As Introduced

129th General Assembly Regular Session 2011-2012

H. B. No. 165

Representatives Goodwin, Lundy 

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A BILL

To amend section 2915.01 and 2915.09 of the Revised

1

Code to exclude property taxes and assessments

2

from the calculation of net profit from the

3

proceeds of the sale of instant bingo for

4

veterans, fraternal, and sporting organizations

5

and to clarify that no charitable organization is

6

required to pay property taxes on a premises

7

leased from another person to conduct bingo.

8

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:

Section 1.  That sections 2915.01 and 2915.09 of the Revised	9
Code be amended to read as follows:	10

Sec. 2915.01.  As used in this chapter:

11

(A) "Bookmaking" means the business of receiving or paying	12
off bets.	13

(B) "Bet" means the hazarding of anything of value upon the	14
result of an event, undertaking, or contingency, but does not	15
include a bona fide business risk.	16

(C) "Scheme of chance" means a slot machine, lottery, numbers	17
game, pool conducted for profit, or other scheme in which a	18
participant gives a valuable consideration for a chance to win a	19
prize, but does not include bingo, a skill-based amusement	20
machine, or a pool not conducted for profit.	21

(D) "Game of chance" means poker, craps, roulette, or other	22
game in which a player gives anything of value in the hope of	23
gain, the outcome of which is determined largely by chance, but	24
does not include bingo.	25

(E) "Game of chance conducted for profit" means any game of	26
chance designed to produce income for the person who conducts or	27
operates the game of chance, but does not include bingo.	28

(F) "Gambling device" means any of the following:

29

(1) A book, totalizer, or other equipment for recording bets;

30

(2) A ticket, token, or other device representing a chance,	31
share, or interest in a scheme of chance or evidencing a bet;	32

(3) A deck of cards, dice, gaming table, roulette wheel, slot	33
machine, or other apparatus designed for use in connection with a	34
game of chance;	35

(4) Any equipment, device, apparatus, or paraphernalia	36
specially designed for gambling purposes;	37

(5) Bingo supplies sold or otherwise provided, or used, in	38
violation of this chapter.	39

(G) "Gambling offense" means any of the following:

40

(1) A violation of section 2915.02, 2915.03, 2915.04,	41
2915.05, 2915.06, 2915.07, 2915.08, 2915.081, 2915.082, 2915.09,	42
2915.091, 2915.092, 2915.10, or 2915.11 of the Revised Code;	43

(2) A violation of an existing or former municipal ordinance	44
or law of this or any other state or the United States	45
substantially equivalent to any section listed in division (G)(1)	46
of this section or a violation of section 2915.06 of the Revised	47
Code as it existed prior to July 1, 1996;	48

(3) An offense under an existing or former municipal	49
ordinance or law of this or any other state or the United States,	50
of which gambling is an element;	51

(4) A conspiracy or attempt to commit, or complicity in	52
committing, any offense under division (G)(1), (2), or (3) of this	53
section.	54

(H) Except as otherwise provided in this chapter, "charitable	55
organization" means any tax exempt religious, educational,	56
veteran's, fraternal, sporting, service, nonprofit medical,	57
volunteer rescue service, volunteer firefighter's, senior	58
citizen's, historic railroad educational, youth athletic, amateur	59
athletic, or youth athletic park organization. An organization is	60
tax exempt if the organization is, and has received from the	61
internal revenue service a determination letter that currently is	62
in effect stating that the organization is, exempt from federal	63
income taxation under subsection 501(a) and described in	64
subsection 501(c)(3), 501(c)(4), 501(c)(8), 501(c)(10), or	65
501(c)(19) of the Internal Revenue Code, or if the organization is	66
a sporting organization that is exempt from federal income	67
taxation under subsection 501(a) and is described in subsection	68
501(c)(7) of the Internal Revenue Code. To qualify as a charitable	69
organization, an organization, except a volunteer rescue service	70
or volunteer firefighter's organization, shall have been in	71
continuous existence as such in this state for a period of two	72
years immediately preceding either the making of an application	73
for a bingo license under section 2915.08 of the Revised Code or	74
the conducting of any game of chance as provided in division (D)	75
of section 2915.02 of the Revised Code. A charitable organization	76
that is exempt from federal income taxation under subsection	77
501(a) and described in subsection 501(c)(3) of the Internal	78
Revenue Code and that is created by a veteran's organization, a	79
fraternal organization, or a sporting organization does not have	80
to have been in continuous existence as such in this state for a	81
period of two years immediately preceding either the making of an	82
application for a bingo license under section 2915.08 of the	83
Revised Code or the conducting of any game of chance as provided	84
in division (D) of section 2915.02 of the Revised Code.	85

(I) "Religious organization" means any church, body of	86
communicants, or group that is not organized or operated for	87
profit and that gathers in common membership for regular worship	88
and religious observances.	89

(J) "Educational organization" means any organization within	90
this state that is not organized for profit, the primary purpose	91
of which is to educate and develop the capabilities of individuals	92
through instruction by means of operating or contributing to the	93
support of a school, academy, college, or university.	94

(K) "Veteran's organization" means any individual post or	95
state headquarters of a national veteran's association or an	96
auxiliary unit of any individual post of a national veteran's	97
association, which post, state headquarters, or auxiliary unit is	98
incorporated as a nonprofit corporation and either has received a	99
letter from the state headquarters of the national veteran's	100
association indicating that the individual post or auxiliary unit	101
is in good standing with the national veteran's association or has	102
received a letter from the national veteran's association	103
indicating that the state headquarters is in good standing with	104
the national veteran's association. As used in this division,	105
"national veteran's association" means any veteran's association	106
that has been in continuous existence as such for a period of at	107
least five years and either is incorporated by an act of the	108
United States congress or has a national dues-paying membership of	109
at least five thousand persons.	110

(L) "Volunteer firefighter's organization" means any	111
organization of volunteer firefighters, as defined in section	112
146.01 of the Revised Code, that is organized and operated	113
exclusively to provide financial support for a volunteer fire	114
department or a volunteer fire company and that is recognized or	115
ratified by a county, municipal corporation, or township.	116

(M) "Fraternal organization" means any society, order, state	117
headquarters, or association within this state, except a college	118
or high school fraternity, that is not organized for profit, that	119
is a branch, lodge, or chapter of a national or state	120
organization, that exists exclusively for the common business or	121
sodality of its members.	122

(N) "Volunteer rescue service organization" means any	123
organization of volunteers organized to function as an emergency	124
medical service organization, as defined in section 4765.01 of the	125
Revised Code.	126

(O) "Service organization" means either of the following:

127

(1) Any organization, not organized for profit, that is	128
organized and operated exclusively to provide, or to contribute to	129
the support of organizations or institutions organized and	130
operated exclusively to provide, medical and therapeutic services	131
for persons who are crippled, born with birth defects, or have any	132
other mental or physical defect or those organized and operated	133
exclusively to protect, or to contribute to the support of	134
organizations or institutions organized and operated exclusively	135
to protect, animals from inhumane treatment or provide immediate	136
shelter to victims of domestic violence;	137

(2) Any organization that is described in subsection	138
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	139
and is either a governmental unit or an organization that is tax	140
exempt under subsection 501(a) and described in subsection	141
501(c)(3) of the Internal Revenue Code and that is an	142
organization, not organized for profit, that is organized and	143
operated primarily to provide, or to contribute to the support of	144
organizations or institutions organized and operated primarily to	145
provide, medical and therapeutic services for persons who are	146
crippled, born with birth defects, or have any other mental or	147
physical defect.	148

(P) "Nonprofit medical organization" means either of the	149
following:	150

(1) Any organization that has been incorporated as a	151
nonprofit corporation for at least five years and that has	152
continuously operated and will be operated exclusively to provide,	153
or to contribute to the support of organizations or institutions	154
organized and operated exclusively to provide, hospital, medical,	155
research, or therapeutic services for the public;	156

(2) Any organization that is described and qualified under	157
subsection 501(c)(3) of the Internal Revenue Code, that has been	158
incorporated as a nonprofit corporation for at least five years,	159
and that has continuously operated and will be operated primarily	160
to provide, or to contribute to the support of organizations or	161
institutions organized and operated primarily to provide,	162
hospital, medical, research, or therapeutic services for the	163
public.	164

(Q) "Senior citizen's organization" means any private	165
organization, not organized for profit, that is organized and	166
operated exclusively to provide recreational or social services	167
for persons who are fifty-five years of age or older and that is	168
described and qualified under subsection 501(c)(3) of the Internal	169
Revenue Code.	170

(R) "Charitable bingo game" means any bingo game described in	171
division (S)(1) or (2) of this section that is conducted by a	172
charitable organization that has obtained a license pursuant to	173
section 2915.08 of the Revised Code and the proceeds of which are	174
used for a charitable purpose.	175

(S) "Bingo" means either of the following:

176

(1) A game with all of the following characteristics:

177

(a) The participants use bingo cards or sheets, including	178
paper formats and electronic representation or image formats, that	179
are divided into twenty-five spaces arranged in five horizontal	180
and five vertical rows of spaces, with each space, except the	181
central space, being designated by a combination of a letter and a	182
number and with the central space being designated as a free	183
space.	184

(b) The participants cover the spaces on the bingo cards or	185
sheets that correspond to combinations of letters and numbers that	186
are announced by a bingo game operator.	187

(c) A bingo game operator announces combinations of letters	188
and numbers that appear on objects that a bingo game operator	189
selects by chance, either manually or mechanically, from a	190
receptacle that contains seventy-five objects at the beginning of	191
each game, each object marked by a different combination of a	192
letter and a number that corresponds to one of the seventy-five	193
possible combinations of a letter and a number that can appear on	194
the bingo cards or sheets.	195

(d) The winner of the bingo game includes any participant who	196
properly announces during the interval between the announcements	197
of letters and numbers as described in division (S)(1)(c) of this	198
section, that a predetermined and preannounced pattern of spaces	199
has been covered on a bingo card or sheet being used by the	200
participant.	201

(2) Instant bingo, punch boards, and raffles.

202

(T) "Conduct" means to back, promote, organize, manage, carry	203
on, sponsor, or prepare for the operation of bingo or a game of	204
chance.	205

(U) "Bingo game operator" means any person, except security	206
personnel, who performs work or labor at the site of bingo,	207
including, but not limited to, collecting money from participants,	208
handing out bingo cards or sheets or objects to cover spaces on	209
bingo cards or sheets, selecting from a receptacle the objects	210
that contain the combination of letters and numbers that appear on	211
bingo cards or sheets, calling out the combinations of letters and	212
numbers, distributing prizes, selling or redeeming instant bingo	213
tickets or cards, supervising the operation of a punch board,	214
selling raffle tickets, selecting raffle tickets from a receptacle	215
and announcing the winning numbers in a raffle, and preparing,	216
selling, and serving food or beverages.	217

(V) "Participant" means any person who plays bingo.

218

(W) "Bingo session" means a period that includes both of the	219
following:	220

(1) Not to exceed five continuous hours for the conduct of	221
one or more games described in division (S)(1) of this section,	222
instant bingo, and seal cards;	223

(2) A period for the conduct of instant bingo and seal cards	224
for not more than two hours before and not more than two hours	225
after the period described in division (W)(1) of this section.	226

(X) "Gross receipts" means all money or assets, including	227
admission fees, that a person receives from bingo without the	228
deduction of any amounts for prizes paid out or for the expenses	229
of conducting bingo. "Gross receipts" does not include any money	230
directly taken in from the sale of food or beverages by a	231
charitable organization conducting bingo, or by a bona fide	232
auxiliary unit or society of a charitable organization conducting	233
bingo, provided all of the following apply:	234

(1) The auxiliary unit or society has been in existence as a	235
bona fide auxiliary unit or society of the charitable organization	236
for at least two years prior to conducting bingo.	237

(2) The person who purchases the food or beverage receives	238
nothing of value except the food or beverage and items customarily	239
received with the purchase of that food or beverage.	240

(3) The food and beverages are sold at customary and	241
reasonable prices.	242

(Y) "Security personnel" includes any person who either is a	243
sheriff, deputy sheriff, marshal, deputy marshal, township	244
constable, or member of an organized police department of a	245
municipal corporation or has successfully completed a peace	246
officer's training course pursuant to sections 109.71 to 109.79 of	247
the Revised Code and who is hired to provide security for the	248
premises on which bingo is conducted.	249

(Z) "Charitable purpose" means that the net profit of bingo,	250
other than instant bingo, is used by, or is given, donated, or	251
otherwise transferred to, any of the following:	252

(1) Any organization that is described in subsection	253
509(a)(1), 509(a)(2), or 509(a)(3) of the Internal Revenue Code	254
and is either a governmental unit or an organization that is tax	255
exempt under subsection 501(a) and described in subsection	256
501(c)(3) of the Internal Revenue Code;	257

(2) A veteran's organization that is a post, chapter, or	258
organization of veterans, or an auxiliary unit or society of, or a	259
trust or foundation for, any such post, chapter, or organization	260
organized in the United States or any of its possessions, at least	261
seventy-five per cent of the members of which are veterans and	262
substantially all of the other members of which are individuals	263
who are spouses, widows, or widowers of veterans, or such	264
individuals, provided that no part of the net earnings of such	265
post, chapter, or organization inures to the benefit of any	266
private shareholder or individual, and further provided that the	267
net profit is used by the post, chapter, or organization for the	268
charitable purposes set forth in division (B)(12) of section	269
5739.02 of the Revised Code, is used for awarding scholarships to	270
or for attendance at an institution mentioned in division (B)(12)	271
of section 5739.02 of the Revised Code, is donated to a	272
governmental agency, or is used for nonprofit youth activities,	273
the purchase of United States or Ohio flags that are donated to	274
schools, youth groups, or other bona fide nonprofit organizations,	275
promotion of patriotism, or disaster relief;	276

(3) A fraternal organization that has been in continuous	277
existence in this state for fifteen years and that uses the net	278
profit exclusively for religious, charitable, scientific,	279
literary, or educational purposes, or for the prevention of	280
cruelty to children or animals, if contributions for such use	281
would qualify as a deductible charitable contribution under	282
subsection 170 of the Internal Revenue Code;	283

(4) A volunteer firefighter's organization that uses the net	284
profit for the purposes set forth in division (L) of this section.	285

(AA) "Internal Revenue Code" means the "Internal Revenue Code	286
of 1986," 100 Stat. 2085, 26 U.S.C. 1, as now or hereafter	287
amended.	288

(BB) "Youth athletic organization" means any organization,	289
not organized for profit, that is organized and operated	290
exclusively to provide financial support to, or to operate,	291
athletic activities for persons who are twenty-one years of age or	292
younger by means of sponsoring, organizing, operating, or	293
contributing to the support of an athletic team, club, league, or	294
association.	295

(CC) "Youth athletic park organization" means any	296
organization, not organized for profit, that satisfies both of the	297
following:	298

(1) It owns, operates, and maintains playing fields that	299
satisfy both of the following:	300

(a) The playing fields are used at least one hundred days per	301
year for athletic activities by one or more organizations, not	302
organized for profit, each of which is organized and operated	303
exclusively to provide financial support to, or to operate,	304
athletic activities for persons who are eighteen years of age or	305
younger by means of sponsoring, organizing, operating, or	306
contributing to the support of an athletic team, club, league, or	307
association.	308

(b) The playing fields are not used for any profit-making	309
activity at any time during the year.	310

(2) It uses the proceeds of bingo it conducts exclusively for	311
the operation, maintenance, and improvement of its playing fields	312
of the type described in division (CC)(1) of this section.	313

(DD) "Amateur athletic organization" means any organization,	314
not organized for profit, that is organized and operated	315
exclusively to provide financial support to, or to operate,	316
athletic activities for persons who are training for amateur	317
athletic competition that is sanctioned by a national governing	318
body as defined in the "Amateur Sports Act of 1978," 90 Stat.	319
3045, 36 U.S.C.A. 373.	320

(EE) "Bingo supplies" means bingo cards or sheets; instant	321
bingo tickets or cards; electronic bingo aids; raffle tickets;	322
punch boards; seal cards; instant bingo ticket dispensers; and	323
devices for selecting or displaying the combination of bingo	324
letters and numbers or raffle tickets. Items that are "bingo	325
supplies" are not gambling devices if sold or otherwise provided,	326
and used, in accordance with this chapter. For purposes of this	327
chapter, "bingo supplies" are not to be considered equipment used	328
to conduct a bingo game.	329

(FF) "Instant bingo" means a form of bingo that uses folded	330
or banded tickets or paper cards with perforated break-open tabs,	331
a face of which is covered or otherwise hidden from view to	332
conceal a number, letter, or symbol, or set of numbers, letters,	333
or symbols, some of which have been designated in advance as prize	334
winners. "Instant bingo" includes seal cards. "Instant bingo" does	335
not include any device that is activated by the insertion of a	336
coin, currency, token, or an equivalent, and that contains as one	337
of its components a video display monitor that is capable of	338
displaying numbers, letters, symbols, or characters in winning or	339
losing combinations.	340

(GG) "Seal card" means a form of instant bingo that uses	341
instant bingo tickets in conjunction with a board or placard that	342
contains one or more seals that, when removed or opened, reveal	343
predesignated winning numbers, letters, or symbols.	344

(HH) "Raffle" means a form of bingo in which the one or more	345
prizes are won by one or more persons who have purchased a raffle	346
ticket. The one or more winners of the raffle are determined by	347
drawing a ticket stub or other detachable section from a	348
receptacle containing ticket stubs or detachable sections	349
corresponding to all tickets sold for the raffle. "Raffle" does	350
not include the drawing of a ticket stub or other detachable	351
section of a ticket purchased to attend a professional sporting	352
event if both of the following apply:	353

(1) The ticket stub or other detachable section is used to	354
select the winner of a free prize given away at the professional	355
sporting event; and	356

(2) The cost of the ticket is the same as the cost of a	357
ticket to the professional sporting event on days when no free	358
prize is given away.	359

(II) "Punch board" means a board containing a number of holes	360
or receptacles of uniform size in which are placed, mechanically	361
and randomly, serially numbered slips of paper that may be punched	362
or drawn from the hole or receptacle when used in conjunction with	363
instant bingo. A player may punch or draw the numbered slips of	364
paper from the holes or receptacles and obtain the prize	365
established for the game if the number drawn corresponds to a	366
winning number or, if the punch board includes the use of a seal	367
card, a potential winning number.	368

(JJ) "Gross profit" means gross receipts minus the amount	369
actually expended for the payment of prize awards.	370

(KK) "Net profit" means gross profit minus expenses.

371

(LL) "Expenses" means the reasonable amount of gross profit	372
actually expended for all of the following:	373

(1) The purchase or lease of bingo supplies;

374

(2) The annual license fee required under section 2915.08 of	375
the Revised Code;	376

(3) Bank fees and service charges for a bingo session or game	377
account described in section 2915.10 of the Revised Code;	378

(4) Audits and accounting services;

379

(5) Safes;

380

(6) Cash registers;

381

(7) Hiring security personnel;

382

(8) Advertising bingo;

383

(9) Renting premises in which to conduct a bingo session;

384

(10) Tables and chairs;

385

(11) Expenses for maintaining and operating a charitable	386
organization's facilities, including, but not limited to, a post	387
home, club house, lounge, tavern, or canteen and any grounds	388
attached to the post home, club house, lounge, tavern, or canteen;	389

(12) Payment of real property taxes and assessments that are	390
levied on a premises on which bingo is conducted;	391

(13) Any other product or service directly related to the	392
conduct of bingo that is authorized in rules adopted by the	393
attorney general under division (B)(1) of section 2915.08 of the	394
Revised Code.	395

(MM) "Person" has the same meaning as in section 1.59 of the	396
Revised Code and includes any firm or any other legal entity,	397
however organized.	398

(NN) "Revoke" means to void permanently all rights and	399
privileges of the holder of a license issued under section	400
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	401
gaming license issued by another jurisdiction.	402

(OO) "Suspend" means to interrupt temporarily all rights and	403
privileges of the holder of a license issued under section	404
2915.08, 2915.081, or 2915.082 of the Revised Code or a charitable	405
gaming license issued by another jurisdiction.	406

(PP) "Distributor" means any person who purchases or obtains	407
bingo supplies and who does either of the following:	408

(1) Sells, offers for sale, or otherwise provides or offers	409
to provide the bingo supplies to another person for use in this	410
state;	411

(2) Modifies, converts, adds to, or removes parts from the	412
bingo supplies to further their promotion or sale for use in this	413
state.	414

(QQ) "Manufacturer" means any person who assembles completed	415
bingo supplies from raw materials, other items, or subparts or who	416
modifies, converts, adds to, or removes parts from bingo supplies	417
to further their promotion or sale.	418

(RR) "Gross annual revenues" means the annual gross receipts	419
derived from the conduct of bingo described in division (S)(1) of	420
this section plus the annual net profit derived from the conduct	421
of bingo described in division (S)(2) of this section.	422

(SS) "Instant bingo ticket dispenser" means a mechanical	423
device that dispenses an instant bingo ticket or card as the sole	424
item of value dispensed and that has the following	425
characteristics:	426

(1) It is activated upon the insertion of United States	427
currency.	428

(2) It performs no gaming functions.

429

(3) It does not contain a video display monitor or generate	430
noise.	431

(4) It is not capable of displaying any numbers, letters,	432
symbols, or characters in winning or losing combinations.	433

(5) It does not simulate or display rolling or spinning	434
reels.	435

(6) It is incapable of determining whether a dispensed bingo	436
ticket or card is a winning or nonwinning ticket or card and	437
requires a winning ticket or card to be paid by a bingo game	438
operator.	439

(7) It may provide accounting and security features to aid in	440
accounting for the instant bingo tickets or cards it dispenses.	441

(8) It is not part of an electronic network and is not	442
interactive.	443

(TT)(1) "Electronic bingo aid" means an electronic device	444
used by a participant to monitor bingo cards or sheets purchased	445
at the time and place of a bingo session and that does all of the	446
following:	447

(a) It provides a means for a participant to input numbers	448
and letters announced by a bingo caller.	449

(b) It compares the numbers and letters entered by the	450
participant to the bingo faces previously stored in the memory of	451
the device.	452

(c) It identifies a winning bingo pattern.

453

(2) "Electronic bingo aid" does not include any device into	454
which a coin, currency, token, or an equivalent is inserted to	455
activate play.	456

(UU) "Deal of instant bingo tickets" means a single game of	457
instant bingo tickets all with the same serial number.	458

(VV)(1) "Slot machine" means either of the following:

459

(a) Any mechanical, electronic, video, or digital device that	460
is capable of accepting anything of value, directly or indirectly,	461
from or on behalf of a player who gives the thing of value in the	462
hope of gain;	463

(b) Any mechanical, electronic, video, or digital device that	464
is capable of accepting anything of value, directly or indirectly,	465
from or on behalf of a player to conduct bingo or a scheme or game	466
of chance.	467

(2) "Slot machine" does not include a skill-based amusement	468
machine or an instant bingo ticket dispenser.	469

(WW) "Net profit from the proceeds of the sale of instant	470
bingo" means gross profit minus the ordinary, necessary, and	471
reasonable expense expended for the purchase of instant bingo	472
supplies, and, for instant bingo conducted by a veterans,	473
fraternal, or sporting organization, the payment by that	474
organization of real property taxes and assessments levied on a	475
premises on which instant bingo is conducted.	476

(XX) "Charitable instant bingo organization" means an	477
organization that is exempt from federal income taxation under	478
subsection 501(a) and described in subsection 501(c)(3) of the	479
Internal Revenue Code and is a charitable organization as defined	480
in this section. A "charitable instant bingo organization" does	481
not include a charitable organization that is exempt from federal	482
income taxation under subsection 501(a) and described in	483
subsection 501(c)(3) of the Internal Revenue Code and that is	484
created by a veteran's organization, a fraternal organization, or	485
a sporting organization in regards to bingo conducted or assisted	486
by a veteran's organization, a fraternal organization, or a	487
sporting organization pursuant to section 2915.13 of the Revised	488
Code.	489

(YY) "Game flare" means the board or placard that accompanies	490
each deal of instant bingo tickets and that has printed on or	491
affixed to it the following information for the game:	492

(1) The name of the game;

493

(2) The manufacturer's name or distinctive logo;

494

(3) The form number;

495

(4) The ticket count;

496

(5) The prize structure, including the number of winning	497
instant bingo tickets by denomination and the respective winning	498
symbol or number combinations for the winning instant bingo	499
tickets;	500

(6) The cost per play;

501

(7) The serial number of the game.

502

(ZZ) "Historic railroad educational organization" means an	503
organization that is exempt from federal income taxation under	504
subsection 501(a) and described in subsection 501(c)(3) of the	505
Internal Revenue Code, that owns in fee simple the tracks and the	506
right-of-way of a historic railroad that the organization restores	507
or maintains and on which the organization provides excursions as	508
part of a program to promote tourism and educate visitors	509
regarding the role of railroad transportation in Ohio history, and	510
that received as donations from a charitable organization that	511
holds a license to conduct bingo under this chapter an amount	512
equal to at least fifty per cent of that licensed charitable	513
organization's net proceeds from the conduct of bingo during each	514
of the five years preceding June 30, 2003. "Historic railroad"	515
means all or a portion of the tracks and right-of-way of a	516
railroad that was owned and operated by a for-profit common	517
carrier in this state at any time prior to January 1, 1950.	518

(AAA)(1) "Skill-based amusement machine" means a mechanical,	519
video, digital, or electronic device that rewards the player or	520
players, if at all, only with merchandise prizes or with	521
redeemable vouchers redeemable only for merchandise prizes,	522
provided that with respect to rewards for playing the game all of	523
the following apply:	524

(a) The wholesale value of a merchandise prize awarded as a	525
result of the single play of a machine does not exceed ten	526
dollars;	527

(b) Redeemable vouchers awarded for any single play of a	528
machine are not redeemable for a merchandise prize with a	529
wholesale value of more than ten dollars;	530

(c) Redeemable vouchers are not redeemable for a merchandise	531
prize that has a wholesale value of more than ten dollars times	532
the fewest number of single plays necessary to accrue the	533
redeemable vouchers required to obtain that prize; and	534

(d) Any redeemable vouchers or merchandise prizes are	535
distributed at the site of the skill-based amusement machine at	536
the time of play.	537

(2) A device shall not be considered a skill-based amusement	538
machine and shall be considered a slot machine if it pays cash or	539
one or more of the following apply:	540

(a) The ability of a player to succeed at the game is	541
impacted by the number or ratio of prior wins to prior losses of	542
players playing the game.	543

(b) Any reward of redeemable vouchers is not based solely on	544
the player achieving the object of the game or the player's score;	545

(c) The outcome of the game, or the value of the redeemable	546
voucher or merchandise prize awarded for winning the game, can be	547
controlled by a source other than any player playing the game.	548

(d) The success of any player is or may be determined by a	549
chance event that cannot be altered by player actions.	550

(e) The ability of any player to succeed at the game is	551
determined by game features not visible or known to the player.	552

(f) The ability of the player to succeed at the game is	553
impacted by the exercise of a skill that no reasonable player	554
could exercise.	555

(3) All of the following apply to any machine that is	556
operated as described in division (AAA)(1) of this section:	557

(a) As used in this section, "game" and "play" mean one event	558
from the initial activation of the machine until the results of	559
play are determined without payment of additional consideration.	560
An individual utilizing a machine that involves a single game,	561
play, contest, competition, or tournament may be awarded	562
redeemable vouchers or merchandise prizes based on the results of	563
play.	564

(b) Advance play for a single game, play, contest,	565
competition, or tournament participation may be purchased. The	566
cost of the contest, competition, or tournament participation may	567
be greater than a single noncontest, competition, or tournament	568
play.	569

(c) To the extent that the machine is used in a contest,	570
competition, or tournament, that contest, competition, or	571
tournament has a defined starting and ending date and is open to	572
participants in competition for scoring and ranking results toward	573
the awarding of redeemable vouchers or merchandise prizes that are	574
stated prior to the start of the contest, competition, or	575
tournament.	576

(4) For purposes of division (AAA)(1) of this section, the	577
mere presence of a device, such as a pin-setting, ball-releasing,	578
or scoring mechanism, that does not contribute to or affect the	579
outcome of the play of the game does not make the device a	580
skill-based amusement machine.	581

(BBB) "Merchandise prize" means any item of value, but shall	582
not include any of the following:	583

(1) Cash, gift cards, or any equivalent thereof;

584

(2) Plays on games of chance, state lottery tickets, bingo,	585
or instant bingo;	586

(3) Firearms, tobacco, or alcoholic beverages; or

587

(4) A redeemable voucher that is redeemable for any of the	588
items listed in division (BBB)(1), (2), or (3) of this section.	589

(CCC) "Redeemable voucher" means any ticket, token, coupon,	590
receipt, or other noncash representation of value.	591

(DDD) "Pool not conducted for profit" means a scheme in which	592
a participant gives a valuable consideration for a chance to win a	593
prize and the total amount of consideration wagered is distributed	594
to a participant or participants.	595

(EEE) "Sporting organization" means a hunting, fishing, or	596
trapping organization, other than a college or high school	597
fraternity or sorority, that is not organized for profit, that is	598
affiliated with a state or national sporting organization,	599
including but not limited to, the Ohio league of sportsmen, and	600
that has been in continuous existence in this state for a period	601
of three years.	602

(FFF) "Community action agency" has the same meaning as in	603
section 122.66 of the Revised Code.	604

Sec. 2915.09.  (A) No charitable organization that conducts	605
bingo shall fail to do any of the following:	606

(1) Own all of the equipment used to conduct bingo or lease	607
that equipment from a charitable organization that is licensed to	608
conduct bingo, or from the landlord of a premises where bingo is	609
conducted, for a rental rate that is not more than is customary	610
and reasonable for that equipment;	611

(2) Except as otherwise provided in division (A)(3) of this	612
section, use all of the gross receipts from bingo for paying	613
prizes, for reimbursement of expenses for or for renting premises	614
in which to conduct a bingo session, for reimbursement of expenses	615
for or for purchasing or leasing bingo supplies used in conducting	616
bingo, for reimbursement of expenses for or for hiring security	617
personnel, for reimbursement of expenses for or for advertising	618
bingo, or for reimbursement of other expenses or for other	619
expenses listed in division (LL) of section 2915.01 of the Revised	620
Code, provided that the amount of the receipts so spent is not	621
more than is customary and reasonable for a similar purchase,	622
lease, hiring, advertising, or expense. If the building in which	623
bingo is conducted is owned by the charitable organization	624
conducting bingo and the bingo conducted includes a form of bingo	625
described in division (S)(1) of section 2915.01 of the Revised	626
Code, the charitable organization may deduct from the total amount	627
of the gross receipts from each session a sum equal to the lesser	628
of six hundred dollars or forty-five per cent of the gross	629
receipts from the bingo described in that division as	630
consideration for the use of the premises.	631

(3) Use, or give, donate, or otherwise transfer, all of the	632
net profit derived from bingo, other than instant bingo, for a	633
charitable purpose listed in its license application and described	634
in division (Z) of section 2915.01 of the Revised Code, or	635
distribute all of the net profit from the proceeds of the sale of	636
instant bingo as stated in its license application and in	637
accordance with section 2915.101 of the Revised Code.	638

(B) No charitable organization that conducts a bingo game	639
described in division (S)(1) of section 2915.01 of the Revised	640
Code shall fail to do any of the following:	641

(1) Conduct the bingo game on premises that are owned by the	642
charitable organization, on premises that are owned by another	643
charitable organization and leased from that charitable	644
organization for a rental rate not in excess of the lesser of six	645
hundred dollars per bingo session or forty-five per cent of the	646
gross receipts of the bingo session, on premises that are leased	647
from a person other than a charitable organization for a rental	648
rate that is not more than is customary and reasonable for	649
premises that are similar in location, size, and quality but not	650
in excess of four hundred fifty dollars per bingo session, or on	651
premises that are owned by a person other than a charitable	652
organization, that are leased from that person by another	653
charitable organization, and that are subleased from that other	654
charitable organization by the charitable organization for a	655
rental rate not in excess of four hundred fifty dollars per bingo	656
session. No charitable organization is required to pay property	657
taxes or assessments on premises that the charitable organization	658
leases from another person to conduct bingo. If the charitable	659
organization leases from a person other than a charitable	660
organization the premises on which it conducts bingo sessions, the	661
lessor of the premises shall provide the premises to the	662
organization and shall not provide the organization with bingo	663
game operators, security personnel, concessions or concession	664
operators, bingo supplies, or any other type of service. A	665
charitable organization shall not lease or sublease premises that	666
it owns or leases to more than one other charitable organization	667
per calendar week for the purpose of conducting bingo sessions on	668
the premises. A person that is not a charitable organization shall	669
not lease premises that it owns, leases, or otherwise is empowered	670
to lease to more than three charitable organizations per calendar	671
week for conducting bingo sessions on the premises. In no case	672
shall more than nine bingo sessions be conducted on any premises	673
in any calendar week.	674

(2) Display its license conspicuously at the premises where	675
the bingo session is conducted;	676

(3) Conduct the bingo session in accordance with the	677
definition of bingo set forth in division (S)(1) of section	678
2915.01 of the Revised Code.	679

(C) No charitable organization that conducts a bingo game	680
described in division (S)(1) of section 2915.01 of the Revised	681
Code shall do any of the following:	682

(1) Pay any compensation to a bingo game operator for	683
operating a bingo session that is conducted by the charitable	684
organization or for preparing, selling, or serving food or	685
beverages at the site of the bingo session, permit any auxiliary	686
unit or society of the charitable organization to pay compensation	687
to any bingo game operator who prepares, sells, or serves food or	688
beverages at a bingo session conducted by the charitable	689
organization, or permit any auxiliary unit or society of the	690
charitable organization to prepare, sell, or serve food or	691
beverages at a bingo session conducted by the charitable	692
organization, if the auxiliary unit or society pays any	693
compensation to the bingo game operators who prepare, sell, or	694
serve the food or beverages;	695

(2) Pay consulting fees to any person for any services	696
performed in relation to the bingo session;	697

(3) Pay concession fees to any person who provides	698
refreshments to the participants in the bingo session;	699

(4) Except as otherwise provided in division (C)(4) of this	700
section, conduct more than three bingo sessions in any seven-day	701
period. A volunteer firefighter's organization or a volunteer	702
rescue service organization that conducts not more than five bingo	703
sessions in a calendar year may conduct more than three bingo	704
sessions in a seven-day period after notifying the attorney	705
general when it will conduct the sessions.	706

(5) Pay out more than six thousand dollars in prizes for	707
bingo games described in division (S)(1) of section 2915.01 of the	708
Revised Code during any bingo session that is conducted by the	709
charitable organization. "Prizes" does not include awards from the	710
conduct of instant bingo.	711

(6) Conduct a bingo session at any time during the ten-hour	712
period between midnight and ten a.m., at any time during, or	713
within ten hours of, a bingo game conducted for amusement only	714
pursuant to section 2915.12 of the Revised Code, at any premises	715
not specified on its license, or on any day of the week or during	716
any time period not specified on its license. Division (A)(6) of	717
this section does not prohibit the sale of instant bingo tickets	718
beginning at nine a.m. for a bingo session that begins at ten a.m.	719
If circumstances make it impractical for the charitable	720
organization to conduct a bingo session at the premises, or on the	721
day of the week or at the time, specified on its license or if a	722
charitable organization wants to conduct bingo sessions on a day	723
of the week or at a time other than the day or time specified on	724
its license, the charitable organization may apply in writing to	725
the attorney general for an amended license pursuant to division	726
(F) of section 2915.08 of the Revised Code. A charitable	727
organization may apply twice in each calendar year for an amended	728
license to conduct bingo sessions on a day of the week or at a	729
time other than the day or time specified on its license. If the	730
amended license is granted, the organization may conduct bingo	731
sessions at the premises, on the day of the week, and at the time	732
specified on its amended license.	733

(7) Permit any person whom the charitable organization knows,	734
or should have known, is under the age of eighteen to work as a	735
bingo game operator;	736

(8) Permit any person whom the charitable organization knows,	737
or should have known, has been convicted of a felony or gambling	738
offense in any jurisdiction to be a bingo game operator;	739

(9) Permit the lessor of the premises on which the bingo	740
session is conducted, if the lessor is not a charitable	741
organization, to provide the charitable organization with bingo	742
game operators, security personnel, concessions, bingo supplies,	743
or any other type of service;	744

(10) Purchase or lease bingo supplies from any person except	745
a distributor issued a license under section 2915.081 of the	746
Revised Code;	747

(11)(a) Use or permit the use of electronic bingo aids except	748
under the following circumstances:	749

(i) For any single participant, not more than ninety bingo	750
faces can be played using an electronic bingo aid or aids.	751

(ii) The charitable organization shall provide a participant	752
using an electronic bingo aid with corresponding paper bingo cards	753
or sheets.	754

(iii) The total price of bingo faces played with an	755
electronic bingo aid shall be equal to the total price of the same	756
number of bingo faces played with a paper bingo card or sheet sold	757
at the same bingo session but without an electronic bingo aid.	758

(iv) An electronic bingo aid cannot be part of an electronic	759
network other than a network that includes only bingo aids and	760
devices that are located on the premises at which the bingo is	761
being conducted or be interactive with any device not located on	762
the premises at which the bingo is being conducted.	763

(v) An electronic bingo aid cannot be used to participate in	764
bingo that is conducted at a location other than the location at	765
which the bingo session is conducted and at which the electronic	766
bingo aid is used.	767

(vi) An electronic bingo aid cannot be used to provide for	768
the input of numbers and letters announced by a bingo caller other	769
than the bingo caller who physically calls the numbers and letters	770
at the location at which the bingo session is conducted and at	771
which the electronic bingo aid is used.	772

(b) The attorney general may adopt rules in accordance with	773
Chapter 119. of the Revised Code that govern the use of electronic	774
bingo aids. The rules may include a requirement that an electronic	775
bingo aid be capable of being audited by the attorney general to	776
verify the number of bingo cards or sheets played during each	777
bingo session.	778

(12) Permit any person the charitable organization knows, or	779
should have known, to be under eighteen years of age to play bingo	780
described in division (S)(1) of section 2915.01 of the Revised	781
Code.	782

(D)(1) Except as otherwise provided in division (D)(3) of	783
this section, no charitable organization shall provide to a bingo	784
game operator, and no bingo game operator shall receive or accept,	785
any commission, wage, salary, reward, tip, donation, gratuity, or	786
other form of compensation, directly or indirectly, regardless of	787
the source, for conducting bingo or providing other work or labor	788
at the site of bingo during a bingo session.	789

(2) Except as otherwise provided in division (D)(3) of this	790
section, no charitable organization shall provide to a bingo game	791
operator any commission, wage, salary, reward, tip, donation,	792
gratuity, or other form of compensation, directly or indirectly,	793
regardless of the source, for conducting instant bingo other than	794
at a bingo session at the site of instant bingo other than at a	795
bingo session.	796

(3) Nothing in division (D) of this section prohibits an	797
employee of a fraternal organization, veteran's organization, or	798
sporting organization from selling instant bingo tickets or cards	799
to the organization's members or invited guests, as long as no	800
portion of the employee's compensation is paid from any receipts	801
of bingo.	802

(E) Notwithstanding division (B)(1) of this section, a	803
charitable organization that, prior to December 6, 1977, has	804
entered into written agreements for the lease of premises it owns	805
to another charitable organization or other charitable	806
organizations for the conducting of bingo sessions so that more	807
than two bingo sessions are conducted per calendar week on the	808
premises, and a person that is not a charitable organization and	809
that, prior to December 6, 1977, has entered into written	810
agreements for the lease of premises it owns to charitable	811
organizations for the conducting of more than two bingo sessions	812
per calendar week on the premises, may continue to lease the	813
premises to those charitable organizations, provided that no more	814
than four sessions are conducted per calendar week, that the	815
lessor organization or person has notified the attorney general in	816
writing of the organizations that will conduct the sessions and	817
the days of the week and the times of the day on which the	818
sessions will be conducted, that the initial lease entered into	819
with each organization that will conduct the sessions was filed	820
with the attorney general prior to December 6, 1977, and that each	821
organization that will conduct the sessions was issued a license	822
to conduct bingo games by the attorney general prior to December	823
6, 1977.	824

(F) This section does not prohibit a bingo licensed	825
charitable organization or a game operator from giving any person	826
an instant bingo ticket as a prize.	827

(G) Whoever violates division (A)(2) of this section is	828
guilty of illegally conducting a bingo game, a felony of the	829
fourth degree. Except as otherwise provided in this division,	830
whoever violates division (A)(1) or (3), (B)(1), (2), or (3),	831
(C)(1) to (12), or (D) of this section is guilty of a minor	832
misdemeanor. If the offender previously has been convicted of a	833
violation of division (A)(1) or (3), (B)(1), (2), or (3), (C)(1)	834
to (11), or (D) of this section, a violation of division (A)(1) or	835
(3), (B)(1), (2), or (3), (C), or (D) of this section is a	836
misdemeanor of the first degree. Whoever violates division (C)(12)	837
of this section is guilty of a misdemeanor of the first degree, if	838
the offender previously has been convicted of a violation of	839
division (C)(12) of this section, a felony of the fourth degree.	840

Section 2.  That existing sections 2915.01 and 2915.09 of the	841
Revised Code are hereby repealed.	842