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H. B. No. 386 As IntroducedAs Introduced
129th General Assembly | Regular Session | 2011-2012 |
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A BILL
To amend sections 111.15, 122.014, 2923.31,
3301.0714, 3769.089, 3770.02, 3770.03, 3770.05,
3770.21, 3772.01, 3772.04, 3772.07, 3772.091,
3772.10, 3772.13, 3772.16, 3772.17, 3772.28,
3772.99, 5503.02, 5751.01, 5753.01, and 5753.03,
to enact section 3770.22 of the Revised Code, to
amend Section 261.20.90 of Am. Sub. H.B. 153 of
the 129th General Assembly, to amend Section 3 of
Sub. H.B. 277 of the 129th General Assembly, and
to repeal Section 4 of Sub. H.B. 277 of the 129th
General Assembly to make changes to the law
regarding video lottery terminals, casino gaming,
and horse racing, to make an appropriation, and to
declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 111.15, 122.014, 2923.31,
3301.0714, 3769.089, 3770.02, 3770.03, 3770.05, 3770.21, 3772.01,
3772.04, 3772.07, 3772.091, 3772.10, 3772.13, 3772.16, 3772.17,
3772.28, 3772.99, 5503.02, 5751.01, 5753.01, and 5753.03 be
amended and section 3770.22 of the Revised Code be enacted to read
as follows:
Sec. 111.15. (A) As used in this section:
(1) "Rule" includes any rule, regulation, bylaw, or standard
having a general and uniform operation adopted by an agency under
the authority of the laws governing the agency; any appendix to a
rule; and any internal management rule. "Rule" does not include
any guideline adopted pursuant to section 3301.0714 of the Revised
Code, any order respecting the duties of employees, any finding,
any determination of a question of law or fact in a matter
presented to an agency, or any rule promulgated pursuant to
Chapter 119., section 4141.14, division (C)(1) or (2) of section
5117.02, or section 5703.14 of the Revised Code. "Rule" includes
any amendment or rescission of a rule.
(2) "Agency" means any governmental entity of the state and
includes, but is not limited to, any board, department, division,
commission, bureau, society, council, institution, state college
or university, community college district, technical college
district, or state community college. "Agency" does not include
the general assembly, the controlling board, the adjutant
general's department, or any court.
(3) "Internal management rule" means any rule, regulation,
bylaw, or standard governing the day-to-day staff procedures and
operations within an agency.
(4) "Substantive revision" has the same meaning as in
division (J) of section 119.01 of the Revised Code.
(B)(1) Any rule, other than a rule of an emergency nature,
adopted by any agency pursuant to this section shall be effective
on the tenth day after the day on which the rule in final form and
in compliance with division (B)(3) of this section is filed as
follows:
(a) The rule shall be filed in electronic form with both the
secretary of state and the director of the legislative service
commission;
(b) The rule shall be filed in electronic form with the joint
committee on agency rule review. Division (B)(1)(b) of this
section does not apply to any rule to which division (D) of this
section does not apply.
An agency that adopts or amends a rule that is subject to
division (D) of this section shall assign a review date to the
rule that is not later than five years after its effective date.
If no review date is assigned to a rule, or if a review date
assigned to a rule exceeds the five-year maximum, the review date
for the rule is five years after its effective date. A rule with a
review date is subject to review under section 119.032 of the
Revised Code. This paragraph does not apply to a rule of a state
college or university, community college district, technical
college district, or state community college.
If all filings are not completed on the same day, the rule
shall be effective on the tenth day after the day on which the
latest filing is completed. If an agency in adopting a rule
designates an effective date that is later than the effective date
provided for by division (B)(1) of this section, the rule if filed
as required by such division shall become effective on the later
date designated by the agency.
Any rule that is required to be filed under division (B)(1)
of this section is also subject to division (D) of this section if
not exempted by division (D)(1), (2), (3), (4), (5), (6), (7), or
(8) of this section.
If a rule incorporates a text or other material by reference,
the agency shall comply with sections 121.71 to 121.76 of the
Revised Code.
(2) A rule of an emergency nature necessary for the immediate
preservation of the public peace, health, or safety shall state
the reasons for the necessity. The emergency rule, in final form
and in compliance with division (B)(3) of this section, shall be
filed in electronic form with the secretary of state, the director
of the legislative service commission, and the joint committee on
agency rule review. The emergency rule is effective immediately
upon completion of the latest filing, except that if the agency in
adopting the emergency rule designates an effective date, or date
and time of day, that is later than the effective date and time
provided for by division (B)(2) of this section, the emergency
rule if filed as required by such division shall become effective
at the later date, or later date and time of day, designated by
the agency.
An emergency rule becomes invalid at the end of the ninetieth
day it is in effect. Prior to that date, the agency may file the
emergency rule as a nonemergency rule in compliance with division
(B)(1) of this section. The agency may not refile the emergency
rule in compliance with division (B)(2) of this section so that,
upon the emergency rule becoming invalid under such division, the
emergency rule will continue in effect without interruption for
another ninety-day period.
(3) An agency shall file a rule under division (B)(1) or (2)
of this section in compliance with the following standards and
procedures:
(a) The rule shall be numbered in accordance with the
numbering system devised by the director for the Ohio
administrative code.
(b) The rule shall be prepared and submitted in compliance
with the rules of the legislative service commission.
(c) The rule shall clearly state the date on which it is to
be effective and the date on which it will expire, if known.
(d) Each rule that amends or rescinds another rule shall
clearly refer to the rule that is amended or rescinded. Each
amendment shall fully restate the rule as amended.
If the director of the legislative service commission or the
director's designee gives an agency notice pursuant to section
103.05 of the Revised Code that a rule filed by the agency is not
in compliance with the rules of the legislative service
commission, the agency shall within thirty days after receipt of
the notice conform the rule to the rules of the commission as
directed in the notice.
(C) All rules filed pursuant to divisions (B)(1)(a) and (2)
of this section shall be recorded by the secretary of state and
the director under the title of the agency adopting the rule and
shall be numbered according to the numbering system devised by the
director. The secretary of state and the director shall preserve
the rules in an accessible manner. Each such rule shall be a
public record open to public inspection and may be transmitted to
any law publishing company that wishes to reproduce it.
(D) At least sixty-five days before a board, commission,
department, division, or bureau of the government of the state
files a rule under division (B)(1) of this section, it shall file
the full text of the proposed rule in electronic form with the
joint committee on agency rule review, and the proposed rule is
subject to legislative review and invalidation under division (I)
of section 119.03 of the Revised Code. If a state board,
commission, department, division, or bureau makes a substantive
revision in a proposed rule after it is filed with the joint
committee, the state board, commission, department, division, or
bureau shall promptly file the full text of the proposed rule in
its revised form in electronic form with the joint committee. The
latest version of a proposed rule as filed with the joint
committee supersedes each earlier version of the text of the same
proposed rule. Except as provided in division (F) of this section,
a state board, commission, department, division, or bureau shall
also file the rule summary and fiscal analysis prepared under
section 127.18 of the Revised Code in electronic form along with a
proposed rule, and along with a proposed rule in revised form,
that is filed under this division. If a proposed rule has an
adverse impact on businesses, the state board, commission,
department, division, or bureau also shall file the business
impact analysis, any recommendations received from the common
sense initiative office, and the associated memorandum of
response, if any, in electronic form along with the proposed rule,
or the proposed rule in revised form, that is filed under this
division.
As used in this division, "commission" includes the public
utilities commission when adopting rules under a federal or state
statute.
This division does not apply to any of the following:
(1) A proposed rule of an emergency nature;
(2) A rule proposed under section 1121.05, 1121.06, 1155.18,
1163.22, 1349.33, 1707.201, 1733.412, 4123.29, 4123.34, 4123.341,
4123.342, 4123.40, 4123.411, 4123.44, or 4123.442 of the Revised
Code;
(3) A rule proposed by an agency other than a board,
commission, department, division, or bureau of the government of
the state;
(4) A proposed internal management rule of a board,
commission, department, division, or bureau of the government of
the state;
(5) Any proposed rule that must be adopted verbatim by an
agency pursuant to federal law or rule, to become effective within
sixty days of adoption, in order to continue the operation of a
federally reimbursed program in this state, so long as the
proposed rule contains both of the following:
(a) A statement that it is proposed for the purpose of
complying with a federal law or rule;
(b) A citation to the federal law or rule that requires
verbatim compliance.
(6) An initial rule proposed by the director of health to
impose safety standards and quality-of-care standards with respect
to a health service specified in section 3702.11 of the Revised
Code, or an initial rule proposed by the director to impose
quality standards on a facility listed in division (A)(4) of
section 3702.30 of the Revised Code, if section 3702.12 of the
Revised Code requires that the rule be adopted under this section;
(7) A rule of the state lottery commission pertaining to
instant game rules as provided in division (A) of section 3770.03
of the Revised Code.
If a rule is exempt from legislative review under division
(D)(5) of this section, and if the federal law or rule pursuant to
which the rule was adopted expires, is repealed or rescinded, or
otherwise terminates, the rule is thereafter subject to
legislative review under division (D) of this section.
(E) Whenever a state board, commission, department, division,
or bureau files a proposed rule or a proposed rule in revised form
under division (D) of this section, it shall also file the full
text of the same proposed rule or proposed rule in revised form in
electronic form with the secretary of state and the director of
the legislative service commission. Except as provided in division
(F) of this section, a state board, commission, department,
division, or bureau shall file the rule summary and fiscal
analysis prepared under section 127.18 of the Revised Code in
electronic form along with a proposed rule or proposed rule in
revised form that is filed with the secretary of state or the
director of the legislative service commission.
(F) Except as otherwise provided in this division, the
auditor of state or the auditor of state's designee is not
required to file a rule summary and fiscal analysis along with a
proposed rule, or proposed rule in revised form, that the auditor
of state proposes under section 117.12, 117.19, 117.38, or 117.43
of the Revised Code and files under division (D) or (E) of this
section.
Sec. 122.014. (A) As used in this section, "gaming
activities" means activities conducted in connection with or that
include any of the following:
(1) Casino gaming, as authorized and defined in Section 6(C)
of Article XV, Ohio Constitution;
(2) Casino gaming, as defined in division (D)(E) of section
3772.01 of the Revised Code; or
(3) The pari-mutuel system of wagering as authorized and
described in Chapter 3769. of the Revised Code.
(B) The department of development or any other entity that
administers any program or development project established under
Chapter 122., 166., or 184. of the Revised Code or in sections
149.311, 5709.87, or 5709.88 of the Revised Code shall not provide
any financial assistance, including loans, tax credits, and
grants, staffing assistance, technical support, or other
assistance to businesses conducting gaming activities or for
project sites on which gaming activities are or will be conducted.
Sec. 2923.31. As used in sections 2923.31 to 2923.36 of the
Revised Code:
(A) "Beneficial interest" means any of the following:
(1) The interest of a person as a beneficiary under a trust
in which the trustee holds title to personal or real property;
(2) The interest of a person as a beneficiary under any other
trust arrangement under which any other person holds title to
personal or real property for the benefit of such person;
(3) The interest of a person under any other form of express
fiduciary arrangement under which any other person holds title to
personal or real property for the benefit of such person.
"Beneficial interest" does not include the interest of a
stockholder in a corporation or the interest of a partner in
either a general or limited partnership.
(B) "Costs of investigation and prosecution" and "costs of
investigation and litigation" mean all of the costs incurred by
the state or a county or municipal corporation under sections
2923.31 to 2923.36 of the Revised Code in the prosecution and
investigation of any criminal action or in the litigation and
investigation of any civil action, and includes, but is not
limited to, the costs of resources and personnel.
(C) "Enterprise" includes any individual, sole
proprietorship, partnership, limited partnership, corporation,
trust, union, government agency, or other legal entity, or any
organization, association, or group of persons associated in fact
although not a legal entity. "Enterprise" includes illicit as well
as licit enterprises.
(D) "Innocent person" includes any bona fide purchaser of
property that is allegedly involved in a violation of section
2923.32 of the Revised Code, including any person who establishes
a valid claim to or interest in the property in accordance with
division (E) of section 2981.04 of the Revised Code, and any
victim of an alleged violation of that section or of any
underlying offense involved in an alleged violation of that
section.
(E) "Pattern of corrupt activity" means two or more incidents
of corrupt activity, whether or not there has been a prior
conviction, that are related to the affairs of the same
enterprise, are not isolated, and are not so closely related to
each other and connected in time and place that they constitute a
single event.
At least one of the incidents forming the pattern shall occur
on or after January 1, 1986. Unless any incident was an aggravated
murder or murder, the last of the incidents forming the pattern
shall occur within six years after the commission of any prior
incident forming the pattern, excluding any period of imprisonment
served by any person engaging in the corrupt activity.
For the purposes of the criminal penalties that may be
imposed pursuant to section 2923.32 of the Revised Code, at least
one of the incidents forming the pattern shall constitute a felony
under the laws of this state in existence at the time it was
committed or, if committed in violation of the laws of the United
States or of any other state, shall constitute a felony under the
law of the United States or the other state and would be a
criminal offense under the law of this state if committed in this
state.
(F) "Pecuniary value" means money, a negotiable instrument, a
commercial interest, or anything of value, as defined in section
1.03 of the Revised Code, or any other property or service that
has a value in excess of one hundred dollars.
(G) "Person" means any person, as defined in section 1.59 of
the Revised Code, and any governmental officer, employee, or
entity.
(H) "Personal property" means any personal property, any
interest in personal property, or any right, including, but not
limited to, bank accounts, debts, corporate stocks, patents, or
copyrights. Personal property and any beneficial interest in
personal property are deemed to be located where the trustee of
the property, the personal property, or the instrument evidencing
the right is located.
(I) "Corrupt activity" means engaging in, attempting to
engage in, conspiring to engage in, or soliciting, coercing, or
intimidating another person to engage in any of the following:
(1) Conduct defined as "racketeering activity" under the
"Organized Crime Control Act of 1970," 84 Stat. 941, 18 U.S.C.
1961(1)(B), (1)(C), (1)(D), and (1)(E), as amended;
(2) Conduct constituting any of the following:
(a) A violation of section 1315.55, 1322.02, 2903.01,
2903.02, 2903.03, 2903.04, 2903.11, 2903.12, 2905.01, 2905.02,
2905.11, 2905.22, 2907.321, 2907.322, 2907.323, 2909.02, 2909.03,
2909.22, 2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29,
2911.01, 2911.02, 2911.11, 2911.12, 2911.13, 2911.31, 2913.05,
2913.06, 2921.02, 2921.03, 2921.04, 2921.11, 2921.12, 2921.32,
2921.41, 2921.42, 2921.43, 2923.12, or 2923.17; division
(F)(1)(a), (b), or (c) of section 1315.53; division (A)(1) or (2)
of section 1707.042; division (B), (C)(4), (D), (E), or (F) of
section 1707.44; division (A)(1) or (2) of section 2923.20;
division (E) of section 3772.99; division (J)(1) of section
4712.02; section 4719.02, 4719.05, or 4719.06; division (C), (D),
or (E) of section 4719.07; section 4719.08; or division (A) of
section 4719.09 of the Revised Code.
(b) Any violation of section 3769.11, 3769.15, 3769.16, or
3769.19 of the Revised Code as it existed prior to July 1, 1996,
any violation of section 2915.02 of the Revised Code that occurs
on or after July 1, 1996, and that, had it occurred prior to that
date, would have been a violation of section 3769.11 of the
Revised Code as it existed prior to that date, or any violation of
section 2915.05 of the Revised Code that occurs on or after July
1, 1996, and that, had it occurred prior to that date, would have
been a violation of section 3769.15, 3769.16, or 3769.19 of the
Revised Code as it existed prior to that date.
(c) Any violation of section 2907.21, 2907.22, 2907.31,
2913.02, 2913.11, 2913.21, 2913.31, 2913.32, 2913.34, 2913.42,
2913.47, 2913.51, 2915.03, 2925.03, 2925.04, 2925.05, or 2925.37
of the Revised Code, any violation of section 2925.11 of the
Revised Code that is a felony of the first, second, third, or
fourth degree and that occurs on or after July 1, 1996, any
violation of section 2915.02 of the Revised Code that occurred
prior to July 1, 1996, any violation of section 2915.02 of the
Revised Code that occurs on or after July 1, 1996, and that, had
it occurred prior to that date, would not have been a violation of
section 3769.11 of the Revised Code as it existed prior to that
date, any violation of section 2915.06 of the Revised Code as it
existed prior to July 1, 1996, or any violation of division (B) of
section 2915.05 of the Revised Code as it exists on and after July
1, 1996, when the proceeds of the violation, the payments made in
the violation, the amount of a claim for payment or for any other
benefit that is false or deceptive and that is involved in the
violation, or the value of the contraband or other property
illegally possessed, sold, or purchased in the violation exceeds
one thousand dollars, or any combination of violations described
in division (I)(2)(c) of this section when the total proceeds of
the combination of violations, payments made in the combination of
violations, amount of the claims for payment or for other benefits
that is false or deceptive and that is involved in the combination
of violations, or value of the contraband or other property
illegally possessed, sold, or purchased in the combination of
violations exceeds one thousand dollars;
(d) Any violation of section 5743.112 of the Revised Code
when the amount of unpaid tax exceeds one hundred dollars;
(e) Any violation or combination of violations of section
2907.32 of the Revised Code involving any material or performance
containing a display of bestiality or of sexual conduct, as
defined in section 2907.01 of the Revised Code, that is explicit
and depicted with clearly visible penetration of the genitals or
clearly visible penetration by the penis of any orifice when the
total proceeds of the violation or combination of violations, the
payments made in the violation or combination of violations, or
the value of the contraband or other property illegally possessed,
sold, or purchased in the violation or combination of violations
exceeds one thousand dollars;
(f) Any combination of violations described in division
(I)(2)(c) of this section and violations of section 2907.32 of the
Revised Code involving any material or performance containing a
display of bestiality or of sexual conduct, as defined in section
2907.01 of the Revised Code, that is explicit and depicted with
clearly visible penetration of the genitals or clearly visible
penetration by the penis of any orifice when the total proceeds of
the combination of violations, payments made in the combination of
violations, amount of the claims for payment or for other benefits
that is false or deceptive and that is involved in the combination
of violations, or value of the contraband or other property
illegally possessed, sold, or purchased in the combination of
violations exceeds one thousand dollars;
(g) Any violation of section 2905.32 of the Revised Code to
the extent the violation is not based solely on the same conduct
that constitutes corrupt activity pursuant to division (I)(2)(c)
of this section due to the conduct being in violation of section
2907.21 of the Revised Code.
(3) Conduct constituting a violation of any law of any state
other than this state that is substantially similar to the conduct
described in division (I)(2) of this section, provided the
defendant was convicted of the conduct in a criminal proceeding in
the other state;
(4) Animal or ecological terrorism;
(5)(a) Conduct constituting any of the following:
(i) Organized retail theft;
(ii) Conduct that constitutes one or more violations of any
law of any state other than this state, that is substantially
similar to organized retail theft, and that if committed in this
state would be organized retail theft, if the defendant was
convicted of or pleaded guilty to the conduct in a criminal
proceeding in the other state.
(b) By enacting division (I)(5)(a) of this section, it is the
intent of the general assembly to add organized retail theft and
the conduct described in division (I)(5)(a)(ii) of this section as
conduct constituting corrupt activity. The enactment of division
(I)(5)(a) of this section and the addition by division (I)(5)(a)
of this section of organized retail theft and the conduct
described in division (I)(5)(a)(ii) of this section as conduct
constituting corrupt activity does not limit or preclude, and
shall not be construed as limiting or precluding, any prosecution
for a violation of section 2923.32 of the Revised Code that is
based on one or more violations of section 2913.02 or 2913.51 of
the Revised Code, one or more similar offenses under the laws of
this state or any other state, or any combination of any of those
violations or similar offenses, even though the conduct
constituting the basis for those violations or offenses could be
construed as also constituting organized retail theft or conduct
of the type described in division (I)(5)(a)(ii) of this section.
(J) "Real property" means any real property or any interest
in real property, including, but not limited to, any lease of, or
mortgage upon, real property. Real property and any beneficial
interest in it is deemed to be located where the real property is
located.
(K) "Trustee" means any of the following:
(1) Any person acting as trustee under a trust in which the
trustee holds title to personal or real property;
(2) Any person who holds title to personal or real property
for which any other person has a beneficial interest;
(3) Any successor trustee.
"Trustee" does not include an assignee or trustee for an
insolvent debtor or an executor, administrator, administrator with
the will annexed, testamentary trustee, guardian, or committee,
appointed by, under the control of, or accountable to a court.
(L) "Unlawful debt" means any money or other thing of value
constituting principal or interest of a debt that is legally
unenforceable in this state in whole or in part because the debt
was incurred or contracted in violation of any federal or state
law relating to the business of gambling activity or relating to
the business of lending money at an usurious rate unless the
creditor proves, by a preponderance of the evidence, that the
usurious rate was not intentionally set and that it resulted from
a good faith error by the creditor, notwithstanding the
maintenance of procedures that were adopted by the creditor to
avoid an error of that nature.
(M) "Animal activity" means any activity that involves the
use of animals or animal parts, including, but not limited to,
hunting, fishing, trapping, traveling, camping, the production,
preparation, or processing of food or food products, clothing or
garment manufacturing, medical research, other research,
entertainment, recreation, agriculture, biotechnology, or service
activity that involves the use of animals or animal parts.
(N) "Animal facility" means a vehicle, building, structure,
nature preserve, or other premises in which an animal is lawfully
kept, handled, housed, exhibited, bred, or offered for sale,
including, but not limited to, a zoo, rodeo, circus, amusement
park, hunting preserve, or premises in which a horse or dog event
is held.
(O) "Animal or ecological terrorism" means the commission of
any felony that involves causing or creating a substantial risk of
physical harm to any property of another, the use of a deadly
weapon or dangerous ordnance, or purposely, knowingly, or
recklessly causing serious physical harm to property and that
involves an intent to obstruct, impede, or deter any person from
participating in a lawful animal activity, from mining, foresting,
harvesting, gathering, or processing natural resources, or from
being lawfully present in or on an animal facility or research
facility.
(P) "Research facility" means a place, laboratory,
institution, medical care facility, government facility, or public
or private educational institution in which a scientific test,
experiment, or investigation involving the use of animals or other
living organisms is lawfully carried out, conducted, or attempted.
(Q) "Organized retail theft" means the theft of retail
property with a retail value of one thousand dollars or more from
one or more retail establishments with the intent to sell,
deliver, or transfer that property to a retail property fence.
(R) "Retail property" means any tangible personal property
displayed, held, stored, or offered for sale in or by a retail
establishment.
(S) "Retail property fence" means a person who possesses,
procures, receives, or conceals retail property that was
represented to the person as being stolen or that the person knows
or believes to be stolen.
(T) "Retail value" means the full retail value of the retail
property. In determining whether the retail value of retail
property equals or exceeds one thousand dollars, the value of all
retail property stolen from the retail establishment or retail
establishments by the same person or persons within any
one-hundred-eighty-day period shall be aggregated.
Sec. 3301.0714. (A) The state board of education shall adopt
rules for a statewide education management information system. The
rules shall require the state board to establish guidelines for
the establishment and maintenance of the system in accordance with
this section and the rules adopted under this section. The
guidelines shall include:
(1) Standards identifying and defining the types of data in
the system in accordance with divisions (B) and (C) of this
section;
(2) Procedures for annually collecting and reporting the data
to the state board in accordance with division (D) of this
section;
(3) Procedures for annually compiling the data in accordance
with division (G) of this section;
(4) Procedures for annually reporting the data to the public
in accordance with division (H) of this section.
(B) The guidelines adopted under this section shall require
the data maintained in the education management information system
to include at least the following:
(1) Student participation and performance data, for each
grade in each school district as a whole and for each grade in
each school building in each school district, that includes:
(a) The numbers of students receiving each category of
instructional service offered by the school district, such as
regular education instruction, vocational education instruction,
specialized instruction programs or enrichment instruction that is
part of the educational curriculum, instruction for gifted
students, instruction for students with disabilities, and remedial
instruction. The guidelines shall require instructional services
under this division to be divided into discrete categories if an
instructional service is limited to a specific subject, a specific
type of student, or both, such as regular instructional services
in mathematics, remedial reading instructional services,
instructional services specifically for students gifted in
mathematics or some other subject area, or instructional services
for students with a specific type of disability. The categories of
instructional services required by the guidelines under this
division shall be the same as the categories of instructional
services used in determining cost units pursuant to division
(C)(3) of this section.
(b) The numbers of students receiving support or
extracurricular services for each of the support services or
extracurricular programs offered by the school district, such as
counseling services, health services, and extracurricular sports
and fine arts programs. The categories of services required by the
guidelines under this division shall be the same as the categories
of services used in determining cost units pursuant to division
(C)(4)(a) of this section.
(c) Average student grades in each subject in grades nine
through twelve;
(d) Academic achievement levels as assessed under sections
3301.0710, 3301.0711, and 3301.0712 of the Revised Code;
(e) The number of students designated as having a disabling
condition pursuant to division (C)(1) of section 3301.0711 of the
Revised Code;
(f) The numbers of students reported to the state board
pursuant to division (C)(2) of section 3301.0711 of the Revised
Code;
(g) Attendance rates and the average daily attendance for the
year. For purposes of this division, a student shall be counted as
present for any field trip that is approved by the school
administration.
(k) Rates of retention in grade;
(l) For pupils in grades nine through twelve, the average
number of carnegie units, as calculated in accordance with state
board of education rules;
(m) Graduation rates, to be calculated in a manner specified
by the department of education that reflects the rate at which
students who were in the ninth grade three years prior to the
current year complete school and that is consistent with
nationally accepted reporting requirements;
(n) Results of diagnostic assessments administered to
kindergarten students as required under section 3301.0715 of the
Revised Code to permit a comparison of the academic readiness of
kindergarten students. However, no district shall be required to
report to the department the results of any diagnostic assessment
administered to a kindergarten student if the parent of that
student requests the district not to report those results.
(2) Personnel and classroom enrollment data for each school
district, including:
(a) The total numbers of licensed employees and nonlicensed
employees and the numbers of full-time equivalent licensed
employees and nonlicensed employees providing each category of
instructional service, instructional support service, and
administrative support service used pursuant to division (C)(3) of
this section. The guidelines adopted under this section shall
require these categories of data to be maintained for the school
district as a whole and, wherever applicable, for each grade in
the school district as a whole, for each school building as a
whole, and for each grade in each school building.
(b) The total number of employees and the number of full-time
equivalent employees providing each category of service used
pursuant to divisions (C)(4)(a) and (b) of this section, and the
total numbers of licensed employees and nonlicensed employees and
the numbers of full-time equivalent licensed employees and
nonlicensed employees providing each category used pursuant to
division (C)(4)(c) of this section. The guidelines adopted under
this section shall require these categories of data to be
maintained for the school district as a whole and, wherever
applicable, for each grade in the school district as a whole, for
each school building as a whole, and for each grade in each school
building.
(c) The total number of regular classroom teachers teaching
classes of regular education and the average number of pupils
enrolled in each such class, in each of grades kindergarten
through five in the district as a whole and in each school
building in the school district.
(d) The number of lead teachers employed by each school
district and each school building.
(3)(a) Student demographic data for each school district,
including information regarding the gender ratio of the school
district's pupils, the racial make-up of the school district's
pupils, the number of limited English proficient students in the
district, and an appropriate measure of the number of the school
district's pupils who reside in economically disadvantaged
households. The demographic data shall be collected in a manner to
allow correlation with data collected under division (B)(1) of
this section. Categories for data collected pursuant to division
(B)(3) of this section shall conform, where appropriate, to
standard practices of agencies of the federal government.
(b) With respect to each student entering kindergarten,
whether the student previously participated in a public preschool
program, a private preschool program, or a head start program, and
the number of years the student participated in each of these
programs.
(4) Any data required to be collected pursuant to federal
law.
(C) The education management information system shall include
cost accounting data for each district as a whole and for each
school building in each school district. The guidelines adopted
under this section shall require the cost data for each school
district to be maintained in a system of mutually exclusive cost
units and shall require all of the costs of each school district
to be divided among the cost units. The guidelines shall require
the system of mutually exclusive cost units to include at least
the following:
(1) Administrative costs for the school district as a whole.
The guidelines shall require the cost units under this division
(C)(1) to be designed so that each of them may be compiled and
reported in terms of average expenditure per pupil in formula ADM
in the school district, as determined pursuant to section 3317.03
of the Revised Code.
(2) Administrative costs for each school building in the
school district. The guidelines shall require the cost units under
this division (C)(2) to be designed so that each of them may be
compiled and reported in terms of average expenditure per
full-time equivalent pupil receiving instructional or support
services in each building.
(3) Instructional services costs for each category of
instructional service provided directly to students and required
by guidelines adopted pursuant to division (B)(1)(a) of this
section. The guidelines shall require the cost units under
division (C)(3) of this section to be designed so that each of
them may be compiled and reported in terms of average expenditure
per pupil receiving the service in the school district as a whole
and average expenditure per pupil receiving the service in each
building in the school district and in terms of a total cost for
each category of service and, as a breakdown of the total cost, a
cost for each of the following components:
(a) The cost of each instructional services category required
by guidelines adopted under division (B)(1)(a) of this section
that is provided directly to students by a classroom teacher;
(b) The cost of the instructional support services, such as
services provided by a speech-language pathologist, classroom
aide, multimedia aide, or librarian, provided directly to students
in conjunction with each instructional services category;
(c) The cost of the administrative support services related
to each instructional services category, such as the cost of
personnel that develop the curriculum for the instructional
services category and the cost of personnel supervising or
coordinating the delivery of the instructional services category.
(4) Support or extracurricular services costs for each
category of service directly provided to students and required by
guidelines adopted pursuant to division (B)(1)(b) of this section.
The guidelines shall require the cost units under division (C)(4)
of this section to be designed so that each of them may be
compiled and reported in terms of average expenditure per pupil
receiving the service in the school district as a whole and
average expenditure per pupil receiving the service in each
building in the school district and in terms of a total cost for
each category of service and, as a breakdown of the total cost, a
cost for each of the following components:
(a) The cost of each support or extracurricular services
category required by guidelines adopted under division (B)(1)(b)
of this section that is provided directly to students by a
licensed employee, such as services provided by a guidance
counselor or any services provided by a licensed employee under a
supplemental contract;
(b) The cost of each such services category provided directly
to students by a nonlicensed employee, such as janitorial
services, cafeteria services, or services of a sports trainer;
(c) The cost of the administrative services related to each
services category in division (C)(4)(a) or (b) of this section,
such as the cost of any licensed or nonlicensed employees that
develop, supervise, coordinate, or otherwise are involved in
administering or aiding the delivery of each services category.
(D)(1) The guidelines adopted under this section shall
require school districts to collect information about individual
students, staff members, or both in connection with any data
required by division (B) or (C) of this section or other reporting
requirements established in the Revised Code. The guidelines may
also require school districts to report information about
individual staff members in connection with any data required by
division (B) or (C) of this section or other reporting
requirements established in the Revised Code. The guidelines shall
not authorize school districts to request social security numbers
of individual students. The guidelines shall prohibit the
reporting under this section of a student's name, address, and
social security number to the state board of education or the
department of education. The guidelines shall also prohibit the
reporting under this section of any personally identifiable
information about any student, except for the purpose of assigning
the data verification code required by division (D)(2) of this
section, to any other person unless such person is employed by the
school district or the information technology center operated
under section 3301.075 of the Revised Code and is authorized by
the district or technology center to have access to such
information or is employed by an entity with which the department
contracts for the scoring of assessments administered under
section 3301.0711 of the Revised Code. The guidelines may require
school districts to provide the social security numbers of
individual staff members and the county of residence for a
student. Nothing in this section prohibits the state board of
education or department of education from providing a student's
county of residence to the department of taxation to facilitate
the distribution of tax revenue.
(2) The guidelines shall provide for each school district or
community school to assign a data verification code that is unique
on a statewide basis over time to each student whose initial Ohio
enrollment is in that district or school and to report all
required individual student data for that student utilizing such
code. The guidelines shall also provide for assigning data
verification codes to all students enrolled in districts or
community schools on the effective date of the guidelines
established under this section.
Individual student data shall be reported to the department
through the information technology centers utilizing the code but,
except as provided in sections 3310.11, 3310.42, 3310.63,
3313.978,
3310.63, and 3317.20 of the Revised Code, at no time
shall the state board or the department have access to information
that would enable any data verification code to be matched to
personally identifiable student data.
Each school district shall ensure that the data verification
code is included in the student's records reported to any
subsequent school district, community school, or state institution
of higher education, as defined in section 3345.011 of the Revised
Code, in which the student enrolls. Any such subsequent district
or school shall utilize the same identifier in its reporting of
data under this section.
The director of health shall request and receive, pursuant to
sections 3301.0723 and 3701.62 of the Revised Code, a data
verification code for a child who is receiving services under
division (A)(2) of section 3701.61 of the Revised Code.
(E) The guidelines adopted under this section may require
school districts to collect and report data, information, or
reports other than that described in divisions (A), (B), and (C)
of this section for the purpose of complying with other reporting
requirements established in the Revised Code. The other data,
information, or reports may be maintained in the education
management information system but are not required to be compiled
as part of the profile formats required under division (G) of this
section or the annual statewide report required under division (H)
of this section.
(F) Beginning with the school year that begins July 1, 1991,
the board of education of each school district shall annually
collect and report to the state board, in accordance with the
guidelines established by the board, the data required pursuant to
this section. A school district may collect and report these data
notwithstanding section 2151.357 or 3319.321 of the Revised Code.
(G) The state board shall, in accordance with the procedures
it adopts, annually compile the data reported by each school
district pursuant to division (D) of this section. The state board
shall design formats for profiling each school district as a whole
and each school building within each district and shall compile
the data in accordance with these formats. These profile formats
shall:
(1) Include all of the data gathered under this section in a
manner that facilitates comparison among school districts and
among school buildings within each school district;
(2) Present the data on academic achievement levels as
assessed by the testing of student achievement maintained pursuant
to division (B)(1)(d) of this section.
(H)(1) The state board shall, in accordance with the
procedures it adopts, annually prepare a statewide report for all
school districts and the general public that includes the profile
of each of the school districts developed pursuant to division (G)
of this section. Copies of the report shall be sent to each school
district.
(2) The state board shall, in accordance with the procedures
it adopts, annually prepare an individual report for each school
district and the general public that includes the profiles of each
of the school buildings in that school district developed pursuant
to division (G) of this section. Copies of the report shall be
sent to the superintendent of the district and to each member of
the district board of education.
(3) Copies of the reports received from the state board under
divisions (H)(1) and (2) of this section shall be made available
to the general public at each school district's offices. Each
district board of education shall make copies of each report
available to any person upon request and payment of a reasonable
fee for the cost of reproducing the report. The board shall
annually publish in a newspaper of general circulation in the
school district, at least twice during the two weeks prior to the
week in which the reports will first be available, a notice
containing the address where the reports are available and the
date on which the reports will be available.
(I) Any data that is collected or maintained pursuant to this
section and that identifies an individual pupil is not a public
record for the purposes of section 149.43 of the Revised Code.
(J) As used in this section:
(1) "School district" means any city, local, exempted
village, or joint vocational school district and, in accordance
with section 3314.17 of the Revised Code, any community school. As
used in division (L) of this section, "school district" also
includes any educational service center or other educational
entity required to submit data using the system established under
this section.
(2) "Cost" means any expenditure for operating expenses made
by a school district excluding any expenditures for debt
retirement except for payments made to any commercial lending
institution for any loan approved pursuant to section 3313.483 of
the Revised Code.
(K) Any person who removes data from the information system
established under this section for the purpose of releasing it to
any person not entitled under law to have access to such
information is subject to section 2913.42 of the Revised Code
prohibiting tampering with data.
(L)(1) In accordance with division (L)(2) of this section and
the rules adopted under division (L)(10) of this section, the
department of education may sanction any school district that
reports incomplete or inaccurate data, reports data that does not
conform to data requirements and descriptions published by the
department, fails to report data in a timely manner, or otherwise
does not make a good faith effort to report data as required by
this section.
(2) If the department decides to sanction a school district
under this division, the department shall take the following
sequential actions:
(a) Notify the district in writing that the department has
determined that data has not been reported as required under this
section and require the district to review its data submission and
submit corrected data by a deadline established by the department.
The department also may require the district to develop a
corrective action plan, which shall include provisions for the
district to provide mandatory staff training on data reporting
procedures.
(b) Withhold up to ten per cent of the total amount of state
funds due to the district for the current fiscal year and, if not
previously required under division (L)(2)(a) of this section,
require the district to develop a corrective action plan in
accordance with that division;
(c) Withhold an additional amount of up to twenty per cent of
the total amount of state funds due to the district for the
current fiscal year;
(d) Direct department staff or an outside entity to
investigate the district's data reporting practices and make
recommendations for subsequent actions. The recommendations may
include one or more of the following actions:
(i) Arrange for an audit of the district's data reporting
practices by department staff or an outside entity;
(ii) Conduct a site visit and evaluation of the district;
(iii) Withhold an additional amount of up to thirty per cent
of the total amount of state funds due to the district for the
current fiscal year;
(iv) Continue monitoring the district's data reporting;
(v) Assign department staff to supervise the district's data
management system;
(vi) Conduct an investigation to determine whether to suspend
or revoke the license of any district employee in accordance with
division (N) of this section;
(vii) If the district is issued a report card under section
3302.03 of the Revised Code, indicate on the report card that the
district has been sanctioned for failing to report data as
required by this section;
(viii) If the district is issued a report card under section
3302.03 of the Revised Code and incomplete or inaccurate data
submitted by the district likely caused the district to receive a
higher performance rating than it deserved under that section,
issue a revised report card for the district;
(ix) Any other action designed to correct the district's data
reporting problems.
(3) Any time the department takes an action against a school
district under division (L)(2) of this section, the department
shall make a report of the circumstances that prompted the action.
The department shall send a copy of the report to the district
superintendent or chief administrator and maintain a copy of the
report in its files.
(4) If any action taken under division (L)(2) of this section
resolves a school district's data reporting problems to the
department's satisfaction, the department shall not take any
further actions described by that division. If the department
withheld funds from the district under that division, the
department may release those funds to the district, except that if
the department withheld funding under division (L)(2)(c) of this
section, the department shall not release the funds withheld under
division (L)(2)(b) of this section and, if the department withheld
funding under division (L)(2)(d) of this section, the department
shall not release the funds withheld under division (L)(2)(b) or
(c) of this section.
(5) Notwithstanding anything in this section to the contrary,
the department may use its own staff or an outside entity to
conduct an audit of a school district's data reporting practices
any time the department has reason to believe the district has not
made a good faith effort to report data as required by this
section. If any audit conducted by an outside entity under
division (L)(2)(d)(i) or (5) of this section confirms that a
district has not made a good faith effort to report data as
required by this section, the district shall reimburse the
department for the full cost of the audit. The department may
withhold state funds due to the district for this purpose.
(6) Prior to issuing a revised report card for a school
district under division (L)(2)(d)(viii) of this section, the
department may hold a hearing to provide the district with an
opportunity to demonstrate that it made a good faith effort to
report data as required by this section. The hearing shall be
conducted by a referee appointed by the department. Based on the
information provided in the hearing, the referee shall recommend
whether the department should issue a revised report card for the
district. If the referee affirms the department's contention that
the district did not make a good faith effort to report data as
required by this section, the district shall bear the full cost of
conducting the hearing and of issuing any revised report card.
(7) If the department determines that any inaccurate data
reported under this section caused a school district to receive
excess state funds in any fiscal year, the district shall
reimburse the department an amount equal to the excess funds, in
accordance with a payment schedule determined by the department.
The department may withhold state funds due to the district for
this purpose.
(8) Any school district that has funds withheld under
division (L)(2) of this section may appeal the withholding in
accordance with Chapter 119. of the Revised Code.
(9) In all cases of a disagreement between the department and
a school district regarding the appropriateness of an action taken
under division (L)(2) of this section, the burden of proof shall
be on the district to demonstrate that it made a good faith effort
to report data as required by this section.
(10) The state board of education shall adopt rules under
Chapter 119. of the Revised Code to implement division (L) of this
section.
(M) No information technology center or school district shall
acquire, change, or update its student administration software
package to manage and report data required to be reported to the
department unless it converts to a student software package that
is certified by the department.
(N) The state board of education, in accordance with sections
3319.31 and 3319.311 of the Revised Code, may suspend or revoke a
license as defined under division (A) of section 3319.31 of the
Revised Code that has been issued to any school district employee
found to have willfully reported erroneous, inaccurate, or
incomplete data to the education management information system.
(O) No person shall release or maintain any information about
any student in violation of this section. Whoever violates this
division is guilty of a misdemeanor of the fourth degree.
(P) The department shall disaggregate the data collected
under division (B)(1)(n) of this section according to the race and
socioeconomic status of the students assessed. No data collected
under that division shall be included on the report cards required
by section 3302.03 of the Revised Code.
(Q) If the department cannot compile any of the information
required by division (C)(5) of section 3302.03 of the Revised Code
based upon the data collected under this section, the department
shall develop a plan and a reasonable timeline for the collection
of any data necessary to comply with that division.
Sec. 3769.089. (A) As used in this chapter:
(1) "Racing day" means any day authorized under a permit
holder's permit on which, at a simulcast host, either a live
racing program is conducted as authorized under section 3769.07 of
the Revised Code or a simulcast racing program is conducted as
authorized under this section.
(2) "Live racing day" means a racing day on which a live
racing program is conducted by the permit holder along with
simulcasts of all other available racing programs from within this
state and simulcast racing programs from outside this state as
authorized under this section.
(3) "Live racing program" means a racing program consisting
of no fewer than seven live horse races at thoroughbred tracks and
nine live races at standardbred tracks and additional horse races
simulcast from other facilities located either inside or outside
this state, in which not more than two horse races on which
pari-mutuel wagering is conducted are simulcast from facilities
located outside this state. If only one racing meeting of a
particular breed of horse is being held, no fewer than nine live
horse races shall be held on a live racing day. If, during the
course of a racing meeting at a standardbred track, the racing
secretary of the permit holder determines that there is an
insufficient number of entries to have a full field of eight
horses for each of nine races on a live racing program, then the
racing secretary of the permit holder, after consultation with the
Ohio harness horsemens association, may reduce the number of live
races on that live racing program
from nine to either eight or
seven, as the racing secretary may determine. The racing secretary
shall not reduce the live racing program to less than seven live
races. If during the course of a meeting at a thoroughbred track,
the racing secretary of a permit holder determines that there is
an insufficient number of entries to have a full field of eight
horses for each of nine races on a live racing program, then the
racing secretary of the permit holder, with the consent of the
thoroughbred horsemens association, may reduce the number of live
races on that live racing program from nine to either eight or
seven, as the racing secretary may determine. The racing secretary
shall not reduce the live racing program to less than seven live
races. No more than seventeen races on which pari-mutuel wagering
is conducted, including both live races and races simulcast from
other facilities located either inside or outside this state,
shall be part of a live racing program.
(4) "Simulcast host" means a track or enclosure in this state
where, on a racing day, a permit holder is doing one or both of
the following:
(a) Conducting a live racing program and offering this
program for simulcasting to one or more simulcast guests and
satellite facilities in this state;
(b) Receiving a simulcast racing program for simulcasting to
one or more simulcast guests and satellite facilities in this
state.
(5) "Simulcast guest" means any track or enclosure that is
receiving from a simulcast host, on a day other than a racing day,
a live racing program or a simulcast racing program.
(6) "Simulcast racing program" means all simulcasts of horse
races to a simulcast host or simulcast guest on a racing day or on
any other day on which pari-mutuel wagering is conducted, but does
not include any simulcast horse races from inside or outside this
state that are included in a simulcast host's live racing program.
(7) "Satellite facility" has the same meaning as in section
3769.25 of the Revised Code.
(8) "Collection and settlement agent" has the same meaning as
in section 3769.0810 of the Revised Code.
(9) "Special racing event" means individual races in live
racing programs or simulcast racing programs, and simulcast racing
programs on special event days under division (C) of this section,
conducted at facilities located outside this state for which the
track, racing association, or state regulatory agency conducting
such races charges a simulcast host a fee for the privilege of
receiving a simulcast of such races into this state that is higher
than the customary and regular fee charged for simulcast races
because of the status or popularity of such races.
(B) The state racing commission shall, upon request by any
permit holder, permit electronically televised simulcasts of horse
races at the permit holder's track or enclosure on racing days
authorized by the permit holder's permit. Except as provided in
division (B) of this section, the commission shall not permit the
simulcast of any simulcast racing program conducted at tracks or
facilities located outside this state unless the out-of-state
simulcast racing program is available to all permit holders,
whether serving as simulcast hosts or simulcast guests, and all
satellite facilities, in this state open and operating on that
day. A permit holder or satellite facility may inform the
commission that it waives the right to receive the simulcast of a
simulcast racing program or a race in a simulcast racing program
on that day and in this event the simulcast racing program or
simulcast race shall be available to all other simulcast hosts,
simulcast guests, and satellite facilities open and operating in
this state on that day.
In order for a permit holder to offer simulcasts of horse
races conducted at facilities located outside this state, the
permit holder shall have conducted live racing programs during the
immediately preceding calendar year on a number of days that is
not less than the number of regular live racing days it conducted
in calendar year 1991, not including additional racing days
conducted in calendar year 1991 by the permit holder at a
winterized facility under a permit issued under section 3769.07 of
the Revised Code, as certified by the commission. In satisfying
the foregoing requirement for live racing days during the
immediately preceding calendar year, a permit holder may include
the number of days on which live racing programs were conducted
under a permit issued under section 3769.07 of the Revised Code
for additional racing days at a winterized facility. In addition,
in order for a permit holder to offer simulcasts of horse races
conducted at facilities located outside this state, the permit
holder shall offer all simulcasts of horse races conducted in this
state made available to it.
In order for a permit holder to offer simulcasts of races
conducted at race tracks located outside this state at the same
time and during the hours in which the live races of a live racing
program are being conducted at its track, a permit holder
conducting a thoroughbred live racing program shall obtain the
consent of the thoroughbred horsemens association and a permit
holder conducting a harness live racing program shall obtain the
consent of the Ohio harness horsemens association. The consent of
the horsemen's organization shall not be unreasonably withheld,
and shall be consistent with the interest of preserving live
racing in this state. If a horsemen's organization withholds its
consent, the permit holder may file an objection with the
commission, which shall promptly consider the objection and
determine whether the horsemen's organization's action in
withholding consent is without substantial merit and, if the
commission so determines, shall authorize the permit holder to
simulcast the simulcast racing programs. The determination of the
commission is final. A permit holder, as a simulcast host, may
offer simulcast racing programs at its track or enclosure of races
conducted at tracks and facilities located outside this state
prior to the commencement of, and following the conclusion of, its
live races without obtaining the consent of a horsemen's
organization under this division.
(1) A permit holder shall conduct a minimum of seventy-five
live racing days in calendar year 2013. The live racing days shall
be selected by the permit holder, but are subject to approval of
the commission.
(2) A permit holder shall conduct a minimum of one hundred
live racing days in calendar year 2014. The live racing days shall
be selected by the permit holder, but are subject to approval of
the commission.
(3) A permit holder shall conduct a minimum of one hundred
twenty-five live racing days in calendar year 2015 and each
subsequent calendar year. The live racing days shall be selected
by the permit holder but are subject to approval of the
commission.
(4) In addition to the required live racing days, a permit
holder shall simulcast a simulcast racing program on a minimum of
three hundred sixty days each calendar year. The permit holder
shall simulcast all simulcast racing programs conducted in this
state and made available to the permit holder and simulcast racing
programs conducted outside this state.
(5) The commission may make exception to the required minimum
number of live racing days or simulcast racing program days in
instances of natural disaster or other emergency circumstances as
defined by the commission, in its sole discretion. The horsemen's
associations may negotiate an agreement with a permit holder to
reduce the number of live racing days as provided in division (K)
of this section. These negotiations shall not reduce the number of
live racing days to less than fifty days per calendar year.
(6) To satisfy the requirement of live racing days, a permit
holder may include the number of days on which live racing
programs were conducted under a permit issued under section
3769.07 of the Revised Code for racing days authorized at a
winterized facility.
(7) Notwithstanding any other provision related to simulcast
racing programs, in order for a permit holder to offer simulcast
racing programs of races conducted at tracks located outside this
state at the same time and during the hours in which the live
races of a live racing program are being conducted at its track, a
permit holder conducting a thoroughbred live racing program shall
obtain the consent of the thoroughbred horsemen's association and
a permit holder conducting a harness live racing program shall
obtain the consent of the Ohio harness horsemen's association. The
consent of the applicable horsemen's association shall be
consistent with the interest of preserving live racing in this
state. A permit holder, as a simulcast host, may offer simulcast
racing programs at its track or enclosure of races conducted at
tracks and facilities located outside this state before the
commencement of, and following the conclusion of, its live races
without obtaining the consent of a horsemen's association under
this division.
(C) The commission shall allocate to each track one racing
day for each permit holder during each calendar year for the
conduct of a live racing program on which a permit holder may
conduct as few as one live horse race, with the remainder of the
horse races on that racing day on which pari-mutuel wagering is
conducted as part of the live racing program being simulcast from
other tracks and facilities located either inside or outside this
state. In addition, the commission may allocate to each permit
holder racing days on which it may as part of a live racing
program simulcast more than two horse races from facilities
located outside this state if the horse races involve a national
wagering pool and pari-mutuel wagering is conducted on the
national wagering pool, but on such a racing day there shall in no
event be more than two horse races simulcast from facilities
located outside this state included in a live racing program on
which separate pari-mutuel wagering is conducted. As used in this
division, "national wagering pool" means an interstate or
intrastate common pari-mutuel wagering pool involving two or more
selections covering two or more horse races conducted at tracks
located inside or outside this state.
In emergency situations, the commission may authorize a live
racing day at a track in which all horse races on that racing day
on which pari-mutuel wagering is conducted are simulcast from
tracks and facilities located either inside or outside this state
with the consent of the thoroughbred horsemens association for a
track conducting a thoroughbred live racing program and with the
consent of the Ohio harness horsemens association for a track
conducting a harness live racing program. If a horsemen's
organization withholds its consent, the permit holder may file an
objection with the commission, which shall promptly consider the
objection and determine whether the horsemen's organization's
action in withholding consent is without substantial merit and, if
the commission so determines, shall authorize the permit holder to
simulcast the simulcast racing programs. The determination of the
commission is final.
(D) On any day that a racing day has been applied for at any
track in this state, each track in this state may operate as
either a simulcast host or a simulcast guest and may conduct, with
the approval of the state racing commission, pari-mutuel wagering
on all simulcasts of races conducted inside this state made
available to it plus all simulcasts of races conducted at
facilities located outside this state as determined by the
simulcast hosts. Except as otherwise provided in this section, any
simulcast host or simulcast guest may receive and conduct
simulcast racing programs that feature any breed of horse at any
time of day, as authorized by the commission. Those persons
holding state fair, county fair, or other fair permits shall not
receive a simulcast racing program on which pari-mutuel wagering
is conducted, except that a holder of a permit issued under
section 3769.07 of the Revised Code that has been authorized by
the commission to conduct races of the state fair, a county fair,
or other fair at a commercial track may receive and conduct
simulcast racing programs as a simulcast host or simulcast guest
at the same time in conjunction with the live racing program of
the state fair, county fair, or other fair permit holder conducted
at its track.
The simulcast hosts, with the approval of the state racing
commission, shall determine which simulcast racing programs
offered by race tracks located outside this state will be
simulcast at their tracks and at all simulcast hosts, simulcast
guests, and satellite facilities in this state that are open and
operating during the hours that the simulcast hosts are operating.
Simulcast guests and satellite facilities shall receive all
approved simulcast racing programs offered by simulcast hosts. In
addition, a simulcast host and simulcast guest, with the approval
of the commission, may also receive simulcast horse races and
simulcast racing programs not agreed to by simulcast hosts.
A simulcast host that normally operates during the day only
may serve as a simulcast host for only day-simulcast racing
programs, which include all simulcast racing programs that
commence at a track located outside this state on or before four
p.m. A simulcast host that normally operates during the evening
only may serve as a simulcast host for only evening-simulcast
racing programs, which include all simulcast racing programs that
commence at a track located outside this state on or after three
p.m. A simulcast host that normally operates during the evening,
but that under its permit conducts live racing programs during the
day, may serve as a simulcast host for day-simulcast racing
programs. A permit holder that is offering at its track simulcast
racing programs that commence at a track located outside this
state on or before four p.m. and simulcast racing programs that
commence at a track located outside this state on or after three
p.m. may serve as a simulcast host for both the day-simulcast
racing program and the evening-simulcast racing program only if no
other permit holder is serving as a simulcast host for the other
simulcast racing programs. The times listed in this and the
immediately following paragraphs are standard time as described in
section 1.04 of the Revised Code and in the "Uniform Time Act of
1966," 80 Stat. 107, 15 U.S.C. 260 to 265.
If a simulcast host is conducting a racing program that
features thoroughbred or quarter horses on the same day that
another simulcast host is conducting a live racing program that
features harness horses at a track located in the same county as,
or within twenty miles of, the track of the first simulcast host,
the first simulcast host shall not conduct pari-mutuel wagering on
simulcast racing programs that commence after four p.m. on that
day and the second simulcast host shall not conduct wagering on
simulcast racing programs that commence before three p.m. on that
day.
A simulcast host that is conducting a live racing program and
is simulcasting that program to other simulcast hosts and
simulcast guests in this state shall receive from each simulcast
host and each simulcast guest receiving the simulcast an
intrastate simulcast fee of one and three-eighths per cent of the
amounts wagered on such simulcast racing program at its
facilities. The simulcast hosts and simulcast guests receiving
such simulcast racing program shall pay the intrastate simulcast
fee to the collection and settlement agent, and the fee shall be
disbursed by the agent, at the time and in the manner provided in
section 3769.0810 of the Revised Code.
(E)(1) The moneys wagered on simulcast racing programs on a
racing day shall be separated from the moneys wagered on the live
racing program on that racing day. From the moneys wagered on the
simulcast races, each permit holder may retain as a commission the
percentage of the amount wagered as specified in sections 3769.08
and 3769.087 of the Revised Code, as applicable, and shall pay, by
check, draft, or money order to the state tax commissioner, as a
tax, the tax specified in sections 3769.08 and 3769.087 of the
Revised Code, as applicable. From the tax collected, the tax
commissioner shall make the distributions to the respective funds,
and in the proper amounts, as required by sections 3769.08 and
3769.087 of the Revised Code, as applicable. Except as provided in
divisions (E)(2) and (3) of this section, from the amount
remaining after the payment of state taxes on the moneys wagered
on live racing programs and on the moneys wagered on simulcast
racing programs, a permit holder shall retain an amount equal to
two and three-eights
three-eighths per cent of the amount wagered
on live racing programs and on intrastate and interstate simulcast
racing programs simulcast at its track and on the amount wagered
on the live racing programs and simulcast racing programs at a
satellite facility allocated to it under section 3769.26 of the
Revised Code, as a fee to pay for those costs associated with the
reception and transmission of simulcasts and the administrative
cost of the conduct of live racing programs and simulcast racing
programs. From the remaining balance, one-half shall be retained
by the permit holder for purses. On a day when a permit holder
conducts a live racing program, all purse money generated from
wagering on live racing programs and on simulcast racing programs
at its track shall be used for that permit holder's purse account.
On a day when a permit holder operates as a simulcast host with no
live racing program, or operates as a simulcast guest, all purse
money generated from wagering on intrastate and interstate
simulcast racing programs shall be paid to the state racing
commission for deposit into the Ohio combined simulcast horse
racing purse fund created under this section. In addition, on a
day when a permit holder serves as a simulcast host for a
satellite facility, all purse money generated from amounts wagered
at the satellite facility allocated to the permit holder under
section 3769.26 of the Revised Code shall be paid to the
commission for deposit into the Ohio simulcast horse racing purse
fund.
(2) If there are not four satellite facilities in operation
in this state within one year after the effective date of this
section
September 19, 1996, or if there are not seven satellite
facilities in operation in this state within two years after
the
effective date of this section September 19, 1996, or if there are
not ten satellite facilities in operation in this state within
three years after the effective date of this section September 19,
1996, then in any such event the amount to be retained as a fee by
the permit holder under division (E)(1) of this section shall be
one and seven-eighths per cent until such time as the number of
satellite facilities specified in division (E)(2) of this section
are in operation. For good cause shown, the thoroughbred horsemens
association and Ohio harness horsemens association may waive the
requirements of division (E)(2) of this section or extend the date
for compliance as to any year by filing a written notification
with the state racing commission.
(3) If a simulcast racing program simulcast by a simulcast
host at its track or enclosure and to other simulcast hosts,
simulcast guests, and satellite facilities in this state is a
special racing event, the permit holder offering the special
racing event and other simulcast hosts, simulcast guests, and
satellite facilities receiving the special racing event shall not
retain the fee provided under division (E)(1) or (2) of this
section but shall retain from the moneys wagered on the special
racing event an amount equal to the fee charged by the track,
racing association, or state regulatory agency simulcasting the
special racing event to the simulcast host. From the remaining
balance, one-half shall be retained by the permit holder for
purses in the manner provided in division (E)(1) of this section.
A permit holder proposing to simulcast a special racing event
as a simulcast host shall advise its horsemen's organization of
the proposed schedule of the special racing event and obtain its
consent to this schedule. The consent of the horsemen's
organization shall not be unreasonably withheld and shall be
consistent with the interest of preserving live racing in this
state. If the horsemen's organization withholds its consent, the
permit holder may file an objection with the state racing
commission, which shall promptly consider the objection and
determine whether the organization's action in withholding consent
is without substantial merit and, if the commission so determines,
shall authorize the permit holder to simulcast the special racing
event. The determination of the commission is final.
(F) There is hereby created in the state treasury the Ohio
combined simulcast horse racing purse fund, to consist of moneys
paid into it by permit holders pursuant to division (E) of this
section and by satellite facilities pursuant to division (F) of
section 3769.26 of the Revised Code. Moneys to the credit of the
fund, including interest earned thereon, may be used by the
commission for the costs of administering this division and the
balance shall be distributed among permit holders no less
frequently than monthly to each permit holder's purse account on
order of the commission.
For each calendar year, permit holders at each track shall
receive a share of each distribution of the Ohio combined
simulcast horse racing purse fund in the same percentage, rounded
to the nearest one-hundredth of the amount of each distribution,
as the average total amount wagered at the track on racing days at
which live racing programs were conducted, including the amount
allocated to the track under section 3769.26 of the Revised Code
for live races, during the five calendar years immediately
preceding the year for which the distribution is made bears to the
average annual total amount wagered at all tracks in the state
operating under permits issued by the state racing commission
under section 3769.07, 3769.071, or 3769.072 of the Revised Code
on all racing days at which live racing programs were conducted,
including the amount allocated to the tracks under section 3769.26
of the Revised Code for live races, during the five calendar years
immediately preceding the year for which the distribution is made.
By the thirty-first day of January of each year the commission
shall calculate the share of the permit holders at each track for
that year, shall enter the share percentages in its official
records, and shall notify all permit holders of the share
percentages of all tracks for that calendar year.
The permit holders at each track, with the approval of the
commission, shall allocate their share of the fund as distributed
to the purse account of each permit holder for each race meeting.
The commission shall cause to be kept accurate records of its
administration of the fund, including all administrative expenses
incurred by it and charged to the fund, and of distributions to
permit holders. These records are public records available for
inspection at any time during the regular business hours of the
commission by any permit holder or horsemen's organization, by an
authorized agent of the permit holder or horsemen's organization,
or by any other person.
(G) Upon the approval of the commission, a permit holder
conducting live racing programs may transmit electronically
televised simulcasts of horse races conducted at the permit
holder's track to racing associations, tracks, and facilities
located outside this state for the conduct of pari-mutuel wagering
thereon, at the times, on the terms, and for the fee agreed upon
by the permit holder and the receiving racing association, track,
or facility. From the fees paid to the permit holder for such
simulcasts, a permit holder shall retain for the costs of
administration a fee in an amount equal to one per cent of the
amount wagered on the races simulcast by the permit holder. From
the remaining balance of the fee, one-half shall be retained by
the permit holder for purses, except that notwithstanding the fee
arrangement between the permit holder and the receiving racing
association, track, or facility, the permit holder shall deposit
into its purse account not less than an amount equal to
three-fourths of one per cent of the amount wagered at racing
associations, tracks, and facilities located outside the state on
the races simulcast by the permit holder.
All televised simulcasts of horse races conducted in this
state to racing associations, tracks, and facilities located
outside this state shall comply with the "Interstate Horse Racing
Act of 1978," 92 Stat. 1811, 15 U.S.C.A. 3001 to 3007. The consent
of the horsemen's organization at the track of the permit holder
applying to the commission to simulcast horse races conducted at
the permit holder's track to racing associations, tracks, and
facilities located outside this state shall not be unreasonably
withheld and shall be consistent with the interest of preserving
live racing. If a horsemen's organization withholds its consent,
the permit holder may file an objection with the commission, which
shall promptly consider the objection and determine whether the
horsemen's organization's action in withholding consent is without
substantial merit and, if the commission so determines, shall
authorize the permit holder to simulcast the races. The
determination of the commission is final.
(H)(1) The state racing commission may authorize any permit
holder that is authorized to conduct live horse racing on racing
days and that conducts pari-mutuel wagering on simulcasts of horse
races under this section that are conducted at race tracks either
inside or outside this state to conduct, supervise, and
participate in interstate and intrastate common pari-mutuel
wagering pools on those races in the manner provided in division
(H) of this section. Except as otherwise expressly provided in
division (H) of this section or in the rules of the state racing
commission, the provisions of this chapter that govern pari-mutuel
wagering apply to interstate or intrastate common pari-mutuel
wagering pools.
(2) Subject to the approval of the state racing commission,
the types of wagering, calculation of the commission retained by
the permit holder, tax rates, distribution of winnings, and rules
of racing in effect for pari-mutuel wagering pools at the host
track may govern wagers placed at a receiving track in this state
and merged into an interstate or intrastate common pari-mutuel
wagering pool. Breakage from interstate or intrastate common
pari-mutuel wagering pools shall be calculated in accordance with
the rules that govern the host track and shall be distributed
among the tracks participating in the interstate or intrastate
common wagering pool in a manner agreed to by the participating
tracks and the host track. An interstate common pari-mutuel
wagering pool formed under division (H)(3) of this section is
subject to that division rather than to division (H)(2) of this
section.
(3) Subject to the approval of the state racing commission,
an interstate common pari-mutuel wagering pool may be formed
between a permit holder and one or more receiving tracks located
in states other than the state in which the host track is located.
The commission may approve types of wagering, calculation of the
commission retained by the permit holder, tax rates, distribution
of winnings, rules of racing, and calculation of breakage for such
an interstate common pari-mutuel wagering pool that differ from
those that would otherwise be applied in this state under this
chapter but that are consistent for all tracks participating in
the interstate common pari-mutuel wagering pool formed under
division (H)(3) of this section. (4) As used in division (H) of this section:
(a) "Host track" means a track where live horse races are
conducted and offered for simulcasting to receiving tracks.
(b) "Receiving track" means a track where simulcasts of races
from a host track are displayed and wagered on.
(I) Each permit holder is responsible for paying all costs
associated with the up-link for, and reception of, simulcasts, and
the conduct and operation of simulcast racing programs, for all
fees and costs associated with serving as a simulcast host or
simulcast guest, and for any required fees payable to the tracks,
racing associations, or state regulatory agencies where simulcast
racing is conducted at tracks located outside this state.
(J) No license, fee, or excise tax, other than as specified
in division (E) of this section, shall be assessed upon or
collected from a permit holder or the owners of a permit holder in
connection with, or pertaining to, the operation and conduct of
simulcast racing programs in this state, by any county, township,
municipal corporation, district, or other body having the
authority to assess or collect a tax or fee.
(K)(1) Permit holders operating tracks within the same county
or adjacent counties that are conducting simulcast racing programs
under this section may enter into agreements regarding the conduct
of simulcast racing programs at their respective tracks and the
sharing of the retained commissions therefrom, for such periods of
time, upon such terms and conditions, and subject to such rights
and obligations, as the contracting permit holders consider
appropriate under the circumstances. Permit holders
so contracting
shall notify the state racing commission of their entry into an
agreement pursuant to this division, the names of the permit
holders that are parties to the agreement, and the length of the
term of time the agreement shall be in effect.
(2) Permit holders and the thoroughbred horsemens association
and Ohio harness horsemens association may agree to do any of the
following:
(a) Increase or reduce the fees and amounts to be retained by
the permit holders under this section;
(b) Increase or reduce the fees and amounts to be allocated
to the purse accounts or of permit holders under this section;
(c) Increase or reduce the fees to be paid between and among
simulcast hosts and simulcast guests under this section and under
division (C) of section 3769.0810 of the Revised Code;
(d) Modify, suspend, or waive the requirements set forth in
division (B) of this section as to any permit holder or as to all
permit holders.
All permit holders and both horsemen's organizations shall
approve such agreement. Any agreement entered into under division
(K)(2) of this section shall set forth the effective date of any
such increase or reduction, and the terms and provisions of the
agreement, and a copy of the agreement shall be filed with the
state racing commission.
Sec. 3770.02. (A) Subject to the advice and consent of the
senate, the governor shall appoint a director of the state lottery
commission who shall serve at the pleasure of the governor. The
director shall devote full time to the duties of the office and
shall hold no other office or employment. The director shall meet
all requirements for appointment as a member of the commission and
shall, by experience and training, possess management skills that
equip the director to administer an enterprise of the nature of a
state lottery. The director shall receive an annual salary in
accordance with pay range 48 of section 124.152 of the Revised
Code.
(B)(1) The director shall attend all meetings of the
commission and shall act as its secretary. The director shall keep
a record of all commission proceedings and shall keep the
commission's records, files, and documents at the commission's
principal office. All records of the commission's meetings shall
be available for inspection by any member of the public, upon a
showing of good cause and prior notification to the director.
(2) The director shall be the commission's executive officer
and shall be responsible for keeping all commission records and
supervising and administering the state lottery in accordance with
this chapter, and carrying out all commission rules adopted under
section 3770.03 of the Revised Code.
(C)(1) The director shall appoint an assistant director,
deputy directors of marketing, operations, sales, finance, public
relations, security, and administration, and as many regional
managers as are required. The director may also appoint necessary
professional, technical, and clerical assistants. All such
officers and employees shall be appointed and compensated pursuant
to Chapter 124. of the Revised Code. Regional and assistant
regional managers, sales representatives, and any lottery
executive account representatives shall remain in the unclassified
service.
(2) The director, in consultation with the director of
administrative services, may establish standards of proficiency
and productivity for commission field representatives.
(D) The director shall request the bureau of criminal
identification and investigation, the department of public safety,
or any other state, local, or federal agency to supply the
director with the criminal records of any job applicant and may
periodically request the criminal records of commission employees.
At or prior to the time of making such a request, the director
shall require a job applicant or commission employee to obtain
fingerprint cards prescribed by the superintendent of the bureau
of criminal identification and investigation at a qualified law
enforcement agency, and the director shall cause these fingerprint
cards to be forwarded to the bureau of criminal identification and
investigation and the federal bureau of investigation. The
commission shall assume the cost of obtaining the fingerprint
cards and shall pay to each agency supplying criminal records for
each investigation under this division a reasonable fee, as
determined by the agency.
(E) The director shall license lottery sales agents pursuant
to section 3770.05 of the Revised Code and, when it is considered
necessary, may revoke or suspend the license of any lottery sales
agent. The director may license video lottery technology
providers, independent testing laboratories, and gaming employees,
and promulgate rules relating thereto. When the director considers
it necessary, the director may suspend or revoke the license of a
video lottery technology provider, independent testing laboratory,
or gaming employee, including suspension or revocation without
affording an opportunity for a prior hearing under section 119.07
of the Revised Code when the public safety, convenience, or trust
requires immediate action.
(F) The director shall confer at least once each month with
the commission, at which time the director shall advise it
regarding the operation and administration of the lottery. The
director shall make available at the request of the commission all
documents, files, and other records pertaining to the operation
and administration of the lottery. The director shall prepare and
make available to the commission each month a complete and
accurate accounting of lottery revenues, prize money disbursements
and the cost of goods and services awarded as prizes, operating
expenses, and all other relevant financial information, including
an accounting of all transfers made from any lottery funds in the
custody of the treasurer of state to benefit education.
(G) The director may enter into contracts for the operation
or promotion of the lottery pursuant to Chapter 125. of the
Revised Code.
(H)(1) Pursuant to rules adopted by the commission under
section 3770.03 of the Revised Code, the director shall require
any lottery sales agents to either mail directly to the commission
or deposit to the credit of the state lottery fund, in banking
institutions designated by the treasurer of state, net proceeds
due the commission as determined by the director, and to file with
the director or the director's designee reports of their receipts
and transactions in the sale of lottery tickets in the form
required by the director.
(2) Pursuant to rules adopted by the commission under Chapter
119. of the Revised Code, the director may impose penalties for
the failure of a sales agent to transfer funds to the commission
in a timely manner. Penalties may include monetary penalties,
immediate suspension or revocation of a license, or any other
penalty the commission adopts by rule.
(I) The director may arrange for any person, or any banking
institution, to perform functions and services in connection with
the operation of the lottery as the director may consider
necessary to carry out this chapter.
(J)(1) As used in this chapter, "statewide joint lottery
game" means a lottery game that the commission sells solely within
this state under an agreement with other lottery jurisdictions to
sell the same lottery game solely within their statewide or other
jurisdictional boundaries.
(2) If the governor directs the director to do so, the
director shall enter into an agreement with other lottery
jurisdictions to conduct statewide joint lottery games. If the
governor signs the agreement personally or by means of an
authenticating officer pursuant to section 107.15 of the Revised
Code, the director then may conduct statewide joint lottery games
under the agreement.
(3) The entire net proceeds from any statewide joint lottery
games shall be used to fund elementary, secondary, vocational, and
special education programs in this state.
(4) The commission shall conduct any statewide joint lottery
games in accordance with rules it adopts under division (B)(5) of
section 3770.03 of the Revised Code.
(K)(1) The director shall enter into an agreement with the
department of alcohol and drug addiction services under which the
department shall provide a program of gambling addiction services
on behalf of the commission. The commission shall pay the costs of
the program provided pursuant to the agreement.
(2) As used in this section, "gambling addiction services"
has the same meaning as in section 3793.01 of the Revised Code.
Sec. 3770.03. (A) The state lottery commission shall
promulgate rules under which a statewide lottery may be conducted,
which includes, and since the original enactment of this section
has included, the authority for the commission to operate video
lottery terminal games. Any reference in this chapter to tickets
shall not be construed to in any way limit the authority of the
commission to operate video lottery terminal games. Nothing in
this chapter shall restrict the authority of the commission to
promulgate rules related to the operation of games utilizing video
lottery terminals as described in section 3770.21 of the Revised
Code. The rules shall be promulgated pursuant to Chapter 119. of
the Revised Code, except that instant game rules other than those
for video lottery terminal games shall be promulgated pursuant to
section 111.15 of the Revised Code but are not subject to division
(D) of that section, and except that those rules for video lottery
terminal games shall be approved by resolution of the commission.
Subjects covered in these rules shall include, but need not be
limited to, the following:
(1) The type of lottery to be conducted;
(2) The prices of tickets in the lottery;
(3) The number, nature, and value of prize awards, the manner
and frequency of prize drawings, and the manner in which prizes
shall be awarded to holders of winning tickets.
(B) The commission shall promulgate rules, in addition to
those described in division (A) of this section, pursuant to
Chapter 119. of the Revised Code under which a statewide lottery
and statewide joint lottery games may be conducted. Subjects
covered in these rules shall include, but not be limited to, the
following:
(1) The locations at which lottery tickets may be sold and
the manner in which they are to be sold. These rules may authorize
the sale of lottery tickets by commission personnel or other
licensed individuals from traveling show wagons at the state fair,
and at any other expositions the director of the commission
considers acceptable. These rules shall prohibit commission
personnel or other licensed individuals from soliciting from an
exposition the right to sell lottery tickets at that exposition,
but shall allow commission personnel or other licensed individuals
to sell lottery tickets at an exposition if the exposition
requests commission personnel or licensed individuals to do so.
These rules may also address the accessibility of sales agent
locations to commission products in accordance with the "Americans
with Disabilities Act of 1990," 104 Stat. 327, 42 U.S.C.A. 12101
et seq.
(2) The manner in which lottery sales revenues are to be
collected, including authorization for the director to impose
penalties for failure by lottery sales agents to transfer revenues
to the commission in a timely manner;
(3) The amount of compensation to be paid licensed lottery
sales agents;
(4) The substantive criteria for the licensing of lottery
sales agents consistent with section 3770.05 of the Revised Code,
and procedures for revoking or suspending their licenses
consistent with Chapter 119. of the Revised Code. If
circumstances, such as the nonpayment of funds owed by a lottery
sales agent, or other circumstances related to the public safety,
convenience, or trust, require immediate action, the director may
suspend a license without affording an opportunity for a prior
hearing under section 119.07 of the Revised Code.
(5) Special game rules to implement any agreements signed by
the governor that the director enters into with other lottery
jurisdictions under division (J) of section 3770.02 of the Revised
Code to conduct statewide joint lottery games. The rules shall
require that the entire net proceeds of those games that remain,
after associated operating expenses, prize disbursements, lottery
sales agent bonuses, commissions, and reimbursements, and any
other expenses necessary to comply with the agreements or the
rules are deducted from the gross proceeds of those games, be
transferred to the lottery profits education fund under division
(B) of section 3770.06 of the Revised Code.
(6) Any other subjects the commission determines are
necessary for the operation of video lottery terminal games,
including the establishment of any fees, fines, or payment
schedules.
(C) Chapter 2915. of the Revised Code does not apply to,
affect, or prohibit lotteries conducted pursuant to this chapter.
(D) The commission may promulgate rules, in addition to those
described in divisions (A) and (B) of this section, that establish
standards governing the display of advertising and celebrity
images on lottery tickets and on other items that are used in the
conduct of, or to promote, the statewide lottery and statewide
joint lottery games. Any revenue derived from the sale of
advertising displayed on lottery tickets and on those other items
shall be considered, for purposes of section 3770.06 of the
Revised Code, to be related proceeds in connection with the
statewide lottery or gross proceeds from statewide joint lottery
games, as applicable.
(E)(1) The commission shall meet with the director at least
once each month and shall convene other meetings at the request of
the chairperson or any five of the members. No action taken by the
commission shall be binding unless at least five of the members
present vote in favor of the action. A written record shall be
made of the proceedings of each meeting and shall be transmitted
forthwith to the governor, the president of the senate, the senate
minority leader, the speaker of the house of representatives, and
the house minority leader.
(2) The director shall present to the commission a report
each month, showing the total revenues, prize disbursements, and
operating expenses of the state lottery for the preceding month.
As soon as practicable after the end of each fiscal year, the
commission shall prepare and transmit to the governor and the
general assembly a report of lottery revenues, prize
disbursements, and operating expenses for the preceding fiscal
year and any recommendations for legislation considered necessary
by the commission.
Sec. 3770.05. (A) As used in this section, "person" means
any person, association, corporation, partnership, club, trust,
estate, society, receiver, trustee, person acting in a fiduciary
or representative capacity, instrumentality of the state or any of
its political subdivisions, or any other combination of
individuals meeting the requirements set forth in this section or
established by rule or order of the state lottery commission.
(B) The director of the state lottery commission may license
any person as a lottery sales agent. No license shall be issued to
any person or group of persons to engage in the sale of lottery
tickets as the person's or group's sole occupation or business.
Before issuing any license to a lottery sales agent, the
director shall consider all of the following:
(1) The financial responsibility and security of the
applicant and the applicant's business or activity;
(2) The accessibility of the applicant's place of business or
activity to the public;
(3) The sufficiency of existing licensed agents to serve the
public interest;
(4) The volume of expected sales by the applicant;
(5) Any other factors pertaining to the public interest,
convenience, or trust.
(C) Except as otherwise provided in division (F) of this
section, the director of the state lottery commission shall refuse
to grant, or shall suspend or revoke, a license if the applicant
or licensee:
(1) Has been convicted of a felony or has been convicted of a
crime involving moral turpitude;
(2) Has been convicted of an offense that involves illegal
gambling;
(3) Has been found guilty of fraud or misrepresentation in
any connection;
(4) Has been found to have violated any rule or order of the
commission; or
(5) Has been convicted of illegal trafficking in supplemental
nutrition assistance program benefits.
(D) Except as otherwise provided in division (F) of this
section, the director of the state lottery commission shall refuse
to grant, or shall suspend or revoke, a license if the applicant
or licensee is a corporation and any of the following applies:
(1) Any of the corporation's directors, officers, or
controlling shareholders has been found guilty of any of the
activities specified in divisions (C)(1) to (5) of this section;
(2) It appears to the director of the state lottery
commission that, due to the experience, character, or general
fitness of any director, officer, or controlling shareholder of
the corporation, the granting of a license as a lottery sales
agent would be inconsistent with the public interest, convenience,
or trust;
(3) The corporation is not the owner or lessee of the
business at which it would conduct a lottery sales agency pursuant
to the license applied for;
(4) Any person, firm, association, or corporation other than
the applicant or licensee shares or will share in the profits of
the applicant or licensee, other than receiving dividends or
distributions as a shareholder, or participates or will
participate in the management of the affairs of the applicant or
licensee.
(E)(1) The director of the state lottery commission shall
refuse to grant a license to an applicant for a lottery sales
agent license and shall revoke a lottery sales agent license if
the applicant or licensee is or has been convicted of a violation
of division (A) or (C)(1) of section 2913.46 of the Revised Code.
(2) The director shall refuse to grant a license to an
applicant for a lottery sales agent license that is a corporation
and shall revoke the lottery sales agent license of a corporation
if the corporation is or has been convicted of a violation of
division (A) or (C)(1) of section 2913.46 of the Revised Code.
(F) The director of the state lottery commission shall
request the bureau of criminal identification and investigation,
the department of public safety, or any other state, local, or
federal agency to supply the director with the criminal records of
any applicant for a lottery sales agent license, and may
periodically request the criminal records of any person to whom a
lottery sales agent license has been issued. At or prior to the
time of making such a request, the director shall require an
applicant or licensee to obtain fingerprint impressions on
fingerprint cards prescribed by the superintendent of the bureau
of criminal identification and investigation at a qualified law
enforcement agency, and the director shall cause those fingerprint
cards to be forwarded to the bureau of criminal identification and
investigation, to the federal bureau of investigation, or to both
bureaus. The commission shall assume the cost of obtaining the
fingerprint cards.
The director shall pay to each agency supplying criminal
records for each investigation a reasonable fee, as determined by
the agency.
The commission may adopt uniform rules specifying time
periods after which the persons described in divisions (C)(1) to
(5) and (D)(1) to (4) of this section may be issued a license and
establishing requirements for those persons to seek a court order
to have records sealed in accordance with law.
(G)(1) Each applicant for a lottery sales agent license shall
do both of the following:
(a) Pay fees to the state lottery commission, if required by
rule adopted by the director under Chapter 119. of the Revised
Code and the controlling board approves the fees;
(b) Prior to approval of the application, obtain a surety
bond in an amount the director determines by rule adopted under
Chapter 119. of the Revised Code or, alternatively, with the
director's approval, deposit the same amount into a dedicated
account for the benefit of the state lottery. The director also
may approve the obtaining of a surety bond to cover part of the
amount required, together with a dedicated account deposit to
cover the remainder of the amount required. The director also may
establish an alternative program or policy, with the approval of
the commission by rule adopted under Chapter 119. of the Revised
Code, that otherwise ensures the lottery's financial interests are
adequately protected. If such an alternative program or policy is
established, an applicant or lottery sales agent, subject to the
director's approval, may be permitted to participate in the
program or proceed under that policy in lieu of providing a surety
bond or dedicated amount.
A surety bond may be with any company that complies with the
bonding and surety laws of this state and the requirements
established by rules of the commission pursuant to this chapter. A
dedicated account deposit shall be conducted in accordance with
policies and procedures the director establishes.
A surety bond, dedicated account, other established program
or policy, or both any combination of these resources, as
applicable, may be used to pay for the lottery sales agent's
failure to make prompt and accurate payments for lottery ticket
sales, for missing or stolen lottery tickets, for damage to
equipment or materials issued to the lottery sales agent, or to
pay for expenses the commission incurs in connection with the
lottery sales agent's license.
(2) A lottery sales agent license is effective for at least
one year, but not more than three years.
A licensed lottery sales agent, on or before the date
established by the director, shall renew the agent's license and
provide at that time evidence to the director that the surety
bond, dedicated account deposit, or both, required under division
(G)(1)(b) of this section has been renewed or is active, whichever
applies.
Before the commission renews a lottery sales agent license,
the lottery sales agent shall submit a renewal fee to the
commission, if one is required by rule adopted by the director
under Chapter 119. of the Revised Code and the controlling board
approves the renewal fee. The renewal fee shall not exceed the
actual cost of administering the license renewal and processing
changes reflected in the renewal application. The renewal of the
license is effective for up to at least one year, but not more
than three years.
(3) A lottery sales agent license shall be complete,
accurate, and current at all times during the term of the license.
Any changes to an original license application or a renewal
application may subject the applicant or lottery sales agent, as
applicable, to paying an administrative fee that shall be in an
amount that the director determines by rule adopted under Chapter
119. of the Revised Code, that the controlling board approves, and
that shall not exceed the actual cost of administering and
processing the changes to an application.
(4) The relationship between the commission and a lottery
sales agent is one of trust. A lottery sales agent collects funds
on behalf of the commission through the sale of lottery tickets
for which the agent receives a compensation.
(H) Pending a final resolution of any question arising under
this section, the director of the state lottery commission may
issue a temporary lottery sales agent license, subject to the
terms and conditions the director considers appropriate.
(I) If a lottery sales agent's rental payments for the
lottery sales agent's premises are determined, in whole or in
part, by the amount of retail sales the lottery sales agent makes,
and if the rental agreement does not expressly provide that the
amount of those retail sales includes the amounts the lottery
sales agent receives from lottery ticket sales, only the amounts
the lottery sales agent receives as compensation from the state
lottery commission for selling lottery tickets shall be considered
to be amounts the lottery sales agent receives from the retail
sales the lottery sales agent makes, for the purpose of computing
the lottery sales agent's rental payments.
Sec. 3770.21. (A) As used in this section:
(1) "Video lottery terminal" means any electronic device
approved by the state lottery commission that provides immediate
prize determinations for participants on an electronic display.
(2) "Video lottery terminal promotional gaming credit" means
a video lottery terminal game credit, discount, or other similar
item issued to a patron to enable the placement of, or increase
in, a wager at a video lottery terminal.
(B) The state lottery commission shall include, in
conjunction with the state racing commission, in any rules adopted
concerning video lottery terminals, the level of minimum
investments that must be made by video lottery terminal licensees
in the buildings, fixtures, and grounds at the facilities,
including temporary facilities, in which the terminals will be
located, along with any standards and timetables for such
investments.
(C) Racetrack operators and management companies that are a
licensed lottery sales agent may provide video lottery terminal
promotional gaming credits to patrons for video lottery terminal
gaming. Video lottery terminal promotional gaming credits shall be
subject to oversight by the commission. The commission shall adopt
rules for video lottery terminal promotional gaming credits.
(D) No license or excise tax or fee not in effect on the
effective date of this section shall be assessed upon or collected
from a video lottery terminal licensee by any county, township,
municipal corporation, school district, or other political
subdivision of the state that has authority to assess or collect a
tax or fee by reason of the video lottery terminal related conduct
authorized by section 3770.03 of the Revised Code. This division
does not prohibit the imposition of taxes under Chapter 718. or
3769. of the Revised Code.
(D)(E) The supreme court shall have exclusive, original
jurisdiction over any claim asserting that this section or section
3770.03 of the Revised Code or any portion of those sections or
any rule adopted under those sections violates any provision of
the Ohio Constitution, any claim asserting that any action taken
by the governor or the lottery commission pursuant to those
sections violates any provision of the Ohio Constitution or any
provision of the Revised Code, or any claim asserting that any
portion of this section violates any provision of the Ohio
Constitution. If any claim over which the supreme court is granted
exclusive, original jurisdiction by this division is filed in any
lower court, the claim shall be dismissed by the court on the
ground that the court lacks jurisdiction to review it.
(E)(F) Should any portion of this section or of section
3770.03 of the Revised Code be found to be unenforceable or
invalid, it shall be severed and the remaining portions remain in
full force and effect.
Sec. 3770.22. (A) Any information concerning the following
that is submitted, collected, or gathered as part of an
application to the state lottery commission for a video lottery
related license under this chapter is confidential and not subject
to disclosure by a state agency or political subdivision as a
public record under section 149.43 of the Revised Code:
(1) A dependent of an applicant;
(2) The social security number, passport number, or federal
tax identification number of an applicant or the spouse of an
applicant;
(3) The home address and telephone number of an applicant or
the spouse or dependent of an applicant;
(4) An applicant's birth certificate;
(5) The driver's license number of an applicant or the
applicant's spouse;
(6) The name or address of a previous spouse of the
applicant;
(7) The date of birth of the applicant and the spouse of an
applicant;
(8) The place of birth of the applicant and the spouse of an
applicant;
(9) The personal financial information and records of an
applicant or of an employee or the spouse or dependent of an
applicant, including tax returns and information, and records of
criminal proceedings;
(10) Any information concerning a victim of domestic
violence, sexual assault, or stalking;
(11) The electronic mail address of the spouse or family
member of the applicant;
(12) Any trade secret, medical records, and patents or
exclusive licenses;
(13) Security information, including risk prevention plans,
detection and countermeasures, location of count rooms or other
money storage areas, emergency management plans, security and
surveillance plans, equipment and usage protocols, and theft and
fraud prevention plans and countermeasures.
(B) The individual's name, the individual's place of
employment, the individual's job title, and the individual's
gaming experience that is provided for an individual who holds,
held, or has applied for a video lottery related license under
this chapter is not confidential. The reason for denial or
revocation of a video lottery related license or for disciplinary
action against the individual is not confidential.
(C) An individual who holds, held, or has applied for a video
lottery related license under this chapter may waive the
confidentiality requirements of division (A) of this section.
(D) Confidential information received by the commission from
another jurisdiction relating to a person who holds, held, or has
applied for a license under this chapter is confidential and not
subject to disclosure as a public record under section 149.43 of
the Revised Code. The commission may share the information
referenced in this division with, or disclose the information to,
the inspector general, any appropriate prosecuting authority, any
law enforcement agency, or any other appropriate governmental or
licensing agency, if the agency that receives the information
complies with the same requirements regarding confidentiality as
those with which the commission must comply.
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 game" means any slot machine or table game as
defined in this chapter.
(E) "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)(F) "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)(G) "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)(H) "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)(I) "Cheat" means to alter the result of a casino game,
the element of chance, the operation of a machine used in a casino
game, or the method of selection of criteria that determines (a)
the result of the casino game, (b) the amount or frequency of
payment in a casino game, (c) the value of a wagering instrument,
or (d) the value of a wagering credit.
(J) "Commission" means the Ohio casino control commission.
(I)(K) "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)(L) "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)(M) "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 does any of the following:
(1) Has the power or right to control, or holds with power to
vote, any part of an applicant, a casino operator, management
company, or gaming-related vendor license applicant or licensee;
(2) Holds an ownership interest of five per cent or more, as
determined by the commission, in a casino operator, management
company, or gaming-related vendor license applicant or licensee;
(3) Holds voting rights with the power to vote five per cent
or more of the outstanding voting rights of a casino operator,
management company, or gaming-related vendor applicant or
licensee.
(L)(N) "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)(O) "Institutional investor" means any of the following
entities owning one more than five 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, but less than
fifteen per cent, of an 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, including a hedge fund, mutual fund, or private equity
fund, 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, and that does not exercise control over the
affairs of a licensee and its ownership interest in a licensee is
for investment purposes only, as set forth in division (E) of
section 3772.10 of the Revised Code.
(N)(P) "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)(Q) "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)(R) "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)(S) "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)(T) "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)(U) "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)(V) "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)(W) "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)(X) "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.
(W)(Y) "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.
(X)(Z) "Upfront license" means the first plenary license
issued to a casino operator.
(Y)(AA) "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. 3772.04. (A)(1) If, as the result of an investigation,
the commission concludes that a license or finding required by
this chapter should be limited, conditioned, or restricted, or
suspended or revoked, the commission shall conduct After notice
and opportunity for an adjudication under Chapter 119. of the
Revised Code, the commission may limit, condition, restrict,
suspend, revoke, deny, or not renew a license under rules adopted
by the commission. The commission may reopen a licensing
adjudication at any time.
(2) The commission shall appoint a hearing examiner to
conduct the hearing in the adjudication. A party to the
adjudication may file written objections to the hearing examiner's
report and recommendations not later than the thirtieth day after
they are served upon the party or the party's attorney or other
representative of record. The commission shall not take up the
hearing examiner's report and recommendations earlier than the
thirtieth day after the hearing examiner's report and
recommendations were submitted to the commission.
(3) If the commission finds that a person fails or has failed
to meet any requirement under this chapter or a rule adopted
thereunder, or violates or has violated this chapter or a rule
adopted thereunder, the commission may issue an order:
(a) Limiting, conditioning, or restricting, or suspending or,
revoking, denying, or not renewing, a license issued under this
chapter;
(b) Limiting, conditioning, or restricting, or suspending or
revoking, a finding made under this chapter;
(c) Requiring a casino facility to exclude a licensee from
the casino facility or requiring a casino facility not to pay to
the licensee any remuneration for services or any share of
profits, income, or accruals on the licensee's investment in the
casino facility; or
(d)(c) Fining a licensee or other person according to the
penalties adopted by the commission.
(4) An order may be judicially reviewed under section 119.12
of the Revised Code.
(B) Without in any manner limiting the authority of the
commission to impose the level and type of discipline the
commission considers appropriate, the commission may take into
consideration the following:
(1) If the licensee knew or reasonably should have known that
the action complained of was a violation of any law, rule, or
condition on the licensee's license;
(2) If the licensee has previously been disciplined by the
commission;
(3) If the licensee has previously been subject to discipline
by the commission concerning the violation of any law, rule, or
condition of the licensee's license;
(4) If the licensee reasonably relied upon professional
advice from a lawyer, doctor, accountant, or other recognized
professional that was relevant to the action resulting in the
violation;
(5) If the licensee or the licensee's employer had a
reasonably constituted and functioning compliance program;
(6) If the imposition of a condition requiring the licensee
to establish and implement a written self-enforcement and
compliance program would assist in ensuring the licensee's future
compliance with all statutes, rules, and conditions of the
license;
(7) If the licensee realized a pecuniary gain from the
violation;
(8) If the amount of any fine or other penalty imposed would
result in disgorgement of any gains unlawfully realized by the
licensee;
(9) If the violation was caused by an officer or employee of
the licensee, the level of authority of the individual who caused
the violation;
(10) If the individual who caused the violation acted within
the scope of the individual's authority as granted by the
licensee;
(11) The adequacy of any training programs offered by the
licensee or the licensee's employer that were relevant to the
activity that resulted in the violation;
(12) If the licensee's action substantially deviated from
industry standards and customs;
(13) The extent to which the licensee cooperated with the
commission during the investigation of the violation;
(14) If the licensee has initiated remedial measures to
prevent similar violations;
(15) The magnitude of penalties imposed on other licensees
for similar violations;
(16) The proportionality of the penalty in relation to the
misconduct;
(17) The extent to which the amount of any fine imposed would
punish the licensee for the conduct and deter future violations;
(18) Any mitigating factors offered by the licensee; and
(19) Any other factors the commission considers relevant.
(C) For the purpose of conducting any study or investigation,
the commission may direct that public hearings be held at a time
and place, prescribed by the commission, in accordance with
section 121.22 of the Revised Code. The commission shall give
notice of all public hearings in such manner as will give actual
notice to all interested parties.
(C)(D) In the discharge of any duties imposed by this
chapter, the commission may require that testimony be given under
oath and administer such oath, issue subpoenas compelling the
attendance of witnesses and the production of any papers, books,
and accounts, and cause the deposition of any witness. In the
event of the refusal of any person without good cause to comply
with the terms of a subpoena issued by the commission or refusal
to testify on matters about which the person may lawfully be
questioned, the prosecuting attorney of the county in which such
person resides, upon the petition of the commission, may bring a
proceeding for contempt against such person in the court of common
pleas of that county.
(D)(E) When conducting a public hearing, the commission shall
not limit the number of speakers who may testify. However, the
commission may set reasonable time limits on the length of an
individual's testimony or the total amount of time allotted to
proponents and opponents of an issue before the commission.
(E) An administrative law judge appointed by the commission
may conduct a hearing under this chapter and recommend findings of
fact and decisions to the commission.
(F) The commission may rely, in whole or in part, upon
investigations, conclusions, or findings of other casino gaming
commissions or other government regulatory bodies in connection
with licensing, investigations, or other matters relating to an
applicant or licensee under this chapter.
Sec. 3772.07. The following appointing or licensing
authorities shall obtain a criminal records check of the person
who is to be appointed or licensed:
(A) The governor, before appointing an individual as a member
of the commission;
(B) The commission, before appointing an individual as
executive director or a gaming agent;
(C) The commission, before issuing a license for a key
employee or casino gaming employee, and before issuing a license
for each investor, except an institutional investor, for a casino
operator, management company, holding company, or gaming-related
vendor;
(D) The executive director, before appointing an individual
as a professional, technical, or clerical employee of the
commission.
Thereafter, such an appointing or licensing authority shall
obtain a criminal records check of the same individual at
three-year intervals.
The appointing or licensing authority shall provide to each
person of whom a criminal records check is required a copy of the
form and the standard fingerprint impression sheet prescribed
under divisions (C)(1) and (2) of section 109.572 of the Revised
Code. The person shall complete the form and impression sheet and
return them to the appointing or licensing authority. If a person
fails to complete and return the form and impression sheet within
a reasonable time, the person is ineligible to be appointed or
licensed or to continue in the appointment or licensure.
The appointing or licensing authority shall forward the
completed form and impression sheet to the superintendent of the
bureau of criminal identification and investigation. The
appointing or licensing authority shall request the superintendent
also to obtain information from the federal bureau of
investigation, including fingerprint-based checks of the national
crime information databases, and from other states and the federal
government under the national crime prevention and privacy compact
as part of the criminal records check.
The commission shall pay the fee the bureau of criminal
identification and investigation charges for all criminal records
checks conducted under this section. An applicant for a casino
operator, management company, holding company, or gaming-related
vendor license shall reimburse the commission for the amount of
the fee paid on the applicant's behalf. An applicant for a key
employee or casino gaming employee license shall reimburse the
commission for the amount of the fee paid on the applicant's
behalf, unless the applicant is applying at the request of a
casino operator or management company, in which case the casino
operator or management company shall reimburse the commission.
The appointing or licensing authority shall review the
results of a criminal records check. An appointee for a commission
member shall forward the results of the criminal records check to
the president of the senate before the senate advises and consents
to the appointment of the commission member. The appointing or
licensing authority shall not appoint or license or retain the
appointment or licensure of a person a criminal records check
discloses has been convicted of or has pleaded guilty or no
contest to a disqualifying offense. A "disqualifying offense"
means any gambling offense, any theft offense, any offense having
an element of fraud or misrepresentation, any offense having an
element of moral turpitude, and any felony not otherwise included
in the foregoing list, except as otherwise provided in section
3772.10 of the Revised Code.
The report of a criminal records check is not a public record
that is open to public inspection and copying. The commission
shall not make the report available to any person other than the
person who was the subject of the criminal records check; an
appointing or licensing authority; a member, the executive
director, or an employee of the commission; or any court or
agency, including a hearing examiner, in a judicial or
administrative proceeding relating to the person's employment with
the entity requesting the criminal records check in which the
criminal records check is relevant.
Sec. 3772.091. (A) No A casino operator license issued under
this chapter is transferable subject to approval by the
commission. New majority ownership interest or Any change or
transfer of control of a casino operator shall require a new
license commission approval. The commission may reopen a licensing
investigation at any time. A significant Any change in or transfer
of control of a casino operator, as determined by the commission,
shall require the filing of an application for a new transferring
the casino operator license and submission of a license an
application fee with the commission before any such change or
transfer of control is may be approved. A change in or transfer of
control to an immediate family member is not considered a
significant change under this section Additionally, the commission
may assess an applicant a reasonable fee in the amount necessary
to review the application for the transfer of a casino operator
license to the applicant. In determining whether to approve the
transfer of a casino operator license to the applicant, the
commission shall consider all the factors established in Chapter
3772. of the Revised Code that pertain to the granting of a casino
operator license. The commission may reopen a licensing
investigation at any time.
(B) As used in this section, "control" means either of the
following:
(a) Holding fifty thirty per cent or more of the outstanding
voting securities of a licensee; or
(b) For an unincorporated licensee, having the right to fifty
thirty per cent or more of the profits of the licensee, or having
the right in the event of dissolution to fifty thirty per cent or
more of the assets of the licensee.
(2) Having the contractual power presently to designate fifty
thirty per cent or more of the directors of a for-profit or
not-for-profit corporation, or in the case of trusts described in
paragraphs (c)(3) to (5) of 16 C.F.R. 801.1, the trustees of such
a trust.
Sec. 3772.10. (A) In determining whether to grant or maintain
the privilege of a casino operator, management company, holding
company, key employee, casino gaming employee, or gaming-related
vendor license, the Ohio casino control commission shall consider
all of the following, as applicable:
(1) The reputation, experience, and financial integrity of
the applicant, its holding company, if applicable, and any other
person that directly or indirectly controls the applicant;
(2) The financial ability of the applicant to purchase and
maintain adequate liability and casualty insurance and to provide
an adequate surety bond;
(3) The past and present compliance of the applicant and its
affiliates or affiliated companies with casino-related licensing
requirements in this state or any other jurisdiction, including
whether the applicant has a history of noncompliance with the
casino licensing requirements of any jurisdiction;
(4) If the applicant has been indicted, convicted, pleaded
guilty or no contest, or forfeited bail concerning any criminal
offense under the laws of any jurisdiction, either felony or
misdemeanor, not including traffic violations;
(5) If the applicant has filed, or had filed against it a
proceeding for bankruptcy or has ever been involved in any formal
process to adjust, defer, suspend, or otherwise work out the
payment of any debt;
(6) If the applicant has been served with a complaint or
other notice filed with any public body regarding a payment of any
tax required under federal, state, or local law that has been
delinquent for one or more years;
(7) If the applicant is or has been a defendant in litigation
involving its business practices;
(8) If awarding a license would undermine the public's
confidence in the casino gaming industry in this state;
(9) If the applicant meets other standards for the issuance
of a license that the commission adopts by rule, which shall not
be arbitrary, capricious, or contradictory to the expressed
provisions of this chapter.
(B) All applicants for a license under this chapter shall
establish their suitability for a license by clear and convincing
evidence. If the commission determines that a person is eligible
under this chapter to be issued a license as a casino operator,
management company, holding company, key employee, casino gaming
employee, or gaming-related vendor, the commission shall issue
such license for not more than three years, as determined by
commission rule, if all other requirements of this chapter have
been satisfied.
(C) The commission shall not issue a casino operator,
management company, holding company, key employee, casino gaming
employee, or gaming-related vendor license under this chapter to
an applicant if:
(1) The applicant has been convicted of a disqualifying
offense, as defined in section 3772.07 of the Revised Code.
(2) The applicant has submitted an application for license
under this chapter that contains false information.
(3) The applicant is a commission member.
(4) The applicant owns an ownership interest that is unlawful
under this chapter, unless waived by the commission.
(5) The applicant violates specific rules adopted by the
commission related to denial of licensure.
(6) The applicant is a member of or employed by a gaming
regulatory body of a governmental unit in this state, another
state, or the federal government, or is employed by a governmental
unit of this state. This division does not prohibit a casino
operator from hiring special duty law enforcement officers if the
officers are not specifically involved in gaming-related
regulatory functions.
(7) The commission otherwise determines the applicant is
ineligible for the license.
(D)(1) The commission shall investigate the qualifications of
each applicant under this chapter before any license is issued and
before any finding with regard to acts or transactions for which
commission approval is required is made. The commission shall
continue to observe the conduct of all licensees and all other
persons having a material involvement directly or indirectly with
a casino operator, management company, or holding company to
ensure that licenses are not issued to or held by, or that there
is not any material involvement with a casino operator, management
company, or holding company by, an unqualified, disqualified, or
unsuitable person or a person whose operations are conducted in an
unsuitable manner or in unsuitable or prohibited places or
locations.
(2) The executive director may recommend to the commission
that it deny any application, or limit, condition, or restrict, or
suspend or revoke, any license or finding, or impose any fine upon
any licensee or other person according to this chapter and the
rules adopted thereunder.
(3) A license issued under this chapter is a revocable
privilege. No licensee has a vested right in or under any license
issued under this chapter. The initial determination of the
commission to deny, or to limit, condition, or restrict, a license
may be appealed under section 2505.03 of the Revised Code.
(E)(1) An institutional investor otherwise required to shall
be found to be suitable or qualified by the commission under this
chapter and the rules adopted under this chapter. An institutional
investor shall be presumed suitable or qualified upon submitting
documentation sufficient to establish qualifications as an
institutional investor and upon certifying all of the following:
(a) The institutional investor owns, holds, or controls
publicly traded securities issued by a licensee or holding,
intermediate, or parent company of a licensee or in the ordinary
course of business for investment purposes only.
(b) The institutional investor does not exercise influence
over the affairs of the issuer of such securities nor over any
licensed subsidiary of the issuer of such securities.
(c) The institutional investor does not intend to exercise
influence over the affairs of the issuer of such securities, nor
over any licensed subsidiary of the issuer of such securities, in
the future, and that it agrees to notify the commission in writing
within thirty days if such intent changes.
(2) The exercise of voting privileges with regard to publicly
traded securities shall not be deemed to constitute the exercise
of influence over the affairs of a licensee.
(3) The commission shall rescind the presumption of
suitability for an institutional investor at any time if the
institutional investor exercises or intends to exercise influence
or control over the affairs of the licensee.
(4) This division shall not be construed to preclude the
commission from requesting information from or investigating the
suitability or qualifications of an institutional investor if the:
(a) The commission becomes aware of facts or information that
may result in the institutional investor being found unsuitable or
disqualified; or
(b) The commission has any other reason to seek information
from the investor to determine whether it qualifies as an
institutional investor.
(5) If the commission finds an institutional investor to be
unsuitable or unqualified, the commission shall so notify the
investor and the casino operator, holding company, management
company, or gaming-related vendor licensee in which the investor
invested. The commission shall allow the investor and the licensee
a reasonable amount of time, as specified by the commission on a
case-by-case basis, to cure the conditions that caused the
commission to find the investor unsuitable or unqualified. If
during the specified period of time the investor or the licensee
does not or cannot cure the conditions that caused the commission
to find the investor unsuitable or unqualified, the commission may
allow the investor or licensee more time to cure the conditions or
the commission may begin proceedings to deny, suspend, or revoke
the license of the casino operator, holding company, management
company, or gaming-related vendor in which the investor invested
or to deny any of the same the renewal of any such license.
(6) A private licensee or holding company shall provide the
same information to the commission as a public company would
provide in a form 13d or form 13g filing to the securities and
exchange commission.
(F) Information provided on the application shall be used as
a basis for a thorough background investigation of each applicant.
A false or incomplete application is cause for denial of a license
by the commission. All applicants and licensees shall consent to
inspections, searches, and seizures and to the disclosure to the
commission and its agents of confidential records, including tax
records, held by any federal, state, or local agency, credit
bureau, or financial institution and to provide handwriting
exemplars, photographs, fingerprints, and information as
authorized in this chapter and in rules adopted by the commission.
Sec. 3772.13. (A) No person may be employed as a key employee
unless the person is the holder of a valid key employee license
issued by the commission.
A gaming-related vendor and a key
employee of that gaming-related vendor are exempt from this
requirement during the first sixty days of the key employee's
employment with the gaming-related vendor.
(B) Each applicant shall, before the issuance of any key
employee license, produce information, documentation, and
assurances as are required by this chapter and rules adopted
thereunder. In addition, each applicant shall, in writing,
authorize the examination of all bank accounts and records as may
be deemed necessary by the commission.
(C) To be eligible for a key employee license, the applicant
shall be at least twenty-one years of age and shall meet the
criteria set forth by rule by the commission.
(D) Each application for a key employee license shall be on a
form prescribed by the commission and shall contain all
information required by the commission. The applicant shall set
forth in the application if the applicant has been issued prior
gambling-related licenses; if the applicant has been licensed in
any other state under any other name, and, if so, the name under
which the license was issued and the applicant's age at the time
the license was issued; any criminal conviction the applicant has
had; and if a permit or license issued to the applicant in any
other state has been suspended, restricted, or revoked, and, if
so, the cause and the duration of each action.
(E) Each applicant shall submit with each application, on a
form provided by the commission, two sets of fingerprints and a
photograph. The commission shall charge each applicant an
application fee set by the commission to cover all actual costs
generated by each licensee and all background checks under this
section and section 3772.07 of the Revised Code.
(F)(1) The casino operator, management company, or holding
company by whom a person is employed as a key employee shall
terminate the person's employment in any capacity requiring a
license under this chapter and shall not in any manner permit the
person to exercise a significant influence over the operation of a
casino facility if:
(a) The person does not apply for and receive a key employee
license within three months of being issued a provisional license,
as established under commission rule.
(b) The person's application for a key employee license is
denied by the commission.
(c) The person's key employee license is revoked by the
commission.
The commission shall notify the casino operator, management
company, or holding company who employs such a person by certified
mail of any such finding, denial, or revocation.
(2) A casino operator, management company, or holding company
shall not pay to a person whose employment is terminated under
division (F)(1) of this section, any remuneration for any services
performed in any capacity in which the person is required to be
licensed, except for amounts due for services rendered before
notice was received under that division. A contract or other
agreement for personal services or for the conduct of any casino
gaming at a casino facility between a casino operator, management
company, or holding company and a person whose employment is
terminated under division (F)(1) of this section may be terminated
by the casino operator, management company, or holding company
without further liability on the part of the casino operator,
management company, or holding company. Any such contract or other
agreement is deemed to include a term authorizing its termination
without further liability on the part of the casino operator,
management company, or holding company upon receiving notice under
division (F)(1) of this section. That a contract or other
agreement does not expressly include such a term is not a defense
in any action brought to terminate the contract or other
agreement, and is not grounds for relief in any action brought
questioning termination of the contract or other agreement.
(3) A casino operator, management company, or holding
company, without having obtained the prior approval of the
commission, shall not enter into any contract or other agreement
with a person who has been found unsuitable, who has been denied a
license, or whose license has been revoked under division (F)(1)
of this section, or with any business enterprise under the control
of such a person, after the date on which the casino operator,
management company, or holding company receives notice under that
division.
Sec. 3772.16. (A) Any information concerning the following
submitted, collected, or gathered as part of an application to the
commission for a license under this chapter is confidential and
not subject to disclosure by any state agency or political
subdivision as a record under section 149.43 of the Revised Code:
(1) A minor child of an applicant;
(2) The social security number, passport number, or federal
tax identification number of an applicant or the spouse of an
applicant;
(3) The home address and telephone number of an applicant or
the spouse or children dependent of an applicant;
(4) An applicant's birth certificate;
(5) The driver's license number of an applicant or the
applicant's spouse;
(6) The name or address of a previous spouse of the
applicant;
(7) The date of birth of the applicant and the spouse of an
applicant;
(8) The place of birth of the applicant and the spouse of an
applicant;
(9) The personal financial information and records of an
applicant or of an employee or the spouse or minor child dependent
of an applicant, including tax returns and information, and
records of criminal proceedings;
(10) Any information concerning a victim of domestic
violence, sexual assault, or stalking;
(11) The electronic mail address of the spouse or family
member of the applicant;
(12) An applicant's home addresses; and
(13) Any trade secret, medical records, and patents or
exclusive licenses;
(13) Security information, including risk prevention plans,
detection and countermeasures, location of count rooms or other
money storage areas, emergency management plans, security and
surveillance plans, equipment and usage protocols, and theft and
fraud prevention plans and countermeasures.
(B) Notwithstanding any other law, upon written request from
a person, the commission shall provide the following information
to the person except as provided in this chapter:
(1) The information provided under this chapter concerning a
licensee or an applicant;
(2) The amount of the wagering tax and admission tax paid
daily to the state by a licensed applicant or an operating agent;
and
(3) A copy of a letter providing the reasons for the denial
of an applicant's license or an operating agent's contract and a
copy of a letter providing the reasons for the commission's
refusal to allow an applicant to withdraw the applicant's
application, but with confidential information redacted if that
information is the reason for the denial or refusal to withdraw.
(C) In addition to information that is confidential under
division (A) of this section, medical records, trade secrets,
patents or exclusive licenses, and marketing materials maintained
by the commission concerning a person who holds, held, or has
applied for a license under this chapter is confidential and not
subject to section 149.43 of the Revised Code.
(D) The individual's name, the individual's place of
employment, the individual's job title, and the individual's
gaming experience that is provided for an individual who holds,
held, or has applied for a license under this chapter is not
confidential. The reason for denial or revocation of a license or
for disciplinary action against the individual and information
submitted by the individual for a felony waiver request is not
confidential.
(E)(D) An individual who holds, held, or has applied for a
license under this chapter may waive the confidentiality
requirements of division (A) of this section.
(E) Confidential information received by the commission from
another jurisdiction relating to a person who holds, held, or has
applied for a license under this chapter is confidential and not
subject to disclosure as a public record under section 149.43 of
the Revised Code. The commission may share the information
referenced in this division with, or disclose the information to,
the inspector general, any appropriate prosecuting authority, any
law enforcement agency, or any other appropriate governmental or
licensing agency, if the agency that receives the information
complies with the same requirements regarding confidentiality as
those with which the commission must comply.
Sec. 3772.17. (A) The upfront license fee to obtain a license
as a casino operator shall be fifty million dollars per casino
facility, which and shall be paid upon each initial casino
operator's filing of its casino operator license application with
the commission. The upfront license fee, once paid to the
commission, shall be deposited into the economic development
programs fund, which is created in the state treasury. New casino
operator, management company, and holding company license and
renewal license fees shall be set by rule, subject to the review
of the joint committee on gaming and wagering. The fee charged by
this division shall not be assessed on the transfer of a casino
operator license to a new casino operator if approved by the
commission as set forth in section 3772.091 of the Revised Code.
(B) The fee to obtain an application for a casino operator,
management company, or holding company license shall be one
million five hundred thousand dollars per application. The fee
charged by this division shall apply to the application to
transfer a casino operator license to a new casino operator as set
forth in section 3772.091 of the Revised Code. The application fee
shall be deposited into the casino control commission fund. The
application fee is nonrefundable.
(C) The license fees for a gaming-related vendor shall be set
by rule, subject to the review of the joint committee on gaming
and wagering. Additionally, the commission may assess an applicant
a reasonable fee in the amount necessary to process a
gaming-related vendor license application.
(D) The license fees for a key employee shall be set by rule,
subject to the review of the joint committee on gaming and
wagering. Additionally, the commission may assess an applicant a
reasonable fee in the amount necessary to process a key employee
license application. If the license is being sought at the request
of a casino operator, such fees shall be paid by the casino
operator.
(E) The license fees for a casino gaming employee shall be
set by rule, subject to the review of the joint committee on
gaming and wagering. If the license is being sought at the request
of a casino operator, the fee shall be paid by the casino
operator.
Sec. 3772.28. (A) A licensed casino operator shall not enter
into a debt transaction without the approval of the commission.
The
licensed casino operator shall submit, in writing, a request
for approval of a debt transaction that contains at least the
following information:
(1) The names and addresses of all parties to the debt
transaction;
(2) The amount of the funds involved;
(3) The type of debt transaction;
(4) The source of the funds to be obtained;
(5) All sources of collateral;
(6) The purpose of the debt transaction;
(7) The terms of the debt transaction;
(8) Any other information deemed necessary by the commission.
(B) As used in this section, "debt transaction" means a
transaction by a licensed casino operator concerning a casino
facility totaling five hundred thousand dollars or more in which a
licensed casino operator acquires debt, including bank financing,
private debt offerings, and any other transaction that results in
the encumbrance of assets.
(C) Notwithstanding divisions (A) and (B) of this section, a
licensed casino operator may enter into one or more debt
transactions with affiliated companies provided the aggregate
amount of all such debt transactions at any one time does not
exceed ten million dollars. When a licensed casino operator
intends to enter into such a debt transaction with an affiliated
company, the licensed casino operator shall provide immediate
notification, in writing, to the commission. The commission is
entitled to require prior approval of the debt transaction if the
commission provides notice to the licensed casino operator within
seven days after receiving the notification. In determining
whether to approve such a debt transaction, the commission may
require the licensed casino operator to submit the information
specified in division (A) of this section. The commission may
adopt rules governing its review and approval of such debt
transactions. For the purposes of this division, "affiliated
companies" means any holding company or institutional investor or
any individual, partnership, corporation, association, trust, or
any other group of individuals, however organized, which directly
or indirectly owns, has the power or right to control, or holds
with the power to vote, an ownership interest in a licensed casino
operator.
Sec. 3772.99. (A) The commission shall levy and collect
penalties for noncriminal violations of this chapter. Moneys
collected from such penalty levies shall be credited to the
general revenue fund.
(B) If a licensed casino operator, management company,
holding company, gaming-related vendor, or key employee violates
this chapter or engages in a fraudulent act, the commission may
suspend or revoke the license and may do either or both of the
following:
(1) Suspend, revoke, or restrict the casino gaming operations
of a casino operator;
(2) Require the removal of a management company, key
employee, or discontinuance of services from a gaming-related
vendor.
(C) The commission shall impose civil penalties against a
person who violates this chapter under the penalties adopted by
commission rule and reviewed by the joint committee on gaming and
wagering.
(D) A person who knowingly or intentionally does any of the
following commits a misdemeanor of the first degree on the first
offense and a felony of the fifth degree for a subsequent offense:
(1) Makes a false statement on an application submitted under
this chapter;
(2) Permits a person less than twenty-one years of age to
make a wager;
(3) Aids, induces, or causes a person less than twenty-one
years of age who is not an employee of the casino gaming operation
to enter or attempt to enter a casino facility;
(4) Enters or attempts to enter a casino facility while under
twenty-one years of age, unless the person enters a designated
area as described in section 3772.24 of the Revised Code;
(5) Wagers or accepts a wager at a location other than a
casino facility;
(6) Is a casino operator or employee and participates in
casino gaming other than as part of operation or employment.
(E) A person who knowingly or intentionally does any of the
following commits a felony of the fifth degree on a first offense
and a felony of the fourth degree for a subsequent offense. If the
person is a licensee under this chapter, the commission shall
revoke the person's license after the first offense.
(1) Offers, promises, or gives anything of value or benefit
to a person who is connected with the casino operator, management
company, holding company, or gaming-related vendor, including
their officers and employees, under an agreement to influence or
with the intent to influence the actions of the person to whom the
offer, promise, or gift was made in order to affect or attempt to
affect the outcome of a casino game or an official action of a
commission member;
(2) Solicits, accepts, or receives a promise of anything of
value or benefit while the person is connected with a casino,
including an officer or employee of a casino operator, management
company, or gaming-related vendor, under an agreement to influence
or with the intent to influence the actions of the person to
affect or attempt to affect the outcome of a casino game or an
official action of a commission member;
(3) Uses or possesses with the intent to use a device to
assist in projecting the outcome of the casino game, keeping track
of the cards played, analyzing the probability of the occurrence
of an event relating to the casino game, or analyzing the strategy
for playing or betting to be used in the casino game, except as
permitted by the commission;
(4)(2) Cheats at a casino game;
(5)(3) Manufactures, sells, or distributes any cards, chips,
dice, game, or device that is intended to be used to violate this
chapter;
(6)(4) Alters or misrepresents the outcome of a casino game
on which wagers have been made after the outcome is made sure but
before the outcome is revealed to the players;
(7)(5) Places, increases, or decreases a wager on the outcome
of a casino game after acquiring knowledge that is not available
to all players and concerns the outcome of the casino game that is
the subject of the wager;
(8)(6) Aids a person in acquiring the knowledge described in
division (E)(7)(5) of this section for the purpose of placing,
increasing, or decreasing a wager contingent on the outcome of a
casino game;
(9)(7) Claims, collects, takes, or attempts to claim,
collect, or take money or anything of value in or from a casino
game with the intent to defraud or without having made a wager
contingent on winning a casino game;
(10)(8) Claims, collects, or takes an amount of money or
thing of value of greater value than the amount won in a casino
game;
(11)(9) Uses or possesses counterfeit chips or, tokens, or
cashless wagering instruments in or for use in a casino game;
(12)(10) Possesses a key or device designed for opening,
entering, or affecting the operation of a casino game, drop box,
or an electronic or a mechanical device connected with the casino
game or removing coins, tokens, chips, or other contents of a
casino game. This division does not apply to a casino operator,
management company, or gaming-related vendor or their agents and
employees in the course of agency or employment.
(13)(11) Possesses materials used to manufacture a slug or
device intended to be used in a manner that violates this chapter;
(14)(12) Operates a casino gaming operation in which wagering
is conducted or is to be conducted in a manner other than the
manner required under this chapter.
(F) The possession of more than one of the devices described
in division (E)(11)(9), (12)(10), or (13)(11) of this section
creates a rebuttable presumption that the possessor intended to
use the devices for cheating.
(G) A person who knowingly or intentionally does any of the
following commits a felony of the third degree. If the person is a
licensee under this chapter, the commission shall revoke the
person's license after the first offense. A public servant or
party official who is convicted under this division is forever
disqualified from holding any public office, employment, or
position of trust in this state.
(1) Offers, promises, or gives anything of value or benefit
to a person who is connected with the casino operator, management
company, holding company, or gaming-related vendor, including
their officers and employees, under an agreement to influence or
with the intent to influence the actions of the person to whom the
offer, promise, or gift was made in order to affect or attempt to
affect the outcome of a casino game or an official action of a
commission member, agent, or employee;
(2) Solicits, accepts, or receives a promise of anything of
value or benefit while the person is connected with a casino,
including an officer or employee of a casino operator, management
company, or gaming-related vendor, under an agreement to influence
or with the intent to influence the actions of the person to
affect or attempt to affect the outcome of a casino game or an
official action of a commission member, agent, or employee;
(H) A person who is convicted of a felony described in this
chapter may be barred for life from entering a casino facility by
the commission.
Sec. 5503.02. (A) The state highway patrol shall enforce the
laws of the state relating to the titling, registration, and
licensing of motor vehicles; enforce on all roads and highways,
notwithstanding section 4513.39 of the Revised Code, the laws
relating to the operation and use of vehicles on the highways;
enforce and prevent the violation of the laws relating to the
size, weight, and speed of commercial motor vehicles and all laws
designed for the protection of the highway pavements and
structures on the highways; investigate and enforce rules and laws
of the public utilities commission governing the transportation of
persons and property by motor carriers and report violations of
such rules and laws to the commission; enforce against any motor
transportation company as defined in section 4921.02 of the
Revised Code, any contract carrier by motor vehicle as defined in
section 4923.02 of the Revised Code, any private motor carrier as
defined in section 4923.20 of the Revised Code, and any motor
carrier as defined in section 4919.75 of the Revised Code those
rules and laws that, if violated, may result in a forfeiture as
provided in section 4905.83, 4919.99, 4921.99, or 4923.99 of the
Revised Code; investigate and report violations of all laws
relating to the collection of excise taxes on motor vehicle fuels;
and regulate the movement of traffic on the roads and highways of
the state, notwithstanding section 4513.39 of the Revised Code.
The state highway patrol shall have jurisdiction to enforce
the laws of this state at any casino facility, as defined in
Section 6(C) of Article XV, Ohio Constitution.
The patrol, whenever possible, shall determine the identity
of the persons who are causing or who are responsible for the
breaking, damaging, or destruction of any improved surfaced
roadway, structure, sign, marker, guardrail, or other appurtenance
constructed or maintained by the department of transportation and
shall arrest the persons who are responsible for the breaking,
damaging, or destruction and bring them before the proper
officials for prosecution.
State highway patrol troopers shall investigate and report
all motor vehicle accidents on all roads and highways outside of
municipal corporations. The superintendent of the patrol or any
state highway patrol trooper may arrest, without a warrant, any
person, who is the driver of or a passenger in any vehicle
operated or standing on a state highway, whom the superintendent
or trooper has reasonable cause to believe is guilty of a felony,
under the same circumstances and with the same power that any
peace officer may make such an arrest.
The superintendent or any state highway patrol trooper may
enforce the criminal laws on all state properties and state
institutions, owned or leased by the state, and, when so ordered
by the governor in the event of riot, civil disorder, or
insurrection, may, pursuant to sections 2935.03 to 2935.05 of the
Revised Code, arrest offenders against the criminal laws wherever
they may be found within the state if the violations occurred
upon, or resulted in injury to person or property on, state
properties or state institutions, or under the conditions
described in division (B) of this section.
(B) In the event of riot, civil disorder, or insurrection, or
the reasonable threat of riot, civil disorder, or insurrection,
and upon request, as provided in this section, of the sheriff of a
county or the mayor or other chief executive of a municipal
corporation, the governor may order the state highway patrol to
enforce the criminal laws within the area threatened by riot,
civil disorder, or insurrection, as designated by the governor,
upon finding that law enforcement agencies within the counties
involved will not be reasonably capable of controlling the riot,
civil disorder, or insurrection and that additional assistance is
necessary. In cities in which the sheriff is under contract to
provide exclusive police services pursuant to section 311.29 of
the Revised Code, in villages, and in the unincorporated areas of
the county, the sheriff has exclusive authority to request the use
of the patrol. In cities in which the sheriff does not exclusively
provide police services, the mayor, or other chief executive
performing the duties of mayor, has exclusive authority to request
the use of the patrol.
The superintendent or any state highway patrol trooper may
enforce the criminal laws within the area designated by the
governor during the emergency arising out of the riot, civil
disorder, or insurrection until released by the governor upon
consultation with the requesting authority. State highway patrol
troopers shall never be used as peace officers in connection with
any strike or labor dispute.
When a request for the use of the patrol is made pursuant to
this division, the requesting authority shall notify the law
enforcement authorities in contiguous communities and the sheriff
of each county within which the threatened area, or any part of
the threatened area, lies of the request, but the failure to
notify the authorities or a sheriff shall not affect the validity
of the request.
(C) Any person who is arrested by the superintendent or a
state highway patrol trooper shall be taken before any court or
magistrate having jurisdiction of the offense with which the
person is charged. Any person who is arrested or apprehended
within the limits of a municipal corporation shall be brought
before the municipal court or other tribunal of the municipal
corporation.
(D)(1) State highway patrol troopers have the same right and
power of search and seizure as other peace officers.
No state official shall command, order, or direct any state
highway patrol trooper to perform any duty or service that is not
authorized by law. The powers and duties conferred on the patrol
are supplementary to, and in no way a limitation on, the powers
and duties of sheriffs or other peace officers of the state.
(2)(a) A state highway patrol trooper, pursuant to the policy
established by the superintendent of the state highway patrol
under division (D)(2)(b) of this section, may render emergency
assistance to any other peace officer who has arrest authority
under section 2935.03 of the Revised Code, if both of the
following apply:
(i) There is a threat of imminent physical danger to the
peace officer, a threat of physical harm to another person, or any
other serious emergency situation;
(ii) Either the peace officer requests emergency assistance,
or it appears that the peace officer is unable to request
emergency assistance and the circumstances observed by the state
highway patrol trooper reasonably indicate that emergency
assistance is appropriate, or the peace officer requests emergency
assistance and in the request the peace officer specifies a
particular location and the state highway patrol trooper arrives
at that location prior to the time that the peace officer arrives
at that location and the circumstances observed by the state
highway patrol trooper reasonably indicate that emergency
assistance is appropriate.
(b) The superintendent of the state highway patrol shall
establish, within sixty days of August 8, 1991, a policy that sets
forth the manner and procedures by which a state highway patrol
trooper may render emergency assistance to any other peace officer
under division (D)(2)(a) of this section. The policy shall include
a provision that a state highway patrol trooper never be used as a
peace officer in connection with any strike or labor dispute.
(3)(a) A state highway patrol trooper who renders emergency
assistance to any other peace officer under the policy established
by the superintendent pursuant to division (D)(2)(b) of this
section shall be considered to be performing regular employment
for the purposes of compensation, pension, indemnity fund rights,
workers' compensation, and other rights or benefits to which the
trooper may be entitled as incident to regular employment.
(b) A state highway patrol trooper who renders emergency
assistance to any other peace officer under the policy established
by the superintendent pursuant to division (D)(2)(b) of this
section retains personal immunity from liability as specified in
section 9.86 of the Revised Code.
(c) A state highway patrol trooper who renders emergency
assistance under the policy established by the superintendent
pursuant to division (D)(2)(b) of this section has the same
authority as the peace officer for or with whom the state highway
patrol trooper is providing emergency assistance.
(E)(1) Subject to the availability of funds specifically
appropriated by the general assembly for security detail purposes,
the state highway patrol shall provide security as follows:
(b) At the direction of the governor, for other officials of
the state government of this state; officials of the state
governments of other states who are visiting this state; officials
of the United States government who are visiting this state;
officials of the governments of foreign countries or their
political subdivisions who are visiting this state; or other
officials or dignitaries who are visiting this state, including,
but not limited to, members of trade missions;
(c) For the capitol square, as defined in section 105.41 of
the Revised Code;
(d) For other state property.
(2) To carry out the security responsibilities of the patrol
listed in division (E)(1) of this section, the superintendent may
assign state highway patrol troopers to a separate unit that is
responsible for security details. The number of troopers assigned
to particular security details shall be determined by the
superintendent.
(3) The superintendent and any state highway patrol trooper,
when providing security pursuant to division (E)(1)(a) or (b) of
this section, have the same arrest powers as other peace officers
to apprehend offenders against the criminal laws who endanger or
threaten the security of any person being protected, no matter
where the offense occurs.
The superintendent, any state highway patrol trooper, and any
special police officer designated under section 5503.09 of the
Revised Code, when providing security pursuant to division
(E)(1)(c) of this section, shall enforce any rules governing
capitol square adopted by the capitol square review and advisory
board.
(F) The governor may order the state highway patrol to
undertake major criminal investigations that involve state
property interests. If an investigation undertaken pursuant to
this division results in either the issuance of a no bill or the
filing of an indictment, the superintendent shall file a complete
and accurate report of the investigation with the president of the
senate, the speaker of the house of representatives, the minority
leader of the senate, and the minority leader of the house of
representatives within fifteen days after the issuance of the no
bill or the filing of an indictment. If the investigation does not
have as its result any prosecutorial action, the superintendent
shall, upon reporting this fact to the governor, file a complete
and accurate report of the investigation with the president of the
senate, the speaker of the house of representatives, the minority
leader of the senate, and the minority leader of the house of
representatives.
(G) The superintendent may purchase or lease real property
and buildings needed by the patrol, negotiate the sale of real
property owned by the patrol, rent or lease real property owned or
leased by the patrol, and make or cause to be made repairs to all
property owned or under the control of the patrol. Any instrument
by which real property is acquired pursuant to this division shall
identify the agency of the state that has the use and benefit of
the real property as specified in section 5301.012 of the Revised
Code.
Sections 123.01 and 125.02 of the Revised Code do not limit
the powers granted to the superintendent by this division.
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 directly attributed to providing public
services pursuant to sections 126.60 to 126.605 of the Revised
Code, or any receipts directly attributed to a transfer agreement
or to the enterprise transferred under that agreement under
section 4313.02 of the Revised Code.
(gg) 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.
(hh)(i) As used in this division:
(I) "Qualified uranium receipts" means receipts from the
sale, exchange, lease, loan, production, processing, or other
disposition of uranium within a uranium enrichment zone certified
by the tax commissioner under division (F)(2)(hh)(ii) of this
section. "Qualified uranium receipts" does not include any
receipts with a situs in this state outside a uranium enrichment
zone certified by the tax commissioner under division
(F)(2)(hh)(ii) of this section.
(II) "Uranium enrichment zone" means all real property that
is part of a uranium enrichment facility licensed by the United
States nuclear regulatory commission and that was or is owned or
controlled by the United States department of energy or its
successor.
(ii) Any person that owns, leases, or operates real or
tangible personal property constituting or located within a
uranium enrichment zone may apply to the tax commissioner to have
the uranium enrichment zone certified for the purpose of excluding
qualified uranium receipts under division (F)(2)(hh) of this
section. The application shall include such information that the
tax commissioner prescribes. Within sixty days after receiving the
application, the tax commissioner shall certify the zone for that
purpose if the commissioner determines that the property qualifies
as a uranium enrichment zone as defined in division (F)(2)(hh) of
this section, or, if the tax commissioner determines that the
property does not qualify, the commissioner shall deny the
application or request additional information from the applicant.
If the tax commissioner denies an application, the commissioner
shall state the reasons for the denial. The applicant may appeal
the denial of an application to the board of tax appeals pursuant
to section 5717.02 of the Revised Code. If the applicant files a
timely appeal, the tax commissioner shall conditionally certify
the applicant's property. The conditional certification shall
expire when all of the applicant's appeals are exhausted. Until
final resolution of the appeal, the applicant shall retain the
applicant's records in accordance with section 5751.12 of the
Revised Code, notwithstanding any time limit on the preservation
of records under that section.
(ii) 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)(ii) 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)(jj) 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.
(kk) Receipts from wagering by racetrack video lottery
terminal patrons of promotional gaming credits as defined in
section 3770.21 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:
(1) 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.
(2) Bad debts from receipts on the basis of which the tax
imposed by this chapter was paid in a prior tax period. For the
purpose of this division, "bad debts" means any debts that have
become worthless or uncollectible between the preceding and
current tax 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 casino operator until the
full purchase price is paid, or expenses in attempting to collect
any account receivable or for any portion of the debt recovered.
(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.
Sec. 5753.03. (A) For the purpose of receiving and
distributing, and accounting for, revenue received from the tax
levied by section 5753.02 of the Revised Code, the following funds
are created in the state treasury:
(1) The casino tax revenue fund;
(2) The gross casino revenue county fund;
(3) The gross casino revenue county student fund;
(4) The gross casino revenue host city fund;
(5) The Ohio state racing commission fund;
(6) The Ohio law enforcement training fund;
(7) The problem casino gambling and addictions fund;
(8) The casino control commission fund;
(9) The casino tax administration fund.
(B) All moneys collected from the tax levied under this
chapter shall be deposited into the casino tax revenue fund.
(C) From the casino tax revenue fund the director of budget
and management shall transfer as needed to the tax refund fund
amounts equal to the refunds certified by the tax commissioner
under section 5753.06 of the Revised Code.
(D) After making any transfers required by division (C) of
this section, but not later than the fifteenth day of the month
following the end of each calendar quarter, the director of budget
and management shall transfer amounts to each fund as follows:
(1) Fifty-one per cent to the gross casino revenue county
fund to make payments as required by Section 6(C)(3)(a) of Article
XV, Ohio Constitution;
(2) Thirty-four per cent to the gross casino revenue county
student fund to make payments as required by Section 6(C)(3)(b) of
Article XV, Ohio Constitution;
(3) Five per cent to the gross casino revenue host city fund
for the benefit of the cities in which casino facilities are
located;
(4) Three per cent to the Ohio state racing commission fund
to support horse racing in this state at which the pari-mutuel
system of wagering is conducted;
(5) Two per cent to the Ohio law enforcement training fund to
support law enforcement functions in the state;
(6) Two per cent to the problem casino gambling and
addictions fund to support efforts to alleviate problem gambling
and substance abuse and related research in the state;
(7) Three per cent to the casino control commission fund to
support the operations of the Ohio casino control commission and
to defray the cost of administering the tax levied under section
5753.02 of the Revised Code.
Payments under divisions (D)(1), (2), and (3) of this section
shall be made by the end of the month following the end of the
quarterly period. The tax commissioner shall make the data
available to the director of budget and management for this
purpose.
Of the money credited to the Ohio law enforcement training
fund, the director of budget and management shall distribute
eighty-five per cent of the money to the Ohio peace officer
training academy and fifteen per cent of the money to the division
of criminal justice services.
(E)(1) The tax commissioner shall serve as an agent of the
counties of this state only for the purposes of this division and
solely to make payments directly to municipal corporations and
school districts, as applicable, on the counties' behalf.
(2) On or before the thirtieth day of the month following the
end of each calendar quarter, the tax commissioner shall provide
for payment from the funds referenced in divisions (D)(1), (2),
and (3) of this section to each county, municipal corporation, and
school district as prescribed in those divisions.
(F) The director of budget and management shall transfer one
per cent of the money credited to the casino control commission
fund to the casino tax administration fund. The tax commissioner
shall use the casino tax administration fund to defray the costs
incurred in administering the tax levied by this chapter.
Section 2. That existing sections 111.15, 122.014, 2923.31,
3301.0714, 3769.089, 3770.02, 3770.03, 3770.05, 3770.21, 3772.01,
3772.04, 3772.07, 3772.091, 3772.10, 3772.13, 3772.16, 3772.17,
3772.28, 3772.99, 5503.02, 5751.01, 5753.01, and 5753.03 of the
Revised Code are hereby repealed.
Section 3. That Section 261.20.90 of Am. Sub. H.B. 153 of the
129th General Assembly be amended to read as follows:
Sec. 261.20.90. OHIO INCUMBENT WORKFORCE TRAINING VOUCHERS
(A) On July 1, 2011, or as soon as possible thereafter, the
Director of Budget and Management shall transfer up to $20,000,000
from the Economic Development Programs Fund (Fund 5JC0) used by
the Board of Regents to the Ohio Incumbent Workforce Job Training
Fund (Fund 5HR0) used by the Department of Development.
On July 1, 2012, or as soon as possible thereafter, the
Director of Budget and Management shall transfer up to $30,000,000
from the Economic Development Programs Fund (Fund 5JC0) used by
the Board of Regents to the Ohio Incumbent Workforce Job Training
Fund (Fund 5HR0) used by the Department of Development.
(B) Of the foregoing appropriation item 195526, Ohio
Workforce Job Training, up to $20,000,000 in fiscal year 2012 and
up to $30,000,000 in fiscal year 2013 shall be used to support the
Ohio Incumbent Workforce Training Voucher Program. Any unexpended
and unencumbered portion of the appropriation item remaining at
the end of fiscal year 2012 is hereby appropriated for the same
purpose in fiscal year 2013. The Director of Development and the
Chief Investment Officer of JobsOhio may enter into an agreement
to operate the program pursuant to the contract between the
Department of Development and JobsOhio under section 187.04 of the
Revised Code. The agreement may include a provision for granting,
loaning, or transferring funds from appropriation item 195526,
Ohio Incumbent Workforce Job Training, to JobsOhio to provide
training for incumbent workers.
(C) Regardless of any agreement between the Director and the
Chief Investment Officer under division (B) of this section, the
Ohio Incumbent Workforce Training Voucher Program shall conform to
guidelines for the operation of the program, including, but not
limited to, the following:
(1) A requirement that a training voucher under the program
shall not exceed $6,000 per worker per year;
(2) A provision for an employer of an eligible employee to
apply for a voucher on behalf of the eligible employee;
(3) A provision for an eligible employee to apply directly
for a training voucher with the pre-approval of the employee's
employer; and
(4) A requirement that an employee participating in the
program, or the employee's employer, shall pay for not less than
thirty-three per cent of the training costs under the program.
DEFENSE DEVELOPMENT ASSISTANCE
On July 1 of each fiscal year, or as soon as possible
thereafter, the Director of Budget and Management shall transfer
$5,000,000 in cash from the Economic Development Projects Fund
(Fund 5JC0) used by the Board of Regents to the Ohio Incumbent
Workforce Job Training Fund (Fund 5HR0) used by the Department of
Development. The transferred funds are hereby appropriated in
appropriation item 195622, Defense Development Assistance.
The foregoing appropriation item 195622, Defense Development
Assistance, shall be used for economic development programs and
the creation of new jobs to leverage and support mission gains at
Department of Defense facilities in Ohio by working with future
base realignment and closure activities and ongoing Department of
Defense efficiency initiatives, assisting efforts to secure
Department of Defense support contracts for Ohio companies,
assessing and supporting regional job training and workforce
development needs generated by the Department of Defense and the
Ohio aerospace industry, and for expanding job training and
economic development programs in human performance related
initiatives. These funds shall be matched by private industry
partners or the Department of Defense in an aggregate amount of
$6,000,000 over the FY 2012-FY 2013 biennium.
Section 4. That existing Section 261.20.90 of Am. Sub. H.B.
153 of the 129th General Assembly is hereby repealed.
Section 5. That Section 3 of Sub. H.B. 277 of the 129th
General Assembly be amended to read as follows:
Sec. 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 permit holder that is not transferring its track and
is remaining at its permitted location and that is a video lottery
sales agent may operate a temporary facility at its permitted
location while constructing or otherwise preparing its permanent
video lottery terminal facility at its track. A temporary
facility, either at a new track location or an existing track
location of a track that does not transfer its track, shall meet
any minimal capital investment and structure requirements
established by rule by the State Racing Commission in conjunction
with the State Lottery 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 6. That existing Section 3 of Sub. H.B. 277 of the
129th General Assembly is hereby repealed.
Section 7. That Section 4 of Sub. H.B. 277 of the 129th
General Assembly is hereby repealed.
Section 8. (A) The Governor is authorized to execute a deed
in the name of the state conveying to Lebanon Trotting Club, Inc.,
and Miami Valley Trotting, Inc., the holders of pari-mutuel racing
permits issued by the State Racing Commission, or to their
respective successors and assigns (hereinafter collectively
referred to as the "grantee"), all of the state's right, title,
and interest in the following described real estate:
Situated in Turtlecreek Township, City of Lebanon, County of
Warren, State of Ohio and being part of Warren County Parcel Nos.
11064000140 and 12363000030, which land is situated at the
northeast corner of the intersection of State Route 63 and Union
Road, and is bounded to the west by Union Road, to the south by
Route 63, and to the east by a private roadway used by the
Department of Rehabilitation and Correction for ingress and egress
from Route 63 to the Lebanon Correctional Institution's dairy
barn. The northerly boundary shall be established by a survey
designed to ensure that the land to be conveyed does not exceed
one hundred twenty acres.
In preparing the deed, the Auditor of State, with the
assistance of the Attorney General, may modify the foregoing
description insofar as necessary to bring it into conformity with
the actual bounds of the real estate being described.
(B) Consideration for conveyance of the real estate is four
million five hundred thousand dollars.
(C) The net proceeds of the sale of the real estate shall be
deposited in the state treasury to the credit of the Department of
Rehabilitation and Correction, Fund 2000, appropriation item
501607, Ohio Penal Industries, which contains funds for
expenditures on farm and agricultural uses, for which these
proceeds shall be used.
(D) The grantee, following the conveyance of the real estate,
and in accordance with the terms of the purchase contract, shall
do all of the following:
(1) Permit the state and its successors and assigns perpetual
ingress and egress rights to the culvert and roadway located along
the easterly line of the real estate, which culvert and roadway
are presently used by the state to access the Lebanon Correctional
Institution's dairy barn. The grantee shall be responsible for all
costs related to the continued maintenance of the culvert and
roadway in their current condition.
(2) Create and maintain, at the grantee's sole cost, a
landscape buffer zone along the perimeter of the real estate. The
design, location, and materials used in the landscape buffer zone
shall be approved by the state.
(3) Coordinate with the appropriate state and local
authorities to improve State Route 63 with new signage and
adequate turning lanes.
(E) The grantee shall not use, develop, or sell the premises
such that it will interfere with the quiet enjoyment of the
neighboring state-owned land.
(F)The real estate shall be sold as an entire tract and not
in parcels.
(G) The grantee shall pay all costs associated with the
purchase and conveyance of the real estate, which costs shall
include, but are not limited to, the following: surveying costs;
title costs; preparation of metes and bounds property
descriptions; appraisals; environmental studies, assessments, and
remediation; and deed recordation costs.
(H) The Auditor of State, with the assistance of the Attorney
General, shall prepare a deed to the real estate. The deed shall
state the consideration and the conditions. The deed shall be
executed by the Governor in the name of the state, countersigned
by the Secretary of State, sealed with the Great Seal of the
State, presented in the Office of the Auditor of State for
recording, and delivered to the grantee. The grantee shall present
the deed for recording in the Office of the Warren County
Recorder.
(I) This section expires two years after its effective date.
Section 9. (A) 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.
(B) There is hereby created in the state treasury the
Racetrack Relocation Fund. The fund shall receive any money paid
to the state by horse-racing permit holders for the privilege to
relocate to a new facility in accordance with Section 3 of Sub.
H.B. 277 of the 129th General Assembly, as amended by this act.
Upon the allocation of all the money in the fund in accordance
with this section, the fund shall cease to exist.
(C) There is hereby created in the state treasury the
Racetrack Facility Community Economic Redevelopment Fund into
which shall be deposited moneys as specified by this section and
rules promulgated by the State Racing Commission. The fund shall
be used for repurposing or demolishing of an abandoned
horse-racing facility or reinvestment in the area, neighborhood,
and community near an abandoned facility. Any remaining funds
shall be transferred to the General Revenue Fund. Upon the
allocation of all the money in the fund in accordance with this
section, the fund shall cease to exist.
(D) The Director of Development or any successor department
or agency shall oversee and administer the Racetrack Facility
Community Economic Redevelopment Fund for the purpose of the
repurposing or demolishing of an abandoned horse-racing facility
or reinvestment in the area, neighborhood, and community near an
abandoned facility through loans and grants. The Director shall
provide guidelines for racetrack facility community economic
development projects in the state. Projects may include, but are
not limited to, site planning, site certification, structure
demolition, physical site redevelopment, relocation of utilities,
or construction. Projects shall not incorporate acquisition and
related expense. Moneys in the fund may be used to pay reasonable
costs incurred by the Director in administering this section.
(E) The moneys in the Racetrack Relocation Fund shall be
allocated to the following funds in the following amounts:
(1) Five hundred thousand dollars to the Problem Casino
Gambling and Addictions Fund described in Section 6(C)(3)(g) of
Article XV, Ohio Constitution, to be used for research and data
collection on gambling addiction issues;
(2) Not more than three million dollars to the previous
community of each moved track, which shall be deposited in the
Racetrack Facility Community Economic Redevelopment Fund;
(3) The remainder to the General Revenue Fund.
(F) Communities whose permit holders did not pay to move its
track to a new location are not eligible for funds in the
Racetrack Facility Community Economic Redevelopment Fund.
Section 10. Notwithstanding any provision in law to the
contrary, the Director of Alcohol and Drug Addiction Services
shall complete a study to identify the current status of gaming
addiction problems within the state. In fiscal year 2013, the
Director may certify to the Director of Budget and Management the
cost, not exceeding two hundred fifty thousand dollars, incurred
by the Department of Alcohol and Drug Addiction Services in
conducting the gaming addiction study. In response to receiving
this certification, the Director of Budget and Management may
transfer the cost of the study in cash to the Problem Casino and
Gambling Addictions Fund (Fund 5JL0) to reimburse the fund for
costs incurred in conducting the study.
Section 11. 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.
Section 12. Section 5751.01 of the Revised Code is presented
in this act as a composite of the section as amended by both Am.
Sub. H.B. 153 and Sub. H.B. 277 of the 129th General Assembly. The
General Assembly, applying the principle stated in division (B) of
section 1.52 of the Revised Code that amendments are to be
harmonized if reasonably capable of simultaneous operation, finds
that the composite is the resulting version of the section in
effect prior to the effective date of the section as presented in
this act.
Section 13. The amendment by this act of sections 3770.02
and 5753.03 of the Revised Code are an emergency measure necessary
for the immediate preservation of the public peace, health, and
safety. The reason for such necessity is the importance of not
delaying casino licensing procedures and money distribution.
Therefore, the amendment by this act of sections 3770.02 and
5753.03 of the Revised Code goes into immediate effect.
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