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H. B. No. 250 As Introduced
As Introduced
128th General Assembly | Regular Session | 2009-2010 |
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Representatives Book, Blessing
A BILLTo amend sections 3770.02, 3770.03, 3770.05,
3770.06,
3770.07, 3770.08, and 4301.03 and to
enact
sections 3770.21 to 3770.26, 3770.261,
3770.262, 3770.263, and
3770.27
to 3770.31 of the
Revised
Code to require
the
State Lottery
Commission to
establish
licensing
procedures
for video
lottery
sales
agents
that are
horseracing permit
holders
and
authorizes those
agents to conduct
lotteries that
provide
immediate prize
determinations for
participants
through
the use of video
lottery
terminals at
not more
than seven licensed
commercial
horseracing tracks.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 3770.02, 3770.03, 3770.05,
3770.06,
3770.07, 3770.08, and 4301.03 be amended and sections
3770.21,
3770.22, 3770.23, 3770.24, 3770.25,
3770.26, 3770.261, 3770.262,
3770.263,
3770.27,
3770.28, 3770.29, 3770.30, and 3770.31
of the
Revised
Code be
enacted to read as follows:
Sec. 3770.02. (A) Subject to the advice and consent of the
senate, the governor shall appoint a director of the state
lottery
commission who shall serve at the pleasure of the
governor. The
director shall devote full time to the duties
of the office and
shall hold no other office or employment.
The director shall meet
all requirements for appointment as a member
of the commission and
shall, by experience and training, possess
management skills
that
equip the director to
administer an
enterprise of the
nature
of a
state lottery. The director shall
receive an annual
salary
in
accordance with pay range 48 of
section 124.152 of the
Revised
Code.
(B)(1) The director shall attend all meetings of the
commission
and shall act as its secretary. The director shall
keep
a
record of all
commission proceedings and shall keep
the
commission's records, files, and
documents at the commission's
principal office. All records of
the commission's meetings shall
be available for inspection by
any member of the public, upon a
showing of good cause and prior
notification to the director.
(2) The director shall be the commission's executive officer
and shall be responsible for keeping all commission records and
supervising and administering the state lottery in accordance
with
this chapter, and carrying out all commission rules adopted
under
section 3770.03 of the Revised Code.
(C)(1) The director shall appoint an assistant director,
deputy directors of marketing,
operations, video lottery
terminals, sales, finance, public
relations, security, and
administration, and as many regional
managers as are required.
The director may also appoint
necessary
professional, technical,
and clerical assistants.
All
such
officers and employees shall be
appointed
and
compensated
pursuant
to Chapter 124. of the Revised
Code.
Regional
and
assistant
regional managers, sales
representatives, and any
lottery
executive account representatives
shall
remain in the
unclassified
service.
There is hereby created a division of video lottery terminals
within the commission that the deputy director of video lottery
terminals shall supervise.
(2) The director, in
consultation with the director of
administrative services, may
establish standards of proficiency
and productivity for
commission field representatives.
(D) The director shall request the bureau of criminal
identification and investigation, the department of public
safety,
or any other
state, local, or federal agency to supply
the
director with the criminal records of
any job applicant and may
periodically request
the
criminal records of commission
employees.
At or prior to the time of making such a request, the
director
shall
require a job applicant or
commission employee to
obtain
fingerprint cards prescribed by the
superintendent of the
bureau
of criminal identification and investigation at a
qualified
law
enforcement
agency, and the director shall cause these
fingerprint
cards to be forwarded to
the bureau of criminal
identification and
investigation and the federal bureau
of
investigation. The
commission shall assume the cost of obtaining
the
fingerprint
cards and shall pay to each agency supplying
criminal records
for
each
investigation under this division a
reasonable
fee, as
determined by the agency.
(E) The director shall license lottery sales agents pursuant
to
section 3770.05 of the Revised Code and video lottery
sales
agents pursuant to section 3770.24 of the Revised Code and,
when
it is considered
necessary, may revoke or
suspend the license
of
any lottery sales such
agent under this chapter.
(F) The director shall confer at least once
each month with
the commission, at which time the director
shall advise it
regarding the operation and administration of the lottery. The
director
shall make available at the request of the commission all
documents, files, and other records pertaining to the operation
and administration of the lottery. The director shall
prepare and
make
available to the commission each month a complete and
accurate
accounting of lottery revenues, prize money disbursements
and the
cost of goods and services awarded as prizes, operating
expenses,
and all other relevant financial information, including
an
accounting of all transfers made from any lottery funds in the
custody of the
treasurer of state to benefit education.
(G) The director may enter into contracts for the operation
or
promotion of the lottery pursuant to Chapter 125. of the
Revised Code.
(H)(1) Pursuant to rules adopted by the commission
under
section 3770.03 of the Revised Code, the director shall require
any
lottery sales
agents licensed under section 3770.05 of the
Revised Code
to
either mail directly to the
commission
or
deposit
to the credit of the state
lottery fund, in
banking
institutions
designated by the treasurer
of state, net
proceeds
due the
commission
as determined by
the
director, and to
file
with the
director or
the director's
designee reports of their
receipts and
transactions in
the sale of
lottery
tickets products in
the
form
required
by the director.
(2) Pursuant to rules adopted by the commission under
Chapter
119. of the Revised
Code, the director may impose
penalties for
the failure of a sales agent to transfer funds to
the commission
in a timely
manner. Penalties may include monetary
penalties,
immediate suspension or
revocation of a license, or any
other
penalty the commission adopts by
rule.
(I) The director may arrange for any person, or any
banking
institution, to perform
functions and services in connection
with
the operation of the lottery as the director may
consider
necessary to carry out this chapter.
(J)(1) As used in this chapter,
"statewide joint lottery
game" means a lottery game that the commission sells solely within
this state under an agreement with other lottery jurisdictions to
sell the same lottery game solely within their statewide or
other
jurisdictional boundaries.
(2) If the governor directs the director to do so, the
director shall enter into an agreement with other
lottery
jurisdictions to conduct statewide joint lottery games. If
the
governor signs the agreement personally or by means of
an
authenticating officer pursuant to section 107.15 of the
Revised
Code, the director then may conduct statewide joint lottery games
under the
agreement.
(3) The entire net proceeds from any statewide joint lottery
games shall be used to fund elementary, secondary, vocational, and
special education programs in this state.
(4) The commission shall conduct any statewide joint lottery
games in accordance with rules it adopts under division (B)(5) of
section 3770.03 of the Revised Code.
(K)(1) The director shall enter into an agreement with the
department of alcohol and drug addiction services under which the
department shall provide a program of gambling addiction services
on behalf of the commission for persons who participate in the
lottery under this chapter, including lotteries authorized by
section 3770.22 of the Revised Code. The commission shall pay the
costs of
the program provided pursuant to the agreement.
(2) As used in this section, "gambling addiction services"
has the same meaning as in section 3793.01 of the Revised Code.
Sec. 3770.03. (A) The state lottery commission shall
promulgate rules under which a statewide lottery may,
including
games providing immediate prize
determinations
for participants
through the use of
video
lottery
terminals,
shall be conducted.
The rules shall be
promulgated
pursuant to
Chapter
119.
of the
Revised Code, except
that
instant
game rules
shall be
promulgated
pursuant to section
111.15 of the
Revised
Code but
are not subject
to division (D) of
that section.
Subjects
covered
in
these rules
shall include, but
need not
be
limited
to, the
following:
(1) The type of lottery to be conducted;
(2) The prices of tickets in the
lottery. products;
(3) The number, nature, and value of prize awards, the
manner
and frequency of prize drawings and determinations, and the
manner in
which
prizes
shall be awarded to holders of winning
tickets.
(B) The commission shall promulgate
rules, in
addition to
those described in division (A) of this section,
pursuant
to
Chapter 119. of the Revised Code under which a
statewide lottery
and statewide joint lottery games may, and lotteries,
including
games providing immediate prize
determinations
through the use of
video lottery
terminals
shall, be
conducted.
Subjects
covered in
these rules shall
include, but not
be limited
to, the
following:
(1) The locations at which lottery tickets products may be
sold and
the manner in which they are to be sold.
These rules may
authorize
the sale of lottery tickets products by commission
personnel or
other
licensed
individuals from traveling show
wagons at the state
fair,
and at any
other expositions the
director
of the commission
considers acceptable.
These rules shall
prohibit
commission
personnel or other licensed individuals from
soliciting from an
exposition the right to sell lottery tickets at
that exposition,
but shall
allow commission personnel or other
licensed individuals
to sell lottery
tickets at an exposition if
the exposition
requests commission personnel or
licensed
individuals to do so.
These rules may also
address the
accessibility of sales agent
locations to commission products in
accordance with the
"Americans
with Disabilities
Act of 1990," 104
Stat. 327, 42 U.S.C.A. 12101
et seq.
(2) The manner in which lottery sales revenues are to be
collected, including authorization for the director to impose
penalties for failure by
lottery sales agents or, under section
3770.28 of the Revised Code, video lottery sales agents to
transfer revenues
to the commission in a timely manner;
(3) The Except as provided in section 3770.26 of the Revised
Code, the amount of compensation to be paid licensed lottery
sales
agents;
(4) The substantive criteria for the licensing of lottery
sales agents consistent with section 3770.05 of the Revised Code,
and procedures for revoking or suspending
their licenses, or the
licenses of video lottery sales agents issued under section
3770.24 of the Revised Code,
consistent with Chapter 119. of the
Revised Code. If
circumstances, such as the nonpayment of funds
owed by a
lottery
sales agent or video lottery sales agent,
or
other circumstances related to the public safety,
convenience,
or
trust,
require immediate action, the director may
suspend a
license without affording
an opportunity for a prior
hearing under
section 119.07 of the Revised Code.
(5) Special game rules to implement any agreements signed by
the governor that the
director enters into with other lottery
jurisdictions under
division (J) of section 3770.02 of the Revised
Code to conduct
statewide joint lottery games. The rules shall
require that the
entire net proceeds of those games that remain,
after associated
operating expenses, prize disbursements, lottery
sales agent
bonuses, commissions, and reimbursements, and any
other expenses
necessary to comply with the agreements or the
rules are deducted
from the gross proceeds of those games, be
transferred to the
lottery profits education fund under division
(B) of section
3770.06 of the Revised Code.
(C)(6) The manner in which lotteries that use video
lottery
terminals under section 3770.22 of the Revised Code must be
conducted and the security, licensing, and enforcement procedures
necessary to ensure the integrity of those lotteries;
(7) Licensing requirements and fees for key gaming employees
of
video lottery sales agents, as defined in section 3770.21 of
the Revised Code, or agents' contractors that employ key gaming
employees; provided that the maximum
initial or yearly fee for a
license issued by the commission and fees associated therewith
shall be set by rule by the commission;
(8) Any other subjects the commission determines are
necessary
for the conduct of lotteries under section 3770.22 of
the Revised Code.
(C) Chapter 2915. of the Revised Code does not apply to,
affect, or prohibit lotteries conducted pursuant to this chapter.
(D) The commission may conduct lotteries simulating card
games, spinning-wheel games, or cast object games by video
lottery
terminals pursuant to section 3770.22 of the Revised Code.
(E) The commission may promulgate rules, in addition to those
described in divisions (A) and (B) of this section, that establish
standards governing the display of advertising and celebrity
images on lottery tickets and on other items that are used in the
conduct of, or to promote, the statewide lottery and statewide
joint lottery games. Any revenue derived from the sale of
advertising displayed on lottery tickets and on those other items
shall be considered, for purposes of section 3770.06 of the
Revised Code, to be related proceeds in connection with the
statewide lottery or gross proceeds from statewide joint lottery
games, as applicable.
(D)(F)(1) The
commission shall meet with the
director
at
least
once each month and shall
convene
other meetings at the
request of
the
chairperson
or any five of the
members. No action
taken by the
commission
shall be binding
unless at least five of
the members
present vote
in favor
of the action. A written
record
shall be
made of
the proceedings of
each meeting and shall
be
transmitted
forthwith
to the governor,
the president of the
senate, the senate
minority
leader, the
speaker of the house of
representatives, and
the house
minority
leader.
(2) The director shall present to the commission a report
each
month, showing the total revenues, prize disbursements, and
operating expenses of the state lottery for the preceding month.
As soon as practicable after the end of each fiscal year, the
commission shall prepare and transmit to the governor and the
general assembly a report of lottery revenues, prize
disbursements, and operating expenses for the preceding fiscal
year and any recommendations for legislation considered
necessary
by the commission.
Sec. 3770.05. (A) As used in this section,
"person" means
any
person, association, corporation, partnership, club, trust,
estate, society, receiver, trustee, person acting in a fiduciary
or representative capacity, instrumentality of the state or any
of
its political subdivisions, or any other combination of
individuals meeting the requirements set forth in this section or
established by rule or order of the state lottery commission.
(B) The director of the state lottery commission may license
any person as a lottery sales agent for the
sale of lottery
products. No license shall be issued
to
any person or group of
persons to engage in the sale of
lottery
tickets products as the
person's or group's sole occupation or
business.
Before issuing any license to a lottery sales agent for the
sale of lottery
products,
the
director shall consider all of the
following:
(1) The financial responsibility and security of the
applicant and the applicant's business or activity;
(2) The accessibility of the applicant's place of business or
activity
to the public;
(3) The sufficiency of existing licensed agents to serve
the
public interest;
(4) The volume of expected sales by the applicant;
(5) Any other factors pertaining to the public interest,
convenience, or trust.
(C) Except as otherwise provided in division
(F) of this
section, the director of the state lottery commission shall refuse
to grant, or shall
suspend
or
revoke, a license issued under this
section if the applicant or licensee:
(1) Has been convicted of a felony or has been convicted of
a
crime
involving moral
turpitude;
(2) Has been convicted of an offense that involves illegal
gambling;
(3) Has been found guilty of fraud or misrepresentation in
any connection;
(4) Has been found to have violated any rule or order of
the
commission; or
(5) Has been convicted of illegal trafficking in food
stamps.
(D) Except as otherwise provided in division
(F) of this
section, the director of the state lottery commission shall refuse
to grant, or shall
suspend
or
revoke, a license issued under this
section if the applicant or licensee is a
corporation and any of
the following applies:
(1) Any of the corporation's directors, officers, or
controlling
shareholders has been found guilty of any of the
activities
specified in divisions (C)(1) to (5) of this section;
(2) It appears to the director of the state lottery
commission that, due to the
experience, character,
or
general
fitness of any director,
officer, or controlling
shareholder of
the corporation, the granting of a license as a
lottery sales
agent
would be inconsistent with the public
interest, convenience,
or
trust;
(3) The corporation is not the owner or lessee of the
business at which it
would conduct a lottery sales agency pursuant
to the license
applied
for;
(4) Any person, firm, association, or
corporation other
than
the applicant or licensee shares or will share in the
profits of
the
applicant or licensee, other than receiving dividends or
distributions as a
shareholder, or participates or will
participate in the
management of the affairs
of the applicant or
licensee.
(E)(1) The director of the state lottery commission shall
refuse to grant a license to an
applicant for a lottery sales
agent license issued under this section and shall revoke a lottery
sales agent license if the
applicant or
licensee is or has
been
convicted of a violation of
division (A)
or (C)(1) of section
2913.46 of the Revised Code.
(2) The director shall refuse to grant a license issued under
this section to an
applicant for a lottery sales agent license
that is a
corporation and shall revoke the lottery sales agent
license issued under this section of a
corporation
if the
corporation is or has been
convicted of a violation of division
(A) or (C)(1) of
section 2913.46 of the Revised
Code.
(F) The director of the state lottery commission shall
request the bureau of
criminal
identification and investigation,
the department of public safety,
or
any other state, local, or
federal agency to supply the
director with the
criminal records of
any applicant for a lottery
sales agent license, and may
periodically request the criminal records of
any person to whom a
lottery sales agent license has
been issued. At or prior to
the
time of making such a request, the director
shall require an
applicant or licensee to obtain fingerprint impressions on
fingerprint cards prescribed
by
the superintendent of the bureau
of criminal identification and
investigation at a
qualified law
enforcement agency, and the
director shall cause
those
fingerprint cards to be forwarded to
the bureau of criminal
identification and
investigation, to the
federal bureau of
investigation, or to both bureaus. The commission shall
assume the
cost of obtaining the
fingerprint cards.
The director shall pay
to each agency supplying
criminal
records for
each investigation a
reasonable fee, as determined by
the agency.
The
commission may
adopt uniform rules specifying time
periods after which
the
persons described in divisions (C)(1) to
(5) and (D)(1)
to (4) of
this section may be issued a license and
establishing requirements
for those persons to seek a court order
to have records sealed in
accordance
with law.
(G)(1) Each applicant for a lottery sales agent license for
the sale of lottery products
shall do both of the following:
(a) Pay to the state lottery commission, at the time the
application is submitted, a fee in an amount that the
director of
the state lottery commission determines by rule adopted under
Chapter 119. of the Revised Code and that the controlling board
approves;
(b) Prior to approval of the application, obtain a surety
bond in an amount
the director determines by rule adopted under
Chapter 119. of the Revised Code or, alternatively, with the
director's approval, deposit the same amount into a dedicated
account for the benefit of the state lottery. The director also
may approve the obtaining of a surety bond to cover part of the
amount required, together with a dedicated account deposit to
cover the remainder of the amount required.
A surety
bond may be
with any company that complies with
the
bonding and surety laws of this state
and the requirements
established by rules of the commission pursuant to this
chapter. A
dedicated account deposit shall be conducted in accordance with
policies and procedures the director establishes.
A surety bond, dedicated account, or both, as applicable, may
be used to pay for the lottery sales agent's failure to make
prompt and accurate payments for lottery ticket product sales, for
missing or stolen lottery tickets products, or for damage to
equipment or materials issued to the lottery sales agent, or to
pay for expenses the commission incurs in connection with the
lottery sales agent's license.
(2) A lottery sales agent license for the sale of lottery
products is effective for one year, except as otherwise provided
in division (B) of section 3770.24 of the Revised Code.
A licensed
lottery sales agent, on or before the date
established by the director,
shall renew the agent's license and
provide
at that time evidence to the director
that the surety
bond, dedicated account deposit, or both, required under division
(G)(1)(b)
of this section has been
renewed or is active, whichever
applies.
Before the commission renews a lottery sales agent license,
the lottery sales agent shall submit a renewal fee to the
commission in an amount that the director determines by rule
adopted under Chapter 119. of the Revised Code and that the
controlling board approves. The renewal fee shall not exceed the
actual cost of administering the license renewal and processing
changes reflected in the renewal application. The renewal of the
license is effective for up to one year.
(3) A lottery sales agent license shall be complete,
accurate, and current at all times during the term of the license.
Any changes to an original license application or a renewal
application may subject the applicant or lottery sales agent, as
applicable, to paying an administrative fee that shall be in an
amount that the director determines by rule adopted under Chapter
119. of the Revised Code, that the controlling board approves, and
that shall not exceed the actual cost of administering and
processing the changes to an application.
(4) The relationship between the commission and a
lottery
sales
agent is one of trust. A lottery sales agent
collects funds
on behalf of the
commission through the sale of
lottery tickets
products for which the agent receives a
compensation.
(H) Pending a final resolution of any question arising under
this section, the director of the state lottery commission may
issue a temporary lottery sales
agent license for the sale of
lottery products, subject to the terms and conditions the
director
considers appropriate.
(I) If a lottery sales agent's rental payments for the
lottery sales agent's
premises are determined, in whole or in
part, by the
amount of retail
sales the lottery sales agent makes,
and if the rental agreement
does not expressly
provide that the
amount of those retail sales
includes the amounts
the lottery
sales agent receives from lottery ticket product sales,
only the
amounts the
lottery sales agent receives as compensation
from the
state
lottery commission for selling lottery tickets products
shall be
considered to be amounts the lottery sales agent receives
from the
retail sales
the lottery sales agent
makes, for the
purpose of computing the
lottery sales agent's rental payments.
Sec. 3770.06. (A)(1) There is hereby created the state
lottery
gross revenue fund, which shall be in the custody of the
treasurer
of state, but shall not be part of the state treasury.
All gross
revenues received from sales of lottery tickets
products, fines,
fees, and
related proceeds
in
connection with
the statewide
lottery and all
gross proceeds from
statewide joint
lottery games
shall be
deposited into the fund.
The
treasurer
of
state shall
invest any
portion of the fund not
needed for
immediate use in the
same
manner as, and subject to
all
provisions
of law with respect
to
the investment of, state
funds.
The
treasurer of state shall
disburse money from the fund
on order
of
the director of the state
lottery commission or the
director's
designee.
(2) Except for
gross proceeds from statewide joint lottery
games,
all revenues of
the state lottery gross revenue fund
that
are not
paid to holders
of winning lottery tickets participants,
that are
not required
to meet
short-term prize liabilities, that
are not
credited to
lottery
sales
agents or video lottery
sales
agents in the form of
bonuses,
commissions,
or
reimbursements,
that are not necessary for operating the video
lottery
terminals
under Chapter
3770. of the
Revised Code,
that are not paid to
financial
institutions
to
reimburse
those
institutions for sales
agent
nonsufficient
funds,
and that are not
collected from sales
agents
for remittance to
insurers under
contract to provide
sales agent
bonding services
shall be
transferred to the state
lottery
fund,
which is
hereby
created in
the state treasury.
In
addition, all
revenues of
the
state
lottery
gross revenue fund
that represent
the gross
proceeds
from
the
statewide joint
lottery games and that
are not
paid to
holders of
winning lottery
tickets, that are not
required
to meet
short-term
prize
liabilities, that are not
credited to
lottery
sales
agents in
the form of bonuses,
commissions, or
reimbursements, and
that are
not necessary to
cover operating
expenses associated with
those
games or to
otherwise comply with
the agreements signed by the
governor that
the
director
enters
into under division (J) of
section 3770.02 of
the
Revised
Code or
the rules the commission
adopts under division
(B)(5) of
section
3770.03 of the Revised
Code shall be transferred
to the
state
lottery fund. All
All
investment earnings of
the state lottery fund
shall be
credited to the fund.
Moneys shall be disbursed
from the
fund
pursuant to
vouchers
approved by the director.
Total
disbursements
for monetary
prize
awards to holders of
winning
lottery tickets
in
connection with
the statewide lottery and
purchases
of goods and
services
awarded
as prizes to holders of
winning
lottery tickets
shall be
of an
amount equal
to at least
fifty per cent of the
total
revenue
accruing from the
sale of
lottery tickets products.
(B) Pursuant to Section 6 of Article XV, Ohio
Constitution,
there is hereby established in the state treasury
the lottery
profits education fund. Whenever, in the judgment of
the director
of budget and management, the amount to the credit
of the state
lottery fund
that does not represent proceeds from statewide joint
lottery games is in excess of that needed to meet the
maturing
obligations of the commission and as working capital for
its
further operations, the director shall transfer the
excess to the
lottery profits education fund
in connection with the statewide
lottery.
In addition, whenever, in the
judgment of
the director
of
budget and management, the amount to
the credit of
the state
lottery fund that represents proceeds from
statewide
joint lottery
games equals the entire net proceeds of
those games
as described
in division (B)(5) of section 3770.03 of
the Revised
Code and the
rules adopted under that division, the
director shall
transfer
those proceeds to the lottery profits
education fund. There
shall
also
be credited to the fund any
repayments of moneys
loaned from
the
educational excellence
investment fund.
Investment earnings
of
the lottery profits
education fund shall be credited to the
fund.
The
lottery profits
education fund shall be used solely for
the
support of elementary,
secondary, vocational, and special
education programs as
determined in appropriations made by the
general assembly, or as
provided in applicable bond proceedings
for
the payment of debt
service on obligations issued to pay costs
of capital
facilities,
including those for a system of common
schools throughout the
state pursuant to section 2n of Article
VIII, Ohio Constitution.
When determining the
availability of
money in
the lottery profits
education fund, the director of
budget and
management may consider
all balances and estimated
revenues of
the fund.
(C) There is hereby established in the state treasury the
deferred prizes trust fund. With the approval of the director of
budget and management, an amount sufficient to fund annuity
prizes
shall be transferred from the state lottery fund and
credited to
the trust fund. The treasurer of state shall
credit all earnings
arising from investments purchased under this
division to the
trust
fund. Within sixty days after the end of each
fiscal year,
the treasurer of state shall certify to the director of budget and
management whether the actuarial amount of the trust fund is
sufficient over the fund's life for continued funding of all
remaining deferred prize liabilities as of the last day of the
fiscal year just ended. Also, within that sixty days,
the
director
of budget and management shall certify
the amount of
investment
earnings necessary to have been credited
to the trust
fund during
the fiscal year just ending to provide
for such continued
funding
of deferred prizes. Any earnings credited
in excess of
the
latter
certified amount shall be transferred to the
lottery
profits
education fund.
To provide all or a part of the
amounts necessary
to fund
deferred prizes awarded by the
commission in connection with the
statewide lottery, the treasurer
of state, in consultation with
the
commission, may invest moneys
contained in the deferred prizes
trust fund which represents that represent proceeds from the
statewide lottery in
obligations of the
type permitted for the
investment of state
funds but whose
maturities are thirty years or
less.
Notwithstanding the requirements of any other section of the
Revised Code, to provide all or part of the amounts necessary to
fund deferred prizes awarded by the commission in connection with
statewide joint lottery games, the treasurer of state, in
consultation with the commission, may invest moneys in the trust
fund which represent proceeds derived from the statewide joint
lottery games in accordance with the rules the commission adopts
under division (B)(5) of section 3770.03 of the Revised Code.
Investments of the
trust fund are not subject to the provisions
of
division
(A)(10) of section 135.143 of the Revised Code
limiting
to
twenty-five
per cent the amount
of the state's total
average
portfolio that
may be invested in debt interests
and
limiting to
one-half of one
per cent the amount that may be
invested in
debt
interests of a
single issuer.
All purchases made under this division shall be effected on
a
delivery versus payment method and shall be in the custody of
the
treasurer of state.
The treasurer of state may retain an investment advisor, if
necessary. The commission shall pay any costs incurred by the
treasurer of state in retaining an investment advisor.
(D) The auditor of state shall conduct annual audits
of all
funds and
any other audits as the auditor of state or
the
general
assembly considers necessary. The auditor of state may
examine
all
records, files, and other documents of the commission,
and
records
of
lottery sales agents and of video lottery sales agents
that
pertain to their
activities
as
agents, for purposes of
conducting
authorized
audits.
The state lottery commission shall establish an internal
audit program
before the beginning of each fiscal year, subject to
the approval of the
auditor of state. At the end of each fiscal
year, the commission shall
prepare and submit an annual report to
the auditor of state for the auditor of
state's review and
approval, specifying the internal audit work completed by
the end
of that fiscal year and reporting on compliance with the annual
internal audit program. The form and content of the report shall
be
prescribed by the auditor of state under division (C) of
section
117.20 of the Revised Code.
(E) Whenever, in the judgment of the director of budget and
management, an amount of net state lottery proceeds is necessary
to be applied
to the payment of debt service on obligations, all
as defined in sections
151.01 and 151.03 of the Revised Code, the
director shall transfer that amount directly from
the state
lottery fund or from the lottery profits education fund to the
bond
service fund defined in those sections. The provisions of
this division
are subject to any prior pledges
or obligation of
those amounts to the payment of bond service
charges as defined in
division
(C) of section 3318.21 of the
Revised Code, as referred
to in division (B)
of this section.
Sec. 3770.07. (A)(1) Except as provided in division (A)(2)
of this section, lottery prize awards shall be claimed
by the
holder of the winning lottery ticket product, or by the
executor
or
administrator, or the trustee of a trust, of the
estate of a
deceased holder of a winning lottery
ticket
product, in a manner
to be determined
by the state lottery
commission, within one
hundred eighty days
after the date on
which
the prize award was
announced if the
lottery game is an
online
game, and within one
hundred eighty
days after the close
of the
game if the lottery
game is an instant
game.
No lottery prize award with a value that exceeds five eleven
hundred
ninety-nine dollars shall be claimed by or paid to any
person, as
defined in section 1.59 of the Revised Code or as
defined by rule
or order of the state lottery commission, until
the name, address,
and social security number of each beneficial
owner of the prize
award are disclosed to documented for the
commission. Except
when a beneficial
owner otherwise consents in
writing, in the
case of a claim for a
lottery prize award made
by one or more
beneficial owners using a
trust, the name,
address, and social
security number of each such
beneficial
owner in the commission's
records as a result of such a
disclosure are confidential and
shall not be subject to
inspection
or copying under section
149.43 of the Revised Code
as a public
record.
Except as otherwise provided in division (A)(1) of this
section or as otherwise provided by law, the name and address of
any individual claiming a lottery prize award are subject to
inspection or copying under section 149.43 of the Revised Code as
a public record.
(2) An eligible person serving on active military duty in any
branch of the United States armed forces during a war or national
emergency declared in accordance with federal law may submit a
delayed claim for a lottery prize award. The eligible person shall
do so by notifying the state lottery commission about the claim
not later than the five hundred fortieth day after the date on
which the prize award was announced if the lottery game is an
online game or after the date on which the lottery game closed if
the lottery game is an instant game.
(3) If no valid
claim to a lottery prize award is made within
the
prescribed period,
the prize money, the cost of goods and
services awarded as
prizes, or, if goods or services awarded as
prizes are
resold by the state lottery
commission, the proceeds
from their sale shall be
returned to the
state lottery fund and
distributed in accordance
with section
3770.06 of the Revised
Code.
(4) The state lottery commission may share with other
governmental agencies the name, address, and social security
number of a beneficial owner disclosed to the commission under
division (A)(1) of this section, as authorized under sections
3770.071 and 3770.073 of the Revised Code. Any shared information
as disclosed pursuant to those sections that is made confidential
by division (A)(1) of this section remains confidential and shall
not be subject to inspection or copying under section 149.43 of
the Revised Code as a public record unless the applicable
beneficial owner otherwise provides written consent.
(5) As used in this division:
(a) "Eligible person" means a person who is entitled to a
lottery prize award and who falls into either of the following
categories:
(i) While on active military duty in this state, the person,
as the result of a war or national emergency declared in
accordance with federal law, is transferred out of this state
before the one hundred eightieth day after the date on which the
winner of the lottery prize award is selected.
(ii) While serving in the reserve forces in this state, the
person, as the result of a war or national emergency declared in
accordance with federal law, is placed on active military duty and
is transferred out of this state before the expiration of the one
hundred eightieth day after the date on which the prize drawing
occurs for an online game or before the expiration of the one
hundred eightieth day following the close of an instant game as
determined by the commission.
(b) "Active military duty" means that a person is covered by
the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50
U.S.C. 501 et seq., as amended, or the "Uniformed Services
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149,
38 U.S.C. 4301 et seq., as amended.
(c) "Each beneficial owner" means the ultimate recipient or,
if there is more than one, each ultimate recipient of a lottery
prize award.
(B) If a
prize winner, as
defined in section 3770.10 of the
Revised Code, is under eighteen
years of age, or is under some
other legal disability, and the
prize money or the cost of goods
or services awarded as a prize
exceeds one thousand dollars, the
director of the state lottery commission shall order that
payment
be made to the order of the
legal guardian of
that prize winner.
If the amount of the prize
money
or the
cost of
goods or services
awarded as a prize is one
thousand
dollars or
less, the director
may order that payment be
made to
the order of
the adult member,
if any, of
that prize
winner's family
legally responsible for
the
care of
that prize
winner.
(C) No right of any
prize winner, as defined in
section
3770.10 of the Revised Code, to a prize award shall be the
subject
of a security interest or used as collateral.
(D)(1) No right of any prize winner, as defined in section
3770.10 of the Revised Code, to a prize award shall be assignable
except as follows: when the payment is to be made to the executor
or administrator, or the trustee of a trust, of the estate of a
winning ticket holder prize winner; when the award of a prize is
disputed, any person may be awarded a prize award to which another
has claimed title, pursuant to the order of a court of competent
jurisdiction; when a person is awarded a prize award to which
another has claimed title, pursuant to the order of a federal
bankruptcy court under Title 11 of the United States Code; or as
provided in sections 3770.10 to 3770.14 of the Revised Code.
(2)(a) No right of any
prize winner, as defined in
section
3770.10 of the Revised Code, to a prize award with a remaining
unpaid balance of less than one hundred thousand dollars shall be
subject to garnishment, attachment, execution,
withholding, or
deduction except as provided in
sections 3119.80,
3119.81,
3121.02, 3121.03, and
3123.06 of the
Revised Code
or when the
director
is
to make a payment pursuant to section
3770.071 or
3770.073 of the Revised
Code.
(b) No right of any prize winner, as defined in section
3770.10 of the Revised Code, to a prize award with an unpaid
balance of one hundred thousand dollars or more shall be subject
to garnishment, attachment, execution, withholding, or deduction
except as follows: as provided in sections 3119.80, 3119.81,
3121.02, 3121.03, and 3123.06 of the Revised Code; when the
director is to make a payment pursuant to section 3770.071 or
3770.073 of the Revised Code; or pursuant to the order of a court
of competent jurisdiction located in this state in a proceeding in
which the state lottery commission is a named party, in which case
the garnishment, attachment, execution, withholding, or deduction
pursuant to the order shall be subordinate to any payments to be
made pursuant to section 3119.80, 3119.81, 3121.02, 3121.03,
3123.06, 3770.071, or 3770.073 of the Revised Code.
(3) The state lottery commission may adopt and amend rules
pursuant to Chapter 119. of the Revised Code as necessary to
implement division (D) of this section, to provide for payments
from prize awards subject to garnishment, attachment, execution,
withholding, or deduction, and to comply with any applicable
requirements of federal law.
(4) Upon making payments from a prize award as required by
division (D) of this section, the director and the state lottery
commission are discharged from all further liability for those
payments, whether they are made to an executor, administrator,
trustee, judgment creditor, or another person, or to the prize
winner, as defined in section 3770.10 of the Revised Code.
(5) The state lottery commission shall adopt rules pursuant
to section
3770.03
of the
Revised Code concerning the payment of
prize awards
upon
the death of a prize winner, as defined in
section 3770.10 of the Revised Code. Upon the death of a prize
winner,
the
remainder
of the prize winner's prize award, to the
extent it
is
not subject to a transfer agreement under sections
3770.10 to
3770.14 of the Revised Code, may be paid to the
executor,
administrator,
or trustee in the form of a discounted
lump sum
cash settlement.
(E) No lottery prize award shall be awarded to or for any
officer or employee of the state lottery commission, any officer
or
employee of the auditor of state actively auditing,
coordinating and, or certifying
commission drawings, or any blood
relative or spouse of
such an officer or employee of the
commission or auditor
of state
living as a member
of the officer's
or employee's household, nor
shall any such officer,
employee,
blood relative, or spouse attempt to
claim a lottery prize
award.
(F) The director may prohibit vendors to the state lottery
commission and
their employees from being awarded a lottery prize
award.
(G) Upon the payment of
prize awards pursuant to a provision
of this
section other than a provision of division (D) of this
section or section 3770.28 of the Revised Code, the director and
the state lottery
commission are discharged from all
further
liability for their payment. Installment payments of lottery prize
awards shall be paid by official check or warrant, and they shall
be sent by mail delivery to the prize winner's address within the
United States or by electronic funds transfer to an established
bank account located within the United States, or the prize winner
may pick them up at an office of the commission.
Sec. 3770.08. (A) No person shall sell
a lottery ticket
at
a
price greater than that
fixed established by rule of the state
lottery
commission.
(B) No person other than a licensed lottery sales agent
or
video lottery sales agent
shall sell
lottery tickets
products, but
nothing in this section shall be
construed to prevent any person
from giving
lottery tickets
products to
another as a gift. A
transfer of
lottery tickets
products by any person
which
that is
made in connection
with a marketing, promotional, or
advertising
program shall be
deemed to be a gift for the purposes
of this
chapter.
(C) No person shall sell
a lottery ticket
product to any
person
under
eighteen years of
age, and no person under eighteen
years of
age
shall
attempt to
purchase
a lottery ticket product.
The commission shall
adopt rules to establish a problem gamblers
list and create a voluntary exclusion program.
(D) No person, directly or indirectly, on behalf of self, or
another, nor any
organization, shall invite, solicit, demand,
offer, or accept any payment,
contribution, favor, or
other
consideration to influence the award, renewal, or retention
of a
lottery sales
or video lottery sales agent license.
(E) Except as otherwise provided in this division, no
person
shall sell
lottery tickets
on
any fairgrounds during any
annual
exhibition conducted in
accordance with Chapter 991. or
1711. of
the Revised Code.
"Fairgrounds" includes any land or
property
under the control or
management of any agricultural
society or of
the Ohio expositions
commission. This division
does not apply to
the sale of
lottery
tickets
products by the commission
at
the
state
fairground during the state fair.
Sec. 3770.21. As used in sections 3770.21 to 3770.30 of the
Revised Code:
(A) "Associated equipment" means any hardware or software
that is connected to video lottery terminal or the central
communications system for the purpose of performing communications
to, or validation, auditing, or data and information retrieval by,
the state lottery commission. "Associated equipment" does not
include telecommunications facilities and equipment of a public
utility or video lottery terminals.
(B) "Central communications system" means the computer system
that is
operated and controlled under the authority of the state
lottery commission,
to which
video lottery terminals and their
associated
equipment
communicate for security, auditing, data
and
information
retrieval, and other purposes authorized under
this
chapter and that has the ability to activate and deactivate
the operation of video lottery terminals.
(C) "EDGE business enterprises" has the same meaning as in
section 123.152 of the Revised Code.
(D) "Video lottery terminal" means a device approved by
the
state lottery commission for the purpose of conducting at
tracks
lotteries that provide immediate
prize
determinations
for
participants.
(E) "Video lottery sales agent" means a person who is a
permit holder and holds a current license issued under section
3770.24 of the Revised Code to assist the state lottery commission
in conducting lotteries through the use of video lottery
terminals at a track.
(F) "Gross proceeds" means the amount of wagers by
participants in lotteries minus payments to winning participants
and minus value credits redeemed through a video lottery terminal.
(G) "Key gaming employee" means an individual determined to
be a key gaming employee under rules adopted by the state lottery
commission.
(H)
"Ohio-based business" means a business that is subject to
a
tax imposed by Chapter 5725., 5727., 5733., or 5751. of the
Revised Code and that has a
physical presence in this state.
(I) "Permit holder" means a person, as defined in section
1701.01 of the Revised Code, that has been authorized by the state
racing commission to conduct one or more horse racing meetings
under Chapter 3769. of the Revised Code.
(J) "Value credit" means a credit that provides
customers of
a video lottery sales agent with free plays on
video
lottery
terminal.
(K) "Track" means any place, track, or enclosure where a
permit holder conducts live horse racing for profit at a racing
meeting. "Track" includes facilities on premises contiguous
or
adjacent to those places, tracks, or enclosures.
Sec. 3770.22. The state lottery commission shall conduct
lotteries that provide
immediate prize determinations for
participants through
the use of video lottery
terminals. The
commission shall conduct
these lotteries only
through video
lottery sales agents that
were permit holders that conducted live
horseracing
meetings continuing since calendar year 2003, and
only at tracks
operated by one or more video lottery
sales
agents. If, on
the effective date of
this section, more
than
one
permit holder
conducted horseracing
meetings at a track
during
the previous
calendar
year, the permit
holders shall
designate,
by a written
agreement,
one permit
holder, or a
person or entity
owning or
owned by one
or more
permit
holders, as the video
lottery
sales agent for
that
track. The
agreement shall be filed
with
the commission prior to
the
issuance of a video
lottery
sales agent license and
shall not
be modified without the
consent of the commission.
Sec. 3770.23. A video lottery terminal shall be
connected
to the central communications system. The
state lottery
commission
shall evaluate and
approve both the
hardware of a
video
lottery terminal and the
software that
is used to
operate the video lottery
terminal. The commission shall contract
with an independent testing laboratory to ensure that the video
lottery terminals operate in full compliance with all rules and
regulations. The commission
shall
not
approve a video lottery
terminal unless the
software that
is used to operate the video
lottery terminal
will provide to
participants a projected
average return of more
than
eighty-five per
cent during the
expected lifetime of the video lottery terminal using standard
methods of probability theory.
Except as provided in the agreement required by section
3770.26 of the Revised Code, the number, type, denomination, and
location of video lottery terminals at a track shall be agreed
upon between the agent and the commission. Not more than sixty per
cent of the
video lottery terminals operated by the commission
at the
track of a video lottery sales
agent during the
first
five years of operation shall be manufactured
by the
same
entity.
Sec. 3770.24. (A) The director of the state lottery
commission shall license a permit holder as a video lottery
sales
agent. Each applicant for a license as a video lottery
sales
agent shall do all of the following:
(1) Pay to the commission a nonrefundable application fee of
one hundred thousand
dollars;
(2) Present proof, in the form required by the director, that
the applicant is a permit holder;
(3) Prior to the approval of the application, obtain a letter
of credit, or a surety, or, if required by the director, a
fidelity
bond, in an amount to be determined by the director, but
not more than two million dollars. The bond may be with
any
company
that complies with the bonding and surety laws of
this
state and
the requirements established by rules of the
commission
under
section 3770.03 of the Revised Code.
(B) A video lottery sales agent license is effective
for
ten years. A video lottery sales agent, on or before
the date
established by the director, shall renew the agent's
license and
the agreement required by section 3770.26 of the
Revised Code,
and provide evidence that the agent is a current
permit holder
and has renewed the letter of credit, surety, or
bond
required
by this section.
A video lottery sales agent may only transfer the agent's
video lottery sales license with the consent of the commission.
(C) Any violation of this chapter, or of any rule adopted
under it, is sufficient reason for the commission to refuse to
issue a license, or for the commission to suspend or revoke any
license issued, under this section.
With respect to the issuance, refusal, suspension, or
revocation of a license under this section, the action of the
commission is subject to Chapter 119. of the Revised Code.
Sec. 3770.25. The relationship between the state lottery
commission and a video lottery sales agent is one of trust. A
video lottery sales agent collects funds on behalf of the
commission through the sale of lottery products
for which the
agent receives a commission.
A video lottery sales agent may provide value
credits
to
its customers as authorized by rule of the state
lottery
commission to promote and advertise the use of video
lottery
terminals.
Sec. 3770.26. (A) The state lottery commission shall execute
an agreement with each video lottery sales agent. Each
agreement
and renewed agreement shall provide all of the
following:
(1) That fifty per cent of the gross
proceeds of the
lotteries conducted under section 3770.22 of the
Revised Code
shall be paid as a commission to the agent for
services and
personnel provided under section 3770.28 of the
Revised Code by
the agent for the lotteries and for the provision,
maintenance,
and
repair of the buildings and grounds at the track
where the
video lottery terminals are
located and that the remaining fifty
per cent of the gross proceeds shall be retained by the state;
(2) That the agent shall give to the commission a written
schedule that lists the installed cost of all fixtures and
equipment supplied by the agent to assist the commission in
conducting lotteries under section 3770.22 of the Revised Code;
(3) That not more
than two thousand five hundred video
lottery terminals shall be
placed at each track,
without a
determination
by the director of the
state
lottery
commission
that the number
of devices is consistent
with
the
purposes of
this chapter and
has been requested by the
agent;
(4) That the agent shall do all of the following:
(a) Set a goal to award not less than fifty per cent of the
contracts related to the provision, maintenance, and repair under
division (B) of section 3770.28 of the Revised Code of necessary
capital improvements for the facilities at the track at which
video lottery terminals are located to, and
make a good faith
effort to see that not less than fifty per cent
of the
subcontracts of those contracts are awarded to, Ohio-based
businesses;
(b) Make a good faith effort to see that not less than five
per cent of the subcontracts described in division (A)(5)(a) of
this section are awarded to Ohio-based businesses that are EDGE
business enterprises in accordance with executive order 2008-13S;
(c) Set a goal that not less than fifty per cent of the key
video lottery employees and other personnel employed under
division (C)
of section 3770.28 of the Revised Code to
perform
duties
to implement sections 3770.21 to 3770.30 of the
Revised
Code are residents of the county where the track is
located or of
a
county adjacent to that
county.
(5) That, not later than one year after the initial
implementation of sections 3770.21 to 3770.30 of the Revised Code
and annually thereafter, the agent shall report to the commission
on its efforts to comply with divisions (A)(4)(a) and (d) of this
section;
(6) That within five years after commencing operation of
the
lotteries conducted under section 3770.22 of the Revised Code,
the agent shall make not less than eighty million
dollars in
improvements to the buildings and grounds at the track
where the
video lottery terminals are located, including temporary
facilities, with not less than twenty
million dollars in
improvements to the buildings and grounds at
the track being made
within the first year. All improvements are subject to review by
the commission.
(B) The term of the agreement shall not exceed ten years and
shall not be terminated by the parties during its term, except for
breach of a provision of the agreement, or suspension or
revocation of a video lottery sales agent's license issued
under
section 3770.24 of the Revised Code or of a permit issued
under
Chapter 3769. of the Revised Code. The video lottery
sales agent
shall have exclusive rights to conduct lotteries
through the use
of video lottery terminals during the term of
the agreement. If
the
commission
intends
to terminate or not renew an agreement,
it
shall provide
the agent
with an opportunity for an
adjudication
under Chapter
119. of the
Revised Code.
Sec. 3770.261. (A) The agreement between the state lottery
commission and each video lottery sales agent shall provide
that
a one-time
licensing fee equal to sixty-five million dollars
shall be
paid by
the agent to the commission, with thirteen
million dollars to
be paid on September
15, 2009, thirteen
million dollars to be paid
on December 15,
2009, thirteen
million
dollars to be paid on
March 15, 2010, thirteen million
dollars
to
be paid on June 15, 2010, and thirteen million
dollars to be paid on
September 15, 2010.
(B) Video
lottery sales agents shall file with the
commission all documents relating to their
borrowing or financing
of video lottery terminal licensing fees
stating the date at
which the borrowing or financing is
retired.
Sec. 3770.262. (A) The state lottery commission may charge
fees to persons applying for a contract as a vendor, retailer, or
lessor of video lottery terminals. The fees shall be reasonably
calculated to cover the costs of processing applications.
(B) If the state lottery commission determines the
certification standards of another state are comprehensive,
thorough, and provide adequate safeguards, the commission may
certify an applicant without the necessity of a full
investigation.
Sec. 3770.263. (A) There is hereby created the video lottery
study council consisting of five members. The speaker of the house
of representatives shall appoint to the council two members of the
house of representatives, the president of the senate shall
appoint to the council two members of the senate, and the governor
shall appoint to the council one member. Members of the council
shall serve at the pleasure of their appointing authority, and
shall serve without compensation, but shall be reimbursed for
actual and necessary expenses incurred in the performance of their
duties.
(B) The council shall do all of the following:
(1) Make an impartial review of all laws governing the
operation and administration of video lottery gaming and recommend
to the general assembly any changes it may find desirable with
respect to the language, structure, and organization of those
laws;
(2) Make an annual report to the governor and the general
assembly with respect to the operation and administration of video
lottery gaming; and
(3) Study all proposed changes in the laws governing the
operation and administration of video lottery gaming and report to
the general assembly on their desirability as a matter of public
policy.
Sec. 3770.27. In conducting lotteries under section 3770.22
of the Revised Code, the director of the state lottery commission
shall do all of
the following:
(A) Approve, qualify, certify, purchase or lease, install,
maintain,
repair, replace, and operate all video lottery
terminals,
associated equipment, and intellectual property
necessary for the
conduct of the lotteries. At the commencement
of operations the
video lottery terminals shall be new,
state-of-the-art
video lottery terminals. Thereafter, the
video
lottery
sales agent has the right to request that
underperforming
video lottery terminals be removed and
replaced
with better
performing video lottery terminals.
(B) Procure, install, establish, maintain, repair, replace,
and operate the central communications system that provides
security, auditing, and data and information retrieval as
determined necessary by the commission, that is compatible with
all video lottery terminal manufacturers,
distributors,
suppliers, and providers, and that uses a gaming standards
association communications protocol. The central communications
system provider shall upgrade the protocol to the latest standards
at the request of the commission. The central communications
system
shall be
online and in communication with
computers,
video
lottery terminals, and associated equipment
located at the
tracks
of video
lottery sales agents.
(C) Select, qualify, certify, retain, pay, and terminate all
contractors, suppliers, service companies, and vendors of the
commission necessary for the conduct of lotteries under section
3770.22 of the Revised Code, including those persons that provide
video lottery terminals, associated equipment, and the central
communications system;
(D) Establish standards for the daily payment on business
days, by a video lottery sales agent through electronic
transfer
or
other system mandated by the director, of the gross
proceeds
of
lotteries conducted under section 3770.22 of the
Revised
Code,
less the commission paid to the
video lottery
sales
agent
under division
(A)(1) of
section 3770.26 of the
Revised Code;
(E) Review advertising and promotion of the lottery and
levels thereof. The
commission may approve or disapprove of any
advertising and
promotion, but approval shall not be unreasonably
withheld.
Sec. 3770.28. In assisting the state lottery commission with
the conduct of lottery games under
section 3770.22 of the Revised
Code, a video lottery sales agent shall do all of the
following:
(A) Promptly
report to the
video
lottery terminal
manufacturer
and the
commission any
malfunctions of
the
devices, or failures
of the
manufacturers
or service
technicians to promptly service
and
repair the
devices or
associated equipment;
(B) Provide, maintain, and repair necessary capital
improvements for the facilities at the track
at which video
lottery terminals are located;
(C) Hire and compensate adequate personnel to ensure
compliance with the provisions of this chapter relating to the
operation of video lottery terminals, including sufficient
security
personnel to protect and secure the video lottery
terminals and
associated equipment, and the track at which
the
video lottery terminals are
located;
(D) By electronic transfer or other system mandated by the
director of the state lottery commission, transfer or deliver
daily on business days to the
commission the gross
proceeds of
lotteries conducted under
section 3770.22 of the
Revised Code,
less the commission paid to
the agent under division
(A)(1) of
section
3770.26 of the
Revised Code;
(E) Deliver payment to
winning participants of prizes
awarded
by lotteries
conducted by the commission through
video
lottery
terminals at the track.
Sec. 3770.29. (A) The conduct of lotteries and the operation
of video lottery terminals at tracks
under section 3770.22 of
the
Revised Code shall not be deemed to
change the character of
the
use of the tracks under any county,
municipal, or township
land
use regulation, ordinance, or
agreement.
(B) No license or excise tax or fee shall be assessed upon or
collected from a video lottery sales agent by any county,
township, municipal corporation, school district, or other
political subdivision of the state that has the authority to
assess or collect a tax or fee, by reason of the conduct of
lotteries at tracks under section 3770.22
of the Revised Code.
This division does not prohibit the imposition of taxes under
Chapter 718. or 3769. of the Revised Code.
Sec. 3770.30. Sections 3770.21 to 3770.30 of the Revised Code
do not modify the authority of the state racing commission to
regulate horse racing in accordance with Chapter 3769. of the
Revised Code or, except as provided in sections 3770.21 to 3770.30
of the Revised Code, the rights and responsibilities of permit
holders under that chapter.
Sec. 3770.31. (A) The supreme court shall have exclusive,
original jurisdiction in all cases that challenge the
constitutionality of sections 3770.21 to 3770.31 of the Revised
Code or the relevant portions of any related sections.
(B) Any action challenging the constitutionality of sections
3770.21 to 3770.31 of the Revised Code or the relevant portions of
any related section shall be commenced within ninety days after
the effective date of those sections.
Sec. 4301.03. The liquor control commission may adopt and
promulgate, repeal, rescind, and amend, in the manner required by
this section, rules, standards, requirements, and orders
necessary
to carry out
this chapter and
Chapter 4303. of the
Revised
Code,
but all rules of the board of liquor control
that
were in
effect
immediately prior to April 17, 1963, shall remain
in full
force
and effect as rules of the liquor control commission
until
and
unless amended or repealed by the liquor control
commission.
The
rules of the commission may include the
following:
(A) Rules with reference to applications for and the
issuance
of permits for the manufacture, distribution,
transportation, and
sale of beer and intoxicating liquor, and the
sale of alcohol; and
rules governing the procedure of the
division
of liquor control in
the suspension, revocation,
and
cancellation
of
those permits;
(B) Rules and orders providing in detail for the conduct
of
any retail business authorized under permits issued pursuant
to
this chapter and Chapter 4303. of the Revised Code,
with a view to
ensuring compliance with
those chapters and
laws relative
to
them,
and the maintenance of public
decency, sobriety, and good
order in
any place licensed under
the
permits. No rule or order
shall
prohibit the sale of
lottery
tickets products issued pursuant to
Chapter 3770. of the Revised
Code by
any
retail business
authorized under permits issued
pursuant to
that
chapter.
No rule or order shall prohibit pari-mutuel wagering on
simulcast horse races
at a satellite facility that has been issued
a D liquor permit under Chapter
4303. of the Revised Code. No
rule
or order shall prohibit a
charitable organization that holds
a D-4
permit from selling or
serving beer or intoxicating liquor
under
its permit in a portion
of its premises merely because that
portion of its premises is
used at other times for the conduct of
a bingo game, as described in division (S) of section 2915.01 of
the Revised Code. However, such
an organization shall not
sell or
serve beer or
intoxicating liquor or permit beer or
intoxicating
liquor to be
consumed or seen in the same location in
its premises
where a
bingo game, as described in division (S)(1) of section
2915.01 of the Revised Code, is being conducted
while the game is
being
conducted. As used in this division,
"charitable
organization"
has the same meaning as in division (H)
of section
2915.01
of the Revised Code.
No
rule or order
pertaining to
visibility into
the premises of a
permit holder
after the legal
hours of sale
shall be adopted or
maintained by
the commission.
(C) Standards, not in conflict with those prescribed by
any
law of this state or the United States, to secure the use of
proper ingredients and methods in the manufacture of beer,
mixed
beverages, and wine to be sold within this state;
(D) Rules determining the nature, form, and capacity of
all
packages and bottles to be used for containing beer or
intoxicating liquor, except for spirituous liquor to be kept or
sold, governing the form of all seals and labels to be used
on
those packages and bottles,
and requiring the label on
every
package, bottle, and
container to state the ingredients in
the
contents and, except on
beer, the terms of
weight, volume, or
proof spirits, and
whether the same is beer,
wine, alcohol, or any
intoxicating
liquor except for spirituous
liquor;
(E) Uniform rules governing all advertising with reference
to
the sale of beer and intoxicating liquor throughout the state
and
advertising upon and in the premises licensed for the sale of
beer
or intoxicating liquor;
(F) Rules restricting and placing conditions upon the
transfer of permits;
(G) Rules and orders limiting the number of permits of any
class within the state or within any political subdivision of the
state; and, for
that purpose, adopting reasonable
classifications
of
persons or establishments to which any
authorized class of
permits
may be issued within any
political subdivision;
(H) Rules and orders with reference to sales of beer and
intoxicating liquor on Sundays and holidays and with reference to
the hours of the day during which and the persons to whom
intoxicating liquor of any class may be sold, and rules with
reference to the manner of sale;
(I) Rules requiring permit holders buying beer
to pay and
permit holders selling beer
to collect minimum cash deposits for
kegs, cases,
bottles, or other returnable containers of
the beer;
requiring the repayment, or credit, of
the minimum cash
deposit
charges upon the return of
the empty
containers; and
requiring
the
posting of such form of indemnity
or such other
conditions
with
respect to the charging,
collection,
and repayment
of minimum
cash
deposit charges for
returnable
containers of beer
as are
necessary
to ensure
the return of
the empty containers or
the
repayment upon
that return of the minimum cash deposits
paid;
(J) Rules establishing the method by which alcohol
products
may be imported for sale by wholesale distributors and
the method
by which manufacturers and suppliers may sell alcohol
products to
wholesale distributors.
Every rule, standard, requirement, or order of the
commission
and every repeal, amendment, or rescission
of
them shall be
posted
for public inspection in the principal office
of
the
commission
and the principal office of the division of
liquor
control, and a
certified copy
of them shall be
filed in the
office of the
secretary of state. An order applying
only to
persons named
in it
shall be served on the persons
affected by
personal delivery of a
certified copy, or by mailing
a
certified
copy to each person
affected
by it or,
in the case of a
corporation, to any officer or
agent
of
the
corporation upon whom
a
service of summons may be
served in a
civil action. The posting
and filing required by this
section
constitutes sufficient notice
to all persons affected by
such rule
or order which is not
required to be served. General
rules of the
commission
promulgated pursuant to this section shall
be published
in
the
manner
the commission determines.
Section 2. That existing sections 3770.02, 3770.03, 3770.05,
3770.06,
3770.07, 3770.08, and 4301.03 of the Revised Code are
hereby repealed.
Section 3. A video lottery sales agent shall set a
goal to
award not less than ten per cent of the
contracts
described in
division (A)(5)(a) of section 3770.26 of the Revised
Code to
Ohio-based businesses that are minority business
enterprises in
accordance with Executive Order 2008-13S.
Section 4. Notwithstanding sections 3769.04 and 3769.13
of
the Revised Code, for a period of two years after the effective
date of this section, a permit holder who is located on property
owned by a political subdivision and who is eligible to become an
electronic lottery sales agent may move its track to another
location in a contiguous county that is within fifty miles of its
current location for any reason and without the application or
petition otherwise required by those sections. That permit holder
may operate as an electronic lottery sales agent at a temporary
facility at its new location while constructing or otherwise
preparing its new track at that location. However, that permit
holder may not move its track into a contiguous county in which a
permit holder who is eligible to become an electronic lottery
sales agent already is located on the effective date of this
section.
As used in this section, "permit holder," "electronic lottery
sales agent," and "track" have the same meanings as in section
3770.21 of the Revised Code.
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