As Introduced

130th General Assembly
Regular Session
2013-2014
S. B. No. 115


Senator Faber 


A BILL
To amend Section 12 of Am. Sub. H.B. 386 of the 129th 1
General Assembly to extend the moratorium on new 2
establishments conducting sweepstakes by 3
sweepstakes terminal devices, to require 4
establishments to file a new affidavit, and to 5
declare an emergency.6


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

       Section 1.  That Section 12 of Am. Sub. H.B. 386 of the 129th 7
General Assembly be amended to read as follows:8

       Sec. 12. (A) As used in this section:9

       (1) "Sweepstakes" means any game, contest, advertising scheme 10
or plan, or other promotion, but does not include bingo, or games 11
or lotteries conducted by the state lottery commission, in which 12
consideration is not required for a person to enter to win or to 13
become eligible to receive any prize, the determination of which 14
is based upon chance. 15

       (2) "Sweepstakes terminal device" means a mechanical, video, 16
digital, or electronic machine or device that is owned, leased, or 17
otherwise possessed by any person conducting a sweepstakes, or by 18
that person's partners, affiliates, subsidiaries, or contractors, 19
that is intended to be used by a sweepstakes participant who 20
purchases a tangible product to enter a sweepstakes, and that is 21
capable of displaying information on a screen or other mechanism. 22
A device is a sweepstakes terminal device whether or not any of 23
the following apply: 24

       (a) The device is server-based. 25

       (b) The device uses a simulated game terminal as a 26
representation of the prizes associated with the results of the 27
sweepstakes entries. 28

       (c) The device utilizes software such that the simulated game 29
influences or determines the winning of or value of the prize. 30

       (d) The device selects prizes from a predetermined finite 31
pool of entries. 32

       (e) The device utilizes a mechanism that reveals the content 33
of a predetermined sweepstakes entry. 34

       (f) The device predetermines the prize results and stores 35
those results for delivery at the time the sweepstakes entry 36
results are revealed. 37

       (g) The device utilizes software to create a game result. 38

       (h) The device requires deposit of any money, coin, or token, 39
or the use of any credit card, debit card, prepaid card, or any 40
other method of payment to activate the electronic machine or 41
device. 42

       (i) The device requires direct payment into the device, or 43
remote activation of the device. 44

       (j) The device reveals the prize incrementally, even though 45
the device does not influence the awarding of a prize or the value 46
of any prize awarded. 47

       (k) The device determines and associates the prize with an 48
entry or entries at the time the sweepstakes is entered. 49

       (l) The device is a slot machine or other form of electrical, 50
mechanical, or computer game. 51

       (3) "Enter" means the purchase of a tangible product by which 52
a person becomes eligible to receive any prize offered in a 53
sweepstakes. 54

       (4) "Entry" means one event from the initial activation of 55
the sweepstakes terminal device until all sweepstakes prize 56
results from that activation are revealed. 57

       (5) "Prize" means any gift, award, gratuity, good, service, 58
credit, reward, or any other thing of value that may be 59
transferred to a person, whether possession of the prize is 60
actually transferred, or placed on an account or other record as 61
evidence of the intent to transfer the prize.62

       (B) On and after the effective date of this sectionJune 11, 63
2012, and through June 30, 20132014, no person shall conduct a 64
sweepstakes through the use of a sweepstakes terminal device that 65
has not conducted such a sweepstakes before the effective date of 66
this sectionJune 11, 2012. All sweepstakes establishments 67
conducting a sweepstakes through the use of a sweepstakes terminal 68
device, whether or not licensed by a local entity, in existence 69
and operating before the effective date of this section may 70
continue to operate at only their current locations after the 71
effective date of this sectionJune 11, 2012. Upon the expiration 72
of any current occupancy permit, permission to operate, or other 73
permit or license issued by a local entity for a sweepstakes 74
establishment that was in existence before the effective date of 75
this section, the local entity shall renew the occupancy permits 76
or licenses or grant permission at those pre-existing locations in 77
accordance with that local entity's current permit or licensing 78
ordinances or procedures. This division is not intended to 79
supersede any similar action taken by a county, township, or 80
municipal corporation.81

       (C) The General Assembly finds the following:82

       (1) The state has experienced a proliferation of retail 83
businesses that utilize a sweepstakes to facilitate sales. These 84
establishments utilize computer terminals or stand alone machines, 85
which currently are not consistently and uniformly regulated 86
statewide and have created a window of opportunity for rogue 87
operators to open in cities across the state. 88

       (2) Judges across the state have issued conflicting rulings 89
regarding the legality of these sweepstakes establishments.90

       (3) The General Assembly has determined that a moratorium on 91
new retail sweepstakes establishments is needed while legislation 92
is being considered.93

       (D)(1) Within thirty days after the effective date of this 94
sectionJune 11, 2012, a sweepstakes establishment conducting a 95
sweepstakes through the use of a sweepstakes terminal device in 96
existence and operating before the effectivethat date of this 97
section shall file an affidavit with the Attorney General 98
certifying that the establishment was in existence and operating 99
before the effectivethat date of this section and indicating the 100
address of the establishment.101

       If a sweepstakes establishment was in existence and operating 102
before the effective date of this sectionJune 11, 2012, but was 103
involuntarily shut down by law enforcement before that date, 104
solely for the purposes of this moratorium those sweepstakes 105
establishments shall be considered to be in existence and 106
operating before the effective date of this sectionJune 11, 2012. 107
If the sweepstakes establishment is permitted to resume operations 108
pursuant to court order, the sweepstakes establishment shall have 109
thirty days from the date of resuming operations to file the 110
required affidavit.111

       (2) Within thirty days after the effective date of this 112
amendment, a sweepstakes establishment conducting a sweepstakes 113
through the use of a sweepstakes terminal device in existence and 114
operating before June 11, 2012, and any such establishment in 115
existence and operating after that date and before the effective 116
date of this amendment, shall file an affidavit with the Attorney 117
General. The affidavit shall be made under oath on forms 118
prescribed by the Attorney General and shall contain information 119
as prescribed by the Attorney General, including, but not limited 120
to, the appropriate names, as determined by the Attorney General, 121
of owners or employees of the establishment, the date that the 122
establishment began conducting sweepstakes through the use of a 123
sweepstakes terminal device, and the date that the establishment 124
began making such sweepstakes available to the general public.125

       (E)(1) On and after the effective date of this sectionJune 126
11, 2012, and through June 30, 20132014, the Attorney General or 127
the appropriate county prosecuting attorney may bring an action 128
for injunction against a person that conducts a sweepstakes 129
through the use of a sweepstakes terminal device that has not 130
conducted such a sweepstakes before the effective date of this 131
sectionJune 11, 2012. If such a person continues to conduct such 132
a sweepstakes after an injunction is granted, a contempt action 133
may be brought by any means necessary.134

       (2) The Attorney General may impose a civil penalty of not 135
more than one thousand dollars for each day a person violates 136
division (D)(2) of this section. The Attorney General shall 137
commence and prosecute to judgment a civil action in a court of 138
competent jurisdiction to collect any civil penalty imposed under 139
this section that remains unpaid. All amounts collected shall be 140
deposited into the Attorney General Reimbursement Fund created in 141
section 109.11 of the Revised Code and shall be used by the 142
Attorney General solely to enforce this section.143

        (3) The Attorney General may initiate and prosecute a 144
criminal action against any person that provides false information 145
on the affidavit required under division (D)(2) of this section in 146
any court of competent jurisdiction in this state for a violation 147
of section 2921.13 of the Revised Code. When proceeding under this 148
section, the Attorney General has all rights, privileges, and 149
powers of prosecuting attorneys, and any assistant or special 150
counsel designated by the Attorney General for that purpose has 151
the same authority.152

       Section 2.  That existing Section 12 of Am. Sub. H.B. 386 of 153
the 129th General Assembly is hereby repealed.154

       Section 3.  This act is an emergency measure necessary for 155
the immediate preservation of the public peace, health, and 156
safety. The reasons for such necessity are the same as the 157
findings of the General Assembly described in the act. Therefore, 158
this act goes into immediate effect.159