of the casino game, (b) the amount or frequency of 5068
payment in a casino game, (c) the value of a wagering instrument, 5069
or (d) the value of a wagering credit. "Cheat" does not include an 5070
individual who, without the assistance of another individual or 5071
without the use of a physical aid or device of any kind, uses the 5072
individual's own ability to keep track of the value of cards 5073
played and uses predictions formed as a result of the tracking 5074
information in the individual's playing and betting strategy.5075

       (J) "Commission" means the Ohio casino control commission.5076

       (I)(K) "Gaming agent" means a peace officer employed by the 5077
commission that is vested with duties to enforce this chapter and 5078
conduct other investigations into the conduct of the casino gaming 5079
and the maintenance of the equipment that the commission considers 5080
necessary and proper and is in compliance with section 109.77 of 5081
the Revised Code.5082

       (J)(L) "Gaming-related vendor" means any individual, 5083
partnership, corporation, association, trust, or any other group 5084
of individuals, however organized, who supplies gaming-related 5085
equipment, goods, or services to a casino operator or management 5086
company, that are directly related to or affect casino gaming 5087
authorized under this chapter, including, but not limited to, the 5088
manufacture, sale, distribution, or repair of slot machines and 5089
table game equipment.5090

       (K)(M) "Holding company" means any corporation, firm, 5091
partnership, limited partnership, limited liability company, 5092
trust, or other form of business organization not a natural person 5093
which directly or indirectly owns, hasdoes any of the following:5094

       (1) Has the power or right to control, or holds with power to 5095
vote, any part of an applicant,a casino operator, management 5096
company, or gaming-related vendor license applicant or licensee;5097

       (2) Holds an ownership interest of five per cent or more, as 5098
determined by the commission, in a casino operator, management 5099
company, or gaming-related vendor license applicant or licensee; 5100

       (3) Holds voting rights with the power to vote five per cent 5101
or more of the outstanding voting rights of a casino operator, 5102
management company, or gaming-related vendor applicant or 5103
licensee.5104

       (L)(N) "Initial investment" includes costs related to 5105
demolition, engineering, architecture, design, site preparation, 5106
construction, infrastructure improvements, land acquisition, 5107
fixtures and equipment, insurance related to construction, and 5108
leasehold improvements.5109

       (M)(O) "Institutional investor" means any of the following 5110
entities owning onefive per cent or less, or a percentage between 5111
one and ten per cent as approved by the commission through a 5112
waiver on a case-by-case basismore, but less than fifteen per 5113
cent, of an ownership interest in a casino facility, casino 5114
operator, management company, or holding company: a corporation, 5115
bank, insurance company, pension fund or pension fund trust, 5116
retirement fund, including funds administered by a public agency, 5117
employees' profit-sharing fund or employees' profit-sharing trust, 5118
any association engaged, as a substantial part of its business or 5119
operations, in purchasing or holding securities, including a hedge 5120
fund, mutual fund, or private equity fund, or any trust in respect 5121
of which a bank is trustee or cotrustee, investment company 5122
registered under the "Investment Company Act of 1940," 15 U.S.C. 5123
80a-1 et seq., collective investment trust organized by banks 5124
under Part Nine of the Rules of the Comptroller of the Currency, 5125
closed-end investment trust, chartered or licensed life insurance 5126
company or property and casualty insurance company, investment 5127
advisor registered under the "Investment Advisors Act of 1940," 15 5128
U.S.C. 80 b-1 et seq., and such other persons as the commission 5129
may reasonably determine to qualify as an institutional investor 5130
for reasons consistent with this chapter, and that does not 5131
exercise control over the affairs of a licensee and its ownership 5132
interest in a licensee is for investment purposes only, as set 5133
forth in division (E) of section 3772.10 of the Revised Code.5134

       (N)(P) "Key employee" means any executive, employee, or agent 5135
of a casino operator or management company licensee having the 5136
power to exercise significant influence over decisions concerning 5137
any part of the operation of such licensee, including:5138

       (1) An officer, director, trustee, or partner of a person 5139
that has applied for or holds a casino operator, management 5140
company, or gaming-related vendor license or of a holding company 5141
that has control of a person that has applied for or holds a 5142
casino operator, management company, or gaming-related vendor 5143
license;5144

       (2) A person that holds a direct or indirect ownership 5145
interest of more than one per cent in a person that has applied 5146
for or holds a casino operator, management company, or 5147
gaming-related vendor license or holding company that has control 5148
of a person that has applied for or holds a casino operator, 5149
management company, or gaming-related vendor license;5150

       (3) A managerial employee of a person that has applied for or 5151
holds a casino operator or gaming-related vendor license in Ohio, 5152
or a managerial employee of a holding company that has control of 5153
a person that has applied for or holds a casino operator or 5154
gaming-related vendor license in Ohio, who performs the function 5155
of principal executive officer, principal operating officer, 5156
principal accounting officer, or an equivalent officer or other 5157
person the commission determines to have the power to exercise 5158
significant influence over decisions concerning any part of the 5159
operation of such licensee.5160

       The commission shall determine whether an individual whose 5161
duties or status varies from those described in this division also 5162
is considered a key employee.5163

       (O)(Q) "Licensed casino operator" means a casino operator 5164
that has been issued a license by the commission and that has been 5165
certified annually by the commission to have paid all applicable 5166
fees, taxes, and debts to the state.5167

       (P)(R) "Majority ownership interest" in a license or in a 5168
casino facility, as the case may be, means ownership of more than 5169
fifty per cent of such license or casino facility, as the case may 5170
be. For purposes of the foregoing, whether a majority ownership 5171
interest is held in a license or in a casino facility, as the case 5172
may be, shall be determined under the rules for constructive 5173
ownership of stock provided in Treas. Reg. 1.409A-3(i)(5)(iii) as 5174
in effect on January 1, 2009.5175

       (Q)(S) "Management company" means an organization retained by 5176
a casino operator to manage a casino facility and provide services 5177
such as accounting, general administration, maintenance, 5178
recruitment, and other operational services.5179

       (R)(T) "Ohio law enforcement training fund" means the state 5180
law enforcement training fund described in Section 6(C)(3)(f) of 5181
Article XV, Ohio Constitution, the money in which shall be used to 5182
enhance public safety by providing additional training 5183
opportunities to the law enforcement community.5184

       (S)(U) "Person" includes, but is not limited to, an 5185
individual or a combination of individuals; a sole proprietorship, 5186
a firm, a company, a joint venture, a partnership of any type, a 5187
joint-stock company, a corporation of any type, a corporate 5188
subsidiary of any type, a limited liability company, a business 5189
trust, or any other business entity or organization; an assignee; 5190
a receiver; a trustee in bankruptcy; an unincorporated 5191
association, club, society, or other unincorporated entity or 5192
organization; entities that are disregarded for federal income tax 5193
purposes; and any other nongovernmental, artificial, legal entity 5194
that is capable of engaging in business.5195

       (T)(V) "Problem casino gambling and addictions fund" means 5196
the state problem gambling and addictions fund described in 5197
Section 6(C)(3)(g) of Article XV, Ohio Constitution, the money in 5198
which shall be used for treatment of problem gambling and 5199
substance abuse, and for related research.5200

       (U)(W) "Promotional gaming credit" means a slot machine or 5201
table game credit, discount, or other similar item issued to a 5202
patron to enable the placement of, or increase in, a wager at a 5203
slot machine or table game.5204

       (V)(X) "Slot machine" means any mechanical, electrical, or 5205
other device or machine which, upon insertion of a coin, token, 5206
ticket, or similar object, or upon payment of any consideration, 5207
is available to play or operate, the play or operation of which, 5208
whether by reason of the skill of the operator or application of 5209
the element of chance, or both, makes individual prize 5210
determinations for individual participants in cash, premiums, 5211
merchandise, tokens, or any thing of value, whether the payoff is 5212
made automatically from the machine or in any other manner, but 5213
does not include any device that is a skill-based amusement 5214
machine, as defined in section 2915.01 of the Revised Code.5215

       (W)(Y) "Table game" means any game played with cards, dice, 5216
or any mechanical, electromechanical, or electronic device or 5217
machine for money, casino credit, or any representative of value. 5218
"Table game" does not include slot machines.5219

       (X)(Z) "Upfront license" means the first plenary license 5220
issued to a casino operator.5221

       (Y)(AA) "Voluntary exclusion program" means a program 5222
provided by the commission that allows persons to voluntarily 5223
exclude themselves from the gaming areas of facilities under the 5224
jurisdiction of the commission by placing their name on a 5225
voluntary exclusion list and following the procedures set forth by 5226
the commission.5227

       Sec. 3772.03. (A) To ensure the integrity of casino gaming, 5228
the commission shall have authority to complete the functions of 5229
licensing, regulating, investigating, and penalizing casino 5230
operators, management companies, holding companies, key employees, 5231
casino gaming employees, and gaming-related vendors. The 5232
commission also shall have jurisdiction over all persons 5233
participating in casino gaming authorized by Section 6(C) of 5234
Article XV, Ohio Constitution, and this chapter.5235

       (B) All rules adopted by the commission under this chapter 5236
shall be adopted under procedures established in Chapter 119. of 5237
the Revised Code. The commission may contract for the services of 5238
experts and consultants to assist the commission in carrying out 5239
its duties under this section.5240

       (C) Within six months of the effective date of this section5241
September 10, 2010, the commission shall adopt initial rules as 5242
are necessary for completing the functions stated in division (A) 5243
of this section and for addressing the subjects enumerated in 5244
division (D) of this section.5245

       (D) The commission shall adopt, and as advisable and 5246
necessary shall amend or repeal, rules that include all of the 5247
following:5248

       (1) The prevention of practices detrimental to the public 5249
interest;5250

       (2) Prescribing the method of applying, and the form of 5251
application, that an applicant for a license under this chapter 5252
must follow as otherwise described in this chapter;5253

       (3) Prescribing the information to be furnished by an 5254
applicant or licensee as described in section 3772.11 of the 5255
Revised Code;5256

       (4) Describing the certification standards and duties of an 5257
independent testing laboratory certified under section 3772.31 of 5258
the Revised Code and the relationship between the commission, the 5259
laboratory, the gaming-related vendor, and the casino operator;5260

        (5) The minimum amount of insurance that must be maintained 5261
by a casino operator, management company, holding company, or 5262</