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S. B. No. 115 As IntroducedAs Introduced
|130th General Assembly|
To amend Section 12 of Am. Sub. H.B. 386 of the 129th
General Assembly to extend the moratorium on new
establishments conducting sweepstakes by
sweepstakes terminal devices, to require
establishments to file a new affidavit, and to
declare an emergency.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:
Section 1. That Section 12 of Am. Sub. H.B. 386 of the 129th
General Assembly be amended to read as follows:
Sec. 12. (A) As used in this section:
(1) "Sweepstakes" means any game, contest, advertising scheme
or plan, or other promotion, but does not include bingo, or games
or lotteries conducted by the state lottery commission, in which
consideration is not required for a person to enter to win or to
become eligible to receive any prize, the determination of which
is based upon chance.
(2) "Sweepstakes terminal device" means a mechanical, video,
digital, or electronic machine or device that is owned, leased, or
otherwise possessed by any person conducting a sweepstakes, or by
that person's partners, affiliates, subsidiaries, or contractors,
that is intended to be used by a sweepstakes participant who
purchases a tangible product to enter a sweepstakes, and that is
capable of displaying information on a screen or other mechanism.
A device is a sweepstakes terminal device whether or not any of
the following apply:
(a) The device is server-based.
(b) The device uses a simulated game terminal as a
representation of the prizes associated with the results of the
(c) The device utilizes software such that the simulated game
influences or determines the winning of or value of the prize.
(d) The device selects prizes from a predetermined finite
pool of entries.
(e) The device utilizes a mechanism that reveals the content
of a predetermined sweepstakes entry.
(f) The device predetermines the prize results and stores
those results for delivery at the time the sweepstakes entry
results are revealed.
(g) The device utilizes software to create a game result.
(h) The device requires deposit of any money, coin, or token,
or the use of any credit card, debit card, prepaid card, or any
other method of payment to activate the electronic machine or
(i) The device requires direct payment into the device, or
remote activation of the device.
(j) The device reveals the prize incrementally, even though
the device does not influence the awarding of a prize or the value
of any prize awarded.
(k) The device determines and associates the prize with an
entry or entries at the time the sweepstakes is entered.
(l) The device is a slot machine or other form of electrical,
mechanical, or computer game.
(3) "Enter" means the purchase of a tangible product by which
a person becomes eligible to receive any prize offered in a
(4) "Entry" means one event from the initial activation of
the sweepstakes terminal device until all sweepstakes prize
results from that activation are revealed.
(5) "Prize" means any gift, award, gratuity, good, service,
credit, reward, or any other thing of value that may be
transferred to a person, whether possession of the prize is
actually transferred, or placed on an account or other record as
evidence of the intent to transfer the prize.
(B) On and after
the effective date of this section June 11,
2012, and through June 30, 2013 2014, no person shall conduct a
sweepstakes through the use of a sweepstakes terminal device that
has not conducted such a sweepstakes before the effective date of
this section June 11, 2012. All sweepstakes establishments
conducting a sweepstakes through the use of a sweepstakes terminal
device, whether or not licensed by a local entity, in existence
and operating before the effective date of this section may
continue to operate at only their current locations after the
effective date of this section June 11, 2012. Upon the expiration
of any current occupancy permit, permission to operate, or other
permit or license issued by a local entity for a sweepstakes
establishment that was in existence before the effective date of
this section, the local entity shall renew the occupancy permits
or licenses or grant permission at those pre-existing locations in
accordance with that local entity's current permit or licensing
ordinances or procedures. This division is not intended to
supersede any similar action taken by a county, township, or
(C) The General Assembly finds the following:
(1) The state has experienced a proliferation of retail
businesses that utilize a sweepstakes to facilitate sales. These
establishments utilize computer terminals or stand alone machines,
which currently are not consistently and uniformly regulated
statewide and have created a window of opportunity for rogue
operators to open in cities across the state.
(2) Judges across the state have issued conflicting rulings
regarding the legality of these sweepstakes establishments.
(3) The General Assembly has determined that a moratorium on
new retail sweepstakes establishments is needed while legislation
is being considered.
(D)(1) Within thirty days after
the effective date of this
June 11, 2012, a sweepstakes establishment conducting a
sweepstakes through the use of a sweepstakes terminal device in
existence and operating before the effective that date of this
section shall file an affidavit with the Attorney General
certifying that the establishment was in existence and operating
before the effective that date of this section and indicating the
address of the establishment.
If a sweepstakes establishment was in existence and operating
the effective date of this section June 11, 2012, but was
involuntarily shut down by law enforcement before that date,
solely for the purposes of this moratorium those sweepstakes
establishments shall be considered to be in existence and
operating before the effective date of this section June 11, 2012.
If the sweepstakes establishment is permitted to resume operations
pursuant to court order, the sweepstakes establishment shall have
thirty days from the date of resuming operations to file the
(2) Within thirty days after the effective date of this
amendment, a sweepstakes establishment conducting a sweepstakes
through the use of a sweepstakes terminal device in existence and
operating before June 11, 2012, and any such establishment in
existence and operating after that date and before the effective
date of this amendment, shall file an affidavit with the Attorney
General. The affidavit shall be made under oath on forms
prescribed by the Attorney General and shall contain information
as prescribed by the Attorney General, including, but not limited
to, the appropriate names, as determined by the Attorney General,
of owners or employees of the establishment, the date that the
establishment began conducting sweepstakes through the use of a
sweepstakes terminal device, and the date that the establishment
began making such sweepstakes available to the general public.
(E)(1) On and after
the effective date of this section June
11, 2012, and through June 30, 2013 2014, the Attorney General or
the appropriate county prosecuting attorney may bring an action
for injunction against a person that conducts a sweepstakes
through the use of a sweepstakes terminal device that has not
conducted such a sweepstakes before the effective date of this
section June 11, 2012. If such a person continues to conduct such
a sweepstakes after an injunction is granted, a contempt action
may be brought by any means necessary.
(2) The Attorney General may impose a civil penalty of not
more than one thousand dollars for each day a person violates
division (D)(2) of this section. The Attorney General shall
commence and prosecute to judgment a civil action in a court of
competent jurisdiction to collect any civil penalty imposed under
this section that remains unpaid. All amounts collected shall be
deposited into the Attorney General Reimbursement Fund created in
section 109.11 of the Revised Code and shall be used by the
Attorney General solely to enforce this section.
(3) The Attorney General may initiate and prosecute a
criminal action against any person that provides false information
on the affidavit required under division (D)(2) of this section in
any court of competent jurisdiction in this state for a violation
of section 2921.13 of the Revised Code. When proceeding under this
section, the Attorney General has all rights, privileges, and
powers of prosecuting attorneys, and any assistant or special
counsel designated by the Attorney General for that purpose has
the same authority.
Section 2. That existing Section 12 of Am. Sub. H.B. 386 of
the 129th General Assembly is hereby repealed.
Section 3. This act is an emergency measure necessary for
the immediate preservation of the public peace, health, and
safety. The reasons for such necessity are the same as the
findings of the General Assembly described in the act. Therefore,
this act goes into immediate effect.