Section 1. That sections 3770.02, 3770.03, 3770.05,
3770.06, | 14 |
3770.07, 3770.08, and 4301.03 be amended and sections
3770.21, | 15 |
3770.22, 3770.23, 3770.24, 3770.25,
3770.26, 3770.261, 3770.262, | 16 |
3770.263,
3770.27,
3770.28, 3770.29, 3770.30, and 3770.31
of the | 17 |
Revised
Code be
enacted to read as follows: | 18 |
Sec. 3770.02. (A) Subject to the advice and consent of the | 19 |
senate, the governor shall appoint a director of the state
lottery | 20 |
commission who shall serve at the pleasure of the
governor. The | 21 |
director shall devote full time to the duties
of the office and | 22 |
shall hold no other office or employment.
The director shall meet | 23 |
all requirements for appointment as a member
of the commission and | 24 |
shall, by experience and training, possess
management skills
that
| 25 |
equip the director to
administer an
enterprise of the
nature
of a | 26 |
state lottery. The director shall
receive an annual
salary
in | 27 |
accordance with pay range 48 of
section 124.152 of the
Revised | 28 |
Code. | 29 |
(B)(1) The director shall attend all meetings of the | 30 |
commission
and shall act as its secretary. The director shall
keep | 31 |
a
record of all
commission proceedings and shall keep
the | 32 |
commission's records, files, and
documents at the commission's | 33 |
principal office. All records of
the commission's meetings shall | 34 |
be available for inspection by
any member of the public, upon a | 35 |
showing of good cause and prior
notification to the director. | 36 |
(C)(1) The director shall appoint an assistant director, | 42 |
deputy directors of marketing,
operations, video lottery | 43 |
terminals, sales, finance, public
relations, security, and | 44 |
administration, and as many regional
managers as are required. | 45 |
The director may also appoint
necessary
professional, technical, | 46 |
and clerical assistants.
All
such
officers and employees shall be | 47 |
appointed
and
compensated
pursuant
to Chapter 124. of the Revised | 48 |
Code.
Regional
and
assistant
regional managers, sales | 49 |
representatives, and any
lottery
executive account representatives | 50 |
shall
remain in the
unclassified
service. | 51 |
(D) The director shall request the bureau of criminal | 58 |
identification and investigation, the department of public
safety, | 59 |
or any other
state, local, or federal agency to supply
the | 60 |
director with the criminal records of
any job applicant and may | 61 |
periodically request
the
criminal records of commission
employees. | 62 |
At or prior to the time of making such a request, the
director | 63 |
shall
require a job applicant or
commission employee to
obtain | 64 |
fingerprint cards prescribed by the
superintendent of the
bureau | 65 |
of criminal identification and investigation at a
qualified
law | 66 |
enforcement
agency, and the director shall cause these
fingerprint | 67 |
cards to be forwarded to
the bureau of criminal
identification and | 68 |
investigation and the federal bureau
of
investigation. The | 69 |
commission shall assume the cost of obtaining
the
fingerprint | 70 |
cards and shall pay to each agency supplying
criminal records
for | 71 |
each
investigation under this division a
reasonable
fee, as | 72 |
determined by the agency. | 73 |
(F) The director shall confer at least once
each month with | 79 |
the commission, at which time the director
shall advise it
| 80 |
regarding the operation and administration of the lottery. The | 81 |
director
shall make available at the request of the commission all | 82 |
documents, files, and other records pertaining to the operation | 83 |
and administration of the lottery. The director shall
prepare and | 84 |
make
available to the commission each month a complete and | 85 |
accurate
accounting of lottery revenues, prize money disbursements | 86 |
and the
cost of goods and services awarded as prizes, operating | 87 |
expenses,
and all other relevant financial information, including | 88 |
an
accounting of all transfers made from any lottery funds in the | 89 |
custody of the
treasurer of state to benefit education. | 90 |
(H)(1) Pursuant to rules adopted by the commission
under | 94 |
section 3770.03 of the Revised Code, the director shall require | 95 |
any
lottery sales
agents licensed under section 3770.05 of the | 96 |
Revised Code
to
either mail directly to the
commission
or
deposit | 97 |
to the credit of the state
lottery fund, in
banking
institutions | 98 |
designated by the treasurer
of state, net
proceeds
due the
| 99 |
commission
as determined by
the
director, and to
file
with the | 100 |
director or
the director's
designee reports of their
receipts and | 101 |
transactions in
the sale of
lottery
ticketsproducts in
the
form
| 102 |
required
by the director. | 103 |
Sec. 3770.03. (A) The state lottery commission shall | 141 |
promulgate rules under which a statewide lottery may,
including | 142 |
games providing immediate prize
determinations
for participants | 143 |
through the use of
video
lottery
terminals,
shall be conducted.
| 144 |
The rules shall be
promulgated
pursuant to
Chapter
119.
of the | 145 |
Revised Code, except
that
instant
game rules
shall be | 146 |
promulgated
pursuant to section
111.15 of the
Revised
Code but | 147 |
are not subject
to division (D) of
that section.
Subjects
covered | 148 |
in
these rules
shall include, but
need not
be
limited
to, the | 149 |
following: | 150 |
(B) The commission shall promulgate
rules, in
addition to | 157 |
those described in division (A) of this section,
pursuant
to | 158 |
Chapter 119. of the Revised Code under which a
statewide lottery | 159 |
and statewide joint lottery games may, and lotteries,
including | 160 |
games providing immediate prize
determinations
through the use of | 161 |
video lottery
terminals
shall, be
conducted.
Subjects
covered in | 162 |
these rules shall
include, but not
be limited
to, the
following: | 163 |
(1) The locations at which lottery ticketsproducts may be | 164 |
sold and
the manner in which they are to be sold.
These rules may | 165 |
authorize
the sale of lottery ticketsproducts by commission | 166 |
personnel or
other
licensed
individuals from traveling show | 167 |
wagons at the state
fair,
and at any
other expositions the | 168 |
director
of the commission
considers acceptable.
These rules shall | 169 |
prohibit
commission
personnel or other licensed individuals from | 170 |
soliciting from an
exposition the right to sell lottery tickets at | 171 |
that exposition,
but shall
allow commission personnel or other | 172 |
licensed individuals
to sell lottery
tickets at an exposition if | 173 |
the exposition
requests commission personnel or
licensed | 174 |
individuals to do so.
These rules may also
address the | 175 |
accessibility of sales agent
locations to commission products in | 176 |
accordance with the
"Americans
with Disabilities
Act of 1990," 104 | 177 |
Stat. 327, 42 U.S.C.A. 12101
et seq. | 178 |
(4) The substantive criteria for the licensing of lottery | 187 |
sales agents consistent with section 3770.05 of the Revised Code, | 188 |
and procedures for revoking or suspending
their licenses, or the | 189 |
licenses of video lottery sales agents issued under section | 190 |
3770.24 of the Revised Code,
consistent with Chapter 119. of the | 191 |
Revised Code. If
circumstances, such as the nonpayment of funds | 192 |
owed by a
lottery
sales agent or video lottery sales agent,
or | 193 |
other circumstances related to the public safety,
convenience,
or | 194 |
trust,
require immediate action, the director may
suspend a | 195 |
license without affording
an opportunity for a prior
hearing under | 196 |
section 119.07 of the Revised Code. | 197 |
(5) Special game rules to implement any agreements signed by | 198 |
the governor that the
director enters into with other lottery | 199 |
jurisdictions under
division (J) of section 3770.02 of the Revised | 200 |
Code to conduct
statewide joint lottery games. The rules shall | 201 |
require that the
entire net proceeds of those games that remain, | 202 |
after associated
operating expenses, prize disbursements, lottery | 203 |
sales agent
bonuses, commissions, and reimbursements, and any | 204 |
other expenses
necessary to comply with the agreements or the | 205 |
rules are deducted
from the gross proceeds of those games, be | 206 |
transferred to the
lottery profits education fund under division | 207 |
(B) of section
3770.06 of the Revised Code. | 208 |
(E) The commission may promulgate rules, in addition to those | 227 |
described in divisions (A) and (B) of this section, that establish | 228 |
standards governing the display of advertising and celebrity | 229 |
images on lottery tickets and on other items that are used in the | 230 |
conduct of, or to promote, the statewide lottery and statewide | 231 |
joint lottery games. Any revenue derived from the sale of | 232 |
advertising displayed on lottery tickets and on those other items | 233 |
shall be considered, for purposes of section 3770.06 of the | 234 |
Revised Code, to be related proceeds in connection with the | 235 |
statewide lottery or gross proceeds from statewide joint lottery | 236 |
games, as applicable. | 237 |
(D)(F)(1) The
commission shall meet with the
director
at | 238 |
least
once each month and shall
convene
other meetings at the | 239 |
request of
the
chairperson
or any five of the
members. No action | 240 |
taken by the
commission
shall be binding
unless at least five of | 241 |
the members
present vote
in favor
of the action. A written
record | 242 |
shall be
made of
the proceedings of
each meeting and shall
be | 243 |
transmitted
forthwith
to the governor,
the president of the | 244 |
senate, the senate
minority
leader, the
speaker of the house of | 245 |
representatives, and
the house
minority
leader. | 246 |
(2) The director shall present to the commission a report | 247 |
each
month, showing the total revenues, prize disbursements, and | 248 |
operating expenses of the state lottery for the preceding month. | 249 |
As soon as practicable after the end of each fiscal year, the | 250 |
commission shall prepare and transmit to the governor and the | 251 |
general assembly a report of lottery revenues, prize | 252 |
disbursements, and operating expenses for the preceding fiscal | 253 |
year and any recommendations for legislation considered
necessary | 254 |
by the commission. | 255 |
Sec. 3770.05. (A) As used in this section,
"person" means | 256 |
any
person, association, corporation, partnership, club, trust, | 257 |
estate, society, receiver, trustee, person acting in a fiduciary | 258 |
or representative capacity, instrumentality of the state or any
of | 259 |
its political subdivisions, or any other combination of | 260 |
individuals meeting the requirements set forth in this section or | 261 |
established by rule or order of the state lottery commission. | 262 |
(2) It appears to the director of the state lottery | 301 |
commission that, due to the
experience, character,
or
general | 302 |
fitness of any director,
officer, or controlling
shareholder of | 303 |
the corporation, the granting of a license as a
lottery sales | 304 |
agent
would be inconsistent with the public
interest, convenience, | 305 |
or
trust; | 306 |
(F) The director of the state lottery commission shall | 328 |
request the bureau of
criminal
identification and investigation, | 329 |
the department of public safety,
or
any other state, local, or | 330 |
federal agency to supply the
director with the
criminal records of | 331 |
any applicant for a lottery
sales agent license, and may | 332 |
periodically request the criminal records of
any person to whom a | 333 |
lottery sales agent license has
been issued. At or prior to
the | 334 |
time of making such a request, the director
shall require an | 335 |
applicant or licensee to obtain fingerprint impressions on | 336 |
fingerprint cards prescribed
by
the superintendent of the bureau | 337 |
of criminal identification and
investigation at a
qualified law | 338 |
enforcement agency, and the
director shall cause
those | 339 |
fingerprint cards to be forwarded to
the bureau of criminal | 340 |
identification and
investigation, to the
federal bureau of | 341 |
investigation, or to both bureaus. The commission shall
assume the | 342 |
cost of obtaining the
fingerprint cards. | 343 |
(b) Prior to approval of the application, obtain a surety
| 359 |
bond in an amount
the director determines by rule adopted under | 360 |
Chapter 119. of the Revised Code or, alternatively, with the | 361 |
director's approval, deposit the same amount into a dedicated | 362 |
account for the benefit of the state lottery. The director also | 363 |
may approve the obtaining of a surety bond to cover part of the | 364 |
amount required, together with a dedicated account deposit to | 365 |
cover the remainder of the amount required. | 366 |
A surety bond, dedicated account, or both, as applicable, may | 372 |
be used to pay for the lottery sales agent's failure to make | 373 |
prompt and accurate payments for lottery ticketproduct sales, for | 374 |
missing or stolen lottery ticketsproducts, or for damage to | 375 |
equipment or materials issued to the lottery sales agent, or to | 376 |
pay for expenses the commission incurs in connection with the | 377 |
lottery sales agent's license. | 378 |
Before the commission renews a lottery sales agent license, | 388 |
the lottery sales agent shall submit a renewal fee to the | 389 |
commission in an amount that the director determines by rule | 390 |
adopted under Chapter 119. of the Revised Code and that the | 391 |
controlling board approves. The renewal fee shall not exceed the | 392 |
actual cost of administering the license renewal and processing | 393 |
changes reflected in the renewal application. The renewal of the | 394 |
license is effective for up to one year. | 395 |
(3) A lottery sales agent license shall be complete, | 396 |
accurate, and current at all times during the term of the license. | 397 |
Any changes to an original license application or a renewal | 398 |
application may subject the applicant or lottery sales agent, as | 399 |
applicable, to paying an administrative fee that shall be in an | 400 |
amount that the director determines by rule adopted under Chapter | 401 |
119. of the Revised Code, that the controlling board approves, and | 402 |
that shall not exceed the actual cost of administering and | 403 |
processing the changes to an application. | 404 |
(I) If a lottery sales agent's rental payments for the | 414 |
lottery sales agent's
premises are determined, in whole or in | 415 |
part, by the
amount of retail
sales the lottery sales agent makes, | 416 |
and if the rental agreement
does not expressly
provide that the | 417 |
amount of those retail sales
includes the amounts
the lottery | 418 |
sales agent receives from lottery ticketproduct sales,
only the | 419 |
amounts the
lottery sales agent receives as compensation
from the | 420 |
state
lottery commission for selling lottery ticketsproducts | 421 |
shall be
considered to be amounts the lottery sales agent receives | 422 |
from the
retail sales
the lottery sales agent
makes, for the | 423 |
purpose of computing the
lottery sales agent's rental payments. | 424 |
Sec. 3770.06. (A)(1) There is hereby created the state | 425 |
lottery
gross revenue fund, which shall be in the custody of the | 426 |
treasurer
of state, but shall not be part of the state treasury.
| 427 |
All gross
revenues received from sales of lottery tickets | 428 |
products, fines,
fees, and
related proceeds
in
connection with | 429 |
the statewide
lottery and all
gross proceeds from
statewide joint | 430 |
lottery games
shall be
deposited into the fund.
The
treasurer
of | 431 |
state shall
invest any
portion of the fund not
needed for | 432 |
immediate use in the
same
manner as, and subject to
all | 433 |
provisions
of law with respect
to
the investment of, state
funds. | 434 |
The
treasurer of state shall
disburse money from the fund
on order | 435 |
of
the director of the state
lottery commission or the
director's | 436 |
designee. | 437 |
(2) Except for
gross proceeds from statewide joint lottery | 438 |
games,
all revenues of
the state lottery gross revenue fund
that | 439 |
are not
paid to holders
of winning lottery ticketsparticipants, | 440 |
that are
not required
to meet
short-term prize liabilities, that | 441 |
are not
credited to
lottery
sales
agents or video lottery
sales | 442 |
agents in the form of
bonuses,
commissions,
or
reimbursements, | 443 |
that are not necessary for operating the video
lottery
terminals | 444 |
under Chapter
3770. of the
Revised Code,
that are not paid to | 445 |
financial
institutions
to
reimburse
those
institutions for sales | 446 |
agent
nonsufficient
funds,
and that are not
collected from sales | 447 |
agents
for remittance to
insurers under
contract to provide | 448 |
sales agent
bonding services
shall be
transferred to the state | 449 |
lottery
fund,
which is
hereby
created in
the state treasury.
In | 450 |
addition, all
revenues of
the
state
lottery
gross revenue fund | 451 |
that represent
the gross
proceeds
from
the
statewide joint | 452 |
lottery games and that
are not
paid to
holders of
winning lottery | 453 |
tickets, that are not
required
to meet
short-term
prize | 454 |
liabilities, that are not
credited to
lottery
sales
agents in | 455 |
the form of bonuses,
commissions, or
reimbursements, and
that are | 456 |
not necessary to
cover operating
expenses associated with
those | 457 |
games or to
otherwise comply with
the agreements signed by the | 458 |
governor that
the
director
enters
into under division (J) of | 459 |
section 3770.02 of
the
Revised
Code or
the rules the commission | 460 |
adopts under division
(B)(5) of
section
3770.03 of the Revised | 461 |
Code shall be transferred
to the
state
lottery fund. All | 462 |
All
investment earnings of
the state lottery fund
shall be | 463 |
credited to the fund.
Moneys shall be disbursed
from the
fund | 464 |
pursuant to
vouchers
approved by the director.
Total
disbursements | 465 |
for monetary
prize
awards to holders of
winning
lottery tickets
in | 466 |
connection with
the statewide lottery and
purchases
of goods and | 467 |
services
awarded
as prizes to holders of
winning
lottery tickets | 468 |
shall be
of an
amount equal
to at least
fifty per cent of the | 469 |
total
revenue
accruing from the
sale of
lottery ticketsproducts. | 470 |
(B) Pursuant to Section 6 of Article XV, Ohio
Constitution, | 471 |
there is hereby established in the state treasury
the lottery | 472 |
profits education fund. Whenever, in the judgment of
the director | 473 |
of budget and management, the amount to the credit
of the state | 474 |
lottery fund
that does not represent proceeds from statewide joint | 475 |
lottery games is in excess of that needed to meet the
maturing | 476 |
obligations of the commission and as working capital for
its | 477 |
further operations, the director shall transfer the
excess to the | 478 |
lottery profits education fund
in connection with the statewide | 479 |
lottery.
In addition, whenever, in the
judgment of
the director
of | 480 |
budget and management, the amount to
the credit of
the state | 481 |
lottery fund that represents proceeds from
statewide
joint lottery | 482 |
games equals the entire net proceeds of
those games
as described | 483 |
in division (B)(5) of section 3770.03 of
the Revised
Code and the | 484 |
rules adopted under that division, the
director shall
transfer | 485 |
those proceeds to the lottery profits
education fund. There
shall | 486 |
also
be credited to the fund any
repayments of moneys
loaned from | 487 |
the
educational excellence
investment fund.
Investment earnings
of | 488 |
the lottery profits
education fund shall be credited to the
fund. | 489 |
The
lottery profits
education fund shall be used solely for | 490 |
the
support of elementary,
secondary, vocational, and special | 491 |
education programs as
determined in appropriations made by the | 492 |
general assembly, or as
provided in applicable bond proceedings | 493 |
for
the payment of debt
service on obligations issued to pay costs | 494 |
of capital
facilities,
including those for a system of common | 495 |
schools throughout the
state pursuant to section 2n of Article | 496 |
VIII, Ohio Constitution.
When determining the
availability of | 497 |
money in
the lottery profits
education fund, the director of | 498 |
budget and
management may consider
all balances and estimated | 499 |
revenues of
the fund. | 500 |
(C) There is hereby established in the state treasury the | 501 |
deferred prizes trust fund. With the approval of the director of | 502 |
budget and management, an amount sufficient to fund annuity
prizes | 503 |
shall be transferred from the state lottery fund and
credited to | 504 |
the trust fund. The treasurer of state shall
credit all earnings | 505 |
arising from investments purchased under this
division to the | 506 |
trust
fund. Within sixty days after the end of each
fiscal year, | 507 |
the treasurer of state shall certify to the director of budget and | 508 |
management whether the actuarial amount of the trust fund is | 509 |
sufficient over the fund's life for continued funding of all | 510 |
remaining deferred prize liabilities as of the last day of the | 511 |
fiscal year just ended. Also, within that sixty days,
the
director | 512 |
of budget and management shall certify
the amount of
investment | 513 |
earnings necessary to have been credited
to the trust
fund during | 514 |
the fiscal year just ending to provide
for such continued
funding | 515 |
of deferred prizes. Any earnings credited
in excess of
the
latter | 516 |
certified amount shall be transferred to the
lottery
profits | 517 |
education fund. | 518 |
To provide all or a part of the
amounts necessary
to fund | 519 |
deferred prizes awarded by the
commission in connection with the | 520 |
statewide lottery, the treasurer
of state, in consultation with | 521 |
the
commission, may invest moneys
contained in the deferred prizes | 522 |
trust fund which representsthat represent proceeds from the | 523 |
statewide lottery in
obligations of the
type permitted for the | 524 |
investment of state
funds but whose
maturities are thirty years or | 525 |
less.
Notwithstanding the requirements of any other section of the | 526 |
Revised Code, to provide all or part of the amounts necessary to | 527 |
fund deferred prizes awarded by the commission in connection with | 528 |
statewide joint lottery games, the treasurer of state, in | 529 |
consultation with the commission, may invest moneys in the trust | 530 |
fund which represent proceeds derived from the statewide joint | 531 |
lottery games in accordance with the rules the commission adopts | 532 |
under division (B)(5) of section 3770.03 of the Revised Code. | 533 |
Investments of the
trust fund are not subject to the provisions
of | 534 |
division
(A)(10) of section 135.143 of the Revised Code
limiting | 535 |
to
twenty-five
per cent the amount
of the state's total
average | 536 |
portfolio that
may be invested in debt interests
and
limiting to | 537 |
one-half of one
per cent the amount that may be
invested in
debt | 538 |
interests of a
single issuer. | 539 |
The state lottery commission shall establish an internal | 553 |
audit program
before the beginning of each fiscal year, subject to | 554 |
the approval of the
auditor of state. At the end of each fiscal | 555 |
year, the commission shall
prepare and submit an annual report to | 556 |
the auditor of state for the auditor of
state's review and | 557 |
approval, specifying the internal audit work completed by
the end | 558 |
of that fiscal year and reporting on compliance with the annual | 559 |
internal audit program. The form and content of the report shall | 560 |
be
prescribed by the auditor of state under division (C) of | 561 |
section
117.20 of the Revised Code. | 562 |
(E) Whenever, in the judgment of the director of budget and | 563 |
management, an amount of net state lottery proceeds is necessary | 564 |
to be applied
to the payment of debt service on obligations, all | 565 |
as defined in sections
151.01 and 151.03 of the Revised Code, the | 566 |
director shall transfer that amount directly from
the state | 567 |
lottery fund or from the lottery profits education fund to the | 568 |
bond
service fund defined in those sections. The provisions of | 569 |
this division
are subject to any prior pledges
or obligation of | 570 |
those amounts to the payment of bond service
charges as defined in | 571 |
division
(C) of section 3318.21 of the
Revised Code, as referred | 572 |
to in division (B)
of this section. | 573 |
Sec. 3770.07. (A)(1) Except as provided in division (A)(2) | 574 |
of this section, lottery prize awards shall be claimed
by the | 575 |
holder of the winning lottery ticketproduct, or by the
executor | 576 |
or
administrator, or the trustee of a trust, of the
estate of a | 577 |
deceased holder of a winning lottery
ticketproduct, in a manner | 578 |
to be determined
by the state lottery
commission, within one | 579 |
hundred eighty days
after the date on
which
the prize award was | 580 |
announced if the
lottery game is an
online
game, and within one | 581 |
hundred eighty
days after the close
of the
game if the lottery | 582 |
game is an instant
game. | 583 |
No lottery prize award with a value that exceeds fiveeleven | 584 |
hundred
ninety-nine dollars shall be claimed by or paid to any | 585 |
person, as
defined in section 1.59 of the Revised Code or as | 586 |
defined by rule
or order of the state lottery commission, until | 587 |
the name, address,
and social security number of each beneficial | 588 |
owner of the prize
award are disclosed todocumented for the | 589 |
commission. Except
when a beneficial
owner otherwise consents in | 590 |
writing, in the
case of a claim for a
lottery prize award made | 591 |
by one or more
beneficial owners using a
trust, the name, | 592 |
address, and social
security number of each such
beneficial | 593 |
owner in the commission's
records as a result of such a | 594 |
disclosure are confidential and
shall not be subject to | 595 |
inspection
or copying under section
149.43 of the Revised Code | 596 |
as a public
record. | 597 |
(2) An eligible person serving on active military duty in any | 603 |
branch of the United States armed forces during a war or national | 604 |
emergency declared in accordance with federal law may submit a | 605 |
delayed claim for a lottery prize award. The eligible person shall | 606 |
do so by notifying the state lottery commission about the claim | 607 |
not later than the five hundred fortieth day after the date on | 608 |
which the prize award was announced if the lottery game is an | 609 |
online game or after the date on which the lottery game closed if | 610 |
the lottery game is an instant game. | 611 |
(3) If no valid
claim to a lottery prize award is made within | 612 |
the
prescribed period,
the prize money, the cost of goods and | 613 |
services awarded as
prizes, or, if goods or services awarded as | 614 |
prizes are
resold by the state lottery
commission, the proceeds | 615 |
from their sale shall be
returned to the
state lottery fund and | 616 |
distributed in accordance
with section
3770.06 of the Revised | 617 |
Code. | 618 |
(4) The state lottery commission may share with other | 619 |
governmental agencies the name, address, and social security | 620 |
number of a beneficial owner disclosed to the commission under | 621 |
division (A)(1) of this section, as authorized under sections | 622 |
3770.071 and 3770.073 of the Revised Code. Any shared information | 623 |
as disclosed pursuant to those sections that is made confidential | 624 |
by division (A)(1) of this section remains confidential and shall | 625 |
not be subject to inspection or copying under section 149.43 of | 626 |
the Revised Code as a public record unless the applicable | 627 |
beneficial owner otherwise provides written consent. | 628 |
(ii) While serving in the reserve forces in this state, the | 638 |
person, as the result of a war or national emergency declared in | 639 |
accordance with federal law, is placed on active military duty and | 640 |
is transferred out of this state before the expiration of the one | 641 |
hundred eightieth day after the date on which the prize drawing | 642 |
occurs for an online game or before the expiration of the one | 643 |
hundred eightieth day following the close of an instant game as | 644 |
determined by the commission. | 645 |
(B) If a
prize winner, as
defined in section 3770.10 of the | 654 |
Revised Code, is under eighteen
years of age, or is under some | 655 |
other legal disability, and the
prize money or the cost of goods | 656 |
or services awarded as a prize
exceeds one thousand dollars, the | 657 |
director of the state lottery commission shall order that
payment | 658 |
be made to the order of the
legal guardian of
that prize winner. | 659 |
If the amount of the prize
money
or the
cost of
goods or services | 660 |
awarded as a prize is one
thousand
dollars or
less, the director | 661 |
may order that payment be
made to
the order of
the adult member, | 662 |
if any, of
that prize
winner's family
legally responsible for
the | 663 |
care of
that prize
winner. | 664 |
(D)(1) No right of any prize winner, as defined in section | 668 |
3770.10 of the Revised Code, to a prize award shall be assignable | 669 |
except as follows: when the payment is to be made to the executor | 670 |
or administrator, or the trustee of a trust, of the estate of a | 671 |
winning ticket holderprize winner; when the award of a prize is | 672 |
disputed, any person may be awarded a prize award to which another | 673 |
has claimed title, pursuant to the order of a court of competent | 674 |
jurisdiction; when a person is awarded a prize award to which | 675 |
another has claimed title, pursuant to the order of a federal | 676 |
bankruptcy court under Title 11 of the United States Code; or as | 677 |
provided in sections 3770.10 to 3770.14 of the Revised Code. | 678 |
(2)(a) No right of any
prize winner, as defined in
section | 679 |
3770.10 of the Revised Code, to a prize award with a remaining | 680 |
unpaid balance of less than one hundred thousand dollars shall be
| 681 |
subject to garnishment, attachment, execution,
withholding, or | 682 |
deduction except as provided in
sections 3119.80,
3119.81, | 683 |
3121.02, 3121.03, and
3123.06 of the
Revised Code
or when the | 684 |
director
is
to make a payment pursuant to section
3770.071 or | 685 |
3770.073 of the Revised
Code. | 686 |
(b) No right of any prize winner, as defined in section | 687 |
3770.10 of the Revised Code, to a prize award with an unpaid | 688 |
balance of one hundred thousand dollars or more shall be subject | 689 |
to garnishment, attachment, execution, withholding, or deduction | 690 |
except as follows: as provided in sections 3119.80, 3119.81, | 691 |
3121.02, 3121.03, and 3123.06 of the Revised Code; when the | 692 |
director is to make a payment pursuant to section 3770.071 or | 693 |
3770.073 of the Revised Code; or pursuant to the order of a court | 694 |
of competent jurisdiction located in this state in a proceeding in | 695 |
which the state lottery commission is a named party, in which case | 696 |
the garnishment, attachment, execution, withholding, or deduction | 697 |
pursuant to the order shall be subordinate to any payments to be | 698 |
made pursuant to section 3119.80, 3119.81, 3121.02, 3121.03, | 699 |
3123.06, 3770.071, or 3770.073 of the Revised Code. | 700 |
(3) The state lottery commission may adopt and amend rules | 701 |
pursuant to Chapter 119. of the Revised Code as necessary to | 702 |
implement division (D) of this section, to provide for payments | 703 |
from prize awards subject to garnishment, attachment, execution, | 704 |
withholding, or deduction, and to comply with any applicable | 705 |
requirements of federal law. | 706 |
(4) Upon making payments from a prize award as required by | 707 |
division (D) of this section, the director and the state lottery | 708 |
commission are discharged from all further liability for those | 709 |
payments, whether they are made to an executor, administrator, | 710 |
trustee, judgment creditor, or another person, or to the prize | 711 |
winner, as defined in section 3770.10 of the Revised Code. | 712 |
(5) The state lottery commission shall adopt rules pursuant | 713 |
to section
3770.03
of the
Revised Code concerning the payment of | 714 |
prize awards
upon
the death of a prize winner, as defined in | 715 |
section 3770.10 of the Revised Code. Upon the death of a prize | 716 |
winner,
the
remainder
of the prize winner's prize award, to the | 717 |
extent it
is
not subject to a transfer agreement under sections | 718 |
3770.10 to
3770.14 of the Revised Code, may be paid to the | 719 |
executor,
administrator,
or trustee in the form of a discounted | 720 |
lump sum
cash settlement. | 721 |
(E) No lottery prize award shall be awarded to or for any | 722 |
officer or employee of the state lottery commission, any officer | 723 |
or
employee of the auditor of state actively auditing, | 724 |
coordinating and, or certifying
commission drawings, or any blood | 725 |
relative or spouse of
such an officer or employee of the | 726 |
commission or auditor
of state
living as a member
of the officer's | 727 |
or employee's household, nor
shall any such officer,
employee, | 728 |
blood relative, or spouse attempt to
claim a lottery prize
award. | 729 |
(G) Upon the payment of
prize awards pursuant to a provision | 733 |
of this
section other than a provision of division (D) of this | 734 |
section or section 3770.28 of the Revised Code, the director and | 735 |
the state lottery
commission are discharged from all
further | 736 |
liability for their payment. Installment payments of lottery prize | 737 |
awards shall be paid by official check or warrant, and they shall | 738 |
be sent by mail delivery to the prize winner's address within the | 739 |
United States or by electronic funds transfer to an established | 740 |
bank account located within the United States, or the prize winner | 741 |
may pick them up at an office of the commission. | 742 |
(B) No person other than a licensed lottery sales agent
or | 746 |
video lottery sales agent
shall sell
lottery ticketsproducts, but | 747 |
nothing in this section shall be
construed to prevent any person | 748 |
from giving
lottery ticketsproducts to
another as a gift. A | 749 |
transfer of
lottery ticketsproducts by any person
whichthat is | 750 |
made in connection
with a marketing, promotional, or
advertising | 751 |
program shall be
deemed to be a gift for the purposes
of this | 752 |
chapter. | 753 |
(D) No person, directly or indirectly, on behalf of self, or | 759 |
another, nor any
organization, shall invite, solicit, demand, | 760 |
offer, or accept any payment,
contribution, favor, or
other | 761 |
consideration to influence the award, renewal, or retention
of a | 762 |
lottery sales
or video lottery sales agent license. | 763 |
(E) Except as otherwise provided in this division, no
person | 764 |
shall sell
lottery tickets
on
any fairgrounds during any
annual | 765 |
exhibition conducted in
accordance with Chapter 991. or
1711. of | 766 |
the Revised Code.
"Fairgrounds" includes any land or
property | 767 |
under the control or
management of any agricultural
society or of | 768 |
the Ohio expositions
commission. This division
does not apply to | 769 |
the sale of
lottery
ticketsproducts by the commission
at
the | 770 |
state
fairground during the state fair. | 771 |
(A) "Associated equipment" means any hardware or software | 774 |
that is connected to video lottery terminal or the central | 775 |
communications system for the purpose of performing communications | 776 |
to, or validation, auditing, or data and information retrieval by, | 777 |
the state lottery commission. "Associated equipment" does not | 778 |
include telecommunications facilities and equipment of a public | 779 |
utility or video lottery terminals. | 780 |
(B) "Central communications system" means the computer system | 781 |
that is
operated and controlled under the authority of the state | 782 |
lottery commission,
to which
video lottery terminals and their | 783 |
associated
equipment
communicate for security, auditing, data | 784 |
and
information
retrieval, and other purposes authorized under | 785 |
this
chapter and that has the ability to activate and deactivate | 786 |
the operation of video lottery terminals. | 787 |
Sec. 3770.22. The state lottery commission shall conduct | 819 |
lotteries that provide
immediate prize determinations for | 820 |
participants through
the use of video lottery
terminals. The | 821 |
commission shall conduct
these lotteries only
through video | 822 |
lottery sales agents that
were permit holders that conducted live | 823 |
horseracing
meetings continuing since calendar year 2003, and | 824 |
only at tracks
operated by one or more video lottery
sales | 825 |
agents. If, on
the effective date of
this section, more
than | 826 |
one
permit holder
conducted horseracing
meetings at a track | 827 |
during
the previous
calendar
year, the permit
holders shall | 828 |
designate,
by a written
agreement,
one permit
holder, or a | 829 |
person or entity
owning or
owned by one
or more
permit | 830 |
holders, as the video
lottery
sales agent for
that
track. The | 831 |
agreement shall be filed
with
the commission prior to
the | 832 |
issuance of a video
lottery
sales agent license and
shall not | 833 |
be modified without the
consent of the commission. | 834 |
Sec. 3770.23. A video lottery terminal shall be
connected | 835 |
to the central communications system. The
state lottery | 836 |
commission
shall evaluate and
approve both the
hardware of a | 837 |
video
lottery terminal and the
software that
is used to | 838 |
operate the video lottery
terminal. The commission shall contract | 839 |
with an independent testing laboratory to ensure that the video | 840 |
lottery terminals operate in full compliance with all rules and | 841 |
regulations. The commission
shall
not
approve a video lottery | 842 |
terminal unless the
software that
is used to operate the video | 843 |
lottery terminal
will provide to
participants a projected | 844 |
average return of more
than
eighty-five per
cent during the | 845 |
expected lifetime of the video lottery terminal using standard | 846 |
methods of probability theory. | 847 |
Except as provided in the agreement required by section | 848 |
3770.26 of the Revised Code, the number, type, denomination, and | 849 |
location of video lottery terminals at a track shall be agreed | 850 |
upon between the agent and the commission. Not more than sixty per | 851 |
cent of the
video lottery terminals operated by the commission | 852 |
at the
track of a video lottery sales
agent during the
first | 853 |
five years of operation shall be manufactured
by the
same | 854 |
entity. | 855 |
(3) Prior to the approval of the application, obtain a letter | 864 |
of credit, or a surety, or, if required by the director, a | 865 |
fidelity
bond, in an amount to be determined by the director, but | 866 |
not more than two million dollars. The bond may be with
any | 867 |
company
that complies with the bonding and surety laws of
this | 868 |
state and
the requirements established by rules of the | 869 |
commission
under
section 3770.03 of the Revised Code. | 870 |
(B) A video lottery sales agent license is effective
for | 871 |
ten years. A video lottery sales agent, on or before
the date | 872 |
established by the director, shall renew the agent's
license and | 873 |
the agreement required by section 3770.26 of the
Revised Code, | 874 |
and provide evidence that the agent is a current
permit holder | 875 |
and has renewed the letter of credit, surety, or
bond
required | 876 |
by this section. | 877 |
(1) That fifty per cent of the gross
proceeds of the | 899 |
lotteries conducted under section 3770.22 of the
Revised Code | 900 |
shall be paid as a commission to the agent for
services and | 901 |
personnel provided under section 3770.28 of the
Revised Code by | 902 |
the agent for the lotteries and for the provision,
maintenance, | 903 |
and
repair of the buildings and grounds at the track
where the | 904 |
video lottery terminals are
located and that the remaining fifty | 905 |
per cent of the gross proceeds shall be retained by the state; | 906 |
(a) Set a goal to award not less than fifty per cent of the | 917 |
contracts related to the provision, maintenance, and repair under | 918 |
division (B) of section 3770.28 of the Revised Code of necessary | 919 |
capital improvements for the facilities at the track at which | 920 |
video lottery terminals are located to, and
make a good faith | 921 |
effort to see that not less than fifty per cent
of the | 922 |
subcontracts of those contracts are awarded to, Ohio-based | 923 |
businesses; | 924 |
(6) That within five years after commencing operation of
the | 940 |
lotteries conducted under section 3770.22 of the Revised Code, | 941 |
the agent shall make not less than eighty million
dollars in | 942 |
improvements to the buildings and grounds at the track
where the | 943 |
video lottery terminals are located, including temporary | 944 |
facilities, with not less than twenty
million dollars in | 945 |
improvements to the buildings and grounds at
the track being made | 946 |
within the first year. All improvements are subject to review by | 947 |
the commission. | 948 |
(B) The term of the agreement shall not exceed ten years and | 949 |
shall not be terminated by the parties during its term, except for | 950 |
breach of a provision of the agreement, or suspension or | 951 |
revocation of a video lottery sales agent's license issued
under | 952 |
section 3770.24 of the Revised Code or of a permit issued
under | 953 |
Chapter 3769. of the Revised Code. The video lottery
sales agent | 954 |
shall have exclusive rights to conduct lotteries
through the use | 955 |
of video lottery terminals during the term of
the agreement. If | 956 |
the
commission
intends
to terminate or not renew an agreement, | 957 |
it
shall provide
the agent
with an opportunity for an | 958 |
adjudication
under Chapter
119. of the
Revised Code. | 959 |
Sec. 3770.261. (A) The agreement between the state lottery | 960 |
commission and each video lottery sales agent shall provide
that | 961 |
a one-time
licensing fee equal to sixty-five million dollars | 962 |
shall be
paid by
the agent to the commission, with thirteen | 963 |
million dollars to
be paid on September
15, 2009, thirteen | 964 |
million dollars to be paid
on December 15,
2009, thirteen | 965 |
million
dollars to be paid on
March 15, 2010, thirteen million | 966 |
dollars
to
be paid on June 15, 2010, and thirteen million | 967 |
dollars to be paid on
September 15, 2010. | 968 |
Sec. 3770.263. (A) There is hereby created the video lottery | 982 |
study council consisting of five members. The speaker of the house | 983 |
of representatives shall appoint to the council two members of the | 984 |
house of representatives, the president of the senate shall | 985 |
appoint to the council two members of the senate, and the governor | 986 |
shall appoint to the council one member. Members of the council | 987 |
shall serve at the pleasure of their appointing authority, and | 988 |
shall serve without compensation, but shall be reimbursed for | 989 |
actual and necessary expenses incurred in the performance of their | 990 |
duties. | 991 |
(A) Approve, qualify, certify, purchase or lease, install, | 1008 |
maintain,
repair, replace, and operate all video lottery | 1009 |
terminals,
associated equipment, and intellectual property | 1010 |
necessary for the
conduct of the lotteries. At the commencement | 1011 |
of operations the
video lottery terminals shall be new, | 1012 |
state-of-the-art
video lottery terminals. Thereafter, the
video | 1013 |
lottery
sales agent has the right to request that | 1014 |
underperforming
video lottery terminals be removed and
replaced | 1015 |
with better
performing video lottery terminals. | 1016 |
(B) Procure, install, establish, maintain, repair, replace, | 1017 |
and operate the central communications system that provides | 1018 |
security, auditing, and data and information retrieval as | 1019 |
determined necessary by the commission, that is compatible with | 1020 |
all video lottery terminal manufacturers,
distributors, | 1021 |
suppliers, and providers, and that uses a gaming standards | 1022 |
association communications protocol. The central communications | 1023 |
system provider shall upgrade the protocol to the latest standards | 1024 |
at the request of the commission. The central communications | 1025 |
system
shall be
online and in communication with
computers, | 1026 |
video
lottery terminals, and associated equipment
located at the | 1027 |
tracks
of video
lottery sales agents. | 1028 |
(C) Select, qualify, certify, retain, pay, and terminate all | 1029 |
contractors, suppliers, service companies, and vendors of the | 1030 |
commission necessary for the conduct of lotteries under section | 1031 |
3770.22 of the Revised Code, including those persons that provide | 1032 |
video lottery terminals, associated equipment, and the central | 1033 |
communications system; | 1034 |
(B) No license or excise tax or fee shall be assessed upon or | 1076 |
collected from a video lottery sales agent by any county, | 1077 |
township, municipal corporation, school district, or other | 1078 |
political subdivision of the state that has the authority to | 1079 |
assess or collect a tax or fee, by reason of the conduct of | 1080 |
lotteries at tracks under section 3770.22
of the Revised Code. | 1081 |
This division does not prohibit the imposition of taxes under | 1082 |
Chapter 718. or 3769. of the Revised Code. | 1083 |
Sec. 4301.03. The liquor control commission may adopt and | 1098 |
promulgate, repeal, rescind, and amend, in the manner required by | 1099 |
this section, rules, standards, requirements, and orders
necessary | 1100 |
to carry out
this chapter and
Chapter 4303. of the
Revised
Code, | 1101 |
but all rules of the board of liquor control
that
were in
effect | 1102 |
immediately prior to April 17, 1963, shall remain
in full
force | 1103 |
and effect as rules of the liquor control commission
until
and | 1104 |
unless amended or repealed by the liquor control
commission.
The | 1105 |
rules of the commission may include the
following: | 1106 |
(B) Rules and orders providing in detail for the conduct
of | 1112 |
any retail business authorized under permits issued pursuant
to
| 1113 |
this chapter and Chapter 4303. of the Revised Code,
with a view to | 1114 |
ensuring compliance with
those chapters and
laws relative
to
them, | 1115 |
and the maintenance of public
decency, sobriety, and good
order in | 1116 |
any place licensed under
the
permits. No rule or order
shall | 1117 |
prohibit the sale of
lottery
ticketsproducts issued pursuant to | 1118 |
Chapter 3770. of the Revised
Code by
any
retail business | 1119 |
authorized under permits issued
pursuant to
that
chapter. | 1120 |
No rule or order shall prohibit pari-mutuel wagering on | 1121 |
simulcast horse races
at a satellite facility that has been issued | 1122 |
a D liquor permit under Chapter
4303. of the Revised Code. No
rule | 1123 |
or order shall prohibit a
charitable organization that holds
a D-4 | 1124 |
permit from selling or
serving beer or intoxicating liquor
under | 1125 |
its permit in a portion
of its premises merely because that | 1126 |
portion of its premises is
used at other times for the conduct of | 1127 |
a bingo game, as described in division (S) of section 2915.01 of | 1128 |
the Revised Code. However, such
an organization shall not
sell or | 1129 |
serve beer or
intoxicating liquor or permit beer or
intoxicating | 1130 |
liquor to be
consumed or seen in the same location in
its premises | 1131 |
where a
bingo game, as described in division (S)(1) of section | 1132 |
2915.01 of the Revised Code, is being conducted
while the game is | 1133 |
being
conducted. As used in this division,
"charitable | 1134 |
organization"
has the same meaning as in division (H)
of section | 1135 |
2915.01
of the Revised Code.
No
rule or order
pertaining to | 1136 |
visibility into
the premises of a
permit holder
after the legal | 1137 |
hours of sale
shall be adopted or
maintained by
the commission. | 1138 |
(D) Rules determining the nature, form, and capacity of
all | 1143 |
packages and bottles to be used for containing beer or | 1144 |
intoxicating liquor, except for spirituous liquor to be kept or | 1145 |
sold, governing the form of all seals and labels to be used
on | 1146 |
those packages and bottles,
and requiring the label on
every | 1147 |
package, bottle, and
container to state the ingredients in
the | 1148 |
contents and, except on
beer, the terms of
weight, volume, or | 1149 |
proof spirits, and
whether the same is beer,
wine, alcohol, or any | 1150 |
intoxicating
liquor except for spirituous
liquor; | 1151 |
(I) Rules requiring permit holders buying beer
to pay and | 1168 |
permit holders selling beer
to collect minimum cash deposits for | 1169 |
kegs, cases,
bottles, or other returnable containers of
the beer; | 1170 |
requiring the repayment, or credit, of
the minimum cash
deposit | 1171 |
charges upon the return of
the empty
containers; and
requiring
the | 1172 |
posting of such form of indemnity
or such other
conditions
with | 1173 |
respect to the charging,
collection,
and repayment
of minimum
cash | 1174 |
deposit charges for
returnable
containers of beer
as are
necessary | 1175 |
to ensure
the return of
the empty containers or
the
repayment upon
| 1176 |
that return of the minimum cash deposits
paid; | 1177 |
Every rule, standard, requirement, or order of the
commission | 1182 |
and every repeal, amendment, or rescission
of
them shall be
posted | 1183 |
for public inspection in the principal office
of
the
commission | 1184 |
and the principal office of the division of
liquor
control, and a | 1185 |
certified copy
of them shall be
filed in the
office of the | 1186 |
secretary of state. An order applying
only to
persons named
in it | 1187 |
shall be served on the persons
affected by
personal delivery of a | 1188 |
certified copy, or by mailing
a
certified
copy to each person | 1189 |
affected
by it or,
in the case of a
corporation, to any officer or | 1190 |
agent
of
the
corporation upon whom
a
service of summons may be | 1191 |
served in a
civil action. The posting
and filing required by this | 1192 |
section
constitutes sufficient notice
to all persons affected by | 1193 |
such rule
or order which is not
required to be served. General | 1194 |
rules of the
commission
promulgated pursuant to this section shall | 1195 |
be published
in
the
manner
the commission determines. | 1196 |
Section 4. Notwithstanding sections 3769.04 and 3769.13
of | 1205 |
the Revised Code, for a period of two years after the effective | 1206 |
date of this section, a permit holder who is located on property | 1207 |
owned by a political subdivision and who is eligible to become an | 1208 |
electronic lottery sales agent may move its track to another | 1209 |
location in a contiguous county that is within fifty miles of its | 1210 |
current location for any reason and without the application or | 1211 |
petition otherwise required by those sections. That permit holder | 1212 |
may operate as an electronic lottery sales agent at a temporary | 1213 |
facility at its new location while constructing or otherwise | 1214 |
preparing its new track at that location. However, that permit | 1215 |
holder may not move its track into a contiguous county in which a | 1216 |
permit holder who is eligible to become an electronic lottery | 1217 |
sales agent already is located on the effective date of this | 1218 |
section. | 1219 |