As Re-Reported by the House Rules and Reference Committee

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


Representative Blessing 

Cosponsors: Representatives Gerberry, Combs, Letson 



A BILL
To amend sections 122.014, 173.121, 2505.09, 2505.12, 1
2915.01, 2915.02, 2915.06, 2915.08, 2915.09, 2
2915.091, 2915.092, 2915.093, 2915.094, 2915.10, 3
2915.101, 2915.12, 2923.31, 2933.51, 3301.0714, 4
3769.08, 3769.087, 3769.089, 3769.201, 3769.21, 5
3770.02, 3770.05, 3770.07, 3770.071, 3770.21, 6
3772.01, 3772.03, 3772.04, 3772.091, 3772.10, 7
3772.13, 3772.16, 3772.17, 3772.28, 3772.99, 8
4301.03, 4303.17, 5753.01, and 5753.03, to enact 9
sections 121.421, 2505.122, 2915.18, and 3770.22, 10
and to repeal section 3772.14 of the Revised Code 11
and to amend Section 261.20.90 of Am. Sub. H.B. 12
153 of the 129th General Assembly, to amend 13
Section 3 of Sub. H.B. 277 of the 129th General 14
Assembly, and to repeal Section 4 of Sub. H.B. 277 15
of the 129th General Assembly to make changes to 16
the law regarding video lottery terminals, casino 17
gaming, bingo and instant bingo, and horse racing, 18
to require thoroughbred and standardbred racing 19
permit holders to pay a local tax, to create 20
charity card rooms, to make appropriations, and to 21
declare an emergency.22


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

       Section 1.  That sections 122.014, 173.121, 2505.09, 2505.12, 23
2915.01, 2915.02, 2915.06, 2915.08, 2915.09, 2915.091, 2915.092, 24
2915.093, 2915.094, 2915.10, 2915.101, 2915.12, 2923.31, 2933.51, 25
3301.0714, 3769.08, 3769.087, 3769.089, 3769.201, 3769.21, 26
3770.02, 3770.05, 3770.07, 3770.071, 3770.21, 3772.01, 3772.03, 27
3772.04, 3772.091, 3772.10, 3772.13, 3772.16, 3772.17, 3772.28, 28
3772.99, 4301.03, 4303.17, 5753.01, and 5753.03 be amended and 29
sections 121.421, 2505.122, 2915.18, and 3770.22 of the Revised 30
Code be enacted to read as follows: 31

       Sec. 121.421.  (A) Notwithstanding division (D)(3) of section 32
121.41 of the Revised Code, the inspector general shall do the 33
following to determine whether wrongful acts or omissions have 34
been committed or are being committed by present or former 35
employees:36

       (1) Investigate employees of the office of the attorney 37
general who are contractually vested with duties to enforce 38
Chapter 3772. of the Revised Code;39

       (2) Provide support in furtherance of enforcing Chapter 3772. 40
of the Revised Code.41

       (B) The inspector general and each deputy inspector may 42
administer oaths, examine witnesses under oath, and issue 43
subpoenas and subpoenas duces tecum to compel the attendance of 44
witnesses and the production of all kinds of books, records, 45
papers, and tangible things. Upon the refusal of a witness to be 46
sworn or to answer any question put to the witness, or if a person 47
disobeys a subpoena, the inspector general shall apply to the 48
court of common pleas for a contempt order, as in the case of 49
disobedience to the requirements of a subpoena issued from the 50
court of common pleas, or a refusal to testify in the court.51

       (C) The inspector general may enter into any contracts that 52
are necessary to complete an investigation. The contracts may 53
include contracts for the services of persons who are experts in a 54
particular field and whose expertise is necessary for successful 55
completion of the investigation.56

       (D) If the authority of the attorney general terminates or 57
expires, the authority vested in the inspector general by this 58
section terminates upon the conclusion of ongoing investigations 59
or upon issuance of the final report of the investigations.60

       Sec. 122.014.  (A) As used in this section, "gaming 61
activities" means activities conducted in connection with or that 62
include any of the following:63

       (1) Casino gaming, as authorized and defined in Section 6(C) 64
of Article XV, Ohio Constitution;65

       (2) Casino gaming, as defined in division (D)(E) of section 66
3772.01 of the Revised Code; or67

       (3) The pari-mutuel system of wagering as authorized and 68
described in Chapter 3769. of the Revised Code.69

       (B) The department of development or any other entity that 70
administers any program or development project established under 71
Chapter 122., 166., or 184. of the Revised Code or in sections 72
149.311, 5709.87, or 5709.88 of the Revised Code shall not provide 73
any financial assistance, including loans, tax credits, and 74
grants, staffing assistance, technical support, or other 75
assistance to businesses conducting gaming activities or for 76
project sites on which gaming activities are or will be conducted.77

       Sec. 173.121.  (A) As used in this section, "bingo," "bingo 78
game operator," and "participant" have the same meanings as in 79
section 2915.01 of the Revised Code.80

       (B) Notwithstanding sections 2915.07 to 2915.13 of the 81
Revised Code, a multipurpose senior center may conduct bingo games 82
described in division (S)(O)(1) of section 2915.01 of the Revised 83
Code, but only if it complies with all of the following 84
requirements:85

       (1) All bingo games are conducted only on the premises of the 86
facility.87

       (2) All participants are sixty years of age or older.88

       (3) All bingo game operators are sixty years of age or older 89
and receive no compensation for serving as operators.90

       (4) No participant is charged an admission fee, and no 91
participant is charged more than twenty-five cents to purchase a 92
bingo card or sheet.93

       (5) All proceeds from games are used only for any of the 94
following:95

       (a) To pay winners monetary or nonmonetary prizes;96

       (b) To provide refreshments;97

       (c) To defray any costs directly related to conducting the 98
games;99

       (d) To defray costs of services the facility provides in 100
accordance with section 173.12 of the Revised Code.101

       Sec. 2505.09.  Except as provided in section 2505.11 or 102
2505.12 or another section of the Revised Code or in applicable 103
rules governing courts, the perfection of an appeal, including an 104
administrative-related appeal, does not operate as a stay of 105
execution until a stay of execution has been obtained pursuant to 106
the Rules of Appellate Procedure or in another applicable manner, 107
and a supersedeas bond is executed by the appellant to the 108
appellee, with sufficient sureties and, subject to section 109
2505.122 of the Revised Code, in a sum that is not less than, if 110
applicable, the cumulative total for all claims covered by the 111
final order, judgment, or decree and interest involved, except 112
that the bond shall not exceed fifty million dollars excluding 113
interest and costs, as directed by the court that rendered the 114
final order, judgment, or decree that is sought to be superseded 115
or by the court to which the appeal is taken. That bond shall be 116
conditioned as provided in section 2505.14 of the Revised Code.117

       Sec. 2505.12.  An appellant is not required to give a 118
supersedeas bond in connection with any of the following:119

       (A) AnPerfection of an appeal by any of the following:120

       (1) An executor, administrator, guardian, receiver, trustee, 121
or trustee in bankruptcy who is acting in that person's trust 122
capacity and who has given bond in this state, with surety 123
according to law;124

       (2) The state or any political subdivision of the state;125

       (3) Any public officer of the state or of any of its 126
political subdivisions who is suing or is sued solely in the 127
public officer's representative capacity as that officer.128

       (B) AnPerfection of an administrative-related appeal of a 129
final order that is not for the payment of money.130

       Sec. 2505.122.  Any appellant who obtains a stay of execution 131
pending the appeal of a final order, adjudication, or decision 132
pursuant to section 2506.01 of the Revised Code shall 133
simultaneously execute a supersedeas bond to the appellee with 134
sufficient sureties and in an amount established in section 135
2505.09 of the Revised Code. In establishing the amount of the 136
bond, the court shall give great weight and due consideration to 137
the reasonable value of the matter at issue in the final order, 138
adjudication, or decision, the circumstances giving rise to the 139
appeal, and the economic impact of other consequences of delay to 140
the appellee and to those prevented from taking action that was 141
permitted by the final order, adjudication, or decision.142

       Sec. 2915.01.  As used in this chapter:143

       (A) "Bookmaking" means the business of receiving or paying 144
off bets.145

       (B) "Bet" means the hazarding of anything of value upon the 146
result of an event, undertaking, or contingency, but does not 147
include a bona fide business risk.148

       (C) "Scheme of chance" means a slot machine, lottery, numbers 149
game, pool conducted for profit, or other scheme in which a 150
participant gives a valuable consideration for a chance to win a 151
prize, but does not include bingo, a skill-based amusement 152
machine, or a pool not conducted for profit.153

       (D) "Game of chance" means poker, craps, roulette, or other 154
game in which a player gives anything of value in the hope of 155
gain, the outcome of which is determined largely by chance, but 156
does not include bingo.157

       (E) "Game of chance conducted for profit" means any game of 158
chance designed to produce income for the person who conducts or 159
operates the game of chance, but does not include bingo.160

       (F) "Gambling device" means any of the following:161

       (1) A book, totalizer, or other equipment for recording bets;162

       (2) A ticket, token, or other device representing a chance, 163
share, or interest in a scheme of chance or evidencing a bet;164

       (3) A deck of cards, dice, gaming table, roulette wheel, slot 165
machine, or other apparatus designed for use in connection with a 166
game of chance;167

       (4) Any equipment, device, apparatus, or paraphernalia 168
specially designed for gambling purposes;169

       (5) Bingo supplies sold or otherwise provided, or used, in 170
violation of this chapter.171

       (G) "Gambling offense" means any of the following:172

       (1) A violation of section 2915.02, 2915.03, 2915.04, 173
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09, 174
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;175

       (2) A violation of an existing or former municipal ordinance 176
or law of this or any other state or the United States 177
substantially equivalent to any section listed in division (G)(1) 178
of this section or a violation of section 2915.06 of the Revised 179
Code as it existed prior to July 1, 1996;180

       (3) An offense under an existing or former municipal 181
ordinance or law of this or any other state or the United States, 182
of which gambling is an element;183

       (4) A conspiracy or attempt to commit, or complicity in 184
committing, any offense under division (G)(1), (2), or (3) of this 185
section.186

       (H) Except as otherwise provided in this chapter, "charitable 187
organization" means any tax exempt religious, educational, 188
veteran's, fraternal, sporting, service, nonprofit medical, 189
volunteer rescue service, volunteer firefighter's, senior 190
citizen's, historic railroad educational, youth athletic, amateur 191
athletic, or youth athletic park organization. An organization is 192
tax exempt if the organization iseither of the following:193

       (1) An organization that is, and has received from the 194
internal revenue service a determination letter that currently is 195
in effect stating that the organization is, exempt from federal 196
income taxation under subsection 501(a) and described in 197
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or 198
501(c)(19) of the Internal Revenue Code, or if the organization is 199
a;200

       (2) A volunteer rescue service organization, volunteer 201
firefighter's organization, veteran's organization, fraternal 202
organization, or sporting organization that is exempt from federal 203
income taxation under subsection 501(a) and is described in204
subsection 501(c)(4), (c)(7), (c)(8), (c)(10), or (c)(19) of the 205
Internal Revenue Code. To206

        To qualify as a "charitable organization," an organization, 207
except a volunteer rescue service or volunteer firefighter's 208
organization, shall have been in continuous existence as such in 209
this state for a period of two years immediately preceding either 210
the making of an application for a bingo license under section 211
2915.08 of the Revised Code or the conducting of any game of 212
chance as provided in division (D) of section 2915.02 of the 213
Revised Code. A charitable organization that is exempt from 214
federal income taxation under subsection 501(a) and described in 215
subsection 501(c)(3) of the Internal Revenue Code and that is 216
created by a veteran's organization, a fraternal organization, or 217
a sporting organization does not have to have been in continuous 218
existence as such in this state for a period of two years 219
immediately preceding either the making of an application for a 220
bingo license under section 2915.08 of the Revised Code or the 221
conducting of any game of chance as provided in division (D) of 222
section 2915.02 of the Revised Code.223

       (I) "Religious organization" means any church, body of 224
communicants, or group that is not organized or operated for 225
profit and that gathers in common membership for regular worship 226
and religious observances.227

       (J) "Educational organization" means any organization within 228
this state that is not organized for profit, the primary purpose 229
of which is to educate and develop the capabilities of individuals 230
through instruction by means of operating or contributing to the 231
support of a school, academy, college, or university.232

       (K) "Veteran's organization" means any individual post or 233
state headquarters of a national veteran's association or an 234
auxiliary unit of any individual post of a national veteran's 235
association, which post, state headquarters, or auxiliary unit is 236
incorporated as a nonprofit corporation and either has received a 237
letter from the state headquarters of the national veteran's 238
association indicating that the individual post or auxiliary unit 239
is in good standing with the national veteran's association or has 240
received a letter from the national veteran's association 241
indicating that the state headquarters is in good standing with 242
the national veteran's association. As used in this division, 243
"national veteran's association" means any veteran's association 244
that has been in continuous existence as such for a period of at 245
least five years and either is incorporated by an act of the 246
United States congress or has a national dues-paying membership of 247
at least five thousand persons.248

       (L)(K) "Volunteer firefighter's organization" means any 249
organization of volunteer firefighters, as defined in section 250
146.01 of the Revised Code, that is organized and operated 251
exclusively to provide financial support for a volunteer fire 252
department or a volunteer fire company and that is recognized or 253
ratified by a county, municipal corporation, or township.254

       (M)(L) "Fraternal organization" means any society, order, 255
state headquarters, or association within this state, except a 256
college or high school fraternity, that is not organized for 257
profit, that is a branch, lodge, or chapter of a national or state 258
organization, that exists exclusively for the common business or 259
sodality of its members.260

       (N)(M) "Volunteer rescue service organization" means any 261
organization of volunteers organized to function as an emergency 262
medical service organization, as defined in section 4765.01 of the 263
Revised Code.264

       (O) "Service organization" means either of the following:265

       (1) Any organization, not organized for profit, that is 266
organized and operated exclusively to provide, or to contribute to 267
the support of organizations or institutions organized and 268
operated exclusively to provide, medical and therapeutic services 269
for persons who are crippled, born with birth defects, or have any 270
other mental or physical defect or those organized and operated 271
exclusively to protect, or to contribute to the support of 272
organizations or institutions organized and operated exclusively 273
to protect, animals from inhumane treatment or provide immediate 274
shelter to victims of domestic violence;275

       (2) Any organization that is described in subsection 276
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code 277
and is either a governmental unit or an organization that is tax 278
exempt under subsection 501(a) and described in subsection 279
501(c)(3) of the Internal Revenue Code and that is an 280
organization, not organized for profit, that is organized and 281
operated primarily to provide, or to contribute to the support of 282
organizations or institutions organized and operated primarily to 283
provide, medical and therapeutic services for persons who are 284
crippled, born with birth defects, or have any other mental or 285
physical defect.286

       (P) "Nonprofit medical organization" means either of the 287
following:288

       (1) Any organization that has been incorporated as a 289
nonprofit corporation for at least five years and that has 290
continuously operated and will be operated exclusively to provide, 291
or to contribute to the support of organizations or institutions 292
organized and operated exclusively to provide, hospital, medical, 293
research, or therapeutic services for the public;294

       (2) Any organization that is described and qualified under 295
subsection 501(c)(3) of the Internal Revenue Code, that has been 296
incorporated as a nonprofit corporation for at least five years, 297
and that has continuously operated and will be operated primarily 298
to provide, or to contribute to the support of organizations or 299
institutions organized and operated primarily to provide, 300
hospital, medical, research, or therapeutic services for the 301
public.302

       (Q) "Senior citizen's organization" means any private 303
organization, not organized for profit, that is organized and 304
operated exclusively to provide recreational or social services 305
for persons who are fifty-five years of age or older and that is 306
described and qualified under subsection 501(c)(3) of the Internal 307
Revenue Code.308

       (R)(N) "Charitable bingo game" means any bingo game described 309
in division (S)(O)(1) or (2) of this section that is conducted by 310
a charitable organization that has obtained a license pursuant to 311
section 2915.08 of the Revised Code and the proceeds of which are 312
used for a charitable purpose.313

       (S)(O) "Bingo" means either of the following:314

       (1) A game with all of the following characteristics:315

       (a) The participants use bingo cards or sheets, including 316
paper formats and electronic representation or image formats, that 317
are divided into twenty-five spaces arranged in five horizontal 318
and five vertical rows of spaces, with each space, except the 319
central space, being designated by a combination of a letter and a 320
number and with the central space being designated as a free 321
space.322

       (b) The participants cover the spaces on the bingo cards or 323
sheets that correspond to combinations of letters and numbers that 324
are announced by a bingo game operator.325

       (c) A bingo game operator announces combinations of letters 326
and numbers that appear on objects that a bingo game operator 327
selects by chance, either manually or mechanically, from a 328
receptacle that contains seventy-five objects at the beginning of 329
each game, each object marked by a different combination of a 330
letter and a number that corresponds to one of the seventy-five 331
possible combinations of a letter and a number that can appear on 332
the bingo cards or sheets.333

       (d) The winner of the bingo game includes any participant who 334
properly announces during the interval between the announcements 335
of letters and numbers as described in division (S)(O)(1)(c) of 336
this section, that a predetermined and preannounced pattern of 337
spaces has been covered on a bingo card or sheet being used by the 338
participant.339

       (2) Instant bingo, punch boards, and raffles.340

       (T)(P) "Conduct" means to back, promote, organize, manage, 341
carry on, sponsor, or prepare for the operation of bingo or a game 342
of chance.343

       (U)(Q) "Bingo game operator" means any person, except 344
security personnel, who performs work or labor at the site of 345
bingo, including, but not limited to, collecting money from 346
participants, handing out bingo cards or sheets or objects to 347
cover spaces on bingo cards or sheets, selecting from a receptacle 348
the objects that contain the combination of letters and numbers 349
that appear on bingo cards or sheets, calling out the combinations 350
of letters and numbers, distributing prizes, selling or redeeming 351
instant bingo tickets or cards, supervising the operation of a 352
punch board, selling raffle tickets, selecting raffle tickets from 353
a receptacle and announcing the winning numbers in a raffle, and 354
preparing, selling, and serving food or beverages.355

       (V)(R) "Participant" means any person who plays bingo.356

       (W)(S) "Bingo session" means a period that includes both of 357
the following:358

       (1) Not to exceed five continuous hours for the conduct of 359
one or more games described in division (S)(O)(1) of this section, 360
instant bingo, and seal cards;361

       (2) A period for the conduct of instant bingo and seal cards 362
for not more than two hours before and not more than two hours 363
after the period described in division (W)(S)(1) of this section.364

       (X)(T) "Gross receipts" means all money or assets, including 365
admission fees, that a person receives from bingo without the 366
deduction of any amounts for prizes paid out or for the expenses 367
of conducting bingo. "Gross receipts" does not include any money 368
directly taken in from the sale of food or beverages by a 369
charitable organization conducting bingo, or by a bona fide 370
auxiliary unit or society of a charitable organization conducting 371
bingo, provided all of the following apply:372

       (1) The auxiliary unit or society has been in existence as a 373
bona fide auxiliary unit or society of the charitable organization 374
for at least two years prior to conducting bingo.375

       (2) The person who purchases the food or beverage receives 376
nothing of value except the food or beverage and items customarily 377
received with the purchase of that food or beverage.378

       (3) The food and beverages are sold at customary and 379
reasonable prices.380

       (Y)(U) "Security personnel" includes any person who either is 381
a sheriff, deputy sheriff, marshal, deputy marshal, township 382
constable, or member of an organized police department of a 383
municipal corporation or has successfully completed a peace 384
officer's training course pursuant to sections 109.71 to 109.79 of 385
the Revised Code and who is hired to provide security for the 386
premises on which bingo is conducted.387

       (Z)(V) "Charitable purpose" means that the net profit of 388
bingo, other than instant bingo, is used by, or is given, donated, 389
or otherwise transferred to, any of the following:390

       (1) Any organization that is described in subsection 391
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code 392
and is either a governmental unit or an organization that is tax 393
exempt under subsection 501(a) and described in subsection 394
501(c)(3) of the Internal Revenue Code;395

       (2) A veteran's organization that is a post, chapter, or 396
organization of veterans, or an auxiliary unit or society of, or a 397
trust or foundation for, any such post, chapter, or organization 398
organized in the United States or any of its possessions, at least 399
seventy-five per cent of the members of which are veterans and 400
substantially all of the other members of which are individuals 401
who are spouses, widows, or widowers of veterans, or such 402
individuals, provided that no part of the net earnings of such 403
post, chapter, or organization inures to the benefit of any 404
private shareholder or individual, and further provided that the 405
net profit is used by the post, chapter, or organization for the 406
charitable purposes set forth in division (B)(12) of section 407
5739.02 of the Revised Code, is used for awarding scholarships to 408
or for attendance at an institution mentioned in division (B)(12) 409
of section 5739.02 of the Revised Code, is donated to a 410
governmental agency, or is used for nonprofit youth activities, 411
the purchase of United States or Ohio flags that are donated to 412
schools, youth groups, or other bona fide nonprofit organizations, 413
promotion of patriotism, or disaster relief;414

       (3) A fraternal organization that has been in continuous 415
existence in this state for fifteen years and that uses the net 416
profit exclusively for religious, charitable, scientific, 417
literary, or educational purposes, or for the prevention of 418
cruelty to children or animals, if contributions for such use 419
would qualify as a deductible charitable contribution under 420
subsection 170 of the Internal Revenue Code;421

       (4) A volunteer firefighter's organization that uses the net 422
profit for the purposes set forth in division (L)(K) of this 423
section.424

       (AA)(W) "Internal Revenue Code" means the "Internal Revenue 425
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter 426
amended.427

       (BB)(X) "Youth athletic organization" means any organization, 428
not organized for profit, that is organized and operated 429
exclusively to provide financial support to, or to operate, 430
athletic activities for persons who are twenty-one years of age or 431
younger by means of sponsoring, organizing, operating, or 432
contributing to the support of an athletic team, club, league, or 433
association.434

       (CC)(Y) "Youth athletic park organization" means any 435
organization, not organized for profit, that satisfies both of the 436
following:437

       (1) It owns, operates, and maintains playing fields that 438
satisfy both of the following:439

       (a) The playing fields are used at least one hundred days per 440
year for athletic activities by one or more organizations, not 441
organized for profit, each of which is organized and operated 442
exclusively to provide financial support to, or to operate, 443
athletic activities for persons who are eighteen years of age or 444
younger by means of sponsoring, organizing, operating, or 445
contributing to the support of an athletic team, club, league, or 446
association.447

       (b) The playing fields are not used for any profit-making 448
activity at any time during the year.449

       (2) It uses the proceeds of bingo it conducts exclusively for 450
the operation, maintenance, and improvement of its playing fields 451
of the type described in division (CC)(Y)(1) of this section.452

       (DD) "Amateur athletic organization" means any organization, 453
not organized for profit, that is organized and operated 454
exclusively to provide financial support to, or to operate, 455
athletic activities for persons who are training for amateur 456
athletic competition that is sanctioned by a national governing 457
body as defined in the "Amateur Sports Act of 1978," 90 Stat. 458
3045, 36 U.S.C.A. 373.459

       (EE)(Z) "Bingo supplies" means bingo cards or sheets; instant 460
bingo tickets or cards; electronic bingo aids; raffle tickets; 461
punch boards; seal cards; instant bingo ticket dispensers; and 462
devices for selecting or displaying the combination of bingo 463
letters and numbers or raffle tickets. Items that are "bingo 464
supplies" are not gambling devices if sold or otherwise provided, 465
and used, in accordance with this chapter. For purposes of this 466
chapter, "bingo supplies" are not to be considered equipment used 467
to conduct a bingo game.468

       (FF)(AA) "Instant bingo" means a form of bingo that uses469
shall use folded or banded tickets or paper cards with perforated 470
break-open tabs, a face of which is covered or otherwise hidden 471
from view to conceal a number, letter, or symbol, or set of 472
numbers, letters, or symbols, some of which have been designated 473
in advance as prize winners. "Instant bingo" includes seal cards, 474
and may also include games in which some winners are determined by 475
the random selection of one or more bingo numbers by the use of a 476
seal card or bingo blower. In all "instant bingo" the prize amount 477
and structure shall be predetermined. "Instant bingo" does not 478
include any device that is activated by the insertion of a coin, 479
currency, token, or an equivalent, and that contains as one of its 480
components a video display monitor that is capable of displaying 481
numbers, letters, symbols, or characters in winning or losing 482
combinations.483

       (GG)(BB) "Seal card" means a form of instant bingo that uses 484
instant bingo tickets in conjunction with a board or placard that 485
contains one or more seals that, when removed or opened, reveal 486
predesignated winning numbers, letters, or symbols.487

       (HH)(CC) "Raffle" means a form of bingo in which the one or 488
more prizes are won by one or more persons who have purchased a 489
raffle ticket. The one or more winners of the raffle are 490
determined by drawing a ticket stub or other detachable section 491
from a receptacle containing ticket stubs or detachable sections 492
corresponding to all tickets sold for the raffle. "Raffle" does 493
not include the drawing of a ticket stub or other detachable 494
section of a ticket purchased to attend a professional sporting 495
event if both of the following apply:496

        (1) The ticket stub or other detachable section is used to 497
select the winner of a free prize given away at the professional 498
sporting event; and499

       (2) The cost of the ticket is the same as the cost of a 500
ticket to the professional sporting event on days when no free 501
prize is given away.502

       (II)(DD) "Punch board" means a board containing a number of 503
holes or receptacles of uniform size in which are placed, 504
mechanically and randomly, serially numbered slips of paper that 505
may be punched or drawn from the hole or receptacle when used in 506
conjunction with instant bingo. A player may punch or draw the 507
numbered slips of paper from the holes or receptacles and obtain 508
the prize established for the game if the number drawn corresponds 509
to a winning number or, if the punch board includes the use of a 510
seal card, a potential winning number.511

       (JJ)(EE) "Gross profit" means gross receipts minus the amount 512
actually expended for the payment of prize awards.513

       (KK)(FF) "Net profit" means gross profit minus expenses.514

       (LL)(GG) "Expenses" means the reasonable amount of gross 515
profit actually expended for all of the following:516

       (1) The purchase or lease of bingo supplies;517

       (2) The annual license fee required under section 2915.08 of 518
the Revised Code;519

       (3) Bank fees and service charges for a bingo session or game 520
account described in section 2915.10 of the Revised Code;521

       (4) Audits and accounting services;522

       (5) Safes;523

       (6) Cash registers;524

       (7) Hiring security personnel;525

       (8) Advertising bingo;526

       (9) Renting premises in which to conduct a bingo session;527

       (10) Tables and chairs;528

       (11) Expenses for maintaining and operating a charitable 529
organization's facilities, including, but not limited to, a post 530
home, club house, lounge, tavern, or canteen and any grounds 531
attached to the post home, club house, lounge, tavern, or canteen;532

       (12) Payment of real property taxes and assessments that are 533
levied on a premises on which bingo is conducted;534

       (13) Any other product or service directly related to the 535
conduct of bingo that is authorized in rules adopted by the 536
attorney general under division (B)(1) of section 2915.08 of the 537
Revised Code.538

       (MM)(HH) "Person" has the same meaning as in section 1.59 of 539
the Revised Code and includes any firm or any other legal entity, 540
however organized.541

       (NN)(II) "Revoke" means to void permanently all rights and 542
privileges of the holder of a license issued under section 543
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable 544
gaming license issued by another jurisdiction.545

       (OO)(JJ) "Suspend" means to interrupt temporarily all rights 546
and privileges of the holder of a license issued under section 547
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable 548
gaming license issued by another jurisdiction.549

       (PP)(KK) "Distributor" means any person who purchases or 550
obtains bingo supplies and who does either of the following:551

       (1) Sells, offers for sale, or otherwise provides or offers 552
to provide the bingo supplies to another person for use in this 553
state;554

       (2) Modifies, converts, adds to, or removes parts from the 555
bingo supplies to further their promotion or sale for use in this 556
state.557

       (QQ)(LL) "Manufacturer" means any person who assembles 558
completed bingo supplies from raw materials, other items, or 559
subparts or who modifies, converts, adds to, or removes parts from 560
bingo supplies to further their promotion or sale.561

       (RR)(MM) "Gross annual revenues" means the annual gross 562
receipts derived from the conduct of bingo described in division 563
(S)(O)(1) of this section plus the annual net profit derived from 564
the conduct of bingo described in division (S)(O)(2) of this 565
section.566

       (SS)(NN) "Instant bingo ticket dispenser" means a mechanical 567
device that dispenses an instant bingo ticket or card as the sole 568
item of value dispensed and that has the following 569
characteristics:570

        (1) It is activated upon the insertion of United States 571
currency.572

        (2) It performs no gaming functions.573

        (3) It does not contain a video display monitor or generate 574
noise.575

        (4) It is not capable of displaying any numbers, letters, 576
symbols, or characters in winning or losing combinations.577

       (5) It does not simulate or display rolling or spinning 578
reels.579

        (6) It is incapable of determining whether a dispensed bingo 580
ticket or card is a winning or nonwinning ticket or card and 581
requires a winning ticket or card to be paid by a bingo game 582
operator.583

        (7) It may provide accounting and security features to aid in 584
accounting for the instant bingo tickets or cards it dispenses.585

       (8) It is not part of an electronic network and is not 586
interactive.587

       (TT)(OO)(1) "Electronic bingo aid" means an electronic device 588
used by a participant to monitor bingo cards or sheets purchased 589
at the time and place of a bingo session and that does all of the 590
following:591

        (a) It provides a means for a participant to input numbers 592
and letters announced by a bingo caller.593

        (b) It compares the numbers and letters entered by the 594
participant to the bingo faces previously stored in the memory of 595
the device.596

        (c) It identifies a winning bingo pattern.597

        (2) "Electronic bingo aid" does not include any device into 598
which a coin, currency, token, or an equivalent is inserted to 599
activate play.600

       (UU)(PP) "Deal of instant bingo tickets" means a single game 601
of instant bingo tickets all with the same serial number.602

       (VV)(QQ)(1) "Slot machine" means either of the following:603

       (a) Any mechanical, electronic, video, or digital device that 604
is capable of accepting anything of value, directly or indirectly, 605
from or on behalf of a player who gives the thing of value in the 606
hope of gain; 607

        (b) Any mechanical, electronic, video, or digital device that 608
is capable of accepting anything of value, directly or indirectly, 609
from or on behalf of a player to conduct bingo or a scheme or game 610
of chance.611

       (2) "Slot machine" does not include a skill-based amusement 612
machine or an instant bingo ticket dispenser.613

       (WW)(RR) "Net profit from the proceeds of the sale of instant 614
bingo" means gross profit minus the ordinary, necessary, and 615
reasonable expense expended for the purchase of instant bingo 616
supplies, and, in the case of instant bingo conducted by a 617
veteran's, fraternal, or sporting organization, minus the payment 618
by that organization of real property taxes and assessments levied 619
on a premises on which instant bingo is conducted.620

       (XX)(SS) "Charitable instant bingo organization" means an 621
organization that is exempt from federal income taxation under 622
subsection 501(a) and described in subsection 501(c)(3) of the 623
Internal Revenue Code and is a charitable organization as defined 624
in this section. A "charitable instant bingo organization" does 625
not include a charitable organization that is exempt from federal 626
income taxation under subsection 501(a) and described in 627
subsection 501(c)(3) of the Internal Revenue Code and that is 628
created by a veteran's organization, a fraternal organization, or 629
a sporting organization in regards to bingo conducted or assisted 630
by a veteran's organization, a fraternal organization, or a 631
sporting organization pursuant to section 2915.13 of the Revised 632
Code.633

       (YY)(TT) "Game flare" means the board or placard that 634
accompanies each deal of instant bingo tickets and that has 635
printed on or affixed to it the following information for the 636
game:637

       (1) The name of the game;638

       (2) The manufacturer's name or distinctive logo;639

       (3) The form number;640

       (4) The ticket count;641

       (5) The prize structure, including the number of winning 642
instant bingo tickets by denomination and the respective winning 643
symbol or number combinations for the winning instant bingo 644
tickets;645

       (6) The cost per play;646

       (7) The serial number of the game.647

       (ZZ) "Historic railroad educational organization" means an 648
organization that is exempt from federal income taxation under 649
subsection 501(a) and described in subsection 501(c)(3) of the 650
Internal Revenue Code, that owns in fee simple the tracks and the 651
right-of-way of a historic railroad that the organization restores 652
or maintains and on which the organization provides excursions as 653
part of a program to promote tourism and educate visitors 654
regarding the role of railroad transportation in Ohio history, and 655
that received as donations from a charitable organization that 656
holds a license to conduct bingo under this chapter an amount 657
equal to at least fifty per cent of that licensed charitable 658
organization's net proceeds from the conduct of bingo during each 659
of the five years preceding June 30, 2003. "Historic railroad" 660
means all or a portion of the tracks and right-of-way of a 661
railroad that was owned and operated by a for-profit common 662
carrier in this state at any time prior to January 1, 1950.663

       (AAA)(UU)(1) "Skill-based amusement machine" means a 664
mechanical, video, digital, or electronic device that rewards the 665
player or players, if at all, only with merchandise prizes or with 666
redeemable vouchers redeemable only for merchandise prizes, 667
provided that with respect to rewards for playing the game all of 668
the following apply:669

       (a) The wholesale value of a merchandise prize awarded as a 670
result of the single play of a machine does not exceed ten 671
dollars;672

       (b) Redeemable vouchers awarded for any single play of a 673
machine are not redeemable for a merchandise prize with a 674
wholesale value of more than ten dollars;675

       (c) Redeemable vouchers are not redeemable for a merchandise 676
prize that has a wholesale value of more than ten dollars times 677
the fewest number of single plays necessary to accrue the 678
redeemable vouchers required to obtain that prize; and679

       (d) Any redeemable vouchers or merchandise prizes are 680
distributed at the site of the skill-based amusement machine at 681
the time of play.682

       A card for the purchase of gasoline is a redeemable voucher 683
for purposes of division (AAA)(UU)(1) of this section even if the 684
skill-based amusement machine for the play of which the card is 685
awarded is located at a place where gasoline may not be legally 686
distributed to the public or the card is not redeemable at the 687
location of, or at the time of playing, the skill-based amusement 688
machine.689

       (2) A device shall not be considered a skill-based amusement 690
machine and shall be considered a slot machine if it pays cash or 691
one or more of the following apply:692

       (a) The ability of a player to succeed at the game is 693
impacted by the number or ratio of prior wins to prior losses of 694
players playing the game.695

       (b) Any reward of redeemable vouchers is not based solely on 696
the player achieving the object of the game or the player's score;697

       (c) The outcome of the game, or the value of the redeemable 698
voucher or merchandise prize awarded for winning the game, can be 699
controlled by a source other than any player playing the game.700

       (d) The success of any player is or may be determined by a 701
chance event that cannot be altered by player actions.702

       (e) The ability of any player to succeed at the game is 703
determined by game features not visible or known to the player.704

       (f) The ability of the player to succeed at the game is 705
impacted by the exercise of a skill that no reasonable player 706
could exercise.707

       (3) All of the following apply to any machine that is 708
operated as described in division (AAA)(UU)(1) of this section:709

       (a) As used in division (UU) of this section, "game" and 710
"play" mean one event from the initial activation of the machine 711
until the results of play are determined without payment of 712
additional consideration. An individual utilizing a machine that 713
involves a single game, play, contest, competition, or tournament 714
may be awarded redeemable vouchers or merchandise prizes based on 715
the results of play.716

       (b) Advance play for a single game, play, contest, 717
competition, or tournament participation may be purchased. The 718
cost of the contest, competition, or tournament participation may 719
be greater than a single noncontest, competition, or tournament 720
play.721

       (c) To the extent that the machine is used in a contest, 722
competition, or tournament, that contest, competition, or 723
tournament has a defined starting and ending date and is open to 724
participants in competition for scoring and ranking results toward 725
the awarding of redeemable vouchers or merchandise prizes that are 726
stated prior to the start of the contest, competition, or 727
tournament. 728

       (4) For purposes of division (AAA)(UU)(1) of this section, 729
the mere presence of a device, such as a pin-setting, 730
ball-releasing, or scoring mechanism, that does not contribute to 731
or affect the outcome of the play of the game does not make the 732
device a skill-based amusement machine.733

       (BBB)(VV) "Merchandise prize" means any item of value, but 734
shall not include any of the following:735

       (1) Cash, gift cards, or any equivalent thereof;736

       (2) Plays on games of chance, state lottery tickets, bingo, 737
or instant bingo;738

       (3) Firearms, tobacco, or alcoholic beverages; or739

       (4) A redeemable voucher that is redeemable for any of the 740
items listed in division (BBB)(VV)(1), (2), or (3) of this 741
section.742

       (CCC)(WW) "Redeemable voucher" means any ticket, token, 743
coupon, receipt, or other noncash representation of value.744

       (DDD)(XX) "Pool not conducted for profit" means a scheme in 745
which a participant gives a valuable consideration for a chance to 746
win a prize and the total amount of consideration wagered is 747
distributed to a participant or participants.748

       (EEE)(YY) "Sporting organization" means a hunting, fishing, 749
or trapping organization, other than a college or high school 750
fraternity or sorority, that is not organized for profit, that is 751
affiliated with a state or national sporting organization, 752
including but not limited to, the Ohio league of Ohio sportsmen, 753
and that has been in continuous existence in this state for a 754
period of three years.755

       (FFF)(ZZ) "Community action agency" has the same meaning as 756
in section 122.66 of the Revised Code.757

       (AAA) "Permitted location" means a building leased by a 758
county in this state under a lease pursuant to which charitable 759
organizations have operated festivals weekly for the eighteen 760
months immediately preceding the effective date of this amendment, 761
at which games of chance were offered.762

       (BBB) "Charity card room" means a facility at a permitted 763
location that offers games of chance conducted by a charitable 764
organization.765

       Sec. 2915.02.  (A) No person shall do any of the following:766

       (1) Engage in bookmaking, or knowingly engage in conduct that 767
facilitates bookmaking;768

       (2) Establish, promote, or operate or knowingly engage in 769
conduct that facilitates any game of chance conducted for profit 770
or any scheme of chance;771

       (3) Knowingly procure, transmit, exchange, or engage in 772
conduct that facilitates the procurement, transmission, or 773
exchange of information for use in establishing odds or 774
determining winners in connection with bookmaking or with any game 775
of chance conducted for profit or any scheme of chance;776

       (4) Engage in betting or in playing any scheme or game of 777
chance as a substantial source of income or livelihood;778

       (5) With purpose to violate division (A)(1), (2), (3), or (4) 779
of this section, acquire, possess, control, or operate any 780
gambling device.781

       (B) For purposes of division (A)(1) of this section, a person 782
facilitates bookmaking if the person in any way knowingly aids an 783
illegal bookmaking operation, including, without limitation, 784
placing a bet with a person engaged in or facilitating illegal 785
bookmaking. For purposes of division (A)(2) of this section, a 786
person facilitates a game of chance conducted for profit or a 787
scheme of chance if the person in any way knowingly aids in the 788
conduct or operation of any such game or scheme, including, 789
without limitation, playing any such game or scheme.790

       (C) This section does not prohibit conduct in connection with 791
gambling expressly permitted by law.792

       (D) This section does not apply to any of the following:793

       (1) Games of chance, if all of the following apply:794

       (a) The games of chance are not craps for money or roulette 795
for money.796

       (b) The games of chance are conducted by a charitable 797
organization that is, and has received from the internal revenue 798
service a determination letter that is currently in effect, 799
stating that the organization is, exempt from federal income 800
taxation under subsection 501(a) and described in subsection 801
501(c)(3) of the Internal Revenue Code.802

       (c) The games of chance are conducted at festivals of the 803
charitable organization that are conducted either for a period of 804
four consecutive days or less and not more than twice a year or 805
for a period ofa total of five consecutive days not more than 806
once a year, and are conducted on premises owned by the charitable 807
organization for a period of no less than one year immediately 808
preceding the conducting of the games of chance, on premises 809
leased from a governmental unit, or on premises that are leased 810
from a veteran's or fraternal organization and that have been 811
owned by the lessor veteran's or fraternal organization for a 812
period of no less than one year immediately preceding the 813
conducting of the games of chance.814

       A charitable organization shall not lease premises from a 815
veteran's or fraternal organization to conduct a festival 816
described in division (D)(1)(c) of this section if the veteran's 817
or fraternal organization already has leased the premises twelve 818
times during the preceding year to charitable organizations for 819
that purpose. If a charitable organization leases premises from a 820
veteran's or fraternal organization to conduct a festival 821
described in division (D)(1)(c) of this section, the charitable 822
organization shall not pay a rental rate for the premises per day 823
of the festival that exceeds the rental rate per bingo session 824
that a charitable organization may pay under division (B)(1) of 825
section 2915.09 of the Revised Code when it leases premises from 826
another charitable organization to conduct bingo games.827

       (d) All of the money or assets received from the games of 828
chance after deduction only of prizes paid out during the conduct 829
of the games of chance are used by, or given, donated, or 830
otherwise transferred to, any organization that is described in 831
subsection 509(a)(1), 509(a)(2), or 509(a)(3) of the Internal 832
Revenue Code and is either a governmental unit or an organization 833
that is tax exempt under subsection 501(a) and described in 834
subsection 501(c)(3) of the Internal Revenue Code;835

       (e) The games of chance are not conducted during, or within 836
ten hours of, a bingo game conducted for amusement purposes only 837
pursuant to section 2915.12 of the Revised Code.838

       No person shall receive any commission, wage, salary, reward, 839
tip, donation, gratuity, or other form of compensation, directly 840
or indirectly, for operating or assisting in the operation of any 841
game of chance.842

       (2) Any tag fishing tournament operated under a permit issued 843
under section 1533.92 of the Revised Code, as "tag fishing 844
tournament" is defined in section 1531.01 of the Revised Code;845

       (3) Bingo conducted by a charitable organization that holds a 846
license issued under section 2915.08 of the Revised Code.847

       (E) Division (D) of this section shall not be construed to 848
authorize the sale, lease, or other temporary or permanent 849
transfer of the right to conduct games of chance, as granted by 850
that division, by any charitable organization that is granted that 851
right.852

       (F) Whoever violates this section is guilty of gambling, a 853
misdemeanor of the first degree. If the offender previously has 854
been convicted of any gambling offense, gambling is a felony of 855
the fifth degree.856

       Sec. 2915.06. (A) No person shall give to another person any 857
item described in division (BBB)(VV)(1), (2), (3), or (4) of 858
section 2915.01 of the Revised Code in exchange for a noncash 859
prize, toy, or novelty received as a reward for playing or 860
operating a skill-based amusement machine or for a free or 861
reduced-price game won on a skill-based amusement machine.862

        (B) Whoever violates division (A) of this section is guilty 863
of skill-based amusement machine prohibited conduct. A violation 864
of division (A) of this section is a misdemeanor of the first 865
degree for each redemption of a prize that is involved in the 866
violation. If the offender previously has been convicted of a 867
violation of division (A) of this section, a violation of that 868
division is a felony of the fifth degree for each redemption of a 869
prize that is involved in the violation. The maximum fine 870
authorized to be imposed for a felony of the fifth degree shall be 871
imposed upon the offender.872

       Sec. 2915.08.  (A)(1) Annually before the first day of 873
January, a charitable organization that desires to conduct bingo, 874
instant bingo at a bingo session, or instant bingo other than at a 875
bingo session shall make out, upon a form to be furnished by the 876
attorney general for that purpose, an application for a license to 877
conduct bingo, instant bingo at a bingo session, or instant bingo 878
other than at a bingo session and deliver that application to the 879
attorney general together with a license fee as follows:880

       (a) Except as otherwise provided in this division, for a 881
license for the conduct of bingo, two hundred dollars;882

        (b) For a license for the conduct of instant bingo at a bingo 883
session or instant bingo other than at a bingo session for a 884
charitable organization that previously has not been licensed 885
under this chapter to conduct instant bingo at a bingo session or 886
instant bingo other than at a bingo session, a license fee of five 887
hundred dollars, and for any other charitable organization, a 888
license fee that is based upon the gross profits received by the 889
charitable organization from the operation of instant bingo at a 890
bingo session or instant bingo other than at a bingo session, 891
during the one-year period ending on the thirty-first day of 892
October of the year immediately preceding the year for which the 893
license is sought, and that is one of the following:894

       (i) Five hundred dollars, if the total is fifty thousand 895
dollars or less;896

       (ii) One thousand two hundred fifty dollars plus one-fourth 897
per cent of the gross profit, if the total is more than fifty 898
thousand dollars but less than two hundred fifty thousand one 899
dollars;900

       (iii) Two thousand two hundred fifty dollars plus one-half 901
per cent of the gross profit, if the total is more than two 902
hundred fifty thousand dollars but less than five hundred thousand 903
one dollars;904

       (iv) Three thousand five hundred dollars plus one per cent of 905
the gross profit, if the total is more than five hundred thousand 906
dollars but less than one million one dollars;907

       (v) Five thousand dollars plus one per cent of the gross 908
profit, if the total is one million one dollars or more;909

       (c) A reduced license fee established by the attorney general 910
pursuant to division (G) of this section.911

       (d) For a license to conduct bingo for a charitable 912
organization that prior to the effective date of this amendment913
July 1, 2003, has not been licensed under this chapter to conduct 914
bingo, instant bingo at a bingo session, or instant bingo other 915
than at a bingo session, a license fee established by rule by the 916
attorney general in accordance with division (H) of this section.917

       (2) The application shall be in the form prescribed by the 918
attorney general, shall be signed and sworn to by the applicant, 919
and shall contain all of the following:920

       (a) The name and post-office address of the applicant;921

       (b) A statement that the applicant is a charitable 922
organization and that it has been in continuous existence as a 923
charitable organization in this state for two years immediately 924
preceding the making of the application or for five years in the 925
case of a fraternal organization or a nonprofit medical 926
organization;927

       (c) The location at which the organization will conduct 928
bingo, which location shall be within the county in which the 929
principal place of business of the applicant is located, or within 930
the municipal corporation in which the principal place of business 931
of the applicant is located if the organization is located in more 932
than one municipal corporation, the days of the week and the times 933
on each of those days when bingo will be conducted, whether the 934
organization owns, leases, or subleases the premises, and a copy 935
of the rental agreement if it leases or subleases the premises;936

       (d) A statement of the applicant's previous history, record, 937
and association that is sufficient to establish that the applicant 938
is a charitable organization, and a copy of a determination letter 939
that is issued by the Internal Revenue Service and states that the 940
organization is tax exempt under subsection 501(a) and described 941
in subsection 501(c)(3), 501(c)(4), 501(c)(7), 501(c)(8), 942
501(c)(10), or 501(c)(19) of the Internal Revenue Code;943

       (e) A statement as to whether the applicant has ever had any 944
previous application refused, whether it previously has had a 945
license revoked or suspended, and the reason stated by the 946
attorney general for the refusal, revocation, or suspension;947

       (f) A statement of the charitable purposes for which the net 948
profit derived from bingo, other than instant bingo, will be used, 949
and a statement of how the net profit derived from instant bingo 950
will be distributed in accordance with section 2915.101 of the 951
Revised Code;952

       (g) Other necessary and reasonable information that the 953
attorney general may require by rule adopted pursuant to section 954
111.15 of the Revised Code;955

       (h) If the applicant is a charitable trust as defined in 956
section 109.23 of the Revised Code, a statement as to whether it 957
has registered with the attorney general pursuant to section 958
109.26 of the Revised Code or filed annual reports pursuant to 959
section 109.31 of the Revised Code, and, if it is not required to 960
do either, the exemption in section 109.26 or 109.31 of the 961
Revised Code that applies to it;962

       (i) If the applicant is a charitable organization as defined 963
in section 1716.01 of the Revised Code, a statement as to whether 964
it has filed with the attorney general a registration statement 965
pursuant to section 1716.02 of the Revised Code and a financial 966
report pursuant to section 1716.04 of the Revised Code, and, if it 967
is not required to do both, the exemption in section 1716.03 of 968
the Revised Code that applies to it;969

       (j) In the case of an applicant seeking to qualify as a youth 970
athletic park organization, a statement issued by a board or body 971
vested with authority under Chapter 755. of the Revised Code for 972
the supervision and maintenance of recreation facilities in the 973
territory in which the organization is located, certifying that 974
the playing fields owned by the organization were used for at 975
least one hundred days during the year in which the statement is 976
issued, and were open for use to all residents of that territory, 977
regardless of race, color, creed, religion, sex, or national 978
origin, for athletic activities by youth athletic organizations 979
that do not discriminate on the basis of race, color, creed, 980
religion, sex, or national origin, and that the fields were not 981
used for any profit-making activity at any time during the year. 982
That type of board or body is authorized to issue the statement 983
upon request and shall issue the statement if it finds that the 984
applicant's playing fields were so used.985

       (3) The attorney general, within thirty days after receiving 986
a timely filed application from a charitable organization that has 987
been issued a license under this section that has not expired and 988
has not been revoked or suspended, shall send a temporary permit 989
to the applicant specifying the date on which the application was 990
filed with the attorney general and stating that, pursuant to 991
section 119.06 of the Revised Code, the applicant may continue to 992
conduct bingo until a new license is granted or, if the 993
application is rejected, until fifteen days after notice of the 994
rejection is mailed to the applicant. The temporary permit does 995
not affect the validity of the applicant's application and does 996
not grant any rights to the applicant except those rights 997
specifically granted in section 119.06 of the Revised Code. The 998
issuance of a temporary permit by the attorney general pursuant to 999
this division does not prohibit the attorney general from 1000
rejecting the applicant's application because of acts that the 1001
applicant committed, or actions that the applicant failed to take, 1002
before or after the issuance of the temporary permit.1003

       (4) Within thirty days after receiving an initial license 1004
application from a charitable organization to conduct bingo, 1005
instant bingo at a bingo session, or instant bingo other than at a 1006
bingo session, the attorney general shall conduct a preliminary 1007
review of the application and notify the applicant regarding any 1008
deficiencies. Once an application is deemed complete, or beginning 1009
on the thirtieth day after the application is filed, if the 1010
attorney general failed to notify the applicant of any 1011
deficiencies, the attorney general shall have an additional sixty 1012
days to conduct an investigation and either grant or deny the 1013
application based on findings established and communicated in 1014
accordance with divisions (B) and (E) of this section. As an 1015
option to granting or denying an initial license application, the 1016
attorney general may grant a temporary license and request 1017
additional time to conduct the investigation if the attorney 1018
general has cause to believe that additional time is necessary to 1019
complete the investigation and has notified the applicant in 1020
writing about the specific concerns raised during the 1021
investigation.1022

       (B)(1) The attorney general shall adopt rules to enforce 1023
sections 2915.01, 2915.02, and 2915.07 to 2915.13 of the Revised 1024
Code to ensure that bingo or instant bingo is conducted in 1025
accordance with those sections and to maintain proper control over 1026
the conduct of bingo or instant bingo. The rules, except rules 1027
adopted pursuant to divisions (A)(2)(g) and (G) of this section, 1028
shall be adopted pursuant to Chapter 119. of the Revised Code. The 1029
attorney general shall license charitable organizations to conduct 1030
bingo, instant bingo at a bingo session, or instant bingo other 1031
than at a bingo session in conformance with this chapter and with 1032
the licensing provisions of Chapter 119. of the Revised Code.1033

       (2) The attorney general may refuse to grant a license to any 1034
organization, or revoke or suspend the license of any 1035
organization, that does any of the following or to which any of 1036
the following applies:1037

       (a) Fails or has failed at any time to meet any requirement 1038
of section 109.26, 109.31, or 1716.02, or sections 2915.07 to 1039
2915.11 of the Revised Code, or violates or has violated any 1040
provision of sections 2915.02 or 2915.07 to 2915.13 of the Revised 1041
Code or any rule adopted by the attorney general pursuant to this 1042
section;1043

       (b) Makes or has made an incorrect or false statement that is 1044
material to the granting of the license in an application filed 1045
pursuant to division (A) of this section;1046

       (c) Submits or has submitted any incorrect or false 1047
information relating to an application if the information is 1048
material to the granting of the license;1049

       (d) Maintains or has maintained any incorrect or false 1050
information that is material to the granting of the license in the 1051
records required to be kept pursuant to divisions (A) and (C) of 1052
section 2915.10 of the Revised Code, if applicable;1053

       (e) The attorney general has good cause to believe that the 1054
organization will not conduct bingo, instant bingo at a bingo 1055
session, or instant bingo other than at a bingo session in 1056
accordance with sections 2915.07 to 2915.13 of the Revised Code or 1057
with any rule adopted by the attorney general pursuant to this 1058
section.1059

       (3) For the purposes of division (B) of this section, any 1060
action of an officer, trustee, agent, representative, or bingo 1061
game operator of an organization is an action of the organization.1062

       (C) The attorney general may grant licenses to charitable 1063
organizations that are branches, lodges, or chapters of national 1064
charitable organizations.1065

       (D) The attorney general shall send notice in writing to the 1066
prosecuting attorney and sheriff of the county in which the 1067
organization will conduct bingo, instant bingo at a bingo session, 1068
or instant bingo other than at a bingo session, as stated in its 1069
application for a license or amended license, and to any other law 1070
enforcement agency in that county that so requests, of all of the 1071
following:1072

       (1) The issuance of the license;1073

       (2) The issuance of the amended license;1074

       (3) The rejection of an application for and refusal to grant 1075
a license;1076

       (4) The revocation of any license previously issued;1077

       (5) The suspension of any license previously issued.1078

       (E) A license issued by the attorney general shall set forth 1079
the information contained on the application of the charitable 1080
organization that the attorney general determines is relevant, 1081
including, but not limited to, the location at which the 1082
organization will conduct bingo, instant bingo at a bingo session, 1083
or instant bingo other than at a bingo session and the days of the 1084
week and the times on each of those days when bingo will be 1085
conducted. If the attorney general refuses to grant or revokes or 1086
suspends a license, the attorney general shall notify the 1087
applicant in writing and specifically identify the reason for the 1088
refusal, revocation, or suspension in narrative form and, if 1089
applicable, by identifying the section of the Revised Code 1090
violated. The failure of the attorney general to give the written 1091
notice of the reasons for the refusal, revocation, or suspension 1092
or a mistake in the written notice does not affect the validity of 1093
the attorney general's refusal to grant, or the revocation or 1094
suspension of, a license. If the attorney general fails to give 1095
the written notice or if there is a mistake in the written notice, 1096
the applicant may bring an action to compel the attorney general 1097
to comply with this division or to correct the mistake, but the 1098
attorney general's order refusing to grant, or revoking or 1099
suspending, a license shall not be enjoined during the pendency of 1100
the action.1101

       (F) A charitable organization that has been issued a license 1102
pursuant to division (B) of this section but that cannot conduct 1103
bingo or instant bingo at the location, or on the day of the week 1104
or at the time, specified on the license due to circumstances that 1105
make it impractical to do so may apply in writing, together with 1106
an application fee of two hundred fifty dollars, to the attorney 1107
general, at least thirty days prior to a change in location, day 1108
of the week, or time, and request an amended license. The 1109
application shall describe the causes making it impractical for 1110
the organization to conduct bingo or instant bingo in conformity 1111
with its license and shall indicate the location, days of the 1112
week, and times on each of those days when it desires to conduct 1113
bingo or instant bingo. Except as otherwise provided in this 1114
division, the attorney general shall issue the amended license in 1115
accordance with division (E) of this section, and the organization 1116
shall surrender its original license to the attorney general. The 1117
attorney general may refuse to grant an amended license according 1118
to the terms of division (B) of this section.1119

       (G) The attorney general, by rule adopted pursuant to section 1120
111.15 of the Revised Code, shall establish a schedule of reduced 1121
license fees for charitable organizations that desire to conduct 1122
bingo or instant bingo during fewer than twenty-six weeks in any 1123
calendar year.1124

       (H) The attorney general, by rule adopted pursuant to section 1125
111.15 of the Revised Code, shall establish license fees for the 1126
conduct of bingo, instant bingo at a bingo session, or instant 1127
bingo other than at a bingo session for charitable organizations 1128
that prior to the effective date of this amendmentJuly 1, 2003,1129
have not been licensed to conduct bingo, instant bingo at a bingo 1130
session, or instant bingo other than at a bingo session under this 1131
chapter.1132

       (I) The attorney general may enter into a written contract 1133
with any other state agency to delegate to that state agency the 1134
powers prescribed to the attorney general under Chapter 2915. of 1135
the Revised Code.1136

        (J) The attorney general, by rule adopted pursuant to section 1137
111.15 of the Revised Code, may adopt rules to determine the 1138
requirements for a charitable organization that is exempt from 1139
federal income taxation under subsection 501(a) and described in 1140
subsection 501(c)(3) of the Internal Revenue Code to be in good 1141
standing in the state.1142

       Sec. 2915.09.  (A) No charitable organization that conducts 1143
bingo shall fail to do any of the following:1144

       (1) Own all of the equipment used to conduct bingo or lease 1145
that equipment from a charitable organization that is licensed to 1146
conduct bingo, or from the landlord of a premises where bingo is 1147
conducted, for a rental rate that is not more than is customary 1148
and reasonable for that equipment;1149

       (2) Except as otherwise provided in division (A)(3) of this 1150
section, use all of the gross receipts from bingo for paying 1151
prizes, for reimbursement of expenses for or for renting premises 1152
in which to conduct a bingo session, for reimbursement of expenses 1153
for or for purchasing or leasing bingo supplies used in conducting 1154
bingo, for reimbursement of expenses for or for hiring security 1155
personnel, for reimbursement of expenses for or for advertising 1156
bingo, or for reimbursement of other expenses or for other 1157
expenses listed in division (LL)(GG) of section 2915.01 of the 1158
Revised Code, provided that the amount of the receipts so spent is 1159
not more than is customary and reasonable for a similar purchase, 1160
lease, hiring, advertising, or expense. If the building in which 1161
bingo is conducted is owned by the charitable organization 1162
conducting bingo and the bingo conducted includes a form of bingo 1163
described in division (S)(O)(1) of section 2915.01 of the Revised 1164
Code, the charitable organization may deduct from the total amount 1165
of the gross receipts from each session a sum equal to the lesser 1166
of six hundred dollars or forty-five per cent of the gross 1167
receipts from the bingo described in that division as 1168
consideration for the use of the premises.1169

       (3) Use, or give, donate, or otherwise transfer, all of the 1170
net profit derived from bingo, other than instant bingo, for a 1171
charitable purpose listed in its license application and described 1172
in division (Z)(V) of section 2915.01 of the Revised Code, or 1173
distribute all of the net profit from the proceeds of the sale of 1174
instant bingo as stated in its license application and in 1175
accordance with section 2915.101 of the Revised Code.1176

       (B) No charitable organization that conducts a bingo game 1177
described in division (S)(O)(1) of section 2915.01 of the Revised 1178
Code shall fail to do any of the following:1179

       (1) Conduct the bingo game on premises that are owned by the 1180
charitable organization, on premises that are owned by another 1181
charitable organization and leased from that charitable 1182
organization for a rental rate not in excess of the lesser of six 1183
hundred dollars per bingo session or forty-five per cent of the 1184
gross receipts of the bingo session, on premises that are leased 1185
from a person other than a charitable organization for a rental 1186
rate that is not more than is customary and reasonable for 1187
premises that are similar in location, size, and quality but not 1188
in excess of four hundred fifty dollars per bingo session, or on 1189
premises that are owned by a person other than a charitable 1190
organization, that are leased from that person by another 1191
charitable organization, and that are subleased from that other 1192
charitable organization by the charitable organization for a 1193
rental rate not in excess of four hundred fifty dollars per bingo 1194
session. No charitable organization is required to pay property 1195
taxes or assessments on premises that the charitable organization 1196
leases from another person to conduct bingo sessions. If the 1197
charitable organization leases from a person other than a 1198
charitable organization the premises on which it conducts bingo 1199
sessions, the lessor of the premises shall provide the premises to 1200
the organization and shall not provide the organization with bingo 1201
game operators, security personnel, concessions or concession 1202
operators, bingo supplies, or any other type of service. A 1203
charitable organization shall not lease or sublease premises that 1204
it owns or leases to more than onethree other charitable 1205
organizationorganizations per calendar week for the purpose of1206
conducting bingo sessions on the premises. A person that is not a 1207
charitable organization shall not lease premises that it owns, 1208
leases, or otherwise is empowered to lease to more than three 1209
charitable organizations per calendar week for conducting bingo 1210
sessions on the premises. In no case shall more than nine bingo 1211
sessions be conducted on any premises in any calendar week.1212

       (2) Display its license conspicuously at the premises where 1213
the bingo session is conducted;1214

       (3) Conduct the bingo session in accordance with the 1215
definition of bingo set forth in division (S)(O)(1) of section 1216
2915.01 of the Revised Code.1217

        (C) No charitable organization that conducts a bingo game 1218
described in division (S)(O)(1) of section 2915.01 of the Revised 1219
Code shall do any of the following:1220

       (1) Pay any compensation to a bingo game operator for 1221
operating a bingo session that is conducted by the charitable 1222
organization or for preparing, selling, or serving food or 1223
beverages at the site of the bingo session, permit any auxiliary 1224
unit or society of the charitable organization to pay compensation 1225
to any bingo game operator who prepares, sells, or serves food or 1226
beverages at a bingo session conducted by the charitable 1227
organization, or permit any auxiliary unit or society of the 1228
charitable organization to prepare, sell, or serve food or 1229
beverages at a bingo session conducted by the charitable 1230
organization, if the auxiliary unit or society pays any 1231
compensation to the bingo game operators who prepare, sell, or 1232
serve the food or beverages;1233

       (2) Pay consulting fees to any person for any services 1234
performed in relation to the bingo session;1235

       (3) Pay concession fees to any person who provides 1236
refreshments to the participants in the bingo session;1237

       (4) Except as otherwise provided in division (C)(4) of this 1238
section, conduct more than three bingo sessions in any seven-day 1239
period. A volunteer firefighter's organization or a volunteer 1240
rescue service organization that conducts not more than five bingo 1241
sessions in a calendar year may conduct more than three bingo 1242
sessions in a seven-day period after notifying the attorney 1243
general when it will conduct the sessions.1244

       (5) Pay out more than six thousand dollars in prizes for 1245
bingo games described in division (S)(O)(1) of section 2915.01 of 1246
the Revised Code during any bingo session that is conducted by the 1247
charitable organization. "Prizes" does not include awards from the 1248
conduct of instant bingo.1249

       (6) Conduct a bingo session at any time during the ten-hour1250
eight-hour period between midnighttwo a.m. and ten a.m., at any 1251
time during, or within ten hours of, a bingo game conducted for 1252
amusement only pursuant to section 2915.12 of the Revised Code, at 1253
any premises not specified on its license, or on any day of the 1254
week or during any time period not specified on its license. 1255
Division (A)(6) of this section does not prohibit the sale of 1256
instant bingo tickets beginning at nine a.m. for a bingo session 1257
that begins at ten a.m. If circumstances make it impractical for 1258
the charitable organization to conduct a bingo session at the 1259
premises, or on the day of the week or at the time, specified on 1260
its license, or if a charitable organization wants to conduct 1261
bingo sessions on a day of the week or at a time other than the 1262
day or time specified on its license, the charitable organization 1263
may apply in writing to the attorney general for an amended 1264
license pursuant to division (F) of section 2915.08 of the Revised 1265
Code. A charitable organization may apply twice in each calendar 1266
year for an amended license to conduct bingo sessions on a day of 1267
the week or at a time other than the day or time specified on its 1268
license. If the amended license is granted, the organization may 1269
conduct bingo sessions at the premises, on the day of the week, 1270
and at the time specified on its amended license.1271

       (7) Permit any person whom the charitable organization knows, 1272
or should have known, is under the age of eighteen to work as a 1273
bingo game operator;1274

       (8) Permit any person whom the charitable organization knows, 1275
or should have known, has been convicted of a felony or gambling 1276
offense in any jurisdiction to be a bingo game operator;1277

       (9) Permit the lessor of the premises on which the bingo 1278
session is conducted, if the lessor is not a charitable 1279
organization, to provide the charitable organization with bingo 1280
game operators, security personnel, concessions, bingo supplies, 1281
or any other type of service;1282

       (10) Purchase or lease bingo supplies from any person except 1283
a distributor issued a license under section 2915.081 of the 1284
Revised Code;1285

       (11)(a) Use or permit the use of electronic bingo aids except 1286
under the following circumstances:1287

        (i) For any single participant, not more than ninety bingo 1288
faces can be played using an electronic bingo aid or aids.1289

        (ii) The charitable organization shall provide a participant 1290
using an electronic bingo aid with corresponding paper bingo cards 1291
or sheets.1292

        (iii) The total price of bingo faces played with an 1293
electronic bingo aid shall be equal to the total price of the same 1294
number of bingo faces played with a paper bingo card or sheet sold 1295
at the same bingo session but without an electronic bingo aid.1296

       (iv) An electronic bingo aid cannot be part of an electronic 1297
network other than a network that includes only bingo aids and 1298
devices that are located on the premises at which the bingo is 1299
being conducted or be interactive with any device not located on 1300
the premises at which the bingo is being conducted.1301

        (v) An electronic bingo aid cannot be used to participate in 1302
bingo that is conducted at a location other than the location at 1303
which the bingo session is conducted and at which the electronic 1304
bingo aid is used.1305

        (vi) An electronic bingo aid cannot be used to provide for 1306
the input of numbers and letters announced by a bingo caller other 1307
than the bingo caller who physically calls the numbers and letters 1308
at the location at which the bingo session is conducted and at 1309
which the electronic bingo aid is used.1310

        (b) The attorney general may adopt rules in accordance with 1311
Chapter 119. of the Revised Code that govern the use of electronic 1312
bingo aids. The rules may include a requirement that an electronic 1313
bingo aid be capable of being audited by the attorney general to 1314
verify the number of bingo cards or sheets played during each 1315
bingo session.1316

       (12) Permit any person the charitable organization knows, or 1317
should have known, to be under eighteen years of age to play bingo 1318
described in division (S)(O)(1) of section 2915.01 of the Revised 1319
Code.1320

        (D)(1) Except as otherwise provided in division (D)(3) of 1321
this section, no charitable organization shall provide to a bingo 1322
game operator, and no bingo game operator shall receive or accept, 1323
any commission, wage, salary, reward, tip, donation, gratuity, or 1324
other form of compensation, directly or indirectly, regardless of 1325
the source, for conducting bingo or providing other work or labor 1326
at the site of bingo during a bingo session. 1327

       (2) Except as otherwise provided in division (D)(3) of this 1328
section, no charitable organization shall provide to a bingo game 1329
operator any commission, wage, salary, reward, tip, donation, 1330
gratuity, or other form of compensation, directly or indirectly, 1331
regardless of the source, for conducting instant bingo other than 1332
at a bingo session at the site of instant bingo other than at a 1333
bingo session.1334

       (3) Nothing in division (D) of this section prohibits an 1335
employee of a fraternal organization, veteran's organization, or 1336
sporting organization from selling instant bingo tickets or cards 1337
to the organization's members or invited guests, as long as no 1338
portion of the employee's compensation is paid from any receipts 1339
of bingo.1340

       (E) Notwithstanding division (B)(1) of this section, a 1341
charitable organization that, prior to December 6, 1977, has 1342
entered into written agreements for the lease of premises it owns 1343
to another charitable organization or other charitable 1344
organizations for the conducting of bingo sessions so that more 1345
than two bingo sessions are conducted per calendar week on the 1346
premises, and a person that is not a charitable organization and 1347
that, prior to December 6, 1977, has entered into written 1348
agreements for the lease of premises it owns to charitable 1349
organizations for the conducting of more than two bingo sessions 1350
per calendar week on the premises, may continue to lease the 1351
premises to those charitable organizations, provided that no more 1352
than four sessions are conducted per calendar week, that the 1353
lessor organization or person has notified the attorney general in 1354
writing of the organizations that will conduct the sessions and 1355
the days of the week and the times of the day on which the 1356
sessions will be conducted, that the initial lease entered into 1357
with each organization that will conduct the sessions was filed 1358
with the attorney general prior to December 6, 1977, and that each 1359
organization that will conduct the sessions was issued a license 1360
to conduct bingo games by the attorney general prior to December 1361
6, 1977.1362

       (F) This section does not prohibit a bingo licensed 1363
charitable organization or a game operator from giving any person 1364
an instant bingo ticket as a prize.1365

       (G) Whoever violates division (A)(2) of this section is 1366
guilty of illegally conducting a bingo game, a felony of the 1367
fourth degree. Except as otherwise provided in this division, 1368
whoever violates division (A)(1) or (3), (B)(1), (2), or (3), 1369
(C)(1) to (12), or (D) of this section is guilty of a minor 1370
misdemeanor. If the offender previously has been convicted of a 1371
violation of division (A)(1) or (3), (B)(1), (2), or (3), (C)(1) 1372
to (11), or (D) of this section, a violation of division (A)(1) or 1373
(3), (B)(1), (2), or (3), (C), or (D) of this section is a 1374
misdemeanor of the first degree. Whoever violates division (C)(12) 1375
of this section is guilty of a misdemeanor of the first degree, if 1376
the offender previously has been convicted of a violation of 1377
division (C)(12) of this section, a felony of the fourth degree.1378

       Sec. 2915.091.  (A) No charitable organization that conducts 1379
instant bingo shall do any of the following:1380

       (1) Fail to comply with the requirements of divisions (A)(1), 1381
(2), and (3) of section 2915.09 of the Revised Code;1382

       (2) Conduct instant bingo unless either of the following 1383
applies:1384

       (a) That organization is, and has received from the internal 1385
revenue service a determination letter that is currently in effect 1386
stating that the organization is, exempt from federal income 1387
taxation under subsection 501(a), is described in subsection 1388
501(c)(3) of the Internal Revenue Code, is a charitable 1389
organization as defined in section 2915.01 of the Revised Code, is 1390
in good standing in the state pursuant to section 2915.08 of the 1391
Revised Code, and is in compliance with Chapter 1716. of the 1392
Revised Code;1393

       (b) That organization is, and has received from the internal 1394
revenue service a determination letter that is currently in effect 1395
stating that the organization is, exempt from federal income 1396
taxation under subsection 501(a), is described in subsection 1397
501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) or is a veteran's 1398
organization described in subsection 501(c)(4) of the Internal 1399
Revenue Code, and conducts instant bingo under section 2915.13 of 1400
the Revised Code.1401

       (3) Conduct instant bingo on any day, at any time, or at any 1402
premises not specified on the organization's license issued 1403
pursuant to section 2915.08 of the Revised Code;1404

       (4) Permit any person whom the organization knows or should 1405
have known has been convicted of a felony or gambling offense in 1406
any jurisdiction to be a bingo game operator in the conduct of 1407
instant bingo;1408

       (5) Purchase or lease supplies used to conduct instant bingo 1409
or punch board games from any person except a distributor licensed 1410
under section 2915.081 of the Revised Code;1411

       (6) Sell or provide any instant bingo ticket or card for a 1412
price different from the price printed on it by the manufacturer 1413
on either the instant bingo ticket or card or on the game flare;1414

       (7) Sell an instant bingo ticket or card to a person under 1415
eighteen years of age;1416

       (8) Fail to keep unsold instant bingo tickets or cards for 1417
less than three years;1418

       (9) Pay any compensation to a bingo game operator for 1419
conducting instant bingo that is conducted by the organization or 1420
for preparing, selling, or serving food or beverages at the site 1421
of the instant bingo game, permit any auxiliary unit or society of 1422
the organization to pay compensation to any bingo game operator 1423
who prepares, sells, or serves food or beverages at an instant 1424
bingo game conducted by the organization, or permit any auxiliary 1425
unit or society of the organization to prepare, sell, or serve 1426
food or beverages at an instant bingo game conducted by the 1427
organization, if the auxiliary unit or society pays any 1428
compensation to the bingo game operators who prepare, sell, or 1429
serve the food or beverages;1430

       (10) Pay fees to any person for any services performed in 1431
relation to an instant bingo game, except as provided in division 1432
(D) of section 2915.093 of the Revised Code;1433

       (11) Pay fees to any person who provides refreshments to the 1434
participants in an instant bingo game;1435

        (12)(a) Allow instant bingo tickets or cards to be sold to 1436
bingo game operators at a premises at which the organization sells 1437
instant bingo tickets or cards or to be sold to employees of a D 1438
permit holder who are working at a premises at which instant bingo 1439
tickets or cards are sold;1440

       (b) Division (A)(12)(a) of this section does not prohibit a 1441
licensed charitable organization or a bingo game operator from 1442
giving any person an instant bingo ticket as a prize in place of a 1443
cash prize won by a participant in an instant bingo game. In no 1444
case shall an instant bingo ticket or card be sold or provided for 1445
a price different from the price printed on it by the manufacturer 1446
on either the instant bingo ticket or card or on the game flare.1447

       (13) Fail to display its bingo license, and the serial 1448
numbers of the deal of instant bingo tickets or cards to be sold, 1449
conspicuously at each premises at which it sells instant bingo 1450
tickets or cards;1451

        (14) Possess a deal of instant bingo tickets or cards that 1452
was not purchased from a distributor licensed under section 1453
2915.081 of the Revised Code as reflected on an invoice issued by 1454
the distributor that contains all of the information required by 1455
division (E) of section 2915.10 of the Revised Code;1456

        (15) Fail, once it opens a deal of instant bingo tickets or 1457
cards, to continue to sell the tickets or cards in that deal until 1458
the tickets or cards with the top two highest tiers of prizes in 1459
that deal are sold;1460

       (16) Possess bingo supplies that were not obtained in 1461
accordance with sections 2915.01 to 2915.13 of the Revised Code.1462

       (B)(1) A charitable organization may conduct instant bingo 1463
other than at a bingo session at not more than five separate 1464
locations. A charitable organization that is exempt from federal 1465
taxation under subsection 501(a) and described in subsection 1466
501(c)(3) of the Internal Revenue Code and that is created by a 1467
veteran's organization or a fraternal organization is not limited 1468
in the number of separate locations the charitable organization 1469
may conduct instant bingo other than at a bingo session.1470

       (2) A charitable organization may purchase, lease, or use 1471
instant bingo ticket dispensers to sell instant bingo tickets or 1472
cards.1473

        (C) The attorney general may adopt rules in accordance with 1474
Chapter 119. of the Revised Code that govern the conduct of 1475
instant bingo by charitable organizations. Before those rules are 1476
adopted, the attorney general shall reference the recommended 1477
standards for opacity, randomization, minimum information, winner 1478
protection, color, and cutting for instant bingo tickets or cards, 1479
seal cards, and punch boards established by the North American 1480
gaming regulators association.1481

       (D) Whoever violates division (A) of this section or a rule 1482
adopted under division (C) of this section is guilty of illegal 1483
instant bingo conduct. Except as otherwise provided in this 1484
division, illegal instant bingo conduct is a misdemeanor of the 1485
first degree. If the offender previously has been convicted of a 1486
violation of division (A) of this section or of such a rule, 1487
illegal instant bingo conduct is a felony of the fifth degree.1488

       Sec. 2915.092.  (A)(1) Subject to division (A)(2) of this 1489
section, a charitable organization, a public school, a chartered 1490
nonpublic school, a community school, or a veteran's organization, 1491
fraternal organization, or sporting organization that is exempt 1492
from federal income taxation under subsection 501(a) and is 1493
described in subsection 501(c)(3), 501(c)(4), 501(c)(7), 1494
501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue Code 1495
may conduct a raffle to raise money for the organization or school 1496
and does not need a license to conduct bingo in order to conduct a 1497
raffle drawing that is not for profit.1498

       (2) If a charitable organization that is described in 1499
division (A)(1) of this section, but that is not also described in 1500
subsection 501(c)(3) of the Internal Revenue Code, conducts a 1501
raffle, the charitable organization shall distribute at least 1502
fifty per cent of the net profit from the raffle to a charitable 1503
purpose described in division (Z)(V) of section 2915.01 of the 1504
Revised Code or to a department or agency of the federal 1505
government, the state, or any political subdivision.1506

       (B) Except as provided in division (A) or (B) of this 1507
section, no person shall conduct a raffle drawing that is for 1508
profit or a raffle drawing that is not for profit.1509

       (C) Whoever violates division (B) of this section is guilty 1510
of illegal conduct of a raffle. Except as otherwise provided in 1511
this division, illegal conduct of a raffle is a misdemeanor of the 1512
first degree. If the offender previously has been convicted of a 1513
violation of division (B) of this section, illegal conduct of a 1514
raffle is a felony of the fifth degree.1515

       Sec. 2915.093. (A) As used in this section, "retail income 1516
from all commercial activity" means the income that a person 1517
receives from the provision of goods, services, or activities that 1518
are provided at the location where instant bingo other than at a 1519
bingo session is conducted, including the sale of instant bingo 1520
tickets. A religious organization that is exempt from federal 1521
income taxation under subsection 501(a) and described in 1522
subsection 501(c)(3) of the Internal Revenue Code, at not more 1523
than one location at which it conducts its charitable programs, 1524
may include donations from its members and guests as retail 1525
income.1526

        (B) A charitable instant bingo organization may conduct 1527
instant bingo other than at a bingo session at not more than five 1528
separate locations.1529

       (C)(1) If a charitable instant bingo organization conducts 1530
instant bingo other than at a bingo session, the charitable 1531
instant bingo organization shall enter into a written contract 1532
with the owner or lessor of the location at which the instant 1533
bingo is conducted to allow the owner or lessor to assist in the 1534
conduct of instant bingo other than at a bingo session, identify 1535
each location where the instant bingo other than at a bingo 1536
session is being conducted, and identify the owner or lessor of 1537
each location.1538

       (2) A charitable instant bingo organization that conducts 1539
instant bingo other than at a bingo session is not required to 1540
enter into a written contract with the owner or lessor of the 1541
location at which the instant bingo is conducted, provided that 1542
the owner or lessor is not assisting in the conduct of the instant 1543
bingo other than at a bingo session and provided that the conduct 1544
of the instant bingo other than at a bingo session at that 1545
location is not more than five days per calendar year and not more 1546
than ten hours per day.1547

       (D)(C) Except as provided in division (G)(F) of this section, 1548
no charitable instant bingo organization shall conduct instant 1549
bingo other than at a bingo session at a location where the 1550
primary source of retail income from all commercial activity at 1551
that location is the sale of instant bingo tickets.1552

       (E)(D) The owner or lessor of a location that enters into a 1553
contract pursuant to division (C)(B) of this section shall pay the 1554
full gross profit, minus the expenses incurred by the owner or 1555
lessor of a location that can be attributed to conducting instant 1556
bingo at that location, to the charitable instant bingo 1557
organization, in return for the deal of instant bingo tickets. The 1558
owner or lessor may retain the money that the owner or lessor 1559
receives for selling the instant bingo tickets, provided, however, 1560
that after the deal has been sold, the owner or lessor shall pay 1561
to the charitable instant bingo organization the value of any 1562
unredeemed instant bingo prizes remaining in the deal of instant 1563
bingo tickets.1564

       As used in this division, "full gross profit" means the 1565
amount by which the total receipts of all instant bingo tickets, 1566
if the deal had been sold in full, exceeds the amount that would 1567
be paid out if all prizes were redeemed.1568

        As used in this division, "expenses" means reasonable amounts 1569
actually expended, and accounted for on a monthly basis, in total 1570
not to exceed twenty per cent of the full gross profit of the 1571
deal, for all of the following:1572

        (1) Audits and accounting services;1573

        (2) Safes;1574

        (3) Cash registers;1575

        (4) Advertising instant bingo;1576

        (5) Tables and chairs;1577

        (6) Wages for employees of the owner or lessor that are 1578
attributable to managing or assisting with the conduct of instant 1579
bingo;1580

        (7) Expenses that can be attributed to maintaining the owner 1581
or lessor's premises at which instant bingo is conducted, 1582
including rent or other costs of facility ownership, property or 1583
casualty insurance premiums, and utility costs.1584

       The deduction of expenses under this section shall not make 1585
any owner or lessor a professional solicitor as defined in 1586
division (J) of section 1716.01 of the Revised Code.1587

       (F)(E) A charitable instant bingo organization shall provide 1588
the attorney general with all of the following information:1589

        (1) That the charitable instant bingo organization has 1590
terminated a contract entered into pursuant to division (C)(B) of 1591
this section with an owner or lessor of a location;1592

        (2) That the charitable instant bingo organization has 1593
entered into a written contract pursuant to division (C)(B) of 1594
this section with a new owner or lessor of a location;1595

        (3) That the charitable instant bingo organization is aware 1596
of conduct by the owner or lessor of a location at which instant 1597
bingo is conducted that is in violation of this chapter.1598

       (G)(F) Division (D)(C) of this section does not apply to a 1599
volunteer firefighter's organization that is exempt from federal 1600
income taxation under subsection 501(a) and described in 1601
subsection 501(c)(3) of the Internal Revenue Code, that conducts 1602
instant bingo other than at a bingo session on the premises where 1603
the organization conducts firefighter training, that has conducted 1604
instant bingo continuously for at least five years prior to July 1605
1, 2003, and that, during each of those five years, had gross 1606
receipts of at least one million five hundred thousand dollars.1607

       Sec. 2915.094. (A) No owner or lessor of a location shall 1608
assist a charitable instant bingo organization in the conduct of 1609
instant bingo other than at a bingo session at that location 1610
unless the owner or lessor has entered into a written contract, as 1611
described in division (C) of section 2915.093 of the Revised Code, 1612
with the charitable instant bingo organization to assist in the 1613
conduct of instant bingo other than at a bingo session.1614

       (B) The location of the lessor or owner shall be designated 1615
as a location where the charitable instant bingo organization 1616
conducts instant bingo other than at a bingo session.1617

        (C) No owner or lessor of a location that enters into a 1618
written contract as prescribed in division (A) of this section 1619
shall violate any provision of Chapter 2915. of the Revised Code, 1620
or permit, aid, or abet any other person in violating any 1621
provision of Chapter 2915. of the Revised Code.1622

        (D) No owner or lessor of a location that enters into a 1623
written contract as prescribed in division (A) of this section 1624
shall violate the terms of the contract.1625

       (E)(1) Whoever violates division (C) or (D) of this section 1626
is guilty of illegal instant bingo conduct. Except as otherwise 1627
provided in this division, illegal instant bingo conduct is a 1628
misdemeanor of the first degree. If the offender previously has 1629
been convicted of a violation of division (C) or (D) of this 1630
section, illegal instant bingo conduct is a felony of the fifth 1631
degree.1632

        (2) If an owner or lessor of a location knowingly, 1633
intentionally, or recklessly violates division (C) or (D) of this 1634
section, any license that the owner or lessor holds for the retail 1635
sale of any goods on the owner's or lessor's premises that is 1636
issued by the state or a political subdivision is subject to 1637
suspension, revocation, or payment of a monetary penalty at the 1638
request of the attorney general.1639

       Sec. 2915.10.  (A) No charitable organization that conducts 1640
bingo or a game of chance pursuant to division (D) of section 1641
2915.02 of the Revised Code shall fail to maintain the following 1642
records for at least three years from the date on which the bingo 1643
or game of chance is conducted:1644

       (1) An itemized list of the gross receipts of each bingo 1645
session, each game of instant bingo by serial number, each raffle, 1646
each punch board game, and each game of chance, and an itemized 1647
list of the gross profits of each game of instant bingo by serial 1648
number;1649

       (2) An itemized list of all expenses, other than prizes, that 1650
are incurred in conducting bingo or instant bingo, the name of 1651
each person to whom the expenses are paid, and a receipt for all 1652
of the expenses;1653

       (3) A list of all prizes awarded during each bingo session, 1654
each raffle, each punch board game, and each game of chance 1655
conducted by the charitable organization, the total prizes awarded 1656
from each game of instant bingo by serial number, and the name, 1657
address, and social security number of all persons who are winners 1658
of prizes of six hundred dollars or more in value;1659

       (4) An itemized list of the recipients of the net profit of 1660
the bingo or game of chance, including the name and address of 1661
each recipient to whom the money is distributed, and if the 1662
organization uses the net profit of bingo, or the money or assets 1663
received from a game of chance, for any charitable or other 1664
purpose set forth in division (Z)(V) of section 2915.01, division 1665
(D) of section 2915.02, or section 2915.101 of the Revised Code, a 1666
list of each purpose and an itemized list of each expenditure for 1667
each purpose;1668

       (5) The number of persons who participate in any bingo 1669
session or game of chance that is conducted by the charitable 1670
organization;1671

       (6) A list of receipts from the sale of food and beverages by 1672
the charitable organization or one of its auxiliary units or 1673
societies, if the receipts were excluded from gross receipts under 1674
division (X)(T) of section 2915.01 of the Revised Code;1675

       (7) An itemized list of all expenses incurred at each bingo 1676
session, each raffle, each punch board game, or each game of 1677
instant bingo conducted by the charitable organization in the sale 1678
of food and beverages by the charitable organization or by an 1679
auxiliary unit or society of the charitable organization, the name 1680
of each person to whom the expenses are paid, and a receipt for 1681
all of the expenses.1682

       (B) A charitable organization shall keep the records that it 1683
is required to maintain pursuant to division (A) of this section 1684
at its principal place of business in this state or at its 1685
headquarters in this state and shall notify the attorney general 1686
of the location at which those records are kept.1687

       (C) The gross profit from each bingo session or game 1688
described in division (S)(O)(1) or (2) of section 2915.01 of the 1689
Revised Code shall be deposited into a checking account devoted 1690
exclusively to the bingo session or game. Payments for allowable 1691
expenses incurred in conducting the bingo session or game and 1692
payments to recipients of some or all of the net profit of the 1693
bingo session or game shall be made only by checks drawn on the 1694
bingo session or game account.1695

       (D) Each charitable organization shall conduct and record an 1696
inventory of all of its bingo supplies as of the first day of 1697
November of each year.1698

       (E) The attorney general may adopt rules in accordance with 1699
Chapter 119. of the Revised Code that establish standards of 1700
accounting, record keeping, and reporting to ensure that gross 1701
receipts from bingo or games of chance are properly accounted for.1702

       (F) A distributor shall maintain, for a period of three years 1703
after the date of its sale or other provision, a record of each 1704
instance of its selling or otherwise providing to another person 1705
bingo supplies for use in this state. The record shall include all 1706
of the following for each instance:1707

       (1) The name of the manufacturer from which the distributor 1708
purchased the bingo supplies and the date of the purchase;1709

       (2) The name and address of the charitable organization or 1710
other distributor to which the bingo supplies were sold or 1711
otherwise provided;1712

       (3) A description that clearly identifies the bingo supplies;1713

       (4) Invoices that include the nonrepeating serial numbers of 1714
all paper bingo cards and sheets and all instant bingo deals sold 1715
or otherwise provided to each charitable organization.1716

       (G) A manufacturer shall maintain, for a period of three 1717
years after the date of its sale or other provision, a record of 1718
each instance of its selling or otherwise providing bingo supplies 1719
for use in this state. The record shall include all of the 1720
following for each instance:1721

       (1) The name and address of the distributor to whom the bingo 1722
supplies were sold or otherwise provided;1723

       (2) A description that clearly identifies the bingo supplies, 1724
including serial numbers;1725

       (3) Invoices that include the nonrepeating serial numbers of 1726
all paper bingo cards and sheets and all instant bingo deals sold 1727
or otherwise provided to each distributor.1728

       (H) The attorney general or any law enforcement agency may do 1729
all of the following:1730

       (1) Investigate any charitable organization or any officer, 1731
agent, trustee, member, or employee of the organization;1732

       (2) Examine the accounts and records of the organization;1733

       (3) Conduct inspections, audits, and observations of bingo or 1734
games of chance;1735

       (4) Conduct inspections of the premises where bingo or games 1736
of chance are conducted;1737

       (5) Take any other necessary and reasonable action to 1738
determine if a violation of any provision of sections 2915.01 to 1739
2915.13 of the Revised Code has occurred and to determine whether 1740
section 2915.11 of the Revised Code has been complied with.1741

       If any law enforcement agency has reasonable grounds to 1742
believe that a charitable organization or an officer, agent, 1743
trustee, member, or employee of the organization has violated any 1744
provision of this chapter, the law enforcement agency may proceed 1745
by action in the proper court to enforce this chapter, provided 1746
that the law enforcement agency shall give written notice to the 1747
attorney general when commencing an action as described in this 1748
division.1749

       (I) No person shall destroy, alter, conceal, withhold, or 1750
deny access to any accounts or records of a charitable 1751
organization that have been requested for examination, or 1752
obstruct, impede, or interfere with any inspection, audit, or 1753
observation of bingo or a game of chance or premises where bingo 1754
or a game of chance is conducted, or refuse to comply with any 1755
reasonable request of, or obstruct, impede, or interfere with any 1756
other reasonable action undertaken by, the attorney general or a 1757
law enforcement agency pursuant to division (H) of this section.1758

       (J) Whoever violates division (A) or (I) of this section is 1759
guilty of a misdemeanor of the first degree.1760

       Sec. 2915.101. Except as otherwise provided by law, a 1761
charitable organization that conducts instant bingo shall 1762
distribute the net profit from the proceeds of the sale of instant 1763
bingo as follows:1764

        (A)(1) If a veteran's organization, a fraternal organization, 1765
or a sporting organization conducted the instant bingo, the 1766
organization shall distribute the net profit from the proceeds of 1767
the sale of instant bingo, as follows:1768

       (a) For the first two hundred fifty thousand dollars, or a 1769
greater amount prescribed by the attorney general to adjust for 1770
changes in prices as measured by the consumer price index as 1771
defined in section 325.18 of the Revised Code and other factors 1772
affecting the organization's expenses, as defined in division 1773
(LL)(GG) of section 2915.01 of the Revised Code, or less of net 1774
profit from the proceeds of the sale of instant bingo generated in 1775
a calendar year:1776

       (i) At least twenty-five per cent shall be distributed to an 1777
organization described in division (Z)(V)(1) of section 2915.01 of 1778
the Revised Code or to a department or agency of the federal 1779
government, the state, or any political subdivision.1780

       (ii) Not more than seventy-five per cent may be deducted and 1781
retained by the organization for reimbursement of or for the 1782
organization's expenses, as defined in division (LL)(GG) of 1783
section 2915.01 of the Revised Code, in conducting the instant 1784
bingo game.1785

       (b) For any net profit from the proceeds of the sale of 1786
instant bingo of more than two hundred fifty thousand dollars or 1787
an adjusted amount generated in a calendar year:1788

       (i) A minimum of fifty per cent shall be distributed to an 1789
organization described in division (Z)(V)(1) of section 2915.01 of 1790
the Revised Code or to a department or agency of the federal 1791
government, the state, or any political subdivision.1792

       (ii) Five per cent may be distributed for the organization's 1793
own charitable purposes or to a community action agency.1794

       (iii) Forty-five per cent may be deducted and retained by the 1795
organization for reimbursement of or for the organization's 1796
expenses, as defined in division (LL)(GG) of section 2915.01 of 1797
the Revised Code, in conducting the instant bingo game.1798

       (2) If a veteran's organization, a fraternal organization, or 1799
a sporting organization does not distribute the full percentages 1800
specified in divisions (A)(1)(a) and (b) of this section for the 1801
purposes specified in those divisions, the organization shall 1802
distribute the balance of the net profit from the proceeds of the 1803
sale of instant bingo not distributed or retained for those 1804
purposes to an organization described in division (Z)(V)(1) of 1805
section 2915.01 of the Revised Code.1806

        (B) If a charitable organization other than a veteran's 1807
organization, a fraternal organization, or a sporting organization 1808
conducted the instant bingo, the organization shall distribute one 1809
hundred per cent of the net profit from the proceeds of the sale 1810
of instant bingo to an organization described in division 1811
(Z)(V)(1) of section 2915.01 of the Revised Code or to a 1812
department or agency of the federal government, the state, or any 1813
political subdivision.1814

       (C) Nothing in this section prohibits a veteran's 1815
organization, a fraternal organization, or a sporting organization 1816
from distributing any net profit from the proceeds of the sale of 1817
instant bingo to an organization that is described in subsection 1818
501(c)(3) of the Internal Revenue Code when the organization that 1819
is described in subsection 501(c)(3) of the Internal Revenue Code 1820
is one that makes donations to other organizations and permits 1821
donors to advise or direct such donations so long as the donations 1822
comply with requirements established in or pursuant to subsection 1823
501(c)(3) of the Internal Revenue Code.1824

       Sec. 2915.12. (A) Sections 2915.07 to 2915.11 of the Revised 1825
Code do not apply to bingo games that are conducted for the 1826
purpose of amusement only. A bingo game is conducted for the 1827
purpose of amusement only if it complies with all of the 1828
requirements specified in either division (A)(1) or (2) of this 1829
section:1830

       (1)(a) The participants do not pay any money or any other 1831
thing of value including an admission fee, or any fee for bingo 1832
cards or sheets, objects to cover the spaces, or other devices 1833
used in playing bingo, for the privilege of participating in the 1834
bingo game, or to defray any costs of the game, or pay tips or 1835
make donations during or immediately before or after the bingo 1836
game.1837

       (b) All prizes awarded during the course of the game are 1838
nonmonetary, and in the form of merchandise, goods, or 1839
entitlements to goods or services only, and the total value of all 1840
prizes awarded during the game is less than one hundred dollars.1841

       (c) No commission, wages, salary, reward, tip, donation, 1842
gratuity, or other form of compensation, either directly or 1843
indirectly, and regardless of the source, is paid to any bingo 1844
game operator for work or labor performed at the site of the bingo 1845
game.1846

       (d) The bingo game is not conducted either during or within 1847
ten hours of any of the following:1848

       (i) A bingo session during which a charitable bingo game is 1849
conducted pursuant to sections 2915.07 to 2915.11 of the Revised 1850
Code;1851

       (ii) A scheme or game of chance, or bingo described in 1852
division (S)(O)(2) of section 2915.01 of the Revised Code.1853

       (e) The number of players participating in the bingo game 1854
does not exceed fifty.1855

       (2)(a) The participants do not pay money or any other thing 1856
of value as an admission fee, and no participant is charged more 1857
than twenty-five cents to purchase a bingo card or sheet, objects 1858
to cover the spaces, or other devices used in playing bingo.1859

       (b) The total amount of money paid by all of the participants 1860
for bingo cards or sheets, objects to cover the spaces, or other 1861
devices used in playing bingo does not exceed one hundred dollars.1862

       (c) All of the money paid for bingo cards or sheets, objects 1863
to cover spaces, or other devices used in playing bingo is used 1864
only to pay winners monetary and nonmonetary prizes and to provide 1865
refreshments.1866

       (d) The total value of all prizes awarded during the game 1867
does not exceed one hundred dollars.1868

       (e) No commission, wages, salary, reward, tip, donation, 1869
gratuity, or other form of compensation, either directly or 1870
indirectly, and regardless of the source, is paid to any bingo 1871
game operator for work or labor performed at the site of the bingo 1872
game.1873

       (f) The bingo game is not conducted during or within ten 1874
hours of either of the following:1875

       (i) A bingo session during which a charitable bingo game is 1876
conducted pursuant to sections 2915.07 to 2915.11 of the Revised 1877
Code;1878

       (ii) A scheme of chance or game of chance, or bingo described 1879
in division (S)(O)(2) of section 2915.01 of the Revised Code.1880

       (g) All of the participants reside at the premises where the 1881
bingo game is conducted.1882

       (h) The bingo games are conducted on different days of the 1883
week and not more than twice in a calendar week.1884

       (B) The attorney general or any local law enforcement agency 1885
may investigate the conduct of a bingo game that purportedly is 1886
conducted for purposes of amusement only if there is reason to 1887
believe that the purported amusement bingo game does not comply 1888
with the requirements of either division (A)(1) or (2) of this 1889
section. A local law enforcement agency may proceed by action in 1890
the proper court to enforce this section if the local law 1891
enforcement agency gives written notice to the attorney general 1892
when commencing the action.1893

       Sec. 2915.18.  (A) The owner of a permitted location may 1894
establish a charity card room on the premises of the permitted 1895
location. The owner shall provide necessary game tables, chairs, 1896
surveillance, and other equipment in the charity card room.1897

       (B) A charitable organization may conduct games of chance in 1898
a charity card room for up to one hundred twenty-eight hours 1899
annually. Such hours need not be on consecutive days. More than 1900
one charitable organization may conduct games of chance in a 1901
charity card room simultaneously.1902

       (C)(1) The charitable organization shall pay rent to the 1903
owner of a permitted location in the amount of fifteen per cent of 1904
the revenue made from conducting the games of chance in the 1905
charity card room.1906

       (2) A charitable organization shall pay expenses for 1907
conducting games of chance in a charity card room, including 1908
expenses for the following: dealers, payroll administration, 1909
security, accounting, auditing, shuffle machine rental, insurance, 1910
marketing, advertising, utilities, cleanup, maintenance, and 1911
repair. A charitable organization may pay these expenses from its 1912
share of the revenue made from conducting games of chance in the 1913
charity card room.1914

       (3) Charitable organizations may pool revenue and expenses 1915
when applicable in a charity card room.1916

       (4) One hundred per cent of the net revenue in a charity card 1917
room remaining after payment of expenses and rent shall be paid to 1918
each charitable organization on a pro rata basis, based on 1919
volunteer hours of each charitable organization.1920

       (D) Notwithstanding division (D) of section 2915.02 of the 1921
Revised Code, a charitable organization may compensate dealers, 1922
dealer supervisors, human resource personnel, and other related 1923
personnel for operating games of chance in a charity card room. 1924
Dealers also may accept tips from games of chance players.1925

       (E) For the purposes of division (D)(1)(c) of section 2915.02 1926
of the Revised Code, a charitable organization may conduct games 1927
of chance at a permitted location and conducting those games of 1928
chance in a charity card room is considered a festival if the 1929
charitable organization provides a display booth about the 1930
charitable organization in the charity card room at all times when 1931
it is conducting games of chance.1932

       Sec. 2923.31.  As used in sections 2923.31 to 2923.36 of the 1933
Revised Code:1934

       (A) "Beneficial interest" means any of the following:1935

       (1) The interest of a person as a beneficiary under a trust 1936
in which the trustee holds title to personal or real property;1937

       (2) The interest of a person as a beneficiary under any other 1938
trust arrangement under which any other person holds title to 1939
personal or real property for the benefit of such person;1940

       (3) The interest of a person under any other form of express 1941
fiduciary arrangement under which any other person holds title to 1942
personal or real property for the benefit of such person.1943

       "Beneficial interest" does not include the interest of a 1944
stockholder in a corporation or the interest of a partner in 1945
either a general or limited partnership.1946

       (B) "Costs of investigation and prosecution" and "costs of 1947
investigation and litigation" mean all of the costs incurred by 1948
the state or a county or municipal corporation under sections 1949
2923.31 to 2923.36 of the Revised Code in the prosecution and 1950
investigation of any criminal action or in the litigation and 1951
investigation of any civil action, and includes, but is not 1952
limited to, the costs of resources and personnel.1953

       (C) "Enterprise" includes any individual, sole 1954
proprietorship, partnership, limited partnership, corporation, 1955
trust, union, government agency, or other legal entity, or any 1956
organization, association, or group of persons associated in fact 1957
although not a legal entity. "Enterprise" includes illicit as well 1958
as licit enterprises.1959

       (D) "Innocent person" includes any bona fide purchaser of 1960
property that is allegedly involved in a violation of section 1961
2923.32 of the Revised Code, including any person who establishes 1962
a valid claim to or interest in the property in accordance with 1963
division (E) of section 2981.04 of the Revised Code, and any 1964
victim of an alleged violation of that section or of any 1965
underlying offense involved in an alleged violation of that 1966
section.1967

       (E) "Pattern of corrupt activity" means two or more incidents 1968
of corrupt activity, whether or not there has been a prior 1969
conviction, that are related to the affairs of the same 1970
enterprise, are not isolated, and are not so closely related to 1971
each other and connected in time and place that they constitute a 1972
single event.1973

       At least one of the incidents forming the pattern shall occur 1974
on or after January 1, 1986. Unless any incident was an aggravated 1975
murder or murder, the last of the incidents forming the pattern 1976
shall occur within six years after the commission of any prior 1977
incident forming the pattern, excluding any period of imprisonment 1978
served by any person engaging in the corrupt activity.1979

       For the purposes of the criminal penalties that may be 1980
imposed pursuant to section 2923.32 of the Revised Code, at least 1981
one of the incidents forming the pattern shall constitute a felony 1982
under the laws of this state in existence at the time it was 1983
committed or, if committed in violation of the laws of the United 1984
States or of any other state, shall constitute a felony under the 1985
law of the United States or the other state and would be a 1986
criminal offense under the law of this state if committed in this 1987
state.1988

       (F) "Pecuniary value" means money, a negotiable instrument, a 1989
commercial interest, or anything of value, as defined in section 1990
1.03 of the Revised Code, or any other property or service that 1991
has a value in excess of one hundred dollars.1992

       (G) "Person" means any person, as defined in section 1.59 of 1993
the Revised Code, and any governmental officer, employee, or 1994
entity.1995

       (H) "Personal property" means any personal property, any 1996
interest in personal property, or any right, including, but not 1997
limited to, bank accounts, debts, corporate stocks, patents, or 1998
copyrights. Personal property and any beneficial interest in 1999
personal property are deemed to be located where the trustee of 2000
the property, the personal property, or the instrument evidencing 2001
the right is located.2002

       (I) "Corrupt activity" means engaging in, attempting to 2003
engage in, conspiring to engage in, or soliciting, coercing, or 2004
intimidating another person to engage in any of the following:2005

       (1) Conduct defined as "racketeering activity" under the 2006
"Organized Crime Control Act of 1970," 84 Stat. 941, 18 U.S.C. 2007
1961(1)(B), (1)(C), (1)(D), and (1)(E), as amended;2008

       (2) Conduct constituting any of the following:2009

       (a) A violation of section 1315.55, 1322.02, 2903.01, 2010
2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2905.01, 2905.02, 2011
2905.11, 2905.22, 2907.321, 2907.322, 2907.323, 2909.02, 2909.03, 2012
2909.22, 2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29, 2013
2911.01, 2911.02, 2911.11, 2911.12, 2911.13, 2911.31, 2913.05, 2014
2913.06, 2921.02, 2921.03, 2921.04, 2921.11, 2921.12, 2921.32, 2015
2921.41, 2921.42, 2921.43, 2923.12, or 2923.17; division 2016
(F)(1)(a), (b), or (c) of section 1315.53; division (A)(1) or (2) 2017
of section 1707.042; division (B), (C)(4), (D), (E), or (F) of 2018
section 1707.44; division (A)(1) or (2) of section 2923.20; 2019
division (E) or (G) of section 3772.99; division (J)(1) of section 2020
4712.02; section 4719.02, 4719.05, or 4719.06; division (C), (D), 2021
or (E) of section 4719.07; section 4719.08; or division (A) of 2022
section 4719.09 of the Revised Code.2023

       (b) Any violation of section 3769.11, 3769.15, 3769.16, or 2024
3769.19 of the Revised Code as it existed prior to July 1, 1996, 2025
any violation of section 2915.02 of the Revised Code that occurs 2026
on or after July 1, 1996, and that, had it occurred prior to that 2027
date, would have been a violation of section 3769.11 of the 2028
Revised Code as it existed prior to that date, or any violation of 2029
section 2915.05 of the Revised Code that occurs on or after July 2030
1, 1996, and that, had it occurred prior to that date, would have 2031
been a violation of section 3769.15, 3769.16, or 3769.19 of the 2032
Revised Code as it existed prior to that date.2033

       (c) Any violation of section 2907.21, 2907.22, 2907.31, 2034
2913.02, 2913.11, 2913.21, 2913.31, 2913.32, 2913.34, 2913.42, 2035
2913.47, 2913.51, 2915.03, 2925.03, 2925.04, 2925.05, or 2925.37 2036
of the Revised Code, any violation of section 2925.11 of the 2037
Revised Code that is a felony of the first, second, third, or 2038
fourth degree and that occurs on or after July 1, 1996, any 2039
violation of section 2915.02 of the Revised Code that occurred 2040
prior to July 1, 1996, any violation of section 2915.02 of the 2041
Revised Code that occurs on or after July 1, 1996, and that, had 2042
it occurred prior to that date, would not have been a violation of 2043
section 3769.11 of the Revised Code as it existed prior to that 2044
date, any violation of section 2915.06 of the Revised Code as it 2045
existed prior to July 1, 1996, or any violation of division (B) of 2046
section 2915.05 of the Revised Code as it exists on and after July 2047
1, 1996, when the proceeds of the violation, the payments made in 2048
the violation, the amount of a claim for payment or for any other 2049
benefit that is false or deceptive and that is involved in the 2050
violation, or the value of the contraband or other property 2051
illegally possessed, sold, or purchased in the violation exceeds 2052
one thousand dollars, or any combination of violations described 2053
in division (I)(2)(c) of this section when the total proceeds of 2054
the combination of violations, payments made in the combination of 2055
violations, amount of the claims for payment or for other benefits 2056
that is false or deceptive and that is involved in the combination 2057
of violations, or value of the contraband or other property 2058
illegally possessed, sold, or purchased in the combination of 2059
violations exceeds one thousand dollars;2060

       (d) Any violation of section 5743.112 of the Revised Code 2061
when the amount of unpaid tax exceeds one hundred dollars;2062

       (e) Any violation or combination of violations of section 2063
2907.32 of the Revised Code involving any material or performance 2064
containing a display of bestiality or of sexual conduct, as 2065
defined in section 2907.01 of the Revised Code, that is explicit 2066
and depicted with clearly visible penetration of the genitals or 2067
clearly visible penetration by the penis of any orifice when the 2068
total proceeds of the violation or combination of violations, the 2069
payments made in the violation or combination of violations, or 2070
the value of the contraband or other property illegally possessed, 2071
sold, or purchased in the violation or combination of violations 2072
exceeds one thousand dollars;2073

       (f) Any combination of violations described in division 2074
(I)(2)(c) of this section and violations of section 2907.32 of the 2075
Revised Code involving any material or performance containing a 2076
display of bestiality or of sexual conduct, as defined in section 2077
2907.01 of the Revised Code, that is explicit and depicted with 2078
clearly visible penetration of the genitals or clearly visible 2079
penetration by the penis of any orifice when the total proceeds of 2080
the combination of violations, payments made in the combination of 2081
violations, amount of the claims for payment or for other benefits 2082
that is false or deceptive and that is involved in the combination 2083
of violations, or value of the contraband or other property 2084
illegally possessed, sold, or purchased in the combination of 2085
violations exceeds one thousand dollars;2086

       (g) Any violation of section 2905.32 of the Revised Code to 2087
the extent the violation is not based solely on the same conduct 2088
that constitutes corrupt activity pursuant to division (I)(2)(c) 2089
of this section due to the conduct being in violation of section 2090
2907.21 of the Revised Code.2091

       (3) Conduct constituting a violation of any law of any state 2092
other than this state that is substantially similar to the conduct 2093
described in division (I)(2) of this section, provided the 2094
defendant was convicted of the conduct in a criminal proceeding in 2095
the other state;2096

       (4) Animal or ecological terrorism;2097

       (5)(a) Conduct constituting any of the following:2098

       (i) Organized retail theft;2099

       (ii) Conduct that constitutes one or more violations of any 2100
law of any state other than this state, that is substantially 2101
similar to organized retail theft, and that if committed in this 2102
state would be organized retail theft, if the defendant was 2103
convicted of or pleaded guilty to the conduct in a criminal 2104
proceeding in the other state.2105

       (b) By enacting division (I)(5)(a) of this section, it is the 2106
intent of the general assembly to add organized retail theft and 2107
the conduct described in division (I)(5)(a)(ii) of this section as 2108
conduct constituting corrupt activity. The enactment of division 2109
(I)(5)(a) of this section and the addition by division (I)(5)(a) 2110
of this section of organized retail theft and the conduct 2111
described in division (I)(5)(a)(ii) of this section as conduct 2112
constituting corrupt activity does not limit or preclude, and 2113
shall not be construed as limiting or precluding, any prosecution 2114
for a violation of section 2923.32 of the Revised Code that is 2115
based on one or more violations of section 2913.02 or 2913.51 of 2116
the Revised Code, one or more similar offenses under the laws of 2117
this state or any other state, or any combination of any of those 2118
violations or similar offenses, even though the conduct 2119
constituting the basis for those violations or offenses could be 2120
construed as also constituting organized retail theft or conduct 2121
of the type described in division (I)(5)(a)(ii) of this section.2122

       (J) "Real property" means any real property or any interest 2123
in real property, including, but not limited to, any lease of, or 2124
mortgage upon, real property. Real property and any beneficial 2125
interest in it is deemed to be located where the real property is 2126
located.2127

       (K) "Trustee" means any of the following:2128

       (1) Any person acting as trustee under a trust in which the 2129
trustee holds title to personal or real property;2130

       (2) Any person who holds title to personal or real property 2131
for which any other person has a beneficial interest;2132

       (3) Any successor trustee.2133

       "Trustee" does not include an assignee or trustee for an 2134
insolvent debtor or an executor, administrator, administrator with 2135
the will annexed, testamentary trustee, guardian, or committee, 2136
appointed by, under the control of, or accountable to a court.2137

       (L) "Unlawful debt" means any money or other thing of value 2138
constituting principal or interest of a debt that is legally 2139
unenforceable in this state in whole or in part because the debt 2140
was incurred or contracted in violation of any federal or state 2141
law relating to the business of gambling activity or relating to 2142
the business of lending money at an usurious rate unless the 2143
creditor proves, by a preponderance of the evidence, that the 2144
usurious rate was not intentionally set and that it resulted from 2145
a good faith error by the creditor, notwithstanding the 2146
maintenance of procedures that were adopted by the creditor to 2147
avoid an error of that nature.2148

       (M) "Animal activity" means any activity that involves the 2149
use of animals or animal parts, including, but not limited to, 2150
hunting, fishing, trapping, traveling, camping, the production, 2151
preparation, or processing of food or food products, clothing or 2152
garment manufacturing, medical research, other research, 2153
entertainment, recreation, agriculture, biotechnology, or service 2154
activity that involves the use of animals or animal parts.2155

        (N) "Animal facility" means a vehicle, building, structure, 2156
nature preserve, or other premises in which an animal is lawfully 2157
kept, handled, housed, exhibited, bred, or offered for sale, 2158
including, but not limited to, a zoo, rodeo, circus, amusement 2159
park, hunting preserve, or premises in which a horse or dog event 2160
is held.2161

        (O) "Animal or ecological terrorism" means the commission of 2162
any felony that involves causing or creating a substantial risk of 2163
physical harm to any property of another, the use of a deadly 2164
weapon or dangerous ordnance, or purposely, knowingly, or 2165
recklessly causing serious physical harm to property and that 2166
involves an intent to obstruct, impede, or deter any person from 2167
participating in a lawful animal activity, from mining, foresting, 2168
harvesting, gathering, or processing natural resources, or from 2169
being lawfully present in or on an animal facility or research 2170
facility.2171

       (P) "Research facility" means a place, laboratory, 2172
institution, medical care facility, government facility, or public 2173
or private educational institution in which a scientific test, 2174
experiment, or investigation involving the use of animals or other 2175
living organisms is lawfully carried out, conducted, or attempted.2176

       (Q) "Organized retail theft" means the theft of retail 2177
property with a retail value of one thousand dollars or more from 2178
one or more retail establishments with the intent to sell, 2179
deliver, or transfer that property to a retail property fence.2180

       (R) "Retail property" means any tangible personal property 2181
displayed, held, stored, or offered for sale in or by a retail 2182
establishment.2183

       (S) "Retail property fence" means a person who possesses, 2184
procures, receives, or conceals retail property that was 2185
represented to the person as being stolen or that the person knows 2186
or believes to be stolen.2187

       (T) "Retail value" means the full retail value of the retail 2188
property. In determining whether the retail value of retail 2189
property equals or exceeds one thousand dollars, the value of all 2190
retail property stolen from the retail establishment or retail 2191
establishments by the same person or persons within any 2192
one-hundred-eighty-day period shall be aggregated.2193

       Sec. 2933.51.  As used in sections 2933.51 to 2933.66 of the 2194
Revised Code:2195

       (A) "Wire communication" means an aural transfer that is made 2196
in whole or in part through the use of facilities for the 2197
transmission of communications by the aid of wires or similar 2198
methods of connecting the point of origin of the communication and 2199
the point of reception of the communication, including the use of 2200
a method of connecting the point of origin and the point of 2201
reception of the communication in a switching station, if the 2202
facilities are furnished or operated by a person engaged in 2203
providing or operating the facilities for the transmission of 2204
communications. "Wire communication" includes an electronic 2205
storage of a wire communication.2206

       (B) "Oral communication" means an oral communication uttered 2207
by a person exhibiting an expectation that the communication is 2208
not subject to interception under circumstances justifying that 2209
expectation. "Oral communication" does not include an electronic 2210
communication.2211

       (C) "Intercept" means the aural or other acquisition of the 2212
contents of any wire, oral, or electronic communication through 2213
the use of an interception device.2214

       (D) "Interception device" means an electronic, mechanical, or 2215
other device or apparatus that can be used to intercept a wire, 2216
oral, or electronic communication. "Interception device" does not 2217
mean any of the following:2218

       (1) A telephone or telegraph instrument, equipment, or 2219
facility, or any of its components, if the instrument, equipment, 2220
facility, or component is any of the following:2221

       (a) Furnished to the subscriber or user by a provider of wire 2222
or electronic communication service in the ordinary course of its 2223
business and being used by the subscriber or user in the ordinary 2224
course of its business;2225

       (b) Furnished by a subscriber or user for connection to the 2226
facilities of a provider of wire or electronic communication 2227
service and used in the ordinary course of that subscriber's or 2228
user's business;2229

       (c) Being used by a provider of wire or electronic 2230
communication service in the ordinary course of its business or by 2231
an investigative or law enforcement officer in the ordinary course 2232
of the officer's duties that do not involve the interception of 2233
wire, oral, or electronic communications.2234

       (2) A hearing aid or similar device being used to correct 2235
subnormal hearing to not better than normal.2236

       (E) "Investigative officer" means any of the following:2237

       (1) An officer of this state or a political subdivision of 2238
this state, who is empowered by law to conduct investigations or 2239
to make arrests for a designated offense;2240

       (2) A person described in divisions (A)(11)(a) and (b) of 2241
section 2901.01 of the Revised Code;2242

       (3) An attorney authorized by law to prosecute or participate 2243
in the prosecution of a designated offense;2244

       (4) A secret service officer appointed pursuant to section 2245
309.07 of the Revised Code;2246

       (5) An officer of the United States, a state, or a political 2247
subdivision of a state who is authorized to conduct investigations 2248
pursuant to the "Electronic Communications Privacy Act of 1986," 2249
100 Stat. 1848-1857, 18 U.S.C. 2510-2521 (1986), as amended.2250

       (F) "Interception warrant" means a court order that 2251
authorizes the interception of wire, oral, or electronic 2252
communications and that is issued pursuant to sections 2933.53 to 2253
2933.56 of the Revised Code.2254

       (G) "Contents," when used with respect to a wire, oral, or 2255
electronic communication, includes any information concerning the 2256
substance, purport, or meaning of the communication.2257

       (H) "Communications common carrier" means a person who is 2258
engaged as a common carrier for hire in intrastate, interstate, or 2259
foreign communications by wire, radio, or radio transmission of 2260
energy. "Communications common carrier" does not include, to the 2261
extent that the person is engaged in radio broadcasting, a person 2262
engaged in radio broadcasting.2263

       (I) "Designated offense" means any of the following:2264

       (1) A felony violation of section 1315.53, 1315.55, 2903.01, 2265
2903.02, 2903.11, 2905.01, 2905.02, 2905.11, 2905.22, 2905.32, 2266
2907.02, 2907.21, 2907.22, 2909.02, 2909.03, 2909.04, 2909.22, 2267
2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29, 2911.01, 2268
2911.02, 2911.11, 2911.12, 2913.02, 2913.04, 2913.42, 2913.51, 2269
2915.02, 2915.03, 2917.01, 2917.02, 2921.02, 2921.03, 2921.04, 2270
2921.32, 2921.34, 2923.20, 2923.32, 2925.03, 2925.04, 2925.05, or 2271
2925.06 or of division (B) of section 2915.05 or of division (E) 2272
or (G) of section 3772.99 of the Revised Code;2273

       (2) A violation of section 2919.23 of the Revised Code that, 2274
had it occurred prior to July 1, 1996, would have been a violation 2275
of section 2905.04 of the Revised Code as it existed prior to that 2276
date;2277

       (3) A felony violation of section 2925.11 of the Revised Code 2278
that is not a minor drug possession offense, as defined in section 2279
2925.01 of the Revised Code;2280

       (4) Complicity in the commission of a felony violation of a 2281
section listed in division (I)(1), (2), or (3) of this section;2282

       (5) An attempt to commit, or conspiracy in the commission of, 2283
a felony violation of a section listed in division (I)(1), (2), or 2284
(3) of this section, if the attempt or conspiracy is punishable by 2285
a term of imprisonment of more than one year.2286

       (J) "Aggrieved person" means a person who was a party to an 2287
intercepted wire, oral, or electronic communication or a person 2288
against whom the interception of the communication was directed.2289

       (K) "Person" means a person, as defined in section 1.59 of 2290
the Revised Code, or a governmental officer, employee, or entity.2291

       (L) "Special need" means a showing that a licensed physician, 2292
licensed practicing psychologist, attorney, practicing cleric, 2293
journalist, or either spouse is personally engaging in continuing 2294
criminal activity, was engaged in continuing criminal activity 2295
over a period of time, or is committing, has committed, or is 2296
about to commit, a designated offense, or a showing that specified 2297
public facilities are being regularly used by someone who is 2298
personally engaging in continuing criminal activity, was engaged 2299
in continuing criminal activity over a period of time, or is 2300
committing, has committed, or is about to commit, a designated 2301
offense.2302

       (M) "Journalist" means a person engaged in, connected with, 2303
or employed by, any news media, including a newspaper, magazine, 2304
press association, news agency, or wire service, a radio or 2305
television station, or a similar media, for the purpose of 2306
gathering, processing, transmitting, compiling, editing, or 2307
disseminating news for the general public.2308

       (N) "Electronic communication" means a transfer of a sign, 2309
signal, writing, image, sound, datum, or intelligence of any 2310
nature that is transmitted in whole or in part by a wire, radio, 2311
electromagnetic, photoelectronic, or photo-optical system. 2312
"Electronic communication" does not mean any of the following:2313

       (1) A wire or oral communication;2314

       (2) A communication made through a tone-only paging device;2315

       (3) A communication from an electronic or mechanical tracking 2316
device that permits the tracking of the movement of a person or 2317
object.2318

       (O) "User" means a person or entity that uses an electronic 2319
communication service and is duly authorized by the provider of 2320
the service to engage in the use of the electronic communication 2321
service.2322

       (P) "Electronic communications system" means a wire, radio, 2323
electromagnetic, photoelectronic, or photo-optical facility for 2324
the transmission of electronic communications, and a computer 2325
facility or related electronic equipment for the electronic 2326
storage of electronic communications.2327

       (Q) "Electronic communication service" means a service that 2328
provides to users of the service the ability to send or receive 2329
wire or electronic communications.2330

       (R) "Readily accessible to the general public" means, with 2331
respect to a radio communication, that the communication is none 2332
of the following:2333

       (1) Scrambled or encrypted;2334

       (2) Transmitted using a modulation technique, the essential 2335
parameters of which have been withheld from the public with the 2336
intention of preserving the privacy of the communication;2337

       (3) Carried on a subcarrier or other signal subsidiary to a 2338
radio transmission;2339

       (4) Transmitted over a communications system provided by a 2340
communications common carrier, unless the communication is a 2341
tone-only paging system communication;2342

       (5) Transmitted on a frequency allocated under part 25, 2343
subpart D, E, or F of part 74, or part 94 of the Rules of the 2344
Federal Communications Commission, as those provisions existed on 2345
July 1, 1996, unless, in the case of a communication transmitted 2346
on a frequency allocated under part 74 that is not exclusively 2347
allocated to broadcast auxiliary services, the communication is a 2348
two-way voice communication by radio.2349

       (S) "Electronic storage" means a temporary, intermediate 2350
storage of a wire or electronic communication that is incidental 2351
to the electronic transmission of the communication, and a storage 2352
of a wire or electronic communication by an electronic 2353
communication service for the purpose of backup protection of the 2354
communication.2355

       (T) "Aural transfer" means a transfer containing the human 2356
voice at a point between and including the point of origin and the 2357
point of reception.2358

       (U) "Pen register" means a device that records or decodes 2359
electronic impulses that identify the numbers dialed, pulsed, or 2360
otherwise transmitted on telephone lines to which the device is 2361
attached.2362

       (V) "Trap and trace device" means a device that captures the 2363
incoming electronic or other impulses that identify the 2364
originating number of an instrument or device from which a wire 2365
communication or electronic communication was transmitted but that 2366
does not intercept the contents of the wire communication or 2367
electronic communication.2368

       (W) "Judge of a court of common pleas" means a judge of that 2369
court who is elected or appointed as a judge of general 2370
jurisdiction or as a judge who exercises both general jurisdiction 2371
and probate, domestic relations, or juvenile jurisdiction. "Judge 2372
of a court of common pleas" does not mean a judge of that court 2373
who is elected or appointed specifically as a probate, domestic 2374
relations, or juvenile judge.2375

       Sec. 3301.0714.  (A) The state board of education shall adopt 2376
rules for a statewide education management information system. The 2377
rules shall require the state board to establish guidelines for 2378
the establishment and maintenance of the system in accordance with 2379
this section and the rules adopted under this section. The 2380
guidelines shall include:2381

       (1) Standards identifying and defining the types of data in 2382
the system in accordance with divisions (B) and (C) of this 2383
section;2384

       (2) Procedures for annually collecting and reporting the data 2385
to the state board in accordance with division (D) of this 2386
section;2387

       (3) Procedures for annually compiling the data in accordance 2388
with division (G) of this section;2389

       (4) Procedures for annually reporting the data to the public 2390
in accordance with division (H) of this section.2391

       (B) The guidelines adopted under this section shall require 2392
the data maintained in the education management information system 2393
to include at least the following:2394

       (1) Student participation and performance data, for each 2395
grade in each school district as a whole and for each grade in 2396
each school building in each school district, that includes:2397

       (a) The numbers of students receiving each category of 2398
instructional service offered by the school district, such as 2399
regular education instruction, vocational education instruction, 2400
specialized instruction programs or enrichment instruction that is 2401
part of the educational curriculum, instruction for gifted 2402
students, instruction for students with disabilities, and remedial 2403
instruction. The guidelines shall require instructional services 2404
under this division to be divided into discrete categories if an 2405
instructional service is limited to a specific subject, a specific 2406
type of student, or both, such as regular instructional services 2407
in mathematics, remedial reading instructional services, 2408
instructional services specifically for students gifted in 2409
mathematics or some other subject area, or instructional services 2410
for students with a specific type of disability. The categories of 2411
instructional services required by the guidelines under this 2412
division shall be the same as the categories of instructional 2413
services used in determining cost units pursuant to division 2414
(C)(3) of this section.2415

       (b) The numbers of students receiving support or 2416
extracurricular services for each of the support services or 2417
extracurricular programs offered by the school district, such as 2418
counseling services, health services, and extracurricular sports 2419
and fine arts programs. The categories of services required by the 2420
guidelines under this division shall be the same as the categories 2421
of services used in determining cost units pursuant to division 2422
(C)(4)(a) of this section.2423

       (c) Average student grades in each subject in grades nine 2424
through twelve;2425

       (d) Academic achievement levels as assessed under sections 2426
3301.0710, 3301.0711, and 3301.0712 of the Revised Code;2427

       (e) The number of students designated as having a disabling 2428
condition pursuant to division (C)(1) of section 3301.0711 of the 2429
Revised Code;2430

       (f) The numbers of students reported to the state board 2431
pursuant to division (C)(2) of section 3301.0711 of the Revised 2432
Code;2433

       (g) Attendance rates and the average daily attendance for the 2434
year. For purposes of this division, a student shall be counted as 2435
present for any field trip that is approved by the school 2436
administration.2437

       (h) Expulsion rates;2438

       (i) Suspension rates;2439

       (j) Dropout rates;2440

       (k) Rates of retention in grade;2441

       (l) For pupils in grades nine through twelve, the average 2442
number of carnegie units, as calculated in accordance with state 2443
board of education rules;2444

       (m) Graduation rates, to be calculated in a manner specified 2445
by the department of education that reflects the rate at which 2446
students who were in the ninth grade three years prior to the 2447
current year complete school and that is consistent with 2448
nationally accepted reporting requirements;2449

       (n) Results of diagnostic assessments administered to 2450
kindergarten students as required under section 3301.0715 of the 2451
Revised Code to permit a comparison of the academic readiness of 2452
kindergarten students. However, no district shall be required to 2453
report to the department the results of any diagnostic assessment 2454
administered to a kindergarten student if the parent of that 2455
student requests the district not to report those results.2456

       (2) Personnel and classroom enrollment data for each school 2457
district, including:2458

       (a) The total numbers of licensed employees and nonlicensed 2459
employees and the numbers of full-time equivalent licensed 2460
employees and nonlicensed employees providing each category of 2461
instructional service, instructional support service, and 2462
administrative support service used pursuant to division (C)(3) of 2463
this section. The guidelines adopted under this section shall 2464
require these categories of data to be maintained for the school 2465
district as a whole and, wherever applicable, for each grade in 2466
the school district as a whole, for each school building as a 2467
whole, and for each grade in each school building.2468

       (b) The total number of employees and the number of full-time 2469
equivalent employees providing each category of service used 2470
pursuant to divisions (C)(4)(a) and (b) of this section, and the 2471
total numbers of licensed employees and nonlicensed employees and 2472
the numbers of full-time equivalent licensed employees and 2473
nonlicensed employees providing each category used pursuant to 2474
division (C)(4)(c) of this section. The guidelines adopted under 2475
this section shall require these categories of data to be 2476
maintained for the school district as a whole and, wherever 2477
applicable, for each grade in the school district as a whole, for 2478
each school building as a whole, and for each grade in each school 2479
building.2480

       (c) The total number of regular classroom teachers teaching 2481
classes of regular education and the average number of pupils 2482
enrolled in each such class, in each of grades kindergarten 2483
through five in the district as a whole and in each school 2484
building in the school district.2485

       (d) The number of lead teachers employed by each school 2486
district and each school building.2487

       (3)(a) Student demographic data for each school district, 2488
including information regarding the gender ratio of the school 2489
district's pupils, the racial make-up of the school district's 2490
pupils, the number of limited English proficient students in the 2491
district, and an appropriate measure of the number of the school 2492
district's pupils who reside in economically disadvantaged 2493
households. The demographic data shall be collected in a manner to 2494
allow correlation with data collected under division (B)(1) of 2495
this section. Categories for data collected pursuant to division 2496
(B)(3) of this section shall conform, where appropriate, to 2497
standard practices of agencies of the federal government.2498

       (b) With respect to each student entering kindergarten, 2499
whether the student previously participated in a public preschool 2500
program, a private preschool program, or a head start program, and 2501
the number of years the student participated in each of these 2502
programs.2503

       (4) Any data required to be collected pursuant to federal 2504
law.2505

       (C) The education management information system shall include 2506
cost accounting data for each district as a whole and for each 2507
school building in each school district. The guidelines adopted 2508
under this section shall require the cost data for each school 2509
district to be maintained in a system of mutually exclusive cost 2510
units and shall require all of the costs of each school district 2511
to be divided among the cost units. The guidelines shall require 2512
the system of mutually exclusive cost units to include at least 2513
the following:2514

       (1) Administrative costs for the school district as a whole. 2515
The guidelines shall require the cost units under this division 2516
(C)(1) to be designed so that each of them may be compiled and 2517
reported in terms of average expenditure per pupil in formula ADM 2518
in the school district, as determined pursuant to section 3317.03 2519
of the Revised Code.2520

       (2) Administrative costs for each school building in the 2521
school district. The guidelines shall require the cost units under 2522
this division (C)(2) to be designed so that each of them may be 2523
compiled and reported in terms of average expenditure per 2524
full-time equivalent pupil receiving instructional or support 2525
services in each building.2526

       (3) Instructional services costs for each category of 2527
instructional service provided directly to students and required 2528
by guidelines adopted pursuant to division (B)(1)(a) of this 2529
section. The guidelines shall require the cost units under 2530
division (C)(3) of this section to be designed so that each of 2531
them may be compiled and reported in terms of average expenditure 2532
per pupil receiving the service in the school district as a whole 2533
and average expenditure per pupil receiving the service in each 2534
building in the school district and in terms of a total cost for 2535
each category of service and, as a breakdown of the total cost, a 2536
cost for each of the following components:2537

       (a) The cost of each instructional services category required 2538
by guidelines adopted under division (B)(1)(a) of this section 2539
that is provided directly to students by a classroom teacher;2540

       (b) The cost of the instructional support services, such as 2541
services provided by a speech-language pathologist, classroom 2542
aide, multimedia aide, or librarian, provided directly to students 2543
in conjunction with each instructional services category;2544

       (c) The cost of the administrative support services related 2545
to each instructional services category, such as the cost of 2546
personnel that develop the curriculum for the instructional 2547
services category and the cost of personnel supervising or 2548
coordinating the delivery of the instructional services category.2549

       (4) Support or extracurricular services costs for each 2550
category of service directly provided to students and required by 2551
guidelines adopted pursuant to division (B)(1)(b) of this section. 2552
The guidelines shall require the cost units under division (C)(4) 2553
of this section to be designed so that each of them may be 2554
compiled and reported in terms of average expenditure per pupil 2555
receiving the service in the school district as a whole and 2556
average expenditure per pupil receiving the service in each 2557
building in the school district and in terms of a total cost for 2558
each category of service and, as a breakdown of the total cost, a 2559
cost for each of the following components:2560

       (a) The cost of each support or extracurricular services 2561
category required by guidelines adopted under division (B)(1)(b) 2562
of this section that is provided directly to students by a 2563
licensed employee, such as services provided by a guidance 2564
counselor or any services provided by a licensed employee under a 2565
supplemental contract;2566

       (b) The cost of each such services category provided directly 2567
to students by a nonlicensed employee, such as janitorial 2568
services, cafeteria services, or services of a sports trainer;2569

       (c) The cost of the administrative services related to each 2570
services category in division (C)(4)(a) or (b) of this section, 2571
such as the cost of any licensed or nonlicensed employees that 2572
develop, supervise, coordinate, or otherwise are involved in 2573
administering or aiding the delivery of each services category.2574

       (D)(1) The guidelines adopted under this section shall 2575
require school districts to collect information about individual 2576
students, staff members, or both in connection with any data 2577
required by division (B) or (C) of this section or other reporting 2578
requirements established in the Revised Code. The guidelines may 2579
also require school districts to report information about 2580
individual staff members in connection with any data required by 2581
division (B) or (C) of this section or other reporting 2582
requirements established in the Revised Code. The guidelines shall 2583
not authorize school districts to request social security numbers 2584
of individual students. The guidelines shall prohibit the 2585
reporting under this section of a student's name, address, and 2586
social security number to the state board of education or the 2587
department of education. The guidelines shall also prohibit the 2588
reporting under this section of any personally identifiable 2589
information about any student, except for the purpose of assigning 2590
the data verification code required by division (D)(2) of this 2591
section, to any other person unless such person is employed by the 2592
school district or the information technology center operated 2593
under section 3301.075 of the Revised Code and is authorized by 2594
the district or technology center to have access to such 2595
information or is employed by an entity with which the department 2596
contracts for the scoring of assessments administered under 2597
section 3301.0711 of the Revised Code. The guidelines may require 2598
school districts to provide the social security numbers of 2599
individual staff members and the county of residence for a 2600
student. Nothing in this section prohibits the state board of 2601
education or department of education from providing a student's 2602
county of residence to the department of taxation to facilitate 2603
the distribution of tax revenue.2604

       (2) The guidelines shall provide for each school district or 2605
community school to assign a data verification code that is unique 2606
on a statewide basis over time to each student whose initial Ohio 2607
enrollment is in that district or school and to report all 2608
required individual student data for that student utilizing such 2609
code. The guidelines shall also provide for assigning data 2610
verification codes to all students enrolled in districts or 2611
community schools on the effective date of the guidelines 2612
established under this section.2613

       Individual student data shall be reported to the department 2614
through the information technology centers utilizing the code but, 2615
except as provided in sections 3310.11, 3310.42, 3310.63,2616
3313.978, 3310.63, and 3317.20 of the Revised Code, at no time 2617
shall the state board or the department have access to information 2618
that would enable any data verification code to be matched to 2619
personally identifiable student data.2620

       Each school district shall ensure that the data verification 2621
code is included in the student's records reported to any 2622
subsequent school district, community school, or state institution 2623
of higher education, as defined in section 3345.011 of the Revised 2624
Code, in which the student enrolls. Any such subsequent district 2625
or school shall utilize the same identifier in its reporting of 2626
data under this section.2627

       The director of health shall request and receive, pursuant to 2628
sections 3301.0723 and 3701.62 of the Revised Code, a data 2629
verification code for a child who is receiving services under 2630
division (A)(2) of section 3701.61 of the Revised Code. 2631

       (E) The guidelines adopted under this section may require 2632
school districts to collect and report data, information, or 2633
reports other than that described in divisions (A), (B), and (C) 2634
of this section for the purpose of complying with other reporting 2635
requirements established in the Revised Code. The other data, 2636
information, or reports may be maintained in the education 2637
management information system but are not required to be compiled 2638
as part of the profile formats required under division (G) of this 2639
section or the annual statewide report required under division (H) 2640
of this section.2641

       (F) Beginning with the school year that begins July 1, 1991, 2642
the board of education of each school district shall annually 2643
collect and report to the state board, in accordance with the 2644
guidelines established by the board, the data required pursuant to 2645
this section. A school district may collect and report these data 2646
notwithstanding section 2151.357 or 3319.321 of the Revised Code.2647

       (G) The state board shall, in accordance with the procedures 2648
it adopts, annually compile the data reported by each school 2649
district pursuant to division (D) of this section. The state board 2650
shall design formats for profiling each school district as a whole 2651
and each school building within each district and shall compile 2652
the data in accordance with these formats. These profile formats 2653
shall:2654

       (1) Include all of the data gathered under this section in a 2655
manner that facilitates comparison among school districts and 2656
among school buildings within each school district;2657

       (2) Present the data on academic achievement levels as 2658
assessed by the testing of student achievement maintained pursuant 2659
to division (B)(1)(d) of this section.2660

       (H)(1) The state board shall, in accordance with the 2661
procedures it adopts, annually prepare a statewide report for all 2662
school districts and the general public that includes the profile 2663
of each of the school districts developed pursuant to division (G) 2664
of this section. Copies of the report shall be sent to each school 2665
district.2666

       (2) The state board shall, in accordance with the procedures 2667
it adopts, annually prepare an individual report for each school 2668
district and the general public that includes the profiles of each 2669
of the school buildings in that school district developed pursuant 2670
to division (G) of this section. Copies of the report shall be 2671
sent to the superintendent of the district and to each member of 2672
the district board of education.2673

       (3) Copies of the reports received from the state board under 2674
divisions (H)(1) and (2) of this section shall be made available 2675
to the general public at each school district's offices. Each 2676
district board of education shall make copies of each report 2677
available to any person upon request and payment of a reasonable 2678
fee for the cost of reproducing the report. The board shall 2679
annually publish in a newspaper of general circulation in the 2680
school district, at least twice during the two weeks prior to the 2681
week in which the reports will first be available, a notice 2682
containing the address where the reports are available and the 2683
date on which the reports will be available.2684

       (I) Any data that is collected or maintained pursuant to this 2685
section and that identifies an individual pupil is not a public 2686
record for the purposes of section 149.43 of the Revised Code.2687

       (J) As used in this section:2688

       (1) "School district" means any city, local, exempted 2689
village, or joint vocational school district and, in accordance 2690
with section 3314.17 of the Revised Code, any community school. As 2691
used in division (L) of this section, "school district" also 2692
includes any educational service center or other educational 2693
entity required to submit data using the system established under 2694
this section.2695

       (2) "Cost" means any expenditure for operating expenses made 2696
by a school district excluding any expenditures for debt 2697
retirement except for payments made to any commercial lending 2698
institution for any loan approved pursuant to section 3313.483 of 2699
the Revised Code.2700

       (K) Any person who removes data from the information system 2701
established under this section for the purpose of releasing it to 2702
any person not entitled under law to have access to such 2703
information is subject to section 2913.42 of the Revised Code 2704
prohibiting tampering with data.2705

       (L)(1) In accordance with division (L)(2) of this section and 2706
the rules adopted under division (L)(10) of this section, the 2707
department of education may sanction any school district that 2708
reports incomplete or inaccurate data, reports data that does not 2709
conform to data requirements and descriptions published by the 2710
department, fails to report data in a timely manner, or otherwise 2711
does not make a good faith effort to report data as required by 2712
this section.2713

       (2) If the department decides to sanction a school district 2714
under this division, the department shall take the following 2715
sequential actions:2716

       (a) Notify the district in writing that the department has 2717
determined that data has not been reported as required under this 2718
section and require the district to review its data submission and 2719
submit corrected data by a deadline established by the department. 2720
The department also may require the district to develop a 2721
corrective action plan, which shall include provisions for the 2722
district to provide mandatory staff training on data reporting 2723
procedures.2724

       (b) Withhold up to ten per cent of the total amount of state 2725
funds due to the district for the current fiscal year and, if not 2726
previously required under division (L)(2)(a) of this section, 2727
require the district to develop a corrective action plan in 2728
accordance with that division;2729

       (c) Withhold an additional amount of up to twenty per cent of 2730
the total amount of state funds due to the district for the 2731
current fiscal year;2732

       (d) Direct department staff or an outside entity to 2733
investigate the district's data reporting practices and make 2734
recommendations for subsequent actions. The recommendations may 2735
include one or more of the following actions:2736

       (i) Arrange for an audit of the district's data reporting 2737
practices by department staff or an outside entity;2738

       (ii) Conduct a site visit and evaluation of the district;2739

       (iii) Withhold an additional amount of up to thirty per cent 2740
of the total amount of state funds due to the district for the 2741
current fiscal year;2742

       (iv) Continue monitoring the district's data reporting;2743

       (v) Assign department staff to supervise the district's data 2744
management system;2745

       (vi) Conduct an investigation to determine whether to suspend 2746
or revoke the license of any district employee in accordance with 2747
division (N) of this section;2748

       (vii) If the district is issued a report card under section 2749
3302.03 of the Revised Code, indicate on the report card that the 2750
district has been sanctioned for failing to report data as 2751
required by this section;2752

       (viii) If the district is issued a report card under section 2753
3302.03 of the Revised Code and incomplete or inaccurate data 2754
submitted by the district likely caused the district to receive a 2755
higher performance rating than it deserved under that section, 2756
issue a revised report card for the district;2757

       (ix) Any other action designed to correct the district's data 2758
reporting problems.2759

       (3) Any time the department takes an action against a school 2760
district under division (L)(2) of this section, the department 2761
shall make a report of the circumstances that prompted the action. 2762
The department shall send a copy of the report to the district 2763
superintendent or chief administrator and maintain a copy of the 2764
report in its files.2765

       (4) If any action taken under division (L)(2) of this section 2766
resolves a school district's data reporting problems to the 2767
department's satisfaction, the department shall not take any 2768
further actions described by that division. If the department 2769
withheld funds from the district under that division, the 2770
department may release those funds to the district, except that if 2771
the department withheld funding under division (L)(2)(c) of this 2772
section, the department shall not release the funds withheld under 2773
division (L)(2)(b) of this section and, if the department withheld 2774
funding under division (L)(2)(d) of this section, the department 2775
shall not release the funds withheld under division (L)(2)(b) or 2776
(c) of this section.2777

       (5) Notwithstanding anything in this section to the contrary, 2778
the department may use its own staff or an outside entity to 2779
conduct an audit of a school district's data reporting practices 2780
any time the department has reason to believe the district has not 2781
made a good faith effort to report data as required by this 2782
section. If any audit conducted by an outside entity under 2783
division (L)(2)(d)(i) or (5) of this section confirms that a 2784
district has not made a good faith effort to report data as 2785
required by this section, the district shall reimburse the 2786
department for the full cost of the audit. The department may 2787
withhold state funds due to the district for this purpose.2788

       (6) Prior to issuing a revised report card for a school 2789
district under division (L)(2)(d)(viii) of this section, the 2790
department may hold a hearing to provide the district with an 2791
opportunity to demonstrate that it made a good faith effort to 2792
report data as required by this section. The hearing shall be 2793
conducted by a referee appointed by the department. Based on the 2794
information provided in the hearing, the referee shall recommend 2795
whether the department should issue a revised report card for the 2796
district. If the referee affirms the department's contention that 2797
the district did not make a good faith effort to report data as 2798
required by this section, the district shall bear the full cost of 2799
conducting the hearing and of issuing any revised report card.2800

       (7) If the department determines that any inaccurate data 2801
reported under this section caused a school district to receive 2802
excess state funds in any fiscal year, the district shall 2803
reimburse the department an amount equal to the excess funds, in 2804
accordance with a payment schedule determined by the department. 2805
The department may withhold state funds due to the district for 2806
this purpose.2807

       (8) Any school district that has funds withheld under 2808
division (L)(2) of this section may appeal the withholding in 2809
accordance with Chapter 119. of the Revised Code.2810

       (9) In all cases of a disagreement between the department and 2811
a school district regarding the appropriateness of an action taken 2812
under division (L)(2) of this section, the burden of proof shall 2813
be on the district to demonstrate that it made a good faith effort 2814
to report data as required by this section.2815

       (10) The state board of education shall adopt rules under 2816
Chapter 119. of the Revised Code to implement division (L) of this 2817
section.2818

       (M) No information technology center or school district shall 2819
acquire, change, or update its student administration software 2820
package to manage and report data required to be reported to the 2821
department unless it converts to a student software package that 2822
is certified by the department.2823

       (N) The state board of education, in accordance with sections 2824
3319.31 and 3319.311 of the Revised Code, may suspend or revoke a 2825
license as defined under division (A) of section 3319.31 of the 2826
Revised Code that has been issued to any school district employee 2827
found to have willfully reported erroneous, inaccurate, or 2828
incomplete data to the education management information system.2829

       (O) No person shall release or maintain any information about 2830
any student in violation of this section. Whoever violates this 2831
division is guilty of a misdemeanor of the fourth degree.2832

       (P) The department shall disaggregate the data collected 2833
under division (B)(1)(n) of this section according to the race and 2834
socioeconomic status of the students assessed. No data collected 2835
under that division shall be included on the report cards required 2836
by section 3302.03 of the Revised Code.2837

       (Q) If the department cannot compile any of the information 2838
required by division (C)(5) of section 3302.03 of the Revised Code 2839
based upon the data collected under this section, the department 2840
shall develop a plan and a reasonable timeline for the collection 2841
of any data necessary to comply with that division.2842

       Sec. 3769.08.  (A) Any person holding a permit to conduct a 2843
horse-racing meeting may provide a place in the race meeting 2844
grounds or enclosure at which the permit holder may conduct and 2845
supervise the pari-mutuel system of wagering by patrons of legal 2846
age on the live racing programs and simulcast racing programs 2847
conducted by the permit holder.2848

       The pari-mutuel method of wagering upon the live racing 2849
programs and simulcast racing programs held at or conducted within 2850
such race track, and at the time of such horse-racing meeting, or 2851
at other times authorized by the state racing commission, shall 2852
not be unlawful. No other place, except that provided and 2853
designated by the permit holder and except as provided in section 2854
3769.26 of the Revised Code, nor any other method or system of 2855
betting or wagering, except the pari-mutuel system, shall be used 2856
or permitted by the permit holder; nor, except as provided in 2857
section 3769.089 or 3769.26 of the Revised Code, shall the 2858
pari-mutuel system of wagering be conducted by the permit holder 2859
on any races except the races at the race track, grounds, or 2860
enclosure for which the person holds a permit. Each permit holder 2861
may retain as a commission an amount not to exceed eighteen per 2862
cent of the total of all moneys wagered.2863

       The pari-mutuel wagering authorized by this section is 2864
subject to sections 3769.25 to 3769.28 of the Revised Code.2865

       (B) At the close of each racing day, each permit holder 2866
authorized to conduct thoroughbred racing, out of the amount 2867
retained on that day by the permit holder, shall pay by check, 2868
draft, or money order to the tax commissioner, as a tax, a sum 2869
equal to the following percentages of the total of all moneys 2870
wagered on live racing programs on that day and shall separately 2871
compute and pay by check, draft, or money order to the tax 2872
commissioner, as a tax, a sum equal to the following percentages 2873
of the total of all money wagered on simulcast racing programs on 2874
that day:2875

       (1) One per cent of the first two hundred thousand dollars 2876
wagered, or any part of that amount;2877

       (2) Two per cent of the next one hundred thousand dollars 2878
wagered, or any part of that amount;2879

       (3) Three per cent of the next one hundred thousand dollars 2880
wagered, or any part of that amount;2881

       (4) Four per cent of all sums over four hundred thousand 2882
dollars wagered.2883

       Except as otherwise provided in section 3769.089 of the 2884
Revised Code, each permit holder authorized to conduct 2885
thoroughbred racing shall use for purse money a sum equal to fifty 2886
per cent of the pari-mutuel revenues retained by the permit holder 2887
as a commission after payment of the state tax. This fifty per 2888
cent payment shall be in addition to the purse distribution from 2889
breakage specified in this section.2890

       Subject to division (M)(L) of this section, from the moneys 2891
paid to the tax commissioner by thoroughbred racing permit 2892
holders, one-half of one per cent of the total of all moneys so 2893
wagered on a racing day shall be paid into the Ohio fairs fund 2894
created by section 3769.082 of the Revised Code, and one and 2895
one-eighththree-eighths per cent of the total of all moneys so 2896
wagered on a racing day shall be paid into the Ohio thoroughbred 2897
race fund created by section 3769.083 of the Revised Code, and 2898
one-quarter of one per cent of the total of all moneys wagered on 2899
a racing day by each permit holder shall be paid into the state 2900
racing commission operating fund created by section 3769.03 of the 2901
Revised Code. The required payment to the state racing commission 2902
operating fund does not apply to county and independent fairs and 2903
agricultural societiesto each municipal corporation or township 2904
in which a race track is located. The remaining moneys may be 2905
retained by the permit holder, except as provided in this section 2906
with respect to the odd cents redistribution. Amounts paid into 2907
the nursing home franchise permit fee fund pursuant to this 2908
section and section 3769.26 of the Revised Code shall be used 2909
solely for the support of the PASSPORT program as determined in 2910
appropriations made by the general assembly. If the PASSPORT 2911
program is abolished, the amount that would have been paid to the 2912
nursing home franchise permit fee fund under this chapter shall be 2913
paid to the general revenue fund of the state. As used in this 2914
chapter, "PASSPORT program" means the PASSPORT program created 2915
under section 173.40 of the Revised Code.2916

       The total amount paid to the Ohio thoroughbred race fund 2917
under this section and division (A) of section 3769.087 of the 2918
Revised Code shall not exceed by more than six per cent the total 2919
amount paid to this fund under this section and division (A) of2920
that section during the immediately preceding calendar year.2921

       Each year, the total amount calculated for payment into the 2922
Ohio fairs fund under this division, division (C) of this section, 2923
and division (A) of section 3769.087 of the Revised Code shall be 2924
an amount calculated using the percentages specified in this 2925
division, division (C) of this section, and division (A) of 2926
section 3769.087 of the Revised Code.2927

       A permit holder may contract with a thoroughbred horsemen's 2928
organization for the organization to act as a representative of 2929
all thoroughbred owners and trainers participating in a 2930
horse-racing meeting conducted by the permit holder. A 2931
"thoroughbred horsemen's organization" is any corporation or 2932
association that represents, through membership or otherwise, more 2933
than one-half of the aggregate of all thoroughbred owners and 2934
trainers who were licensed and actively participated in racing 2935
within this state during the preceding calendar year. Except as 2936
otherwise provided in this paragraph, any moneys received by a 2937
thoroughbred horsemen's organization shall be used exclusively for 2938
the benefit of thoroughbred owners and trainers racing in this 2939
state through the administrative purposes of the organization, 2940
benevolent activities on behalf of the horsemen, promotion of the 2941
horsemen's rights and interests, and promotion of equine research. 2942
A thoroughbred horsemen's organization may expend not more than an 2943
aggregate of five per cent of its annual gross receipts, or a 2944
larger amount as approved by the organization, for dues, 2945
assessments, and other payments to all other local, national, or 2946
international organizations having as their primary purposes the 2947
promotion of thoroughbred horse racing, thoroughbred horsemen's 2948
rights, and equine research.2949

       (C) Except as otherwise provided in division (B) of this 2950
section, at the close of each racing day, each permit holder 2951
authorized to conduct harness or quarter horse racing, out of the 2952
amount retained that day by the permit holder, shall pay by check, 2953
draft, or money order to the tax commissioner, as a tax, a sum 2954
equal to the following percentages of the total of all moneys 2955
wagered on live racing programs and shall separately compute and 2956
pay by check, draft, or money order to the tax commissioner, as a 2957
tax, a sum equal to the following percentages of the total of all 2958
money wagered on simulcast racing programs on that day:2959

       (1) One per cent of the first two hundred thousand dollars 2960
wagered, or any part of that amount;2961

       (2) Two per cent of the next one hundred thousand dollars 2962
wagered, or any part of that amount;2963

       (3) Three per cent of the next one hundred thousand dollars 2964
wagered, or any part of that amount;2965

       (4) Four per cent of all sums over four hundred thousand 2966
dollars wagered.2967

       Except as otherwise provided in division (B) and subject to 2968
division (M)(L) of this section, from the moneys paid to the tax 2969
commissioner by permit holders authorized to conduct harness or 2970
quarter horse racing, one-half of one per cent of all moneys 2971
wagered on that racing day shall be paid into the Ohio fairs fund; 2972
from the moneys paid to the tax commissioner by permit holders 2973
authorized to conduct harness racing, five-eighths of one and 2974
three-eighths per cent of all moneys wagered on that racing day 2975
shall be paid into the Ohio standardbred development fundto each 2976
municipal corporation or township in which a race track is 2977
located; and from the moneys paid to the tax commissioner by 2978
permit holders authorized to conduct quarter horse racing, 2979
five-eighths of one per cent of all moneys wagered on that racing 2980
day shall be paid into the Ohio quarter horse development fund.2981

       (D) In addition, subject to division (M) of this section, 2982
beginning on January 1, 1996, from the money paid to the tax 2983
commissioner as a tax under this section and division (A) of 2984
section 3769.087 of the Revised Code by harness horse permit 2985
holders, one-half of one per cent of the amount wagered on a 2986
racing day shall be paid into the Ohio standardbred development 2987
fund. Beginning January 1, 1998, the payment to the Ohio 2988
standardbred development fund required under this division does 2989
not apply to county agricultural societies or independent 2990
agricultural societies.The2991

       The total amount paid to the Ohio standardbred development 2992
fund under this division, division (C) of this section, and2993
division (A) of section 3769.087 of the Revised Code and the total 2994
amount paid to the Ohio quarter horse development fund under this2995
division (C) of this section and division (A) of that section 2996
shall not exceed by more than six per cent the total amount paid 2997
into the fund under this division, division (C) of this section,2998
and division (A) of section 3769.087 of the Revised Code in the 2999
immediately preceding calendar year.3000

       (E) Subject to division (M) of this section, from the money 3001
paid as a tax under this chapter by harness and quarter horse 3002
permit holders, one-quarter of one per cent of the total of all 3003
moneys wagered on a racing day by each permit holder shall be paid 3004
into the state racing commission operating fund created by section 3005
3769.03 of the Revised Code. This division does not apply to 3006
county and independent fairs and agricultural societies.3007

       (F) Except as otherwise provided in section 3769.089 of the 3008
Revised Code, each permit holder authorized to conduct harness 3009
racing shall pay to the harness horsemen's purse pool a sum equal 3010
to fifty per cent of the pari-mutuel revenues retained by the 3011
permit holder as a commission after payment of the state tax. This 3012
fifty per cent payment is to be in addition to the purse 3013
distribution from breakage specified in this section.3014

       (G)(F) In addition, each permit holder authorized to conduct 3015
harness racing shall be allowed to retain the odd cents of all 3016
redistribution to be made on all mutual contributions exceeding a 3017
sum equal to the next lowest multiple of ten.3018

       Forty per cent of that portion of that total sum of such odd 3019
cents shall be used by the permit holder for purse money for Ohio 3020
sired, bred, and owned colts, for purse money for Ohio bred 3021
horses, and for increased purse money for horse races. Upon the 3022
formation of the corporation described in section 3769.21 of the 3023
Revised Code to establish a harness horsemen's health and 3024
retirement fund, twenty-five per cent of that portion of that 3025
total sum of odd cents shall be paid at the close of each racing 3026
day by the permit holder to that corporation to establish and fund 3027
the health and retirement fund. Until that corporation is formed, 3028
that twenty-five per cent shall be paid at the close of each 3029
racing day by the permit holder to the tax commissioner or the tax 3030
commissioner's agent in the county seat of the county in which the 3031
permit holder operates race meetings. The remaining thirty-five 3032
per cent of that portion of that total sum of odd cents shall be 3033
retained by the permit holder.3034

       (H)(G) In addition, each permit holder authorized to conduct 3035
thoroughbred racing shall be allowed to retain the odd cents of 3036
all redistribution to be made on all mutuel contributions 3037
exceeding a sum equal to the next lowest multiple of ten. Twenty 3038
per cent of that portion of that total sum of such odd cents shall 3039
be used by the permit holder for increased purse money for horse 3040
races. Upon the formation of the corporation described in section 3041
3769.21 of the Revised Code to establish a thoroughbred horsemen's 3042
health and retirement fund, forty-five per cent of that portion of 3043
that total sum of odd cents shall be paid at the close of each 3044
racing day by the permit holder to that corporation to establish 3045
and fund the health and retirement fund. Until that corporation is 3046
formed, that forty-five per cent shall be paid by the permit 3047
holder to the tax commissioner or the tax commissioner's agent in 3048
the county seat of the county in which the permit holder operates 3049
race meetings, at the close of each racing day. The remaining 3050
thirty-five per cent of that portion of that total sum of odd 3051
cents shall be retained by the permit holder.3052

       (I)(H) In addition, each permit holder authorized to conduct 3053
quarter horse racing shall be allowed to retain the odd cents of 3054
all redistribution to be made on all mutuel contributions 3055
exceeding a sum equal to the next lowest multiple of ten, subject 3056
to a tax of twenty-five per cent on that portion of the total sum 3057
of such odd cents that is in excess of two thousand dollars during 3058
a calendar year, which tax shall be paid at the close of each 3059
racing day by the permit holder to the tax commissioner or the tax 3060
commissioner's agent in the county seat of the county within which 3061
the permit holder operates race meetings. Forty per cent of that 3062
portion of that total sum of such odd cents shall be used by the 3063
permit holder for increased purse money for horse races. The 3064
remaining thirty-five per cent of that portion of that total sum 3065
of odd cents shall be retained by the permit holder.3066

       (J)(I)(1) To encourage the improvement of racing facilities 3067
for the benefit of the public, breeders, and horse owners, and to 3068
increase the revenue to the state from the increase in pari-mutuel 3069
wagering resulting from those improvements, the taxes paid by a 3070
permit holder to the state as provided for in this chapter shall 3071
be reduced by three-fourths of one per cent of the total amount 3072
wagered for those permit holders who make capital improvements to 3073
existing race tracks or construct new race tracks. The percentage 3074
of the reduction that may be taken each racing day shall equal 3075
seventy-five per cent of the taxes levied under divisions (B) and 3076
(C) of this section and section 3769.087 of the Revised Code, and 3077
division (F)(2) of section 3769.26 of the Revised Code, as 3078
applicable, divided by the calculated amount each fund should 3079
receive under divisions (B) and (C) of this section and section 3080
3769.087 of the Revised Code, and division (F)(2) of section 3081
3769.26 of the Revised Code and the reduction provided for in this 3082
division. If the resulting percentage is less than one, that 3083
percentage shall be multiplied by the amount of the reduction 3084
provided for in this division. Otherwise, the permit holder shall 3085
receive the full reduction provided for in this division. The 3086
amount of the allowable reduction not received shall be carried 3087
forward and applied against future tax liability. After any 3088
reductions expire, any reduction carried forward shall be treated 3089
as a reduction as provided for in this division.3090

       If more than one permit holder is authorized to conduct 3091
racing at the facility that is being built or improved, the cost 3092
of the new race track or capital improvement shall be allocated 3093
between or among all the permit holders in the ratio that the 3094
permit holders' number of racing days bears to the total number of 3095
racing days conducted at the facility.3096

       A reduction for a new race track or a capital improvement 3097
shall start from the day racing is first conducted following the 3098
date actual construction of the new race track or each capital 3099
improvement is completed and the construction cost has been 3100
approved by the racing commission, unless otherwise provided in 3101
this section. A reduction for a new race track or a capital 3102
improvement shall continue for a period of twenty-five years for 3103
new race tracks and for fifteen years for capital improvements if 3104
the construction of the capital improvement or new race track 3105
commenced prior to March 29, 1988, and for a period of ten years 3106
for new race tracks or capital improvements if the construction of 3107
the capital improvement or new race track commenced on or after 3108
March 29, 1988, but before June 6, 2001, or until the total tax 3109
reduction reaches seventy per cent of the approved cost of the new 3110
race track or capital improvement, as allocated to each permit 3111
holder, whichever occurs first. A reduction for a new race track 3112
or a capital improvement approved after June 6, 2001, shall 3113
continue until the total tax reduction reaches one hundred per 3114
cent of the approved cost of the new race track or capital 3115
improvement, as allocated to each permit holder.3116

       A reduction granted for a new race track or a capital 3117
improvement, the application for which was approved by the racing 3118
commission after March 29, 1988, but before June 6, 2001, shall 3119
not commence nor shall the ten-year period begin to run until all 3120
prior tax reductions with respect to the same race track have 3121
ended. The total tax reduction because of capital improvements 3122
shall not during any one year exceed for all permit holders using 3123
any one track three-fourths of one per cent of the total amount 3124
wagered, regardless of the number of capital improvements made. 3125
Several capital improvements to a race track may be consolidated 3126
in an application if the racing commission approved the 3127
application prior to March 29, 1988. No permit holder may receive 3128
a tax reduction for a capital improvement approved by the racing 3129
commission on or after March 29, 1988, at a race track until all 3130
tax reductions have ended for all prior capital improvements 3131
approved by the racing commission under this section or section 3132
3769.20 of the Revised Code at that race track. If there are two 3133
or more permit holders operating meetings at the same track, they 3134
may consolidate their applications. The racing commission shall 3135
notify the tax commissioner when the reduction of tax begins and 3136
when it ends.3137

       Each fiscal year the racing commission shall submit a report 3138
to the tax commissioner, the office of budget and management, and 3139
the legislative service commission. The report shall identify each 3140
capital improvement project undertaken under this division and in 3141
progress at each race track, indicate the total cost of each 3142
project, state the tax reduction that resulted from each project 3143
during the immediately preceding fiscal year, estimate the tax 3144
reduction that will result from each project during the current 3145
fiscal year, state the total tax reduction that resulted from all 3146
such projects at all race tracks during the immediately preceding 3147
fiscal year, and estimate the total tax reduction that will result 3148
from all such projects at all race tracks during the current 3149
fiscal year.3150

       (2) In order to qualify for the reduction in tax, a permit 3151
holder shall apply to the racing commission in such form as the 3152
commission may require and shall provide full details of the new 3153
race track or capital improvement, including a schedule for its 3154
construction and completion, and set forth the costs and expenses 3155
incurred in connection with it. The racing commission shall not 3156
approve an application unless the permit holder shows that a 3157
contract for the new race track or capital improvement has been 3158
let under an unrestricted competitive bidding procedure, unless 3159
the contract is exempted by the controlling board because of its 3160
unusual nature. In determining whether to approve an application, 3161
the racing commission shall consider whether the new race track or 3162
capital improvement will promote the safety, convenience, and 3163
comfort of the racing public and horse owners and generally tend 3164
towards the improvement of racing in this state.3165

       (3) If a new race track or capital improvement is approved by 3166
the racing commission and construction has started, the tax 3167
reduction may be authorized by the commission upon presentation of 3168
copies of paid bills in excess of one hundred thousand dollars or 3169
ten per cent of the approved cost, whichever is greater. After the 3170
initial authorization, the permit holder shall present copies of 3171
paid bills. If the permit holder is in substantial compliance with 3172
the schedule for construction and completion of the new race track 3173
or capital improvement, the racing commission may authorize the 3174
continuation of the tax reduction upon the presentation of the 3175
additional paid bills. The total amount of the tax reduction 3176
authorized shall not exceed the percentage of the approved cost of 3177
the new race track or capital improvement specified in division 3178
(J)(I)(1) of this section. The racing commission may terminate any 3179
tax reduction immediately if a permit holder fails to complete the 3180
new race track or capital improvement, or to substantially comply 3181
with the schedule for construction and completion of the new race 3182
track or capital improvement. If a permit holder fails to complete 3183
a new race track or capital improvement, the racing commission 3184
shall order the permit holder to repay to the state the total 3185
amount of tax reduced. The normal tax paid by the permit holder 3186
shall be increased by three-fourths of one per cent of the total 3187
amount wagered until the total amount of the additional tax 3188
collected equals the total amount of tax reduced.3189

       (4) As used in this section:3190

       (a) "Capital improvement" means an addition, replacement, or 3191
remodeling of a structural unit of a race track facility costing 3192
at least one hundred thousand dollars, including, but not limited 3193
to, the construction of barns used exclusively for the race track 3194
facility, backstretch facilities for horsemen, paddock facilities, 3195
new pari-mutuel and totalizator equipment and appurtenances to 3196
that equipment purchased by the track, new access roads, new 3197
parking areas, the complete reconstruction, reshaping, and 3198
leveling of the racing surface and appurtenances, the installation 3199
of permanent new heating or air conditioning, roof replacement or 3200
restoration, installations of a permanent nature forming a part of 3201
the track structure, and construction of buildings that are 3202
located on a permit holder's premises. "Capital improvement" does 3203
not include the cost of replacement of equipment that is not 3204
permanently installed, ordinary repairs, painting, and maintenance 3205
required to keep a race track facility in ordinary operating 3206
condition.3207

       (b) "New race track" includes the reconstruction of a race 3208
track damaged by fire or other cause that has been declared by the 3209
racing commission, as a result of the damage, to be an inadequate 3210
facility for the safe operation of horse racing.3211

       (c) "Approved cost" includes all debt service and interest 3212
costs that are associated with a capital improvement or new race 3213
track and that the racing commission approves for a tax reduction 3214
under division (J)(I) of this section.3215

       (5) The racing commission shall not approve an application 3216
for a tax reduction under this section if it has reasonable cause 3217
to believe that the actions or negligence of the permit holder 3218
substantially contributed to the damage suffered by the track due 3219
to fire or other cause. The racing commission shall obtain any 3220
data or information available from a fire marshal, law enforcement 3221
official, or insurance company concerning any fire or other damage 3222
suffered by a track, prior to approving an application for a tax 3223
reduction.3224

       (6) The approved cost to which a tax reduction applies shall 3225
be determined by generally accepted accounting principles and 3226
verified by an audit of the permit holder's records upon 3227
completion of the project by the racing commission, or by an 3228
independent certified public accountant selected by the permit 3229
holder and approved by the commission.3230

       (K)(J) No other license or excise tax or fee, except as 3231
provided in sections 3769.01 to 3769.14 of the Revised Code, shall 3232
be assessed or collected from such licensee by any county, 3233
township, district, municipal corporation, or other body having 3234
power to assess or collect a tax or fee. That portion of the tax 3235
paid under this section by permit holders for racing conducted at 3236
and during the course of an agricultural exposition or fair, and 3237
that portion of the tax that would have been paid by eligible 3238
permit holders into the nursing home franchise permit fee fund as 3239
a result of racing conducted at and during the course of an 3240
agricultural exposition or fair, shall be deposited into the state 3241
treasury to the credit of the horse racing tax fund, which is 3242
hereby created for the use of the agricultural societies of the 3243
several counties in which the taxes originate. The state racing 3244
commission shall determine eligible permit holders for purposes of 3245
the preceding sentence, taking into account the breed of horse, 3246
the racing dates, the geographic proximity to the fair, and the 3247
best interests of Ohio racing. On the first day of any month on 3248
which there is money in the fund, the tax commissioner shall 3249
provide for payment to the treasurer of each agricultural society 3250
the amount of the taxes collected under this section upon racing 3251
conducted at and during the course of any exposition or fair 3252
conducted by the society.3253

       (L)(K) From the tax paid under this section by harness track 3254
permit holders, the tax commissioner shall pay into the Ohio 3255
thoroughbred race fund a sum equal to a percentage of the amount 3256
wagered upon which the tax is paid. The percentage shall be 3257
determined by the tax commissioner and shall be rounded to the 3258
nearest one-hundredth. The percentage shall be such that, when 3259
multiplied by the amount wagered upon which tax was paid by the 3260
harness track permit holders in the most recent year for which 3261
final figures are available, it results in a sum that 3262
substantially equals the same amount of tax paid by the tax 3263
commissioner during that year into the Ohio fairs fund from taxes 3264
paid by thoroughbred permit holders. This division does not apply 3265
to county and independent fairs and agricultural societies.3266

       (M)(L) Twenty-five per cent of the taxes levied on 3267
thoroughbred racing permit holders, harness racing permit holders, 3268
and quarter horse racing permit holders under this section, 3269
division (A) of section 3769.087 of the Revised Code, and division 3270
(F)(2) of section 3769.26 of the Revised Code shall be paid into 3271
the nursing home franchise permit fee fund. The tax commissioner 3272
shall pay any money remaining, after the payment into the nursing 3273
home franchise permit fee fund and the reductions provided for in 3274
division (J)(I) of this section and in section 3769.20 of the 3275
Revised Code, into the Ohio fairs fund, Ohio thoroughbred race 3276
fund, Ohio standardbred development fund, Ohio quarter horse fund, 3277
and state racing commission operating fund as prescribed in this 3278
section and division (A) of section 3769.087 of the Revised Code. 3279
The tax commissioner shall thereafter use and apply the balance of 3280
the money paid as a tax by any permit holder to cover any shortage 3281
in the accounts of such funds resulting from an insufficient 3282
payment as a tax by any other permit holder. The moneys received 3283
by the tax commissioner shall be deposited weekly and paid by the 3284
tax commissioner into the funds to cover the total aggregate 3285
amount due from all permit holders to the funds, as calculated 3286
under this section and division (A) of section 3769.087 of the 3287
Revised Code, as applicable. If, after the payment into the 3288
nursing home franchise permit fee fund, sufficient funds are not 3289
available from the tax deposited by the tax commissioner to pay 3290
the required amounts into the Ohio fairs fund, Ohio standardbred 3291
development fund, Ohio thoroughbred race fund, Ohio quarter horse 3292
fund, and the state racing commission operating fund, the tax 3293
commissioner shall prorate on a proportional basis the amount paid 3294
to each of the funds. Any shortage to the funds as a result of a 3295
proration shall be applied against future deposits for the same 3296
calendar year when funds are available. After this application, 3297
the tax commissioner shall pay any remaining money paid as a tax 3298
by all permit holders into the nursing home franchise permit fee 3299
fund. This division does not apply to permit holders conducting 3300
racing at the course of an agricultural exposition or fair as 3301
described in division (K)(J) of this section.3302

       Sec. 3769.087.  (A) In addition to the commission of eighteen 3303
per cent retained by each permit holder as provided in section 3304
3769.08 of the Revised Code, each permit holder shall retain an 3305
additional amount equal to four per cent of the total of all 3306
moneys wagered on each racing day on all wagering pools other than 3307
win, place, and show, of which amount retained an amount equal to 3308
three per cent of the total of all moneys wagered on each racing 3309
day on those pools shall be paid by check, draft, or money order 3310
to the tax commissioner, as a tax. Subject to the restrictions 3311
contained in divisions (B), (C), and (M)(L) of section 3769.08 of 3312
the Revised Code, from such additional moneys paid to the tax 3313
commissioner:3314

       (1) Four-sixths shall be allocated to fund distribution as 3315
provided in division (M)(L) of section 3769.08 of the Revised 3316
Code.3317

       (2) One-twelfth shall be paid into the Ohio fairs fund 3318
created by section 3769.082 of the Revised Code.3319

       (3) One-twelfth of the additional moneys paid to the tax 3320
commissioner by thoroughbred racing permit holders shall be paid 3321
into the Ohio thoroughbred race fund created by section 3769.083 3322
of the Revised Code.3323

       (4) One-twelfth of the additional moneys paid to the tax 3324
commissioner by harness horse racing permit holders shall be paid 3325
to the Ohio standardbred development fund created by section 3326
3769.085 of the Revised Code.3327

       (5) One-twelfth of the additional moneys paid to the tax 3328
commissioner by quarter horse racing permit holders shall be paid 3329
to the Ohio quarter horse development fund created by section 3330
3769.086 of the Revised Code.3331

       (6) One-sixth shall be paid into the state racing commission 3332
operating fund created by section 3769.03 of the Revised Code.3333

       The remaining one per cent that is retained of the total of 3334
all moneys wagered on each racing day on all pools other than win, 3335
place, and show, shall be retained by racing permit holders, and, 3336
except as otherwise provided in section 3769.089 of the Revised 3337
Code, racing permit holders shall use one-half for purse money and 3338
retain one-half.3339

       (B) In addition to the commission of eighteen per cent 3340
retained by each permit holder as provided in section 3769.08 of 3341
the Revised Code and the additional amount retained by each permit 3342
holder as provided in division (A) of this section, each permit 3343
holder shall retain an additional amount equal to one-half of one 3344
per cent of the total of all moneys wagered on each racing day on 3345
all wagering pools other than win, place, and show. The additional 3346
amount retained under this division shall be paid by check, draft, 3347
or money order to the tax commissioner, as a tax. The tax 3348
commissioner shall pay the amount of the tax received under this 3349
division to the state racing commission operating fund created by 3350
section 3769.03 of the Revised Code.3351

       (C) Each permit holder authorized by the state lottery 3352
commission to conduct video lottery terminal gaming shall receive 3353
a commission of video lottery terminal income as set forth in rule 3354
3770:2-3-08 of the Administrative Code. A percentage of that 3355
commission may be paid to the state racing commission for the 3356
benefit of breeding and racing in this state. If so paid, the 3357
percentage paid to the state racing commission shall be based on 3358
rules promulgated by the state racing commission. In addition, the 3359
permit holder shall deposit into the problem casino gambling and 3360
addictions fund one per cent of that commission.3361

       Sec. 3769.089.  (A) As used in this chapter:3362

       (1) "Racing day" means any day authorized under a permit 3363
holder's permit on which, at a simulcast host, either a live 3364
racing program is conducted as authorized under section 3769.07 of 3365
the Revised Code or a simulcast racing program is conducted as 3366
authorized under this section.3367

       (2) "Live racing day" means a racing day on which a live 3368
racing program is conducted by the permit holder along with 3369
simulcasts of all other available racing programs from within this 3370
state and simulcast racing programs from outside this state as 3371
authorized under this section.3372

       (3) "Live racing program" means a racing program consisting 3373
of no fewer than seven live horse races at thoroughbred tracks and 3374
nine live races at standardbred tracks and additional horse races 3375
simulcast from other facilities located either inside or outside 3376
this state, in which not more than two horse races on which 3377
pari-mutuel wagering is conducted are simulcast from facilities 3378
located outside this state. If only one racing meeting of a 3379
particular breed of horse is being held, no fewer than nine live 3380
horse races shall be held on a live racing day. If, during the 3381
course of a racing meeting at a standardbred track, the racing 3382
secretary of the permit holder determines that there is an 3383
insufficient number of entries to have a full field of eight 3384
horses for each of nine races on a live racing program, then the 3385
racing secretary of the permit holder, after consultation with the 3386
Ohio harness horsemens association, may reduce the number of live 3387
races on that live racing program from nine to either eight or 3388
seven, as the racing secretary may determine. The racing secretary 3389
shall not reduce the live racing program to less than seven live 3390
races. If during the course of a meeting at a thoroughbred track, 3391
the racing secretary of a permit holder determines that there is 3392
an insufficient number of entries to have a full field of eight 3393
horses for each of nine races on a live racing program, then the 3394
racing secretary of the permit holder, with the consent of the 3395
thoroughbred horsemens association, may reduce the number of live 3396
races on that live racing program from nine to either eight or 3397
seven, as the racing secretary may determine. The racing secretary 3398
shall not reduce the live racing program to less than seven live 3399
races. No more than seventeen races on which pari-mutuel wagering 3400
is conducted, including both live races and races simulcast from 3401
other facilities located either inside or outside this state, 3402
shall be part of a live racing program.3403

       (4) "Simulcast host" means a track or enclosure in this state 3404
where, on a racing day, a permit holder is doing one or both of 3405
the following:3406

       (a) Conducting a live racing program and offering this 3407
program for simulcasting to one or more simulcast guests and 3408
satellite facilities in this state;3409

       (b) Receiving a simulcast racing program for simulcasting to 3410
one or more simulcast guests and satellite facilities in this 3411
state.3412

       (5) "Simulcast guest" means any track or enclosure that is 3413
receiving from a simulcast host, on a day other than a racing day, 3414
a live racing program or a simulcast racing program.3415

       (6) "Simulcast racing program" means all simulcasts of horse 3416
races to a simulcast host or simulcast guest on a racing day or on 3417
any other day on which pari-mutuel wagering is conducted, but does 3418
not include any simulcast horse races from inside or outside this 3419
state that are included in a simulcast host's live racing program.3420

       (7) "Satellite facility" has the same meaning as in section 3421
3769.25 of the Revised Code.3422

       (8) "Collection and settlement agent" has the same meaning as 3423
in section 3769.0810 of the Revised Code.3424

       (9) "Special racing event" means individual races in live 3425
racing programs or simulcast racing programs, and simulcast racing 3426
programs on special event days under division (C) of this section, 3427
conducted at facilities located outside this state for which the 3428
track, racing association, or state regulatory agency conducting 3429
such races charges a simulcast host a fee for the privilege of 3430
receiving a simulcast of such races into this state that is higher 3431
than the customary and regular fee charged for simulcast races 3432
because of the status or popularity of such races.3433

       (B)(1) The state racing commission shall, upon request by any 3434
permit holder, permit electronically televised simulcasts of horse 3435
races at the permit holder's track or enclosure on racing days 3436
authorized by the permit holder's permit. Except as provided in 3437
division (B) of this section, the commission shall not permit the 3438
simulcast of any simulcast racing program conducted at tracks or 3439
facilities located outside this state unless the out-of-state 3440
simulcast racing program is available to all permit holders, 3441
whether serving as simulcast hosts or simulcast guests, and all 3442
satellite facilities, in this state open and operating on that 3443
day. A permit holder or satellite facility may inform the 3444
commission that it waives the right to receive the simulcast of a 3445
simulcast racing program or a race in a simulcast racing program 3446
on that day and in this event the simulcast racing program or 3447
simulcast race shall be available to all other simulcast hosts, 3448
simulcast guests, and satellite facilities open and operating in 3449
this state on that day.3450

       In order for a permit holder to offer simulcasts of horse 3451
races conducted at facilities located outside this state, the 3452
permit holder shall have conducted live racing programs during the 3453
immediately preceding calendar year on a number of days that is 3454
not less than the number of regular live racing days it conducted 3455
in calendar year 1991, not including additional racing days 3456
conducted in calendar year 1991 by the permit holder at a 3457
winterized facility under a permit issued under section 3769.07 of 3458
the Revised Code, as certified by the commission. In satisfying 3459
the foregoing requirement for live racing days during the 3460
immediately preceding calendar year, a permit holder may include 3461
the number of days on which live racing programs were conducted 3462
under a permit issued under section 3769.07 of the Revised Code 3463
for additional racing days at a winterized facility. In addition, 3464
in order for a permit holder to offer simulcasts of horse races 3465
conducted at facilities located outside this state, the permit 3466
holder shall offer all simulcasts of horse races conducted in this 3467
state made available to it.3468

       In order for a permit holder to offer simulcasts of races 3469
conducted at race tracks located outside this state at the same 3470
time and during the hours in which the live races of a live racing 3471
program are being conducted at its track, a permit holder 3472
conducting a thoroughbred live racing program shall obtain the 3473
consent of the thoroughbred horsemens association and a permit 3474
holder conducting a harness live racing program shall obtain the 3475
consent of the Ohio harness horsemens association. The consent of 3476
the horsemen's organization shall not be unreasonably withheld, 3477
and shall be consistent with the interest of preserving live 3478
racing in this state. If a horsemen's organization withholds its 3479
consent, the permit holder may file an objection with the 3480
commission, which shall promptly consider the objection and 3481
determine whether the horsemen's organization's action in 3482
withholding consent is without substantial merit and, if the 3483
commission so determines, shall authorize the permit holder to 3484
simulcast the simulcast racing programs. The determination of the 3485
commission is final. A permit holder, as a simulcast host, may 3486
offer simulcast racing programs at its track or enclosure of races 3487
conducted at tracks and facilities located outside this state 3488
prior to the commencement of, and following the conclusion of, its 3489
live races without obtaining the consent of a horsemen's 3490
organization under this division.3491

       (2) Notwithstanding section 3769.07 of the Revised Code:3492

        (a) In calendar year 2013, the permit holder at each 3493
standardbred track shall conduct a minimum of seventy-five live 3494
racing days. In calendar year 2013, the permit holder at each 3495
thoroughbred track shall conduct a minimum of seventy-five live 3496
racing days or the number of live racing days that were conducted 3497
at that track in calendar year 2012, whichever is greater. The 3498
live racing days shall be selected by the permit holder, but are 3499
subject to the approval of the commission.3500

       (b) In calendar year 2014, the permit holder at each 3501
standardbred track shall conduct a minimum of one hundred live 3502
racing days. In calendar year 2014, the permit holder at each 3503
thoroughbred track shall conduct a minimum of one hundred live 3504
racing days or the number of live racing days that were conducted 3505
at that track in calendar year 2012, whichever is greater. The 3506
live racing days shall be selected by the permit holder, but are 3507
subject to the approval of the commission.3508

       (c) A permit holder shall conduct a minimum of one hundred 3509
twenty-five live racing days and a maximum of two hundred ten live 3510
racing days in calendar year 2015 and in each subsequent calendar 3511
year. The live racing days shall be selected by the permit holder, 3512
but are subject to the approval of the commission.3513

       (3) For the purposes of division (B)(2) of this section, for 3514
live racing conducted at a track with more than one permit, the 3515
minimum and maximum live racing days shall apply to those permits 3516
collectively and not as a single permit.3517

       (4) In addition to the required live racing days, a permit 3518
holder shall simulcast a simulcast racing program on a minimum of 3519
three hundred sixty days each calendar year. The permit holder 3520
shall simulcast all simulcast racing programs conducted in this 3521
state and made available to the permit holder and simulcast racing 3522
programs conducted outside this state.3523

       (5) The commission may make exception to the required minimum 3524
number of live racing days or simulcast racing program days in 3525
instances of natural disaster or other unexpected circumstances as 3526
defined by the commission, in its sole discretion. For any 3527
calendar year, the horsemen's association at each track may 3528
negotiate an agreement with the permit holder for that track to 3529
reduce the number of live racing days at that track to less than 3530
the minimum live racing days required by division (B)(2)(a), (b), 3531
or (c) of this section, as applicable, or to increase the number 3532
of live racing days at that track to a number that is greater than 3533
the maximum live racing days permitted by division (B)(2)(c) of 3534
this section, subject to the approval of the commission. These 3535
negotiations shall not reduce the number of live racing days to 3536
less than fifty days per calendar year.3537

       (6) To satisfy the requirement of live racing days, a permit 3538
holder may include the number of days on which live racing 3539
programs were conducted under a permit issued under section 3540
3769.07 of the Revised Code for racing days authorized at a 3541
winterized facility.3542

       (7) Notwithstanding any other provision related to simulcast 3543
racing programs, in order for a permit holder to offer simulcast 3544
racing programs of races conducted at tracks located outside this 3545
state at the same time and during the hours in which the live 3546
races of a live racing program are being conducted at its track, a 3547
permit holder conducting a thoroughbred live racing program shall 3548
obtain the consent of the thoroughbred horsemen's association and 3549
a permit holder conducting a harness live racing program shall 3550
obtain the consent of the Ohio harness horsemen's association. The 3551
consent of the applicable horsemen's association shall be 3552
consistent with the interest of preserving live racing in this 3553
state. A permit holder, as a simulcast host, may offer simulcast 3554
racing programs at its track or enclosure of races conducted at 3555
tracks and facilities located outside this state before the 3556
commencement of, and following the conclusion of, its live races 3557
without obtaining the consent of a horsemen's association under 3558
this division.3559

       (C) The commission shall allocate to each track one racing 3560
day for each permit holder during each calendar year for the 3561
conduct of a live racing program on which a permit holder may 3562
conduct as few as one live horse race, with the remainder of the 3563
horse races on that racing day on which pari-mutuel wagering is 3564
conducted as part of the live racing program being simulcast from 3565
other tracks and facilities located either inside or outside this 3566
state. In addition, the commission may allocate to each permit 3567
holder racing days on which it may as part of a live racing 3568
program simulcast more than two horse races from facilities 3569
located outside this state if the horse races involve a national 3570
wagering pool and pari-mutuel wagering is conducted on the 3571
national wagering pool, but on such a racing day there shall in no 3572
event be more than two horse races simulcast from facilities 3573
located outside this state included in a live racing program on 3574
which separate pari-mutuel wagering is conducted. As used in this 3575
division, "national wagering pool" means an interstate or 3576
intrastate common pari-mutuel wagering pool involving two or more 3577
selections covering two or more horse races conducted at tracks 3578
located inside or outside this state.3579

       In emergency situations, the commission may authorize a live 3580
racing day at a track in which all horse races on that racing day 3581
on which pari-mutuel wagering is conducted are simulcast from 3582
tracks and facilities located either inside or outside this state 3583
with the consent of the thoroughbred horsemens association for a 3584
track conducting a thoroughbred live racing program and with the 3585
consent of the Ohio harness horsemens association for a track 3586
conducting a harness live racing program. If a horsemen's 3587
organization withholds its consent, the permit holder may file an 3588
objection with the commission, which shall promptly consider the 3589
objection and determine whether the horsemen's organization's 3590
action in withholding consent is without substantial merit and, if 3591
the commission so determines, shall authorize the permit holder to 3592
simulcast the simulcast racing programs. The determination of the 3593
commission is final.3594

       (D) On any day that a racing day has been applied for at any 3595
track in this state, each track in this state may operate as 3596
either a simulcast host or a simulcast guest and may conduct, with 3597
the approval of the state racing commission, pari-mutuel wagering 3598
on all simulcasts of races conducted inside this state made 3599
available to it plus all simulcasts of races conducted at 3600
facilities located outside this state as determined by the 3601
simulcast hosts. Except as otherwise provided in this section, any 3602
simulcast host or simulcast guest may receive and conduct 3603
simulcast racing programs that feature any breed of horse at any 3604
time of day, as authorized by the commission. Those persons 3605
holding state fair, county fair, or other fair permits shall not 3606
receive a simulcast racing program on which pari-mutuel wagering 3607
is conducted, except that a holder of a permit issued under 3608
section 3769.07 of the Revised Code that has been authorized by 3609
the commission to conduct races of the state fair, a county fair, 3610
or other fair at a commercial track may receive and conduct 3611
simulcast racing programs as a simulcast host or simulcast guest 3612
at the same time in conjunction with the live racing program of 3613
the state fair, county fair, or other fair permit holder conducted 3614
at its track.3615

       The simulcast hosts, with the approval of the state racing 3616
commission, shall determine which simulcast racing programs 3617
offered by race tracks located outside this state will be 3618
simulcast at their tracks and at all simulcast hosts, simulcast 3619
guests, and satellite facilities in this state that are open and 3620
operating during the hours that the simulcast hosts are operating. 3621
Simulcast guests and satellite facilities shall receive all 3622
approved simulcast racing programs offered by simulcast hosts. In 3623
addition, a simulcast host and simulcast guest, with the approval 3624
of the commission, may also receive simulcast horse races and 3625
simulcast racing programs not agreed to by simulcast hosts.3626

       A simulcast host that normally operates during the day only 3627
may serve as a simulcast host for only day-simulcast racing 3628
programs, which include all simulcast racing programs that 3629
commence at a track located outside this state on or before four 3630
p.m. A simulcast host that normally operates during the evening 3631
only may serve as a simulcast host for only evening-simulcast 3632
racing programs, which include all simulcast racing programs that 3633
commence at a track located outside this state on or after three 3634
p.m. A simulcast host that normally operates during the evening, 3635
but that under its permit conducts live racing programs during the 3636
day, may serve as a simulcast host for day-simulcast racing 3637
programs. A permit holder that is offering at its track simulcast 3638
racing programs that commence at a track located outside this 3639
state on or before four p.m. and simulcast racing programs that 3640
commence at a track located outside this state on or after three 3641
p.m. may serve as a simulcast host for both the day-simulcast 3642
racing program and the evening-simulcast racing program only if no 3643
other permit holder is serving as a simulcast host for the other 3644
simulcast racing programs. The times listed in this and the 3645
immediately following paragraphs are standard time as described in 3646
section 1.04 of the Revised Code and in the "Uniform Time Act of 3647
1966," 80 Stat. 107, 15 U.S.C. 260 to 265.3648

       If a simulcast host is conducting a racing program that 3649
features thoroughbred or quarter horses on the same day that 3650
another simulcast host is conducting a live racing program that 3651
features harness horses at a track located in the same county as, 3652
or within twenty miles of, the track of the first simulcast host, 3653
the first simulcast host shall not conduct pari-mutuel wagering on 3654
simulcast racing programs that commence after four p.m. on that 3655
day and the second simulcast host shall not conduct wagering on 3656
simulcast racing programs that commence before three p.m. on that 3657
day.3658

       A simulcast host that is conducting a live racing program and 3659
is simulcasting that program to other simulcast hosts and 3660
simulcast guests in this state shall receive from each simulcast 3661
host and each simulcast guest receiving the simulcast an 3662
intrastate simulcast fee of one and three-eighths per cent of the 3663
amounts wagered on such simulcast racing program at its 3664
facilities. The simulcast hosts and simulcast guests receiving 3665
such simulcast racing program shall pay the intrastate simulcast 3666
fee to the collection and settlement agent, and the fee shall be 3667
disbursed by the agent, at the time and in the manner provided in 3668
section 3769.0810 of the Revised Code.3669

       (E)(1) The moneys wagered on simulcast racing programs on a 3670
racing day shall be separated from the moneys wagered on the live 3671
racing program on that racing day. From the moneys wagered on the 3672
simulcast races, each permit holder may retain as a commission the 3673
percentage of the amount wagered as specified in sections 3769.08 3674
and 3769.087 of the Revised Code, as applicable, and shall pay, by 3675
check, draft, or money order to the state tax commissioner, as a 3676
tax, the tax specified in sections 3769.08 and 3769.087 of the 3677
Revised Code, as applicable. From the tax collected, the tax 3678
commissioner shall make the distributions to the respective funds, 3679
and in the proper amounts, as required by sections 3769.08 and 3680
3769.087 of the Revised Code, as applicable. Except as provided in 3681
divisions (E)(2) and (3) of this section, from the amount 3682
remaining after the payment of state taxes on the moneys wagered 3683
on live racing programs and on the moneys wagered on simulcast 3684
racing programs, a permit holder shall retain an amount equal to 3685
two and three-eightsthree-eighths per cent of the amount wagered 3686
on live racing programs and on intrastate and interstate simulcast 3687
racing programs simulcast at its track and on the amount wagered 3688
on the live racing programs and simulcast racing programs at a 3689
satellite facility allocated to it under section 3769.26 of the 3690
Revised Code, as a fee to pay for those costs associated with the 3691
reception and transmission of simulcasts and the administrative 3692
cost of the conduct of live racing programs and simulcast racing 3693
programs. From the remaining balance, one-half shall be retained 3694
by the permit holder for purses. On a day when a permit holder 3695
conducts a live racing program, all purse money generated from 3696
wagering on live racing programs and on simulcast racing programs 3697
at its track shall be used for that permit holder's purse account. 3698
On a day when a permit holder operates as a simulcast host with no 3699
live racing program, or operates as a simulcast guest, all purse 3700
money generated from wagering on intrastate and interstate 3701
simulcast racing programs shall be paid to the state racing 3702
commission for deposit into the Ohio combined simulcast horse 3703
racing purse fund created under this section. In addition, on a 3704
day when a permit holder serves as a simulcast host for a 3705
satellite facility, all purse money generated from amounts wagered 3706
at the satellite facility allocated to the permit holder under 3707
section 3769.26 of the Revised Code shall be paid to the 3708
commission for deposit into the Ohio simulcast horse racing purse 3709
fund.3710

       (2) If there are not four satellite facilities in operation 3711
in this state within one year after the effective date of this 3712
sectionSeptember 19, 1996, or if there are not seven satellite 3713
facilities in operation in this state within two years after the 3714
effective date of this sectionSeptember 19, 1996, or if there are 3715
not ten satellite facilities in operation in this state within 3716
three years after the effective date of this sectionSeptember 19, 3717
1996, then in any such event the amount to be retained as a fee by 3718
the permit holder under division (E)(1) of this section shall be 3719
one and seven-eighths per cent until such time as the number of 3720
satellite facilities specified in division (E)(2) of this section 3721
are in operation. For good cause shown, the thoroughbred horsemens 3722
association and Ohio harness horsemens association may waive the 3723
requirements of division (E)(2) of this section or extend the date 3724
for compliance as to any year by filing a written notification 3725
with the state racing commission.3726

       (3) If a simulcast racing program simulcast by a simulcast 3727
host at its track or enclosure and to other simulcast hosts, 3728
simulcast guests, and satellite facilities in this state is a 3729
special racing event, the permit holder offering the special 3730
racing event and other simulcast hosts, simulcast guests, and 3731
satellite facilities receiving the special racing event shall not 3732
retain the fee provided under division (E)(1) or (2) of this 3733
section but shall retain from the moneys wagered on the special 3734
racing event an amount equal to the fee charged by the track, 3735
racing association, or state regulatory agency simulcasting the 3736
special racing event to the simulcast host. From the remaining 3737
balance, one-half shall be retained by the permit holder for 3738
purses in the manner provided in division (E)(1) of this section.3739

       A permit holder proposing to simulcast a special racing event 3740
as a simulcast host shall advise its horsemen's organization of 3741
the proposed schedule of the special racing event and obtain its 3742
consent to this schedule. The consent of the horsemen's 3743
organization shall not be unreasonably withheld and shall be 3744
consistent with the interest of preserving live racing in this 3745
state. If the horsemen's organization withholds its consent, the 3746
permit holder may file an objection with the state racing 3747
commission, which shall promptly consider the objection and 3748
determine whether the organization's action in withholding consent 3749
is without substantial merit and, if the commission so determines, 3750
shall authorize the permit holder to simulcast the special racing 3751
event. The determination of the commission is final.3752

       (F) There is hereby created in the state treasury the Ohio 3753
combined simulcast horse racing purse fund, to consist of moneys 3754
paid into it by permit holders pursuant to division (E) of this 3755
section and by satellite facilities pursuant to division (F) of 3756
section 3769.26 of the Revised Code. Moneys to the credit of the 3757
fund, including interest earned thereon, may be used by the 3758
commission for the costs of administering this division and the 3759
balance shall be distributed among permit holders no less 3760
frequently than monthly to each permit holder's purse account on 3761
order of the commission.3762

       For each calendar year, permit holders at each track shall 3763
receive a share of each distribution of the Ohio combined 3764
simulcast horse racing purse fund in the same percentage, rounded 3765
to the nearest one-hundredth of the amount of each distribution, 3766
as the average total amount wagered at the track on racing days at 3767
which live racing programs were conducted, including the amount 3768
allocated to the track under section 3769.26 of the Revised Code 3769
for live races, during the five calendar years immediately 3770
preceding the year for which the distribution is made bears to the 3771
average annual total amount wagered at all tracks in the state 3772
operating under permits issued by the state racing commission 3773
under section 3769.07, 3769.071, or 3769.072 of the Revised Code 3774
on all racing days at which live racing programs were conducted, 3775
including the amount allocated to the tracks under section 3769.26 3776
of the Revised Code for live races, during the five calendar years 3777
immediately preceding the year for which the distribution is made. 3778
By the thirty-first day of January of each year the commission 3779
shall calculate the share of the permit holders at each track for 3780
that year, shall enter the share percentages in its official 3781
records, and shall notify all permit holders of the share 3782
percentages of all tracks for that calendar year.3783

       The permit holders at each track, with the approval of the 3784
commission, shall allocate their share of the fund as distributed 3785
to the purse account of each permit holder for each race meeting.3786

       The commission shall cause to be kept accurate records of its 3787
administration of the fund, including all administrative expenses 3788
incurred by it and charged to the fund, and of distributions to 3789
permit holders. These records are public records available for 3790
inspection at any time during the regular business hours of the 3791
commission by any permit holder or horsemen's organization, by an 3792
authorized agent of the permit holder or horsemen's organization, 3793
or by any other person.3794

       (G) Upon the approval of the commission, a permit holder 3795
conducting live racing programs may transmit electronically 3796
televised simulcasts of horse races conducted at the permit 3797
holder's track to racing associations, tracks, and facilities 3798
located outside this state for the conduct of pari-mutuel wagering 3799
thereon, at the times, on the terms, and for the fee agreed upon 3800
by the permit holder and the receiving racing association, track, 3801
or facility. From the fees paid to the permit holder for such 3802
simulcasts, a permit holder shall retain for the costs of 3803
administration a fee in an amount equal to one per cent of the 3804
amount wagered on the races simulcast by the permit holder. From 3805
the remaining balance of the fee, one-half shall be retained by 3806
the permit holder for purses, except that notwithstanding the fee 3807
arrangement between the permit holder and the receiving racing 3808
association, track, or facility, the permit holder shall deposit 3809
into its purse account not less than an amount equal to 3810
three-fourths of one per cent of the amount wagered at racing 3811
associations, tracks, and facilities located outside the state on 3812
the races simulcast by the permit holder.3813

       All televised simulcasts of horse races conducted in this 3814
state to racing associations, tracks, and facilities located 3815
outside this state shall comply with the "Interstate Horse Racing 3816
Act of 1978," 92 Stat. 1811, 15 U.S.C.A. 3001 to 3007. The consent 3817
of the horsemen's organization at the track of the permit holder 3818
applying to the commission to simulcast horse races conducted at 3819
the permit holder's track to racing associations, tracks, and 3820
facilities located outside this state shall not be unreasonably 3821
withheld and shall be consistent with the interest of preserving 3822
live racing. If a horsemen's organization withholds its consent, 3823
the permit holder may file an objection with the commission, which 3824
shall promptly consider the objection and determine whether the 3825
horsemen's organization's action in withholding consent is without 3826
substantial merit and, if the commission so determines, shall 3827
authorize the permit holder to simulcast the races. The 3828
determination of the commission is final.3829

       (H)(1) The state racing commission may authorize any permit 3830
holder that is authorized to conduct live horse racing on racing 3831
days and that conducts pari-mutuel wagering on simulcasts of horse 3832
races under this section that are conducted at race tracks either 3833
inside or outside this state to conduct, supervise, and 3834
participate in interstate and intrastate common pari-mutuel 3835
wagering pools on those races in the manner provided in division 3836
(H) of this section. Except as otherwise expressly provided in 3837
division (H) of this section or in the rules of the state racing 3838
commission, the provisions of this chapter that govern pari-mutuel 3839
wagering apply to interstate or intrastate common pari-mutuel 3840
wagering pools.3841

       (2) Subject to the approval of the state racing commission, 3842
the types of wagering, calculation of the commission retained by 3843
the permit holder, tax rates, distribution of winnings, and rules 3844
of racing in effect for pari-mutuel wagering pools at the host 3845
track may govern wagers placed at a receiving track in this state 3846
and merged into an interstate or intrastate common pari-mutuel 3847
wagering pool. Breakage from interstate or intrastate common 3848
pari-mutuel wagering pools shall be calculated in accordance with 3849
the rules that govern the host track and shall be distributed 3850
among the tracks participating in the interstate or intrastate 3851
common wagering pool in a manner agreed to by the participating 3852
tracks and the host track. An interstate common pari-mutuel 3853
wagering pool formed under division (H)(3) of this section is 3854
subject to that division rather than to division (H)(2) of this 3855
section.3856

       (3) Subject to the approval of the state racing commission, 3857
an interstate common pari-mutuel wagering pool may be formed 3858
between a permit holder and one or more receiving tracks located 3859
in states other than the state in which the host track is located. 3860
The commission may approve types of wagering, calculation of the 3861
commission retained by the permit holder, tax rates, distribution 3862
of winnings, rules of racing, and calculation of breakage for such 3863
an interstate common pari-mutuel wagering pool that differ from 3864
those that would otherwise be applied in this state under this 3865
chapter but that are consistent for all tracks participating in 3866
the interstate common pari-mutuel wagering pool formed under 3867
division (H)(3) of this section.3868

       (4) As used in division (H) of this section:3869

       (a) "Host track" means a track where live horse races are 3870
conducted and offered for simulcasting to receiving tracks.3871

       (b) "Receiving track" means a track where simulcasts of races 3872
from a host track are displayed and wagered on.3873

       (I) Each permit holder is responsible for paying all costs 3874
associated with the up-link for, and reception of, simulcasts, and 3875
the conduct and operation of simulcast racing programs, for all 3876
fees and costs associated with serving as a simulcast host or 3877
simulcast guest, and for any required fees payable to the tracks, 3878
racing associations, or state regulatory agencies where simulcast 3879
racing is conducted at tracks located outside this state.3880

       (J) No license, fee, or excise tax, other than as specified 3881
in division (E) of this section, shall be assessed upon or 3882
collected from a permit holder or the owners of a permit holder in 3883
connection with, or pertaining to, the operation and conduct of 3884
simulcast racing programs in this state, by any county, township, 3885
municipal corporation, district, or other body having the 3886
authority to assess or collect a tax or fee.3887

       (K)(1) Permit holders operating tracks within the same county 3888
or adjacent counties that are conducting simulcast racing programs 3889
under this section may enter into agreements regarding the conduct 3890
of simulcast racing programs at their respective tracks and the 3891
sharing of the retained commissions therefrom, for such periods of 3892
time, upon such terms and conditions, and subject to such rights 3893
and obligations, as the contracting permit holders consider 3894
appropriate under the circumstances. Permit holders so contracting3895
shall notify the state racing commission of their entry into an 3896
agreement pursuant to this division, the names of the permit 3897
holders that are parties to the agreement, and the length of the 3898
term oftime the agreement shall be in effect.3899

       (2) Permit holders and the thoroughbred horsemens association 3900
and Ohio harness horsemens association may agree to do any of the 3901
following:3902

       (a) Increase or reduce the fees and amounts to be retained by 3903
the permit holders under this section;3904

       (b) Increase or reduce the fees and amounts to be allocated 3905
to the purse accounts orof permit holders under this section;3906

       (c) Increase or reduce the fees to be paid between and among 3907
simulcast hosts and simulcast guests under this section and under 3908
division (C) of section 3769.0810 of the Revised Code;3909

       (d) Modify, suspend, or waive the requirements set forth in 3910
division (B) of this section as to any permit holder or as to all 3911
permit holders.3912

       All permit holders and both horsemen's organizations shall 3913
approve such agreement. Any agreement entered into under division 3914
(K)(2) of this section shall set forth the effective date of any 3915
such increase or reduction, and the terms and provisions of the 3916
agreement, and a copy of the agreement shall be filed with the 3917
state racing commission.3918

       Sec. 3769.201.  The holder of a permit issued under section 3919
3769.06 of the Revised Code may apply to the state racing 3920
commission for the tax reduction available under section 3769.20 3921
of the Revised Code for the cost to the permit holder of any 3922
cleanup, repair, or improvement required as a result of damage 3923
caused by the 1997 Ohio river flood to the place, track, or 3924
enclosure for which the permit is issued. As part of the 3925
application, the permit holder shall submit evidence of payment of 3926
the cost of the cleanup, repair, or improvement. The commission 3927
shall approve the tax reduction in the amount of the cost to the 3928
permit holder, net of any insurance proceeds, of any cleanup, 3929
repair, or improvement the commission determines was required as a 3930
result of damage caused by the flood. The permit holder need not 3931
have followed unrestricted competitive bidding procedures as 3932
required under section 3769.20 of the Revised Code to qualify for 3933
the reduction under this section.3934

       The permit holder shall claim the tax reduction under this 3935
section in the same manner as if it were a tax reduction for a 3936
major capital improvement project under section 3769.20 of the 3937
Revised Code. The percentage of the reduction that may be taken 3938
each racing day shall equal the percentage allowed for a reduction 3939
under section 3769.20 of the Revised Code. A reduction under this 3940
section shall be in addition to, and shall be taken after 3941
completion of, a reduction approved under section 3769.20 or 3942
division (J)(I) of section 3769.08 of the Revised Code. A permit 3943
holder shall not take a reduction under this section for a repair 3944
or improvement for which a reduction is taken under section 3945
3769.20 or division (J)(I) of section 3769.08 of the Revised Code.3946

       Sec. 3769.21.  (A) A corporation may be formed pursuant to 3947
Chapter 1702. of the Revised Code to establish a thoroughbred 3948
horsemen's health and retirement fund and a corporation may be 3949
formed pursuant to Chapter 1702. of the Revised Code to establish 3950
a harness horsemen's health and retirement fund to be administered 3951
for the benefit of horsemen. As used in this section, "horsemen" 3952
includes any person involved in the owning, breeding, training, 3953
grooming, or racing of horses which race in Ohio, except for the 3954
owners or managers of race tracks. For purposes of the 3955
thoroughbred horsemen's health and retirement fund, "horsemen" 3956
also does not include trainers and grooms who are not members of 3957
the thoroughbred horsemen's organization in this state. No more 3958
than one corporation to establish a thoroughbred horsemen's health 3959
and retirement fund and no more than one corporation to establish 3960
a harness horsemen's health and retirement fund may be established 3961
in Ohio pursuant to this section. The trustees of the corporation 3962
formed to establish a thoroughbred horsemen's health and 3963
retirement fund shall have the discretion to determine which 3964
horsemen shall benefit from such fund.3965

       (B) The articles of incorporation of both of the corporations 3966
described in division (A) of this section shall provide for at 3967
least the following:3968

       (1) The corporation shall be governed by, and the health and 3969
retirement fund shall be administered by, a board of three 3970
trustees appointed pursuant to division (C) of this section for 3971
staggered three-year terms.3972

       (2) The board of trustees shall adopt and administer a plan 3973
to provide health benefits, retirement benefits, or both to either 3974
thoroughbred or harness horsemen.3975

       (3) The sum paid to the corporation pursuant to division (F) 3976
or (G) or (H) of section 3769.08 of the Revised Code shall be used 3977
exclusively to establish and administer the health and retirement 3978
fund, and to finance benefits paid to horsemen pursuant to the 3979
plan adopted under division (B)(2) of this section.3980

       (4) The articles of incorporation and code of regulations of 3981
the corporation may be amended at any time by the board of 3982
trustees pursuant to the method set forth in the articles of 3983
incorporation and code of regulations, except that no amendment 3984
shall be adopted which is inconsistent with this section.3985

       (C) Within sixty days after the formation of each of the 3986
corporations described in division (A) of this section, the state 3987
racing commission shall appoint the members of the board of 3988
trustees of that corporation. Vacancies shall be filled by the 3989
state racing commission in the same manner as initial 3990
appointments. Each trustee of the thoroughbred horsemen's health 3991
and retirement fund appointed by the commission shall be active as 3992
a thoroughbred horseman while serving a term as a trustee and 3993
shall have been active as a thoroughbred horseman for at least 3994
five years immediately prior to the commencement of any such term. 3995
Each trustee of the harness horsemen's health and retirement fund 3996
appointed by the commission shall be active as a harness horseman 3997
while serving a term as a trustee and shall have been active as a 3998
harness horseman for at least five years immediately prior to the 3999
commencement of any such term. The incorporators of either such 4000
corporation may serve as initial trustees until the state racing 4001
commission acts pursuant to this section to make these 4002
appointments.4003

       (D) The intent of the general assembly in enacting this 4004
section pursuant to Amended House Bill No. 639 of the 115th 4005
general assembly was to fulfill a legitimate government 4006
responsibility in a manner that would be more cost efficient and 4007
effective than direct state agency administration by permitting 4008
nonprofit corporations to be formed to establish health and 4009
retirement funds for the benefit of harness and thoroughbred 4010
horsemen, as it was determined that such persons were in need of 4011
such benefits.4012

       Sec. 3770.02.  (A) Subject to the advice and consent of the 4013
senate, the governor shall appoint a director of the state lottery 4014
commission who shall serve at the pleasure of the governor. The 4015
director shall devote full time to the duties of the office and 4016
shall hold no other office or employment. The director shall meet 4017
all requirements for appointment as a member of the commission and 4018
shall, by experience and training, possess management skills that 4019
equip the director to administer an enterprise of the nature of a 4020
state lottery. The director shall receive an annual salary in 4021
accordance with pay range 48 of section 124.152 of the Revised 4022
Code.4023

       (B)(1) The director shall attend all meetings of the 4024
commission and shall act as its secretary. The director shall keep 4025
a record of all commission proceedings and shall keep the 4026
commission's records, files, and documents at the commission's 4027
principal office. All records of the commission's meetings shall 4028
be available for inspection by any member of the public, upon a 4029
showing of good cause and prior notification to the director.4030

       (2) The director shall be the commission's executive officer 4031
and shall be responsible for keeping all commission records and 4032
supervising and administering the state lottery in accordance with 4033
this chapter, and carrying out all commission rules adopted under 4034
section 3770.03 of the Revised Code.4035

       (C)(1) The director shall appoint an assistant director, 4036
deputy directors of marketing, operations, sales, finance, public 4037
relations, security, and administration, and as many regional 4038
managers as are required. The director may also appoint necessary 4039
professional, technical, and clerical assistants. All such 4040
officers and employees shall be appointed and compensated pursuant 4041
to Chapter 124. of the Revised Code. Regional and assistant 4042
regional managers, sales representatives, and any lottery 4043
executive account representatives shall remain in the unclassified 4044
service.4045

       (2) The director, in consultation with the director of 4046
administrative services, may establish standards of proficiency 4047
and productivity for commission field representatives.4048

       (D) The director shall request the bureau of criminal 4049
identification and investigation, the department of public safety, 4050
or any other state, local, or federal agency to supply the 4051
director with the criminal records of any job applicant and may 4052
periodically request the criminal records of commission employees. 4053
At or prior to the time of making such a request, the director 4054
shall require a job applicant or commission employee to obtain 4055
fingerprint cards prescribed by the superintendent of the bureau 4056
of criminal identification and investigation at a qualified law 4057
enforcement agency, and the director shall cause these fingerprint 4058
cards to be forwarded to the bureau of criminal identification and 4059
investigation and the federal bureau of investigation. The 4060
commission shall assume the cost of obtaining the fingerprint 4061
cards and shall pay to each agency supplying criminal records for 4062
each investigation under this division a reasonable fee, as 4063
determined by the agency.4064

       (E) The director shall license lottery sales agents pursuant 4065
to section 3770.05 of the Revised Code and, when it is considered 4066
necessary, may revoke or suspend the license of any lottery sales 4067
agent. The director may license video lottery technology 4068
providers, independent testing laboratories, and gaming employees, 4069
and promulgate rules relating thereto. When the director considers 4070
it necessary, the director may suspend or revoke the license of a 4071
video lottery technology provider, independent testing laboratory, 4072
or gaming employee, including suspension or revocation without 4073
affording an opportunity for a prior hearing under section 119.07 4074
of the Revised Code when the public safety, convenience, or trust 4075
requires immediate action.4076

       (F) The director shall confer at least once each month with 4077
the commission, at which time the director shall advise it 4078
regarding the operation and administration of the lottery. The 4079
director shall make available at the request of the commission all 4080
documents, files, and other records pertaining to the operation 4081
and administration of the lottery. The director shall prepare and 4082
make available to the commission each month a complete and 4083
accurate accounting of lottery revenues, prize money disbursements 4084
and the cost of goods and services awarded as prizes, operating 4085
expenses, and all other relevant financial information, including 4086
an accounting of all transfers made from any lottery funds in the 4087
custody of the treasurer of state to benefit education.4088

       (G) The director may enter into contracts for the operation 4089
or promotion of the lottery pursuant to Chapter 125. of the 4090
Revised Code. 4091

       (H)(1) Pursuant to rules adopted by the commission under 4092
section 3770.03 of the Revised Code, the director shall require 4093
any lottery sales agents to either mail directly to the commission 4094
or deposit to the credit of the state lottery fund, in banking 4095
institutions designated by the treasurer of state, net proceeds 4096
due the commission as determined by the director, and to file with 4097
the director or the director's designee reports of their receipts 4098
and transactions in the sale of lottery tickets in the form 4099
required by the director.4100

       (2) Pursuant to rules adopted by the commission under Chapter 4101
119. of the Revised Code, the director may impose penalties for 4102
the failure of a sales agent to transfer funds to the commission 4103
in a timely manner. Penalties may include monetary penalties, 4104
immediate suspension or revocation of a license, or any other 4105
penalty the commission adopts by rule.4106

       (I) The director may arrange for any person, or any banking 4107
institution, to perform functions and services in connection with 4108
the operation of the lottery as the director may consider 4109
necessary to carry out this chapter.4110

       (J)(1) As used in this chapter, "statewide joint lottery 4111
game" means a lottery game that the commission sells solely within 4112
this state under an agreement with other lottery jurisdictions to 4113
sell the same lottery game solely within their statewide or other 4114
jurisdictional boundaries.4115

       (2) If the governor directs the director to do so, the 4116
director shall enter into an agreement with other lottery 4117
jurisdictions to conduct statewide joint lottery games. If the 4118
governor signs the agreement personally or by means of an 4119
authenticating officer pursuant to section 107.15 of the Revised 4120
Code, the director then may conduct statewide joint lottery games 4121
under the agreement.4122

       (3) The entire net proceeds from any statewide joint lottery 4123
games shall be used to fund elementary, secondary, vocational, and 4124
special education programs in this state.4125

       (4) The commission shall conduct any statewide joint lottery 4126
games in accordance with rules it adopts under division (B)(5) of 4127
section 3770.03 of the Revised Code.4128

       (K)(1) The director shall enter into an agreement with the 4129
department of alcohol and drug addiction services under which the 4130
department shall provide a program of gambling addiction services 4131
on behalf of the commission. The commission shall pay the costs of 4132
the program provided pursuant to the agreement.4133

        (2) As used in this section, "gambling addiction services" 4134
has the same meaning as in section 3793.01 of the Revised Code.4135

       Sec. 3770.05.  (A) As used in this section, "person" means 4136
any person, association, corporation, partnership, club, trust, 4137
estate, society, receiver, trustee, person acting in a fiduciary 4138
or representative capacity, instrumentality of the state or any of 4139
its political subdivisions, or any other combination of 4140
individuals meeting the requirements set forth in this section or 4141
established by rule or order of the state lottery commission.4142

       (B) The director of the state lottery commission may license 4143
any person as a lottery sales agent. No license shall be issued to 4144
any person or group of persons to engage in the sale of lottery 4145
tickets as the person's or group's sole occupation or business.4146

       Before issuing any license to a lottery sales agent, the 4147
director shall consider all of the following:4148

       (1) The financial responsibility and security of the 4149
applicant and the applicant's business or activity;4150

       (2) The accessibility of the applicant's place of business or 4151
activity to the public;4152

       (3) The sufficiency of existing licensed agents to serve the 4153
public interest;4154

       (4) The volume of expected sales by the applicant;4155

       (5) Any other factors pertaining to the public interest, 4156
convenience, or trust.4157

       (C) Except as otherwise provided in division (F) of this 4158
section, the director of the state lottery commission shall refuse 4159
to grant, or shall suspend or revoke, a license if the applicant 4160
or licensee:4161

       (1) Has been convicted of a felony or has been convicted of a 4162
crime involving moral turpitude;4163

       (2) Has been convicted of an offense that involves illegal 4164
gambling;4165

       (3) Has been found guilty of fraud or misrepresentation in 4166
any connection;4167

       (4) Has been found to have violated any rule or order of the 4168
commission; or4169

       (5) Has been convicted of illegal trafficking in supplemental 4170
nutrition assistance program benefits.4171

       (D) Except as otherwise provided in division (F) of this 4172
section, the director of the state lottery commission shall refuse 4173
to grant, or shall suspend or revoke, a license if the applicant 4174
or licensee is a corporation and any of the following applies:4175

       (1) Any of the corporation's directors, officers, or 4176
controlling shareholders has been found guilty of any of the 4177
activities specified in divisions (C)(1) to (5) of this section;4178

       (2) It appears to the director of the state lottery 4179
commission that, due to the experience, character, or general 4180
fitness of any director, officer, or controlling shareholder of 4181
the corporation, the granting of a license as a lottery sales 4182
agent would be inconsistent with the public interest, convenience, 4183
or trust;4184

       (3) The corporation is not the owner or lessee of the 4185
business at which it would conduct a lottery sales agency pursuant 4186
to the license applied for;4187

       (4) Any person, firm, association, or corporation other than 4188
the applicant or licensee shares or will share in the profits of 4189
the applicant or licensee, other than receiving dividends or 4190
distributions as a shareholder, or participates or will 4191
participate in the management of the affairs of the applicant or 4192
licensee.4193

       (E)(1) The director of the state lottery commission shall 4194
refuse to grant a license to an applicant for a lottery sales 4195
agent license and shall revoke a lottery sales agent license if 4196
the applicant or licensee is or has been convicted of a violation 4197
of division (A) or (C)(1) of section 2913.46 of the Revised Code.4198

       (2) The director shall refuse to grant a license to an 4199
applicant for a lottery sales agent license that is a corporation 4200
and shall revoke the lottery sales agent license of a corporation 4201
if the corporation is or has been convicted of a violation of 4202
division (A) or (C)(1) of section 2913.46 of the Revised Code.4203

       (F) The director of the state lottery commission shall 4204
request the bureau of criminal identification and investigation, 4205
the department of public safety, or any other state, local, or 4206
federal agency to supply the director with the criminal records of 4207
any applicant for a lottery sales agent license, and may 4208
periodically request the criminal records of any person to whom a 4209
lottery sales agent license has been issued. At or prior to the 4210
time of making such a request, the director shall require an 4211
applicant or licensee to obtain fingerprint impressions on 4212
fingerprint cards prescribed by the superintendent of the bureau 4213
of criminal identification and investigation at a qualified law 4214
enforcement agency, and the director shall cause those fingerprint 4215
cards to be forwarded to the bureau of criminal identification and 4216
investigation, to the federal bureau of investigation, or to both 4217
bureaus. The commission shall assume the cost of obtaining the 4218
fingerprint cards. 4219

       The director shall pay to each agency supplying criminal 4220
records for each investigation a reasonable fee, as determined by 4221
the agency. 4222

       The commission may adopt uniform rules specifying time 4223
periods after which the persons described in divisions (C)(1) to 4224
(5) and (D)(1) to (4) of this section may be issued a license and 4225
establishing requirements for those persons to seek a court order 4226
to have records sealed in accordance with law.4227

       (G)(1) Each applicant for a lottery sales agent license shall 4228
do both of the following:4229

       (a) Pay fees to the state lottery commission, if required by 4230
rule adopted by the director under Chapter 119. of the Revised 4231
Code and the controlling board approves the fees;4232

       (b) Prior to approval of the application, obtain a surety 4233
bond in an amount the director determines by rule adopted under 4234
Chapter 119. of the Revised Code or, alternatively, with the 4235
director's approval, deposit the same amount into a dedicated 4236
account for the benefit of the state lottery. The director also 4237
may approve the obtaining of a surety bond to cover part of the 4238
amount required, together with a dedicated account deposit to 4239
cover the remainder of the amount required. The director also may 4240
establish an alternative program or policy, with the approval of 4241
the commission by rule adopted under Chapter 119. of the Revised 4242
Code, that otherwise ensures the lottery's financial interests are 4243
adequately protected. If such an alternative program or policy is 4244
established, an applicant or lottery sales agent, subject to the 4245
director's approval, may be permitted to participate in the 4246
program or proceed under that policy in lieu of providing a surety 4247
bond or dedicated amount.4248

       A surety bond may be with any company that complies with the 4249
bonding and surety laws of this state and the requirements 4250
established by rules of the commission pursuant to this chapter. A 4251
dedicated account deposit shall be conducted in accordance with 4252
policies and procedures the director establishes.4253

       A surety bond, dedicated account, other established program 4254
or policy, or bothany combination of these resources, as 4255
applicable, may be used to pay for the lottery sales agent's 4256
failure to make prompt and accurate payments for lottery ticket 4257
sales, for missing or stolen lottery tickets, for damage to 4258
equipment or materials issued to the lottery sales agent, or to 4259
pay for expenses the commission incurs in connection with the 4260
lottery sales agent's license.4261

       (2) A lottery sales agent license is effective for at least4262
one year, but not more than three years.4263

       A licensed lottery sales agent, on or before the date 4264
established by the director, shall renew the agent's license and 4265
provide at that time evidence to the director that the surety 4266
bond, dedicated account deposit, or both, required under division 4267
(G)(1)(b) of this section has been renewed or is active, whichever 4268
applies. 4269

        Before the commission renews a lottery sales agent license, 4270
the lottery sales agent shall submit a renewal fee to the 4271
commission, if one is required by rule adopted by the director 4272
under Chapter 119. of the Revised Code and the controlling board 4273
approves the renewal fee. The renewal fee shall not exceed the 4274
actual cost of administering the license renewal and processing 4275
changes reflected in the renewal application. The renewal of the 4276
license is effective for up toat least one year, but not more 4277
than three years.4278

       (3) A lottery sales agent license shall be complete, 4279
accurate, and current at all times during the term of the license. 4280
Any changes to an original license application or a renewal 4281
application may subject the applicant or lottery sales agent, as 4282
applicable, to paying an administrative fee that shall be in an 4283
amount that the director determines by rule adopted under Chapter 4284
119. of the Revised Code, that the controlling board approves, and 4285
that shall not exceed the actual cost of administering and 4286
processing the changes to an application.4287

       (4) The relationship between the commission and a lottery 4288
sales agent is one of trust. A lottery sales agent collects funds 4289
on behalf of the commission through the sale of lottery tickets 4290
for which the agent receives a compensation.4291

       (H) Pending a final resolution of any question arising under 4292
this section, the director of the state lottery commission may 4293
issue a temporary lottery sales agent license, subject to the 4294
terms and conditions the director considers appropriate.4295

       (I) If a lottery sales agent's rental payments for the 4296
lottery sales agent's premises are determined, in whole or in 4297
part, by the amount of retail sales the lottery sales agent makes, 4298
and if the rental agreement does not expressly provide that the 4299
amount of those retail sales includes the amounts the lottery 4300
sales agent receives from lottery ticket sales, only the amounts 4301
the lottery sales agent receives as compensation from the state 4302
lottery commission for selling lottery tickets shall be considered 4303
to be amounts the lottery sales agent receives from the retail 4304
sales the lottery sales agent makes, for the purpose of computing 4305
the lottery sales agent's rental payments.4306

       Sec. 3770.07.  (A)(1) Except as provided in division (A)(2) 4307
of this section, lottery prize awards shall be claimed by the 4308
holder of the winning lottery ticketproduct, or by the executor 4309
or administrator, or the trustee of a trust, of the estate of a 4310
deceased holder of a winning lottery ticketproduct, in a manner 4311
to be determined by the state lottery commission, within one 4312
hundred eighty days after the date on which the prize award was 4313
announced if the lottery game is an online game, and within one 4314
hundred eighty days after the close of the game if the lottery 4315
game is an instant game.4316

       NoAny lottery prize award with a value that meets or exceeds 4317
five hundred ninety-nine dollarsthe reportable winnings amounts 4318
set by 26 U.S.C. 6041, or a subsequent analogous section of the 4319
Internal Revenue Code, shall not be claimed by or paid to any 4320
person, as defined in section 1.59 of the Revised Code or as 4321
defined by rule or order of the state lottery commission, until 4322
the name, address, and social security number of each beneficial 4323
owner of the prize award are disclosed todocumented for the 4324
commission. Except when a beneficial owner otherwise consents in 4325
writing, in the case of a claim for a lottery prize award made by 4326
one or more beneficial owners using a trust, the name, address, 4327
and social security number of each such beneficial owner in the 4328
commission's records as a result of such a disclosure are 4329
confidential and shall not be subject to inspection or copying 4330
under section 149.43 of the Revised Code as a public record.4331

        Except as otherwise provided in division (A)(1) of this 4332
section or as otherwise provided by law, the name and address of 4333
any individual claiming a lottery prize award are subject to 4334
inspection or copying under section 149.43 of the Revised Code as 4335
a public record.4336

       (2) An eligible person serving on active military duty in any 4337
branch of the United States armed forces during a war or national 4338
emergency declared in accordance with federal law may submit a 4339
delayed claim for a lottery prize award. The eligible person shall 4340
do so by notifying the state lottery commission about the claim 4341
not later than the five hundred fortieth day after the date on 4342
which the prize award was announced if the lottery game is an 4343
online game or after the date on which the lottery game closed if 4344
the lottery game is an instant game.4345

       (3) If no valid claim to a lottery prize award is made within 4346
the prescribed period, the prize money, the cost of goods and 4347
services awarded as prizes, or, if goods or services awarded as 4348
prizes are resold by the state lottery commission, the proceeds 4349
from their sale shall be returned to the state lottery fund and 4350
distributed in accordance with section 3770.06 of the Revised 4351
Code.4352

       (4) The state lottery commission may share with other 4353
governmental agencies the name, address, and social security 4354
number of a beneficial owner disclosed to the commission under 4355
division (A)(1) of this section, as authorized under sections 4356
3770.071 and 3770.073 of the Revised Code. Any shared information 4357
as disclosed pursuant to those sections that is made confidential 4358
by division (A)(1) of this section remains confidential and shall 4359
not be subject to inspection or copying under section 149.43 of 4360
the Revised Code as a public record unless the applicable 4361
beneficial owner otherwise provides written consent.4362

       (5) As used in this division:4363

       (a) "Eligible person" means a person who is entitled to a 4364
lottery prize award and who falls into either of the following 4365
categories:4366

       (i) While on active military duty in this state, the person, 4367
as the result of a war or national emergency declared in 4368
accordance with federal law, is transferred out of this state 4369
before the one hundred eightieth day after the date on which the 4370
winner of the lottery prize award is selected.4371

       (ii) While serving in the reserve forces in this state, the 4372
person, as the result of a war or national emergency declared in 4373
accordance with federal law, is placed on active military duty and 4374
is transferred out of this state before the expiration of the one 4375
hundred eightieth day after the date on which the prize drawing 4376
occurs for an online game or before the expiration of the one 4377
hundred eightieth day following the close of an instant game as 4378
determined by the commission.4379

       (b) "Active military duty" means that a person is covered by 4380
the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50 4381
U.S.C. 501 et seq., as amended, or the "Uniformed Services 4382
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149, 4383
38 U.S.C. 4301 et seq., as amended.4384

       (c) "Each beneficial owner" means the ultimate recipient or, 4385
if there is more than one, each ultimate recipient of a lottery 4386
prize award.4387

       (B) If a prize winner, as defined in section 3770.10 of the 4388
Revised Code, is under eighteen years of age, or is under some 4389
other legal disability, and the prize money or the cost of goods 4390
or services awarded as a prize exceeds one thousand dollars, the 4391
director of the state lottery commission shall order that payment 4392
be made to the order of the legal guardian of that prize winner. 4393
If the amount of the prize money or the cost of goods or services 4394
awarded as a prize is one thousand dollars or less, the director 4395
may order that payment be made to the order of the adult member, 4396
if any, of that prize winner's family legally responsible for the 4397
care of that prize winner.4398

       (C) No right of any prize winner, as defined in section 4399
3770.10 of the Revised Code, to a prize award shall be the subject 4400
of a security interest or used as collateral.4401

       (D)(1) No right of any prize winner, as defined in section 4402
3770.10 of the Revised Code, to a prize award shall be assignable 4403
except as follows: when the payment is to be made to the executor 4404
or administrator, or the trustee of a trust, of the estate of a 4405
winning ticket holderprize winner; when the award of a prize is 4406
disputed, any person may be awarded a prize award to which another 4407
has claimed title, pursuant to the order of a court of competent 4408
jurisdiction; when a person is awarded a prize award to which 4409
another has claimed title, pursuant to the order of a federal 4410
bankruptcy court under Title 11 of the United States Code; or as 4411
provided in sections 3770.10 to 3770.14 of the Revised Code.4412

       (2)(a) No right of any prize winner, as defined in section 4413
3770.10 of the Revised Code, to a prize award with a remaining 4414
unpaid balance of less than one hundred thousand dollars shall be 4415
subject to garnishment, attachment, execution, withholding, or 4416
deduction except as provided in sections 3119.80, 3119.81, 4417
3121.02, 3121.03, and 3123.06 of the Revised Code or when the 4418
director is to make a payment pursuant to section 3770.071 or 4419
3770.073 of the Revised Code.4420

        (b) No right of any prize winner, as defined in section 4421
3770.10 of the Revised Code, to a prize award with an unpaid 4422
balance of one hundred thousand dollars or more shall be subject 4423
to garnishment, attachment, execution, withholding, or deduction 4424
except as follows: as provided in sections 3119.80, 3119.81, 4425
3121.02, 3121.03, and 3123.06 of the Revised Code; when the 4426
director is to make a payment pursuant to section 3770.071 or 4427
3770.073 of the Revised Code; or pursuant to the order of a court 4428
of competent jurisdiction located in this state in a proceeding in 4429
which the state lottery commission is a named party, in which case 4430
the garnishment, attachment, execution, withholding, or deduction 4431
pursuant to the order shall be subordinate to any payments to be 4432
made pursuant to section 3119.80, 3119.81, 3121.02, 3121.03, 4433
3123.06, 3770.071, or 3770.073 of the Revised Code.4434

       (3) The state lottery commission may adopt and amend rules 4435
pursuant to Chapter 119. of the Revised Code as necessary to 4436
implement division (D) of this section, to provide for payments 4437
from prize awards subject to garnishment, attachment, execution, 4438
withholding, or deduction, and to comply with any applicable 4439
requirements of federal law.4440

        (4) Upon making payments from a prize award as required by 4441
division (D) of this section, the director and the state lottery 4442
commission are discharged from all further liability for those 4443
payments, whether they are made to an executor, administrator, 4444
trustee, judgment creditor, or another person, or to the prize 4445
winner, as defined in section 3770.10 of the Revised Code.4446

       (5) The state lottery commission shall adopt rules pursuant 4447
to section 3770.03 of the Revised Code concerning the payment of 4448
prize awards upon the death of a prize winner, as defined in 4449
section 3770.10 of the Revised Code. Upon the death of a prize 4450
winner, the remainder of the prize winner's prize award, to the 4451
extent it is not subject to a transfer agreement under sections 4452
3770.10 to 3770.14 of the Revised Code, may be paid to the 4453
executor, administrator, or trustee in the form of a discounted 4454
lump sum cash settlement.4455

       (E) No lottery prize award shall be awarded to or for any 4456
officer or employee of the state lottery commission, any officer 4457
or employee of the auditor of state actively auditing,4458
coordinating and, or certifying commission drawings, or any blood 4459
relative or spouse of such an officer or employee of the 4460
commission or auditor of state living as a member of the officer's 4461
or employee's household, nor shall any such officer, employee, 4462
blood relative, or spouse attempt to claim a lottery prize award.4463

       (F) The director may prohibit vendors to the state lottery 4464
commission and their employees from being awarded a lottery prize 4465
award.4466

       (G) Upon the payment of prize awards pursuant to a provision 4467
of this section, other than a provision of division (D) of this 4468
section, the director and the state lottery commission are 4469
discharged from all further liability for their payment. 4470
Installment payments of lottery prize awards shall be paid by 4471
official check or warrant, and they shall be sent by mail delivery 4472
to the prize winner's address within the United States or by 4473
electronic funds transfer to an established bank account located 4474
within the United States, or the prize winner may pick them up at 4475
an office of the commission.4476

       Sec. 3770.071.  (A)(1) If the amount of the prize money or 4477
the cost of goods or services awarded as a lottery prize award is 4478
six hundred dollars or moremeets or exceeds the reportable 4479
winnings amounts set by 26 U.S.C. 6041, or a subsequent analogous 4480
section of the Internal Revenue Code, the director of the state 4481
lottery commission or the director's designee shall require the 4482
person entitled to the prize award to affirm in writing, under 4483
oath, or by electronic means, whether or not the person is in 4484
default under a support order. The director or the director's 4485
designee also may take any additional appropriate steps to 4486
determine if the person entitled to the prize award is in default 4487
under a support order. If the person entitled to the prize award 4488
affirms that the person is in default under a support order, or if 4489
the director or the director's designee determines that the person 4490
is in default under a support order, the director or the 4491
director's designee shall temporarily withhold payment of the 4492
prize award and notify the child support enforcement agency that 4493
administers the support order that the person is entitled to a 4494
prize award, of the amount of the prize award, and, if the prize 4495
award is to be paid in annual installments, of the number of 4496
installments.4497

        (2) Upon receipt of the notice from the director or the 4498
director's designee, the child support enforcement agency shall 4499
conduct an investigation to determine whether the person entitled 4500
to the lottery prize award is subject to a final and enforceable 4501
determination of default made under sections 3123.01 to 3123.07 of 4502
the Revised Code. If the agency determines that the person is so 4503
subject, it shall issue an intercept directive as described in 4504
section 3123.89 of the Revised Code to the director at lottery 4505
commission headquarters requiring the director or the director's 4506
designee to deduct from any unpaid prize award or any annual 4507
installment payment of an unpaid prize award, a specified amount 4508
for support in satisfaction of the support order under which the 4509
person is in default. To the extent possible, the amount specified 4510
to be deducted under the intercept directive shall satisfy the 4511
amount ordered for support in the support order under which the 4512
person is in default.4513

       A child support enforcement agency shall issue an intercept 4514
directive within thirty days from the date the director or the 4515
director's designee notifies the agency under division (A)(1) of 4516
this section. Within thirty days after the date on which the 4517
agency issues the intercept directive, the director or the 4518
director's designee shall pay the amount specified in the 4519
intercept directive to the office of child support in the 4520
department of job and family services. But, if the prize award is 4521
to be paid in annual installments, the director or the director's 4522
designee, on the date the next installment payment is due, shall 4523
deduct the amount specified in the intercept directive from that 4524
installment and, if necessary, any subsequent annual installments, 4525
at the time those installments become due and owing to the prize 4526
winner, and pay the amount to the office of child support.4527

       (B) As used in this section:4528

       (1) "Support order" has the same meaning as in section 4529
3119.01 of the Revised Code.4530

       (2) "Default" has the same meaning as in section 3121.01 of 4531
the Revised Code.4532

       (C) No person shall knowingly make a false affirmation or 4533
oath required by division (A) of this section.4534

       Sec. 3770.21. (A) As used in this section:4535

       (1) "Video lottery terminal" means any electronic device 4536
approved by the state lottery commission that provides immediate 4537
prize determinations for participants on an electronic display.4538

       (2) "Video lottery terminal promotional gaming credit" means 4539
a video lottery terminal game credit, discount, or other similar 4540
item issued to a patron to enable the placement of, or increase 4541
in, a wager at a video lottery terminal.4542

       (3) "Video lottery terminal income" means credits played 4543
minus video lottery terminal promotional gaming credits and the 4544
value of video lottery terminal promotional gaming credits awarded 4545
that can be redeemed for cash or other designated prizes as a 4546
result of a video lottery winning game outcome.4547

       (B) The state lottery commission shall include, in 4548
conjunction with the state racing commission, in any rules adopted 4549
concerning video lottery terminals, the level of minimum 4550
investments that must be made by video lottery terminal licensees 4551
in the buildings, fixtures, equipment, facilities-related 4552
preparation, and grounds at the facilities, including temporary 4553
facilities, in which the terminals will be located, along with any 4554
standards and timetables for such investments.4555

       (C) Racetrack operators and management companies that are a 4556
licensed lottery sales agent may provide video lottery terminal 4557
promotional gaming credits to patrons for video lottery terminal 4558
gaming. Video lottery terminal promotional gaming credits shall be 4559
subject to oversight by the commission. The commission shall adopt 4560
rules for video lottery terminal promotional gaming credits. The 4561
rules shall exclude video lottery terminal promotional gaming 4562
credits in the calculation of video lottery terminal income or any 4563
payments or amounts due to the state or to the state lottery 4564
commission.4565

       (D) Video lottery terminal licensees shall develop internal 4566
guidelines and controls for the purpose of giving minority 4567
business enterprises the ability to compete for the awarding of 4568
contracts to provide goods and services to those licensees.4569

       (E) No license or excise tax or fee not in effect on the 4570
effective date of this section shall be assessed upon or collected 4571
from a video lottery terminal licensee by any county, township, 4572
municipal corporation, school district, or other political 4573
subdivision of the state that has authority to assess or collect a 4574
tax or fee by reason of the video lottery terminal related conduct 4575
authorized by section 3770.03 of the Revised Code. This division 4576
does not prohibit the imposition of taxes under Chapter 718. or 4577
3769. of the Revised Code.4578

       (D) The supreme court shall have exclusive, original 4579
jurisdiction over any claim(F) Any action asserting that this 4580
section or section 3770.03 of the Revised Code or any portion of 4581
those sections or any rule adopted under those sections violates 4582
any provision of the Ohio Constitution, any claim asserting that 4583
any action taken by the governor or the lottery commission 4584
pursuant to those sections violates any provision of the Ohio 4585
Constitution or any provision of the Revised Code, or any claim 4586
asserting that any portion of this section violates any provision 4587
of the Ohio Constitution. If any claim over which the supreme 4588
court is granted exclusive, original jurisdiction by this division 4589
is filed in any lower court, the claim shall be dismissed by the 4590
court on the ground that the court lacks jurisdiction to review it4591
shall be brought in the court of common pleas of Franklin county.4592

       (E)(G) Should any portion of this section or of section 4593
3770.03 of the Revised Code be found to be unenforceable or 4594
invalid, it shall be severed and the remaining portions remain in 4595
full force and effect.4596

       Sec. 3770.22.  (A) Any information concerning the following 4597
that is submitted, collected, or gathered as part of an 4598
application to the state lottery commission for a video lottery 4599
related license under this chapter is confidential and not subject 4600
to disclosure by a state agency or political subdivision as a 4601
public record under section 149.43 of the Revised Code:4602

       (1) A dependent of an applicant;4603

       (2) The social security number, passport number, or federal 4604
tax identification number of an applicant or the spouse of an 4605
applicant;4606

       (3) The home address and telephone number of an applicant or 4607
the spouse or dependent of an applicant;4608

       (4) An applicant's birth certificate;4609

       (5) The driver's license number of an applicant or the 4610
applicant's spouse;4611

       (6) The name or address of a previous spouse of the 4612
applicant;4613

       (7) The date of birth of the applicant and the spouse of an 4614
applicant;4615

       (8) The place of birth of the applicant and the spouse of an 4616
applicant;4617

       (9) The personal financial information and records of an 4618
applicant or of an employee or the spouse or dependent of an 4619
applicant, including tax returns and information, and records of 4620
criminal proceedings;4621

       (10) Any information concerning a victim of domestic 4622
violence, sexual assault, or stalking;4623

       (11) The electronic mail address of the spouse or family 4624
member of the applicant;4625

       (12) Any trade secret, medical records, and patents or 4626
exclusive licenses;4627

       (13) Security information, including risk prevention plans, 4628
detection and countermeasures, location of count rooms or other 4629
money storage areas, emergency management plans, security and 4630
surveillance plans, equipment and usage protocols, and theft and 4631
fraud prevention plans and countermeasures.4632

       (B) The individual's name, the individual's place of 4633
employment, the individual's job title, and the individual's 4634
gaming experience that is provided for an individual who holds, 4635
held, or has applied for a video lottery related license under 4636
this chapter is not confidential. The reason for denial or 4637
revocation of a video lottery related license or for disciplinary 4638
action against the individual is not confidential.4639

       (C) An individual who holds, held, or has applied for a video 4640
lottery related license under this chapter may waive the 4641
confidentiality requirements of division (A) of this section.4642

       (D) Confidential information received by the commission from 4643
another jurisdiction relating to a person who holds, held, or has 4644
applied for a license under this chapter is confidential and not 4645
subject to disclosure as a public record under section 149.43 of 4646
the Revised Code. The commission may share the information 4647
referenced in this division with, or disclose the information to, 4648
the inspector general, any appropriate prosecuting authority, any 4649
law enforcement agency, or any other appropriate governmental or 4650
licensing agency, if the agency that receives the information 4651
complies with the same requirements regarding confidentiality as 4652
those with which the commission must comply.4653

       Sec. 3772.01. As used in this chapter:4654

       (A) "Applicant" means any person who applies to the 4655
commission for a license under this chapter.4656

       (B) "Casino control commission fund" means the casino control 4657
commission fund described in Section 6(C)(3)(d) of Article XV, 4658
Ohio Constitution, the money in which shall be used to fund the 4659
commission and its related affairs.4660

       (C) "Casino facility" means a casino facility as defined in 4661
Section 6(C)(9) of Article XV, Ohio Constitution.4662

       (D) "Casino game" means any slot machine or table game as 4663
defined in this chapter.4664

       (E) "Casino gaming" means any type of slot machine or table 4665
game wagering, using money, casino credit, or any representative 4666
of value, authorized in any of the states of Indiana, Michigan, 4667
Pennsylvania, and West Virginia as of January 1, 2009, and 4668
includes slot machine and table game wagering subsequently 4669
authorized by, but shall not be limited by, subsequent 4670
restrictions placed on such wagering in such states. "Casino 4671
gaming" does not include bingo, as authorized in Section 6 of 4672
Article XV, Ohio Constitution and conducted as of January 1, 2009, 4673
or horse racing where the pari-mutuel system of wagering is 4674
conducted, as authorized under the laws of this state as of 4675
January 1, 2009.4676

       (E)(F) "Casino gaming employee" means any employee of a 4677
casino operator or management company, but not a key employee, and 4678
as further defined in section 3772.131 of the Revised Code.4679

       (F)(G) "Casino operator" means any person, trust, 4680
corporation, partnership, limited partnership, association, 4681
limited liability company, or other business enterprise that 4682
directly or indirectly holds an ownership or leasehold interest in 4683
a casino facility. "Casino operator" does not include an agency of 4684
the state, any political subdivision of the state, any person, 4685
trust, corporation, partnership, limited partnership, association, 4686
limited liability company, or other business enterprise that may 4687
have an interest in a casino facility, but who is legally or 4688
contractually restricted from conducting casino gaming.4689

       (G)(H) "Central system" means a computer system that provides 4690
the following functions related to casino gaming equipment used in 4691
connection with casino gaming authorized under this chapter: 4692
security, auditing, data and information retrieval, and other 4693
purposes deemed necessary and authorized by the commission.4694

       (H)(I) "Cheat" means to alter the result of a casino game, 4695
the element of chance, the operation of a machine used in a casino 4696
game, or the method of selection of criteria that determines (a) 4697
the result of the casino game, (b) the amount or frequency of 4698
payment in a casino game, (c) the value of a wagering instrument, 4699
or (d) the value of a wagering credit.4700

       (J) "Commission" means the Ohio casino control commission.4701

       (I)(K) "Gaming agent" means a peace officer employed by the 4702
commission that is vested with duties to enforce this chapter and 4703
conduct other investigations into the conduct of the casino gaming 4704
and the maintenance of the equipment that the commission considers 4705
necessary and proper and is in compliance with section 109.77 of 4706
the Revised Code.4707

       (J)(L) "Gaming-related vendor" means any individual, 4708
partnership, corporation, association, trust, or any other group 4709
of individuals, however organized, who supplies gaming-related 4710
equipment, goods, or services to a casino operator or management 4711
company, that are directly related to or affect casino gaming 4712
authorized under this chapter, including, but not limited to, the 4713
manufacture, sale, distribution, or repair of slot machines and 4714
table game equipment.4715

       (K)(M) "Holding company" means any corporation, firm, 4716
partnership, limited partnership, limited liability company, 4717
trust, or other form of business organization not a natural person 4718
which directly or indirectly owns, hasdoes any of the following:4719

       (1) Has the power or right to control, or holds with power to 4720
vote, any part of an applicant,a casino operator, management 4721
company, or gaming-related vendor license applicant or licensee;4722

       (2) Holds an ownership interest of five per cent or more, as 4723
determined by the commission, in a casino operator, management 4724
company, or gaming-related vendor license applicant or licensee; 4725

       (3) Holds voting rights with the power to vote five per cent 4726
or more of the outstanding voting rights of a casino operator, 4727
management company, or gaming-related vendor applicant or 4728
licensee.4729

       (L)(N) "Initial investment" includes costs related to 4730
demolition, engineering, architecture, design, site preparation, 4731
construction, infrastructure improvements, land acquisition, 4732
fixtures and equipment, insurance related to construction, and 4733
leasehold improvements.4734

       (M)(O) "Institutional investor" means any of the following 4735
entities owning onemore than five per cent or less, or a 4736
percentage between one and ten per cent as approved by the 4737
commission through a waiver on a case-by-case basis, but less than 4738
fifteen per cent, of an ownership interest in a casino facility, 4739
casino operator, management company, or holding company: a 4740
corporation, bank, insurance company, pension fund or pension fund 4741
trust, retirement fund, including funds administered by a public 4742
agency, employees' profit-sharing fund or employees' 4743
profit-sharing trust, any association engaged, as a substantial 4744
part of its business or operations, in purchasing or holding 4745
securities, including a hedge fund, mutual fund, or private equity 4746
fund, or any trust in respect of which a bank is trustee or 4747
cotrustee, investment company registered under the "Investment 4748
Company Act of 1940," 15 U.S.C. 80a-1 et seq., collective 4749
investment trust organized by banks under Part Nine of the Rules 4750
of the Comptroller of the Currency, closed-end investment trust, 4751
chartered or licensed life insurance company or property and 4752
casualty insurance company, investment advisor registered under 4753
the "Investment Advisors Act of 1940," 15 U.S.C. 80 b-1 et seq., 4754
and such other persons as the commission may reasonably determine 4755
to qualify as an institutional investor for reasons consistent 4756
with this chapter, and that does not exercise control over the 4757
affairs of a licensee and its ownership interest in a licensee is 4758
for investment purposes only, as set forth in division (E) of 4759
section 3772.10 of the Revised Code.4760

       (N)(P) "Key employee" means any executive, employee, or agent 4761
of a casino operator or management company licensee having the 4762
power to exercise significant influence over decisions concerning 4763
any part of the operation of such licensee, including:4764

       (1) An officer, director, trustee, or partner of a person 4765
that has applied for or holds a casino operator, management 4766
company, or gaming-related vendor license or of a holding company 4767
that has control of a person that has applied for or holds a 4768
casino operator, management company, or gaming-related vendor 4769
license;4770

       (2) A person that holds a direct or indirect ownership 4771
interest of more than one per cent in a person that has applied 4772
for or holds a casino operator, management company, or 4773
gaming-related vendor license or holding company that has control 4774
of a person that has applied for or holds a casino operator, 4775
management company, or gaming-related vendor license;4776

       (3) A managerial employee of a person that has applied for or 4777
holds a casino operator or gaming-related vendor license in Ohio, 4778
or a managerial employee of a holding company that has control of 4779
a person that has applied for or holds a casino operator or 4780
gaming-related vendor license in Ohio, who performs the function 4781
of principal executive officer, principal operating officer, 4782
principal accounting officer, or an equivalent officer or other 4783
person the commission determines to have the power to exercise 4784
significant influence over decisions concerning any part of the 4785
operation of such licensee.4786

       The commission shall determine whether an individual whose 4787
duties or status varies from those described in this division also 4788
is considered a key employee.4789

       (O)(Q) "Licensed casino operator" means a casino operator 4790
that has been issued a license by the commission and that has been 4791
certified annually by the commission to have paid all applicable 4792
fees, taxes, and debts to the state.4793

       (P)(R) "Majority ownership interest" in a license or in a 4794
casino facility, as the case may be, means ownership of more than 4795
fifty per cent of such license or casino facility, as the case may 4796
be. For purposes of the foregoing, whether a majority ownership 4797
interest is held in a license or in a casino facility, as the case 4798
may be, shall be determined under the rules for constructive 4799
ownership of stock provided in Treas. Reg. 1.409A-3(i)(5)(iii) as 4800
in effect on January 1, 2009.4801

       (Q)(S) "Management company" means an organization retained by 4802
a casino operator to manage a casino facility and provide services 4803
such as accounting, general administration, maintenance, 4804
recruitment, and other operational services.4805

       (R)(T) "Ohio law enforcement training fund" means the state 4806
law enforcement training fund described in Section 6(C)(3)(f) of 4807
Article XV, Ohio Constitution, the money in which shall be used to 4808
enhance public safety by providing additional training 4809
opportunities to the law enforcement community.4810

       (S)(U) "Person" includes, but is not limited to, an 4811
individual or a combination of individuals; a sole proprietorship, 4812
a firm, a company, a joint venture, a partnership of any type, a 4813
joint-stock company, a corporation of any type, a corporate 4814
subsidiary of any type, a limited liability company, a business 4815
trust, or any other business entity or organization; an assignee; 4816
a receiver; a trustee in bankruptcy; an unincorporated 4817
association, club, society, or other unincorporated entity or 4818
organization; entities that are disregarded for federal income tax 4819
purposes; and any other nongovernmental, artificial, legal entity 4820
that is capable of engaging in business.4821

       (T)(V) "Problem casino gambling and addictions fund" means 4822
the state problem gambling and addictions fund described in 4823
Section 6(C)(3)(g) of Article XV, Ohio Constitution, the money in 4824
which shall be used for treatment of problem gambling and 4825
substance abuse, and for related research.4826

       (U)(W) "Promotional gaming credit" means a slot machine or 4827
table game credit, discount, or other similar item issued to a 4828
patron to enable the placement of, or increase in, a wager at a 4829
slot machine or table game.4830

       (V)(X) "Slot machine" means any mechanical, electrical, or 4831
other device or machine which, upon insertion of a coin, token, 4832
ticket, or similar object, or upon payment of any consideration, 4833
is available to play or operate, the play or operation of which, 4834
whether by reason of the skill of the operator or application of 4835
the element of chance, or both, makes individual prize 4836
determinations for individual participants in cash, premiums, 4837
merchandise, tokens, or any thing of value, whether the payoff is 4838
made automatically from the machine or in any other manner, but 4839
does not include any device that is a skill-based amusement 4840
machine, as defined in section 2915.01 of the Revised Code.4841

       (W)(Y) "Table game" means any game played with cards, dice, 4842
or any mechanical, electromechanical, or electronic device or 4843
machine for money, casino credit, or any representative of value. 4844
"Table game" does not include slot machines.4845

       (X)(Z) "Upfront license" means the first plenary license 4846
issued to a casino operator.4847

       (Y)(AA) "Voluntary exclusion program" means a program 4848
provided by the commission that allows persons to voluntarily 4849
exclude themselves from the gaming areas of facilities under the 4850
jurisdiction of the commission by placing their name on a 4851
voluntary exclusion list and following the procedures set forth by 4852
the commission.4853

       Sec. 3772.03. (A) To ensure the integrity of casino gaming, 4854
the commission shall have authority to complete the functions of 4855
licensing, regulating, investigating, and penalizing casino 4856
operators, management companies, holding companies, key employees, 4857
casino gaming employees, and gaming-related vendors. The 4858
commission also shall have jurisdiction over all persons 4859
participating in casino gaming authorized by Section 6(C) of 4860
Article XV, Ohio Constitution, and this chapter.4861

       (B) All rules adopted by the commission under this chapter 4862
shall be adopted under procedures established in Chapter 119. of 4863
the Revised Code. The commission may contract for the services of 4864
experts and consultants to assist the commission in carrying out 4865
its duties under this section.4866

       (C) Within six months of the effective date of this section4867
September 10, 2010, the commission shall adopt initial rules as 4868
are necessary for completing the functions stated in division (A) 4869
of this section and for addressing the subjects enumerated in 4870
division (D) of this section.4871

       (D) The commission shall adopt, and as advisable and 4872
necessary shall amend or repeal, rules that include all of the 4873
following:4874

       (1) The prevention of practices detrimental to the public 4875
interest;4876

       (2) Prescribing the method of applying, and the form of 4877
application, that an applicant for a license under this chapter 4878
must follow as otherwise described in this chapter;4879

       (3) Prescribing the information to be furnished by an 4880
applicant or licensee as described in section 3772.11 of the 4881
Revised Code;4882

       (4) Describing the certification standards and duties of an 4883
independent testing laboratory certified under section 3772.31 of 4884
the Revised Code and the relationship between the commission, the 4885
laboratory, the gaming-related vendor, and the casino operator;4886

        (5) The minimum amount of insurance that must be maintained 4887
by a casino operator, management company, holding company, or 4888
gaming-related vendor;4889

       (6) The approval process for a significant change in 4890
ownership or transfer of control of a licensee as provided in 4891
section 3772.091 of the Revised Code;4892

       (7) The design of gaming supplies, devices, and equipment to 4893
be distributed by gaming-related vendors;4894

       (8) Identifying the casino gaming that is permitted, 4895
identifying the gaming supplies, devices, and equipment, that are 4896
permitted, defining the area in which the permitted casino gaming 4897
may be conducted, and specifying the method of operation according 4898
to which the permitted casino gaming is to be conducted as 4899
provided in section 3772.20 of the Revised Code, and requiring 4900
gaming devices and equipment to meet the standards of this state;4901

       (9) Tournament play in any casino facility;4902

       (10) Establishing and implementing a voluntary exclusion 4903
program that provides all of the following:4904

       (a) Except as provided by commission rule, a person who 4905
participates in the program shall agree to refrain from entering a 4906
casino facility.4907

       (b) The name of a person participating in the program shall 4908
be included on a list of persons excluded from all casino 4909
facilities.4910

       (c) Except as provided by commission rule, no person who 4911
participates in the program shall petition the commission for 4912
admittance into a casino facility.4913

       (d) The list of persons participating in the program and the 4914
personal information of those persons shall be confidential and 4915
shall only be disseminated by the commission to a casino operator 4916
and the agents and employees of the casino operator for purposes 4917
of enforcement and to other entities, upon request of the 4918
participant and agreement by the commission.4919

       (e) A casino operator shall make all reasonable attempts as 4920
determined by the commission to cease all direct marketing efforts 4921
to a person participating in the program.4922

       (f) A casino operator shall not cash the check of a person 4923
participating in the program or extend credit to the person in any 4924
manner. However, the program shall not exclude a casino operator 4925
from seeking the payment of a debt accrued by a person before 4926
participating in the program.4927

       (g) Any and all locations at which a person may register as a 4928
participant in the program shall be published.4929

       (11) Requiring the commission to adopt standards regarding 4930
the marketing materials of a licensed casino operator, including 4931
allowing the commission to prohibit marketing materials that are 4932
contrary to the adopted standards;4933

       (12) Requiring that the records, including financial 4934
statements, of any casino operator, management company, holding 4935
company, and gaming-related vendor be maintained in the manner 4936
prescribed by the commission and made available for inspection 4937
upon demand by the commission, but shall be subject to section 4938
3772.16 of the Revised Code;4939

       (13) Permitting a licensed casino operator, management 4940
company, key employee, or casino gaming employee to question a 4941
person suspected of violating this chapter;4942

       (14) The chips, tokens, tickets, electronic cards, or similar 4943
objects that may be purchased by means of an agreement under which 4944
credit is extended to a wagerer by a casino operator;4945

       (15) Establishing standards for provisional key employee 4946
licenses for a person who is required to be licensed as a key 4947
employee and is in exigent circumstances and standards for 4948
provisional licenses for casino gaming employees who submit 4949
complete applications and are compliant under an instant 4950
background check. A provisional license shall be valid not longer 4951
than three months. A provisional license may be renewed one time, 4952
at the commission's discretion, for an additional three months. In 4953
establishing standards with regard to instant background checks 4954
the commission shall take notice of criminal records checks as 4955
they are conducted under section 311.41 of the Revised Code using 4956
electronic fingerprint reading devices.4957

       (16) Establishing approval procedures for third-party 4958
engineering or accounting firms, as described in section 3772.09 4959
of the Revised Code;4960

       (17) Prescribing the manner in which winnings, compensation 4961
from casino gaming, and gross revenue must be computed and 4962
reported by a licensee as described in Chapter 5753. of the 4963
Revised Code;4964

       (18) Prescribing conditions under which a licensee's license 4965
may be suspended or revoked as described in section 3772.04 of the 4966
Revised Code;4967

       (19) Prescribing the manner and procedure of all hearings to 4968
be conducted by the commission or by any hearing examiner;4969

       (20) Prescribing technical standards and requirements that 4970
are to be met by security and surveillance equipment that is used 4971
at and standards and requirements to be met by personnel who are 4972
employed at casino facilities, and standards and requirements for 4973
the provision of security at and surveillance of casino 4974
facilities;4975

       (21) Prescribing requirements for a casino operator to 4976
provide unarmed security services at a casino facility by licensed 4977
casino employees, and the training that shall be completed by 4978
these employees;4979

       (22) Prescribing standards according to which casino 4980
operators shall keep accounts and standards according to which 4981
casino accounts shall be audited, and establish means of assisting 4982
the tax commissioner in levying and collecting the gross casino 4983
revenue tax levied under section 5753.02 of the Revised Code;4984

       (23) Defining penalties for violation of commission rules and 4985
a process for imposing such penalties subject to the review of the 4986
joint committee on gaming and wagering;4987

       (24) Establishing standards for decertifying contractors that 4988
violate statutes or rules of this state or the federal government;4989

       (25) Establishing standards for the repair of casino gaming 4990
equipment;4991

       (26) Establishing procedures to ensure that casino operators, 4992
management companies, and holding companies are compliant with the 4993
compulsive and problem gambling plan submitted under section 4994
3772.18 of the Revised Code;4995

       (27) Providing for any other thing necessary and proper for 4996
successful and efficient regulation of casino gaming under this 4997
chapter.4998

       (E) The commission shall employ and assign gaming agents as 4999
necessary to assist the commission in carrying out the duties of 5000
this chapter. In order to maintain employment as a gaming agent, 5001
the gaming agent shall successfully complete all continuing 5002
training programs required by the commission and shall not have 5003
been convicted of or pleaded guilty or no contest to a 5004
disqualifying offense as defined in section 3772.07 of the Revised 5005
Code.5006

       (F) The commission, as a law enforcement agency, and its 5007
gaming agents, as law enforcement officers as defined in section 5008
2901.01 of the Revised Code, shall have authority with regard to 5009
the detection and investigation of, the seizure of evidence 5010
allegedly relating to, and the apprehension and arrest of persons 5011
allegedly committing gaming offenses, and shall have access to 5012
casino facilities to carry out the requirements of this chapter.5013

       (G) The commission may eject or exclude or authorize the 5014
ejection or exclusion of and a gaming agent may eject a person 5015
from a casino facility for any of the following reasons:5016

       (1) The person's name is on the list of persons voluntarily 5017
excluding themselves from all casinos in a program established 5018
according to rules adopted by the commission;5019

       (2) The person violates or conspires to violate this chapter 5020
or a rule adopted thereunder; or5021

       (3) The commission determines that the person's conduct or 5022
reputation is such that the person's presence within a casino 5023
facility may call into question the honesty and integrity of the 5024
casino gaming operations or interfere with the orderly conduct of 5025
the casino gaming operations.5026

       (H) A person, other than a person participating in a 5027
voluntary exclusion program, may petition the commission for a 5028
public hearing on the person's ejection or exclusion under this 5029
chapter.5030

       (I) A casino operator or management company shall have the 5031
same authority to eject or exclude a person from the management 5032
company's casino facilities as authorized in division (G) of this 5033
section. The licensee shall immediately notify the commission of 5034
an ejection or exclusion.5035

       (J) The commission shall submit a written annual report with 5036
the governor, president and minority leader of the senate, speaker 5037
and minority leader of the house of representatives, and joint 5038
committee on gaming and wagering before the first day of September 5039
each year. The annual report shall include a statement describing 5040
the receipts and disbursements of the commission, relevant 5041
financial data regarding casino gaming, including gross revenues 5042
and disbursements made under this chapter, actions taken by the 5043
commission, an update on casino operators', management companies', 5044
and holding companies' compulsive and problem gambling plans and 5045
the voluntary exclusion program and list, and any additional 5046
information that the commission considers useful or that the 5047
governor, president or minority leader of the senate, speaker or 5048
minority leader of the house of representatives, or joint 5049
committee on gaming and wagering requests.5050

        (K) Notwithstanding any law to the contrary, beginning on 5051
July 1, 2011, the commission shall assume jurisdiction over and 5052
oversee the regulation of skill-based amusement machines as is 5053
provided in the law of this state.5054

       Sec. 3772.04. (A)(1) If, as the result of an investigation,5055
the commission concludes that a license or finding required by 5056
this chapter should be limited, conditioned, or restricted, or5057
suspended,or revoked, denied, or not renewed, the commission 5058
shall conductmay, and if so requested by a licensee or applicant, 5059
shall, conduct a hearing in an adjudication under Chapter 119. of 5060
the Revised Code. After notice and opportunity for a hearing, the 5061
commission may limit, condition, restrict, suspend, revoke, deny, 5062
or not renew a license under rules adopted by the commission. The 5063
commission may reopen a licensing adjudication at any time.5064

       (2) The commission shall appoint a hearing examiner to 5065
conduct the hearing in the adjudication. A party to the 5066
adjudication may file written objections to the hearing examiner's 5067
report and recommendations not later than the thirtieth day after 5068
they are served upon the party or the party's attorney or other 5069
representative of record. The commission shall not take up the 5070
hearing examiner's report and recommendations earlier than the 5071
thirtieth day after the hearing examiner's report and 5072
recommendations were submitted to the commission.5073

       (3) If the commission finds that a person fails or has failed 5074
to meet any requirement under this chapter or a rule adopted 5075
thereunder, or violates or has violated this chapter or a rule 5076
adopted thereunder, the commission may issue an order:5077

       (a) Limiting, conditioning, or restricting, or suspending or,5078
revoking, denying, or not renewing, a license issued under this 5079
chapter;5080

       (b) Limiting, conditioning, or restricting, or suspending or 5081
revoking, a finding made under this chapter;5082

       (c) Requiring a casino facility to exclude a licensee from 5083
the casino facility or requiring a casino facility not to pay to 5084
the licensee any remuneration for services or any share of 5085
profits, income, or accruals on the licensee's investment in the 5086
casino facility; or5087

       (d)(c) Fining a licensee or other person according to the 5088
penalties adopted by the commission.5089

       (4) An order may be judicially reviewed under section 119.12 5090
of the Revised Code.5091

       (B) Without in any manner limiting the authority of the 5092
commission to impose the level and type of discipline the 5093
commission considers appropriate, the commission may take into 5094
consideration the following:5095

       (1) If the licensee knew or reasonably should have known that 5096
the action complained of was a violation of any law, rule, or 5097
condition on the licensee's license;5098

       (2) If the licensee has previously been disciplined by the 5099
commission;5100

       (3) If the licensee has previously been subject to discipline 5101
by the commission concerning the violation of any law, rule, or 5102
condition of the licensee's license;5103

       (4) If the licensee reasonably relied upon professional 5104
advice from a lawyer, doctor, accountant, or other recognized 5105
professional that was relevant to the action resulting in the 5106
violation;5107

       (5) If the licensee or the licensee's employer had a 5108
reasonably constituted and functioning compliance program;5109

       (6) If the imposition of a condition requiring the licensee 5110
to establish and implement a written self-enforcement and 5111
compliance program would assist in ensuring the licensee's future 5112
compliance with all statutes, rules, and conditions of the 5113
license;5114

       (7) If the licensee realized a pecuniary gain from the 5115
violation;5116

       (8) If the amount of any fine or other penalty imposed would 5117
result in disgorgement of any gains unlawfully realized by the 5118
licensee;5119

       (9) If the violation was caused by an officer or employee of 5120
the licensee, the level of authority of the individual who caused 5121
the violation;5122

       (10) If the individual who caused the violation acted within 5123
the scope of the individual's authority as granted by the 5124
licensee;5125

       (11) The adequacy of any training programs offered by the 5126
licensee or the licensee's employer that were relevant to the 5127
activity that resulted in the violation;5128

       (12) If the licensee's action substantially deviated from 5129
industry standards and customs;5130

       (13) The extent to which the licensee cooperated with the 5131
commission during the investigation of the violation;5132

       (14) If the licensee has initiated remedial measures to 5133
prevent similar violations;5134

       (15) The magnitude of penalties imposed on other licensees 5135
for similar violations;5136

       (16) The proportionality of the penalty in relation to the 5137
misconduct;5138

       (17) The extent to which the amount of any fine imposed would 5139
punish the licensee for the conduct and deter future violations;5140

       (18) Any mitigating factors offered by the licensee; and5141

       (19) Any other factors the commission considers relevant.5142

       (C) For the purpose of conducting any study or investigation, 5143
the commission may direct that public hearings be held at a time 5144
and place, prescribed by the commission, in accordance with 5145
section 121.22 of the Revised Code. The commission shall give 5146
notice of all public hearings in such manner as will give actual 5147
notice to all interested parties.5148

       (C) In(D)(1) For the purpose of conducting the hearing in an 5149
adjudication under division (A) of this section, or in the 5150
discharge of any duties imposed by this chapter, the commission 5151
may require that testimony be given under oath and administer such 5152
oath, issue subpoenas compelling the attendance of witnesses and 5153
the production of any papers, books, and accounts, directed to the 5154
sheriffs of the counties where such witnesses or papers, books, 5155
and accounts are found and cause the deposition of any witness. In5156
The subpoenas shall be served and returned in the same manner as 5157
subpoenas in criminal cases are served and returned. The fees of 5158
sheriffs shall be the same as those allowed by the court of common 5159
pleas in criminal cases.5160

        (2) In the event of the refusal of any person without good 5161
cause to comply with the terms of a subpoena issued by the 5162
commission or refusal to testify on matters about which the person 5163
may lawfully be questioned, the prosecuting attorney of the county 5164
in which such person resides, upon the petition of the commission, 5165
may bring a proceeding for contempt against such person in the 5166
court of common pleas of that county.5167

       (3) Witnesses shall be paid the fees and mileage provided for 5168
in section 119.094 of the Revised Code.5169

        (4) All fees and mileage expenses incurred at the request of 5170
a party shall be paid in advance by the party.5171

       (D)(E) When conducting a public hearing, the commission shall 5172
not limit the number of speakers who may testify. However, the 5173
commission may set reasonable time limits on the length of an 5174
individual's testimony or the total amount of time allotted to 5175
proponents and opponents of an issue before the commission.5176

       (E) An administrative law judge appointed by the commission 5177
may conduct a hearing under this chapter and recommend findings of 5178
fact and decisions to the commission.5179

       (F) The commission may rely, in whole or in part, upon 5180
investigations, conclusions, or findings of other casino gaming 5181
commissions or other government regulatory bodies in connection 5182
with licensing, investigations, or other matters relating to an 5183
applicant or licensee under this chapter.5184

       Sec. 3772.091. (A) NoA casino operator license issued under 5185
this chapter is transferable subject to approval by the 5186
commission. New majority ownership interest orAny change or 5187
transfer of control of a casino operator shall require a new 5188
licensecommission approval. The commission may reopen a licensing 5189
investigation at any time. A significantAny change in or transfer 5190
of control of a casino operator, as determined by the commission, 5191
shall require the filing of an application for a newtransferring 5192
the casino operator license and submission of a licensean 5193
application fee with the commission before any such change or 5194
transfer of control ismay be approved. A change in or transfer of 5195
control to an immediate family member is not considered a 5196
significant change under this sectionAdditionally, the commission 5197
may assess an applicant a reasonable fee in the amount necessary 5198
to review the application for the transfer of a casino operator 5199
license to the applicant. In determining whether to approve the 5200
transfer of a casino operator license to the applicant, the 5201
commission shall consider all the factors established in Chapter 5202
3772. of the Revised Code that pertain to the granting of a casino 5203
operator license. The commission may reopen a licensing 5204
investigation at any time.5205

       (B) As used in this section, "control" means either of the 5206
following:5207

       (1) Either:5208

       (a) Holding fiftythirty per cent or more of the outstanding 5209
voting securities of a licensee; or5210

       (b) For an unincorporated licensee, having the right to fifty5211
thirty per cent or more of the profits of the licensee, or having 5212
the right in the event of dissolution to fiftythirty per cent or 5213
more of the assets of the licensee.5214

       (2) Having the contractual power presently to designate fifty5215
thirty per cent or more of the directors of a for-profit or 5216
not-for-profit corporation, or in the case of trusts described in 5217
paragraphs (c)(3) to (5) of 16 C.F.R. 801.1, the trustees of such 5218
a trust.5219

       Sec. 3772.10. (A) In determining whether to grant or maintain 5220
the privilege of a casino operator, management company, holding 5221
company, key employee, casino gaming employee, or gaming-related 5222
vendor license, the Ohio casino control commission shall consider 5223
all of the following, as applicable:5224

       (1) The reputation, experience, and financial integrity of 5225
the applicant, its holding company, if applicable, and any other 5226
person that directly or indirectly controls the applicant;5227

       (2) The financial ability of the applicant to purchase and 5228
maintain adequate liability and casualty insurance and to provide 5229
an adequate surety bond;5230

       (3) The past and present compliance of the applicant and its 5231
affiliates or affiliated companies with casino-related licensing 5232
requirements in this state or any other jurisdiction, including 5233
whether the applicant has a history of noncompliance with the 5234
casino licensing requirements of any jurisdiction;5235

       (4) If the applicant has been indicted, convicted, pleaded 5236
guilty or no contest, or forfeited bail concerning any criminal 5237
offense under the laws of any jurisdiction, either felony or 5238
misdemeanor, not including traffic violations;5239

       (5) If the applicant has filed, or had filed against it a 5240
proceeding for bankruptcy or has ever been involved in any formal 5241
process to adjust, defer, suspend, or otherwise work out the 5242
payment of any debt;5243

       (6) If the applicant has been served with a complaint or 5244
other notice filed with any public body regarding a payment of any 5245
tax required under federal, state, or local law that has been 5246
delinquent for one or more years;5247

       (7) If the applicant is or has been a defendant in litigation 5248
involving its business practices;5249

       (8) If awarding a license would undermine the public's 5250
confidence in the casino gaming industry in this state;5251

       (9) If the applicant meets other standards for the issuance 5252
of a license that the commission adopts by rule, which shall not 5253
be arbitrary, capricious, or contradictory to the expressed 5254
provisions of this chapter.5255

       (B) All applicants for a license under this chapter shall 5256
establish their suitability for a license by clear and convincing 5257
evidence. If the commission determines that a person is eligib