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Sub. H. B. No. 277 As Passed by the SenateAs Passed by the Senate
129th General Assembly | Regular Session | 2011-2012 |
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Representatives Blessing, Gerberry
Cosponsors:
Representatives Boyd, Buchy, Driehaus, Hackett, Hagan, R., Henne, Letson, Mallory, Mecklenborg, O'Brien, Ruhl, Sykes, Uecker, Winburn, Yuko
Senators Beagle, Hite, Niehaus, Schiavoni, Seitz
A BILL
To amend sections 2915.01, 3772.01, 3772.11, 3772,15,
3772.23, 3772.27, 3772.31, 5751.01, and 5753.01
and to enact section 3772.34 of the Revised Code
to make changes to the Casino Law, to make changes
to skill-based amusement machine prizes, and to
permit a horse-racing permit holder who is
eligible to become a video lottery sales agent to
apply to the State Racing Commission to move its
track to another location, and to permit, under
certain circumstances for two years, applications
to conduct horse-racing meetings at locations
where the meetings were not previously conducted.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 2915.01, 3772.01, 3772.11, 3772.15,
3772.23, 3772.27, 3772.31, 5751.01, and 5753.01 be amended and
section 3772.34 of the Revised Code be enacted to read as follows:
Sec. 2915.01. As used in this chapter:
(A) "Bookmaking" means the business of receiving or paying
off bets.
(B) "Bet" means the hazarding of anything of value upon the
result of an event, undertaking, or contingency, but does not
include a bona fide business risk.
(C) "Scheme of chance" means a slot machine, lottery, numbers
game, pool conducted for profit, or other scheme in which a
participant gives a valuable consideration for a chance to win a
prize, but does not include bingo, a skill-based amusement
machine, or a pool not conducted for profit.
(D) "Game of chance" means poker, craps, roulette, or other
game in which a player gives anything of value in the hope of
gain, the outcome of which is determined largely by chance, but
does not include bingo.
(E) "Game of chance conducted for profit" means any game of
chance designed to produce income for the person who conducts or
operates the game of chance, but does not include bingo.
(F) "Gambling device" means any of the following:
(1) A book, totalizer, or other equipment for recording bets;
(2) A ticket, token, or other device representing a chance,
share, or interest in a scheme of chance or evidencing a bet;
(3) A deck of cards, dice, gaming table, roulette wheel, slot
machine, or other apparatus designed for use in connection with a
game of chance;
(4) Any equipment, device, apparatus, or paraphernalia
specially designed for gambling purposes;
(5) Bingo supplies sold or otherwise provided, or used, in
violation of this chapter.
(G) "Gambling offense" means any of the following:
(1) A violation of section 2915.02, 2915.03, 2915.04,
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09,
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;
(2) A violation of an existing or former municipal ordinance
or law of this or any other state or the United States
substantially equivalent to any section listed in division (G)(1)
of this section or a violation of section 2915.06 of the Revised
Code as it existed prior to July 1, 1996;
(3) An offense under an existing or former municipal
ordinance or law of this or any other state or the United States,
of which gambling is an element;
(4) A conspiracy or attempt to commit, or complicity in
committing, any offense under division (G)(1), (2), or (3) of this
section.
(H) Except as otherwise provided in this chapter, "charitable
organization" means any tax exempt religious, educational,
veteran's, fraternal, sporting, service, nonprofit medical,
volunteer rescue service, volunteer firefighter's, senior
citizen's, historic railroad educational, youth athletic, amateur
athletic, or youth athletic park organization. An organization is
tax exempt if the organization is, and has received from the
internal revenue service a determination letter that currently is
in effect stating that the organization is, exempt from federal
income taxation under subsection 501(a) and described in
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or
501(c)(19) of the Internal Revenue Code, or if the organization is
a sporting organization that is exempt from federal income
taxation under subsection 501(a) and is described in subsection
501(c)(7) of the Internal Revenue Code. To qualify as a charitable
organization, an organization, except a volunteer rescue service
or volunteer firefighter's organization, shall have been in
continuous existence as such in this state for a period of two
years immediately preceding either the making of an application
for a bingo license under section 2915.08 of the Revised Code or
the conducting of any game of chance as provided in division (D)
of section 2915.02 of the Revised Code. A charitable organization
that is exempt from federal income taxation under subsection
501(a) and described in subsection 501(c)(3) of the Internal
Revenue Code and that is created by a veteran's organization, a
fraternal organization, or a sporting organization does not have
to have been in continuous existence as such in this state for a
period of two years immediately preceding either the making of an
application for a bingo license under section 2915.08 of the
Revised Code or the conducting of any game of chance as provided
in division (D) of section 2915.02 of the Revised Code.
(I) "Religious organization" means any church, body of
communicants, or group that is not organized or operated for
profit and that gathers in common membership for regular worship
and religious observances.
(J) "Educational organization" means any organization within
this state that is not organized for profit, the primary purpose
of which is to educate and develop the capabilities of individuals
through instruction by means of operating or contributing to the
support of a school, academy, college, or university.
(K) "Veteran's organization" means any individual post or
state headquarters of a national veteran's association or an
auxiliary unit of any individual post of a national veteran's
association, which post, state headquarters, or auxiliary unit is
incorporated as a nonprofit corporation and either has received a
letter from the state headquarters of the national veteran's
association indicating that the individual post or auxiliary unit
is in good standing with the national veteran's association or has
received a letter from the national veteran's association
indicating that the state headquarters is in good standing with
the national veteran's association. As used in this division,
"national veteran's association" means any veteran's association
that has been in continuous existence as such for a period of at
least five years and either is incorporated by an act of the
United States congress or has a national dues-paying membership of
at least five thousand persons.
(L) "Volunteer firefighter's organization" means any
organization of volunteer firefighters, as defined in section
146.01 of the Revised Code, that is organized and operated
exclusively to provide financial support for a volunteer fire
department or a volunteer fire company and that is recognized or
ratified by a county, municipal corporation, or township.
(M) "Fraternal organization" means any society, order, state
headquarters, or association within this state, except a college
or high school fraternity, that is not organized for profit, that
is a branch, lodge, or chapter of a national or state
organization, that exists exclusively for the common business or
sodality of its members.
(N) "Volunteer rescue service organization" means any
organization of volunteers organized to function as an emergency
medical service organization, as defined in section 4765.01 of the
Revised Code.
(O) "Service organization" means either of the following:
(1) Any organization, not organized for profit, that is
organized and operated exclusively to provide, or to contribute to
the support of organizations or institutions organized and
operated exclusively to provide, medical and therapeutic services
for persons who are crippled, born with birth defects, or have any
other mental or physical defect or those organized and operated
exclusively to protect, or to contribute to the support of
organizations or institutions organized and operated exclusively
to protect, animals from inhumane treatment or provide immediate
shelter to victims of domestic violence;
(2) Any organization that is described in subsection
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code
and is either a governmental unit or an organization that is tax
exempt under subsection 501(a) and described in subsection
501(c)(3) of the Internal Revenue Code and that is an
organization, not organized for profit, that is organized and
operated primarily to provide, or to contribute to the support of
organizations or institutions organized and operated primarily to
provide, medical and therapeutic services for persons who are
crippled, born with birth defects, or have any other mental or
physical defect.
(P) "Nonprofit medical organization" means either of the
following:
(1) Any organization that has been incorporated as a
nonprofit corporation for at least five years and that has
continuously operated and will be operated exclusively to provide,
or to contribute to the support of organizations or institutions
organized and operated exclusively to provide, hospital, medical,
research, or therapeutic services for the public;
(2) Any organization that is described and qualified under
subsection 501(c)(3) of the Internal Revenue Code, that has been
incorporated as a nonprofit corporation for at least five years,
and that has continuously operated and will be operated primarily
to provide, or to contribute to the support of organizations or
institutions organized and operated primarily to provide,
hospital, medical, research, or therapeutic services for the
public.
(Q) "Senior citizen's organization" means any private
organization, not organized for profit, that is organized and
operated exclusively to provide recreational or social services
for persons who are fifty-five years of age or older and that is
described and qualified under subsection 501(c)(3) of the Internal
Revenue Code.
(R) "Charitable bingo game" means any bingo game described in
division (S)(1) or (2) of this section that is conducted by a
charitable organization that has obtained a license pursuant to
section 2915.08 of the Revised Code and the proceeds of which are
used for a charitable purpose.
(S) "Bingo" means either of the following:
(1) A game with all of the following characteristics:
(a) The participants use bingo cards or sheets, including
paper formats and electronic representation or image formats, that
are divided into twenty-five spaces arranged in five horizontal
and five vertical rows of spaces, with each space, except the
central space, being designated by a combination of a letter and a
number and with the central space being designated as a free
space.
(b) The participants cover the spaces on the bingo cards or
sheets that correspond to combinations of letters and numbers that
are announced by a bingo game operator.
(c) A bingo game operator announces combinations of letters
and numbers that appear on objects that a bingo game operator
selects by chance, either manually or mechanically, from a
receptacle that contains seventy-five objects at the beginning of
each game, each object marked by a different combination of a
letter and a number that corresponds to one of the seventy-five
possible combinations of a letter and a number that can appear on
the bingo cards or sheets.
(d) The winner of the bingo game includes any participant who
properly announces during the interval between the announcements
of letters and numbers as described in division (S)(1)(c) of this
section, that a predetermined and preannounced pattern of spaces
has been covered on a bingo card or sheet being used by the
participant.
(2) Instant bingo, punch boards, and raffles.
(T) "Conduct" means to back, promote, organize, manage, carry
on, sponsor, or prepare for the operation of bingo or a game of
chance.
(U) "Bingo game operator" means any person, except security
personnel, who performs work or labor at the site of bingo,
including, but not limited to, collecting money from participants,
handing out bingo cards or sheets or objects to cover spaces on
bingo cards or sheets, selecting from a receptacle the objects
that contain the combination of letters and numbers that appear on
bingo cards or sheets, calling out the combinations of letters and
numbers, distributing prizes, selling or redeeming instant bingo
tickets or cards, supervising the operation of a punch board,
selling raffle tickets, selecting raffle tickets from a receptacle
and announcing the winning numbers in a raffle, and preparing,
selling, and serving food or beverages.
(V) "Participant" means any person who plays bingo.
(W) "Bingo session" means a period that includes both of the
following:
(1) Not to exceed five continuous hours for the conduct of
one or more games described in division (S)(1) of this section,
instant bingo, and seal cards;
(2) A period for the conduct of instant bingo and seal cards
for not more than two hours before and not more than two hours
after the period described in division (W)(1) of this section.
(X) "Gross receipts" means all money or assets, including
admission fees, that a person receives from bingo without the
deduction of any amounts for prizes paid out or for the expenses
of conducting bingo. "Gross receipts" does not include any money
directly taken in from the sale of food or beverages by a
charitable organization conducting bingo, or by a bona fide
auxiliary unit or society of a charitable organization conducting
bingo, provided all of the following apply:
(1) The auxiliary unit or society has been in existence as a
bona fide auxiliary unit or society of the charitable organization
for at least two years prior to conducting bingo.
(2) The person who purchases the food or beverage receives
nothing of value except the food or beverage and items customarily
received with the purchase of that food or beverage.
(3) The food and beverages are sold at customary and
reasonable prices.
(Y) "Security personnel" includes any person who either is a
sheriff, deputy sheriff, marshal, deputy marshal, township
constable, or member of an organized police department of a
municipal corporation or has successfully completed a peace
officer's training course pursuant to sections 109.71 to 109.79 of
the Revised Code and who is hired to provide security for the
premises on which bingo is conducted.
(Z) "Charitable purpose" means that the net profit of bingo,
other than instant bingo, is used by, or is given, donated, or
otherwise transferred to, any of the following:
(1) Any organization that is described in subsection
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code
and is either a governmental unit or an organization that is tax
exempt under subsection 501(a) and described in subsection
501(c)(3) of the Internal Revenue Code;
(2) A veteran's organization that is a post, chapter, or
organization of veterans, or an auxiliary unit or society of, or a
trust or foundation for, any such post, chapter, or organization
organized in the United States or any of its possessions, at least
seventy-five per cent of the members of which are veterans and
substantially all of the other members of which are individuals
who are spouses, widows, or widowers of veterans, or such
individuals, provided that no part of the net earnings of such
post, chapter, or organization inures to the benefit of any
private shareholder or individual, and further provided that the
net profit is used by the post, chapter, or organization for the
charitable purposes set forth in division (B)(12) of section
5739.02 of the Revised Code, is used for awarding scholarships to
or for attendance at an institution mentioned in division (B)(12)
of section 5739.02 of the Revised Code, is donated to a
governmental agency, or is used for nonprofit youth activities,
the purchase of United States or Ohio flags that are donated to
schools, youth groups, or other bona fide nonprofit organizations,
promotion of patriotism, or disaster relief;
(3) A fraternal organization that has been in continuous
existence in this state for fifteen years and that uses the net
profit exclusively for religious, charitable, scientific,
literary, or educational purposes, or for the prevention of
cruelty to children or animals, if contributions for such use
would qualify as a deductible charitable contribution under
subsection 170 of the Internal Revenue Code;
(4) A volunteer firefighter's organization that uses the net
profit for the purposes set forth in division (L) of this section.
(AA) "Internal Revenue Code" means the "Internal Revenue Code
of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter
amended.
(BB) "Youth athletic organization" means any organization,
not organized for profit, that is organized and operated
exclusively to provide financial support to, or to operate,
athletic activities for persons who are twenty-one years of age or
younger by means of sponsoring, organizing, operating, or
contributing to the support of an athletic team, club, league, or
association.
(CC) "Youth athletic park organization" means any
organization, not organized for profit, that satisfies both of the
following:
(1) It owns, operates, and maintains playing fields that
satisfy both of the following:
(a) The playing fields are used at least one hundred days per
year for athletic activities by one or more organizations, not
organized for profit, each of which is organized and operated
exclusively to provide financial support to, or to operate,
athletic activities for persons who are eighteen years of age or
younger by means of sponsoring, organizing, operating, or
contributing to the support of an athletic team, club, league, or
association.
(b) The playing fields are not used for any profit-making
activity at any time during the year.
(2) It uses the proceeds of bingo it conducts exclusively for
the operation, maintenance, and improvement of its playing fields
of the type described in division (CC)(1) of this section.
(DD) "Amateur athletic organization" means any organization,
not organized for profit, that is organized and operated
exclusively to provide financial support to, or to operate,
athletic activities for persons who are training for amateur
athletic competition that is sanctioned by a national governing
body as defined in the "Amateur Sports Act of 1978," 90 Stat.
3045, 36 U.S.C.A. 373.
(EE) "Bingo supplies" means bingo cards or sheets; instant
bingo tickets or cards; electronic bingo aids; raffle tickets;
punch boards; seal cards; instant bingo ticket dispensers; and
devices for selecting or displaying the combination of bingo
letters and numbers or raffle tickets. Items that are "bingo
supplies" are not gambling devices if sold or otherwise provided,
and used, in accordance with this chapter. For purposes of this
chapter, "bingo supplies" are not to be considered equipment used
to conduct a bingo game.
(FF) "Instant bingo" means a form of bingo that uses folded
or banded tickets or paper cards with perforated break-open tabs,
a face of which is covered or otherwise hidden from view to
conceal a number, letter, or symbol, or set of numbers, letters,
or symbols, some of which have been designated in advance as prize
winners. "Instant bingo" includes seal cards. "Instant bingo" does
not include any device that is activated by the insertion of a
coin, currency, token, or an equivalent, and that contains as one
of its components a video display monitor that is capable of
displaying numbers, letters, symbols, or characters in winning or
losing combinations.
(GG) "Seal card" means a form of instant bingo that uses
instant bingo tickets in conjunction with a board or placard that
contains one or more seals that, when removed or opened, reveal
predesignated winning numbers, letters, or symbols.
(HH) "Raffle" means a form of bingo in which the one or more
prizes are won by one or more persons who have purchased a raffle
ticket. The one or more winners of the raffle are determined by
drawing a ticket stub or other detachable section from a
receptacle containing ticket stubs or detachable sections
corresponding to all tickets sold for the raffle. "Raffle" does
not include the drawing of a ticket stub or other detachable
section of a ticket purchased to attend a professional sporting
event if both of the following apply:
(1) The ticket stub or other detachable section is used to
select the winner of a free prize given away at the professional
sporting event; and
(2) The cost of the ticket is the same as the cost of a
ticket to the professional sporting event on days when no free
prize is given away.
(II) "Punch board" means a board containing a number of holes
or receptacles of uniform size in which are placed, mechanically
and randomly, serially numbered slips of paper that may be punched
or drawn from the hole or receptacle when used in conjunction with
instant bingo. A player may punch or draw the numbered slips of
paper from the holes or receptacles and obtain the prize
established for the game if the number drawn corresponds to a
winning number or, if the punch board includes the use of a seal
card, a potential winning number.
(JJ) "Gross profit" means gross receipts minus the amount
actually expended for the payment of prize awards.
(KK) "Net profit" means gross profit minus expenses.
(LL) "Expenses" means the reasonable amount of gross profit
actually expended for all of the following:
(1) The purchase or lease of bingo supplies;
(2) The annual license fee required under section 2915.08 of
the Revised Code;
(3) Bank fees and service charges for a bingo session or game
account described in section 2915.10 of the Revised Code;
(4) Audits and accounting services;
(7) Hiring security personnel;
(9) Renting premises in which to conduct a bingo session;
(11) Expenses for maintaining and operating a charitable
organization's facilities, including, but not limited to, a post
home, club house, lounge, tavern, or canteen and any grounds
attached to the post home, club house, lounge, tavern, or canteen;
(12) Payment of real property taxes and assessments that are
levied on a premises on which bingo is conducted;
(13) Any other product or service directly related to the
conduct of bingo that is authorized in rules adopted by the
attorney general under division (B)(1) of section 2915.08 of the
Revised Code.
(MM) "Person" has the same meaning as in section 1.59 of the
Revised Code and includes any firm or any other legal entity,
however organized.
(NN) "Revoke" means to void permanently all rights and
privileges of the holder of a license issued under section
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable
gaming license issued by another jurisdiction.
(OO) "Suspend" means to interrupt temporarily all rights and
privileges of the holder of a license issued under section
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable
gaming license issued by another jurisdiction.
(PP) "Distributor" means any person who purchases or obtains
bingo supplies and who does either of the following:
(1) Sells, offers for sale, or otherwise provides or offers
to provide the bingo supplies to another person for use in this
state;
(2) Modifies, converts, adds to, or removes parts from the
bingo supplies to further their promotion or sale for use in this
state.
(QQ) "Manufacturer" means any person who assembles completed
bingo supplies from raw materials, other items, or subparts or who
modifies, converts, adds to, or removes parts from bingo supplies
to further their promotion or sale.
(RR) "Gross annual revenues" means the annual gross receipts
derived from the conduct of bingo described in division (S)(1) of
this section plus the annual net profit derived from the conduct
of bingo described in division (S)(2) of this section.
(SS) "Instant bingo ticket dispenser" means a mechanical
device that dispenses an instant bingo ticket or card as the sole
item of value dispensed and that has the following
characteristics:
(1) It is activated upon the insertion of United States
currency.
(2) It performs no gaming functions.
(3) It does not contain a video display monitor or generate
noise.
(4) It is not capable of displaying any numbers, letters,
symbols, or characters in winning or losing combinations.
(5) It does not simulate or display rolling or spinning
reels.
(6) It is incapable of determining whether a dispensed bingo
ticket or card is a winning or nonwinning ticket or card and
requires a winning ticket or card to be paid by a bingo game
operator.
(7) It may provide accounting and security features to aid in
accounting for the instant bingo tickets or cards it dispenses.
(8) It is not part of an electronic network and is not
interactive.
(TT)(1) "Electronic bingo aid" means an electronic device
used by a participant to monitor bingo cards or sheets purchased
at the time and place of a bingo session and that does all of the
following:
(a) It provides a means for a participant to input numbers
and letters announced by a bingo caller.
(b) It compares the numbers and letters entered by the
participant to the bingo faces previously stored in the memory of
the device.
(c) It identifies a winning bingo pattern.
(2) "Electronic bingo aid" does not include any device into
which a coin, currency, token, or an equivalent is inserted to
activate play.
(UU) "Deal of instant bingo tickets" means a single game of
instant bingo tickets all with the same serial number.
(VV)(1) "Slot machine" means either of the following:
(a) Any mechanical, electronic, video, or digital device that
is capable of accepting anything of value, directly or indirectly,
from or on behalf of a player who gives the thing of value in the
hope of gain;
(b) Any mechanical, electronic, video, or digital device that
is capable of accepting anything of value, directly or indirectly,
from or on behalf of a player to conduct bingo or a scheme or game
of chance.
(2) "Slot machine" does not include a skill-based amusement
machine or an instant bingo ticket dispenser.
(WW) "Net profit from the proceeds of the sale of instant
bingo" means gross profit minus the ordinary, necessary, and
reasonable expense expended for the purchase of instant bingo
supplies.
(XX) "Charitable instant bingo organization" means an
organization that is exempt from federal income taxation under
subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code and is a charitable organization as defined
in this section. A "charitable instant bingo organization" does
not include a charitable organization that is exempt from federal
income taxation under subsection 501(a) and described in
subsection 501(c)(3) of the Internal Revenue Code and that is
created by a veteran's organization, a fraternal organization, or
a sporting organization in regards to bingo conducted or assisted
by a veteran's organization, a fraternal organization, or a
sporting organization pursuant to section 2915.13 of the Revised
Code.
(YY) "Game flare" means the board or placard that accompanies
each deal of instant bingo tickets and that has printed on or
affixed to it the following information for the game:
(1) The name of the game;
(2) The manufacturer's name or distinctive logo;
(5) The prize structure, including the number of winning
instant bingo tickets by denomination and the respective winning
symbol or number combinations for the winning instant bingo
tickets;
(7) The serial number of the game.
(ZZ) "Historic railroad educational organization" means an
organization that is exempt from federal income taxation under
subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code, that owns in fee simple the tracks and the
right-of-way of a historic railroad that the organization restores
or maintains and on which the organization provides excursions as
part of a program to promote tourism and educate visitors
regarding the role of railroad transportation in Ohio history, and
that received as donations from a charitable organization that
holds a license to conduct bingo under this chapter an amount
equal to at least fifty per cent of that licensed charitable
organization's net proceeds from the conduct of bingo during each
of the five years preceding June 30, 2003. "Historic railroad"
means all or a portion of the tracks and right-of-way of a
railroad that was owned and operated by a for-profit common
carrier in this state at any time prior to January 1, 1950.
(AAA)(1) "Skill-based amusement machine" means a mechanical,
video, digital, or electronic device that rewards the player or
players, if at all, only with merchandise prizes or with
redeemable vouchers redeemable only for merchandise prizes,
provided that with respect to rewards for playing the game all of
the following apply:
(a) The wholesale value of a merchandise prize awarded as a
result of the single play of a machine does not exceed ten
dollars;
(b) Redeemable vouchers awarded for any single play of a
machine are not redeemable for a merchandise prize with a
wholesale value of more than ten dollars;
(c) Redeemable vouchers are not redeemable for a merchandise
prize that has a wholesale value of more than ten dollars times
the fewest number of single plays necessary to accrue the
redeemable vouchers required to obtain that prize; and
(d) Any redeemable vouchers or merchandise prizes are
distributed at the site of the skill-based amusement machine at
the time of play.
A card for the purchase of gasoline is a redeemable voucher
for purposes of division (AAA)(1) of this section even if the
skill-based amusement machine for the play of which the card is
awarded is located at a place where gasoline may not be legally
distributed to the public or the card is not redeemable at the
location of, or at the time of playing, the skill-based amusement
machine.
(2) A device shall not be considered a skill-based amusement
machine and shall be considered a slot machine if it pays cash or
one or more of the following apply:
(a) The ability of a player to succeed at the game is
impacted by the number or ratio of prior wins to prior losses of
players playing the game.
(b) Any reward of redeemable vouchers is not based solely on
the player achieving the object of the game or the player's score;
(c) The outcome of the game, or the value of the redeemable
voucher or merchandise prize awarded for winning the game, can be
controlled by a source other than any player playing the game.
(d) The success of any player is or may be determined by a
chance event that cannot be altered by player actions.
(e) The ability of any player to succeed at the game is
determined by game features not visible or known to the player.
(f) The ability of the player to succeed at the game is
impacted by the exercise of a skill that no reasonable player
could exercise.
(3) All of the following apply to any machine that is
operated as described in division (AAA)(1) of this section:
(a) As used in this section, "game" and "play" mean one event
from the initial activation of the machine until the results of
play are determined without payment of additional consideration.
An individual utilizing a machine that involves a single game,
play, contest, competition, or tournament may be awarded
redeemable vouchers or merchandise prizes based on the results of
play.
(b) Advance play for a single game, play, contest,
competition, or tournament participation may be purchased. The
cost of the contest, competition, or tournament participation may
be greater than a single noncontest, competition, or tournament
play.
(c) To the extent that the machine is used in a contest,
competition, or tournament, that contest, competition, or
tournament has a defined starting and ending date and is open to
participants in competition for scoring and ranking results toward
the awarding of redeemable vouchers or merchandise prizes that are
stated prior to the start of the contest, competition, or
tournament.
(4) For purposes of division (AAA)(1) of this section, the
mere presence of a device, such as a pin-setting, ball-releasing,
or scoring mechanism, that does not contribute to or affect the
outcome of the play of the game does not make the device a
skill-based amusement machine.
(BBB) "Merchandise prize" means any item of value, but shall
not include any of the following:
(1) Cash, gift cards, or any equivalent thereof;
(2) Plays on games of chance, state lottery tickets, bingo,
or instant bingo;
(3) Firearms, tobacco, or alcoholic beverages; or
(4) A redeemable voucher that is redeemable for any of the
items listed in division (BBB)(1), (2), or (3) of this section.
(CCC) "Redeemable voucher" means any ticket, token, coupon,
receipt, or other noncash representation of value.
(DDD) "Pool not conducted for profit" means a scheme in which
a participant gives a valuable consideration for a chance to win a
prize and the total amount of consideration wagered is distributed
to a participant or participants.
(EEE) "Sporting organization" means a hunting, fishing, or
trapping organization, other than a college or high school
fraternity or sorority, that is not organized for profit, that is
affiliated with a state or national sporting organization,
including but not limited to, the Ohio league of sportsmen, and
that has been in continuous existence in this state for a period
of three years.
(FFF) "Community action agency" has the same meaning as in
section 122.66 of the Revised Code.
Sec. 3772.01. As used in this chapter:
(A) "Applicant" means any person who applies to the
commission for a license under this chapter.
(B) "Casino control commission fund" means the casino control
commission fund described in Section 6(C)(3)(d) of Article XV,
Ohio Constitution, the money in which shall be used to fund the
commission and its related affairs.
(C) "Casino facility" means a casino facility as defined in
Section 6(C)(9) of Article XV, Ohio Constitution.
(D) "Casino gaming" means any type of slot machine or table
game wagering, using money, casino credit, or any representative
of value, authorized in any of the states of Indiana, Michigan,
Pennsylvania, and West Virginia as of January 1, 2009, and
includes slot machine and table game wagering subsequently
authorized by, but shall not be limited by, subsequent
restrictions placed on such wagering in such states. "Casino
gaming" does not include bingo, as authorized in Section 6 of
Article XV, Ohio Constitution and conducted as of January 1, 2009,
or horse racing where the pari-mutuel system of wagering is
conducted, as authorized under the laws of this state as of
January 1, 2009.
(E) "Casino gaming employee" means any employee of a casino
operator or management company, but not a key employee, and as
further defined in section 3772.131 of the Revised Code.
(F) "Casino operator" means any person, trust, corporation,
partnership, limited partnership, association, limited liability
company, or other business enterprise that directly or indirectly
holds an ownership or leasehold interest in a casino facility.
"Casino operator" does not include an agency of the state, any
political subdivision of the state, any person, trust,
corporation, partnership, limited partnership, association,
limited liability company, or other business enterprise that may
have an interest in a casino facility, but who is legally or
contractually restricted from conducting casino gaming.
(G) "Central system" means a computer system that provides
the following functions related to casino gaming equipment used in
connection with casino gaming authorized under this chapter:
security, auditing, data and information retrieval, and other
purposes deemed necessary and authorized by the commission.
(H) "Commission" means the Ohio casino control commission.
(I) "Gaming agent" means a peace officer employed by the
commission that is vested with duties to enforce this chapter and
conduct other investigations into the conduct of the casino gaming
and the maintenance of the equipment that the commission considers
necessary and proper and is in compliance with section 109.77 of
the Revised Code.
(J) "Gaming-related vendor" means any individual,
partnership, corporation, association, trust, or any other group
of individuals, however organized, who supplies gaming-related
equipment, goods, or services to a casino operator or management
company, that are directly related to or affect casino gaming
authorized under this chapter, including, but not limited to, the
manufacture, sale, distribution, or repair of slot machines and
table game equipment.
(K) "Holding company" means any corporation, firm,
partnership, limited partnership, limited liability company,
trust, or other form of business organization not a natural person
which directly or indirectly owns, has the power or right to
control, or holds with power to vote, any part of an applicant,
casino operator, management company, or gaming-related vendor
license.
(L) "Initial investment" includes costs related to
demolition, engineering, architecture, design, site preparation,
construction, infrastructure improvements, land acquisition,
fixtures and equipment, insurance related to construction, and
leasehold improvements.
(M) "Institutional investor" means any of the following
entities owning one per cent or less, or a percentage between one
and ten per cent as approved by the commission through a waiver on
a case-by-case basis, ownership interest in a casino facility,
casino operator, management company, or holding company: a
corporation, bank, insurance company, pension fund or pension fund
trust, retirement fund, including funds administered by a public
agency, employees' profit-sharing fund or employees'
profit-sharing trust, any association engaged, as a substantial
part of its business or operations, in purchasing or holding
securities, or any trust in respect of which a bank is trustee or
cotrustee, investment company registered under the "Investment
Company Act of 1940," 15 U.S.C. 80a-1 et seq., collective
investment trust organized by banks under Part Nine of the Rules
of the Comptroller of the Currency, closed-end investment trust,
chartered or licensed life insurance company or property and
casualty insurance company, investment advisor registered under
the "Investment Advisors Act of 1940," 15 U.S.C. 80 b-1 et seq.,
and such other persons as the commission may reasonably determine
to qualify as an institutional investor for reasons consistent
with this chapter.
(N) "Key employee" means any executive, employee, or agent of
a casino operator or management company licensee having the power
to exercise significant influence over decisions concerning any
part of the operation of such licensee, including:
(1) An officer, director, trustee, or partner of a person
that has applied for or holds a casino operator, management
company, or gaming-related vendor license or of a holding company
that has control of a person that has applied for or holds a
casino operator, management company, or gaming-related vendor
license;
(2) A person that holds a direct or indirect ownership
interest of more than one per cent in a person that has applied
for or holds a casino operator, management company, or
gaming-related vendor license or holding company that has control
of a person that has applied for or holds a casino operator,
management company, or gaming-related vendor license;
(3) A managerial employee of a person that has applied for or
holds a casino operator or gaming-related vendor license in Ohio,
or a managerial employee of a holding company that has control of
a person that has applied for or holds a casino operator or
gaming-related vendor license in Ohio, who performs the function
of principal executive officer, principal operating officer,
principal accounting officer, or an equivalent officer or other
person the commission determines to have the power to exercise
significant influence over decisions concerning any part of the
operation of such licensee.
The commission shall determine whether an individual whose
duties or status varies from those described in this division also
is considered a key employee.
(O) "Licensed casino operator" means a casino operator that
has been issued a license by the commission and that has been
certified annually by the commission to have paid all applicable
fees, taxes, and debts to the state.
(P) "Majority ownership interest" in a license or in a casino
facility, as the case may be, means ownership of more than fifty
per cent of such license or casino facility, as the case may be.
For purposes of the foregoing, whether a majority ownership
interest is held in a license or in a casino facility, as the case
may be, shall be determined under the rules for constructive
ownership of stock provided in Treas. Reg. 1.409A-3(i)(5)(iii) as
in effect on January 1, 2009.
(Q) "Management company" means an organization retained by a
casino operator to manage a casino facility and provide services
such as accounting, general administration, maintenance,
recruitment, and other operational services.
(R) "Ohio law enforcement training fund" means the state law
enforcement training fund described in Section 6(C)(3)(f) of
Article XV, Ohio Constitution, the money in which shall be used to
enhance public safety by providing additional training
opportunities to the law enforcement community.
(S) "Person" includes, but is not limited to, an individual
or a combination of individuals; a sole proprietorship, a firm, a
company, a joint venture, a partnership of any type, a joint-stock
company, a corporation of any type, a corporate subsidiary of any
type, a limited liability company, a business trust, or any other
business entity or organization; an assignee; a receiver; a
trustee in bankruptcy; an unincorporated association, club,
society, or other unincorporated entity or organization; entities
that are disregarded for federal income tax purposes; and any
other nongovernmental, artificial, legal entity that is capable of
engaging in business.
(T) "Problem casino gambling and addictions fund" means the
state problem gambling and addictions fund described in Section
6(C)(3)(g) of Article XV, Ohio Constitution, the money in which
shall be used for treatment of problem gambling and substance
abuse, and for related research.
(U) "Promotional gaming credit" means a slot machine or table
game credit, discount, or other similar item issued to a patron to
enable the placement of, or increase in, a wager at a slot machine
or table game.
(V) "Slot machine" means any mechanical, electrical, or other
device or machine which, upon insertion of a coin, token, ticket,
or similar object, or upon payment of any consideration, is
available to play or operate, the play or operation of which,
whether by reason of the skill of the operator or application of
the element of chance, or both, makes individual prize
determinations for individual participants in cash, premiums,
merchandise, tokens, or any thing of value, whether the payoff is
made automatically from the machine or in any other manner.
(V)(W) "Table game" means any game played with cards, dice,
or any mechanical, electromechanical, or electronic device or
machine for money, casino credit, or any representative of value.
"Table game" does not include slot machines.
(W)(X) "Upfront license" means the first plenary license
issued to a casino operator.
(X)(Y) "Voluntary exclusion program" means a program provided
by the commission that allows persons to voluntarily exclude
themselves from the gaming areas of facilities under the
jurisdiction of the commission by placing their name on a
voluntary exclusion list and following the procedures set forth by
the commission.
Sec. 3772.11. (A) A person may apply to the commission for a
casino operator, management company, or holding company license to
conduct casino gaming at a casino facility as provided in this
chapter. The application shall be made under oath on forms
provided by the commission and shall contain information as
prescribed by rule, including, but not limited to, all of the
following:
(1) The name, business address, business telephone number,
social security number, and, where applicable, the federal tax
identification number of any applicant;
(2) The identity of every person having a greater than five
per cent direct or indirect interest in the applicant casino
facility for which the license is sought for publicly traded
companies or greater than three per cent for privately held
companies;
(3) An identification of any business, including the state of
incorporation or registration if applicable, in which an
applicant, or the spouse or children of an applicant, has an
equity interest of more than five per cent;
(4) The name of any casino operator, management company,
holding company, and gaming-related vendor in which the applicant
has an equity interest of at least five per cent;
(5) If an applicant has ever applied for or has been granted
any gaming license or certificate issued by a licensing authority
in Ohio or any other jurisdiction that has been denied,
restricted, suspended, revoked, or not renewed and a statement
describing the facts and circumstances concerning the application,
denial, restriction, suspension, revocation, or nonrenewal,
including the licensing authority, the date each action was taken,
and the reason for each action;
(6) If an applicant has ever filed or had filed against it a
civil or administrative action or proceeding in bankruptcy,
including the date of filing, the name and location of the court,
the case caption, the docket number, and the disposition;
(7) The name and business telephone number of any attorney
representing an applicant in matters before the commission;
(8) Information concerning the amount, type of tax, the
taxing agency, and times involved, if the applicant has filed or
been served with a complaint or notice filed with a public body
concerning a delinquency in the payment of or a dispute over a
filing concerning the payment of a tax required under federal,
state, or local law;
(9) A description of any proposed casino gaming operation and
related casino enterprises, including the type of casino facility,
location, expected economic benefit to the community, anticipated
or actual number of employees, any statement from an applicant
regarding compliance with federal and state affirmative action
guidelines, projected or actual admissions, projected or actual
gross receipts, and scientific market research;
(10) Financial information in the manner and form prescribed
by the commission;
(11) If an applicant has directly made a political
contribution, loan, donation, or other payment of one hundred
dollars or more to a statewide office holder, a member of the
general assembly, a local government official elected in a
jurisdiction where a casino facility is located, or a ballot issue
not more than one year before the date the applicant filed the
application and all information relating to the contribution,
loan, donation, or other payment;
(12) Any criminal conviction; and
(13) Other information required by the commission under rules
adopted by the commission.
(B) Any holding company or management company, its directors,
executive officers, members, managers, and any shareholder who
holds more than five per cent ownership interest of a holding
company or management company shall be required to submit the same
information as required by an applicant under this section.
Sec. 3772.15. (A) Unless a license issued under this chapter
is suspended, expires, or is revoked, the license shall be renewed
for not more than three years, as determined by commission rule,
after a determination by the commission that the licensee is in
compliance with this chapter and rules authorized by this chapter
and after the licensee pays a fee.
The commission may assess the
license renewal applicant a reasonable fee in the amount necessary
to cover the commission's costs associated with the review of the
license renewal application.
(B) A licensee shall undergo a complete investigation at
least every three years, as determined by commission rule, to
determine that the licensee remains in compliance with this
chapter.
(C) Notwithstanding division (B) of this section, the
commission may investigate a licensee at any time the commission
determines it is necessary to ensure that the licensee remains in
compliance with this section.
(D) The holder of a license shall bear the cost of an
investigation, except key employees and casino gaming employees
who are employed by a casino operator, in which case the casino
operator shall pay the investigation cost.
Sec. 3772.23. (A) All tokens, chips, or electronic cards that
are used to make wagers shall be purchased from the casino
operator or management company while at a casino facility that has
been approved by the commission. Chips, tokens, tickets,
electronic cards, or similar objects may be used while at the
casino facility only for the purpose of making wagers on casino
games.
(B) Casino operators and management companies may provide
promotional gaming credits to their patrons. Promotional gaming
credits shall be subject to oversight by the commission.
(C) Casino operators and management companies shall not do
any of the following:
(1) Obtain a license to operate a check-cashing business
under sections 1315.01 to 1315.30 of the Revised Code;
(2) Obtain a license to provide loans under sections 1321.01
to 1321.19 of the Revised Code;
(3) Obtain a license to provide loans under sections 1321.35
to 1321.48 of the Revised Code.
Sec. 3772.27. (A) Each initial licensed casino operator of
each of the four casino facilities shall make an initial
investment of at least two hundred fifty million dollars for the
development of each casino facility.
(B) If a casino operator has made an initial investment of at
least one hundred twenty-five million dollars at the time a
license is issued, the casino operator shall spend the remainder
of the minimum two-hundred-fifty-million-dollar total required
initial investment within thirty-six months after the issuance of
that license. If a casino operator who has opened an initial
location is making substantial progress, as determined by the
commission, on a substitute casino facility on constitutionally
approved parcels within the same city, the commission shall
include amounts spent by the casino operator to develop such
parcels, and shall grant an additional thirty-six-month extension
to the casino operator who is developing on such parcels. The
commission, upon the request of the casino operator, may also
approve up to twenty-four months of transitional operations by the
casino operator on multiple noncontiguous constitutionally
approved parcels while transitioning from the initial location to
the new facility, provided such facilities are connected by
property and structures, owned, leased, or under the exclusive
control of the casino operator.
(C) A licensed casino operator may open a casino facility in
phases and may have gaming areas in one or more buildings,
facilities, rooms, or areas that together constitute a single
casino facility within the boundaries of one or more of the
properties described in Section 6(C)(9) of Article XV, Ohio
Constitution, and, if located on more than one of those
properties, is connected by one or more of the following:
(1) Property owned by the casino operator or any of its
affiliates;
(2) Property leased by the casino operator or any of its
affiliates;
(3) Access over property under the right of the casino
operator or any of its affiliates, whether it be by skyways,
walkways, roadways, easements, or rights of way;
Sec. 3772.31. (A) The commission, by and through the
executive director of the commission and as required under section
125.05 of the Revised Code, may enter into contracts necessary to
ensure the proper operation and reporting of all casino gaming
authorized under this chapter. The commission may determine it to
be necessary and adopt rules to authorize shall not require use of
a central system by a casino operator if the casino operator is in
compliance with this chapter. If the commission determines, after
written notice to the casino operator and a hearing under section
3772.04 of the Revised Code, that a casino operator is not in
compliance with this chapter, the commission may determine it is
necessary to require the casino operator to install and implement
a central system under such conditions as the commission may
require. Before any such hearing, the commission shall provide the
casino operator with written notice that the casino operator is
not in compliance with a specific requirement of this chapter,
describe the requirement, and provide the casino operator at least
thirty days to cure the noncompliance or, if the cure cannot be
reasonably rectified within thirty days, require the casino
operator to demonstrate to the commission's satisfaction that the
casino operator is diligently pursuing the required cure. The
system shall be operated by or under the commission's control. If
the commission determines that a central system is necessary and
adopts rules authorizing a central system, casino operators shall
be responsible for the costs of the central system as it relates
to casino facilities.
(B) The commission shall certify independent testing
laboratories to scientifically test and technically evaluate all
slot machines, mechanical, electromechanical, or electronic table
games, slot accounting systems, and other electronic gaming
equipment for compliance with this chapter. The certified
independent testing laboratories shall be accredited by a national
accreditation body. The commission shall certify an independent
testing laboratory if it is competent and qualified to
scientifically test and evaluate electronic gaming equipment for
compliance with this chapter and to otherwise perform the
functions assigned to an independent testing laboratory under this
chapter. An independent testing laboratory shall not be owned or
controlled by, or have any interest in, a gaming-related vendor of
electronic gaming equipment. The commission shall prepare a list
of certified independent testing laboratories from which
independent testing laboratories shall be chosen for all purposes
under this chapter.
Sec. 3772.34. There is hereby created in the state treasury
the casino operator settlement fund. The fund shall receive any
money paid to the state by the operators of casino facilities in
excess of any licenses or fees provided by this chapter or by
Section 6(C) of Article XV, Ohio Constitution, and in excess of
any taxes as provided by Title LVII of the Revised Code. Moneys in
the fund may be used for activities related to workforce
development, economic development, job creation, training,
education, food banks, and expenses.
Sec. 5751.01. As used in this chapter:
(A) "Person" means, but is not limited to, individuals,
combinations of individuals of any form, receivers, assignees,
trustees in bankruptcy, firms, companies, joint-stock companies,
business trusts, estates, partnerships, limited liability
partnerships, limited liability companies, associations, joint
ventures, clubs, societies, for-profit corporations, S
corporations, qualified subchapter S subsidiaries, qualified
subchapter S trusts, trusts, entities that are disregarded for
federal income tax purposes, and any other entities.
(B) "Consolidated elected taxpayer" means a group of two or
more persons treated as a single taxpayer for purposes of this
chapter as the result of an election made under section 5751.011
of the Revised Code.
(C) "Combined taxpayer" means a group of two or more persons
treated as a single taxpayer for purposes of this chapter under
section 5751.012 of the Revised Code.
(D) "Taxpayer" means any person, or any group of persons in
the case of a consolidated elected taxpayer or combined taxpayer
treated as one taxpayer, required to register or pay tax under
this chapter. "Taxpayer" does not include excluded persons.
(E) "Excluded person" means any of the following:
(1) Any person with not more than one hundred fifty thousand
dollars of taxable gross receipts during the calendar year.
Division (E)(1) of this section does not apply to a person that is
a member of a consolidated elected taxpayer;
(2) A public utility that paid the excise tax imposed by
section 5727.24 or 5727.30 of the Revised Code based on one or
more measurement periods that include the entire tax period under
this chapter, except that a public utility that is a combined
company is a taxpayer with regard to the following gross receipts:
(a) Taxable gross receipts directly attributed to a public
utility activity, but not directly attributed to an activity that
is subject to the excise tax imposed by section 5727.24 or 5727.30
of the Revised Code;
(b) Taxable gross receipts that cannot be directly attributed
to any activity, multiplied by a fraction whose numerator is the
taxable gross receipts described in division (E)(2)(a) of this
section and whose denominator is the total taxable gross receipts
that can be directly attributed to any activity;
(c) Except for any differences resulting from the use of an
accrual basis method of accounting for purposes of determining
gross receipts under this chapter and the use of the cash basis
method of accounting for purposes of determining gross receipts
under section 5727.24 of the Revised Code, the gross receipts
directly attributed to the activity of a natural gas company shall
be determined in a manner consistent with division (D) of section
5727.03 of the Revised Code.
As used in division (E)(2) of this section, "combined
company" and "public utility" have the same meanings as in section
5727.01 of the Revised Code.
(3) A financial institution, as defined in section 5725.01 of
the Revised Code, that paid the corporation franchise tax charged
by division (D) of section 5733.06 of the Revised Code based on
one or more taxable years that include the entire tax period under
this chapter;
(4) A dealer in intangibles, as defined in section 5725.01 of
the Revised Code, that paid the dealer in intangibles tax levied
by division (D) of section 5707.03 of the Revised Code based on
one or more measurement periods that include the entire tax period
under this chapter;
(5) A financial holding company as defined in the "Bank
Holding Company Act," 12 U.S.C. 1841(p);
(6) A bank holding company as defined in the "Bank Holding
Company Act," 12 U.S.C. 1841(a);
(7) A savings and loan holding company as defined in the
"Home Owners Loan Act," 12 U.S.C. 1467a(a)(1)(D) that is engaging
only in activities or investments permissible for a financial
holding company under 12 U.S.C. 1843(k);
(8) A person directly or indirectly owned by one or more
financial institutions, financial holding companies, bank holding
companies, or savings and loan holding companies described in
division (E)(3), (5), (6), or (7) of this section that is engaged
in activities permissible for a financial holding company under 12
U.S.C. 1843(k), except that any such person held pursuant to
merchant banking authority under 12 U.S.C. 1843(k)(4)(H) or 12
U.S.C. 1843(k)(4)(I) is not an excluded person, or a person
directly or indirectly owned by one or more insurance companies
described in division (E)(9) of this section that is authorized to
do the business of insurance in this state.
For the purposes of division (E)(8) of this section, a person
owns another person under the following circumstances:
(a) In the case of corporations issuing capital stock, one
corporation owns another corporation if it owns fifty per cent or
more of the other corporation's capital stock with current voting
rights;
(b) In the case of a limited liability company, one person
owns the company if that person's membership interest, as defined
in section 1705.01 of the Revised Code, is fifty per cent or more
of the combined membership interests of all persons owning such
interests in the company;
(c) In the case of a partnership, trust, or other
unincorporated business organization other than a limited
liability company, one person owns the organization if, under the
articles of organization or other instrument governing the affairs
of the organization, that person has a beneficial interest in the
organization's profits, surpluses, losses, or distributions of
fifty per cent or more of the combined beneficial interests of all
persons having such an interest in the organization;
(d) In the case of multiple ownership, the ownership
interests of more than one person may be aggregated to meet the
fifty per cent ownership tests in this division only when each
such owner is described in division (E)(3), (5), (6), or (7) of
this section and is engaged in activities permissible for a
financial holding company under 12 U.S.C. 1843(k) or is a person
directly or indirectly owned by one or more insurance companies
described in division (E)(9) of this section that is authorized to
do the business of insurance in this state.
(9) A domestic insurance company or foreign insurance
company, as defined in section 5725.01 of the Revised Code, that
paid the insurance company premiums tax imposed by section 5725.18
or Chapter 5729. of the Revised Code based on one or more
measurement periods that include the entire tax period under this
chapter;
(10) A person that solely facilitates or services one or more
securitizations or similar transactions for any person described
in division (E)(3), (5), (6), (7), (8), or (9) of this section.
For purposes of this division, "securitization" means transferring
one or more assets to one or more persons and then issuing
securities backed by the right to receive payment from the asset
or assets so transferred.
(11) Except as otherwise provided in this division, a
pre-income tax trust as defined in division (FF)(4) of section
5747.01 of the Revised Code and any pass-through entity of which
such pre-income tax trust owns or controls, directly, indirectly,
or constructively through related interests, more than five per
cent of the ownership or equity interests. If the pre-income tax
trust has made a qualifying pre-income tax trust election under
division (FF)(3) of section 5747.01 of the Revised Code, then the
trust and the pass-through entities of which it owns or controls,
directly, indirectly, or constructively through related interests,
more than five per cent of the ownership or equity interests,
shall not be excluded persons for purposes of the tax imposed
under section 5751.02 of the Revised Code.
(12) Nonprofit organizations or the state and its agencies,
instrumentalities, or political subdivisions.
(F) Except as otherwise provided in divisions (F)(2), (3),
and (4) of this section, "gross receipts" means the total amount
realized by a person, without deduction for the cost of goods sold
or other expenses incurred, that contributes to the production of
gross income of the person, including the fair market value of any
property and any services received, and any debt transferred or
forgiven as consideration.
(1) The following are examples of gross receipts:
(a) Amounts realized from the sale, exchange, or other
disposition of the taxpayer's property to or with another;
(b) Amounts realized from the taxpayer's performance of
services for another;
(c) Amounts realized from another's use or possession of the
taxpayer's property or capital;
(d) Any combination of the foregoing amounts.
(2) "Gross receipts" excludes the following amounts:
(a) Interest income except interest on credit sales;
(b) Dividends and distributions from corporations, and
distributive or proportionate shares of receipts and income from a
pass-through entity as defined under section 5733.04 of the
Revised Code;
(c) Receipts from the sale, exchange, or other disposition of
an asset described in section 1221 or 1231 of the Internal Revenue
Code, without regard to the length of time the person held the
asset. Notwithstanding section 1221 of the Internal Revenue Code,
receipts from hedging transactions also are excluded to the extent
the transactions are entered into primarily to protect a financial
position, such as managing the risk of exposure to (i) foreign
currency fluctuations that affect assets, liabilities, profits,
losses, equity, or investments in foreign operations; (ii)
interest rate fluctuations; or (iii) commodity price fluctuations.
As used in division (F)(2)(c) of this section, "hedging
transaction" has the same meaning as used in section 1221 of the
Internal Revenue Code and also includes transactions accorded
hedge accounting treatment under statement of financial accounting
standards number 133 of the financial accounting standards board.
For the purposes of division (F)(2)(c) of this section, the actual
transfer of title of real or tangible personal property to another
entity is not a hedging transaction.
(d) Proceeds received attributable to the repayment,
maturity, or redemption of the principal of a loan, bond, mutual
fund, certificate of deposit, or marketable instrument;
(e) The principal amount received under a repurchase
agreement or on account of any transaction properly characterized
as a loan to the person;
(f) Contributions received by a trust, plan, or other
arrangement, any of which is described in section 501(a) of the
Internal Revenue Code, or to which Title 26, Subtitle A, Chapter
1, Subchapter (D) of the Internal Revenue Code applies;
(g) Compensation, whether current or deferred, and whether in
cash or in kind, received or to be received by an employee, former
employee, or the employee's legal successor for services rendered
to or for an employer, including reimbursements received by or for
an individual for medical or education expenses, health insurance
premiums, or employee expenses, or on account of a dependent care
spending account, legal services plan, any cafeteria plan
described in section 125 of the Internal Revenue Code, or any
similar employee reimbursement;
(h) Proceeds received from the issuance of the taxpayer's own
stock, options, warrants, puts, or calls, or from the sale of the
taxpayer's treasury stock;
(i) Proceeds received on the account of payments from
insurance policies, except those proceeds received for the loss of
business revenue;
(j) Gifts or charitable contributions received; membership
dues received by trade, professional, homeowners', or condominium
associations; and payments received for educational courses,
meetings, meals, or similar payments to a trade, professional, or
other similar association; and fundraising receipts received by
any person when any excess receipts are donated or used
exclusively for charitable purposes;
(k) Damages received as the result of litigation in excess of
amounts that, if received without litigation, would be gross
receipts;
(l) Property, money, and other amounts received or acquired
by an agent on behalf of another in excess of the agent's
commission, fee, or other remuneration;
(m) Tax refunds, other tax benefit recoveries, and
reimbursements for the tax imposed under this chapter made by
entities that are part of the same combined taxpayer or
consolidated elected taxpayer group, and reimbursements made by
entities that are not members of a combined taxpayer or
consolidated elected taxpayer group that are required to be made
for economic parity among multiple owners of an entity whose tax
obligation under this chapter is required to be reported and paid
entirely by one owner, pursuant to the requirements of sections
5751.011 and 5751.012 of the Revised Code;
(o) Contributions to capital;
(p) Sales or use taxes collected as a vendor or an
out-of-state seller on behalf of the taxing jurisdiction from a
consumer or other taxes the taxpayer is required by law to collect
directly from a purchaser and remit to a local, state, or federal
tax authority;
(q) In the case of receipts from the sale of cigarettes or
tobacco products by a wholesale dealer, retail dealer,
distributor, manufacturer, or seller, all as defined in section
5743.01 of the Revised Code, an amount equal to the federal and
state excise taxes paid by any person on or for such cigarettes or
tobacco products under subtitle E of the Internal Revenue Code or
Chapter 5743. of the Revised Code;
(r) In the case of receipts from the sale of motor fuel by a
licensed motor fuel dealer, licensed retail dealer, or licensed
permissive motor fuel dealer, all as defined in section 5735.01 of
the Revised Code, an amount equal to federal and state excise
taxes paid by any person on such motor fuel under section 4081 of
the Internal Revenue Code or Chapter 5735. of the Revised Code;
(s) In the case of receipts from the sale of beer or
intoxicating liquor, as defined in section 4301.01 of the Revised
Code, by a person holding a permit issued under Chapter 4301. or
4303. of the Revised Code, an amount equal to federal and state
excise taxes paid by any person on or for such beer or
intoxicating liquor under subtitle E of the Internal Revenue Code
or Chapter 4301. or 4305. of the Revised Code;
(t) Receipts realized by a new motor vehicle dealer or used
motor vehicle dealer, as defined in section 4517.01 of the Revised
Code, from the sale or other transfer of a motor vehicle, as
defined in that section, to another motor vehicle dealer for the
purpose of resale by the transferee motor vehicle dealer, but only
if the sale or other transfer was based upon the transferee's need
to meet a specific customer's preference for a motor vehicle;
(u) Receipts from a financial institution described in
division (E)(3) of this section for services provided to the
financial institution in connection with the issuance, processing,
servicing, and management of loans or credit accounts, if such
financial institution and the recipient of such receipts have at
least fifty per cent of their ownership interests owned or
controlled, directly or constructively through related interests,
by common owners;
(v) Receipts realized from administering anti-neoplastic
drugs and other cancer chemotherapy, biologicals, therapeutic
agents, and supportive drugs in a physician's office to patients
with cancer;
(w) Funds received or used by a mortgage broker that is not a
dealer in intangibles, other than fees or other consideration,
pursuant to a table-funding mortgage loan or warehouse-lending
mortgage loan. Terms used in division (F)(2)(w) of this section
have the same meanings as in section 1322.01 of the Revised Code,
except "mortgage broker" means a person assisting a buyer in
obtaining a mortgage loan for a fee or other consideration paid by
the buyer or a lender, or a person engaged in table-funding or
warehouse-lending mortgage loans that are first lien mortgage
loans.
(x) Property, money, and other amounts received by a
professional employer organization, as defined in section 4125.01
of the Revised Code, from a client employer, as defined in that
section, in excess of the administrative fee charged by the
professional employer organization to the client employer;
(y) In the case of amounts retained as commissions by a
permit holder under Chapter 3769. of the Revised Code, an amount
equal to the amounts specified under that chapter that must be
paid to or collected by the tax commissioner as a tax and the
amounts specified under that chapter to be used as purse money;
(z) Qualifying distribution center receipts.
(i) For purposes of division (F)(2)(z) of this section:
(I) "Qualifying distribution center receipts" means receipts
of a supplier from qualified property that is delivered to a
qualified distribution center, multiplied by a quantity that
equals one minus the Ohio delivery percentage.
(II) "Qualified property" means tangible personal property
delivered to a qualified distribution center that is shipped to
that qualified distribution center solely for further shipping by
the qualified distribution center to another location in this
state or elsewhere. "Further shipping" includes storing and
repackaging such property into smaller or larger bundles, so long
as such property is not subject to further manufacturing or
processing.
(III) "Qualified distribution center" means a warehouse or
other similar facility in this state that, for the qualifying
year, is operated by a person that is not part of a combined
taxpayer group and that has a qualifying certificate. However, all
warehouses or other similar facilities that are operated by
persons in the same taxpayer group and that are located within one
mile of each other shall be treated as one qualified distribution
center.
(IV) "Qualifying year" means the calendar year to which the
qualifying certificate applies.
(V) "Qualifying period" means the period of the first day of
July of the second year preceding the qualifying year through the
thirtieth day of June of the year preceding the qualifying year.
(VI) "Qualifying certificate" means the certificate issued by
the tax commissioner after the operator of a distribution center
files an annual application with the commissioner. The application
and annual fee shall be filed and paid for each qualified
distribution center on or before the first day of September before
the qualifying year or within forty-five days after the
distribution center opens, whichever is later.
The applicant must substantiate to the commissioner's
satisfaction that, for the qualifying period, all persons
operating the distribution center have more than fifty per cent of
the cost of the qualified property shipped to a location such that
it would be sitused outside this state under the provisions of
division (E) of section 5751.033 of the Revised Code. The
applicant must also substantiate that the distribution center
cumulatively had costs from its suppliers equal to or exceeding
five hundred million dollars during the qualifying period. (For
purposes of division (F)(2)(z)(i)(VI) of this section, "supplier"
excludes any person that is part of the consolidated elected
taxpayer group, if applicable, of the operator of the qualified
distribution center.) The commissioner may require the applicant
to have an independent certified public accountant certify that
the calculation of the minimum thresholds required for a qualified
distribution center by the operator of a distribution center has
been made in accordance with generally accepted accounting
principles. The commissioner shall issue or deny the issuance of a
certificate within sixty days after the receipt of the
application. A denial is subject to appeal under section 5717.02
of the Revised Code. If the operator files a timely appeal under
section 5717.02 of the Revised Code, the operator shall be granted
a qualifying certificate, provided that the operator is liable for
any tax, interest, or penalty upon amounts claimed as qualifying
distribution center receipts, other than those receipts exempt
under division (C)(1) of section 5751.011 of the Revised Code,
that would have otherwise not been owed by its suppliers if the
qualifying certificate was valid.
(VII) "Ohio delivery percentage" means the proportion of the
total property delivered to a destination inside Ohio from the
qualified distribution center during the qualifying period
compared with total deliveries from such distribution center
everywhere during the qualifying period.
(ii) If the distribution center is new and was not open for
the entire qualifying period, the operator of the distribution
center may request that the commissioner grant a qualifying
certificate. If the certificate is granted and it is later
determined that more than fifty per cent of the qualified property
during that year was not shipped to a location such that it would
be sitused outside of this state under the provisions of division
(E) of section 5751.033 of the Revised Code or if it is later
determined that the person that operates the distribution center
had average monthly costs from its suppliers of less than forty
million dollars during that year, then the operator of the
distribution center shall be liable for any tax, interest, or
penalty upon amounts claimed as qualifying distribution center
receipts, other than those receipts exempt under division (C)(1)
of section 5751.011 of the Revised Code, that would have not
otherwise been owed by its suppliers during the qualifying year if
the qualifying certificate was valid. (For purposes of division
(F)(2)(z)(ii) of this section, "supplier" excludes any person that
is part of the consolidated elected taxpayer group, if applicable,
of the operator of the qualified distribution center.)
(iii) When filing an application for a qualifying certificate
under division (F)(2)(z)(i)(VI) of this section, the operator of a
qualified distribution center also shall provide documentation, as
the commissioner requires, for the commissioner to ascertain the
Ohio delivery percentage. The commissioner, upon issuing the
qualifying certificate, also shall certify the Ohio delivery
percentage. The operator of the qualified distribution center may
appeal the commissioner's certification of the Ohio delivery
percentage in the same manner as an appeal is taken from the
denial of a qualifying certificate under division (F)(2)(z)(i)(VI)
of this section.
Within thirty days after all appeals have been exhausted, the
operator of the qualified distribution center shall notify the
affected suppliers of qualified property that such suppliers are
required to file, within sixty days after receiving notice from
the operator of the qualified distribution center, amended reports
for the impacted calendar quarter or quarters or calendar year,
whichever the case may be. Any additional tax liability or tax
overpayment shall be subject to interest but shall not be subject
to the imposition of any penalty so long as the amended returns
are timely filed. The supplier of tangible personal property
delivered to the qualified distribution center shall include in
its report of taxable gross receipts the receipts from the total
sales of property delivered to the qualified distribution center
for the calendar quarter or calendar year, whichever the case may
be, multiplied by the Ohio delivery percentage for the qualifying
year. Nothing in division (F)(2)(z)(iii) of this section shall be
construed as imposing liability on the operator of a qualified
distribution center for the tax imposed by this chapter arising
from any change to the Ohio delivery percentage.
(iv) In the case where the distribution center is new and not
open for the entire qualifying period, the operator shall make a
good faith estimate of an Ohio delivery percentage for use by
suppliers in their reports of taxable gross receipts for the
remainder of the qualifying period. The operator of the facility
shall disclose to the suppliers that such Ohio delivery percentage
is an estimate and is subject to recalculation. By the due date of
the next application for a qualifying certificate, the operator
shall determine the actual Ohio delivery percentage for the
estimated qualifying period and proceed as provided in division
(F)(2)(z)(iii) of this section with respect to the calculation and
recalculation of the Ohio delivery percentage. The supplier is
required to file, within sixty days after receiving notice from
the operator of the qualified distribution center, amended reports
for the impacted calendar quarter or quarters or calendar year,
whichever the case may be. Any additional tax liability or tax
overpayment shall be subject to interest but shall not be subject
to the imposition of any penalty so long as the amended returns
are timely filed.
(v) Qualifying certificates and Ohio delivery percentages
issued by the commissioner shall be open to public inspection and
shall be timely published by the commissioner. A supplier relying
in good faith on a certificate issued under this division shall
not be subject to tax on the qualifying distribution center
receipts under division (F)(2)(z) of this section. A person
receiving a qualifying certificate is responsible for paying the
tax, interest, and penalty upon amounts claimed as qualifying
distribution center receipts that would not otherwise have been
owed by the supplier if the qualifying certificate were available
when it is later determined that the qualifying certificate should
not have been issued because the statutory requirements were in
fact not met.
(vi) The annual fee for a qualifying certificate shall be one
hundred thousand dollars for each qualified distribution center.
If a qualifying certificate is not issued, the annual fee is
subject to refund after the exhaustion of all appeals provided for
in division (F)(2)(z)(i)(VI) of this section. The fee imposed
under this division may be assessed in the same manner as the tax
imposed under this chapter. The first one hundred thousand dollars
of the annual application fees collected each calendar year shall
be credited to the commercial activity tax administrative fund.
The remainder of the annual application fees collected shall be
distributed in the same manner required under section 5751.20 of
the Revised Code.
(vii) The tax commissioner may require that adequate security
be posted by the operator of the distribution center on appeal
when the commissioner disagrees that the applicant has met the
minimum thresholds for a qualified distribution center as set
forth in divisions (F)(2)(z)(i)(VI) and (F)(2)(z)(ii) of this
section.
(aa) Receipts of an employer from payroll deductions relating
to the reimbursement of the employer for advancing moneys to an
unrelated third party on an employee's behalf;
(bb) Cash discounts allowed and taken;
(cc) Returns and allowances;
(dd) Bad debts from receipts on the basis of which the tax
imposed by this chapter was paid in a prior quarterly tax payment
period. For the purpose of this division, "bad debts" means any
debts that have become worthless or uncollectible between the
preceding and current quarterly tax payment periods, have been
uncollected for at least six months, and that may be claimed as a
deduction under section 166 of the Internal Revenue Code and the
regulations adopted under that section, or that could be claimed
as such if the taxpayer kept its accounts on the accrual basis.
"Bad debts" does not include repossessed property, uncollectible
amounts on property that remains in the possession of the taxpayer
until the full purchase price is paid, or expenses in attempting
to collect any account receivable or for any portion of the debt
recovered;
(ee) Any amount realized from the sale of an account
receivable to the extent the receipts from the underlying
transaction giving rise to the account receivable were included in
the gross receipts of the taxpayer;
(ff) Any receipts for which the tax imposed by this chapter
is prohibited by the Constitution or laws of the United States or
the Constitution of Ohio.
(gg) Amounts realized by licensed motor fuel dealers or
licensed permissive motor fuel dealers from the exchange of
petroleum products, including motor fuel, between such dealers,
provided that delivery of the petroleum products occurs at a
refinery, terminal, pipeline, or marine vessel and that the
exchanging dealers agree neither dealer shall require monetary
compensation from the other for the value of the exchanged
petroleum products other than such compensation for differences in
product location or grade. Division (F)(2)(gg) of this section
does not apply to amounts realized as a result of differences in
location or grade of exchanged petroleum products or from
handling, lubricity, dye, or other additive injections fees,
pipeline security fees, or similar fees. As used in this division,
"motor fuel," "licensed motor fuel dealer," "licensed permissive
motor fuel dealer," and "terminal" have the same meanings as in
section 5735.01 of the Revised Code.
(hh) In the case of amounts collected by a licensed casino
operator from casino gaming, amounts in excess of the casino
operator's gross casino revenue. In this division, "casino
operator" and "casino gaming" have the meanings defined in section
3772.01 of the Revised Code, and "gross casino revenue" has the
meaning defined in section 5753.01 of the Revised Code.
(3) In the case of a taxpayer when acting as a real estate
broker, "gross receipts" includes only the portion of any fee for
the service of a real estate broker, or service of a real estate
salesperson associated with that broker, that is retained by the
broker and not paid to an associated real estate salesperson or
another real estate broker. For the purposes of this division,
"real estate broker" and "real estate salesperson" have the same
meanings as in section 4735.01 of the Revised Code.
(4) A taxpayer's method of accounting for gross receipts for
a tax period shall be the same as the taxpayer's method of
accounting for federal income tax purposes for the taxpayer's
federal taxable year that includes the tax period. If a taxpayer's
method of accounting for federal income tax purposes changes, its
method of accounting for gross receipts under this chapter shall
be changed accordingly.
(G) "Taxable gross receipts" means gross receipts sitused to
this state under section 5751.033 of the Revised Code.
(H) A person has "substantial nexus with this state" if any
of the following applies. The person:
(1) Owns or uses a part or all of its capital in this state;
(2) Holds a certificate of compliance with the laws of this
state authorizing the person to do business in this state;
(3) Has bright-line presence in this state;
(4) Otherwise has nexus with this state to an extent that the
person can be required to remit the tax imposed under this chapter
under the Constitution of the United States.
(I) A person has "bright-line presence" in this state for a
reporting period and for the remaining portion of the calendar
year if any of the following applies. The person:
(1) Has at any time during the calendar year property in this
state with an aggregate value of at least fifty thousand dollars.
For the purpose of division (I)(1) of this section, owned property
is valued at original cost and rented property is valued at eight
times the net annual rental charge.
(2) Has during the calendar year payroll in this state of at
least fifty thousand dollars. Payroll in this state includes all
of the following:
(a) Any amount subject to withholding by the person under
section 5747.06 of the Revised Code;
(b) Any other amount the person pays as compensation to an
individual under the supervision or control of the person for work
done in this state; and
(c) Any amount the person pays for services performed in this
state on its behalf by another.
(3) Has during the calendar year taxable gross receipts of at
least five hundred thousand dollars.
(4) Has at any time during the calendar year within this
state at least twenty-five per cent of the person's total
property, total payroll, or total gross receipts.
(5) Is domiciled in this state as an individual or for
corporate, commercial, or other business purposes.
(J) "Tangible personal property" has the same meaning as in
section 5739.01 of the Revised Code.
(K) "Internal Revenue Code" means the Internal Revenue Code
of 1986, 100 Stat. 2085, 26 U.S.C. 1, as amended. Any term used in
this chapter that is not otherwise defined has the same meaning as
when used in a comparable context in the laws of the United States
relating to federal income taxes unless a different meaning is
clearly required. Any reference in this chapter to the Internal
Revenue Code includes other laws of the United States relating to
federal income taxes.
(L) "Calendar quarter" means a three-month period ending on
the thirty-first day of March, the thirtieth day of June, the
thirtieth day of September, or the thirty-first day of December.
(M) "Tax period" means the calendar quarter or calendar year
on the basis of which a taxpayer is required to pay the tax
imposed under this chapter.
(N) "Calendar year taxpayer" means a taxpayer for which the
tax period is a calendar year.
(O) "Calendar quarter taxpayer" means a taxpayer for which
the tax period is a calendar quarter.
(P) "Agent" means a person authorized by another person to
act on its behalf to undertake a transaction for the other,
including any of the following:
(1) A person receiving a fee to sell financial instruments;
(2) A person retaining only a commission from a transaction
with the other proceeds from the transaction being remitted to
another person;
(3) A person issuing licenses and permits under section
1533.13 of the Revised Code;
(4) A lottery sales agent holding a valid license issued
under section 3770.05 of the Revised Code;
(5) A person acting as an agent of the division of liquor
control under section 4301.17 of the Revised Code.
(Q) "Received" includes amounts accrued under the accrual
method of accounting.
(R) "Reporting person" means a person in a consolidated
elected taxpayer or combined taxpayer group that is designated by
that group to legally bind the group for all filings and tax
liabilities and to receive all legal notices with respect to
matters under this chapter, or, for the purposes of section
5751.04 of the Revised Code, a separate taxpayer that is not a
member of such a group.
Sec. 5753.01. As used in Chapter 5753. of the Revised Code
and for no other purpose under Title LVII of the Revised Code:
(A) "Casino facility" has the same meaning as in section
3772.01 of the Revised Code.
(B) "Casino gaming" has the same meaning as in section
3772.01 of the Revised Code.
(C) "Casino operator" has the same meaning as in section
3772.01 of the Revised Code.
(D) "Gross casino revenue" means the total amount of money
exchanged for the purchase of chips, tokens, tickets, electronic
cards, or similar objects by casino patrons, less winnings paid to
wagerers. "Gross casino revenue" does not include the issuance to
casino patrons or wagering by casino patrons of any promotional
gaming credit as defined in section 3772.01 of the Revised Code.
When issuance of the promotional gaming credit requires money
exchanged as a match from the patron, the excludible portion of
the promotional gaming credit does not include the portion of the
wager purchased by the patron.
(E) "Person" has the same meaning as in section 3772.01 of
the Revised Code.
(F) "Slot machine" has the same meaning as in section 3772.01
of the Revised Code.
(G) "Table game" has the same meaning as in section 3772.01
of the Revised Code.
(H) "Tax period" means one twenty-four-hour period with
regard to which a casino operator is required to pay the tax
levied by this chapter.
Section 2. That existing sections 2915.01, 3772.01, 3772.11,
3772.15, 3772.23, 3772.27, 3772.31, 5751.01, and 5753.01 of the
Revised Code are hereby repealed.
Section 3. (A) 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 eligible to become a
video lottery sales agent may apply to the State Racing Commission
to move its track to another location using the following approval
procedure:
(1) The permit holder shall submit, for the consideration of
the State Racing Commission in its determination on whether to
approve the transfer, its proposal to the State Racing Commission
and shall specify the location of the new track and the
incremental economic benefits the permit holder is willing to
provide to the state.
(2) The State Racing Commission shall approve or deny the
transfer.
(3) The permit holder may apply to the State Lottery
Commission for a video lottery sales agent license at the new
track location.
(B) The State Racing Commission, subject to division (D) of
this section, shall give preference to transfer proposals
involving moves to locations in which neither horse-racing
meetings nor casino gaming have been authorized before July 1,
2011. A permit holder that is authorized to transfer its track
under this section and that is a video lottery sales agent may
operate at a temporary facility at its new location while
constructing or otherwise preparing its new track at that
location. A temporary facility shall meet any minimal capital
investment and structure requirements established by the State
Racing Commission.
(C) The state may discuss and negotiate with parties
regarding the transferring of racing permits to new track
locations and may, in its discretion, enter into agreements
regarding the transfer of permits to new locations in advance of
the process set forth in this section.
(D) A permit holder who is located on property owned by a
political subdivision may move its track to a new location within
twenty miles of its current location. Such a permit holder shall
not be charged any fee by the state in exchange for applying for a
move, for having its move approved, or for moving its existing
track as specified under this division. The State Racing
Commission shall give a preference greater than the preference
given under division (B) of this section to such a permit holder
as part of the approval procedure.
(E) Chapter 2915. of the Revised Code does not apply to,
affect, or prohibit lotteries or video lotteries conducted under
this section and Chapter 3770. of the Revised Code. The State
Racing Commission may not adopt rules regarding the operation of
lotteries or video lotteries conducted under Chapter 3770. of the
Revised Code.
(F) The State Racing Commission may adopt rules under Chapter
119. of the Revised Code to effectuate this section and to
establish fees to relocate tracks for applicants under this
section.
(G) As used in this section:
(1) "Permit holder" means a person that has been authorized
by the State Racing Commission to conduct one or more horse-racing
meetings under Chapter 3769. of the Revised Code.
(2) "Track" means any place, track, or enclosure where a
permit holder conducts live horse racing for profit at a racing
meeting. "Track" includes facilities or premises contiguous or
adjacent to those places, tracks, or enclosures.
(3) "Video lottery sales agent" means a person who is a
permit holder and holds a current license issued by the State
Lottery Commission to assist the Commission in conducting video
lotteries through the use of video lottery terminals at a track.
Section 4. Notwithstanding any other provision to the
contrary in Chapter 3769. of the Revised Code, for a period of two
years after the effective date of this section, any person holding
a permit under that chapter to conduct live horse-racing meetings
at a facility owned by a political subdivision may apply for, and
the State Racing Commission may grant, a permit to conduct
horse-racing meetings at a location at which such meetings have
not previously been conducted. The Commission may only grant such
an application if the proposed location is in the same or a
contiguous county and is within fifty miles of the current
location associated with the permit, but is not in the same county
as another location at which live horse-racing meetings are
conducted.
Section 5. The items of law contained in this act, and their
applications, are severable. If any item of law contained in this
act, or if any application of any item of law contained in this
act, is held invalid, the invalidity does not affect other items
of law contained in this act and their applications that can be
given effect without the invalid item of law or application.
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