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Sub. H. B. No. 386 As Passed by the HouseAs Passed by the House
129th General Assembly | Regular Session | 2011-2012 |
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Cosponsors:
Representatives Gerberry, Combs, Letson, Barnes, Boyd, Mallory, O'Brien, Weddington, Williams, Yuko
A BILL
To amend sections 122.014, 173.121, 2505.09, 2505.12,
2915.01, 2915.02, 2915.06, 2915.08, 2915.09,
2915.091, 2915.092, 2915.093, 2915.094, 2915.10,
2915.101, 2915.12, 2923.31, 2933.51, 3301.0714,
3769.08, 3769.087, 3769.089, 3769.201, 3769.21,
3770.02, 3770.05, 3770.07, 3770.071, 3770.21,
3772.01, 3772.03, 3772.04, 3772.091, 3772.10,
3772.13, 3772.16, 3772.17, 3772.28, 3772.99,
4301.03, 4303.17, 5753.01, and 5753.03, to enact
sections 121.421, 2505.122, 2915.18, and 3770.22,
and to repeal section 3772.14 of the Revised Code
and 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, bingo and instant bingo, and horse racing,
to require thoroughbred and standardbred racing
permit holders to pay a local tax, to create
charity card rooms, to make appropriations, and to
declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That sections 122.014, 173.121, 2505.09, 2505.12,
2915.01, 2915.02, 2915.06, 2915.08, 2915.09, 2915.091, 2915.092,
2915.093, 2915.094, 2915.10, 2915.101, 2915.12, 2923.31, 2933.51,
3301.0714, 3769.08, 3769.087, 3769.089, 3769.201, 3769.21,
3770.02, 3770.05, 3770.07, 3770.071, 3770.21, 3772.01, 3772.03,
3772.04, 3772.091, 3772.10, 3772.13, 3772.16, 3772.17, 3772.28,
3772.99, 4301.03, 4303.17, 5753.01, and 5753.03 be amended and
sections 121.421, 2505.122, 2915.18, and 3770.22 of the Revised
Code be enacted to read as follows:
Sec. 121.421. (A) Notwithstanding division (D)(3) of section
121.41 of the Revised Code, the inspector general shall do the
following to determine whether wrongful acts or omissions have
been committed or are being committed by present or former
employees:
(1) Investigate employees of the office of the attorney
general who are contractually vested with duties to enforce
Chapter 3772. of the Revised Code;
(2) Provide support in furtherance of enforcing Chapter 3772.
of the Revised Code.
(B) The inspector general and each deputy inspector may
administer oaths, examine witnesses under oath, and issue
subpoenas and subpoenas duces tecum to compel the attendance of
witnesses and the production of all kinds of books, records,
papers, and tangible things. Upon the refusal of a witness to be
sworn or to answer any question put to the witness, or if a person
disobeys a subpoena, the inspector general shall apply to the
court of common pleas for a contempt order, as in the case of
disobedience to the requirements of a subpoena issued from the
court of common pleas, or a refusal to testify in the court.
(C) The inspector general may enter into any contracts that
are necessary to complete an investigation. The contracts may
include contracts for the services of persons who are experts in a
particular field and whose expertise is necessary for successful
completion of the investigation.
(D) If the authority of the attorney general terminates or
expires, the authority vested in the inspector general by this
section terminates upon the conclusion of ongoing investigations
or upon issuance of the final report of the investigations.
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. 173.121. (A) As used in this section, "bingo," "bingo
game operator," and "participant" have the same meanings as in
section 2915.01 of the Revised Code.
(B) Notwithstanding sections 2915.07 to 2915.13 of the
Revised Code, a multipurpose senior center may conduct bingo games
described in division (S)(O)(1) of section 2915.01 of the Revised
Code, but only if it complies with all of the following
requirements:
(1) All bingo games are conducted only on the premises of the
facility.
(2) All participants are sixty years of age or older.
(3) All bingo game operators are sixty years of age or older
and receive no compensation for serving as operators.
(4) No participant is charged an admission fee, and no
participant is charged more than twenty-five cents to purchase a
bingo card or sheet.
(5) All proceeds from games are used only for any of the
following:
(a) To pay winners monetary or nonmonetary prizes;
(b) To provide refreshments;
(c) To defray any costs directly related to conducting the
games;
(d) To defray costs of services the facility provides in
accordance with section 173.12 of the Revised Code.
Sec. 2505.09. Except as provided in section 2505.11 or
2505.12 or another section of the Revised Code or in applicable
rules governing courts, the perfection of an appeal, including an
administrative-related appeal, does not operate as a stay of
execution until a stay of execution has been obtained pursuant to
the Rules of Appellate Procedure or in another applicable manner,
and a supersedeas bond is executed by the appellant to the
appellee, with sufficient sureties and, subject to section
2505.122 of the Revised Code, in a sum that is not less than, if
applicable, the cumulative total for all claims covered by the
final order, judgment, or decree and interest involved, except
that the bond shall not exceed fifty million dollars excluding
interest and costs, as directed by the court that rendered the
final order, judgment, or decree that is sought to be superseded
or by the court to which the appeal is taken. That bond shall be
conditioned as provided in section 2505.14 of the Revised Code.
Sec. 2505.12. An appellant is not required to give a
supersedeas bond in connection with any of the following:
(A) An Perfection of an appeal by any of the following:
(1) An executor, administrator, guardian, receiver, trustee,
or trustee in bankruptcy who is acting in that person's trust
capacity and who has given bond in this state, with surety
according to law;
(2) The state or any political subdivision of the state;
(3) Any public officer of the state or of any of its
political subdivisions who is suing or is sued solely in the
public officer's representative capacity as that officer.
(B)
An Perfection of an administrative-related appeal of a
final order that is not for the payment of money.
Sec. 2505.122. Any appellant who obtains a stay of execution
pending the appeal of a final order, adjudication, or decision
pursuant to section 2506.01 of the Revised Code shall
simultaneously execute a supersedeas bond to the appellee with
sufficient sureties and in an amount established in section
2505.09 of the Revised Code. In establishing the amount of the
bond, the court shall give great weight and due consideration to
the reasonable value of the matter at issue in the final order,
adjudication, or decision, the circumstances giving rise to the
appeal, and the economic impact of other consequences of delay to
the appellee and to those prevented from taking action that was
permitted by the final order, adjudication, or decision.
Sec. 2915.01. As used in this chapter:
(A) "Bookmaking" means the business of receiving or paying
off bets.
(B) "Bet" means the hazarding of anything of value upon the
result of an event, undertaking, or contingency, but does not
include a bona fide business risk.
(C) "Scheme of chance" means a slot machine, lottery, numbers
game, pool conducted for profit, or other scheme in which a
participant gives a valuable consideration for a chance to win a
prize, but does not include bingo, a skill-based amusement
machine, or a pool not conducted for profit.
(D) "Game of chance" means poker, craps, roulette, or other
game in which a player gives anything of value in the hope of
gain, the outcome of which is determined largely by chance, but
does not include bingo.
(E) "Game of chance conducted for profit" means any game of
chance designed to produce income for the person who conducts or
operates the game of chance, but does not include bingo.
(F) "Gambling device" means any of the following:
(1) A book, totalizer, or other equipment for recording bets;
(2) A ticket, token, or other device representing a chance,
share, or interest in a scheme of chance or evidencing a bet;
(3) A deck of cards, dice, gaming table, roulette wheel, slot
machine, or other apparatus designed for use in connection with a
game of chance;
(4) Any equipment, device, apparatus, or paraphernalia
specially designed for gambling purposes;
(5) Bingo supplies sold or otherwise provided, or used, in
violation of this chapter.
(G) "Gambling offense" means any of the following:
(1) A violation of section 2915.02, 2915.03, 2915.04,
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09,
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;
(2) A violation of an existing or former municipal ordinance
or law of this or any other state or the United States
substantially equivalent to any section listed in division (G)(1)
of this section or a violation of section 2915.06 of the Revised
Code as it existed prior to July 1, 1996;
(3) An offense under an existing or former municipal
ordinance or law of this or any other state or the United States,
of which gambling is an element;
(4) A conspiracy or attempt to commit, or complicity in
committing, any offense under division (G)(1), (2), or (3) of this
section.
(H) Except as otherwise provided in this chapter, "charitable
organization" means any tax exempt religious, educational,
veteran's, fraternal, sporting, service, nonprofit medical,
volunteer rescue service, volunteer firefighter's, senior
citizen's, historic railroad educational, youth athletic, amateur
athletic, or youth athletic park organization. An organization is
tax exempt if the organization is either of the following:
(1) An organization that is, and has received from the
internal revenue service a determination letter that currently is
in effect stating that the organization is, exempt from federal
income taxation under subsection 501(a) and described in
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or
501(c)(19) of the Internal Revenue Code, or if the organization is
a;
(2) A volunteer rescue service organization, volunteer
firefighter's organization, veteran's organization, fraternal
organization, or sporting organization that is exempt from federal
income taxation under subsection 501(a) and is described in
subsection 501(c)(4), (c)(7), (c)(8), (c)(10), or (c)(19) of the
Internal Revenue Code. To
To qualify as a "charitable organization," an organization,
except a volunteer rescue service or volunteer firefighter's
organization, shall have been in continuous existence as such in
this state for a period of two years immediately preceding either
the making of an application for a bingo license under section
2915.08 of the Revised Code or the conducting of any game of
chance as provided in division (D) of section 2915.02 of the
Revised Code. A charitable organization that is exempt from
federal income taxation under subsection 501(a) and described in
subsection 501(c)(3) of the Internal Revenue Code and that is
created by a veteran's organization, a fraternal organization, or
a sporting organization does not have to have been in continuous
existence as such in this state for a period of two years
immediately preceding either the making of an application for a
bingo license under section 2915.08 of the Revised Code or the
conducting of any game of chance as provided in division (D) of
section 2915.02 of the Revised Code.
(I) "Religious organization" means any church, body of
communicants, or group that is not organized or operated for
profit and that gathers in common membership for regular worship
and religious observances.
(J) "Educational organization" means any organization within
this state that is not organized for profit, the primary purpose
of which is to educate and develop the capabilities of individuals
through instruction by means of operating or contributing to the
support of a school, academy, college, or university.
(K) "Veteran's organization" means any individual post or
state headquarters of a national veteran's association or an
auxiliary unit of any individual post of a national veteran's
association, which post, state headquarters, or auxiliary unit is
incorporated as a nonprofit corporation and either has received a
letter from the state headquarters of the national veteran's
association indicating that the individual post or auxiliary unit
is in good standing with the national veteran's association or has
received a letter from the national veteran's association
indicating that the state headquarters is in good standing with
the national veteran's association. As used in this division,
"national veteran's association" means any veteran's association
that has been in continuous existence as such for a period of at
least five years and either is incorporated by an act of the
United States congress or has a national dues-paying membership of
at least five thousand persons.
(L)(K) "Volunteer firefighter's organization" means any
organization of volunteer firefighters, as defined in section
146.01 of the Revised Code, that is organized and operated
exclusively to provide financial support for a volunteer fire
department or a volunteer fire company and that is recognized or
ratified by a county, municipal corporation, or township.
(M)(L) "Fraternal organization" means any society, order,
state headquarters, or association within this state, except a
college or high school fraternity, that is not organized for
profit, that is a branch, lodge, or chapter of a national or state
organization, that exists exclusively for the common business or
sodality of its members.
(N)(M) "Volunteer rescue service organization" means any
organization of volunteers organized to function as an emergency
medical service organization, as defined in section 4765.01 of the
Revised Code.
(O) "Service organization" means either of the following:
(1) Any organization, not organized for profit, that is
organized and operated exclusively to provide, or to contribute to
the support of organizations or institutions organized and
operated exclusively to provide, medical and therapeutic services
for persons who are crippled, born with birth defects, or have any
other mental or physical defect or those organized and operated
exclusively to protect, or to contribute to the support of
organizations or institutions organized and operated exclusively
to protect, animals from inhumane treatment or provide immediate
shelter to victims of domestic violence;
(2) Any organization that is described in subsection
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code
and is either a governmental unit or an organization that is tax
exempt under subsection 501(a) and described in subsection
501(c)(3) of the Internal Revenue Code and that is an
organization, not organized for profit, that is organized and
operated primarily to provide, or to contribute to the support of
organizations or institutions organized and operated primarily to
provide, medical and therapeutic services for persons who are
crippled, born with birth defects, or have any other mental or
physical defect.
(P) "Nonprofit medical organization" means either of the
following:
(1) Any organization that has been incorporated as a
nonprofit corporation for at least five years and that has
continuously operated and will be operated exclusively to provide,
or to contribute to the support of organizations or institutions
organized and operated exclusively to provide, hospital, medical,
research, or therapeutic services for the public;
(2) Any organization that is described and qualified under
subsection 501(c)(3) of the Internal Revenue Code, that has been
incorporated as a nonprofit corporation for at least five years,
and that has continuously operated and will be operated primarily
to provide, or to contribute to the support of organizations or
institutions organized and operated primarily to provide,
hospital, medical, research, or therapeutic services for the
public.
(Q) "Senior citizen's organization" means any private
organization, not organized for profit, that is organized and
operated exclusively to provide recreational or social services
for persons who are fifty-five years of age or older and that is
described and qualified under subsection 501(c)(3) of the Internal
Revenue Code.
(R)(N) "Charitable bingo game" means any bingo game described
in division (S)(O)(1) or (2) of this section that is conducted by
a charitable organization that has obtained a license pursuant to
section 2915.08 of the Revised Code and the proceeds of which are
used for a charitable purpose.
(S)(O) "Bingo" means either of the following:
(1) A game with all of the following characteristics:
(a) The participants use bingo cards or sheets, including
paper formats and electronic representation or image formats, that
are divided into twenty-five spaces arranged in five horizontal
and five vertical rows of spaces, with each space, except the
central space, being designated by a combination of a letter and a
number and with the central space being designated as a free
space.
(b) The participants cover the spaces on the bingo cards or
sheets that correspond to combinations of letters and numbers that
are announced by a bingo game operator.
(c) A bingo game operator announces combinations of letters
and numbers that appear on objects that a bingo game operator
selects by chance, either manually or mechanically, from a
receptacle that contains seventy-five objects at the beginning of
each game, each object marked by a different combination of a
letter and a number that corresponds to one of the seventy-five
possible combinations of a letter and a number that can appear on
the bingo cards or sheets.
(d) The winner of the bingo game includes any participant who
properly announces during the interval between the announcements
of letters and numbers as described in division (S)(O)(1)(c) of
this section, that a predetermined and preannounced pattern of
spaces has been covered on a bingo card or sheet being used by the
participant.
(2) Instant bingo, punch boards, and raffles.
(T)(P) "Conduct" means to back, promote, organize, manage,
carry on, sponsor, or prepare for the operation of bingo or a game
of chance.
(U)(Q) "Bingo game operator" means any person, except
security personnel, who performs work or labor at the site of
bingo, including, but not limited to, collecting money from
participants, handing out bingo cards or sheets or objects to
cover spaces on bingo cards or sheets, selecting from a receptacle
the objects that contain the combination of letters and numbers
that appear on bingo cards or sheets, calling out the combinations
of letters and numbers, distributing prizes, selling or redeeming
instant bingo tickets or cards, supervising the operation of a
punch board, selling raffle tickets, selecting raffle tickets from
a receptacle and announcing the winning numbers in a raffle, and
preparing, selling, and serving food or beverages.
(V)(R) "Participant" means any person who plays bingo.
(W)(S) "Bingo session" means a period that includes both of
the following:
(1) Not to exceed five continuous hours for the conduct of
one or more games described in division (S)(O)(1) of this section,
instant bingo, and seal cards;
(2) A period for the conduct of instant bingo and seal cards
for not more than two hours before and not more than two hours
after the period described in division (W)(S)(1) of this section.
(X)(T) "Gross receipts" means all money or assets, including
admission fees, that a person receives from bingo without the
deduction of any amounts for prizes paid out or for the expenses
of conducting bingo. "Gross receipts" does not include any money
directly taken in from the sale of food or beverages by a
charitable organization conducting bingo, or by a bona fide
auxiliary unit or society of a charitable organization conducting
bingo, provided all of the following apply:
(1) The auxiliary unit or society has been in existence as a
bona fide auxiliary unit or society of the charitable organization
for at least two years prior to conducting bingo.
(2) The person who purchases the food or beverage receives
nothing of value except the food or beverage and items customarily
received with the purchase of that food or beverage.
(3) The food and beverages are sold at customary and
reasonable prices.
(Y)(U) "Security personnel" includes any person who either is
a sheriff, deputy sheriff, marshal, deputy marshal, township
constable, or member of an organized police department of a
municipal corporation or has successfully completed a peace
officer's training course pursuant to sections 109.71 to 109.79 of
the Revised Code and who is hired to provide security for the
premises on which bingo is conducted.
(Z)(V) "Charitable purpose" means that the net profit of
bingo, other than instant bingo, is used by, or is given, donated,
or otherwise transferred to, any of the following:
(1) Any organization that is described in subsection
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code
and is either a governmental unit or an organization that is tax
exempt under subsection 501(a) and described in subsection
501(c)(3) of the Internal Revenue Code;
(2) A veteran's organization that is a post, chapter, or
organization of veterans, or an auxiliary unit or society of, or a
trust or foundation for, any such post, chapter, or organization
organized in the United States or any of its possessions, at least
seventy-five per cent of the members of which are veterans and
substantially all of the other members of which are individuals
who are spouses, widows, or widowers of veterans, or such
individuals, provided that no part of the net earnings of such
post, chapter, or organization inures to the benefit of any
private shareholder or individual, and further provided that the
net profit is used by the post, chapter, or organization for the
charitable purposes set forth in division (B)(12) of section
5739.02 of the Revised Code, is used for awarding scholarships to
or for attendance at an institution mentioned in division (B)(12)
of section 5739.02 of the Revised Code, is donated to a
governmental agency, or is used for nonprofit youth activities,
the purchase of United States or Ohio flags that are donated to
schools, youth groups, or other bona fide nonprofit organizations,
promotion of patriotism, or disaster relief;
(3) A fraternal organization that has been in continuous
existence in this state for fifteen years and that uses the net
profit exclusively for religious, charitable, scientific,
literary, or educational purposes, or for the prevention of
cruelty to children or animals, if contributions for such use
would qualify as a deductible charitable contribution under
subsection 170 of the Internal Revenue Code;
(4) A volunteer firefighter's organization that uses the net
profit for the purposes set forth in division (L)(K) of this
section.
(AA)(W) "Internal Revenue Code" means the "Internal Revenue
Code of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter
amended.
(BB)(X) "Youth athletic organization" means any organization,
not organized for profit, that is organized and operated
exclusively to provide financial support to, or to operate,
athletic activities for persons who are twenty-one years of age or
younger by means of sponsoring, organizing, operating, or
contributing to the support of an athletic team, club, league, or
association.
(CC)(Y) "Youth athletic park organization" means any
organization, not organized for profit, that satisfies both of the
following:
(1) It owns, operates, and maintains playing fields that
satisfy both of the following:
(a) The playing fields are used at least one hundred days per
year for athletic activities by one or more organizations, not
organized for profit, each of which is organized and operated
exclusively to provide financial support to, or to operate,
athletic activities for persons who are eighteen years of age or
younger by means of sponsoring, organizing, operating, or
contributing to the support of an athletic team, club, league, or
association.
(b) The playing fields are not used for any profit-making
activity at any time during the year.
(2) It uses the proceeds of bingo it conducts exclusively for
the operation, maintenance, and improvement of its playing fields
of the type described in division (CC)(Y)(1) of this section.
(DD) "Amateur athletic organization" means any organization,
not organized for profit, that is organized and operated
exclusively to provide financial support to, or to operate,
athletic activities for persons who are training for amateur
athletic competition that is sanctioned by a national governing
body as defined in the "Amateur Sports Act of 1978," 90 Stat.
3045, 36 U.S.C.A. 373.
(EE)(Z) "Bingo supplies" means bingo cards or sheets; instant
bingo tickets or cards; electronic bingo aids; raffle tickets;
punch boards; seal cards; instant bingo ticket dispensers; and
devices for selecting or displaying the combination of bingo
letters and numbers or raffle tickets. Items that are "bingo
supplies" are not gambling devices if sold or otherwise provided,
and used, in accordance with this chapter. For purposes of this
chapter, "bingo supplies" are not to be considered equipment used
to conduct a bingo game.
(FF)(AA) "Instant bingo" means a form of bingo that uses
shall use folded or banded tickets or paper cards with perforated
break-open tabs, a face of which is covered or otherwise hidden
from view to conceal a number, letter, or symbol, or set of
numbers, letters, or symbols, some of which have been designated
in advance as prize winners. "Instant bingo" includes seal cards,
and may also include games in which some winners are determined by
the random selection of one or more bingo numbers by the use of a
seal card or bingo blower. In all "instant bingo" the prize amount
and structure shall be predetermined. "Instant bingo" does not
include any device that is activated by the insertion of a coin,
currency, token, or an equivalent, and that contains as one of its
components a video display monitor that is capable of displaying
numbers, letters, symbols, or characters in winning or losing
combinations.
(GG)(BB) "Seal card" means a form of instant bingo that uses
instant bingo tickets in conjunction with a board or placard that
contains one or more seals that, when removed or opened, reveal
predesignated winning numbers, letters, or symbols.
(HH)(CC) "Raffle" means a form of bingo in which the one or
more prizes are won by one or more persons who have purchased a
raffle ticket. The one or more winners of the raffle are
determined by drawing a ticket stub or other detachable section
from a receptacle containing ticket stubs or detachable sections
corresponding to all tickets sold for the raffle. "Raffle" does
not include the drawing of a ticket stub or other detachable
section of a ticket purchased to attend a professional sporting
event if both of the following apply:
(1) The ticket stub or other detachable section is used to
select the winner of a free prize given away at the professional
sporting event; and
(2) The cost of the ticket is the same as the cost of a
ticket to the professional sporting event on days when no free
prize is given away.
(II)(DD) "Punch board" means a board containing a number of
holes or receptacles of uniform size in which are placed,
mechanically and randomly, serially numbered slips of paper that
may be punched or drawn from the hole or receptacle when used in
conjunction with instant bingo. A player may punch or draw the
numbered slips of paper from the holes or receptacles and obtain
the prize established for the game if the number drawn corresponds
to a winning number or, if the punch board includes the use of a
seal card, a potential winning number.
(JJ)(EE) "Gross profit" means gross receipts minus the amount
actually expended for the payment of prize awards.
(KK)(FF) "Net profit" means gross profit minus expenses.
(LL)(GG) "Expenses" means the reasonable amount of gross
profit actually expended for all of the following:
(1) The purchase or lease of bingo supplies;
(2) The annual license fee required under section 2915.08 of
the Revised Code;
(3) Bank fees and service charges for a bingo session or game
account described in section 2915.10 of the Revised Code;
(4) Audits and accounting services;
(7) Hiring security personnel;
(9) Renting premises in which to conduct a bingo session;
(11) Expenses for maintaining and operating a charitable
organization's facilities, including, but not limited to, a post
home, club house, lounge, tavern, or canteen and any grounds
attached to the post home, club house, lounge, tavern, or canteen;
(12) Payment of real property taxes and assessments that are
levied on a premises on which bingo is conducted;
(13) Any other product or service directly related to the
conduct of bingo that is authorized in rules adopted by the
attorney general under division (B)(1) of section 2915.08 of the
Revised Code.
(MM)(HH) "Person" has the same meaning as in section 1.59 of
the Revised Code and includes any firm or any other legal entity,
however organized.
(NN)(II) "Revoke" means to void permanently all rights and
privileges of the holder of a license issued under section
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable
gaming license issued by another jurisdiction.
(OO)(JJ) "Suspend" means to interrupt temporarily all rights
and privileges of the holder of a license issued under section
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable
gaming license issued by another jurisdiction.
(PP)(KK) "Distributor" means any person who purchases or
obtains bingo supplies and who does either of the following:
(1) Sells, offers for sale, or otherwise provides or offers
to provide the bingo supplies to another person for use in this
state;
(2) Modifies, converts, adds to, or removes parts from the
bingo supplies to further their promotion or sale for use in this
state.
(QQ)(LL) "Manufacturer" means any person who assembles
completed bingo supplies from raw materials, other items, or
subparts or who modifies, converts, adds to, or removes parts from
bingo supplies to further their promotion or sale.
(RR)(MM) "Gross annual revenues" means the annual gross
receipts derived from the conduct of bingo described in division
(S)(O)(1) of this section plus the annual net profit derived from
the conduct of bingo described in division (S)(O)(2) of this
section.
(SS)(NN) "Instant bingo ticket dispenser" means a mechanical
device that dispenses an instant bingo ticket or card as the sole
item of value dispensed and that has the following
characteristics:
(1) It is activated upon the insertion of United States
currency.
(2) It performs no gaming functions.
(3) It does not contain a video display monitor or generate
noise.
(4) It is not capable of displaying any numbers, letters,
symbols, or characters in winning or losing combinations.
(5) It does not simulate or display rolling or spinning
reels.
(6) It is incapable of determining whether a dispensed bingo
ticket or card is a winning or nonwinning ticket or card and
requires a winning ticket or card to be paid by a bingo game
operator.
(7) It may provide accounting and security features to aid in
accounting for the instant bingo tickets or cards it dispenses.
(8) It is not part of an electronic network and is not
interactive.
(TT)(OO)(1) "Electronic bingo aid" means an electronic device
used by a participant to monitor bingo cards or sheets purchased
at the time and place of a bingo session and that does all of the
following:
(a) It provides a means for a participant to input numbers
and letters announced by a bingo caller.
(b) It compares the numbers and letters entered by the
participant to the bingo faces previously stored in the memory of
the device.
(c) It identifies a winning bingo pattern.
(2) "Electronic bingo aid" does not include any device into
which a coin, currency, token, or an equivalent is inserted to
activate play.
(UU)(PP) "Deal of instant bingo tickets" means a single game
of instant bingo tickets all with the same serial number.
(VV)(QQ)(1) "Slot machine" means either of the following:
(a) Any mechanical, electronic, video, or digital device that
is capable of accepting anything of value, directly or indirectly,
from or on behalf of a player who gives the thing of value in the
hope of gain;
(b) Any mechanical, electronic, video, or digital device that
is capable of accepting anything of value, directly or indirectly,
from or on behalf of a player to conduct bingo or a scheme or game
of chance.
(2) "Slot machine" does not include a skill-based amusement
machine or an instant bingo ticket dispenser.
(WW)(RR) "Net profit from the proceeds of the sale of instant
bingo" means gross profit minus the ordinary, necessary, and
reasonable expense expended for the purchase of instant bingo
supplies, and, in the case of instant bingo conducted by a
veteran's, fraternal, or sporting organization, minus the payment
by that organization of real property taxes and assessments levied
on a premises on which instant bingo is conducted.
(XX)(SS) "Charitable instant bingo organization" means an
organization that is exempt from federal income taxation under
subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code and is a charitable organization as defined
in this section. A "charitable instant bingo organization" does
not include a charitable organization that is exempt from federal
income taxation under subsection 501(a) and described in
subsection 501(c)(3) of the Internal Revenue Code and that is
created by a veteran's organization, a fraternal organization, or
a sporting organization in regards to bingo conducted or assisted
by a veteran's organization, a fraternal organization, or a
sporting organization pursuant to section 2915.13 of the Revised
Code.
(YY)(TT) "Game flare" means the board or placard that
accompanies each deal of instant bingo tickets and that has
printed on or affixed to it the following information for the
game:
(1) The name of the game;
(2) The manufacturer's name or distinctive logo;
(5) The prize structure, including the number of winning
instant bingo tickets by denomination and the respective winning
symbol or number combinations for the winning instant bingo
tickets;
(7) The serial number of the game.
(ZZ) "Historic railroad educational organization" means an
organization that is exempt from federal income taxation under
subsection 501(a) and described in subsection 501(c)(3) of the
Internal Revenue Code, that owns in fee simple the tracks and the
right-of-way of a historic railroad that the organization restores
or maintains and on which the organization provides excursions as
part of a program to promote tourism and educate visitors
regarding the role of railroad transportation in Ohio history, and
that received as donations from a charitable organization that
holds a license to conduct bingo under this chapter an amount
equal to at least fifty per cent of that licensed charitable
organization's net proceeds from the conduct of bingo during each
of the five years preceding June 30, 2003. "Historic railroad"
means all or a portion of the tracks and right-of-way of a
railroad that was owned and operated by a for-profit common
carrier in this state at any time prior to January 1, 1950.
(AAA)(UU)(1) "Skill-based amusement machine" means a
mechanical, video, digital, or electronic device that rewards the
player or players, if at all, only with merchandise prizes or with
redeemable vouchers redeemable only for merchandise prizes,
provided that with respect to rewards for playing the game all of
the following apply:
(a) The wholesale value of a merchandise prize awarded as a
result of the single play of a machine does not exceed ten
dollars;
(b) Redeemable vouchers awarded for any single play of a
machine are not redeemable for a merchandise prize with a
wholesale value of more than ten dollars;
(c) Redeemable vouchers are not redeemable for a merchandise
prize that has a wholesale value of more than ten dollars times
the fewest number of single plays necessary to accrue the
redeemable vouchers required to obtain that prize; and
(d) Any redeemable vouchers or merchandise prizes are
distributed at the site of the skill-based amusement machine at
the time of play.
A card for the purchase of gasoline is a redeemable voucher
for purposes of division (AAA)(UU)(1) of this section even if the
skill-based amusement machine for the play of which the card is
awarded is located at a place where gasoline may not be legally
distributed to the public or the card is not redeemable at the
location of, or at the time of playing, the skill-based amusement
machine.
(2) A device shall not be considered a skill-based amusement
machine and shall be considered a slot machine if it pays cash or
one or more of the following apply:
(a) The ability of a player to succeed at the game is
impacted by the number or ratio of prior wins to prior losses of
players playing the game.
(b) Any reward of redeemable vouchers is not based solely on
the player achieving the object of the game or the player's score;
(c) The outcome of the game, or the value of the redeemable
voucher or merchandise prize awarded for winning the game, can be
controlled by a source other than any player playing the game.
(d) The success of any player is or may be determined by a
chance event that cannot be altered by player actions.
(e) The ability of any player to succeed at the game is
determined by game features not visible or known to the player.
(f) The ability of the player to succeed at the game is
impacted by the exercise of a skill that no reasonable player
could exercise.
(3) All of the following apply to any machine that is
operated as described in division (AAA)(UU)(1) of this section:
(a) As used in division (UU) of this section, "game" and
"play" mean one event from the initial activation of the machine
until the results of play are determined without payment of
additional consideration. An individual utilizing a machine that
involves a single game, play, contest, competition, or tournament
may be awarded redeemable vouchers or merchandise prizes based on
the results of play.
(b) Advance play for a single game, play, contest,
competition, or tournament participation may be purchased. The
cost of the contest, competition, or tournament participation may
be greater than a single noncontest, competition, or tournament
play.
(c) To the extent that the machine is used in a contest,
competition, or tournament, that contest, competition, or
tournament has a defined starting and ending date and is open to
participants in competition for scoring and ranking results toward
the awarding of redeemable vouchers or merchandise prizes that are
stated prior to the start of the contest, competition, or
tournament.
(4) For purposes of division (AAA)(UU)(1) of this section,
the mere presence of a device, such as a pin-setting,
ball-releasing, or scoring mechanism, that does not contribute to
or affect the outcome of the play of the game does not make the
device a skill-based amusement machine.
(BBB)(VV) "Merchandise prize" means any item of value, but
shall not include any of the following:
(1) Cash, gift cards, or any equivalent thereof;
(2) Plays on games of chance, state lottery tickets, bingo,
or instant bingo;
(3) Firearms, tobacco, or alcoholic beverages; or
(4) A redeemable voucher that is redeemable for any of the
items listed in division (BBB)(VV)(1), (2), or (3) of this
section.
(CCC)(WW) "Redeemable voucher" means any ticket, token,
coupon, receipt, or other noncash representation of value.
(DDD)(XX) "Pool not conducted for profit" means a scheme in
which a participant gives a valuable consideration for a chance to
win a prize and the total amount of consideration wagered is
distributed to a participant or participants.
(EEE)(YY) "Sporting organization" means a hunting, fishing,
or trapping organization, other than a college or high school
fraternity or sorority, that is not organized for profit, that is
affiliated with a state or national sporting organization,
including but not limited to, the Ohio league of Ohio sportsmen,
and that has been in continuous existence in this state for a
period of three years.
(FFF)(ZZ) "Community action agency" has the same meaning as
in section 122.66 of the Revised Code.
(AAA) "Permitted location" means a building leased by a
county in this state under a lease pursuant to which charitable
organizations have operated festivals weekly for the eighteen
months immediately preceding the effective date of this amendment,
at which games of chance were offered.
(BBB) "Charity card room" means a facility at a permitted
location that offers games of chance conducted by a charitable
organization.
Sec. 2915.02. (A) No person shall do any of the following:
(1) Engage in bookmaking, or knowingly engage in conduct that
facilitates bookmaking;
(2) Establish, promote, or operate or knowingly engage in
conduct that facilitates any game of chance conducted for profit
or any scheme of chance;
(3) Knowingly procure, transmit, exchange, or engage in
conduct that facilitates the procurement, transmission, or
exchange of information for use in establishing odds or
determining winners in connection with bookmaking or with any game
of chance conducted for profit or any scheme of chance;
(4) Engage in betting or in playing any scheme or game of
chance as a substantial source of income or livelihood;
(5) With purpose to violate division (A)(1), (2), (3), or (4)
of this section, acquire, possess, control, or operate any
gambling device.
(B) For purposes of division (A)(1) of this section, a person
facilitates bookmaking if the person in any way knowingly aids an
illegal bookmaking operation, including, without limitation,
placing a bet with a person engaged in or facilitating illegal
bookmaking. For purposes of division (A)(2) of this section, a
person facilitates a game of chance conducted for profit or a
scheme of chance if the person in any way knowingly aids in the
conduct or operation of any such game or scheme, including,
without limitation, playing any such game or scheme.
(C) This section does not prohibit conduct in connection with
gambling expressly permitted by law.
(D) This section does not apply to any of the following:
(1) Games of chance, if all of the following apply:
(a) The games of chance are not craps for money or roulette
for money.
(b) The games of chance are conducted by a charitable
organization that is, and has received from the internal revenue
service a determination letter that is currently in effect,
stating that the organization is, exempt from federal income
taxation under subsection 501(a) and described in subsection
501(c)(3) of the Internal Revenue Code.
(c) The games of chance are conducted at festivals of the
charitable organization that are conducted either for a period of
four consecutive days or less and not more than twice a year or
for a period of a total of five consecutive days not more than
once a year, and are conducted on premises owned by the charitable
organization for a period of no less than one year immediately
preceding the conducting of the games of chance, on premises
leased from a governmental unit, or on premises that are leased
from a veteran's or fraternal organization and that have been
owned by the lessor veteran's or fraternal organization for a
period of no less than one year immediately preceding the
conducting of the games of chance.
A charitable organization shall not lease premises from a
veteran's or fraternal organization to conduct a festival
described in division (D)(1)(c) of this section if the veteran's
or fraternal organization already has leased the premises twelve
times during the preceding year to charitable organizations for
that purpose. If a charitable organization leases premises from a
veteran's or fraternal organization to conduct a festival
described in division (D)(1)(c) of this section, the charitable
organization shall not pay a rental rate for the premises per day
of the festival that exceeds the rental rate per bingo session
that a charitable organization may pay under division (B)(1) of
section 2915.09 of the Revised Code when it leases premises from
another charitable organization to conduct bingo games.
(d) All of the money or assets received from the games of
chance after deduction only of prizes paid out during the conduct
of the games of chance are used by, or given, donated, or
otherwise transferred to, any organization that is described in
subsection 509(a)(1), 509(a)(2), or 509(a)(3) of the Internal
Revenue Code and is either a governmental unit or an organization
that is tax exempt under subsection 501(a) and described in
subsection 501(c)(3) of the Internal Revenue Code;
(e) The games of chance are not conducted during, or within
ten hours of, a bingo game conducted for amusement purposes only
pursuant to section 2915.12 of the Revised Code.
No person shall receive any commission, wage, salary, reward,
tip, donation, gratuity, or other form of compensation, directly
or indirectly, for operating or assisting in the operation of any
game of chance.
(2) Any tag fishing tournament operated under a permit issued
under section 1533.92 of the Revised Code, as "tag fishing
tournament" is defined in section 1531.01 of the Revised Code;
(3) Bingo conducted by a charitable organization that holds a
license issued under section 2915.08 of the Revised Code.
(E) Division (D) of this section shall not be construed to
authorize the sale, lease, or other temporary or permanent
transfer of the right to conduct games of chance, as granted by
that division, by any charitable organization that is granted that
right.
(F) Whoever violates this section is guilty of gambling, a
misdemeanor of the first degree. If the offender previously has
been convicted of any gambling offense, gambling is a felony of
the fifth degree.
Sec. 2915.06. (A) No person shall give to another person any
item described in division
(BBB)(VV)(1), (2), (3), or (4) of
section 2915.01 of the Revised Code in exchange for a noncash
prize, toy, or novelty received as a reward for playing or
operating a skill-based amusement machine or for a free or
reduced-price game won on a skill-based amusement machine.
(B) Whoever violates division (A) of this section is guilty
of skill-based amusement machine prohibited conduct. A violation
of division (A) of this section is a misdemeanor of the first
degree for each redemption of a prize that is involved in the
violation. If the offender previously has been convicted of a
violation of division (A) of this section, a violation of that
division is a felony of the fifth degree for each redemption of a
prize that is involved in the violation. The maximum fine
authorized to be imposed for a felony of the fifth degree shall be
imposed upon the offender.
Sec. 2915.08. (A)(1) Annually before the first day of
January, a charitable organization that desires to conduct bingo,
instant bingo at a bingo session, or instant bingo other than at a
bingo session shall make out, upon a form to be furnished by the
attorney general for that purpose, an application for a license to
conduct bingo, instant bingo at a bingo session, or instant bingo
other than at a bingo session and deliver that application to the
attorney general together with a license fee as follows:
(a) Except as otherwise provided in this division, for a
license for the conduct of bingo, two hundred dollars;
(b) For a license for the conduct of instant bingo at a bingo
session or instant bingo other than at a bingo session for a
charitable organization that previously has not been licensed
under this chapter to conduct instant bingo at a bingo session or
instant bingo other than at a bingo session, a license fee of five
hundred dollars, and for any other charitable organization, a
license fee that is based upon the gross profits received by the
charitable organization from the operation of instant bingo at a
bingo session or instant bingo other than at a bingo session,
during the one-year period ending on the thirty-first day of
October of the year immediately preceding the year for which the
license is sought, and that is one of the following:
(i) Five hundred dollars, if the total is fifty thousand
dollars or less;
(ii) One thousand two hundred fifty dollars plus one-fourth
per cent of the gross profit, if the total is more than fifty
thousand dollars but less than two hundred fifty thousand one
dollars;
(iii) Two thousand two hundred fifty dollars plus one-half
per cent of the gross profit, if the total is more than two
hundred fifty thousand dollars but less than five hundred thousand
one dollars;
(iv) Three thousand five hundred dollars plus one per cent of
the gross profit, if the total is more than five hundred thousand
dollars but less than one million one dollars;
(v) Five thousand dollars plus one per cent of the gross
profit, if the total is one million one dollars or more;
(c) A reduced license fee established by the attorney general
pursuant to division (G) of this section.
(d) For a license to conduct bingo for a charitable
organization that prior to the effective date of this amendment
July 1, 2003, has not been licensed under this chapter to conduct
bingo, instant bingo at a bingo session, or instant bingo other
than at a bingo session, a license fee established by rule by the
attorney general in accordance with division (H) of this section.
(2) The application shall be in the form prescribed by the
attorney general, shall be signed and sworn to by the applicant,
and shall contain all of the following:
(a) The name and post-office address of the applicant;
(b) A statement that the applicant is a charitable
organization and that it has been in continuous existence as a
charitable organization in this state for two years immediately
preceding the making of the application or for five years in the
case of a fraternal organization or a nonprofit medical
organization;
(c) The location at which the organization will conduct
bingo, which location shall be within the county in which the
principal place of business of the applicant is located, or within
the municipal corporation in which the principal place of business
of the applicant is located if the organization is located in more
than one municipal corporation, the days of the week and the times
on each of those days when bingo will be conducted, whether the
organization owns, leases, or subleases the premises, and a copy
of the rental agreement if it leases or subleases the premises;
(d) A statement of the applicant's previous history, record,
and association that is sufficient to establish that the applicant
is a charitable organization, and a copy of a determination letter
that is issued by the Internal Revenue Service and states that the
organization is tax exempt under subsection 501(a) and described
in subsection 501(c)(3), 501(c)(4), 501(c)(7), 501(c)(8),
501(c)(10), or 501(c)(19) of the Internal Revenue Code;
(e) A statement as to whether the applicant has ever had any
previous application refused, whether it previously has had a
license revoked or suspended, and the reason stated by the
attorney general for the refusal, revocation, or suspension;
(f) A statement of the charitable purposes for which the net
profit derived from bingo, other than instant bingo, will be used,
and a statement of how the net profit derived from instant bingo
will be distributed in accordance with section 2915.101 of the
Revised Code;
(g) Other necessary and reasonable information that the
attorney general may require by rule adopted pursuant to section
111.15 of the Revised Code;
(h) If the applicant is a charitable trust as defined in
section 109.23 of the Revised Code, a statement as to whether it
has registered with the attorney general pursuant to section
109.26 of the Revised Code or filed annual reports pursuant to
section 109.31 of the Revised Code, and, if it is not required to
do either, the exemption in section 109.26 or 109.31 of the
Revised Code that applies to it;
(i) If the applicant is a charitable organization as defined
in section 1716.01 of the Revised Code, a statement as to whether
it has filed with the attorney general a registration statement
pursuant to section 1716.02 of the Revised Code and a financial
report pursuant to section 1716.04 of the Revised Code, and, if it
is not required to do both, the exemption in section 1716.03 of
the Revised Code that applies to it;
(j) In the case of an applicant seeking to qualify as a youth
athletic park organization, a statement issued by a board or body
vested with authority under Chapter 755. of the Revised Code for
the supervision and maintenance of recreation facilities in the
territory in which the organization is located, certifying that
the playing fields owned by the organization were used for at
least one hundred days during the year in which the statement is
issued, and were open for use to all residents of that territory,
regardless of race, color, creed, religion, sex, or national
origin, for athletic activities by youth athletic organizations
that do not discriminate on the basis of race, color, creed,
religion, sex, or national origin, and that the fields were not
used for any profit-making activity at any time during the year.
That type of board or body is authorized to issue the statement
upon request and shall issue the statement if it finds that the
applicant's playing fields were so used.
(3) The attorney general, within thirty days after receiving
a timely filed application from a charitable organization that has
been issued a license under this section that has not expired and
has not been revoked or suspended, shall send a temporary permit
to the applicant specifying the date on which the application was
filed with the attorney general and stating that, pursuant to
section 119.06 of the Revised Code, the applicant may continue to
conduct bingo until a new license is granted or, if the
application is rejected, until fifteen days after notice of the
rejection is mailed to the applicant. The temporary permit does
not affect the validity of the applicant's application and does
not grant any rights to the applicant except those rights
specifically granted in section 119.06 of the Revised Code. The
issuance of a temporary permit by the attorney general pursuant to
this division does not prohibit the attorney general from
rejecting the applicant's application because of acts that the
applicant committed, or actions that the applicant failed to take,
before or after the issuance of the temporary permit.
(4) Within thirty days after receiving an initial license
application from a charitable organization to conduct bingo,
instant bingo at a bingo session, or instant bingo other than at a
bingo session, the attorney general shall conduct a preliminary
review of the application and notify the applicant regarding any
deficiencies. Once an application is deemed complete, or beginning
on the thirtieth day after the application is filed, if the
attorney general failed to notify the applicant of any
deficiencies, the attorney general shall have an additional sixty
days to conduct an investigation and either grant or deny the
application based on findings established and communicated in
accordance with divisions (B) and (E) of this section. As an
option to granting or denying an initial license application, the
attorney general may grant a temporary license and request
additional time to conduct the investigation if the attorney
general has cause to believe that additional time is necessary to
complete the investigation and has notified the applicant in
writing about the specific concerns raised during the
investigation.
(B)(1) The attorney general shall adopt rules to enforce
sections 2915.01, 2915.02, and 2915.07 to 2915.13 of the Revised
Code to ensure that bingo or instant bingo is conducted in
accordance with those sections and to maintain proper control over
the conduct of bingo or instant bingo. The rules, except rules
adopted pursuant to divisions (A)(2)(g) and (G) of this section,
shall be adopted pursuant to Chapter 119. of the Revised Code. The
attorney general shall license charitable organizations to conduct
bingo, instant bingo at a bingo session, or instant bingo other
than at a bingo session in conformance with this chapter and with
the licensing provisions of Chapter 119. of the Revised Code.
(2) The attorney general may refuse to grant a license to any
organization, or revoke or suspend the license of any
organization, that does any of the following or to which any of
the following applies:
(a) Fails or has failed at any time to meet any requirement
of section 109.26, 109.31, or 1716.02, or sections 2915.07 to
2915.11 of the Revised Code, or violates or has violated any
provision of sections 2915.02 or 2915.07 to 2915.13 of the Revised
Code or any rule adopted by the attorney general pursuant to this
section;
(b) Makes or has made an incorrect or false statement that is
material to the granting of the license in an application filed
pursuant to division (A) of this section;
(c) Submits or has submitted any incorrect or false
information relating to an application if the information is
material to the granting of the license;
(d) Maintains or has maintained any incorrect or false
information that is material to the granting of the license in the
records required to be kept pursuant to divisions (A) and (C) of
section 2915.10 of the Revised Code, if applicable;
(e) The attorney general has good cause to believe that the
organization will not conduct bingo, instant bingo at a bingo
session, or instant bingo other than at a bingo session in
accordance with sections 2915.07 to 2915.13 of the Revised Code or
with any rule adopted by the attorney general pursuant to this
section.
(3) For the purposes of division (B) of this section, any
action of an officer, trustee, agent, representative, or bingo
game operator of an organization is an action of the organization.
(C) The attorney general may grant licenses to charitable
organizations that are branches, lodges, or chapters of national
charitable organizations.
(D) The attorney general shall send notice in writing to the
prosecuting attorney and sheriff of the county in which the
organization will conduct bingo, instant bingo at a bingo session,
or instant bingo other than at a bingo session, as stated in its
application for a license or amended license, and to any other law
enforcement agency in that county that so requests, of all of the
following:
(1) The issuance of the license;
(2) The issuance of the amended license;
(3) The rejection of an application for and refusal to grant
a license;
(4) The revocation of any license previously issued;
(5) The suspension of any license previously issued.
(E) A license issued by the attorney general shall set forth
the information contained on the application of the charitable
organization that the attorney general determines is relevant,
including, but not limited to, the location at which the
organization will conduct bingo, instant bingo at a bingo session,
or instant bingo other than at a bingo session and the days of the
week and the times on each of those days when bingo will be
conducted. If the attorney general refuses to grant or revokes or
suspends a license, the attorney general shall notify the
applicant in writing and specifically identify the reason for the
refusal, revocation, or suspension in narrative form and, if
applicable, by identifying the section of the Revised Code
violated. The failure of the attorney general to give the written
notice of the reasons for the refusal, revocation, or suspension
or a mistake in the written notice does not affect the validity of
the attorney general's refusal to grant, or the revocation or
suspension of, a license. If the attorney general fails to give
the written notice or if there is a mistake in the written notice,
the applicant may bring an action to compel the attorney general
to comply with this division or to correct the mistake, but the
attorney general's order refusing to grant, or revoking or
suspending, a license shall not be enjoined during the pendency of
the action.
(F) A charitable organization that has been issued a license
pursuant to division (B) of this section but that cannot conduct
bingo or instant bingo at the location, or on the day of the week
or at the time, specified on the license due to circumstances that
make it impractical to do so may apply in writing, together with
an application fee of two hundred fifty dollars, to the attorney
general, at least thirty days prior to a change in location, day
of the week, or time, and request an amended license. The
application shall describe the causes making it impractical for
the organization to conduct bingo or instant bingo in conformity
with its license and shall indicate the location, days of the
week, and times on each of those days when it desires to conduct
bingo or instant bingo. Except as otherwise provided in this
division, the attorney general shall issue the amended license in
accordance with division (E) of this section, and the organization
shall surrender its original license to the attorney general. The
attorney general may refuse to grant an amended license according
to the terms of division (B) of this section.
(G) The attorney general, by rule adopted pursuant to section
111.15 of the Revised Code, shall establish a schedule of reduced
license fees for charitable organizations that desire to conduct
bingo or instant bingo during fewer than twenty-six weeks in any
calendar year.
(H) The attorney general, by rule adopted pursuant to section
111.15 of the Revised Code, shall establish license fees for the
conduct of bingo, instant bingo at a bingo session, or instant
bingo other than at a bingo session for charitable organizations
that prior to the effective date of this amendment July 1, 2003,
have not been licensed to conduct bingo, instant bingo at a bingo
session, or instant bingo other than at a bingo session under this
chapter.
(I) The attorney general may enter into a written contract
with any other state agency to delegate to that state agency the
powers prescribed to the attorney general under Chapter 2915. of
the Revised Code.
(J) The attorney general, by rule adopted pursuant to section
111.15 of the Revised Code, may adopt rules to determine the
requirements for a charitable organization that is exempt from
federal income taxation under subsection 501(a) and described in
subsection 501(c)(3) of the Internal Revenue Code to be in good
standing in the state.
Sec. 2915.09. (A) No charitable organization that conducts
bingo shall fail to do any of the following:
(1) Own all of the equipment used to conduct bingo or lease
that equipment from a charitable organization that is licensed to
conduct bingo, or from the landlord of a premises where bingo is
conducted, for a rental rate that is not more than is customary
and reasonable for that equipment;
(2) Except as otherwise provided in division (A)(3) of this
section, use all of the gross receipts from bingo for paying
prizes, for reimbursement of expenses for or for renting premises
in which to conduct a bingo session, for reimbursement of expenses
for or for purchasing or leasing bingo supplies used in conducting
bingo, for reimbursement of expenses for or for hiring security
personnel, for reimbursement of expenses for or for advertising
bingo, or for reimbursement of other expenses or for other
expenses listed in division (LL)(GG) of section 2915.01 of the
Revised Code, provided that the amount of the receipts so spent is
not more than is customary and reasonable for a similar purchase,
lease, hiring, advertising, or expense. If the building in which
bingo is conducted is owned by the charitable organization
conducting bingo and the bingo conducted includes a form of bingo
described in division (S)(O)(1) of section 2915.01 of the Revised
Code, the charitable organization may deduct from the total amount
of the gross receipts from each session a sum equal to the lesser
of six hundred dollars or forty-five per cent of the gross
receipts from the bingo described in that division as
consideration for the use of the premises.
(3) Use, or give, donate, or otherwise transfer, all of the
net profit derived from bingo, other than instant bingo, for a
charitable purpose listed in its license application and described
in division (Z)(V) of section 2915.01 of the Revised Code, or
distribute all of the net profit from the proceeds of the sale of
instant bingo as stated in its license application and in
accordance with section 2915.101 of the Revised Code.
(B) No charitable organization that conducts a bingo game
described in division (S)(O)(1) of section 2915.01 of the Revised
Code shall fail to do any of the following:
(1) Conduct the bingo game on premises that are owned by the
charitable organization, on premises that are owned by another
charitable organization and leased from that charitable
organization for a rental rate not in excess of the lesser of six
hundred dollars per bingo session or forty-five per cent of the
gross receipts of the bingo session, on premises that are leased
from a person other than a charitable organization for a rental
rate that is not more than is customary and reasonable for
premises that are similar in location, size, and quality but not
in excess of four hundred fifty dollars per bingo session, or on
premises that are owned by a person other than a charitable
organization, that are leased from that person by another
charitable organization, and that are subleased from that other
charitable organization by the charitable organization for a
rental rate not in excess of four hundred fifty dollars per bingo
session. No charitable organization is required to pay property
taxes or assessments on premises that the charitable organization
leases from another person to conduct bingo sessions. If the
charitable organization leases from a person other than a
charitable organization the premises on which it conducts bingo
sessions, the lessor of the premises shall provide the premises to
the organization and shall not provide the organization with bingo
game operators, security personnel, concessions or concession
operators, bingo supplies, or any other type of service. A
charitable organization shall not lease or sublease premises that
it owns or leases to more than one three other charitable
organization organizations per calendar week for the purpose of
conducting bingo sessions on the premises. A person that is not a
charitable organization shall not lease premises that it owns,
leases, or otherwise is empowered to lease to more than three
charitable organizations per calendar week for conducting bingo
sessions on the premises. In no case shall more than nine bingo
sessions be conducted on any premises in any calendar week.
(2) Display its license conspicuously at the premises where
the bingo session is conducted;
(3) Conduct the bingo session in accordance with the
definition of bingo set forth in division (S)(O)(1) of section
2915.01 of the Revised Code.
(C) No charitable organization that conducts a bingo game
described in division (S)(O)(1) of section 2915.01 of the Revised
Code shall do any of the following:
(1) Pay any compensation to a bingo game operator for
operating a bingo session that is conducted by the charitable
organization or for preparing, selling, or serving food or
beverages at the site of the bingo session, permit any auxiliary
unit or society of the charitable organization to pay compensation
to any bingo game operator who prepares, sells, or serves food or
beverages at a bingo session conducted by the charitable
organization, or permit any auxiliary unit or society of the
charitable organization to prepare, sell, or serve food or
beverages at a bingo session conducted by the charitable
organization, if the auxiliary unit or society pays any
compensation to the bingo game operators who prepare, sell, or
serve the food or beverages;
(2) Pay consulting fees to any person for any services
performed in relation to the bingo session;
(3) Pay concession fees to any person who provides
refreshments to the participants in the bingo session;
(4) Except as otherwise provided in division (C)(4) of this
section, conduct more than three bingo sessions in any seven-day
period. A volunteer firefighter's organization or a volunteer
rescue service organization that conducts not more than five bingo
sessions in a calendar year may conduct more than three bingo
sessions in a seven-day period after notifying the attorney
general when it will conduct the sessions.
(5) Pay out more than six thousand dollars in prizes for
bingo games described in division (S)(O)(1) of section 2915.01 of
the Revised Code during any bingo session that is conducted by the
charitable organization. "Prizes" does not include awards from the
conduct of instant bingo.
(6) Conduct a bingo session at any time during the ten-hour
eight-hour period between midnight two a.m. and ten a.m., at any
time during, or within ten hours of, a bingo game conducted for
amusement only pursuant to section 2915.12 of the Revised Code, at
any premises not specified on its license, or on any day of the
week or during any time period not specified on its license.
Division (A)(6) of this section does not prohibit the sale of
instant bingo tickets beginning at nine a.m. for a bingo session
that begins at ten a.m. If circumstances make it impractical for
the charitable organization to conduct a bingo session at the
premises, or on the day of the week or at the time, specified on
its license, or if a charitable organization wants to conduct
bingo sessions on a day of the week or at a time other than the
day or time specified on its license, the charitable organization
may apply in writing to the attorney general for an amended
license pursuant to division (F) of section 2915.08 of the Revised
Code. A charitable organization may apply twice in each calendar
year for an amended license to conduct bingo sessions on a day of
the week or at a time other than the day or time specified on its
license. If the amended license is granted, the organization may
conduct bingo sessions at the premises, on the day of the week,
and at the time specified on its amended license.
(7) Permit any person whom the charitable organization knows,
or should have known, is under the age of eighteen to work as a
bingo game operator;
(8) Permit any person whom the charitable organization knows,
or should have known, has been convicted of a felony or gambling
offense in any jurisdiction to be a bingo game operator;
(9) Permit the lessor of the premises on which the bingo
session is conducted, if the lessor is not a charitable
organization, to provide the charitable organization with bingo
game operators, security personnel, concessions, bingo supplies,
or any other type of service;
(10) Purchase or lease bingo supplies from any person except
a distributor issued a license under section 2915.081 of the
Revised Code;
(11)(a) Use or permit the use of electronic bingo aids except
under the following circumstances:
(i) For any single participant, not more than ninety bingo
faces can be played using an electronic bingo aid or aids.
(ii) The charitable organization shall provide a participant
using an electronic bingo aid with corresponding paper bingo cards
or sheets.
(iii) The total price of bingo faces played with an
electronic bingo aid shall be equal to the total price of the same
number of bingo faces played with a paper bingo card or sheet sold
at the same bingo session but without an electronic bingo aid.
(iv) An electronic bingo aid cannot be part of an electronic
network other than a network that includes only bingo aids and
devices that are located on the premises at which the bingo is
being conducted or be interactive with any device not located on
the premises at which the bingo is being conducted.
(v) An electronic bingo aid cannot be used to participate in
bingo that is conducted at a location other than the location at
which the bingo session is conducted and at which the electronic
bingo aid is used.
(vi) An electronic bingo aid cannot be used to provide for
the input of numbers and letters announced by a bingo caller other
than the bingo caller who physically calls the numbers and letters
at the location at which the bingo session is conducted and at
which the electronic bingo aid is used.
(b) The attorney general may adopt rules in accordance with
Chapter 119. of the Revised Code that govern the use of electronic
bingo aids. The rules may include a requirement that an electronic
bingo aid be capable of being audited by the attorney general to
verify the number of bingo cards or sheets played during each
bingo session.
(12) Permit any person the charitable organization knows, or
should have known, to be under eighteen years of age to play bingo
described in division (S)(O)(1) of section 2915.01 of the Revised
Code.
(D)(1) Except as otherwise provided in division (D)(3) of
this section, no charitable organization shall provide to a bingo
game operator, and no bingo game operator shall receive or accept,
any commission, wage, salary, reward, tip, donation, gratuity, or
other form of compensation, directly or indirectly, regardless of
the source, for conducting bingo or providing other work or labor
at the site of bingo during a bingo session.
(2) Except as otherwise provided in division (D)(3) of this
section, no charitable organization shall provide to a bingo game
operator any commission, wage, salary, reward, tip, donation,
gratuity, or other form of compensation, directly or indirectly,
regardless of the source, for conducting instant bingo other than
at a bingo session at the site of instant bingo other than at a
bingo session.
(3) Nothing in division (D) of this section prohibits an
employee of a fraternal organization, veteran's organization, or
sporting organization from selling instant bingo tickets or cards
to the organization's members or invited guests, as long as no
portion of the employee's compensation is paid from any receipts
of bingo.
(E) Notwithstanding division (B)(1) of this section, a
charitable organization that, prior to December 6, 1977, has
entered into written agreements for the lease of premises it owns
to another charitable organization or other charitable
organizations for the conducting of bingo sessions so that more
than two bingo sessions are conducted per calendar week on the
premises, and a person that is not a charitable organization and
that, prior to December 6, 1977, has entered into written
agreements for the lease of premises it owns to charitable
organizations for the conducting of more than two bingo sessions
per calendar week on the premises, may continue to lease the
premises to those charitable organizations, provided that no more
than four sessions are conducted per calendar week, that the
lessor organization or person has notified the attorney general in
writing of the organizations that will conduct the sessions and
the days of the week and the times of the day on which the
sessions will be conducted, that the initial lease entered into
with each organization that will conduct the sessions was filed
with the attorney general prior to December 6, 1977, and that each
organization that will conduct the sessions was issued a license
to conduct bingo games by the attorney general prior to December
6, 1977.
(F) This section does not prohibit a bingo licensed
charitable organization or a game operator from giving any person
an instant bingo ticket as a prize.
(G) Whoever violates division (A)(2) of this section is
guilty of illegally conducting a bingo game, a felony of the
fourth degree. Except as otherwise provided in this division,
whoever violates division (A)(1) or (3), (B)(1), (2), or (3),
(C)(1) to (12), or (D) of this section is guilty of a minor
misdemeanor. If the offender previously has been convicted of a
violation of division (A)(1) or (3), (B)(1), (2), or (3), (C)(1)
to (11), or (D) of this section, a violation of division (A)(1) or
(3), (B)(1), (2), or (3), (C), or (D) of this section is a
misdemeanor of the first degree. Whoever violates division (C)(12)
of this section is guilty of a misdemeanor of the first degree, if
the offender previously has been convicted of a violation of
division (C)(12) of this section, a felony of the fourth degree.
Sec. 2915.091. (A) No charitable organization that conducts
instant bingo shall do any of the following:
(1) Fail to comply with the requirements of divisions (A)(1),
(2), and (3) of section 2915.09 of the Revised Code;
(2) Conduct instant bingo unless either of the following
applies:
(a) That organization is, and has received from the internal
revenue service a determination letter that is currently in effect
stating that the organization is, exempt from federal income
taxation under subsection 501(a), is described in subsection
501(c)(3) of the Internal Revenue Code, is a charitable
organization as defined in section 2915.01 of the Revised Code, is
in good standing in the state pursuant to section 2915.08 of the
Revised Code, and is in compliance with Chapter 1716. of the
Revised Code;
(b) That organization is, and has received from the internal
revenue service a determination letter that is currently in effect
stating that the organization is, exempt from federal income
taxation under subsection 501(a), is described in subsection
501(c)(7), 501(c)(8), 501(c)(10), or 501(c)(19) or is a veteran's
organization described in subsection 501(c)(4) of the Internal
Revenue Code, and conducts instant bingo under section 2915.13 of
the Revised Code.
(3) Conduct instant bingo on any day, at any time, or at any
premises not specified on the organization's license issued
pursuant to section 2915.08 of the Revised Code;
(4) Permit any person whom the organization knows or should
have known has been convicted of a felony or gambling offense in
any jurisdiction to be a bingo game operator in the conduct of
instant bingo;
(5) Purchase or lease supplies used to conduct instant bingo
or punch board games from any person except a distributor licensed
under section 2915.081 of the Revised Code;
(6) Sell or provide any instant bingo ticket or card for a
price different from the price printed on it by the manufacturer
on either the instant bingo ticket or card or on the game flare;
(7) Sell an instant bingo ticket or card to a person under
eighteen years of age;
(8) Fail to keep unsold instant bingo tickets or cards for
less than three years;
(9) Pay any compensation to a bingo game operator for
conducting instant bingo that is conducted by the organization or
for preparing, selling, or serving food or beverages at the site
of the instant bingo game, permit any auxiliary unit or society of
the organization to pay compensation to any bingo game operator
who prepares, sells, or serves food or beverages at an instant
bingo game conducted by the organization, or permit any auxiliary
unit or society of the organization to prepare, sell, or serve
food or beverages at an instant bingo game conducted by the
organization, if the auxiliary unit or society pays any
compensation to the bingo game operators who prepare, sell, or
serve the food or beverages;
(10) Pay fees to any person for any services performed in
relation to an instant bingo game, except as provided in division
(D) of section 2915.093 of the Revised Code;
(11) Pay fees to any person who provides refreshments to the
participants in an instant bingo game;
(12)(a) Allow instant bingo tickets or cards to be sold to
bingo game operators at a premises at which the organization sells
instant bingo tickets or cards or to be sold to employees of a D
permit holder who are working at a premises at which instant bingo
tickets or cards are sold;
(b) Division (A)(12)(a) of this section does not prohibit a
licensed charitable organization or a bingo game operator from
giving any person an instant bingo ticket as a prize in place of a
cash prize won by a participant in an instant bingo game. In no
case shall an instant bingo ticket or card be sold or provided for
a price different from the price printed on it by the manufacturer
on either the instant bingo ticket or card or on the game flare.
(13) Fail to display its bingo license, and the serial
numbers of the deal of instant bingo tickets or cards to be sold,
conspicuously at each premises at which it sells instant bingo
tickets or cards;
(14) Possess a deal of instant bingo tickets or cards that
was not purchased from a distributor licensed under section
2915.081 of the Revised Code as reflected on an invoice issued by
the distributor that contains all of the information required by
division (E) of section 2915.10 of the Revised Code;
(15) Fail, once it opens a deal of instant bingo tickets or
cards, to continue to sell the tickets or cards in that deal until
the tickets or cards with the top two highest tiers of prizes in
that deal are sold;
(16) Possess bingo supplies that were not obtained in
accordance with sections 2915.01 to 2915.13 of the Revised Code.
(B)(1) A charitable organization may conduct instant bingo
other than at a bingo session at not more than five separate
locations. A charitable organization that is exempt from federal
taxation under subsection 501(a) and described in subsection
501(c)(3) of the Internal Revenue Code and that is created by a
veteran's organization or a fraternal organization is not limited
in the number of separate locations the charitable organization
may conduct instant bingo other than at a bingo session.
(2) A charitable organization may purchase, lease, or use
instant bingo ticket dispensers to sell instant bingo tickets or
cards.
(C) The attorney general may adopt rules in accordance with
Chapter 119. of the Revised Code that govern the conduct of
instant bingo by charitable organizations. Before those rules are
adopted, the attorney general shall reference the recommended
standards for opacity, randomization, minimum information, winner
protection, color, and cutting for instant bingo tickets or cards,
seal cards, and punch boards established by the North American
gaming regulators association.
(D) Whoever violates division (A) of this section or a rule
adopted under division (C) of this section is guilty of illegal
instant bingo conduct. Except as otherwise provided in this
division, illegal instant bingo conduct is a misdemeanor of the
first degree. If the offender previously has been convicted of a
violation of division (A) of this section or of such a rule,
illegal instant bingo conduct is a felony of the fifth degree.
Sec. 2915.092. (A)(1) Subject to division (A)(2) of this
section, a charitable organization, a public school, a chartered
nonpublic school, a community school, or a veteran's organization,
fraternal organization, or sporting organization that is exempt
from federal income taxation under subsection 501(a) and is
described in subsection 501(c)(3), 501(c)(4), 501(c)(7),
501(c)(8), 501(c)(10), or 501(c)(19) of the Internal Revenue Code
may conduct a raffle to raise money for the organization or school
and does not need a license to conduct bingo in order to conduct a
raffle drawing that is not for profit.
(2) If a charitable organization that is described in
division (A)(1) of this section, but that is not also described in
subsection 501(c)(3) of the Internal Revenue Code, conducts a
raffle, the charitable organization shall distribute at least
fifty per cent of the net profit from the raffle to a charitable
purpose described in division (Z)(V) of section 2915.01 of the
Revised Code or to a department or agency of the federal
government, the state, or any political subdivision.
(B) Except as provided in division (A) or (B) of this
section, no person shall conduct a raffle drawing that is for
profit or a raffle drawing that is not for profit.
(C) Whoever violates division (B) of this section is guilty
of illegal conduct of a raffle. Except as otherwise provided in
this division, illegal conduct of a raffle is a misdemeanor of the
first degree. If the offender previously has been convicted of a
violation of division (B) of this section, illegal conduct of a
raffle is a felony of the fifth degree.
Sec. 2915.093. (A) As used in this section, "retail income
from all commercial activity" means the income that a person
receives from the provision of goods, services, or activities that
are provided at the location where instant bingo other than at a
bingo session is conducted, including the sale of instant bingo
tickets. A religious organization that is exempt from federal
income taxation under subsection 501(a) and described in
subsection 501(c)(3) of the Internal Revenue Code, at not more
than one location at which it conducts its charitable programs,
may include donations from its members and guests as retail
income.
(B) A charitable instant bingo organization may conduct
instant bingo other than at a bingo session at not more than five
separate locations.
(C)(1) If a charitable instant bingo organization conducts
instant bingo other than at a bingo session, the charitable
instant bingo organization shall enter into a written contract
with the owner or lessor of the location at which the instant
bingo is conducted to allow the owner or lessor to assist in the
conduct of instant bingo other than at a bingo session, identify
each location where the instant bingo other than at a bingo
session is being conducted, and identify the owner or lessor of
each location.
(2) A charitable instant bingo organization that conducts
instant bingo other than at a bingo session is not required to
enter into a written contract with the owner or lessor of the
location at which the instant bingo is conducted, provided that
the owner or lessor is not assisting in the conduct of the instant
bingo other than at a bingo session and provided that the conduct
of the instant bingo other than at a bingo session at that
location is not more than five days per calendar year and not more
than ten hours per day.
(D)(C) Except as provided in division (G)(F) of this section,
no charitable instant bingo organization shall conduct instant
bingo other than at a bingo session at a location where the
primary source of retail income from all commercial activity at
that location is the sale of instant bingo tickets.
(E)(D) The owner or lessor of a location that enters into a
contract pursuant to division (C)(B) of this section shall pay the
full gross profit, minus the expenses incurred by the owner or
lessor of a location that can be attributed to conducting instant
bingo at that location, to the charitable instant bingo
organization, in return for the deal of instant bingo tickets. The
owner or lessor may retain the money that the owner or lessor
receives for selling the instant bingo tickets, provided, however,
that after the deal has been sold, the owner or lessor shall pay
to the charitable instant bingo organization the value of any
unredeemed instant bingo prizes remaining in the deal of instant
bingo tickets.
As used in this division, "full gross profit" means the
amount by which the total receipts of all instant bingo tickets,
if the deal had been sold in full, exceeds the amount that would
be paid out if all prizes were redeemed.
As used in this division, "expenses" means reasonable amounts
actually expended, and accounted for on a monthly basis, in total
not to exceed twenty per cent of the full gross profit of the
deal, for all of the following:
(1) Audits and accounting services;
(4) Advertising instant bingo;
(6) Wages for employees of the owner or lessor that are
attributable to managing or assisting with the conduct of instant
bingo;
(7) Expenses that can be attributed to maintaining the owner
or lessor's premises at which instant bingo is conducted,
including rent or other costs of facility ownership, property or
casualty insurance premiums, and utility costs.
The deduction of expenses under this section shall not make
any owner or lessor a professional solicitor as defined in
division (J) of section 1716.01 of the Revised Code.
(F)(E) A charitable instant bingo organization shall provide
the attorney general with all of the following information:
(1) That the charitable instant bingo organization has
terminated a contract entered into pursuant to division (C)(B) of
this section with an owner or lessor of a location;
(2) That the charitable instant bingo organization has
entered into a written contract pursuant to division (C)(B) of
this section with a new owner or lessor of a location;
(3) That the charitable instant bingo organization is aware
of conduct by the owner or lessor of a location at which instant
bingo is conducted that is in violation of this chapter.
(G)(F) Division (D)(C) of this section does not apply to a
volunteer firefighter's organization that is exempt from federal
income taxation under subsection 501(a) and described in
subsection 501(c)(3) of the Internal Revenue Code, that conducts
instant bingo other than at a bingo session on the premises where
the organization conducts firefighter training, that has conducted
instant bingo continuously for at least five years prior to July
1, 2003, and that, during each of those five years, had gross
receipts of at least one million five hundred thousand dollars.
Sec. 2915.094. (A) No owner or lessor of a location shall
assist a charitable instant bingo organization in the conduct of
instant bingo other than at a bingo session at that location
unless the owner or lessor has entered into a written contract, as
described in division (C) of section 2915.093 of the Revised Code,
with the charitable instant bingo organization to assist in the
conduct of instant bingo other than at a bingo session.
(B) The location of the lessor or owner shall be designated
as a location where the charitable instant bingo organization
conducts instant bingo other than at a bingo session.
(C) No owner or lessor of a location that enters into a
written contract as prescribed in division (A) of this section
shall violate any provision of Chapter 2915. of the Revised Code,
or permit, aid, or abet any other person in violating any
provision of Chapter 2915. of the Revised Code.
(D) No owner or lessor of a location that enters into a
written contract as prescribed in division (A) of this section
shall violate the terms of the contract.
(E)(1) Whoever violates division (C) or (D) of this section
is guilty of illegal instant bingo conduct. Except as otherwise
provided in this division, illegal instant bingo conduct is a
misdemeanor of the first degree. If the offender previously has
been convicted of a violation of division (C) or (D) of this
section, illegal instant bingo conduct is a felony of the fifth
degree.
(2) If an owner or lessor of a location knowingly,
intentionally, or recklessly violates division (C) or (D) of this
section, any license that the owner or lessor holds for the retail
sale of any goods on the owner's or lessor's premises that is
issued by the state or a political subdivision is subject to
suspension, revocation, or payment of a monetary penalty at the
request of the attorney general.
Sec. 2915.10. (A) No charitable organization that conducts
bingo or a game of chance pursuant to division (D) of section
2915.02 of the Revised Code shall fail to maintain the following
records for at least three years from the date on which the bingo
or game of chance is conducted:
(1) An itemized list of the gross receipts of each bingo
session, each game of instant bingo by serial number, each raffle,
each punch board game, and each game of chance, and an itemized
list of the gross profits of each game of instant bingo by serial
number;
(2) An itemized list of all expenses, other than prizes, that
are incurred in conducting bingo or instant bingo, the name of
each person to whom the expenses are paid, and a receipt for all
of the expenses;
(3) A list of all prizes awarded during each bingo session,
each raffle, each punch board game, and each game of chance
conducted by the charitable organization, the total prizes awarded
from each game of instant bingo by serial number, and the name,
address, and social security number of all persons who are winners
of prizes of six hundred dollars or more in value;
(4) An itemized list of the recipients of the net profit of
the bingo or game of chance, including the name and address of
each recipient to whom the money is distributed, and if the
organization uses the net profit of bingo, or the money or assets
received from a game of chance, for any charitable or other
purpose set forth in division (Z)(V) of section 2915.01, division
(D) of section 2915.02, or section 2915.101 of the Revised Code, a
list of each purpose and an itemized list of each expenditure for
each purpose;
(5) The number of persons who participate in any bingo
session or game of chance that is conducted by the charitable
organization;
(6) A list of receipts from the sale of food and beverages by
the charitable organization or one of its auxiliary units or
societies, if the receipts were excluded from gross receipts under
division (X)(T) of section 2915.01 of the Revised Code;
(7) An itemized list of all expenses incurred at each bingo
session, each raffle, each punch board game, or each game of
instant bingo conducted by the charitable organization in the sale
of food and beverages by the charitable organization or by an
auxiliary unit or society of the charitable organization, the name
of each person to whom the expenses are paid, and a receipt for
all of the expenses.
(B) A charitable organization shall keep the records that it
is required to maintain pursuant to division (A) of this section
at its principal place of business in this state or at its
headquarters in this state and shall notify the attorney general
of the location at which those records are kept.
(C) The gross profit from each bingo session or game
described in division
(S)(O)(1) or (2) of section 2915.01 of the
Revised Code shall be deposited into a checking account devoted
exclusively to the bingo session or game. Payments for allowable
expenses incurred in conducting the bingo session or game and
payments to recipients of some or all of the net profit of the
bingo session or game shall be made only by checks drawn on the
bingo session or game account.
(D) Each charitable organization shall conduct and record an
inventory of all of its bingo supplies as of the first day of
November of each year.
(E) The attorney general may adopt rules in accordance with
Chapter 119. of the Revised Code that establish standards of
accounting, record keeping, and reporting to ensure that gross
receipts from bingo or games of chance are properly accounted for.
(F) A distributor shall maintain, for a period of three years
after the date of its sale or other provision, a record of each
instance of its selling or otherwise providing to another person
bingo supplies for use in this state. The record shall include all
of the following for each instance:
(1) The name of the manufacturer from which the distributor
purchased the bingo supplies and the date of the purchase;
(2) The name and address of the charitable organization or
other distributor to which the bingo supplies were sold or
otherwise provided;
(3) A description that clearly identifies the bingo supplies;
(4) Invoices that include the nonrepeating serial numbers of
all paper bingo cards and sheets and all instant bingo deals sold
or otherwise provided to each charitable organization.
(G) A manufacturer shall maintain, for a period of three
years after the date of its sale or other provision, a record of
each instance of its selling or otherwise providing bingo supplies
for use in this state. The record shall include all of the
following for each instance:
(1) The name and address of the distributor to whom the bingo
supplies were sold or otherwise provided;
(2) A description that clearly identifies the bingo supplies,
including serial numbers;
(3) Invoices that include the nonrepeating serial numbers of
all paper bingo cards and sheets and all instant bingo deals sold
or otherwise provided to each distributor.
(H) The attorney general or any law enforcement agency may do
all of the following:
(1) Investigate any charitable organization or any officer,
agent, trustee, member, or employee of the organization;
(2) Examine the accounts and records of the organization;
(3) Conduct inspections, audits, and observations of bingo or
games of chance;
(4) Conduct inspections of the premises where bingo or games
of chance are conducted;
(5) Take any other necessary and reasonable action to
determine if a violation of any provision of sections 2915.01 to
2915.13 of the Revised Code has occurred and to determine whether
section 2915.11 of the Revised Code has been complied with.
If any law enforcement agency has reasonable grounds to
believe that a charitable organization or an officer, agent,
trustee, member, or employee of the organization has violated any
provision of this chapter, the law enforcement agency may proceed
by action in the proper court to enforce this chapter, provided
that the law enforcement agency shall give written notice to the
attorney general when commencing an action as described in this
division.
(I) No person shall destroy, alter, conceal, withhold, or
deny access to any accounts or records of a charitable
organization that have been requested for examination, or
obstruct, impede, or interfere with any inspection, audit, or
observation of bingo or a game of chance or premises where bingo
or a game of chance is conducted, or refuse to comply with any
reasonable request of, or obstruct, impede, or interfere with any
other reasonable action undertaken by, the attorney general or a
law enforcement agency pursuant to division (H) of this section.
(J) Whoever violates division (A) or (I) of this section is
guilty of a misdemeanor of the first degree.
Sec. 2915.101. Except as otherwise provided by law, a
charitable organization that conducts instant bingo shall
distribute the net profit from the proceeds of the sale of instant
bingo as follows:
(A)(1) If a veteran's organization, a fraternal organization,
or a sporting organization conducted the instant bingo, the
organization shall distribute the net profit from the proceeds of
the sale of instant bingo, as follows:
(a) For the first two hundred fifty thousand dollars, or a
greater amount prescribed by the attorney general to adjust for
changes in prices as measured by the consumer price index as
defined in section 325.18 of the Revised Code and other factors
affecting the organization's expenses, as defined in division
(LL)(GG) of section 2915.01 of the Revised Code, or less of net
profit from the proceeds of the sale of instant bingo generated in
a calendar year:
(i) At least twenty-five per cent shall be distributed to an
organization described in division (Z)(V)(1) of section 2915.01 of
the Revised Code or to a department or agency of the federal
government, the state, or any political subdivision.
(ii) Not more than seventy-five per cent may be deducted and
retained by the organization for reimbursement of or for the
organization's expenses, as defined in division (LL)(GG) of
section 2915.01 of the Revised Code, in conducting the instant
bingo game.
(b) For any net profit from the proceeds of the sale of
instant bingo of more than two hundred fifty thousand dollars or
an adjusted amount generated in a calendar year:
(i) A minimum of fifty per cent shall be distributed to an
organization described in division (Z)(V)(1) of section 2915.01 of
the Revised Code or to a department or agency of the federal
government, the state, or any political subdivision.
(ii) Five per cent may be distributed for the organization's
own charitable purposes or to a community action agency.
(iii) Forty-five per cent may be deducted and retained by the
organization for reimbursement of or for the organization's
expenses, as defined in division (LL)(GG) of section 2915.01 of
the Revised Code, in conducting the instant bingo game.
(2) If a veteran's organization, a fraternal organization, or
a sporting organization does not distribute the full percentages
specified in divisions (A)(1)(a) and (b) of this section for the
purposes specified in those divisions, the organization shall
distribute the balance of the net profit from the proceeds of the
sale of instant bingo not distributed or retained for those
purposes to an organization described in division (Z)(V)(1) of
section 2915.01 of the Revised Code.
(B) If a charitable organization other than a veteran's
organization, a fraternal organization, or a sporting organization
conducted the instant bingo, the organization shall distribute one
hundred per cent of the net profit from the proceeds of the sale
of instant bingo to an organization described in division
(Z)(V)(1) of section 2915.01 of the Revised Code or to a
department or agency of the federal government, the state, or any
political subdivision.
(C) Nothing in this section prohibits a veteran's
organization, a fraternal organization, or a sporting organization
from distributing any net profit from the proceeds of the sale of
instant bingo to an organization that is described in subsection
501(c)(3) of the Internal Revenue Code when the organization that
is described in subsection 501(c)(3) of the Internal Revenue Code
is one that makes donations to other organizations and permits
donors to advise or direct such donations so long as the donations
comply with requirements established in or pursuant to subsection
501(c)(3) of the Internal Revenue Code.
Sec. 2915.12. (A) Sections 2915.07 to 2915.11 of the Revised
Code do not apply to bingo games that are conducted for the
purpose of amusement only. A bingo game is conducted for the
purpose of amusement only if it complies with all of the
requirements specified in either division (A)(1) or (2) of this
section:
(1)(a) The participants do not pay any money or any other
thing of value including an admission fee, or any fee for bingo
cards or sheets, objects to cover the spaces, or other devices
used in playing bingo, for the privilege of participating in the
bingo game, or to defray any costs of the game, or pay tips or
make donations during or immediately before or after the bingo
game.
(b) All prizes awarded during the course of the game are
nonmonetary, and in the form of merchandise, goods, or
entitlements to goods or services only, and the total value of all
prizes awarded during the game is less than one hundred dollars.
(c) No commission, wages, salary, reward, tip, donation,
gratuity, or other form of compensation, either directly or
indirectly, and regardless of the source, is paid to any bingo
game operator for work or labor performed at the site of the bingo
game.
(d) The bingo game is not conducted either during or within
ten hours of any of the following:
(i) A bingo session during which a charitable bingo game is
conducted pursuant to sections 2915.07 to 2915.11 of the Revised
Code;
(ii) A scheme or game of chance, or bingo described in
division
(S)(O)(2) of section 2915.01 of the Revised Code.
(e) The number of players participating in the bingo game
does not exceed fifty.
(2)(a) The participants do not pay money or any other thing
of value as an admission fee, and no participant is charged more
than twenty-five cents to purchase a bingo card or sheet, objects
to cover the spaces, or other devices used in playing bingo.
(b) The total amount of money paid by all of the participants
for bingo cards or sheets, objects to cover the spaces, or other
devices used in playing bingo does not exceed one hundred dollars.
(c) All of the money paid for bingo cards or sheets, objects
to cover spaces, or other devices used in playing bingo is used
only to pay winners monetary and nonmonetary prizes and to provide
refreshments.
(d) The total value of all prizes awarded during the game
does not exceed one hundred dollars.
(e) No commission, wages, salary, reward, tip, donation,
gratuity, or other form of compensation, either directly or
indirectly, and regardless of the source, is paid to any bingo
game operator for work or labor performed at the site of the bingo
game.
(f) The bingo game is not conducted during or within ten
hours of either of the following:
(i) A bingo session during which a charitable bingo game is
conducted pursuant to sections 2915.07 to 2915.11 of the Revised
Code;
(ii) A scheme of chance or game of chance, or bingo described
in division (S)(O)(2) of section 2915.01 of the Revised Code.
(g) All of the participants reside at the premises where the
bingo game is conducted.
(h) The bingo games are conducted on different days of the
week and not more than twice in a calendar week.
(B) The attorney general or any local law enforcement agency
may investigate the conduct of a bingo game that purportedly is
conducted for purposes of amusement only if there is reason to
believe that the purported amusement bingo game does not comply
with the requirements of either division (A)(1) or (2) of this
section. A local law enforcement agency may proceed by action in
the proper court to enforce this section if the local law
enforcement agency gives written notice to the attorney general
when commencing the action.
Sec. 2915.18. (A) The owner of a permitted location may
establish a charity card room on the premises of the permitted
location. The owner shall provide necessary game tables, chairs,
surveillance, and other equipment in the charity card room.
(B) A charitable organization may conduct games of chance in
a charity card room for up to one hundred twenty-eight hours
annually. Such hours need not be on consecutive days. More than
one charitable organization may conduct games of chance in a
charity card room simultaneously.
(C)(1) The charitable organization shall pay rent to the
owner of a permitted location in the amount of fifteen per cent of
the revenue made from conducting the games of chance in the
charity card room.
(2) A charitable organization shall pay expenses for
conducting games of chance in a charity card room, including
expenses for the following: dealers, payroll administration,
security, accounting, auditing, shuffle machine rental, insurance,
marketing, advertising, utilities, cleanup, maintenance, and
repair. A charitable organization may pay these expenses from its
share of the revenue made from conducting games of chance in the
charity card room.
(3) Charitable organizations may pool revenue and expenses
when applicable in a charity card room.
(4) One hundred per cent of the net revenue in a charity card
room remaining after payment of expenses and rent shall be paid to
each charitable organization on a pro rata basis, based on
volunteer hours of each charitable organization.
(D) Notwithstanding division (D) of section 2915.02 of the
Revised Code, a charitable organization may compensate dealers,
dealer supervisors, human resource personnel, and other related
personnel for operating games of chance in a charity card room.
Dealers also may accept tips from games of chance players.
(E) For the purposes of division (D)(1)(c) of section 2915.02
of the Revised Code, a charitable organization may conduct games
of chance at a permitted location and conducting those games of
chance in a charity card room is considered a festival if the
charitable organization provides a display booth about the
charitable organization in the charity card room at all times when
it is conducting games of chance.
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) or (G) 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. 2933.51. As used in sections 2933.51 to 2933.66 of the
Revised Code:
(A) "Wire communication" means an aural transfer that is made
in whole or in part through the use of facilities for the
transmission of communications by the aid of wires or similar
methods of connecting the point of origin of the communication and
the point of reception of the communication, including the use of
a method of connecting the point of origin and the point of
reception of the communication in a switching station, if the
facilities are furnished or operated by a person engaged in
providing or operating the facilities for the transmission of
communications. "Wire communication" includes an electronic
storage of a wire communication.
(B) "Oral communication" means an oral communication uttered
by a person exhibiting an expectation that the communication is
not subject to interception under circumstances justifying that
expectation. "Oral communication" does not include an electronic
communication.
(C) "Intercept" means the aural or other acquisition of the
contents of any wire, oral, or electronic communication through
the use of an interception device.
(D) "Interception device" means an electronic, mechanical, or
other device or apparatus that can be used to intercept a wire,
oral, or electronic communication. "Interception device" does not
mean any of the following:
(1) A telephone or telegraph instrument, equipment, or
facility, or any of its components, if the instrument, equipment,
facility, or component is any of the following:
(a) Furnished to the subscriber or user by a provider of wire
or electronic communication service in the ordinary course of its
business and being used by the subscriber or user in the ordinary
course of its business;
(b) Furnished by a subscriber or user for connection to the
facilities of a provider of wire or electronic communication
service and used in the ordinary course of that subscriber's or
user's business;
(c) Being used by a provider of wire or electronic
communication service in the ordinary course of its business or by
an investigative or law enforcement officer in the ordinary course
of the officer's duties that do not involve the interception of
wire, oral, or electronic communications.
(2) A hearing aid or similar device being used to correct
subnormal hearing to not better than normal.
(E) "Investigative officer" means any of the following:
(1) An officer of this state or a political subdivision of
this state, who is empowered by law to conduct investigations or
to make arrests for a designated offense;
(2) A person described in divisions (A)(11)(a) and (b) of
section 2901.01 of the Revised Code;
(3) An attorney authorized by law to prosecute or participate
in the prosecution of a designated offense;
(4) A secret service officer appointed pursuant to section
309.07 of the Revised Code;
(5) An officer of the United States, a state, or a political
subdivision of a state who is authorized to conduct investigations
pursuant to the "Electronic Communications Privacy Act of 1986,"
100 Stat. 1848-1857, 18 U.S.C. 2510-2521 (1986), as amended.
(F) "Interception warrant" means a court order that
authorizes the interception of wire, oral, or electronic
communications and that is issued pursuant to sections 2933.53 to
2933.56 of the Revised Code.
(G) "Contents," when used with respect to a wire, oral, or
electronic communication, includes any information concerning the
substance, purport, or meaning of the communication.
(H) "Communications common carrier" means a person who is
engaged as a common carrier for hire in intrastate, interstate, or
foreign communications by wire, radio, or radio transmission of
energy. "Communications common carrier" does not include, to the
extent that the person is engaged in radio broadcasting, a person
engaged in radio broadcasting.
(I) "Designated offense" means any of the following:
(1) A felony violation of section 1315.53, 1315.55, 2903.01,
2903.02, 2903.11, 2905.01, 2905.02, 2905.11, 2905.22, 2905.32,
2907.02, 2907.21, 2907.22, 2909.02, 2909.03, 2909.04, 2909.22,
2909.23, 2909.24, 2909.26, 2909.27, 2909.28, 2909.29, 2911.01,
2911.02, 2911.11, 2911.12, 2913.02, 2913.04, 2913.42, 2913.51,
2915.02, 2915.03, 2917.01, 2917.02, 2921.02, 2921.03, 2921.04,
2921.32, 2921.34, 2923.20, 2923.32, 2925.03, 2925.04, 2925.05, or
2925.06 or of division (B) of section 2915.05 or of division (E)
or (G) of section 3772.99 of the Revised Code;
(2) A violation of section 2919.23 of the Revised Code that,
had it occurred prior to July 1, 1996, would have been a violation
of section 2905.04 of the Revised Code as it existed prior to that
date;
(3) A felony violation of section 2925.11 of the Revised Code
that is not a minor drug possession offense, as defined in section
2925.01 of the Revised Code;
(4) Complicity in the commission of a felony violation of a
section listed in division (I)(1), (2), or (3) of this section;
(5) An attempt to commit, or conspiracy in the commission of,
a felony violation of a section listed in division (I)(1), (2), or
(3) of this section, if the attempt or conspiracy is punishable by
a term of imprisonment of more than one year.
(J) "Aggrieved person" means a person who was a party to an
intercepted wire, oral, or electronic communication or a person
against whom the interception of the communication was directed.
(K) "Person" means a person, as defined in section 1.59 of
the Revised Code, or a governmental officer, employee, or entity.
(L) "Special need" means a showing that a licensed physician,
licensed practicing psychologist, attorney, practicing cleric,
journalist, or either spouse is personally engaging in continuing
criminal activity, was engaged in continuing criminal activity
over a period of time, or is committing, has committed, or is
about to commit, a designated offense, or a showing that specified
public facilities are being regularly used by someone who is
personally engaging in continuing criminal activity, was engaged
in continuing criminal activity over a period of time, or is
committing, has committed, or is about to commit, a designated
offense.
(M) "Journalist" means a person engaged in, connected with,
or employed by, any news media, including a newspaper, magazine,
press association, news agency, or wire service, a radio or
television station, or a similar media, for the purpose of
gathering, processing, transmitting, compiling, editing, or
disseminating news for the general public.
(N) "Electronic communication" means a transfer of a sign,
signal, writing, image, sound, datum, or intelligence of any
nature that is transmitted in whole or in part by a wire, radio,
electromagnetic, photoelectronic, or photo-optical system.
"Electronic communication" does not mean any of the following:
(1) A wire or oral communication;
(2) A communication made through a tone-only paging device;
(3) A communication from an electronic or mechanical tracking
device that permits the tracking of the movement of a person or
object.
(O) "User" means a person or entity that uses an electronic
communication service and is duly authorized by the provider of
the service to engage in the use of the electronic communication
service.
(P) "Electronic communications system" means a wire, radio,
electromagnetic, photoelectronic, or photo-optical facility for
the transmission of electronic communications, and a computer
facility or related electronic equipment for the electronic
storage of electronic communications.
(Q) "Electronic communication service" means a service that
provides to users of the service the ability to send or receive
wire or electronic communications.
(R) "Readily accessible to the general public" means, with
respect to a radio communication, that the communication is none
of the following:
(1) Scrambled or encrypted;
(2) Transmitted using a modulation technique, the essential
parameters of which have been withheld from the public with the
intention of preserving the privacy of the communication;
(3) Carried on a subcarrier or other signal subsidiary to a
radio transmission;
(4) Transmitted over a communications system provided by a
communications common carrier, unless the communication is a
tone-only paging system communication;
(5) Transmitted on a frequency allocated under part 25,
subpart D, E, or F of part 74, or part 94 of the Rules of the
Federal Communications Commission, as those provisions existed on
July 1, 1996, unless, in the case of a communication transmitted
on a frequency allocated under part 74 that is not exclusively
allocated to broadcast auxiliary services, the communication is a
two-way voice communication by radio.
(S) "Electronic storage" means a temporary, intermediate
storage of a wire or electronic communication that is incidental
to the electronic transmission of the communication, and a storage
of a wire or electronic communication by an electronic
communication service for the purpose of backup protection of the
communication.
(T) "Aural transfer" means a transfer containing the human
voice at a point between and including the point of origin and the
point of reception.
(U) "Pen register" means a device that records or decodes
electronic impulses that identify the numbers dialed, pulsed, or
otherwise transmitted on telephone lines to which the device is
attached.
(V) "Trap and trace device" means a device that captures the
incoming electronic or other impulses that identify the
originating number of an instrument or device from which a wire
communication or electronic communication was transmitted but that
does not intercept the contents of the wire communication or
electronic communication.
(W) "Judge of a court of common pleas" means a judge of that
court who is elected or appointed as a judge of general
jurisdiction or as a judge who exercises both general jurisdiction
and probate, domestic relations, or juvenile jurisdiction. "Judge
of a court of common pleas" does not mean a judge of that court
who is elected or appointed specifically as a probate, domestic
relations, or juvenile judge.
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. 3769.08. (A) Any person holding a permit to conduct a
horse-racing meeting may provide a place in the race meeting
grounds or enclosure at which the permit holder may conduct and
supervise the pari-mutuel system of wagering by patrons of legal
age on the live racing programs and simulcast racing programs
conducted by the permit holder.
The pari-mutuel method of wagering upon the live racing
programs and simulcast racing programs held at or conducted within
such race track, and at the time of such horse-racing meeting, or
at other times authorized by the state racing commission, shall
not be unlawful. No other place, except that provided and
designated by the permit holder and except as provided in section
3769.26 of the Revised Code, nor any other method or system of
betting or wagering, except the pari-mutuel system, shall be used
or permitted by the permit holder; nor, except as provided in
section 3769.089 or 3769.26 of the Revised Code, shall the
pari-mutuel system of wagering be conducted by the permit holder
on any races except the races at the race track, grounds, or
enclosure for which the person holds a permit. Each permit holder
may retain as a commission an amount not to exceed eighteen per
cent of the total of all moneys wagered.
The pari-mutuel wagering authorized by this section is
subject to sections 3769.25 to 3769.28 of the Revised Code.
(B) At the close of each racing day, each permit holder
authorized to conduct thoroughbred racing, out of the amount
retained on that day by the permit holder, shall pay by check,
draft, or money order to the tax commissioner, as a tax, a sum
equal to the following percentages of the total of all moneys
wagered on live racing programs on that day and shall separately
compute and pay by check, draft, or money order to the tax
commissioner, as a tax, a sum equal to the following percentages
of the total of all money wagered on simulcast racing programs on
that day:
(1) One per cent of the first two hundred thousand dollars
wagered, or any part of that amount;
(2) Two per cent of the next one hundred thousand dollars
wagered, or any part of that amount;
(3) Three per cent of the next one hundred thousand dollars
wagered, or any part of that amount;
(4) Four per cent of all sums over four hundred thousand
dollars wagered.
Except as otherwise provided in section 3769.089 of the
Revised Code, each permit holder authorized to conduct
thoroughbred racing shall use for purse money a sum equal to fifty
per cent of the pari-mutuel revenues retained by the permit holder
as a commission after payment of the state tax. This fifty per
cent payment shall be in addition to the purse distribution from
breakage specified in this section.
Subject to division (M)(L) of this section, from the moneys
paid to the tax commissioner by thoroughbred racing permit
holders, one-half of one per cent of the total of all moneys so
wagered on a racing day shall be paid into the Ohio fairs fund
created by section 3769.082 of the Revised Code, and one and
one-eighth three-eighths per cent of the total of all moneys so
wagered on a racing day shall be paid into the Ohio thoroughbred
race fund created by section 3769.083 of the Revised Code, and
one-quarter of one per cent of the total of all moneys wagered on
a racing day by each permit holder shall be paid into the state
racing commission operating fund created by section 3769.03 of the
Revised Code. The required payment to the state racing commission
operating fund does not apply to county and independent fairs and
agricultural societies to each municipal corporation or township
in which a race track is located. The remaining moneys may be
retained by the permit holder, except as provided in this section
with respect to the odd cents redistribution. Amounts paid into
the nursing home franchise permit fee fund pursuant to this
section and section 3769.26 of the Revised Code shall be used
solely for the support of the PASSPORT program as determined in
appropriations made by the general assembly. If the PASSPORT
program is abolished, the amount that would have been paid to the
nursing home franchise permit fee fund under this chapter shall be
paid to the general revenue fund of the state. As used in this
chapter, "PASSPORT program" means the PASSPORT program created
under section 173.40 of the Revised Code.
The total amount paid to the Ohio thoroughbred race fund
under this section and division (A) of section 3769.087 of the
Revised Code shall not exceed by more than six per cent the total
amount paid to this fund under this section and division (A) of
that section during the immediately preceding calendar year.
Each year, the total amount calculated for payment into the
Ohio fairs fund under this division, division (C) of this section,
and division (A) of section 3769.087 of the Revised Code shall be
an amount calculated using the percentages specified in this
division, division (C) of this section, and division (A) of
section 3769.087 of the Revised Code.
A permit holder may contract with a thoroughbred horsemen's
organization for the organization to act as a representative of
all thoroughbred owners and trainers participating in a
horse-racing meeting conducted by the permit holder. A
"thoroughbred horsemen's organization" is any corporation or
association that represents, through membership or otherwise, more
than one-half of the aggregate of all thoroughbred owners and
trainers who were licensed and actively participated in racing
within this state during the preceding calendar year. Except as
otherwise provided in this paragraph, any moneys received by a
thoroughbred horsemen's organization shall be used exclusively for
the benefit of thoroughbred owners and trainers racing in this
state through the administrative purposes of the organization,
benevolent activities on behalf of the horsemen, promotion of the
horsemen's rights and interests, and promotion of equine research.
A thoroughbred horsemen's organization may expend not more than an
aggregate of five per cent of its annual gross receipts, or a
larger amount as approved by the organization, for dues,
assessments, and other payments to all other local, national, or
international organizations having as their primary purposes the
promotion of thoroughbred horse racing, thoroughbred horsemen's
rights, and equine research.
(C) Except as otherwise provided in division (B) of this
section, at the close of each racing day, each permit holder
authorized to conduct harness or quarter horse racing, out of the
amount retained that day by the permit holder, shall pay by check,
draft, or money order to the tax commissioner, as a tax, a sum
equal to the following percentages of the total of all moneys
wagered on live racing programs and shall separately compute and
pay by check, draft, or money order to the tax commissioner, as a
tax, a sum equal to the following percentages of the total of all
money wagered on simulcast racing programs on that day:
(1) One per cent of the first two hundred thousand dollars
wagered, or any part of that amount;
(2) Two per cent of the next one hundred thousand dollars
wagered, or any part of that amount;
(3) Three per cent of the next one hundred thousand dollars
wagered, or any part of that amount;
(4) Four per cent of all sums over four hundred thousand
dollars wagered.
Except as otherwise provided in division (B) and subject to
division (M)(L) of this section, from the moneys paid to the tax
commissioner by permit holders authorized to conduct harness or
quarter horse racing, one-half of one per cent of all moneys
wagered on that racing day shall be paid into the Ohio fairs fund;
from the moneys paid to the tax commissioner by permit holders
authorized to conduct harness racing, five-eighths of one and
three-eighths per cent of all moneys wagered on that racing day
shall be paid into the Ohio standardbred development fund to each
municipal corporation or township in which a race track is
located; and from the moneys paid to the tax commissioner by
permit holders authorized to conduct quarter horse racing,
five-eighths of one per cent of all moneys wagered on that racing
day shall be paid into the Ohio quarter horse development fund.
(D) In addition, subject to division (M) of this section,
beginning on January 1, 1996, from the money paid to the tax
commissioner as a tax under this section and division (A) of
section 3769.087 of the Revised Code by harness horse permit
holders, one-half of one per cent of the amount wagered on a
racing day shall be paid into the Ohio standardbred development
fund. Beginning January 1, 1998, the payment to the Ohio
standardbred development fund required under this division does
not apply to county agricultural societies or independent
agricultural societies. The
The total amount paid to the Ohio standardbred development
fund under this division, division (C) of this section, and
division (A) of section 3769.087 of the Revised Code and the total
amount paid to the Ohio quarter horse development fund under this
division (C) of this section and division (A) of that section
shall not exceed by more than six per cent the total amount paid
into the fund under this division, division (C) of this section,
and division (A) of section 3769.087 of the Revised Code in the
immediately preceding calendar year.
(E) Subject to division (M) of this section, from the money
paid as a tax under this chapter by harness and quarter horse
permit holders, one-quarter of one per cent of the total of all
moneys wagered on a racing day by each permit holder shall be paid
into the state racing commission operating fund created by section
3769.03 of the Revised Code. This division does not apply to
county and independent fairs and agricultural societies.
(F) Except as otherwise provided in section 3769.089 of the
Revised Code, each permit holder authorized to conduct harness
racing shall pay to the harness horsemen's purse pool a sum equal
to fifty per cent of the pari-mutuel revenues retained by the
permit holder as a commission after payment of the state tax. This
fifty per cent payment is to be in addition to the purse
distribution from breakage specified in this section.
(G)(F) In addition, each permit holder authorized to conduct
harness racing shall be allowed to retain the odd cents of all
redistribution to be made on all mutual contributions exceeding a
sum equal to the next lowest multiple of ten.
Forty per cent of that portion of that total sum of such odd
cents shall be used by the permit holder for purse money for Ohio
sired, bred, and owned colts, for purse money for Ohio bred
horses, and for increased purse money for horse races. Upon the
formation of the corporation described in section 3769.21 of the
Revised Code to establish a harness horsemen's health and
retirement fund, twenty-five per cent of that portion of that
total sum of odd cents shall be paid at the close of each racing
day by the permit holder to that corporation to establish and fund
the health and retirement fund. Until that corporation is formed,
that twenty-five per cent shall be paid at the close of each
racing day by the permit holder to the tax commissioner or the tax
commissioner's agent in the county seat of the county in which the
permit holder operates race meetings. The remaining thirty-five
per cent of that portion of that total sum of odd cents shall be
retained by the permit holder.
(H)(G) In addition, each permit holder authorized to conduct
thoroughbred racing shall be allowed to retain the odd cents of
all redistribution to be made on all mutuel contributions
exceeding a sum equal to the next lowest multiple of ten. Twenty
per cent of that portion of that total sum of such odd cents shall
be used by the permit holder for increased purse money for horse
races. Upon the formation of the corporation described in section
3769.21 of the Revised Code to establish a thoroughbred horsemen's
health and retirement fund, forty-five per cent of that portion of
that total sum of odd cents shall be paid at the close of each
racing day by the permit holder to that corporation to establish
and fund the health and retirement fund. Until that corporation is
formed, that forty-five per cent shall be paid by the permit
holder to the tax commissioner or the tax commissioner's agent in
the county seat of the county in which the permit holder operates
race meetings, at the close of each racing day. The remaining
thirty-five per cent of that portion of that total sum of odd
cents shall be retained by the permit holder.
(I)(H) In addition, each permit holder authorized to conduct
quarter horse racing shall be allowed to retain the odd cents of
all redistribution to be made on all mutuel contributions
exceeding a sum equal to the next lowest multiple of ten, subject
to a tax of twenty-five per cent on that portion of the total sum
of such odd cents that is in excess of two thousand dollars during
a calendar year, which tax shall be paid at the close of each
racing day by the permit holder to the tax commissioner or the tax
commissioner's agent in the county seat of the county within which
the permit holder operates race meetings. Forty per cent of that
portion of that total sum of such odd cents shall be used by the
permit holder for increased purse money for horse races. The
remaining thirty-five per cent of that portion of that total sum
of odd cents shall be retained by the permit holder.
(J)(I)(1) To encourage the improvement of racing facilities
for the benefit of the public, breeders, and horse owners, and to
increase the revenue to the state from the increase in pari-mutuel
wagering resulting from those improvements, the taxes paid by a
permit holder to the state as provided for in this chapter shall
be reduced by three-fourths of one per cent of the total amount
wagered for those permit holders who make capital improvements to
existing race tracks or construct new race tracks. The percentage
of the reduction that may be taken each racing day shall equal
seventy-five per cent of the taxes levied under divisions (B) and
(C) of this section and section 3769.087 of the Revised Code, and
division (F)(2) of section 3769.26 of the Revised Code, as
applicable, divided by the calculated amount each fund should
receive under divisions (B) and (C) of this section and section
3769.087 of the Revised Code, and division (F)(2) of section
3769.26 of the Revised Code and the reduction provided for in this
division. If the resulting percentage is less than one, that
percentage shall be multiplied by the amount of the reduction
provided for in this division. Otherwise, the permit holder shall
receive the full reduction provided for in this division. The
amount of the allowable reduction not received shall be carried
forward and applied against future tax liability. After any
reductions expire, any reduction carried forward shall be treated
as a reduction as provided for in this division.
If more than one permit holder is authorized to conduct
racing at the facility that is being built or improved, the cost
of the new race track or capital improvement shall be allocated
between or among all the permit holders in the ratio that the
permit holders' number of racing days bears to the total number of
racing days conducted at the facility.
A reduction for a new race track or a capital improvement
shall start from the day racing is first conducted following the
date actual construction of the new race track or each capital
improvement is completed and the construction cost has been
approved by the racing commission, unless otherwise provided in
this section. A reduction for a new race track or a capital
improvement shall continue for a period of twenty-five years for
new race tracks and for fifteen years for capital improvements if
the construction of the capital improvement or new race track
commenced prior to March 29, 1988, and for a period of ten years
for new race tracks or capital improvements if the construction of
the capital improvement or new race track commenced on or after
March 29, 1988, but before June 6, 2001, or until the total tax
reduction reaches seventy per cent of the approved cost of the new
race track or capital improvement, as allocated to each permit
holder, whichever occurs first. A reduction for a new race track
or a capital improvement approved after June 6, 2001, shall
continue until the total tax reduction reaches one hundred per
cent of the approved cost of the new race track or capital
improvement, as allocated to each permit holder.
A reduction granted for a new race track or a capital
improvement, the application for which was approved by the racing
commission after March 29, 1988, but before June 6, 2001, shall
not commence nor shall the ten-year period begin to run until all
prior tax reductions with respect to the same race track have
ended. The total tax reduction because of capital improvements
shall not during any one year exceed for all permit holders using
any one track three-fourths of one per cent of the total amount
wagered, regardless of the number of capital improvements made.
Several capital improvements to a race track may be consolidated
in an application if the racing commission approved the
application prior to March 29, 1988. No permit holder may receive
a tax reduction for a capital improvement approved by the racing
commission on or after March 29, 1988, at a race track until all
tax reductions have ended for all prior capital improvements
approved by the racing commission under this section or section
3769.20 of the Revised Code at that race track. If there are two
or more permit holders operating meetings at the same track, they
may consolidate their applications. The racing commission shall
notify the tax commissioner when the reduction of tax begins and
when it ends.
Each fiscal year the racing commission shall submit a report
to the tax commissioner, the office of budget and management, and
the legislative service commission. The report shall identify each
capital improvement project undertaken under this division and in
progress at each race track, indicate the total cost of each
project, state the tax reduction that resulted from each project
during the immediately preceding fiscal year, estimate the tax
reduction that will result from each project during the current
fiscal year, state the total tax reduction that resulted from all
such projects at all race tracks during the immediately preceding
fiscal year, and estimate the total tax reduction that will result
from all such projects at all race tracks during the current
fiscal year.
(2) In order to qualify for the reduction in tax, a permit
holder shall apply to the racing commission in such form as the
commission may require and shall provide full details of the new
race track or capital improvement, including a schedule for its
construction and completion, and set forth the costs and expenses
incurred in connection with it. The racing commission shall not
approve an application unless the permit holder shows that a
contract for the new race track or capital improvement has been
let under an unrestricted competitive bidding procedure, unless
the contract is exempted by the controlling board because of its
unusual nature. In determining whether to approve an application,
the racing commission shall consider whether the new race track or
capital improvement will promote the safety, convenience, and
comfort of the racing public and horse owners and generally tend
towards the improvement of racing in this state.
(3) If a new race track or capital improvement is approved by
the racing commission and construction has started, the tax
reduction may be authorized by the commission upon presentation of
copies of paid bills in excess of one hundred thousand dollars or
ten per cent of the approved cost, whichever is greater. After the
initial authorization, the permit holder shall present copies of
paid bills. If the permit holder is in substantial compliance with
the schedule for construction and completion of the new race track
or capital improvement, the racing commission may authorize the
continuation of the tax reduction upon the presentation of the
additional paid bills. The total amount of the tax reduction
authorized shall not exceed the percentage of the approved cost of
the new race track or capital improvement specified in division
(J)(I)(1) of this section. The racing commission may terminate any
tax reduction immediately if a permit holder fails to complete the
new race track or capital improvement, or to substantially comply
with the schedule for construction and completion of the new race
track or capital improvement. If a permit holder fails to complete
a new race track or capital improvement, the racing commission
shall order the permit holder to repay to the state the total
amount of tax reduced. The normal tax paid by the permit holder
shall be increased by three-fourths of one per cent of the total
amount wagered until the total amount of the additional tax
collected equals the total amount of tax reduced.
(4) As used in this section:
(a) "Capital improvement" means an addition, replacement, or
remodeling of a structural unit of a race track facility costing
at least one hundred thousand dollars, including, but not limited
to, the construction of barns used exclusively for the race track
facility, backstretch facilities for horsemen, paddock facilities,
new pari-mutuel and totalizator equipment and appurtenances to
that equipment purchased by the track, new access roads, new
parking areas, the complete reconstruction, reshaping, and
leveling of the racing surface and appurtenances, the installation
of permanent new heating or air conditioning, roof replacement or
restoration, installations of a permanent nature forming a part of
the track structure, and construction of buildings that are
located on a permit holder's premises. "Capital improvement" does
not include the cost of replacement of equipment that is not
permanently installed, ordinary repairs, painting, and maintenance
required to keep a race track facility in ordinary operating
condition.
(b) "New race track" includes the reconstruction of a race
track damaged by fire or other cause that has been declared by the
racing commission, as a result of the damage, to be an inadequate
facility for the safe operation of horse racing.
(c) "Approved cost" includes all debt service and interest
costs that are associated with a capital improvement or new race
track and that the racing commission approves for a tax reduction
under division (J)(I) of this section.
(5) The racing commission shall not approve an application
for a tax reduction under this section if it has reasonable cause
to believe that the actions or negligence of the permit holder
substantially contributed to the damage suffered by the track due
to fire or other cause. The racing commission shall obtain any
data or information available from a fire marshal, law enforcement
official, or insurance company concerning any fire or other damage
suffered by a track, prior to approving an application for a tax
reduction.
(6) The approved cost to which a tax reduction applies shall
be determined by generally accepted accounting principles and
verified by an audit of the permit holder's records upon
completion of the project by the racing commission, or by an
independent certified public accountant selected by the permit
holder and approved by the commission.
(K)(J) No other license or excise tax or fee, except as
provided in sections 3769.01 to 3769.14 of the Revised Code, shall
be assessed or collected from such licensee by any county,
township, district, municipal corporation, or other body having
power to assess or collect a tax or fee. That portion of the tax
paid under this section by permit holders for racing conducted at
and during the course of an agricultural exposition or fair, and
that portion of the tax that would have been paid by eligible
permit holders into the nursing home franchise permit fee fund as
a result of racing conducted at and during the course of an
agricultural exposition or fair, shall be deposited into the state
treasury to the credit of the horse racing tax fund, which is
hereby created for the use of the agricultural societies of the
several counties in which the taxes originate. The state racing
commission shall determine eligible permit holders for purposes of
the preceding sentence, taking into account the breed of horse,
the racing dates, the geographic proximity to the fair, and the
best interests of Ohio racing. On the first day of any month on
which there is money in the fund, the tax commissioner shall
provide for payment to the treasurer of each agricultural society
the amount of the taxes collected under this section upon racing
conducted at and during the course of any exposition or fair
conducted by the society.
(L)(K) From the tax paid under this section by harness track
permit holders, the tax commissioner shall pay into the Ohio
thoroughbred race fund a sum equal to a percentage of the amount
wagered upon which the tax is paid. The percentage shall be
determined by the tax commissioner and shall be rounded to the
nearest one-hundredth. The percentage shall be such that, when
multiplied by the amount wagered upon which tax was paid by the
harness track permit holders in the most recent year for which
final figures are available, it results in a sum that
substantially equals the same amount of tax paid by the tax
commissioner during that year into the Ohio fairs fund from taxes
paid by thoroughbred permit holders. This division does not apply
to county and independent fairs and agricultural societies.
(M)(L) Twenty-five per cent of the taxes levied on
thoroughbred racing permit holders, harness racing permit holders,
and quarter horse racing permit holders under this section,
division (A) of section 3769.087 of the Revised Code, and division
(F)(2) of section 3769.26 of the Revised Code shall be paid into
the nursing home franchise permit fee fund. The tax commissioner
shall pay any money remaining, after the payment into the nursing
home franchise permit fee fund and the reductions provided for in
division (J)(I) of this section and in section 3769.20 of the
Revised Code, into the Ohio fairs fund, Ohio thoroughbred race
fund, Ohio standardbred development fund, Ohio quarter horse fund,
and state racing commission operating fund as prescribed in this
section and division (A) of section 3769.087 of the Revised Code.
The tax commissioner shall thereafter use and apply the balance of
the money paid as a tax by any permit holder to cover any shortage
in the accounts of such funds resulting from an insufficient
payment as a tax by any other permit holder. The moneys received
by the tax commissioner shall be deposited weekly and paid by the
tax commissioner into the funds to cover the total aggregate
amount due from all permit holders to the funds, as calculated
under this section and division (A) of section 3769.087 of the
Revised Code, as applicable. If, after the payment into the
nursing home franchise permit fee fund, sufficient funds are not
available from the tax deposited by the tax commissioner to pay
the required amounts into the Ohio fairs fund, Ohio standardbred
development fund, Ohio thoroughbred race fund, Ohio quarter horse
fund, and the state racing commission operating fund, the tax
commissioner shall prorate on a proportional basis the amount paid
to each of the funds. Any shortage to the funds as a result of a
proration shall be applied against future deposits for the same
calendar year when funds are available. After this application,
the tax commissioner shall pay any remaining money paid as a tax
by all permit holders into the nursing home franchise permit fee
fund. This division does not apply to permit holders conducting
racing at the course of an agricultural exposition or fair as
described in division (K)(J) of this section.
Sec. 3769.087. (A) In addition to the commission of eighteen
per cent retained by each permit holder as provided in section
3769.08 of the Revised Code, each permit holder shall retain an
additional amount equal to four per cent of the total of all
moneys wagered on each racing day on all wagering pools other than
win, place, and show, of which amount retained an amount equal to
three per cent of the total of all moneys wagered on each racing
day on those pools shall be paid by check, draft, or money order
to the tax commissioner, as a tax. Subject to the restrictions
contained in divisions (B), (C), and (M) (L) of section 3769.08 of
the Revised Code, from such additional moneys paid to the tax
commissioner:
(1) Four-sixths shall be allocated to fund distribution as
provided in division (M) (L) of section 3769.08 of the Revised
Code.
(2) One-twelfth shall be paid into the Ohio fairs fund
created by section 3769.082 of the Revised Code.
(3) One-twelfth of the additional moneys paid to the tax
commissioner by thoroughbred racing permit holders shall be paid
into the Ohio thoroughbred race fund created by section 3769.083
of the Revised Code.
(4) One-twelfth of the additional moneys paid to the tax
commissioner by harness horse racing permit holders shall be paid
to the Ohio standardbred development fund created by section
3769.085 of the Revised Code.
(5) One-twelfth of the additional moneys paid to the tax
commissioner by quarter horse racing permit holders shall be paid
to the Ohio quarter horse development fund created by section
3769.086 of the Revised Code.
(6) One-sixth shall be paid into the state racing commission
operating fund created by section 3769.03 of the Revised Code.
The remaining one per cent that is retained of the total of
all moneys wagered on each racing day on all pools other than win,
place, and show, shall be retained by racing permit holders, and,
except as otherwise provided in section 3769.089 of the Revised
Code, racing permit holders shall use one-half for purse money and
retain one-half.
(B) In addition to the commission of eighteen per cent
retained by each permit holder as provided in section 3769.08 of
the Revised Code and the additional amount retained by each permit
holder as provided in division (A) of this section, each permit
holder shall retain an additional amount equal to one-half of one
per cent of the total of all moneys wagered on each racing day on
all wagering pools other than win, place, and show. The additional
amount retained under this division shall be paid by check, draft,
or money order to the tax commissioner, as a tax. The tax
commissioner shall pay the amount of the tax received under this
division to the state racing commission operating fund created by
section 3769.03 of the Revised Code.
(C) Each permit holder authorized by the state lottery
commission to conduct video lottery terminal gaming shall receive
a commission of video lottery terminal income as set forth in rule
3770:2-3-08 of the Administrative Code. A percentage of that
commission may be paid to the state racing commission for the
benefit of breeding and racing in this state. If so paid, the
percentage paid to the state racing commission shall be based on
rules promulgated by the state racing commission. In addition, the
permit holder shall deposit into the problem casino gambling and
addictions fund one per cent of that commission.
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)(1) 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.
(2) Notwithstanding section 3769.07 of the Revised Code:
(a) In calendar year 2013, the permit holder at each
standardbred track shall conduct a minimum of seventy-five live
racing days. In calendar year 2013, the permit holder at each
thoroughbred track shall conduct a minimum of seventy-five live
racing days or the number of live racing days that were conducted
at that track in calendar year 2012, whichever is greater. The
live racing days shall be selected by the permit holder, but are
subject to the approval of the commission.
(b) In calendar year 2014, the permit holder at each
standardbred track shall conduct a minimum of one hundred live
racing days. In calendar year 2014, the permit holder at each
thoroughbred track shall conduct a minimum of one hundred live
racing days or the number of live racing days that were conducted
at that track in calendar year 2012, whichever is greater. The
live racing days shall be selected by the permit holder, but are
subject to the approval of the commission.
(c) A permit holder shall conduct a minimum of one hundred
twenty-five live racing days and a maximum of two hundred ten live
racing days in calendar year 2015 and in each subsequent calendar
year. The live racing days shall be selected by the permit holder,
but are subject to the approval of the commission.
(3) For the purposes of division (B)(2) of this section, for
live racing conducted at a track with more than one permit, the
minimum and maximum live racing days shall apply to those permits
collectively and not as a single permit.
(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 unexpected circumstances as
defined by the commission, in its sole discretion. For any
calendar year, the horsemen's association at each track may
negotiate an agreement with the permit holder for that track to
reduce the number of live racing days at that track to less than
the minimum live racing days required by division (B)(2)(a), (b),
or (c) of this section, as applicable, or to increase the number
of live racing days at that track to a number that is greater than
the maximum live racing days permitted by division (B)(2)(c) of
this section, subject to the approval of the commission. 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. 3769.201. The holder of a permit issued under section
3769.06 of the Revised Code may apply to the state racing
commission for the tax reduction available under section 3769.20
of the Revised Code for the cost to the permit holder of any
cleanup, repair, or improvement required as a result of damage
caused by the 1997 Ohio river flood to the place, track, or
enclosure for which the permit is issued. As part of the
application, the permit holder shall submit evidence of payment of
the cost of the cleanup, repair, or improvement. The commission
shall approve the tax reduction in the amount of the cost to the
permit holder, net of any insurance proceeds, of any cleanup,
repair, or improvement the commission determines was required as a
result of damage caused by the flood. The permit holder need not
have followed unrestricted competitive bidding procedures as
required under section 3769.20 of the Revised Code to qualify for
the reduction under this section.
The permit holder shall claim the tax reduction under this
section in the same manner as if it were a tax reduction for a
major capital improvement project under section 3769.20 of the
Revised Code. The percentage of the reduction that may be taken
each racing day shall equal the percentage allowed for a reduction
under section 3769.20 of the Revised Code. A reduction under this
section shall be in addition to, and shall be taken after
completion of, a reduction approved under section 3769.20 or
division
(J)(I) of section 3769.08 of the Revised Code. A permit
holder shall not take a reduction under this section for a repair
or improvement for which a reduction is taken under section
3769.20 or division
(J)(I) of section 3769.08 of the Revised Code.
Sec. 3769.21. (A) A corporation may be formed pursuant to
Chapter 1702. of the Revised Code to establish a thoroughbred
horsemen's health and retirement fund and a corporation may be
formed pursuant to Chapter 1702. of the Revised Code to establish
a harness horsemen's health and retirement fund to be administered
for the benefit of horsemen. As used in this section, "horsemen"
includes any person involved in the owning, breeding, training,
grooming, or racing of horses which race in Ohio, except for the
owners or managers of race tracks. For purposes of the
thoroughbred horsemen's health and retirement fund, "horsemen"
also does not include trainers and grooms who are not members of
the thoroughbred horsemen's organization in this state. No more
than one corporation to establish a thoroughbred horsemen's health
and retirement fund and no more than one corporation to establish
a harness horsemen's health and retirement fund may be established
in Ohio pursuant to this section. The trustees of the corporation
formed to establish a thoroughbred horsemen's health and
retirement fund shall have the discretion to determine which
horsemen shall benefit from such fund.
(B) The articles of incorporation of both of the corporations
described in division (A) of this section shall provide for at
least the following:
(1) The corporation shall be governed by, and the health and
retirement fund shall be administered by, a board of three
trustees appointed pursuant to division (C) of this section for
staggered three-year terms.
(2) The board of trustees shall adopt and administer a plan
to provide health benefits, retirement benefits, or both to either
thoroughbred or harness horsemen.
(3) The sum paid to the corporation pursuant to division (F)
or (G) or (H) of section 3769.08 of the Revised Code shall be used
exclusively to establish and administer the health and retirement
fund, and to finance benefits paid to horsemen pursuant to the
plan adopted under division (B)(2) of this section.
(4) The articles of incorporation and code of regulations of
the corporation may be amended at any time by the board of
trustees pursuant to the method set forth in the articles of
incorporation and code of regulations, except that no amendment
shall be adopted which is inconsistent with this section.
(C) Within sixty days after the formation of each of the
corporations described in division (A) of this section, the state
racing commission shall appoint the members of the board of
trustees of that corporation. Vacancies shall be filled by the
state racing commission in the same manner as initial
appointments. Each trustee of the thoroughbred horsemen's health
and retirement fund appointed by the commission shall be active as
a thoroughbred horseman while serving a term as a trustee and
shall have been active as a thoroughbred horseman for at least
five years immediately prior to the commencement of any such term.
Each trustee of the harness horsemen's health and retirement fund
appointed by the commission shall be active as a harness horseman
while serving a term as a trustee and shall have been active as a
harness horseman for at least five years immediately prior to the
commencement of any such term. The incorporators of either such
corporation may serve as initial trustees until the state racing
commission acts pursuant to this section to make these
appointments.
(D) The intent of the general assembly in enacting this
section pursuant to Amended House Bill No. 639 of the 115th
general assembly was to fulfill a legitimate government
responsibility in a manner that would be more cost efficient and
effective than direct state agency administration by permitting
nonprofit corporations to be formed to establish health and
retirement funds for the benefit of harness and thoroughbred
horsemen, as it was determined that such persons were in need of
such benefits.
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. 3770.05. (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. 3770.07. (A)(1) Except as provided in division (A)(2)
of this section, lottery prize awards shall be claimed by the
holder of the winning lottery ticket product, or by the executor
or administrator, or the trustee of a trust, of the estate of a
deceased holder of a winning lottery
ticket product, in a manner
to be determined by the state lottery commission, within one
hundred eighty days after the date on which the prize award was
announced if the lottery game is an online game, and within one
hundred eighty days after the close of the game if the lottery
game is an instant game.
No Any lottery prize award with a value that meets or exceeds
five hundred ninety-nine dollars the reportable winnings amounts
set by 26 U.S.C. 6041, or a subsequent analogous section of the
Internal Revenue Code, shall not be claimed by or paid to any
person, as defined in section 1.59 of the Revised Code or as
defined by rule or order of the state lottery commission, until
the name, address, and social security number of each beneficial
owner of the prize award are disclosed to documented for the
commission. Except when a beneficial owner otherwise consents in
writing, in the case of a claim for a lottery prize award made by
one or more beneficial owners using a trust, the name, address,
and social security number of each such beneficial owner in the
commission's records as a result of such a disclosure are
confidential and shall not be subject to inspection or copying
under section 149.43 of the Revised Code as a public record.
Except as otherwise provided in division (A)(1) of this
section or as otherwise provided by law, the name and address of
any individual claiming a lottery prize award are subject to
inspection or copying under section 149.43 of the Revised Code as
a public record.
(2) An eligible person serving on active military duty in any
branch of the United States armed forces during a war or national
emergency declared in accordance with federal law may submit a
delayed claim for a lottery prize award. The eligible person shall
do so by notifying the state lottery commission about the claim
not later than the five hundred fortieth day after the date on
which the prize award was announced if the lottery game is an
online game or after the date on which the lottery game closed if
the lottery game is an instant game.
(3) If no valid claim to a lottery prize award is made within
the prescribed period, the prize money, the cost of goods and
services awarded as prizes, or, if goods or services awarded as
prizes are resold by the state lottery commission, the proceeds
from their sale shall be returned to the state lottery fund and
distributed in accordance with section 3770.06 of the Revised
Code.
(4) The state lottery commission may share with other
governmental agencies the name, address, and social security
number of a beneficial owner disclosed to the commission under
division (A)(1) of this section, as authorized under sections
3770.071 and 3770.073 of the Revised Code. Any shared information
as disclosed pursuant to those sections that is made confidential
by division (A)(1) of this section remains confidential and shall
not be subject to inspection or copying under section 149.43 of
the Revised Code as a public record unless the applicable
beneficial owner otherwise provides written consent.
(5) As used in this division:
(a) "Eligible person" means a person who is entitled to a
lottery prize award and who falls into either of the following
categories:
(i) While on active military duty in this state, the person,
as the result of a war or national emergency declared in
accordance with federal law, is transferred out of this state
before the one hundred eightieth day after the date on which the
winner of the lottery prize award is selected.
(ii) While serving in the reserve forces in this state, the
person, as the result of a war or national emergency declared in
accordance with federal law, is placed on active military duty and
is transferred out of this state before the expiration of the one
hundred eightieth day after the date on which the prize drawing
occurs for an online game or before the expiration of the one
hundred eightieth day following the close of an instant game as
determined by the commission.
(b) "Active military duty" means that a person is covered by
the "Servicemembers Civil Relief Act," 117 Stat. 2835 (2003), 50
U.S.C. 501 et seq., as amended, or the "Uniformed Services
Employment and Reemployment Rights Act of 1994," 108 Stat. 3149,
38 U.S.C. 4301 et seq., as amended.
(c) "Each beneficial owner" means the ultimate recipient or,
if there is more than one, each ultimate recipient of a lottery
prize award.
(B) If a prize winner, as defined in section 3770.10 of the
Revised Code, is under eighteen years of age, or is under some
other legal disability, and the prize money or the cost of goods
or services awarded as a prize exceeds one thousand dollars, the
director of the state lottery commission shall order that payment
be made to the order of the legal guardian of that prize winner.
If the amount of the prize money or the cost of goods or services
awarded as a prize is one thousand dollars or less, the director
may order that payment be made to the order of the adult member,
if any, of that prize winner's family legally responsible for the
care of that prize winner.
(C) No right of any prize winner, as defined in section
3770.10 of the Revised Code, to a prize award shall be the subject
of a security interest or used as collateral.
(D)(1) No right of any prize winner, as defined in section
3770.10 of the Revised Code, to a prize award shall be assignable
except as follows: when the payment is to be made to the executor
or administrator, or the trustee of a trust, of the estate of a
winning ticket holder prize winner; when the award of a prize is
disputed, any person may be awarded a prize award to which another
has claimed title, pursuant to the order of a court of competent
jurisdiction; when a person is awarded a prize award to which
another has claimed title, pursuant to the order of a federal
bankruptcy court under Title 11 of the United States Code; or as
provided in sections 3770.10 to 3770.14 of the Revised Code.
(2)(a) No right of any prize winner, as defined in section
3770.10 of the Revised Code, to a prize award with a remaining
unpaid balance of less than one hundred thousand dollars shall be
subject to garnishment, attachment, execution, withholding, or
deduction except as provided in sections 3119.80, 3119.81,
3121.02, 3121.03, and 3123.06 of the Revised Code or when the
director is to make a payment pursuant to section 3770.071 or
3770.073 of the Revised Code.
(b) No right of any prize winner, as defined in section
3770.10 of the Revised Code, to a prize award with an unpaid
balance of one hundred thousand dollars or more shall be subject
to garnishment, attachment, execution, withholding, or deduction
except as follows: as provided in sections 3119.80, 3119.81,
3121.02, 3121.03, and 3123.06 of the Revised Code; when the
director is to make a payment pursuant to section 3770.071 or
3770.073 of the Revised Code; or pursuant to the order of a court
of competent jurisdiction located in this state in a proceeding in
which the state lottery commission is a named party, in which case
the garnishment, attachment, execution, withholding, or deduction
pursuant to the order shall be subordinate to any payments to be
made pursuant to section 3119.80, 3119.81, 3121.02, 3121.03,
3123.06, 3770.071, or 3770.073 of the Revised Code.
(3) The state lottery commission may adopt and amend rules
pursuant to Chapter 119. of the Revised Code as necessary to
implement division (D) of this section, to provide for payments
from prize awards subject to garnishment, attachment, execution,
withholding, or deduction, and to comply with any applicable
requirements of federal law.
(4) Upon making payments from a prize award as required by
division (D) of this section, the director and the state lottery
commission are discharged from all further liability for those
payments, whether they are made to an executor, administrator,
trustee, judgment creditor, or another person, or to the prize
winner, as defined in section 3770.10 of the Revised Code.
(5) The state lottery commission shall adopt rules pursuant
to section 3770.03 of the Revised Code concerning the payment of
prize awards upon the death of a prize winner, as defined in
section 3770.10 of the Revised Code. Upon the death of a prize
winner, the remainder of the prize winner's prize award, to the
extent it is not subject to a transfer agreement under sections
3770.10 to 3770.14 of the Revised Code, may be paid to the
executor, administrator, or trustee in the form of a discounted
lump sum cash settlement.
(E) No lottery prize award shall be awarded to or for any
officer or employee of the state lottery commission, any officer
or employee of the auditor of state actively auditing,
coordinating and, or certifying commission drawings, or any blood
relative or spouse of such an officer or employee of the
commission or auditor of state living as a member of the officer's
or employee's household, nor shall any such officer, employee,
blood relative, or spouse attempt to claim a lottery prize award.
(F) The director may prohibit vendors to the state lottery
commission and their employees from being awarded a lottery prize
award.
(G) Upon the payment of prize awards pursuant to a provision
of this section, other than a provision of division (D) of this
section, the director and the state lottery commission are
discharged from all further liability for their payment.
Installment payments of lottery prize awards shall be paid by
official check or warrant, and they shall be sent by mail delivery
to the prize winner's address within the United States or by
electronic funds transfer to an established bank account located
within the United States, or the prize winner may pick them up at
an office of the commission.
Sec. 3770.071. (A)(1) If the amount of the prize money or
the cost of goods or services awarded as a lottery prize award is
six hundred dollars or more meets or exceeds the reportable
winnings amounts set by 26 U.S.C. 6041, or a subsequent analogous
section of the Internal Revenue Code, the director of the state
lottery commission or the director's designee shall require the
person entitled to the prize award to affirm in writing, under
oath,
or by electronic means, whether or not the person is in
default under a support order. The director or the director's
designee also may take any additional appropriate steps to
determine if the person entitled to the prize award is in default
under a support order. If the person entitled to the prize award
affirms that the person is in default under a support order, or if
the director or the director's designee determines that the person
is in default under a support order, the director or the
director's designee shall temporarily withhold payment of the
prize award and notify the child support enforcement agency that
administers the support order that the person is entitled to a
prize award, of the amount of the prize award, and, if the prize
award is to be paid in annual installments, of the number of
installments.
(2) Upon receipt of the notice from the director or the
director's designee, the child support enforcement agency shall
conduct an investigation to determine whether the person entitled
to the lottery prize award is subject to a final and enforceable
determination of default made under sections 3123.01 to 3123.07 of
the Revised Code. If the agency determines that the person is so
subject, it shall issue an intercept directive as described in
section 3123.89 of the Revised Code to the director at lottery
commission headquarters requiring the director or the director's
designee to deduct from any unpaid prize award or any annual
installment payment of an unpaid prize award, a specified amount
for support in satisfaction of the support order under which the
person is in default. To the extent possible, the amount specified
to be deducted under the intercept directive shall satisfy the
amount ordered for support in the support order under which the
person is in default.
A child support enforcement agency shall issue an intercept
directive within thirty days from the date the director or the
director's designee notifies the agency under division (A)(1) of
this section. Within thirty days after the date on which the
agency issues the intercept directive, the director or the
director's designee shall pay the amount specified in the
intercept directive to the office of child support in the
department of job and family services. But, if the prize award is
to be paid in annual installments, the director or the director's
designee, on the date the next installment payment is due, shall
deduct the amount specified in the intercept directive from that
installment and, if necessary, any subsequent annual installments,
at the time those installments become due and owing to the prize
winner, and pay the amount to the office of child support.
(B) As used in this section:
(1) "Support order" has the same meaning as in section
3119.01 of the Revised Code.
(2) "Default" has the same meaning as in section 3121.01 of
the Revised Code.
(C) No person shall knowingly make a false affirmation or
oath required by division (A) of this section.
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.
(3) "Video lottery terminal income" means credits played
minus video lottery terminal promotional gaming credits and the
value of video lottery terminal promotional gaming credits awarded
that can be redeemed for cash or other designated prizes as a
result of a video lottery winning game outcome.
(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, equipment, facilities-related
preparation, 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. The
rules shall exclude video lottery terminal promotional gaming
credits in the calculation of video lottery terminal income or any
payments or amounts due to the state or to the state lottery
commission.
(D) Video lottery terminal licensees shall develop internal
guidelines and controls for the purpose of giving minority
business enterprises the ability to compete for the awarding of
contracts to provide goods and services to those licensees.
(E) 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) The supreme court shall have exclusive, original
jurisdiction over any claim (F) Any action 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
shall be brought in the court of common pleas of Franklin county.
(E)(G) 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, but
does not include any device that is a skill-based amusement
machine, as defined in section 2915.01 of the Revised Code.
(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. 3772.03. (A) To ensure the integrity of casino gaming,
the commission shall have authority to complete the functions of
licensing, regulating, investigating, and penalizing casino
operators, management companies, holding companies, key employees,
casino gaming employees, and gaming-related vendors. The
commission also shall have jurisdiction over all persons
participating in casino gaming authorized by Section 6(C) of
Article XV, Ohio Constitution, and this chapter.
(B) All rules adopted by the commission under this chapter
shall be adopted under procedures established in Chapter 119. of
the Revised Code. The commission may contract for the services of
experts and consultants to assist the commission in carrying out
its duties under this section.
(C) Within six months of the effective date of this section
September 10, 2010, the commission shall adopt initial rules as
are necessary for completing the functions stated in division (A)
of this section and for addressing the subjects enumerated in
division (D) of this section.
(D) The commission shall adopt, and as advisable and
necessary shall amend or repeal, rules that include all of the
following:
(1) The prevention of practices detrimental to the public
interest;
(2) Prescribing the method of applying, and the form of
application, that an applicant for a license under this chapter
must follow as otherwise described in this chapter;
(3) Prescribing the information to be furnished by an
applicant or licensee as described in section 3772.11 of the
Revised Code;
(4) Describing the certification standards and duties of an
independent testing laboratory certified under section 3772.31 of
the Revised Code and the relationship between the commission, the
laboratory, the gaming-related vendor, and the casino operator;
(5) The minimum amount of insurance that must be maintained
by a casino operator, management company, holding company, or
gaming-related vendor;
(6) The approval process for a significant change in
ownership or transfer of control of a licensee as provided in
section 3772.091 of the Revised Code;
(7) The design of gaming supplies, devices, and equipment to
be distributed by gaming-related vendors;
(8) Identifying the casino gaming that is permitted,
identifying the gaming supplies, devices, and equipment, that are
permitted, defining the area in which the permitted casino gaming
may be conducted, and specifying the method of operation according
to which the permitted casino gaming is to be conducted as
provided in section 3772.20 of the Revised Code, and requiring
gaming devices and equipment to meet the standards of this state;
(9) Tournament play in any casino facility;
(10) Establishing and implementing a voluntary exclusion
program that provides all of the following:
(a) Except as provided by commission rule, a person who
participates in the program shall agree to refrain from entering a
casino facility.
(b) The name of a person participating in the program shall
be included on a list of persons excluded from all casino
facilities.
(c) Except as provided by commission rule, no person who
participates in the program shall petition the commission for
admittance into a casino facility.
(d) The list of persons participating in the program and the
personal information of those persons shall be confidential and
shall only be disseminated by the commission to a casino operator
and the agents and employees of the casino operator for purposes
of enforcement and to other entities, upon request of the
participant and agreement by the commission.
(e) A casino operator shall make all reasonable attempts as
determined by the commission to cease all direct marketing efforts
to a person participating in the program.
(f) A casino operator shall not cash the check of a person
participating in the program or extend credit to the person in any
manner. However, the program shall not exclude a casino operator
from seeking the payment of a debt accrued by a person before
participating in the program.
(g) Any and all locations at which a person may register as a
participant in the program shall be published.
(11) Requiring the commission to adopt standards regarding
the marketing materials of a licensed casino operator, including
allowing the commission to prohibit marketing materials that are
contrary to the adopted standards;
(12) Requiring that the records, including financial
statements, of any casino operator, management company, holding
company, and gaming-related vendor be maintained in the manner
prescribed by the commission and made available for inspection
upon demand by the commission, but shall be subject to section
3772.16 of the Revised Code;
(13) Permitting a licensed casino operator, management
company, key employee, or casino gaming employee to question a
person suspected of violating this chapter;
(14) The chips, tokens, tickets, electronic cards, or similar
objects that may be purchased by means of an agreement under which
credit is extended to a wagerer by a casino operator;
(15) Establishing standards for provisional key employee
licenses for a person who is required to be licensed as a key
employee and is in exigent circumstances and standards for
provisional licenses for casino gaming employees who submit
complete applications and are compliant under an instant
background check. A provisional license shall be valid not longer
than three months. A provisional license may be renewed one time,
at the commission's discretion, for an additional three months. In
establishing standards with regard to instant background checks
the commission shall take notice of criminal records checks as
they are conducted under section 311.41 of the Revised Code using
electronic fingerprint reading devices.
(16) Establishing approval procedures for third-party
engineering or accounting firms, as described in section 3772.09
of the Revised Code;
(17) Prescribing the manner in which winnings, compensation
from casino gaming, and gross revenue must be computed and
reported by a licensee as described in Chapter 5753. of the
Revised Code;
(18) Prescribing conditions under which a licensee's license
may be suspended or revoked as described in section 3772.04 of the
Revised Code;
(19) Prescribing the manner and procedure of all hearings to
be conducted by the commission or by any hearing examiner;
(20) Prescribing technical standards and requirements that
are to be met by security and surveillance equipment that is used
at and standards and requirements to be met by personnel who are
employed at casino facilities, and standards and requirements for
the provision of security at and surveillance of casino
facilities;
(21) Prescribing requirements for a casino operator to
provide unarmed security services at a casino facility by licensed
casino employees, and the training that shall be completed by
these employees;
(22) Prescribing standards according to which casino
operators shall keep accounts and standards according to which
casino accounts shall be audited, and establish means of assisting
the tax commissioner in levying and collecting the gross casino
revenue tax levied under section 5753.02 of the Revised Code;
(23) Defining penalties for violation of commission rules and
a process for imposing such penalties subject to the review of the
joint committee on gaming and wagering;
(24) Establishing standards for decertifying contractors that
violate statutes or rules of this state or the federal government;
(25) Establishing standards for the repair of casino gaming
equipment;
(26) Establishing procedures to ensure that casino operators,
management companies, and holding companies are compliant with the
compulsive and problem gambling plan submitted under section
3772.18 of the Revised Code;
(27) Providing for any other thing necessary and proper for
successful and efficient regulation of casino gaming under this
chapter.
(E) The commission shall employ and assign gaming agents as
necessary to assist the commission in carrying out the duties of
this chapter. In order to maintain employment as a gaming agent,
the gaming agent shall successfully complete all continuing
training programs required by the commission and shall not have
been convicted of or pleaded guilty or no contest to a
disqualifying offense as defined in section 3772.07 of the Revised
Code.
(F) The commission, as a law enforcement agency, and its
gaming agents, as law enforcement officers as defined in section
2901.01 of the Revised Code, shall have authority with regard to
the detection and investigation of, the seizure of evidence
allegedly relating to, and the apprehension and arrest of persons
allegedly committing gaming offenses, and shall have access to
casino facilities to carry out the requirements of this chapter.
(G) The commission may eject or exclude or authorize the
ejection or exclusion of and a gaming agent may eject a person
from a casino facility for any of the following reasons:
(1) The person's name is on the list of persons voluntarily
excluding themselves from all casinos in a program established
according to rules adopted by the commission;
(2) The person violates or conspires to violate this chapter
or a rule adopted thereunder; or
(3) The commission determines that the person's conduct or
reputation is such that the person's presence within a casino
facility may call into question the honesty and integrity of the
casino gaming operations or interfere with the orderly conduct of
the casino gaming operations.
(H) A person, other than a person participating in a
voluntary exclusion program, may petition the commission for a
public hearing on the person's ejection or exclusion under this
chapter.
(I) A casino operator or management company shall have the
same authority to eject or exclude a person from the management
company's casino facilities as authorized in division (G) of this
section. The licensee shall immediately notify the commission of
an ejection or exclusion.
(J) The commission shall submit a written annual report with
the governor, president and minority leader of the senate, speaker
and minority leader of the house of representatives, and joint
committee on gaming and wagering before the first day of September
each year. The annual report shall include a statement describing
the receipts and disbursements of the commission, relevant
financial data regarding casino gaming, including gross revenues
and disbursements made under this chapter, actions taken by the
commission, an update on casino operators', management companies',
and holding companies' compulsive and problem gambling plans and
the voluntary exclusion program and list, and any additional
information that the commission considers useful or that the
governor, president or minority leader of the senate, speaker or
minority leader of the house of representatives, or joint
committee on gaming and wagering requests.
(K) Notwithstanding any law to the contrary, beginning on
July 1, 2011, the commission shall assume jurisdiction over and
oversee the regulation of skill-based amusement machines as is
provided in the law of this state.
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, denied, or not renewed, the commission
shall conduct may, and if so requested by a licensee or applicant,
shall, conduct a hearing in an adjudication under Chapter 119. of
the Revised Code. After notice and opportunity for a hearing, 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) In (D)(1) For the purpose of conducting the hearing in an
adjudication under division (A) of this section, or 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, directed to the
sheriffs of the counties where such witnesses or papers, books,
and accounts are found and cause the deposition of any witness. In
The subpoenas shall be served and returned in the same manner as
subpoenas in criminal cases are served and returned. The fees of
sheriffs shall be the same as those allowed by the court of common
pleas in criminal cases.
(2) 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.
(3) Witnesses shall be paid the fees and mileage provided for
in section 119.094 of the Revised Code.
(4) All fees and mileage expenses incurred at the request of
a party shall be paid in advance by the party.
(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. 3772.091. (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 may 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
of a casino operator, management company, or holding company
unless the person is the holder of a valid key employee license
issued by the commission.
(B) No person may be employed as a key employee of a
gaming-related vendor unless that person is either the holder of a
valid key employee license issued by the commission, or the
person, at least five business days prior to the first day of
employment as a key employee, has filed a notification of
employment with the commission and subsequently files a completed
application for a key employee license within the first thirty
days of employment as a key employee.
(C) 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)(D) 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)(E) 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. The applicant also
shall complete a cover sheet for the application on which the
applicant shall disclose the applicant's name, the business
address of the casino operator, management company, holding
company, or gaming-related vendor employing the applicant, the
business address and telephone number of such employer, and the
county, state, and country in which the applicant's residence is
located.
(E)(F) 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)(G)(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)(G)(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)(G)(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)(G)(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)(G)(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;
(14) Information provided in a multijurisdictional personal
history disclosure form, including the Ohio supplement, exhibits,
attachments, and updates.
(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. The cover sheet completed by an applicant for a key
employee license under section 3772.13 of the Revised Code 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 upfront license
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. 4301.03. The liquor control commission may adopt and
promulgate, repeal, rescind, and amend, in the manner required by
this section, rules, standards, requirements, and orders necessary
to carry out this chapter and Chapter 4303. of the Revised Code,
but all rules of the board of liquor control that were in effect
immediately prior to April 17, 1963, shall remain in full force
and effect as rules of the liquor control commission until and
unless amended or repealed by the liquor control commission. The
rules of the commission may include the following:
(A) Rules with reference to applications for and the issuance
of permits for the manufacture, distribution, transportation, and
sale of beer and intoxicating liquor, and the sale of alcohol; and
rules governing the procedure of the division of liquor control in
the suspension, revocation, and cancellation of those permits;
(B) Rules and orders providing in detail for the conduct of
any retail business authorized under permits issued pursuant to
this chapter and Chapter 4303. of the Revised Code, with a view to
ensuring compliance with those chapters and laws relative to them,
and the maintenance of public decency, sobriety, and good order in
any place licensed under the permits. No rule or order shall
prohibit the operation of video lottery terminal games at a
commercial race track where live horse racing and simulcasting are
conducted in accordance with Chapter 3769. of the Revised Code or
the sale of lottery tickets issued pursuant to Chapter 3770. of
the Revised Code by any retail business authorized under permits
issued pursuant to that chapter.
No rule or order shall prohibit pari-mutuel wagering on
simulcast horse races at a satellite facility that has been issued
a D liquor permit under Chapter 4303. of the Revised Code. No rule
or order shall prohibit a charitable organization that holds a D-4
permit from selling or serving beer or intoxicating liquor under
its permit in a portion of its premises merely because that
portion of its premises is used at other times for the conduct of
a bingo game, as described in division (S)(O) of section 2915.01
of the Revised Code. However, such an organization shall not sell
or serve beer or intoxicating liquor or permit beer or
intoxicating liquor to be consumed or seen in the same location in
its premises where a bingo game, as described in division
(S)(O)(1) of section 2915.01 of the Revised Code, is being
conducted while the game is being conducted. As used in this
division, "charitable organization" has the same meaning as in
division (H) of section 2915.01 of the Revised Code. No rule or
order pertaining to visibility into the premises of a permit
holder after the legal hours of sale shall be adopted or
maintained by the commission.
(C) Standards, not in conflict with those prescribed by any
law of this state or the United States, to secure the use of
proper ingredients and methods in the manufacture of beer, mixed
beverages, and wine to be sold within this state;
(D) Rules determining the nature, form, and capacity of all
packages and bottles to be used for containing beer or
intoxicating liquor, except for spirituous liquor to be kept or
sold, governing the form of all seals and labels to be used on
those packages and bottles, and requiring the label on every
package, bottle, and container to state the ingredients in the
contents and, except on beer, the terms of weight, volume, or
proof spirits, and whether the same is beer, wine, alcohol, or any
intoxicating liquor except for spirituous liquor;
(E) Uniform rules governing all advertising with reference to
the sale of beer and intoxicating liquor throughout the state and
advertising upon and in the premises licensed for the sale of beer
or intoxicating liquor;
(F) Rules restricting and placing conditions upon the
transfer of permits;
(G) Rules and orders limiting the number of permits of any
class within the state or within any political subdivision of the
state; and, for that purpose, adopting reasonable classifications
of persons or establishments to which any authorized class of
permits may be issued within any political subdivision;
(H) Rules and orders with reference to sales of beer and
intoxicating liquor on Sundays and holidays and with reference to
the hours of the day during which and the persons to whom
intoxicating liquor of any class may be sold, and rules with
reference to the manner of sale;
(I) Rules requiring permit holders buying beer to pay and
permit holders selling beer to collect minimum cash deposits for
kegs, cases, bottles, or other returnable containers of the beer;
requiring the repayment, or credit, of the minimum cash deposit
charges upon the return of the empty containers; and requiring the
posting of such form of indemnity or such other conditions with
respect to the charging, collection, and repayment of minimum cash
deposit charges for returnable containers of beer as are necessary
to ensure the return of the empty containers or the repayment upon
that return of the minimum cash deposits paid;
(J) Rules establishing the method by which alcohol products
may be imported for sale by wholesale distributors and the method
by which manufacturers and suppliers may sell alcohol products to
wholesale distributors.
Every rule, standard, requirement, or order of the commission
and every repeal, amendment, or rescission of them shall be posted
for public inspection in the principal office of the commission
and the principal office of the division of liquor control, and a
certified copy of them shall be filed in the office of the
secretary of state. An order applying only to persons named in it
shall be served on the persons affected by personal delivery of a
certified copy, or by mailing a certified copy to each person
affected by it or, in the case of a corporation, to any officer or
agent of the corporation upon whom a service of summons may be
served in a civil action. The posting and filing required by this
section constitutes sufficient notice to all persons affected by
such rule or order which is not required to be served. General
rules of the commission promulgated pursuant to this section shall
be published in the manner the commission determines.
Sec. 4303.17. (A)(1) Permit D-4 may be issued to a club that
has been in existence for three years or more prior to the
issuance of the permit to sell beer and any intoxicating liquor to
its members only, in glass or container, for consumption on the
premises where sold. The fee for this permit is four hundred
sixty-nine dollars.
No D-4 permit shall be granted or retained until all elected
officers of the organization controlling the club have filed with
the division of liquor control a statement, signed under oath,
certifying that the club is operated in the interest of the
membership of a reputable organization, which is maintained by a
dues paying membership, and setting forth the amount of initiation
fee and yearly dues.
The roster of membership of a D-4 permit holder shall be
submitted under oath on the request of the superintendent of
liquor control. Any information acquired by the superintendent or
the division with respect to that membership shall not be open to
public inspection or examination and may be divulged by the
superintendent and the division only in hearings before the liquor
control commission or in a court action in which the division or
the superintendent is named a party.
(2) The requirement that a club shall have been in existence
for three years in order to qualify for a D-4 permit does not
apply to units of organizations chartered by congress or to a
subsidiary unit of a national fraternal organization if the parent
organization has been in existence for three years or more at the
time application for a permit is made by that unit.
(B) No rule or order of the division or commission shall
prohibit a charitable organization that holds a D-4 permit from
selling or serving beer or intoxicating liquor under its permit in
a portion of its premises merely because that portion of its
premises is used at other times for the conduct of a bingo game as
described in division (S)(O)(1) of section 2915.01 of the Revised
Code. However, such an organization shall not sell or serve beer
or intoxicating liquor or permit beer or intoxicating liquor to be
consumed or seen in the same location in its premises where a
bingo game as described in division (S)(O)(1) of section 2915.01
of the Revised Code is being conducted while the game is being
conducted. As used in this division, "charitable organization" has
the same meaning as in division (H) of section 2915.01 of the
Revised Code.
(C) Notwithstanding any contrary provision of sections
4301.32 to 4301.41, division (C)(1) of section 4303.29, and
section 4305.14 of the Revised Code, the holder of a D-4 permit
may transfer the location of the permit and sell beer and wine at
the new location if that location is in an election precinct in
which the sale of beer and wine, but not spirituous liquor,
otherwise is permitted by law.
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 to the
extent not previously excluded. For the purpose of this division,
"bad debts" means any debts that have become worthless or
uncollectible in a prior tax period, 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 122.014, 173.121, 2505.09,
2505.12, 2915.01, 2915.02, 2915.06, 2915.08, 2915.09, 2915.091,
2915.092, 2915.093, 2915.094, 2915.10, 2915.101, 2915.12, 2923.31,
2933.51, 3301.0714, 3769.08, 3769.087, 3769.089, 3769.201,
3769.21, 3770.02, 3770.05, 3770.07, 3770.071, 3770.21, 3772.01,
3772.03, 3772.04, 3772.091, 3772.10, 3772.13, 3772.16, 3772.17,
3772.28, 3772.99, 4301.03, 4303.17, 5753.01, and 5753.03, and
section 3772.14 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. Except as otherwise provided in this act, all
appropriation items in this act are appropriated out of any moneys
in the state treasury to the credit of the designated fund that
are not otherwise appropriated. For all appropriations made in
this act, the amounts in the first column are for fiscal year 2012
and the amounts in the second column are for fiscal year 2013.
DEV DEPARTMENT OF DEVELOPMENT
XXXX |
195XXX |
|
Racetrack Facility Community Economic Redevelopment Fund |
|
$ |
12,000,000 |
|
$ |
0 |
|
|
The foregoing appropriation item 195XXX, Racetrack Facility
Community Economic Redevelopment Fund, shall be used 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. Any unexpended and
unencumbered portion of this appropriation item at the end of
fiscal year 2012 is hereby reappropriated for the same purpose in
fiscal year 2013. Revenue in the fund may be used to pay
reasonable costs incurred by the Director of Development in
administering the program.
Section 11. 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 12. 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 13. The amendment by this act of sections 3769.08,
3769.201, and 3769.21 and division (A) of section 3769.087 of the
Revised Code takes effect July 1, 2013.
Section 14. 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 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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